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1 Discussion Document Prepared by: Barry Hennessy Jon Gooding insight2implementation Ltd
2 Table of Contents Introduction 3 Value, Solution and Services Selling - Competency Family 4 Planning and Preparing 5 Relationship Management 6 Guiding Dialogues 7 Exploring and Developing Needs 8 Communication 9 Opportunity Selection 10 Proposing 11 Negotiating 12 Competency Ratings 13 Sample Competency Table 14 insight2implementation Ltd
3 Introduction With the world still in recovery from the economic slow down, attention to competency development has come sharply into focus as organisations recognise the importance of getting the best possible performance from all of their employees. As practitioners who have helped many organisations develop their teams competencies, i2i would always ask the following questions when helping our clients answer the why do it question in considering the following: Are you clear about the business results that the competencies you are introducing are aimed at improving? Are you clear about the activities that those demonstrating the competencies will be involved in for them to achieve success? Are you clear about which specific skills and behaviours have a co-correlation to success in your organisation, culture, and markets? It s fine if you cannot answer yes unequivocally to the above - this is about raising performance and results and to do so you have to solve new problems. Today young adults studying mathematics are taught The best way to get good at solving problems is by the process of solving them. We have seen many organisations fail to get a return in this area by trying for perfection before they get started. It s better to get started and learn and improve along the journey. When organisations successfully implement competency / skills models and then manage through them on an ongoing basis, significant bottom line benefits are often reported, which typically include: Better results Increased productivity Reduced staff attrition Better recruitment (closer match of candidates to role requirements) Reduced training cost (or better ROI from training) Reduced cost of change and succession From our own first hand experience of competency development within our own and many customers organisations, this is something that i2isales passionately believe in...in short we focus on the stuff that works. insight2implementation Ltd Page 3
4 Value, Solution and Services Selling - Competency Family Below is a sales competency family for value, solution, and services selling. These competencies are designed as a starter set only - they are designed to help customers who are in the process of introducing value, solution, and services selling. They are intentionally at a lower level of detail (granularity) than is normal and are aimed at helping sales managers and leaders focus their teams on the specific behaviours, skills and activities that we have observed that the most successful sales people deploy. They should only be introduced when they have been adjusted to fit in with your own organisations strategy, plans, culture, markets, and customers. The sales competency family to consider for value, solution and services selling consists of the following: Planning and Preparing Relationship Management Guiding Dialogues Exploring and Developing Needs Communication Opportunity Selection Proposing Negotiating The specific competency definitions and indicators for the above are provided in the following sections. insight2implementation Ltd Page 4
5 Planning and Preparing Planning and organising Setting clear advance objectives Researching Managing state Following up Always one step behind the game. Acts in a rush and a panic. Not in control of their working activities and timetable. Late in delivering or does not complete the task at all. Unsure or unrealistic in next step to take to advance the sale, suggestions made out of context with customer situation and needs. Lacks information on customer situation, does not bother to use available information sources or to develop useful lines of enquiry. Negative mental attitude and lack of enthusiasm. Easily discouraged. Doesn t manage their emotions: moody. Shows physical signs of distress. Fails to fulfil commitments. Spins, prevaricates between different options but does not act on any. Highly organised and in control of their own timetable. Works in a planned and orderly fashion. Delivers results on time. Has a s y s t e m a t i c a p p r o a c h t o organising activities that ensures efforts focused on priorities. Sets and achieves clear objectives, especially financial, that marry customer and own company needs. Pre-frames and proactively suggests next steps that are acceptable to customers. Identifies and accesses information sources that provide clues to customer situation and business drivers. Identifies sources of possible solutions. Puts self in shoes of customer. Proactively creates appropriate state. Copes even in difficult circumstances. Shows energy and positive attitude. Relaxed and energetic in appropriate circumstances Considers carefully before committing. Once commitments are made follows through as promised and on time. Promptly advises when unforeseen delays and emergencies are encountered that impact ability to fulfil commitment. insight2implementation Ltd Page 5
