LTB 016/17 – BT Consumer: Solution Selling Bonus and KPI Trial in Sales Acquisition
No. 016/2017
12th January 2017
To: All Branches with BT members
Dear Colleague
BT Consumer: Solution Selling Bonus and KPI Trial in Sales Acquisition
BT is launching a trial in Doncaster of a new way operating sales bonuses and revised Key Performance Indicators (KPI) in Sales Acquisition.
The trial will be based on a team of around 50 acquisition advisors who are based in the Doncaster Contact Centre and will run for the next 3 months. BT has committed to ongoing discussions with the CWU during the trial.
The CWU National Team understands the rationale for the bonus trial, but has serious concerns about the new KPI arrangements.
Solution Selling
The idea of Solution Selling is to deliver better customer service and also greatly simplify the bonus arrangements.
Solution Selling moves away from targeting advisors to sell a certain number of specific products. Instead, advisors will be given the autonomy to sell the appropriate products to customers in a quality way while selling more valuable products where possible.
The bonus will be based on setting a target number of solutions to be sold per selling hour based on each ACR Camp. This is then overlaid by a value measure and a quality measure. This is summarised in the diagram below.
There is not a specific target set for Value or Quality as achievability of the measures in any week will depend on a number of unknown factors such as BT promotions or competitor initiatives. As a result, these two factors are measured across the relative performance of individuals in each ACR group using quintiles. The bonus is then either increased or decreased based on the individual’s position in the quintile ranges.
The National Team will monitor the bonus trial to see how it works in practice and review the results with BT.
Key Performance Indicators
At the same time as trialing the new bonus, BT are also trying out a new KPI measure.
The bonus and KPI measures are being aligned to the bonus approach, and the same methodology will be used for both. While the bonus formula will produce a cash outcome, the KPI formula will generate a weekly KPI score.
The weekly KPI scores for each ACR Camp will be broken down into quintiles. The KPI scores will be visible to Line Managers and will be used as a performance indicator. In line with current arrangements this may lead to additional coaching or a more formal performance plan.
The CWU has serious concerns about aligning bonus and KPI. We do not believe that one set of measures is appropriate for both.
Our concern is that two of the three KPI measures are not based on individual achievement. The Value and Quality scores are generated by relative performance using quintiles, and the scores are then either increased or decreased based on the position in the quintile ranges.
Given the use of comparative weekly measures, we do not see how advisors can be clear about what is required from them in terms of Value and Quality, or what a good KPI score is week to week.
We do not believe this is consistent with the BT Group approach to performance management. This requires that everyone should be clear about what is required in their job and the expected standards and performance.
Moreover, an individual’s position in the quintiles could vary each week even where an individuals’ performance has remained unchanged.
Using the quintile approach also means that that it is difficult for advisors to understand how they can achieve a good KPI score.
BT is aware of our concerns and has given the CWU the following assurances.
- Performance management will continue to be based on behaviours only and will not be driven by KPI scores. KPI scores will continue to be an indicator for performance only.
- Any existing performance plans in place in the trial group will be reviewed with the CWU to see if they are still appropriate given the new approach.
- Any new performance issues that look as if they will be moving to a formal plan during the Trial will be reviewed jointly with BT and the CWU locally before any formal steps are taken.
These assurances are helpful in terms of the trial, but the National Team will continue to seek a solution to the substantive issues as soon as possible.
Attached is a letter from BT and associated slides.
Yours sincerely
Nigel Cotgrove