tag:blogger.com,1999:blog-64850439633067745912024-03-05T20:11:42.965-07:00Sales Operations EffectivenessAchieving sustainable sales performance outcomes by implementing targeted improvements in key Sales Effectiveness components over time and through a Program of Change. These components include: sales business processes; understanding the Sales Funnel - defining Stages, conducting Reviews, and coaching to understand results; supporting technologies; implementing business change; and sales forecasting and reporting.Dean Sharratthttp://www.blogger.com/profile/14152718936151850567noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-6485043963306774591.post-23178478667514692532013-09-21T15:57:00.000-07:002013-09-21T16:09:00.160-07:00What Makes Sales Training Sticky?<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-family: "Trebuchet MS", sans-serif;">Recently a LinkedIn member (<span class="author-name"><span lang="EN" style="mso-ansi-language: EN;">Jacques Werth)</span></span> started a very interesting
discussion titled “<span lang="EN" style="mso-ansi-language: EN;">Some sales research
organizations indicate that a very small percentage of sales training provides
any lasting increase in sales volume.”<span style="mso-spacerun: yes;"> </span>Over
80 members responded, identifying one or more ingredients that they believe are
required to make sales training “sticky” (to borrow this phrase from another contributing
member).<span style="mso-spacerun: yes;"> </span>The full discussion can be
found at: </span></span><a href="http://www.linkedin.com/groups/Some-sales-resarch-organizations-indicate-78609.S.268753951?qid=5aa33fa2-4462-449e-b2d4-44e87a66524e&trk=groups_search_item_list-0-b-ttl" target="_blank"><span style="font-family: Arial, Helvetica, sans-serif;"><em>Click on link to Jacques' Discussion on LinkedIn</em></span></a></div>
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<span style="font-size: large;"><span style="font-family: "Trebuchet MS", sans-serif;"></span></span> </h3>
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<span style="font-size: large;"><span style="font-family: "Trebuchet MS", sans-serif;">Analysis:<o:p></o:p></span></span></h3>
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</span><br />
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<span style="font-family: "Trebuchet MS", sans-serif;">Analysis <span lang="EN" style="mso-ansi-language: EN;">of said member
responses</span><span lang="EN"> </span>revealed 7 significant contributors (see
below) that were believed to have a positive impact on training stickiness.<span style="mso-spacerun: yes;"> </span>(Members identified these items in their
discussion contributions).<o:p></o:p></span></div>
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</span><br />
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<span style="font-family: "Trebuchet MS", sans-serif;"><b style="mso-bidi-font-weight: normal;">Coaching and mentoring</b>
comments focused primarily on sales people, but several members pointed out the
need to train and coach sales managers on how to coach effectively.<span style="mso-spacerun: yes;"> </span>Coaching was seen as required to achieve the sales
persons’ adoption of new selling behavior.<span style="mso-spacerun: yes;">
</span>Members pointed out that like all new acquired skills, repetition and
coaching is required to master the new behavior.<span style="mso-spacerun: yes;"> Members saw s</span>ales management discipline as required to
ensure that effective coaching, mentoring, and follow-up with the sales people actually
occurs.<o:p></o:p></span></div>
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</span><br />
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<span style="font-family: "Trebuchet MS", sans-serif;">Member comments regarding <b style="mso-bidi-font-weight: normal;">Sales
Person</b> were focused on the need for coaching, mentoring, and reinforcement.<span style="mso-spacerun: yes;"> </span>Most significant personal attributes for sales
person were seen as adopting the change, followed by being open to change.<span style="mso-spacerun: yes;"> </span>Most frequently used phrases associated with the
sales person were (in order of frequency): “change adoption”, “achieved
incrementally”, “continuous process”, “allow time to change”, “learn from
organization's success”, and “requires repetition to master the new behavior”.<o:p></o:p></span></div>
<span style="font-family: "Trebuchet MS", sans-serif;">
</span><br />
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<span style="font-family: "Trebuchet MS", sans-serif;"><b style="mso-bidi-font-weight: normal;">Sales managers</b> were seen by
members as essential for coaching and mentoring their sales people on the sales
behavior change, and reinforcing same to adopt new sales behavior.<span style="mso-spacerun: yes;"> </span>Several members commented on the need to
train and coach sales managers how to coach effectively.<span style="mso-spacerun: yes;"> </span>Several commented that sales manager tracking
and measuring of change in sales person’s behavior was essential to successful
adoption.<span style="mso-spacerun: yes;"> </span>Phrases most frequently used to
describe sales manager were: “involved”, “has coaching skills”, and “tracks
progress”.<o:p></o:p></span></div>
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</span><br />
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<span style="font-family: "Trebuchet MS", sans-serif;"><b style="mso-bidi-font-weight: normal;">C-Level</b> involvement was seen
as critical to driving the training program “top down”, consistent with company
goals.<span style="mso-spacerun: yes;"> </span>Phrases most frequently used to
describe C-Level were: “involved”, “initiates the change program”, “has the
right expectations about the program”, and “works to get the buy-in”.<o:p></o:p></span></div>
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</span><br />
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<span style="font-family: "Trebuchet MS", sans-serif;"><b style="mso-bidi-font-weight: normal;">Business system context</b> seem
as a required set of building blocks that enable successful adoption of new
sales behavior.<span style="mso-spacerun: yes;"> </span>The context is developed
incrementally from a top down perspective.<span style="mso-spacerun: yes;">
</span>It is within this context that training is delivered and can lead to
successful changes in sales behavior and attitudes.<o:p></o:p></span></div>
<span style="font-family: "Trebuchet MS", sans-serif;">
</span><br />
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<span style="font-family: "Trebuchet MS", sans-serif;"><b style="mso-bidi-font-weight: normal;">Sales business process and sales
methods</b> (one component of the above context) are often the subject of the
sales training, and must be in place both for effective training to be
delivered, and for follow up coaching, mentoring, and reinforcement to take
place.<span style="mso-spacerun: yes;"> </span>Elements of the business process
and method are often the basis of measurement and tracking used in coaching
sales people toward their new sales behavior.<o:p></o:p></span></div>
<span style="font-family: "Trebuchet MS", sans-serif;">
</span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-family: "Trebuchet MS", sans-serif;"><b style="mso-bidi-font-weight: normal;">Measuring & Managing</b>
(including: measuring/tracking, and appraisal/evaluation) seen as utilized by
sales managers to successfully coach and mentor their sales people to new level
of sales behavior (and performance).<span style="mso-spacerun: yes;">
</span>C-Level would use same for sales manager change and performance.<span style="mso-spacerun: yes;"> </span>Key words most often used included: change
adoption and management discipline.<o:p></o:p></span></div>
<span style="font-family: "Trebuchet MS", sans-serif;">
</span><br />
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<b style="mso-bidi-font-weight: normal;"><span style="font-size: 14pt;"><o:p><span style="font-family: "Trebuchet MS", sans-serif;"> </span></o:p></span></b></div>
<h3 class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-size: 14pt;"><span style="font-size: large;"><span style="font-family: "Trebuchet MS", sans-serif;">Conclusion:<o:p></o:p></span></span></span></h3>
<span style="font-family: "Trebuchet MS", sans-serif;">
</span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-family: "Trebuchet MS", sans-serif;">Members described a training program that could be “sticky” as focused
on change adoption of new sales behavior and attitudes, achieved through an incremental
training program driven top-down from C-level, provided on continuous basis
(not once and done), where the program is aligned with company goals, and
training change messages are reinforced by on-going sales manager coaching and
mentoring.<span style="mso-spacerun: yes;"> </span>In addition, members highlighted
several key ingredients required to operationalize the successful end results of
sticky training, these included: a business context of essential building
blocks (i.e., business strategy, business process & methods, tools & techniques,
management processes) within which the training program unfolds; involvement of
key people including C-level who have both the appropriate expectations for the
program, and drive it; sales managers who become effective coaches, and are disciplined
in following through to ensure change is adopted as planned; and sales people
who are both open to change and in fact adopt the new sales behavior; and
finally measurement and management of progress toward change adoption, all
taking place continuously, over a period of time.<span style="mso-spacerun: yes;"> </span>Overall, if training is delivered within the
presence of these ingredients, it will be “sticky”, and the organization will
realize the sales business outcomes it set out to achieve.<o:p></o:p></span></div>
<span style="font-family: "Trebuchet MS", sans-serif;">
</span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-family: Calibri;"><span style="font-family: "Trebuchet MS", sans-serif;">A point not specifically brought out by members deals with the contribution
of sales person motivation to stickiness.<span style="mso-spacerun: yes;">
</span>If sales people realize a great gain in their sales performance, and
compensation, as a result of making the subject change in behavior, they
will become much more open to additional training and change.</span> <o:p></o:p></span></div>
Dean Sharratthttp://www.blogger.com/profile/14152718936151850567noreply@blogger.com0tag:blogger.com,1999:blog-6485043963306774591.post-82990596287608007382013-03-04T11:06:00.000-07:002013-03-04T11:09:13.958-07:00Key Messages from Eli Reisner's Recent Discussion Thread "OK, we got SalesForce. Now how do we get sales people to REALY use it?"
<span style="font-size: large;"><span style="font-family: inherit;">In January Eli Reisner started a Discussion
in the LinkedIn Discussion Group <b>“</b><span lang="EN" style="mso-ansi-language: EN;"><a href="http://www.linkedin.com/groups?home=&gid=78609&trk=anet_ug_hm&goback=%2Egmr_78609" title="This group is members only"><span style="color: blue;">Sales / Marketing Executives (CSO/CMO)</span></a>”;
the topic was “<a href="http://www.linkedin.com/groupItem?view=&gid=78609&type=member&item=202365449&qid=32d4b4fb-418d-49f4-9090-1c246e489acd&trk=group_search_item_list-0-b-ttl&goback=%2Egmr_78609"><span style="color: blue;">OK,
we got SalesForce. Now how do we get sales people to REALY use it?</span></a><span class="title8">".</span><span style="mso-spacerun: yes;"> </span></span>This Discussion
was fascinating due to both the topic and the overwhelming depth and breadth of
the Contributor’s over 100 comments.<span style="mso-spacerun: yes;"> </span>I
was curious to see if there was a major theme that prevailed across the very
broad nature of the Discussion so I undertook a brief analysis.<span style="mso-spacerun: yes;"> </span>To do so I used a context within which to classify
the many and varied responses.<span style="mso-spacerun: yes;"> </span>That
context is a four phase model that I use to view successful CRM
implementations; the phases and some of their sub-components are briefly
described as follows:<o:p></o:p></span></span><br />
<ol>
<li><span style="font-family: inherit;"><span style="font-size: large;">
</span><span style="font-size: large;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;">E</span></span></span>NVISION Your Solution - enable sales management and other key stakeholders to express their vision of their new CRM business system in clear and unambiguous business terms.<o:p></o:p></span></span></li>
<li><span style="font-size: large;"><span style="font-family: inherit;">DESIGN Your Solution - complete the design of the envisioned CRM business system.<span style="mso-spacerun: yes;"> </span>Key deliverables of this phase include: sales business process design, sales management process design, technology infrastructure design (e.g., CRM solution, interfaces to other systems), participants confirmation – identify change readiness, and data and reporting design<o:p></o:p></span></span></li>
<li><span style="font-size: large;"><span style="font-family: inherit;">IMPLEMENTATION Plan - implement the CRM business system as designed in previous Phase.<span style="mso-spacerun: yes;"> </span>Depending upon the Plan this may be done in several releases of designed business functionality.<o:p></o:p></span></span></li>
<li><span style="font-size: large;"><span style="font-family: inherit;">HARVEST Your Benefits - harvest the benefits defined in Envision Phase through full adoption by all participants.<o:p></o:p></span></span></li>
</ol>
<span style="font-family: inherit; font-size: large;">
</span><br />
<span style="font-family: inherit; font-size: large;"><a name='more'></a></span><br />
<div class="MsoNormalCxSpMiddle" style="line-height: normal; margin: 1em 0px 0pt; mso-add-space: auto;">
<span style="font-family: inherit; font-size: large;">Each of the comments made by the Contributors
to this Discussion typically applied to more than one part this context.<span style="mso-spacerun: yes;"> </span>In some cases comments applied to the phase
in general, in others to specific sub-components.<span style="mso-spacerun: yes;"> </span>Overall, just four of these phase/sub-component
items accounted for 80% of the total comments made; these four were:</span></div>
<ol>
<li><span style="font-family: inherit; font-size: large;">
Change Adoption – 48% of comment</span></li>
<li><span style="font-family: inherit; font-size: large;">Implementation – 15%</span></li>
<li><span style="font-family: inherit; font-size: large;">Data and Reporting – 9%</span></li>
<li><span style="font-size: large;"><span style="font-family: inherit;">Tools & Techniques – 8%<o:p></o:p></span></span></li>
</ol>
<span style="font-family: inherit; font-size: large;">
</span><br />
<div class="MsoNormalCxSpMiddle" style="line-height: normal; margin: 1em 0px 0pt; mso-add-space: auto;">
<span style="font-size: large;"><span style="font-family: inherit;">It is not surprising that Change and Implementation
made up just over 60% of the total comments as this was the main Discussion topic.<span style="mso-spacerun: yes;"> </span>However, Contributors did step outside of
Change and Implementation (40% of comments) to caution that Design components also
have the potential for a big impact on Adoption.<o:p></o:p></span></span></div>
<span style="font-family: inherit; font-size: large;">
</span><br />
<div class="MsoNormalCxSpMiddle" style="line-height: normal; margin: 1em 0px 0pt; mso-add-space: auto;">
<span style="font-size: large;"><span style="font-family: inherit;">Since Change Adoption made up almost 50%
of the comments overall I further broke this down to look for key Change
messages.<span style="mso-spacerun: yes;"> </span>Out of this subset of Change
related comments, just five Change topics accounted for 60% of this subset
total.<span style="mso-spacerun: yes;"> </span>Each was fairly even in its contribution
to the 60%; these were:<o:p></o:p></span></span></div>
<ol>
<li><span style="font-size: large;"><span style="font-family: inherit;">
Communicate the value of CRM to Sales People – 15%<o:p></o:p></span></span></li>
<li><span style="font-size: large;"><span style="font-family: inherit;">Sales Management provides coaching to Sales People on both process and deal content – 12%<o:p></o:p></span></span></li>
<li><span style="font-size: large;"><span style="font-family: inherit;">Sales Management’s actively participation very much required – 12%<o:p></o:p></span></span></li>
<li><span style="font-size: large;"><span style="font-family: inherit;">Use a Formal Change Management Program to achieve Adoption – 11%<o:p></o:p></span></span></li>
<li><span style="font-size: large;"><span style="font-family: inherit;">Use carrot approach to incent Sales People – 7% <span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>(BTW: Using a Stick approach contributed a further 4%)<o:p></o:p></span></span></li>
</ol>
<span style="font-family: inherit; font-size: large;">
</span><br />
<div class="MsoNormalCxSpMiddle" style="line-height: normal; margin: 1em 0px 0pt; mso-add-space: auto;">
<span style="font-size: large;"><span style="font-family: inherit;">Those familiar with implementing Change
Adoption Programs may recognize that all five of these topics are typically part
of a Change Program in some fashion (with one specifically directed at a Change
Program).<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></div>
<span style="font-family: inherit; font-size: large;">
</span><br />
<div class="MsoNormalCxSpMiddle" style="line-height: normal; margin: 1em 0px 0pt; mso-add-space: auto;">
<span style="font-size: large;"><span style="font-family: inherit;">From this analysis I concluded that the
primary theme which ran through this broad ranging Discussion was the need for
a formal Change Adoption Program, and that the above five topics are some (but perhaps
not all) of the necessary ingredients for success.<span style="mso-spacerun: yes;"> </span>We should also remember that a successful
adoption is enabled by an effective design for the specific organization.<o:p></o:p></span></span></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<o:p><span style="font-family: Calibri;"> </span></o:p></div>
Dean Sharratthttp://www.blogger.com/profile/14152718936151850567noreply@blogger.com1tag:blogger.com,1999:blog-6485043963306774591.post-80377253853486339702013-03-03T16:12:00.000-07:002013-03-03T16:45:23.106-07:00What is a Realistic Estimate for Today’s Sales Win-Rates<span style="font-size: large;"></span><br />
<span style="font-size: large;">
</span><span style="font-family: Calibri;"><span style="font-size: large;">I recently posted the following two questions on a LinkedIn Discussion
Group: <o:p></o:p></span></span><br />
<span style="font-size: large;">
</span><br />
<div class="MsoListParagraphCxSpFirst" style="line-height: normal; margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-size: large;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">1.</span><span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span><span style="font-family: Calibri;">For today’s sales organizations, what is a
realistic estimate of the number of initially qualified complex sales
opportunities required in the pipeline in order to pull one through as a won
(signed contract) deal – 3, 5, 10?<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></div>
<span style="font-size: large;">
</span><br />
<div class="MsoListParagraphCxSpLast" style="line-height: normal; margin: 0in 0in 0pt 0.5in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-size: large;"><b style="mso-bidi-font-weight: normal;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: Calibri;">2.</span><span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span></span></b><span style="font-family: Calibri;">What
should this multiple be in a highly functioning sales organization?<b style="mso-bidi-font-weight: normal;"><o:p></o:p></b></span></span></div>
<span style="font-size: large;">
</span><br />
<span style="font-size: large;">
</span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt 0.25in;">
<span style="font-family: Calibri;"><span style="font-size: large;">Definitions:<span style="mso-spacerun: yes;"> </span>Qualified = Agreed upon (preliminary) assessment
of client’s Need to Buy, Means to Buy, and Urgency to Buy; provider has
potential solution, and competitive positioning.<span style="mso-spacerun: yes;"> </span>Complex = Multiple decision makers, several
weeks to months decision cycle, large dollar value.<o:p></o:p></span></span></div>
<span style="font-size: large;">
</span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<o:p><span style="font-family: Calibri; font-size: large;"> </span></o:p></div>
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-family: Calibri;"><span style="font-size: large;">These questions come up from time to time as one measure of the overall
