© solution selling, inc. 2009 office depot 2 day workshop for sales managers

© Solution Selling, Inc. 2009

Office Depot 2 Day Workshop for Sales Managers

© Solution Selling, Inc. • 2009 PAGE 2www.solutionselling.com

Credit, Copyright, and Contact Information

Trademark Notice: The following trademarks and service marks are owned by Sales Performance Holding Company (DBA: Solution Selling, Inc.) and licensed by Sales Performance International, LLC. Any questions concerning the use of these trademarks or whether a name that does not appear on this list is in fact a trademark of Solution Selling, Inc. or comments concerning this manual, workshop or presentation should be referred to Sales Performance International, LLC in the United States at the following address:

4720 Piedmont Row Drive, Suite 400Charlotte, North Carolina 28210 USA

Phone: 704.227.6500 FAX 704.364.8114

Solution Selling® and Situational Fluency Prompter®, Pain Sheets®, 9 Block Vision Processing Model® and Pain Chains® are registered trademarks and service marks of Solution Selling, Inc.

AchieveGlobal®, Professional Selling Skills®, and Professional Prospecting Skills® are registered trademarks and service marks of AchieveGlobal, Inc. Professional Sales Coaching™ is a trademark and service mark of AchieveGlobal, Inc.

All other referenced marks are those of their respective owners.

Copyright Notice: This manual is a copyrighted work of Solution Selling, Inc. This manual may not be reproduced in whole or in part without the prior written consent of Solution Selling, Inc.

Additionally, Sales Management and Coaching, Targeted Territory Selling, Major Account Selling, Strategic Opportunity Selling, Collaborative Sales Negotiations, Solution Prospecting and Executive-Level Selling are copyrighted materials of Solution Selling, Inc.

© Solution Selling, Inc. • 1985 – 2009


Solution Selling®: Workshop Objectives

After completion of this Solution Selling® Workshop, you will be able to:

describe “how buyers buy” and align your selling activities to accordingly

recognize the difference between “latent pain” and “active vision” opportunities

conduct effective pre-call planning and research

stimulate interest and establish credibility with prospects

get prospects to share / admit high priority pain

engage in consultative dialogue that promotes the differentiating strengths of your offerings

gain access to “power” people within an opportunity

effectively qualify and disqualify opportunities based on objective decision criteria

better control and manage sell cycles

improve your chances of winning competitive opportunities

shorten sell cycles and avoid no decision

manage proof and internal resources

negotiate the steps leading to closure of a sell cycle


Office Depot Sales Process Elements

Office Depot Sales Process

Buying Process

Define problems and opportunities

Determine needs / requirements

Select solution, evaluate risk, &

finalize contracts

Resolve issues & implement

Evaluate success

Sales Stage

Plan and Engage Diagnose Propose and Close Implement Fulfill

Verifiable Outcomes

Opportunity Created in Sales Online

Gain agreement with Power Sponsor to

next steps

Signed contract / Gain verbal

agreement to buyFirst orders placed 7-7-7 Goals

Accomplished

Yield Probability

25% 75% 100%

Sales Tools and Resources

Key Players List

Contact Strategy

PSS® Pre-Call Planner

Power Sponsor Letter/e-mail

Transition Plan

Get-Give List Implementation PlanReference Story

Success Criteria


AchieveGlobal Models Will Be Used Within the New Sales Process

Professional Selling Skills®: Needs Satisfaction Selling Process.

Goal: To make informed, Mutually Beneficial Decisions

Professional Prospecting Skills®:

AchieveGlobal®, Professional Selling Skills®, and Professional Prospecting Skills® are registered trademarks and service marks of AchieveGlobal, Inc.


SPI and AchieveGlobal Tools Will Help Sellers Have Conversations with

Customers at Various Points in their Lifecycle

Loyal customers

Grow

C

Share of Wallet

“At-risk” customers

Retain

D

Retention

Newly acquired customers

Convert

B

Conversion

New customers

Acquire

A

New Business


Talent Assessment

Are intuitive Have conversations Ask questions

Make presentations Make statements Process is key to success

80%80%

20%20%

JourneypeopleJourneypeople

EaglesEagles


Situational Fluency

What Buyers Should Expect from Salespeople

Situational Knowledge

Capability Knowledge

People Skills

Selling Skills

How Do We Integrate?

Situational Fluency: Integration of knowledge and skills by the salesperson for “eagle” performance


Selling Difficulties: Examples

“I have trouble maximizing my time in the field and may not be calling on the right

customers.”

“Customers only care about price.”

“I was a BDM and now I have trouble with account management.”

“My experience is primarily working with existing customers so I have challenges

with prospecting and finding new customers.”

“Customers don’t see a reason to change from their current provider.”

“We have a difficult time standing out from the competition. We all offer the same

things.”

“I am unable to determine who is the right decision maker.”

“It’s hard to disqualify any opportunities, even if we don’t think we have a good

chance of winning.”

“We get involved in the opportunities too late.”

“I lose control of the opportunity at the end of the sell cycle.”


Managing Difficulties: Example

“I am unable to determine the real status of an opportunity.”

“I am unable to get an accurate forecast from my sales reps.”

“I know when a salesperson is not meeting quota, but I don’t know why.”

“I have key opportunities on my forecast, and I am not sure they will close this quarter or ever!”

“My salespeople see our sales process as unnecessary work.”


Exercise: Introduction and Management Difficulties

Purpose:

To introduce yourself to the facilitation team and other participants

To identify your specific management challenge(s)

Activities:

Record the following information:

Your name and location

Your title and/or responsibility

The top managing difficulty that you may be experiencing

Note:

Difficulties should be challenges over which you have control (i.e. no mention of “my seller won’t…” or “my product or service doesn’t…”)


Key Selling Skills

PLAN & ENGAGE DIAGNOSE PROPOSE & CLOSE IMPLEMENT

Sales Process Steps

ProspectingProspecting

Developing NeedsDeveloping Needs

Developing and Delivering ValueDeveloping and Delivering Value

Managing ProofManaging Proof

Accessing Power

Accessing Power

Qualifying / DisqualifyingQualifying / Disqualifying

Controlling the ProcessControlling the Process

AligningAligning

Negotiating / ClosingNegotiating / Closing

FULFILL


Negotiating Throughout the Sales Process

Maintaining Your Control

Quid Pro Quo: Latin, “something for something”

Set the tone for all things to be negotiated throughout the sales cycle

Use “quid pro quo” to:

Qualify the buyer and the opportunity

Move opportunities forward

Position your personal “power”

Minimize the cost of sale

Quid Pro Quo and NegotiatingQuid Pro Quo and Negotiating


Plan and EngagePlan and Engage DiagnoseDiagnose Propose And Propose And CloseClose ImplementImplement FulfillFulfill


Shifting Buyer Concerns

How Organizations Plan, Evaluate and Buy

Phase I:Determine Needs

Phase II:Evaluate Alternatives

Phase III:Evaluate Risk

Risk

Price

Solution

Needs

Buying Phases

Time

Le

ve

l o

f C

on

ce

rn

Strategy Projects Issues Priorities Budgets

Phase 0:Conduct Planning

Decision to solve a priority problem


Basic Principle

NO PAIN, NO CHANGE

Pain = Problem, Critical Business Issue or Potential Missed Opportunity

BASIC PRINCIPLE


Criteria for Pain

Job specific

How the prospect is:

Measured

Motivated

Recognized

Rewarded

Viewed by peers

Personal

Provides a compelling reason to act


Basis of Pain

Increasing

Costs

Competitive losses

Errors

Customer complaints

Returns

Employee turnover

Eroding

Profits

Market share

Service quality

Growth rate

Customer care

Compliance

Government regulation

Industry standard

?COMMON

DENOMINATOR


Basic Principle: There are Four Levels of Buyer Need

Level One: Latent Pain

Level Two: Admitted Pain

Level Three: Vision of a

Solution

Level Four:

Active Evaluation

BASIC PRINCIPLE


Conceptual Sales Territory

Power person driving evaluation Business issues defined Requirements documented Evaluation team in place

*

Not Looking

Active *

Of all the people who could benefit from your offering…

What % are actively evaluating?


How Organizations Evaluate and Buy

Not Looking Active Requirements Company A Company B Company C


Sales Process Flow Model

Potential opportunity starting points

Conduct pre-call planning and research

Stimulate interest

Define “pain” or critical business issue

Diagnose and create vision of company-biased solution

Perform opportunity assessment

Select competitive strategy

Reengineer vision with company differentiators

Negotiate access to power

Develop & manage Evaluation Plan(sample steps)

• Summarize findings• Prove capabilities• Present preliminary solution• Determine value analysis/s. criteria• Gain all approvals (L/T/A)• Conduct pre-proposal review

Reach final agreement

Measure and leverage success criteria

Go?

At power

?

Yes Yes

Yes

No

NoYes Yes

Yes

No

NoNo

Latent or Admitted Pain Vision or Active Evaluation


Office Depot Sales Process: Plan and Engage Stage

Buying Process


Sales Stage Plan and Engage

Activities

New Business Conduct opportunity

planning Conduct opportunity

assessment

Retain and Grow Monitor client

satisfaction Research buying

trends Identify new

opportunities across SKU’s and categories

Create interest Gain initial meeting


•Dun & Bradstreet lists•Hoovers •Opportunity Assessment•Pain Chain®•Key Players List•Contact Strategy•Business Development Prompter

•Reference Story•PPS Scorecard•PPS Funnel Calculator

Verifiable Outcomes


Yield Probability

0%

New Business Conduct opportunity planning Conduct opportunity

assessment

Retain and Grow Monitor client satisfaction Research buying trends Identify new opportunities

across SKU’s and categories


Identify Opportunities through Planning

Territory Territory

Account Account Account AccountAccount

Opp Opp Opp Opp Opp

Existing Accounts New Accounts

Territory Planning

Account Planning

Opportunity Planning


Qualification Criteria: Example at Territory Level

Finding the “Sweet Spot”

Criterion Measure Points

# of White Collar Workers

25-50 1

50-75 3

75-100 5

Chamber / Association MemberYes 5

No 1

Referred to Office Depot by another customer

Yes 5

No 1

High revenue producing verticals

Legal 1

Medical 3

Education 5

Close proximity to Office Depot stores

Yes 5

No 1

Currently under “Contract” or receiving customized pricing with

competitor

25-50 WCW Yes = 1No = 3

50-75 WCW Yes = 1No = 5

75-100 WCW Yes = 1No = 7

Not mandated by corporate

Not mandated by corporate

Criteria will vary from region to region (gain input from manager)

Criteria will vary from region to region (gain input from manager)

Not a form… things to consider!

Not a form… things to consider!


Sorted in Descending Rank: Example

Account Name # of WCW

Chamber / Association Member

Referred to Office Depot by another customer

High revenue

producing verticals

Close proximity to Office Depot

stores

Currently under “Contract” or

receiving customized pricing with competitor

Total

Matchmakers, Inc. 5 5 5 3 5 1 24

United Way 3 5 5 1 5 3 22

Kwik Transport 5 5 5 3 1 3 22

Lifestyle Leasing 1 1 1 5 5 7 20

MSA Payroll Services 3 1 1 1 5 1 12

Fantasy Travel 3 5 5 3 1 3 20

4Square Entertainment

1 5 1 5 5 3 20

Baldrige Consultants 5 1 5 3 5 7 26

City Government 3 1 1 3 1 3 12

Able Bakers 1 5 1 1 1 5 14


* “Traditional criteria”

Account Criteria Examples

Annual company revenue

Our revenue from this account last year *

Expectations of future revenue *

Market position

Market viability

Financial strength

Recent good/poor financial performance

Growth in revenues

Growth in employees

Our relationship quality

Our account coverage last year

Customer satisfaction level

Current installed inventory of our products

Potential usage of our offerings *

Analyst opinions

Known email address

Strategic value to us

Company’s compatibility with our culture

Our experience in this industry

Urgency of Business Issues (Pains)

Knowledge of buying processes

Trusted advisor vs. vendor

Likelihood of sponsorship

Expected profitability

Technology adoption position

Competitive strength

Competitive presence

Our solution fit to their needs *

Business initiatives we can help with

Mergers & acquisitions

Convenience of geographic location

Responded to (e)mailing


Planning

Account Pre-call Planning and Research

Key Areas to Research

Company History Nature of the business Mission statement Annual reports / 10Ks

Offerings Description Types Uniqueness

Market analysis Size Location Trends Maturity Share

Financials Balance sheet Income statement Track record

Competition How positioned Strategies Comparisons

Executive profiles Work history Education Competencies

Potential critical business issues (pains)

Opportunities in the Pipeline


Account Profile: Example

Account Profile

Company:Alliance Healthcare System is a collection of 5 hospitals and urgent care facilities, 39 Clinics, 7 medical practice groups, 12 community pharmacies, and 3 ambulatory care centers. Alliance is headquartered in the Denver, Colorado with locations throughout the western part of the US. Excluding medical professionals, Alliance has in the neighborhood of 30 to 65 white collar workers in each location. The business offices are located in the Denver facility. As part of the Alliance Mission Statement and Statement of Strategic Vision, the CEO stated that: “Alliance will be the model for outstanding patient care and as an unparallel place to work”. They were considered an innovative and market leader in the past. They have received numerous awards in recognition from the communities they serve. Offerings:Clinical and hospital services along with medical practices and pharmacies. The locations tend to operate on an autonomous basis with administrative support staffs. Alliance has significantly broadened their offering base through rapid acquisitions and mergers over the last 5 years. They are still in the process of standardizing processes across all locations.

Market analysis:The market outlook for growth is good, but cost structure is not in line with industry average.Financials:

The recent Annual Report stated last years net operating revenues at $2.8 billion. Also in the “Management Commentary” of the report was a directive from the VP of Finance to cut budgets across the board by 10%.

Competition:Key competitors are Kaiser Permanente, Novant Health Systems, and Abbot Northwestern Health Care. Executive profiles:Michael Paisley, CEO for 5 years –formerly with Kaiser Permanente – visionary, cares about public image of AHS and depends on philanthropy to supplement operating revenues. Nat Greenfield, VP Finance for 10 years – graduate of Colorado University in hospital administration and CPA – scrutinizes costs. Alma Bettis, VP Facilities Management for 8 years – strong personality – formerly with Novant Health – very conservative. John Richmond, Office manager of Boulder clinic – with Alliance for 7 years– aggressive in promoting programs within Alliance. Morton Blank. Director of Purchasing for 2 years formerly with Boston Scientific as manager of logistics. Beth Hardin, VP of HR 5 years – degree in psychology formerly with University of Minnesota.

Potential critical business issues:

Increased costs from lack of standardization. Goals are to lower operating costs by using more economic ordering practices. Inventory management practices to lower carrying costs across multiple locations. Currently the autonomous operating environment has fostered “helter-skelter” purchasing practices thus leaving opportunity costs on the table. They have recently incurred increasing shipping costs of supplies. Recent employee survey across all locations indicated growing dissatisfactions with working environment and lack of reasonable “perks” cited. A write-in comment stated that “As hard as we work around here, it looks like we could have a decent lounge area with a real cup of coffee!” This is driving employees out of the office to get coffee and snacks.


Account Pre-call Planning and Research

Information Sources

Review account’s website

Access public information

Annual Reports / 10-Ks

• Chairman’s Letter

• Financial highlights

Hoover’s Online (www.hoovers.com) * – Company overviews: financials, key people in the organization, industry-related news, competitor profiles, business & financial rankings, and company subsidiaries.

LinkedIn (www.linkedin.com) - Source for increasing network and association with past and present colleagues

MSN Business Online (www.msnbc.com) Company information and news articles searchable at the world, national and local levels

OneSource (www.onesource.com) * – A single source for detailed company information for both public and private companies.

Standard & Poor’s (www.standardandpoors.com) – Financial information about organizations around the world in multiple languages. Financial information includes credit ratings, equity research, global indices and articles pertaining to the financial impact associated with world events.

US Securities Exchange Commission (www.sec.gov) – Information on public filings from 1993 – present

Yahoo Finance

Contact account’s shareholder department (e-mail) with specific questions – become a shareholder

Contact salespeople and account managers within the prospect organization

* Good resource for researching minimal requirements of an Account Profile


Contact Strategy within Sales Online


Appointment Preparation

When preparing for appointments, take advantage of the tools that are on the dashboard.

MARKETING MATERIAL – you will also find this link on the left side of the Dashboard under the QUICK LINKS section. This takes you to an EXCEL document with links to some helpful marketing material. You can filter the material based on Sector, Product Group or Project name. Print them off, or go GREEN and email them to your customer before or after the sales call.

Note: Make sure you use the STAR report to identify multiple categories to go after. Have backups and don’t stop if the customer agrees to purchase in a new category. Keep penetrating and offering solutions.

