Qeep

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Cases Perfomance Management

SEAS

 

 Unrealistic Goals: Land 40,000 new customers, win back 95% of co-operative owners, and generate energy savings of 39 Gwh – all in 2013 

Outcome: 100% achievement of the goals 

Solution: Performance Culture Program 


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Personally, the process has given me much greater insight into our intermediate targets and goals. It has been very informative to learn which tasks my colleagues are responsible for, and this has made it much easier for us to provide help and support across the department. We have a stronger team spirit and are more cohesive
— Employee at SEAS-NVE

 The Challenge

The Danish energy market had been regulated by the state for decades. Customers couldn’t change providers, which meant that the main objective for providers in the market was to service existing customers, who were often co-operative owners. 

In recent years, the market has undergone extreme deregulation. Operating in this reality provides SEAS-NVE Private (SEPR) the opportunity to expand its business beyond its traditional geographic area. 

To seize this opportunity, SEAS needed to transform a service culture steeped in tradition into a committed and progressive sales and consulting culture. In 2012, the company set the goals of growth in customers, customer satisfaction and energy savings through consulting and partnerships. 

The Process

We brought all SEPR employees together and involved them in the process of setting extremely ambitious goals for 2013. Each employee also determined what they personally needed to focus on to achieve these goals. 

Everyone agreed that these results could only be achieved with new thinking and by freeing themselves from the old “SEAS paradigms”. The department’s established leadership style was examined and challenged, while the ability to cooperate across the organisation and within the individual teams became the primary focus. 

The new, unifying agenda was defined as: personal responsibility, prioritisation and focus on results. Weekly follow-up on results-yielding activities became routine on the path to success. 

Old Habits

In the old department structure, the management and employees worked in a reactive culture, where nobody took responsibility and maintenance was prioritised above results. Employees didn’t know what management expected of them. They didn’t know which goals had been set, which tasks were critical for achieving results and which activities were required. 

In other words, the employees saw no correlation between their daily lives and the message conveyed by management. 

New Behaviour

The goals set by the employees and management in SEPR seemed unrealistic and out of reach. And yet, from the outset, both management and employees approached the project with great enthusiasm and willingness to change. As a result, the project progressed steadily and the goals became more and more realistic. 

Throughout the entire process, the employees have been involved in the formulation of their department’s ambitions through workshops and quarterly meetings. And to ensure progress, everyone keeps tabs on the results at weekly results meetings, where responsibility for target achievement rests solely with each individual employee. 

The new department is now characterised by consistency and the ability to change. Employees demonstrate a strong sense of personal responsibility for their own results, as well as for the department’s and SEAS-NVE’s overall results. With their coaching-oriented and inclusive approach to leadership, SEPR’s management has achieved record-high employee satisfaction ratings. 

The Results

SEPR achieved every goal the company set for itself. 

The Hero

Carsten Fischer, Market Manager, has brought an unrelenting attitude to his operations, providing a breath of fresh air to the entire SEAS-NVE organisation. And he has done so without losing control of his operations. 

Carsten always knew what needed to be done, but now he employs his leadership style to ensure that managers and employees assume responsibility for goals and development. Carsten has given his management team a sense that anything is possible, and SEPR continuously incorporates the changing market conditions into the department’s operations. 

Throughout the entire process, Carsten has delegated but never abdicated. 

The Unrealistic Goal

Why were the goals of 40,000 new customers and 4,000 returning co-operative owners (95%) so unrealistic? Across the industry, 220,000 customers change providers each year. SEAS-NVE is responsible for more than 20% of that activity. 

The results appear even more impressive within the context of the numbers from past years. In 2011, SEAS-NVE moved 6,000 customers, in 2012 this total was 40,000, and this year the company will move 45,000 customers. 

The Organisation

SEAS-NVE provides energy and communications services to 400,000 customers and co-operative owners. SEAS-NVE merges its roots in the co-operative movement with modern corporate management. 

SEPR comprises two teams – Sales and Post Sales (win-back and churn) – with a total staff of ten, including two managers. 

