For all major initiatives, a company will need to get concensus or buy-in from several categories of executives. I say categories because I want to avoid the use of "levels" (Executive level, administrative level, etc.). The fact is, all people want to feel important and they are (in their own way). They do want want to be "leveled"!
Why three categories? It is easy to understand why three when you look at what each group looks for or desires in order to be a supporter of an initiative.
The IT and HR category (lets color them GREEN) primarily deal with SUPPORTING the INFRASTRUCTURE of a company. Your need to hire people and administer them etc. and for IT - well, every company has technology and a need to manage systems and networks, security etc. GREEN executives (CIO, VP of HR) look at a project primarily from a Total Cost of Ownership standpoint. So, when selling to them, show the value to them as lower TCO and you will resonate with them.
Next is OPERATIONS. We'll color them YELLOW. (VP of SALES, CMO, VP of Manufacturing, etc.). Yellow executives are interested in OPERATIONAL IMPROVEMENTS. Show them how to improve efficiency and effectiveness and how to reduce cycle times and you will see interest.
Of course, what is left is the ORGANIZATIONAL category. CEO, CFO, COO and BOD. These folks are responsible for setting the strategic direction of the company. We'll color them Red. When selling to red, highlight RETURN ON ASSETS. Make sure your proposal makes specific references to improving the income statement and the balance sheet and you will see smiles on the faces of RED CATEGORY executives.
MOST ALL COMPANIES I INTERVIEW FAIL TO RECOGNIZE THe DIFFERENCE and therefore their proposals are so braod and generic they are not specific for anyone. This leads to longer sales cycles and the buyers NOT GETTING FUNDING for VERY GOOD initiatives.
BOTTOM LINE- HELP YOUR CUSTOMERS sell your proposal internally because they strggle with Red, Yellow and Green just like you do.
For more info on HOW Certified Knowledge-Advantage students do this intentionally on a single sheet of paper, take a look at www.knowledge-advantage.com and download the free book Dimensions of Success.
Thursday, April 30, 2009
Tuesday, April 28, 2009
747 Flyover NYC Airforce One
Shame Shame Shame. What a blooper. What were they thinking? I can tell you what they weren't thinking. They did not put themselves in the shoes of "the other guy".
In case you missed it, the United States federal leadership decided to fly Airforce 1 over NYC very close to where the World Trade Center disaster took place while two fighter planes protected its flanks recently. They wanted to take photos near the Statue of Liberty. They did it without notifying the mayor of NYC or anyone who might be slightly traumatized seeing this spectacle in broad daylight. (I guess the administration has not heard of Photoshop).
What does this have to do with Sales Execution. The direct correlation is that in this case, the administration failed to put themselves in the shoes of "the other guy". They didn't see things from another perspective. They were only concerned with themselves while making decisions.
Sales people fall into this trap all too often. They have quotas to make and a specific timeframe to do it in and often times they do shameful things without thinking of the buyers first.
I submit that in actuality, a great deal of time and money and effort can be averted if you think of "the other guy" first when making decisions. I wish the Obama administration had. And with Obama's apology, he wished he had too.
In case you missed it, the United States federal leadership decided to fly Airforce 1 over NYC very close to where the World Trade Center disaster took place while two fighter planes protected its flanks recently. They wanted to take photos near the Statue of Liberty. They did it without notifying the mayor of NYC or anyone who might be slightly traumatized seeing this spectacle in broad daylight. (I guess the administration has not heard of Photoshop).
What does this have to do with Sales Execution. The direct correlation is that in this case, the administration failed to put themselves in the shoes of "the other guy". They didn't see things from another perspective. They were only concerned with themselves while making decisions.
Sales people fall into this trap all too often. They have quotas to make and a specific timeframe to do it in and often times they do shameful things without thinking of the buyers first.
I submit that in actuality, a great deal of time and money and effort can be averted if you think of "the other guy" first when making decisions. I wish the Obama administration had. And with Obama's apology, he wished he had too.
Monday, April 27, 2009
The BEST Customers Don't Need Sales or Sellers
What makes a good customer? One who can align the priorities of their key internal stakeholders, one who can fully uncover and then articulate what is required for an initiative to be successful and one who then can show the WIFM to all three categories of stakeholder HOW SUCCESS WILL BE MEASURED.
Unfortunatly, most customers can't align priorities, understand requirements or establish criteria. And that is one of the primary reasons that Gartner reports that less that one percent (.8) of all major IT initiatives deliver to the original intended value (scope/time/resources).
