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10/24/2016
1
Leverage Your Sales Team’s Frustrations to Release Powerful Improvement
November 2016
Michael J Webb
Your Business is an Engine of Wealth
Voice of the Customer
Voice of Employees
Voice of Owners
Its Time to Break Through the Barriers!
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Deming’s Cycle Applied to the Whole Company
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Design
Product and
Production
Processes
Produce
Product
Learn
From Field
Experience
Distribute/Sell
Product
Inspect/
Package
Product
Plan
Do
Act
Study
His Method Included the Sales Process
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Design
Product and
Production
Processes
Produce
Product
Learn
From Field
Experience
Distribute/Sell
Product
Inspect/
Package
Product
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Yet, There is a Disconnect in Many Companies
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Design
Product and
Production
Processes
Produce
Product
Learn
From Field
Experience
Distribute/Sell
Product
Inspect/
Package
Product
Many Sales Organizations are Struggling
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Longer selling cycles
Unpredictable returns
Unreliable forecast
VOC that is not used
Declining productivity
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Companies Who Study Sales Agree
42% of sales reps missed quota in 2013
40% average turnover in sales teams
62% of CSOs expected trouble making target
revenues in 2014
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The State of Sales and Marketing Today
6/25/2016 Copyright © 2016 SPC, Inc. All Rights Reserved. 8
Odds of making sales forecast: 45.9%
Odds of pass bet at craps: 49.3%
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The Balance of Power Has Shifted
6/25/2016 Copyright © 2016 SPC, Inc. All Rights Reserved. 9
1955 2016
• Availability
• Quality
• Information
• Sophistication
• Competition
Product
Time
Sup
ply
Shortage of Product
Shortage of Customers
Assumption: That’s Just the Way It Is
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What Causes These Poor Results? 10/24/2016 2016 © Copyright Sales Performance Consultants, Inc. 11
Mark Twain
“It ain't what you don't know that gets you into trouble. It's what you know for sure that just ain't so.”
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Classic Sales Management Mistake #1 Situation:
Poor sales results caused company to seek a new VP of Sales. The new VP discovers salespeople are making less than two sales calls per day.
Belief:
More call activity = more sales Action:
VP instituted call activity monitoring and insisted on higher call volume.
Result:
Sales activity did, in fact, increase, to almost 4 sales calls per day.
Sales results did not increase at all. Page 25
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Classic Sales Management Mistake #2 Situation:
Company had purchased a sales process from a major sales training company. The sequence and questions were configured in their CRM. They knew there was a huge market.
Belief:
More leads = more sales Action:
President of the company doubled down on Internet Pay-Per-Click Ads.
Result:
Lead volume increased 223%
Sales results did not increase at all.
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The Fixes Fail in the Usual Ways
Training Behavior returns to
status quo
CRM Most reps fail to use;
Channel refuses to use
Territory
Realignment
Productivity does not
improve
Sales Contest/
Promotion
Robs business from
the future
Lead Gen
Campaign
Sales do not increase,
may decrease
Temporary
gains not
sustained!
6/25/2016 Copyright © 2016 SPC, Inc All Rights Reserved. 15
Process Practitioners Make Similar Mistakes
5S
Lean
SIPOC
Value Stream Map
Defect Reduction
DMAIC
Poka Yoke
Single Piece Flow
6 Sigma
Control Charts
Big “Y” and Little “xs”
Standard Work
Black Belts
A3
Baldridge Award
PDCA / PDSA
“We have met the enemy, and he is us” 10/24/2016 2016 © Copyright Sales Performance Consultants, Inc. 16
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These Frustrations Are Normal in Sales:
No Data Locating Causes of Problems 10/24/2016 2016 © Copyright Sales Performance Consultants, Inc. 17
Your Sales Environment is Perfectly Designed
To Produce the Kind of Salespeople You Have 10/24/2016 2016 © Copyright Sales Performance Consultants, Inc. 18
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What Happens if Nothing Changes?
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Applying Lean Upstream – in Sales
• Not all companies can be low cost producer
• How can we become the high-value producer?
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Lean Applies the Scientific Method
Louis Pasteur
Father of Microbiology 10/24/2016 2016 © Copyright Sales Performance Consultants, Inc. 121
The Scientific Method
Observation
Hypothesis
Prediction
Experimentation
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• Pasteurization
• Vaccinations
• Fermentation
Produced
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Applying the Scientific Method to Business
Systems Thinking
Method for Learning
Understand Variation
Respect for People
Deming’s Theory of Profound
Knowledge
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Understand Variation
Getting in Contact with
Reality
Systems Thinking
Method for Learning
Understand Variation
Respect for People
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Lack of Understanding Variation
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Operational Definition
•An exact description of what words refer to in reality;
• The procedure used to derive a measurement.