6 Relationship Management Building rapport Influencing Assertiveness Building customer support Often fails to connect with others. Can appear cold and unfeeling. Lacks sensitivity. Finds it difficult to demonstrate understanding of the needs of others. Communicates the same way regardless of response whether customer is comfortable or not. Have few or poor relationships with key players and decisionmakers. Doesn t set out credible opinions on important matters. Doesn t engage or contribute in discussions on decisions. Keeps themselves to themselves. Finds it difficult to articulate ideas, arguments or strategies. Have low visibility. Avoid disagreement and conflict or backs down in confrontations. Resorts too quickly to aggression or an I win, you lose strategy. Causes discomfort in others. Caves in gives concessions too readily or before they are asked for. Tries to sell to people not in a position to buy, engages only with people they like, finds they are capped and prevented from networking with other members of customer Decision Making Unit by existing contacts. Able to quickly form connections with people from a wide variety of backgrounds. Creates environment for success. Emotionally secure and mature. Has presence that generates warmth and empathetic understanding of other people. Demonstrates sensitivity to the needs of other Act as ambassadors for The organisation. Viewed as worth talking to by customers. Maintains a network of relationships and information exchange with other key players both internally and externally. Are seen to know what is going on. Are consulted on major issues. Have high visibility. Able to stand ground and say no where appropriate. Able to separate people from issues. Can deal with conflict in a mature manner. Engineer win-win options and outcomes where possible. Identifies all those involved in decision making relevant to the sale, explores needs and position and triangulates interests. Wins active assistance of contacts with power when making advances. insight2implementation Ltd Page 6
7 Guiding Dialogues Following customer interests Guiding dialogues Confirming understanding Summarises actions and commitments Responding to objections Ignores customer hooks, talks at customers, follows own line of interest. Overly controlling of agenda and dialogue pulling discussions to own needs, pumping up selfimportance, likes sound of own voice. Or allows customer to completely control meeting Assumes they know what the customer means. Tells the customer what they think. Fails to agree common understanding. Assumes next steps and agreements, does not summarise agreements action plans or next steps. Often in position of mismatched expectations. Argues with customer or jumps into handling or rebutting the objection. Finds self in position of handling objection after objection. Qualifies and quantifies customer s interests, picks up and responds to hooks. Explores customer business drivers and personal perspectives when developing needs. Skillfully guides the dialogue with the customer responding to customer s interests all the time. Uses questions and summary to keep the conversation on track and inline with customer priorities and targeted advance. Encourages customer to confirm understanding, plays back own understanding for customer to check. Offers own opinions after first confirming the customer wants to hear them. Explicitly checks and summarises actions and commitments, agrees how progress will be monitored with the customer and follows up to completion. Clarifies and empathises with the objection, tests whether resolution of objection will lead to advance. Surfaces all objections before responding to any. Responds to objection according to customer priorities. Admits and outweighs for valid objections, creatively provides solutions. Checks that objection has been adequately responded to with customer. insight2implementation Ltd Page 7
8 Exploring and Developing Needs Exploring customer situation Surfacing issues and opportunities Developing needs Articulating customer risks Responding to personal needs Quantifying value Developing customer commitment Goes direct into proposing or suggesting problems. Disinterested in customer situation. Fails to identify all critical customer issues and opportunities, starts proposing before understanding all critical issues. Assumes knowledge of impact and consequences of customer issues. Often fails to identify a compelling reason to buy in the customer mind. Avoids risks to delivery of customer value or attempts to mitigate or play down impact. Ignores personal goals and needs of the customer. Proposes solutions that fail to address customer s personal wins. Sells by telling, focuses on features and standard pitch. Lists issues but does not build the need or test whether the customer is committed to advancing. Efficiently explores the customer situation, confirming customer responsibilities and priorities. Surfaces customer objectives and challenges. Encourages customer to share issues, responds to customer hooks (clues) and digs to quantify and qualify magnitude of opportunities and problems. Ensures customer priorities are understood. Explores effects of issues, quantifying business and personal value. Explores and quantifies customer s desired outcomes, checks for and develops a compelling reason for the customer to buy. Develops commitment for the customer to buy from own organisation. Surfaces and proactively raises risks, uses risk to differentiate how value will be delivered to customer. Surfaces customer's personal interests and explores how personal wins can be delivered. Sells by identifying and building value case with the customer, helping the customer to quantify the value the solution would bring using the customer s desired value, figures and measures. Builds commitment with the customer, explores and addresses barriers to advance, develops a compelling reason to buy that is agreed to by the customer. insight2implementation Ltd Page 8
9 Communication Verbal fluency Listening actively Questioning Presenting Written communication Disinclined to engage in conversation. Has difficulty expressing ideas in words. Lacks confidence in conversational or social contexts Appears intent on own agenda. Talks more than they listen. Doesn t respond to customer clues and themes. Cuts across and interrupts others. Tells rather than asks, rearranges responses to meet own agenda. Asks leading and multiple questions. Communicates confusing and ambiguous messages, lacks confidence or ability to articulate the case for advancing. Appears arrogant or critical of customer and their situation. Rarely commits ideas and propositions to writing. Uses poor construction, complex language and poor structure in written document. Enjoys conversation. Holds audiences. Expresses ideas clearly and with impact in conversation. Highly articulate. Confident when speaking to groups. Keeps the interest of other parties. Allows others to open up. Acknowledges and responds to statements of others. Confident in verbal and non-verbal skills. Able to maintain flow of conversation. Demonstrates listening by responding to customer s line of interest and hooks. Uses a variety of different questions to help develop the needs and understanding. Asks the right question at the right time in context with customer interests and the flow of the conversation that leads towards desired advance. Communicates clear sales case and propositions. Demands attention, projects confidence and amplifies key messages that address customer interests and business drivers. Uses appropriate format for written communications. Sets out ideas clearly and simply in good English. Uses logical structure. Communicates with impact using customer terminology where appropriate. insight2implementation Ltd Page 9
