Reforming Sales Organization

Executive Summary

Depending on the business life cycle, demanded sales organization structure is different. Most Japanese companies are approaching period of maturity or decline, therefore, in most cases, sales expansion could not be realized by conducting the same sales activity as before. A widescale reform from strategy to sales organization, such as change of “Share expansion sales of high-growth period” to → “Sales to win over share during mature period”, or change of “Sales to win over share” to → “New demand creation sales”, etc. are required.

Diagnosis of the fitness for reform of sales organization

Even for sales organizations in the same company, required sales skills are different depending on the business life cycle of the product. Clarification of issue for each business is done by conducting an assessment to analyze the current demand for each product in comparison to the actual situation, from the perspectives of business environment, sales strategy, sales organization, and human resource skill.

Design of reform strategy for sales organization

The strategy which deals with how sales organization should be reformed are designed for issues in each business. Important issues for reform, such as, new sales target acquisition strategy, execution strategy for new sales method with high-adoption potential, new customer acquisition route expansion strategy, price increase strategy, are clarified and the strategies are designed.

Pilot development

When designed sales organization reform strategy is suddenly applied to the whole company, in most cases, the organization could not escape from the existing sales method, and the attempts fail without any big reform. Therefore, the first step is to create a success example for the new strategy with a small team. Form a pilot team consisting mainly of organization reform promoters, and create the winning pattern along with conducting PDCA.

Standardization of successful examples/Educating in-company trainers

Prepare the system of sales method which should be applied throughout the company based the winning pattern created through applying PDCA during the pilot run. Also, at the same time, educate “in-company trainers”, who will in-turn educate the other members on the new method for company-wide application. Actually, by manualizing the achievement of the pilot team, along with educating in-company trainers who will become evangelists, an organization reform could be achieved in a short time.

Company-wide application of a new system

Apply a newly constructed sales system with the aim of reforming the sales organization of the whole company. For a company-wide application, the understanding and implementation step is important. Therefore, 6-8 months should be taken for the understanding of the new method and it’s implementation on-site. In the last phase, in order to promote independence of each working site, events such as a result presentation meeting to present the best examples from each working site, should be conducted.

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