Mr. Michel CAILLET GEODIS WILSON France
Transcription
Mr. Michel CAILLET GEODIS WILSON France
ORSINI Carole Student number: 719710 GEODIS WILSON France Gare d’Arenc 14, rue d’Anthoine 13002 Marseille Phone : +334.91.39.19.41 Fax : +334.91.91.97.52 Placement supervisor: Mr. Roël KALKWIJK Coach Company: Mr. Michel CAILLET WORD OF THANKS I would like to thank all people of the agency Geodis in Marseille for their welcome, patience and availability and all personal with which I am working. Essentially, I thank the sale service for my own job training and their sympathy. Also, I thank the sale manager Mr Caillet, and the junior commercial, Miss Grille for their advices and their explanations and their support. I thank Mr Kalkwijk for his patience and his comprehension and his advices. ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 2 SUMMURY WORD OF THANKS....................................................................................................................................... 2 SUMMURY....................................................................................................................................................... 3 INTRODUCTION............................................................................................................................................ 5 EXECUTIVE MANAGEMENT........................................................................................................................ 6 PROBLEMATIC: “HOW TO IMPROVE THE SALE FORCE RESOURCES IN A FORWARDING AGENCY?”........................................................................................................................................................ 6 TO ANSWER TO THIS PROBLEMATIC, I PRESENT THE PROCESS TO SORT OUT THIS ISSUE.. 6 FIRST OF ALL, I PRESENT THE MULTINATIONAL GEODIS WILSON, ONE OF THE 10 TOP WORLDWIDE FORWARDING AGENCIES. IT IS DIVIDED ON SEVERAL ACTIVITIES: SUPPLY CHAIN MANAGEMENT, DISTRIBUTION, FULL TRUCKLOADS, AIR AND SEA. IN THE CURRENT OVERSEAS DIVISION, THE 2006 TURNOVER IS ABOUT 3 MILLIONS EURO. MY ANALYSIS IS FOCUSED ON THE MARSEILLE AGENCY WHERE I WORKED DURING ONE YEAR IN THE SALES SERVICE IN AIR AND SEA FREIGHT. GEODIS OVERSEAS HAS MERGED IN 2007 WITH TNT MANAGEMENT AND THE HEADQUARTERS ARE FINALLY LOCATED IN AMSTERDAM. THE CULTURE IS CONSEQUENTLY MOVING FROM A FRENCH TO A DUTCH CULTURE. BEFORE THIS MERGE, GEODIS HAD ALREADY MERGED WITH OTHERS IDENTITIES LIKE ROLDE & LIESENFIELD TO REINFORCE HIS POSITIONS IN SOUTH AMERICA, ASIA...THESE MERGE HAVE CAUSED A CHANGE OF THE GLOBAL ORGANISATION AND CONSEQUENTLY DEVELOPED THE GLOBAL MARKET........................................................................................................ 6 I PRESENT THE GLOBAL VIEW OF THE THEORIES MARKET FOCUSED ON DIFFERENT MODELS AND CRITERIA OF THE SALES FORCE. THROUGH THIS THEORIES ANALYSIS, I DEVELOP THE SWOT ANALYSIS OF THE MARSEILLE AGENCY. THIS ANALYSIS GIVES A PICTURE OF THE NEED OF INTERNAL ORGANISATION AND OF THE NEED OF THE GROWTH OF THE SALES FORCE. IT ALSO SHOWS THAT THE OPPORTUNITY OF NEW MARKETS (THANKS TO TNT MANAGEMENT), THE GLOBAL SERVICE OFFERS, THE CONQUEST ON BIGGER BUSINESSES AND THE CENTRALISATION OF THE SALES FORCE INVOLVE A NEED TO RECRUIT NEW COMMERCIALS............................................................................................................ 6 AN AGENCY IN THIS CONTEXT HAS TO FIND AN ANSWER TO THE FOLLOWING QUESTION: HOW TO IMPROVE THE SALE FORCE RESOURCES IN THIS FORWARDING AGENCY?................6 AFTER THIS ANALYSIS, I DESCRIBE THE COMMERCIAL FUNCTION SHOWING THE IMPORTANCE OF MOTIVATION AND SATISFACTION. THE SYSTEM OF DRIVING OF THIS POSITION WORKS THROUGH AN EVALUATION OF COMPORTMENTS AND RESULTS. WE ARE ON A HYBRID SYSTEM AND THE ROLE OF SALE MANAGER IS CRUCIAL.......................................7 CHAPTER I: PRESENTATION OF THE GROUP GEODIS........................................................................ 8 I THE GROUP.................................................................................................................................................. 8 II GEODIS OVERSEAS................................................................................................................................. 10 III PROBLEM DEFINITION........................................................................................................................ 11 ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 3 CHAPTER II.................................................................................................................................................. 12 I THEORIES MARKET DEFINITION........................................................................................................ 12 II SWOT ANALYSIS...................................................................................................................................... 23 III DEFINITION FUNCTIONS.................................................................................................................... 28 CHAPTER III................................................................................................................................................. 31 I FUNCTION ANALYSIS METHOD............................................................................................................ 31 II GEODIS MARSEILLE FUNCTIONS ANALYSIS.................................................................................... 35 III THEORIES COMPETENCES /MOTIVATION..................................................................................... 42 IV WELCOME, INDUCTION AND RETAIN.............................................................................................. 48 CHAPTER IV: SOLUTIONS......................................................................................................................... 51 I TYPES OF RECRUITMENT...................................................................................................................... 52 II WELCOME, INDUCTION AND RETAIN............................................................................................... 53 III TRENDS.................................................................................................................................................... 61 CHAPTER V: RECOMMANDATIONS........................................................................................................ 63 CONCLUSION................................................................................................................................................ 67 BIBLIOGRAPHY........................................................................................................................................... 68 APPENDICES................................................................................................................................................ 69 PRESENTATION GEODIS........................................................................................................................... 70 I THE GROUP................................................................................................................................................ 70 II GEODIS OVERSEAS................................................................................................................................. 72 ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 4 INTRODUCTION After my placement in DHL Overseas during 3 months, I will present you Geodis Overseas. Geodis is a European group with an international network of 23,800 employees in 120 countries. Ranking among the top 5 European logistics companies, it is recognised for its multi business experience and its capacity to control all or part of the supply chain: distribution (bulking and express), logistics, full & part loads, air and sea freight, and reverse logistics. Working in commercial service like sales assistant, I would explain my hire and have and trying to improve my-self induction on the whole organization, I want to remove the issue of “improving the sale force on this design organization” in Marseille agency. The plan of this GA is running « From business expectations to business satisfaction through human capital rotation ». To introduce the subject, I will present you in first party the company GEODIS which is just merging with TNT and Rhode & Field (South America). Through its objective and SWOT analysis, its related commercial organization is reviewed. This organization is analysed regarding two paradoxes: specialization/ coordination and flexibility/ reliability. The second paragraph describes the analysis of previous organization providing competencies expectations. After introducing a functional analysis tool, I design the dedicated competencies required by each commercial function. From this analysis, a “development ladder” is developed with advantages and constraints. Finally, we can show alternatives on hiring and development processes, which are developed. The solutions are evaluated in order to present recommendations including an action plan. ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 5 EXECUTIVE MANAGEMENT Problematic: “How to improve the sale force resources in a forwarding agency?” To answer to this problematic, I present the process to sort out this issue. First of all, I present the multinational Geodis Wilson, one of the 10 top worldwide forwarding agencies. It is divided on several activities: supply chain management, distribution, full truckloads, air and sea. In the current overseas division, the 2006 turnover is about 3 millions euro. My analysis is focused on the Marseille agency where I worked during one year in the sales service in air and sea freight. Geodis Overseas has merged in 2007 with TNT Management and the headquarters are finally located in Amsterdam. The culture is consequently moving from a French to a Dutch culture. Before this merge, Geodis had already merged with others identities like Rolde & Liesenfield to reinforce his positions in South America, Asia...These merge have caused a change of the global organisation and consequently developed the global market. I present the global view of the theories market focused on different models and criteria of the sales force. Through this theories analysis, I develop the SWOT analysis of the Marseille agency. This analysis gives a picture of the need of internal organisation and of the need of the growth of the sales force. It also shows that the opportunity of new markets (thanks to TNT Management), the global service offers, the conquest on bigger businesses and the centralisation of the sales force involve a need to recruit new commercials. An agency in this context has to find an answer to the following question: How to improve the sale force resources in this forwarding agency? I focus on the responsibilities on each function and their requested competences within the sales force service. I concentrate also my research on the criteria of selection of new applicants and the content and evaluation of the training and induction programme. In order to understand and analyse this problematic, I design the function of commercial. Crozier and Schmitt describe this function as an intermediary between two environments: the organisation and the market. This implies that the more commercials there are, the more different markets can be multiplied. These theories are based on analysis tools holding on required competencies. The analysis model is founded on five abilities (knowledge and skills, reasoning and information processing, time management ability, ability to communicate, autonomy and responsibility ability) for four functions of sale services (assistant commercial, junior commercial, senior commercial and commercial manager). Due ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 6 to this describing analysis of commercial status, I build a progress ladder for each function, which enables to compare the competencies and attitudes required. After this analysis, I describe the commercial function showing the importance of motivation and satisfaction. The system of driving of this position works through an evaluation of comportments and results. We are on a hybrid system and the role of sale manager is crucial. The company has already a quality manual about the competencies management, which is not actually appropriated to the local management. The scheme analysis evaluates a global view of the firm’s situation about welcoming, retaining and induction. There are several types of recruitment. The process of recruitment can be different according to the context of the agency, for instance according to the level of exigency and urgency. There are also several forms of integration like the binomial integration - already applied on the agency with the junior and senior commercial - or like the recourse to a junior commercial who does in turns with theories and work field. On the process of recruitment, there are different types of formation on intern or extern on the firm. For example, Geodis Marseille has a specific training for junior commercial and develops others ones. We can see it exists four phases for a commercial (depends on age). I finish demonstrating the need of new commercial on this agency by the trends for a commercial profile. The four principal functional domains - the conquest of clients, the development of clients and of projects, the development of international activities, the development of partners-, and his evolution of profile, and of sale technical, and his evolution in term of carrier are describing. My recommendations are a mix of hiring solutions based on the abilities identified through the analysis. Three points are developed on the process: move the current job description to function analysis, train the manager to recruitment skills, and use psychologist to measure candidates potential. For the welcoming, induction and retaining scheme, I do recommend no to upgrade in parallel each item, like usual, but some processes are more prioritized and some not be changed yet. One of issue could be reinforce with a binomial approach. Another one is to add meeting with new employees within the company to reinforce their membership and build up their own network. Also, integrate an early development plan is recommended. Training program should alternate formal training and field exposure. The key issue of success is definitively the upgrading of managerial resources within the firm. With the merge, the new culture of the firm, the management will be more pragmatic, straightforward and enhances a centralisation system of sales force and perform tools of work. Geodis Marseille will involve on a good way to improve his business. ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 7 CHAPTER I: PRESENTATION OF THE GROUP GEODIS I THE GROUP GEODIS is a European group with an international network of 23,800 employees in 120 countries. Ranking among the top 5 European logistics companies, it is recognised for its multi-business experience and its capacity to control all or part of the supply chain: distribution (bulking and express), logistics, full & part loads, air and sea freight, reverse logistics. 1) Worldwide presence: To assist the customers around the globe, Geodis relies on our own strengths as well as those of reliable partners. Thus Geodis customers can work with a nearby contact able to meet their most specific requirements. Geodis have a worldwide multinational offer with 3 millions m2 of logistics warehouses. And, the quality indicator is on constant follow-up. Geodis like their competitors have a strong position by: • • • • • . Strong, steady growth in the air and sea freight forwarding market Increasing importance of freight forwarding in the international development of the supply chain One of the world’s leading freight forwarders Its own global network of offices Quality operations with a solid management team A brand that remains recognised in the industry: “Wilson 2) Geodis Key figures 2006 - The net sales is around 3, 8 Billion - Operating income is of 85.4 M euro - Net income: 32.3 M euro (group share) - 70000 customers 3) Networks and partners The agreements with Elix and with Rohde & Liesenfeld, signed in 2002 and implemented immediately, reinforce our presence in Europe and worldwide. (Developing on annex). ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 8 4) Well known commercial brands, dedicated to Geodis’ different activities: 5) Global logistics chain operator Services proposed by Geodis are: ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 9 Supply Chain Management Inbound ingénierie & optimisation Control of execution End to end flows management Reverse Logistics Collection & transport Sourcing - treatment Containers management Recovering processes Air & Sea Air Freight Sea Freight Customs Industrial projects Distribution Groupage Express Chartering Logistics Inbound logitics Production logitics Outbound logistics Added value services Full Truck Loads Full loads Distribution on request Specialised distribution Multimodal II GEODIS OVERSEAS 1) Key figures: Turnover 2006: 345 371 905 EURO 654 employees 4 300 clients 181 664 shipments- year One of the 3 active branches of Geodis Group: International logistics Bulking and express Full Truck Road 2-3-4) On appendix, we find our Multi Job, our traffic, our know- how description. ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 10 5) The agencies in the PACA region: Airfreight operations are situated in Marignane and Montpellier. Sea freight agencies are located in Marseille, Fos sur Mer and also Montpellier. In Marignane agency, there are 8 employees in charge of 4000 files each year with a customer service recently. I n Montpellier, there are 6 employees in charge of 1900 files each year in Airfreight; also, they employed a new commercial 3 months ago who develops this area. In sea freight, there are 6 employees also with 2600 files in charge each year. In Marseille agency, we are 50 employees in charge of 20 000 files each year and with 15000 customs formalities. In Fos- sur- Mer agency, 3 employees are in charge of customs service on the Fos sur Mer port with 5000 customs formalities. In appendix, the organigram of Marseille agency is described. So after presenting the firm, I choose to develop a problematic within the firm III PROBLEM DEFINITION 1) Problem definition How to improve the sale force resources in this forwarding agency? With the new merging of multinational firm and my new employment, I am interested by processes of the firm and new possible change of organisation. Discovering the sales force service, I am focused on the responsibilities on each function and the competences required. A clear objective: A profile of staff members in the sales department, showing an overview of all competences. Also, I am interesting about how to select new applicants and what do we have to do in their training/induction programme. 