Master's certificate in sales management day 2 (march 2016)

1-degree INC
1-degree INCHelping leaders to reimagine and reinvent work
Master’s Program
in Sales
Management
TURNING CORPORATE STRATEGY INTO
SALES STRATEGY AND IMPLEMENTING IT!
Agenda
Yesterday – Strategy!
 Context
 Learn a framework for leading strategy and differentiation
discussions
 How a strong Purpose can inspire action and differentiation
 The role that Sales Leaders have in building healthy workplace
cultures
 How to set up the strategic planning cycle for more successful sales
outcomes
The 5 Worst Errors of Sales Strategy!
1. Why we shouldn’t treat all customers the same
2. Why we need to adjust the sales people and management
processes when the sales cycle gets longer
3. Why a good sales forecast review is a strategic investment
4. How sales incentives and compensation are not everything
5. Why managing leading indicators is more strategic
Integrated
Strategy
Purpose
Culture
Leadership
Performance
Systems
Execution
The 5 Worst Errors of Sales Strategy
1. We treat all customers the same
 We don’t build value propositions specific to customer segments
2. When the business changes we use the same sales people and
management processes
 We don’t recognize their inherent ability to manage complexity and line that up with the
complexity of the sales cycle
3. We work IN the business not ON the business
 We don’t coach and mentor enough every day because we are lost in the weeds
4. We believe that compensation and incentives are 90% of high
performance
 We don’t focus enough on the growth needs of people
5. We don’t spend enough time managing leading indicators of success
 We get enamoured with looking in the rear-view mirror
Error #1:
We treat all customers the same
Customer segmentation
Segmentation specific value propositions
The Marketplace
Are all Customers the Same? Is your Market Diverse?
1. Understand
Customer
Needs
2. Group
Customers
3. What are the
Most Attractive
Groups?
4. Develop
Value
Propositions
for Target
Groups
5. Develop Go
To Market
Strategies
Segmentation Principles
Businesses
Need to be
Profitable
Different
customers
have
different
value drivers
Who do
you
choose to
serve?
What are you looking for?
How have you grouped your customers today?
How do you know that what they are asking for is a “market”?
◦ What is an attractive group?
Geography
Demographics (age, gender, etc)
Buying Patterns
Size of Customer
Value of Customer
Industry
Benefits
Customer Needs
Interests
Values
Attitudes
Behaviour
Segmentation Matrix – Example
Premium Performance Value
Professional
Hobbyist
Casual User
MarketSegments
Customer Segments
Price: Features: Services: Options
Segmentation Matrix (Example)
Premium Performance Value
Professional • Willing to pay top
dollar for top quality
and features
• Risk averse
• May consider price
premium if features
are relevant
• Is price conscious but
will not accept low
quality
• Accepts fewer features
Hobbyist • Willing to pay top
dollar
• Willing to pay more if
there is a reason
• Wants competitive
pricing
Casual User • Will pay for the cool
factor
• Product quality and
reliability are drivers
• Price is a big factor in
what to buy
MarketSegments
Customer Segments
Group Work - Segmentation
Groups of 4
Pick one of your companies
Build a simple (3x3) segmentation matrix
30 minutes
The beginning of segment specific
Value Propositions
(Example)
Premium Performance Value
Professional • Top of the line Pro
Full Frame SLR
Cameras with top
of the line lenses
• Service Plan
• Not top of the line
but next level down
• Product One
generation old
• Refurbished lenses?
• Service: pay as you go
Hobbyist • Top of the line
Compact System w/
interchangeable
lenses
• Instructional classes
• Top of the line with
one good general
purpose lens
• The best combination
of features and a great
price – a bundle
Casual User • Compact Pocket
Camera with all the
Bells and Whistles
(Wifi)
• Good Product – good
warranty – good price
• Basic Camera for
occasional use
MarketSegments
Customer Segments
Where can you win? Where do you have advantages over the
competition?
Workshop
Same Groups:
Identify elements of the value proposition for two segments
◦ How are they different?
15 minutes
The Marketplace
Are all Customers the Same? Is your Market Diverse?
Segment Specific Value Props
Which slice of the market
do you wish to serve?
Exercise
Same Groups as before and Same Company
Pick two of the segments of your matrix
 Create value proposition statements for each of those two
Review Strategy Canvas if it helps
Identify one area where you could create Value by altering the 4
factors
30 minutes
Value Propositions
At our company we value/believe ______________________________
This means we ______________________________
We seek to help Customers who ______________________________
Unlike our Competitors we ______________________________
Answering these questions:
Why should someone purchase your offering?
Why should someone purchase your offering instead of your competitors?