TOOLS AND JOB AIDS – you will find this link on the left side of the Dashboard under the QUICK LINKS section. This link takes you to a series of CATEGORY CHEAT SHEETS that allow you to prepare for specific categories on customer calls. Print them off as needed and use them in your appointment planning. You will find the CALL PLANNER under this link. This Call Planner assists in developing your action plan and incorporates PSS skills. You will also find the SOLUTION SELLING® TEMPLATES at this link.


Key Players List: Example

Key Players (Job Title) Potential Pains

VP Finance (corporate) Missed budgets Eroding margins Increasing overall costs

Office Manager (remote locations)

Increasing local operational costs Decreasing employee productivity Increasing shrinkage

Human Resources Director (corporate)

Potential increase in insurance costs Low employee morale Increase in costs to hire and train employees

Procurement (corporate) Increasing cost of procurement Unable to leverage buying power Difficulty managing supply chain

Director Environmental Strategy (corporate)

Declining public image related to being “green” Difficulty meeting corporate “green” initiatives

VP Facilities (corporate) Increasing facility costs across all locations Lack of standardization in all locations Difficulty managing inventory

VP IT / CIO

Difficulty managing multiple technologies Difficulty implementing and integrating disparate systems with

corporate standards Inability to meet users’ technology demands


Basic Principle

PAIN FLOWS THROUGH AN ENTIRE ORGANIZATION

BASIC PRINCIPLE


Pain Chain® - “Cause and Effect”

Job Title:Pain:Reason:







Pain Chain®: Example

Job Title: VP FinancePain: Missed budgetsReason A: Potential increase in insurance costsReason B: Increasing facility costs across all locations

Job Title: VP FinancePain: Missed budgetsReason A: Potential increase in insurance costsReason B: Increasing facility costs across all locations

Job Title: ProcurementPain: Increasing cost of procurementReason A: Large number of suppliers

Job Title: ProcurementPain: Increasing cost of procurementReason A: Large number of suppliers

Job Title: Office ManagerPain: Increasing local operational costs Reason A: High costs of carrying inventoryReason B: Increasing shipping costsReason C: Inefficient ordering process because of

multiple suppliers

Job Title: Office ManagerPain: Increasing local operational costs Reason A: High costs of carrying inventoryReason B: Increasing shipping costsReason C: Inefficient ordering process because of

multiple suppliers

Job Title: Human Resources DirectorPain: Potential increase in insurance

costsReason A: Increasing risk liability due to

employee leaving premises

Job Title: Human Resources DirectorPain: Potential increase in insurance

costsReason A: Increasing risk liability due to

employee leaving premises

Job Title: VP FacilitiesPain: Increasing facility costs across all

locationsReason A: Increasing operational costs at remote

locationsReason B: Increasing procurement costs

Job Title: VP FacilitiesPain: Increasing facility costs across all

locationsReason A: Increasing operational costs at remote

locationsReason B: Increasing procurement costs


Basic Principle

YOU CAN’T SELL TO SOMEONE WHO CAN’T BUY

BASIC PRINCIPLE


Traditional Organization Chart: Example

Investors

CEO / Managing

Partner

CIOProduction Executive

Operations Executive

Sales Executive

Marketing Executive

Director IT HR ManagerQuality

Manager

Financial Executive

“The Budget Line”


Exercise

Pain Chain®

Purpose:

To identify and depict the cause and effect relationship that pain can have within an organization

Activities:

Identify an account to use as an example

Identify the pain (and reasons) for a specific customer (by job title) that you are either engaged with or might encounter in a typical sales cycle

After you’ve recorded this information, trace the pain up and/or down the Pain Chain® to include three other job titles in the customer’s company impacted by this pain

Draw arrows between the Pain and reason to show the cause and effect relationship

Use the Pain Chain® Template on the following page

Notes:

Remember that a pain is personal. Pains can often be determined by analyzing how a key player is measured, motivated, recognized, rewarded, etc.

Pains are usually articulated in a negative manner (i.e. usually something is increasing or decreasing)

Feel free to make up any information you may not have to complete the exercise

Be prepared to debrief


Pain Chain®: Template

Job Title:Pain:Reason A:









Exercises for Sales Workshops

TDM

Share best practices of how to use Contact Strategy

Create specific qualification criteria for their territory

Major/Global/Public

Conduct Pain Chain® exercise for opportunity chosen by group from pre-work


Office Depot Sales Process: Plan and Engage Stage

Buying Process


Sales Stage Plan and Engage

Activities



assessment



trends Identify new




•Dun & Bradstreet lists•Hoovers •Opportunity Assessment•Pain Chain®•Key Players List•Contact Strategy•Business Development Prompter


Verifiable Outcomes


Yield Probability

0%

• Create interest • Gain initial meeting


Business Development Best Practices

Remember who is responsible for your quota

Distinguish between prospecting vs. polling

Analyze funnel to plan activity and determine level of activity needed

Create interest and curiosity with your approach

Reserve sacred time for business development activities

Target the same job title or same industry (if possible)

Target high in the organization

Experiment with new approaches

Consider “timing and touches”

Measure results of various approaches

Remember the “SW” rule


Business Development: Messaging Considerations

“Are You Curious?”

You have limited time to get attention and create curiosity

Put yourself in the mind of the buyer

Target pains / critical business issues:

• describe how someone else has solved a problem

• target a peer in a potentially similar situation

• select a problem they might have or to which they can relate

Communicate value

The communication should NOT:

focus on company history or new offerings

ask them to buy anything or schedule a meeting

ask the buyer to admit “pain”


Business Development Prompter: Example

Business Development Prompter: New Opportunity

This is Bill Hart (salesperson name) with Office Depot (your company). You and I haven’t spoken before, but we have been working with

healthcare (specific industry) organizations for the last 10 (#) years. A common trend we are hearing lately from other Office Managers (job title) is their frustration (difficulty) with increasing operational costs (job title’s

likely critical issue / pain) [resulting from high cost of carrying and shipping of various cleaning and break room supplies

(articulate common reasons)]. We have been able to help our customers address this issue. Would you like to know how?


Business Development Prompter: Examples


This is __________ (salesperson name) with __________ (your company). You and I haven’t spoken before, but we have been working with __________ (specific industry) organizations for the last ___ (#) years. A common trend we are hearing lately from other __________ (job title) is their frustration (difficulty) with

_______________ (job title’s likely critical issue / pain) [resulting from ______ (articulate common reasons)]. We have been able to help our customers address this issue. Would you like to know how?

Business Development Prompter: Menu Approach (See Business Development e-mail)

This is __________ (salesperson name) with __________ (your company). You and I haven’t spoken before, but we have been working with __________ (specific industry) organizations for the last ___ (#) years. The top three issues (concerns) we are hearing (lately) from other __________ (job title) are: (1) __________, (2)

__________ and (3) __________ (job title’s top three likely critical issue / pain). [We’ve helped companies like: (1) __________, (2) __________ and (3) __________ (three reference-able organizations) address some of these

issues.] Would you like to know how?

Business Development Prompter: Referral Approach

This is __________ (salesperson name) with __________ (your company). You and I haven’t spoken before, but __________, __________ at __________ (reference person’s name, title and organization) suggested that I give you a call. We were able to help her/him address his/her difficulty with __________ (reference person’s

critical issue / pain) [resulting from ______ (articulate common reasons)]. Would you like to know how?

Business Development Prompter: Multiple Contact Approach

This is __________ (salesperson name) with __________ (your company). You might recall my last contact via [phone / email / seminar / webinar / tradeshow] where we described how we have been working with __________ (specific industry) organizations for the last ___ (#) years. We cited a common trend with

__________ (job title) is their frustration (difficulty) with _______________ (job title’s likely critical issue / pain) [resulting from ______ (articulate common reasons)]. We have been able to help our customers address this

issue. Would you like to know how?


Business Development Letter/e-mail: Example

Steve,

Office Depot is in the business of helping customers in the healthcare industry improve effectiveness and efficiencies of their operations by consolidating and simplifying purchases.

We have been working with healthcare companies since 1999. Some of the chief concerns we hear lately include:

□ Increasing local operational costs □ Decreasing employee productivity□ Increasing shrinkage

We have been able to help our customers successfully deal with these and other issues. I would like an opportunity to share some examples with you. If you are interested in learning how we have helped other office managers solve some very challenging issues, please call me 555-215-1111 and I will provide you with more information. In lieu of your call, I’ll plan a follow-up call on Wednesday of next week.

Regards,

Bill Hart

Steve,

Office Depot is in the business of helping customers in the healthcare industry improve effectiveness and efficiencies of their operations by consolidating and simplifying purchases.

We have been working with healthcare companies since 1999. Some of the chief concerns we hear lately include:

□ Increasing local operational costs □ Decreasing employee productivity□ Increasing shrinkage

We have been able to help our customers successfully deal with these and other issues. I would like an opportunity to share some examples with you. If you are interested in learning how we have helped other office managers solve some very challenging issues, please call me 555-215-1111 and I will provide you with more information. In lieu of your call, I’ll plan a follow-up call on Wednesday of next week.

Regards,

Bill Hart


Reference Story: Example

REFERENCE STORY

Situation: Office Manager in a large organization

Critical Business Issue:

Increasing local operational costs

Reason(s): High cost of carrying and shipping of various cleaning and break room supplies

Capability(s):

(when, who, what)

When ordering replenishment of cleaning and break room supplies the office manager could order only what was needed at the best price and have it delivered at the desired time without shipping costs.

We provided… …this capability

Result: They were able to reduce operational costs by over $4,000.


Reference Story Format

Situation: A customer job title and vertical industry

Critical Business Issue:

The pain of the title above (Anxiety words and phrases are very powerful here).

Reason(s): One of the reasons for the critical issue biased to your product or service

Capability(s):

(when, who, what)

In the words of your customer, the business event, the player(s) and specific capabilities needed to address the critical issue - “He/she/they told us when… who… what they needed”

We provided… If the “solution” is described properly above, all we have to do here is say that we (our product / service / company) provided them those capabilities

Result: Specific measurement is best, $ or %


Building a Compelling Value Proposition

Your Offering Your OfferingCustomer B

Situation

Customer A Situation

Initial Value Proposition

Initial Value Proposition

Reference Story

Reference Story

Projected Results

Measured Results

EXTRAPOLATE


Components of an Initial Value Proposition

A simple, clear statement of:

Your target prospect

Key quantified benefits you may offer them to address their potential critical business issue(s)

Based on:

Your knowledge of the specific value already achieved by an existing customer

Your company’s experience / knowledge of the prospect with a comparable situation

Your initial projection of the value to that prospect


Initial Value Proposition: Example for Local Office Manager

VALUE PROPOSITION

“We believe that Alliance Healthcare System should be able to

reduce expenses by approximately $4,160 per location

through the ability to streamline the ordering and delivery

process for cleaning and break room supplies.”

Value Proposition Assumptions:

Alliance location has 65 WCW

Customers of this size typically spend $257/WCW

Average savings is $64 per WCW


Initial Value Proposition: Example for VP Facilities

VALUE PROPOSITION

“We believe that Alliance Healthcare System should be able to

reduce overall expenses by approximately $126,000-274,000

through the ability to streamline the ordering and delivery

process for cleaning and break room supplies.”

Value Proposition Assumptions:

Alliance locations have approximately 30-65 WCW in each location

Alliance has 66 locations

Customers of this size typically spend $257 per WCW

Average savings is $64 per WCW


Initial Value Proposition: Format and Template

VALUE PROPOSITION TEMPLATE

“We believe that _____________________________ should be able to

__________________________________________________________

(by $_______________ or _______________%)

through the ability to ________________________________________

as a result of ___________________________________________.”

VALUE PROPOSITION TEMPLATE

“We believe that _____________________________ should be able to

__________________________________________________________

(by $_______________ or _______________%)

through the ability to ________________________________________

as a result of ___________________________________________.”

Value Proposition assumptions being made: ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________

Value Proposition Format:We believe that [ Client name ]

should be able to [ improve what ] by [ how much, what %? ]

through the ability to [ do what? ]as a result of [ what enabling capabilities? ].



TDM and Major/Global/Public

Build Business Development Prompter

Build Reference Story


Quid Pro Quo in Plan and Engage

“What things would the customer want from you and what would you want from the customer?”


Office Depot Sales Process: Diagnose Stage

Buying Process




finalize contracts


Evaluate success

Sales StagePlan and Engage Diagnose

Activities



assessment



trends Identify new



Get pain admitted

Diagnose admitted pain and create or reengineer vision of Sponsor


Confirm dialogue and agree upon next steps

Diagnose admitted pain and create or reengineer vision of Power Sponsor

Determine evaluation criteria and propose next steps

Confirm dialogue and agree upon plan of next steps


•Dun & Bradstreet lists•Hoovers •Opportunity Assessment

•Pain Chain®•Key Players List•Contact Strategy•Business Development Prompter



9-Block Vision Processing Model®

Pain Sheet® Sponsor Letter/e-mail Power Sponsor

Letter /e-mail Evaluation Plan

Verifiable Outcomes


Gain agreement to Evaluation Plan

Yield Probability

0% 25%

•Get pain admitted


Getting Pain Admitted

Why Would Buyers Admit Pain?

Because the salesperson has:

Built rapport naturally

Established trustworthiness (sincerity + competence)

Established credibility

Demonstrated situational knowledge


Basic Principles

PEOPLE BUY FROM PEOPLE

POWER BUYS FROM POWER

BASIC PRINCIPLE

BASIC PRINCIPLE


Strategic Alignment: Steps 1 and 2

Opening of the Call

BUYER PERSPECTIVE / DECISION SALESPERSON ACTION

“Do I even want to listen to this salesperson?” 1. Establish Rapport Naturally

2. Introduce Call

“Is this person different from other salespeople?”

“Is s/he sincere?... competent?

“Am I ready to share critical information with this person?”

State call agenda

Share “we help” theme

Provide company / personal introduction

Share relevant Reference Story (or progress-to-date)

Transition to “getting pain admitted”


Strategic Alignment Prompter (Steps 1 and 2)

Step 2: Introduce Call

State call agenda *

What I’d like to do today (or… during the next ___ minutes) is to:• Introduce you to Office Depot (my company)• Tell you about another Office Manager we have worked with• I would then like to learn (more) about you and your situation…• …at that point, the two of us will be able to make a mutual decision as to whether or not we should proceed

any further. Is this okay with you?”

Share “we help” theme

“Office Depot is in the business of helping customers in the healthcare industry improve effectiveness and efficiencies of their operations by consolidating and simplifying purchases.”

Provide company / personal introduction *

FACTS□ Office Depot won the “Outstanding environmental leadership” award from Office Products International□ We also won a Stevie award for sales and customer service □ I personally have worked in the healthcare industry for 10 years

Share relevant Reference Story (or progress-to-date)

“A particular situation you might be interested in is another healthcare (organization type). Their office manager (job title) was having difficulty with increasing operational costs (pain). The reason for her difficulty was high cost of carrying and shipping of various cleaning and break room supplies. What she needed was some way to (describe capabilities) when ordering replenishment of cleaning and break room supplies the office manager could order only what was needed at the best price and have it delivered at the desired time without shipping costs. We provided them with those capabilities and the result was they were able to save over $4,000 in operational costs per year (specific result).”

Transition to “getting pain admitted”

“But enough about Office Depot. Tell me (more) about you and your situation.”

* Alter steps for existing vs. new relationships as relevant


Strategic Alignment: Step 3



3. Get Pain Admitted

“Do I want to admit mycritical business issue (pain)

to this salesperson?”

Ask Situational Questions (if necessary)

Ask Menu of Pain Questions (if necessary)

Prioritize the admitted pain



Potential Buyer Responses

“But enough about (my company). Tell me about you and your situation.”

Potential Buyer Responses:Potential Buyer Responses: Salesperson’s Actions:Salesperson’s Actions:

1. 1.

2. 2.

3. 3.

4. 4.

5. 5.



Question Examples

SITUATIONAL QUESTIONS

MENU OF PAIN QUESTIONS

“The top three difficulties we are hearing from other Office Managers these days include:Increasing local operational costs Decreasing employee productivityIncreasing shrinkage

…are you facing any of these issues today?” OR…are you curious how we have helped our customers deal with these

issues?”

“Today, how are you procuring all of your office, cleaning, and break room supplies?”

“How do you place orders?”

“How are orders received, distributed, and paid for?”


Anxiety Creation: Example

1. Anxiety Question:

“How would you feel if one of your top executives made an unannounced visit and they found different items from their location because you order differently from what the executive expected?”

2. Capability Question:

“What if there were a way…when ordering cleaning and break room supplies you had one specific, standardized list of approved corporate items, which included your executive’s favorite coffee, available for next day delivery… would that help?”

3. Office Depot Differentiator:

Each location would have a customized shopping list with pre-approved items available for purchasing.


