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9 Common Sales Transformation Pitfalls and How to Avoid ThemByron Matthews, President & CEO
LIVE @MillerHeiman | #SalesInsights
Today’s Agenda
• The Evolution, Risks and Critical Points of Sales Transformation
• Key Research on Investment Priorities and Effectiveness
• Nine Reasons Sales Transformation Initiatives Fail to Fully Deliver
• Insight to Ensure You Don’t Fall Into Common Transformation Pitfalls
TRANSFORMATIONIt’s not what you sell, it’s how you sell it that sets you apart
The Need For Change
Sales Forecast Win Rate
45.9%Craps Win
Rate
49.3%vs
The Decision Dynamic
PeopleMore People InvolvedBuyer: 5.8 in 2015 /4.74 5yr average.Seller: 4.4 in 2015 / 4.1 5yr average
ProcessMore Formalized ProcessSignificantly formalized: 61% 2015 / 45.2% 5yr averageAve. sales cycle time: + 2.82% 2015 / 2.6% 5yr average
PoliticsHow will this group of people, make this decision, this time?Our customer requires formal ROI…: 61.4% 2015 / 40.2% 5yr averageRetention rate increase: + 5.4% 2015 / 4.8% 5yr average
Value
Valu
e
Customer
What We Believe
OLD WORLD Client Expectation of When Value is Delivered
NEW WORLD Client Expectation of When Value Is Delivered
Sales Process Product/Service Delivery
Signed Contract
ADD VALUEPROVIDE PERSPECTIVE
Customer’s Concept
Increasing Rate Of Change
61.4%
47.1%
49.1%
41.9%
40.1%
40.9%
8.5%
10.3%
8.2%
9.9%
8.6%
4.1%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
Rate of Change Impacting Sales Teams
Customer Expectations
Competitive Activity
Customer’s Marketplace
Complexity of Product Line
Breadth of Product Line
Rate of New Product Introductions
Increasing Noticeably
Increasing Significantly
What has the biggest impact on rate of change for your sales organization?
Don’t forget to join us for our LIVE Sales Transformation Twitter discussion@MillerHeiman#SalesInsights
2016 Investment Priorities
52%
Organizational Changes
82% 70% 60%
46% 42% 42%
TrainingTechnology
Investments / CRMTalent
Management
Process Design Deployment –Territory Changes
Playbook / Messaging
Outcome Of Sales Effectiveness Initiatives
8.6%
29.2%
46.8%
6.6% 8.6% Met or Exceeded All Expectations
Met or Exceeded Majority of Expectations
Met Only Some Expectations
Met A Few Expectations
No Major Sales Effectiveness Initiatives
Nine Sure Ways to Failure
Sales Transformation
Pyramid
Determine the ROI
Roadmap for Success
Nine Sure Ways to Failure
12
3
456
7
8
9
Lack of Executive Ownership
Lack of Dedicated Resources
Failing to Address Culture
Misunderstanding the Role of Technology
Confusing Sales Methodology and Sales Process
Going It Alone
Champagne Dreams/ Beer Budgets
Mishandling the Human Side of the Equation
Assuming That Done is Done
Why Sales Transformation Initiatives Fail To Fully Deliver – 9 Common Pitfalls
Pitfall #1 – Lack Of Executive Ownership
Major components of a successful transformation project are:
Executive ownership
Shared vision
Commitment
Accountability
Pitfall #2 – Lack Of Dedicated Resources
Part-time assignments do not generate part-time results; they often generate no results
25.5%
67.8%
6.7%
Dedicated Sales Effectiveness/Enablement Staff
Yes No Planned for 2016
Pitfall #3 - Failing To Address Culture
Before starting your sales transformation project, be sure to introduce new ways of selling while replacing the old ways your team sells.
Culture eats strategy for breakfast“
“
The Sales System
Pitfall #4 - Misunderstanding The Role Of Technology
A critical key to sales transformation success involves the intelligent use of technology to optimize sales effectiveness.
Pitfall #5 – Confusing Sales Methodology And Sales Process
?What’s the difference
between sales methodology and
sales process?
The hard part of selling is the “how” of sales.
Pitfall #6 – Going It Alone
With regard to the “buy” versus “build” debate for sales transformation projects, our position is clear:
buy whenever possible.
Our research data shows that partnering with a sales or marketing effectiveness provider - whether it’s a
sales training firm, a CRM developer, or a sales consultancy - increases the success of your project
both in the short and long term.
Pitfall #7 – Champagne Dreams/Beer Budgets
The cost of doing nothing is clear. It is an order of magnitude greater than investing in a sales transformation project.
Pitfall #8 – Mishandling The Human Side Of The Equation
The Resistance to Change Syndrome
The Big Brother Syndrome
There are 2 syndromes to be
aware of:
A critical pitfall is focusing too much on process, technology,
and knowledge and not enough on the people who will be
using these solutions.
There will be a temptation to try to make the sales transformation vision fit your organization instead of changing your organization to fit your vision.
Pitfall #9 – Assuming That Done Is Done
Sales transformation is not an event; it is an ongoing process. Initiatives that stop when the
project is rolled out are doomed for failure.
Consider the common reasons for
failure
No formal training
Inadequate technology
support
No planned enhancements/
upgrades/ additions
Which common pitfall do you relate to the most?
Transformation Required To Keep Up With The Speed Of Business
§ Sales transformation can change how you sell to create a sustainable competitive differentiator.
§ Transformation is not an event or a point solution; it is an ongoing process that is a blend of people, process, technology and information working together.
§ The world of sales is an ever-changing ecosystem.
§ More people are engaging in transformation projects, but only 38% of organizations achieve success.
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