Case name: The 90-day Sales Turnaround Challenge

Explain & support the thought process around all personnel decisions you decide to make Set goals for all outside salespeople for the next 90 days Consider what type of incentives you will offer Discuss how you would approach conversations with all individuals based on the information in the case and why would you approach it that way.

Case overview: Arch Wireless is a wholly owned subsidiary of Arch communications, headquartered in Westborough Mass. Arch is the nations leader in the Paging industry and operates 4 Regional Divisions which encompass the entire continental United States. Arch has grown by both organic growth, with a network of authorized dealers, retail locations as well as a robust outside B2B sales team, and by acquisition.

Each Region is headed by a Division President who report directly to the Chief Operating Officer of the Company. Arch is a publicly traded company on NASDAQ and, of the time of this case study, is trading at $21.32 per share. While the outlook for paging in general is uncertain in 1999, Arch is currently developing a 2-way paging system which will enable users to send Alpha numeric pagers between users (current day texting). While texting is beginning to become available on flip cell phones it is both expensive and cumbersome. Analog cellular technology is expensive, and the average cell phone bill is in excess of $225.00 per month. Paging is a low-cost communications alternative to cellular, which is only on the verge of digital technology, which will substantially lower consumer costs.

Your current role You are a District Sales Manager responsible for Service and Sales of pagers in the New York Upstate Market which includes the following: Albany, Syracuse & Rochester. The average market is comprised of a Market Manager, 5 B2B outside salespeople, 2 outside customer care representatives, 3 retail stores and approximately 20 independent dealers. The market also includes an office manager whose responsibilities range from ensuring all paperwork is completed accurately and in a timely manner. The office manager is also responsible for all store inventory as well all dealer and outside sales representatives and customer care inventory. You report to a Regional VP, Kevin Queen. You have worked for Kevin, he hired you, for 5 years and have a very positive relationship with him. Youve achieved and exceeded all your sales goals since you were hired and have been promoted 3 times starting as Sales Manager in 1994, Market Manager in 1996 and then District manager in 1998. In 1996 you were named Impact Player of the year for the entire organization. You have the reputation as a no-nonsense manager who has no patience with non-performers but will work hard to support team members who demonstrate they want to succeed. You set the bar high with your team and they have always responded. In September 1999 Kevin Queen requests a meeting with you to discuss a sensitive issue. He has also included the Divisional President Antonio Santoro to attend via speaker phone. Antonio is a compassionate & ethical leader and youve always had a great relationship with him and a great deal of respect for him as well.

The meeting: Antonio starts off the call by expressing his gratitude for all the challenges youve faced and how youve always overcome obstacles, Kevin agrees. Your intrigued at this point you know they are in need of something but youre not sure what. Kevin then shocks you He wants you to take over the Poughkeepsie market. The Poughkeepsie Market Manager, Laurie Lane, is a peer and a good friend to you. Laurie has worked for the company for 8 years, and at one point, managed a top performing market. Over the past year her numbers have slipped badly. Laurie had been calling you for the past 6 months telling you that Kevin had been threatening her that she needed to turn things around or else. When you asked Laurie what the issue is, she states, the problem is Kelly P. my office manager All my salespeople despise her, and they are all threatening to quit. When you ask Laurie why you dont get rid of her, she states I want to, but Kevin Queen wont let me! Kevin then tells you that just fired Laurie. When you ask why, Kevin states youve seen the numbers & the office is in turmoil. We need those numbers to hit our quarterly guidance to wall street, you know the deal Antonio then speaks; bottom line is we need you to take over the market starting today. You need to figure this out and turn it around in 90 days, were really counting on you. While you never hesitate from a challenge, your emotions are churning. Laurie is a friend. Of course, you say absolutely, knowing in corporate America, when they give you 90 days to turn something around, they mean 90 days. You do require one thing: Remembering Lauries comment that Kevin Queen would not let her fire Kelly P her office manager, You ask that any action you take to turn the market around will not be challenged you receive that assurance from both Antonio as well as from Kevin. Kevin has spoken to the staff and set up a meeting for 8am with yourself and the Poughkeepsie staff the very next morning. You go home and pack your bags, travel to Poughkeepsie and grab a hotel. Kevin Queen gives you a packet of papers to look at the sales performance of the branch which is in the red. The Poughkeepsie market ran from Kingston to the Tappan Zee bridge and was an important part of the Arch Wireless portfolio. You open the packet from Kevin queen and see the following productivity numbers: Rep Name Monthly unit Goal 1997 % to Goal 1998 % to Goal YTD 1999 % to goal Claudia K 100 145% 92% 62% Kelly R 100 135% 71% 69% Jacqui B 100 N/A N/A 92% Jason S 75 N/A N/A 12% Open Territory 75 N/A N/A 0% Total 450 105% 81% 52% N/A represent the rep was not employed at that time As you look at the numbers you feel you heart pounding 90 days? you say to yourself ... 90 Days??