Exercises in Sales Workshops

TDM

Build individual call introduction and role play with a partner



Buying Process




finalize contracts


Evaluate success

Sales Stage Plan and Engage Diagnose

Activities



assessment



trends Identify new



Get pain admitted








Dun & Bradstreet lists Hoovers Opportunity

Assessment Pain Chain® Key Players List Contact Strategy Business

Development Prompter

Reference Story PPS Scorecard PPS Funnel

Calculator



Pain Sheet® Sponsor Letter/e-mail Power Sponsor Letter/

e-mail Evaluation Plan

Verifiable Outcomes



Yield Probability

0% 25%

• Diagnose admitted pain and create or reengineer vision of Sponsor


Basic Principle

DIAGNOSE BEFORE YOU PRESCRIBE

BASIC PRINCIPLE


Sales Performance Over Time

Time

Pe

rfo

rma

nc

e

P M

P = PerformanceM = Morale



Develop Needs / Customer Buying Vision


4. Develop Needs / Customer Buying Vision

“Does this person understand my business issue and the reasons

contributing to it?

“Has this person thoroughly diagnosed my situation?”

“Should I discuss the impact that my issue has on

others in the organization?”

“Do I agree with the capabilities suggested and the value articulated?”

“Do I want to take responsibility for solving this problem?”

Diagnose and create a vision of a company-biased solution

or

Reengineer a vision with company differentiators

Participate in existing vision

Introduce differentiators

Determine underlying pain (if not admitted)


Level One:Level One: Latent Pain

Level Two:Level Two: Admitted Pain

Level Three:Level Three: Vision of a Solution (Buying Vision)

Level Four:Level Four: Active Evaluation

Navigating the Levels of Buyer Need

Stimulating Interest Job Aids

9 Block Vision Processing Model®


I1

I3

C1

C2

C3

R1

R2

R3

I2

Architecture of the 9 Block Vision Processing Model®

Diagnose Reasons Visualize CapabilitiesExplore Impact

Open

Control

Confirming

PAIN

BUYING VISION

3 Question Types

3 Question Types 3 Areas of

Exploration

3 Areas of Exploration

Customer’s Point of View

Customer’s Point of View

Salesperson’s Point of View

Salesperson’s Point of View

Combined Point of View

Combined Point of View


C1 I1 R1

C2 I2 R2

C3 I3 R3

9 Block Vision Processing Model® - Vision Creation


Ope

n C

ontr

ol

Con

firm

ing

PAIN

BUYING VISION

741

852

963

“Besides yourself, who in your

organization is impacted by this (pain)

and how are they impacted?”

“Is this (pain) causing… (another pain)?”

“If so, would (other job title)

also be concerned?”

“From what I just heard, (repeat the “who” and “how”) are impacted.

It sounds like this is not just your problem, but a

______ problem! Is that correct?”

“What is it going to take for you to be able to

(achieve your goal)?”

“Could I try a few ideas on you?”

“You mentioned (recall reason)…Would it help if …

Capability Vision A?...Capability Vision B?...Capability Vision C?...

“So, IF you had the ability to (summarize capability

visions),

THEN could you (achieve your goal)?”

“Tell me about it, what is causing you

to have this… (repeat pain)?”

“Is it because…

Reason A?…Reason B?...Reason C?...

“So, the reasons for your (pain) are…?

Is that correct?”


Pain Sheet® - Situational Fluency Prompter®: Example

Pain:Job Title & Industry:

Offering:

Increasing local operational costsOffice Manager (local location), HealthcareCleaning Break Room Supplies

REASONS (R2) IMPACT (I2) CAPABILITIES (C2)

Is it because; Today…? Is this (pain) causing…? What if…; Would it help if…?

A

Tell me about the additional inventory you need to carry?

•Increasing facility costs across all locations?

Is the VP Facilities concerned?

•Budgets to be missed?

Is the VP Finance concerned?

A When: Ordering replenishment of cleaning and break room supplies

Who: YouWhat: Had a way to order only what

you need at the best price so that your cost to carry is minimized?

B

What is the shipping and fulfillment process used by current suppliers today? B When: Inventory has reached safety

stock levelWho: YouWhat: Could go to your personalized

landing page, identify items you need, check inventory, place your order, and have it delivered at your desired time without shipping costs?

C

What is the process for placing orders with multiple suppliers?

C When: Ordering multiple categories of items

Who: You What: Had the ability to utilize a single

website to order all items at once and not have to use multiple ordering processes and receive one delivery with one invoice?


I2I2 C2C2

RI

R2R2

Pain Sheet® - Situational Fluency Prompter®

Where it is Used

I1 C1

R3 I3 C3

A A

B B

C C

D D


Basic Principle

THE SOLUTION MUST EQUAL THE BUYING VISION

BASIC PRINCIPLE


I2 C2

RI

R2

Building Visions

I1 C1

R3 I3 C3

“My operational costs are increasing!”

“What if you could lower your operational costs?”

“What if you could get the best price on your cleaning and break room supplies?”

“What if when ordering replenishment of cleaning and breakroom supplies (who) you had a way to order only what you

need at the best price so that your cost to carry is minimized? ”

What if when inventory has reached safety stock level (who) you could go to your personalized landing page, identify

items you need, check inventory, place your order, and have it delivered at your desired time without shipping costs?”

“IF you could order only the cleaning and break room supplies you needed, and when you needed to order them you could go to your personalized landing page and have

them delivered at your desired time without shipping, THEN could you lower your operational costs?”

Pain:

Goal:

Capability:

Capability Vision:

Capability Vision:

Buying Vision

PAIN

BUYING VISION


Vision Processing: Example for TDM


Exercise: Vision Creation Role Play

Strategic Alignment (Step 4)

Purpose:

To give a salesperson practice on how to diagnose the reasons for a prospect’s critical business issue or pain, explore the impact of that pain on the organization and help the buyer visualize the capabilities needed to address their pain

Activities:

Break into role play groups

Follow the blocks in the numbered order using the prompter provided (9 Block Vision Processing Model® - Vision Creation)

Be sure to use the Pain Sheet® (found within the following pages) to assist in the control questions row on the 9 Block Vision Processing Model®

Each person should get an opportunity to play the “buyer” and the “salesperson”. Use an observer in the rotation if possible


Note:

Focus on following the process, not on personal skills such as eye contact




Ope

n C

ontr

ol

Con

firm

ing

PAIN

BUYING VISION

741

852

963
















visions),




“Is it because…



Is that correct?”

C1 I1 R1

C2 I2 R2

C3 I3 R3




Offering:


REASONS (R2) IMPACT (I2) CAPABILITIES (C2)


A

Tell me about the additional inventory you need to carry?



•Budgets to be missed?Is the VP Finance

concerned?




B

What is the shipping and fulfillment process used by current suppliers today? B When: Inventory has reached safety

stock levelWho: YouWhat: Could go to your personalized


C

What is the process for placing orders with multiple suppliers?





Value Justification / Analysis

Start with the End in Mind

Profits from increased revenue Examples:

Capabilities provided by your product / service that help the buyer increase revenues and profits

Time-to-market Ability to react to competition Increased market share Increased order volume

Reduced costs from displaced costs Examples:

Capabilities provided by your product / service that help the buyer eliminate an existing cost and improve profits

Headcount / labor costs Equipment / maintenance costs Inventory costs

Reduced costs from avoided costs Examples:

Capabilities provided by your product / service that help the buyer eliminate a future cost

Overtime Employee turnover Equipment downtime

Intangible benefits Examples:

Capabilities provided by your product / service that help the buyer but either have no dollar value or the buyer is unwilling to assign a dollar value

Employee morale Company image

Note: salesperson must know how his/her offering should impact the customer’s business


Enhancing the Buyer’s Vision with Value

Value

Measure the size of the pain

Add measurement to control questions in Box R2 and I2 to establish the cost of doing business today

Compute and confirm total cost of the way they are doing it today in Box R3 (and I3)

Vision

Create descriptive action visions of how one would be able to better function after having your capabilities

Link cost uncovered in Box R2 with capability visions described in Box C2

Summarize capability visions into a buying vision in C3 while restating the total value

Emotion

Display empathy when appropriate




Ope

n C

ontr

ol

Con

firm

ing

PAIN $

BUYING VISION $

741

852

963

C1 I1 R1

C2 I2 R2

C3 I3 R3







#?, %?, $?










visions),




“Is it because…


#?, %?, $?


Is that correct?”


Pain Sheet® - Situational Fluency Prompter®: ExamplePain:

Job Title & Industry:Offering:


REASONS (R2) IMPACT (I2) CAPABILITIES (C2)Is it because; Today…? Is this (pain) causing…? What if…; Would it help if…?

A

Tell me about the additional inventory you need to carry?• Is it a high cost to carry the additional inventory?• What is the cost? •Is there a minimum order you have to place to avoid additional charges? • How much do you spend on additional charges? • What is the minimum order?• How much space is devoted to carrying inventory? • What is the average days of inventory?• What is the monthly value per month to carry over? •What is your shrinkage factor? • Do you incur any corporate chargebacks?• What is the spoilage rate?




concerned?




B

What is the shipping and fulfillment process used by current suppliers today? •Is shipping costly?• What are your freight costs for all of your supplies? • How many suppliers do you have? • Are you leveraging any current discounts for shipping with suppliers? • How many orders do you place per month? • What is the cost to receive? • What is the impact on the environment of doing it this way?

B When: Inventory has reached safety stock level

Who: YouWhat: Could go to your personalized


C

What is the process for placing orders with multiple suppliers??•Today, how many different suppliers and ordering processes do you have? • How many FTE’s does it take? • How many orders do you place per month? • How long does it take to place each order?





Exercise

Build a Pain Sheet®

Purpose:

To construct a Pain Sheet® that includes capabilities of your offering(s) that addresses reasons for a particular customer key player’s pain. The Pain Sheet® is used to have a consultative, diagnostic conversation with a customer key player

Activities:

Include the primary reasons (for a key player’s pain) and the corresponding capabilities

Attempt to uncover at least 2 reasons and articulate 2 corresponding capabilities

Be sure to articulate the capabilities by crafting a “capability vision” that addresses each reason for the pain

Be sure to include other key players affected by the pain in the impact column

Develop “drill down” questions for each of the reasons from the Pain Sheet® framework. These questions should be designed to uncover the negative effect on the customer of not having your capabilities

The “drill down” questions typically drive to quantifiable loss that is usually expressed in “lost revenue” or “incurred cost”

Notes: Each capability vision should describe “when”, “who”, and “what”… meaning, “when” in time, a

business activity will prompt “who” in the organization to take “what” specific action via the capability being offered

A Pain Sheet® template has been provided on the page that follows Be prepared to share your work


Pain Sheet® - Situational Fluency Prompter®: Template


Offering:

REASONS IMPACT CAPABILITIES


A A When:

Who:

What:

B B When:

Who:

What:

C C When:

Who:

What:




Conduct role play of Vision Processing

Build Vision Processing Prompter for chosen group opportunity

Conduct role play of Vision Processing for chosen group opportunity



Buying Process




finalize contracts


Evaluate success

Sales StagePlan and Engage Diagnose

Activities



assessment



trends Identify new



Get pain admitted








•Dun & Bradstreet lists•Hoovers •Opportunity Assessment

•Pain Chain®•Key Players List•Contact Strategy•Business Development Prompter





Letter/e-mail Evaluation Plan

Verifiable Outcomes



Yield Probability

0% 25%

•Negotiate access to power•Confirm dialogue and agree upon next steps•Diagnose admitted pain and create or reengineer vision of Power Sponsor•Determine evaluation criteria and propose next steps•Confirm dialogue and agree upon plan of next steps



Gain Agreement to Explore Further


5. Gain Agreement to Explore Further

“Am I serious about moving this forward?

“Am I prepared to promote this to our decision-maker?”

Gauge the desire of the buyer to move to the next step

Move to Step 6 if you perceive the buyer is not “power” and has not volunteered access to “power”


Strategic Alignment Prompter (Steps 3 - 5)

Step 3: Get Pain Admitted

• Ask Situation Questions (if pain has not been admitted but the buyer is talking freely)• Ask Pain Questions / Menu of Pains (if pain has not been admitted and the buyer is not talking freely)• Once the pain has been admitted be sure to prioritize the admitted pain

Step 4: Develop Needs – Customer Buying Vision

Use the 9 Block Vision Processing Model®

• Diagnose and create a vision of a company-biased solution or• Reengineer a vision with company differentiators

Confirm buying vision and bridge to “Agreement to Explore Further” step

“So, if you had the ability to (restate capabilities) could you (restate goal)?” (Get buyers agreement)

Step 5: Gain Agreement to Explore Further

Option 1:“(Buyers name), I am reasonably sure we can provide you those capabilities. I want to check some things with my resources. If they confirm what we just discussed, will you further evaluate (company)?” (Get buyer’s agreement).

Option 2:“(Buyer’s name), I’m confident we can provide you those capabilities and I would like the opportunity to prove it to you. Would you give me that opportunity?” (Get buyer’s agreement).

If, during the process, the buyer volunteered access to power, schedule the meeting and end the call. If the buyer did not volunteer access to power go to Step 6.


Strategic Alignment: Steps 6 and 7a

Determine Ability to Buy and Negotiate Access to Power


6. Determine Ability to Buy

“Should I reveal the identity of power?”

Ask the buyer to describe the process for proceeding if they are pleased with the capabilities. Ask them to identify anyone else involved in making the decision

If a Sponsor, go to Step 7a

If a Power Sponsor, go to Step 7b

7a. Negotiate Access to Power

“Do I want to sponsor this person if I’m convinced the capabilities

meet my needs?”

Request access to “power”

If denied, strike a bargain

If buyer bargained, end the call and write a Sponsor Letter / e-mail

If buyer will not bargain, find another potential Sponsor


Strategic Alignment Prompter (Steps 6 and 7a)

Step 6: Determine Ability to Buy

“Let’s say you become convinced that it really is possible to (repeat buying vision) and you want to go forward, what do you do then? Who else is involved in this decision? How are they involved?”

Step 7a: Negotiate Access to Power

Request access to Power

“Could we set up a meeting with him/her?” (if denied, strike a bargain)

If “no”, strike a bargain (for access to Power)

“That may be too soon, but let me suggest this. I’m not sure of the best way to prove these capabilities. Whatever we end up doing will take some of my company’s time and resources but I’ll commit that to you today; however, if you become satisfied with the proof step we arrive at, would you then introduce me to (power person), is that fair?” (Get buyer’s agreement and end call).

End call (write a potential Sponsor Letter / e-mail)

“Thank you for your time. I will send an email summarizing today’s conversation. In that e-mail I will recommend a specific way for us to prove these capabilities to you. You should receive that e-mail by _______ .”


Gaining Access to Power

If vision and value are compelling, the prospect may volunteer access to power

Many will accept proof in exchange for access to power

How to handle those who will not grant access to power:

Find another potential Sponsor on your own

Ask for a contact they feel would sponsor you to power and get you an introduction


Potential Sponsor Letter/e-mail: Example

Steve (Office Manager),

Thank you for your interest in Office Depot. The purpose of this e-mail is to summarize my understanding of our meeting and our action plan.

We discussed the following:(1) Your primary critical issue is increasing operational cost, which have gone up 15% this year.

(2) Reasons for increasing operational costs: high costs of carrying additional inventory increasing shipping costs inefficient ordering process because of multiple suppliers

(3) Capabilities you said you needed: when ordering replenishment of cleaning and break room supplies you had a way to order only what you need at

the best price so that your cost to carry is minimized when inventory has reached safety stock level you could go to your personalized landing page, identify items you

need, check inventory, place your order, and have it delivered at your desired time without shipping costs when ordering multiple categories of items you had the ability to utilize a single website to order all items at once

and not have to use multiple ordering processes and receive one delivery with one invoice.

You said if you had these capabilities, you could lower your operational costs.

Our next steps(4) You agreed to move forward with our company (5) and said if we succeed in proving we can give you these capabilities, you will introduce me to Jim Smith, your VP Facilities. You mentioned Jim is not happy with the increasing facilities costs across all the locations.

(6) I would like to propose that we arrange a meeting with another Office Manager who has been using our cleaning and break room supplies services. I am confident you will like what you hear and introduce our company to the rest of your organization. I’ll call you Monday to discuss it further.

Sincerely, Bill Hart













Qualification Components:123456


Gaining Access to Power

A Second Vision Processing Conversation

Power SponsorPainReason AReason BReason C

Power SponsorPainReason AReason BReason C

SponsorPainReason AReason BReason C

SponsorPainReason AReason BReason C

I2 C2

RI

R2

I1 C1

R3 I3 C3

I2 C2

RI

R2

I1 C1

R3 I3 C3




Offering:

Increasing facility costs across all locationsVP Facilities, HealthcareCleaning Break Room Supplies


A Increasing operational costs at remote locations?• How much have costs increased?• Across locations, what are the inventory carrying costs? • How much do you spend on shipping supplies? • How many suppliers do you have for the locations? • How much does it cost to deal with so many suppliers?


concerned?