effectiveness of a sales organization.<span style="mso-spacerun: yes;"> </span>In
past Discussions Contributors have responded with answers in the range of 3
(see paragraph below).<span style="mso-spacerun: yes;"> </span>This current posting
resulted in responses that were similar to the previous wherein Contributors described
that a reasonable goal was 3 Qualified Opportunities yielding 1 win; some went
further to describe an aggressive goal of 2 to 1 for a highly functioning sales
organization.<span style="mso-spacerun: yes;"> </span>My sense is that these are
very aggressive numbers.<span style="mso-spacerun: yes;"> </span>However, I
realize that these are very dependent upon the client’s decision making cycle,
and where the sales organization engages the client.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></div>
<span style="font-size: large;">
</span><br />
<span style="font-size: large;"><a name='more'></a></span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-family: Calibri; font-size: large;">In early 2011 I participated in a similar discussion (see the long
version of my contribution with graphics at [</span><a href="http://salesopseffectiveness.blogspot.com/2011/05/great-debate-how-big-should-your-funnel.html"><span style="color: blue; font-family: Calibri; font-size: large;">http://salesopseffectiveness.blogspot.com/2011/05/great-debate-how-big-should-your-funnel.html</span></a><span style="font-family: Calibri;"><span style="font-size: large;">].<span style="mso-spacerun: yes;"> </span>This described a sales process based on a client
focused decision making cycle, and using a simple model looked at two examples
(sales person well positioned to lead client, and sales person follows client).<span style="mso-spacerun: yes;"> </span>After making decisions about “pull thru” from
one Stage to next this showed that for the well positioned case the sales
person could require 4 opportunities at initially qualified point (client
agrees urgent problem or opportunity has been identified, and client has budget
to address), and for the following sales case that number was closer to 19.<span style="mso-spacerun: yes;"> </span>Clearly this is very dependent upon the
estimates for pull thru, but there is little doubt that a sales person will have
a hard time trying to manage 19 opportunities successful.<o:p></o:p></span></span></div>
<span style="font-size: large;">
</span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-family: Calibri;"><span style="font-size: large;">Some Contributors in the recent Discussion pointed out that a strong
Go-to-Market Strategy is essential, but it seems that this is not the only
thing that needs to be high performing.<span style="mso-spacerun: yes;">
</span>Once the Strategy is in place the sales organization must execute very
effectively.<span style="mso-spacerun: yes;"> </span>This requires a very
effective sales execution process (including process, management rules and
guidelines, tools, and effective sales people) be in place, and that the sales
organization executes it effectively.<span style="mso-spacerun: yes;">
</span>The difference between the two examples in the above paragraph could be
attributed to poor execution.<span style="mso-spacerun: yes;"> </span>I hear of
too many cases where sales managers allow sales people to fill up their
pipelines with questionable deals in part because of need to “manage optics”.<o:p></o:p></span></span></div>
<span style="font-size: large;">
</span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-family: Calibri;"><span style="font-size: large;">This is not simple!<span style="mso-spacerun: yes;"> </span>Clearly
there does not appear to be a “one size fits all” number that describes good
complex sales win performance for all organizations.<span style="mso-spacerun: yes;"> </span>In general, a sales organization’s (or sales
individual) current win ratio is influenced by its go-to-market strategy for
net new business.<span style="mso-spacerun: yes;"> </span>The ratio for those
whose strategy is focused on convincing prospective clients of a need before
they are aware of it will likely be different than that of a sales organization
whose strategy is only to seek out prospective clients who are actively seeking
a solution to an already identified need (e.g., issued RFP).<span style="mso-spacerun: yes;"> </span>(These strategies imply a number of other
considerations as well).<span style="mso-spacerun: yes;"> </span>A net new
business ratio of 1:3 may be good in one environment, while 1:8 may be
appropriate in another.<span style="mso-spacerun: yes;"> </span>BTW: if you have
a high content of renewal or follow-on business then this will also influence
this ratio.<o:p></o:p></span></span></div>
<span style="font-size: large;">
</span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-family: Calibri;"><span style="font-size: large;">There are a couple of conclusions that can be drawn from these two
Discussions:<span style="mso-spacerun: yes;"> </span></span></span></div>
<ol>
<li><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-family: Calibri; font-size: large;">Understanding this ratio for your sales environment is what is most important.<span style="mso-spacerun: yes;"> </span>It is a personal number for each sales person and a sales unit number for each sales manager.<span style="mso-spacerun: yes;"> </span>It is important to understand this ratio as it is the baseline from which the results of improvement efforts can be measured. So, be realistic about the current win ratio.<span style="mso-spacerun: yes;"> </span>After all, if you want to be a world class sprinter and you sought out a world class coach for help, the first thing that this coach would likely do is to take you out to the track and have you run a few time trials.</span></div>
</li>
<li><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-family: Calibri;"><span style="font-size: large;">Develop and execute a plan to improve your win ratio.<span style="mso-spacerun: yes;"> </span>If you don’t have a defined set of Stages in your sales funnel then develop same (client decision focused, with well-defined verifiable exit points).<span style="mso-spacerun: yes;"> </span>These should be consistent with your sales business process.<span style="mso-spacerun: yes;"> </span>Define and track client focused activities.<span style="mso-spacerun: yes;"> </span>Get used to recording, tracking, and reporting; the only way to know if your performance is improving (BTW: Big Data practices will be coming to sales).<span style="mso-spacerun: yes;"> </span>A good CRM will help to make this transparent.<span style="mso-spacerun: yes;"> </span>Provide or obtain effective active coaching to improve sales performance (e.g., win rate ratios).<span style="mso-spacerun: yes;"> </span>How else will the sales person become that gold medal sprinter, 10K, or whatever your analogy!<span style="mso-spacerun: yes;"> </span>This does assume that an effective infrastructure is in place to enable this performance – but this is another topic!<o:p></o:p></span></span></div>
</li>
</ol>
Dean Sharratthttp://www.blogger.com/profile/14152718936151850567noreply@blogger.com0tag:blogger.com,1999:blog-6485043963306774591.post-55932798814223168752012-07-10T12:27:00.002-07:002012-08-01T10:45:31.803-07:00Sales Metrics and Sales Coaching - Can You Have Both?<span style="font-family: Calibri;"></span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><span style="font-family: Calibri;"><span style="font-size: large;">I recently participated in a
Discussion on “Sales Metrics vs. Sales Coaching”.<span style="mso-spacerun: yes;"> </span>The author of the article <span style="color: blue;">(</span></span></span></span><a href="http://www.linkedin.com/redirect?url=http%3A%2F%2Fow%2Ely%2FbNcH3&urlhash=y9Sp&_t=tracking_anet" target="blank"><span lang="EN" style="mso-ansi-language: EN;"><span style="color: blue; font-family: Calibri; font-size: large;">http://ow.ly/bNcH3</span></span></a><span style="font-family: Calibri;"><span style="font-size: large;"><span class="MsoHyperlink"><span lang="EN" style="color: blue; mso-ansi-language: EN;"><u>)</u></span></span><span lang="EN" style="mso-ansi-language: EN;"> makes a good point – keep sales people
focused on a few things that they can perform at really well.<span style="mso-spacerun: yes;"> </span>Don’t confuse them with too many
variables.<span style="mso-spacerun: yes;"> </span>Use their good behavior to
coach others.<span style="mso-spacerun: yes;"> </span>The following is my
contribution to this Discussion, with later enhancements.<o:p></o:p></span></span></span></div>
<br />
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><span style="font-family: Calibri; font-size: large;">The topic is really “Sales
Metrics <u>and</u> Sales Coaching”, not “vs.”!<span style="mso-spacerun: yes;">
</span>Metrics and Coaching go together.<span style="mso-spacerun: yes;">
</span>To paraphrase my great Italian friend Mike “one without the other is
like a day without wine!” <span style="mso-spacerun: yes;"> </span>Yes, most
sales people when overwhelmed with too many measures simply self-select the
ones they like and ignore the rest.<span style="mso-spacerun: yes;"> </span>It
is the responsibility of sales management to minimize this ambiguity.<span style="mso-spacerun: yes;"> </span>Sales management must set the context within
which their sales people can focus on a few key things and be wildly successful.<span style="mso-spacerun: yes;"> </span>Ongoing, sales management would monitor what
is going on both overall and with specific agreed upon measures.<span style="mso-spacerun: yes;"> </span>Using insights from these metrics they would coach
their sales people to greater success.</span></span></div>
<br />
<span style="font-family: Calibri; font-size: large;"></span><br />
<span style="font-family: Calibri; font-size: large;"><a name='more'></a></span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><span style="font-family: Calibri;"><span style="font-size: large;">To keep this post a quick
read it is focused on metrics.<span style="mso-spacerun: yes;"> </span>Coaching,
based on metrics, is another significant topic and deserves its own focused
discussion.<span style="mso-spacerun: yes;"> </span>For this post the scope of coaching
includes results, behavioral topics, and out-of-the-box thinking on deal
strategy.<o:p></o:p></span></span></span></div>
<br />
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><span style="font-family: Calibri; font-size: large;">In examining which metrics
to use to track and to understand performance, it helps to examine the following
general sales business process areas:</span></span></div>
<ul><span style="font-size: large;">
</span>
<li><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><span style="font-family: Calibri; font-size: large;">Opportunity Management</span></span></div>
<span style="font-size: large;">
</span></li>
<span style="font-size: large;">
</span></ul>
<ul><span style="font-size: large;">
</span>
<li><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><span style="font-family: Calibri; font-size: large;">Lead Generation </span></span></div>
<span style="font-size: large;">
</span></li>
<span style="font-size: large;">
</span></ul>
<ul><span style="font-size: large;">
</span>
<li><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><span style="font-family: Calibri; font-size: large;">Territory Management/Account Management</span></span></div>
<span style="font-size: large;">
</span></li>
<span style="font-size: large;">
</span></ul>
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><span style="font-family: Calibri;"><span style="font-size: large;">In addition to these process
areas, sales management should include certain Expected Behaviors. <span style="mso-spacerun: yes;"> </span>All of these are elaborated upon below.<o:p></o:p></span></span></span></div>
<br /><br />
<br />
<h3 class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-size: large;">
<span lang="EN" style="mso-ansi-language: EN;">Opportunity Management:<o:p></o:p></span></span></h3>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><span style="font-family: Calibri;"><span style="font-size: large;">To simplify this discussion
think of the Opportunity Management process as the flow through a pipeline – leads
go into the pipeline (AKA Sales Funnel) and the outputs are hopefully wins, but
also includes losses, cancelled deals, or opportunities that are not yet ready
and should be turned back into leads.<span style="mso-spacerun: yes;">
</span></span></span></span><br />
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjE-EMFzAMquuybVxsEH0FgJu9XWb8g4LKYXUyEOO8DgsvN5vR6LLoiFn9xAXteoocRiyoqN4zDBtJdqrRQ6Esg6ppILuQfSQ9y4WHEeNVI72qnqQUMg5NBuC9Mkux-OHKIvCgCMNwNwSlk/s1600/Sales+Pipeline+graphic+7-7-12.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><span style="font-size: large;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjE-EMFzAMquuybVxsEH0FgJu9XWb8g4LKYXUyEOO8DgsvN5vR6LLoiFn9xAXteoocRiyoqN4zDBtJdqrRQ6Esg6ppILuQfSQ9y4WHEeNVI72qnqQUMg5NBuC9Mkux-OHKIvCgCMNwNwSlk/s320/Sales+Pipeline+graphic+7-7-12.jpg" width="320" /></span></a><span lang="EN" style="mso-ansi-language: EN;"><span style="font-family: Calibri;"></span></span><br />
<span style="font-size: large;"><br /></span><br />
<span lang="EN" style="mso-ansi-language: EN;"><span style="font-family: Calibri; font-size: large;">Life is better when the ratio of Leads to Wins is closer to 1-to-1! </span></span><br />
<span style="font-size: large;"><br /></span><br />
<span lang="EN" style="mso-ansi-language: EN;"><span style="font-family: Calibri; font-size: large;">The company’s Opportunity
Management process determines what happens inside the pipeline in taking the
input (lead) and producing the desired output (win).<span style="mso-spacerun: yes;"> </span>In general, sales management could examine several
performance metrics throughout this process.<span style="mso-spacerun: yes;">
</span>Having done so, they are positioned with the insights to coach their
sales people to take actions that will correct or enhance desired pipeline
performance.<span style="mso-spacerun: yes;"> </span>Hence, “Sales Metrics and
Sales Coaching “!</span></span></div>
<span style="font-size: large;"><br /></span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><span style="font-family: Calibri; font-size: large;">The pipeline is rich with
opportunities for metrics and measures, and reflects the business context.<span style="mso-spacerun: yes;"> </span>As noted above, a common mistake is to get
carried away with too many formal sales person tracking metrics.<span style="mso-spacerun: yes;"> </span>Following is an overview of good candidate
metrics:</span></span></div>
<ul><span style="font-size: large;">
</span>
<li><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><span style="font-family: Calibri; font-size: large;">The output end – examples
include: </span></span></div>
<span style="font-size: large;">
</span></li>
<span style="font-size: large;">
</span><ul><span style="font-size: large;">
</span>
<li><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><span style="font-family: Calibri;"><span style="font-size: large;">Are win results meeting expectations, consistently over time?<span style="mso-spacerun: yes;"> </span></span></span></span></div>
<span style="font-size: large;">
</span></li>
<span style="font-size: large;">
</span>
<li><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><span style="font-family: Calibri;"><span style="font-size: large;">What is the yield from the pipeline (i.e., that ratio of Leads to Wins)?<span style="mso-spacerun: yes;"> </span></span></span></span></div>
<span style="font-size: large;">
</span></li>
<span style="font-size: large;">
</span></ul>
<span style="font-size: large;">
</span></ul>
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-size: large;"><br /></span></div>
<ul><span style="font-size: large;">
</span>
<li><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><span style="font-family: Calibri; font-size: large;">The actions within the
pipeline are an important leading indicator to successful output, and provide
great insights for sales manager coaching.<span style="mso-spacerun: yes;">
</span>Two good examples include: </span></span></div>
<span style="font-size: large;">
</span></li>
<span style="font-size: large;">
</span><ul><span style="font-size: large;">
</span>
<li><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><span style="font-family: Calibri; font-size: large;">Velocity of opportunities
through the company’s identified Stages of sales person’s pipeline.<span style="mso-spacerun: yes;"> </span>Having lots of deals in various Stages is
good unless they have been sitting for much longer than sales management’s expectations
for a healthy deal velocity.<span style="mso-spacerun: yes;"> </span>This
results in a bloated pipeline!<span style="mso-spacerun: yes;"> </span>Giving a
false sense of well-being, but very misleading to all!</span></span></div>
<span style="font-size: large;">
</span></li>
<span style="font-size: large;">
</span>
<li><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><span style="font-family: Calibri;"><span style="font-size: large;">Appropriate balance of
opportunities at each Stage within the pipeline that will produce a consistent
stream of wins over time.<span style="mso-spacerun: yes;"> </span>Does the sales
person have enough healthy deals in his/her pipeline to produce results needed
to consistently meet targets?<span style="mso-spacerun: yes;"> </span>For
example, if the sales person is only focused on a few deals at the closing
Stages of pipeline then they are likely to face a “dry spell” in the near
future (i.e., the pig-in-python effect).<o:p></o:p></span></span></span></div>
<span style="font-size: large;">
</span></li>
<span style="font-size: large;">
</span></ul>
<span style="font-size: large;">
</span></ul>
<span style="font-size: large;"><br /></span><br />
<h3 class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-size: large;">
<span lang="EN" style="mso-ansi-language: EN;">Lead Generation:<o:p></o:p></span></span></h3>
<span style="font-size: large;"><br /></span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><span style="font-family: Calibri; font-size: large;">Nothing happens unless an
adequate number of leads enter the pipeline. Understanding the number of leads
entering the pipeline is a key metric. <span style="mso-spacerun: yes;"> </span>BTW:
marketing people will likely want Sales to track the source of such leads.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>Lead
generation is a big effort, and some think one that requires a different skill
set than most average high performing sales persons.<span style="mso-spacerun: yes;"> </span>Many organizations utilize an inside sales
center (or outsourced) to generate leads that are qualified and then turned
over to the field sales person to confirm and work as a qualified
opportunity.<span style="mso-spacerun: yes;"> </span>If so, sales management may
want to measure the number of leads generated by same and passed to field sales,
the number rejected by field sales, and the number that result in a win. <span style="mso-spacerun: yes;"> </span>(BTW – do you know how many Leads you need
entering your Pipeline/Funnel in order to have the expected number of
Wins?<span style="mso-spacerun: yes;"> </span>Many underestimate this
multiple!<span style="mso-spacerun: yes;"> </span>See my earlier Blog entry on
this topic </span></span><a href="http://salesopseffectiveness.blogspot.com/2011/05/great-debate-how-big-should-your-funnel.html"><span lang="EN" style="mso-ansi-language: EN;"><span style="color: blue; font-family: Calibri; font-size: large;">http://salesopseffectiveness.blogspot.com/2011/05/great-debate-how-big-should-your-funnel.html</span></span></a><span lang="EN" style="mso-ansi-language: EN;"><span style="font-family: Calibri;"><span style="color: blue;"><span style="font-size: large;">).<o:p></o:p></span></span></span></span></div>
<span style="font-size: large;"><br /></span><br />
<h3 class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-size: large;">
<span lang="EN" style="mso-ansi-language: EN;">Territory Management / Account Management:<o:p></o:p></span></span></h3>
<span style="font-size: large;"><br /></span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><span style="font-family: Calibri;"><span style="font-size: large;">This is where sales
management has the opportunity to set the context for the sales person’s
focus.<span style="mso-spacerun: yes;"> </span>Just tossing a sales person into
a general geography may be too ambiguous.<span style="mso-spacerun: yes;">
</span>If sales management wants to penetrate several new industries, why not
dedicate each sales person to one or two industries?<span style="mso-spacerun: yes;"> </span>If sales management wants to sell a broad
range of products/services, don’t burden each sales person with everything,
particularly if the buyer level or sales approach is significantly different for
each product/service.<span style="mso-spacerun: yes;"> </span>If sales
