It is only with the heart that one can see rightly; what is essential is invisible to the eye. Antione de Saint Exupéry
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- Gerard Copeland
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3 It is only with the heart that one can see rightly; what is essential is invisible to the eye. Antione de Saint Exupéry 3
4 Welcome to... THE DISRUPTIVE AGE 4
5 Globalization Globalization has been around a long, long time. But in the last couple decades, labor started moving overseas where it was cheaper. White collar jobs followed shortly thereafter. As it turns out brains are cheaper overseas, too. More and more global competitors stepped up and started competing. Globalization has created this interlocking fragility. At no time in the history of the universe has the cancellation of a Christmas order in New York meant layoffs in China. Nicholas NassimTaleb People around the world aren t only as every bit as smart as you are (wherever you are), they re also every bit as competitive. Your customers are dealing with this competition.your company is, too. 5
6 Disintermediation (The Internet, in some form or fashion, shows up on this list a couple of times.) You don t want to be a newspaper right now. You don t want to be a book publisher. You don t want to be a record label. You don t want to be a commodity. I don t know about you, but most of my exchanges with cashiers are not that meaningful. Jeff Bezos The Internet makes transactions faster and cheaper. It s (still) disintermediating whole industries. And we re just paving the cow paths. 6
7 Two Recessions The beginning of the 21 st Century started with a serious US recession when the tech bubble burst. Not to be out-done, the financial sector decided to remind us just how much things can unravel in And we dragged the rest of the world down into the abyss with us. Recession is when a neighbor loses his job. Depressioniswhenyou loseyours. Ronald Reagan These recessions have reinforced a global scarcity mindset and a further push for transactional, commoditized business models atalllevels. Your clients are under margin pressure. You might have felt a little margin pressure, too. 7
8 United States GDP Billions of U.S. Dollars 8
9 Purchasing Purchasing departments have grown more powerful. They re nowmanaging globalsupplychains. They are sometimes paid bonuses for saving their companies money. All s fair in love and purchasing. Emily Oster They are trained to make you feel like a commodity. They re laser-focused on price. And they re part of your dream client s buying committee and decision-making process. You re now dealing with purchasing. The salespeople that sell for your customers are also dealing with purchasing. 9
10 Consolidation It s easier to do business with one great partner. It s difficult to manage a bunch of partners that each do things differently. Plus, consolidation allows you to command lower prices. The main reason for consolidating your supply base should be operational efficiency: lower costs in relationship management, lower administration costs, less risk to the business, and increased quality and speed in delivery. Companies are consolidating vendors. They re limiting the number of suppliers they use to a smaller, more manageable numberofrealvalue creating partners. Christine Ferrusi Ross, Caroline Roeleveld- Hoekendijk with Onica King (Forrester) 10
11 Commoditization You re not Wal-Mart. Your company s business model isn t lowest price. But all of the above listed forces make it feel as if the only value you can create is around price. It isn t true. What the term means is simply the conversion of the market for a given product into a commodity market, which is characterized by declining prices and profit margins, increasing competition, and lowered barriers to entry. But if you don t create a higher level of value, you will surely be treated like a commodity. If you behave like a commodity, the market will easily agree to treat you like one. Christine Ferrusi Ross, Caroline Roeleveld- Hoekendijk (Forrester) 11
12 Michael Treacy and Fred Weirsema The Discipline of Market Leaders 12
13 Your Customer s Required Financial Performance Your customers are under pressure to perform financially. And this is no longer something that just a few people in executive management are concerned with; it s organizational. Even low level stakeholders within your clients companies are responsible for a line on the P&L. Money is better than poverty if only for financial reasons. They re under greater pressure to perform. They have less time to spend with salespeople that can t help them. They need salespeople that can help them improve results. Woody Allen 13
14 The Internet Here it is again: The Great Leveler. Your clients can learn as much about you as you can them. You can know more about your prospects with less effort than at any time in history. The Internet is the first thing that humanity has built that humanity doesn t understand, the largest experiment in anarchy thatwe veever had. Eric Schmidt (Google) The tools we re using have radically reshaped the nature of sales and the nature of our relationships with our clients and prospects. There is a new tool kit, and you have to adopt and employ it if you are going to succeed. 14
15 Your Customer s Buying Process I don t buy the idea that buyers are finding their own way through the buying process by using the Internet. They re too busy to spend all of their time researching suppliers. A CEB study of more than 1,400 B2B customers across industries revealed that 57% of a typical purchase decision is made before a customer even talks toa supplier. But they are using a different buying processes. They re including more stakeholders, and when they decide to abandon the status quo, they re doing it only with the consensusofmore oftheirteammembers. 15
16 Required Sales Skill Sets Sales acumen used to be enough. To sell well, you needed product knowledge, the ability to prospect, the ability to tell a good story, to overcome objections, and to close. You still need to be able to do those things. But they re not enough to help either you or your clients deal with the preceding nine factors. You need chops. Go and get you some. Now you need the ability to differentiate yourself by the value you create and negotiate to capture some of that value. You need deep business acumen, massive leadership skills, and the ability to sell change. AnthonyIannarino 16
17 The past is going to look like a mellow prelude. Tom Peters (Liberation Management) 17
18 If you don t like change, you re going to like irrlevance even less. Retired U.S. General Eric Shinseki 18
19 19
20 The Case for Relationships of Value LEVEL 4 VALUE CREATION 20
21 21
22 Levels of Value 22
23 Value Creation 23
24 24
25 25
26 You are looking for dream clients. Clients for whom you create breath taking, jaw dropping, earth shattering, results-crushing value. 26
27 If you create value, you are entitled to keep some of the value that you create. 27
28 THE NEW BUYING CYCLE 28
29 The Buying Cycle This process isn t linear. It is a cycle 29
30 Everyone has a plan until they get punched in the face. Mike Tyson (American Philosopher) 30
31 31
32 Mindshare The Spreadsheet 32
33 33
34 34
35 "The only thing that really matters in life are your realtionships to other people. George Valliant (Harvard University, The Grant Study) 35
36 The seventy-five years and twenty million dollars expended on the Grant Study points to a straightforward five-word conclusion: Happiness is love. Full stop. George Valliant (Harvard University, The Grant Study) 36
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