nbc universal and lean
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Developing a 360o Sales Force
Developing a 360o Sales ForceJohn Sabino, SVP - Ad Sales
Tiran Dagan, Director – Strategic Initiatives & Analysis
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About The Presenters
Tiran DaganDirector/Engagement Leader
Strategic Initiatives & Analysis Responsible for executing
the deployment of process improvement efforts and digital strategies across Media Works, News & Studio Operations business units.
Six Sigma Master Black Belt & Certified Agile PM Scrum Master
Prior roles in strategy, operations & technology in financial services & healthcare
MBA from Tel-Aviv University, B.Sc. In Artificial Intelligence & Mathematics from SUNY
John SabinoSenior Vice PresidentCommercial Excellence & Operations
Responsible for simplifying sales and operational processes across all distribution platforms and for the creation & deployment of enterprise sales initiatives across NBCU Ad Sales.
Prior roles at GE Energy supporting corporate initiatives, marketing, and sales.
MBA from the Marshall School of Business at USC, B.Sc. from West Point Military Academy.
Junior Officer Leadership Program after serving five years in the U.S. Army as an Armor Officer.
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Click to edit Master text styles• Second level
- Third level Fourth level
› Fifth level Joint Venture - GE (80%)/Vivendi (20%)
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› Fifth level Ad Revenue $6b (2007)Click to edit Master text styles
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Fourth level› Fifth level Over 15 cable & TV properties
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› Fifth level Strong digital presence (iVillage, NBC.com, MSNBC.com, CNBC.com, Hulu)
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› Fifth level Siloed activities & communication channels
About NBC Universal (NBCU)
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Strategic Initiatives & Analysis
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› Fifth level Origins in the GE quality organizationClick to edit Master text styles
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Fourth level› Fifth level Focus on driving change
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› Fifth level Cross discipline team, two coastsClick to edit Master text styles
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Fourth level› Fifth level Consultative approach
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› Fifth level No charge to P&LClick to edit Master text styles
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Fourth level› Fifth level Lean & Six Sigma as means, not an end
“We've been aggressively trying to migrate away from talking about tools and instead to talking about outcomes... Six Sigma is a tool. It is a wonderful tool, but it is a tool…the two outcomes we really want are product reliability and customer responsiveness. “
Gary Reiner, GE CIO, CNN Money, 7/21/2008
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SIA Framework: Lean AWO
Kick-OffDefine
Scope
Collect
Data
Determine Participants Lean Training
Kick-off with leadership and other key participants
Collect Voice of the Customer data and understand customer value
Define objectives (including growth transfer function)
Define scope (which business, which process)
Define leadership structure and process owners
Begin logistics arrangement and agree on participants
Collect existing process maps
Define baseline business data
Begin data collection for existing process
Complete process data collection
Finalize participant list and remaining logistics
Conduct training on lean concepts
Complete VSMs
Complete problem & objective statements for AWO events
Develop 9 month Action Work Out calendar
Finalize Action Work Out teams
Complete initial Action Work Outs (3-6 teams)
Continue to complete Action Work Outs to reach future state goals
Lean EngagementConsulting Engagement
Planning:
Scoping &Prioritization
Discovery &Strategy
Staffing
Approval
Stakeholder Management
Team Management
Kick-OffExecutionFinal
Report-out Closure:
QuantifyValue
ProjectReview
Measure & Validate
Report
Project Management
Program Integration
TollgatesSchedules and Timelines
Communications PlanRisk Management
Scope Control
Conflict / Issue Resolution
Change ManagementVendor Partnership
Implementation Plan
SIA Project Delivery Framework 1.0
Follow on AWOs
Lean Work
Out Week
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The Ad Sales Evolution Initiative
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Business Case
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› Fifth level Properties, redundant functions and tie this in with ability to deliver/manage an audience not just ads
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› Fifth level Reduce customer facing defectsClick to edit Master text styles
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Fourth level› Fifth level Inflexible process
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› Fifth level Fragmented audienceClick to edit Master text styles
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Fourth level› Fifth level High internal costs to manage
From ad to audience
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Overcoming a Fragmented World
Property 1
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Property 2 Property 3 Property 15
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High cost / confusing service model
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Ad Sales Value Chain
Programming & Research
Ratecard
Dev.
