SPI ( sales performance Improvement) case analysis- MEC Missouri Engineering Company PLEASE USE FORMAT in bold PROVIDED IN TO ANSWER The Company Missouri Engineering Company (MEC) is a major developer of low power, high-definition (HD) and Ultra HD video compression and image processing solutions. The company was founded in 2004 in St. Louis by five UMSL alumni, with the idea to sell its products and solutions to original design manufacturers and original equipment manufacturers through company sales force and logistics providers. MEC became a publicly traded company in the year 2012. Since then, it has won multiple awards such as Most Respected Public Semiconductor Company and Best Financially Managed Semiconductor Company in the $100$500 million annual sales category of the semiconductor industry. MEC produces system-on-chip (SoC) video chips and offers six different types of products to original design manufacturers and original equipment manufacturers nationwide through its direct sales force of 80 field salespeople. The companys products are used in a variety of professional and consumer applications, which include security IP-cameras, automotive cameras, flying cameras, sports cameras, wearable cameras, and broadcast infrastructure solutions. Some of MECs target customers are GoPro, a leading maker of wearable sports cameras, and Ubiquiti Networks, a leading maker of Internet protocol security cameras. The field salespeople of MEC are responsible for both selling the products and providing professional services and technical support after customers purchases. The Issues In the past year or so, the Vice President of Sales at MEC has begun to notice some changes. While the company is still growing, the rate of growth has begun to slow down. Meanwhile, many of their competitors have grown in much faster paces in this lucrative industry. Another disturbing trend also drew his attention. MEC was losing new business at an increasing rate. Companies like Ambarella, Maxim Integrated, Texas Instruments, NXP Semiconductors N.V., Infineon Technologies AG, and STMicroelectronics were winning contracts over MEC. Finally, and this was the greatest concern for the VP of Sales, there were more complaints from existing customers about late orders, poor product quality, and lower customer service than in the past. The VP of Sales is uncertain how to improve the performance. He learns that you are taking a sales management course focusing on performance improvement and decides to ask for your assistance. The Data Based on your professional suggestions, the company reviewed business records and interviewed sales managers, training/HR staff, and salespeople in order to shed light on the issues. The VP of sales also hired a marketing research firm to survey customers and conduct industry analyses. The data confirmed the concerns of the VP of Sales. Specifically, the annual growth rate of MEC has dropped from 12% three years ago to 5% today, while the industry still grows at 10% annually. Similarly, both the number of contracts lost and number of customer complaints doubled compared to three years ago. SPI Case 3: Missouri Engineering Company SALES PERFORMANCE IMPROVEMENT CASE ANALYSIS These data also reveal the following: 1. Many MEC managers have strong science and engineering backgrounds and they are comfortable hiring salespeople with similar capabilities and experiences. As a result, their training time was shorter and focused more on the technical features of the products offered by MEC rather than discussing customer needs and preferences. 2. Most customers are satisfied with MECs established products, but unhappy with the companys new products because they are too complex. Customers also complained that they were unable to get technical support from MEC salespeople, their phone calls were never returned, and their service requests were never answered. Some customers were asking why MEC did not hire more salespeople. 3. According to company sales reports, MEC salespeople have been working hard. Many salespeople complain that, since the new products offered by MEC become increasingly complex and there are strong demands from customers for technical support, they are struggling to balance personal selling and providing services. 4. Industry analyses show that, major competitors such as Ambarella, Maxim Integrated, Texas Instruments, NXP Semiconductors N.V. have created In-House Customer Supporting Centers in order to provide technical support and coordinate service efforts. Other companies such as Infineon Technologies AG, and STMicroelectronics have established National Key Account Teams in order to provide better services to important customers.

The Questions 1.: Stage 1: assess the sales performance FACTS, identify the major sales performance gaps, and then set SPI objectives.

2. Stage 2: conduct Sales Activity and Cause Analyses using the data collected by the VP of sales.

3. Stage 3: define desired salesperson behavior in order to address the performance issues, then take managerial actions to facilitate changes.

4. Stage 4: assuming six months after taking the managerial actions you suggested, the company notices that both the number of contracts lost and number of customer complaints are reduced by 30% and the company growth rate has increased by 20%. Please discuss how you will establish the connection between your solutions and the outcomes and attribute the effects. In addition, if you believe that your solutions indeed make a difference, how you will solidify habits, ensure learning in order to sustain the improvement

FORMAT FOR ANSWERS::::::

Sales Organization:

SPI Analysis Conducted for:

SPI Analysis Conducted by:

SPI Analysis Date:

Performance Assessment	Step 1. To Assess Performance FACTs Financial Performance: Activity Performance: Customer Performance: Talent Performance: Strategy and Sales Goals: Step 2. To Set SPI Objective(s) Focal Performance Gap(s): SPI Objective(s):
Analysis	Step 3. To Conduct Activity Analysis Sales Activity Analysis Which Approach will you use to conduct the sales activity analysis? What is the Process of your sales activity analysis? What Activity Weakness have you identified? Step 4. To Explore Potential Causes of the Activity Weakness To Investigate the CRIMES: Is the following a major cause of the activity weakness you identified in Step 3? Capacity & Aptitude Resources & Tools Incentives & Compensation Motivation & Commitment Expectations & Feedbacks Skills & Knowledge After conducting the analyses, will you revise the SPI Objective set in Step 2? Yes/No
Changing Behaviors	Step 5. To Define Desired Behavior Desired Behaviors: What is the desired behavior you would like the salesperson to adopt in order to address the activity weakness? Please describe the quality criteria and frequency of the new behavior. Is the behavior Relevant to the activity weakness? Yes/No If not, please revise the new behavior you just defined: Is the behavior Controllable by the salesperson? Yes/No If not, please revise the new behavior you just defined: Leading Indicators: How do you measure the extent to which the new behavior is adopted? How do you monitor the progress of behavioral adoption? Step 6. To Take Managerial Actions and Facilitate Changes Managerial Actions: What managerial actions will you take to encourage adoption of the new behavior? Please summarize. Which of the managerial actions will be used to promote the perceived Usefulness of the new behavior? Which of the managerial actions will be used to make it Easier for salespeople to adopt the new behavior? Which of the managerial actions will be used to enhance salespeoples Self-confidence in adopting the new behavior?
Evaluating and Sustaining Improvement	Step 7. To Establish Connections and Attribute Effects Have you detected any improvement? If not, go back to Step 3, reanalyze the activity and causes, and repeat Stage 3. If yes, specify the detected improvement below: How do you establish the connections between the behavioral changes and performance improvement detected? How do you attribute the performance improvement to the effects of behavioral changes? Step 8. To Solidify Habits and Ensure Learning How do you solidify good working habits of the newly adopted behavior? How do you ensure learning among other salespeople in order to sustain the improved performance? Have you accomplished the SPI Objective you set in Step 2? Yes/No If not, what are the major reasons preventing you from accomplishing the SPI Objective? How will you address them? If yes, go back to Step 1, examine other sales performance issues need to be addressed, and repeat the SPI process.