A When: Cleaning and break room supplies are ordered

Who: Various location end usersWhat: Could use the same website to

check inventory, order only the items and quantity they needed, and receive it by the next day without shipping costs?

B Increasing procurement costs?•How many different vendors provide CBS items?•Are items standard across all locations?•How many contracts are managed?•What is the cost of managing this many vendors? •Are locations staying within budget? •How is budget tracked? •What are the typical variances? •How many FTE’s are processing orders? •What is the average burdened cost for an FTE?

B When: Ordering cleaning and break room supplies

Who: Various location end usersWhat: Had one specific, standardized

list of approved corporate items, competitively priced and available for next day delivery?


Strategic Alignment: Steps 6 and 7b

Determine Ability to Buy and Determine Evaluation Criteria


6. Determine Ability to Buy

“Should I reveal the identity of power?”

Ask the buyer to describe the process for proceeding if they are pleased with the capabilities. Ask them to identify anyone else involved in making the decision

If a Sponsor, go to Step 7a

If a Power Sponsor, go to Step 7b

7b. Determine Evaluation Criteria

“Am I serious enough about this to disclose my buying process?”

“Does the evaluation approach help me mitigate my own risk?”

Ask open questions to uncover the buying process

Ask closed questions to influence the buying process

State “no new information” and pre-proposal review themes

End the call and write a Power Sponsor Letter / e-mail with an Draft Evaluation Plan included


Strategic Alignment Prompter (Steps 6 and 7b)

Step 6: Determine Ability to Buy

“Let’s say you become convinced that it really is possible to (repeat buying vision) and you want to go forward, what do you do then? Who else is involved in this decision? How are they involved?”

Step 7b: Determine Evaluation Criteria with the Power Sponsor

Ask open questions to uncover the buying process Ask closed questions to influence the buying process

“How would you like to evaluate us?” (Write down each request as you repeat it. Do not agree or disagree)

“If we get to a point where we might want to do business, will there be a… (Legal review?... Technical review?... Administrative approval?)”

“Will you want a proposal from me? (Get buyer’s agreement) As part of that proposal would you also want a value analysis?”

State “no new information” and suggest pre-proposal review

“When you ask me to prepare a proposal, I want you to know that it will come at the end of the evaluation process. It will simply document everything we will have done along the way.” (Get buyer’s agreement)

“I suggest we meet a week in advance of our delivery of the final proposal with a rough draft. This ensures there will be no surprises in the final proposal.” (Get buyer’s agreement and end call)

End call (write a Power Sponsor e-mail with Draft Evaluation Plan)

“Thank you for your time. I am going to take this list back with me. I will then make an initial attempt to put together a plan for you to evaluate our (company / product / services). You should receive the draft plan by __________. I will call you to discuss it.”


Potential Power Sponsor Letter/e-mail: Example

Jim (VP Facilities),

Thank you for meeting with Steve Jones and me earlier today. I believe it was time well spent for both Alliance and Office Depot.

We discussed the following:(1) Your primary critical issue is increasing facilities costs across all locations. You said costs have increased 15%.

(2) Reasons for increasing costs:□ Increasing operational costs at remote locations□ Increasing procurement costs

(3) Capabilities you said you needed:□ when cleaning and break room supplies are ordered the various location end users could use the same website

to check inventory, order only the items and quantity they needed, and receive it by the next day without shipping costs

□ when cleaning and break room supplies are ordered the various location end users had one specific, standardized list of approved corporate items, competitively priced and available for next day delivery

(4) You said if you had these capabilities, your office managers at remote locations could lower their costs, and Donna Moore , your VP Finance, could be on track to make her budgets for the year.

Our next steps(5) When I told you I was confident Office Depot could help you, you agreed to commit the resources needed to evaluate our ability to do so.

(6) Based on my knowledge to date, I am attaching a suggested evaluation plan for your further exploration of our company. Look it over with Steve, and I will call you on February 7, to get your thoughts.


Attachment: Draft Evaluation Plan













Qualification Components:1 Pain2 Reasons for the Pain3 Buying Vision4 Organizational Impact5 Agreement to Explore6 Evaluation Plan Set-up


Draft Evaluation Plan: Example

Attachment to Power Sponsor Letter/e-mail

[DRAFT]

Event Week √ Responsible Go/No Go

Interview with procurement and accounting February 14 OD/Alliance

Interview IT about back-end systems February 14 OD/Alliance

Interviews with end-users at other locations February 14 OD/Alliance

Summarize findings to management team February 14 OD/Alliance *

Provide CBS samples / product evaluation and conduct delivery match-ups

February 14 OD *

Conduct demonstration of ordering platform (proof of capabilities) February 21 OD *

Gain approval of implementation plan February 21 Alliance *

Discuss pricing and refined value proposition February 21 OD/Alliance *

Agree to success criteria February 21 OD/Alliance

Create market evaluation (Bid) February 28 OD/Alliance

Send agreements to legal February 28 OD/Alliance

Analyze competitive evaluations March 7 OD/Alliance

Present final proposal & gain agreement to move forward March 14 OD *

Gain legal approval March 21 OD/Alliance

Begin implementation March 28 OD

Measure success criteria Ongoing OD/Alliance

* Mutual decision to proceed


Power Sponsor Letter / e-mail: TDM Example

Jim (Finance),

Thank you for meeting with me earlier today. I believe it was time well spent for both our companies.

We discussed the following:(1) The primary critical issue is increasing operational costs.

(2) Reasons for not increasing operational costs□ Spending too much time reconciling invoices □ Spending too much time in approval process

(3) Capabilities you said you needed:□ When an order is entered the administrative professional could be assured that the invoice requirements have been

completed so that less time is spent reconciling invoices on the back-end□ When a special request order is entered you had a way for the order to be automatically compared to preset rules and routed

appropriately for approval so that you don’t spend too much time waiting for approvals

You said if you had these capabilities, you would be able to decrease your costs.

Our next steps(4) When I told you I was confident Office Depot could help, you indicated you felt so too and suggested we proceed with next steps.

(5) Based on my knowledge to date, I have included a list of what the next steps might be to help you further explore Office Depot. I will call you on Thursday, to get your thoughts.


Next Steps Week ofReview usage list June 22Speak with Accounts Payable about pay requirements June 22Present and gain approval on bid June 29Agree on implementation plan & success criteria June 29Set-up account June 29Conduct web-site demo & place first order June 29 or July 6

Jim (Finance),












Qualification Components:1 Pain2 Reasons for the Pain3 Buying Vision4 Agreement to Explore5 Suggested Next Steps




Conduct role play of buyer qualification process


Quid Pro Quo in Diagnose



Office Depot Sales Process: Propose & Close Stage

Buying Process



Select solution, evaluate risk, & finalize

contracts


Evaluate success

Sales Stage Plan and Engage Diagnose Propose and Close

Activities

New Business• Conduct research on

prospective accounts• Identify contacts

Retain and Grow• Monitor client

satisfaction• Research buying

trends• Identify new


• Create interest• Gain initial meeting

Get pain admitted Diagnose admitted pain

and create or reengineer vision of Sponsor






Execute Evaluation Plan steps

Engage appropriate overlay

Present solution

Refine value proposition

Agree upon transition plan

Identify success criteria

Create RFP to reflect Office Depot differentiators

Engage bid team Respond to RFP or bid (if

appropriate)

Finalize T’s & C’s


Dun & Bradstreet listsHoovers Opportunity AssessmentPain Chain®Key Players ListContact StrategyBusiness Development Prompter

Reference StoryPPS ScorecardPPS Funnel Calculator




Letter/e-mail Evaluation Plan

Transition plan Success Criteria Negotiating Worksheet Get-Give List Resolving Customer

Concerns (PSS ® Skill Guide Card)

Verifiable Outcomes



Signed Contract

Yield Probability

0% 25% 75%

• Refine value proposition• Agree upon transition

plan• Identify success criteria


“Go/No Go” Step Completion e-mail: Example

To: [email protected]: sjones@alliancehealthcarecom; [email protected] ; [email protected]: Evaluation Plan - step completionAttachment: Updated Evaluation Plan v2.doc

Jim and team,

I am pleased to report that another milestone has been completed. On February 21 we provided cleaning and break room samples for a product evaluation and it was approved. The changes you requested are reflected in the attached copy.

Our next milestone is the week of February 28 when we will go through a demonstration of the ordering platform.

Thank you again for your continued support of this project.

Sincerely,Bill Hart

To: [email protected]: sjones@alliancehealthcarecom; [email protected] ; [email protected]: Evaluation Plan - step completionAttachment: Updated Evaluation Plan v2.doc

Jim and team,

I am pleased to report that another milestone has been completed. On February 21 we provided cleaning and break room samples for a product evaluation and it was approved. The changes you requested are reflected in the attached copy.

Our next milestone is the week of February 28 when we will go through a demonstration of the ordering platform.

Thank you again for your continued support of this project.

Sincerely,Bill Hart


Three Sales within a Sale

LINE OF BUSINESS SALE

Operational Vision

“What capabilities do we need to meet our business goals?”


Operational Vision


TRANSITION SALE

Transition / Implementation Vision

“How do we get from where we are today to where the Line Vice

Presidents want to be?”

TRANSITION SALE




FINANCIAL SALE

Operational Vision+


“What is the overall value to the organization?”

FINANCIAL SALE

Operational Vision+





The Transition Sale: Transition / Implementation Vision


Operational Vision



Operational Vision


FINANCIAL SALE

Operational Vision+



FINANCIAL SALE

Operational Vision+



TRANSITION SALE




TRANSITION SALE





Evaluation Plan: Example

The Transition Sale


Interview with procurement and accounting February 14 √ OD/Alliance

Interview IT about back-end systems February 14 √ OD/Alliance

Interviews with end-users at other locations February 14 √ OD/Alliance

Summarize findings to management team February 14 √ OD/Alliance Go


February 14 √ OD Go

Conduct demonstration of ordering platform (proof of capabilities) February 21 √ OD Go













Transition Issues & Capabilities Worksheet

Person responsible: Facilities Manager

Transition issue: Potential inhibitors to rapid implementation

REASONS OUR TRANSITION CAPABILITIES

A Unaware of all buyers in organization A When placing orders all users could go to the web site and self-register via e-mail or have the website posted on your corporate purchasing website to ensure all buyers become aware of the new process.

B Invoicing procedures are inconsistently defined or not defined at all

B When placing orders, end-users would have to fill out required, validated fields to ensure accurate billing.



The Financial Sale: Operational Vision + Transition / Implementation Vision


Operational Vision



Operational Vision


FINANCIAL SALE

Operational Vision+



FINANCIAL SALE

Operational Vision+



TRANSITION SALE




TRANSITION SALE















Gain approval of implementation plan February 21 √ Alliance Go












Basic Principles

THE BEST RELATIONSHIPS ARE BASED ON VALUE

PEOPLE MAKE EMOTIONAL DECISIONS FOR LOGICAL REASONS

BASIC PRINCIPLE

BASIC PRINCIPLE


Refined Value Proposition

Reasons for participation:

Initiating

Closing

Discounting

Must be done

Others?

Early adopters (visionaries) vs. Majority (pragmatic and conservative)


Refined Value Proposition

What Will Be Measured?

Profits from increased revenue Examples:

Capabilities provided by your product / service that help the buyer increase revenues and profits

Time-to-market Ability to react to competition Increased market share Increased order volume

Reduced costs from displaced costs Examples:

Capabilities provided by your product / service that help the buyer eliminate an existing cost and improve profits

Headcount / labor costs Process improvement Inventory costs

Reduced costs from avoided costs Examples:

Capabilities provided by your product / service that help the buyer eliminate a future cost

Overtime Employee turnover Equipment downtime

Intangible benefits Examples:

Capabilities provided by your product / service that help the buyer but either have no dollar value or the buyer is unwilling to assign a dollar value

Employee morale Company image


Refined Value Proposition: Example for VP Facilities

“Based on current usage of cleaning and break room supplies, we believe

Alliance Healthcare System should be able to reduce operating

expenses by $217,000 per year

through the ability to consolidate their vendors and streamline their

processes for improved efficiency.”

“Based on current usage of cleaning and break room supplies, we believe

Alliance Healthcare System should be able to reduce operating

expenses by $217,000 per year

through the ability to consolidate their vendors and streamline their

processes for improved efficiency.”

Sources for information: 1) Office Manager2) Accounting3) VP Facilities

Value Proposition calculations being made:Eliminate shipping costs= $85K (3) Reduce supplies costs with non-premium products by 8% = $68K (1)Eliminate minimum order & expediting fees= $9K (3)Reduce number of invoices to be processed by 40%= $55K (2)












Gain approval of implementation plan February 21 √ Alliance Go

Discuss pricing and refined value proposition February 21 √ OD/Alliance Go











Success Criteria: Example

Part of Business Review

Criteria Baseline Q1 Q2 Q3 Q4

Shipping costs for cleaning and break room supplies/year 1,3

$85K / year

Minimum order fees 2 $9k / year

Number of invoices processed 2 250 / month

Inventory value (1 month extra per location) 2

$68K / month

CBS spend per month 1,3 $70K / month

(1) VP Facilities (2) Office Manager (3) Procurement


Success Criteria: Leveraging Success


I2 C2

RI

R2

I1 C1

R3 I3 C3

Reference Story

Situation:Critical issue:Reasons:Capabilities:We provided:

Results:

Reference Story

Situation:Critical issue:Reasons:Capabilities:We provided:

Results:


This is __________ (salesperson name) with __________ (your company). You and I

haven’t spoken before, but we have been working with __________ (specific industry)

organizations for the last ___ (#) years. A common trend we are hearing lately from other

__________ (job title) is their frustration (difficulty) with _______________ (job title’s likely

critical issue / pain) [resulting from ______ (articulate common reasons)]. We have been

able to help our customers address this issue. Would you like to know how?


Quid Pro Quo in Propose and Close



Sales Process Flow Model

Potential opportunity starting points

Conduct pre-call planning and research

Stimulate interest

Define “pain” or critical business issue

Diagnose and create vision of company-biased solution

Perform opportunity assessment

Select competitive strategy

Reengineer vision with company differentiators


Develop & manage Evaluation Plan(sample steps)

• Summarize findings• Prove capabilities• Present preliminary solution• Determine value analysis/s. criteria• Gain all approvals (L/T/A)• Conduct pre-proposal review

Reach final agreement

Measure and leverage success criteria

Go?

At power

?

Yes Yes

Yes

No

NoYes Yes

Yes

No

NoNo

Latent or Admitted Pain Vision or Active Evaluation



Active Opportunities

Customer Buying Process



Select solution, evaluate risk, & finalize contracts


Evaluate success

Sales Stages



assessment




Get pain admitted Diagnose admitted pain and

create or reengineer vision of Sponsor

Negotiate access to power Confirm dialogue and agree

upon next steps Diagnose admitted pain and

create or reengineer vision of Power Sponsor





Present solution Refine value proposition Agree upon transition

plan Identify success criteria Create RFP to reflect

Office Depot differentiators


appropriate) Finalize T’s & C’s

Engage implementation manager

Execute implementation plan

Engage IT Integration manager

Test order placement and billing

Measure success criteria Resolve customer

problems Manage Office Depot

team Implement Competitive

Strategies Conduct business review Monitor client satisfaction

Verifiable Outcome

Opportunity created in Sales Online


Signed contract First orders placed


Dun & Bradstreet lists Hoovers Opportunity Assessment Pain Chain® Key Players List Contact Strategy Business Development

Prompter Reference Story PPS Scorecard PPS Funnel Calculator

PSS® Pre-Call Planner 9-Block Vision Processing

Model® Pain Sheet® Sponsor Letter/e-mail Power Sponsor Letter/e-mail Evaluation Plan



Implementation Plan Success Criteria Reference Stories

Yield Percentages

25% 75% 100%

Where is the buyer?Where are you?


Active Opportunities

How to Approach

Ask yourself, “Was it ACTIVE when I became aware of it?”

Is the customer at “vision” or “evaluation”?

Who has influenced the vision (internal, competition, 3rd party)?

Who is controlling the buying process?

Perform an opportunity assessment to determine “should I engage or not?”

Quick assessment

Detailed assessment

Select an appropriate competitive strategy

Lead strategy

Fall-back position

Consider disengaging if you can’t reengineer the requirements


Opportunity Assessment

“Quick Assessment”: Example

PAIN

Do we know the pain?... Is the customer likely to act?

POWER

Do we know who “power” is?... Are we aligned with the right people to win?

VISION

Is our “solution” differentiated?... Does the customer prefer our offering?

VALUE

Does our offering provide mutual value?

CONTROL

Can we exert control upon the buying process?