So, I have to chuckle when I read "... through questioning, the best sales people are able to empower their buyers by giving them a vision to achieve goals, solve problems, and satisfy needs if they had the sellers offering."
Isn't it awfully presumptive that a seller is going to 1) get the appointment/audience with a buyer (will questioning get the appointment?), 2) earn the right to ask a series of questions, and 3) receive the "correct" answers to the questions? Going in with a "give to get" approach works 99.9% of the time to earn the right to the most productive collaboration with your "less than able" buyers.
Remeber, customers want and need your help to improve their odds of success beyond .8%. Initially going in with a series of open ended probing questions does little to help you stand out from the crowd. After all, your questions are not unique.... just like everyone else.
Unfortunatly, most customers can't align priorities, understand requirements or establish criteria. And that is one of the primary reasons that Gartner reports that less that one percent (.8) of all major IT initiatives deliver to the original intended value (scope/time/resources).
So, I have to chuckle when I read "... through questioning, the best sales people are able to empower their buyers by giving them a vision to achieve goals, solve problems, and satisfy needs if they had the sellers offering."
Isn't it awfully presumptive that a seller is going to 1) get the appointment/audience with a buyer (will questioning get the appointment?), 2) earn the right to ask a series of questions, and 3) receive the "correct" answers to the questions? Going in with a "give to get" approach works 99.9% of the time to earn the right to the most productive collaboration with your "less than able" buyers.
Remeber, customers want and need your help to improve their odds of success beyond .8%. Initially going in with a series of open ended probing questions does little to help you stand out from the crowd. After all, your questions are not unique.... just like everyone else.
Friday, April 24, 2009
Sales Dialogues
Do you ever think about how many forms of communication take place in a sales that spans a period of 6-9 months? Literally THOUSANDS!
Email, web, phone, voice mail, traditional letters (yes, the ones housed in envelopes with stamps on them), fax, social networks, text messages and the like.
These communications take place between and amongst buyers, sellers, and third parties to name three categories. Within each category however each party may speak a different language particular to their role in the organization.
A CEO/CFO speaks and listens for Return on Assest (ROA) when ldetermining the viability of an initiative or project (and wether to free up the resources for the same). Infrastructure stakeholders (IT and HR) think in terms of TCO while operation stakeholders look for efficiency, effectiveness and cycle time gains. If they do not see the proposal/business case in their language they are left to interpretation. What to do?
Just like with human language, a translator is needed to bridge the gaps in these dialogues short of learning all three languages. By taking a look at your current communication mechanisms (collateral, web site, email's etc) and asking yourself, "Which category of executive would my message resonate with most and which executives would have glassy eyes?", you will begin the first step to improving results. That first step is the AWARENESS phase of a six step buyer/seller roadmap. Stay tuned for phase two- ANALYSIS!
Email, web, phone, voice mail, traditional letters (yes, the ones housed in envelopes with stamps on them), fax, social networks, text messages and the like.
These communications take place between and amongst buyers, sellers, and third parties to name three categories. Within each category however each party may speak a different language particular to their role in the organization.
A CEO/CFO speaks and listens for Return on Assest (ROA) when ldetermining the viability of an initiative or project (and wether to free up the resources for the same). Infrastructure stakeholders (IT and HR) think in terms of TCO while operation stakeholders look for efficiency, effectiveness and cycle time gains. If they do not see the proposal/business case in their language they are left to interpretation. What to do?
Just like with human language, a translator is needed to bridge the gaps in these dialogues short of learning all three languages. By taking a look at your current communication mechanisms (collateral, web site, email's etc) and asking yourself, "Which category of executive would my message resonate with most and which executives would have glassy eyes?", you will begin the first step to improving results. That first step is the AWARENESS phase of a six step buyer/seller roadmap. Stay tuned for phase two- ANALYSIS!
Balancing Sales and Helping the Buyer Buy
Today I was interviewing a 30-year sales veteran and he told me that had he tried to help the buyer be more successful with the buyers project rather than trying to "sell his solution", he would have gotten both a sale and he would have helped the buyer simultaneously. And he might not be looking for a job today.
What?
We have all heard stories of how we manipulate the questioning techniques we've read in books to get at the problems and implications and the pain etc. etc. etc.; do you realy think the buyers are not "on to you" with that approach?
Instead, go in realizing that the buyer wants and needs your help to make the buyers project as successful as possible (with or without you). In so doing, you wll be rewarded. That means helping the buyer align priorities with the three categories of stakeholder, (bet you didn't know that the buyer is really three distictly different buyers in a high dollar matrix-buying sale), understand requirements and establish success criteria. Tell me your experience when you've done this effectively for the buyer.