management wants to incent performance for a specific product/service, why not
place a bonus on sale of same?<span style="mso-spacerun: yes;"> </span>The
outcome of this thinking is sales people are generally assigned one or more
solutions (products/services) to sell into a focused territory.<span style="mso-spacerun: yes;"> </span>Over time sales management would then inspect
whether the sales person has assessed their territory and set a priority for
accounts where they expect to find and close opportunities.<span style="mso-spacerun: yes;"> </span>In other words, does the sales person have a
plan for where their business will be generated?<span style="mso-spacerun: yes;"> </span>In many cases sales people are assigned one
or a few large accounts as their territory.<span style="mso-spacerun: yes;">
</span>For these people having an agreed upon account plan for each is key to
success.<span style="mso-spacerun: yes;"> </span>These two points are key areas
for coaching.<span style="mso-spacerun: yes;"> </span>Getting the sales person
focused within their territory/account(s) can reduce flail and keep their
pipelines charged with good viable opportunities.<o:p></o:p></span></span></span></div>
<span style="font-size: large;"><br /></span><br />
<h3 class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-size: large;">
<span lang="EN" style="mso-ansi-language: EN;">Expected Behaviors:<o:p></o:p></span></span></h3>
<span style="font-size: large;"><br /></span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span lang="EN" style="mso-ansi-language: EN;"><span style="font-family: Calibri;"><span style="font-size: large;">The above metrics reflect actions
as consequence of following the company’s prescribed sales business
processes.<span style="mso-spacerun: yes;"> </span>In addition to these metrics,
sales management should also inspect whether the sale person is behaving the
way they expect.<span style="mso-spacerun: yes;"> </span>Non-compliant behavior
can seriously erode the effectiveness of business processes and sales
success.<span style="mso-spacerun: yes;"> </span>These are “softer” metrics, but
can lead to effective “coaching moments”.<span style="mso-spacerun: yes;">
</span>The following are typical questions that sales management should ask: <span style="mso-spacerun: yes;"> </span>Is the sales person following the sales
process that the company has prescribed?<span style="mso-spacerun: yes;">
</span>Is the sales person interacting with client/prospect in way that the sale
manager expects (i.e., make some joint calls)?<span style="mso-spacerun: yes;">
</span>Is the sale person focused or does she/he “chase every rabbit that
crosses the road”?<span style="mso-spacerun: yes;"> </span>Hopefully coaching
aligns expected sales person behavior. <span style="mso-spacerun: yes;"> </span>In
persistent non-compliance situations, sale management should identify
appropriate formal measurements for improvement.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></span></div>
<span style="font-size: large;"><br /></span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-family: Calibri;"><span lang="EN" style="mso-ansi-language: EN;"><span style="font-size: large;">In summary, all of the above
metric areas can break down to many specific measures.<span style="mso-spacerun: yes;"> </span>Too many with which to burden an individual
sales person!<span style="mso-spacerun: yes;"> </span>Sales management should analyze
the universe of these to understand what is happening within their business.<span style="mso-spacerun: yes;"> </span>Dashboards with drill downs are great
vehicles to enable such analysis!<span style="mso-spacerun: yes;"> </span>Having
gained insights from this analysis the sales manager would select specific key agreed
upon metrics and measures for focused coaching with their sales people.<span style="mso-spacerun: yes;"> </span>These areas may change over time as various
parts of the business process performance improves or weakens.<span style="mso-spacerun: yes;"> </span>So – the entire metrics performance dashboard
is for “Captain Kirk”, each sales person gets a dashboard with a few specific
dials, and both are in sync with the readings, with Captain Kirk coaching as
required<i style="mso-bidi-font-style: normal;">!<span style="mso-spacerun: yes;">
</span>…and all will live long and prosper!!</i></span> </span><o:p></o:p></span></div>Dean Sharratthttp://www.blogger.com/profile/14152718936151850567noreply@blogger.com2tag:blogger.com,1999:blog-6485043963306774591.post-15700670742987998792012-06-10T18:15:00.001-07:002013-03-03T16:16:21.466-07:00Implementing CRM Should Be Easy, Eh!<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-family: Calibri;"><span style="font-size: large;">Thought that I would let my Canadian heritage show this morning!<span style="mso-spacerun: yes;"> </span>I recently participated in an interesting<span style="color: blue;"> </span></span></span><a href="http://www.focus.com/"><span style="color: blue; font-family: Calibri; font-size: large;">Focus.com</span></a><span style="font-family: Calibri;"><span style="font-size: large;"> Discussion initiated by<span style="color: blue;"> </span></span></span><a href="http://www.focus.com/profiles/kerri-groves/public/"><span style="color: blue; font-family: Calibri; font-size: large;">Kerri Groves</span></a><span style="font-family: Calibri;"><span style="font-size: large;">, a
Brit from Vancouver now living in UK! <span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></span></div>
<span style="font-size: large;"><br /></span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-family: Calibri;"><span style="font-size: large;">The following summarizes the discussion and my contribution including some
additional post-discussion thoughts.<span style="mso-spacerun: yes;"> </span>Kerri
started this Discussion with a question along the lines of “CRM has been around
for quite a while and maybe has not produced the expected (or hyped) business
impact.<span style="mso-spacerun: yes;"> </span>Yet many still believe that a
successful implementation is just as easy as downloading an app to your phone
or pad.<span style="mso-spacerun: yes;"> </span>No one views an ERP
implementation this way!<span style="mso-spacerun: yes;"> </span>So what’s up?” <o:p></o:p></span></span></div>
<br />
<span style="font-size: large;"><a name='more'></a></span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-family: Calibri;"><span style="font-size: large;">I have participated in both CRM and ERP implementations – so I have
seen both sides now!<span style="mso-spacerun: yes;"> </span>It seems to me
that part of the answer lays in the starting point for each, in evolution of
the technologies, expectations for the outcomes for the resulting
implementations, and business priorities.<span style="mso-spacerun: yes;">
</span>This sounds like Stages of IT Maturity (i.e.,<span style="color: blue;"> </span></span></span><a href="http://en.wikipedia.org/wiki/Capability_Maturity_Model"><span style="color: blue; font-family: Calibri; font-size: large;">CMM</span></a><span style="font-family: Calibri;"><span style="font-size: large;">)!<span style="mso-spacerun: yes;"> </span>A quick walk thru history might help put
things into a context.<o:p></o:p></span></span></div>
<span style="font-size: large;"><br /></span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-family: Calibri;"><span style="font-size: large;">The mainstream ERPs (e.g., Oracle, SAP) that have been around for a
while started way back in the days of mainframes with all that JCL stuff that
was not user friendly!<span style="mso-spacerun: yes;"> </span>In fact these
were big complex systems that required specialized IT skills just to install
the vendor software.<span style="mso-spacerun: yes;"> </span>That was acceptable
as IT had all the skills necessary, and it was seen as an IT responsibility.<span style="mso-spacerun: yes;"> </span>The vendor software was developed with the
assumption that these required skills would not be a limiting factor in the
success of their ERP solution.<span style="mso-spacerun: yes;"> </span>Further, the
top business priority was to get the operational part of the business done,
accounted for, and reporting on correctly and timely!<span style="mso-spacerun: yes;"> </span>The expectation was that the data when
reported was correct; after all the company used this data to take action, in
annual reports, filings, executive compensation, etc.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>Time
moves on, this stuff is pretty mature by now; people have realistic
expectations about what is required to implement a successful business system.<o:p></o:p></span></span></div>
<span style="font-size: large;"><br /></span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-family: Calibri;"><span style="font-size: large;">The sales guys were historically pretty much left on their own to
manage their sales opportunity tracking.<span style="mso-spacerun: yes;">
</span>In the early days most nascent CRM software solutions could only survive
in a world where sales users could manage its implementation (the IT guys were
busy working on the latest ERP upgrade!).<span style="mso-spacerun: yes;">
</span><span style="mso-spacerun: yes;"> </span>As a result CRM solutions
developed on user accessible platforms; laptops initially then later “in the
cloud”.<span style="mso-spacerun: yes;"> </span>In order to survive the whole
implementation of the technical CRM solution had to be very easy, quick, and
not require a lot of technical support!<span style="mso-spacerun: yes;">
</span>And in fact today a simple “stand alone” cloud solution for tracking
accounts, contacts, leads, sales opportunities can be turned on in a couple of
weeks, by non-IT people!<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>Expectations for the data played a big role.<span style="mso-spacerun: yes;"> </span>Most organizations historically and perhaps
even today see this as “data for the sales guys”.<span style="mso-spacerun: yes;"> </span>It never leaves their department; the company
does not formally report this data beyond its internal use, and so forth.<span style="mso-spacerun: yes;"> </span>So most sales managers took the view that “close
is good enough” because in their view “It’s a lot better than those
spreadsheets we had before!”<span style="mso-spacerun: yes;"> </span>Early
implementation success was never broadly reviewed within the company; maybe not
even within the sales organization.<span style="mso-spacerun: yes;"> </span>However,
the CRM side is maturing as well.<o:p></o:p></span></span></div>
<span style="font-size: large;"><br /></span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-family: Calibri; font-size: large;">The past few years have seen many developments and changes in the CRM
space and the satellite solutions around it.<span style="mso-spacerun: yes;">
</span>In fact it could be said at a highly accelerated pace of
advancement!<span style="mso-spacerun: yes;"> </span>Vendors have been pushing
the functionality of their solutions with a significant focus on links and
integrations to other business systems (e.g., ERPs), internal and external sites,
and services.<span style="mso-spacerun: yes;"> </span>Sales management’s
expectation for what can be done has been increased (mostly by vendor
push).<span style="mso-spacerun: yes;"> </span>The very competitive business marketplace
of the past several years has raised the business priority on improving sales
results.<span style="mso-spacerun: yes;"> </span>The nature of CRM is changing
as well.<span style="mso-spacerun: yes;"> </span>I recently sat in on a webcast
by InformationWeek and IBM on “Becoming a Social Business".<span style="mso-spacerun: yes;"> </span>What Ted Schadler of Forrester Research
described looks like the next wave in CRM evolution – </span><a href="http://www.informationweek.com/thebrainyard/whitepapers/view/100120/guide-to-understanding-social-crm"><span style="color: blue; font-family: Calibri; font-size: large;">Social
CRM</span></a><span style="font-family: Calibri;"><span style="font-size: large;">!<span style="mso-spacerun: yes;"> </span>Big implications!<span style="mso-spacerun: yes;"> </span>As result CRM implementations have now become
bigger, more complex (i.e., more money), more disruptive to normal sales and
other business operations, and with links into other business systems
(back-end, front-end, you name it!).<span style="mso-spacerun: yes;"> </span>Maybe
starting to take on that “ERP implementation look”!<span style="mso-spacerun: yes;"> </span>Hence people are asking a good question “Did
we get the value that we set out to achieve?”<span style="mso-spacerun: yes;">
</span>And… maybe the answers are not so rosy!<span style="mso-spacerun: yes;">
</span>At this point you could say that the industry is in or approaching the
Disillusionment Stage of IT Maturity for CRM implementation!<span style="mso-spacerun: yes;"> </span>If not now then soon as the “laws of IT Maturity”
hold that all must go through these Stages. <o:p></o:p></span></span></div>
<span style="font-size: large;"><br /></span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-family: Calibri;"><span style="font-size: large;">So how can an organization minimize the impact and time spent in this
Stage?<span style="mso-spacerun: yes;"> </span>This is where, as David Brock
pointed out, organizations need to shift their focus to Change Management.<span style="mso-spacerun: yes;"> </span>It’s not about the technology!<span style="mso-spacerun: yes;"> </span>It’s about identifying, understanding, and successfully
implementing the business change that will drive the business results sales
management seeks.<span style="mso-spacerun: yes;"> </span>The focus should be on
assisting sale management to enhance the maturity of their thinking about and
involvement in not only the functional aspects but the business change aspects
of CRM implementation.<span style="mso-spacerun: yes;"> </span>Change Management
is an organizational skill and capability, not something invested in a few
people.<span style="mso-spacerun: yes;"> </span>It is an organizational capability
that must be developed internally, over time; it cannot be acquired through service-for-hire
people (although they can coach you).<span style="mso-spacerun: yes;"> </span>It
is also has a<span style="color: blue;"> </span></span></span><a href="http://www.change-management.com/tutorial-ecm-maturity-model.htm"><span style="color: blue; font-family: Calibri; font-size: large;">maturity
growth curve</span></a><span style="font-family: Calibri;"><span style="font-size: large;"> so there are implications about how much change can be successfully
achieved depending upon the organization’s current level of Change maturity.<span style="mso-spacerun: yes;"> </span>To succeed the scope of a CRM implementation must
be broadened from “Is the system installed and turned on?” to “Has the new
behavior that we envisioned as result of new system been adopted and become the
norm, and are we getting the expected business results?<span style="mso-spacerun: yes;"> </span>If not, why not!”<span style="mso-spacerun: yes;"> </span>As the capabilities of an organization mature
the disciplines of Project Management and Change Management merge into a single
project plan, let’s call it a program.<span style="mso-spacerun: yes;">
</span>So going forward in addition to the usual questions about objectives,
functionality and funding, sales leaders anticipating a CRM implementation (or
major upgrade/enhancement) should ask themselves the following “What changes in
the way we sell and what resulting changes in the behavior of my sales teams,
and myself, will be required to achieve my goal?<span style="mso-spacerun: yes;"> </span>Based on our organization’s ability to adopt business
change how much can we reasonably expect to introduce successfully?<span style="mso-spacerun: yes;"> </span>What do I have to do to ensure my sales
people and others adopt the changes?<span style="mso-spacerun: yes;"> </span>How
will I track progress in this change?<span style="mso-spacerun: yes;"> </span>How
long will it take for the new behavior to become the norm?<span style="mso-spacerun: yes;"> </span>What is my role and that of my sales managers
in making this happen?<span style="mso-spacerun: yes;"> </span>How much of my
personal time should I be engaged in this?”<span style="mso-spacerun: yes;">
</span>Steps need to be included in the overall project/program plan to make
sure that these questions are addressed and appropriate actions taken to ensure
the expected business goals of the program are realistic, achievable, and achieved.<o:p></o:p></span></span></div>
<span style="font-size: large;"><br /></span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-family: Calibri;"><span style="font-size: large;">This Discussion started with the expressed frustration that people see
a CRM implementation as easy as downloading an app to their phones.<span style="mso-spacerun: yes;"> </span>The consensus seems to be that installing the
application is relatively straightforward, technical in nature, accomplished by
in-house staff and/or service-for-hire people. <span style="mso-spacerun: yes;"> </span>The major challenge for the overall CRM program
is getting the organization to successfully adopt the required change in
business process to yield the envisioned business results.<span style="mso-spacerun: yes;"> </span>The bottom-line: if you are a sales executive
anticipating the implementation of a new CRM then you must carefully assess
your organization’s ability to adopt change, be very pragmatic about what
change you introduce, and doggedly nurture its progress to a successful
outcome!<o:p></o:p></span></span></div>
<span style="font-size: large;"><br /></span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-family: Calibri;"><span style="font-size: large;">Along the way in this Discussion there were two interesting and related
Sidebars that came up.<span style="mso-spacerun: yes;"> </span>These have an
impact on a successful CRM implementation and must be considered. <o:p></o:p></span></span></div>
<br />
<ul><span style="font-size: large;">
</span>
<li><span style="font-size: large;">
<span style="font-family: Calibri;">First one reminded everyone that CRM is really about Relationship
Management, and that people need to think beyond the initial simple motivation
for CRM of tracking sales opportunities, leads, or contacts.<span style="mso-spacerun: yes;"> </span>In the broader context mainstream CRM systems
capabilities are intended for a go much beyond these few single things.<span style="mso-spacerun: yes;"> </span>They provide the capability to manage the
relations between these and many other items including accounts, products,
competitors, participants in sales pursuits; they support relationships over
the entire lifecycle of business relationship with a client from sales to after
sales service and support.<span style="mso-spacerun: yes;"> </span>They become
true corporate data repositories relied upon by others beyond Sales.<span style="mso-spacerun: yes;"> </span>As Kerri eloquently defined “single elements
converging within strategically positioned multiple dimensions”. </span></span></li>
<span style="font-size: large;">
</span></ul>
<span style="font-family: Calibri; font-size: large;"> </span><br />
<ul><span style="font-size: large;">
</span>
<li><span style="font-family: Calibri;"><span style="font-size: large;">The second dealt with the preponderance of electronic communications routed
through email and the obstacle that this poses to the advancement of CRM
success.<span style="mso-spacerun: yes;"> </span>Essentially if all electronic
communications is routed through email (primarily a point-to-point media) the
richness of the messages may never be associated with the appropriate objects
within the CRM and hence may not be available to all participants who need to
know, now and at some later date.<span style="mso-spacerun: yes;"> </span>Email has
a long history of use and is the de facto “norm” for electronic communications.<span style="mso-spacerun: yes;"> </span>However, email has its limitations!<span style="mso-spacerun: yes;"> </span>It is not always inclusive (i.e., key people
left out), typically does not include the history, and was not stored with the
Lead, Opportunity or Account records making it hard for remotely located team
members to stay current.<span style="mso-spacerun: yes;"> </span>In my
experience a sales pursuit runs on information.<span style="mso-spacerun: yes;">
</span>The sales person starts with little information and works toward
developing more, a lot more.<span style="mso-spacerun: yes;"> </span>Maybe a
deal is won when you have perfect information!<span style="mso-spacerun: yes;">
</span>Consider the following scenario.<span style="mso-spacerun: yes;"> </span>Today’s
selling of complex solutions involves virtual teams with several members often
remote from each other.<span style="mso-spacerun: yes;"> </span>A pursuit (to
