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Master's thesis research plan

Master of Business Administration

International Business Management

Ludmila Orlova

INTERNATIONAL SALES TEAM IN AGILE SOFTWARE DEVELOPMENT COMPANY

- how to organize, manage and implement measurable efficiency criteria

CONTENT

1 INTRODUCTION 3

2 OBJECTIVES OF THE RESEARCH 5

3 PREVIOUS RESEARCH AND LITERATURE ON THE TOPIC 8

4 DATA COLLECTION METHOD 9

5 SCHEDULE OF THE WORK 10

REFERENCES 12

1 INTRODUCTION

Already since 1950’s software development companies started to look for a

methods to organize their work. In 2001 Agile manifesto (Beck and others,

2001) was published and since then there was a great number of research,

books and other material done by thousands of researches and enthusiasts.

Most of the business models in our days use OODA loop (Observe, Orient, De-

cide, Act), as a natural basis behind canvas (such as LEAN canvas as one ex-

ample) and strategic decision making. Commonly used term for such approach

is Agile, however definition of it is very complex and varies from the context.

The main areas where this approach is investigated and applied the most are

manufacturing and software development. Over the last ten years Agile Meth-

ods have reached the mainstream: according to a Forrester study, 35% of the

respondents stated that agile most closely reflect their development methods

(West & Grant 2010).

Picture 1 Process model of a Responsive Organization by Michael Hugos, 2008. Source (Hugos, 2009)

Discussions come related to scaling agile principles to the whole organization

and applying it for different disciplines. Definition of the company shifted from

structured by hierarchy unit to complex matrix type media, with no clear bor-

ders. A continuous learning environment fueled by round-the-clock customer

insight and feedback demands teams, environments, decision-making struc-

tures, and funding models that exhibit the true meaning of the word agility —

resilience, responsiveness, and learning (Gothelf 2014).

Basic principles of agile and scrum software development state that developers

should be able to be in close contact with the end customers. The role of prod-

uct owner, or in certain cases business owner, define a person who keeps close

contact with customer, collects information about needs and gives priority for

development tasks using different techniques. This fits perfectly the needs of

small companies, when there’s only a limited number of customers. Scaling of

agile principles for larger companies needs to include several scrum teams and

was researched thoroughly by many works related to computer science and

management of software development.

Picture 2 Example of simplified structure of agile software development. Source: https://www.cprime.com/resources/what-is-agile-what-is-scrum/

The main question I’d like to research in my work is how to manage the connec-

tion between the development and the sales teams, how to link software devel-

opment with sales operations and how to manage sales team with regard to

agile software processs in the company.

My case study is a company that operates globally and has an international

team handling sales and being in close touch with the clients and prospects,

while still having one product owner for each product in the portfolio and a typi-

cal agile software development structure.

2 OBJECTIVES OF THE RESEARCH

Agile development process expects to have connection with the business needs

through the person with the roles of “product owner” and “business owner”. In

case when business portfolio consists of several products, each targeted to dif-

ferent business segment, however interrelated technically with each other, it

becomes complicated. When business needs are driven by sales teams, the

question arises how to link knowledge about customers and needs accumulated

by sales team with product and business owners.

I’d like to focus on the connection between software development and sales

team, for company operating globally and having hundreds of customers. In this

case it is not possible to keep effective role of one person – product or business

owner who would be in touch with end clients. As well as in case of several

products in the portfolio the question arises how to manage it.

Big part of the research concerns management of sales networks. For the com-

pany operating globally, network would consist of own sales people, located in

the main office, own sales people located outside the main office, local partners

and agents. How to build such a network to ensure achievements of strategic

goals? What kind of operational structure is required to have measurable per-

formance criteria for such teams? Should each sales person have own area

where he or she would sell all the company’s products or should there be sepa-

rate persons in charge of one product and operating in crossing areas? Is it

possible to employ scrum work methods for sales activities? All these questions

need to be addressed and answered in the research work.

This topic is a part of agile/lean enterprise definition with the research focus on

management of sales team taking into account agile software development pro-

cess in the company. Lean thinking changes the focus of the management from

optimizing separate technologies, assets, and vertical departments to optimizing

the flow of products and services through entire value chains that flow horizon-

tally across technologies, products and departments to the customers.

Main research questions of this work are:

- define what does it mean – international sales team and net-

work

- how to build and manage such networks with regards to com-

pany’s overall strategy and strategic investments

- how to align sales team activities with agile software develop-

ment

- how to implement measurable characteristics of sales team per-

formance

- how to integrate sales network management into agile enter-

prise

Main objective of the research is: to explore connection of international sales

team to agile software development and ways to manage sales network with

measurable efficiency criteria.

Structure of the work presented in Table 1.

Analysis of the research would be based on strategic point of view and opera-

tional point of view. Parts of the strategic analysis would address how to align

strategy and sales network, how to ensure investments in local network to meet

strategic goals of the company, how to implement strategy and ensure sales are

driven by it. For the operational point of view following aspects need to be ex-

amined: knowledge management inside the company, operational processes of

the company, connections between software development and sales from agility

point of view, measurable performance control system for the sales network.

Limitations of this research are as follows:

Theoretical overview and analysis can only be applied for agile software devel-

opment SMEs, with B2B products, operating globally, and using consultative

value based selling methods.

Empirical part and findings applies for the particular company processes and

needs, since the research is done as a commissioning research work.