Inquiry to
Order
Contract
MaintenanceTraffic Billing
Project Scope
What the customer feels
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Opportunities Across Entire Value Chain
• Reduce credits due to inaccurate delivery
• Improve customer satisfaction survey results
• Improve collection rate and reduce DSO
• Reduce revisions to contracts
• Reduce cycle time to close a plan
• Reduce defects during early plan negotiations
• Increase revenue opportunities
Inquiry To Order (ITO)
Order To Remittance (OTR)
Cu
sto
mer
Customer behavior:
• Lead time
• Completeness & Accuracy <provide examples>
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Billing & Collections
Research
Traffic
Sales
CRM (Account Management)
Produce Great Content
Reposition Assets
Consumer & Advertiser Insights
Cultivate Consumer Communities
New Platforms & Business Windows
Expand Internationally
Growth
Pla
ybook
Programming & Development
Pricing & Planning
Pricing & Planning
Co
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nte
rpri
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Pro
ce
ss
es
/ F
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cti
on
s
Properties
Te
lem
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od
/Mu
n2
NB
C.c
om
Cab
le/N
etw
ork
Ne
ws
TV
N
etw
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Bra
vo
, S
leu
th &
Ch
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US
A /
Sc
i-F
i
RatecardDevelopment
Programming Research Inquiry to Order Contract Maintenance CommercialOperations
Billing
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“Lean First”
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› Fifth level Establish Metrics & visibilityClick to edit Master text styles
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Fourth level› Fifth level Create a repeatable, standardized Process
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› Fifth level Drive Organizational change (sales force, P&P teams, etc)
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› Fifth level Implement supporting Systems & TechnologiesClick to edit Master text styles
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Fourth level› Fifth level Create ability to sell across properties and
platforms
The vision of Enterprise sell
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Phase I: As-Is VSMs
Oct Nov
Initiate
Needs Assessment General Discovery Sponsorship Scoping Approval
Project SOW & Deliverables
Oct 15
Update
Plan
Detailed Planning
Staffing SOW Creation Approval
Pre-Kickoff10/16
Dec Jan Feb
Mar 14
Monitor action plan for 60 days
Complete hand-off to IT for requirements development
Report out to management
SIA Close
Update
UpdateUpdate
Update
Update
Update
March
NBC NetworkTraining: Jan 11th
Event: 14th, 16th & 17th
Telemundo, Mun2 Training: Jan 18th
Event: 22nd, 24th, 25th
Cable News (CNBC, MSNBC)Training: Jan 23rd Event: 1/28, 1/30, 1/31
Digital (nbc.com) Training: Jan 29th Event: Feb 4th, 6th, 7th
Share Current StateParticipation: all 6 groups: Event: Feb 19th, Feb 20th
Design Ideal State Participation: all 6 groups: Feb 26th, Feb 28th
Drilldown Future StateParticipation: all 6 groups: March 5th, March 7th
Update
Execute
Interviews Identify key
metrics Walk the process Data Collection Participant list Logistics
confirmed
USA, Sci-Fi, Oxygen (TBC)Training: Dec 7th Event: 10th, 12th & 13th
Bravo, Uni HD, Sleuth, Chiller Training: Dec 14th
Event: 17th, 19th & 20th
Update
Detailed As-is current state map
Parking lot, big ideas, opportunities
Quick win fixes
High Level process map
Process Groupings
Detailed future state process maps with Inputs & OutputsAction Plans
Execute
6 Current State Mapping Events
Future State Development
6
Project EndProject Start
5
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Kick-Off: A Shared Vision
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Process Mapping
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Metrics, VA & Pain Points
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Digitization
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Report To Management
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Page 3
USA/Sci-Fi
Jan Feb
Jan 1
Mar Apr
Apr 15
USA, Sci-Fi, Oxygen (TBC)
AE Training for Deal Header requirements
Sales Asst. Training
Communication of Client Upgrades
Stewardship cycle time
Streamlined process for oversell
Convert time standard in Gabriel
Convert “Hold”deals to “Order”
Benefits
~ 15 minutes per deal for planners
Minimal tangible benefits
~ 10 minutes per deal for Sales Assistants
Minimal tangible benefits
Minimal tangible benefit but still helpful for system users
Minimal tangible benefits
~ 1 hour per deal
Status: Team still working on this project
Status: Effort to implement outweighed benefits
Status: Effort to implement outweighed benefits
Status: System Limitation
Acti
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Pla
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M
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Work
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Daily U
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Nig
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Dic
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Deliverables
Rou
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-Rob
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of
Solu
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Developed A Process Model
Legend
#.# [Name]
inputs outputs
Output 1Input 1
Input 2
Input 3
Input 4
Output 2
Output 3
Legend
Ad Sales Process Model
2. In
quiry
to O
rder
3. C
ontr
act M
aint
enan
ce1.
