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CreateSalesDepartmentSalesDirectorhiredtocreateasalesdepartmentandforasalesteam
TAMEEMALZOABI
"YOUONLYFAILWHENYOUSTOPTRYING"
TAZ Dream it work hard for it
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SalesDirectortoEstablishSalesDepartment
QuickDrafttounderstandwhattodo?
Date:Feb1,2016
TAZ Dream it work hard for it
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CONTENTS
Introductionabouttheproject/company/initiative:........................................................................................4
Descriptionofthecurrentsituation(Deal/SalesPractice/etc.):.......................................................................4
Describethesolutionimprovethecurrentsituation,andhowdoyouplantoapplythelearningfromthe
program?..............................................................................................................................................................5
Whatdoyouneedtomakethesuggestedplan/Initiative/solutionsuccessful?(e.g.ManagementSupport/
InternalAlignment/CustomerAlignment/MarketAnalysis….).......................................................................12
Whatistheexpectedimpactofthesolutiononthebusiness/outcome/etc.?..............................................14
Conclusion..........................................................................................................................................................14
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INTRODUCTION:
DTPisAviationIntegratedServicesProviderbasedinDubaiandrepresentscompanieswhoareleadinginthe
areaofaviationandairportexpansionsfocusingonITTechnologysolutions.DTPrepresentsthesecompanies
onaregionallevelhelpthesesupplierswithlocaltrainedstaffforfasterandmoreefficientservice.�DTP
alongwiththeirpartnershaveimplementedseveralprojectsworldwide.Withaacknowledgeandknow-how
ofairportoperationsandservicesfromthosepartnerstoprovidetotheendcustomerwithafullIntegrated
Solutions.BasedontherapidincreasesintheaviationmarketsectorspeciallyinadoptingthenewIT
technologiestomeetthetravelmarketdemands,DTPhaddecidedtoestablishaSalesdepartmentthatwill
helptogeneratehigherrevenuetomeetthegrowthofthecompany,andmotivethecompanydevelopments
toenrichtheSolutionswithnewservicesandproductstomeettheCustomerexpectationforgrowth.
TheSales
Inasalesenvironment,beingproactiveiscriticaltogeneratingleads,customersandnewopportunities.Sales
Directorinanybusinessplaysabigrolewithinthesalesdepartment,motivatingsalesteams,createeffective
plan,discussitwiththesalesteam,andimplementthisplaninawaythatleadstosuccess.Withahandfulof
fundamentalinitiatives,thatcanalignwiththegoalsofthisdepartment.Toachievethesuccessthefollowing
pointsareamust:
• CreateDevelopmentPlan. • InvolveCustomers.
• EmpowertheTeam. • FocusGrowth • SalesProcess • CategorizeOpportunities
• SalesMethodology • Budgettoestablish.
Descriptionofthecurrentsituation(Deal/SalesPractice/etc.):
CurrentlyDTPdependsonthreecategoriesforincome/revenue:
• IndirectProjects(Brokerage):withexistingpartnerswereDTPhavenodirectinvolvements,only
chargesforServicessuchas(Negotiations,purchases,Management)toclosedeals.
•
• LoyalCustomers:existingAirports(DubaiAirport)aspartofthecustomerdevelopmentsand
growth,DTPhastheprivilegetodirectproposefornewprojects,ordevelopmentaspreferable
withinTendersubmissions.
•
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• DirectProjects:DTPinvolvedintheprojectdeliverywonbyourpartnersinagreedterritories
whereasDTPchargesforimplementations,servicesandsupport.
AsseenaboveDTPhavenoSalesinvolvements,whichhadcreatedagapbetweenthecustomers’needsand
therequiredsolution(products/services)thatfulfillsthatneed.
TheCurrentscenariohavelimitedDTPgrowthtoenrichitsProducts/Servicesportfolioandnarrowedthe
knowledgewithintheaviationmarketanditsdevelopments.
