Embed Size (px)
Citation preview
Better Performance Management Through Robust Analytics
Christopher Pircio
CFO
New England Media Group
Dennis Newman
Director, Finance
New England Media Group
June, 2008
Agenda
1.1.
3.3.
4.4.
5.5.
6.6.
7.7.
2.2.
Who we are
What we did
Business issue identification
How we did it
Review of the tool
Lessons learned
Final comments
The Boston Globe is a subsidiary of the New England Media Group
NEMG is a company with revenue of approximately $600MM and 2,400 employeesNEMG is a company with revenue of approximately $600MM and 2,400 employees
Wh
o we
are
Your needs BGM media plan
#1 newspaper for circulation and readership in New England
Best read newspaper in Worcester County
#1 content site in New England
#1 composition of 18-34 year olds among Greater Boston newspapers
Custom events, buzz marketing and sponsorships
#1 direct mail service provider in the market
Our recent partnership with Monster.com has created a jobs site with over 50,000 listings.
Top rated local cable sports station
Started in 1872 by Evan Jordan of Jordan Marsh department stores, the Boston Daily Globe and related properties were purchased by the New York Times in 1993. New England Media Group is comprised of:
The Globe’s powerful content offers a strong platform for our clients
• #1 newspaper for readership and #1 for circulation in New England
• Daily Readership = over 900k
• Sunday Readership = nearly 1.5 million
• 20 Pulitzer Prizes
• Market leader for over 130 years
• Trusted source for news and rich journalism
Source: 2007 Scarborough Research, Recontact Study, Boston DMA; February 2008, Nielsen//NetRatings
The region’s strongest marketing vehicle
45% of Bostonians say the trust newspaper
advertising more than any other media
MAIN NEWS
CITY/REGION
BUSINESS
SPORTS
IDEAS/BOOKS
OP ED
WEEKEND
LIVING ARTS
STYLE & ARTS
MOVIES
FOOD
HEALTH/SCIENCE
CALENDAR
SIDEKICK
GLOBE MAGAZINE
COMICS
ARTS & ENTERTAINMENT
FASHION BOSTON • #1 regional website in New England
• #6 newspaper website in the country
• 4.9 million unique users monthly
Wh
o we
are
Business Problem & Background
The impetus for change was an antiquated state of processing commissions. Subsequently, we realized this “bad process” was also hindering performance management and our ability to drive sales behavior.
Commission Administration:Commission Administration:
• Excel calculations with manual input (3-4 FTE’s)• Word documents and excel file to explain the calculations to reps• Word/PDF document to illustrate account revenue, static / updated monthly
Performance Management:Performance Management:
• Overall results were posted and discussed a month in the arrears• Discussions were usually about goal attainment, not about the drivers of revenue• Very little reporting was available• Reps never could draw a line of sight between goals and commission payments• Newer reps would come on board and ask, “where are my reports” • No spirit of competition on the sales floor
The challenge was not just the systems and processes, but the culture…
Bu
siness Issu
e
It became apparent that we needed a robust performance management solution
To solve the commission automation and limited analytical capabilities needs
IT and Finance
+
Business Sponsors (Sales and Marketing)
+
Vendor Support
=
Collaborative Team Approach with Subject Matter Experts
Wh
at We D
id
The group reached consensus on the problem and addressed the scope / funding of the initiative
Improve accuracy and efficiency of commission processing by automating the process of calculating sales commissions for the outside sales representatives
Create robust sales management reports that facilitate performance management discussions between directors, managers and reps
Provide a greater level of insight, timeliness and transparency into the commissions calculation
Provide greater visibility into our relationships with customers and what they are buying across NEMG
Sales Commissions
Return on Investment
Improve revenue through increased rate yield, better insight into account performance and account activity
Reduction in commission administrative time (~ 1 FTE)
Wh
at We D
id
Account performance
Commission maintenance
Logic applied to accounts
Legacy data loaded
Revenue Adjustments
Commissions Calculated
Account assignment changes
New accounts entered
Reassign book of business
Plan parameters are updated
Sales executive and plan types are maintained
Goals are entered for each sales exec at the account level
Back out house accounts and certain adjustments
