Frequently Asked Questions

• 1. Why a large sales force analysis?
• 2. How did you determine “Best In Class”?
• 3. How did you calculate operating margins?
• 4. Are you comparing apples-to-apples?
• 5. Where did you come up with the key differentiators of excellence, or findings?
• 6. Have these companies paid to be on this list?
• 7. Why does a best in class organization want to be affiliated with this study?  What value is in it for the company?

1. Why a large sales force analysis?

Profiles Research Institute conducted this study to better understand the factors that drive sales force productivity in large organizations. We studied 230 companies, 1 million sales people within 13 industries to better understand the factors that drive sales force productivity within an organization. The Profiles International America’s Most Productive Companies Large Sales Force Analysis also provides key insights into the practices that enable some organizations to run more efficiently and more competitively than others.
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2. How did you determine “Best In Class”?

In economics, “productivity” is a measure of output per unit of input. However, productivity alone is not a sufficient gauge of sales force effectiveness since it ignores pricing and margins. For purposes of this study, we sought to account for both revenue growth and revenue profitability, which we defined as operating income generated for each dollar of revenue generated. Calculating this required us to analyze financial data from over 230 companies with at least 350 sales people that we then organized into 13 different industry groups.

When we identified the large sales force organizations, analyzed public financial data and then plotted these companies according to their revenue growth and operating margins to identify the best in class, questionable, and laggards within each industry group. We took a closer look at the best-in-class companies to identify common practices that enable them to out-perform their peers. We dig into six key differentiators of excellence and explore how organizations can run more efficiently and become more competitive in the marketplace.
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3. How did you calculate operating margins?

Operating Margin = Operating Profit ÷ Recognized Revenue

As expected, we did encounter some challenges that required us to make some corrections and assumptions along the way. For example, when necessary we adjusted revenue to minimize the impact of special events, such as the one-time sale of an asset. Additionally, the revenue reported in the financial statements is recognized revenue resulting from accrual accounting.
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4. Are you comparing apples-to-apples?

We grouped companies into 13 industry groups to make for more meaningful analysis. Our assumption is that companies competing in the same industry generally go about their business in a similar manner. Different industries have differing sales and service practices.
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5. Where did you come up with the key differentiators of excellence, or findings?

Once we completed the data gathering and analysis to determine our rankings and large sales force analysis, we did follow-up research on a number of the best in class companies and identified some of the best practices that contribute to the success of those organizations. We list these below:

Six Key Differentiators of Excellence
1. Extreme customer and market focus
2. Alignment of products, services and solutions with customer’s high priority needs
3. Alignment of resources to build customer loyalty
4. Alignment of sales process with customer’s buying process
5. Alignment of sales roles and capabilities with customer’s buying process
5. Alignment of time utilization and territories with market potential
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6. Have these companies paid to be on this list?

No. Our report was compiled from a variety of publically available sources, such as annual reports, SEC filings and investor presentations. These companies were not aware of our research activity until after the ranking process had been completed.

7. Why does a best in class organization want to be affiliated with this study?  What value is in it for the company?

We determined our rankings through consistent evaluation criteria. We believe being named Best In Class in “America’s Most Productive Companies Large Sales Force Analysis” is a tribute to superior human capital management practices and the hard work and commitment of your employees.

If you are a Best In Class organization, this is a great opportunity to let your employees know how much you appreciate their contribution by celebrating the moment. Let prospective hires as well as your customers and prospects know that yours is a well run organization and a leader in your industry. Contact us for a customized Best In Class logo and press release template created exclusively for your use in promoting your success.

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