Company Overview

Qualitrol Corporation is a leading provider of online condition-based monitoring technologies

and services, offering comprehensive solutions for electrical substations assets starting from
basics sensors, advanced monitors, and enterprise-level software, providing data analysis and
smart reporting.

Qualitrol is headquartered in New York, USA, and employs around 1,000 associates. Qualitrol
operates on a global level with manufacturing facilities across the world, accompanied by
research and development facilities in more than 8 locations across the globe.

Brief Introduction:

The analysis focuses on the Middle East ME, which operates through a regional office located in
Dubai. Qualitrol local team strives and built strong partners network, who contributed to
growing the business side by side with the regional sales team. The primary role of the sales
team is to generate opportunities throughout frequent customer visits to create market
demand, capturing tenders, and follow-up and negotiate deals closure with customers. All of
this should be logged in to CRM software. The company uses “SalesForce” to log all
opportunities, account information, and financial data.

I have initiated, prepared, and executed a Kaizen workshop. The below analysis illustrates
intensive analysis in the workshop with maximum utilization of pre-work data collected to apply
course concepts/theories and acquired skills.
The Challenge is on sales operations, and in specific it is in the funnel. The dilemma is
addressed as “ME funnel strong, but it is not converting.”
Other problems are related to the utilization of some hazard materials and non-
environmentally friendly solutions/components. This topic will be discussed and analyzed in
the last part of the recommendations.
Even though the ME sales team made some growth in 2019 compared to 2018 and 2017, a
consistent problem is arising. The problem is in creating and building up the sales funnel, which
appears strong, but it is not converting to increase the win rate.

There are different approaches available to improve processes within organization operations,
the DIVE/DMAIC model has been followed in this case for its clear steps and high impact on
successful problem-solving process PSP.

DIVE (Define, Investigate, Verify, and Ensure sustainment):

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1. Define (Define and Measure)

1.1. Define the scope (fishbone diagram)

1.2. Define the tree. Cause-effect
1.3. Define the problem statement

1.1 Define the scope: Deep Dive (Analysis):

To cover essential aspects applying different theories and concepts while trying to highlight
main root-causes for not converting enough funnel, below (fishbone diagram) describes the
different reasons causing this problem. The importance of this diagram is to categorize types of
root causes groups to enable us to understand the drivers and effects of these causes, prioritize
them to make it easier to reach the proper solutions.

Sales Team Funnel in CRM SFDC

Channel Partners Inaccurate Funnel (Duplications/Values)

Product and sales training
Opportunities with non-friendly solutions
Lack of some skills Proper funnel reviews

Not following the process Shortage of territory coverage No funnel visualization

Not converting
enough
Opportunities
County Economy
Strong Competition Price/Promotions
Quality issues and
CSR
Customer Service Operations
Budget Constraints
Project Account engagement
execution/ Deviations from specs
OTD Channel Partners Product Integration issues and Limitations
Hazards Materials

Market and Product and Services

Customers

Figure (1): Fishbone diagram

1.2 Define the tree model.

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 Figure (2): Tree Model (Cause-Symptom)

During the Define stage, three specific steps are leading to the output of an agreed-upon
Problem Statement:

Gathers information at Gemba (ME key countries). The main statement is “what problem we
are trying to solve.”
Formulates (TAGS- Trend (flat similar to 2019), Actual, which is the base of funnel conversion,
Gap, and Standard (%).
Identification of which aspects of our problem are caused versus created.

1.3 Define the problem statement

Problem Statement
“MEA funnel conversion rate forecast at 40% ($0 conversion order increment potential)
versus a target of 60% ($7.5m conversion order increment potential) with a gap of 20%
($7.5m) and the trend is flat”. (Figures percentages are derived from the below analysis).

Historical data has been taken as raw data for our measurement and the next stage of analysis.
The funnel data is presented in the Appendix. Applying Problem Solving Process PSP to get to
the root cause to ensure that we are developing countermeasures CMs to address the root
cause, not just the symptoms.
Won opportunities
Conversion Rate=
Won+Cancelled+ Lost opportunites
Won opportunities
Win rate=
Won+ Lost opportunites

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Considering more in-depth analysis of canceled opportunities makes our goal much reasonable
and challenging because canceled opportunities are contributing to the size of the funnel, and
most importantly, the sales team tends to report the opportunity as canceled instead of lost to
avoid circumstances. Moreover, the hypothesis of getting those opportunities live again is high.

2. Investigate (Analyze)

2.1 Pareto Level 1 (where the problem happened 80/20)

2.2 Pareto Level 2 (why the problem happened)
2.3 Voice of Customer VOC insights (Emotional, Social, Functional)
2.4 Investigate multiple WHY’s and Root cause.

