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404 IMPLEMENTATION OF THE SALES PROGRAM CASE 2.2 ON-TIME PACKAGE DELIV no growth, and through his leadership sales had risen 25 percent in two of the three years he had been manager. Indeed, Melbourne had been the number one district at OTPD for two of the three previous years. After the usual small talk Jacobson got down to business: were senior salespeople responsible for the largest accounts. For this group, suc- cess was measured by the increase in sales for each account as well as customer sat- isfaction scores collected twice a year. Each district had two to three key account managers. The sales force consisted of men (60 percent of the sales force) and women (40 percent) in their 30s and 40s. Sales representatives tended to be younger (30s), while key account managers were older (40s). When a key account manager position became open, the policy of the company was to promote a sales representative. The compensation and benefits package was above average for the industry. Experienced sales representatives could earn AUD 81,000-92,000 a year in salary and bonuses, key account manager compensation was AUD 92,000-95,000, and district managers averaged AUD 145,000. In addition, each member of the sales force was given a laptop and cell phone with unlimited usage. In reality, many salespeople used the cell phone as the primary phone for work and personal activities. Each salesper- son was also given a car and enrolled in a retirement plan with the company. Jacobson: I noticed sales are flat for the last six months in Melbourne, what do you think is the problem? Gunther: Don't worry; it is a short-term issue. Everything is fine. My salespeople are working hard. We have just had a run of bad luck. You know sometimes things don't go your way for a while but we will turn it around. Jacobson: Dan I think it may be more than that. There has been an increase in client complaints. For example, I got a call from Craig McMillan, managing partner at Clark, Burton, and Bowers, about the lack of service. As you know, Clark, Burton, and Bowers have been with us for many years and are one of our largest customers with offices in Sydney, Melbourne, and Brisbane. While you are not responsible for Sydney and Bris- bane, McMillan indicated that Judy Billings, our key account manager in Melbourne, has been slow in responding to questions and not as responsive as she used to be. Gunther: Look Wayne, we are working hard here in Melbourne. Judy is one of my best salespeople and consistently hits her sales goals. It's not her fault if the folks at Clark, Burton, and Bowers make unreasonable demands. A CONVERSATION WITH DAN GUNTHER, DISTRICT MANAGER IN BOSTON One of the first people Jacobson contacted was Dan Gunther, district manager in Melbourne. Dan, a 15-year veteran with OTPD, had started out as a sales representa- tive after graduation. He had been promoted to key account manager and finally been given the Melbourne district almost three years ago. Melbourne was the sec- ond-largest market for OTPD, after Sydney, and Gunther had done a good job with the district. When he took over, the Melbourne district was stagnant, with little or Dan did have a point. Judy was a solid performer and, as a result, she had been promoted to key account manager two years ago. One of her largest accounts was Clark, Burton, and Bowers. With more than 100 attorneys in Melbourne, they gen- erated a lot of business for OTPD. Clark, Burton, and Bowers had been a customer for a long time and Jacobson did not believe them to be overly demanding. He spoke with several other district managers, but his conversation with Dan Gunther was representative of the information he was hearing from all the managers. Justin Spencer president, OTPD EXHIBIT 1 Organizational chart for On-Time Package Delivery December 2012 Wayne Jacobson senior VP of sales A CONVERSATION WITH CAROL KLEIN, KEY ACCOUNT MANAGER IN PERTH Sydney Neil Franks (DM) 3 KAMS 10 SRS Melbourne Dan Gunther (DM) KAMS 9 SAS Brisbane Emily Cave (DM) KAMS 8 SRs Perth Ben Gardner (DM) 2 KAMS SAS Jacobson now wanted to speak with individuals in the sales force. He decided to speak first with key account managers. The final call he made was to Carol Klein. She is a nine-year veteran of OTPD and followed the traditional path of promotion from sales representative to key account manager. Carol is responsible for the larg- est accounts in Perth. These included several law firms and two global consulting firms with major offices in the Perth area. She also managed OTPD's business for two of the three major hospitals in the area. Jacobson was sensitive to going around the local district manager, Ben Gardner, to contact Carol directly, so he first called Gardner to explain the situation. Lynn Attaway (KAM) Judy Billings (KAM) Mike Wagner (SA) Carol Klein (KAM)