Hayden Lockley is the Federal Sales Manager for DataTrain, a small successful IT training firm strategically located just two blocks from the White House on G Street NW in Washington, DC. DataTrain has been providing IT and end-user training services to commercial and federal organizations since 1995. It has two sales teams. The Commercial team which is comprised of 4 commercial sales reps and the Federal team comprised of 3 government reps. Each rep has a well-defined territory Historically, DataTrain could count on the public sector for a third or more of its annual training revenues. Some of the firms biggest accounts include the Dept of Army, FDA, US Treasury, U.S. Coast Guard, etc. Unlike commercial accounts, federal agencies book large blocks of public and private training as well as classroom rentals months ahead of time... which, in turn, facilitates sales forecasting and facility planning.

Unfortunately, the tense political climate over the past several years has taken a toll on the local economy and the company. Continuing resolutions (CRs) and government shutdowns have almost become commonplace. Hayden noted that just in the past two years, the federal government witnessed 3 shutdowns: January 2018, February 2018, and the longest-running government shutdown Dec 2018-January 2019. Each time, DataTrain lost hundreds of thousands of dollars of federal business as months of carefully planned training events were suddenly canceled due to funding disputes in Congress. Unlike federal furloughed employees, private firms/contractors providing services to federal agencies do not get paid for canceled services. Cancellation clauses do not apply in a federal shutdown.

This loss of federal revenues has had a negative impact on the company. DataTrain was forced to let go two of its instructors scheduled to teach the canceled government classes. Its IT department had to push off updating a 30 PC classroom, and Hayden had to cancel his sales teams 1st Quarter 2019 bonus.

After discussing this issue with DataTrains President, Jacques Morin, a decision was made in January 2019 to encourage Haydens Federal sales reps (Lynette, Andy, and Mary Ellen) to target and close large commercial accounts currently not being serviced by the firms Commercial group. Hayden told his 3 sales reps they had 5 months to grow their commercial sales and by May 30^th, at least 30% of their Forecasted May sales should be commercially based (e.g., non-government).

Current Compensation Structure and Forecasting Method for Lynette, Andy, and Mary Ellen:

• Base Salary = $48,000/year
• Commission = 5% on all training services sold
• Monthly Sales Quota = $50,000 actual sold
• Quarterly Bonus: 10% on sales of over $150,000/quarter (starting 2^nd quarter)
• Current Forecasting Method: SalesForce Composite

Forecasted May Sales according to Hayden = Actual sales closed + projected training with a 75% or higher chance of closing in May.

Hayden currently uses the SalesForce Composite method to forecast monthly sales. He calculates this figure by taking each reps closed monthly sales and adding this figure to his/her projected training sales with a 75% or higher chance of closing in that month. These individual forecasts are then aggregated to yield an overall sales forecast for the month. Needless to say, Hayden has been monitoring his sales team closely for the past 5 months. However, after reviewing his groups May 2019 forecasts below, he became concerned.

1. Which sales rep(s) should Hayden be concerned about and why?
2. Which motivational strategies would recommend to Hayden to correct the issues found in his sales team?

