Leading Strategic Change

Leading Strategic ChangeWalking the Walk or Talking the Talk

David DiStefano, CEO, Richardson

Copyright © 2013 Richardson. All rights reserved.

Overview

CEO’sCreating value is high on most

AGENDAS

Investments redirected to: drive organic growth focus more on their customers greater operational effectiveness

Execute and drive change within the sales organization organizational readiness individual development

Blind spot: link between the intended

organizational changes and individual behavior changes


2013: Primary Growth Drivers

2012

Increased share inexisting markets

New product orservice development

New geographicmarkets

Mergers andacquisitions

New joint venturesand/or strategicalliances

35%

26%

16%

13%

6%

2013

Organic growth inexisting domesticmarketM&A/JV/strategicalliances

New product orservice development

Organic growth inexisting foreign market

New operation(s) inforeign markets

41%

22%

17%

16%

4%


Rallying Around the Customer

CEO’s disparity in customer-centered investment priorities


Pace of Change

61%some levelof strategic

change

67%anticipate

organizationalstructure changes

29%plan to outsource business process

or function

17%plan to “insource”

previously outsourced business process


Why Does it Matter?

70% of change projects do not achieve desired outcomes

52% fail with no evidence of change and often long

term damage to the organization.

#1 reason: Lack of leadership is leading cause of failure (i.e. no vision, actions, and engagement)


Overview

What a

Sales Leader

must do…

implement strategic change

effectively convey the strategy and engage the salespeople in its execution

own responsibility, and;inspect the intended change in the organization (i.e. behavioral or structural)


Leading Strategic Change


Leaders Most Admired by US-based CEOsPwC asked CEOs, “As a leader, can you share an example from literature or history where someone exhibited good leadership?

What did you admire about their actions?”

#1 Winston Churchill

“He explained the reality of what people faced and he mobilized them to deal with it”

#2 Abraham Lincoln

“He understood the greater good and he understood the bigger picture”

#3 Ronald Reagan

“His mantra – “trust, but verify’ – it’s a very good leadership skill”


Nuance of Leading ChangeChange Management Change Leadership

Message to create awareness and urgency

Implement processes, programs and directives

Plan to meet milestones of measurement and achievement

Engage the entire workforce with “what to do and how to do it”

Develop the vision

Connect the vision, strategy, critical business initiatives and people’s rolesApply consistent discipline in modeling and reinforcing

Change the conversation at all levels to motivate and inspect the change



John Kotter’s classic article, Leading Change: Why

Transformation Efforts Fail


Error Common OutcomesError #1: Not Establishing a Great Enough Sense of UrgencyError #2: Not Creating a Powerful Enough Guiding Coalition

Error #3: Lacking a Vision

Error #4: Under Communicating the Vision by a Factor of TenError #5: Not Removing Obstacles to the New VisionError #6: Not Systematically Planning for

and Creating, Short-term Wins

Error #7: Declaring Victory too Soon

Error #8: Not Anchoring Changes in Our Culture

Senior teams communicate amongst themselves and not the organizationSignificant time is invested yet implementation but-in is not achieved

Vision often lacks a clear path from “here to there”Communication fades over the course of the initiativeUnplanned obstacles derail the path to success, i.e. legacy culture Often overlooked. Tangible progress is vital to maintain organization buy-inThe objective is not change, but sustained change

The capacity to change has its limits


Successful Path to Change

ENVISON

Sustained Change

INITIATE

OWN


Envision: Constructing the Change Story

GOALS AND OBJECTIVES

1. At the Corporate level, we will:

[long term and short term results to achieve]

2. At the individual level, we are striving to:

CHALLENGING ISSUES

1. The things in our way are:

[obstacles to achieving our objectives and goals, which can be: Competitive Market Financial Operational Regulatory ]

ROLES AND RESPONSIBILITIES

1. As a leader, I am committed to individually role modeling the following behaviors and alerting my peers when I see behaviors that are not congruent:

2. I am asking the members of my team to:

STRATEGIC INITIATIVES

1. To achieve our goals and objectives and break through our challenges, we have established a focus on these key initiatives:

[high-level response to solve challenging issues]


Envision: Communicating the VisionWhen communicating the vision, summarize the following points: Things that will stay the same Things that will be left behind New things that we've never had before

The leader should be the chief spokesperson for the change vision ensure all employees understand

the rationale for the change, and; how the change will be

implemented


Own: Relentlessly focus on few things that matter mostAsk Adoption Questions: Tell me about a salesperson who applies

the new sales process consistently. What do you see?