What is most worthwhile for someone to keep in mind about your offering?
Value Propositions
At 1-degree we believe that enlightened workplaces have the greatest
potential to shift global consciousness.
This means we only work with CEO’s who want to make culture a source
of differentiation and a platform for employee growth.
We seek to help mid-size organizations who need to borrow our help in
making this transformation.
Unlike others in this field we co-create the programs needed – we build
on those elements of Strategy, Culture, Purpose and Leadership that
already exist rather than force a complete system reset.
Error #1:
We treat all customers the same
Customer segmentation
Segmentation specific value propositions
Error #2:
When the Sales Cycle gets longer
we don’t adjust the sales people
The internet is making basic facts/information
available
Customers are smarter – competition is increasing
Higher margins are in task-sourcing or risk-sharing
The Sales Cycle is getting longer and more complicated
Not all reps can naturally manage more complex
sales cycles!
Levels of Complexity & Work Ability
A body of knowledge known as Requisite Theory or Stratified Systems
Theory
Researched and introduced by Dr. Elliott Jaques in the 1950’s
Implemented in Fortune 500 companies
A Whole System of beliefs that demonstrates a natural hierarchy that
functions optimally given the natural levels of human capability
Requisite for Sales
Work
Level
Problem Solving
Approach
Sales
Method
Contribution Time
Frame
V Concepts A or B or C Concept
ual
Presents new business model > 5 Years
IV A > B > C vs E > D > F
^
Yes/And
Trade-
offs
Positions two possible solutions to
address client issue(s) and can help
with impact tradeoffs
2-5 years
III A then B then C Follows
one or
more
threads
Articulates a narrative on how a
solution impacts client’s business
1-2 yrs
II A and B and C Look for
Patterns
Bird Dog – Provided an example
they find a pattern and bring in an
expert if needed
3-12 mos.
I A or B or C Feature-
Benefit
Highly transactional – ‘dial for
dollars’
< 3 months
Example:
Rep Capability - Distribution
Level of Work Rep Performance Rep Level of Capability
Level V
Level IV High
Manager
Rep 6
Level III
High
High
Rep 4
Rep 5
Level II
Not Making It
Not Making It
Rep 2
Rep 3
Level I Not Making It Rep 1
Sales Cycle Complexity
Tech example
Example
Do you want fries
with that?
Buys in volume
And
Wants consistent
budget costs
And
Wants to be legal
Recomend: SW
Licensing
Have a customer
rip and replace
their storage
system
Implications:
Cost/ impact on
other systems /
manageability
The implications
of moving a
datacentre to the
cloud balanced
against the
implications of
control and
security
Sales Cycle
Length
1 day - 3 months 3 months - 1 Yr 1-2 Years 2-5 Years
Sales Cycle Complexity
Measured in Length
Ideal State
Work Aligned with Ability
Level V
Level IV Rep 6
Level III Rep 4, 5
Level II Rep 2, 3
Level I Rep 1
Complexity 1 day - 3 months 3 months - 1
Year
1-2 Years 2-5 Years
Rep
Capability
Sales Cycle Complexity
Measured in Length
Overwhelmed or Reliance on Manager
Boring – limit exposure
Ideal Focus
Manage the balance
Manager Required
One Level up is required from Rep Capability so that the
manager add value, context
Level IV Seems to be Required for the range of sales cycles – if
every manager manages the complete range
What did we learn?
Do you have different products or offerings that have different
complexity?
Error #2:
When the Sales Cycle gets longer
we don’t adjust the sales people
The internet is making basic facts/information
available
Customers are smarter – competition is increasing
Higher margins are in task-sourcing or risk-sharing
The Sales Cycle is getting longer and more complicated
Not all reps can naturally manage more complex
sales cycles!
Error #3:
We work IN the business not ON
the business
Busy-ness rules – we mistake busy for effective
Rhythm of review – what is your practice?
Forecasting is strategy being executed
Sales
Management
FORECAST REVIEWS – MONTHLY EXECUTION OF
STRATEGY
Forecast Reviews
1. If the planning process made sense than a commitment to the Goal
is mutual
2. The Territory Plan or Account Plan makes the Objectives for the year
very clear
3. The Forecast review is as much about the actions and steps as it is
about the $ Forecast. If the rep is not taking the steps can you
reasonably expect the results to follow?