2) Research objectives After describing and analysing the situation of firm, the problematic is focused on the new sales force organisation with the perspective to employ new commercials. The merging with TNT Management allows lot of all change of processes and the vision of the general business. Recruitment needs to analyse each function of service. For that, I would describe the commercial aspects like competences, attitudes…for this; I choose 2 methods based on “development ladder”. We will demonstrate that there are several possible solutions. ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 11 3) Scope of research Studies are completed and decision has to be taken. Due to a growing business, agency of Marseille decides to develop their part of market on this business. For that, the need to recruit a new employee in sale force is evident. 4) Research methodology Based on: - Interviews - Literature - Methods of analysis: SWOT, market analysis, analysis of function, processes of induction, training of new employee. CHAPTER II I THEORIES MARKET DEFINITION To understand the organization of a firm it is important to have a general view of the different existent segmentation of markets and how the firm could be competitor on this global international market (due to strategic organization choice). So after this theories description, I will establish the SWOT analysis including the merging with WILSON and R&L. Also, we could assess the impact on the centralization or decentralization system, especially in Marseille agency. At the end of the paragraph, the functions of sale service will be describing to understand the following analysis. In first time, we have to analyse the market of the firm in term of client targets (in volume and in value), and then allow the firm to adapt marketing politic of size and repartition adequate. The client management: analysing tools of heterogeneous market We define what the market of the firm is, and then we will present a method of segmentation to share the market. 1) Definition and delimitation of client market For all types of products or services, the purchasing act corresponds to the notion of the first and second needs of satisfaction. The firm, by the intermediary of the sale force, offers its clients a product, a solution in reply to their needs. ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 12 The clients will define the market of a firm, but this definition is too restrictive. Effectively, the market of the firm is more spreading. The market integrates also the potential clients. We can define the market like the global of “publics” susceptible to exercise an influence on sales of one product. (MERCATOR, 6TH edition, Lindrevie, Lindon) This definition takes in consideration all the dimension of the client market. It defines the market by the totality of people who was or are or will be an influence on the consummation and useful of the product of the firm. This market is not homogeneous and we can decompose on 3 categories: - The real market (or actual) - The effective market (or potential) - The global market The real market registers all actual clients of the firm, who consume and who use the product. The effective market (or potential) measures all consumers and users possible. It registers the actual consumers of the firm, and in other part the no consumers who, by in adaptation of price or lack of recognition, don’t bought or don’t consume the product but they are susceptible to modify their comportment in case of modification of MIX (for example the modification of distribution politic). The global market represents the totality of potential market (real market, effective market) but also the absolute no consumers, consumers who, by their physical, religious, cultural incapacity, don’t consume the product. The following schema represents the notions defined before: No absolute consumer Actual consumers No relative consumer Real Market Effective Market Global Market A firm at national or international level proposes products and services on global territories and on global of market but the firm will also identify their clients. It is the case of Geodis, like others forwarding agent which manage the clients by territories. There are several consumer needs to meet, that’s why it is necessary to adapt a sales structure to the heterogeneity of the market. ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 13 The objective is to work proprietarily on the real market, to search all-important characteristics and common of individual teams, which enables to manage them by an appropriated sales force. It is necessary, before structuring / organizing a sales force, to search to identify the clients who compose the real market, and to gather, in a homogeneous manner in the segments of market, the most different. 2) The client market: segmentation and types profiles: There are several manners to manage the market of client: - Mass marketing - “One to One”: individualized marketing - Or face on both approaches: the segmentation or segmented marketing The segmentation of market and no the segmentation of the product or others is: “the global methods having for object to share the market on homogeneous segments and distinct”. MERCATOR A segment regroups the consumers depending on their expectations, their demographics, economics characteristics, and their purchasing comportments. 4 steps constitute the general scheme of the segmentation: - Choice of segmentation criteria Description of characteristics of each segment Choice of the segments Definition of the politic to adopt for each segment 3) Decision of the dimension and affection of resources The segmentation and establishment of profile types of clients are indispensable formalities but are not enough to release the act of purchasing for the clients. The essential manner of action is the sale force. The client segmentation or market segmentation is only a technical, which allows us to identify the types of clients and then to inform us about the possibilities to structure our sale force. The different appellations given by the norm XS0-660 of AFNOR of sale force are established on 2 dimensions: the first depends on responsibility (sale or support) and the second “a professional activity which of the exercise needs a specific learning scholarly or experience”. The sale force of the firm is composed on persons who have, as their principal function to sell or to make the products being sold on the firm with direct contacts… ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 14 This sale force constitutes a privileged link between the firm and the client. For most of the firm’s clients, the sales representative represents the firm. The sales representative needs a support of an efficient structure to bring a service of quality. In some cases, the sale force is limited by only one person, and can account several commercials. The importance and the cost of the sale force are considerable, and it is better to analyse and manage two important steps of set up: the structure and the size of sale force. 4) The structure of sale force: different models: Several shares are possible; which depends of the strategy adopted. If the firm doesn’t sell a product to different homogeneous clients, the firm will adopt a structure by sector, and if a lot of products or markets are sold, an organization by market (or client), by product or by activity will be preferred. * The geographical sector: The structure by geographic sector is the most simple. On this mode of organization, each manager works in one geographic sector where he sells the products or services of the firm. This sector may be only one or several French departments or many cities… The commercial is placed under the hierarchic responsible of sector or of regional director. (ANNEX A1) This structure represents advantages and disadvantages: Geographical Organization For the firm Advantages Disadvantages Each commercial is responsible of his sector More global approach of client relationship No ambiguity in relationship with clients Limited travel costs When the range of product is too large, the commercial don’t know well all products ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI For the clients Unique interlocutor who knows well the needs Commercials closer to the clients The national clients will be in contact with several commercials. Nobody can bring a global solution. 15 The commercial has to adapt him to all categories of clients. The commercial can’t focused on market line because they have to recover an area and no a type of client. Nerveless, if the commercial is specialised on market line, the client will be more secure because we will know how to ship their products and have an important contact with specialized shippers (example: group agreement with shippers specialised on foods and health freezing) (Depends on structure and organization of firm). The share of territories has several imperatives: The sectors must be simple to manage, their potential simple to calculate, and the cost of travels limited Each sector must insure each commercial a potential of sale equitably well sharing. There are two different ways of determining the size of the sectors: the first is the creation of sectors with equal potential; and the second tries to equalize the charge at work. In creating sectors with equal potentials, each represent would be having the same gain. The regular differences observed between the sales realized in the sectors shows the spread of capacities or of work. One such approach encourages the commercials to give the best of them. The other systems adopted for the share of sectors consists on standardize the charge of work of representative. This system would be permitting for the commercials to assume his sector on satisfy manner. But it leads to different important potentials but they absorb in paying a commission rate lowest than commercials beneficing on sectors with higher potentials. A geographic or generalist structure corresponds on sale force basic. Nevertheless, certain clients are preoccupied on the price, others ones on a quality service… Divers needs need a sale structure able to adapt itself to the heterogeneous. When the products of the firm are too much diversified to be sold by one and it commercial in a sector, we can think on product’s organization. ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 16 * Structure by product Some societies sell lot of diversified products. Just for one commercial is difficult to sell a spread range; in this case of organization, the commercials are specialized by products family: (Annex A1). The specialization of the sale force by product is judicious when the products are technically complexes, heterogeneous… It existed also a third mode of organization of sale force: the organization by type of client. * Structure by client or by market All clients are not the same needs, the same profiles. Some generate important sales but not frequently. Some are few orders but offers important perspectives of turnover. And some are a few quantities to order but it is regular. So, the firm sets up an organization in which the commercials are specialized by types of client. The commercial managing a category of client’s needs particular doing- knowledge like administration, local’s communities, key accounts, and purchasing centre… The clients can be classified by sector of activity, the size, the volume of purchasing… Such structure enables the representative to know well the needs of clients, because they are specialized and not polyvalent. This structure presents several advantages and disadvantages: Organization by client For the firm Advantages Best knowledge of decisional process of the client Best adaptation on exigencies of price and service Disadvantages Difficulty of recruitment of collaborators strategically important for the firm Heavy responsible ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 17 * Structure by activity or by missions The conclusion of sale cycle needs to different phases: conquest of clients, negotiation of contract, and loyalty. In this case, certain commercials will, for example, take in charge the proposition of new clients (named “hunters”), others ones of the negotiation and of the price of orders (named “grower”), others specialized on the loyalty. Nevertheless, the firm is not linked to theses 4 types of organization and can combine them on the best efficacy. * Mix structure When the firm is selling a diver range of products for a lot of types of clients in the spread geographical area, the firm structures his sale force in combining several modes of organization. In this case, the representatives can be specialised by couple of sector/ product, sector/ client, client/ product, or by triad sector/ product/ client. After the choice effectuated on the sale force between these different models, the phase the most delicate and the most important is the establishment of sales sectors. 5) The establishment of sectors of sale: To obtain a best efficacy of the sale force, it is essential to determinate how many commercials are necessary for the commercial activity and then to elaborate a share pertinent of sectors. * Size of sale force After having chosen his strategy and his structure, the firm can fix the size of the sale force. It constitutes an advantage among of the most productive and also the most expensive. However, the definition of the size of sale force is not the only criterion of cost. The principle wants that the choice of commercial number find a general equilibrium between: - Too much commercials: the profitability of commercials action will be questioned and the cost by commercial increases face on a low potential of turnover. - Few commercials: there is a risk of lose on part of market To establish the size of a sale force, an approach is privileged: ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 18 Approach founded on charge of work Approach founded on the manager’s efficiency … * Share and Repartition of sectors: The characteristics of sale sectors: - The sector of sale: Territory affected to one commercial by his firm to commercialise their products. The territory must be clearly defined geographically; in term of potential of sale, of type of clients visited, of products to commercialise. - The region of sale: It represents the territory on which operate several salespersons under a responsibility of commercial responsible or chef of region…An area regroups several sectors. * The qualities of a good sector: With particularities of the area, of products, clients, the commercial responsible will be attentive to delimitate the equilibrium sectors: - Equal in potential: assure the equality between commercials - Reasonable size: allows regular visits of clients and limits the costs of travel - Sufficient size: assures the productivity and the motivated revenues - Well defined and attributed to one commercial: enables on client to identify their interlocutor and to avoid the conflicts between commercials * The criteria of sharing sectors Two criteria are important: - Geographic criteria: Principles: The sharing of territory is done in function of geographic barriers: limits of area, natural obstacles… Advantages: the sectors are clearly defined for commercials Limits: The risk to have no equal sectors in potential on turnover, and so risk of feeling of no equality between salespersons and possible conflicts. - Potential criteria of market: Principles: The potential will be measured by the analysis of prospecting/clients (who, how much) and measured by the analysis of competitors (who, how much, part of market?) Advantages: allows to orient better the work of commercials on theirs sectors, and to share equally the charge of work. Limits: criterion and organization which needs a frequent re actualisation because there can have wastage of potential in certain sector. ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 19 To combine different criteria on the best manner is difficult. In the reality, this combination should be done on different levels: For a firm, which begins his business on the new territory, his proprietary is the geographic criterion. The firm will exercise his prospecting in the proximity space of his place of implantation and will determinate his sectors by department or by others area When a firm is yet presented on a sale territory; one of their principal preoccupations will be to know if it covers this territory of optimal manner. If it is not the case, it will share again the sectors, in function of potential, which is not exploited sufficient. So it is most important than geographical considerations. 