sorrento (aeks) final v1.2
TRANSCRIPT
Alexey Dzybenko ▪ Evgeny Glushkov ▪ Kirill Kondakov ▪ Stanislav Orekhov
Project SorrentoTransforming Field Sales to fuel double-digit growth
SorrentoNovember 26th 2010
2
Sorrento
The Sorrento team is
Source: Sorrento CVs
Evgeny, Kirill, Stas Alexei&
HSE MIPT
HSE MIPT ITMO
MEPHI MIPT
SPB STU
3
Sorrento
Project summaryImplementation plan
4
Sorrento
Field Sales will be reorganized to respond to internal and external challenges it faces
Source: Case data, Sorrento analysis.
Consolidation of retail
Expansion of modern trade
Increase in expectations
Grow salesx2 by 2014
Improve efficiency
External Internal
Challenges Changes Structure Responsibilities Headcount Impact
5
Sorrento
We will facilitate Food/HPC cross-sales and tailor marketing strategies to sales areas
TT = Traditional trade; MT= Modern trade; SA = Sales area; MS = Market shareSource: Case data, Sorrento analysis.
Facilitate HPC/Food
cross-sales
Goal Action
Tailor marketing strategies
to SAs
TMETerritory
Marketing Executive
Introduce Territory
Marketing Executive
s
Combine Food &
HPC sales guys
except in TT
$+15% sales
(+40% in MT)
+3% MS+17% sales
Challenges Changes Structure Responsibilities Headcount Impact
6
Sorrento
We will triple the number of MTAEs and cut duplicate functions to increase efficiency
Source: Case data, Sorrento analysis.
Engage emerging
MT companies
Goal
Increase efficiency
Action
Triple number of
MTAEs
Cut duplicate functions
×3
Modern Trade Activation Executives
5 15
+15% sales
Enabler
Challenges Changes Structure Responsibilities Headcount Impact
7
Sorrento
Structural changes will include introduction of TMEs and changing the role of CDAEs
Source: Case data, Sorrento analysis.
RSMRegional Sales
Manager
NSDNational Sales
Director
MTAEModern Trade
Activation Exec..
MTEModern Trade
Executive
TTAETraditional
Trade Activation Exec…
CSSCustomer Sales
Specialist
TMETerritory
Marketing Executive
RMERegional
Marketing Executive TSM
Territory Sales Manager
1
15
3
3
15
30
15
15
SCSSSenior
Customer Sales Specialist
65
80
x
Federal
Regional
Sales area
FTE count
Challenges Changes Structure Responsibilities Headcount Impact
Pool of specialists
KA
KA
KAD
TTD
KATTMT
KAMT
TTMT
MTD
x Interaction: KA = Key accounts; MT = Modern trade; TT = Traditional trade; D = Distributors
8
Sorrento
A discreet split of responsibilities between hunters and farmers will be introduced
Source: Case data, Sorrento analysis.
MTAEModern Trade
Activation Exec.
MTEModern Trade
Executive
TTAETraditional
Trade Activation Exec.
Develop field sales strategyCoordinate Field Sales
Negotiate with distributors in TTControl contract implementationControl promo budget for TT
Negotiate with regional partners Develop & coordinate the team
Negotiate with SA partnersDevelop pricing policyZone distributors
Develop regional trade marketing strategy
Develop regional customer marketing strategy
Adapt trade marketing strategyPlan promo activitiesNegotiate with agenciesControl agencies’ performance
Hunt for new clients in MTImplement KA strategyControl promo budget for MT
Control MT and distributors contract implementation
Control pricing and discounts
Everything CSS doesIdentify potential for new outletsDevelop exclusive sales forceAssess local retail universe
Manage sales representativesImplement promo activitiesSupport distributors’ businesses
SCSSSenior
Customer Sales Specialist
CSSCustomer Sales
Specialist
TMETerritory
Marketing Executive
RMERegional
Marketing Executive
TSMTerritory Sales
Manager
RSMRegional Sales
Manager
NSDNational Sales
Director
Challenges Changes Structure Responsibilities Headcount Impact
9
Sorrento
Transformation will result in a more lean structure with a total reduction of 25% FTEs
*Including 20% salary increase for National Sales Director, Regional and Territory Sales Managers left after combining Food and HPCTT = Traditional Trade; MT = Modern Trade; Traditional Trade Activation Executive = ~ex-CDAESource: Case data, Sorrento analysis.
Current NewFood HPC Total Total
National Sales Director 1 1 2 1Regional Sales Manager 3 3 6 3Territory Sales Manager 15 15 30 15Distribution Supervisor 3 3 6 -Regional Marketing Executive
3 3 6 3
Territory Marketing Executive
- - - 15
TT Activation Executive 16 16 32 32MT Activation Executive 3 2 5 15MT Executive 29 30 59 30Senior Customer Sales Specialist
47 35 82 65
Customer Sales Specialist 45 55 100 80∑ 165 163 328 244
Opportunity for selected MTEs to be promoted to MTAEs
Functions transferred to others, mostly MTEs and TTAEs
Former CDAEs now focus more on sales rather than operations
Food & HPC combined Food / HPC separate
Challenges Changes Structure Responsibilities Headcount Impact
–26% FTE–23% costs*
10
Sorrento
Implementation of Sorrento project will allow to double sales in Euros by 2014
* We assume Cascade targets are set in EurosSource: IMF, Переговорная №2, Sorrento analysis.
