Worldwide Equipment (China) Ltd.

–
A Sales Performance Dilemma
 Company
UK based multinational HVAC company
One of the largest manufacturer of different
HVAC, US$2.5B revenue, 80 countries,
known for innovation, high-priced end and
high quality
China Division - 3 Regions, each had 3 RSM
for 3 product lines - RAC, LCR, ICR
ICR Division: Considered premium brand,
most energy efficient, had an early entry to
the market
Collaborator
RSM
Senior Sales Engineers
Sales Engineers
Existing Customers - referrals
Bidding Evaluation Committee
Purchase Department of Industries
Customer Competitor
RAC - residential in Europe, Middle East For China ICR Division:
& Africa Local chinese players - cater to low
LCR - Offices, workshops, hospitals, end of the market - priced 60% lower
shopping malls, Distributors, OEMS than imported players
ICR - Manufacturers in pharma, textile, JVs between local and foreign - priced
electronics, petrochemical, oil & refinery, 20-30% less
Food & Beverage, - Growth in Asia- Other international players - priced
Pacific 10% less
Context
Central Govt. Initiatives to upgrade chinese textile industry - 2000 mills in total
looking to replace current old looms to air-jet looms
Chillers treated as cost centers by textile mills, price sensitive and not quality-
driven, prefer mills sold by JVs than imported
Sales process changing from negotiation to win-lose public bidding
WEC Sales staff not familiar with creating bidding documents, building
customer rapport
Li Weimin hired by Edward Yu, CMM and Frank Wang’s boss - promised
great contacts but bid lost due to high price quote and personal outburst -
morale of other sales rep down
Problem Statement:
How to improve the sales performance of Beijing Office so as to meet the year end target of US$
18.32 M
Decide Weimin’s role at Beijing Office in the next 2 weeks balancing between sales team morale
and his own relationship with Edward Yu

1 Fire Li Weimin
Train sales engineers on
1
tendering and bidding
Transfer Weimin to another
2
role in research
2 Status Quo

3 Status Quo
 Evaluating Sales Competencies of Beijing - ICR (Textile)
● Of the other 6 sales engineers, two are
Other
Li Sales performing below average – Zhong Ling and
Competencies Weimin Engineers Fu Xialong
Understanding of the customer’s needs & ● Average sales leads/travel days for sales
how ICR products affect their costs Yes Yes engineer is 64% . Fu & Zhong’s performance
Capability to create professional tender
is 55% and 60% respectively
documents & decide competitive price bids No No ● Average revenue/travel days for sales
engineer is $13,280 . Fu & Zhong’s figures
Experience and network in textile industry Yes No
are $5430 and $10690 respectively
Customer rapport - building, customer ● Other 2 employees are relatively old in the
relationship skills No No organization while Weimin is still very new
Presentation Skills No Yes and raw in sales skills, and still low
Empathy No Yes
performance
● This indicates that there is lack of proper
Need to Conquer Yes Yes training and mentoring systems for sales
persons
Firing Weimin could also lead to a potential sales loss of
US$3.5 M to the company (Guangzhou Office)
Sales Management System at WWE - China
● Focus on ‘Output only’ parameters - sales revenue
● No incentive for reduced costs, no special discounts, and efforts (input) by sales
engineers
● Position advancement criteria includes non-measurable dimension (team spirit)

Wang as a manager
Rapid promotion and has drive
Good negotiation skills
Focuses on net contribution nd not
just revenue
Un-updated recruiting process
“What’s in it for me” attitude
Didn’t provide training to sales engineers
when entering textile
Recommendations (As Wang)
● Regarding Weimin
○ Extend probation and provide on-field training - team up with a sales engineer with complementing
qualities
■ Can improve employee morale as well
● Review criteria for recruitment periodically
● Holistic sales performance management to improve productivity
○ Suggest considering ‘input only’ and ‘output adjusted for input’ parameters
○ Training for sales engineers in tendering and other aspects of textile industry
○ Identify time taken for new hires to be productive
○ Track avg productivity of sales engineers
● Targeted offerings for the textile customers
● Suggest senior management to relook at relative index as currently it restricts internal
collaboration between regional offices
Thank You!