6) Geodis organisation market of agency: Geodis shares their offers in multi job like overseas, express, logistics solution…so this firm organizes the segmentation by services. Also they share on the same important clients named “key account”. The politics is different, depends on the activity of client. They manage them by territories and services but the client is attached on the same commercial that has success to bring this client on his business. For example, a client who has a business with our service (overseas in air and sea shipment) will have also a business in Europe for road transport. So we will advice us to manage directly with our other branch Calberson. For sure, this client keeps a strong link on our service. For his client is better to deal directly and have no more margins. Also, it enables to work in collaboration with all multi jobs and know well the market and the potential client for our specific job. Also, Geodis focus some of our sales efforts on selected vertical markets, like: aviation, marine, industrial, automotive, oil & gas, hi tech, retail, pharmaceutical and healthcare. In Marseille agency, in overseas activity, there are 3 types of clients: key accounts (compared to PARETO theory, theirs clients represent 80% of the turnover), “shared” clients (with the network) and irregular clients. There are 3 commercials, two seniors (including the manager) and one junior. Currently, they are shared the clients by area. Also, both seniors are more or less specialised by market lines one of them manages clients working in automotive, the other one is more specialised in essential oil transportation with hazardous products…And for a junior, even if the segmentation by territory is done, his strategy is to prospect and develop the SME, the territory segmentation is not settled. The scale of sale service is more focused on competencies rather than on hierarchical approach. That’s why is it important to have a sale force management to improve and develop the business. For that I am explaining the sale management process, which is divided into two main components: planning, Performance evaluation and Control. These components have to be seen as a continuous and interdependent process: ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 20 7) Sale force management * Planning: All planning must begin by forecasting market demand. The level of sale a company can except can only be derived from an analysis of the market as a whole: the achievable sales potential must be compatible with the company’s goals, capabilities and resources. The budgeting provides a tool with which a company plans for profits by anticipating revenue and expenditure in order to enhance predictability: Management attempts to guide operations to a given level of profit on a certain volume of operations A budget forces planners to confront reality: Can the strategic and operational plans be financially quantified? Can the plan be profitable realized? If expenses are kept within planned levels, final operations will come out as planned. * Quotas Sales quotas translate planning activities into work planning goals and assignments. 3 general approaches are usually used to set quotas: 1. Quotas are set in conjunction with territorial potential 2. Quotas are set in relation to the company’s forecast or market potential estimate for the total market. Territorial estimates have not been prepared. 3. Quotas are set independent of any consideration of sales or market potentials: - On the basis of past sales - By “executive judgment” alone - In relation to compensation plan - By sales people themselves Ensuring that a quota plan is realistically attainable, objectively accurate, flexible and fair will increase effectiveness, as well as ensuring its acceptance by the sales force. The structure for sales force incentives contains financial incentives, subdivided into direct payment such as company- financed insurance, and non-financial compensation, such as the opportunity to advance in the job or other benefits. A firm must determine both the level and the method of paying its sales force. The job description should serve as the starting point for designing a sales compensation plan: what services and abilities is the company paying for? Although plans will be different for individual firms, four broad objectives should be common to all plans: - Attract and keep competent sales people - Control sales people’s activities ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 21 - Correlate rewards with results Ensure proper treatment of customers * Order processing The following information is vital for accurate and timely order fulfilment: - Order number, delivery date and address - Product name and number, quantity and unit price of product - Customer number, address and industry branch - Sales conditions and credits - Seller and sales territory - Means of transport, freight costs - Special instructions, where necessary A company’s order processing system should seek to avoid unnecessary written documents and repetition of the same information processing activities. Moreover, it should achieve a rapid flow of information to the point from which the flow of goods is realized. All stages in order processing must be reviewed to ensure accurate and timely order fulfilment. Order transmission includes several steps: The transmission of an order depends largely on the methods of order placement employed. A typical method is to fill out standardized, pre printed forms with the customer. Long term, repeat customers may be supplied with pre printed order forms, on which only the number of units ordered needs to be filled out. Not using or altering order forms necessitates an extra transcription step. This creates additional processing costs and an additional potential source of errors. Once received, the transmitted order must be adapted to the selling company’s internal requirements. Here preparation means checking for missing or incomplete information, checking price conditions, delivery modes and the customer’s paying ability. Preparation also comprise planning concerning the logistics system: it is necessary to check whether the requested product is available in stock Within the transcription, order information is used to prepare order confirmation and internal processing documents, including order delivery and shipping papers. The preparation and transcription of the order is followed by the selection of the required units in the warehouse and their shipment. Selection includes the organization of products for shipment according to order information (product number, number of units, delivery date…) contained in the transcribe document. These documents can be supplemented with additional information after selection, such as weight, positioning and packaging. Shipping comprises the completion of shipping papers with freight, transport and time data, and the subsequent loading and transport of products triggered by this step. Invoicing may be completed either after shipment preparation or in parallel with preparations for shipping. The most important factors here are that the invoice should reflect the correct type and number of units selected and shipped, so that orders may proceed without delay to the warehouse, and that the time required for the paperwork should not be so long as to delay ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 22 shipment. Sending the invoice along with the shipping goods saves time and postage costs. Transport can be done either by the company’s transport system or can be subcontracted to a haulage firm. The time required for order processing is a significant portion of delivery cycle time. Thus rationalization of order transmission and order processing can provide substantial opportunities to reduce costs and delivery times. We can show on annex 1 the supply chain of operation of our agency. II SWOT ANALYSIS After describing the theories part about the structure of sale management, I present you the SWOT analysis of Geodis Overseas and also explain the reasons and consequences of the merging this year with other integrators logistics: STRENGHTS - Network geographical enlarge (more than 223 countries) Manage goods and information flows (especially DOM TOM, Asia…) Operational and Financial Synergy Global offers Global strategic vision One of first to work with the French army Integrated tools Development 100 desks of customs in France: on of biggest Geodis: target of SME ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI WEAKNESSES - - Culture firm: French based Difficult of certain countries (organization, time of reply…): Spain, Brazil and Italia Surcharge of work for express service (1st position in France) Miss of worldwide HUB in certain capitals Need of an important investment (example: new service gas and oil in local agency) Purchasing department poor in local agency French management Personal training Poor Quality management Productivity: lost of time in 23 intern OPPORTUNITIES THREATS * Merging with TNT allows to have another culture firm (Dutch) & Also new markets (more territories) More competitive/ more agencies * Top of 10 integrator logistics * Market growth in our area * Conquest of part of market * Large tools investment: E service, cross selling, e tools (CRM: customer reporting manager / freight planner / freight monitor) * Training enhancement * TNT products: offer of globalise services * Organisation is more complex because the agency develops more services (global offers) * Centralisation sales force * More presence (agencies) in South America with the emerging of Rohlde & Field * Well known and better image with the name Geodis Wilson * Development of purchasing team * More industrial projects * With WILSON, their target is GE * Creation of new branch: GGS (Geodis global solutions): key accounts with multi job offers * Head quarter: Amsterdam with TNT managers * Market line more concentrated (luxurious and retails retired) * Difficult to manage a complex organisational (locals) * Size more and more critical by the higher growth * Merging process (intercultural, senior management competition, major clients management redundancies) * Disinter mediation 1) Current situation: strengths and weaknesses ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 24 Currently, Geodis has already an enlarge network with a worldwide presence in 223 countries. Geodis is specialized in certain offers. Well known for the express courier, and in overseas well developed for DOM TOM, Asia traffic. Geodis has all aspects of multi international firm with an operational and financial synergy. The global strategy vision is common for each agency. Adapted faces on the competitors, integrated tools allow a better reactivity (for the customs, operational, and sales: tools quotation for example). Also, Geodis has concentrated his target on SME and not allowed to be on the top of worldwide competitors. The management is based on French culture. Also the intercultural values are difficult to be harmonized, essentially without a really quality management. For example for a personal training, the induction on the firm is done by his self. Some countries will need to be more organized to be cost effective like Spain, Italia and Brazil agencies. There is a miss of worldwide HUB. Also, the productivity (with a lost of time in certain processes in intern) is faulty. Also, a lack of strong purchasing team in Marseille agency doesn’t help to be more competitive. The creation of a gas and oil service on 2007 has involved an important investment. 2) Opportunities and threats With this new merging with TNT, Geodis will know lot of change: new dimensions, technologies and commitments. In first, the change of culture value which becomes Dutch culture. And a head quarter is situated in Amsterdam. This merge allows having growth market and more presence on worldwide. Geodis Wilson is on top of 10’competitors worldwide. With a stronger presence in South Africa, the presence is enlarging. The image of Geodis Wilson knows a success, by this marketing name. Complementarily, Wilson is more based on the big firms, where the business is more important. With this fusion, in January the commercial management and process will change. The TNT directors will manage the supervision. By this fact, the reorganisation takes a time to set up in all agencies and be accepted by employees and managers. The size is growing and is more complex to manage all process to harmonize all of them. A new tool of process will be applied (to allow obtaining a better harmonization to have a centralized system of control). All quantitative and qualitative information are accessible by all commercial services (each agency). Also, new training for commercial and sale assistant will be proposed in 2008. Now our HUB will be also an operational centre and not profit centre. So, the price will be cheaper and allows us to be more competitive on this market. The traffic between Asia and America is poor, and we lost a part of market. So the new objective is to develop this trade. Also, the merging with Rohlde & Field allows to develop our business in others territories. New e services will be in place and allows efficiency work and useful by the clients who want to manage nearly their traffic. There are 3 important e- services integrated on 3 levels: freight planer, freight monitor and e management. Also, with the growing market, Geodis Marseille offers more services. This organisation is more complex to manage. Also, our agency wants to growth their part of market. For that, it is interesting to understand the need to develop the sale force by others ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 25 commercials. (It is for these principals’ reasons; I treat this problematic about recruitment involving competences analysis, formations…) Also, R&L merging with Geodis Wilson has allowed lots of positive change. His merging begins on 28 Sept 2007 Geodis S.A signed the Sale and Purchase Agreement (SPA) to acquire Rohde & Liesenfeld (R&L), a German-based international transport logistics company. The completion of the deal is expected in January 2008. Together with R&L, Geodis Wilson will take new positions in growth markets like South Africa, where R&L is a market leader and Latin America, where there is a perfect geographic match with the Geodis Wilson network. There is reinforcement in strategic zones: - Germany, - Largest economy in Europe - The gateway to Eastern Europe - Arabic Gulf (U.A.E, Qatar, Kuwait) - Australia - Enhance our current Industrial Projects offer Also, this merging with R&L and Wilson has enabled to change the system of control. For example, the sale service has been managed under a decentralization system under Geodis Overseas, and will be now managed under a centralized system. I will develop in this below paragraph the advantages and limits of each type of control. Also, with this merging and the evolution on the global market, I would like to develop the two systems of control existing. 3) System of control centralized and decentralized The field of decisions and initiatives of commercials to accomplish theirs tasks more or less important in function on the decision of the firm to make in place centralized or decentralized controls. (Annex3). Under a system of control higher centralized, the direction tries to exercise a direct influence on activities or results of commercials. Consequently, the direction chooses to give the commercials instructions and objectives in order to limit at its maximum the field of decisions. The centralized decision is essentially based on direct authority, which the direction exercises on the commercials. For example, the commercial direction can give each commercial a clear objective of sale action to reach each client. At the extremely, in a system of decentralized control, the firm offers a determinate “contract” in sort of when the commercial has a comportment to satisfy his proper interests, he optimises in the same time the objectives of the firm. In this case, the contract has no precise objectives: for example, the contract offers commissions on the brut margins which involve the commercial, desiring to maximize his commissions, to allocate his efforts in the way of a strategy of gain for the firm… ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 26 In this case, the control is not exercise by the way of direct authority, but indirectly: allocations decisions of his effort are entirely under his responsibility. He keeps a decisional field largest. The direction checks only at the beginning if the commercial is susceptible to take decisions appropriated to the firm, in the cadre of instructions given by the direction to the commercial. That’s why a firm is questioned to choose a system of control more or less centralized or decentralized, where resides essentially in the quality of knowledge’s base and in the quality of the dashboard. Like this, for a firm will be susceptible to choose a levier of centralized system (for example sales detailed quota, or presentation of standardized sale), the firm will have to a good knowledge functions of reply (to determinate in this example the quota correspondent of maximum efforts that one commercial can produce). The firm will be also susceptible to choose a control based on comportments or results, depends on ratio quality/ costs of dashboard, which is the most favourable. Contrary, for a firm will be choosing a levier of decentralized system (for example different commissions on the sale of diverse product lines), the firm will have to a good knowledge of reactions of commercials on elements of control chosen (in this case, commercials search to maximize their commissions). Nevertheless, by the multitude of objectives followed by the management, it is possible that the elements of control constituting the dashboard and the elements playing on the role of control’s levier will be based on comportments and on results. This is a system of hybrids control. To drive efficacy the sale force, a commercial director will ideally combine different levels of control constitute by 3 fundamentals characteristics of drive systems: systems of control centralized or decentralized, systems based on elements of control on the quality but also on the quality of commercials efforts, and/ or on the results or on the comportments. (Annex 3 shows if the control is concentrated on results or on behaviours). That’s why it is susceptible to use several systems of control with different characteristics. For example, a firm will be use a system of sale’s quota (control centralized based on objective result) and impose also their commercials the useful of presentation of sale standardized (a control centralized on the comportment evaluated subjectively) for a better control. And, characterize the systems of control by their 3 dimensions can allow the