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

Master’s Program in Sales ManagementTURNING CORPORATE STRATEGY INTOSALES STRATEGY AND IMPLEMENTING IT!

AgendaYesterday – Strategy!

ContextLearn a framework for leading strategy and differentiation discussions How a strong Purpose can inspire action and differentiation The role that Sales Leaders have in building healthy workplace

culturesHow to set up the strategic planning cycle for more successful sales

outcomes

The 5 Worst Errors of Sales Strategy!1. Why we shouldn’t treat all customers the same2. Why we need to adjust the sales people and management

processes when the sales cycle gets longer3. Why a good sales forecast review is a strategic investment4. How sales incentives and compensation are not everything5. Why managing leading indicators is more strategic

Integrated

Strategy

Purpose

Culture

Leadership

Performance Systems

Execution

The 5 Worst Errors of Sales Strategy

1. We treat all customers the same We don’t build value propositions specific to customer segments

2. When the business changes we use the same sales people and management processes

We don’t recognize their inherent ability to manage complexity and line that up with the complexity of the sales cycle

3. We work IN the business not ON the business We don’t coach and mentor enough every day because we are lost in the weeds

4. We believe that compensation and incentives are 90% of high performance

We don’t focus enough on the growth needs of people

5. We don’t spend enough time managing leading indicators of success We get enamoured with looking in the rear-view mirror

Error #1:We treat all customers the sameCustomer segmentation

Segmentation specific value propositions

The Marketplace

Are all Customers the Same? Is your Market Diverse?

1. Understand Customer

Needs

2. Group Customers

3. What are the Most Attractive

Groups?

4. Develop Value

Propositions for Target

Groups

5. Develop Go To Market Strategies

Segmentation Principles

Businesses Need to beProfitable

Different customers

have different value drivers

Who do you

choose to serve?

What are you looking for?

How have you grouped your customers today?

How do you know that what they are asking for is a “market”?◦ What is an attractive group?

Geography

Demographics (age, gender, etc)

Buying Patterns

Size of Customer

Value of Customer

Industry

Benefits

Customer Needs

Interests

Values

Attitudes

Behaviour

Segmentation Matrix – Example

Premium Performance Value

ProfessionalHobbyistCasual User

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Customer Segments

Price: Features: Services: Options

Segmentation Matrix (Example)

Premium Performance Value

Professional • Willing to pay top dollar for top quality and features

• Risk averse

• May consider price premium if features are relevant

• Is price conscious but will not accept low quality

• Accepts fewer features

Hobbyist • Willing to pay top dollar

• Willing to pay more if there is a reason

• Wants competitive pricing

Casual User • Will pay for the cool factor

• Product quality and reliability are drivers

• Price is a big factor in what to buy

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Customer Segments

Group Work - Segmentation

Groups of 4

Pick one of your companies

Build a simple (3x3) segmentation matrix

30 minutes

The beginning of segment specific Value Propositions(Example)

Premium Performance Value

Professional • Top of the line Pro Full Frame SLR Cameras with top of the line lenses

• Service Plan

• Not top of the line but next level down

• Product One generation old

• Refurbished lenses?• Service: pay as you go

Hobbyist • Top of the line Compact System w/ interchangeable lenses

• Instructional classes

• Top of the line with one good general purpose lens

• The best combination of features and a great price – a bundle

Casual User • Compact Pocket Camera with all the Bells and Whistles (Wifi)

• Good Product – good warranty – good price

• Basic Camera for occasional use

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Customer Segments

Where can you win? Where do you have advantages over the competition?

Workshop Same Groups:

Identify elements of the value proposition for two segments◦ How are they different?

15 minutes

The Marketplace

Are all Customers the Same? Is your Market Diverse?

Segment Specific Value Props

Which slice of the marketdo you wish to serve?

ExerciseSame Groups as before and Same Company

Pick two of the segments of your matrix

Create value proposition statements for each of those twoReview Strategy Canvas if it helps

Identify one area where you could create Value by altering the 4 factors

30 minutes

Value Propositions At our company we value/believe ______________________________

This means we ______________________________

We seek to help Customers who ______________________________

Unlike our Competitors we ______________________________

Answering these questions:

Why should someone purchase your offering?

Why should someone purchase your offering instead of your competitors?

What is most worthwhile for someone to keep in mind about your offering?

Value Propositions At 1-degree we believe that enlightened workplaces have the greatest potential to shift global consciousness.

This means we only work with CEO’s who want to make culture a source of differentiation and a platform for employee growth.

We seek to help mid-size organizations who need to borrow our help in making this transformation.

Unlike others in this field we co-create the programs needed – we build on those elements of Strategy, Culture, Purpose and Leadership that already exist rather than force a complete system reset.

Error #1:We treat all customers the sameCustomer segmentation

Segmentation specific value propositions

Error #2:When the Sales Cycle gets longer we don’t adjust the sales peopleThe internet is making basic facts/information

availableCustomers are smarter – competition is increasing

Higher margins are in task-sourcing or risk-sharingThe Sales Cycle is getting longer and more complicated

Not all reps can naturally manage more complex sales cycles!