Describethesolutionimprovethecurrentsituation,andhowdoyouplantoapplythelearningfromtheprogram?
AsaSalesDirector,willhaveafullresponsibilitymatrixthatwillalignwithcompanyvisionandmissionas
wellitsstrategy.BasedontheSPCprogramIhadunderstoodclearlythoseresponsibilitiesthatwillhelpto
establishthisdepartment.
• DevelopSalesStrategyinlinewithDTPBusinessStrategy.
• ManageCustomersandSalesteam
• IdentifyOpportunities
• CreateSalesProcess
• ContributeinNewInitiativesorProductDevelopment
• CommunicatewithDTPDepartments
• ManageSalesTeam…KPIs,CRM
• DefinesCustomersexpectations
• ConfirmTargets&GoalsAchievements
• SalesPlanningandReporting
• ResponsibleofProductivityandEffectiveness
CurrentlybusinessdevelopmentdepartmenthandlingalltheactivitiesshowninFigure1
Figure1BusinessDevelopmentDepartmentResponsibilities
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Thisstructuregivesoverloadtasksandfollow-upswithinthedepartment;withoutclearfocusongoalsand
sales.So,Formoreproductivity,Iwilldividethedepartmenttocreateasalesdepartmentaswiththe
followingdutiesFigure2
Figure2Sales&DevelopmentDepartments
Thiswillhelptoincreaseproductivityforbothdepartments(BDandSales)withclearrolesand
responsibilities.
BidsandSalesareanintegralpartofanyITcompany;weresalespeopleareinvolvedtogenerateleadswith
potentialclientswithintheaviationmarket,preparesolutions,createproposals,providingproductsor
servicesdemonstrations,establishingproof-of-concepts(POCs).Allalongwithpartners(thesalespeople
shouldhaveaveryclearunderstandingorDTPpartners’productsandservicesthatcanbeintegratedwithin
theoverallsolutionproposedtothecustomer).Suchacycleisnotcompleteduntilthecustomerisacquired,
bidmanagementisavitalpresalessupportservicetheprovidescopywriting,administrative,andtechnical
resourcestothesalespeopletoensurethequalityofproposaldocumentationandpresentations.To
coordinatethepreparationofwinningproposal,thebidmanagerneedstoworkverycloselywithsales,
technical,deliveryandcommercialteams.
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Figure3SalesDepartmentStructure
Figure3,identifytheproposedstructureofthesalesdepartmentwhoallwillbereportingtotheSales
Director,werewillhavethefollowing:
AccountsManager,willensurealong-termsuccess&healthyrelationwithexistingcustomersdevelopa
trustedadvisorrelationwithC-Level,communicateclearlytheprogressofmonthlyinitiatives,identifyand
growopportunitywithinthiscustomers,understandtheiroperationsandpains,tosuggestsolutionsand
systemsthatcansupporttheirgrowth,andmanagetosellthemnewsolutions(products&Services)
SalesManager,willIdentifynewcustomerswiththeexistingproducts,createcasescenariostoapproacha
newaccount,preparepresentations,POCs,monitoringcostsandcompetitions,understandtheaviation
marketsupplyanddemand,participatewiththemarketingteamtopromotethecompany.
BidManager,willbecloselyworkingwithbothAccountManagersandSalesManager,toprepareproposals,
quotations,andneeddocumentsforthecustomers.Whereas,partofmyplantoactivatetheroleofthe
FinanceManagerandhisinvolvementinpricinganddefinedtheprofitmargins.
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TheSalesDepartmentPlan
Theplanwillhave:
PricingStrategies:Thereareanumberofdifferentapproachestopricing.DTPcanuseamixofthese
approachesoruseadifferentapproachtodifferentcustomersandatdifferenttime.