Sale = Pain x Power x Vision x Value x ControlSale = Pain x Power x Vision x Value x Control


BD - Win Probability / Project Viability Scoring


Opportunity Assessment (Worksheet)

“Detailed Assessment”: ExampleOpportunity Assessment Worksheet Assessment date: _______

Answer key: (Y) = Yes, (N) = No or (?) = UnsureUs

competition = “Quick 5” assessment questions

PAIN – “Is the customer likely to act?” 1 Has high priority pain or potential pain been identified?2 Have we validated the pain with the owner(s)?3 Do we understand how others are impacted by the pain?4 Is there budget in place?5 Is there a timeframe to address the pain? POWER – “Are we aligned with the right people to win?” 6 Do we understand the roles of the key players for this opportunity?7 Do we understand who will influence the decision and how?8 Are we connected to the people in power?9 Do we have the support of the key players?10 Are we connected to the people with access to funds? VISION – “Does the customer prefer our offering?” 11 Did we help establish the initial requirements?12 Does our offering fit their needs / requirements?13 Have we created or reengineered a differentiated vision for the key players?14 Do the key players support our solution approach? VALUE – “Does our offering provide mutual value?” 15 Do we understand the benefit to each key player / corporate?16 Have the key players quantified and articulated the benefits of our offering to us?17 Has a (corporate) value analysis been agreed upon?18 Does the value analysis warrant access to funds?19 Is there sufficient value to us? Profitable? Strategic? CONTROL – “Can we exert control upon the buying process?” 20 Do we understand the decision making process and criteria for the key players?21 Do we understand the proof and satisfaction requirements for the key players?22 Do we understand the customer’s buying practices, policies and procedures?23 Has the customer agreed to an evaluation process with us?24 Can we control the evaluation process?25 Can we successfully manage our risk?


Competitive Strategies

Preemptive

Get there first, set the requirements, differentiate yourself, be Column A

ACTIVE OPPORTUNITIES

Lead Strategies

Head-to-head

Direct or frontal approach

End-around

Indirect or flanking approach

Fall Back Positions

Divide and conquer

Divisional or fragment approach

Stall

Containment or delay approach

Based on The Art of War by Sun Tzu


Basic Principle

MAKE YOURSELF EQUALBEFORE

YOU MAKE YOURSELF DIFFERENT

BASIC PRINCIPLE


How Organizations Buy – “Changing the Rules”

Requirements Company A Company B Company C

“ADD TO”

“TAKE AWAY”

“DIFFERENTIATE”


Vision Reengineering – Questions to Ask

SALESPERSON ACTIVITY QUESTION(S) TO ASK

1 Participate in original vision

2Bias original vision with capability vision

questions

3 Explore current method

4Diagnose current method with bias and

measurement

5 Summarize current method

Lead the buyer to the critical business issue (pain) and measure

6 Explore impact

7 Expand impact

8 Summarize impact

9Confirm new buying vision

(original vision + new capability visions)

BOX


9 Block Vision Processing Model® - Vision Reengineering


Ope

n C

ontr

ol

Con

firm

ing

PAIN $

REENGINEERED BUYING VISION $

163

274

985

CURRENT VISION

“What is the effect on you and your business of

doing it this way?”

C1 I1 R1

C2 I2 R2

C3 I3 R3







#?, %?, $?




“How do you see yourself using this

(repeat initial vision)?”

(Clarify initial vision in when, who, what

format)

“Are you also looking for a way to…?”

Would it help if you also had a way to …?”

Capability Vision?...Capability Vision?...Capability Vision?...

“”When you called, you were looking at (product / service) to give you the ability to (original vision)Today, you also said you

needed (capability visions)If you had… could you

(verbalize goal)?”

“How do you do it today without this capability?”

(“It” = perform the function they want to

improve)

“Today…?


#?, %?, $?

“So, the way you do it today is…

Is that correct?”




Offering:





concerned?









Confirming the Reengineered Vision

C2 I2 R2

C3 I3 R3


Ope

n C

ontr

ol

Con

firm

ing

PAIN $

BUYING VISION $

163

274

985

CURRENT VISION

C1 I1 R1

BUYING VISION $

Reengineered VisionSummarize / Confirm New Value $

Are you now willing to change your requirements to include… so that

you can (verbalize goal)?”

Are you now willing to change your requirements to include… so that

you can (verbalize goal)?”

“Will you ask everyone else to prove these additional capabilities

as well?”

“Will you ask everyone else to prove these additional capabilities

as well?”

Step 5: Gain Agreement to Explore Further

Option 2:“(Buyer’s name), I’m confident we can provide you those capabilities and I would like the opportunity to prove it to you. Would you give me that opportunity?” (Get buyer’s agreement).


Exercise: Vision Reengineering Role Play

Strategic Alignment (Step 4)

Purpose:

To focus on the skills needed to change a prospect’s existing vision to one with a bias toward your capabilities

Activities:

Break into role play groups

Follow the blocks in the new sequence using the prompter (9 Block Vision Processing Model® - Vision Reengineering) provided. Focus on following the process, not on personal skills such as eye contact. Be sure to use the Enhanced Pain Sheet® (within the following pages) to assist in the control row of the 9 boxes

Each person should get an opportunity to play the “buyer” and the “salesperson”. Use an observer in the rotation if possible


Notes:

The premise is that you find (or are introduced to) an opportunity where a vision of a solution already exists. To truly reengineer this opportunity, you must change or expand the existing vision. It is necessary to first participate in the prospect’s existing vision and “make yourself equal before you make yourself different”

The role play should begin with the buyer discussing their “current vision” (recommendation: select a capability vision from the “capabilities” column on the Pain Sheet®)


9 Block Vision Processing Model® - Vision Reengineering


Ope

n C

ontr

ol

Con

firm

ing

PAIN $

REENGINEERED BUYING VISION $

163

274

985

CURRENT VISION

“What is the effect on you and your business of

doing it this way?”

C1 I1 R1

C2 I2 R2

C3 I3 R3







#?, %?, $?




“How do you see yourself using this

(repeat initial vision)?”

(Clarify initial vision in when, who, what

format)

“Are you also looking for a way to…?”

Would it help if you also had a way to …?”

Capability Vision?...Capability Vision?...Capability Vision?...

“”When you called, you were looking at (product / service) to give you the ability to (original vision)Today, you also said you

needed (capability visions)If you had… could you

(verbalize goal)?”

“How do you do it today without this capability?”

(“It” = perform the function they want to

improve)

“Today…?


#?, %?, $?

“So, the way you do it today is…

Is that correct?”


Pain Sheet® - Situational Fluency Prompter®: ExamplePain:

Job Title & Industry:Offering:



A

Tell me about the additional inventory you need to carry?• Is it a high cost to carry the additional inventory?• What is the cost? •Is there a minimum order you have to place to avoid additional charges? • How much do you spend on additional charges? • What is the minimum order?• How much space is devoted to carrying inventory? • What is the average days of inventory?• What is the monthly value per month to carry over? •What is your shrinkage factor? • Do you incur any corporate chargebacks?• What is the spoilage rate?




concerned?




B

What is the shipping and fulfillment process used by current suppliers today? •Is shipping costly?• What are your freight costs for all of your supplies? • How many suppliers do you have? • Are you leveraging any current discounts for shipping with suppliers? • How many orders do you place per month? • What is the cost to receive? • What is the impact on the environment of doing it this way?

B When: Inventory has reached safety stock level

Who: YouWhat: Could go to your personalized


C

What is the process for placing orders with multiple suppliers??•Today, how many different suppliers and ordering processes do you have? • How many FTE’s does it take? • How many orders do you place per month? • How long does it take to place each order?







Offering:





concerned?









Request for Proposal (RFP): Response Tactics

1. Call the RFP sender, offer response to RFP in exchange for “three interviews” (quid pro quo). If granted, go to #4 *

2. If denied, send a letter stating that it will be impossible to respond to the RFP without the interviews

3. When called again, offer to respond to the RFP in exchange for three one-hour interviews

4. When interview is granted, ask each line executive the question, “What are the two primary issues behind the project?”, and create or reengineer buying visions

5. Respond to the RFP as agreed

6. Send a cover letter with the proposal with an “executive summary” to the person controlling the RFP. Document the buying vision of each line executive

7. Highlight the key capabilities in the proposal that match the buying visions of the power people on the buying committee

8. Send a copy of the letter and response to the line executive with whom you had the best rapport

* If RFP is regulated, use strategy during the RFI stage. If no other option request a Bidder’s Conference

Your Senior Executives must be in alignment with this strategyYour Senior Executives must be in alignment with this strategyYour Senior Executives must be in alignment with this strategyYour Senior Executives must be in alignment with this strategy


RFP Initial Response Letter: Example

Mr. / Ms. Consultant:

Thank you for the opportunity to respond to the proposal from your client. We appreciate your confidence in us. As I mentioned on the phone, our practice is not to respond to Requests for Proposals until we have personally interviewed the department heads impacted by the scope of the project. We have found this practice enables us to be more thorough in our work; our potential client sees a more satisfactory implementation of the project. The client is the major beneficiary of this practice.

If you would arrange for us to meet with the VP Operations*, VP Finance*, and the CIO*, we will then invest the time and resources to thoroughly respond to the RFP to your satisfaction.

In the meantime, I have enclosed some detailed information on our products and services. If you have any further questions, don’t hesitate to call.

Sincerely,

Salesperson


Thank you for the opportunity to respond to the proposal from your client. We appreciate your confidence in us. As I mentioned on the phone, our practice is not to respond to Requests for Proposals until we have personally interviewed the department heads impacted by the scope of the project. We have found this practice enables us to be more thorough in our work; our potential client sees a more satisfactory implementation of the project. The client is the major beneficiary of this practice.

If you would arrange for us to meet with the VP Operations*, VP Finance*, and the CIO*, we will then invest the time and resources to thoroughly respond to the RFP to your satisfaction.

In the meantime, I have enclosed some detailed information on our products and services. If you have any further questions, don’t hesitate to call.

Sincerely,

Salesperson

* These job titles are determined after evaluating the scope of the RFP


RFP “Executive Summary” Letter: Example


Thank you for arranging our meeting with the VP Operations, VP Finance, and the CIO. Their input proved to be invaluable in the preparation of our response.

Attached is our response to your RFP. Based on our interviews, seven primary capabilities are sought by these executives:

I have highlighted the four (4) capabilities which are within the RFP [out of the 163 questions].

Capability #1,

Capability #2,

Capability #3,

Capability #4,

I have added three (3) capabilities that were outside the scope of the RFP as numbers 164, 165 and 166. The executives interviewed said these specific capabilities should also be included in the RFP.

Capability #5,

Capability #6,

Capability #7,

Again, thank you for the opportunity to propose our products / services to your client. I look forward to working with you toward a successful implementation of these capabilities.

Sincerely,

Salesperson

cc: J.D. Smith, VP Finance, TGI


Thank you for arranging our meeting with the VP Operations, VP Finance, and the CIO. Their input proved to be invaluable in the preparation of our response.

Attached is our response to your RFP. Based on our interviews, seven primary capabilities are sought by these executives:

I have highlighted the four (4) capabilities which are within the RFP [out of the 163 questions].

Capability #1,

Capability #2,

Capability #3,

Capability #4,

I have added three (3) capabilities that were outside the scope of the RFP as numbers 164, 165 and 166. The executives interviewed said these specific capabilities should also be included in the RFP.

Capability #5,

Capability #6,

Capability #7,

Again, thank you for the opportunity to propose our products / services to your client. I look forward to working with you toward a successful implementation of these capabilities.

Sincerely,

Salesperson

cc: J.D. Smith, VP Finance, TGI


Differentiation Grid

100CUSTOMER VALUE

UNIQUENESS


Tactics for Addressing Competition / Incumbents: Example for TDM

StaplesStaples

Key Vulnerabilities Response

1. Account management team

•How does your current vendor manage the account relationship? •How often do you see your representative? •What do you like about them? •If you could change 3 things about the current relationship, what would it be?

2. Lack of technology resources

•How do they provide for your technology needs? •How do you receive support on technology? •Do you have a dedicated account based resource for technology?

Regional Regional ProviderProvider

Key Vulnerabilities Response

1. Inconsistent pricing structure

•How long have you been with them? •What is their pricing philosophy? •How does it affect your budgeting process? •Have you audited the pricing? •Have you found it consistent?

2. Expertise•How do they support your current business initiatives?



TDM (do not teach Vision Reengineering or RFP strategy)

Identify top 2 competitors and their key vulnerabilities

Identify Office Depot differentiators that can address vulnerabilities and come up with questions to ask the customer

Major/Global/Public

Conduct Vision Reengineering Role Play

Instructor will conduct group differentiation exercise


Office Depot Sales Process: Propose & Close Stage

Buying Process



Select solution, evaluate risk, & finalize

contracts


Evaluate success

Sales Stage Plan and Engage Diagnose Propose and Close

Activities

New Business• Conduct research on

prospective accounts• Identify contacts

Retain and Grow• Monitor client

satisfaction• Research buying

trends• Identify new


• Create interest• Gain initial meeting










Present solution

Refine value proposition Agree upon transition

plan Identify success criteria

Create RFP to reflect Office Depot differentiators


appropriate)

Gain final agreement Finalize T’s & C’s






Pain Sheet® Sponsor Letter e-mail Power Sponsor Letter/




Verifiable Outcomes



Signed Contract

Yield Probability

0% 25% 75%

• Gain final agreement• Finalize T’s & C’s


Basic Principles

IF YOU ARE NOT READY TO WALK,YOU ARE NOT READY TO SELL

DON’T CLOSE BEFORE IT IS CLOSEABLE

BASIC PRINCIPLE

BASIC PRINCIPLE


Buying Tactics

Buyers:

Consider many alternatives

Know position in advance

Assign sponsor to each alternative

Never let you know you are winning

Never let you know you are losing

Price negotiate in reverse preference order

Take it away from you at least once

Are aware of your deadlines

Will take what you put on the table


Negotiating

Knowledge is power

Plan before you begin

Is it closeable during this meeting?

Know what you will accept

Know what you are willing to give

Seek to understand the true interests underlying buying positions taken

Give reluctantly and slowly (if necessary)

Withstand up to three “squeezes” by the buyer

Don’t give without getting

Be willing to walk away today

Salesperson must overcome emotional hurdle first

Buyer must believe he/she is getting the best price

Use a mutual win approach

If less than 100% of quota, do not negotiate alone


Negotiating Worksheet: Example

Is it closeable today? Power to buy? Payback agreed to? VP Facilities L/T/A approvals? VP Facilities Plan completed? Known cost since: 2 months

Stand 1 (Plan):

“Our published plan shows an implementation starting on Monday. Is this issue worth the delay?”

Stand 2 (Value):

“When we reviewed the value, you told me you would be able to save over $200,000 per year. Is this still accurate?”

Stand 3 (Pain):

“The reason we have spent the last 2 months together is because your costs across your facilities is increasing. That issue is not going to go away until you gain these new capabilities. Has something changed?”

Salesperson: “The only way I could do something for you is if you could do something for me.”

Buyer (should ask): “Like what?”

GET“Is it possible for you to… provide us an introduction to another line of business within your organization? Is that possible?”

If the buyer indicates a concession, present your “give”

GIVE“If you can… provide us an introduction to another line of business, then we are prepared to offer __________ which is worth $__________. Can we go forward on that basis?”


