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1 © 2007 Avaya Inc. All rights reserved. Avaya – Proprietary & Confidential. Under NDA May 5, 2008 Building a Professional Services Sales Organization to Accelerate Revenue Growth Bob Vissat Sales Director Avaya Consulting & Systems Integration
2 © 2007 Avaya Inc. All rights reserved. Avaya – Proprietary & Confidential. Under NDA Todays Agenda Opening Comments Business Problem Addressed Proposed Solution Key Positions and Staffing Cross-functional linkages Performance Metrics Senior Management Endorsement Key Success Ingredients Benefits Realized Q&A
3 © 2007 Avaya Inc. All rights reserved. Avaya – Proprietary & Confidential. Under NDA Business Problem Addressed What Drove the Need for a New Avaya Professional Services Sales Organization? Inadequate Focus On Professional Services Business Process To Complex For sales to access various resources in Professional Services No Emphasis on New Offerings Need to be successful to gain market traction Unsatisfactory Revenue Growth And Attach Rates Lack of Product Sales Mindshare Lack of Sales Management Attention and commitment to Professional Services
4 © 2007 Avaya Inc. All rights reserved. Avaya – Proprietary & Confidential. Under NDA Proposed Solution New Dedicated Professional Services Sales Organization NA SVP Funded New Professional Services Sales Team –Support a portion of sales organization –2 key positions Business Development Manager (Sales Rep) Engagement Manager (Technical Sales Engineer) –Variable compensated positions –Organizational success tied to revenue Based on Success/Traction of New Team –Organization expanded the next fiscal year –Support all sales sectors
5 © 2007 Avaya Inc. All rights reserved. Avaya – Proprietary & Confidential. Under NDA Professional Services Sales Organization Structure Vice President Sales & Business Development Professional Services Vice President Professional Services Vice President North American Sales Director Sales & Business Development Professional Services Director Engagement Management Global Accounts Professional Services Director New Business Development Professional Services Director Offer Management Professional Services Engagement Manager Territory 1 Professional Services Engagement Manager Territory 2 Professional Services Engagement Manager Territory 3 Professional Services Engagement Manager Territory 1 Professional Services Engagement Manager Territory 2 Professional Services Engagement Manager Territory 3 Professional Services BD Manager Territory 1 Professional Services Offer Manager Territory 1 Professional Services BD Manager Territory 2 Professional Services BD Manager Territory 2 Professional Services Offer Manager Territory 2 Professional Services Offer Manager Territory 2 Professional Services
6 © 2007 Avaya Inc. All rights reserved. Avaya – Proprietary & Confidential. Under NDA Professional Services Sales Team Named, Territory & Federal West BDM: Mike Smith, West - ROWWest - Cali Sales Mgrs: Arellano, Harrison, Kruesel Sales Mgrs: Kraus, Spurlock, Crespin (SLE), Hart PSEM: Steven HughesPSEM: John Nobis Central BDM: Susan Powell Central - SouthCentral - North Sales Mgrs: Matson, Bailey, Ferrell Sales Mgrs: DeSantis, Blair, Tatum (SLE) PSEM: Bill BlattmanPSEM: Sheila Adair Northeast BDM: Glenn Bloom NE - UpperNE - Lower SM: Smith, Kiel, Jacob (SLE)Sales Mgrs: Riehl, Franks, May PSEM: George JanartPSEM: Susan Sheehan South Central BDM: Chris Hunady South Central – WSouth Central – E Sales Mgrs: Courtright, Sullivan, Jacomino Sales Mgrs: Hagan, Wallace, Crane, Wharton (SLE) PSEM: Todd DoanePSEM: Charles Moon Canada BDM: Susan Borenstein, PSEM: Sylvie Saint-Onge Federal BDM: Eric Younkin PSEM: Maricia Coleman Vertical/CEBP/GSS VEC BDM: Pat Carey CEBP BDM: Shawn Jean
7 © 2007 Avaya Inc. All rights reserved. Avaya – Proprietary & Confidential. Under NDA PSEM Bill Ladas Org Alignment Arnold Hinshaw, Hilda Kwa PSEM William Fong: Org Alignment Jeff Boyce PSEM Doug Lindroos: Org Alignment Mike Gargiulo BDM Terry Healy PSEM Bruce Gelert Org Alignment Cathy Lippard Global Industries PSEM Arsalan Elley, Org Alignment Mike Allison PSEM Joel Lechter Org Alignment Chris Hand PSEM Mike Shindler Org Alignment Matt Burger BDM Bob Vaughn PSEM Kent West Org Alignment Dan Van Dixhorn Global Financials PSEM Anthony Luciani Org Alignment John Fiorendio PSEM Masheed Morrison Org Alignment David Stearns PSEM Robert Suhre Org Alignment Keenan, Kapralos BDM Fred Ricles PSEM Ted Zwiebel Org Alignment Egan, Gowl, Lynch SISP Professional Services Sales Team Global Accounts
8 © 2007 Avaya Inc. All rights reserved. Avaya – Proprietary & Confidential. Under NDA Works with Sales on New Deals –Position appropriate professional services Develops and Closes New Services Deals –In strategic/emerging services areas Promotes Professional Services –Internally/externally with Marketing Acts as Single Point of Contact for Sales Escalation Point for CSI operations Issues Provides Feedback To –Offer Management –Marketing –For new offer and promotion creation Responsible for Attainment of Revenue Plan Professional Services Sales Key Positions – Business Development Manager