2.1 Pareto Level 1 (where the problem happened)

By breaking down the Problem: Where is the impact concentrated?

Using funnel analysis for the past three years (Refer to the Appendix), we extracted the
converted/closed funnel (won, lost, and canceled), then calculated the conversion rate and
applied a similar scenario for 2020. The result was 40% (the zero (0) reference), assigned a little
stretch and challenging target to increase it to 60% with a gap of 20%.
Applying two levels of Pareto’s (where is the problem and why it is happening).
Created an equation to get the dollar value of the gap for the most impactful countries, the 20%
increment funnel conversion is equivalent to $7.5m. Throughout the process, based on new
learning, it keeps revisiting earlier stages to evolve and revise the previous understanding, and
kept changing the formula to get the right and logical figures in place. Saudi, UAE, and Oman
form 90% of where the problem is.
The first three columns are known, the rest are calculated based on a 60% target for increment.
Potential Conversion Rate=% Target Increment −Conversion Rate
No. of deals∗PotentialConversion Rate
Number of Incremental Deals=
Conversion Rate
Potential Incremental Closing=Number of Incremental Deals∗Average Deal Value

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 Table (1): (Pareto calculations/country)
The current year 2020 shape shows how our current funnel is strong, hence it gives us a line of
sight on how incremental potential can be achieved if we enhance the sales operation process.

Figure (3): First Pareto: Where is the problem

2.2 Pareto Level 2 (why the problem happened)

Throughout this Kaizen process, we have identified the Top 4 Root Causes and the estimated
assumptions on the dollar value impact per top three countries per root cause.

• Account/Customer Engagement and insufficient relationship

• Customer Services/Support (Quality and speed of service)
• Channel Partner engagement
• Lack of Funnel Impact

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 Figure (4): Second Pareto: Why - What is causing the miss

2.3 Voice of Customer VOC insights (Emotional, Social, Functional)

By running around 13 VOC’s, below is a rich summary of the Top Gemba Insights:

• Market/customers demand more focus.

• Lack of Communication – we do not respond to the customer on time, which had a
bigger impact.
• Local Presence of sales, field services, and factory personnel affect results.
• Project Execution – common feedback from the customers on Delays in deliveries,
quality, documentation, drawings, and project sign off cycle.
• Price does matter – there is a wide range from the initial quote to the final price, and
this is troubling and causes loss of business.
• Channel Partners are not well trained and do not know how to beat the competition.
• Consider the environment-friendly solutions, difficulties in procuring dangerous goods
(Helium and Calibration-Gas), and complications in the disposal of some consumables
and containers/enclosures.

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 2.4 Investigate multiple WHY’s and Root cause.

Figure (5): Why-Why root cause analysis

3 Verify

3.1 Verify countermeasures CMs & prioritization (Impact matrix)

Verified the countermeasures that came from the Why-Why analysis of the root causes and
then developing an action plan required to meet and achieve these countermeasures; verify
countermeasures assumptions and experimentation. While evaluating possible CMs, the ease
of implementation and simplicity being considered.
Below representation of the impact matrix, which directs us to choose and work on the most
impactful and easier to be implemented.

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 Figure (6): Verification/Impact matrix
Improvements and Recommendations

During the verification and the analysis of the sales process of the funnel, an observation of
wastes (Muda) have been identified related to the below:
a) Entering market opportunities into SFDC by the sales team.
b) Qualifying the leads by marketing cold calling team and entering an estimated
opportunity value.
c) Funnel management.
d) Converting the funnel into success and forecasting to the management based on funnel
data.
The funnel misguides us and leads to wrong forecasts and budget planning.
After going to “Gemba” and running a live simulation, the analysis led to eliminating the
“Muda” as follows:
a) The value of market opportunities is exaugurated; the sales team should reflect the
expected closure pricing, which was, on average, 25% less from budgetary pricing.
b) Many opportunities entered by the cold calling team are not qualified or overpriced —
the leads generated by the marketing team to be qualified by the sales.
c) No funnel visualization is available, considering Visual Management/Daily Management
VM/DM of the funnel can improve the sales effectiveness and lead to trigger early
alarms on funnel conversion.
d) Eliminate the duplication of sales opportunities between team members for cross
territory projects. The above VM/DM will help in eliminating this waste.

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 Commercial team to
Sales log new
SFDC admin to review generate quotation
oportunity in SFDC
and adjust the value and put proposal
with estimated value
value in SFDC

Sales to acknowledge Order in average 30%

Close: Won, Lost,
the proposal with less than initial
Cancelled
budgetary value commercial proposal

Figure (7): Old SFDC New Opportunity log process

Short term (immediate impact) steps and changes in process are followed:
There is (Over Processing), duplication, and unnecessary steps that can be reduced or even
eliminated. Below representation of the new process with minimum waste and maximum
efficiency. In addition to this, the admin station was a bottleneck, RFQ’s stays (Waiting) with
admin for long to assign a budgetary value then goes automatically to the proposals team.