10 Opportunity Selection Qualifying Evaluating opportunities Matching capabilities to customer requirements Surfacing competitive factors Focus on profit Fails to identify if the opportunity is real and worth investing in from the customer point of view. Bids for work that that the organisation has neither the capability nor capacity to fulfil. Does not detect competitive activity or position. Signs up business that runs at a loss through over committing or failure to consider true costs Explores context of the opportunity. Identifies if customer is prepared ready and able to invest. Evaluates if there is a compelling reason for the customer to purchase. Ensures solutions tabled are feasible and that own organisation has the capacity and capability to deliver within expectations if engaged. Detects competitive activity on radar, evaluates competitor position strengths and weaknesses. Develops winning strategies or qualifies out if over matched. Evaluates and protects margin desired whilst ensuring customer achieves outstanding value. Will walk away from unprofitable business unless a compelling business reason not to is articulated. insight2implementation Ltd Page 10
11 Proposing Proposing Linking solutions to customer drivers Differentiating Managing expectations Proposing to advance Presents solutions that are not linked to customer s business drivers. Sells same or trusted solutions on features even if they do not meet the customer s needs. Makes no attempt to answer the question Why? Uses ambiguous language around what will be delivered resulting in customer doubt or disappointment. Oversells, misrepresents. Fails to make customers responsibilities for delivering the solution explicit. Makes proposals with no clear advance or decision from customer Makes explicit links between the value to customer (business drivers, personal wins and risks) and the suggested solution. Takes ever opportunity to build credibility of tabled solution and own organisation, differentiating by marrying customer desired value and own organisations advantages over competition (edges) e.g. sources of differentiation, points of difference, USP s etc. Unambiguously defines what will be delivered when and by whom. Explicit about agreeing with the customer how success will be measured and that the delivery of the benefits is the responsibility of the customer. Ensures each interaction with the customer result in some form of advance. Proposes in a way that the beliefs, knowledge and information the customer requires to progress are developed / clearly communicated. insight2implementation Ltd Page 11
12 Negotiating Negotiating Establishing position Achieving mutually acceptable agreements Adapting style Reaches non-profitable agreements. Offers discounts and concessions when pressured. Establishes win/lose or lose/win agreements as a norm. Uses one style in all situations. Too aggressive and directive or too accommodating. Clear about position and walk away point. Identifies what concessions can be safely traded never makes a concession without gaining something in return. Always prepares a second best alternative. Protects customer value and own organisations margin in negotiations, attempts to find agreement that is acceptable to all parties. Prepared to walk away from the table rather than be pressured into accepting unprofitable or high-risk business. Clear on own position, anticipates customer s position and trade-ables. Adapts negotiation style to fit the context and personalities involved. Assertive or coaching style used at the right time. insight2implementation Ltd Page 12
13 Competency Ratings Poor Inferior: less than adequate, or below average in quality or condition lacking skill: below average in skill or ability Inconsistent Demonstrates capability but can be variable and unpredictable in application Competent Able: having enough skill or ability to do something to the desired level Adequate: good enough or suitable for something Expert Skilled or knowledgeable person: somebody with a great deal of knowledge about, or skill, training, or experience in, a particular field or activity Role model Exemplar / somebody to be copied: somebody who is regarded as somebody to look up to and often seen as an example to emulate insight2implementation Ltd Page 13
14 Sample Competency Table Planning & Preparing Planning and organising Setting clear advance objectives Researching Following up Relationship Management Building rapport Influencing Assertiveness Building customer support Guiding Dialogues Following the customers line of interest Guiding dialogues Confirming understanding Summarising actions and commitment Responding to objections Exploring & Developing Needs Exploring customer situation Surfacing issues and opportunities Developing needs Articulating customer risks Responding to personal needs Quantifying value Developing customer commitment Communication Verbal fluency Active listening Questioning Presenting insight2implementation Ltd Page 14
15 Written communication Opportunity Selection Evaluating opportunities Matching capabilities to customer requirements Surfacing competitive factors Focus on profit Proposing Linking solutions to customer drivers Differentiating Managing expectations Proposing to advance Negotiating Establishing position Achieving mutually acceptable agreements Adapting style insight2implementation Ltd Page 15
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