commercial direction to identify clearly the necessary information to elaborate a drive system efficient. The possibility to obtain this information, all procedures involving to do it, and all costs, has to constitute important considerations during the elaboration of drive system of the sale force. For example, plan of sale quota is used, even if the direction has no lot of information on the functions of reply on territories face to the efforts of each commercial. That’s why the plans loose, because the commercial that get more information in this domain than the direction, can make in cause the link funded on sale quota which there are allowed. (Annex 4). To drive efficacy a sale force, the firm must necessary harmonize a control of systems which it disposes: sale quota, presentation of sale standardized, commissions on sales, remunerations… Currently, Geodis has a decentralization system with a sale quota, a presentation of sale standardized, remuneration…The drive system, complex to manage, is often reviewed to be actualised on the context (often in development and change). That’s why with new merging, ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 27 managers think about the new elaboration of control system, may be more centralized for the sale service. After presenting the SWOT analysis, I will define the selling functions and his role: III DEFINITION FUNCTIONS 1) Definition of selling Selling plays a vital role in the economic system, it can: - Introduce innovation to markets - Facilitate consumption - Convey information - Act as a communication channel - Help solve customer’s problem Selling is a marketing task that usually involves face-to-face contact with a customer. Unlike other component of the marketing mix, such an advertising and promotion, personto-person selling means direct interaction between buyer and seller. This two-way communication means that the seller can identify the buyer’s specific need and tailor the sale presentation in the light of his knowledge. Thus, effective sales force management can help the firm to make the necessary quantum leap from the current production- based management to a customer- value based management by providing: - A means of increasing customer awareness of firms’ product - A tool of discovering and reacting to customers’ real needs - An important communication channel between the firm and the market - A vital of information for marketing and derivative product development The current trend of increasing competition means that companies must face up to seven challenges where sells are concerned: - The necessity to have a good idea of the customer’s business - The ability to put together groups of products to construct a business solution - The ability to sell to educated buyers - The need to master the art of consultative selling - The ability to add value trough service - The need to capitalize on the advantages their own products have over the competition - The ability to manage a team- based selling approach 2) Schmitt & Crozier In the “Manuel of firm organization”, SCHMITT establish a list of all functions in the firm but he proposed a first definition: sale function. Hazardous? No. First of operational function ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 28 in the organization, the sale function “ works toward directly at the realisation of products” in collaboration with production, logistics, research and development, and quality function. This function regroups “strategy, intuition, and state of permanent waking”, it is the only to analyse and detect the needs of market and by which the returns of the firm comes back. Daily, the firm spends a part of capital in production, research and development, communication… to create a turnover, the firm have to “sell”, obtain with their clients a compensation of their expenses. But nothing guarantees the perenity of the stability between offers products and the remuneration found on the market. The demand evolves and the competitors don’t stay inactive. The firm has to reply to theirs evolutions, but the commercials have to bring information to the firm because he keeps close to both systems (clients and firm). Not totally integrant on the environment, not be along totally at his organisation, the commercial is a “secant marginal” (CROZIER And SCHMITT “The actor and the system”). By his function, he has an intermediary role, of contact, of coordination between two environments, specially the organisation in which he is fasted and the market in which he develops himself. But, against the current of his evolution, through in several different directions of their systems, he is individual. He is the point of cross indispensable to the stability of the firm. “Any organisation can’t exist without to establish a relation with his environment. Because it depends doubly: one part to obtain materials and humans resources necessary of the operating and other part to sell his product”. This environment is a zone of doubt and of perturbation on the intern process and people able to control this uncertainly zone and by their capital of relations benefits of a considerable power in this one. The commercial owns of a power of “marginal secant” and becomes, consequently, the intermediary indispensable of both systems, a relay between the organisation and his customers. He has this situation of blackmail no negligible on the organisation that uses it to obtain by this one a lot of advantages in return. In others terms, like all members of one organisation, “commercials will always deal their capacity to reduce the uncertainty”. 3) Profile: The commercial “Motivate, dynamic, creative, autonomous, good dealer, with the sense of relation, with formation BAC +2 to +5, in possession of a professional experience on the sale function”, this is a typical description of the employment bid in the commercial function. But describe exactly the type of profile of a good commercial is not really simple. The qualities requested depend on sector of service on the firm and on the statue of the commercial. Consequently, a profile’s type of commercial exists really? Some qualities requested by the professional are the same for all sectors. Also, the qualities requested are developed during the professional life, with experience. But others qualities are indispensable on the origin and can’t be acquired: - The resistance of the stress and moral: the commercial will be in good wealth - The dynamism: activity and enthusiasm - The combatively; the resistance of nervous tensions and of the failure is necessary for the people who the results are generally gone back - The curiosity: essential quality to have an abundant knowledge and a best understanding of people ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 29 - The general culture: necessity I n the life of commercial. He has to impregnate with mentalities, habitudes of people who he is communicated The adaptability: the environment is fluctuant, the communicators change, the commercial must be adaptable of all types of situation The autonomy: more and more, the firms request their commercials to be autonomous, independent, so they can have a capacity if reactivity on their territories The listening: he has to listen the clients, of their needs for convince better, He has to follow up, reformulate to find a best solution to the problem of the client (persuasion force, capacity of communication, contact with client) The sense of organisation and management: the rigor is necessary (respect of engagement.) The sense of work in equips: the commercial don’t work alone, and have to take a conscience that the work in equip is necessary. The crossing of their qualities is not evident, the products and clients being of nature and temper different, the veritable qualities of the job, the real knowledge is to be discover itself on the site. So, the commercial has to known well the product: having a technical knowledge, learn to decode the market in other terms to know the tendencies, the choices of clients to anticipate their needs. It is necessary to cultivate an ethic in the job, to avoid the sale force. A profile type of good commercial is generally young, and has a good experience of the site. 4) His function: * Presentation The salesman presents the products or services and convinces the prospect about its advantages. It should focus on customer benefits rather than actually on product feature. Many firms have been successful in using prepared sales presentations, which provide the salesman with a step-by-step plan for a sales contact. The additional use of demonstration allows the customer to see the product in operation and involves the customer in the selling process. They can be a means for moving the customer towards a purchase. * Objections: Prospects raise objections in nearly every presentation. The secret of dealing with objections lies in handling the emotional aspects. It is obviously necessary to have a substantial knowledge of product and of the prospect’s need. To minimize the risks inherent to the emotional aspect, the salesperson has to listen without interrupting and should employ the “agree- and- counter” technique. Interruption denies buyers the kind of respect they are entitled to receive and may lead to a misunderstanding of the real substance behind the objection. The buyer will appreciate the fact that the salesperson is taking the problem seriously and the salesperson will gain by having a clear and full understanding of what the problem really is. The “agree- and-counter” technique means that the salesperson agrees with ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 30 the buyer’s viewpoint and then puts forward an alternative argument. The objective is to create a climate of agreement rather than of conflict, and to show clearly that the salesperson respects the buyer’s opinion, thus avoiding loss of face. *Conclusion a sale Throughout the selling process, the salesman has one goal in mind: to secure the order. The key of concluding a sale is to look for specific verbal buying signals. These can be statements by buyers giving indication on their interest in buying, such as: “That looks fine”, “When could the product be delivered? CHAPTER III I FUNCTION ANALYSIS METHOD At this point, I would like to start to introduce a dedicated method of function analysis in order to go deeper in this organization. This model has been developed by Solmer (ArcelorMittal) twenty years ago and is still used in a large range of Companies. First of all the concept of competency has to be clarified. We can find in the literature a lot of definitions. I suggest for that an operational definition builded- up through Prahalad & Hamel and Le Botterf. “The competence is the capacity to adapt his knowledge and skills in any context. This adaptative process is based on the abilities.” ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 31 This definition could be described with the following scheme: BEING COMPETENT Operating activities In a dedicated work situation (context) Knowledge requirements Adaptability requirements Necessary and sufficient knowledge and skills to face each function’s activities Four kinds of abilities: Reasoning (problem solving) Comm unic ati on (ha ndle relationship) Organisation (timemanagement, random treatment) - Autonomy (control management)( To answer to function’s aims (adding value) The most adaptative criteria are shown on the figure. They are not exhaustive but are necessarily critical. ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 32 The proposed methodology is based on a cybernetic system. Basically a function is considered as an information treatment “black box”. The following figure shows the process: FUNCTION ANALYSIS CYBERNETIC SHEMA Function requires: To get upstream information to act i.e.: - Supervisor giving an instruction Criteria internal/ external communication To treat information Criteria reasoning/ treatment To have knowledge/ skills: To detect and treat upstream information Criteria knowledge skills To communicate necessary downstream information to enable others to acts Criteria internal/ external communication To organise and manage time: To quick reply to short issues Criteria time organisation To self control the quality of his work and to evaluate it Criteria autonomy / responsibility ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 33 Six discriminated criteria related to our definition are taken in account. The associated definitions are: 1- SA: Knowledge and Skills This first criteria is the most known. It is obvious that knowledge and skills are requested to perform an activity. The complexity is linked with the depth of knowing and the various area of knowing. Five abilities are developed for this model: they cannot be arbitrary and change with evaluator’s fantasy. Thus "home criteria” with strong morals are not acceptable, because they are not justifiable with facts. The employee does not recognize them. The only indisputable criteria are those that apply to everyone, whatever the work situations, occupations, business organizations. However, for several years, those criteria have been validated for small business. They are "invariant" and have the characteristics of being: - Undisputed therefore legitimate, - Observable from facts, so recognized by the evaluator, as assessed by. The employee. 2 – RT: reasoning and information processing. Each activity, in each function, from the simplest to the most complex, requires reasoning ability to solve the kinds of problems related to the activity. This may be elementary level (comparison of standards) to the most complex (combination of diagnoses). In addition, these reasoning levels should not be confused with the levels of skills. 3 – OG: time management ability Any work, any activity takes place in a space-time, which is determined by the requirements of the activity. Indicators are constraints of time and random issues. Again, we note that this criterion cannot be disputed as well and is one of the components that determine the employee adaptation in his office or at his workstation. Each activity is necessarily related to a level of demand on this criterion, the more "simple": activities in normal times, without random issues up to activities with high demands, in real time, with large random issues. 4; 5 – RI; RE: ability to communicate (internal and external to the company). Any activity requires communication and therefore relations upstream and downstream of the activity, with internal and external interlocutors. Of course, the requirements will vary depending on the nature of the activity from implementation of the simplest (exchange of information with peers, usual type of work colleagues) to the most complex (steering relationship or negotiation with interlocutors variables or unusual). Faced to the current requirements, the damage of "bad communicators" is particularly heavy within the company. (For example, damage to the efficiency, confidence and motivation of staff, the company's image, etc). ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 34 6 –AR: autonomy and responsibility ability Autonomy in an activity is defined by the requirement for self-delegation to the holder of the activity. Being "autonomous" means to assume the quality obligation to in our activities, which means to assess the consequences of any errors. In fact, according to the organization and activity, the human operator is more or less controlled by the company and his management. Determining the level of demand in this criterion for each activity means to measure the "freedom to act" assigned to the holder. This approach helps to objectify the concept of "responsibility" and avoid too arbitrary notions of "trust", "professionalism", and “serious" in the workplace, which are known to be heavily influenced by the system value or prejudices of the evaluator. For each criterion a four steps scale has been developed. This scale is grading the level of requirements for each major activity of a function. The scales are presented in annex #6. Activities are the major aims of the function or in other words the permanent objectives. I have not developed the associated tasks. They don’t bring any additional information to be used in our analysis. II GEODIS MARSEILLE FUNCTIONS ANALYSIS The Agency has job descriptions, but they are limited to tasks and do not hi-light the activities and the responsibilities. Four functions have been designed and analysed thought this methodology. The presentation is moving from Assistant to Manager in a continuing upgrading process. ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 35 Function Analysis: Sales Assistant Activities N° Level of Competencies Requirements N° SA RT OG RI RE AR Quotation and follow-up 1 2 2 3 2 2 2 Transfer Orders to Operations 2 1 1 2 2 1 2 Design and review of the SOP and Company broadcasting 3 1 1 1 2 1 1 Collecting and maintaining data for client and prospect 4 1 1 1 1 1 1 Phoning prospecting 5 1 2 1 1 2 1 Sales Leads broadcating and records 6 1 1 1 2 1 1 Orientate customer request throuth the global organization and inform on changes (pricing, economics and social 7 events 1 ….) 