Getting ahead in a down market – sales force talent management and diversity in the CPG industry

In a weak economy, talent management is even more critical to improve company performance – every sales employee is called on to contribute more toward helping their CPG manufacturer survive and thrive. Getting sales talent management right can significantly add top- and bottom-line value.

However, the CPG sales job is becoming increasingly complex: consumer information is proliferating, planning horizons are expanding, products are becoming increasingly interdependent, and retailers expect new levels of merchandising innovation and support. Most companies need more sophisticated CPG sales talent.

To understand the current state of sales force talent management and diversity within the CPG industry and plan for the future, The Grocery Manufacturers Association (GMA) and the Network of Executive Women (NEW) engaged A.T. Kearney to conduct an in-depth study. The study draws on surveys and interviews with executives and field employees from 34 CPG sales forces and eight retailers, as well as A.T. Kearney research and expertise.

Current view of sales force talent management
The study found, for example, that CPG sales and human resource executives rated their talent management activities as “highly effective” only 9 percent of the time. And 68 percent of these executives plan to increase investment in their sales force talent management programs.

Survey responses also show that only 63 percent of participating CPG companies believes their talent management program aligns with corporate business objectives. In addition to an understanding of the current landscape, the study highlights best practices and the key steps for improving sales force talent management programs.

Leading practices in CPG sales force talent management
Leaders in sales talent management realize higher sales productivity and revenue growth, stronger customer relationships that provide deeper access and greater impact, and increased recruiting success among high-caliber CPG salespeople, with lower voluntary attrition.

The study identifies the leading practices in CPG sales force talent management that lead to positive business outcomes:

• Build the right sales force skills. CPG sales superstars have a general management mindset – they are “thinkers,” not just “doers.”In addition to traditional sales skills, retailers cite strategic thinking, financial analysis, customer segmentation, shopper insights, cross-category vision, and go-to-market knowledge as critical components of leading sales people’s toolkits.

• Align talent strategy with business performance goals. Survey responses and executive interviews explain that stand-alone talent and diversity programs just don’t work. CPG manufacturers must pursue integrated talent strategies that align with business objectives across levels, functions, and geographiesto drive growth and differentiation.

• Focus on formal and informal engagement. Effective talent management blends standard processes with customized attention to individual needs. Formal programs with measurable outputs can be implemented more consistently than less formal talent management activities, with closer adherence to corporate policy. Without strong personal and cultural components, however, purely process-focused talent management strategies often fail to take root.

• Capture broad diversity benefits. Leading companies incorporate a broad concept of diversity into their corporate DNA. They work to increase diversity of thought and experience along with diversity of race, gender, age and sexual orientation, and they encourage managers to seek diversity when building project or account teams. This inclusive environment drives innovation, enhances market insight, and increases access to top talent.

Steps to world-class sales talent management
Study insights suggest that CPG manufacturers can achieve world-class sales talent management by following three steps

• Chart a sales talent management road map by determining how sales talent impacts corporate objectives, what skills and capabilities create customer value, and which specific activities will deliver desired talent management outcomes

• Support sales talent strategy with executive sponsorship, incentives, tools and technology, transparent communication, and performance metrics

• Articulate, activate, and sustain talent management by assigning accountability across executives, sales leaders, and HR leaders

Research report

Watch Donna Stella's presentation for the Network of Executive Women Leaders Forum: NEW / GMA Research Presentation.

Contact

Beth Bovis is a partner in A.T. Kearney's Chicago office.
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Donna Stella is a partner in A.T. Kearney's New York office.
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Related links

Media highlights

CPG Companies Need to Broaden Sales Skill Set to Meet the Needs of Modern Retailers
6 May 2009 — GMA
Groundbreaking research study by the Grocery Manufacturers Association (GMA), the Network of Executive Women (NEW), and A.T. Kearney shows that sales force talent management has top- and bottom-line implications.

Is Your Training Past Its Sell-By Date?
August 2010 — Talent Management Magazine
It's easy to overlook the impact of talent management on CPG success, but retailers are quick to recognize the value of CPG companies that have high-quality sales talent management programs.
by Beth Bovis, Donna Stella, Melanie Mityas, Brian Lynch