presented by Jason Angelos of Accenture at the TrueConnection 2008 Sales Performance Management Conference, hosted by Callidus Software

1. Aligning Sales and Marketing Investments to Maximize Sales Performance October 13, 2008

2. Coming Out of a Recession Increasing Revenues is Top of Mind for Executives Source: CSO Insights, Sales Performance Optimization, 2006 70% 60% 50% 40% 30% 20% 10% 0% Other Decrease Discounting Reduce Administrative Burden Improve Communications Improve Team Selling Increase Channel Sales Effectiveness Improve Margins Reduce Sell Cycle Time Improve Customer Loyalty/Satisfaction Increase Market Share Increase Sales Effectiveness Increase Revenues Percentage of CEOs citing each objective as one of their company’s three most important.

4. Offerings are Increasingly Complex and the need for Value Oriented Selling is Placing New Demands on the Sales Force … 60% of organizations said the demands on building new skills in sales are increasing significantly. … 68% of organizations said the complexity of their product and solution bundles is increasing. Source: Gartner, Accenture research and CSO Insights … 40% of companies report taking 7-12 months to gain sales proficiency in new hires 10% 20% 30% 40% 50% 60% Service Focused % Gross Margin Product Focused Solution Focused Service margins become non-dilutive to overall earnings Time Product Business Margins Service Business Margins Total Margin How enterprises will compete 100% 50% 0% Percent Direct to Indirect Sales Focus Year 1990 2000 2010 Strategic IT Transactional Internal Departmental Operational Intraenterprise Collaborative Intra Extraenterprise Direct Sales Indirect Sales 15% 40% 65%

6. … and Many Companies’ Sales Processes Fail to Align with Their Customers 45% of organizations have no sales process that aligns to customers buying process 64% of CSO believe that sales management is not positioned across the sales process Source: Aberdeen Group, CSO Insights 68% experience a disconnect between the various processes on the sell-side 80%+ of organizations feel they do an adequate job of understanding their customers. However… As much as 9% of revenue can be lost due to poor sales side process alignment

7. The stakes are big In 2007, $100B+ was spent on sales coverage and commissions for the Global 1000. However, only 61% of the sales force are making quota. Cost of Sales Analysis

9. Copyright © 2008 Accenture All Rights Reserved. Fundamental Unit of Transformation Aligned and Consistent Customer Interaction Target Behaviors Leading to Performance Results = Business Result … Indirect Marketing Incentive programs for the Indirect Channel are growing at a torrid pace. Increased reliance on the Channel is moving enterprises to more of an influence selling model with diminished control and insight to POS. Sales through the Channel are moving toward more of an influence model.

10. Companies need to consider their full portfolio of investment levers to drive sales. Channel Partners Direct to Customer Mktg Sales (PAMs) CUSTOMER Purchase Decisions Customer Discounts Compensation & Sales Incentives Indirect Sales Comp & Marketing Incentives Routes to Market Investment Considerations Incentive Programs

12. Program Payments (in millions) FY05 Ptrs Enrolled: 146 FY06 Ptrs Enrolled: 219 FY07 Ptrs Enrolled: 303 $212M $837M $37M High Tech Case Study: Since its inception, marketing incentive program payments have increased by $800M (2,162%).

13. Revenue (in millions) Ptr Segment Client Revenue Payments as % of Client Sales At the same time, revenue has been growing 13-16% per year over the past 3 years.

14. Q4 FY06 Q1 FY07 Q2 FY07 Q3 FY07 Quarterly Payments (in millions) 2 Program administration has become complex, with partners receiving payments of 27% more than self-reported value of claims.