1 2 2 1 1 8 9 10 Function Profle Niv 4 3+ 32+ 21 Knowledge and Skills Incotherm Geography Transport Operations English SA RT OG RI RE AR x x x x x x VA 13 9 7 6 8 7 8 0 0 0 Function Analysis: Junior Commercial Activities N° 1 Propect small and medium size local companies _ Local Market analizis _ direct prospection _ Dalight 2 Direct Sales to identifed companies _ tecnical concelling _ building and close-up proposition _ transfer instructions to opretaions 3 Develop curent small and medium size clients _ additional services _ building-up specifc procedures (external and internal) 4 Steady fow and follow-up 5 Purchasing - dedicated purchase complementing the National Purchasing Manager N° 1 2 3 4 5 6 7 8 9 10 Level of Competencies Requirements SA RT OG RI RE AR 2 2 1 2 2 2 2 2 2 2 3 2 2 3 1 2 3 2 2 2 2 2 2 2 2 2 2 1 3 2 VA 11 13 13 12 12 0 0 0 0 0 Function Profle Niv 4 3+ 32+ 21 SA RT OG RI X X X X RE AR X X Knowledge of Air and Sea Freight Sales Knowledge ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 37 Function Analysis: Senior Commercial Activities N° 1 Propect local companies _ Local Market analizis _ direct prospection _ invitation to tender ???? _ Dalight 2 Direct Sales to identifed companies _ tecnical concelling _ building and close-up proposition _ transfer instructions to opretaions 3 Develop curent clients _ additional services _ building-up specifc procedures (external and internal) 4 Steady fow and follow-up 5 Purchasing - dedicated purchase complementing the National Purchasing Manager N° 1 2 3 4 5 6 7 8 9 10 Level of Competencies Requirements SA RT OG RI RE AR 2 2 1 2 2 2 2 3 2 2 3 3 2 3 1 2 3 3 2 2 2 2 2 2 2 2 2 1 3 2 VA 11 15 14 12 12 0 0 0 0 0 Function Profle Niv 4 3+ 32+ 21 SA RT OG RI RE AR X X X X X X Knowledge and Skills Knowledge of Air and Sea Freight Sales Knowledge ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 38 Function Analysis: Sales Regional Manager Activities N° Departement Management _ objectives Midlle Term _ Sales Employees Management _ reporting (SOP, RO, SL) Sales _ Direct Sales to Major Local Clients _ Optimize wordwilde Sales (inter-regional) Purchasing - dedicated purchase complementing the National Purchasing Manager N° 1 2 3 4 5 6 7 8 9 10 Level of Competencies Requirements SA RT OG RI RE 2 3 4 3 2 AR 3 2_3 3 4 2 4 3 2 2 2 1 3 2 RI RE X AR VA 17 0 0 0 0 0 16 0 0 12 Function Profle Niv 4 3+ 32+ 21 SA RT OG X X X X X Knowledge and Skills Knowledge of Air and Sea Freight Sales Knowledge Management Skills ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 39 For each function, I focus on the following results: - The most important activities in terms of adding value - And the most requested abilities. For the Assistant Function, the most important activity is the quotation. This result shows that the job is more focused on the logistic technical aspects. The most requested ability is the OG. The assistant has to deal with two requirements: - Time management for his own work and for his bosses, - Facing the various random For the Junior Function, the most important activities are direct sales to identify companies and to develop small and medium size clients. The most requested abilities are the reasoning ability (RT) and the negotiation ability (RE) For the Senior Function, the most important activities are the same as the junior position with larger clients. The most required abilities are RE (as Junior) and a broad autonomy (AR). For the Manager Function, the most important activities are the Department management and Sales for major local clients. The most required abilities are autonomy / responsibility and the team time management. I have tried to figure out a progression ladder. One development hypothesis I would detail in Chapter 3 is the opportunity to get a continuous progression for new hired people. Progression Ladder Level SA RT 4 OG RI SRM 3+ SRM 2+ SC-JC 2- ASS SC-JC SC ASS SRM SC-JC SC-JC-ASS ASS AR SRM SRM 3- RE SRM-SC JC JC ASS ASS 1 This analysis shows that: necessarily abilities have to be detected at any level in order to success in this scheme SA – The knowledge required is continuous. The Assistant needs to have a logistics background. Junior and Senior need to get commercial knowledge and skills. At the end the Manager has to be seriously train in people management. RT – There is a huge step between Assistant and Commercial positions. Those positions need the ability to build a hypothetical deductive problem solving process. OG – The assistant needs to face more random situations. The required ability is higher than required for commercial positions. The manager has to drive the whole time management of his team. RI – The expected ability is the same for Assistant and Commercial positions. For the Manager this ability is key to manage the team. RE – There is a huge step between Assistant and Commercial positions. The ability required is to be able to negotiate. AR – There is a single progression between assistant and junior. But there is a serious step between Junior and Senior (and Manager). ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 41 We see that is we want to use the assistant position as first step developing commercial resources; it is necessary to make sure that candidates have the potential specifically about two abilities: - RT: being able to construct an hypothetic – deductive process, - RE: being able to negotiate. On the same way, there is a huge discrepancy on the AR (autonomy criteria) for moving from junior to senior positions. This ability has to be detected on candidate’s potential. The following chapter will introduce this recruitment hypothesis and the associated development process and other alternatives in order to provide Geodis Marseille with several recommendations. III THEORIES COMPETENCES /MOTIVATION 1) Their expectations The choice of this function is not innocent. But what they search trough this function? To be commercial, requires their own skills and own qualities. But it is people in search of grateful perpetually. People are affective and they need to be reassured. They need to be reassured that they are the best actor and managers are really integrating this fact. They have to take in charge the commercials: “A commercial has needed of consideration because he is always in search (unconscious) of compliments and support. This affective people are needed to be reassured”. In the second time, the commercial searches the turnover. Theirs objectives are a daily stress, which they accept it without restraints. That’s why they want to do more. The reward? His pay could double the next month. The remuneration is a principal criterion of people who has chosen this carrier. Composed of fix and variable pay, the pay is a resource of motivation. The managers play with this pay to keep their best elements in the firm. This function enables to be mobile. Most of time, they are outside of the firm, they can manage/spend their time like they want. The only restriction is to reach their objective involving a stress and consequently an energy source. Be in other environment of the firm allows to develop their knowledge and consequently to be recognize by the most of people. But, the collaborators of the firm meet them few time and reproach to not consider their relation in intra firm. Several profiles types of commercials can dress us. So some authors are studied this question. So, 4 psychological profiles exist. The firm has to choose the best strategy. From recruitment to remain, lot of complicated steps to realize: ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 42 In the objective to optimise the choice of commercial, the firm has to realize a recruitment depends on theirs needs and of theses candidates. He is essential to operate a follow up; evaluations and a process of remain indispensable to success. Today, methods of recruitment are evolved and some firm externalise this function of human resources or to use new technical like a personality test or graphology… But all of theses technical, olds or news, don’t involve enough the turnover important at the commercial function. Advantage or disadvantage depends on firm; the turnover will be limited by taking in charge a commercial in upstream or downstream of the recruitment process. 2) Satisfaction client: The satisfaction of commercial trough their job is another factor linked to the rotation of the sales force. Unhappily commercial will be less motivated (so less efficient), that’s why they try generally to leave their job to find a more satisfy job. The satisfaction at work presents several aspects and depends directly of certain decisions and characteristics of the firm. So, a commercial will be more or less satisfied depends on sales politics, on style of supervision and on the organization culture. Their factors of satisfaction trough their work and the most pertinent concern the promotions, formations and remuneration, establishment of quota and control. The link between the rotation and the intrinsic satisfactions (satisfaction accomplished trough the work) and extrinsic satisfaction (satisfaction trough awards by the direction) exists. Several studies are examined the impact of the others factors on the turnover of the sales force by the effect of the satisfaction trough their work. For example, we have found that the stress at work (ambiguity, surcharges of work…) is linked to the rotation. 3) Performance at work: A level of commercial’s performance will be also an impact on the rate of rotation: efficient commercials are more susceptible to give up because they have offering often a promotion in the firm or in others firms. The dysfunctional rotation will be the result of voluntary departure of commercials the most efficient. Also, the firm will start the process of departure by giving up commercials that are not efficient. It is necessary to set on the performance and on the satisfaction of collaborators to keep us in the firm. Of this implication depends the mobilization of people trough their work and identification to their professional role. The performance is evaluated on procedures and rules on the organization, and a feedback is given at the individual actor by a system of award and sanction. An actor, who does his own evaluation of performance, brings face to face with the organizational evaluation. So, emerges on this situation a satisfaction. The system is on the beginning closed out because this satisfaction will determinate a motivation and future performance. (Annex 5) It is necessary for the firm to act on the different concepts of the schema of the motivation: ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 43 4) The satisfaction: Being used 50 years by the psychological worker, this concept signifies: “an emotional state positive resulting on the evaluation done by the people at work or by their work experiences”. The satisfaction corresponds to an emotional state face at work, state resulting on the realization of conscious and unconscious expectations trough the work. Their expectations will be of different nature: needs, desires will of group conformity… The fact to satisfy their needs or desires is not a factor to act, like prejudge “satisfied workers who work well”. Yes, the dissatisfaction is not propitious to commitment on work and there is a really link of causality. Also, we know satisfied workers and being not really dynamic: they are happy to produce only the minimum required. 5) The motivation: This term is used to indicate the degree of commitment of collaborator in the realization of one proposed action by one tier (generally the organization). The motivation will be depend on positively of satisfaction’s sentiment of worker during the realization of this action. It will depend also on a degree of adhesion (or implication) on the organization (firm, equip). But the motivation can’t be identified by the satisfaction or implication. 6) The implication: This concept concerns the link between the individual and with not a particular work (motivation), or with expected gratifications (satisfaction) but with a group of appurtenance. So there is a distinction between the term of implication significant of a relation between the individual and the organization and the term commitment significant the link individual/ occupied employ. We can estimate the implication constitutes a sort of generalization, the commitment setting the global actions done by the worker to execute his employ; moreover the motivation concerns the degree of commitment in a particular action. Also, we can define the commitment like an identification sentiment of the individual in the organization traducing for him by: Acceptation of values and goals of the organization The will to exercise efforts for the organization’s profit The intention to continue to be part of the organization The organizations search to develop the commitment by the way of different incitation, because from the incitation depends the mobilization of individuals trough their work, and the identification at their professional work. So, the organizational commitment of commercials, like an adhesion with organizational goals and values, is generally judge like a condition dependant of the firm’s success. The period of integration of a new collaborator is primordial, because it enables this new actor to get involved in the organizational value and culture, which are key factors of commitment success in the firm. ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 44 Even if the three options satisfaction/ motivation/ commitments are different, there are also dependants. There is in relation of circular causality without consideration that each determinates the others. Generally, the satisfaction is due to a successful action, which depends directly of the actor’s motivation. If the satisfaction doesn’t determinate automatically, oppositely the dissatisfaction does not motivate. The same for a hard commitment creates a positive climate to the motivation, but without guarantee of the activation. And the satisfaction, when it is stable, consolidates the commitment. Most of sales directors would like to manage the problems of rotation allocated their sales force efficiently. But, few firms seem to have good politics defined or good scheduled programs to directly control this rotation. Effectively, there is a lack of pertinent information on commercials that leaves the sales force. Few organizations reply to these simple questions: What are the characteristics of commercial who decides to leave? What are the effective causes of decisions to stop the sales force? It is rare to collect or to analyse systemically information about the turnover. Lot of time, the managers considers that the commercial rotation is an impossible fatality to get around. But some viewers notify that commercial directors attribute themselves the causality of falling rate of rotation at managerial decisions (like a better recruitment or a better following up of commercials). Also, we forget the most of time that the problem of sales force’s rotation will be not resolve on satisfy manner if the problem is located like an isolate phenomena. So, to act on the rotation, there are others aspects of management to consider of the sales force, like principally of drive system of the firm, which will allow obtaining the most efficacies working of the sale force. 7) The system of driving: Control consists for an organization to have global procedures to check, evaluate and remunerate their employees. Point of view managerial, the problem of drive of sales force is in this term: which are indicators that the sale directors have to observe? And which actions of management that he has to obtain of their commercials for they reach the best their objectives and goals of the organization? In fact, the control of sales force is exercised by the way of all managerial actions, and we can conceive that the formation, the motivation, the supervision, the management and the remuneration of commercials is in part of driving and control of sales force. For the management, drive a sales force consists to define essentially and take in place the mechanism of commercials influence the most efficient. ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 45 8) Control on the results/ on the comportments Some particular positions encourage a firm to choose a system of control based on comportments or on the results. So, a system of control based on the results involves a minimum management of commercials by the direction, the useful of simple performance’s measures to evaluate the commercials and the useful of remuneration’s plan like commissions plans which support risks of commercials. Inversely, the system of control based on the comportments need a close supervision of commercials, the intervention of management in activities of commercial and on the more complex methods and the more subjective of evaluation of the commercial’s performance. This system of control will be linked positively and significantly at effectively states (like commitment trough the organization, acceptation of authority, cooperation in a sale team, acceptation of evaluation and aversion of risk) and at intrinsic motivations of salespersons. But, it seems not linked by strategies of sale used by commercials and not linked by their performances. All system of control involves objectives to realize. But, generally in sales force function, the objectives are multiple. Effectively, the firms follow a multitude of objectives which necessity the complex systems of control of sales force. These objectives will be in short term like a realization during one semester of sale volume, of profits and part of market. More and more, general objectives of sales force are missions in long term, like a development of durable relation with clients. These objectives will be clearly goals (like to realize a certain of sale volume), or simply define a direction (reach the best level of possible satisfaction of the client). By nature, commercials objectives always concern on performances to reach. A system of control can’t be unique and it is constituted of under systems, each one accomplishes a proper function, and all complete each other’s. So, certain of these under systems can be based on the comportment and others on he results, => hybrids systems observed in practical. For example, it is not indispensable that a commercial director assures a follow up management of their commercials (controls based on their comportments) and he imposes a quota of sales (control based on their performances). To drive the sale force through the realization of their objectives, a commercial director will have to “plan” and estimate more or less formally which will be the comportments of commercials to reach their objectives. This estimation can’t do only on the base of knowledge (more or less perfect) that the manager has on function of reply about sale territories face to the activities of commercials (“program character of task” or “information on reply’s functions”). There functions are affected by economics and competitors conditions prevailing over sale territories, by the sale potential and the penetration rate of the firm in their territories, also on their aptitudes and competences of the sale responsible of each territory. To influence commercials activities by appropriated actions, the commercial director can in certain case ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 46 use his knowledge (most of time imperfect) which he disposals on the reaction of each commercial face to several levier of control at his disposition. A control to be efficacy has to be viewed like an exchange of information between the commercial and his hierarchy. The global good working needs circulation of flows between both parties. The commercial analyses the market and also takes advantage of the team’s experience, of the follow up, in order to situate his action in a global perspective and to better know the market mechanisms. Of course, the choice of control’s elements by the direction depends on all particular conditions on the firm situation and on the environment. In particular, this choice is influenced by the way of the comportments and results are foreseeable, and measurable, by the availability of information on the functions of reply and of commercial’s reactions and also on costs associated at the collect of information. (Annex 15). 