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Re: Sales Driven Organizations

Postby iab » January 12th, 2016, 2:20 pm


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yo wrote:iab, your sales driven organization sounds very different from other sales driven organizations I've worked with/for.


Maybe so. It could be to our compensation structure. The sales force receives a significantly higher commission on new sales over retentions. While our older cash cows may increase 2-5% annually, NPD products under 5-years-old typically have a growth of 20%-30%. Kind of a no-brainer in what they will pull out of their sales bag first.

Not to say our old products languish. But those need 'new" market over "existing" market.

Re: Sales Driven Organizations

Postby skyarrow » January 12th, 2016, 4:01 pm

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iab

How does your company decide which new areas to pursue when it comes to the R&D and "blue sky" stuff? Who steers that ship? How much input does design have when it comes to which avenues to go down and which new product ideas to work on?

When I think of "sales-driven" organizations, my experience has most definitely been in line with what Yo has said: The sales team screams "Fire!" and everybody else scrambles to put it out. All day every day is simply reacting to the latest short-term opportunity for a purchase order (commission for the sale steam).
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Re: Sales Driven Organizations

Postby yo » January 12th, 2016, 4:42 pm

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iab wrote:
yo wrote:iab, your sales driven organization sounds very different from other sales driven organizations I've worked with/for.


Maybe so. It could be to our compensation structure. The sales force receives a significantly higher commission on new sales over retentions. While our older cash cows may increase 2-5% annually, NPD products under 5-years-old typically have a growth of 20%-30%. Kind of a no-brainer in what they will pull out of their sales bag first.

Not to say our old products languish. But those need 'new" market over "existing" market.


That would do it. And I think something similar was done where I worked as well which helped the transition. Instead of new stuff being an "awe man, now I got to learn stuff" it became "new stuff? gimme gimme"

Re: Sales Driven Organizations

Postby iab » January 12th, 2016, 5:51 pm


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skyarrow, the steering of our ship is done by us. We can be completely autonomous, like a consultancy with a single client. We could be in a different state for that matter, but it's nice to have manufacturing and the other departments downstairs, they are a great resource.

For ideas, we follow the 100/5/1 rule. For every 100 ideas, we will sink resources into 5 of them expecting 1 of those to launch. Ideas, or more accurately, problems, come straight from the customer as we have our own marketing group within NPD. They are in the field 80% of the time. Problems come from the clinician, posters at trade shows or scholarly papers. We do have a selection criteria to narrow from 100 to the 5.

Those 5 projects running at any given time are what we call franchise products, new to us and (mostly) new to the world blue-sky kind of stuff. With the 5 projects, we can launch a completely new thing every 1-2 years. I will say our sales department can put a hold on a launch if they choose. While it is rare, the sales force can have too much new stuff in the bag. If one of those items generates significantly more revenue, the others won't get pulled out of the bag.

In addition to launching franchise products, we also fill in product lines. A "bariatric" size, or something. Those make it easier to sell as the customer only needs one stop to buy what they need instead of going to different vendors. We tend to have copycats (that gets around our IP, we are big on that) within 6-12 months of a franchise launch. We typically have 2-3 product line filler launches per year.

As for "design", specifically look and feel, we are in the medical industry, not a necessity. Also, our products command a 70%-90% market share. Upper management did not make look and feel a priority as they didn't need to. Our competitors don't either.

But upper management is also not opposed to it and do see it as a competitive advantage. My hiring and the hiring of some "new" folks have changed the course. When the others on different projects see what we produce, they want to get in on the bandwagon. Slow to turnaround, but we are getting there.

Re: Sales Driven Organizations

Postby Mr-914 » January 13th, 2016, 7:38 am

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iab: Sounds like a great opportunity!
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Re: Sales Driven Organizations

Postby Greenman » August 15th, 2016, 5:08 pm

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KenoLeon wrote: I think designers can more easily understand that you can design your business strategy since they are usually in contact with everyone and know how to come up with novel ideas, the thing is that to this day very few want to assume this job.


Hmmm, I'm not so sure that designers don't want to assume the job so much as it is the "business people" in charge not letting them or empowering them to do it because of designer stereotypes.
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Re: Sales Driven Organizations

Postby Mr-914 » August 24th, 2016, 6:48 am

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Greenman wrote:
KenoLeon wrote: I think designers can more easily understand that you can design your business strategy since they are usually in contact with everyone and know how to come up with novel ideas, the thing is that to this day very few want to assume this job.


Hmmm, I'm not so sure that designers don't want to assume the job so much as it is the "business people" in charge not letting them or empowering them to do it because of designer stereotypes.


I recently read an academic article that was studying the effect of creative personality on the leadership perceptions of others. That particular study suggested that people generally perceive creative types as being poor leaders.
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Re: Sales Driven Organizations

Postby KenoLeon » August 24th, 2016, 12:59 pm

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Mr-914 wrote: people generally perceive creative types as being poor leaders.


I agree with the study : )

I should make the distinction that coming up with new business ideas and models ( something I think designers can do) is not equal or analogous to becoming managers, let alone good managers and even rarer yet,good managers of creative people...
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Re: Sales Driven Organizations

Postby Mr-914 » August 30th, 2016, 10:34 am

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There is also a difference between a leader and a manager. I think finding new opportunities and inspiring people to succeed in them is leadership.
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Re: Sales Driven Organizations

Postby sktthemes » September 2nd, 2016, 2:48 am


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Interesting things you post here!

Re: Sales Driven Organizations

Postby Stephanie_L_Diaz_Llorens » November 9th, 2016, 4:19 pm


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Those terms are the goal part of the organization. There is sales driven organization and market orientated organizations. Sales driven organization is a short term objective view of goals. In cultural aspects there are some places in the world that have a long term strategy and some have a short tem strategy. Since we are talking at short term strategy, if there is going to take loans, it is probable that it will be short loans so the interest variations will be low too. But since those organizations are short term they might not be committed to social long term contributions.

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