win) may take several months to execute.<span style="mso-spacerun: yes;">
</span>The same participants often participate in other parallel virtual teams
with different participants. <span style="mso-spacerun: yes;"> </span>To get to
“perfect information” it is incumbent upon all participants in a pursuit to
contribute information and to follow and use what others have contributed to
advance the sale.<span style="mso-spacerun: yes;"> </span>(BTW: the sales
business process should define what information should be available at what stage
in the pursuit, along with some management rules about what to do or not do if
the information is not available).<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>It is usually incumbent upon the sales person
to take the lead in ensuring that this communication about information
pertinent to the pursuit is taking place.<span style="mso-spacerun: yes;">
</span>The sales person, and other participants, all have high demands upon
their time.<span style="mso-spacerun: yes;"> </span>They wish to communicate
quickly and efficiently.<span style="mso-spacerun: yes;"> </span>To do so they
turn to the most ubiquitous means available – their old friend email sent from
their phone or pad just after leaving the client office!<span style="mso-spacerun: yes;"> </span>So in this scenario part of the constraint to
CRM adoption was the expectation that all participants would communicate
through the CRM which was perceived by Sales as more time consuming and perhaps
less timely way of communicating.<span style="mso-spacerun: yes;"> </span>This
had less to do with change management and more about a short term deficiency in
the technical solutions available.<span style="mso-spacerun: yes;"> </span>Time
is money to sales people!<span style="mso-spacerun: yes;"> </span>The last time
I tried this level of integration with ubiquitous email and CRM solutions the
result was pretty clunky and largely rejected by participants.<span style="mso-spacerun: yes;"> </span>When this perception is overcome one less
impediment to CRM success will be removed.<span style="mso-spacerun: yes;">
</span>As Ted Schadler said in the recent webinar, and I paraphrase, “People
adopt when new is significantly better than old!”<o:p></o:p></span></span></li>
</ul>Dean Sharratthttp://www.blogger.com/profile/14152718936151850567noreply@blogger.com2tag:blogger.com,1999:blog-6485043963306774591.post-87219266351004722012-05-23T15:19:00.000-07:002012-08-01T10:55:10.676-07:00Other than making quota, what metrics do you use to measure the performance of your sales teams and individual sales makers?<span style="font-size: large;"></span><br />
<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<span style="font-family: Calibri;"><span style="font-size: large;">Recently in a LinkedIn Group discussion <strong><span lang="EN" style="font-family: "Calibri","sans-serif"; mso-ansi-language: EN; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-latin;"><a href="http://www.linkedin.com/groups/Other-than-making-quota-what-71732.S.105599589?qid=481c5401-4ed3-48a0-bb28-49d25ac150c2&trk=group_most_popular-0-b-ttl&goback=%2Egmp_71732" target="_blank"><span style="color: blue;">GregDownum</span></a> </span></strong>asked the above question<b>.<span style="mso-spacerun: yes;"> </span></b>I posted the following Comment<o:p></o:p></span></span></div>
<span style="font-size: large;"><br /></span><br />
<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<span style="font-family: Calibri;"><span style="font-size: large;">Great wide-ranging contributions here!<span style="mso-spacerun: yes;"> </span>The question asked “… <span lang="EN" style="mso-ansi-language: EN;">what metrics do you use to measure the performance
of your sales teams and individual sales makers?” <span style="mso-spacerun: yes;"> </span>Have used notion that metrics are a bit higher
level and abstract than the actual things to be measured within that metric.<span style="mso-spacerun: yes;"> </span>Since these are “metrics in addition to win
performance” they should reflect whether the team or individual has positioned themselves
for on-going, regular success (not one-off or irregular).<o:p></o:p></span></span></span></div>
<span style="font-size: large;"><br /></span><br />
<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<span style="font-family: Calibri;"><span style="font-size: large;">In addition to those already suggested, have added following
metrics/measures, some may overlap with those of other Contributors.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>A manager
would likely look at some on weekly basis, others on monthly or quarterly basis,
some on unit level, some by individual sales person, and depending upon level
in sales organization manager may also slice and dice by organization structure.<span style="mso-spacerun: yes;"> </span>Some of these are self-explanatory; some may
require a longer explanation.</span></span></div>
<span style="font-size: large;"></span><br />
<span style="font-size: large;"><a name='more'></a></span><span style="font-size: large;"><br /></span><br />
<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 0.5in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-size: large;"><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;">
</span></span></span><span style="font-family: Calibri;">Sales Funnel (Pipeline) Health<o:p></o:p></span></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l0 level2 lfo1; text-indent: -0.25in;">
<span style="font-size: large;"><span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;">
</span></span></span><span style="font-family: Calibri;">Sales Funnel by Stage - $ value of deals (could
be both total and average); Average total age of deals; Average number of days
a Deals have been in same Stage.<o:p></o:p></span></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l0 level2 lfo1; text-indent: -0.25in;">
<span style="font-size: large;"><span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;">
</span></span></span><span style="font-family: Calibri;">Velocity of deals overall and by Stage (with <span style="mso-spacerun: yes;"> </span>“expected” velocity if established)<o:p></o:p></span></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l0 level2 lfo1; text-indent: -0.25in;">
<span style="font-size: large;"><span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;">
</span></span></span><span style="font-family: Calibri;">Funnel by Salesperson, showing $value by Stage<o:p></o:p></span></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l0 level2 lfo1; text-indent: -0.25in;">
<span style="font-size: large;"><span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;">
</span></span></span><span style="font-family: Calibri;">Funnel by Stage, showing total $value and %
contribution by salesperson<o:p></o:p></span></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l0 level2 lfo1; text-indent: -0.25in;">
<span style="font-size: large;"><span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;">
</span></span></span><span style="font-family: Calibri;">Funnel by product/service offering, segmented by
Stage<o:p></o:p></span></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l0 level2 lfo1; text-indent: -0.25in;">
<span style="font-size: large;"><span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;">
</span></span></span><span style="font-family: Calibri;">Funnel by Stage segmented by Sales Forecast
Category<o:p></o:p></span></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l0 level2 lfo1; text-indent: -0.25in;">
<span style="font-size: large;"><span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;">
</span></span></span><span style="font-family: Calibri;">Funnel $Value Change (by Stage) over Previous
Months <o:p></o:p></span></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l0 level2 lfo1; text-indent: -0.25in;">
<span style="font-size: large;"><span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;">
</span></span></span><span style="font-family: Calibri;">Stalled Deals by Stage – both in total $value
and count<o:p></o:p></span></span></div>
<span style="font-size: large;"><br /></span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 0.5in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-size: large;"><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;">
</span></span></span><span style="font-family: Calibri;">Sales Funnel (Pipeline) Performance<o:p></o:p></span></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l0 level2 lfo1; text-indent: -0.25in;">
<span style="font-size: large;"><span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;">
</span></span></span><span style="font-family: Calibri;">Total $value by Won/Lost/Cancelled Deals by
month vs average deal velocity<o:p></o:p></span></span></div>
<span style="font-size: large;"><br /></span><br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 0.5in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-size: large;"><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;">
</span></span></span><span style="font-family: Calibri;">Sales Process Compliance<o:p></o:p></span></span></div>
<br />
<div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 10pt 1in; mso-add-space: auto; mso-list: l0 level2 lfo1; text-indent: -0.25in;">
<span style="font-size: large;"><span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font-family: "Times New Roman"; font-size-adjust: none; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;">
</span></span></span><span style="font-family: Calibri;">Stage where deal initially entered into Funnel<o:p></o:p></span></span></div>
<span style="font-size: large;"><br /></span><br />
<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<span style="font-family: Calibri; font-size: large;">These are ideal candidates for a Management Dashboard –
charts and tables with drill down capability.<span style="mso-spacerun: yes;">
</span>Oh, and one last caveat: all this assumes that a sales process is in
place with well-defined management rules, and compliance is not an issue!! </span></div>
<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<span style="font-size: large;"><br /></span></div>
<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<span style="font-family: Calibri; font-size: large;">One last thought on metrics and measures: what sales organizations look at should also change over time in response to their Change Management objectives. Start simple, get to level of performance, then based on lessons learned and next plateau of Change introduce additional metrics/measures. Repeat cycle a few times. Then at maturity settle down on the key metrics/measures and eliminate others.</span></div>
Dean Sharratthttp://www.blogger.com/profile/14152718936151850567noreply@blogger.com0tag:blogger.com,1999:blog-6485043963306774591.post-3118815338516811572012-03-06T09:57:00.001-07:002012-07-31T14:23:12.084-07:00Impact of Challenger Sale on Marketing and Sales Roles<span style="font-family: Calibri;"><em>Updated April, 2012</em></span><br />
<h2>
<span style="font-family: inherit;">Background:</span></h2>
<span style="font-family: Calibri;">This Blog entry is the continuation of a discussion started in the Focus discussion site in response to a question that I posed "</span><span style="font-family: Times New Roman;">Can marketing deliver on its contribution to Challenger Sale success?". </span><span style="font-family: Times, "Times New Roman", serif;"> </span><br />
<span style="font-family: Times, "Times New Roman", serif;"></span><br />
<span style="font-family: Times, "Times New Roman", serif;"></span><br />
<span style="font-family: Times, "Times New Roman", serif;"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-hansi-font-family: Calibri;"><span style="font-family: Calibri;">The initial discussion can be found at:</span></span></div>
</span><br />
<span style="color: blue;"> </span><a href="http://www.focus.com/questions/can-marketing-deliver-its-contribution-challenger-sale/"><span style="color: blue;">http://www.focus.com/questions/can-marketing-deliver-its-contribution-challenger-sale/</span></a><br />
<br />
<h2>
... Continued Discussion </h2>
<span style="font-family: Calibri;">Dave, this <u>is</u>
a great topic!<span style="mso-spacerun: yes;"> </span>I agree with your overall
assessment that Marketing will become more tactical, and Sales more
strategic.<span style="mso-spacerun: yes;"> </span>I want to answer your
question in more detail with the aid of a high-level review of the business
processes and participants involved!<span style="mso-spacerun: yes;"> </span>However,
due to limitations on response length in this forum I will describe five
scenarios based on these processes.<span style="mso-spacerun: yes;"> </span>[BTW
I really feel the lack of charts and graphs in this Discussion capability.<span style="mso-spacerun: yes;"> </span>But here goes, and bear in mind that my
thinking is biased by my complex consulting services solution background].</span>
<br />
<br />
<h2 class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: inherit; font-size: x-large;">Major Functions of Interest</span></h2>
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<br />
<span style="font-family: Calibri;">Let’s focus our
discussion on the processes that lead up to a sale within the major business functions
of: <strong><span style="color: red;">Marketing</span></strong>, <strong><span style="color: red;">Sales</span></strong>, and <strong><span style="color: red;">Product</span></strong>.<span style="mso-spacerun: yes;">
</span>Marketing, to over simplify, deals with the 5 P’s and 7 C’s to define
the “What” to sell, “To Whom”, and “Why” prospects should be motivated to buy.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>Sales
focus on identifying sales opportunities and creating the actual sale.<span style="mso-spacerun: yes;"> </span>Product defines/develops the unique qualities
of their company’s solution (with Marketing), supports the selling process, and
post-sales delivers the actual “product” to client.<span style="mso-spacerun: yes;"> </span>In a Consulting Services organization this Product
group is generally called Practice and performs two distinct roles: pre-sales support, and delivery of sold solution.<span style="mso-spacerun: yes;"> </span>For
sake of this discussion let’s refer to the pre-sales activity as <strong><span style="color: red;">Sales Support</span></strong>.<span style="mso-spacerun: yes;"> T</span>his
pre-sales work role is really part of the sales function, performed by people from Product function.<o:p></o:p></span></div>
<br />
<a name='more'></a><br />
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<br />
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<h2 class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: inherit;"><span style="font-size: x-large;">Scenarios on Interaction of Marketing and Sales in Challenger Sale
Approach<o:p></o:p></span></span></h2>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: Calibri;">I like
scenarios as a way to further describe the expected interaction of roles as
they perform within a defined business model.<span style="mso-spacerun: yes;">
</span>These can be detailed out deeply incorporating how roles interact with
other roles and their supporting technologies.<span style="mso-spacerun: yes;">
</span>There are some very capable technologies available.<span style="mso-spacerun: yes;"> </span>The interactions in the following Scenarios
are based on the business processes described in Business Model below.<span style="mso-spacerun: yes;"> </span>These Scenarios describe situations where
Challenger Sale approach creates greater interaction for above three roles. <span style="mso-spacerun: yes;"> </span>All Scenarios assume that the products/services
have unique insights for clients (“strategic product/service”), and client is
part of a targeted industry or function (“strategic account”).<o:p></o:p></span></div>
<br />
<h3 class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: inherit;">Scenario 1.
Prospective Client Calls Company</span></h3>
<h3 class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: inherit;"><o:p></o:p></span> </h3>
<span style="font-family: Calibri;">Prospect is
researching ways to improve her business, visits company website (found on own
or referenced to by colleague).<span style="mso-spacerun: yes;"> </span>Reads
material and Case Studies, impressed by message, calls 800 number to speak with
one of company’s “Product/Service Experts” (PE) located in company’s Lead
Generation Group.<span style="mso-spacerun: yes;"> </span>Prospect and PE talks
at length.<span style="mso-spacerun: yes;"> </span>PE asks questions to develop
a profile of prospect and situation and “fit” for company’s
product/service.<span style="mso-spacerun: yes;"> </span>PE is developing the
sales situation, may suggest alternatives.<span style="mso-spacerun: yes;">
</span>This call may end with Prospect wanting time to review the information
discussed (or even sent), in which case PE arranges for a follow up call.<span style="mso-spacerun: yes;"> </span>When Prospect is sufficiently engaged and
“qualified” (defined criteria) PE would introduce Prospect to Salesperson
assigned to this account.<span style="mso-spacerun: yes;"> </span>For this
outcome PE documents situation sends note to Salesperson, calls to discuss.<o:p></o:p></span><br />
<br />
<h3 class="MsoNormal" style="margin: 0in 0in 0pt;">
<o:p> </o:p><span style="font-family: inherit;">Scenario 2. Targeted Product/Service
Campaign<o:p></o:p></span></h3>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: Calibri;">Marketing
develops and runs a campaign for a specific “strategic product/service”,
targeted at specific list of “strategic” companies.<span style="mso-spacerun: yes;"> </span>Sales and Product/Practice participate in
development.<span style="mso-spacerun: yes;"> </span>PEs in Lead Generation
begin calling on list contacts within target companies.<span style="mso-spacerun: yes;"> </span>Contacts would not be the senior decision
makers (Salesperson needs to make this call with well developed “Tailored /Teaching”
material available).<span style="mso-spacerun: yes;"> </span>As in S-1 PE
develops the situation with Prospect and abandons, schedules follow up call(s),
or introduces Account Salesperson if meets qualification criteria.<o:p></o:p></span></div>
<br />
<h3 class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: inherit;">Scenario 3. Sales Engages Marketing and
Product/Practice in Developing Account Plan<o:p></o:p></span></h3>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: Calibri;">Salesperson
is either developing or updating Account Plan for account.<span style="mso-spacerun: yes;"> </span>Salesperson engages Marketing, Sales Support, and
Product/Practice to assist in effort, including developing or updating key
background information on the account, identifying potential areas within
account for company’s strategic products/services.<span style="mso-spacerun: yes;"> </span>Marketing works with Salesperson to confirm understanding
of why this account would be a “good fit” for company’s strategic products/services.<span style="mso-spacerun: yes;"> </span>Upon some evaluation team may concur that
account is not a good fit for company’s strategic products/services and
abandon.<o:p></o:p></span></div>
<br />
<h3 class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: inherit;">Scenario 4. Salesperson Engages Lead Gen and
Sales Support with Active Opportunity<o:p></o:p></span></h3>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: Calibri;">One of the
characteristics of Challenger Sale approach is need to build strong support for
solution from within broad client group (i.e., many people, several departments).<span style="mso-spacerun: yes;"> </span>Salesperson has identified a qualified
opportunity within assigned account (updated Account Plan in place).<span style="mso-spacerun: yes;"> </span>For assistance in developing required
information and support at identified mid-level managers within account
Salesperson engages PE’s in Lead Generation.<span style="mso-spacerun: yes;">
</span>Salesperson and PE discuss and develop specific approach.<span style="mso-spacerun: yes;"> </span>PE makes calls, develops information and
support, documents and periodically briefs Salesperson on progress.<span style="mso-spacerun: yes;"> Sales Support </span>assists Salesperson in
developing specific solution to address Prospect’s business need, and in
developing the business case to support Prospects’ decision making.<span style="mso-spacerun: yes;"> Sales Support </span>meets with Prospect’s
technical team to review solution and gain support for solution.<span style="mso-spacerun: yes;"> </span>Salesperson with PE takes key messages around
solution and supporting business case to client prospects to gain support and
buy-in for solution.<span style="mso-spacerun: yes;"> </span>With support of
overall prospect community Salesperson presents solution, key messages, and
supporting business case to client decision makers.<o:p></o:p></span></div>
<br />
<h3 class="MsoNormal" style="margin: 0in 0in 0pt;">
Scenario 5.
