Fred Klein
Company: Ultimate Software
Company Description: Ultimate Software (Nasdaq: ULTI), a leading provider of Web-based payroll and workforce management solutions, markets award-winning UltiPro® as licensed software, a hosted application through Intersourcing®, and a co-branded offering to Business Service Providers (BSPs) under the "Powered by UltiPro®" brand. The Company employs 415 professionals who are united in their commitment to developing trend-setting solutions and delivering quality service. Ultimate Software customers represent diverse industries and include such organizations as The Arizona Diamondbacks/ Phoenix Suns, Benihana Restaurants, The Container Store, Elizabeth Arden, Omni Hotels, Ruth's Chris Steak House and Trammell Crow Residential.
Nomination Category: Individual Awards Categories
Nomination Sub Category: Best Salesperson
Nomination Title: Fred Klein: A modern day David vs. Goliath – in the heart of Manhattan
- Tell the story about what this nominee achieved in 2002 (up to 500 words). Focus on specific accomplishments, and relate these accomplishments to past performance or industry norms. Be sure to mention obstacles overcome, innovations or discoveries made, and outcomes:
Ultimate Software (Nasdaq: ULTI), a leading provider of Web-based payroll and workforce management solutions, competes against industry giants such as ADP, PeopleSoft, Oracle and others.
In 2002, Ultimate’s competition with ADP peaked — on ADP’s own turf. Historically, more than 40% of Ultimate’s new business has come from previous ADP users. ADP is a resource rich company and, with a tough 2002 economy, Ultimate and salesperson Fred Klein wanted to better distinguish their product’s clear advantage and take market-share from its most notable competitor. To succeed, Ultimate faced:
- A deeply resourced, $7 billion provider of payroll services, headquartered in New Jersey, ADP may have as many as 50 or more salespeople who exclusively work New York and have easy access to executive decision-makers to sway customer-buying decisions.
- A market scarred by 9/11, decision-makers were averse to risk and reluctant to consider lesser-known vendors.
- A market that was completely unfamiliar with and, therefore, not actively seeking Ultimate’s revolutionary new "per-employee-per-month" (PEPM) pricing/service model. Successfully launching this offering was a key business objective for Ultimate in 2002.
Overcoming the Obstacles
David vs. Goliath
Ultimate leveraged expertise to win customers from the giants. The average sales representative boasts 60 months tenure with Ultimate and twice that longevity within the industry. To compete effectively on ADP’s home turf of New York with ADP’s estimated 50 reps aimed that way required more than seasoned professionals – it demanded in-depth knowledge of the competitor, New York’s unique marketplace and buying patterns. In January 2002, Fred Klein, a 17-year industry veteran (6 with ADP, 11 with Ultimate) whose previous territory was Texas, took on Manhattan.
Overcoming Risk Aversion
Klein was personally affected by 9/11 and understood the impact of the disaster. Determined to rise above it, Klein focused on strategy: Get to know the customer, the business, its size and needs. Clearly articulate Ultimate’s solution. Avoid maligning competitors – New Yorkers had their fill of grief.
Klein focused on the positive and led each appointment detailing ways businesses could better manage HR/payroll functions and operate more efficiently.
Accomplishments
By December, Klein broke Ultimate’s sales records, selling $3 million in revenues – 200% higher than the #2 rep. He sold the new Intersourcing model to two highly visible, mainstay NYC corporations with thousands of employees each. His success bolstered the company’s financial performance with a stronger monthly recurring revenue stream. By year-end, Ultimate had sold 33 PEPM Intersourcing units, 15% of which came from Klein’s sales ability.
Innovations/Discoveries
Klein’s ability to sell Intersourcing’s PEPM model underscored the market’s responsiveness to a simply priced, affordable HR/payroll solution and demonstrated the solution’s appeal to larger companies, such as a financial corporation with 4,700 employees and a luxury brand manufacturer with 3,000+ U.S. employees to be paid. This was a significant discovery because originally Ultimate anticipated that Intersourcing would be more attractive to smaller enterprises because limited upfront cash and IT support are required. Klein’s success with larger businesses demonstrated the broader appeal of the offering in a cash-conscious, resource-conserving economy.
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Please contact Jill Jameson at SBC PR with any questions - 614/891-7070 - Provide a brief (up to 100 words) biography about this nominee:
Fred Klein, strategic account manager, has 17+ years of industry experience in HRMS/payroll. Prior to Ultimate, Klein was with ADP. His Ultimate career began in 1994 as a distributor/reseller in Dallas. From 1999-2002, he managed a vertical industry for Ultimate Software.
Klein consistently rates in the top five in sales and despite many challenges in 2002, achieved the highest sales, with $3 million in 2002 sales. Klein’s 2003 goal is to sell 150% of his 2002 record.
He participates with Ultimate’s user groups, customer gatherings designed by users, for users, to ensure customer satisfaction throughout their lifecycle with Ultimate.