May Sales Sales Rep: Lynette Days Totals Type Commerical Commerical Commerical Commerical Client Public Classes Sold Instructor QSR ACCESS 2010 INTERMEDIATE David M WTF OUTLOOK 2016 ADVANCED Terry L McGraw Hill ACROBAT X INTRODUCTION Linda B Smith & Johnson BUSINESS WRITING SKILLS Diego G $2,575 Days Totals Type Commerical Commercial Government Government Government Government Government Government Client Northrop Kirkland /Ellis BPD APA HUD FRB BEP EPA Private Classes Sold Instructor SECURITY PLUS David M SAP Web INTELLIGENCE Diego G CISSP @ $900/day Terry L SKYPE FOR BUSINSS $700/day Linda B OFFICE 2016 NEW FEATURES Darrel N TABLEAU 10 @ $1,185/day Willa F POWERPOINT 2016 ADVANCED Terry L OFFICE 2016 NEW FEATURES Ronnie B Amount $350.00 $650.00 $750.00 $825.00 Total sales from public classes Amount $14,500.00 $4,500.00 $6.995.00 $1,400.00 $850.00 $2,370.00 $995.00 $850.00 Total sales from private classes Amount $3,600.00 $3,600.00 $6,800.00 $3,500.00 $1,800.00 Total sales from lab rentals LEN $32,460.00 Totals Days Type Commercial Government Government Government Government Client DOJ State Dept State Dept EPA FDA Lab Rentals Sold MS Office 2016 New Features CON 120 - 0001AH Foreign Srv Off. Testing Accounting training Web based training Internal Notes 30 seat computer lab 30 seat computer lab 30 seat computer lab 30 seat computer lab 20 seat computer lab wa $17,500.00 Total Sales Closed for May = $52,535.00 Percentage to Close Commerical Commerical Government Commerical Commerical | Projected Training for May C&B LLP PRIVATE EXCEL 2016 BEGINNIN Sam K Latham/ Watkins PRIVATE EXCEL 2016 INTERME Elise J HUD PRIVATE PROJECT 2016 ADVA Mallery H Natl Assoc for chil MS Windows New Features for 3 John D Kirkland /Ellis MS Windows New Features for 3 Mallery H Total Revenue $995 $995 $995 $1,200 $1,425 50% 50% 80% 85% 90% Amount $497.50 $497.50 $796.00 $1,020.00 $1,282.50 Total = $4,093.50 May Sales Sales Rep: Andy Days Totals Type Government Commercial Commercial Client Dept of Ed Wash Post NAB Public Classes Sold Instructor PROJECT 2016 INTERMEDIATE David M ACROBAT INTROUCTION Diego G SHAREPOINT Willa F $1,420 Days Totals Type Client Commercial Baker Tilly Commercial Bechtel Corp Commercial Crowe Commercial Ernst & Young Commercial KPMG Commercial Bechtel Corp Government US Treas. Government US Treas. Private Classes Sold Instructor Security + @ $1,300/day Terry L SAP Web INTELLIGENCE @ $1. Diego G CISSP @ $900/day Temple TX Terry L SKYPE FOR BUSINSS $700/day Linda B Custom MS SharePoint Albuque Willa F SAP Web INTELLIGENCE @ $1. Dieqo G OFFICE 2016 NEW FEATURES Darrel N OFFICE 2016 NEW FEATURES |Darrel N Amount $350.00 11 $495.00 $575.00 Total sales from public classes- Amount $7,392.00 $4,125.00 $6,995.00 $1,400.00 $1,800.00 $4,125.00 $850.00 $850.00 Total sales from private classes Amount 5 $3,200.00 $3,200.00 20 $1,400.00 Total sales from lab rentals $27,537.00 Totals Days Type Government Government Government Client Airforce Airforce USDA Lab Rentals Sold ACEIT ACEIT MS Office 2016 Internal Notes 30 seat computer lab Mauter lab 30 seat computer lab 8 seat computer lab $7.800.000 Total Sales Closed for May = $36,757.00 Percentage to Close Type Commercial Commercial Client MTR MTR Projected Training for May PRIVATE EXCEL 2016 BEGINNIN PRIVATE EXCEL 2016 INTERME POC Gary W Gary W Total Revenue $950 $950 10% 15% Amount $95.00 $142.50 Government Government USDA USDA MS WINDOWS NEW FEATURE MS WINDOWS NEW FEATURES Jason M Jason M $1.200 $1,200 