What?
We have all heard stories of how we manipulate the questioning techniques we've read in books to get at the problems and implications and the pain etc. etc. etc.; do you realy think the buyers are not "on to you" with that approach?
Instead, go in realizing that the buyer wants and needs your help to make the buyers project as successful as possible (with or without you). In so doing, you wll be rewarded. That means helping the buyer align priorities with the three categories of stakeholder, (bet you didn't know that the buyer is really three distictly different buyers in a high dollar matrix-buying sale), understand requirements and establish success criteria. Tell me your experience when you've done this effectively for the buyer.
Thursday, April 23, 2009
Figures lie and Liars Figure
Remember that saying? There is an ongoing debate about the use and importance of EBITDA in valuing a company. Here is a wonderful short article about the pros and cons to help you better prepare for for Customer Collaborations.
http://www.investopedia.com/articles/analyst/020602.asp
http://www.investopedia.com/articles/analyst/020602.asp
C Level Executive Interactions
So you want to make more C Level calls?
Recently I heard the CEO of a $6B Gaming company say that their priority was free cash flow. And when looking at the hurdle rate for new investments they "... look at forecasted/estimated EBITDA, subtract interest and maintenance capital expense estimates and taxes. We compare that to the acquisition cost and then see if we can generate 5% year over year free cash flow."
How would you as a seller align your capabilities with the priorities of this CEO/COO/CFO?
Recently I heard the CEO of a $6B Gaming company say that their priority was free cash flow. And when looking at the hurdle rate for new investments they "... look at forecasted/estimated EBITDA, subtract interest and maintenance capital expense estimates and taxes. We compare that to the acquisition cost and then see if we can generate 5% year over year free cash flow."
How would you as a seller align your capabilities with the priorities of this CEO/COO/CFO?
Wednesday, April 22, 2009
Sales Process Who Benefits?
I engage with sales executives every day in the C level suite. Many of the Leaders have been through some sort of CRM rollout and understand the importance of tracking leads and conversions of leads to qualified opportunities and ultimately closes/wins.
I dare say that many hundreds of millions of dollars have been spent on an internal sales process yet I don't see an equa amount of investment being made in the customer and THEIR buying process. Say what? That's right. I said it. Its on the table now.
I spoke with an "accomplished" VP of sales recently who changed jobs and went from a "name brand" provider of networking/system monitoring applications to a relatively little known start up. The sales force is small- around 6-10 sales people and the supporting cast of tech wizzards who are the ones that get brought in to "sell the deal ... I mean technology". After all, do you really think we sales managers and sales reps did all the selling ourselves? No. But most of the time the sales person with the quota gets the credit and therefore they start believing their own press! Ha! (Just read some resumes of these overachievers sometime. You'd think they put a rocket on Mars already).
Anyway, I asked the VP who travels quite a bit around the country, "What role do you play when you are asked to go on custoer calls with your reps?". You will not be surprised by his response. He said, "... I sniff the deal to make sure its real and then I sell the prospect on our young company and its viability".
Now that the door was wide open (and his pants were clearly down to his ankles) I asked him why he had to sniff out the deal if his reps were such "senior high flying eagles"? He said his butt was on the line and he wanted to see for himself first hand. Argh!
Next I asked him what prep he requires of his rep to make the most of his customer visit. Again you can guess.... none. The 20 minute ride from the airport to the account was all the time they use. So much for sales process that actually could be valued by the customer.
My point is this, if he would have taken the time to understand the customer's business challenges, not just for his product/solution but really understood how the economic indicators and industry dynamics and financial conditions drive the priorities of his customer, he might have been abe to compete on a different level rather than doing sand box studies and proofs of concept. The times have changes but I am afraid the sales profession has for the most part- not. Still internally focused with its CRM and sales proess and account planning and no customer value. Shameful.
I dare say that many hundreds of millions of dollars have been spent on an internal sales process yet I don't see an equa amount of investment being made in the customer and THEIR buying process. Say what? That's right. I said it. Its on the table now.
I spoke with an "accomplished" VP of sales recently who changed jobs and went from a "name brand" provider of networking/system monitoring applications to a relatively little known start up. The sales force is small- around 6-10 sales people and the supporting cast of tech wizzards who are the ones that get brought in to "sell the deal ... I mean technology". After all, do you really think we sales managers and sales reps did all the selling ourselves? No. But most of the time the sales person with the quota gets the credit and therefore they start believing their own press! Ha! (Just read some resumes of these overachievers sometime. You'd think they put a rocket on Mars already).