DAY 1 The next morning at 8am you walk into the office for the initial meeting. Present are as follows: Claudia K - Sales representative a 5-year employee Jacqui B - Sales Representative Carrie P - inside sales rep Kelly P office manager Shakira J outside customer care representative Absent are as follows: Kelly R - Sales representative 7 years Jason S - Sales representative 6 months

As you begin the meeting on time, you ask Kelly to page Jason & Kelly R as they are not at the meeting. You immediately notice that Claudia K is laughing when you make that request You ask her why and she responds: because they know this is a joke - when you inquire why that is, she says youll find out. You look for other signs of body language in the room everyone else looks engaged and willing to listen. You decide at that point to break and handle conversations one on one Starting with Claudia.

Claudia upon entering your office you invite her to sit. She says no thanks I wont be here too long. She says, make me sales manager and Ill solve your problems if you dont - they wont go away. And she heads for the door as shes leaving, she says oh, and by the way, Laurie owes me a $100.00 gift card, I want it from you by next Monday with that she leaves.

Jacqui B. - Jacqui is a very pleasant outgoing person who cant stop smiling. She has worked for the company for 5 years, 4.5 in Customer care while just transitioning into outside sales which she loves. While she says shes had little guidance, she tells you about all the opportunities she is currently working on. She is well spoken, well dressed and carries herself very well. You thank her for her time. Just then Kelly P informs you that Kelly R is on the phone for you. You ask her why she was not present at the meeting and she states she decided to take a vacation day unscheduled. She is rude and short with you on the phone and she states I feel the same way Claudia does you need to get rid of that B^&*% Kelly P and promote Claudia to Sales manager and Laurie also owed me a gift certificate as well - she then says words out you have 90 days to turn this market around you cant do it without Claudia and myself. Oh, can you also tell Antonio Santoro, the Divisional President, Ive got those Mets tickets he wanted him and I are buddies and you know how connected I am !! with that she laughs and hangs up the phone without saying goodbye.

Kelly P then informs you that Jason S also called and left his home number. She also informs you that Jason has been absent for 2 weeks and Laurie could not get a hold of him. His productivity is

horrendous. He has been employed for about 8 months. You call Jason and question him about his extended absence, and he states funny thing happened to me. I was on a sales call about 2 weeks ago. I opened the back of my van to get my inventory case. When I shut the van door it hit me in the head and knocked me out cold. I was in a coma for over a week. I just got home for the hospital - You then ask him for a Drs note, and he states not possible my uncle was my doctor at the hospital & he took care of me personally and the hospital did not charge me. He wants to keep this whole thing under wraps You thank Jason and inform him youll be in touch. You then meet with Carrie P Shes in inside Sales and is hitting all her goals. Shes been with the company for 3 years and wants to get into outside sales. Shes outgoing and presents herself well. She works for Kelly P and they get along great. Her inside sales numbers are strong. Next Is Shakira J She is an outside customer care representative. Polite, well dressed and wants to get into outside sales. She seems very shy and timid and finds it difficult to maintain eye contact with you. Your reports indicate her customers really like her and her account retention is high. Last is Kelly P., the office manager and, according to Laurie, the ex-market manager, Kelly R and Claudia K, the root of the problems. Youi ask her directly what the issue is, and she states; Im just enforcing the company policies doing what I get paid to do. I dont need to be friends with anyone. Laurie was best friends with Kelly R and Claudia and Laurie would never support me. Laurie would always bypass company policy to keep them happy. I know Laurie wanted to fire me, but Kevin Queen would not let her. After going through and validating she truly maintains company policy and validating the breach thereof by Claudia and Kelly R, you thank her for her time. On the drive home your thoughts are abundant - what do you do? You need to submit a plan to Kevin Queen and Antonio Santoro in 48 hours. Assignment: In your groups, prepare a 15-minute PowerPoint presentation and detail how you are going to turn the Poughkeepsie Market around. Please consider the following:

Explain & support the thought process around all personnel decisions you decide to make Set goals for all outside salespeople for the next 90 days Consider what type of incentives you will offer Discuss how you would approach conversations with all individuals based on the information in the case and why would you approach it that way.