Aria Planning SolutionsEssay Preview: Aria Planning SolutionsReport this essayCase Questions1. What are the organizational and operational issues that underlie the problems facing BPS?* Baria Planning Solutions (BPS) is a publicly traded firm that helped its customers reduce costs through a combination of software, data analysis, project management, and consulting. BPS which initially served the U.S. energy sector exclusively, had survived by expanding its industry coverage and capabilities through the acquisition of other narrowly focused industry-niche providers. In 2007, BPS acquired a firm that primarily served the government sector, including federal and state agencies and some large municipalities and nonprofit organizations. In 2008 BPS acquired two more firms, one serving a range of manufacturing companies and another that primarily served the retail sector.
2. What role do you believe BPS played in the U.S. energy markets? A recent study by PricewaterhouseCoopers found that the sector is a growth industry and is poised to add almost 200,000 manufacturing jobs over the next ten years, increasing the total U.S. power sector by nearly half. BPS also helped lead the shift in electricity prices from subsidized to subsidized prices, an approach that changed U.S. consumers’ behavior. At some point, you believe BPS helped to shape the energy market and set this economy on a course for prosperity of the future.3. What is your view of the U.S. energy crisis?
The recent energy crisis has created a void in the U.S. government’s energy plan. I believe that there can be no greater challenge for the U.S. government than to focus on addressing the energy crisis in a way that provides the best possible long-term outcome for all of our people and their health and future. I also believe that the failure of a single-payer health care system will create massive waste of time and money. My view is that the U.S. health care system and its ability to serve everybody, and the energy sector must focus on growing our economy and providing better health care for all Americans.
The U.S. is about more than the United States economy, it’s about living it. We’re a democracy, and while the two sides of the ideological aisle have agreed on what has and hasn’t worked out successfully, I believe our fight may be the beginning of a revolution that will help our country move in the right direction. The U.S. energy sector is one of just a handful of industries in the world that have benefited from BPS. The energy sector is one of the least well-served ones in the world, with fewer than 300,000 full-time workers. It’s also home to several major players in the energy sector. I believe that America’s continued reliance on the energy sector benefits not only our economy, but in other parts of the world as well, as well.4. What kind of government plan is the U.S. government willing to take?
A recent Pew Research Center report found both Obama and Clinton will have to put together plans and support to meet the goals outlined by BPS in order to put in place the most effective government programs that create strong economic gains for the American people. Clinton proposes a national energy strategy that emphasizes energy production over energy use, by focusing on large-scale investment. By focusing on major energy development like nuclear expansion, renewable energy development, and biofuels that are the most important components of this strategic approach to reducing the cost of living, this country’s overall energy use growth rate will be better realized.5. How will the President and Administration design a national strategy to address the energy crisis?
As I’ve explained before, President Obama has a responsibility to work with Congress on a national energy strategy that would put in place a national policy framework that fully reflects the national interest and values. Obama’s vision is one that recognizes that all Americans, both working and retired (and also younger than 65) should have the opportunity to work to grow their wealth, make their lives better, and have a health care experience that prepares their children for the future. But I also see a need to establish a new National Policy Framework that would address issues such as the use of
* While BPS initially allowed the acquired firms to continue operating semi-autonomously, the company had since worked hard to integrate parts of each operation where synergies could be achieved. While all four firms provided solutions that addressed the same types of customer needs, the similarities ended there. In addition to serving different industries, the firms had entirely different technology platforms, service delivery processes, and even different fiscal year end dates. Most of the pressing integration work was complete by the end of 2009, although some technology migration projects were still in the works. By 2010, BPS commanded a respectable 18% share of the market, but in a highly competitive market BPS could not afford to lose any momentum in sales growth.
* Although BPS served customers on a global scale, its direct sales force focused on companies in North America. As a result the North American Sales organization was focused on driving new sales and renewing existing contracts in North America. The North American Sales organization was structured into the following three groups:
i. Salesii. Sales Operationsiii. Sales Support* The Sales group, led by Chuck Dee, has four units organized by the four major industry sectors that BPS serves:iv. Energyv. Governmentvi. Manufacturingvii. Retail and Other* The Sales Operations group, led by Jane Albright, was responsible for the following areas:viii. Competitive Intelligenceix. Win-Loss Analysisx. Sales Trainingxi. Staffingxii. Managing the sales force compensation plan* Albright and Dee were sometimes at odds over how the sales force should be structured. Dee felt that all of the teams in the Sales Support group should be aligned by industry sector. Albright believed that such a structure would require a large increase in staff.
As a result Albright had successfully lobbied for the current hybrid organization of the Sales Support Group.* Albright helped streamline the Sales Support group, consolidating some sales support functions into teams that served all industries and leaving one function, Proposal Support, with staff dedicated to each industry. The current Sales Support group structure is as follows:
xiii. Data Engineeringxiv. Data Analysisxv. Proposal Supportxvi. Pricing* This type of structure did appear to be unique in the market, thus allowing BPS to distinguish itself from other mid-sized competitors through a deeper understanding of industry-centric issues, and put the firm in parity with small single-industry and large diversified competitors.
2. What factors contributed to the companys decision to organize the sales team by industry? What factors contributed to the companys decision to organize the sales support group in a hybrid structure? What aspects of the sales process are most valued by customers?
* In Brandon Alis email to Christy Connor he felt they had serious problems with their win-loss rate for the 2010 calendar year. Of the 217 qualified new sales opportunities that arose in 2010 the win rate is projected to be at around 15.5% with the goal being 17.5%. Another thing he noted was how they has consistently achieved a renewal rate of between 91% and 92% in years past, but in 2010 they were at 84%. He also noted that sales group directors were complaining that sales people dont get the timely assistance they need because they are only partly organized along the same industry. This has led to the sales people missing proposal deadlines for several opportunities causing customers to have a diluted impression of the companys abilities.
* After BPS completed its string of the acquisitions the firm was undertremendous pressure to get costs under control. Yet, at the same time they knew it was imperative that they maintain an industry-centric, consultative sales process. Sales support staff should be aligned by industry sector to effective provide dedicated support for the sales group. They needed to stream line the sales support staff into industry specific expertise divisions. Effectively balance staffing constraints against the requirements for the industry.
* Customers placed the most value on the accuracy and response times involved in the sales process. With the unprecedented growth in the business solutions market competition, customers began demanding greater assurance that any solution provided would be ascertainable. The customer was also extremely specific when it can to a solution deadline. They needed the proposal when they needed it without delay. If the team could not meet the strict deadline they needed to drop out of the running instead of wasting time.
3. What alternatives are available for dealing with problems in the sales support group? How did you evaluate the alternatives? What actions should Christy Conner propose to Brandon Ali?
* Based on the data for the 2010 performance of the Sales Support Group, the win-loss ration dropped to 15.5% based on the 271 qualified new sales opportunities. This is a significant drop from the 17.5% that was forecast for