(and the converse)

Ask Coaching Questions: Who did you talk with? What did they say?

Meets Verifiable Outcome: Client validates your understanding of

business objectives

Driving adoption through new conversations

VP Sales/District Sales Manager

Frontline Sales Manager

Salesperson/Client


Sales Stages and Verifiable Outcomes

PLAN VO #1: Seller gains access to decision maker at right level

VO #2: Confirm account potential spend

QUALIFYVO #3: Customer confirms issue/problem/gap and willingness to change

VO#4: Feedback from customer on if/which solution is best fit for their business

ALIGN VO #5: Decision maker/internal coach feedback — we understand/can quantify benefits

PROPOSE VO #6: Obtains customer feedback on next steps

EXPANDVO #7: Feedback on resolution of any satisfaction issues

VO #8: Feedback from customer on AM follow-through


Own: Front Line Manager’s High Impact Coaching Questions

Stage 2: QUALIFY VO #1: Customer confirms issue/problem/gap and willingness to change 1. What are the business issues, compelling needs/pain points they

are trying to address? 2. Who cares about those business issues or compelling needs/pain

points and why?3. What do they expect to achieve by addressing these business

issues or compelling needs/pain points?4. Why can’t they achieve this today? 5. Who confirmed this need exists, and where does it fall in terms of

priority?


Own: Front Line Manager’s High Impact Coaching Questions

Stage 2: QUALIFY VO#2: Feedback from customer on if/which solution is best fit for their business 1. Which solution is the best fit for this customer? What did the

decision maker say? 2. How will the recommended solution meet this customer’s business

needs now and in the future, according to the customer decision maker?

3. What is our unique value proposition? Does the customer agree with it? What benefit do they see in the unique value proposition?

4. Why did the customer say a competitor was a better fit (more than just price —capabilities, response, trust)?

5. Who else will be involved in evaluating the solution? Have you met each of them? Describe their perception of us —in their words.


Own: District Manager’s Adoption Questions “Give me an example of a salesperson who is using the consultative selling

skills?” What benefits does he/she see? What benefits do you see?

“Give me an example of a salesperson who is not successfully using the consultative selling skills” What challenges does he/she see? What challenges do you see? What is he/she doing to overcome those challenges? How is that working?

“So that I have a better understanding of your perspective, what are two key opportunities that you are involved in with this salesperson?”


Own: District Manager Adoption Questions

Given the importance of these opportunities, would you share with me where each is in the sales process?

How do we know the opportunity is in that stage of the sales process? “Sometimes our perceptions of where an opportunity is in the sales process are

different from where the client is in its buying process. What feedback have you gotten from the client that leads you to believe that this opportunity will close this quarter?” If I called the client and asked a few questions, would I get the same

answers that you just gave me? “Studies show that salespeople who get three or more hours of coaching a

month are more likely to hit their quotas as a result. How has your team responded to your coaching efforts so far?”


Initiate: What will I do and what will I ask of my direct reports?

1. As a leader, I am committed to individually role modeling the following behaviors and alerting my peers when I see behaviors that are not congruent

2. I am asking the members of my team to do the following.


Envision: The Change Story Example

GOALS AND OBJECTIVES

Overcome the barriers and challenges in way of implementing profitable solutions and satisfying our clients Earn the right to collaborate and grow with our

clients Become a $XX company by 2015 Attract, develop, and retain the top talent Reduce pain, frustration, and stress in our daily

jobs and provide more opportunities for advancement, skill development, and reward

CHALLENGING ISSUES

New buying behaviors - greater value delivered at a lower cost

Complexity and globalization - pressure on revenue and margins

High levels of and differing competition Limited bandwidth to simultaneously grow the

business, keep up with innovation in the marketplace, and implement changes to be a more efficient business

ROLES AND RESPONSIBILITIES Creating a culture of respect, collaboration, and

empowerment by listening … Clearly articulating roles and responsibilities for my

team members Providing feedback and praise to colleagues and team

members when they take responsibility for actions and outcomes

Monitoring adoption by asking adoption questions consistently

I am asking the members of my team to: Proactively using consultative dialogue skills,

especially listening and questioning, with each other

STRATEGIC INITIATIVESMore disciplined approach will yield significant benefits including visibility, predictability, scalability, and prosperity for our shareholders and employees

Driving Operational Excellence: We have embarked upon INIATIVE 2015 with a strong focus on operational excellence in four areas: (1) how we pursue growth, (2) how we appropriately scope and price total solutions, (3) how we deliver those solutions to our clients, and (4) how we recruit, select, and develop our people.



THANK YOU

Business

Leading Strategic Change