9 © 2007 Avaya Inc. All rights reserved. Avaya – Proprietary & Confidential. Under NDA On Qualified and Designated Opportunities –Acts a single point of contact –To prepare technical services solution, statement of work, pricing and contract Prepares Proposal –Based on direct technical knowledge –Through interaction with CSI practices Directly Interfaces to Client –Gain knowledge and build credibility Possess Expert Knowledge –Avaya CSI solutions Provides Feedback to BDM –Issues regarding revenue recognition Uses Their Knowledge –Be a key stakeholder –In overall professional services work quality delivered to client Professional Services Sales Key Positions – The Engagement Manager
10 © 2007 Avaya Inc. All rights reserved. Avaya – Proprietary & Confidential. Under NDA Staffing Profile New Positions Hired to Back-Fill New Positions –Filled with combination of internal and external people Strong Sales Backgrounds –Successful track records for business development roles –Looked for consultative/solutions selling experience Strong Technical Background –Telecommunication products/services –Deal crafting experience for Engagement Manager positions Hiring More Senior Level Individuals –Strong communications skills –Influence management abilities
11 © 2007 Avaya Inc. All rights reserved. Avaya – Proprietary & Confidential. Under NDA Important Cross Functional Linkages BALANCE DeliverySales Business Development Manager Competitive Pricing/Discounts Fast Response Flexible Delivery Response Availability Pre & Post Sales Investments in Free Service P&L Resource Utilization Quality of Work Customer Satisfaction Requests for Free Work
12 © 2007 Avaya Inc. All rights reserved. Avaya – Proprietary & Confidential. Under NDA Important Cross Functional Linkages Business Development Manager Drive Market Traction with More Solutions Combining Avaya/Partner Content Offer Managers Solution Partners Channel Partners Marketing Support in Driving New Offers Field Input on New Offers Recommendations Deal Support Education Assist on Delivery Issues Customer Reference Program Input on New Marketing Materials, Sales Tools Customer Event / Trade Show Support
13 © 2007 Avaya Inc. All rights reserved. Avaya – Proprietary & Confidential. Under NDA Key Performance Metrics Attainment of Revenue Plan –Strategic/Emerging Services Support to Sales –Set feedback processes # of Business Development Activities Quality of Sales Funnel Revenue Forecast Accuracy Quality of Technical SOW –Services solutions –Pricing –Proposals
14 © 2007 Avaya Inc. All rights reserved. Avaya – Proprietary & Confidential. Under NDA Senior Management Endorsement ENDORSEMENT UNDERSTANDING SUPPORT & LINKAGES Professional Services Senior Management –Buy-In and Endorsement is Critical Sales Management –Clearly understand roles –Of new professional services sales team Professional Services Delivery Management –Support new organization –Understand roles and linkages
15 © 2007 Avaya Inc. All rights reserved. Avaya – Proprietary & Confidential. Under NDA Benefits Realized Professional Services Year-Over-Year Revenue Growth –2006 = 40% –2007 = 26% –2008 = 20% 55% Growth in Professional Services Product –Attach rates in last (3) years 16.6% in 2006…now 25.8% Improved Mindshare of Professional Services in Sales Improved Working Relationships with Sales Improved Results –Gaining market traction faster –With new professional services offers
16 © 2007 Avaya Inc. All rights reserved. Avaya – Proprietary & Confidential. Under NDA Recent Changes Increased Focus On –Driving new professional services offerings –Emerging areas Compensation Plan Modified –Incent proper behavior –Centered on key target service areas New Specialist Positions Created –Provide increased focus –Select emerging technology and vertical markets
17 © 2007 Avaya Inc. All rights reserved. Avaya – Proprietary & Confidential. Under NDA Ingredients for Success! Ensure Clarity of Roles –Sales/business development versus technical support Flexible Organization Structure –To meet business needs –changing priorities New Team Members –Must build strong working relationships with sales –At all levels Appropriate Staffing to Support Business Volumes –Alignment with sales org structure is ideal Proper Balance –Between sales and delivery interests Measure and Report on Results Variable Compensation Plan Implemented –Tied with sales thinking New Hires –Properly skilled –Flexible, to drive success
18 © 2007 Avaya Inc. All rights reserved. Avaya – Proprietary & Confidential. Under NDA 18 © 2008 Avaya Inc. All rights reserved. This is Avaya …. How can we help you? Improved Customer Service Customer Contact Worker Productivity Unified Communication Reliable Multi-Modal Communication Converged Communication Business Efficiency Communications Enabled Business Processes
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