◦ Sales Management is about keeping reps on track with the right activities
or adjusting based on new information
◦ Every Sales Call therefore has an objective relative to the monthly
forecast discussion and the annual Sales Plan
October Forecast
Customer Opportunity Probability 30 Days 60 Days 90 Days
ABC Co. HR Project 30% $12,000 $19,500 -
Jones Bros. Dist. Refresh 90% - - $100,000
B-Town Inc. Brampton
Expansion
50% $ 9,000 - -
GrowTown International
Services
70% - $19,000 -
Tower Vendor of Record 75% - - $15,000
Run Rate $11,000 $11,000 $11,000
Forecast $32,000 $49,500 $126,000
Probability is mapped to Sales Stage that is relevant to your company
November Forecast
Customer Opportunity Probability 30 Days 60 Days 90 Days
ABC Co. HR Project 40% $12,000 $19,500 -
Jones Bros. Dist. Refresh 90% - - $100,000
GrowTown Vendor of Record 75% - $10,000 $10,000
Google Creative Building 20% $55,000 - -
City of Dallas Property Project 90% $17,000 - -
Run Rate $11,000 $11,000 $11,000
Forecast $95,000 $40,500 $121,000
CompareOctoberNovember
November Action Log
Action Who Owner/Help By When Purpose
Meet ABC Co. Project Lead Me – take
SME
Nov 10 Figure out why
this project is
stuck
Send Invites All
Customers
Me Nov 3 New Product
Launch
Post thought
leadership Buyer’s
Guide - LinkedIn
Me Nov 7 Support
Awareness
December Forecast
Starts with Review of November
Customer Opportunity Probability 30 Days 60 Days 90 Days
ABC Co. HR Project 40% $12,000 $19,500 -
Jones Bros. Dist. Refresh 90% - - $100,000
GrowTown Vendor of Record 75% - $10,000 $10,000
Google Creative Building 20% $55,000 - -
City of Dallas Property Project 90% $17,000 - -
Run Rate $11,000 $11,000 $11,000
Forecast $95,000 $40,500 $121,000
November
Sales Management
See your job as:
“Getting People Done Through Work”
Not
“Getting Work Done Through People”
Error #3:
We work IN the business not ON
the business
Busy-ness rules – we mistake busy for effective
Rhythm of review – what is your practice?
Forecasting is strategy being executed
Error #4:
We believe that compensation and incentives
are how we motivate performance
What Are Our Basic Needs and
Growth Needs
EvolutionofPersonalConsciousness
Satisfying your physiological needs for security;
staying alive and keeping your body healthy.
Satisfying your emotional need for belonging,
protection and connection.
Satisfying your emotional need to be recognized for
your skills, talents or qualities.
Satisfying your need for autonomy, freedom,
independence and adventure.
Satisfying your need for authenticity and finding
meaning and purpose in your life.
Satisfying your need to actualize your purpose by
influencing or impacting the world around you.
Satisfying your need to leave a legacy—to have
led a life of significance that will be remembered.
Growth
Needs
Basic
Needs
At any given moment in time, our values are a reflection of our unmet basic needs, and the
growth needs associated with the stage of psychological development we have reached.
What a Sales Rep Sounds Like:
EvolutionofPersonalConsciousness
Survival: I need to close this deal because I have
bills to pay or I am afraid of losing my job.
Relationship: My customer will buy from me
because of the strong relationship we have.
Self-Esteem: I want to be recognized as one of the
top performers in our company!
Transformation: I constantly stretch myself and
bring new ideas to my clients.
Cohesion: I want to understand my customers real
drivers and then match my solution up with that.
Make a Difference: I collaborate with my clients so
that my solutions make a significant impact.
Service: I don’t sell anything. I help my customers
to build their business by serving with all we have.
Growth
Needs
Basic
Needs
At any given moment in time, our values are a reflection of our unmet basic needs, and the
growth needs associated with the stage of psychological development we have reached.
What do Incentives drive?:
Survival: I need to close this deal because I have
bills to pay or I am afraid of losing my job.
Relationship: My customer will buy from me
because of the strong relationship we have.
Self-Esteem: I want to be recognized as one of the
top performers in our company!
Transformation: I constantly stretch myself and
bring new ideas to my clients.
Cohesion: I want to understand my customers real
drivers and then match my solution up with that.
Make a Difference: I collaborate with my clients so
that my solutions make a significant impact.
Service: I don’t sell anything. I help my customers
to build their business by serving with all we have.
Growth
Needs
Basic
Needs
How do we line up Incentives and Compensation plans so that they support strategy?
What mix of base to incentive makes sense?
Drives:
Drives:
Drives:
Drives:
Drives:
Drives:
Drives:
Error #4:
We believe that compensation and incentives
are 90% of high performance
Error #5:
We don’t manage leading indicators
We LOVE facts
We don’t like approximations
Leading Indicators
Lagging Indicators
Examples of Lagging Indicators
% of plan
Customer Satisfaction
On-time Delivery
Market Share
Win-Loss Ratios
Customer Retention
Customer Profitability
What do these
things have in
common?
