CNI人力资源精品之销售市场财务协作LINKING FINANCE FUNCTIONS WITH SALES AND MARKETING TO ACHIEVE IMPROVED PERFORMANCE.ppt

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1、LINKING FINANCE FUNCTIONS WITH SALES AND MARKETING TO ACHIEVE IMPROVED PERFORMANCECase Studies,Concepts and Debatable IdeasKenny OngCNI Holdings Berhad,www.myCNI.com.my,www.OOBEY.com,Intro:CNI,19 years oldCore Business:MLMOthers:Contract Manufacturing,Export/Trading,eCommerce,F&B RetailMalaysia,Sing

2、apore,Brunei,Indonesia,India,China,Hong Kong,Philippines,Italy,TaiwanStaff force:500Distributors:200,000Products:Consumer Goods and Services,www.myCNI.com.my,www.OOBEY.com,How to fail without trying,www.myCNI.com.my,www.OOBEY.com,The Roadmap to Failure Fred Wiersema and Mike Treacy,Performance,Time,

3、www.myCNI.com.my,www.OOBEY.com,Denial and Defense,“Its not really good value our competitor is offering,because it doesnt include a lot of our features.”-ABC vs Air Asia“Its good value but not in our preferred customer market.”-ABC vs Toyota“Sure theyre hurting us,but with their unfair advantage,wha

4、t can we do?”ABC vs MILO“The rules we are playing by have always worked before”AMEX vs VISA,www.myCNI.com.my,www.OOBEY.com,The Roadmap to Failure Fred Wiersema and Mike Treacy,Performance,Time,www.myCNI.com.my,www.OOBEY.com,Ad Hoc Tactics,Selectively hold discounts to hold business that has started

5、to go elsewhereIntroduce new promotions,terms,conditions,and offers to confuse and cloud the marketBeef up customer service by adding people to fix mess-ups and quicken delayed shipmentsDelay capital investments and adjust accounting methods to portray quarterly financial results more favorablyIntro

6、duce“new and improved”products that are new in form,but not in substantive ways that are of consequence to purchasersIntroduce Balanced Scorecards and Performance Management Systems,www.myCNI.com.my,www.OOBEY.com,The Roadmap to Failure Fred Wiersema and Mike Treacy,Performance,Time,www.myCNI.com.my,

7、www.OOBEY.com,“What is the moral of the story?”,www.myCNI.com.my,www.OOBEY.com,Understanding the perspectives of Sales&Marketing vs.Finance,www.myCNI.com.my,www.OOBEY.com,Typical Corporate Planning Scenario?,Budget top down no questions askedOnly two budget goals revenue,expensesThe only planning we

8、 needed to do was“do better than last year”Planning was bottom up-compilation of plans within set budgetNo one knew what the other was planningFACs role was only to compile budget for approvalKPIs were not usedSales was resource priority,everything else not importantAssumed no major changes in marke

9、tR&D was bottom up,www.myCNI.com.my,www.OOBEY.com,Problems from the start(1/2),No moneySplit Objectives:Sales?Share Price?Image?Independent entitiesFAC controlling scheduleS&M always running over budgetCompounding activities BOD expectations too high without proper explanation nor justificationLack

10、of Market researchExpenses not spent gets punished,www.myCNI.com.my,www.OOBEY.com,Problems from the start(2/2),Budgeting for known,consistent,and predictable business conditionsNever learn from past mistakes,usually in under-budgeting(e.g.staff and PCs)Wrong Business Model blame Budgeting&Planning.H

11、aving a good planning process cannot correct a bad business modelFocusing on the Process(KPIs),instead of“Business”Planning&budgeting treated as separate processes by businesses/functions,www.myCNI.com.my,www.OOBEY.com,At the Table,Sales and Marketing,Finance and Accounts,Field IntelligenceCRMGrowth

12、(organic)Lagging KPIsAdaptability,Channels1st Level BrandingStakeholder Interest:CustomersGut Feel/Instincts,External IntelligenceRatiosLeading KPIsControl/ConstraintsResource Mgmt,Stability&SystemsPyramid rolesContainmentShareholder Interest:Shareholder,www.myCNI.com.my,www.OOBEY.com,Linking the Ro

