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Conference 7.286::digital

Title:The Digital way of working
Moderator:QUARK::LIONELON
Created:Fri Feb 14 1986
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:5321
Total number of notes:139771

2466.0. "How to make Q4 - European Style" by KIPPIS::LOD (Just Do It ...!) Thu Apr 15 1993 13:08

         
         TO: EUR CM      FOR DISTRIBUTION   TO: THE "SELLING" WORKFORCE
             	                            CC: CMT
         
         TO: EUR DEE CM  FOR DISTRIBUTION   TO: THE "SELLING" WORKFORCE
         
         CC: EUR MGMT BOARD
             EUR HRO FMT
             EUR HRO CM
         ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
         
         
         This message is from Dick Poulsen
         ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
         
         The most frequently asked question when I visit the field is about 
         our status on the downsizing of the company and a return to 
         stability in our organization. Obviously it is a question I cannot 
         answer since unless we restore growth, continued downsizing is of 
         course inevitable. 
         
         Today we have most of our product offerings in place and many are 
         as good as any on the market. What we need now is confidence in 
         our ability as a professional sales organization that we can 
         outsell and outdeliver our competition.
         
         We also continue to struggle to deliver our FY93 BOD plan. To some 
         extent this is driven by the world economy which reflects most 
         countries in Europe. Obviously it is imperative that we deliver 
         our FY93 plan. If we do, it will clearly help stabilize our 
         downsizing and equally important help restore confidence and 
         aggressiveness in our selling force. 
         
         With one quarter to go we need to generate 2 B$ in revenue and 457 
         M$ in contribution. This is a formidable task, and based on the 
         current forecast, we will fall short 175 M$ in revenue and 96 M$ 
         in contribution. That translates to approximately 70 K$ per sales 
         professional. We believe if everyone is working at a 110% effort, 
         we can make up the shortfall. 
         
         To help you to get there, the EMB has agreed to put a cash 
         incentive program in place for every sales and service person 
         carrying a Certs budget in Q4. This plan covers all products that 
         are available for shipment in Q4 and is intended to achieve 
         maximum focus on your part in selling, shipping and invoicing 
         these products before the end of Q4. The plan is universal across 
         Europe and includes cash incentives both for sales towards 
         achieving budget as well as additional incentives for 
         overachievement of budgets.
         
         This target incentive program has been forwarded today to your 
         management and I would encourage each of you to ensure you are 
         briefed immediately so that you can take advantage of the full 
         remaining 13 weeks of this quarter. We will keep you posted on our 
         weekly progress and we look forward to your success which means 
         our company's success.
         
         GOOD SELLING !!
         
         
         Regards,
         Dick Poulsen
         /tc
    
T.RTitleUserPersonal
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2466.1Better than Food Stamps?AUSTIN::UNLANDDigitus ImpudicusThu Apr 15 1993 19:385
    re: .0 and cash incentives ...
    
    Is this another one of those $250 things?
    
    Geoff
2466.2SWAM2::MCCARTHY_LATexas Supply Chainsaw MassacreThu Apr 15 1993 20:235
    re: .1;
    > Is this another one of those $250 things?
    
    You mean the, ahem, "virtual" cash incentive? :-/
    
2466.3Dream on!LACGID::BIAZZOHow low can we go?Thu Apr 15 1993 21:338
         Today we have most of our product offerings in place and many are 
                       ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
        as good as any on the market. What we need now is confidence in 
        ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Oh really?  I think if this were true we wouldn't have such a shortfall.

	
2466.4SNOC01::NICHOLLSProblem? ring 1-800-382-5968Thu Apr 15 1993 22:425
    >    Today we have most of our product offerings in place and many are
    >	as good as any on the market. 
          
    Surely to sell these products they need to be better than others on the
    market. Being just as good is not good enough...
2466.5Good enough is best-'better' dependsANNECY::HOTCHKISSFri Apr 16 1993 07:2114
    Don't really agree-if we have any rpoduct which is red hot and
    better/cheaper than competition,it is like a red rag to a bull and
    competitors will do their best to be better asap.If a product is
    marginally better,then efforts might be lower.Bottom line is that being
    better is not the issue-our products are excellent in my humble view
    and will be constantly challenged and overtaken and we will respond.
    IF everybody always bought the best product,wouldn't we all be driving
    Rolls Royces?No,we don't,not because we can't afford it but simply
    because RR target certain customer groups.This is something that we
    appear to be lousy at-whenever I mention it to marketing folk over
    here,it's like I came from another planet.I did actually-I used to work
    for Intel and they didn't seem to have a problem with the concept....
    