Leading Indicators
Examples of Leading Indicators
Number of Sales People Trained/Certified
Number of prospects identified
Number of customer appointments each month
Number of Demonstrations completed
Number of prospects touched in Seminars
Size of the Sales Pipeline
Sales Cycle
Does The
Rep know
how to sell
the
product?
Do we have
any
identified
suspects?
Have we
had
technical
people on
site?
Have we
done a
proof of
concept?
Have we
presented
an ROI
Analysis?
How about you?
“ When we get technical people onsite we win”
“ When we do a demo we win”
“ When we present ROI cases we win”
Group Work
Break into groups of four
Share your leading indicators
Discuss how you could measure at least one new leading indicator
effectively (Make sure it is Strategically Aligned!!)
20 minutes
Error #5:
We don’t manage leading indicators
We LOVE facts
We don’t like approximations
Glancing Back
Yesterday – Strategy!
 Context
 Corporate Strategy Fundamentals – it is all about Differentiation
 How a strong Purpose inspires action and Differentiation
 The role that workplace Culture plays in Differentiation
 Aligning (Corporate, Marketing, Sales Management) Strategy
with Sales
Today – Sales Strategy & Execution!
 The 5 Worst Errors of Sales Strategy
1. Why we shouldn’t treat all customers the same
2. Why we need to adjust the sales people and management
processes when the sales cycle gets longer
3. Why a good sales forecast review is a strategic investment
4. How sales incentives and compensation are not everything
5. Why managing leading indicators is more strategic
Contact
Nick Foster
Cell: 416-275-0776
Email:
nick@culturexbrand.com
© 2 0 1 3 B Y N I C K F O S T E R O N B E H A L F O F S C H U L I C H E X E C U T I V E E D U C A T I O N C E N T R E
( S E E C ) . A L L R I G H T S R E S E R V E D . N O P A R T O F T H I S P U B L I C A T I O N M A Y B E
R E P R O D U C E D , S T O R E D I N A R E T R I E V A L S Y S T E M , O R T R A N S M I T T E D I N A N Y F O R M O R
B Y A N Y M E A N S , E L E C T R O N I C , M E C H A N I C A L , R E C O R D I N G , P H O T O C O P Y I N G O R
O T H E R W I S E , W I T H O U T W R I T T E N P E R M I S S I O N O F T H E C O P Y R I G H T H O L D E R .
1 de 55

Más contenido relacionado

La actualidad más candente

Sales managementSales management
Sales managementgyaanmasti
6.7K vistas23 diapositivas
Build Sales PerformanceBuild Sales Performance
Build Sales PerformanceFrancois Delvaux
915 vistas3 diapositivas
Sales Transformation 2015Sales Transformation 2015
Sales Transformation 2015christyaron
884 vistas9 diapositivas

La actualidad más candente(20)

Characteristics of great sales managementCharacteristics of great sales management
Characteristics of great sales management
SalesTechnik, LLC6.9K vistas
5 Biggest Challenges In Sales Training5 Biggest Challenges In Sales Training
5 Biggest Challenges In Sales Training
Brian Lambert5.7K vistas
Sales managementSales management
Sales management
gyaanmasti6.7K vistas
Build Sales PerformanceBuild Sales Performance
Build Sales Performance
Francois Delvaux915 vistas
Sales Transformation 2015Sales Transformation 2015
Sales Transformation 2015
christyaron884 vistas
Key Account ManagementKey Account Management
Key Account Management
guest177ff1999.1K vistas
A new sales approach - Creating Clients ValueA new sales approach - Creating Clients Value
A new sales approach - Creating Clients Value
Vassilis Engonopoulos1.8K vistas
Sales management course Sales management course
Sales management course
Hazem El-Mahdi844 vistas
Sales management & personal sellingSales management & personal selling
Sales management & personal selling
Mathew Lawrence24.7K vistas
Entrepreneurial SellingEntrepreneurial Selling
Entrepreneurial Selling
Antwerp Management School3K vistas
Sales strategySales strategy
Sales strategy
Atmadeep Das29K vistas
New Age Strategic SellingNew Age Strategic Selling
New Age Strategic Selling
Dr Wilfred Monteiro703 vistas
Sales StrategySales Strategy
Sales Strategy
Sheshagiri Hegde16.5K vistas
Entrepreneurial MarketingEntrepreneurial Marketing
Entrepreneurial Marketing
guest435ee6614.8K vistas
Introduction to sales managementIntroduction to sales management
Introduction to sales management
Gautam Anand63.2K vistas
Personal Selling and Sales ManagementPersonal Selling and Sales Management
Personal Selling and Sales Management