40% 95% $480.00 $1.140.00 M Total = $1,857.50 May Sales Sales Rep: Mary Ellen Type Client Public Classes Sold Instructor Days Amount Totals Commercial Government Government Clark Construction EXCEL 2016 PIVOT TABLES DOE EXCEL 2016 PIVOT TABLES DHS ACCESS 2016 ADVACED Darrel N Darrel N Willa F $1,565 Days Totals Type Government Government Government Government Government Government Government Government Client Private Classes Sold Instructor US Coast Guard OFFICE 2016 NEW FEATURES Darrel N DHS OUTLOOK 2016 & WINDOWS 8 Diego G US Coast Guard OFFICE 2016 NEW FEATURES Darrel N DHS SKYPE FOR BUSINSS Linda B US Coast Guard OFFICE 2016 NEW FEATURES Darrel N US Coast Guard WORD 2016 & WINDOWS 8 Willa F US Coast Guard CUSTOM MS ACCESS 2016 AD Diego G US Coast Guard OFFICE 2016 NEW FEATURES Willa F $495.00 $495.00 $575.00 Total sales from public classes Amount $7,392.00 $3,500.00 $7,392.00 $1,400.00 $850.00 $7,392.00 $3,125.00 $7,392.00 Total sales from private classes Amount $3,400.00 $3,400.00 $3,400.00 Total sales from lab rentals $38,443.00 Totals Type Commercial Commercial Government Client Lab Rentals Sold Clark Construction IBM 32B Clark Construction IBM 32BJ DHS MS Office 2016 New Features Internal Notes 30 seat computer lab 30 seat computer lab 30 seat computer lab $10,200.00 Total Sales Closed for May = $50,208.00 Percentage to Close POC Lee W Amount $110.00 10% Type Commercial Government Government Government | client Projected Training for May Clark Construction PRIVATE EXCEL 2016 BEGINNIN US Coast Guard PRIVATE EXCEL 2016 INTERME DHS MS WINDOWS NEW FEATURE US Coast Guard PRIVATE MS ACCESS NEW FE Total Revenue $1,100 $1,100 $1,200 $1,100 Lee W Heidi R Lee W 15% 85% 95% $165.00 $1,020.00 $1,045.00 Total = 1 $2,340.00 May Sales Sales Rep: Lynette Days Totals Type Commerical Commerical Commerical Commerical Client Public Classes Sold Instructor QSR ACCESS 2010 INTERMEDIATE David M WTF OUTLOOK 2016 ADVANCED Terry L McGraw Hill ACROBAT X INTRODUCTION Linda B Smith & Johnson BUSINESS WRITING SKILLS Diego G $2,575 Days Totals Type Commerical Commercial Government Government Government Government Government Government Client Northrop Kirkland /Ellis BPD APA HUD FRB BEP EPA Private Classes Sold Instructor SECURITY PLUS David M SAP Web INTELLIGENCE Diego G CISSP @ $900/day Terry L SKYPE FOR BUSINSS $700/day Linda B OFFICE 2016 NEW FEATURES Darrel N TABLEAU 10 @ $1,185/day Willa F POWERPOINT 2016 ADVANCED Terry L OFFICE 2016 NEW FEATURES Ronnie B Amount $350.00 $650.00 $750.00 $825.00 Total sales from public classes Amount $14,500.00 $4,500.00 $6.995.00 $1,400.00 $850.00 $2,370.00 $995.00 $850.00 Total sales from private classes Amount $3,600.00 $3,600.00 $6,800.00 $3,500.00 $1,800.00 Total sales from lab rentals LEN $32,460.00 Totals Days Type Commercial Government Government Government Government Client DOJ State Dept State Dept EPA FDA Lab Rentals Sold MS Office 2016 New Features CON 120 - 0001AH Foreign Srv Off. Testing Accounting training Web based training Internal Notes 30 seat computer lab 30 seat computer lab 30 seat computer lab 30 seat computer lab 20 seat computer lab wa $17,500.00 Total Sales Closed for May = $52,535.00 Percentage to Close Commerical Commerical Government Commerical Commerical | Projected Training for May C&B LLP PRIVATE EXCEL 2016 BEGINNIN Sam K Latham/ Watkins PRIVATE EXCEL 2016 INTERME Elise J HUD PRIVATE PROJECT 2016 ADVA Mallery H Natl Assoc for chil MS Windows New Features for 3 John D Kirkland /Ellis MS