Creating Leading Value

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2 Creating Leading Value Your Responsibilities Create and protect a culture of value creation Build and sustain a value creating sales force Build value creating salespeople 38

3 Mindset Skill Set Tool Kit

4 Culture 40

5 A Culture of Value Creation Your Responsibilities Be hungry. Not starving. [a laser- like focus on yourpipeline] Put value before price. [how I increased margins] Teach and enforce your business model. [discipline of market leaders] 41

6 No plan of operations survives the first collision with the main body of the enemy. 42

7 Moltke had no faith in systems of any kind. His system consisted of a pattern of thought rather than a series of procedures to be followed or successive tactical acts to be performed under all circumstances. Moltke placed his faith in the ability of Prussian officers to use their education and judgment to adjust to concrete situations as they came up. 43

8 He did this by leading his army commanders primarily through directives (Weisungen) rather than detailed orders, although he was quite prepared to issue very detailed and strict orders if necessary. Moltke was willing to allow subordinate commanders to deviate from the details of his directives so long as their actions were consistent with his overall concept. Like almost everything else in Moltke's approach, however, this was dependent upon the situation and the personalities involved. 44

9 Coaching Goals Enables Learning Improved Performance Commitment to Ownership of Outcomes Commitment to Take Action Produce Needed Results Actively Applied to Future

10 Non Directive Listening Ensuring Understanding Summarizing Asking Questions Refocusing Making Suggestions Making Suggestions Advising Instructing Telling Directive 46

11 Non Directive Formula What outcome do you need to achieve? What options are available to you to achieve those outcomes? What other options or possibilities might also help you to achieve those outcomes? Are there are any resources available to you that you might be able to employ here? Is there anyone s help you might need? 47

12 Why Non Directive? Learning, development and growth Builds resourcefulness Makes player an active participant in resolving their own issues Gets to Why? Helps identify root causes and potential solutions. More compassionate, and more effective Massively improves buy- in Expands possibilities 48

13 Using Directive Coaching Is sometimes necessary! Prevents serious errors. Use when the salesperson lacks the experience to understand options. Provide Context! Tell them why you are making this choice. Always ask permission to direct. 49

14 Tip 1: Tip 2: Tip 3: Tip 4: Tip 5: Tip 6: Choose the Right Method for the Situation Choose the Best Method for the Person Choose the Best Method for the Outcome Provide Context and Ask Permission to Direct Don t Criticize Ideas. Redirect. Ask Questions 50

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17 Training 53

18 Creating Leading Value Evaluate Your Sales Force Score your sales force on their business acumen and ability to create Level 4 Value right now: Unprepared Poor Good Excellent Less than 25% of the sales force has the necessary business acumen Less than 50% of the sales force has the necessary business acumen 75% of the sales force has the necessary business acumen Over 80% of the sales force has the necessary business acumen 54

19 Creating Leading Value Evaluate Your Sales Force What level of value does your sales force presently create for the majority of your clients? 55

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21 The Periodic Table of Sales Success 57

22 A Culture of Value Creation Your Responsibilities Train Value Creating Skills Business Acumen and Situational Knowledge Understandthe Need to Create Value Needed: Experiences Needed: Time to develop through coaching Coach Value Creating Behaviors Identification of needs Call Prep Opportunity Prep 58

23 Leading a Value Creating Sales Force CADENCE 59

24 Pipeline Meeting (Group) Frequency: 1 st Week of the Month Outcome: Project deals to close in reporting period prior to commit. Meeting Agenda Verify accuracy of pipeline Identify Stalled Opportunities Identify at- risk pipelines (sales reps with pipeline x% lower than required) 60

25 Team Meeting (Group) Frequency: 1st week of the Month Outcome: Review and/or set team goals and align resources. Meeting Agenda: Review KPIs YTD Quota %, Wins, Pipeline, Gap, Next Quarter Pipeline, Next Quarter Gap Leaderboard New Opportunities Wins Opportunities Top 5 for Current Quarter Top 5 for Next Quarter Set team direction and goals 61

