SAB Case Study

Staffing over a 2-month period: 10%

Revenue growth over a 12-month period: 400% increase

We first compiled data on their compensation levels and structures to create an in-depth evaluation of SMQT Construction’s sales force. Next, data was collected through interviews and analysis involving company records such as profit contribution reports from each division, along with information about enabling technology that could be used by any business unit ready for change or not considering a technological upgrade.

The company’s strategy was to focus on core competencies and not get distracted by short-term incentives. Unfortunately, this caused a problem with how salespeople were being supported. It became especially difficult when different divisions had different goals after discounts or rebates.  Some only wanted more profits, while others only cared about market share based on their own identity within the industry. 

The result? Sales representatives felt left out since they couldn’t measure profitability relating to any changes made from one period compared to another. There wasn’t an overall picture, so they didn’t always know if their efforts were successful.

To understand the granular effect and predict changes in compensation for highly productive employees, we modeled SMQT Construction’s financials individually. This allowed us to see how different models could impact specific people with varying productivity levels.

A 2011 study found that when human resource professionals consider factors such as age or education level and job responsibilities, there is significant variation among workers’ earnings. Considering these differences before calculating annual salaries allowed them to make fair adjustments and retain top talent through increased wages.

In a move that should increase profitability, we recommended SMQT Construction’s new rate structure and compensation plan. The short-term inclusion of gross margin metrics was also included to encourage vendors to shift toward more profitable ones by tiering them on after discounts or rebates have been taken into account. This change fit with their objectives perfectly.

We knew that this would be a considerable undertaking, so we first prepared by mapping the process and assessing risks before identifying critical stakeholders for their input on how best to tackle such an ambitious task. Next came launching an aggressive marketing strategy to generate revenue from all those interested enough (and able) to buy into what they were offering.