15%2= Foo
dHPC
TME
17%
МТАЕ
15%
×3
9%
19%
Market growth
Inflation, RUB
55% 30%
Challenges Changes Structure Responsibilities Headcount Impact
30%Inflation,
EURRate,
RUB/EUR9%
in EUR*
11
Sorrento
Project summaryImplementation plan
12
Sorrento
Sorrento implementation approach is focused on ensuring business continuity
* Unilever Code of Business PrinciplesSource: Sorrento analysis.
Smooth transition for clients and employees
Minimization of business disruption risk
Commitment to UL CBP*
Priorities Activities Clear communication and
stakeholder management Comprehensive training Providing new career
opportunities for talents
Approach Team Schedule Opportunities Results
13
Sorrento
The team should be structured in 3 groups corresponding to project’s functional areas
PMO = Project Management Office; VP = Vice-president; MT = Modern Trade; TT = Traditional TradeSource: Sorrento analysis.
PMO Project
manager Administrator
Steering committee CEO VP Customer
Development VP Human Resources Capability Building
Director National Sales Director
Communication PR Manager PR Specialist
Training HR Manager 2 Trainers 3 external
assessors
Reorganization HR Specialist 2 Capability
Building Specialists
4 functional experts (MT, TT, Food, HPC)
Approach Team Schedule Opportunities Results
14
Sorrento
Implementation is structured in 3 phases each with its own distinct goal
NSD = National Sales Director; RSM = Regional Sales Manager; TSM = Territory sales manager; RME = Regional Sales Manager (ex-CME); TME = Territory Sales Manager; TTAE = Traditional Trade Activation Executive (~ex-CDAE); MTAE = Modern Trade Activation Executive; MTE = Modern Trade Executive; (S)CSS = (Senior) Customer Sales Specialist; DS = Distribution SupervisorSource: Sorrento analysis.
1. Organization 2. Initiation3.
Transformation Plan and prepare Revise duties -1 NSD
MTE, SCSS, CSS CDAEs → TTAEs +10 MTAEs
NSD, RMS, TMS Introduce TMEs
Combine Food & HPC for position
Jan 11 Mar 15 Apr 15 Jul 18 weeks 8 weeks 8 weeks
Approach Team Schedule Opportunities Results
15
Sorrento
C-level
PMO
PR Group
Training
Group
Reorg. Group
The first phase will lay the groundwork for change
Mar 1Jan 1 Feb 1
Source: Sorrento analysis.
Dev. of Communication Strat.
Dev. of new KPI SystemConsolidation of staff perform. data (CRM, KPI, etc)
BoD Meeting, dismiss 1 NSD
Set up PM team
Develop project plan
Assemble project workgroups
Dev. of Training Program
Approach Team Schedule Opportunities Results
16
Sorrento
C-level
PR Group
Training
Group
Reorg. Group
The second phase will introduce changes at federal and regional level
May 1Mar 1 Apr 1
Source: Sorrento analysis.
Recruiting and introduction of TME
Video letter from NSD
Communication campaign (presentation, press-releases, news etc.)
RSM Assessment
TSM Assessment
TSM RSM FOOD+HPC Training
NSD TSM RSM Change Manag. Training
Approach Team Schedule Opportunities Results
17
Sorrento
Training
Group
The third phase will cover the hard work of bundling HPC/Food and cutting headcount Jul 1May 1 Jun 1
Source: Sorrento analysis.
MTE Assessments
MTAE Sales Force training
S/CSS Training, E-learning
MTAE MTE HPC+FOOD Training
S/CSS Assessments
Approach Team Schedule Opportunities Results
PMO, Communication and Administrative processes runs in the background until the end of the project
18
Sorrento
There will be several options for redundant employees to stay with Unilever
NSD = National Sales Director; RSM = Regional Sales Manager; TSM = Territory sales manager; RME = Regional Sales Manager (ex-CME); TME = Territory Sales Manager; TTAE = Traditional Trade Activation Executive (~ex-CDAE); MTAE = Modern Trade Activation Executive; MTE = Modern Trade Executive; (S)CSS = (Senior) Customer Sales Specialist; DS = Distribution SupervisorSource: Sorrento analysis.
NSD RSM TSMCDA
EMTE SCSS CSS DS
Vacant positions in Unilever and outplacement
Relocation abroad
Other positionin Field Sales
TME
Promotion MTAE
MTAE
Approach Team Schedule Opportunities Results
19
Sorrento
In 6 months Field Sales will be a more efficient unit ready for double-digit growth
* Unilever Code of Business PrinciplesSource: Sorrento analysis.
FTE -26% HR costs -23% Duration: 6 months
Market share +3% in 3 years Sales revenue +100% in 3 years
Implementation costs 550 000 EUR: Compensations 300 000 EUR Consultants 150 000 EUR Other 100 000 EUR
Approach Team Schedule Opportunities Results
That’s itQuestions, please!
Sorrento
21
Sorrento
A risk mitigation plan will be developed in December to address major project risks
* Unilever Code of Business PrinciplesSource: Sorrento analysis.
Backup
Risk Impact Mitigation
Dismissed NSD leaves ungraciously
Medium
Engage NSD from EU
Negative gossip spreads
HighPlan communication strategy ahead
Regional staff structure becomes unbalanced
HighEmploy consultants to perform sales force sizing
Excessive staff workload
Low Increase headcount