Rat
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opm
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1.1 Process Ratecard Inputs
1.5 Analyze, Test, Finalize & Publish
1.2 Prep Ratecard 1.4 Build Ratecard1.3 Price Added Value
Ratecard
PackagesSelling Schedule
Program Ratings/Est
Program Demo
Selling TitlesProgramming Grid
Program Ratings/Est
Program Demo
RatecardAdded Value
Normalized CPMs
Selling Estimates
Target CPM
RC Bump
Last Year RC
Live/C3 Adjusts
Makegood Ratecard
Normalized RC
Add Val Sellin
g Titles
Add Val Daypart A
ssigns
Updated Estimates
Selling Estim
ates
RC BumpLeveled CPMs
Sponsorship Oppy’s
Selling Title
s
Pricing Unlock
Price Breakouts
Show Groups
Makegood Est.
Quarterly Ratings
Output
Output
Output
Output
Output
Output
Output
Output
Input
Input
Input
Input
2.1 Register Budget
Output
Output
Output
Output
Input
Input
Input
Input
2.3 Determine Value Added Marketing
Elements
Output
Output
Output
Output
Input
Input
Input
Input
2.6 Move Deal to Hold
Output
Output
Output
Output
Input
Input
Input
Input
2.6 Negotiate with Client
Input
Input
Input
Input
2.5 Build Initial Plan
Input
Input
Input
Input
2.7 Move Deal to Order
Output
Output
Output
Output
Output
Output
Output
Output
Input
Input
Input
Input
3.4 Execute Marketing 3.5 Price Adjustments
Output
Output
Output
Output
Input
Input
Input
Input
2.2 Create Deal Header
Output
Output
Output
Output
Input
Input
Input
Input
Input
Input
Input
Input
2.4 Provide Guideance to Planner
Output
Output
Output
Output
Input
Input
Input
Input
3.1 Re-Expression
Output
Output
Output
Output
Output
Output
Output
Output3.2 Splits/Allocations
Input
Input
Input
Input
Output
Output
Output
Output
Input
Input
Input
Input
3.3. ADU/Makegoods
Output
Output
Output
Output
Input
Input
Input
Input
3.10 EDI
Output
Output
Output
Output3.9 Options (Credit)
Input
Input
Input
Input
Input
Input
Input
Input
3.8 Options/Relief)
Output
Output
Output
Output
Output
Output
Output
Output
Input
Input
Input
Input
3.6 Maintain Makegood System
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Process Gap Analysis
Ratecard Business Model
TV
NB
ravo
US
A/S
ci-
Fi
Ma
ste
r R
ate
ca
rd
Mo
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l
1.1 Process Ratecard Inputs
1.3 Price Added Value 1.4 Build Ratecard1.5 Analyze, Test, Finalize & Publish
Packages
1.1 Process Ratecard Inputs
Programming Grid
Program Ratings/Est
Program Demo
Promos
Programming Grid
Program Ratings/Est
Program Demo
Promos
Ratecard
1.2 Prep RatecardNormalized CPMs
Selling Estimates
Target CPM
RC Bump
Last Year RC
Live/C3 Adjusts
1.1 Process Ratecard Inputs
Programming Grid
Program Ratings/Est
Program Demo
Promos
Selling Schedule
Program Ratings/Est
Program Demo
Selling Titles
1.2 Prep Ratecard
Selling Schedule
Program Ratings/Est
Program Demo
Selling Titles
1.2 Prep Ratecard
Selling Schedule
Program Ratings/Est
Program Demo
Selling Titles
1.5 Analyze, Test, Finalize & Publish
Ratecard
Last Year RC
Live/C3 Adjusts1.4 Build Ratecard
Added Value
Normalized CPMs
Selling Estimates
Target CPMRC Bump
1.5 Analyze, Test, Finalize & Publish
Ratecard
Last Year RC
Live/C3 Adjusts
1.3 Price Added Value
Packages
1.3 Price Added Value
Packages
1.4 Build Ratecard
Added Value
Normalized CPMs
Selling Estimates
Target CPMRC BumpQuarterly Ratings
Quarterly Ratings
Quarterly Ratings
1.1 Process Ratecard Inputs
1.5 Analyze, Test, Finalize & Publish
1.2 Prep Ratecard 1.4 Build Ratecard1.3 Price Added Value
PackagesSelling Schedule
Program Ratings/Est
Program Demo
Selling TitlesProgramming Grid
Program Ratings/Est
Program Demo
RatecardAdded Value
Normalized CPMs
Selling Estimates
Target CPM
RC Bump
Last Year RC
Live/C3 Adjusts
Quarterly Ratings
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Ratecard Dev
Inventory
Pricing
Sales
Planning
Billing
“Future State”
Clearly understood client contact, 360o-Sell
Property 1 Property 2 Property 3 Property 15
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Commercial Excellence
Commercial Excellence
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Realized Benefits
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› Fifth level Organizational Benefits Mobilized organization around top clients Clearly defining terminologies Normalizing & standardizing processes
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› Fifth level Utilized CRM application to quickly & efficiently share critical client information
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› Fifth level Streamlined process steps to productively share transactions
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› Fifth level Pre-defined target base for NBCU initiatives (Women@, Health & Wellness)
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› Fifth level Linked incentive plan to business goals (360 sell)Click to edit Master text styles
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Fourth level› Fifth level Sophisticated customer analytics for enterprise sales
decisioning
Quick, accurate customer value delivery
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New Enterprise Sale Process
Use market data, research and analytics to develop a target list of clients or initiatives.