Tirthankar Sutradhar1.5K vistas

Destacado(18)

Being a ManagerBeing a Manager
Being a Manager
Eric Tachibana2.3K vistas
Effective Sales Strategies Capabilities Presentation 3 09Effective Sales Strategies Capabilities Presentation 3 09
Effective Sales Strategies Capabilities Presentation 3 09
effectivesalesstrategies1.2K vistas
Giving clients what they want Giving clients what they want
Giving clients what they want
Intuit Inc.986 vistas
Sales Management Strategy Q4 2016 - Q1 2017Sales Management Strategy Q4 2016 - Q1 2017
Sales Management Strategy Q4 2016 - Q1 2017
Julio Sanz Velasco390 vistas
Choosing The Right Sales StrategyChoosing The Right Sales Strategy
Choosing The Right Sales Strategy
Stephen Davis27K vistas
Territory Planning - The Sales Journey.comTerritory Planning - The Sales Journey.com
Territory Planning - The Sales Journey.com
thesalesjourney36.3K vistas
Account Strategy TemplateAccount Strategy Template
Account Strategy Template
Jim Keenan42.6K vistas
Anti Money Laundering - CDD & KYCAnti Money Laundering - CDD & KYC
Anti Money Laundering - CDD & KYC
Besart Qerimi44.7K vistas
Key Account ManagementKey Account Management
Key Account Management
Shahzad Khan44.1K vistas
Anti money launderingAnti money laundering
Anti money laundering
Uttma Shukla91.2K vistas
Designing Teams for Emerging ChallengesDesigning Teams for Emerging Challenges
Designing Teams for Emerging Challenges
Aaron Irizarry1.1M vistas
Visual Design with DataVisual Design with Data
Visual Design with Data
Seth Familian2.9M vistas

Similar a Master's certificate in sales management day 2 (march 2016)(20)

Converting ideas into businessesConverting ideas into businesses
Converting ideas into businesses
Prajakt Raut31K vistas
War between Sales & MarketingWar between Sales & Marketing
War between Sales & Marketing
Rajesh Srivastava8.8K vistas
Strengthen your value propositionStrengthen your value proposition
Strengthen your value proposition
Emma Hibbert377 vistas
Implementing a Segmentation StrategyImplementing a Segmentation Strategy
Implementing a Segmentation Strategy
Susan Abbott22K vistas
Saleslevers overview July 2020Saleslevers overview July 2020
Saleslevers overview July 2020
richardhigham78 vistas
StrategyStrategy
Strategy
Citehrjayaraman.K Chennai45 vistas
Customer journey mapping seminarCustomer journey mapping seminar
Customer journey mapping seminar
MacInnis Marketing6.9K vistas
DEFINING YOUR COMPETITIVE STRATEGYDEFINING YOUR COMPETITIVE STRATEGY
DEFINING YOUR COMPETITIVE STRATEGY
Trevis Baker326 vistas

Master's certificate in sales management day 2 (march 2016)

  • 1. Master’s Program in Sales Management TURNING CORPORATE STRATEGY INTO SALES STRATEGY AND IMPLEMENTING IT!
  • 2. Agenda Yesterday – Strategy!  Context  Learn a framework for leading strategy and differentiation discussions  How a strong Purpose can inspire action and differentiation  The role that Sales Leaders have in building healthy workplace cultures  How to set up the strategic planning cycle for more successful sales outcomes The 5 Worst Errors of Sales Strategy! 1. Why we shouldn’t treat all customers the same 2. Why we need to adjust the sales people and management processes when the sales cycle gets longer 3. Why a good sales forecast review is a strategic investment 4. How sales incentives and compensation are not everything 5. Why managing leading indicators is more strategic Integrated Strategy Purpose Culture Leadership Performance Systems Execution
  • 3. The 5 Worst Errors of Sales Strategy 1. We treat all customers the same  We don’t build value propositions specific to customer segments 2. When the business changes we use the same sales people and management processes  We don’t recognize their inherent ability to manage complexity and line that up with the complexity of the sales cycle 3. We work IN the business not ON the business  We don’t coach and mentor enough every day because we are lost in the weeds 4. We believe that compensation and incentives are 90% of high performance  We don’t focus enough on the growth needs of people 5. We don’t spend enough time managing leading indicators of success  We get enamoured with looking in the rear-view mirror
  • 4. Error #1: We treat all customers the same Customer segmentation Segmentation specific value propositions
  • 5. The Marketplace Are all Customers the Same? Is your Market Diverse?