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Categories of Deal Quality
Traditional Qualification Criteria
B Budget
A Authority
N Need
T Timeframe
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Sales Qualification Criteria
Profile: Are they a fit
for us?
Knowledge: Are we a fit for them?
Relationship: Is our history
good?
Is there an opportunity?
Can we win?
Account Characteristics Deal Characteristics
Traditional Qualification
B Budget
A Authority
N Need
T Timeframe
Observable Quality Characteristics
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Example OpDef of Qualification Criteria
What are the drivers of the project? 1. Don't know 2. Bottom-up initiative – source of pain is
low level in the organization 3. Driven by external requirements (e.g.
regulatory or customers) without obvious senior management support
4. Top-down initiative: senior manager is pushing for a solution
5. In addition to one of the above, they’ve been considering it for a while, and momentum is finally building.
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Variation must be understood
conceptually before it can be
understood statistically.
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Frustration: Accurate Forecasts Are Impossible
Possible Qualification Scores
140 130 120 110 100 90 80 70 60 50 40 30
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60
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80
90
100 %
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Reality: 90%+ Forecast Accuracy
Possible Qualification Scores
140 130 120 110 100 90 80 70 60 50 40 30
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20
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60
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90
100
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inn
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Tipping point
This data reveals powerful signals
• Some criteria have more affect
• Alignment of account strategies
• When to prioritize vs walk away
• ROI on “soft” improvements (training, coaching, lead quality, etc.)
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Systems Thinking
Identifying Cause and
Effect
Systems Thinking
Method for Learning
Understand Variation
Respect for People
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What Value Does Sales and Marketing Create?
VP of Finance of Fortune 500 Corporation: “I expect all our Sales VPs to start providing SOME kind of measurement of their activities and processes. It is the only way to start getting sales costs under control. I would suggest you start with the cost of producing proposals.”
Savvy VP of Sales: “Is the cost of sales proposals REALLY what you want to optimize?
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The Ultimate Goal of a Business
VALUE to Customers
VALUE to Employees
VALUE to Owners
Its Time to Break Through the Barriers!
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An Improved Definition of Value
“Value is that which one acts to gain and/or keep.”
Ayn Rand, Novelist and Philosopher
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Align Your Business to Your Customer’s
Optimize Production
Secure Machine
Decide to Buy
Assess Feasibility
Discover Internal
Possibilities & Capabilities
Detect Market Needs and Changes
Customer’s Journey
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Systems Thinking Aligns Work Productively
Optimize Production
Secure Machine
Decide to Buy
Assess Feasibility
Discover Internal
Possibilities & Capabilities
Detect Market Needs and Changes
Customer’s Journey
Warranty, Service,
& Support
Machine Installation and Training
Post Sale Follow Up
Prepare & Conduct
Buy Off
Receive & Process Order
Finalize & Provide
Documents
Negotiate Final
Terms
Provide Supporting
Data
Assess and Revise Quote
Determine Specific
Requirements
Develop Formal Quote
Discover Wants
Determine Feasibility
for Company
Research Business Needs
Support Their Needs
Provide Budgetary
Alternatives
Share Company Capabilities
Gain Company Commitment To the Deal
Ship & Invoice
Follow Up
Seller’s Daily Work
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Systems Thinking Helps Locate Problems
Optimize Production
Secure Machine
Decide to Buy
Assess Feasibility
Discover Internal
Possibilities & Capabilities
Detect Market Needs and Changes
Customer’s Journey
Warranty, Service,
& Support
Machine Installation and Training
Post Sale Follow Up
Prepare & Conduct
Buy Off
Receive & Process Order
Finalize & Provide
Documents
Negotiate Final
Terms
Provide Supporting
Data
Assess and Revise Quote
Determine Specific
Requirements
Discover Wants
Determine Feasibility
for Company
Research Business Needs
Support Their Needs
Provide Budgetary
Alternatives
Share Company Capabilities
Gain Company Commitment To the Deal
Ship & Invoice
Follow Up
Seller’s Daily Work
Develop Formal Quote
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Method for Learning
Explicitly Think and
Behave Like Scientists
Systems Thinking
Method for Learning
Understand Variation
Respect for People
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What it is Like to Work in Most Companies
Managing a company by means of the monthly report is like trying to drive a car by watching the yellow line in the rear view mirror.
Myron Tribus, former director of the Center for
Advanced Engineering Study at MIT, and also former Senior V.P. Of Research &
Engineering for Xerox Corp.