13、les,Sales and Marketing,Finance and Accounts,Five Links:PhilosophyBusiness ModelKPIsResource AllocationPerformance Management System,www.myCNI.com.my,www.OOBEY.com,Link#1:Philosophy,The anchor for all decisions,www.myCNI.com.my,www.OOBEY.com,Philosophy:,Goods Return Policy“I dont care if they return

14、 a Goodyear tire.If they said they paid$200,pay them$200.”,Nordstrom does not sell tires,www.myCNI.com.my,www.OOBEY.com,Philosophy,“In business after business,60%to 80%of lost customers reported on a survey just prior to defecting that they were satisfied or very satisfied.”,HBR March/April 1996,www

15、.myCNI.com.my,www.OOBEY.com,Philosophy,“CNI is more than business.We strongly believe that every individual has the opportunity to attain a better living through CNI.”,www.myCNI.com.my,www.OOBEY.com,Philosophy,Ultimate Objective of Marketing:“Get more people,to buy more things,more frequently,at hig

16、her prices.”,Sergio Zyman,“Retention and Loyalty useless if No Conversion is happening.”,www.myCNI.com.my,www.OOBEY.com,Philosophy,Loyalty is UselessVirtual Consumption vs.Real Consumption,www.myCNI.com.my,www.OOBEY.com,Philosophy,Loyalty is misleadingHeavy Consumption LoyaltyLoyalty Heavy Consumpti

17、on,www.myCNI.com.my,www.OOBEY.com,Philosophy,Loyalty=Relationship(something like Dating)Loyalty PointsLoyalty RedemptionLoyalty=Get more people,to buy more,more frequently,at higher prices,www.myCNI.com.my,www.OOBEY.com,Link#2:Business Model,www.myCNI.com.my,www.OOBEY.com,What is the Business Model?

18、,USP,Market Discipline,Profit Model,www.myCNI.com.my,www.OOBEY.com,Intro:Market Discipline,Mamak stall,www.myCNI.com.my,www.OOBEY.com,Intro:Market Discipline,They are the most innovativeConstantly renewing and creativeAlways on the leading edge,A great deal!Excellent/attractive priceMinimal acquisit

19、ion cost and hassleLowest overall cost of ownershipA no-hassles firmConvenience and speedReliable product and service,Exactly what I needCustomized productsPersonalized communicationsTheyre very responsivePreferential service and flexibilityRecommends what I needIm very loyal to themHelps us to be a

20、 success,Product Leadership,OperationalExcellence,CustomerIntimacy,www.myCNI.com.my,www.OOBEY.com,Operational Excellence(low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leadership(best product),Customer Intimacy(best total solution),Strategy:Disciplines,www.myCNI.

21、com.my,www.OOBEY.com,Intro:Market Discipline,*Treacy&Wiersema,The Discipline of Market Leaders,1995,Product/Service Attributes,Relationship,Image,www.myCNI.com.my,www.OOBEY.com,Intro:Market Discipline,*Treacy&Wiersema,The Discipline of Market Leaders,1995,Product/Service Attributes,Price,Quality,Tim

22、e,Selection,Smart Shopper,Relationship,Image,Operational Excellence:Quality and selection in key categories with unbeatable prices,www.myCNI.com.my,www.OOBEY.com,Intro:Market Discipline,*Treacy&Wiersema,The Discipline of Market Leaders,1995,Product/Service Attributes,Brand,Time,Function,Best Product

23、,Relationship,Image,Product Leadership:Unique products and services that push the standards,www.myCNI.com.my,www.OOBEY.com,Intro:Market Discipline,*Treacy&Wiersema,The Discipline of Market Leaders,1995,Product/Service Attributes,Service,Trusted Brand,Relationship,Image,Customer Intimacy:Personal ser

24、vice tailored to produce results for customer and build long-term relationships,Relations,www.myCNI.com.my,www.OOBEY.com,Operational Excellence(low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leadership(best product),Customer Intimacy(best total solution),Strategy