Back out GD postage and trucking
Back out IC and GS sales divisions
Data is automatically fed from the TAAS system to the RPM (nightly)
Sales comm. admin logs into the RPM and reviews revenue, adds in SPIFFs, Guarantees, performs revenue splits, etc
Calculate commission at goal by sales rep (nightly estimate, end of month final)
Calculate commission % revenue over goal by sales rep
Finalize commission and submit final payment to payroll
Our initial goal for sales commissions was to move from the current manual process…
To an automated process that still met our needs for flexibility of plans and processing
Wh
at We D
id
So our initial focus was around administrative improvement, not improved analysis
Excel based, manual entry updated on demand
Web-based system, updated nightly with audit trails on values input online
Wh
at We D
id
Based on the thirst for knowledge from the sales execs, we also realized we need to upgrade their reporting
The key to migrating the sales exec reporting was to provide the same metrics and data elements, but with an analytical lens.
Lotus notes database
Secure, web-based application
Wh
at We D
id
We found that a cross-functional team was critical to success
Sponsors
Chris PircioFinance
Lisa DeSistoAdvertising
Peter OckerbloomAdvertising
Thom GuertinInformation MgmtProgram Manager
Sales Commissions & Team Leaders
Wendy Evans
IT Technology Support Team
Judy BacherMike Quagliato
Advertising/Finance
Dennis Newman
Executive Steering Committee
George BarriosFinance
Sam MartinAdvertising
Chris MayerInformation Technology
IT Information Mgt TeamDavid Doolittle
Sibu TshabalalaBill Mackey
IT Admin & DBAJim Fitzpatrick
Sales CommissionsSME
Mary Ellen Zarro
Palladium Engagement Manager
Kelli Bodayla
Consultant ImplementationDina Apovian, Business Analyst
Marcus Jurado, ETL ArchitectBrian Healey, Database Developer
Subject Matter Experts
Advertising SalesAdvertising Bus Dev
Advertising MarketingAdvertising Ops
Strategic Planning
GSPWTG
Boston.ComFPA SME’s
Ho
w W
e Did
It
Together, we created a data mart and leveraged a web-based analytical tool to support these needs
ETL
Sales Commission Oracle Data Mart and Decision Support
Application
TAAS
AdvertisingData Sales Commissions
Web FocusPortal and Reports
Ext
ract
Tra
nsf
orm
an
d L
oad
Web FocusMaintain Screens
Oracle Staging Area
HR EDW
Ho
w W
e Did
It
•Various time period analysis•Scrolling message board•Internal payroll feed updates•External payroll feed updates•System Updates•Commission Metrics•Revenue Performance per Division• Sales Executive Rankings by Revenue, Commission, Goal Attainment, Plan
•Various time period analysis: •Scrolling message board•Goal Fulfillment Performance•Revenue Attainment•Cross Property Performance•Ranking by several metrics•Top Customers: Underperforming ‘Big Spenders’•Active/Inactive Accounts•Revenue Performance per Property
•Various time period analysis
•Scrolling message board•Revenue Analysis•Sales Executive Fulfillment to Goal•Cross Property Performance•Sales Executive Commission & Rate Statistics•Top Spending Accounts•Total Division Revenue Performance •Full Run, Part Run, Daily, Sunday Revenue Statistics
•Missed Payroll Records•Account Changes•Employee Status Changes•Inactive Accounts•Revenue Report•Sales Goals•Commissions Report•Commission Adjustments•Sales Executive Rankings•Revenue Summary•Account Revenue Performance•Rate Summary•Transaction Detail•Commission Calculation Worksheet•Customer Rankings•Active/Inactive Accounts•New Business/New Accounts
•Revenue Summary•Account Revenue Performance
•Rate Summary•Commission Calculation Worksheet•Customer Rankings•Active/Inactive Accounts•New Business/New Accounts
The result became an analysis toolbox available to sales executives, managers and administrators
•Sales Goals by Dollar & Percent•Revenue•Temporary Coverage•Internal/External Payroll•Plan Type Assignment/Changes•Commission Payment Approval•Scorecard•Account Commission Status•Plan Parameters
Ad
min
istr
ato
r
To
ols
Portals Gateway to Reporting
Sa
les
Exe
cutiv
e
To
ols
Sa
les
Ma
na
ge
r
To
ols
Reports Web Based Data
Retrieval
Maintain Data Input
Interface
Ho
w W
e Did
It
Implemented tighter security Sales Executives cannot review each other’s data Managers can only view the information for their direct reports SOX compliant (it is payroll data)
Created administrator input as well as output options We recognized that we would still have certain process challenges which
required both input and output screens.