By implementing the below-simplified process, we are going to serve customers faster, and our
funnel accuracy (fewer defects/deviation) will be much better.

And finally, the best utilization of the skills in the right place. The marketing team can log in the
opportunity without assigning dollar value, while the sales team should acknowledge (approve
or reject) and assign it to the proposals team if it is a qualified lead.

Sales to accept the

Commercial team
Sales log new proposal and log
to generate
oportunity in SFDC the price less 25-
quotation at full
without value 30% (expected
price
closure)
Figure (8): Simplified workflow- New SFDC New Opportunity log process

Eco-effectiveness for our Products and Operations:

An integral part of considering the environment-friendly solutions is always part of any

successful organization which cares for the environment and the next generations. The
company has a “Conflict Minerals Policy.” Our R&D is continuously developing new designs that
support “Cradle-to-cradle design” (3), they are monitoring and considering difficulties in

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procuring dangerous goods (Helium and Calibration gas) and complications in the disposal of
some consumables and containers/enclosures.
Some departments are heading into plastic-free components, interestingly even in the usage of
refillable glass water bottles instead of plastic ones.

Action Plan and Additional Recommendations:

1. Build and develop an Account Plan for the top ten key customers per country (Saudi,
UAE, and Oman) to improve the engagement.
 Identify the top ten customers in Saudi, UAE, Oman, and derive the historical key
issues.
 Assign account ownership and enhance response time.
 Increase Face time (Sales, Technical support, and leadership).
 Initiate annual letters (updates, contacts, escalations, and seasonal greetings).
 Dedicate local customer service personnel.
 Offer seasonal concessions (extended payment terms, discounts, field service
support, and extended warranty).

2. Develop Channel Partner strategy to drive growth, enhance CP management.

 Training: Start with online training and enforce factory training.
 Establish opportunity review calls and exchange funnel updates.
 Leverage the channel partners in regional events and create awareness on
ecosystem friendly solutions.

3. Improve DM/VM to drive efficiency, work with the leadership level team to align the
organization's priorities with customer needs.
 Create and standardize dashboards for sales team since there is no funnel
visualization is available, Daily Management/Visual Management DM/VM is
essential.
 Use existing projectors/monitors instead of printouts (eco-efficiency).

4. Create an action plan to improve funnel conversion. Expand funnel management to

improve the quality of opportunities.
 Reinforce funnel management training.
 Intensify funnel reviews monthly with other departments.

5. Support the environment by re-Designing some of the products to reduce the negative
impact on the environment.
 Offer discounts on new parts if the customer returned the old faulty part. Most
of our products are made of steel, brass, copper, and Aluminum, which are
recyclable and reusable.
 Offer the re-filling of calibration gas instead of disposing of them.
 Find alternative of Helium-Gas required as a carries gas in one of our solutions.
The alternative exists but providing less accuracy. Hence, offer the customer the
option to select the proper solution (considering sustainability).
 Minimize paper documentations and offer electronic versions always.

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  Use Biodegradable silica-gill instead of the conventional type.
 Increase the utilization of solar cells to power small solutions/accessories.
 Initiate awareness sessions on ecosystems/greenhouse effects and link it with
our product enhancement and offers. The target is to save the environment;
however, this will enhance company image and business intake as well
(indirectly).

4 Ensure sustainment (Control)

 A bowler for the Kaizen and PSP should be generated; it should contain an action
plan and sub-actions, milestones, stakeholders, leader, progress record, and
visual management dashboards. This mechanism helps to capture and
communicate the progress and current state of the continuous improvement
work.
 The progress evolves, as the stakeholders from different functions evolve their
thinking and understanding, but the work is not the completion of this form; it
should result after problem-solving work has been done.

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 References
(1) Slack, N., Brandon-Jones, A., (2018). Operations and process management: Principles and
practice for strategic impact., 5th Edition Harlow, UK: Pearson Education Limited.
(2) Qualitrol Company LLC
https://www.qualitrolcorp.com/company/
(3) Braungart, M., McDonough, W. & Bollinger, A. (2007). Cradle-to-cradle design: creating
healthy emissions – a strategy for eco-effective product and system design. Journal of
Cleaner Production. Vol15.

Glossary

CP Channel Partner
CRM Customer Relation Management
CMs Countermeasures
DM/VM Daily Management/Visual Management
Gemba Evidence/The place where things are happening
Kaizen Continuous Improvement
ME Middle east
Muda Waste
OTD On-Time Delivery
PSP Problem Solving Process
SFDC SalesFoce.Com
SW Standard Work
VOC Voice Of Customer

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Appendix

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