Anyway, I asked the VP who travels quite a bit around the country, "What role do you play when you are asked to go on custoer calls with your reps?". You will not be surprised by his response. He said, "... I sniff the deal to make sure its real and then I sell the prospect on our young company and its viability".
Now that the door was wide open (and his pants were clearly down to his ankles) I asked him why he had to sniff out the deal if his reps were such "senior high flying eagles"? He said his butt was on the line and he wanted to see for himself first hand. Argh!
Next I asked him what prep he requires of his rep to make the most of his customer visit. Again you can guess.... none. The 20 minute ride from the airport to the account was all the time they use. So much for sales process that actually could be valued by the customer.
My point is this, if he would have taken the time to understand the customer's business challenges, not just for his product/solution but really understood how the economic indicators and industry dynamics and financial conditions drive the priorities of his customer, he might have been abe to compete on a different level rather than doing sand box studies and proofs of concept. The times have changes but I am afraid the sales profession has for the most part- not. Still internally focused with its CRM and sales proess and account planning and no customer value. Shameful.
Collaborating with Customers when interviewing
HOW TO MAKE COMMON SENSE COMMON PRACTICE-
The job market for high tech sales professionals is tough, you don't need me to tell you that but why are we making it even tougher to get hired?
Consider this; prospective employers know that if you were the top performer at your past company you would still be there. Period. If you have been out of work for a while they are wondering why you are still looking. So you better have the answers to these two basic questions going in. Here are some other common sense ideas to consider.
1) A prospective employer will only hire you if you can add value in the form of something they don't have now and need/want. How do you go about finding out what they need and want other than traditional notes from job boards or a recruiters spec sheet?
2) Using social networks and introductions from friends and colleagues does not mean that you can lob in a call to the CEO and expect her/him to automatically take your call. What are you doing to get the attention of the key individual(s) you need to impress to get the job? How do you prep? What do you look for to position yourself in the best light?
3) Graying hair can be a plus or a minus! The reality is the person interviewing you is most likely younger than you. How will you be able to relate to a younger person? A younger person is going to question (non-verbally of course) your stamina. Your intentions. Your longevity. Your desperation factor! What can you do to make all of these "concerns/question" a non-issue?
All these and more are common sense. Right? But in my part-time role helping folks interview better, I recently witnessed poor preparation, defensiveness, going in without a plan, inability to understand the buyers 1) priorities, 2) their requirements to add the next hire and 3) success criteria that will be measured to know that they made a good decision.
While I have only scratched the surface, these were top of mind today. I'd love to hear your thoughts around common practice and common sense.
Without a simple set of methods and tools making common sense common practice defaults to intuition. Intuition is very difficult to teach and the key reason that change managment is so daunting for sales professionals.
The job market for high tech sales professionals is tough, you don't need me to tell you that but why are we making it even tougher to get hired?
Consider this; prospective employers know that if you were the top performer at your past company you would still be there. Period. If you have been out of work for a while they are wondering why you are still looking. So you better have the answers to these two basic questions going in. Here are some other common sense ideas to consider.
1) A prospective employer will only hire you if you can add value in the form of something they don't have now and need/want. How do you go about finding out what they need and want other than traditional notes from job boards or a recruiters spec sheet?
2) Using social networks and introductions from friends and colleagues does not mean that you can lob in a call to the CEO and expect her/him to automatically take your call. What are you doing to get the attention of the key individual(s) you need to impress to get the job? How do you prep? What do you look for to position yourself in the best light?
3) Graying hair can be a plus or a minus! The reality is the person interviewing you is most likely younger than you. How will you be able to relate to a younger person? A younger person is going to question (non-verbally of course) your stamina. Your intentions. Your longevity. Your desperation factor! What can you do to make all of these "concerns/question" a non-issue?
All these and more are common sense. Right? But in my part-time role helping folks interview better, I recently witnessed poor preparation, defensiveness, going in without a plan, inability to understand the buyers 1) priorities, 2) their requirements to add the next hire and 3) success criteria that will be measured to know that they made a good decision.
While I have only scratched the surface, these were top of mind today. I'd love to hear your thoughts around common practice and common sense.
Without a simple set of methods and tools making common sense common practice defaults to intuition. Intuition is very difficult to teach and the key reason that change managment is so daunting for sales professionals.
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