Added more reports (with others on the way) Sales reports System access reports
Migrated to a nightly processing time Limitations to our underlying systems forced system down times Creation of a dependency on an older system the timing of which could impact
the values
Over the course of the project, we identified a few enhancements to RPM capabilities
Ho
w W
e Did
It
Easy to use navigation was deemed to be critical to success
Portal Tab:• Launches portal for viewing
Tab Navigation:
Parameter Selection:
For reps these will default to the rep name & division:• Manager select reps from drop down list
Select desired time period, then click refresh
Report Tabs:• Revenue Summary• Account Revenue Performance• Rate Summary• Commission Calc Worksheet• Active/Inactive
Re
view
of the
Too
l
Tier PortalThe sales executives went from a single weekly Lotus Notes report to the Sales Executive Portal.
It contains: Goal Fulfillment Underperforming “Big Spenders” graph Active/Inactive Accounts My Statistics Cross Media Revenue Performance
Daily revenue and performance information, on ONE page!
For the sales executives we created a portal as well as up to seven reports
SAMPLE DATA
Re
view
of the
Too
l
A quick indication of current performance. Commission status corresponds to the meter’s needle position
Red – less than 90% of goal for Tier 1, less than 80% of goal for Tier 2
Light green – between 90% and 100% of goal for Tier 1, between 80% and 100% for Tier 2
Dark green – above 100% of goal
Daily tracking of commission status. No more waiting until the end of the month to get a sense of progress but it is only an estimate.
Tier 1
Tier 2
For example we provided the sales execs with up to date tracking towards goal
SAMPLE
DATA
SAMPLE
DATA
Re
view
of the
Too
l
Information that helps sales execs focus on their accounts – now he/she knows which accounts are behind on spend.
Depiction of the Top 10 spend variances by customer.
X – axis identifies the ‘big spender’ customers
Y – axis indicates the size of the revenue variance
Variance = revenue for selected period – revenue from the same period last year
Data sorted in order of greatest variance to smallest variance
We also wanted the provide the sales execs with a ‘quick hit’ of which clients to call first
SAMPLE DATA
Re
view
of the
Too
l
Daily updates to information which was previously provided infrequently, if at all.
Estimated Payment
Earned Commission
Revenue performance per property
Ranking comparisons to other SE’s across multiple categories. Ranking occurs within the division and across all outside reps.
Average rate information compares personal average rates this year to
last year.
To focus on individual performance, the ranking and commission estimates are on the portal
SAMPLE DATA
Re
view
of the
Too
l
The metrics appear both on the portal AND in detail on the reports
Tracking of book of business. Inactive accounts = opportunities for revenue!
Breakdown of the book of business by active and inactive accounts.
Active accounts: New Account, New Business, or Base Business
Inactive accounts: An account that has not had a transaction in the current month or the previous 13 months.