25、:Disciplines,www.myCNI.com.my,www.OOBEY.com,The McPlaybook*,Make it easy to eat50%drive-thruMeals held in one hand,Make it easy to prepareHigh TurnoverTasks simple to learn&repeat,Make it quick“Fast Food”Tests new products for Cooking Times,Make what customers wantProwls market for new productsMonit

26、ored field tests,*Adapted from:Businessweek,Februrary 5th 2007,www.myCNI.com.my,www.OOBEY.com,Operational ExcellenceCompetitive priceError free,reliableFast(on demand)SimpleResponsiveConsistent information for allTransactionalOnce and Done,Customer IntimacyManagement by FactEasy to do business withH

27、ave it your way(customization)Market segments of oneProactive,flexibleRelationship and consultative sellingCross selling,Product LeadershipNew,state of the art products or servicesRisk takersMeet volatile customer needsFast concept-to-counterNever satisfied-obsolete own and competitors productsLearn

28、ing organization,Strategy:Disciplines,Priorities,and KPIs,www.myCNI.com.my,www.OOBEY.com,Operational ExcellenceMove know-how from top performing units to othersBenchmark against best in classEnsure operations training for all employeesUse disciplines like TQM for continuous learning to reduce costs

29、and improve quality,Strategy:Value Disciplines,www.myCNI.com.my,www.OOBEY.com,Strategy:Value Disciplines,Customer IntimacyCapture knowledge about customersUnderstand customer needsEmpower front line employeesEnsure that everyone knows the customerMake company knowledge available to customers,www.myC

30、NI.com.my,www.OOBEY.com,Product LeadershipReduce time to marketCommercialize new products fastEnsure that ideas flowReuse what other parts of the company have already learnedEnsure there are multiple sources of funding,Strategy:Value Disciplines,www.myCNI.com.my,www.OOBEY.com,Operational Excellence(

31、low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leadership(best product),Customer Intimacy(best total solution),Strategy:Value Disciplines,www.myCNI.com.my,www.OOBEY.com,Operational Excellence(low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy

32、1995,Product Leadership(best product),Customer Intimacy(best total solution),Strategy:Value Disciplines,www.myCNI.com.my,www.OOBEY.com,Link#3:KPIs,Dangers of BSC,KPIs and other evils sold by Consultants,www.myCNI.com.my,www.OOBEY.com,“in the past 18 months,we have heard that profit is more important

33、 than revenue,quality is more important that profit,people are more important than profit,customers are more important than our people,big customers are more important than small customers,and that growth is the key to our success.No wonder our performance is inconsistent,CEO,Anonymous,www.myCNI.com

34、.my,www.OOBEY.com,Before we start,In the old days of HRAverage training hours per staff%of staff attending training#of training programs%of training programs conductedTraining needs analysis conductedCompetency models developedTraining budget as%of payroll,Whats wrong with this picture?,www.myCNI.co

35、m.my,www.OOBEY.com,Before we start,Moral of the storyInnovation:Business modelsProductsServices Market LeadershipCompetitive differentiation,Get the picture?,www.myCNI.com.my,www.OOBEY.com,“What is the moral of the story?”,www.myCNI.com.my,www.OOBEY.com,What is Strategic Planning?,Strategic Planning

36、,Variables:ResearchGrowthRisksStakeholdersConstraintsSWOTMisc.,Output:PlansPrioritiesKPIs,www.myCNI.com.my,www.OOBEY.com,Before we start,Which comes first?Strategies-KPI?KPI-Strategies?,www.myCNI.com.my,www.OOBEY.com,Financial“To satisfy our stakeholders,what Financial objectives must we accomplish?