Get-Give List

Your priority GET

Value

GIVEProjected customer priority

1

2

3

4

5

NOT NEGOTIABLE

1

2

3


Quid Pro Quo in Propose and Close



Office Depot Sales Process: Implement & Fulfill Stages

Buying Process




finalize contracts


Evaluate success

Sales Stage Plan and Engage Diagnose Propose and Close Implement Fulfill

Activities

New Business Conduct research on

prospective accounts Identify contacts



trends Identify new












Present solution Refine value

proposition Agree upon transition



Engage bid team Respond to RFP or bid

(if appropriate) Finalize T’s & C’s





Measure success criteria

Resolve customer problems

Manage Office Depot team

Implement Competitive Strategies

Conduct business review

Monitor client satisfaction






Pain Sheet® Sponsor Letter/e-mail Power Sponsor Letter/




• Implementation Plan •Success Criteria•Reference Stories

Verifiable Outcomes


Gain agreement to Evaluation Plan Signed Contract First orders placed

Yield Probability

0% 25% 75% 100%

•Measure success criteria


Success Criteria: Example

Results After 6 Months


Shipping costs for cleaning and break room supplies/year 1,3

$85K / year

0 0

Minimum order fees 2 $9k / year 0 0

Number of invoices processed 2 250 / month

225 200

Inventory value (1 month extra per location) 2

$68K / month

$50K / month

$40K / month

CBS spend per month 1,3 $70K / month

$70K / month

$60K / month

(1) VP Facilities (2) Office Manager (3) Procurement


REVIEW COACHING MANUAL



Managing The Sales Business Customer Buying Process





Evaluate success

Sales Stages



assessment

















appropriate) Finalize T’s & C’s









Verifiable Outcome












Yield Percentages

25% 75% 100%


Customer Buying Process





Evaluate success

Sales Stages



assessment
















Engage bid team Respond to RFP or bid

(if appropriate) Finalize T’s & C’s









Verifiable Outcome












Yield Percentages

25% 75% 100%

The Sales Online Sales Cycle is Supported Within the New Sales Process

Lead

Prospect

Opportunity Customer


Course Objectives

Help Managers:

Build more predictable and productive pipeline Apply consistent pipeline grading habits Anticipate and minimize shortfalls

Enable seller success Identify skill problems Apply focused coaching for action Determine accurate status of opportunities

Increase manager productivity Manage by exception Leverage resources Simplify internal communications

Improve effectiveness sales-sales manager interactions Company Team Individual


Course Agenda

Discuss Key Management Roles and Activities that support a sales process

Pipeline Management Standards

Manage to Verifiable Outcomes

Perform Opportunity Analysis and Pipeline Review

Determine Gap by Sales Unit and by Seller

Opportunity Coaching

Use Strength of Sale Check

Conduct Opportunity Coaching

Review Stuck Opportunity Reports

Personnel Development

Identify Skill Gaps and Conduct Individual Coaching

Personalize approach to Development Planning


• Overall revenue production• Reasonable margins• Pipeline metrics

Revenue

• Forecast accuracy• Sales Process / CRM adoption and usage• Eliminate surprises

Predictability

• Time utilization• Resource utilization• Sales pursuit costs

Cost of Sales

• % of quota attainment by seller• Seller turnover ratio• Average length of ramp-up time

Seller Development

Sales Management Focus Areas – The Key Metrics


Competency Focus Areas for This Course

Sales Management and Coaching®

Planning & Execution Management

Coaching & Development

LeadershipPipeline Analysis

Communication

Illustrative Overall Sales Management

Competency Model

Illustrative Overall Sales Management

Competency Model

Budgeting Planning

ReportingResource

Management

Performance Management

Sales Execution


Sales Process

Sales MethodCRM

Sales Management Either Enables or Disables the Enterprise

Information

Goals, Investment

and Resources

Sales Managers Play a Critical Role

for How Salespeople Are Connected to

Sales Performance


Sales Managers Provide an Ongoing Reality Check

CRM ReportsCRM Reports

CustomerCustomer

Isolation

Sales ExecutiveSales Executive

Sales ManagerSales Manager

SellerSeller

A Snapshot of Reality is Provided at Key Cadence EventsA Snapshot of Reality is Provided at Key Cadence EventsA Snapshot of Reality is Provided at Key Cadence EventsA Snapshot of Reality is Provided at Key Cadence Events


Cadence Calendar Summary View – Example

Q1 Q2 Q3 Q4

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Territory Planning

Q A A

Account Plan Development

Q Q Q A A

Customer Account Review

Q Q Q Q A A

Pipeline Reviews

N N M M M M M M M M M B

Forecast Call B B B B B B B B B B B B

Opportunity Reviews

N N N N N N N N N N N N

Key: A=Annual; Q=Quarterly; M=Monthly; B=Bi-weekly; N = As Needed; W = Weekly

Key: A=Annual; Q=Quarterly; M=Monthly; B=Bi-weekly; N = As Needed; W = Weekly


Structure of Sales Management Fundamentals Course

Topic Areas Pipeline FocusKey Sales-Facing

InteractionTools / Reports

Pipeline Management

Standards

Quality

VolumePipeline Review

• Opportunity Review Checklist

• PPVVC Questions

• Pipeline Yield Report

• Pipeline Analysis Worksheet


VelocityOpportunity

Review

• Opportunity Review Checklist

• Strength of Sale Check

• Stuck Opportunity Report

• GRAF Coaching Model


History andPatterns

All• Coaching Prompters

• GRAF Coaching Model


Sales Management Flow Chart

“Managing the Sales Business”

IdentifySkill Issue

IdentifySkill Issue

Analyze Plan /

Opportunity

Analyze Plan /

Opportunity

Analyze Pipeline

Analyze Pipeline

Coach Skill Issue

Coach Skill Issue

Coach Plan / Opportunity

Coach Plan / Opportunity

Follow-upFollow-up

CCOOAACCHH

DDIIAAGGNNOOSSEE

Management Management by exceptionby exception

Develop / Review Plan

Develop / Review Plan

Update CRM

Update CRM


Course Agenda





Determine Gap to Plan Overall and by Seller









Office Depot Sales Process Elements


Buying Process




finalize contracts


Evaluate success

Sales Stage


Verifiable Outcomes


Gain agreement with Power Sponsor to

next steps

Signed contract / Gain verbal

agreement to buyFirst orders placed 7-7-7 Goals

Accomplished

Yield Probability

25% 75% 100%


Key Players List

Contact Strategy


Power Sponsor Letter/e-mail

Transition Plan

Get-Give List Implementation PlanReference Story

Success Criteria


Pipeline Milestones

Yield Sales Process Step Sales Execution Activities and Verifiable Outcomes

Plan and Engage

Conduct opportunity planning Conduct opportunity assessment Create interest Gain initial meeting

0% 0% Opportunity Created In Sales Online

Diagnose

Get pain admitted Diagnose and document admitted pain and create or reengineer

vision of Sponsor Negotiate access to power Diagnose and document admitted pain and create or reengineer

vision of Power Sponsor Determine evaluation criteria and propose next steps Confirm dialogue and agree upon plan of next steps

25% 25% Gain agreement with Power Sponsor to next steps

Propose and Close

Execute Evaluation Plan steps Engage appropriate overlay Present solution Refine value proposition Agree upon transition plan Identify success criteria Create RFP to reflect Office Depot differentiators or Respond to RFP

or Bid Engage bid team Finalize T’s & C’s

75% 75% Signed contract / Gain verbal agreement to buy

Implement

Engage implementation manager Execute implementation plan Engage IT Integration manager Test order placement and billing

100% 100% First Orders Placed


Basic Principle

SALESPEOPLE WILL RESPECT WHAT THEIR MANAGERS INSPECT

BASIC PRINCIPLE


The Sponsor Letter within the Pipeline Milestones

YieldSales Process

StepSales Execution Activities and Verifiable Outcomes

Plan and Engage



Diagnose

Get pain admitted Diagnose and document admitted pain and create or

reengineer vision of Sponsor Negotiate access to power Diagnose and document admitted pain and create or

reengineer vision of Power Sponsor Determine evaluation criteria and propose next steps Confirm dialogue and agree upon plan of next steps


Propose and Close

Execute Evaluation Plan steps Engage appropriate overlay Present solution Refine value proposition Agree upon transition plan Identify success criteria Create RFP to reflect Office Depot differentiators or Respond

to RFP or Bid Engage bid team Finalize T’s & C’s


Implement



SPONSOR LETTERSPONSOR LETTERSPONSOR LETTERSPONSOR LETTER

Dear Steve,

1 Recall Pain2 Recall Reasons3 State Buying Vision4 Recall Agreement to Explore5 Restate Bargain for Power6 Suggest Proof / Next Step



Verifiable Outcome: Potential Sponsor e-mail: Example

























Qualification Components:1 Pain2 Reasons3 Buying Vision4 Agreement to Explore5 Bargain for Power6 Proof / Next Step


Power Sponsor Letter/e-mail and Evaluation Plan within the Pipeline

Milestones

YieldSales Process

StepSales Execution Activities and Verifiable Outcomes

Plan and Engage



Diagnose


reengineer vision of Sponsor Negotiate access to power Diagnose and document admitted pain and create or reengineer

vision of Power Sponsor Determine evaluation criteria and propose next steps Confirm dialogue and agree upon plan of next steps


Propose and Close

Execute Evaluation Plan steps Engage appropriate overlay Present solution Refine value proposition Agree upon transition plan Identify success criteria Create RFP to reflect Office Depot differentiators or Respond to

RFP or Bid Engage bid team Finalize T’s & C’s


Implement



POWER SPONSOR LETTERPOWER SPONSOR LETTERPOWER SPONSOR LETTERPOWER SPONSOR LETTER

Dear Jim,

1 Recall Pain2 Recall Reasons3 State Buying Vision4 Include Organizational Impact5 Recall Agreement to Explore6 Suggest Evaluation Plan

Sincerely, Bill HartEVALUATION PLANEVALUATION PLANEVALUATION PLANEVALUATION PLAN


Verifiable Outcome: Potential Power Sponsor e-mail: Example



























Draft Evaluation Plan: Example

Attachment to Power Sponsor e-mail

[DRAFT]


Interview with procurement and accounting February 14 OD/Alliance

Interview IT about back-end systems February 14 OD/Alliance

Interviews with end-users at other locations February 14 OD/Alliance

Summarize findings to management team February 14 OD/Alliance *


February 14 OD *

Conduct demonstration of ordering platform (proof of capabilities) February 21 OD *













Power Sponsor Letter / e-mail: Shorter Example

Jim (Finance),












Jim (Finance),












Qualification Components:1 Pain2 Reasons for the Pain3 Buying Vision4 Agreement to Explore5 Suggested Next Steps


Opportunity Review Checklist Check these items and outcomes below to verify status

Plan and Engage


Name and title of potential Sponsor Business development approach and job aids used Appointment or call logged in calendar

0% Opportunity Created In Sales Online

Diagnose


reengineer vision of Sponsor Negotiate access to power

Diagnose and document admitted pain and create or reengineer vision of Power Sponsor

Determine evaluation criteria and propose next steps Confirm dialogue and agree upon plan of next steps

Pain articulated by potential Sponsor Differentiated vision and value articulated by Sponsor Power Sponsor’s name and title Sponsor Letter/e-mail sent and content agreed upon

Pain articulated by potential Power Sponsor Differentiated vision and value articulated by Power Power Sponsor Letter/e-mail & draft Evaluation Plan sent Evaluation Plan modified or agreed upon

25% Gain agreement with Power Sponsor to next steps

Propose and Close

Execute Evaluation Plan steps Engage appropriate overlay Present solution Refine value proposition Agree upon transition plan Identify success criteria Create RFP to reflect Office Depot differentiators or

Respond to RFP or Bid Engage bid team Finalize T’s & C’s

First step accomplished (Go/No Go Step Letter)

Customer approval process understood? Customer key players identified and engaged (as

applicable)?

Transition issues identified and addressed?

Negotiating Worksheet and Get-Give List Who is negotiating? What is agreed upon?

75% Signed contract / Gain verbal agreement to buy

Implement


Implementation activities have been followed up

When? Who? Status?

100% First Orders Placed


Potential Sponsor and Power Sponsor Letters

Common Problems

Not enough of them

The “critical issue” is really a reason, or is not applicable for the job title

The “pain” doesn’t relate to value

The “pain” is stated as a goal

The capabilities are stated in product terms, not as a clear vision

When, Who, What, So that

Not written soon after the call

Missing one or more of the qualification components

Customer agreement with the content is not verified

Salespeople are trying to re-word the letter for an “active” opportunity


Exercise: Review of (Potential) Power Sponsor Letter/ e-mail

Purpose: To review the attached letter and find the missing or misstated qualification

components

Activities: As individuals:

Assume the following scenario:• You are the manager of the salesperson who wrote the following letter

• The salesperson is requesting that one of your very busy and expensive Support Resources / Product Managers accompany him/her on the next call

Review the letter and highlight the qualification components Determine what you would ask the salesperson and why Be prepared to share your thoughts with the other group


Potential Power Sponsor Letter / e-mail: Example

“What is Wrong With This Letter?”



We discussed the following:

Your primary critical issue is that you need consistent cleaning and break room supplies at all of your locations. Our understanding of the reasons you are having this critical business issue is:

• Every location has their own ordering process• Challenging to maximize on volume discounts with multiple vendors

Capabilities you said you needed:• Consistent ordering process• Same supplies in every location

We discussed that if you had these capabilities, then you would be able to decrease your costs.

Our next stepsWe mutually agreed to move forward with the project. I have reserved one of our Cleaning and Break Room Supplies Specialist to come and visit you next week. I will brief him on your situation, so he is prepared to discuss our products in detail. I am confident you will like what you hear and introduce us to the rest of Alliance. I will call you on Monday to discuss this further.





We discussed the following:

Your primary critical issue is that you need consistent cleaning and break room supplies at all of your locations. Our understanding of the reasons you are having this critical business issue is:

• Every location has their own ordering process• Challenging to maximize on volume discounts with multiple vendors

Capabilities you said you needed:• Consistent ordering process• Same supplies in every location

We discussed that if you had these capabilities, then you would be able to decrease your costs.

Our next stepsWe mutually agreed to move forward with the project. I have reserved one of our Cleaning and Break Room Supplies Specialist to come and visit you next week. I will brief him on your situation, so he is prepared to discuss our products in detail. I am confident you will like what you hear and introduce us to the rest of Alliance. I will call you on Monday to discuss this further.





Evaluation Plan – “The Path to Win”

TYPICAL SALES CYCLE

CloseStart

Power Sponsor Contract & CloseSponsor Evaluation Plan

The majority of selling activity occurs during the execution of the Evaluation Plan



Evaluation Plan

Common Problems

The plan is not sent as a “Draft” plan

The draft Evaluation Plan:

Is sent to non-power people

Does not contain events to interview all key beneficiaries before resource commitment

Is not a joint plan requiring customer commitment of resources

Does not include events that promote the “three sales within a sale”

• Operational (line-of-business), transitional, financial

Does not specify key approval events such as legal / technical / administrative

Has the proposal being delivered too early in the sell cycle


Exercise: Review of the Evaluation Plan

Purpose: To review the attached Evaluation Plan and find the missing or misstated

components

Activities: As individuals:

Assume the following scenario:• You are the manager of a salesperson who is new to your organization

• This is the first chance the salesperson has had to meet with the Potential Power Sponsor

• The salesperson has been trained and is proud of the fact that he/she is following the company’s sales process. He/she wants you to put this opportunity into your sales forecast.

Review the Evaluation Plan and highlight the areas where you have concerns

Determine what questions you would ask the salesperson Be prepared to share your thoughts


Evaluation Plan: Attached to the Potential Power Sponsor Letter / e-mail

“What is Wrong with This Plan?”

EVALUATION PLAN

Event Responsible Week ofGo/No

Go

Interview with procurement and accounting OD/Alliance Feb 14

Summarize findings to top management team and agree to evaluation plan

OD/Alliance Feb 14


OD Feb 21

Discuss pricing OD/Alliance Feb 21

Gain approval of implementation plan Alliance Feb 28

Send agreements to legal OD Feb 28

Present proposal for approval OD March 7

Interview IT about back-end systems OD/Alliance March 14



Course Agenda

Discuss Key Management Roles and Activities that support the sales process













Pipeline Review Through Opportunity Analysis

What is the accurate status of the opportunity?

Inspect the Verifiable OutcomesInspect the Verifiable Outcomes

Re-Grade Opportunity As NeededRe-Grade Opportunity As Needed

1

What opportunity details reveal how well the sales process has

been executed?2


The Successful Sales Formula

Five Key Factors to Develop

Sale =

Pain X Power X Vision

X Value X Control


Focus Questions

Using the Successful Sales Formula

Pain:“What high priority pain has the prospective

buyer admitted to you?”

“What is it costing them today?”

Power:“Have you met with the person you believe is the Power Sponsor and why do you think he/she is

Power?”

“Can we gain access to and influence them?”

Vision:“What is the vision you created or reengineered with

Power?”

“How is it differentiated from competition?”

Value:“What is the quantifiable value of the solution?”

“Is that quantifiable value sufficient for them to act?”

Control:“What have you done to get a Evaluation Plan in place

or otherwise control the buying process?”

“Who is in control of the buying process?”


Key Cadence Event – Pipeline Review

APPROACH TOOLS

PPVVC Questions



Re-Grade Opportunity As NeededRe-Grade Opportunity As Needed

1

2

What opportunity details reveal how well the sales process has

been executed?

Opportunity Review Checklist


Course Agenda














Yield

Definition:

An estimate of the revenue value in the pipeline that is expected to be realized

Calculation:

Yield is calculated by multiplying the revenue associated with each milestone by the milestone yield percentage.

Potential revenue at completed step: Diagnose X 25% +

Potential revenue at completed step: Propose & Close

X 75% +

Potential revenue at completed step: Implement X 100% =

YIELD


Pipeline Analysis Worksheet

Annual View

A A Quota: BB Average sell cycle length:

C C Average opportunity size: DD Months left in the year:

E E Year-to-date attainment not reflected in the completed step “Fulfill”:

Step completed Revenue X Yield % = Yield

Diagnose X 25% =

Propose & Close X 75% =

Implement X 100% =

Pipeline revenue total: FF Pipeline yield total: =

GG Projected yield for the year (F / B) x (D):

HH Gap * (A – G – E): * Gaps are negative

II Additional “Diagnose” opportunities required to close the gap (H / C) x 25:


Exercise: Pipeline Volume Analysis

Purpose: To practice analyzing a pipeline and determining appropriate actions

Activities: As individuals use the Sample Pipeline Report and Pipeline Analysis Worksheet that follow and

analyze the business unit pipeline to answer the following questions: What is the yield? Is there a gap? If so, what is the size of the gap? Will the unit’s quota be made? What are the recommended actions if a gap exists?