26 Development Huddle (Group) Frequency: Weekly Outcome: Growth and Development Meeting Agenda: Focus of meeting and learning outcomes Salesperson teaches outcome (opportunity, account, skill, or tool) Team questions or ideates Application to current or future opportunities or sales interactions 62

27 Planning and Goals (1:1) Frequency: Quarterly Outcomes: Project opportunities that will close in the current period and strategize on deal closing events and strategies. Meeting Agenda: Review KPIs: (pipeline, change, number of opportunities) Review individual progress and successes Review top 5 opportunities Review top 5 opportunities for next period Help salesperson set meaningful, results- oriented goals Determine actions for next review 63

28 Forecast Meeting (1:1) Frequency: Weekly Outcomes: Project opportunities that will close in the current period and strategize on deal closing events and strategies. Meeting Agenda: Review KPIs: (pipeline, change, number of opportunities) Opportunities Test top opportunities Verify accuracy of forecast Determine actions for next review 64

29 Pipeline Meeting (1:1) Frequency: Weekly Outcomes: Proactively ensure pipeline growth and management by ensuring prospecting and opportunity acquisition. Meeting Agenda: Review Personal KPIs (current pipeline, change, next quarter pipeline, change, ability to reach quota) Opportunities Review top 5 opportunities Review top 5 wallet share opportunities Review top 5 prospecting opportunities Determine actions for next review 65

30 Creating Leading Value Be Hungry. Not Desperate Which of the following transactional behaviors do members of your sales force presently display? o Avoiding difficult conversations, especially around price o Not taking initiative o Not basing price on value created o Not discovering the client s strategic business initiatives o Discounting pricing o Waiting for opportunities or o Attempting to match or beat requests for proposal competitor s price o Not leading with value 66

31 Creating Leading Value Be Hungry. Not Desperate Which of the following transactional behaviors do members of your sales force presently display? o Skipping stages of the sales process more challenging decision- makers o Exhibiting self- oriented behaviors o Leading with product, service, or solution o Avoiding accountability o Presenting too soon o Only calling on receptive contacts and avoiding o Failing to ask for commitments 67

32 Creating Leading Value Be Hungry. Not Desperate Does your sales management cadence include: o Quarterly Sales Team Meetings o Individual pipeline reviews o Weekly Team Meetings o Individual opportunity reviews o Weekly 1:1 Meetings o Weekly ride- a- long meetings o Weekly Team Huddles 68

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34 Creating Leading Value Be Hungry. Not Desperate How much coverage does your pipeline presently provide you? This is the percentage over and above what you need to win in new business in a quarter 0% 10% 11% 25% 25% 50% > 50% 70

35 Capture 71

36 Value Propositions Answer three questions: Why should I change? Why should I take action now? Why should I choose you and your solution? 72

37 Pass Seven Tests: Value Propositions Is it Different? Is it Compelling? Is it Tailored? Is it Measurable? Is it Time- Bound? Is it Easy to Remember? Is it Defendable? 73

38 Creating Leading Value Evaluate Insights What are the three or four industry trends that are right now having the greatest impact on your clients? What challenges provide a compelling case for change now? 74

39 Creating Leading Value Evaluate Insights What are the political, economic, cultural, and technological changes that are going to impact your client s business in the future? What changes will provide challenges and opportunities that will require your client changes in the near future? 75

40 Creating Leading Value Differentiators What are the key differentiators that create a defining difference between you and your competitor s offerings? How do these differences make a difference for your clients? 76

41 Creating Leading Value Evaluate Your Sales Force What percentage of your sales force could convincingly share your differentiation strategy in a meaningful way with your prospective clients? Poor Fair Good Excellent 77

42 Creating Leading Value Evaluate Your Sales Force What percentage of your deals do you typically discount in order to win new business? What are the primary reasons you discount your business now? 78

