Capability Value Map

Best Practice

Salesforce.com
Best Practice Overview

 It is important to define early in the program which metrics will be

monitored and how they will be measured, so that the benefits
achieved can be closely tracked. For example, progress on the
following business goals could be tracked with these metrics:
– Increase revenue by acquiring new, profitable customers: Percentage
Accepted Leads to Sale
– Increase revenue by retaining customers: Percentage Sales to Repeat
Customers
– Reduce costs by reducing sales costs: Average Number of Sales Calls
per Sale
 We have provided a template to assist in building your objectives
and how you will measure them as well as a value map to tie
business objectives to Salesforce capabilities.
Why complete a CVM?
Define and prioritize your business objectives

 Map Salesforce capabilities to business objectives

– Provide feedback to modify the CRM strategy and implementation
– Establish tools for change management
 Articulate definition of success
– Provide a way to measure results
– Set and gauge the level of success in meeting CRM objectives
 Hold individuals accountable for results
– Make mid-course corrections as necessary
– Create transparency regarding goals and progress at the macro and
individual level
– Eliminate the need for “oral history” and replace it with data on the
development of strategies and objectives
Capability Value Matrix Process
Tracking progress of vision and strategy
• Provide visibility to how the initiative is tracking against business goals
• Identify areas where program is not achieving business results and provide corrective actions
• Develop a single, consolidated list of program metrics used by all regions and user groups

Define KPIs
• Pick limited set of metrics
• Tie each metric to an objective
Define KP Is

Vision

ze
Strategy

a li
Objectives
Va

n
lid

tio
Validation Operationalize
a

e ra
• Audit data to create
tio

• Identify salesforce.com
credibility
Op capabilities
n

• Empower managers to
• Build, configure and deploy
change behavior and
application
business process based
upon reports/dashboards
results
 Capabilities Value Map Vision
Tie business objectives to Salesforce capabilities
Legend
Value Drivers Business Objectives KPI Capabilities
Marketing
Sales Marketing Campaign Partner Deal Competitor Data
Increase Revenue Acquire New Salesforce for Web-2-Lead/ Lead Lead Generation & Partner Lead
Service & Support Management & Google Adwords Collaboration Registration Management
Profitable Customers Assignment Rules Qualification
Measurement
PRM
Data-Insight
Customer Improve
Personalized Marketing Campaign Activity
Partner/External Increase Sales to Account Cross-sell and Segmentation
Grow Existing Customer Management & Customer Management Customer
Existing Customers Management up-sell Survey Customer Value Satisfaction
Force.com Platform Customers Interactions Measurement Management
Planning

Account Incentive Opportunity

Increase Retention of Customer Self- Salesforce Personalized Customer CTI Program SLA
Customer Retention Management Pipeline
Existing Customers Service Ideas Customer Survey Integration Management Visibility Management
Planning
Interactions
Revenue
Generation
Improve Sales Consistent Sales Automatic Salesforce
Product Configuration, Team Partner Lead
Customer Profitability Salesforce Account Mobile/Offline/
Effectiveness Methodology Competitive Content Intelligence Pricing & Quoting Selling Collaboration
Information Outlook Connect

Avoid Strategic Force.com Platform Compliance Salesforce to Workflow Engine/ SAP/Oracle Sandbox Salesforce Center of
Cost Avoidance Salesforce Connect
Project Costs Approval Workflow Ideas Excellence
Cost
Savings
FAQ &
Reduce Business Infrastructure & Project Centralized Marketing Sales Process Service Process Expense
Cost Reduction & Escalation Knowledge Management
Operation Costs Hardware (Force.com) Management Encyclopedia Consistency
Database
Automation

Remove Risk of
Maintenance Risk Force.com Platform Salesforce Applications AppExchange
Legacy Platform Use
& Releases
Risk
Mitigation
Reduce Risk from
Regulatory Risk Audit & History Usage Patterns Workflow Engine/ Data Quality
Regulatory Compliance
Tracking Approval Workflow Dashboards

Improve Customer
Customer Satisfaction Customer Self- SLA Product Configuration, Sales Process Contact Data Customer Survey Personalized Customer
Interactions & Insight
Service Management Pricing & Quoting Consistency Management Interactions

Satisfaction
Custom Interface Online Product &
Improve User Microsoft Integration Competitor Data Account Data
Services Mobility Reports & Analytics
User Satisfaction with Visualforce Management Management
Interactions information
Best Practices
Use a Capability Value Map to prove the business case

 Objectives - Define and prioritize

– Focus on business objectives (drive more revenue, sales rep productivity, retire existing apps, etc.)

 Design KPIs / Metrics - Quantifiable measurements agreed upon in advance

– All business behavior can be measured
– Quantifiable measurement indicates if business is making progress toward goals and objectives
– KPI’s bridge the gap between business objectives and Salesforce capabilities/roadmap

 Operationalize - Mechanisms for tracking and viewing progress

– Translate objectives into actual Salesforce capabilities
– Configure and build application based upon capabilities
– Deploy Salesforce dashboards and reports designed to capture measurements

 Validate – Is the data telling you what you expect

– Identify who owns the data in the reports and dashboards
– Empower people to change business processes based upon the data
– Embed a discipline of dashboards/reports into the management process
– Be candid and pragmatic about what the data tells you
– Interpret KPIs/metrics to drive behavioral change
Worksheet Example
Best practice – create a business value matrix

Behavior How to Measure

Business Ease of Readiness
Value Driver Changes that the Behavior Definition Priority Source
Objective Capture for Capture
Lead to Outcome Changes – Metric
Percentage of
Increase sales to % of Accepted leads accepted Not
High Low SFDC
new customers Leads to Sale that have been Captured
Acquire New closed
Profitable Percentage of
Customers Increase number of % of Sales to New sales associated Not
High Low SFDC
new customers Customers with new Captured
customers
Increase Sales Generated Percentage of Not
Increase up sell High Low SFDC
Revenue Up sell deals with up sell Captured
Percentage of
Increase
Increase sales to % of Sales to sales associated Not SFDC &
Retention of High Low
existing customers Repeat Customers with repeat Captured Oracle
Existing
customers
Customers
Measure repeat
Increase repeat Repeat Purchase Not SFDC &
purchase deals High Low
purchase rate Rate Captured Other
against all deals
Increase number of Average Number of Average number of
deals managed by Deals per Account active opportunities Medium Low Captured SFDC
Reduce
each user Manager managed by AM
Business
Cost
Operation
Reduction Average Number Average number of
Costs Reduce number of
(Sales) of Sales Calls per calls made per Medium Medium Captured SFDC
sales calls per sale
Sale closed opportunity