ThepriceofDTPproductsandserviceswill,toacertainextent,dependonthecompetition.Afterthemarketanalysisacomparisonsbasedonthefollowingappropriate:
• HowDTPproductperforms• Howitlooks• Whatisitsquality?• Howisitpresented?• WhetherDTPlevelofserviceisbetterorworsethanthecompetitors• DTPmarketimage
WewillnotbeafraidofsettingahigherpricethanDTPcompetitorsiftheproductorservicehasadvantagesoverthem.Customersoftenassociatehigherpriceswithhigherquality-thereforeitmaybethatahigherpricecanhelptheimageorreputationofDTPproductsandservices.Pricesaresittingforprofit,soacarfulunderstandingofthecostandoverheadsinimplementinganyprojectsorsales.Therearemanykindsofpricingstrategysuch:Costplus,Markup,Basicplus,Uniform,Negotiated,Marginal,andsoon,asmentionedaboveDTPcanbefreetochooseanykind.
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SalesProcess
Figure4DTPSalesProcess
• ProspectingStage:Searchforandqualityprospects..• PreApproach:Gatherinformationanddecidehowtoapproachthisopportunityorcustomers.And
itcanbemeasuredbytheKPI…
• Approch:GaintheProspect’sAttention,interestandmaketrasitiontothepresentation...
• Presntation:BrginaninterestintoacustomerandcreatingadesireforDTPproductortheservices
....
• Overcoming....Wellpreparedtoanswercustomerconcernesprofessionallyandconvincing
• Colse...Obtainpurchasecommitmentfromttheclientandcreatacustomer
• Follow-up...Ensurethesatisfactionofthecustomer(ProductorServices)withfollowingup...
ThoseKPIsarelearnedfromthesalestrainingthatitook,andiwasverycloseworkingwiththeinstrctorto
choosetherightKPIsforeachstage.Thisisagenericprocess;itcanbeastartupprocesstoestablishasales
departmentandlatercanbecustamized,alongwithsalesteam.
Opportunities
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WillbedependingonLotofinformationthatcanbegainedfromdifferentsourcesas:customer,Tenders
invitations,directsales,internaldepartments,socialmedia,eventsandresearches.Allopportunitieswillbe
recordedinaCRM(CustomerRelationshipManagementSystem)
WhatthisinformationwilladdtoDTPsalesdepartment:
• Whatarethemainend-usertrends?
• Howcanthesupplierindustryintroducenewproductsandservicestomeettheneedsoffuture
airportoperatingmodels?
• Whatarethechallengestomarketpenetration?
• Whatwillthemarketsizebein2015-2020?
• Whatarethekeyandpipelinetechnologies?
• Howdoesthebalanceofpassengersatisfaction&operationalefficiencyversusstringentsecurity
measuresaffectthesecurityindustry?
• Whatarethekeymarkettrends?
• Whataretheopportunitiestoincreaseyourmarketshare?
• Wherearethemostattractivebusinessopportunities?
• Whatisdrivingthismarket?
• Whataretheinhibitorstoyourgrowth?
• Whataretheriskstoyourmarketshare?
• Whoarethekeyvendorsinthismarket?
• Whatarethethreatsfacedbythekeyvendors?
Methodology
TheSPINMethodologywillbeused,simplyisabouttounderstandthecustomer,usingtherelationshipand
meetings,tohavethemtalkingabouttheinternalissue,wherethesalespeoplewillunderstandthesituation,
highlightittothecustomerandhowitwillcauseaproblem,whatthisproblemimplicateandcausethen
offerthesolution.
Ineachstage,assalesdepartmentwilldothefollowing:
Situation:firstwilldoresearchINADVANCEoftheconversation,toavoidboringprospectswithquestionswheretheanswersarecommonknowledge.
Queuemanagementsystem
o Howdoyoucurrentlymanageyourqueuing?
o Howdoyoukeepitminimalwaitingtime?
o Howdoyoumaintainanoverviewofyourperforming?