43 Leverage Lost Revenue Lost Opportunities Lost Position Lost Shareholder Value Lost Market Share Lost Profit Lost Reputation 79

44 Increased Perception Customer Perceived Value Customer Perceived Benefits minus Customer- Perceived Price Three Strategies o How do we increase the perceived benefits? o How do we decrease the perceived price? o (How do we increase perception of risk?) 80

45 Exercise: Perception What makes you worth paying more to obtain? Define the difference that makes the difference in results? How do we increase the perception of value? How do we decrease the perception that we cost more? How do we increase the perception of risk? 81

46 Sharpen Value. Not Pencils Don t agree to a price negotiation before you push back with value creation. Don t agree to a price negotiation until you first justify your price. Don t agree to a price negotiation until you leverage relationships. Don t agree to a price negotiation until you provide evidence of your justification. 82

47 Purchasing Strategies Get immediate price reductions. Secure longer- term price reductions. Select 1 st Tier Providers No single source without huge price reduction, fixed pricing, long term contracts. 83

48 Purchasing Tactics Train purchasing agents in tactics. Let RFPs. Establish very low price targets (short term and long term) Study your potential suppliers. Play suppliers against each other. 84

49 Purchasing Themes Blame someone (market, competitors, etc.) Use vendor ratings or supplier councils. Suggest exaggerated growth or future orders. 85

50 Purchasing Negotiations Goal: Long- term contracts Make rules Eliminate variable pricing (supplier costs) Focus on price reductions, regardless of price. Extract price concessions through multiple negotiations, midnight hour. Leverage speed (compress time, increase pressure) 86

51 Purchasing Negotiations Make connections with suppliers and purchasing. Involve supplier upper management to extract greater concessions. Request detailed cost- profit structure Develop friendships with middle and lower level supplier contacts to acquire information. Pressure, Bluff 87

52 Language Long Term Pricing: We understand that you would like to secure long term pricing. We re happy to provide you with a range of rates. It s our obligation to create as much value as possible during each and every engagement, and because every project is different, the results require different investments. Can you share with me the projects we should be working on for you now? 88

53 Language Lower Price Targets I understand that you are trying to secure the best price you can. We understand the importance of cost containment. Is price the most important factor in your decision here, or are there other outcomes that are equally or even more important? What I am afraid of is that you are going to underinvest and put those outcomes at risk. I believe we both missed something here and we are opening up risks that we need to look at together. Does it make sense to reevaluate your needs and minimize any risk? 89

54 Language Multiple Negotiations If successfully agree on the program outcomes and pricing here, will you be prepared and authorized to award this business, or do we need to bring someone else to the table now? 90

55 Language Multiple Negotiations Have we been chosen? We believe that it s premature to negotiate until you re 100% certain that we are the right choice. Once selected, I am 100% confident we ll come to an agreement. Do we have the right solution, or do you have concerns about our solution? Is this contract being awarded on price alone? Or is it more important to choose the right partner and ensure that the outcomes are achieved at the lowest cost even if the price is a little higher? 91

56 Language: Increase Risk Yes, our price is higher. Can I share with you the reason we priced this the way we did? Lowering the investment here will put your project at risk by decreasing the likelihood of getting the outcome, Increasing the time it takes to get that outcome, while Causing you to fall behind in achieving your objectives. We are happy to reconfigure our offering to an agreed upon investment, but we think that doing so dramatically increases your risk. I strongly recommend we move forward with this plan. What do you think? (continued) 92

57 Language: Increase Risk Yes, our price is higher. We ve had three meetings with Jeff Jones. I am certain we have a deep understanding of his needs. Because changing the investment changes the outcomes we discussed with Jeff, I think we need to bring him to the table here. 93

58 Language: Agree and... Yes, our price is higher. And... We are going to use people with more experience, Who are trained in a better methodology, Who are going to complete the work faster, And produce greater results, And help you capture the real value in this product. We feel very strongly that this is the right investment. Can we begin to move forward, or do we need to provide you with something else? 94

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