Salesperson Engages Lead Gen with Dormant Opportunity<o:p></o:p></h3>
<br />
<span style="font-family: Calibri;">Salesperson
(perhaps with PE support) has been developing a sales opportunity.<span style="mso-spacerun: yes;"> </span>Unfortunately Prospect’s situation has
changed and has deferred making a decision on opportunity.<span style="mso-spacerun: yes;"> </span>Salesperson engages Lead Gen to assist in
maintaining contact with Prospect periodically to monitor if Prospect’s
situation has changed and opportunity once again valid.<o:p></o:p></span><br />
<br />
<br />
<h3 class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-size: 14pt;"><span style="font-family: inherit;">Additional
Scenarios (Update)<o:p></o:p></span></span></h3>
<br />
<span style="font-family: Calibri;">My earlier Scenarios presumptuously prescribed how I saw Marketing and
Sales interacting in the Challenger Sale world going forward.<span style="mso-spacerun: yes;"> </span>But, as we know life is not so simple and in
the heat of battle people are often called upon to make decisions that may or
may not be consistent with their game plan.<span style="mso-spacerun: yes;">
</span>The following two additional Scenarios might illustrate such decisions –
what action would you take?<o:p></o:p></span><br />
<br />
<h3>
Scenario 6. Completing Delivery of a Strategic Sale, Client Request Proposal on New</h3>
<br />
<span style="font-family: Calibri;">You recently sold a strategic product/service implementation at a
strategic client.<span style="mso-spacerun: yes;"> </span>Delivery of the
product/service has gone well, it is wrapping up.<span style="mso-spacerun: yes;"> </span>Client is impressed with what you have
accomplished.<span style="mso-spacerun: yes;"> </span>Following a discussion
about a different business problem and how you might address it with another
product/service that your company offers.<span style="mso-spacerun: yes;">
</span>Client likes the approach and asks you to provide a pricing proposal.<span style="mso-spacerun: yes;"> </span>Client has told you that she have not asked
others to bid (i.e., sole source).<span style="mso-spacerun: yes;">
</span>However, your company has not classified this product/service as
strategic.<span style="mso-spacerun: yes;"> </span>What action would you take
and why?<o:p></o:p></span><br />
<br />
<h3>
Scenario 7. Same as Scenario 6, but Now It’s Competitive!</h3>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-family: Calibri;">Same set-up as in Scenario 6, however client advises you that she has
engaged several other companies to bid a solution (with pricing) to address her
business need.<span style="mso-spacerun: yes;"> </span>What action would you
take and why?<o:p></o:p></span></div>
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<br />
<br />
<h2 class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: inherit;"><span style="font-size: x-large;">Business Model Describing Business Processes Leading to “Sale”<o:p></o:p></span></span></h2>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: Calibri;">The
following are the areas of our business model which could be impacted by the
Challenger Sale thinking; some more so than others.<span style="mso-spacerun: yes;"> </span>The simple nomenclature used for level of
role participation includes: Lead – role is responsible for achieving results
of the process (some might call this “accountable” – but basically if you have
the Lead you are expected to produce results!).<span style="mso-spacerun: yes;">
</span>Participant –role participates in process to produce deliverables that
lead to successful outcomes.<span style="mso-spacerun: yes;"> </span>Input – roles
provide input to the process, could be ideas, customer experience, data,
requirements, and reviews of plans or documents.<span style="mso-spacerun: yes;"> </span>This is high level but should be sufficient
for this discussion.<o:p></o:p></span></div>
<br />
<br />
<h3 class="MsoNormal" style="margin: 0in 0in 0pt;">
Business Strategy<o:p></o:p></h3>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: Calibri;">As you
mentioned earlier Dave, to make the Challenger Sale work the entire
organization has to commit to successfully implementing this approach as a
corporate strategy.<span style="mso-spacerun: yes;"> </span>This will require
that each of the major roles start doing some new things, and let go of some things
they are currently doing (example - stop selling to accounts that are not in
the profile of a “strategic account” (defined later).<span style="mso-spacerun: yes;"> </span>This will be one of the areas of greatest
focus on behavioral change for all participants.</span></div>
<div class="MsoNormal" style="margin: 6pt 0in 0pt 0.25in;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: Calibri;">Lead
- Executive Management<span style="mso-spacerun: yes;"> </span>Participants -
Marketing, Sales, and Sales Support</span></i></div>
<br />
<br />
<br />
<h3 class="MsoNormal" style="margin: 0in 0in 0pt;">
Managing Solution Definition <span style="font-size: small;">(including Sales Messaging, Sales
Collateral, Case Studies, White Papers and References)</span> <o:p></o:p></h3>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: Calibri;">The big
effort here is to: 1. Define those unique business insights that result from
implementing company’s product/service, and identify specifically what is
unique about the product/service that creates these results (let’s call these
“strategic products”).<span style="mso-spacerun: yes;"> </span>As authors point
out, this is very hard work but once completed other decisions in the
subsequent business processes should fall into place. <span style="mso-spacerun: yes;"> </span>For example, if the particular product/service
is industry focused then decisions about defining sales territories, assigning
sales persons to territories, and then defining key accounts becomes much
clearer.<span style="mso-spacerun: yes;"> </span>2. Rework marketing materials
to lead to company’s solution, not all about company’s solution, and speak the
language of prospects business.<span style="mso-spacerun: yes;"> </span>This is both
a major focus and challenge for Marketing and the other Participants.</span></div>
<div class="MsoNormal" style="margin: 6pt 0in 0pt 0.25in;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: Calibri;">Lead
– Marketing<span style="mso-spacerun: yes;"> </span>Participant – Product/Practice Input
- Sales, Sales Support<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></i></div>
<br />
<br />
<br />
<h3 class="MsoNormal" style="margin: 0in 0in 0pt;">
Managing Brand Awareness and Development; <o:p></o:p></h3>
<br />
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: Calibri;">A complexity
comes to play when you consider that most organizations could have upwards of
10 to 15 such products/services, some may be industry oriented others may be
function oriented!<span style="mso-spacerun: yes;"> </span>I think that this
sends a confusing message to prospective clients.<span style="mso-spacerun: yes;"> </span>This is an issue for discussion by people
with expertise in Brand Management.</span></div>
<div class="MsoNormal" style="margin: 6pt 0in 0pt 0.25in;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: Calibri;">Lead
– Marketing<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>Input – Sales, Product/Practice<o:p></o:p></span></i></div>
<br />
<br />
<br />
<h3 class="MsoNormal" style="margin: 0in 0in 0pt;">
Managing Alliance and Partner Programs</h3>
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<br /></div>
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<span style="font-family: Calibri;">If insights/compelling
reason for company product or service are dependent upon or enhanced by another
organization’s products/services than Alliance or Partner Programs are very
important.<span style="mso-spacerun: yes;"> </span>Marketing would be very
dependent upon developing and nourishing such successful programs to deliver on
their promise to the company.</span></div>
<div class="MsoNormal" style="margin: 6pt 0in 0pt 0.25in;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: Calibri;">Lead
– Marketing<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>Participant – Product/Practice <span style="mso-spacerun: yes;"> </span>Input - Sales, Sales Support<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></i></div>
<br />
<br />
<br />
<h3 class="MsoNormal" style="margin: 0in 0in 0pt;">
Managing Campaign Development and Execution<o:p></o:p></h3>
<br />
<span style="font-family: Calibri;">Campaigns
should be driven from perspective of product/service orientation.<span style="mso-spacerun: yes;"> </span>Example, if compelling reasons/insights are
industry focused then Campaigns should run along industry lines.<span style="mso-spacerun: yes;"> </span>Marketing would execute campaigns for
strategic products/services to drive quality leads to Sales.</span><br />
<div class="MsoNormal" style="margin: 6pt 0in 0pt 0.25in;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: Calibri;">Lead
– Marketing<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>Participant – Product/Practice<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>Input
- Sales, Sales Support<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></i></div>
<br />
<br />
<br />
<h3 class="MsoNormal" style="margin: 0in 0in 0pt;">
Managing Sales Territories<o:p></o:p></h3>
<br />
<span style="font-family: Calibri;">Sales
Territory development and assignment should follow product /service orientation.<span style="mso-spacerun: yes;"> </span>Example, if compelling reasons/insights are
specific to Electric Power Utility Industry then would not expect to see Banks
or Manufacturing companies in the territories.<span style="mso-spacerun: yes;">
</span>This should roll down to the salesperson assignment decision.<span style="mso-spacerun: yes;"> </span>Assigning a salesperson with great banking
credentials in this example would not be my first choice.<span style="mso-spacerun: yes;"> </span>Territory development could be a challenge for
Sales People and first line Sales Managers who historically have felt more
comfort in having a huge territory, full of “potential”!<span style="mso-spacerun: yes;"> </span>This is where Marketing would have to refocus
Sales back to the corporate strategy – focus on those accounts where you have
proven unique strengths.<span style="mso-spacerun: yes;"> </span>A complexity in
Managing Sales Territories can arise for companies who have many
products/services where some are industry oriented, and some are function
oriented.<span style="mso-spacerun: yes;"> </span>Can one salesperson assigned
to a specific account handle both; does it weaken the salesperson’s credibility
with clients to sell both; and should two or more reps be assigned along
product/services lines?<span style="mso-spacerun: yes;"> </span>I have seen all
forms over the years. </span><br />
<div class="MsoNormal" style="margin: 6pt 0in 0pt 0.25in;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: Calibri;">Lead
– Sales <span style="mso-spacerun: yes;"> </span>Participant – Marketing<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>Input
- Product/Practice, Sales Support<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></i></div>
<br />
<br />
<br />
<h3 class="MsoNormal" style="margin: 0in 0in 0pt;">
Managing Accounts (and Contacts)<o:p></o:p></h3>
<br />
<span style="font-family: Calibri;">Accounts are
assigned to Sales Territories based on logic including account’s industry,
whether existing or new account, perceived potential for on-going and new
business, and consistent with the overall business strategy – is this account
likely to be receptive to the insights/compelling reasons that we can offer.<span style="mso-spacerun: yes;"> </span>(For this discussion refer to such as
strategic accounts).<span style="mso-spacerun: yes;"> </span>One of the most
important deliverable from this process is developing and executing a plan for
the account (“Account Plan”).<span style="mso-spacerun: yes;"> </span>Marketing
and Product/Service people who would participate in developing and executing
Account Plans are scarce resources.<span style="mso-spacerun: yes;"> </span>They
would want to focus their time and efforts only on strategic accounts.<span style="mso-spacerun: yes;"> </span>Sales people have been more inclined to chase
accounts of doubtful potential.<span style="mso-spacerun: yes;"> </span>[A
friend of mine observed that while salespeople had a clean plan for the road
ahead, but they chased every jackrabbit that crosses the road in front of
them!]<span style="mso-spacerun: yes;"> </span>Hence a bit of good constructive tension
between the Account Team participants!</span><br />
<div class="MsoNormal" style="margin: 6pt 0in 0pt 0.25in;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: Calibri;">Lead
– Sales <span style="mso-spacerun: yes;"> </span>Participant – Marketing, Sales Support<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> Input: </span>Product/Practice<o:p></o:p></span></i></div>
<br />
<br />
<br />
<h3 class="MsoNormal" style="margin: 0in 0in 0pt;">
Managing Sales Leads <o:p></o:p></h3>
<br />
<span style="font-family: Calibri;">This process
deals with generating sales leads, maturing Leads, and when they meet an agreed
upon criteria passing them over to the assigned salesperson.<span style="mso-spacerun: yes;"> </span>If the salesperson accepts the Lead then it
becomes an Opportunity and salesperson is responsible for its successful
resolution.<span style="mso-spacerun: yes;"> </span>This process should be used
in context of a campaign.<span style="mso-spacerun: yes;"> </span>A campaign
could be across a large group of clients, or focused on a single account driven
by the salesperson’s approved Account Plan.<span style="mso-spacerun: yes;">
</span>Dave, your thought about having a Campaign to keep some contact and
awareness going in a dormant account (or dormant part of large account) is good
example of an account based campaign.<span style="mso-spacerun: yes;">
</span>This capability is a scarce resource in most organizations.<span style="mso-spacerun: yes;"> </span>It needs to be focused on generating quality
leads for those strategic products in strategic accounts.<span style="mso-spacerun: yes;"> </span>All will be watching to ensure that this is
the case.<span style="mso-spacerun: yes;"> </span>[BTW: This is a “red hair
step-child” process that I have seen passed back and forth between the
organizations of Marketing and Sales].<span style="mso-spacerun: yes;"> </span></span><br />
<div class="MsoNormal" style="margin: 6pt 0in 0pt 0.25in;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: Calibri;">Lead
– Marketing<span style="mso-spacerun: yes;"> </span>Participant - Sales<o:p></o:p></span></i></div>
<br />
<br />
<br />
<h3 class="MsoNormal" style="margin: 0in 0in 10pt;">
Managing Single Sales Opportunities<o:p></o:p></h3>
<span style="font-family: Calibri;">Once a Sales
Lead has been accepted by salesperson they take ownership of it as a Sales
Opportunity.<span style="mso-spacerun: yes;"> </span>Salesperson then moves the
Opportunity through company’s defined sales process.<span style="mso-spacerun: yes;"> </span>This is where the salesperson puts the
Challenger Sale skills of “Teach”, “Tailor” and “Take Control” to effective
use.<span style="mso-spacerun: yes;"> </span>Product/Practice people provide
sales support at various points throughout the sales process, with emphasis on
tailoring the message to the particular account.<span style="mso-spacerun: yes;"> </span>They may in fact already have profound
knowledge of the account.<span style="mso-spacerun: yes;"> </span>Product/Practice
will be motivated to spend their time on opportunities for strategic
products/services in strategic accounts.<span style="mso-spacerun: yes;">
</span>This is where sales managers excel by bringing coaching and innovation
to their sales people on key opportunities with priority on strategic product
opportunities in strategic accounts.</span><br />
<div class="MsoNormal" style="margin: 6pt 0in 0pt 0.25in;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: Calibri;">Lead
– Sales <span style="mso-spacerun: yes;"> </span>Participant – Sales Support<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></i></div>
<br />
<br />
<br />
<h3 class="MsoNormal" style="margin: 0in 0in 0pt;">
Managing Sales Forecasts</h3>
<div class="MsoNormal" style="margin: 0in 0in 0pt;">
<br />
<span style="font-family: Calibri;">For this
discussion let’s focus the process that forecasts the date and value of the
expected sale (signed contract or other legally binding commitment on part of
client).<span style="mso-spacerun: yes;"> </span>Let’s leave the revenue flow
forecast from the sale, and from on-going projects to another topic (I started
one a couple of months ago).<span style="mso-spacerun: yes;"> </span>The sales
forecast is primarily a responsibility of Sales.<span style="mso-spacerun: yes;"> </span>However, Product/Service management will want
to “review and comment” since this forecast is likely input to their revenue
forecast process.<span style="mso-spacerun: yes;"> </span>Marketing will want to
periodically review the forecast to observe what is being sold to whom.<span style="mso-spacerun: yes;"> </span>Marketing should become concerned if there are
a high proportion of non-strategic products/services being sold to a large
number of non-strategic accounts.<span style="mso-spacerun: yes;"> </span>But
then … so should Sales Management!</span></div>
<div class="MsoNormal" style="margin: 6pt 0in 0pt 0.25in;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: Calibri;">Lead
– Sales<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>Input – Marketing, Sales Support<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></i></div>
<br />
<br />
<br />
<h3 class="MsoNormal" style="margin: 0in 0in 10pt;">
Sales Training and Development</h3>
<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;"></span></b><span style="font-family: Calibri;">Challenger
model requires greater focus on training and development to effect the desired change.<span style="mso-spacerun: yes;"> </span>Sales have the lead role in delivering the
training and effecting change.<span style="mso-spacerun: yes;"> </span>Marketing
and Product/Practice should participate in the developing of the sales
messaging within training materials.<span style="mso-spacerun: yes;"> </span>Sales Support people who support Opportunity Management should also receive this training.<span style="mso-spacerun: yes;"> </span>A good practice would be to measure the
effectiveness of sales training in some quantifiable way.<span style="mso-spacerun: yes;"> </span>Effective training should move the sales
force over time to be more effective Challenger Salespeople.<span style="mso-spacerun: yes;"> </span>All roles would have an interest in such.</span></div>
<div class="MsoNormal" style="margin: 6pt 0in 0pt 0.25in;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: Calibri;">Lead
– Sales<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>Participant – Product/Practice, Marketing (for
development)<o:p></o:p></span></i></div>Dean Sharratthttp://www.blogger.com/profile/14152718936151850567noreply@blogger.com1tag:blogger.com,1999:blog-6485043963306774591.post-87998496983953599862012-01-20T12:26:00.000-07:002012-07-31T14:18:04.832-07:00Review of “The Challenger Sale”<span style="font-family: Calibri;"><b style="mso-bidi-font-weight: normal;"><span style="font-size: large;">The Challenger Sale:
Taking Control of the Customer Conversation</span></b> by Matthew Dixon and Brent
Adamson, (2011-11-10).<b style="mso-bidi-font-weight: normal;"><span style="font-size: 14pt; line-height: 115%;"><o:p></o:p></span></b></span><br />
<br />
<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<span style="font-family: Calibri;">I really like this book!<span style="mso-spacerun: yes;">
</span>It starts with concepts that I have personally experienced as important to sales success,
and extends authors’ learning, research, and thinking further into a next
generation of solution selling.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: Calibri;"><span style="font-size: large;">Highlights of Book’s
Messages:</span></span></b></div>
<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 0.5in; mso-list: l1 level1 lfo1; text-indent: -0.25in;">
</div>
<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 0.5in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: Calibri;">Authors’ research shows that of five sales
person types the Challenger Type is significantly more successful, and that the
Relationship Builder style that has been widely prompted for years was the least