Be prepared to share your observations

Notes: For this exercise, only analyze the “total yield” line

Additional information: The business unit’s quota is $5 Million The year-to-date (YTD) attainment is $500K The average deal size is $10,225 The average sale cycle length is 3 months The current date is 1 March


Pipeline Analysis Worksheet

Annual View

A A Quota: BB Average sell cycle length:

C C Average opportunity size: DD Months left in the year:

E E Year-to-date attainment not reflected in the completed step “Fulfill”:

Step completed Revenue X Yield % = Yield

Diagnose X 25% =

Propose & Close X 75% =

Implement X 100% =

Pipeline revenue total: FF Pipeline yield total: =

GG Projected yield for the year (F / B) x (D):

HH Gap * (A – G – E): * Gaps are negative

II Additional “Diagnose” opportunities required to close the gap (H / C) x 25:


Defining Key Sales Management Pipeline Habits

“5 Ways to Close Pipeline Gaps”

Increase your focus on latent opportunities

Find more opportunities during “planning” and

“prospecting”

Shorten your average sell cycle length

Increase the size of your current opportunities

Improve your win odds (Qualify or Disqualify)

1

2

3

4

5

ABOVE ABOVE THE THE

FUNNELFUNNEL

ININTHE THE

FUNNELFUNNEL


Group Discussion: “Filling the Gap” Best Practices

What are the best practices for filling a gap…

for individual sellers? For the sales team?

Field Marketing Execution

Corporate Marketing Execution

Account and

Territory Planning

ProspectingOthers?


Course Agenda














Opportunity Review Through Opportunity Coaching



Analyze Opportunity DetailsAnalyze Opportunity Details

1

2

3

How well has the selling process been executed up

to this point?

What coaching is required to advance the opportunity?


Opportunity Review Checklist

Check these items and outcomes below to verify status

Plan and Engage


Name and title of potential Sponsor Business development approach and job aids used Appointment or call logged in calendar

0% Opportunity Created In Sales Online

Diagnose


reengineer vision of Sponsor Negotiate access to power

Diagnose and document admitted pain and create or reengineer vision of Power Sponsor

Determine evaluation criteria and propose next steps Confirm dialogue and agree upon plan of next steps

Pain articulated by potential Sponsor Differentiated vision and value articulated by Sponsor Power Sponsor’s name and title Sponsor Letter/e-mail sent and content agreed upon

Pain articulated by potential Power Sponsor Differentiated vision and value articulated by Power Power Sponsor Letter/e-mail & draft Evaluation Plan sent Evaluation Plan modified or agreed upon

25% Gain agreement with Power Sponsor to next steps

Propose and Close

Execute Evaluation Plan steps Engage appropriate overlay Present solution Refine value proposition Agree upon transition plan Identify success criteria Create RFP to reflect Office Depot differentiators or

Respond to RFP or Bid Engage bid team Finalize T’s & C’s

First step accomplished (Go/No Go Step Letter)

Customer approval process understood? Customer key players identified and engaged (as

applicable)?

Transition issues identified and addressed?

Negotiating Worksheet and Get-Give List Who is negotiating? What is agreed upon?

75% Signed contract / Gain verbal agreement to buy

Implement


Implementation activities have been followed up

When? Who? Status?

100% First Orders Placed


Strength of Sale Check

Measuring Incremental Progress

Strong

Weak

ValueVisionPowerPain Control



Measurable Progress with “Pain”

PAIN SCALE

0 No identification of need or pain by customer

1 Salesperson assumes Sponsor’s needs

2 Sponsor admits needs

3 Sponsor admits reasons / symptoms for pain

4 Sponsor admits pain

5 Salesperson documents pain, Sponsor agrees

6 Salesperson assumes Power Sponsor’s needs

7 Power Sponsor admits needs

8 Power Sponsor admits reasons / symptoms for pain

9 Power Sponsor admits pain

10 Salesperson documents pain, Power Sponsor agrees



Measurable Progress with “Power”

POWER SCALE

0 Power Sponsor not identified

1 Decision process revealed by Sponsor

2 Potential Power Sponsor identified

3 Bargain for access to Power agreed upon with Sponsor

4 Access to Power Sponsor achieved

5 Buying and decision processes confirmed

6 Power Sponsor agreed to explore further

7 Power Sponsor agreed to Evaluation Plan

8 Power Sponsor agreed to proposal content

9 Power Sponsor provided verbal approval

10 Power Sponsor approved/provided contract signature



Measurable Progress with “Vision”

VISION SCALE

0 No vision or competitive vision established

1 Vision for Sponsor created in product terms

2 Vision for Sponsor created in situational terms

3 Differentiated vision created with Sponsor

4 Differentiated vision documented to Sponsor

5 Documented differentiated vision agreed by Sponsor

6 Vision for Power Sponsor created in product terms

7 Vision for Power Sponsor created in situational terms

8 Differentiated vision created with Power Sponsor

9 Differentiated vision documented to Power Sponsor

10 Documented differentiated vision agreed by Power



Measurable Progress with “Value”

VALUE SCALE

0 Customer wants to explore solution, value not identified

1 Salesperson identifies customer value proposition

2 Customer agrees to explore the value proposition

3 Value discovered associated with Pain

4 Value discovered associated with Vision

5 Customer confirms or modifies potential value

6 Additional beneficiaries included in value potential

7 Value analysis conducted – driven by salesperson

8 Value analysis conducted – driven by customer

9 Value analysis conducted – jointly driven

10 Value of solution meets decision criteria



Measurable Progress with “Control”

CONTROL SCALE

0 No follow-up documentation of client conversations

1 Lead Letter (email) sent

2 Lead Letter (email) agreed upon or modified

3 Sponsor Letter (email) sent

4 Sponsor Letter (email) agreed upon or modified

5 Salesperson gained agreement to pre-proposal review

6 Power Sponsor Letter (email) & Evaluation Plan sent

7 Letter and Evaluation Plan agreed upon or modified

8 First Go / No-Go Step completed

9 Pre-proposal review conducted

10 Evaluation Plan completed



“September 17th” Example

Customer Rocket Opportunity Data Base Date Updated 17 Sep

01

234

5678

910

Pain Power Vision Value Control

17-Sep



“October 1st” Example

Customer Rocket Opportunity Data Base Date Updated 1 Oct

01

234

5678

910

Pain Power Vision Value Control

1-Oct

17-Sep



Worksheet

PAIN SCALE

Customer:

__________

Opportunity:

__________

Date Updated:

__________









8 Power admits reasons / symptoms for pain


10 Salesperson documents pain, Power agrees

POWER SCALE




3 Bargain for access to Power agreed by Sponsor







10 Power approved/provided contract signature

VISION SCALE VALUE SCALE CONTROL SCALE

0 No vision or competitive vision established 0 Customer explores solution, value not identified 0 No follow-up documentation of client conversations

1 Vision for Sponsor created in product terms 1 Salesperson identifies customer value proposition 1 Lead Letter (email) sent

2 Vision for Sponsor created in situational terms 2 Customer agrees to explore the value proposition 2 Lead Letter (email) agreed upon or modified

3 Differentiated vision created with Sponsor 3 Value discovered associated with Pain 3 Sponsor Letter (email) sent

4 Differentiated vision documented to Sponsor 4 Value discovered associated with Vision 4 Sponsor Letter (email) agreed upon or modified

5 Documentation agreed to by Sponsor 5 Customer confirms or modifies potential value 5 Seller gained agreement to pre-proposal review

6 Vision for Power created in product terms 6 Additional beneficiaries included in value potential 6 Power Sponsor Letter (email) & Evaluation Plan sent

7 Vision for Power created in situational terms 7 Value analysis conducted – driven by salesperson 7 Letter and Evaluation Plan agreed upon or modified

8 Differentiated vision created with Power 8 Value analysis conducted – driven by customer 8 First Go / No-Go Step completed

9 Differentiated vision documented to Power 9 Value analysis conducted – jointly driven 9 Pre-proposal review conducted

10 Documentation agreed to by Power 10 Value of solution meets decision criteria 10 Evaluation Plan completed

Pain

10

00

00

0

ControlPower

ValueVision



Worksheet – “September 17th Example”

PAIN SCALE

Customer:

Rocket

Opportunity:

Database

Date Updated:

Sep 17_____












POWER SCALE






















9 Differentiated vision documented to Power 9 Value analysis conducted – jointly produced 9 Pre-proposal review conducted


Pain

10

00

00

0

ControlPower

ValueVision



Worksheet – “October 1st Example”

PAIN SCALE

Customer:

Rocket

Opportunity:

Database

Date Updated:

Oct 1_____

Sep 17_____












POWER SCALE






















9 Differentiated vision documented to Power 9 Value analysis conducted – jointly driven 9 Pre-proposal review conducted


Pain

10

00

00

0

ControlPower

ValueVision


Exercise: Strength of Sale

Purpose: To practice assessing the status of an opportunity using the Strength of Sale Check

Activities: Form into groups of two The following describes the situation:

One of your salespeople has been working on an opportunity for three months

You have this opportunity on your forecast to close this quarter, 60 days from now

Please read the information found on the next page “Opportunity Status”

Complete the Strength of Sale Check worksheet

Be prepared top debrief the results


Exercise: Strength of Sale

Opportunity Status

Pain:The power sponsor has openly shared a high priority critical business issue they need to address.

Power:

At the close of the meeting with the salesperson, the Power Sponsor seemed very eager and indicated a desire to further explore the potential solution.

Vision:

In an email to the Power Sponsor, the salesperson has documented the details of the potential solution. The email was careful to reconfirm the capabilities of the solution the Power Sponsor is looking to acquire including unique solution functionality and how it can help the Power Sponsor solve the admitted pain.

Value:

In a follow-up voicemail right after the meeting, the Power Sponsor said he/she was optimistic about the benefits that the capabilities being recommended might provide but realized they “had not discussed metrics enough”. The Power Sponsor suggested he/she would like to investigate what the seller thinks the potential value would be to his/her department.

Control:

The salesperson followed up the conversation with the Power Sponsor by recapping the dialogue including all key components in the Power Sponsor Letter (email). Attached to the email was a draft Evaluation Plan recommending mutual next steps. Follow up to discuss the draft plan has not yet occurred .



Worksheet

PAIN SCALE

Customer:

__________

Opportunity:

__________

Date Updated:

__________












POWER SCALE

















4 Differentiated vision documented to Sponsor 4 Value discovered associated with Vision 4 Sponsor Letter (email) agree upon or modified



7 Vision for Power created in situational terms 7 Value analysis conducted – driven by salesperson 7 Letter and Evaluation Plan agree upon or modified


9 Differentiated vision documented to Power 9 Value analysis conducted – jointly produced 9 Pre-proposal review conducted


Pain

10

00

00

0

ControlPower

ValueVision


Course Agenda














Management and Leadership

Philosophies of Coaching

Fundamental sales manager competency

Protects the investments made in training and personal development

Not intuitive - it is an acquired skill

Salespeople have competencies; managers must coach them to “stretch”

Building a top performing sales force requires continuous coaching

Most effective management skill with which to positively impact sales performance

Don’t Wait – Coach Now!Don’t Wait – Coach Now!



Coaching Principals

Before Coaching Sessions Schedule coaching reviews regularly, don’t leave coaching as an ad hoc activity Be aware, each individual reacts differently to coaching – apply the appropriate level Remember, it is easier if you prepare for coaching

During Coaching Sessions Make sure the environment is conducive to coaching Base coaching on facts, not opinions “Ask, don’t tell” - use self-discovery as a tool for learning Examine alternative resolutions Allow seller to take and retain ownership of action and results

Conclude Coaching Sessions Ensure reviews result in an appropriate action plan Keep in mind, managers must be willing to take an assignment as well

After Coaching Review Follow-up on a timely basis Consistently encourage the individual


Situational Coaching

ReviewReview

RehearseRehearse

ModelModel

Coaching ActionCoaching Action Coaching ExamplesCoaching Examples

“Recall that the 9-Block Model has three types of questions - open, control, and confirm… in three areas - reasons, impacts, capabilities - and uses a Pain Sheet as a prompter for the difficult (control) questions.

How would you use this in the next customer meeting”

“If it would make sense for me to go with you on the next call to help you create the buyer’s

vision, how would you use me.”

“Let’s role play the actual discussion with the prospect.

I’ll play the buyer and you play the seller using the 9-Block

Model and Pain Sheet for this situation.”


GRAF Coaching Model

REASONSREASONS

ACTIONACTION

Commit to a joint plan of ACTION to

address the GAP (What will be accomplished to remedy)

Understand / acknowledge the REASONS for

the GAP

FOLLOW-UPFOLLOW-UP

FOLLOW-UP to ensure that the ACTIONS were satisfactorily completed (Determine if the GAP has been addressed)

GAPGAP

Understand / acknowledge the GAP between what is wanted or expected and the reality of the situation (Admit the Pain)


GRAF Coaching Preparation: Notes / Worksheet

Salesperson Name:

Coaching Type: Opportunity Skill

Date of Coaching Event:

Opportunity Description:

GAPGAP REASONSREASONS

What is the GAP between performance expectations and actual results?

What are the REASONS for the GAP?

Expectations: Reasons:

Results observed: Who is involved:

Salesperson’s perspective: Salesperson’s perspective:

FOLLOW-UPFOLLOW-UP ACTIONACTION

What FOLLOW-UP will you and the salesperson agree to in order to close the GAP?

What ACTIONS does the salesperson agree and commit to do?

Specifics of follow-up actions (evidence of completion):

Options to close the gap:

Salesperson’s commitment:

Date for completion:

Time for follow-up: Help needed:


Exercise: Coaching Preparation and Application

Activities: Get into groups of two (Person A and Person B) Conduct the Coaching Preparation and Application exercise

Person A Person B

Coaching (Part 1)

Manager Seller

Coaching (Part 2)

Seller Manager


Course Agenda














Key Pipeline Metric

Speed

Are all opportunities moving through the

pipeline at a speed that will produce enough revenue in a timely

fashion?


Evaluation Plan – “The Path to Win”

TYPICAL SALES CYCLE

CloseStart

Power Sponsor Contract & CloseSponsor Evaluation Plan




Ideal Time in Step

Ideal Time in Step (approximate # of days)

StepStep3 month sell cycle

4 month sell cycle

6 month sell cycle

8 month sell cycle

9 month sell cycle

12 month sell cycle

Plan & Engage 9 15 15 15 15 15

0%

Diagnose 18 24 40 40 40 40

25%

Propose & Close

30 42 80 120 150 180

75%

Implement 33 39 45 65 65 125

100%

Note: When a salesperson spends “days in step” they are allotting those number of days toward executing the sales activities leading to the next milestone (denoted here by win odds)


Exercise: Identifying Stuck Opportunities

Purpose: To practice analyzing a pipeline milestone report to identify stalled

opportunities

Activities: Form into groups of two Review the pipeline milestone report (Pipeline Milestone Worksheet™) on the

page that follows Circle the opportunities that appear to be stalled Be prepared to debrief

Notes: The sample opportunities found on the Pipeline Milestone Worksheet are for

a salesperson with an average sell cycle length of 6 months The current date is 1 March


Pipeline Milestones Worksheet™ (Date: March 1st)


Stuck Opportunity Report

Why, When and How to Leverage This Report

Why This is Important?

To identify opportunities that require attention in order to move them ahead in the pipeline

When To Use?

Evaluate weekly

Communicate weekly

How to Use?

Identify large opportunities that are not moving as expected

Determine prevalent patterns – Where are opportunities getting stuck?

Assess prevalent patterns as possible skill or competency issues

Key Questions to Ask

Where are opportunities losing momentum or “getting stuck”?

Are appropriate customer communications (verifiable outcomes) occurring?

Is the customer urgency sufficient for action?

Are sellers managing (in control) of the process with an Evaluation Plan? (If not, why?)

Key Questions to Ask

Where are opportunities losing momentum or “getting stuck”?

Are appropriate customer communications (verifiable outcomes) occurring?

Is the customer urgency sufficient for action?

Are sellers managing (in control) of the process with an Evaluation Plan? (If not, why?)