Windows New Features for 3 Mallery H Total Revenue $995 $995 $995 $1,200 $1,425 50% 50% 80% 85% 90% Amount $497.50 $497.50 $796.00 $1,020.00 $1,282.50 Total = $4,093.50 May Sales Sales Rep: Andy Days Totals Type Government Commercial Commercial Client Dept of Ed Wash Post NAB Public Classes Sold Instructor PROJECT 2016 INTERMEDIATE David M ACROBAT INTROUCTION Diego G SHAREPOINT Willa F $1,420 Days Totals Type Client Commercial Baker Tilly Commercial Bechtel Corp Commercial Crowe Commercial Ernst & Young Commercial KPMG Commercial Bechtel Corp Government US Treas. Government US Treas. Private Classes Sold Instructor Security + @ $1,300/day Terry L SAP Web INTELLIGENCE @ $1. Diego G CISSP @ $900/day Temple TX Terry L SKYPE FOR BUSINSS $700/day Linda B Custom MS SharePoint Albuque Willa F SAP Web INTELLIGENCE @ $1. Dieqo G OFFICE 2016 NEW FEATURES Darrel N OFFICE 2016 NEW FEATURES |Darrel N Amount $350.00 11 $495.00 $575.00 Total sales from public classes- Amount $7,392.00 $4,125.00 $6,995.00 $1,400.00 $1,800.00 $4,125.00 $850.00 $850.00 Total sales from private classes Amount 5 $3,200.00 $3,200.00 20 $1,400.00 Total sales from lab rentals $27,537.00 Totals Days Type Government Government Government Client Airforce Airforce USDA Lab Rentals Sold ACEIT ACEIT MS Office 2016 Internal Notes 30 seat computer lab Mauter lab 30 seat computer lab 8 seat computer lab $7.800.000 Total Sales Closed for May = $36,757.00 Percentage to Close Type Commercial Commercial Client MTR MTR Projected Training for May PRIVATE EXCEL 2016 BEGINNIN PRIVATE EXCEL 2016 INTERME POC Gary W Gary W Total Revenue $950 $950 10% 15% Amount $95.00 $142.50 Government Government USDA USDA MS WINDOWS NEW FEATURE MS WINDOWS NEW FEATURES Jason M Jason M $1.200 $1,200 40% 95% $480.00 $1.140.00 M Total = $1,857.50 May Sales Sales Rep: Mary Ellen Type Client Public Classes Sold Instructor Days Amount Totals Commercial Government Government Clark Construction EXCEL 2016 PIVOT TABLES DOE EXCEL 2016 PIVOT TABLES DHS ACCESS 2016 ADVACED Darrel N Darrel N Willa F $1,565 Days Totals Type Government Government Government Government Government Government Government Government Client Private Classes Sold Instructor US Coast Guard OFFICE 2016 NEW FEATURES Darrel N DHS OUTLOOK 2016 & WINDOWS 8 Diego G US Coast Guard OFFICE 2016 NEW FEATURES Darrel N DHS SKYPE FOR BUSINSS Linda B US Coast Guard OFFICE 2016 NEW FEATURES Darrel N US Coast Guard WORD 2016 & WINDOWS 8 Willa F US Coast Guard CUSTOM MS ACCESS 2016 AD Diego G US Coast Guard OFFICE 2016 NEW FEATURES Willa F $495.00 $495.00 $575.00 Total sales from public classes Amount $7,392.00 $3,500.00 $7,392.00 $1,400.00 $850.00 $7,392.00 $3,125.00 $7,392.00 Total sales from private classes Amount $3,400.00 $3,400.00 $3,400.00 Total sales from lab rentals $38,443.00 Totals Type Commercial Commercial Government Client Lab Rentals Sold Clark Construction IBM 32B Clark Construction IBM 32BJ DHS MS Office 2016 New Features Internal Notes 30 seat computer lab 30 seat computer lab 30 seat computer lab $10,200.00 Total Sales Closed for May = $50,208.00 Percentage to Close POC Lee W Amount $110.00 10% Type Commercial Government Government Government | client Projected Training for May Clark Construction PRIVATE EXCEL 2016 BEGINNIN US Coast Guard PRIVATE EXCEL 2016 INTERME DHS MS WINDOWS NEW FEATURE US Coast Guard PRIVATE MS ACCESS NEW FE Total Revenue $1,100 $1,100 $1,200 $1,100 Lee W Heidi R Lee W 15% 85% 95% $165.00 $1,020.00 $1,045.00 Total = 1 $2,340.00