buddy r. · pdf fileproducts first principles. 11-9 ... • defining and sharing your...

Creating Sales Excellence

Buddy R. Kluin

YCreate Connect ContinueY

Create Connect Continue

11-9-2004

2

© b.kluin 2004 all rights reserved YCreate Connect Continue

Objectives

• Discuss first principles underlying a sales organisation• Discuss key issues for the sales organisation• Review solution options in three domains

– Process (re)design – Capability management– Mobile technology

• Learn from each other!

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Agenda

• Introduction and objectives• First principles of sales• Key issues facing the sales organisation• Solution options

– Process (re)design– Capability management– Mobile technology

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Before you can start thinking about sales, you need to choose your business model

you can’t do it all, do what you’re good at

First principles

Source: Treacy & Wiersema, Discipline of market leaders

“best product”Product Leadership

Operational Excellence“best total cost”

Customer Intimacy“best total solution”

product differentiation customer responsiveness

operational competence

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Understand your business model

you can’t do it all, do what you’re good at

First principles


“best product”Product Leadership

Operational Excellence“best total cost”

Customer Intimacy“best total solution”

product differentiation customer responsiveness

operational competence

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Culture• Client and field driven• Variation: “Have it your

way” mind set


way” mind set

Information Technology• Customer databases linking internal

and external information• Knowledge bases built around expertise



Organization• Entrepreneurial client

teams• High skills in the field



Management systems• Revenue and share of wallet

driven• Rewards based in part on client

feedback• Lifetime value of client analysis




Core Processes• Client acquisition &

development• Solution development• Flexible and responsive

work process

Core Processes• Client acquisition &

development• Solution development• Flexible and responsive

work process

Understanding the business model and set up your operating model

First principles

“best total costs”

“best product” “best total solution”


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CreatingCost-of-Sales

leadership

Creatingmeasurable

Business Value

The business model will determine your salesoperating model, choose your sales channels

First principles

Commodity product or service

Complex product or service

Value Based/Consultativeselling

Transactional selling

Make yourchoice

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$1000

$600$500

$50$20

$150$120

Field sales force

Value added partners

Volume distributors

Telesales Lo / Direct Mail

Telesales Hi

Internet Lo

Internet Hi

Your choice of sales channel(s) must be in line withyour sales operating model

Value-basedTransactional

First principles

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New productEarly adaptorsHigh priceHigh marginLow volume

Fast followersGood priceGood marginGood volume

Mass customizationNormal priceNormal marginHigh volume

ROI

Commodity productLow priceLow margin

Product life cycle

Keep in mind the Product Life Cycle of all yourproducts

First principles

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The sales channel mix will also vary across the sales cycle

Sales cycle

over $25,000

under $25,000

Direct Sales ChannelS1000

Business Partners

$500 - 600

Tele Channel$150

Direct mail$50

Internet$ 20-120

Channel

Sales taskLead

generation Qualifying Bid &Proposal

Negotiation,sales closure Fulfillment Customer care

& Support

First principles

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The sales conundrum: it’s neither well-managed nor very productive

Key issues

The systems:- Aren’t accessible in real-time- Provide lag instead of lead information- Are focussed on command and control type

reporting, not on business process performance- Don’t contain the truly vital information that the

sales force needs- Are inflexible, costly, and underperforming

The sales manager:- Doesn’t know where his people are,

what they are doing there, or howthey’re performing

- Doesn’t master the first principles of sales

- Can’t access information when and where he needs it

- Can’t effectively and efficiently train, coach and develop his team

The sales rep:- Spends too much time waiting and shuffling

paperwork- Doesn’t master the sales process- Can’t access information when and where he

needs it- Doesn’t understand his playing field- Is not regularly trained, coached and

developed

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A ‘Day-In-Life-Of’ analysis for the sales force highlights the detailed “islands of pain”

Face-to-facedetails

Sales Rep

10%

29%

25%20%

16%

Waiting

Admin and meetings

Traveling

Planning

Key issues

3% 3%

5%

6% 30%

21%16%

16%

Coaching/mentoring

AdminMeetings/conferences

Travel

Hiring

Analysis

Performancemanagement

Account management

Sales Management

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FulfillmentFulfillment88AgreementAgreement //