successful.</span></div>
<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 0.5in; mso-list: l1 level1 lfo1; text-indent: -0.25in;">
</div>
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 0.5in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: Calibri;">Sales success is more about the sales
experience, less about the product or service</span></div>
<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 0.5in; mso-list: l1 level1 lfo1; text-indent: -0.25in;">
</div>
<div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 10pt 0.5in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: Calibri;">The Challenger Salesperson’s attention is focused
on: <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 0.5in; mso-list: l1 level1 lfo1; text-indent: -0.25in;">
</div>
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l1 level2 lfo1; text-indent: -0.25in;">
<span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: Calibri;">“Teaching” their clients something new and
valuable about their most pressing business problems for which salesperson’s
company has a unique and proven solution (product or service).<span style="mso-spacerun: yes;">
</span><o:p></o:p></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l1 level2 lfo1; text-indent: -0.25in;">
<span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: Calibri;">“Tailoring” their solution's uniqueness
to their specific client. <span style="mso-spacerun: yes;"> </span>In the words of
the book’s authors’ - “Help clients think about their business needs in a new
and surprising way by reframing their thinking, convincingly layout the fully
loaded costs of inaction and then providing a credible course of action that
naturally leads back to supplier’s unique solutions.”<o:p></o:p></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l1 level2 lfo1; text-indent: -0.25in;">
<span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: Calibri;">“Taking control” of the entire sales process – Assessing
the situation early and if not positioned for success then abandon, if favorably
positioned then create momentum by motivating their clients to take action in
response to salesperson’s “compelling story”.<span style="mso-spacerun: yes;">
</span>In the terminology of my earlier Blogs referred to by Peter - Get this
business need on the client’s “Gain – Pain” radar and push it far past the Pain
Threshold!<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 0.5in; mso-list: l1 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: Calibri;">An integrated company approach is required to
achieve this breakthrough sales success, including:<o:p></o:p></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l1 level2 lfo1; text-indent: -0.25in;">
<span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: Calibri;"><b style="mso-bidi-font-weight: normal;">Marketing</b>
(perhaps Practice in a Consulting Services organization) to define the uniquely
differentiated and beneficial solution that your company can take to a group of
clients.<span style="mso-spacerun: yes;"> </span>This must address the key
question “Why should these clients buy from us over anyone else?”<o:p></o:p></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l1 level2 lfo1; text-indent: -0.25in;">
<span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: Calibri;"><b style="mso-bidi-font-weight: normal;">Sales
person</b> who must contextualize or tailor this unique solution and its value to
her specific customer business situation.<o:p></o:p></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l1 level2 lfo1; text-indent: -0.25in;">
<span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: Calibri;"><b style="mso-bidi-font-weight: normal;">Sales
Manager</b> who can effectively coach the salesperson thru the sale’s process
and assist by bringing innovative thinking to the client situation.</span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 1in; mso-add-space: auto; mso-list: l1 level2 lfo1; text-indent: -0.25in;">
</div>
<div class="MsoNormal" style="margin: 0in 0in 0pt 0.75in;">
<br /></div>
<div class="MsoNormal" style="margin: 0in 0in 10pt 0.75in;">
<span style="font-family: Calibri;">The authors have done a good job
in in integrating the roles of all the actors including those of the client in
the business model elements of People and Process.</span> </div>
<br />
<a name='more'></a><br />
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 0.5in; mso-list: l1 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-family: Calibri;">Widespread support within the client buyer
organization is required; this is contrary to the old adage about only calling
as high as you can in the client organization, and early.<span style="mso-spacerun: yes;"> </span>In general this is not new as thought leaders
like Miller and Heiman have focused on this for some time.<span style="mso-spacerun: yes;"> </span>What is new here is the reinforcement on the need to sell
bottom-up; tailor your message to each of the different buyer groups in your
client’s organization to obtain widespread support for your eventual meeting proposal
to the senior client buyer(s).<o:p></o:p></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 0.5in; mso-list: l1 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: Calibri;">Provides good practical steps on how to develop
a strong teaching presentation that, in words of authors, will “make customers
feel sort of sick about all the money they’re wasting, or revenue they’re
missing, or risk they’re unknowingly exposed to”.<o:p></o:p></span></div>
<br />
<div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 10pt 0.5in; mso-list: l1 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: Calibri;">Offers a realistic perspective about the amount
of change and time that it may take to successfully internalize within an
organization – This is not a quick fix!<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: Calibri;"><span style="font-size: large;">Some Challenges
Companies May Face in Implementing “The Challenger Sale”:<o:p></o:p></span></span></b></div>
<br />
<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 0.5in; mso-list: l1 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: Calibri;">Defining company’s solution (which you do
better than anyone else), and its values that clearly differentiates it from your
competition – Answering that killer question “Why should our clients buy from
us over anyone else?”<o:p></o:p></span></div>
<br />
<div class="MsoListParagraphCxSpMiddle" style="margin: 0in 0in 0pt 0.5in; mso-list: l2 level1 lfo2; text-indent: -0.25in;">
<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: Calibri;">Moving company’s sales force from product/service
selling to the next level of selling solutions where the salesperson is focused
on tailoring your company’s unique message in order to teach a specific client buyer
to look at their business needs in a new way, and then to motivate the client
buyer to take action to implement your unique solution to achieve a desirable
impact on your client buyer’s business.<o:p></o:p></span></div>
<br />
<div class="MsoListParagraphCxSpLast" style="margin: 0in 0in 10pt 0.5in; mso-list: l2 level1 lfo2; text-indent: -0.25in;">
<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: Calibri;">Refocusing your first line sales managers from primarily
performance managers to true sales process coaches and innovation contributors.<o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: Calibri;"><span style="font-size: large;">Questions for Readers:<o:p></o:p></span></span></b></div>
<br />
<div class="MsoListParagraphCxSpFirst" style="margin: 0in 0in 0pt 0.5in; mso-list: l0 level1 lfo3; text-indent: -0.25in;">
<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: Calibri;">Authors’ reference their research that indicates
that “only 14 percent of companies’ so-called unique benefits were perceived by
customers as both unique and beneficial!<span style="mso-spacerun: yes;">
</span>What is your experience?<span style="mso-spacerun: yes;"> </span>Have you
worked for or with an organization that has been successful in defining their
unique solution and its value to a group of clients that clearly differentiates
this organization from its competitors?<o:p></o:p></span></div>
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</span></span></span><span style="font-family: Calibri;">In today’s internet world of immediate access to
all kinds of data are salespeople really able to bring some truly new insights
to prospective clients?<o:p></o:p></span></div>
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<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: Calibri;">What are your thoughts on sales force
“readiness” today?<span style="mso-spacerun: yes;"> </span>Are the sales leaders
following this today?<span style="mso-spacerun: yes;"> </span>What will it take
to move the “next layer” of sales performers to fully adopt this approach?<o:p></o:p></span></div>Dean Sharratthttp://www.blogger.com/profile/14152718936151850567noreply@blogger.com5tag:blogger.com,1999:blog-6485043963306774591.post-67090958826428586772011-08-31T09:58:00.012-07:002012-07-31T14:18:41.393-07:00Accelerate Deal Through Buying Process by Supporting Buyer to Achieve Buy-In to Change<span style="font-family: Calibri;">I recently participated in a Discussion on “What's the best way to accelerate a deal through the buying process?”. </span><span style="font-family: Calibri;">The challenge for Sales in accomplishing this is twofold:<o:p></o:p></span><br />
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<li> <span style="font-family: Calibri;">Increase velocity of client decision making thru sales cycle</span></li>
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<span style="font-family: Calibri;">Increase conversion rate of sales opportunities</span></div>
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<span style="font-family: Calibri;">I described how as a sales guy I looked for a few key leading indicators to be present that both determined the deal’s velocity and guided my sales approach. These were - does client have need to buy, means to buy, and intent to buy?<span style="mso-spacerun: yes;"> </span>Of these three intent is usually the most troublesome - a manager may have a great business case but if his company does not have the “collective will” to take action his initiative stalls out.<span style="mso-spacerun: yes;"> </span>I posed the question: “Can a salesperson support business owner in building a consensus on action?”<span style="mso-spacerun: yes;"> </span></span></div>
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<a href="http://www.linkedin.com/in/sharondrewmorgen"><span style="color: blue; font-family: Calibri;">Sharon </span></a><a href="http://www.linkedin.com/in/sharondrewmorgen"><span style="color: blue; font-family: Calibri;">Drew Morgen </span></a><span style="font-family: Calibri;">replied that if sales people use a different skill set (facilitation), put on a different hat, and be willing to first help buyers manage the change, then – yes, it is possible to collapse the sales cycle and spend a lot less time doing it.<span style="mso-spacerun: yes;"> </span>Sharon Drew described that only when buyers recognize and manage all of the systems issues that form the status quo, and get requisite buy-in for change from all who will touch or be touched by the solution will they be able to buy – and the time it takes them to do this is the length of the sales cycle.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
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<span style="font-family: Calibri;">I just read Sharon Drew’s new book “</span><a href="http://dirtylittlesecretsbook.com/"><span style="color: cyan; font-family: Calibri;">Dirty Little Secrets</span></a><span style="font-family: Calibri;">” and was quite impressed by the focus on facilitation skills to assist buyers arrive at a buy-in to their proposed change.<span style="mso-spacerun: yes;"> </span>Now I have only read the book and spoken with Sharon a couple of times however I can relate Sharon’s message to my own experiences. Using this new skill set in conjunction with an innovative approach (used in my sales background) can result in further significant break thru in sales performance.<span style="mso-spacerun: yes;"> </span>This approach focuses Buyers on the business outcomes they wish to achieve – a Results Chain.<span style="mso-spacerun: yes;"> </span>This approach could become the structure for the facilitation and the way to document what is surfaced as a result of the questions asked during facilitation.<span style="mso-spacerun: yes;"> </span>This is illustrated in the following presentation.<o:p></o:p></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: black; font-family: Calibri; font-size: 12pt; language: en-US; mso-ascii-font-family: Calibri; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: +mn-cs; mso-bidi-theme-font: minor-bidi; mso-color-index: 1; mso-fareast-font-family: +mn-ea; mso-fareast-theme-font: minor-fareast; mso-font-kerning: 12.0pt; mso-style-textfill-fill-alpha: 100.0%; mso-style-textfill-fill-color: black; mso-style-textfill-fill-themecolor: text1; mso-style-textfill-type: solid;"> “</span><span style="font-family: Calibri; font-size: 12pt; font-weight: bold; language: en-US; mso-ascii-font-family: Calibri; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: +mn-cs; mso-bidi-theme-font: minor-bidi; mso-color-index: 1; mso-fareast-font-family: +mn-ea; mso-fareast-theme-font: minor-fareast; mso-font-kerning: 12.0pt; mso-style-textfill-fill-alpha: 100.0%; mso-style-textfill-fill-color: black; mso-style-textfill-fill-themecolor: text1; mso-style-textfill-type: solid;"><a href="http://funnelprinciple.com/"><span style="color: cyan; font-family: Arial, Helvetica, sans-serif;">TheFunnel Principle</span></a></span><span style="color: black; font-family: Calibri; font-size: 12pt; language: en-US; mso-ascii-font-family: Calibri; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: +mn-cs; mso-bidi-theme-font: minor-bidi; mso-color-index: 1; mso-fareast-font-family: +mn-ea; mso-fareast-theme-font: minor-fareast; mso-font-kerning: 12.0pt; mso-style-textfill-fill-alpha: 100.0%; mso-style-textfill-fill-color: black; mso-style-textfill-fill-themecolor: text1; mso-style-textfill-type: solid;">” <span style="color: #f3f3f3;"><span style="background-color: black;">– <span style="font-family: Arial, Helvetica, sans-serif;">Mark Sellers</span></span></span><span style="mso-spacerun: yes;"> </span></span></span></div>
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<span style="color: black; font-family: Calibri; font-size: 12pt; language: en-US; mso-ascii-font-family: Calibri; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: +mn-cs; mso-bidi-theme-font: minor-bidi; mso-color-index: 1; mso-fareast-font-family: +mn-ea; mso-fareast-theme-font: minor-fareast; mso-font-kerning: 12.0pt; mso-style-textfill-fill-alpha: 100.0%; mso-style-textfill-fill-color: black; mso-style-textfill-fill-themecolor: text1; mso-style-textfill-type: solid;"><span style="mso-spacerun: yes;"><span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: black; font-family: Calibri; font-size: 12pt; language: en-US; mso-ascii-font-family: Calibri; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: +mn-cs; mso-bidi-theme-font: minor-bidi; mso-color-index: 1; mso-fareast-font-family: +mn-ea; mso-fareast-theme-font: minor-fareast; mso-font-kerning: 12.0pt; mso-style-textfill-fill-alpha: 100.0%; mso-style-textfill-fill-color: black; mso-style-textfill-fill-themecolor: text1; mso-style-textfill-type: solid;"> “</span><span style="font-family: Calibri; font-size: 12pt; font-weight: bold; language: en-US; mso-ascii-font-family: Calibri; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: +mn-cs; mso-bidi-theme-font: minor-bidi; mso-color-index: 1; mso-fareast-font-family: +mn-ea; mso-fareast-theme-font: minor-fareast; mso-font-kerning: 12.0pt; mso-style-textfill-fill-alpha: 100.0%; mso-style-textfill-fill-color: black; mso-style-textfill-fill-themecolor: text1; mso-style-textfill-type: solid;"><a href="http://dirtylittlesecretsbook.com/"><span style="color: cyan; font-family: Arial, Helvetica, sans-serif;">DirtyLittle Secrets</span></a></span><span style="color: black; font-family: Calibri; font-size: 12pt; language: en-US; mso-ascii-font-family: Calibri; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: +mn-cs; mso-bidi-theme-font: minor-bidi; mso-color-index: 1; mso-fareast-font-family: +mn-ea; mso-fareast-theme-font: minor-fareast; mso-font-kerning: 12.0pt; mso-style-textfill-fill-alpha: 100.0%; mso-style-textfill-fill-color: black; mso-style-textfill-fill-themecolor: text1; mso-style-textfill-type: solid;">” <span style="color: #f3f3f3;">– <span style="font-family: Arial, Helvetica, sans-serif;">Sharon Drew Morgen</span></span> </span></span></span></span></div>
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<span style="color: black; font-family: Calibri; font-size: 12pt; language: en-US; mso-ascii-font-family: Calibri; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: +mn-cs; mso-bidi-theme-font: minor-bidi; mso-color-index: 1; mso-fareast-font-family: +mn-ea; mso-fareast-theme-font: minor-fareast; mso-font-kerning: 12.0pt; mso-style-textfill-fill-alpha: 100.0%; mso-style-textfill-fill-color: black; mso-style-textfill-fill-themecolor: text1; mso-style-textfill-type: solid;"><span style="mso-spacerun: yes;"><span style="color: black; font-family: Calibri; font-size: 12pt; language: en-US; mso-ascii-font-family: Calibri; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: +mn-cs; mso-bidi-theme-font: minor-bidi; mso-color-index: 1; mso-fareast-font-family: +mn-ea; mso-fareast-theme-font: minor-fareast; mso-font-kerning: 12.0pt; mso-style-textfill-fill-alpha: 100.0%; mso-style-textfill-fill-color: black; mso-style-textfill-fill-themecolor: text1; mso-style-textfill-type: solid;"><span style="color: black; font-family: Calibri; font-size: 12pt; font-weight: bold; language: en-US; mso-ascii-font-family: Calibri; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: +mn-cs; mso-bidi-theme-font: minor-bidi; mso-color-index: 1; mso-fareast-font-family: +mn-ea; mso-fareast-theme-font: minor-fareast; mso-font-kerning: 12.0pt; mso-style-textfill-fill-alpha: 100.0%; mso-style-textfill-fill-color: black; mso-style-textfill-fill-themecolor: text1; mso-style-textfill-type: solid;"> <a href="http://www.fujitsu.com/ca/en/news/publications/books/ip.html"><span style="color: cyan; font-family: Arial, Helvetica, sans-serif;">The Information Paradox</span></a><span style="font-family: Arial, Helvetica, sans-serif;"> </span></span><span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: #f3f3f3; font-family: Arial, Helvetica, sans-serif; language: en-US; mso-ascii-font-family: Calibri; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: +mn-cs; mso-bidi-theme-font: minor-bidi; mso-color-index: 1; mso-fareast-font-family: +mn-ea; mso-fareast-theme-font: minor-fareast; mso-font-kerning: 12.0pt; mso-style-textfill-fill-alpha: 100.0%; mso-style-textfill-fill-color: black; mso-style-textfill-fill-themecolor: text1; mso-style-textfill-type: solid;">– </span><span style="color: black; font-family: Calibri; language: en-US; mso-ascii-font-family: Calibri; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: +mn-cs; mso-bidi-theme-font: minor-bidi; mso-color-index: 1; mso-fareast-font-family: +mn-ea; mso-fareast-theme-font: minor-fareast; mso-font-kerning: 12.0pt; mso-style-textfill-fill-alpha: 100.0%; mso-style-textfill-fill-color: black; mso-style-textfill-fill-themecolor: text1; mso-style-textfill-type: solid;"><span style="color: #f3f3f3; font-family: Arial, Helvetica, sans-serif;">John Thorp</span><span style="mso-spacerun: yes;"> </span></span></span></span></span></span></div>