Withthosequestionwithgeneralwillhaveahighlightonasituation…
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#2:ProblemMakeproblemtogetacustomertoacknowledgethereisaproblemthatneedstobefixed,they
arefarmorelikelytogivetheattentiontheweneedtocloseadeal.Thiswillhighlyeffectiveatencouraginga
customertoidentifyanissuethatisbeenoverlooked.
Examples:
o Wastheamountofpassengergoingthroughtransitareaeveraproblem?
o Doyoufindit’scausingalongqueue?
o Whatisthebiggestproblemyouarefacingsofarwhenmanagingthosepoints?
•
#3:Implicationexplorestheproblemeffectsandconsequences…showwhatitwillcausewhatitscausing
withoutknowing..
o Howmuchexpectedprofitetheairportlossmonthlybecaseofqueues?
o Howmanypaxcomplainaboutlongqueueandnothavetimetoshop?
•
#4:NeedpayoffQuestions:HerewewillidentifythesolutionindirectlytoDTPsolutiono Ifwecouldminimizetheamountofwaitingby40%,howmuchtimethepassengerswillgetfor
moreshopping?
o WhattheincreasedinnumberofsaleswouldthatbringtoAirport?
ProposalControlProcedure
It’saprocesstoapproveasales,byhavingHeadofDepatmentsinvolvedinSales(Implementation,
Techincal,PMO,Finance)Tohavetheopportunitysecured,withagreentoberecordedandthenSales
Peoplewillfollowuptheopportunity.
Thiswillsimplyminmizetheunknow&risk,byunderstandingifthereareanysellingissues:
1. Whatistheproblemthatproductshave(ifany).
2. Isitthesolutiongiventheclient,didDTPteammisunderstoodtherequirement
3. Isithowtheproductworks–it’sfeatures.
4. Isittheprice?
5. Ortheclientpreferacompetitor..
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Whatdoyouneedtomakethesuggestedplan/Initiative/solutionsuccessful?(e.g.ManagementSupport/InternalAlignment/CustomerAlignment/MarketAnalysis….)
TheSalesDepartmentAlongwiththedevelopmentdepartmentwillconducttogetheramarketresearchand
analysistoincreasetherevenuesources.Thiswillbebasedonqualitativeandquantitative,pollingalarge
numberofspecificproductsorservicestopredicthowitwillbeneededwiththeaviationindustry,askfields
ofexpertsforgeneralopinions,haveadirectapproachtocustomerstoexaminetheirneeds.
Trytoexpandthecustomerbasedtoincludethetransportationindustry,collaboratewithmoreexpertsin
theaviationandtransportationindustrytounderstandthenewesttechnologiesandnewtrends.
Duringthisphaseofcreatingthesalesdepartment,Willbedependingonfactors:ProductsandServices,
Prices,Territory,customers,CompetitorsandtheSalesDirectorwillrequiredto:
• Create(3years,5years)StrategyPlan• Showtherealpotentials• ManagetheChange• Identifynewideas/Opportunities• DefinedGrowth(RevenueandProfit)• ReaffirmtheHire• Re-evaluatetheSalesDepartmentonmonthlybases
TheStrategywillbebasedon:
• SWOTAnalysis:AsthebestwaytoleverageDTPstrengths,weakness,toknowhowtousetheminTOWS.
• Goals:IdentifyDTPsalesdepartmentsgoals..Willbechangeonayearlybase(short&longterms)tomeettheCompanygoals.
• KPIs:WilladdametricsthatIcanjudgeSalesbusinessperformancebasedonthesuccessSalesdepartmentwillachieve.
• Industryanalysis,• CompetitiveAnalysis• OperationsPlan:isthesalesdepartmentactionplanforexecutingtotransformDTP–Sales
opportunitiesintoreality.
WhyDTPneedSales…speciallynow.
1-DTPisgettingintotransformationperiod,DTPdepartmentandmanagementcannotunderstandthemarketwithoutthesalesdepartment.2-DTPcannotunderstandthecustomerneedsandfutureneeds.Becauseontheminimalinteracting(facetoface)withcustomers.