    Next one for the soapbox?
2466.6PEKKA::peuraPekka PeuraFri Apr 16 1993 11:5511
re: .1
>    re: .0 and cash incentives ...
>    
>    Is this another one of those $250 things?
>    
>    Geoff


	This is real money. Sales reps get 2% of their Q4 revenue, if they
	are over 100 % their budget, and 1% if they are below budget.

2466.7Not a Q4 only incentive in all Euro countries!IW::WARINGSimplicity sellsFri Apr 16 1993 12:5512
2466.81% for missing budgetCSLALL::WEWINGFri Apr 16 1993 13:454
    sales reps get 1% of revenue, even if the MISS budget.
    that's an incentive!?
     
    willie
2466.9Fat chance ;-)IW::WARINGSimplicity sellsFri Apr 16 1993 16:083
Hmmm, and i'm responsible for delivering $89.9M NOR by end Q4... ;-)

								- Ian W.
2466.10This is US plan !ODIXIE::PERRAULTFri Apr 16 1993 19:0415
    Wow, $12+ K for making your number?  All I can say is DEC really
    knows how to dis-incent its' US sales force.  We get $0, for making 
    our budget.  But we do get to keep working 70hour weeks, no training
    or expenses, and now perform the function of two since all the layoffs.
    In fact we'll be the lucky ones to get the worst TFSO after hanging in
    all this time.
    
    Makes me excited for FY94 when we get to participate in a 10% pay CUT
    and then have the opportunity to get it back.  What a commission plan!
    
    Just for laughs, in order for the US sales people to make $12K over
    salary, we would need on average to do 150+ % of budget.  Seems alittle
    off base.
    
    But, good luck !
2466.11We need salespeople up topPOCUS::BOESCHENFri Apr 16 1993 20:217
    I agree with .10. The US sales mgt team has no idea how to motivate
    us sales folk in the US.  
    
    However, being a salesman for my entire career, I incent myself to
    reaching the minimum level of 100%.
    
    Good luck to all my fellow peddlars!
2466.12Somebody's listening.HOCUS::BOESCHENSat Apr 17 1993 10:164
    They just announced in the US the 1% kicker for anything you
    sell & invoice in Q4. I guess I spoke to soon. (re.11)
    
    I'll be at my customers for the rest of the year!
2466.13HAAG::HAAGRode hard. Put up wet.Sat Apr 17 1993 18:042
    i'm not even going to mention what those of us who directly support the
    sales people get. everyone pretty muchs knows the answer.
2466.14TENAYA::RAHloitering with intentSun Apr 18 1993 06:482
    
    it comes on thursday, or am i missing something?
2466.15HAAG::HAAGRode hard. Put up wet.Sun Apr 18 1993 22:517
    robert
    
    if the weekly paycheck should satisfy me, it should also be adequate
    compensation for my brothers/sisters who carry the sales bag. there
    seems to be many from top to bottom who think that that is not the
    case. i don't ask special favors. just fair treatment. that should be
    expected. not something one has to campaign for, as it is today.
2466.16???OZROCK::FARAGOFY94 HW$6B SW$4B Serv$7BMon Apr 19 1993 05:355
    re .12 I'll be at my customers for the rest of the year!
    
    Why aren't you there normally?
    
    only 1/2 :-)
2466.17q4 quick revenue onlyKIPPIS::LODJust Do It ...!Mon Apr 19 1993 09:436
    The euro/finnish plan is also sell-deliver-invoice = revenue in Q4.
    Everything that has been sold/booked in Q3 or before that generate
    revenue in Q4 does not count.
    
    	- tomi
    
2466.18HOCUS::OHARAMon Apr 19 1993 11:506
>>    The euro/finnish plan is also sell-deliver-invoice = revenue in Q4.
>>    Everything that has been sold/booked in Q3 or before that generate
>>    revenue in Q4 does not count.
  

Ditto the US plan.
2466.19GRANMA::MWANNEMACHERBeing a Daddy=The best jobMon Apr 19 1993 13:157
    
    Right Gene, us support folks aren't worth squat, we are a dime a dozen
    and should be lucky to have our jobs.  BUt you know this by now.
    
