LTB 284/17 – BT Consumer: Solution Selling Bonus and KPIs in Sales Acquisition
No. 284/2017 23rd May 2017
To: All Branches with BT members
Dear Colleague
BT Consumer: Solution Selling Bonus and KPIs in Sales Acquisition
Further to LTB 16/2017 and following discussions with the CWU BT is now rolling out Solution Selling and the new Key Performance Indicators (KPI) structure to all of Sales Acquisitions. This comes after the trial in Doncaster and Dundee.
Overall the outcome of the trial has been positive. However, the CWU National Team (NT) has raised issues about the achievability of the bonus and the KPI process and BT has agreed a period of further monitoring of the new arrangements.
Attached is a letter from BT and associated slides.
Solution Selling
The idea of Solution Selling is to deliver better customer service and 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 here.(Or see attachment 4)
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.
At the same time as trialing the new bonus, BT also tried out a new KPI measure.
The bonus and KPI measures were 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 KPI scores will be visible to Line Managers and used as a performance indicator. In line with current arrangements, this may lead to additional coaching and potentially more formal monitoring of performance.
The Trial Outcome
Solution Selling was trialed in Doncaster and Dundee and the results so far have been positive.
The key points are as follows.
- CWU members have provided positive feedback.
- Sales per hour are 16% higher than the rest of acquisition, and customer satisfaction has risen.
- The amount of bonus being earned in the trial is on average 32% higher than the rest of acquisitions.
- The proportion of advisors earning On Target Bonus (OTB) on the trial was 41% compared to 26% in the rest of acquisitions.
- There has been no increase in the numbers of performance plans during the trial.
Achievabilityof Bonus
The CWU has expressed disappointment that less than 50% of advisors on the trial were achieving OTB. A key part of the Agreement that introduced the Workforce 20/20 grades is the principle that bonus targets should be achievable.
However, it has to be accepted that the number achieving OTB in the trial is a substantial improvement on current levels. In addition, BT has confirmed that when looking at advisors by length of service 55% of those with longer than 12 months service achieved OTB or better, suggesting that as advisors become more experienced they are more likely to hit OTB.
In response to the CWU’s concerns BT has confirmed that it will continue to review this issue with the CWU and share the monthly results of the change in terms of increase in bonus for a period of 3 months, with a final review after 6 months of the roll out.
KPI Measures
The NT has been concerned that the alignment KPI and bonus measures would be a problem as two of the KPI measures (Value and Quality) had no target and therefore it would be difficult for advisors to know what their objectives are. This in turn could result in increased numbers of performance cases.
Moreover, the NT has been keen to see evidence that advisors can consistently achieve similar levels of KPI and therefore bonus, as this would demonstrate the extent to which the measures are within the control of individuals.
BT has confirmed the following points:
- There will be no KPI target set for advisors.
- The component parts of the Value and Quality measures are part of the advisor training and will be clear to all.
- BT will review with the CWU data on the degree to which individual advisors can consistently maintain their KPI and bonus scores
- Performance will continue to be assessed on behaviours not metrics. BT will be reinforcing this point to managers and advisors as part of the implementation plan.
- The Voice of the Customer (VOC) measure which is a key element in the Quality KPI is now taking up 50% of the weighting. As this is based on a rolling 13-week average this should ensure that there are less likely to be big variations in results. Also new systems are being introduced that will give advisors the chance to view VOC comments about their own calls more easily.
- BT is reviewing the standard behaviours documentation to see if it needs to be adjusted due to Solution Selling.
- There has been no increase in performance cases in the trial. BT will continue to monitor the number of performance cases with the CWU in acquisitions over the next six months.
The commitments from BT have reassured the National Team that our concerns are being addressed, and we will continue to monitor the situation.
In the meantime, if Branches have issues with Solution Selling that cannot be resolved locally then they should escalate the issue to HQ.
Yours sincerely
Nigel Cotgrove