Adapted from “Understanding Variation” by Don Wheeler, SPC Press, Inc.
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People Can Work Incredibly Hard
Plan Agree on the process
Act Adapt based
on the learning
Do
Learn from the execution/context
Study
Implement with excellence
And Yet, Nothing Improves
“Your system is perfectly designed to give you the results you're getting.”
W. Edwards Deming
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Assumptions About Organizational Performance
•Performance is the sum of the parts
• Improvement means getting people to work harder, or smarter
• Improvement can happen without an explicit method for doing so
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Systems Are More Than the Sum of the Parts
“Ninety-five per cent of changes made by management today make no improvement.”
W. Edwards Deming, “The New Economics”
[In organizations] “…most troubles and most possibilities for improvement add up to proportions something like this:
• “94% belong to the system (the responsibility of management)
• “6% are attributable to special causes”
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The Missing Link: The Scientific Method
Observation
Hypothesis
Prediction
Experimentation
Plan Agree on the process
Act Adapt based
on the learning
Do
Learn from the execution/context
Study
Implement with excellence
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Mindfulness: Manage How We Think
Observation
Hypothesis
Prediction
Experimentation
Plan Agree on the process
Act Adapt based
on the learning
Do
Learn from the execution/context
Study
Implement with excellence
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Learning and Improvement is Iterative
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Adapted from “The Improvement Guide – A Practical Approach to Enhancing Organizational Performance” Second Edition (Jossey Bass, 2009) pg 82
Real world: Observations, carry out a test, look for anomalies
Prediction (an hypothesis, conjecture, model, or theory)
Plan
Do Check
Act/Adjust
Do
Act/Adjust
Check
Plan
Leadership Issues: • Common, systemic • High-Impact, • Actionable
P A
D S
P A
D S
P A
D S
P A
D S
Line Manager: • Local Issues
Marketer Seller Servicer
Individuals • Skills, knowledge
Method for Learning is Scalable
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Respect for People
Enable People To
Achieve What They Want
Systems Thinking
Method for Learning
Understand Variation
Respect for People
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Dr. Shigeo Shingo
“We have to grasp not only the know-how but also 'Know Why', if we want to master the Toyota Production System.”
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What Are Your Sales Department’s Concerns?
• Why do we have to change?
• Why should we do this all alone?
• Why should we do this in addition to other work?
• What if sales problems are not caused by us?
• Why is this important to the organization?
• What are objective measures of performance?
• What could the future be like with this approach?
Do Your Salespeople Know the Possibilities? 10/24/2016 2016 © Copyright Sales Performance Consultants, Inc. 52
Business: The Massive Engine of Wealth
Voice of the Customer
Voice of Employees
Voice of Owners
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Wealth is Accumulated Value
Relationships
Accomplishment
Self-Esteem
Education
Recognition
Health
Security
People
Ideas
Purpose
Legacy
Knowledge
Respect
Experience
And yes of course, Money
Adapted from a presentation by Kim Sawyer, www.thewealthsource.com
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What is the Source of Wealth?
Your ability to create wealth doesn’t come from the outside.
It comes from how you are built on the inside.
Adapted from a presentation by Kim Sawyer, www.thewealthsource.com
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Changed Assumptions Enable Changed Thinking
Your role:
• Are you a boss? Or are you a coach?
Your attitude:
• Along for the ride? Or are you an investor?
Approach to problems:
• Avoid them, hide? Or treasure them, learn?
Relationship to authority:
• Unquestioning Or honesty, catchball?
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Tap Into Natural Instincts
Most want things to be better, simpler, easier, faster. They want to remove barriers and frustrations.
To tap into that,
• Always be interested in what they think
• Always ask them why
• Challenge them to define their terms more clearly
• Encourage them to find a way to do better
• Make sure they show you what they learn
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A World of Success Awaits
www.salesprocessexcellence.com
Get $10 off Use Coupon
Code:
“Lean Frontiers”
Good through Nov 30, 2016
10/24/2016 2016 © Copyright Sales Performance Consultants, Inc. 58
Other Resources
www.salesperformance.com Free Introductory Videos • The Definitive B2B Guide to Predictable, Profitable,
Sustainable Revenue Growth Articles • How to Avoid the Four Most Common Mistakes of Sales
Process Mapping • How Do You Map a Sales Process? • Diagnose what is going right and wrong with your sales
organization Start a more productive dialog in your business: • World Class Sales Process Self-Assessment
10/24/2016 2016 © Copyright Sales Performance Consultants, Inc. 59
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