Gain an understanding of the Client’s long term priorities
Create a custom solution utilizing NBCU’s array of assets.
Set up measurement tool and execute Client solution across all properties.
Monitor delivery and evolve solution as necessary.
Tested on a single enterprise account• Resulted in one Account Plan developed by cross-property AEs
• Two Big Ideas were developed and presented to address Client’s largest ’09 product launches
Next Step: Two enterprise accounts in 2009
Process Being Tested and Refined
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Sales Systems
Mainframe Dealmaker Ideal
Operative
NBC Customer Data Warehouse
Gabriel WideOrbit
Enterprise VCI OSI
Post
Pri
or
• Single View of Customer (270 to 1 GM)
• NBC Sales, D&B, CMR, Research Data • Big Marketing Idea Workflow
• 6.5 Month GEN-1 Rollout
• Joint Account Ownership
• Wing to Wing visibility
• Independent NBCU Commercial Data Warehouse
• Transparency throughout the organization
Business Needs
Aggressive Timeline
All About the Data
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Enterprise Selling
• Analytics to determine key accounts
• Defined tools, milestones and deliverables for each Enterprise step
• Accountability with sales leader
•Results in a coordinated “Go To Market” strategy
Created one complete Enterprise
process
•Develop a long-term account plan
•Structure Ad Solutions to address Client’s long-term needs
•Create sticky “Big Idea” Creative Marketing solutions
• Allows for clear NBCU resource allocation
•One view of the Client
•A place to capture all contacts and learnings about the Client
• Clear understanding of the impact of the Enterprise process
Operationalized Through Sales
Systems
Empowering senior sales leaders to grow
strategic accounts
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1
SIC Reporting – Live Dashboard
Usage
Meetings
Pipeline
Pipelineby AE
1
2
3
4
2 3
4
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1 /GE Title or job number /
6/23/2008
The CorporateAccountsteam facilitates mutual growth with GE’s top suppliers.
• Develop Relationships w/ Commercial & Operating Leadership
• Gain Understanding of Mutual Initiatives & Growth Opportunities
• Facilitate Introductions Between Both Companies re: Key Interest
• Mutual Revenue Opportunity
• Multiple Business Opportunities
• Bi-Lateral Access to Senior Management
• Executive Sponsorship
Process
Success Factors
GE Corporate Accounts
Targets
Tata GroupMarshSAPNielsen MediaSASNASDAQ
ADPUS Golf AssocUS Tennis AssocDow Jones & CoWWEHPDell
Analyze (Sourcing Spend): Determine Relationships:
Track ROI – Salesforce.com
Account Targeting
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APPENDIX
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Synopsis
In the first quarter of 2007, NBC Universal’s Strategic Initiatives & Analysis (SIA) in conjunction with Ad Sales Commercial Excellence Team launched a major transformation initiative to streamline sales processes across eight cable, TV and digital properties. Recognizing new market needs, NBCU’s new strategy and resulting capabilities created a strong platform for growth and a shared vision across a traditionally silo organization. In this sales operations case study we will explore the cultural challenges facing SIA and the use of simple yet powerful process improvement tools and methods to drive ground-breaking change. Furthermore, we will share some of the strategic changes that NBCU is making to transform its advertising sales models to create new value for its customers and the required cultural, organizational, and process changes that are underway to unlock future commercial opportunities.