9) A system of management, essential element of drive: The manager has a principal place in the setting up on such a system, because his role to convince his team to the well funded procedure of control: this is not only an additional work, or survey, but it enables to bring a support, to improve the efficiency of solutions. The fact that the teams benefit of positive feedbacks (follow-up, advice, training…) is the best guarantee of adhesion for commercials and the success of control. Nevertheless, the role of supervision will be ambivalent, it may be responsible of failure like of the excellence of commercial: a strict control, too much directive can interfere the work quality of commercial, and supervision too much poor will influent negatively on the performance. The management will be so find equilibrium between autonomy waited by the commercial and the drive exercise of sale force, adapting at the individual. We can define 4 principal attitudes to adopt for a better management: In face of efficient people, motivate and faith, the good attitude is to be delegate; an efficient individual, able to be autonomy will be not motivate by a management too much directive. An employee efficient and insecure with lack of loyal himself, he will need to be encouraging (importance of relation). In the contrary case, he will be stress, the fear to check and the risk to set up a mechanism of avoidance of flight about the task to do. A case of employee poor efficient and not motivates: an important effort will be done about supervision and about directive, of increase the competences, that this person isn’t paralysed because she doesn’t know how to do. Another case could be presented: motivation and poor competences. In waiting that this person increases both elements, the attitude is to be directive: explains what and how to do, with clear objectives. This type of person has to understand his role and his tasks, she has an impact on equip. ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 47 IV WELCOME, INDUCTION and RETAIN We can’t motivate some one, but we can create an atmosphere, which foster individuals to growth, as they need. The Company has already designed a very structured quality manual dedicated to Competencies Management. This quality chapter includes all the necessary processes: - Welcome and induction of new hired person, - Personal appraisal and development process, - Staffing reviews. In fact, this nice process is not really appropriated by the local management. I would like to evaluate the current status of the agency. The following scheme provides this information: ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 48 Welcome, Induction and Retain Levels of Practice Level 1 Level 2 Level 3 Level 4 Opportunist recruitment, subjective Recruitment made by management, Same as level 2 + rating objective Recruitment "investment" with selection advise of supervisor skills function analysis and assesment WELCOME (hiring) Random welcome management availability. regarding Welcome and information management. Presentation supervisor. by Dedicated welcome for any hired Same as level 3 + formalized process to person with targeted r™leassigned to and supports. mangers and supervisors. Possible mentor. No details on the job. No appropriate Some information on the job. No Every one is responsible for Follow-up by management. welcome. formalized welcome procedure. welcome. Existing proczdure Supervisor is fully responsible. (formalized or not). Empirically induction management Follow-up New hired employee train "on the available". job". by supervisor "when Same as level 2 + justified Same as level 3 + selection and (formalised or not) procedure training of supervisors and mentors clarifying the role of supervisor / in charge of induction. mentor. Subjective assesment by supervisor Periodic assesment by supervisor. INDUCTION at the end of the probatory period. (probatory period or training) No follow-up procedure. Validation by management at the end Training program. Follow-up of the probatory period. supevisor. Economic gratification basesd on "Rules og the game" published. "merit" under pressure of supervision. RETAINING Plan assesments to measure progress. Formalized procedure. Regular Validation by management. assesment of competencies progress. Formalized competencies assesment Same as level 3 + systematic hiring procedure. Periodic assesment with and training of supervisors able to feedback to employee. manage. Subjective assesmentof skills. No Subjective assesment but collegial. Indivdual development plan. specific criteria. No feedback to Validated by management. Possible employee. discussion with senior management. Random opportunities. individual training plan. by Indiviidual report document : assesment of training and competencies development. No Occasional use of training to face Compensation policy based shortfalls of competencies. competencies assesment. Formalized process of Competencies and Potential Assesment. Individual and collective competencies development plan. on Use assesments to validate potential for promotion or re-orientation inhouse. Apparently some changes appear due to the change of the Agency Manager. CHAPTER IV: SOLUTIONS In this chapter, solutions to the global issue are provided. Then, I present recommendations regarding the current context of the Company and the Agency. Geodis is in phase of development currently, and they need new commercials to improve their sale force. So, the question of type of commercial recruited and developed is relevant. ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 51 I TYPES OF RECRUITMENT This chart presents advantages and limits of each type of recruitment for a commercial: ADVANTAGES Vertical ladder (same service) - Technical and clients and internal process and employees knowledge Competences known Enhancing internal promotion Smooth development (results) - Technical and clients and internal process and employees knowledge - Competences known - Enhancing internal promotion - Bring up clients - Technical and market knowledge - Easier prognostic though well know back ground - - - Horizontal ladder (different services) LIMITS - Potential evaluation company abilities Sales knowledge - Retain Salary inflation Cultural adaptability Sales competences More global perspective approach Good knowledge of the market if he worked like client before - Technical back ground Market not know well Internal acceptation by others Accurate sales abilities (potential) - Quick corporate induction - Accurate modelling - Quick learning ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI - Technical and sales knowledge Local induction difficulties Elitist attitude Academy to set up 52 Extern firm: in same activity Extern firm: commercial in other activity - - D i ffi c ul t y t o q u i t assistant attitudes Up grading assistant abilities expectations - Corporate young graduate development program: - - This chart shows that some types of recruitment have more or less advantages. The Agency is going to recruit two new senior commercials. It has been decided to hire those persons from concurrency companies through Head Hunting. Previously, one junior has been recruited as assistant and he is still developing his commercial skills. II WELCOME, INDUCTION AND RETAIN I present the act in downstream of recruitment to retain the collaborators 1) Integration: Between 29 000 to 37 000 euro: it is the cost for the firm when there is a premature departure of a new collaborator paid 40 000 euro in brut annual. This figure, from SYNTEC (Syndicate of advice in recruitment and head-hunter) covers the costs of recruitment, the salary plus charges, plus time of formation… The firm has all interest to be careful on the success of their integration program and more exactly about their process of formation. First rule which experts agree: the implication at all levels of the firm, to beginning by which of the general direction. The best consists that the general direction welcomes itself the new employees. A meeting allows new employees to know the firm better and the others employees. This responsibility will be present in the management: nothing, in the success of the integration, is more important than the quality of management of direct hierarchic responsible and his implication in the process of formation. 2) Create a binomial The hierarchic responsible will be participate at the definition of pedagogic program, with the formation service, and after implicate directly and personally in the set up. It is also advising to have an “objectives contract” qualitative and quantitative with each new individual. This moral contract, depending on the results and also on the comprehension of process of the firm and of the market, spend in time until 6 months (depend on the date on the function of the collaborator). Without the implication of the general direction and of the direct management, the formation will be businesses of all people implicated in the supervision, which may be intervene on the formation program of new young employees of the sale force. ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 53 So, the marketing direction, financial, research and development will be in contribution to help the news on their department, their organization or their missions. In integrating the new employees, the confirmed collaborators look after another mission: transmit the culture of firm. Second rule, generally accepted by every expert: the set up of binomial composed on a junior and an experimented commercial situated on the same hierarchical level. There are coach, mentors, tutors…Anyway; the principal is they are nominated officially. Their missions? To be the most closed to their new collaborator: explain and re- explains if necessary, the process and tools of help to sell, procure the good addresses to find information… These collaborators free their employ of time of manager which even if will be monopolizing by the support work. For sure, both prognostics of this support of proximity (manager and tutor) work in collaboration. The manager has to fix the objectives of work at each tutor who follows one junior commercial. The tutorial also enables to valorise the confirmed commercials and to get prepared to future managerial responsibilities. But, before entrusting collaborators, managers and tutors, with this main phase of formation of new employees, the general direction has to validate, in upstream, their aptitudes to manage this mission. 3) Alternate the theory and the work on field Third rule: alternate sequences of theory formation and their applications on the field, because the programs of short intensive on one month are not really formatters. So, it is good to transmit, the first week, the package of theory base, which enables to be efficient in the firm: knowing the market, the products, and the competitors… Then, during 2 or 3 months, the new employees have to experiment the field. They will be under the control of their tutor or manager, and will evolve depending on terms of plan of personal action, conceive by the manager and made in application by the tutor. A feedback can be after done: formation on sale technical, management of project or complex negotiations…). The program will be more pragmatic; the commercials react from of their proper experience. This week of learning will close the knowledge and the life experience. The commercial comes back with a new personalized plan of action of 3 months. The advantage of such a formula is double: one part, the firm limits the massif investments, in upstream, about some candidates who leave the firm in few weeks. So, the most expensive modules are delivered at the end of 6 months for a really interested public, which enables to get a return on investments. Moreover, the alternation enables to avoid the “cultural” shock between the theory and the experience. Then, it is important to evaluate the programs, via some QCM (question multiple choices), some tests… ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 54 ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 55 4) Different type of formation Different type of formation exists depends on the politic of the firm. Some enterprises prefer to externalise the formation; and others one prefers to have an intern formation. FIRM CHARACTERISTICS ADVANTAGES The formation service or the The commercials follow up a commercial manager of the formation managed by a firm manage the formation of specialized organism. all the sale service LIMITS SPECIALIZED ORGANISM Well knowledge of products, of clients, and commercials for the formatters Cost cheaper Adaptation easier of contain and of the form Pedagogic competences may be insufficient Av a i l a b i l i t y n o t assured of the supervision INTERN FIRM CHARACTERISTICS ADVANTAGES Large choice of adapted placement depends on needs Specialization of certain organisms in some special sectors Best qualification of intervenient Programs not adapted all the time depends on specifics needs Cost expensive for the participation Not knowledge eventually about products or sector EXTERN FIRM The commercials of different The formation is only for f i r m s f o l l o w t h e s a m e commercial of the same firm formation * Cost cheaper G e ne r al l y us e b y SME * Attractive exchange ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI Good adaptation / needs, and specificities of the firm 56 LIMITS with commercials of others firms (team experience) Risk of divulgation of commercial strategy for the competitors No control of the formation by the firm Risk of no adaptation for the firm problems Possibility to do a personal follow up Creation of dynamic in the commercial team Expensive cost when the firm has not lot of commercials Miss of exchange with commercials of other firm Geodis has setting up training for junior commercial. It is intern preparation theories, specific to Geodis integrating all multi- jobs. This training is a technical placement in three steps (time). The first one, they learn to structure an interview and the rules of behaviour. Specific to the politics of Geodis, the training have to allow for participants to be able to success a render- vous by phone, to prepare a visit, to present the firm, to discover a client, to argument, to propose solutions and to conclude. The pedagogic methods are simulation, group work, case studies, individual thinking, and exchange experience between the junior commercial (different agencies and divisions). After three months of practice, junior commercials begin the second step of this training. The commercial will be able to manage the “agreement analyse”: analyse success and difficulties, introduce and present the society, and the “agreement analyse” of conquest, of development and retain. The methods used are intensive practice to obtain automatism, the practice cases, analyse of strong and weakness points, and the reconstruction and validation. The third step is based on how to treat the objections 5) To act on the motivation To motivate a commercial, we have to need their needs, their resources of motivation and to give him the necessary means to help it. In the spirit of the commercial, generate the turnover is the faster mean to provide for their needs. But the needs of commercial are not limit on the money. We can compare with the pyramid of Maslow. (Annex 20). For an American psychologist, the substitution of a need at one other is effectuated when the need situates under the inferior rang is already satisfy. And, is it vain to pretend mobilizes by the setting up of superior need if we have no guarantee in first a minimum of security of employ and a respectable pay. ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 57 6) The stimulation: The motivation is an operation of management in long term, contrarily to the stimulation, which is punctual, specific at one particular expectation (launch of product, growth of part of market…). The manners of stimulation use several methods: * The quota is the objectives of sale fixed in quantity or in value, in percentage of growth compare of sales realized before. * The competitions, challenges, which try to mobilize the efforts of commercials around a commercial objective specific by the promise of exceptional gratification (financial recompense…). This motivation technique allows reinforcing the competition of employees and to reinforce the emulation between commercials with new challenges (enables to stop the routine). * The materials supports and divers documents make the work of commercial easier: product files, argumentations, manual of sale, are tools necessary on the stimulation of commercials… * The information and intern formations concerning projects, the evolution and the functioning of the firm, the products, the competitively, the market enables the commercials to feel encouraged in their activities and reinforce the general motivation. 