  • 6. 1. Understand Customer Needs 2. Group Customers 3. What are the Most Attractive Groups? 4. Develop Value Propositions for Target Groups 5. Develop Go To Market Strategies Segmentation Principles Businesses Need to be Profitable Different customers have different value drivers Who do you choose to serve?
  • 7. What are you looking for? How have you grouped your customers today? How do you know that what they are asking for is a “market”? ◦ What is an attractive group? Geography Demographics (age, gender, etc) Buying Patterns Size of Customer Value of Customer Industry Benefits Customer Needs Interests Values Attitudes Behaviour
  • 8. Segmentation Matrix – Example Premium Performance Value Professional Hobbyist Casual User MarketSegments Customer Segments Price: Features: Services: Options
  • 9. Segmentation Matrix (Example) Premium Performance Value Professional • Willing to pay top dollar for top quality and features • Risk averse • May consider price premium if features are relevant • Is price conscious but will not accept low quality • Accepts fewer features Hobbyist • Willing to pay top dollar • Willing to pay more if there is a reason • Wants competitive pricing Casual User • Will pay for the cool factor • Product quality and reliability are drivers • Price is a big factor in what to buy MarketSegments Customer Segments
  • 10. Group Work - Segmentation Groups of 4 Pick one of your companies Build a simple (3x3) segmentation matrix 30 minutes
  • 11. The beginning of segment specific Value Propositions (Example) Premium Performance Value Professional • Top of the line Pro Full Frame SLR Cameras with top of the line lenses • Service Plan • Not top of the line but next level down • Product One generation old • Refurbished lenses? • Service: pay as you go Hobbyist • Top of the line Compact System w/ interchangeable lenses • Instructional classes • Top of the line with one good general purpose lens • The best combination of features and a great price – a bundle Casual User • Compact Pocket Camera with all the Bells and Whistles (Wifi) • Good Product – good warranty – good price • Basic Camera for occasional use MarketSegments Customer Segments Where can you win? Where do you have advantages over the competition?
  • 12. Workshop Same Groups: Identify elements of the value proposition for two segments ◦ How are they different? 15 minutes
  • 13. The Marketplace Are all Customers the Same? Is your Market Diverse?
  • 14. Segment Specific Value Props Which slice of the market do you wish to serve?
  • 15. Exercise Same Groups as before and Same Company Pick two of the segments of your matrix  Create value proposition statements for each of those two Review Strategy Canvas if it helps Identify one area where you could create Value by altering the 4 factors 30 minutes
  • 16. Value Propositions At our company we value/believe ______________________________ This means we ______________________________ We seek to help Customers who ______________________________ Unlike our Competitors we ______________________________ Answering these questions: Why should someone purchase your offering? Why should someone purchase your offering instead of your competitors? What is most worthwhile for someone to keep in mind about your offering?
  • 17. Value Propositions At 1-degree we believe that enlightened workplaces have the greatest potential to shift global consciousness. This means we only work with CEO’s who want to make culture a source of differentiation and a platform for employee growth. We seek to help mid-size organizations who need to borrow our help in making this transformation. Unlike others in this field we co-create the programs needed – we build on those elements of Strategy, Culture, Purpose and Leadership that already exist rather than force a complete system reset.
  • 18. Error #1: We treat all customers the same Customer segmentation Segmentation specific value propositions
  • 19. Error #2: When the Sales Cycle gets longer we don’t adjust the sales people The internet is making basic facts/information available Customers are smarter – competition is increasing Higher margins are in task-sourcing or risk-sharing The Sales Cycle is getting longer and more complicated Not all reps can naturally manage more complex sales cycles!