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<span style="color: black; font-family: Calibri; font-size: 12pt; language: en-US; mso-ascii-font-family: Calibri; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: +mn-cs; mso-bidi-theme-font: minor-bidi; mso-color-index: 1; mso-fareast-font-family: +mn-ea; mso-fareast-theme-font: minor-fareast; mso-font-kerning: 12.0pt; mso-style-textfill-fill-alpha: 100.0%; mso-style-textfill-fill-color: black; mso-style-textfill-fill-themecolor: text1; mso-style-textfill-type: solid;"><span style="mso-spacerun: yes;"><span style="color: black; font-family: Calibri; font-size: 12pt; font-weight: bold; language: en-US; mso-ascii-font-family: Calibri; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: +mn-cs; mso-bidi-theme-font: minor-bidi; mso-color-index: 1; mso-fareast-font-family: +mn-ea; mso-fareast-theme-font: minor-fareast; mso-font-kerning: 12.0pt; mso-style-textfill-fill-alpha: 100.0%; mso-style-textfill-fill-color: black; mso-style-textfill-fill-themecolor: text1; mso-style-textfill-type: solid;"> <a href="http://www.fujitsu.com/us/services/consulting/method/macroscope/resultstat/index.html"><span style="color: cyan; font-family: Arial, Helvetica, sans-serif;">ResultsChain</span></a></span><span style="font-family: Arial, Helvetica, sans-serif;"> <span style="color: #f3f3f3;">– <span style="font-family: Arial, Helvetica, sans-serif;">Fujitsu Consulting </span></span></span><span style="font-family: Calibri; language: en-US; mso-ascii-font-family: Calibri; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: +mn-cs; mso-bidi-theme-font: minor-bidi; mso-color-index: 1; mso-fareast-font-family: +mn-ea; mso-fareast-theme-font: minor-fareast; mso-font-kerning: 12.0pt; mso-style-textfill-fill-alpha: 100.0%; mso-style-textfill-fill-color: black; mso-style-textfill-fill-themecolor: text1; mso-style-textfill-type: solid;"><span style="color: #f3f3f3; font-family: Arial, Helvetica, sans-serif;">Macrosope</span></span><span style="color: black; font-family: Calibri; language: en-US; mso-ascii-font-family: Calibri; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: +mn-cs; mso-bidi-theme-font: minor-bidi; mso-color-index: 1; mso-fareast-font-family: +mn-ea; mso-fareast-theme-font: minor-fareast; mso-font-kerning: 12.0pt; mso-style-textfill-fill-alpha: 100.0%; mso-style-textfill-fill-color: black; mso-style-textfill-fill-themecolor: text1; mso-style-textfill-type: solid;"> </span></span></span></div>
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</div>Dean Sharratthttp://www.blogger.com/profile/14152718936151850567noreply@blogger.com1tag:blogger.com,1999:blog-6485043963306774591.post-51881932144996998562011-05-19T12:26:00.015-07:002012-07-31T14:19:54.019-07:00"The Great Debate" - Part 2 - There is More Than a Single "X" to Manage<div class="MsoNormal" style="margin: 0in 0in 10pt;">
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<b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="font-size: 10pt; line-height: 115%;">(Updated 2011-06-27)</span></i></b><b style="mso-bidi-font-weight: normal;"><span style="font-size: 14pt; line-height: 115%; mso-no-proof: yes;"></span></b></div>
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<span style="font-family: inherit;"><span style="font-family: inherit;"><span style="mso-no-proof: yes;">Recently there was an interesting discussion on the question of “</span><span lang="EN" style="mso-ansi-language: EN;">3X as a targeted sales funnel size?” </span></span><span style="mso-no-proof: yes;"><span style="font-family: inherit;">in Mark Seller’s LinkedIn Discussion Group “Funnel IQ”.<span style="mso-spacerun: yes;"> </span>Several Discussion Group members offered opinions ranging from 2-3X all the way up to 7 and 10X.<span style="mso-spacerun: yes;"> </span>After some modelling using optimistic assumptions I found that this</span> value is surprisingly more likely in the range of 17X!</span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"> [ See </span></span><a href="http://salesopseffectiveness.blogspot.com/2011/05/great-debate-how-big-should-your-funnel.html"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="color: blue; font-family: inherit;">The Great Debate – How Big Should Your Sales Funnel Be?</span></span></a><span style="font-family: inherit;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">]. Through this entire Discussion it became apparent that: </span><span style="mso-no-proof: yes;"><span style="mso-spacerun: yes;"></span></span><span style="font-family: inherit;"> </span></span></div>
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<span style="font-family: Calibri;"><span style="font-family: inherit;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Those sales managers who use 3X as a Funnel health metric are generally referring to the bottom Stages of a Customer Buy-Cycle Sales Funnel.<span style="mso-spacerun: yes;"> </span></span></span></span></div>
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<span style="font-family: Calibri;"><span style="font-family: inherit;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-spacerun: yes;"></span></span></span><span style="font-family: inherit;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;"><span style="font-family: "Times New Roman";"> </span></span></span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">In some situations sales managers may be overlooking the need for their attention on adequate metrics for the upper Stages of their Funnel.<span style="mso-spacerun: yes;"> </span></span></span></span></div>
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<span style="font-family: Calibri;"><span style="font-family: inherit;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-spacerun: yes;"></span></span></span><span style="font-family: inherit;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">There is no single “X” value that can be applied broadly to all organizations; </span>each organization, sales unit, salesperson has their own unique value for “X”!</span></span></div>
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<span style="font-family: Calibri;"><span style="font-family: inherit;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Finally, it is an oversimplification to think in terms of a single metric (“X”) as a measure of Pipeline health, there are other indicators which also need to be monitored as they could impact “X”.</span></span></span></div>
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<a name='more'></a>So, great feedback on this topic!<span style="mso-spacerun: yes;"> </span>It truly is “The Great Debate”!<span style="mso-spacerun: yes;"> </span>The following discussion looks at “X” in the context of the entire sales process, highlights discussion to date on general ways to improve “X” and elapsed time (velocity) through the process, and concludes that there is no universal “X” value that should be applied broadly across every sales organization!<span style="mso-spacerun: yes;"> </span>Each organization, sales unit, salesperson has their own unique value for “X” as well as other Key Indicators which must be monitored to ensure increased sales performance.<span style="mso-spacerun: yes;"> </span>Several suggested Next Steps are offered to identify, track and monitor these.!</div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">Defining “X”</span></b></div>
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There is still quite a variance in the definition of “X”, so let’s examine what “X” could be for an organization, sales unit, even salesperson.<span style="mso-spacerun: yes;"> </span>Looking at this discussion from a process perspective may be illustrative.<span style="mso-spacerun: yes;"> </span>There is an overall sales business process made up of several components that have inputs and outputs, each requires times to complete, participation of people (and other resources), and polices, guidelines to govern the conduct of the overall process.<span style="mso-spacerun: yes;"> </span></div>
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The Sales Funnel is a major component of this process.<span style="mso-spacerun: yes;"> </span>The Funnel can consist of several Stages beginning with recognition of a client business problem and ending with a won opportunity.<span style="mso-spacerun: yes;"> </span>Each Stage has inputs and outputs, and the final major output is likely a won opportunity (e.g., signed contract). <span style="mso-spacerun: yes;"> </span>This process runs continuously throwing off the desired amount of won business to meet weekly, monthly, quarterly business plans.<span style="mso-spacerun: yes;"> </span>Salespersons and managers monitor the Funnel constantly to ensure that there is sufficient “raw material” moving thru to deliver a constant stream of won opportunities.</div>
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In the initial analysis “X<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">” </span>was defined as the total number or value of opportunities (i.e., raw material) in the Funnel (truly a pipeline!) required to drive out a desired won value (e.g., $1mil) on a regular interval (e.g., monthly). <span style="mso-spacerun: yes;"> </span>[X = Total Funnel Value <span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">÷</span> Target for Period]. <span style="mso-spacerun: yes;"> </span>In other words, is the Funnel sufficiently charged to deliver the finished product regularly?<span style="mso-spacerun: yes;"> </span>In reading the Discussion Comments and after watching Joe Galvin’s excellent and informative video presentation (<span style="font-family: "Calibri", "sans-serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">“<a href="http://www.youtube.com/watch?v=nqQWeZ2rwgI#t=26m05s"><span style="color: blue;">Pipeline and Forecasting Analytics” - Joe Galvin - Dreamforce 2010</span></a>) </span>it seems that others are defining “X” from a starting point part way thru the process – at a “qualification gate” perhaps.<span style="mso-spacerun: yes;"> </span>At this point the salesperson has verified that the client has the intent to buy, the means to buy, and the urgency to buy, and the salesperson is well positioned to win the opportunity.<span style="mso-spacerun: yes;"> </span>As was pointed out by one of the other Discussion Members, in a perfect world every opportunity is won and hence “X” becomes 1!<span style="mso-spacerun: yes;"> </span>However life is not so simple, so a general rule of 3X has been used.<span style="mso-spacerun: yes;"> </span>This is an informative measure for a part of the process but does not measure the overall process.<span style="mso-spacerun: yes;"> </span>As an example, Joe’s Stages and Conversion Rates (defined in his slide 28) were input in the simple model developed for the initial discussion – see results below.</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhUEHmWSd9FE7rS4uFPAYr2ZYchAHVYNgWOYLBOPetEfVnIy03WgRcptTRbwnmWTC2hq5RpUr3jTQD03iIS5qlPZ9r-HLA8-aYjqP1tHJCuQvGJYiI8xKP-ZgChAAUbmnvGDIp1-hLlda4z/s1600/2011-05-19+Joe+Galvin+Metrics+in+Ideal+Funnel.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="207" i$="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhUEHmWSd9FE7rS4uFPAYr2ZYchAHVYNgWOYLBOPetEfVnIy03WgRcptTRbwnmWTC2hq5RpUr3jTQD03iIS5qlPZ9r-HLA8-aYjqP1tHJCuQvGJYiI8xKP-ZgChAAUbmnvGDIp1-hLlda4z/s400/2011-05-19+Joe+Galvin+Metrics+in+Ideal+Funnel.png" width="400" /></a></div>
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The result shows that 15 opportunities (of $1mil each) are required in various Stages of the Funnel continuously to drive out $1 mil in won value on a regular basis.<span style="mso-spacerun: yes;"> </span>In this circumstance under these assumptions “X” is 15.<span style="mso-spacerun: yes;"> </span>What each company, sales unit and salesperson is selling, their selling capacity, and where they engage their client’s Buying Process will likely determine a different value for “X” as observed in this Discussion to date.<span style="mso-spacerun: yes;"> </span>More on this point later in this discussion.</div>
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But wait!<span style="mso-spacerun: yes;"> </span>In the above example “X” may even be greater!<span style="mso-spacerun: yes;"> </span>Without understanding the inputs and outputs of the Qualification Stage used in Joe’s example, but in observing the high conversion rate (70%) it is suspected that there may be selling activity going on to present pre-qualified opportunities to this Stage.<span style="mso-spacerun: yes;"> </span>If this is the case then the true value of “X” could be 31!</div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">Managing “X”</span></b></div>
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Wow!<span style="mso-spacerun: yes;"> </span>This number whether 15 or 31 is very large and at the high end as others pointed out unlikely to be sustainable by most salespersons.<span style="mso-spacerun: yes;"> </span>The value in understanding the full workload in the overall process lies in the actions that management takes to mitigate this unmanageable workload and to create an environment where the salesperson and management can be wildly successful.<span style="mso-spacerun: yes;"> </span>Several suggestions came out of the discussion including:</div>
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<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span>Being realistic about your salesperson’s capacity – Joe used as an example a number of 15 opportunities being worked concurrently by a senior salesperson, so clearly 31 is a non-starter.<span style="mso-spacerun: yes;"> </span>Joe’s message was “Less is better!” - salesperson can be more successful with a “manageable” number of opportunities in Funnel, and sales managers have time to coach salespersons to set priority on what to do next.<span style="mso-spacerun: yes;"> </span>All contributing to greater sales success (more wins!).<span style="mso-spacerun: yes;"> </span>Key to this strategy is picking the right few opportunities to pursue.</div>
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<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span>Implementing better ways to qualify opportunities faster to reduce salesperson workload (e.g., wasted time spent chasing opportunities that will never happen) and to improve conversion rates.<span style="mso-spacerun: yes;"> </span>Joe’s message was focus on opportunities where salesperson has an advantage; driven by a validated Qualification Criteria developed for company’s products/services and unique selling proposition.</div>
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<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span>Implementing improved methods to drive high quality leads to salespersons can reduce or all but eliminate “pre-qualify” workload.<span style="mso-spacerun: yes;"> </span>Recent literature reports greater success from improved and close collaboration between Marketing and Sales in areas such as: content of messages, programs, and supporting technologies (e.g., one opportunity, common Funnel).</div>
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<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span>Increasing opportunity velocity (or Peter French’s tag “Decision Velocity”) to increase Funnel throughput.<span style="mso-spacerun: yes;"> </span>Keep in mind that opportunity velocity through the Funnel is a function of both salesperson time and perhaps more importantly Client Buyer Decision Time.<span style="mso-spacerun: yes;"> </span>Unfortunately some sales teams may think going faster means skipping over an important aspect of Client’s decision making and buy-in.<span style="mso-spacerun: yes;"> </span>Salesperson cannot go “faster” than the Client Buyers, but there may be things that salesperson can do to increase the Client’s velocity.<span style="mso-spacerun: yes;"> </span>Velocity will likely have to be monitored on an opportunity by opportunity basis.<span style="mso-spacerun: yes;"> </span>Mark Sellers just started a Discussion<strong><sup><span style="color: blue;"> </span></sup></strong>on this point (“<span lang="EN" style="mso-ansi-language: EN;"><a href="http://www.linkedin.com/groups/Whats-best-way-accelerate-deal-3750692.S.53750163?qid=edbbd6f1-672a-4f11-9050-0bc705e25968&goback=%2Egmp_3750692"><span style="color: blue;">What's the best way to accelerate an opportunity through the buying process?</span></a>”).<span style="mso-spacerun: yes;"> </span>Please refer to this for more insights, or see my Blog for a more detailed discussion on increasing Pipeline Velocity.</span></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">An Over Simplification to Think of a Single, Universal “X”<span style="mso-spacerun: yes;"> </span></span></b></div>
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This Discussion concluded that there is no universal metric (bottom or top) that can be applied across all sales organizations – as Peter said “No Silver Bullet!”<span style="mso-spacerun: yes;"> </span>Not surprising really as each sales organization has its own unique “DNA” driven by several factors including those that contributors to this Discussion mentioned:</div>
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<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span>The capacity of the sales force</div>
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<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span>The organization’s positioning to compete in the marketplace (e.g., high end, high quality service vs. low cost provider)</div>
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<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span>The nature of the organizations products and/or services</div>
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<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span>Where (i.e. which Stage) sales force engages client in client buying process</div>
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<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span>Approach to Lead Generation</div>
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<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span>Nature of sales territories within sales unit, division, etc</div>
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So there may be a unique “X” for a single organization, sales unit and salesperson.<span style="mso-spacerun: yes;"> </span>However, there is another caution here.<span style="mso-spacerun: yes;"> </span>Using “X” as a guide for pipeline health assumes that all other factors remain constant.<span style="mso-spacerun: yes;"> </span>We know this is not always the case.<span style="mso-spacerun: yes;"> </span>For example, if deal velocity slows then the amount of Won business also drops.<span style="mso-spacerun: yes;"> </span>“X” can no longer deliver the expected business in the expected timeframe.<span style="mso-spacerun: yes;"> </span>Changes in other factors (e.g., close rates) can also have similar impact.<span style="mso-spacerun: yes;"> </span>So it is important to watch these factors over time as well.<span style="mso-spacerun: yes;"> </span>Therefore, it may be an over simplification to think of “X” as the single constant metric to watch.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">What Key Indicators Drive Your Success?</span></b></div>
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This Discussion leads toward the conclusion that each organization, sales unit, etc. has a set of Key Indicators including “X” that drive their success.<span style="mso-spacerun: yes;"> </span>So then, what is an organization, a sales manager, and a sales person to do?<span style="mso-spacerun: yes;"> </span>Key seems to be for each to understand those few critical Key Indicators.<span style="mso-spacerun: yes;"> </span>Some of these Indicators include (there may be others):</div>
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<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span>Nature of the opportunity (product or service, net new or renewal)</div>
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<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span>Typical opportunity size</div>
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<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span>Number of opportunities in each stage</div>
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<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span>“Pull Thru”/Conversion rates (from Stage to Stage)</div>
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<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span>Velocity of opportunities through the Pipeline</div>
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<span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font-family: "Times New Roman";"> </span></span></span>Age of opportunity in each stage</div>
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<span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font-family: "Times New Roman";"> </span></span></span>Overall age of opportunity</div>
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<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span>Win/Loss/Cancel rates</div>
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<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span>Effort to move opportunities thru system</div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">Suggested Next Steps for Identifying and Using Your Key Indicators</span></b></div>