Categories
Cases Commercial Excellence Perfomance Management

Sterling

Unrealistic Goal: To turn a loss of DKK 800 million into profit

Outcome: Operations became profitable

Solution: Executable Strategy and Performance Management Program


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We went from thinking in terms of traditional service and coffee breaks to thinking in terms of commercial efficiency and execution speed. Our employees went from the slowest and least willing to change, to the fastest and most productive in the sector – in 15 months. We went from Team Maersk Air vs. Team Sterling to a unified low-price airline that profitably outperformed all the others in innovation and efficiency
— Stefan Vilner, CCO, Sterling Airlines A/S

The Challenge

In 2005, Sterling Airlines and Maersk Air merged via a new Icelandic owner, while posting a loss of DKK 800 million (€ 105 million)The newly consolidated airline had a total of 1,600 employees – 70% of whom came from Maersk Air. In contrast, nine out of ten members of the management were from Sterling and sought to spread Sterling’s low-price business model to the entire company and make it profitable within 12 months.   

The Process

At a Breakthrough Workshop, the management pledged to make Sterling profitable via the goals they set, which they called 7-9-13 (operating cost per aircraft seat of max. DKK 700 (€ 94) – operating revenue per aircraft seat of min. DKK 900 (€ 120) – min. 13,000 aircraft seats sold per day).

Then, together with Qeep, they developed a design process that involved the company’s middle management. More than 200 middle managers and other staff members identified the critical factors for achieving 7-9-13 and devised solutions to address them.

The middle management received coaching to foster their support for the solutions and to enhance their ability to communicate these solutions to staff. The coaching also included an intensive focus on results leadership to help them achieve the goal.

Old Habits

A variety of old habits had kept them from achieving their goals. Management normally developed plans and was responsible for ensuring implementation. As a result, only about 50% of the plans were actually implemented. Follow-ups took place only once a month, after the financial reports were completed – the logic being that the finance department could not get the numbers ready in time for more frequent follow-ups. The pilots took the stance that “I won’t fly with a Team Maersk/Team Sterling colleague in the seat to my left” (the captain’s seat). Finally, most of the staff believed that success was simply a matter of following the rules and procedures for their positions. Achieving results was the management’s responsibility.

New Behaviour

The pilots overcame their resistance and began to work efficiently in the cockpit with a combination of staff from both companies. And everyone began to focus on results, with “on time performance” and “fuel saving” providing a new sense of solidarity.

The supervising flight attendants assumed responsibility for in-flight sales results. The realization that each extra sandwich sold per departure could contribute an additional DKK 2 million to the bottom line inspired in-flight sales drives, resulting in significant growth in sales. Meanwhile, the extra focus on in-flight sales was perceived by passengers as an improvement in customer service because they felt much better informed about their choices.

Flight attendants, pilots, maintenance, ground staff, management, finance and customer service followed up on all their results on an hourly basis – as well as daily and weekly. They also communicated their results directly to management and to their colleagues. Middle management – instead of the finance department – became the go-to source for “business intelligence” on the status of the company.

The Results

  • Sales increased by 500% in one year
  • Operations became profitable
  • The consolidated company went from an EBIT of DKK -800 million (€ 107 mill). to an EBIT of DKK –(€ 10.7 million) – in 12 months
  • 30% reduction in cost per km flown
  • Sales per passenger increased by +1000%

The Hero

Online Marketing Manager Morten Vilsen came to Sterling from a small travel agency. Morten set out to make Sterling Denmark’s first online airline. By the end of 2006, 86% of all Sterling bookings came from online customers and Sterling had Scandinavia’s largest commercial customer CRM database.   

The Unrealistic Goal

Sterling achieved all three goals; however, the DKK 700 goal for production cost per aircraft seat was reached so late in the year that the company ended the year with a loss of DKK 80 million (€ 10.7 million) on the bottom line.   

The Organisation

The company was founded in 1962 by Ejlif Krogager as a provider of airline services to the package tour operator Tjæreborg. Reestablished in 1993 following bankruptcy, the company was then acquired by the Norwegian shipping company Fred Olsen, which had previously supplied air transport. This incarnation of Sterling was then sold in 2005 to a group of Icelandic investors headed by Palmi Harraldsson via his investment firm Fons Eignahaldsverlag. 