  • 20. Levels of Complexity & Work Ability A body of knowledge known as Requisite Theory or Stratified Systems Theory Researched and introduced by Dr. Elliott Jaques in the 1950’s Implemented in Fortune 500 companies A Whole System of beliefs that demonstrates a natural hierarchy that functions optimally given the natural levels of human capability
  • 21. Requisite for Sales Work Level Problem Solving Approach Sales Method Contribution Time Frame V Concepts A or B or C Concept ual Presents new business model > 5 Years IV A > B > C vs E > D > F ^ Yes/And Trade- offs Positions two possible solutions to address client issue(s) and can help with impact tradeoffs 2-5 years III A then B then C Follows one or more threads Articulates a narrative on how a solution impacts client’s business 1-2 yrs II A and B and C Look for Patterns Bird Dog – Provided an example they find a pattern and bring in an expert if needed 3-12 mos. I A or B or C Feature- Benefit Highly transactional – ‘dial for dollars’ < 3 months
  • 22. Example: Rep Capability - Distribution Level of Work Rep Performance Rep Level of Capability Level V Level IV High Manager Rep 6 Level III High High Rep 4 Rep 5 Level II Not Making It Not Making It Rep 2 Rep 3 Level I Not Making It Rep 1
  • 23. Sales Cycle Complexity Tech example Example Do you want fries with that? Buys in volume And Wants consistent budget costs And Wants to be legal Recomend: SW Licensing Have a customer rip and replace their storage system Implications: Cost/ impact on other systems / manageability The implications of moving a datacentre to the cloud balanced against the implications of control and security Sales Cycle Length 1 day - 3 months 3 months - 1 Yr 1-2 Years 2-5 Years Sales Cycle Complexity Measured in Length
  • 24. Ideal State Work Aligned with Ability Level V Level IV Rep 6 Level III Rep 4, 5 Level II Rep 2, 3 Level I Rep 1 Complexity 1 day - 3 months 3 months - 1 Year 1-2 Years 2-5 Years Rep Capability Sales Cycle Complexity Measured in Length Overwhelmed or Reliance on Manager Boring – limit exposure Ideal Focus Manage the balance
  • 25. Manager Required One Level up is required from Rep Capability so that the manager add value, context Level IV Seems to be Required for the range of sales cycles – if every manager manages the complete range
  • 26. What did we learn? Do you have different products or offerings that have different complexity?
  • 27. Error #2: When the Sales Cycle gets longer we don’t adjust the sales people The internet is making basic facts/information available Customers are smarter – competition is increasing Higher margins are in task-sourcing or risk-sharing The Sales Cycle is getting longer and more complicated Not all reps can naturally manage more complex sales cycles!
  • 28. Error #3: We work IN the business not ON the business Busy-ness rules – we mistake busy for effective Rhythm of review – what is your practice? Forecasting is strategy being executed
  • 29. Sales Management FORECAST REVIEWS – MONTHLY EXECUTION OF STRATEGY
  • 30. Forecast Reviews 1. If the planning process made sense than a commitment to the Goal is mutual 2. The Territory Plan or Account Plan makes the Objectives for the year very clear 3. The Forecast review is as much about the actions and steps as it is about the $ Forecast. If the rep is not taking the steps can you reasonably expect the results to follow? ◦ Sales Management is about keeping reps on track with the right activities or adjusting based on new information ◦ Every Sales Call therefore has an objective relative to the monthly forecast discussion and the annual Sales Plan
  • 31. October Forecast Customer Opportunity Probability 30 Days 60 Days 90 Days ABC Co. HR Project 30% $12,000 $19,500 - Jones Bros. Dist. Refresh 90% - - $100,000 B-Town Inc. Brampton Expansion 50% $ 9,000 - - GrowTown International Services 70% - $19,000 - Tower Vendor of Record 75% - - $15,000 Run Rate $11,000 $11,000 $11,000 Forecast $32,000 $49,500 $126,000 Probability is mapped to Sales Stage that is relevant to your company
  • 32. November Forecast Customer Opportunity Probability 30 Days 60 Days 90 Days ABC Co. HR Project 40% $12,000 $19,500 - Jones Bros. Dist. Refresh 90% - - $100,000 GrowTown Vendor of Record 75% - $10,000 $10,000 Google Creative Building 20% $55,000 - - City of Dallas Property Project 90% $17,000 - - Run Rate $11,000 $11,000 $11,000 Forecast $95,000 $40,500 $121,000
  • 34. November Action Log Action Who Owner/Help By When Purpose Meet ABC Co. Project Lead Me – take SME Nov 10 Figure out why this project is stuck Send Invites All Customers Me Nov 3 New Product Launch Post thought leadership Buyer’s Guide - LinkedIn Me Nov 7 Support Awareness
  • 35. December Forecast Starts with Review of November Customer Opportunity Probability 30 Days 60 Days 90 Days ABC Co. HR Project 40% $12,000 $19,500 - Jones Bros. Dist. Refresh 90% - - $100,000 GrowTown Vendor of Record 75% - $10,000 $10,000 Google Creative Building 20% $55,000 - - City of Dallas Property Project 90% $17,000 - - Run Rate $11,000 $11,000 $11,000 Forecast $95,000 $40,500 $121,000 November
  • 36. Sales Management See your job as: “Getting People Done Through Work” Not “Getting Work Done Through People”
  • 37. Error #3: We work IN the business not ON the business Busy-ness rules – we mistake busy for effective Rhythm of review – what is your practice? Forecasting is strategy being executed
  • 38. Error #4: We believe that compensation and incentives are how we motivate performance
  • 39. What Are Our Basic Needs and Growth Needs EvolutionofPersonalConsciousness Satisfying your physiological needs for security; staying alive and keeping your body healthy. Satisfying your emotional need for belonging, protection and connection. Satisfying your emotional need to be recognized for your skills, talents or qualities. Satisfying your need for autonomy, freedom, independence and adventure. Satisfying your need for authenticity and finding meaning and purpose in your life. Satisfying your need to actualize your purpose by influencing or impacting the world around you. Satisfying your need to leave a legacy—to have led a life of significance that will be remembered. Growth Needs Basic Needs At any given moment in time, our values are a reflection of our unmet basic needs, and the growth needs associated with the stage of psychological development we have reached.