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3-Salespeoplewillhavetheinformationforwhichproductisworthininvesting.4-Priceswillbeunderstoodbyonlysales,DTPManagementlooksonRISKmatterandoversizeit..Saleswillguaranteehowthepricesalongwithfinancedepartment.
However,westillneedtoknowthatitsnotthesalesdepartmenttodefinedthenewproductsorservices,
butitwillbethemainmarketinformationsources..Tohelpdefinedthebestchoiceforacustomerforan
industryforaproject…
LetlookatdeferentareaswithintheindustryforexamplewithintheairportsDTPhavethefollowing:
Figure5ProductsandServicestoincludeinDTPPortfolio
However,letsbeinnovative:DTPshouldcreateaprocessoftranslatinganideaorinventionintoaproductorservicewhichshouldbeintelligencesolution,thatwillbeaninspirationofdevelopmentforcreativitythat
createsvalueforthecustomertomeethisvision,whichhewillpayfor.
WithinGCCaround200mpassengers,thatuseairportsandairplanes,thiswillresultinmore:
1. Airportsdevelopments
2. BetterGroundhandlersoperations
3. ATCsystems
4. MoreAirlinesmovements
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“TheMiddleEastaviationmarketisexpectedtoreceivethedeliveryof2,610aircraftbetween2012and2032,valuedat$550billion,GCCrequireatleast$16bnworthofICTsolutions”
IfDTPplantowideofferingtoTransportation,SalesDepartmentshouldbereadytoexploretheother
markets.Themanagementshouldprovidethefollowing
BetterUnderstandingoftheCompanyGrowth,withaclear(Departments,Company)strategies,establish
effectivecommunicationsandfocuswithmotivationstoallteams.
Whatistheexpectedimpactofthesolutiononthebusiness/outcome/etc.?
Inanybusinessorganization,salesisthedepartmentthatgeneratesrevenue.Nomatterhowgoodthe
companyoperationis,howcutting-edgethetechnologyis,howtightfinancialgoalsareorhowprogressive
andforward-thinkingofthemanagementtechniquesare,itsmuststillhaveasalesmechanismandsales
departmentinplace,oreverythingelseisuseless.
Salesdepartmenthasgainedimportancetomeetincreasingcompetitionandtheneedforimproved
methodsofdistributiontoreducecostandtoincreaseprofits.Salestodayisthemostimportantfunctionina
commercialandbusinessenterprise.
Thefollowingaretheotherfactorsshowingimportanceofthesales:
• Introductionofnewproductsinthemarket.
• Increasingtheproductionofexistingproducts.
• Reducingcostofsalesanddistribution.
• Exportmarket.
• Developmentinthemeansandcommunicationoftransportationwithinandoutsidethe
country.
• Riseinpercapitaincomeanddemandformoregoodsbytheconsumers.
Conclusion
Salesisviewedasadistinctfunctionalunitandmoreasasetoforganizationalprocesseswheretheentire
companyparticipatesinorganization-widemarket-orientedbehavior.Thequestioninthisrespectiswhether
salesisrequiredassteeringfunctionswithDTPforthesuccessfulimplementationofaviationmarket.
Consequently,thefollowingquestionsarise:Whatisthesalesdepartments’currentroleincompanies?What
factorsdrivetheirrole?Howdoestheirpowerinteractwithmarketorientationwithregardtobusiness
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performance?IthinkmystudyfindingssuggestthatthesalesfunctionplaysacrucialroleinDTPfor
implementingandsuccessfullymanagingthegrowthandrevenue.Theresultsimplythatmarketorientation
andastrongsalefunctionaremutuallydependentandindicatethattopmanagersshouldstrengthenthe
SalesfunctionifDTPaimtoalignthewholeorganizationwiththemarketand,thus,improvebusiness
performanceandincomes.