At that time, the Sterling Airways limited partnership company had a fleet of ten Boeing 737-800 aircraft and 600 employees. The company entered into negotiations with A.P. Moller-Maersk on the acquisition of the loss-making Maersk Air. After the takeover of Maersk Air, the company now known as Sterling Airlines A/S had 29 aircraft and 1,600 employees.

In the period 2005-2007, Sterling Airlines A/S underwent a dramatic turnaround.

Categories
Cases Commercial Excellence Perfomance Management

SAS Cargo

Unrealistic Goal: To gain market share

Outcome: 3.8%: increase in market share

Solution: Sales Breakthrough Program – Gain Market Share


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We now have a finely tuned organization that is much more results oriented. We are much more ambitious about achieving the goals we set for ourselves!
— Rasmus Enderslev, Director of Sales, SAS Cargo

The Challenge

In 2007, SAS Cargo lost market share despite strong growth in the airfreight market.

The Process

At the end of 2007, Qeep and the SAS Cargo management held a series of possibility meetings where they set very ambitious goals for 2008.

Qeep then coached and trained the managers, helping to change the mindset at SAS Cargo in the course of the 52-week process.

Old Habits

At SAS Cargo, staff generally thought their job was to take incoming orders: “The customers call when they have freight that needs transporting.”  Bringing in new customers and meeting demand was considered “someone else’s” job.

New Behaviour

Customer service representatives took responsibility for proactively maintaining contact with their customers. They began to contact customers to ascertain future demands and in the process were able to determine whether competitors were in play. The new activities included keeping tabs on customers, following up on employee performance and taking action on any initiatives necessary to achieve their goals.

The Results

SAS Cargo exceeded its goals for 2008:

  • After one year, sales exceeded budget by 21%
  • Individual sales increased by 58%
  • 3.8% increase in market share

The Hero

Susse – a customer service representative – increased her sales by 234% in three months. Susse became proactive and chose not to give up on customers who used alternative freight solutions. She aimed for 100% share of wallet when it came to her customer’s airfreight. And she succeeded!

The Unrealistic Goal

To turn declining market share into positive growth.

The Organisation

SAS Cargo is an independent company within the SAS Group. Every day, 165 employees provide airfreight services on 1,000 flights throughout Europe and weekly flights to North America and Asia. 

Categories
Cases Commercial Excellence Perfomance Management

Rambøll

Unrealistic Goal: To supply local governments in the Zealand region

Outcome: Sales to all “White Spots”

Solution: Sales Breakthrough


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The effect of setting goals, assessing and launching initiatives, and addressing critical factors improves our results. Cultivating relations at a high level and involvement across the Ramboll organization became a natural part of the process for achieving success. The cross-organisational collaboration was particularly vital for developing the market. We owe a great thanks to our area managers, to our customers and to Qeep!
— Michael Schad, Director of Marketing, Ramboll

Challenge

The local government sector is an attractive and highly competitive market. Despite targeted efforts, Rambøll had not had much success landing jobs for local governments in the Zealand region, where the Danish capital, Copenhagen, is also located.

The Process

Qeep and Rambøll worked together for nine months to set and achieve a series of goals, which would ultimately lead to increased sales to the local governments in the Zealand region.

The first step was to define the goal. For the sake of visualisation, the attractive local governments were marked in white on a map of Zealand – giving rise to the name of the project “White Spot Warriors”. The team of warriors initially comprised Rambøll’s Director of Marketing, Michael Schad, and seven area managers. They worked to identify a number of critical factors, drew up personal results plans and met once a week at results meetings, where they shared their successes, followed up on execution and evaluated what worked and what didn’t.

Throughout the process, Qeep’s consultants coached the warriors and ensured the project was firmly rooted in the organisation. They also provided training for area managers in areas where their competencies could be given a boost. This process ensured that the area managers worked in a serious and targeted manner to achieve their goals – without losing touch with Ramboll’s original values and corporate culture.