7) Management To reduce the high turnover of sale force, it is necessary for commercial directors to not be indifferent face to problems of rotation and to understand better the causes. Some meeting with commercials, at the moment where they leave the firm, and some inquiries on their aptitudes will be done on the systematic base. It is also advising to adopt a style of management more axed on the communication (management “open door”) to encourage the commercials to explain their thinking and causes of their eventually dissatisfaction: it is better to be sensible on all problems linked at the work, and not only at remuneration problem. The direction will be also organized some audits in regular interval, to identify eventual causes of dissatisfaction in the sale force, and to question frequently the commercials about their perceptions of their work. The age influencing directly on the rotation of commercials, this characteristic can constitute an interesting base of segmentation of same force. The commercials owning on different level of age might need some managerial programs and actions different to reduce this rotation. Effectively, the performance, the satisfaction, the motivation, the commitment and more generally the attitudes or comportments of the commercial seem variant depends on the cycle of carrier. So, in each step of the carrier of the sale force, the direction will have to adapt his management politic, to privilege some tools. ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 58 4 phases exists during a cycle of commercial’s carrier: 1 ) The phase of preparation or exploration, situated between 20 and 30 years old, is the period when the commercial wonders about the choice of his carrier. It is essentially for the commercial, a phase of learning and formation: he discovers his activity (the services to sell, the clients, the competitors…), his collaborators, and the firm where he works. The junior commercials begin with an intuitive approach, quasi instinctive of the sale. It is imperative to tell them the methods, to give them a support (represented by someone who already knows them) that they allow exceeding this intuitive phase. It is the role of the formation, which concerns the services, the sale technical, the organization, and the management of time… 2) The phase of development, around generally 30 years old, is a step of carrier since the commercial has been productive and has been investigating hardly on his professional activity. Some commercials will pass at some control and supervision job, the others stay commercials. A politic of efficient promotion will be set up to satisfy the desire of carrier evolution on certain employees and to avoid them leaves the firm for a better work with more responsibilities. 3) The phase of maturity, around 45 years old, has consequently the “rationalization of the activity”. The commercial is more passive and wishes maintain and consolidate their level of performance. Some frustrations linked at some unsuccessful promotional can initiate stagnation or a regression of results of certain commercials. The direction will propose to set up a politic of stimulation and of motivation to manage this phase: it is fundamental to offer the carrier’s perspectives motivating at some individuals who can’t progress on the hierarchical. 4) The phase of decline, situated around 60 years old, is synonym of no commitment. A constant retreat of the commercial that prepares his retreat characterizes this phase. This decline, not linked at a crease of intellectual capacity, results more of attitude that tends to reduce the motivation and the capacities of work, in which is added an eventual crease of physical and moral resistance, (don’t arrive to manage the stress, pressure…) We don’t control and don’t manage on the same manner a debutant commercial or confirmed: the competences are not the same, the manner to be organized in the work is different, and each sees the authority on different view… Lot of characteristics, specificities is to take in consideration to manage efficacy the sale force on the firm: More experience is high and less the commercials are the sentiment to have recourse of affective support’s role and instrumental of manager. The commercials can consider traditional forms of management and control like obstacles of the efficiency. In the case of the commercial has a high level of expertise; he wishes to obtain a high level of autonomy in the exercise of their function. This level of autonomy has been ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 59 becoming more reticent of directives of support. This resistance will may be providing of the indifference face of control actions and of support drive. Anyway, that is for a commercial, a lost of control in his activity and a professional incertitude results on. This incertitude produces stress. It is advising to judge a confirmed commercial on his results because he disposes normally of the doing knowledge necessary to exercise his activity of manner autonomy, with more liberties and responsible. * A new collaborator in the firm, with professional experience, will be appreciated on their comportment in the group, on the degree of integration, on the adhesion at the firm culture, and on results. From the fact of this recent integration in the firm, the management will be implicated on the integration of the new employee to transmit the fundamental values of the organization and to know the “specificities of home” and to facilitate the adaptation of his new mission and at his domain of work. * The youngest, debutants in the profession feel not married on the firm, finished the fissional attitude, they are given- given: “I am implicated if I have received something in exchange”. It is better to offer them a clear contract, the objectives well defined, a result to reach, and let them act on their perimeter of responsibilities. The young generation agrees to commitment them with all energy, if they are recognized for their actions. To be interest at each action of each individual, encourage each member of team, felicitate him or advice us about the possible amelioration. With the juniors, the reporting will be more frequent, more rigorous than the confirmed commercials. So, the necessity to set up a veritable system of feedback on daily, because without capacity to specify the expectations of this person, and without appreciate objectively the results, there is no work of team. This system of reporting is not to control absolutely the team, but to help it to progress. Why? Because when it sets up tools of follow up, it enables to encourage the collaborators to do some tasks. The essential is to know creating a faith and collaboration climate. The other characteristic of debutants, it is the need to be reassured, to feel of faith climate: the manager will be present all the time and particularly during difficult moments, or doubts or checks. His role is to assure that the firm continues to accord his faith. The manager has to spend a time, lot of time, to guide them in sale meeting, and analyse after the meetings. The coaching of proximity is really important, and generally negligee: it will be operated 3 times by week minimum. The junior needs attention each instant: the manager has to question them all the time, and at each new problem, to discuss and reform with examples and exercises like support. Also, a debutant in the profession will be evaluated on the manner to work, on the qualities of necessary base for a commercial, then only on the results and his degree of integration in the team and in the firm. ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 60 III TRENDS 1) 4 functional domains: The nomenclatures of commercial work and the content of post afferent have not lot of change during some years. For team manager, 4 functional domains emerge: * The conquest of clients: The number of firms is more and more important to search “hunters”: the able collaborators to prospect new customers. In slow growth, these profits are appreciated in the sector of advertising, of technology and services (informatics…). * The development of clients and of projects: The profits of “elevators” are always appreciated; especially on industrial sector which solicits few clients but require important business recurrences. It is the case of telecom sector. * The development of international activities: The globalisation on markets and exchanges open the new perspectives of growth for lot of firms. Also, the commercials functions know a certain quantitative and qualitative transformation: the effectives are growing. Parallel, there is an export strategy (sale of products or services in others countries) to an international strategy (creation of activities development and international projects). This mutation allows for the collaborators to drive veritable centres of profit: support of marketing team, management (profits and loss statements)… * The development of partners: In upstream of the commercial function, appears the works linked at development businesses. Their mission is to prepare the future growth by the conclusion of strategic partners, capitalistic, technical or commercial partners. This work, in expansion since recent time on certain environment sectors (informatics, telecom, internet, new technologies…) is nevertheless menaced by both facts: the identity of work is difficult to define because the limits are blurred, and the future of this work is uncertain during economic slow periods because the “business developer” has no mission to bring immediately revenue. 2) Evolutions of profits: The recruiters of commercial cadres define criteria of research more and more exigent. We can see a higher level of initial qualification for the most of this function’s work. 3 systems of selection continue to cohabit: * The first school has a priority the identification of commercial qualities of the individual, in abstraction of the level of initial formation. * The second valorises the knowledge on products and on technical by the candidate. So, an experience in the domain of activity or/ and of ingenious formation may be constitute in this case an advantage. * The third takes in consideration the degree of the complexity growing of commercial works and the high level of formations, in particular which of dispensed by the business schools. The ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 61 bet is also the combination between superior formation and commercial experience, which constitutes the motor for an evolution of future carrier. Since few years, the third school has been wining lot of adepts. 3) Evolution of sale technical: The evolution of commercial work is in amelioration of sale technical, in particularly an automation of relation client’s management. The important growth of CRM (Customer relation client is automated) favours the exercise of commercial function, which enables for commercials a segmented approach of clients, adapted at their potential of turnover. In parallel, the societies search commercials not only able to sell a product, but also a service rendered on the clients. Both principal clients explain this evolution: The client doesn’t search only to obtain a good but to resolve a problem: the commercial will be able to answer at his expectation in proposing a solution. The competition growing involves the firms to fight them on the prices; the annexes services for selling allow generally winning a business in ameliorating the margin. For example, in the informatics sector, the material sale is following by contract of maintenance and extension of guarantee. So in the sales service in Geodis, the commercial has not only a technical reply on the customer but also a solution of advice, which enables to have an added value and creates a margin. This trend has for consequence to complexity the role of commercial. Without the listen qualities and the sense of the negotiation, the commercial cadre will have both groups of competences and manage the financial technical more and more exacts: * In intern, he works with collaboration of the controller of management to validate the profitability of the sale. The commercial objective is not selling the most, but to have a positive margin on the business. * In external, he must be able to detail the sell price, and eventually offer a financial solution and calculate the return of investment for the client. This demarche is more and more developed on software editors. The commercial must to have also a perfect knowledge of his firm, and of the logistics. Effectively, the pressure of the delivery lead-time is really more important when the suppliers are the constraints of stoking by their clients. In this case and for the following of client information, the commercial dispose of tools (mobile phone, let top…) equipped on SFA application (sales force automation) ting him, from at the client place to consult in real time the stocks and transmits the order. ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 62 4) Evolution in term of carrier: Since several years, the image of commercial works has been ameliorating. During a long time, it is associated at the promises of high remuneration, the work of commercial represents others attracts today. Theses works seem more diversify. The rehabilitation of this function is following of a better valorisation of the commercial experiences trough potential employers. With an increase number of activity’s sectors, a commercial experience is an element motor in the professional development. Of this fact, the evolution of study from a commercial work has been more number since 10 years. * A vertical canal allows to progress hierarchically in the business channel: the passage of particular clients to a clientele of little size firm, the evolution to the development of key account (important clients), and the accession to support posts then of direction correspond on the traditional channel. * A horizontal canal consists on use of commercial passport to change of function and to joint another work situated sensibly at the same hierarchic level. Lot of commercials would like to evolve to the marketing function. This way is more practical than the past because the proximity between the commercial and marketing are more closed to. Lot of enterprises considers a commercial post like an opportunity for a carrier of a young certified. The success of commercial and the knowledge of the field compose two motors of carrier evolution. Also, the hardening of market of employment doesn’t help the candidates to use this way, except an intern promotion. A diagonal channel, audacious, allows commercial managers to progress hierarchically in changing of function in the same time. Legitimate by theirs commercial functions and use of their best image of their job, certain commercial managers success to use their anterior functions like a trampling to accede of general direction functions or of management functions (direction of activities, marketing, creation of own firm…). CHAPTER V: RECOMMANDATIONS My recommendations are to provide the agency with a mix of hiring solutions. This pragmatic approach is linked with the current restricted labour market and in order to bring diversity in the Agency. Several solutions could work if basics already herewith developed are strictly followed. The basics are the abilities clearly identified in the previous chapter. For that, the Agency needs definitively to adopt a clear recruitment process. To make sure the process will be under control three points have to be developed: - Move the current job description to function analysis, - Train the manager to recruitment skills, - Use psychologist to measure candidates potential. ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 63 For the welcome, induction and retain the key is not to upgrade each item separately but to try to upgrade on a consistent approach all the items (in a parallel way). If we go back to the general scheme the upgrading approach is shown on the following chart: ILO Graduation Assignment 2007-2008 GEODIS WILSON France Carole ORSINI 64 Welcome, Induction and Retain Levels of Practice Level 1 Opportunist subjective selection WELCOME (hiring) INDUCTION (probatory period or training) Level 2 recruitment, Recruitment management, supervisor made advise Level 4 Recruitment "investment" with function analysis and assesment Random welcome regarding Welcome and information management availability. management. Presentation supervisor. Same as level 3 + formalized process and supports. No details on the appropriate welcome. by Dedicated welcome for any hired to person with targeted rôle assigned to mangers and supervisors. Possible mentor. No Some information on the job. No Every one is responsible for formalized welcome procedure. welcome. Existing proczdure (formalized or not). Follow-up by management. Supervisor is fully responsible. Empirically induction Follow-up by supervisor "when Same as level 2 + justified management New hired available". (formalised or not) procedure employee train "on the job". clarifying the role of supervisor / mentor. Subjective assesment by Periodic assesment by Plan assesments to measure supervisor at the end of the supervisor. progress. Validation by probatory period. management. Same as level 3 + selection and training of supervisors and mentors in charge of induction. No follow-up procedure. job. Formalized assesment progress. procedure. Regular of competencies Validation by management at the Training program. Follow-up by Indiviidual report document : end of the probatory period. supevisor. assesment of training and competencies development. Economic gratification basesd "Rules og the game" published. on "merit" under pressure of supervision. RETAINING Level 3 by Same as level 2 + rating objective of skills Formalized competencies assesment procedure. Periodic assesment with feedback to employee. Subjective assesmentof skills. Subjective assesment but Indivdual development plan. No specific criteria. No feedback collegial. Validated by to employee. management. Possible discussion with senior Random opportunities. No Occasional use of training to Compensation policy based on individual training plan. face shortfalls of competencies. competencies assesment. Same as level 3 + systematic hiring and training of supervisors able to manage. Formalized process of Competencies and Potential Assesment. Individual and collective competencies Use assesments to validate potential for promotion or reorientation in-house. Recommendations are in green. Regarding the current context, I do recommend not to move in a parallel way as usual: some processes are to be prioritised; some have not to be changed yet. The first issue regarding recruitment has been sorted out in previous paragraph. The second issue could be reinforced with binomial approach. Mentors are necessary for a while, due to poor current management. The third issue could add meeting with new employees within the Company to reinforce their membership and to build-up their own network. The sixth issue could integrate an early development plan. New hired employee should work from the beginning on their first development priorities. Training program should alternate formal training and field exposure. Formal training programs are already in place within the Company. Management has to be fully involved in those processes. The key issue of success is definitively the upgrading of managerial resources within the agency. New commercial managers have better to be removed from other Geodis Location. At least, Managers should be more evaluated on their ability to promote their employees rather than commercial performance. Systematic management training has to be settled as mentoring program. CONCLUSION After describing analyse segmentation of market and the SWOT of GEODIS, I have better understood the context of the forwarder. Due to this report, I have learnt the working of the type of organisation. Also, it allows me to take a distance face on my job and understand my role on such organisation. Also, I discovered the important role of sale force and all aspects, which involve a complex organisation. Analysing all function of the sale has allowed understanding the competencies and attitudes required for each one. The goal is to reach an improvement of sale force. So, to reach a new function step- by- step is not easy. And to success this evolution, a recruitment of new commercials could be really thinking depending on certain criteria. The new merging with TNT Management and GEODIS involves lot of change on the organisation and allows being on the 10 tops forwarder on worldwide. Each agency is touched by this new change. This merge brings solutions on the same way of my recommendations. The management becomes Dutch; it is a management more pragmatic, straightforward. It involves a centralisation system of sale force and ads perform ant tools of work. So, Geodis Wilson is on the good way to improve his business. The Company has all the resources to succeed. ILO Report Placement 2007 GEODIS WILSON France Carole ORSINI BIBLIOGRAPHY BOOKS Manual on sale practices: how to improve the efficiency of your sale force / edited by the Tacis Technical Dissemination Project Gestion et Management de la force de vente by Carole Hamon, Pasvale Lezin ; 3td edition Du recrutement à la fidélisation : a new force of sale difficult to manage of Sire Carole, Francezon Marjorie Marketing and sale action : Guy Audigier L’optimisation de la force de vente: taille et repartition of Etienne Savin Mercator ; 6 th edition , Palloz Le management client, Franc C.Hogg Le marketing management 5th edition , Publiunion Manuel d’organisation de l’entreprise de JP Schmitt, edition PUF Manager avec le social, G.Donnadieu, collection entreprise et carrières, edition LIAISONS Force de vente : Réalités et perspectives, JJ CROUTSCHE, edition ESKA Guide des conseils de recrutement 2003 de R.ULMAN ; collection LERCOMM Gary Hamel & C.K. Prahalad : Competing for the future 1994 Harvard Business Scholl Pres. Le Boterf : De la compétence essais sur un attractuer étrange 1994 Les Editions d'Organisation ARTICLES - le pilotage des forces de vente : état de l’art et modèle conceptuel, RY DARMON, magazine Recherche et applications en marketing la rotation des vendeurs : de la théorie à la pratique, RY DARMN Guerre des talents, l’arme du marketing RH, S FRANCHET, magazine entreprise et carrières INTERNET - apec.fr cyborg.fr commerciaux.fr www.syntec.com ILO Report Placement 2007 GEODIS WILSON France Carole ORSINI APPENDICES Annex 1: Presentation Geodis Annex 2: Management continue amelioration Annex 3: Hierarchical objectives Annex 3: centralized and decentralized driving system Annex 4: commercial objectives and driving systems Annex 5: Wheel of the performance Annex 6: SA, RT, OG, RI, RE, AR ILO Report Placement 2007 GEODIS WILSON France Carole ORSINI ANNEX 1 Presentation Geodis I THE GROUP 2) Geodis Key figures 2006 GEODIS grew its turnover by 6.7% in 2005, with like-for-like growth of 5.5%. GEODIS increased its turnover in the fourth quarter of 2005 by 8.6% relative to the fourth quarter of 2004 (6.3% comparable, like-for-like organic growth excluding changes in exchange rates). Several partners divide the shareholders area: Common stock distribution as of 04.02.2005 is shared between SNCF (43% of participation), SALVEPAR (5, 85%), AGF- Vie (5, 02%), FCPE Geodis Shareholders (5, 06%), their own participation (0, 77%) and others shareholders (40, 2%). 3) Networks and partners * FOCUS on Rohde & Liesenfeld The company will reinforce GEODIS' expertise in overseas markets and will improve our coverage in the United States, Australia, South Africa and South America, where the partnership ensures the continuity of the Group's services. Subject to the approval of the competition authorities, the transaction will be completed in the beginning of 2008. * FOCUS on Phoenix Today, Phoenix International is the largest privately owned, full-service international freight forwarder, NVOCC, and Customs broker headquartered in the United States that why this partnership reinforce Geodis' expertise in overseas markets especially in the United States of America with 86 sites. * TFM Acquisition (TNT Freight Management: WILSON) The acquisition of TNT Freight Management (TFM), TNT's freight forwarding division, which was unveiled on 16 November 2006, can be considered a strategic move for the Group for a number of different reasons. * R&L merging GEODIS WILSON On 28 Sept 2007 Geodis S.A signed the Sale and Purchase Agreement (SPA) to acquire Rohde & Liesenfeld (R&L), a German-based international transport logistics company. Completion of the deal is expected in January 2008 5) Global logistics chain operator Services proposed by Geodis are: Supply Chain Management: Management and optimisation of flows Distribution: Bulking and express parcels (domestics and international) Reverse Logistics: Managing current and end-of-life products Logistics: Warehousing, stock management, value added services Full Trucks Loads: Part and full loads Air & Sea freight: Intercontinental multimodal (air and sea) transport ILO Report Placement 2007 GEODIS WILSON France Carole ORSINI II GEODIS OVERSEAS 2) Our Multi Job: Geodis is involved in several activities, the principals are: -Multimodal freight forwarding -International freight forwarding -Door-to-door services -Industrial projects -Intercontinental logistics / France. 3) Traffic: Geodis Overseas is organized in 10 areas, for a national traffic near their customers. The organization is centralized in Paris where the head office is. In 2007, the PACA area has shared by divisions: Bulking, Express, Logistics and Overseas Air and Sea. This area is divided in 7 regions. 4) Our know how On the following process shows the flows of activities about sea and airfreight organisation with our global offers: Our Global Bid OVERSEAS: in Airfreight and Sea freight: - Import and export from a simple package to a full container Pick up and delivery from our area, France, Europe and worldwide ILO Report Placement 2007 GEODIS WILSON France Carole ORSINI - Optimisation of handling plans Structure core carriers Tracing and POD Airfreight Aerodis Premium: for your urgent shipments Aerodis Sea/air: combined Aerodis Expedite: your transport shipments are consolidated Aerodis Charter Aerodis Expert: for Aerodis Door to Door dangerous goods Airport Transit/customs/ documentation Transit via a handling warehouse (airfreight) or a consolidation platform CFS (sea freight) before loading. Hub Origin Tariffs customs nomenclature Certificates of origin Import license 5) Organigram Marseille agency ILO Report Placement 2007 GEODIS WILSON France Carole ORSINI Port Sea freight FCL (Full Container Load): LCL (Less than a Container Load) LCL/FCL FCL/LCL Consignee Destination Customs consultant (technical and financial aspects) Customs clearance Warehousing Distribution REGIONAL DIRECTOR REGIONAL DIRECTOR CIL/V2000 STC S.SELLAMI PATRICE - VIGNON ACCOUNTNG ADMINISTRATITION EVELYNE LE SOMMIER N. GIALLO V. LACERENZA C. SEBASTI NETWORKS EXPORT JEAN.YVES MIRACOLO Agences Divers I /E P.HURTEBIZE M.PRIEM N.CORNETTE Imp/Exp LYON S.NANUS S.NANUS C.BOLUFER C.BOLUFER J.LALANNE J.LALANNE C.PIERRE C.PIERRE BEZ BEZ FLOW Matériel Roulant Périssable/Algérie AM MIRACOLO A.GORRAT C.MICHEL WORLDWID E BULKING BULKING C.JARDI JL. AFONSO C.JARDI ILO Report Placement 2007 V.GAY V.GAY M.ABDELDJE GEODIS WILSON France LIL Carole ORSINI Maghreb F.DUCAT M.FABRE F.BETTON IMPORT JEAN-PIERRE NOREN COMMERCIAL MICHEL CAILLET C. SARREMEJEANNE J. ARNAUD B.CATUOGNO L.CARENO C.DEBAVELAERE E.LOMBART A.MARINI CUSTOMERS X H.GRILLE Commercial M.MARTIN Commerciale C.DARTAYRE Sales assistant C. ORSINI Sales assistant CUSTOMS RICHARD BAUDE P.PERRIER B.ANDONIAN D.COUSIN L.LUBRANO J.PHILIBERT F.POTTIER C.SCIAMANN A FOS S/MER A.MORANA A.DI ENEDETTO C.SILVESTRE ANNEX 1 ANNEX 2 MANAGEMENT CONTINUE AMELIORATION Supervision of informatics STC Collaborat ors Requirement s Human ressourc es Informati on Treatment litiges STC Client Admistrative and Financial Export seafreight FCL/ LCL Expectation s and exigencies of clients Satisfactio n clients Customs Import seafreight FCL/ LCL Commercial Process Export airfreight FCL/ LCL Regulation Exigencies Respect of Regulation Customs Import airfreight FCL/ LCL Supervision of purchassing and locals services ILO Report Placement 2007 GEODIS WILSON France Carole ORSINI Management of HUB Selection and evaluation of companies ANNEX 3 ILO Report Placement 2007 GEODIS WILSON France Carole ORSINI ANNEX 4 ILO Report Placement 2007 GEODIS WILSON France Carole ORSINI ANNEX 5 COMMERCIALS OBJECTIVES * Horizon of time ( short or long term) * Precize and directionals goals SYSTEM OF DRIVING/ CONTROL OF SALE FORCE STRUCTURE * Base of knowledge * Dashboard * Leviers of control CHARACTERISTICS * Centralized/ Decentralized * Based on results or comportments * Qualitative/ Quantitative CHARACTERISTICS OF THE SITUATION COMMERCIAL RESULTS More or less predictible More or less view More or less measurable COMPORTMENTS/ ACTIVITIES OF COMMERCIALS More or less predictible More or less view More or less measurable INFORMATION MORE OR LESS COMPLETE AND FIABLE * Functions of reply of territories on activities of the commercial * Functions of commercial's reaction face on levier of control ILO Report Placement 2007 GEODIS WILSON France Carole ORSINI ANNEX 6 Wheel of the performance Commitment Implication Motivation Commercial Performance Appropriation Satisfaction Managerial dispositive EXTERN DIAGNOSTICS Remuneration, materials manners... INTERN DIAGNOSTICS Coaching, following, personal development ANNEX 7 2.1 - KNOWLEDGE AND SKILLS . Level 1 Level 2 Level 3 Level 4 Activities required know how practice skills in the same job Activities required the technology control of one speciality or inter speciality manual multi skilling Activities required the technology processing on differents domains Activities of conception and of transposition. Theorical models and technology processing Requirement Requirement Requirement Requirement By instructions, set up some specialized know- how To control the specialized logic/ of one process To combine some domains obeing to different logics To control the theoritical of one domain and application methods Examples Examples Examples Examples * All manual activity of execution * Data entry ( simple process) * A technical study (quoationsÉ) * Preparation of working place * Analytic accounting * "Managerial' activity * Conception activity required technical methodology and commercial logic * Activity of search applicated * Strategic activity 2.2 - REASONING & PROCESSING . Level 1 Activity required an analogue reasoning Level 2 Level 3 Level 4 Activity required a reasoning of spread 's evaluation with regards to variables norms Acitivity required an analysis of type diagnostics linking independant information Activity required a combinaison of diagnostics before decision and action Requirement Requirement Requirement Requirement To conduct correctly teh process " Detection- Action" To adjust execution processes face To set up a type "hypotheticodeductive" reasoning system To combine diagnostics on different domains Examples Examples Examples Examples * All acitivity of driving * Some chain work acitivy * A technical study for "usual" estimates * All activity of "specialized" conception * Medical diagnostics In general, all strategic activity of identification and of comparaison with regards to fixed norms ILO Report Placement 2007 GEODIS WILSON France Carole ORSINI on variation of information or face on the treatment of the object 2.3 - ORGANISATION - TIME MANAGEMENT . Level 1 Level 2 Prommagable activity in normal lead time without randoms Prommagable activity in normal lead time but with some occasional urgences Requirement Requirement . To respect lead time of Level the program 1 Level 3 Activity in "real time" with urgences and severals randoms 2.4 - INTERN RELATIONSHIPS Planification actualised of his activities and which of his collaborators ( operational organisation) Requirement previsible radom Communication with usual perons but of different work/domain, without link of subordination To optimize his priorities Leveland 4 which of his collaborators (deleguations) with the necessity to do choices prioritary Hierarchic relationship or of formation Idem 3, but with persons appurtenant with persons appurtenant on the same on different domains of activity. domain of activity Examples Examples Examples Examples * All activity planificated where information to treat are on disposition of holder * All activities planificated, but required reprogrammations during the execution * All activity required to treat an random information * All activity of supervisory personnel and subject to the requirements of the level 2 (manage randoms) Communication with usual persons of a work unity (service/EquipÉ) To adjust his work program Levelin2function of Requirement Level 4 To take quick decisions under3the pressure Level Requirement Requirement Requirement Requirement Well relationships with this others employees To adapt his language and his behaviour face on people of different level socio- cultural To justify, to explain, to adapt his instructions, to control the execution To get work in team people of different level socio- cultural (management N+2) Examples Examples * All activity of supervision "in direct" of same domain or activity of * " Operational" direction on different services, or activity of extern advices ILO Report Placement 2007 ExamplesGEODIS WILSON France Examples Carole ORSINI * All activity required a stable team work * All activity involving "horizontals" communications inter service specialised training 2.5 - EXTERN RELATIONSHIPS . Level 1 Level 2 Level 3 Level 4 Communication with usual persons of same job (or domain) Communication with usual perons but of different work/domain Communication with persons of same domain with requirements of: . Supervising . Training . Negociation Communication of level 3, but with variables interlocutors (all levels socio cultural) Requirement Requirement Requirement Requirement To maintain a well relationship with extern partners To adapt his language and his behaviour face on interlocutors of different level socio- cultural To adapat his strategy of communication to etablish an "operational" agreement Idem 3+ the necessity to get over Examples Examples Examples Examples * All communication between people of same job, with a common language but depend on different firms * All communication with people of different language for cutlural or technical reasons * All activity of negociation required a result, a benefit Idem 3,but necessity to success a negociation with people of different ILO Report Placement 2007 GEODIS WILSON France Carole ORSINI the differences of cultur and status languages and values . Intersyndical negociation. .A negociation of market with a new client 2.6 - AUTONOMY - RESPONSABILITY . Level 1 Level 2 Level 3 Level 4 Activity controled restrospectively consequent of an error, or just a lost of time, without economics damage. Activity with aleatory control with possiblity of irreversibility of certain errors, not adjustable, with a minor economics consequence Activity with aleatory control and deferred on time: error is irreversible and can involve a economic damage or major human damage Acitivity without nothing intern control of the firm: error can involve the lost of whole or a part of the firm Requirement Requirement Requirement Requirement Engagement of conformity's control of his work by the holder, for the final task Engagement to optimize his operational control dependant on error's consequences Self control by the holder of the whole work program Self surveillance of holder on activities/ strategics decisions Examples Examples Examples Examples Autonomous of execution on short time: activity that the holder is controled on "the end of cycle" All activity delegated in case of cumulated errors involving a disturbing on the others functions of technical service. All activity fully delegated of market negociation: . All activity of control able to jeopardise human lives . Chirurgical act Some activities of the manager of firm: financial mangement; investment ILO Report Placement 2007 GEODIS WILSON France Carole ORSINI