SAMPLE DATA
SAMPLE DATA
Re
view
of the
Too
l
Core to the effort, the sales execs now have a commission calculator report updated nightly
Detailed insight into the commission numbers!
Monthly and period goals.
Month by month commission, payment and bank values.
Ability to see additional commission adjustments including SPIFFs.
SAMPLE DATA
Re
view
of the
Too
l
Each sales exec receives two performance reports, both with drill down capabilities
Provides comparison of the sales exec’s performance year over year.
Account by account searching as well as the ability to view the entire set of accounts owned by the rep this year or last year.
Report contains both a detailed and summary option.
SAMPLE DATA
Re
view
of the
Too
l
Manager Portal Managers are provided
with an aggregate view of the sales rep portal. Regardless of plan type, managers can view both the detailed rep report and aggregate views – right up to the CAO level!
Application facilitates performance management conversations as well as revenue analytics.
For the managers we created a summarized portal as well as sales exec and personal reports
SAMPLE DATA
Re
view
of the
Too
l
Another manager report provides sales executive rankings for performance measurement
A ranking of all sales reps that report to a manager. Ability to sort/rank based on any of the column headers in blue. Sorting by division enables ranking among the reps in the division.
Supports the sales performance measurement processes by enabling managers to view all direct reports at once
SAMPLE DATA
Re
view
of the
Too
l
User community response has been positive…
Sales Manager:
“It was like being legally blind and now having 20-20 vision.”
NY Times Corporate Controller:
“This is the best thing I have seen in a long time. “
CAO of NEMG:
“This is incredible. We need to spend more time with this and really leverage it. Can I get…”
Tool Administrator:
“ I love it. The tool answers so many questions that I used to field from the sales reps. Processing time is instantaneous, allowing me to spend more time in the analytics.
Re
view
of the
Too
l
Implementation of the solution was a bit challenging at first
Infrastructure Poor data quality Poor processes exposed Commission plan design changes
People Unionized sales force Patience – it takes time to do this well Team turnover Resource skills - do you know any Cobalt programmers???
Training Training an outbound sales team is like herding cats Here are your reports… now what are you going to do with them?
Culture Shift from qualitative management processes to quantitative management processes Long term employees don’t like change “We should be selling”
Lesson
s Le
arned
Then
• Excel spreadsheet goaling process at summary level
• Disparate systems creating confusion. No access to low level data
• After the fact reporting done manually in Word/Excel
• No management system to speak of re: sales performance
• No visibility into commission process – payout, calc, etc
• Data needs not being met
But doing this has paid off, with additional benefits to come…
Now
• Web based goaling at the account level with version control
• One data warehouse driving all decision making
• Real time robust reporting, metrics and analytics
• Incorporated into our quarterly business reviews
• Complete visibility before the check goes out to the sales executives
• More data than we can handle
Future
• Cross media and business unit level goaling
• Link to new SAP ERP system across all of NYTCo
• Continued improvement in reporting and analysis across divisions
• Company-wide visibility into sales commissions, revenue and performance
• Centralized commission administration across NEMG/NYT
• Insight and visibility to changing business model
Lesson
s Le
arned
Continue to focus on process improvement Order entry process
Advertising billing process
Sales commission payout process
Data cleansing
Expand opportunities to leverage the tool Across the remaining NEMG properties
Into the NY Times sales organization
As a driver of sales performance metrics & measurement throughout the organization Rate
Rankings/performance management
Leverage Finance and Advertising Partnership Create additional training around the application
Continue to improve performance management process between managers and SEs
A quick look at our next steps
Org structure Goaling
Lesson
s Le
arned
Key takeaways
Involve the business in each step of the process
Get the right people on the team
Sell the project
Ensure that you have strong sponsors AND regular checkpoints
This is not an IT or Finance initiative but a team effort
Plan for the future
Can’t afford not to invest in performance management and analytics
Fin
al C
om
me
nts
