Restructuring Sales Organizations

Restructuring a sales organization requires not only a review of the structure and processes but also a deep understanding of the human capital within the organization. The effectiveness of the new structure largely depends on how well the sales staff is suited to their new roles within the organization’s strategic direction. This step-by-step plan focuses on evaluating the current sales staff and how they can be aligned with the new commercial strategy.

Step 1: Analysis of the commercial strategy

Objective:

Before evaluating the profiles of sales employees, the new commercial strategy must be clear. After all, the sales organization should support the broader goals of the organization, such as increasing revenue, improving customer relationships, or entering new markets.

Actions:

• Review the strategic direction: Understand what the new structure aims to achieve. This could mean shifting from a product-oriented to a customer-centric approach, or from a regionally decentralized model to a central, integrated sales model.
• Identify necessary sales roles: Determine which types of sales roles and skills are crucial to support the new strategy. This may range from key account management for complex B2B environments to inside sales or telemarketing in a standardized sales model .

Output:

A clear overview of the roles and capabilities required to support the new commercial strategy.

Step 2: Classification of existing sales employees

Objective:

To determine how well the existing sales staff fits into the new structure, a thorough evaluation of the skills, personalities, and motivations of the current sales employees is needed.

Actions:

• Use assessment tools: Utilize scientifically supported tools such as DISC profiles or Myers-Briggs to gain insights into the personality traits and selling styles of sales employees. In addition, specific sales skill tests (e.g., SPIN Selling skills) can help measure their competency levels.
• Examine performance and KPIs: Analyze employees’ historical performance in terms of key performance indicators (KPIs) such as sales figures, customer acquisition, and customer retention.
• Identify strengths and weaknesses: Categorize staff based on their strengths and weaknesses and their affinity for different types of sales activities. For example, determine which employees excel in complex, long-term sales processes versus quick, transaction-focused sales.

Output:

A detailed profile analysis of all sales employees, including their strengths, weaknesses, and a match with different sales roles.

Step 3: Identify the gap between current capabilities and new needs

Objective:

The primary objective of this step is to identify the “fit-gap” between the current sales profiles and the demands of the new commercial strategy. This provides insight into which employees are suitable for new roles and where training or redeployment needs lie.

Actions:

• Match analysis: Compare the output from Step 2 with the necessary roles from Step 1. Identify where employees fit well and where they may fall short.
• Segment by role suitability: Group employees into different categories:
  • Strategic sellers: Employees with strong consultative selling and customer management skills, suitable for complex or B2B environments.
  • Tactical sellers: Employees better suited to transaction-driven, high-volume sales.
  • Digital sellers: Employees skilled in leveraging digital tools and platforms for sales, which can be important for companies shifting to integrated omnichannel strategies.

Output:

An overview of which employees naturally fit into the new structure, who needs reskilling, and who may not be suitable for the new strategy.

Step 4: Plan for reskilling and redeployment

Objective:

Once the sales employees have been classified, a plan must be developed to effectively utilize the talent. This includes both skill development and considering redeployment or even termination if necessary.

Actions:

• Reskilling programs: Develop training programs aimed at improving the skills needed within the new structure. Think of training in consultative selling, customer orientation, or digital sales platforms.
• Redeployment or new roles: Some employees may be better suited for other roles within the company, for example, in customer support or marketing, if their skills are no longer a good fit for direct sales.
• Selective reduction: If certain employees cannot meet the demands of the new commercial strategy and redeployment is not an option, a selection process should be developed for terminating contracts in a respectful and transparent manner.

Output:

A detailed plan for retraining, redeploying, or terminating employees.

Step 5: Implementation and continuous monitoring

Objective:

The final step in this process is to successfully implement the new structure and ensure that the right employees are in the right roles. After implementation, it is essential to continuously monitor the performance of the sales organization and adjust where necessary.

Actions:

• Pilot phase: Run a pilot of the new structure with a limited number of employees to identify any issues.
• Monitoring and feedback: Use data analysis and real-time feedback from customers and employees to measure the effectiveness of the restructuring. KPIs such as customer satisfaction, sales figures, and conversion rates can serve as benchmarks.
• Adjustments: If necessary, further adjustments can be made to the structure or staffing based on the performance and feedback from the pilot.

Output:

A full implementation of the new structure, supported by continuous performance monitoring and adjustment plans.

References:

• Bain & Company. (2022). Sales Force Effectiveness: Maximizing the Productivity of Your Sales Team. geraadpleegd van bain.com
• Boston Consulting Group. (2021). The Digital Future of Sales: Harnessing Technology to Improve Sales Effectiveness. geraadpleegd van bcg.com
• (2020). Sales Force Transformation: Aligning Structure with Business Strategy. geraadpleegd van deloitte.com
• McKinsey & Company. (2021). Sales Force Structure and Alignment: A Practical Guide to Organizing Sales Teams. geraadpleegd van mckinsey.com
• Zoltners, A., Sinha, P., & Lorimer, S. (2004). Sales Force Design for Strategic Advantage. Palgrave Macmillan.
• Rustenburg, G., & Steenbeek, A. (2023). Salesmanagement (7e editie). Noordhoff Uitgevers
• Johnston, M. W., & Marshall, G. W. (2021). Sales force management: Leadership, innovation, technology (13e editie). Routledge.
• Ingram, T. N., LaForge, R. W., Avila, R. A., Schwepker Jr, C. H., & Williams, M. R. (2020). Sales management: Analysis and decision making (11e editie). Routledge.