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<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">To better understand these Key Indicators for an individual sales organization, to track them, and take action the following Next Steps are suggested: </span></div>
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<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Analyze available Funnel data.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Define Key Indicators at organization/sales unit/sales person levels (keep number small, in range of 3 to 5). </span></div>
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<span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font-family: "Times New Roman";"> </span></span></span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Implement analytics supported by tools to better understand what is going on within the Funnel, over time, by each salesperson/sales unit within sales organization.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font-family: "Times New Roman";"> </span></span></span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Identify any “Gaps” (i.e., here today – need to be there!).<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font-family: "Times New Roman";"> </span></span></span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Set up a coaching program to address Gaps.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Track Key Indicators (and other metrics) across the entire sales process not just a portion (i.e., later Stages). </span></div>
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<span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font-family: "Times New Roman";"> </span></span></span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">E.g., movement in Key Indicators in early Stages can give sales management a heads up to such things as increasing workload, perhaps a softening market, more competitive activity in the market, effectiveness of Marketing programs, and several other items.</span></div>
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<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Track, track, track!<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font-family: "Times New Roman";"> </span></span></span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Insist on clean data - Really!<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Monitor the data, look for trends over a period of time</span></div>
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<span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font-family: "Times New Roman";"> </span></span></span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Refine/improve Key Indicators or introduce others based on lessons learned or as business changes.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font-family: "Times New Roman";"> </span></span></span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Adjust coaching program</span></div>
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<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-family: "Times New Roman";"> </span></span></span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Get tools in hands of sales managers and salespersons to enable them to do their own tracking and analysis on regular basis.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font-family: "Times New Roman";"> </span></span></span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Visualization capability is critical to adoption and use.<span style="mso-spacerun: yes;"> </span></span></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 115%;">Summary</span></b></div>
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This started off as a discussion about what value of “X” sales organization should use to monitor the health of their Pipelines.<span style="mso-spacerun: yes;"> </span>The conclusion from the discussion was:</div>
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<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">1.<span style="font-family: "Times New Roman";"> </span></span></span>There is no universal value for “X” that can be applied across all organizations.</div>
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<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">2.<span style="font-family: "Times New Roman";"> </span></span></span>There is a unique “X” value for each sales organization, sales unit, and salesperson</div>
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<span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">3.<span style="font-family: "Times New Roman";"> </span></span></span>It is an oversimplification to rely solely upon “X” to manage pipeline health, there are other Key Indicators that need to be monitored to drive increased sales performance.</div>
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Several suggested Next Steps were provided to identify these Key Indicators and to begin tracking and monitoring.<span style="mso-spacerun: yes;"> </span>Following this discipline of monitoring and coaching can lead to greater sales performance.</div>
</div>Dean Sharratthttp://www.blogger.com/profile/14152718936151850567noreply@blogger.com0tag:blogger.com,1999:blog-6485043963306774591.post-41395341121144799932011-05-09T09:46:00.010-07:002012-07-31T14:20:34.460-07:00The Great Debate – How Big Should Your Sales Funnel Be?<div class="MsoNormal" style="margin: 0in 0in 10pt;">
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<span style="font-family: Calibri;">Recently there was an interesting discussion on the question of “3X as a targeted sales funnel size?” in Mark Seller’s LinkedIn Discussion Group “Funnel IQ”.<span style="mso-spacerun: yes;"> </span>Several people offered opinions ranging from 2-3X all the way up to 7 and 10X.<span style="mso-spacerun: yes;"> </span>Looking at this question from the perspective of the “science of selling” and based on a six Stage Buy Cycle Funnel using an optimistic sales position this value is surprisingly more likely in the range of 17X.<span style="mso-spacerun: yes;"> </span>It could be much higher depending upon how the salesperson is positioned, the mix of opportunities within his/her territory, and win rates within his/her accounts.<span style="mso-spacerun: yes;"> </span>This discussion looks at these Sales Funnel metrics in more detail.</span></div>
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<a name='more'></a>A Sales Funnel model is used that is based on a client’s buying process – the “Buy-Side”. <em><span style="font-size: x-small;"><span style="mso-spacerun: yes;"> [</span>See Mark Seller’s book “The Funnel Principle” for more background on this approach.]</span></em><span style="mso-spacerun: yes;"> </span>A bit of definition will assist in evaluating the assumptions and conclusions that follow.<span style="mso-spacerun: yes;"> </span>The Funnel used in this discussion consists of following six Stages:</div>
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<strong>Define Business Problem</strong> – where client organization becomes aware of a business problem or a business opportunity of which they can take advantage; major outcome is one or more client buyers or influencers agree there is a problem and to sponsor its further evaluation.</div>
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<strong>Define Business Case</strong> – where a business case is prepared by client organization; major milestone is approval by the appropriate client buyers.</div>
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<strong>Secure Funding Commitment</strong> – where client organization evaluates this Case versus other competing Cases; major milestone is scare funding allocated to this Case.</div>
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<strong>Define Decision Criteria</strong> – where client buyer’s project team defines in more detail their business requirements and their criteria for selecting a successful vendor to provide services and /or products; major milestone is Request for Proposal released to list of approved vendors.</div>
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<strong>Evaluate Alternatives</strong> - where client buyer’s project team receives vendor proposals, evaluate against selection criteria (including presentations from selected finalists) and make a recommendation to client buyer of successful vendor bidder; major outcome is selected Bidder.</div>
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<strong>Complete Vendor Selection</strong> – where client buyer’s project team with support of other client organization resources (e.g., Legal, Finance) negotiates final contract with chosen vendor bidder; major milestone is contract signed by both parties.</div>
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<em><span style="font-size: x-small;">[For those not familiar with the first three Stages please check out Sharon Drew Morgen’s work for some insights.]</span></em></div>
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<strong><span style="font-size: large;">Scenarios and Assumptions</span></strong></div>
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To illustrate the Funnel metrics a simple model was developed that looks at the number of opportunities required in one Stage of the Funnel described above in order to advance a sufficient number through to the next Stage to ultimately “pull-thru” a single opportunity as won.<span style="mso-spacerun: yes;"> </span>The following key assumptions were used in this model:</div>
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Salesperson engages with client at beginning of client’s buying business process with situations which are primarily <u>net new opportunities</u>.</div>
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Salesperson’s objective is to win $1 mil in a time period.</div>
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Average opportunity size in Salesperson’s Funnel is $1 mil in value</div>
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Salesperson’s Funnel is fully populated – that is salesperson is not in a startup situation.<span style="mso-spacerun: yes;"> </span>[In a 6 Stage Funnel if client takes 1 month to proceed thru each Stage then first win is not likely until 6th or 7th month.]</div>
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The more influence the salesperson (or sales organization) has on the outcomes early in the client’s buying process the more successful the salesperson is in winning, more often.</div>
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This discussion considers two scenarios that illustrate Funnel metrics based on how the salesperson and sales organization are positioned within the client’s organization.<span style="mso-spacerun: yes;"> </span></div>
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<span style="color: black;"></span><strong><span style="font-size: large;">Scenario #1 – Well Positioned Salesperson </span></strong></div>
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The salesperson knows client’s business, is able to bring visibility to a problem or opportunity that client was not aware of, is able to describe an interesting solution that builds interest with client buyers </div>
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The salesperson has influence on the outcomes of each Stage which results in a certain number of “opportunities” advancing to the next Stage in client’s process.<span style="mso-spacerun: yes;"> </span>For this scenario these “Pull-Thru” rates are highlighted in red in the column labeled “#of Ops that advance to next Stage” in the table to right.</div>
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<strong>Outcomes:</strong></div>
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<li>To drive a $1M win the salesperson would need a Funnel that is about 17X (where X is $1 mil).</li>
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That Funnel would have the profile illustrated in the chart below.</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEif2bOmPh_bwexTYISa1W1VWuCpmcz0b-M7j-knbEBQHdrcIZpbB_dXLL0YJ8EPaau5oXW5aICqskC1pOcKdpZS0nOxfufzTB5ECzYJOLGvkDVBrtXLCa2yBlgZpmay0Z7dhxkPTtZP2ipE/s1600/Optimistic+Funnel+Bar+Chart.png" imageanchor="1" style="clear: right; cssfloat: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="167" j8="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEif2bOmPh_bwexTYISa1W1VWuCpmcz0b-M7j-knbEBQHdrcIZpbB_dXLL0YJ8EPaau5oXW5aICqskC1pOcKdpZS0nOxfufzTB5ECzYJOLGvkDVBrtXLCa2yBlgZpmay0Z7dhxkPTtZP2ipE/s400/Optimistic+Funnel+Bar+Chart.png" width="400" /></a>Based on several assumptions about amount of effort to pursue each opportunity the salesperson is likely to secure the win within a 1 to 1.5 month interval!<span style="mso-spacerun: yes;"> </span>In other words the fully loaded Funnel in this Scenario if worked consistently could drive a $1 mil win every 1 to 2 months.<span style="mso-spacerun: yes;"> </span>This assumes that client decision making is not a constraint.<span style="mso-spacerun: yes;"> </span></div>
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During this period of the win the salesperson would have to work 17 opportunities to Pull-thru a single win</div>
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<strong><span style="font-size: large;">Scenario #2 – Salesperson “Follows” Client</span></strong><br />
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In this Scenario the salesperson is less well positioned within account; understands what is going on, but has little to no influence on outcomes in early Stages, and faces strong competition in the later Stages.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhHTv1dvtgnNdkuTJavcSapHqplhRZEXduAuGIpTLqxTd7BvLJ4NrHzwOFAHb40xpU6ljiEhcx_98NsVnqkLXXbrpTMOk0FQuDZ2S5jwr5zyvYnB5IIL4pi5uMo0id6q_M6MCy2MgDbUQw_/s1600/Table+-+Pessimistic+metrics.jpg" imageanchor="1" style="clear: right; cssfloat: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="216" j8="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhHTv1dvtgnNdkuTJavcSapHqplhRZEXduAuGIpTLqxTd7BvLJ4NrHzwOFAHb40xpU6ljiEhcx_98NsVnqkLXXbrpTMOk0FQuDZ2S5jwr5zyvYnB5IIL4pi5uMo0id6q_M6MCy2MgDbUQw_/s400/Table+-+Pessimistic+metrics.jpg" width="400" /></a></div>
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In reality salesperson is likely just tracking the opportunities in these early Stages and more focused on building a relationship with the client buyer or influencer participants rather than influencing the outcome, and as a result likely less differentiated from competition.</div>
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The “Pull thru” rates are assumed to be 1 point less in each of Stages 1 thru 4 than those in Scenario #1, and Stage 5 rates 2 points less as salesperson’s solution is likely less differentiated.</div>
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<strong>Outcomes:</strong></div>
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<li>To drive a $1M win the salesperson would need a Funnel that is 36X</li>
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Based on similar assumptions about the amount of effort to pursue each opportunity as in Scenario #1 it would likely take a 2 month interval to secure this win! </div>
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The salesperson would have to work around 44 opportunities in that interval</div>
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<strong><span style="font-size: large;">What Can Be Learned From This Analysis?</span></strong><br />
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A few changes in the “Pull-thru” assumptions quickly drive big swings in the number of Funnel opportunities required to win an opportunity of the same size.<span style="mso-spacerun: yes;"> </span>Along with this goes increased salesperson workload. This very quickly goes from a manageable to an unmanageable situation.</div>
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Also, and perhaps more importantly, as the Pull-thru numbers become less optimistic the interval of time to win an opportunity of same size could be extended out by several times.<span style="mso-spacerun: yes;"> </span>This could result in quite a swing for a salesperson who is expected to win $1 mil each month, but finds that his/her run rate is closer to $1 mil every 2 to 3 months.</div>
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Time management becomes even more critical for the salesperson and sales manager. </div>
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For example; as a general rule if a salesperson’s target is $1mil for a period then he/she should avoid chasing one-off<span style="mso-spacerun: yes;"> </span>$250k opportunities. </div>
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Salespeople should be very realistic about their chances of winning an opportunity.<span style="mso-spacerun: yes;"> </span>If the chances are low then abandon.<span style="mso-spacerun: yes;"> </span>In other words, if you are going to lose it is better to lose early!<span style="mso-spacerun: yes;"> </span>This is what I believe Peter French referred to as “discerning engagement”.</div>
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In a highly competitive and complex business environment most salespeople are more likely closer to Scenario #2 than Scenario #1</div>
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The nature of the opportunities in salesperson’s Funnel can affect the metrics as well.<span style="mso-spacerun: yes;"> R</span>enewal business or additional phases of a major multi-phase project opportunities can have different metrics.</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjpngHqH8QwAsKpuHlct8yt89TGOjh3poHZD2uFVY98JvL5wG6yCJ-bAtZZTWhPqdpj4IjkKuIIya4L42YK7JfyWJNXmvS525WyO-qHmti5zcVBF6YifDNnfWWOH-QMw6kR6DmlmUwg7Min/s1600/Table+-+Optimistic+metrics.jpg" imageanchor="1" style="clear: right; cssfloat: right; float: right; margin-bottom: 1em; margin-left: 1em;"></a>Sales organizations need to be realistic about the territory when setting quota.<span style="mso-spacerun: yes;"> </span>If their assumption is close to Scenario #1 when in reality the salesperson is in a situation which is more like Scenario #2 there will likely be a major gap in expectations.</div>
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Operationally it becomes critical for the sales organization to look with confidence at the opportunities in their Funnel of knowing that the reported data reflects the reality of the situation, and to allocate sales resources to those high potential opportunities.<span style="mso-spacerun: yes;"> </span></div>
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<span style="mso-spacerun: yes;"></span>Experience teaches us that many salespeople and some sales managers feel a sense of comfort in having a large pipeline even knowing that it is bloated with opportunities that will never happen. </div>
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Salespeople must be diligent in reporting the status of opportunities in a consistent way and eliminate the need for sales management to second guess the salesperson!</div>
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Sales strategies for both the salesperson and sales organization become very important in being successful in this reality.<span style="mso-spacerun: yes;"> </span>Strategies could include: focus of services/products offered, positioning in client’s mind, pricing, and go-to-market topics like partnering, lead generation, and use of internal resources to support selling.</div>
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The above discussion illustrates the numerical challenge faced by salespeople in building and maintaining the necessary Funnel to achieve their assigned quota.<span style="mso-spacerun: yes;"> </span>Many of you already likely had an empirical sense of this through the realities of years on territory.<span style="mso-spacerun: yes;"> </span>Perhaps this discussion has brought more focus and the example model can provide a tool with which to plan for a Funnel size that will enable your success.</div>
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Are you knowledgeable about your Funnel metrics, or would you like to plug in your best estimate to see the impact on your “ideal” Funnel?<span style="mso-spacerun: yes;"> </span>You can construct your own simple model, or if send me an email request I would be please to send this simple model to you.</div>
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</div>Dean Sharratthttp://www.blogger.com/profile/14152718936151850567noreply@blogger.com0