Introduction:

•background of the research and objectives

Previous study:

•literature overview, agile principles, agile software development, building and management of sales networks, measurable criteria for sales activities

Empirical case study:

•overview of the case company, comparisions with theoretical research

Findings:

•answers to research questions found, recomendations for case study

Conclusion:

•correspondence of the case with theory, suggstions for future study

3 PREVIOUS RESEARCH AND LITERATURE ON THE

TOPIC

There are great number of research works and books on both topics – agile

software development and management of sales teams. Topic of my research

is related to both with focus on international sales team management and is

closely connected with agile enterprise.

Following literature was preselected:

1. Wollan, R, Jain, N, & Heald, M 2013, Selling Through Someone Else : How to Use Sales Networks and Partners to Sell More, John Wiley & Sons, Somerset, NJ, USA.

The book present Agile selling model with emphasis on utilizing sales networks

and distribution ecosystem. It covers subjects of building sales networks, selling

strategy and core components of agile selling enterprise.

2. Jeffrey Pfeffer 2009. Incentive Problems in a Software company. Case study, Harvard business review.

Case study with focus on sales compensation system in software company in

b2b field and its impact to sales performance.

3. Ian I. Larkin 2011. Arck Systems. Case study, Harvard business review.

The cases illustrate the trade-offs inherent in incentive plans and presents a

framework for the design and management of incentive systems.

4. Palmatier, GE, & Crum, C 2002, Enterprise Sales and Operations Plan-

ning : Synchronizing Demand, Supply and Resources for Peak Perfor- mance, J. Ross Publishing, Incorporated, Boca Raton, FL, USA.

The book provides the business context of synchronized decision making and

an integrated business management process. It focuses on business process

as a main tool for management to achieve growth results.

5. Thamhain, HJ 2014, Managing Technology-Based Projects : Tools,

Techniques, People and Business Processes, John Wiley & Sons, Incor- porated, Somerset, NJ, USA.

Books address management and resource planning for technology-intensive

business environments. It contains good overview of project management tech-

niques, including agile methods, for projects, processes in the company, collab-

oration between teams, risks and uncertainty and knowledge mapping.

6. Maarit Laani, 2012. Agile methods in large-scale software development

organizations. Applicability and model for adoption. Academic disserta- tion, University of Oulu.

Work present thorough research of agile models and applicability of these for

organizations with focus on software development management. It would give

good source of information on how agile software development works and what

could be expected from agile background of the organization.

4 DATA COLLECTION METHOD

The research is qualitative, primary data will be collected via direct participant

observation, examination of available materials, such as company’s vision, mis-

sion, strategy, work instructions, minutes of meetings and other. Permission to

use this data on confidentiality basis is granted by senior management.

Main challenge in primary data connection concerns closeness to the organiza-

tion and process. It would require strict control over the data to exclude person-

al opinion and emotions. Probably the most important issue for insider re-

searchers, particularly when they want to remain and progress in the organiza-

tion, is managing organizational politics (Saunders 2009, 328).

The subject of this study matches with the situation where the case study ap-

proach is the most practical approach. The study investigates a contemporary

phenomenon with in its real-life context (Yin 1988).

Table 2 Advantages and disadvantages of participant observation. Source:

Saunders 2009 p.330.

Secondary data will be taken from yearly HR survey. HR survey present struc-

tured questionnaire concerning wide range of questions about wellbeing at

work, operational process issues and other topics. Data is collected yearly

company wide and for each department separately. It could reveal gaps in

company processes and areas for improvements.

5 SCHEDULE OF THE WORK

Work was started in October 2014 with selection of the topic and finding re-

search questions. Topic was discussed with the company and selected on the

basis of usefulness for the current challenges faced by the company. It fits one

of strategic themes – “improvement of sales and marketing process and man-

agement”.

Parallel with refining research questions and structure of the research, I will

make a review of available literature and collect data during January – May

2015. Collection of material will be done, mostly by observations, interviews and

analysis of secondary data received from HR survey.

Table 3 Time schedule of the research work

REFERENCES

Literature

Gothelf J., 2014. Bringing Agile to the Whole Organization. Harvard business review

Larkin Ian I. 2011. Arck Systems. Case study, Harvard business review.

Laani Maarit, 2012. Agile methods in large-scale software development organizations. Applica- bility and model for adoption. Academic dissertation, University of Oulu.

Saunders Mark, Philip Lewis & Adrian Thornhill 2009. Research methods for business students.

Palmatier, GE, & Crum, C 2002, Enterprise Sales and Operations Planning : Synchronizing Demand, Supply and Resources for Peak Performance, J. Ross Publishing, Incorporated, Boca Raton, FL, USA.

Pfeffer Jeffrey 2009. Incentive Problems in a Software company. Case study, Harvard business review.

Thamhain, HJ 2014, Managing Technology-Based Projects : Tools, Techniques, People and Business Processes, John Wiley & Sons, Incorporated, Somerset, NJ, USA.

West D. & J. Hammond 2010. The Forrester Wave: Agile Development Management tools. Forrester Research

Wollan, R, Jain, N, & Heald, M 2013, Selling Through Someone Else : How to Use Sales Net- works and Partners to Sell More, John Wiley & Sons, Somerset, NJ, USA.

Yin R. 1988 Case study research: design and methods. Sage Publications.

Electronic sources

Beck K. and others, 2001,Agile Manifesto [online, referenced 03.12.2014]. Available on the web at: http://agilemanifesto.org/

Hugos M. 2009. Strategically Focused, Tactically Responsive. SIM Chicago Chapter. Center for systems innovation. online, [referenced 03.12.2014]. Available on the web at http://www.sim- chicago.org/files/Strategically%20Focused%20Tactically%20Responsive.pdf

Example of simplified structure of agile software development online, [referenced 03.12.2014]. Available on the web at : https://www.cprime.com/resources/what-is-agile-what-is-scrum/