ContractContract77

ProposalProposal

66

Setting Setting upupfinalfinal--solutionsolution

55

OpportunityOpportunityassessmentassessment

33

AccountAccountplanningplanning

22

RelationshipRelationshipbuilding &building &QualifyingQualifying 44

MarketMarketplanningplanning

11

The core process for both value-added and transactional sales consists of 7 elements

Solutions - process

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There are 8 good reasons for wanting to have such a sales management process in place

• Pro-active approach, generating opportunities• Overcomes the sales penchant for only looking at existing

accounts• Early Go / No-go decision-making• Early clarification of work to be done to win• Early participation of fulfillment organization• Early visibility of required capabilities and resources• Quick client buy-in, early lock-out of competition• Better forecasting and better risk management

Solutions - process

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Teamwork and proper communication are the key enablers for the sales management process • Defining and sharing your vision, mission and sales strategy• Working across disciplines and functions

– Cooperation sales, marketing and fulfillment• Results driven as well as activity driven• Commitment (be as good as your word)• Sales meetings become workshops instead of talkathons• Working based upon RACI:

– Who is Responsible– Who is Accountable– Who do I have to Consult (up front)– Who do I have to Inform (afterwards)

Solutions - process

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The opportunity assessment is the crucial step in the process, especially for value-added sales

Transforming suspect into candidate prospect with high probability of winning

• For value-added sales:– Getting to know the entire buying team, and talking to them– Insight in the issues the client wants to solve, is ready to spend

money on and where you make the difference– Gives an early exit point to focus scarce resources

• For transactional sales:– Decision trees to proceed or stop spending time and resources– Data capture mechanism to refine the process


ContractContract77AgreementAgreement //

ContractContract77

ProposalProposal

66ProposalProposal

66

SettingSetting upupfinalfinal--solutionsolution

55


55


33OpportunityOpportunityassessmentassessment

33


22AccountAccountplanningplanning

22

Relationship Relationship building &building &QualifyingQualifying 44



11

Solutions - process

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You also need to know the required capabilities foryour sales staff ...

6

5

4

3

2

1

Understands underlying issues

Acts 4-12 months ahead

Calculates the impact of one’s actions or words

Takes action for Customers

Sets and works to meet challenging

goals

Acts over a year ahead

Uses indirect influence

Addresses Underlying Customer Needs

Makes Cost-Benefit analyses

Understands meanings


Takes multiple actions to persuade

Takes Personal Responsibility

Improves Performance

Uses complex influence strategies

Uses a Long term perspective

Takes Calculated Entrepreneurial Risks

Understands both emotion and contentIs decisive in a crisisTakes a singles

action to persuadeMaintains clear communication

Creates ownMeasures ofExcellence

Understands either emotion or content

Addresses current opportunities or

problems

States intention but takes no specific

actionFollows up

Wants to do jobwell

Interpersonal understandingInitiativeImpact &

Influence

Customer Service

Orientation

Achievement Orientation

Source: Hay Group

Solutions - capabilities

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... and apply them as shown in this example for Transactional Short Sales Cycle

6

5

4

3

2

1



Calculates the impact of one’s actions or words

Takes action for Customers

Sets and works to meet challenging

goals




Makes Cost-Benefit analyses





Improves Performance



Takes Calculated Entrepreneurial Risks

Understands both emotion and contentIs decisive in a crisisTakes a singles

action to persuadeMaintains clear communication

Creates ownMeasures ofExcellence

Understands either emotion or content


problems


actionFollows up

Wants to do jobwell

Interpersonal understandingInitiativeImpact &

Influence

Customer Service

Orientation


Source: Hay Group


= Critical for this role= Very important for this role

19



Customer Service

OrientationImpact & Influence Initiative Interpersonal

understanding

1 Wants to do jobwell Follows up


action


problemsUnderstands either emotion or content

2Creates ownMeasures ofExcellence

Maintains clear communication

Takes a singles action to persuade Is decisive in a crisis Understands both

emotion and content

3 Improves Performance





4Sets and works to meet challenging

goalsTakes action for

CustomersCalculates the impact of one’s actions or words



5 Makes Cost-Benefit analyses




6 Takes Calculated Entrepreneurial Risks



= Critical for this role

= Very Important for this role

... and apply them as shown in this example for Consultative Long Sales Cycle


Source: Hay Group

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The technology to enable the Real-Time Enterprise is (rapidly becoming) available ...