Old Habits

Ramboll had attempted to increase sales to local governments in the Zealand region without much success.

Area managers were highly focused on sales of their own particular product. When in contact with potential customers, they failed to consider the need for Ramboll’s many other services.

New Behaviour

As a result of the process:

The area managers began to understand that they could involve other departments in their sales efforts – and benefit from this. They started out by selling each other – not just themselves. Then, they stepped out of their comfort zones and began to visit the local authorities more often, discovering a definite interest – not only in their own services, but in many of Ramboll’s other services as well. The success snowballed. One successful call leading to a positive and fruitful conversation made the next call that much easier. And so on.

The Results

The outreach activities and cross-organizational collaboration resulted in a successful breakthrough:

  • Ramboll now conducts business with 12 out of 15 local authorities – all new customers
  • More than 10% of company revenue stems from these new customers
  • Most of the area managers increased sales by 40%
  • Three out of seven area managers doubled their revenue

The organisational outcome: Ramboll’s employees are now better at execution and achieving their goals – even after completion of the process with Qeep.

The Hero

Area Manager Michael Vedel experienced fantastic growth during the process!

Prior to the process, he had neither the time nor the resources to approach new customers in the local government sector.

The role of area manager with greater cross-organisational responsibility for accounts and sales was new at Ramboll. Michael took on the task – in addition to his usual operational duties – and performed with flying colours. He generated new business and landed three new local governments in his own area (100% success) via renewed focus, the use of targeted sales activities, increased meeting activity, and interdisciplinary involvement of competencies across the Ramboll organisation.

Michael is an excellent example of the benefits of questioning paradigms and of dropping an “it can’t be done” attitude in favour of an “it works if you focus your efforts” attitude.

The Unrealistic Goal

Qeep challenged the seven area managers to set unrealistic goals. They set the goals of landing new customers in selected local governments and boosting sales across the region by 40%.

The Organisation

Ramboll Denmark is a leading engineer, design and consulting firm, supplying knowledge-based turnkey solutions in construction and design, traffic and infrastructure, environment and water, energy and climate, and industry. The Ramboll Group employs around 10,000 people and operates globally, with 200 offices in 23 countries.

Categories
Cases Perfomance Management

MTH Construction

From project focus to customer focus – sales growth of DKK 700 million

Unrealistic Goal: To establish a commercial organisation and boost revenue significantly

Outcome: Growth in revenue from DKK 2.9 billion to DKK 3.5 billion – in 12 months 

Solution: Executionable Strategy


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We set out to design a new strategy for profitable growth. Qeep challenged us directly at the very first meeting by asking what we wanted to achieve. They weren’t interested in just writing a strategy report for us, they wanted to ensure execution and help us achieve the agreed result. That was something new! They pushed us hard – but respectfully – and established a relationship that I don’t normally experience with consultants
— Jens Nyhus, COO, MTH Construction

The Challenge

MTH Construction had made several attempts to get their engineers and building contractors to adopt commercial and customer-oriented thinking – and had given up time and again. With the cooling of the construction sector caused by the financial crisis, MTH Construction managed to achieve results by tightening its belt.

Now management wanted to change tactics and give the sales and tender function a boost to achieve a higher hit-rate and profitable revenue growth. The sales function had recently been centralised – in theory. However, in practice, the sales staff were still located in the regional offices and selling locally. National coordination, purchasing criteria segmentation and sales management were insufficient.

The Process

From the outset, Qeep involved both the sales staff and management in the definition of MTH Construction’s commercial breakthrough.

An impartial customer analysis revealed a clear gap between MTH Construction’s view of things and the real life situation. A performance and profile assessment also exposed disparities between the current competency level, the corporate attitude and customer expectations.

The involvement and analysis process identified the need for a new organization that matched the relevant customer segmentation. Meanwhile, a commercial director with experience managing solution sales representatives was appointed.

In phase two, Qeep coached management and new/existing sales staff to help with development and operation of the new function. With the launch of the “win sheet, personal results plan, and weekly results meetings” tools, this process ensured that MTH Construction’s commercial staff executed the planned initiatives, despite in-house resistance encountered by the department. And they achieved their ambitious goal!      