Levels of Complexity & Work AbilityA body of knowledge known as Requisite Theory or Stratified Systems Theory

Researched and introduced by Dr. Elliott Jaques in the 1950’s

Implemented in Fortune 500 companies

A Whole System of beliefs that demonstrates a natural hierarchy that functions optimally given the natural levels of human capability

Requisite for SalesWork Level Problem Solving

ApproachSales Method

Contribution Time Frame

V Concepts A or B or C Conceptual

Presents new business model > 5 Years

IV A > B > C vs E > D > F^

Yes/AndTrade-offs

Positions two possible solutions to address client issue(s) and can help with impact tradeoffs

2-5 years

III A then B then C Follows one or more threads

Articulates a narrative on how a solution impacts client’s business

1-2 yrs

II A and B and C Look for Patterns

Bird Dog – Provided an example they find a pattern and bring in an expert if needed

3-12 mos.

I A or B or C Feature-Benefit

Highly transactional – ‘dial for dollars’

< 3 months

Example:Rep Capability - Distribution

Level of Work Rep Performance Rep Level of Capability

Level V

Level IV High ManagerRep 6

Level III HighHigh

Rep 4 Rep 5

Level II Not Making ItNot Making It

Rep 2 Rep 3

Level I Not Making It Rep 1

Sales Cycle Complexity Tech example

Example Do you want fries with that?

Buys in volumeAndWants consistent budget costsAndWants to be legalRecomend: SW Licensing

Have a customer rip and replace their storage systemImplications:Cost/ impact on other systems / manageability

The implications of moving a datacentre to the cloud balanced against the implications of control and security

Sales Cycle Length

1 day - 3 months 3 months - 1 Yr 1-2 Years 2-5 Years

Sales Cycle ComplexityMeasured in Length

Ideal StateWork Aligned with Ability

Level V

Level IV Rep 6

Level III Rep 4, 5

Level II Rep 2, 3

Level I Rep 1

Complexity 1 day - 3 months 3 months - 1 Year

1-2 Years 2-5 Years

RepCapability

Sales Cycle ComplexityMeasured in Length

Overwhelmed or Reliance on Manager

Boring – limit exposure

Ideal Focus

Manage the balance

Manager RequiredOne Level up is required from Rep Capability so that the manager add value, context

Level IV Seems to be Required for the range of sales cycles – if every manager manages the complete range

What did we learn?Do you have different products or offerings that have different complexity?

Error #2:When the Sales Cycle gets longer we don’t adjust the sales peopleThe internet is making basic facts/information

availableCustomers are smarter – competition is increasing

Higher margins are in task-sourcing or risk-sharingThe Sales Cycle is getting longer and more complicated

Not all reps can naturally manage more complex sales cycles!

Error #3:We work IN the business not ON the businessBusy-ness rules – we mistake busy for effective

Rhythm of review – what is your practice?

Forecasting is strategy being executed

Sales ManagementFORECAST REVIEWS – MONTHLY EXECUTION OF STRATEGY

Forecast Reviews1. If the planning process made sense than a commitment to the Goal

is mutual

2. The Territory Plan or Account Plan makes the Objectives for the year very clear

3. The Forecast review is as much about the actions and steps as it is about the $ Forecast. If the rep is not taking the steps can you reasonably expect the results to follow?

◦ Sales Management is about keeping reps on track with the right activities or adjusting based on new information

◦ Every Sales Call therefore has an objective relative to the monthly forecast discussion and the annual Sales Plan

October ForecastCustomer Opportunity Probability 30 Days 60 Days 90 DaysABC Co. HR Project 30% $12,000 $19,500 -Jones Bros. Dist. Refresh 90% - - $100,000B-Town Inc. Brampton

Expansion50% $ 9,000 - -

GrowTown International Services

70% - $19,000 -

Tower Vendor of Record 75% - - $15,000Run Rate $11,000 $11,000 $11,000Forecast $32,000 $49,500 $126,000

Probability is mapped to Sales Stage that is relevant to your company

November ForecastCustomer Opportunity Probability 30 Days 60 Days 90 DaysABC Co. HR Project 40% $12,000 $19,500 -Jones Bros. Dist. Refresh 90% - - $100,000GrowTown Vendor of Record 75% - $10,000 $10,000Google Creative Building 20% $55,000 - -City of Dallas Property Project 90% $17,000 - -

Run Rate $11,000 $11,000 $11,000Forecast $95,000 $40,500 $121,000

CompareO

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November Action LogAction Who Owner/Help By When Purpose

Meet ABC Co. Project Lead Me – take SME

Nov 10 Figure out why this project is stuck

Send Invites All Customers

Me Nov 3 New Product Launch

Post thought leadership Buyer’s Guide - LinkedIn

Me Nov 7 Support Awareness

December ForecastStarts with Review of NovemberCustomer Opportunity Probability 30 Days 60 Days 90 DaysABC Co. HR Project 40% $12,000 $19,500 -Jones Bros. Dist. Refresh 90% - - $100,000GrowTown Vendor of Record 75% - $10,000 $10,000Google Creative Building 20% $55,000 - -City of Dallas Property Project 90% $17,000 - -

Run Rate $11,000 $11,000 $11,000Forecast $95,000 $40,500 $121,000

Nov

embe

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Sales Management See your job as:

“Getting People Done Through Work” Not

“Getting Work Done Through People”

Error #3:We work IN the business not ON the businessBusy-ness rules – we mistake busy for effective

Rhythm of review – what is your practice?