  • 40. What a Sales Rep Sounds Like: EvolutionofPersonalConsciousness Survival: I need to close this deal because I have bills to pay or I am afraid of losing my job. Relationship: My customer will buy from me because of the strong relationship we have. Self-Esteem: I want to be recognized as one of the top performers in our company! Transformation: I constantly stretch myself and bring new ideas to my clients. Cohesion: I want to understand my customers real drivers and then match my solution up with that. Make a Difference: I collaborate with my clients so that my solutions make a significant impact. Service: I don’t sell anything. I help my customers to build their business by serving with all we have. Growth Needs Basic Needs At any given moment in time, our values are a reflection of our unmet basic needs, and the growth needs associated with the stage of psychological development we have reached.
  • 41. What do Incentives drive?: Survival: I need to close this deal because I have bills to pay or I am afraid of losing my job. Relationship: My customer will buy from me because of the strong relationship we have. Self-Esteem: I want to be recognized as one of the top performers in our company! Transformation: I constantly stretch myself and bring new ideas to my clients. Cohesion: I want to understand my customers real drivers and then match my solution up with that. Make a Difference: I collaborate with my clients so that my solutions make a significant impact. Service: I don’t sell anything. I help my customers to build their business by serving with all we have. Growth Needs Basic Needs How do we line up Incentives and Compensation plans so that they support strategy? What mix of base to incentive makes sense? Drives: Drives: Drives: Drives: Drives: Drives: Drives:
  • 42. Error #4: We believe that compensation and incentives are 90% of high performance
  • 43. Error #5: We don’t manage leading indicators We LOVE facts We don’t like approximations
  • 46. Examples of Lagging Indicators % of plan Customer Satisfaction On-time Delivery Market Share Win-Loss Ratios Customer Retention Customer Profitability What do these things have in common?
  • 48. Examples of Leading Indicators Number of Sales People Trained/Certified Number of prospects identified Number of customer appointments each month Number of Demonstrations completed Number of prospects touched in Seminars Size of the Sales Pipeline
  • 49. Sales Cycle Does The Rep know how to sell the product? Do we have any identified suspects? Have we had technical people on site? Have we done a proof of concept? Have we presented an ROI Analysis?
  • 50. How about you? “ When we get technical people onsite we win” “ When we do a demo we win” “ When we present ROI cases we win”
  • 51. Group Work Break into groups of four Share your leading indicators Discuss how you could measure at least one new leading indicator effectively (Make sure it is Strategically Aligned!!) 20 minutes
  • 52. Error #5: We don’t manage leading indicators We LOVE facts We don’t like approximations
  • 53. Glancing Back Yesterday – Strategy!  Context  Corporate Strategy Fundamentals – it is all about Differentiation  How a strong Purpose inspires action and Differentiation  The role that workplace Culture plays in Differentiation  Aligning (Corporate, Marketing, Sales Management) Strategy with Sales Today – Sales Strategy & Execution!  The 5 Worst Errors of Sales Strategy 1. Why we shouldn’t treat all customers the same 2. Why we need to adjust the sales people and management processes when the sales cycle gets longer 3. Why a good sales forecast review is a strategic investment 4. How sales incentives and compensation are not everything 5. Why managing leading indicators is more strategic
  • 55. © 2 0 1 3 B Y N I C K F O S T E R O N B E H A L F O F S C H U L I C H E X E C U T I V E E D U C A T I O N C E N T R E ( S E E C ) . A L L R I G H T S R E S E R V E D . N O P A R T O F T H I S P U B L I C A T I O N M A Y B E R E P R O D U C E D , S T O R E D I N A R E T R I E V A L S Y S T E M , O R T R A N S M I T T E D I N A N Y F O R M O R B Y A N Y M E A N S , E L E C T R O N I C , M E C H A N I C A L , R E C O R D I N G , P H O T O C O P Y I N G O R O T H E R W I S E , W I T H O U T W R I T T E N P E R M I S S I O N O F T H E C O P Y R I G H T H O L D E R .