Old Habits

The MTH Construction sales staff believed they were responsible for identifying future projects and ensuring that the company had the opportunity to bid on them. However, responsibility for MTH Construction actually winning the bids rested with the tender function – not the sales department.

The sales staff were also convinced that MTH Construction was well known in the market. According to the sales staff, there was only one reason why the company lost orders – they were too expensive.

Sales to national customers were managed centrally. Thus, when necessary, MTH Construction would bid aggressively on national customers, who also had to respect the fact that they might be too busy locally to bid.

New Behaviour

MTH Construction hired a number of market managers. In the centralized commercial function, they began coordinating key customers at national level. Key customers now received regular visits and their wishes could be implemented in all projects – across the country.

Sales staff members were assigned the title of Customer Managers, with responsibility for project win rates. They were tasked with identifying, prioritizing and coordinating customer contact from the initial meeting to the landing of the order. The customer managers now coordinated all the resources and the next step was to make it easier for customers to choose different strategies. For example, customers could now negotiate directly with MTH Construction – instead of always having to put a project out to tender in order to obtain a good price.

The Results

  • 25% hit-rate – up from 13% the previous year

  • Growth in order intake from 2.9 billion to DKK 3.6 billion in a declining market

The Hero

Sales Manager John Sommer is the type of person who devotes all his energy to achieving what he sets out to do. As a consequence, people around him sometimes had trouble keeping up. When John was appointed head of the customer managers, he took on a huge management task that would take more than just energy to fulfill. John proved that he could get everyone to work as a team without losing sight of the goal. John has learned to pace his energy in order to ensure a high degree of execution among his customer managers. 

The Unrealistic Goal

Growth in profitable sales of DKK 700 million in a declining market

The Organisation

MT Højgaard is one of the leading building and construction companies in the Nordic region. The company collaborates with customers all over Denmark and abroad on projects of all sizes, from small construction projects to large-scale and complex works, infrastructure projects and the installation of foundations for offshore wind turbines.

Categories
Cases Perfomance Management

Daimler Automobiles

Unrealistic goal: Turn loss of DKK 47 million into profit in one year

Outcome: Profit

Solution: Performance Management Program – 10/10/85


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If I had chosen a traditional consulting firm, I would have been given a nice report telling me to reduce my stock and to do this and that to achieve results. But we would have never achieved results that way because at the time we needed something completely different!
— Per V. Rasmussen, CEO

The Challenge

Daimler Automobiles was a top-down organisation where the employees did not take responsibility for common goals. This resulted in a loss of DKK 47 million. To turn the situation around, new CEO Per V. Rasmussen sought in 2003 to change attitudes among management and middle management, inspiring them to embrace greater responsibility.

The Process

Qeep initially helped Daimler Automobiles set a number of breakthrough goals, which they dubbed “10/10/85”. The sales department was to earn DKK 10 million, administration was to cut costs by 10% and the service & repair centers were to increase invoiceable hours by 85%.

Qeep coached management and middle management to help them execute their personal action plans while tracking the goal and results.

Old Habits

Daimler Automobiles was a top-down organisation. When something went wrong, it was more important to explain why than to look at what it would take to achieve targets. Management and middle management did not assume responsibility and work towards the common goal.

New Behaviour

Management and middle management began focusing on what they could change to reach their ambitious goal instead of on how they could avoid making mistakes. They assumed responsibility!

Numerous concrete changes culminated in the realization of 10/10/85. The parking facilities were modified to save time when a car was in for service. The spare parts assistants were transferred from the warehouse to the service & repair centers so they could fetch parts for the mechanics, who used to have to wait in line. The supervisors signed an agreement with key accounts to call cars in to service on short notice when an opening appeared in their schedules.

The new attitude among the managers also resulted in major organisational changes. Communication improved and they began to work in a more results-oriented manner based on new procedures.