    
    
    Mike
2466.20SDSVAX::SWEENEYPatrick Sweeney in New YorkMon Apr 19 1993 14:2022
    My guess is that this is a repeat of last year's scam.  What's within
    the control of the sales rep is to induce a customer to present to
    Digital a purchase order.  This is alternatively called "selling" or
    "certing".

    What happens after that event is out of the control of the sales rep. 
    Namely the process of "revenue", "delivery" and "invoicing" depends on
    what's in the warehouse and how efficient is the process of moving
    products from warehouse to customer.

    As for services, typically they are invoiced as they are delivered.

    I wish I could recall Jack Smith's wording.  From my incomplete recall
    it was "Although the sales force met the certs goal, it didn't meet the
    revenue goal because so many of the orders could not be filled in the
    time available."

    It's hard not to be cynical about all this.  What should be "incented"
    is consistent performance, not the mad Q4 rush:

    A lot of customers know from experience that what Digital resists in
    terms of making a deal in April or May, Digital will take in June.
2466.21reply to a reply.....POCUS::BOESCHENMon Apr 19 1993 14:396
    re .16- As most salepeople at DEC know, we spend most of our time
            dealing with the internal sales-prevention people.
    
    re .20- When customers can delay purchasing from a vendor until
            the last month of that vendors year, they know they will
            get the best possible deal. This is not an uncommon practice.
2466.22TOMK::KRUPINSKISlave of the Democratic PartyMon Apr 19 1993 14:5912
>    re .16- As most salepeople at DEC know, we spend most of our time
>            dealing with the internal sales-prevention people.

	What has changed so that you don't need to do this now? - If you
	had to do this the rest of the year, why not now? Or conversely,
	if you can ignore this now, why not ignore it the rest of the year?

				Tom_K

	PS Hard questions, I know, and I'm not picking on you - I just want to
	know...

2466.23GRANMA::MWANNEMACHERBeing a Daddy=The best jobMon Apr 19 1993 15:2511
    
    And you insinuate that the rest of us try and make it hard/impossible
    to do business, this is pure bull and I imagine that if you looked into
    it a little you would find out that it isn't the people in the wasy
    rather the P's&P's that we are tasked to obey in doing our jobs.
    
    
    
    Mike (who has had many an order come through unprocessable)
    
    
2466.24Desperate men take desperate actionCGOOA::DTHOMPSONDon, of Don's ACTMon Apr 19 1993 17:2221
    What a wonderful place!  Where else can you make a deal - i.e. accept a
    budget - not follow through on your part and then get a better deal as
    a result.
    
    I guess Digital's ideal salesperson would work quietly with his
    customers and make some internal friends (sharing the cash might do it)
    so that all sales could be made the third week of June and everything
    would ship by air the fourth week.  Product would, of course, be hidden
    somewhere for him as he called it in (rather than putting through legit
    orders) to whoever he was paying on the inside.
    
    This hero would further help manufacturing planning.
    
    
    And besides - that stupid comment on product quality really ticks me
    off.  If the company sold stuff properly we wouldn't be in such a
    slump.
    
    Maybe 'Neutron Eddy' will fix this nonsense!
    
    Don
2466.2529215::RWARRENFELTZWed Apr 21 1993 17:1810
    I've seen the games played both ways.  At a central processing
    facility with it's undertone of make sure it matches the P&P exactly,
    the CYA naturallt takes over and slows up order processing for 11
    months of the fiscal year.  In June, ALMOST anything goes that can be
    certed if a manager is willing to sign off, and worry about the
    problems it causes in the next fiscal year.  On the other hand, being
    in a remote sales office this past 15 months, orders are processed so
    much easier without the unnatural roadblocks & obstacles that are
    placed in a central processing facility.  The things that would be put
    on "hold" are worked through YEAR ROUND!
2466.2635261::ROGERSWed Apr 21 1993 23:255
    re:  .24
    
    "If this company sold stuff properly we wouldn't be in such a slump."
    
    No problems in any other area of the company? 
2466.27Everybody else is perfect!TPSYS::BUTCHARTTNSG/Software PerformanceThu Apr 22 1993 11:5813
    re .26
    
    >>No problems in any other area of the company? 
    
    Of course not!  (Oooooh boy, that must have made my nose grow a foot!)
    
    Having started in Digital's internal information systems group quite a
    while ago, and worked in software engineering for quite a while too,
    I'd have to say that the company has produced quite a few poorly
    conceived, badly executed, and confusing or contradictory software
    products.
    
    /Butch