Sunday, March 6, 2011

What's an SE Worth?

The lead artice for this month is "What's An SE Worth?". It looks at different ways of calculating the ROI of a Sales Engineer. I believe it is impossible to calculate the ROI of an entire organization, but it is possible to calculate the ROI of the last, or better yet the next, SE hired.

With the help of some friends (Sean Culen, Mike Lohr and Jim Sargent) out there in SE-land I look at the costs, the direct and indirect benefits of an SE. Mix that in with a sneak peek at my ROPE (Return On Presales Effort) methodology and you get a pretty good idea on the return for making your next hire - as well as some compelling soft benefits for the SE org that most HR/Finance folks never think of.

By using a mix of potential revenue, pipeline, utilization, revenue/head and winrate across the dimensions of geography, solution and actual activity you begin to see a different view of the economics of the SE.

The ultimate answer is - unless your sales are in the tank - there is usually a compelling economic case for one more hire.

1 comment:

  1. John, as a first-time manager of a growing SE organization, I found this post to be a fantastic help. Thanks again for putting in time to share with the SE community.

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