• Infrastructure– Internet, telephone, mobile

phone, GSM, GPRS, WiFi, Hotspots

– Laptop, PDA, tabletPC, smartphone

– USB or sync cable, infrared, bluetooth

• Software– Many single point solutions: mobile office, FSA and SFA

• Architecture– EAI, middleware solutions/application mobility framework to connect or

integrate front-end systems and back-end applications such as sales order processing

Solutions - technology

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Choose a scalable technology solution

HR

Finance

CRM

SCMInternetFire

wall

MiddlewareSolution

WLAN

Bluetooth

GPRS, 3G


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... thus extending the boundaries of an enterprise beyond the desktop


Forrester (May 2002)

“57% of the total workforce isexpected to be mobile withintwo years”

Forrester (May 2002)

“57% of the total workforce isexpected to be mobile withintwo years”

Meta Group (2002)

“By 2003 more mobile devices than PC will be in use. 5-15% of employees will work using a notebook and 40% of them will also be working with an additional device such as PDA. 75% of employees will be traveling 25% of their time”

Meta Group (2002)

“By 2003 more mobile devices than PC will be in use. 5-15% of employees will work using a notebook and 40% of them will also be working with an additional device such as PDA. 75% of employees will be traveling 25% of their time”

IDC (2002)

“By 2003 half of all the connections to the internet will be from mobile devices. By 2005 around 60% of all e-commerce transactions will be driven from mobile devices”

IDC (2002)

“By 2003 half of all the connections to the internet will be from mobile devices. By 2005 around 60% of all e-commerce transactions will be driven from mobile devices”

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The Real-Time Enterprise will bring a step-change productivity improvement

• Leaving the office no longer means leaving access to key company information behind as well

• Tomorrow’s market success is the provision and availability of information of all kinds at any place and at any time

• Processes can be designed to be considerably more efficient and employees can do the work in less time

• Digital information will be raw, real, and accessible rather than politically correct and restricted


The sales force will be one of the first groups to feel the impact of the Real-Time Enterprise.The sales force will be one of the first groups to feel the impact of the Real-Time Enterprise.

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Customer Service


understanding



action






emotion and content





















Customer Service


understanding



action






emotion and content




















over $25,000

under $25,000

Direct Sales ChannelS1000

Business Partners

$500 - 600

Tele Channel$150

Direct mail$50

Internet$ 20-120

Channel

Sales taskLead

generation Qualifying Bid &Proposal

Negotiation,sales closure Fulfillment Customer care

& Support


ContractContract77AgreementAgreement //

ContractContract77

ProposalProposal

66ProposalProposal

66


55


55


33OpportunityOpportunityassessmentassessment

33


22AccountAccountplanningplanning

22




11

The vision: the right operating model, the right process, the right skills, and everything in real time

A future perfect

HR

Finance

CRM

SCMInternet

Firewall

Middlewaresolution

WLAN

Bluetooth

GPRS, 3G

HR

Finance

CRM

SCMInternet

Firewall

Middlewaresolution

WLAN

Bluetooth

GPRS, 3G

HR

Finance

CRM

SCMInternet

Firewall

Middlewaresolution

WLAN

Bluetooth

GPRS, 3G

Culture• Client and field driven• Variation: “Have it yourway” mind set


way” mind set



Information Technology• Customer databases linking internaland external information

• Knowledge bases built around expertise











Core Processes• Client acquisition &development

• Solution development• Flexible and responsivework process

Core Processes• Client acquisition &development

• Solution development• Flexible and responsivework process





Creating Sales Excellence

For questions or further details contact

Buddy R. Kluin

Atalanta 140NL-3892 EJ ZeewoldeThe Netherlands

Phone +31 653 309 963Website www.buddykluin.nlE-mail [email protected]

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