I.M.A.G.E.

International : Assignment For Sales and Distribution Management IIMK, ePGP-03 Submitted by
Senthil Kumar ePGP-03-080

About I.M.A.G.E International : This case describes nonfinancial incentives of the company IMAGE on their sales operations in United States. It also describes major elements that go into making a high-performance sales force; the practices, policies, and philosophies that are revealed about ways to motivate people in the sales organization. The case also discuss about unexciting but necessary side of managing a sales force with its quotas, contests, and sales standings. Company : Image International Prodcut : Office copiers HQ : Paris, France Export business : Commenced export operations to Unites States in 1991 Month & Year : Sep 2000 About I.M.A.G.E. U.S : Business : Import the office copiers from France and service and distribution in US. Sales & Marketing Employees : Marketing : 20 Sales force : 200 District sales managers : 25 Regional sales managers : 5 Market share : 6 % in 2000 Current situation : Sales Budget reconciliation & HR Policy review meeting venue : New York Office Sales director : Hobart Reynolds Assistant budget director : Marie-Christine Berthelin Current Incentive Structure Absence of quota system Quota system places too much burden on the stronger ones and too little challenge on the weaker one

Potential method Its reverse of quota system. It places too much burden on the weaker people and too little challenge on the stronger ones. Compensation management process is to be defined as below and communicated to all the sales team.

Incentive structure for Sales force analysis Total number of employees : 412 Sales Force uniform = $ 1100 Incentive for sale of service contract to District mangers = $ 425 Non financial incentives :

Palms spring convention Sales contest Newsletter Super Bowl Total Expenditure / employee

= = = =

$ $ $ $

1200000 200000 60000 81000

= $ 1541000 = $ 3740

Recommendations :

To identify high performers and recognise them through rewards and incentives. Reynolds should identify high growth market in US and launch jaguar plan (. To encourage the high level sales team, winner of the year from each region to be awarded as member of Directors Club.

Emphasis on incentives/perks for employee motivation to sustain their core competency and to increase their market share in US Improve communication between Headquarters and the US Business Unit to solve operational issues. An appraisal method is recommended to evaluate the performance based on the core competencies for each role. Sales force are measured their performance based on the consistency demonstration for each competency. Should there be a need for development to achieve the competency that should include in the development need in the individual development plan for the period.

Company should committed in developing and rewarding sales force for the demonstration of these Core Competencies such as . 1. Agility, Flexibility & Innovation 2. Results Driven 3. Global Effectiveness 4. Customer Service Orientation 5. Operational & Financial Excellence 6. Knowledge & Development 7. Teamworking & Networking 8. Communication 9. Prioritisation & Balance District and Regional Sales Managers should be measured based on three additional competencies: 10. Leadership & Matrix Management 11. Employee Development & Performance Management 12. Delegation & Empowerment Not all Core Competencies need to be demonstrated all of the time. The focus should be on those competencies which are key to the job role. The Core Competency standard rating scale is below: At All Times -> the individual consistently exceeds the competency description. Frequently -> the individual frequently exceeds the competency description. Occasionally -> the individual occasionally demonstrates the required competency. Rarely -> the individual rarely demonstrates the required competency. Not required -> the individual was not observed in relation to this competency.
High performers need to be rewarded who demonstrate the core competency at all times.