IBM - Best New Version of a Sales Performance Management Solution

Company: IBM, Armonk, NY
Company Description: IBM is a values-based enterprise of individuals who create & apply technology to make the world work better. Today, more than 400,000 IBM employees around the world invent and integrate hardware, software and services to help forward-thinking enterprises, institutions and people succeed on a smarter planet.
Nomination Category: New Product & Service Awards Categories
Nomination Sub Category: Sales Performance Management Solution - New Version

Nomination Title: PERFORM Sales Pipeline Assessment with Contributor / Detractor View

The PERFORM Pipeline Assessment (PPA) is an innovative pipeline valuation method developed by IBM’s Chief Analytics Office. PPA measures the results of the sales effort in terms of change in pipeline value. This is defined as the sum-product of opportunity size and likelihood for the opportunity to become a win by the end of a specified quarter for all sales opportunities within the pipeline. By factoring in not just the quantity of pipeline but also quality of pipeline, PPA provides sales management a holistic view of the pipeline and enables timely response to sales pipeline progression (or lack thereof). With its universal applicability and flexibility, PPA has unlocked tremendous efficiency in achieving sales management objectives.

The new version of PPA, released in January 2020, introduces a new feature sought after by many users: the contributor / detractor view. This feature increases sales management effectiveness by highlighting the changes that matter most, while adding to PPA explainability. In the original version of PPA, sales effort is tracked in an aggregated fashion in terms of change in total pipeline value. The natural question a PPA user would then ask is “what exactly caused the change of my pipeline value”? To answer this question, the PPA contributor / detractor view shows the top sales opportunities with the largest week-to-week increase or decrease in PPA value. Beyond the change in PPA value, the contributor / detractor view also drills down to leading factors of such change including change in opportunity size, sales stage progression or any other change that would be captured through win probability. By zooming in on PPA change at the opportunity level, the contributor / detractor view allows sales management to:

Better direct sales effort to key opportunities
Improve sales efficiency by studying strategies / actions taken on top contributors
Conduct more informed sales operations retrospective

In the fast-changing business environment during the COVID19 pandemic, the new version of PPA enabled sales management with near real time insight into the impact of the pandemic. The sales management was then able to swiftly respond and manage expectation of end of quarter results.

The PERFORM Pipeline Assessment (PPA) new version with contributor / detractor view was released in January 2020.

Since its roll out, PPA contributed to 50pts of pipeline progression acceleration in areas of full deployment. Moreover, Sales Managers’ survey finds PPA being used in over 80% of decisions and being 3x more relevant to achieving Sales Management objectives than previously used metrics. The new version of PPA with contributor / detractor has gained wider popularity due to its additional actionable insights. As highlighted below in some of our customer testimonials, this tool is embedded in many weekly operation processes to drive better outcome for IBM.

“The PPA tool enables me to understand what is going on “real time” towards achieving our Transactional revenue objective.In addition to giving me a great summary, it highlights the deals that have made substantial improvement and those that have run into issues.This helps me answer management’s questions and enables IBM to optimize the quarter.” - Financial Analyst

“This tool is very useful in determining week to week changes.We have made this a part of our weekly process to provide our CFO information on our Trans number.This tool has allowed us to provide better information.I am glad we have this ability now.”- Performance Insights Analyst

“I am using PPA tool because it is really a very user-friendly tool and in a second I am able to retrieve the revenue estimation from visible pipeline. What is more, I have imbedded in my reporting the top influencers (contributors/detractors) shown for the respective week. ... It is very useful for the Management team to recognize if a deal is going into the right/wrong direction and take the respective action, if needed.” - Digital Sales

“Digital Sales had been struggling with some of our pipeline metrics as they are rooted in deep history, while our environment, territories, customers, offerings, etc. can change drastically within a year. We needed a tool that could look at our current behavior and help us predict pipeline outcomes.PPA is able to do just that, and now with WTW change analysis.” - Digital Sales Leader