Course Agenda














Skills in the Selling Process

Selling Skills

Key Evidence

Negotiating andClosing

Control

Need Development(Power Sponsor)

Need Development(Sponsor)

Prospecting Appointment

Sponsor Letter

Power Sponsor Letter &

Evaluation Plan

Evaluation Plan (Go/No Go Events)

Negotiating Worksheet

Plan & Engage

Diagnose

Propose & Close

Implement


Pipeline Milestones Worksheet™ (Date: March 1st)

OPPORTUNITIES

PIPELINE MILESTONES WORKSHEET™PIPELINE MILESTONES WORKSHEET™1 2 3

Johnson & Company

Cradel Industries

Health Source

Inc.A L A Latent or Active (L/A)

810 5 785 Potential sale amount ($K)

Plan & Engage

15 Jan 15 Dec 20 Dec Conduct planning activities (new or existing) 15 Jan 15 Dec 20 Dec Create interest 15 Jan 15 Dec 20 Dec Gain initial meeting

0% 0%

Diagnose

18 Jan 18 Dec 21 Jan Get pain admitted

18 Jan 18 Dec 21 Jan Diagnose admitted pain and create or reengineer vision of Sponsor

18 Jan 18 Dec 21 Jan Negotiate access to power 18 Jan 20 Dec 21 Jan Confirm dialogue and agree upon next steps

21 Jan 5 Jan 23 JanDiagnose admitted pain and create or reengineer vision of Power Sponsor

5 Jan 28 Jan Determine evaluation criteria and propose next steps8 Jan 28 Jan Confirm dialogue and agree upon plan of next steps

25% 25%

Propose & Close

10 Jan 28 Jan Execute Evaluation Plan steps12 Jan 28 Jan Engage appropriate overlay19 Jan 4 Feb Present solution26 Jan 11 Feb Refine value proposition16 Feb Agree upon transition plan

Identify success criteriaCreate RFP to reflect Office Depot differentiatorsEngage bid teamRespond to RFP or bid (if appropriate)Finalize T’s & C’s

75% 75%

Implement

Engage implementation managerExecute implementation planEngage IT Integration managerTest order placement and billing

100% 100% * Premature delivery of a proposal is not a sign of progress


Skill Coaching Guide: Prospecting

Potential Skill Issue: Prospecting

Verifiable Outcome Verifiable Outcome or Evidenceor Evidence Potential ReasonsPotential Reasons Potential Remedial ActivitiesPotential Remedial Activities NotesNotes

Business Development Strategy (plans)

Prospecting / Call logs

Business Development Activities, Letters & emails

Potential Sponsor Letters

Not enough “sacred” business development or prospecting time scheduled

Schedule blocks of time or

events for business development (i.e. protect their calendar)

Low quality of business development job aids and tools

Coach to develop improved business development job aids and tools (Look for appropriate value and pain messaging)

Inaccurate call lists (poorly targeted audience) Update and check lists

Poor execution

Conduct role plays and provide feedback

Concentrate on focused specific job titles with repetition

No follow-up to “leads” or interest shown by prospects

Review call logs, tickler (reminder) files and communications

Review dropped opportunities and develop a plan of follow-up activities for specific ones


Review “Stimulating Interest” module in Solution Selling for Sales Execution™


Opportunity Coaching or Skill Coaching?

Characteristics

Opportunity CoachingOpportunity Coaching Skill CoachingSkill Coaching

Problem identified in opportunity Problem is pervasive across multiple opportunities

Short-term, immediate actions Long-term sustained actions

Specific to opportunity General

Quick results Delayed Improvement

Goal: Opportunity Win Goal: Competency Improvement

Often done coupled with Opportunity Analysis Often done as a result of Pipeline

Analysis

Key Question:What is needed by this person at this time?


GRAF Coaching Model

REASONSREASONS

ACTIONACTION

Commit to a joint plan of ACTION to

address the GAP (What will be accomplished to remedy)

Understand / acknowledge the REASONS for

the GAP

FOLLOW-UPFOLLOW-UP

FOLLOW-UP to ensure that the ACTIONS were satisfactorily completed (Determine if the GAP has been addressed)

GAPGAP

Understand / acknowledge the GAP between what is wanted or expected and the reality of the situation (Admit the Pain)


Exercise: Identify and Coach Skill Issue

Purpose: To practice identifying a skill issues and applying coaching techniques

Activities: Form into groups of at least 4 Use one of the assigned cases which follow:

1. Review the Pipeline Milestone Worksheet™ and identify potential skill issues for the seller • Consider possible reasons for the skill issue • Record notes on the GRAF Worksheet (Gap and Reasons portions)

2. The team should dialogue and agree upon possible actions that might address the skill issue • Record notes on the GRAF Worksheet (Actions portion)

3. Discuss possible follow-up actions and dates

• Record notes on the GRAF Worksheet (Follow-up portion of the worksheet)

Group Role Play: Facilitator will play the seller. Each group will play the manager for each part of the case

Beginning with the first case, each group collectively progress through the G R A F Model.

After completing the first case, the next cases will be reviewed as needed.



Case A: “Jack”

Background: Jack is relatively new to your company (7 months), but not new to sales. He

prides himself at only talking to “decision-makers.” For each of his opportunities he feels he is connected to people who have assured him that this decision is “theirs-to-make”. They have implied that those above them in the company will “rubber stamp” their decision.

Status: Jack has worked hard to create five “good” opportunities. Progress

through the pipeline has been reasonable to date. He has Evaluation Plans for each opportunity. He has involved others in your company to provide proof and prepare bid

proposals for each opportunity. As a manager, you like Jack’s attitude and provide him plenty of freedom.

He says he likes that freedom. You haven’t personally been involved in any of these opportunities.


Case A: “Jack” - Pipeline Milestones Worksheet™ (1 May)



Salesperson Name:




















Case B: “Sally”

Background:

Sally has been with the company for four years and has been in sales for three of those years. She is an average performer in terms of quota attainment. She has commented several times that “Sales is ‘Luck’ – You have to have the right territory at the right time”. Over the past years you have coached Sally to increase her prospecting activities. She seems to have gotten the message and her pipeline is now the largest in your unit.

Status:

Sally’s pipeline was “thin” until she increased her prospecting activity and started working with Electronic Data Parts (EDP). She has uncovered a very large opportunity at EDP.

She knows that if she can close the EDP opportunity, she will go to the President’s Club for the first time. She calls it her “Big ticket to Maui”.

Sally is a hard worker. She is in the office early and leaves late. As her manager, you have been supportive and given her some “tips &

pointers”, along the way. You have accompanied Sally on several calls at EDP.


Case B: “Sally” - Pipeline Milestones Worksheet™ (1 May)



Salesperson Name:



















Course Agenda




Perform Opportunity Analysis and Pipeline Verification










The Challenge with Getting Started

Seller Manager

Executive

FocusedFocused Management Management andand Coaching Coaching

ProcessProcess

BANDWIDTHBANDWIDTH

SALES PROCESS

Leverage new information to: Identify opportunity and

skills problems Improve forecasting

Coach sellers Win key opportunities Implement effectively

Manage pipeline

Leverage new information to: Identify opportunity and

skills problems Improve forecasting

Coach sellers Win key opportunities Implement effectively

Manage pipeline



Adaptability to Coaching

Can

’t

Priority, Skills and Attitude

Wan

t to

do

it (

Ski

ll)

Just

do

it

Mig

ht

do

it (

Pri

ori

ty)

Wo

n’t

do

it

Can

’t

Support and Coach

Coach, Support

and LeadLead and

CoachCounsel

and Coach

(Att

itu

de)

CAN’T DO ITCAN DO IT


Interpret and use timely and accurate sales performance metrics

Focus on sales process and encourage Sales Online system usage

View coaching as a learning, motivation and performance improvement vehicle

Focus most of their coaching efforts upon middle performers

What Do World-Class Sales Managers Do?

(SPI, ESR Research, CSO Insights)


Getting Started – Managers: ExampleFirst 30 Days Second Month Third Month

1. Prepare for and schedule team / unit meeting to review Solution Selling Implementation .

2. Communicate expectations to unit members:• Use of “language” and selected “tools”• Proper grading and entry of opportunities into

management system (CRM)• Format and agenda for pipeline and

opportunity reviews3. Conduct pipeline reviews for each seller:

• Properly grade and update CRM for 2 key opportunities

• Coach next-steps for each4. Set targets for individual sellers:

• 50% of opportunities graded to standard and CRM updated

• Follow-up coaching within a week – next steps if required

5.Checkpoint progress of opportunity grading6.Confirm 50% grading complete7.Set goal for next 30 days for remaining

opportunities to be graded and reviewed8.Set goals and protect prospecting activities

1. Review all key opportunities ensure they are graded correctly and reflected in CRM

2. Conduct opportunity reviews if issues are suspected – Coach with GRAF

3. Conduct follow-up reviews as necessary4. Checkpoint and verify progress against

remaining 50% of opportunities5. Begin conducting pipeline reviews using SMC

approach and tools6. Conduct opportunity reviews using SMC

approach and tools7. Emphasize and continue to inspect key

verifiable outcomes (Sponsor Letter and Power Sponsor Letter/Evaluation Plan) for all strategic or key opportunities

8. Hold review / refresher sessions for suspected unit difficulties (skill view)

9. Empower each seller to complete a Pipeline Analysis Worksheet

10.Ensure all opportunities are graded properly11.Establish cadence cycle and agendas

1. Continue to perform opportunity and pipeline reviews using SMC approach and tools

2. Coach using GRAF as needed3. Begin using cadence cycle and agendas4. Continue empowerment of sellers to complete

Pipeline Analysis Worksheet and coach to fill Gaps

5. Identify and summarize competency improvement areas for each seller as necessary

6. Institute forecasting procedures based on a clean pipeline report

7. Use monthly summaries of cadence calls and pipeline reviews to communicate to next level management – report on exceptions

Ongoing

1. Use Solution Selling language / techniques when discussing opportunities, pipelines and coaching2. Monitor Solution Selling tool usages and encourage further use3. Emphasize importance of control letters and evaluation plans 4. Emphasize the skill and competence of Vision Creation and Reengineering using differentiators5. Provide follow-up education / reinforcement avenues for the unit (webinars, conference calls, etc.)

Key Focus Areas

Common Seller Competency Issues:

Specific Sellers & Objectives:

Your Competency Improvement Focus:


Exercise: Develop Your Personal Adoption Plan

Purpose: To identify specific activities which over the next 30, 60, and 90 days will support and accelerate

deployment and adoption of Solution Selling and the sales process

Activities: Consider the following:

What goals / objectives will you set for yourself and unit? How will your goals be communicated to the people in your unit? Imagine your unit in three months:

• How would you like to be conducting reviews? (Form, format and cadence)• How will you communicate upwards in the organization • How will you identify and remediate possible selling skills?• How will you identify and remediate shortfalls in attainment?

Think about the people in your unit / team:• What across-the-board issues do you deem prevalent? – How will you address them?• How will you use opportunity and pipeline reviews to attain your end goals?

How will progress to the end goals be measured? Also consider:

Challenges identified earlier Unique needs of individuals in the unit – how are they different? Getting started - Example

As individuals complete the Getting Started – Managers template on the following page

Be prepared to share your plan with the group

Notes: Upon return, share these action Items with your manager to ensure understanding and support of

your plans.


Getting Started – Managers: Example

First 30 Days Second Month Third Month

Ongoing

Key Focus Areas


Impact of Management Involvement

Phase I:“Easy”

Phase II:“Work”

Phase III:“Habit”

Time

Bu

sin

ess

Res

ult

s

Desired Results

Morale

Effort

“Organizational Support”

Shared information,Collaboration

“Organizational Support”

Shared information,Collaboration

“Manager support”Coaching, Mentoring, Skills Development

“Manager support”Coaching, Mentoring, Skills Development


Next Steps

Participate in the post workshop assessment:

You will receive an e-mail after the workshop with the link below

https://www.surveymonkey.com/s.aspx?sm=5pK661Ze3_2bhu9QaFwDQejg_3d_3d

Continue to use Solution Selling® and Sales Management & Coaching eLearning:

Take additional modules for areas that need improvement

Will be used for reinforcement


Effective Habits

Integration of Knowledge, Skills and Desire

“Creating a habit requires work in all three areas…

-----------------------------------------------

it is sometimes a painful process. It’s a change motivated by a higher purpose, by the willingness to subordinate what you think you want now for what you

want later.”

Source: Covey, Stephen R. The 7 Habits of Highly Effective PeopleNew York: Simon and Schuster, 1989. Used with permission.

SKILLS(How to)

DESIRE(Want to)

KNOWLEDGE(What to do, why to)

HABITS


APPENDIX


Skill Coaching Guide: Prospecting

Potential Skill Issue: Prospecting


Business Development Strategy (plans)

Prospecting / Call logs

Business Development Activities, Letters & emails

Lead Letters

Potential Sponsor Letters

Not enough “sacred” business development or prospecting time scheduled

Schedule blocks of time or

events for business development (i.e. protect their calendar)

Low quality of business development job aids and tools

Coach to develop improved business development job aids and tools (Look for appropriate value and pain messaging)

Inaccurate call lists (poorly targeted audience) Update and check lists

Poor execution


Concentrate on focused specific job titles with repetition


Review call logs, tickler (reminder) files and communications

Review dropped opportunities and develop a plan of follow-up activities for specific ones


Review “Stimulating Interest” module in Solution Selling for Sales Execution™


Skill Coaching Guide: Need Development with Sponsor

Potential Skill Issue: Need Development (Vision Processing) with Potential Sponsor


Pain Sheet®

Potential Sponsor Letter / email

Discussion focuses on products and services instead of creating a “vision of a solution” that addresses a business issue

Role play vision creation dialogue (Look for good control and “drill down” questions and well-written capability vision questions)

Low quality of need development job aids and tools

Coach to develop improved

Pain Sheets® Review Sponsor Letter for

qualification components

Poor execution Conduct role plays and

provide feedback Concentrate on focused job

titles for repetition

No follow-up after vision processing conversation

Ask key debriefing questions Set deadline for sending

Sponsor Letters / emails (ask to be copied or blind copied)

Reward well-written letters Restrict use of resources

Access to power not asked for and/or not documented Role play “bargain for access

to power” dialogue

General

Review “Vision Creation”, “Vision Reengineering” and “Buyer / Process Qualification” modules in Solution Selling for Sales Execution™


Skill Coaching Guide: Need Development with Power Sponsor

Potential Skill Issue: Need Development (Vision Processing) with Potential Power Sponsor


Pain Sheet®

Potential Power Sponsor Letter / email

Evaluation Plan

Discussion focuses on products and services instead of creating a “vision of a solution” that addresses a business issue

Role play vision creation dialogue (Look for good control and “drill down” questions and well-written capability vision questions)

Low quality of need development job aids and tools

Coach to develop improved Pain

Sheets® Review Power Sponsor Letter for

qualification components

Poor execution


Concentrate on focused job titles for repetition

Interview existing clients

No follow-up after vision processing conversation

Ask key debriefing questions Set deadline for sending Power

Sponsor Letters / emails (ask to be copied or blind copied)

Reward well-written letters

No Evaluation Plan or poorly written (i.e. “one-sided” Evaluation Plan”

Role play “qualify power and buying process” dialogue

Review sample plans Provide resources only for

opportunities where plans have been written

General Review “Buyer / Process

Qualification” modules in Solution Selling for Sales Execution™


Skill Coaching Guide: Process Control

Potential Skill Issue: Process Control


Evaluation Plan

Go / No Go Step Completion Letters

No Evaluation Plan

Role play “qualify power and buying process” dialogue

Provide sample Evaluation Plans Provide resources only for

opportunities where plans have been written

Evaluation Plans are not maintained and updated during execution (i.e. lose momentum and focus)

Review use of Go/No Go Step Completion Letters / emails

Incomplete Evaluation Plan or poorly written (i.e. “one-sided” Evaluation Plan)

Review Evaluation Plans for critical elements (operational, transition and financial proof)

Examine timing and sequence of events within the plan

Check balance of mutual activities between seller and buyer

Evaluation criteria is negotiated with someone other than Power Sponsor

Develop a “refocus” plan that minimizes commitments / resources devoted and attempts to get the Power Sponsor involved in the evaluation process

General

Review “Buyer / Process Qualification” and “Elements of and Evaluation Plan” modules in Solution Selling for Sales Execution™


Skill Coaching Guide: Negotiating and Closing

Potential Skill Issue: Negotiating and Closing


Evaluation Plan with progress documented

Go / No Go Step Completion Letters

Value Analysis

Negotiating Worksheet

Get-Give List

Not all of the events within the Evaluation Plan are complete (i.e. the opportunity may not be closeable)

Review all events within the Evaluation Plan for completeness

Review Go / No Go Step Completion Letters to ensure progress was agreed upon

Poor planning and execution of earlier process steps hindering later process steps

Review value cycle or value analysis for compelling reason to take action

Review Negotiating Worksheet to review “stands” developed

Review Get / Give list Discuss timing of the intended

close Role play negotiation scenario Have manager negotiate the close

Using discounts as a lead-in to negotiation (too early)

Review need to maintain margins on opportunity

Review value analysis indicating a reasonable return (i.e. no need to discount)

Include “reach final agreement” as event in the Evaluation Plan

General Review “Elements of and

Evaluation Plan” and “Reach Final Agreement” modules in Solution Selling for Sales Execution™

© solution selling, inc. 2009 office depot 2 day workshop for sales managers

Documents

trademark of solution

selling activities

solution prospecting

professional selling

executivelevel selling

sales managers

sales management

professional sales coaching