The Results

  • The annual results improved by DKK 52.5 million before tax
  • The sales department gave a profit
  • The gross profit per car sold increased by several hundred percent
  • The efficiency of the service & repair centers increased from 57% to 82%
  • The invoicing time for all service & repair centers increased significantly
  • Shorter waiting time for spare parts
  • Faster decision-making

The Hero

Supervisor Erik Bo Pedersen is the hero of this story! He successfully boosted efficiency, while maintaining a high utilization ratio at the Hillerød Service & Repair Center.

The Unrealistic Goal

Daimler Automobiles set the unrealistic goal of transforming a significant loss into a huge profit – and achieved it!

The Organisation

Daimler Automobiles, now known as Mercedes Benz CPH, is one of Denmark’s largest car dealerships, employing more than 100 people at showrooms and service & repair centers located throughout Greater Copenhagen.

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Cases Uncategorized

Welltec

Unrealistic Goal: To reach a billion dollars in revenue by 2015

Outcome: 41% growth in sales in one year

Solution: Sales Breakthrough Program – Tour de Billion


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Our sales reps and sales managers wanted to shoot for a billion in revenue, which I thought was impossible
— Jørgen Hallundbæk, CEO, Welltec

The Challenge

After 15 years of strong growth, sales at Welltec stagnated because the sales organisation did not share the senior management’s ambitions. They needed a cultural revolution in sales and a common vision for the company. Welltec was to be a billion-dollar business – hence the project name: Tour de Billion.

The Process

For the first time in the company’s history, Qeep brought together every sales manager and sales representative from seven regions for a three-day Possibility Workshop. Qeep challenged them all to set individual, ambitious breakthrough goals and to think outside the box in order to achieve them.

Despite the fact that the sales representatives had not achieved their sales targets for several years running, the groups set new goals that seemed unrealistically high. The sales representatives and management also identified a number of areas that were critical for achieving results.

Subsequently, Qeep provided the managers with training in results management and coaching methods using on-the-job training, making it easy for each manager to provide sales management that was effective, inspired involvement and encouraged everyone to take responsibility.

Old Habits

The Qeep process revealed several challenges, which everyone agreed needed to change. A key challenge was that the sales representatives at Welltec lacked ambition. They didn’t share the senior management’s vision and consequently didn’t take their sales targets seriously. In the minds of the senior management, Welltec was a supplier of complete solutions to oil companies, but the sales reps sold the company as a single-service provider.

Meanwhile, execution in the sales organization wasn’t up to par. Newly developed products weren’t selling, experiences with global customers weren’t being shared among the regions, and the CRM system wasn’t being used as an active management tool. All in all, there was a lack of leadership and insufficient follow-up on sales efforts.

New Behaviour

The breakthrough for Welltec came in several areas.

First and foremost, the entire sales organisation came together around one common billion-dollar ambition and a vision to create a united company.

This inspired enthusiasm and targeted efforts within the organisation to follow through on the increased activity needed to achieve the goals set by the sales representatives and management. Their sales approach evolved from reactive to proactive.

On the whole, the management and sales representatives began to follow up more consistently on their efforts and goals and to share information across the organization.

The Results

  • Sales increased by 41% in one year
  • Sales trends improved in four regions
  • The CRM system was used more consistently
  • Strong growth in the number of jobs for both new and existing customers

Furthermore, the process – especially the Possibility Workshop and the continuous use of result meetings– quickly brought about a culture change within the company, resulting in a sales organization that is much better equipped to follow through on its goals.

The Hero

Jeremy Ray was sales manager at Welltec in Canada. The sales team in Canada had not previously defined specific goals and most certainly never challenged themselves to achieve breakthroughs. They simply grew with the market! However, Jeremy set out to change that. He wanted his team to achieve growth of +50%. The team doubted whether it was possible, but Jeremy was adamant. In 2011, he was named “Results Hero of the Year” by Qeep AS. 

The Unrealistic Goal

“One Billion Dollars in revenue by 2015.”

The Organisation

Welltec develops and supplies solutions for the oil and gas industry. Since its founding in 1989, the company has seen remarkable growth and now employs around 800 people in 24 countries. The global sales organisation is divided into seven regions.