37、”,Focus:Corporate Alignment,www.myCNI.com.my,www.OOBEY.com,Revenue Growth,Base Retention,Share Gain,Positioning,Adjacent Market,New Business,Operational Excellence,Product Leadership,Customer Intimacy,Competencies,Information Systems,Motivation,empowerment,alignment,Financial,Learning&Growth,Interna

38、l Process,Customers,Investment Strategy,Productivity,Market Value,Linking BSC to Strategy,www.myCNI.com.my,www.OOBEY.com,Financial,Learning&Growth,Internal Process,Customers/Distributors,Focus:Corporate Alignment,www.myCNI.com.my,www.OOBEY.com,Example:Selection of KPIs for BSC,Customer satisfactionC

39、ustomer loyaltyMarket shareCustomer complaintsComplaints resolved on first contactReturn ratesResponse time per customer requestPrice relative to competitionTotal cost to customerAverage duration of customer relationshipCustomers lostCustomer retentionCustomer acquisition ratesPercentage of revenue

40、form new customersNumber of customersAnnual sales per turnover,Win rate(sales closed/sales contact)Customer visits to the companyHours spent with customersMarketing cost as a percentage of salesNumber of ads placedNumber of proposals madeBrand recognitionResponse rateNumber of trade shows attendedSa

41、les volumeShare of target customer spendingSales per channelAverage customer sizeCustomers per employeeCustomer service expense per customerCustomer profitabilityFrequency(number of sales transactions),www.myCNI.com.my,www.OOBEY.com,Financial,Learning&Growth,Internal Process,Customers/Distributors,E

42、xample:1st Level BSC&KPIs,Profit after Tax.Revenue.Cash-to-cash cycle.Operating cash flow,Customer Complaints.Customer Acquisition Rate.Product Availability.Product Quality&Service.Renewal Annual Subscription.Distributor Rank Achievement.No.of Active Distributor.No.DC/Regional Sales.Distributor with

43、 commission,Customer Database Availability.Accuracy of Forecast Planning.Continuous Improvement.Response Time to Customer Needs.Perfect Order Fulfillment.Inventory Turnover.Number of Effective Sponsoring Program.On Time Delivery.No.of Effective Training.Number of Effective A&P,%of staff evaluated on

44、 Core Competency Framework.%of staff with Career Development Plans.No.of training hours completed per staff.%of staff with access to strategic information.Q12 Index.%staff evaluated on Culture alignment,www.myCNI.com.my,www.OOBEY.com,Sample:Other 1st Level KPIs across industries,www.myCNI.com.my,www

45、.OOBEY.com,Lagging and Leading KPIs,Historical,Outcome,Results,1st Level,Usually Financial or tangible,Quarterly and Annually,Current,Indicators,Drivers,2nd Level onwards,usually non-financial or intangible,Weekly,Monthly and Quarterly,www.myCNI.com.my,www.OOBEY.com,Developing Driver KPIs,www.myCNI.

46、com.my,www.OOBEY.com,What is the Objective?,Do-or-Die KPIs for CNIRevenueARPUSponsoringRetentionCommission Plan(BDP)ProductCorporate Image,www.myCNI.com.my,www.OOBEY.com,Operational Excellence(low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leadership(best product

47、),Customer Intimacy(best total solution),Strategy:Disciplines,Priorities,and KPIs,www.myCNI.com.my,www.OOBEY.com,Sample KPIs for Each Discipline,Operational ExcellencePriceSelectionConvenienceZero DefectsGrowth,Customer IntimacyCustomer KnowledgeSolutions OfferedPenetrationCustomer DataCustomer-succ

48、ess focus,Product LeadershipMarketingFunctionality#of Successes#of FailuresLearn from key usersInterdisciplinary teamsPipeline,www.myCNI.com.my,www.OOBEY.com,MBO Sources of KRAs and KPIs,Targets,Department Scorecard E3,Employees Job Description,Department SOP,Department Quality Objectives,Corrective

49、 Action Requests(CAR),Preventive Action Requests(PAR),or Special Projects relevant to the employee.,www.myCNI.com.my,www.OOBEY.com,Link#4:Resource Allocation,a.k.a.Budgeting and Planning,www.myCNI.com.my,www.OOBEY.com,Summary:Planning&Budgeting,Long-term PlansObjectivesStrategiesEnablersResources,Al

50、so known as L.O.S.E.R.,www.myCNI.com.my,www.OOBEY.com,Budgeting:Some thoughts,Two major roles of Budgeting:Provide real-life CONSTRAINTS to strategic planningProvide RESOURCES to realize strategic plans,www.myCNI.com.my,www.OOBEY.com,Operational Excellence,Customer Intimacy,Product Leadership,Organi