Forecasting is strategy being executed

Error #4:We believe that compensation and incentives are how we motivate performance

What Are Our Basic Needs and Growth Needs

Evol

ution

of P

erso

nal C

onsc

ious

ness

Satisfying your physiological needs for security;staying alive and keeping your body healthy.

Satisfying your emotional need for belonging, protection and connection.

Satisfying your emotional need to be recognized for your skills, talents or qualities.

Satisfying your need for autonomy, freedom, independence and adventure.

Satisfying your need for authenticity and finding meaning and purpose in your life.

Satisfying your need to actualize your purpose by influencing or impacting the world around you.

Satisfying your need to leave a legacy—to have led a life of significance that will be remembered.

Growth Needs

Basic Needs

At any given moment in time, our values are a reflection of our unmet basic needs, and the growth needs associated with the stage of psychological development we have reached.

What a Sales Rep Sounds Like:

Evol

ution

of P

erso

nal C

onsc

ious

ness

Survival: I need to close this deal because I havebills to pay or I am afraid of losing my job.

Relationship: My customer will buy from me because of the strong relationship we have.

Self-Esteem: I want to be recognized as one of the top performers in our company!

Transformation: I constantly stretch myself and bring new ideas to my clients.

Cohesion: I want to understand my customers real drivers and then match my solution up with that.

Make a Difference: I collaborate with my clients sothat my solutions make a significant impact.

Service: I don’t sell anything. I help my customersto build their business by serving with all we have.

Growth Needs

Basic Needs

At any given moment in time, our values are a reflection of our unmet basic needs, and the growth needs associated with the stage of psychological development we have reached.

What do Incentives drive?:

Survival: I need to close this deal because I havebills to pay or I am afraid of losing my job.

Relationship: My customer will buy from me because of the strong relationship we have.

Self-Esteem: I want to be recognized as one of the top performers in our company!

Transformation: I constantly stretch myself and bring new ideas to my clients.

Cohesion: I want to understand my customers real drivers and then match my solution up with that.

Make a Difference: I collaborate with my clients sothat my solutions make a significant impact.

Service: I don’t sell anything. I help my customersto build their business by serving with all we have.

Growth Needs

Basic Needs

How do we line up Incentives and Compensation plans so that they support strategy?What mix of base to incentive makes sense?

Drives:

Drives:

Drives:

Drives:

Drives:

Drives:

Drives:

Error #4:We believe that compensation and incentives are 90% of high performance

Error #5:We don’t manage leading indicatorsWe LOVE facts

We don’t like approximations

Leading Indicators

Lagging Indicators

Examples of Lagging Indicators% of plan

Customer Satisfaction

On-time Delivery

Market Share

Win-Loss Ratios

Customer Retention

Customer Profitability

What do these things have in

common?

Leading Indicators

Examples of Leading IndicatorsNumber of Sales People Trained/Certified

Number of prospects identified

Number of customer appointments each month

Number of Demonstrations completed

Number of prospects touched in Seminars

Size of the Sales Pipeline

Sales Cycle

Does The Rep know how to sell

the product?

Do we have any

identified suspects?

Have we had

technical people on

site?

Have we done a

proof of concept?

Have we presented

an ROI Analysis?

How about you?“ When we get technical people onsite we win”

“ When we do a demo we win”

“ When we present ROI cases we win”

Group WorkBreak into groups of four

Share your leading indicators

Discuss how you could measure at least one new leading indicator effectively (Make sure it is Strategically Aligned!!)

20 minutes

Error #5:We don’t manage leading indicatorsWe LOVE facts

We don’t like approximations

Glancing BackYesterday – Strategy!

ContextCorporate Strategy Fundamentals – it is all about DifferentiationHow a strong Purpose inspires action and DifferentiationThe role that workplace Culture plays in DifferentiationAligning (Corporate, Marketing, Sales Management) Strategy with

Sales

Today – Sales Strategy & Execution!The 5 Worst Errors of Sales Strategy

1. Why we shouldn’t treat all customers the same2. Why we need to adjust the sales people and management

processes when the sales cycle gets longer3. Why a good sales forecast review is a strategic investment4. How sales incentives and compensation are not everything5. Why managing leading indicators is more strategic

ContactNick Foster

Cell: 416-275-0776

Email: nick@culturexbrand.com

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