Developing a Solution-Centric Organization a Solution... · 16/09/2009 · Product- to...

September 16, 2009

© SALES PERFORMANCE INTERNATIONAL

Developing a Solution-Centric Organization

16-Sep-09 | © 2009 SALES PERFORMANCE INTERNATIONAL – CONFIDENTIAL | PAGE 2

www.spisales.com | www.solutionselling.com

Changing your DNA

Human DNA is with you forever and cannot be changed

Sales cultures and company DNA can be changed

… the challenge is great

… requires systemic transformation

… it requires a champion

… the salesperson is not always the problem

http://www.spisales.com/

http://www.solutionselling.com/



Why transform your DNA?

A fundamental shift in the marketplace…

…a more difficult selling environment

…increased competition

…products become commodities

…customers demand value and require solutions

Lack of results

…declining revenues

…losing market share

…lower profitability





The Goal

Sustainable revenue growth

through

sales performance improvement





The Problem

You clearly see the value that your

product and service offerings

bring to the market … but

your customers aren’t buying enough





Value Perception Gap

73% of CMO’s say value messages not reaching customers

90% of sales people don’t position value effectively

70% - 80% of marketing materials unused

Sources: CSO Insights, Sirius Decision, Aberdeen & Primary Intelligence

COMPANY

Value PropositionVALUE PERCEPTION GAP

CUSTOMER

Value Perception

DECISION TO SELL DECISION TO BUY





Six Typical Reasons

1. Value Framework and Messaging (define)

Positioning and messages not aligned with market needs

2. Go-to-Market Approach (target)

Segmentation and channel strategy not calibrated with actual value proposition

3. Communications Alignment (communicate)

Marcom and lead generation not aligned with sales conversations

4. Management and Support Systems (reinforce)

Lack of consistent skills and process reinforcement vehicles

5. Process and Methodology (codify)

No formal sales process alignment with customer buying process

6. Individual Skills and Knowledge (engage)

Absence of fundamental skills and knowledge at the individual level





Bridging the Value Perception Gap

Market Alignment Drivers(“Above the Funnel”)

Sales Execution Drivers(“In the Funnel”)

COMPANY

Value PropositionCUSTOMER

Value Perception

Value

Framework

& Messaging

Go-to-Market

Approach

Communications

Alignment

Management

& Support

Systems

Sales Process

&

Methodologies

Individual

Skills &

Knowledge

DECISION TO SELL DECISION TO BUY

Sales Performance Improvement Framework™





Sales Performance Improvement FrameworkTM

Marketing Alignment Drivers

(“Above the Funnel”)

Sales Execution Drivers

(“In the Funnel”)

Value

Framework

& Messaging

Go-to-Market

Approach

Communications

Alignment

Management

& Support

Systems

Sales Process

& Methodologies

Individual

Skills &

Knowledge

Problem/Solution Mapping

Solution Messaging Platform

Defensible Differentiators

Market & Customer Segmentation

Channel & Alliance Strategy

Financial Expectations

Product Marketing

Marketing Communication

Lead Generation

Sales Linkage (Sales Tools)

Sales Management

Recruiting & Organizational Design

Compensation & Performance Management

Enabling Technologies

Culture & Leadership

Sales Process

Territory Planning

Account Planning

Opportunity Planning

Sales Execution

People Skills

Selling Skills

Situational Knowledge

Capabilities Knowledge





Problem/Performance Driver Mapping

Marketing Alignment Drivers Sales Execution Drivers

Lack of qualified leads

Difficulty positioning value and differentiating

Unable to access power and sell to executives

Late into opportunities and RFP driven

Wide variation in quota attainment

Lengthy sales cycles and “no decisions”

Frequent pursuit of unqualified opportunities

Difficulty selling complex offerings/major opportunities

Failure to realize sales potential in major accounts

Wide variation in forecast accuracy

Value

Framework

& Messaging

Go-to-Market

Approach

Communications

Alignment

Management

& Support

Systems

Sales Process

& Methodologies

Individual

Skills &

Knowledge





The Sales Performance “Health Check”

Market Alignment Drivers




Problem/ Solution Mapping






Product Marketing


Lead Generation


Sales Management





Territory Planning

Account Planning and Management

Opportunity Planning and Management

Process Integration

People Skills

Selling Skills



Urgency of Action Legend

Low

Medium

High

Value

Framework

& Messaging

Go-to-Market

Approach

Communications

Alignment

Management

& Support

Systems

Sales Process

& Methodologies

Individual

Skills &

Knowledge

VALUE OF OFFERING CUSTOMER PERCEPTION OF VALUE





Sales “ecosystem” Imbalance

Above the Funnel

In the Funnel

Product-Centric

Ecosystem

Organization defines itself by the products it makes

versus the problems it solves.

– Claims to provide solutions

Marketing continues to propagate product-centric

“air cover”

R&D/Product Development launches products vs.

problems

HR recruits product-centric sales people

IT systems and processes are designed to count

products sold vs. problems solved“Sell Solutions”

Perception of the company and its

offerings doesn’t align with the

sales approach

Not connected or Misaligned





Organizational Involvement Mapping


Marketing

Product Marketing/Management

Sales Management

Sales

Channel Management

Human Resources

Finance

IT

Executive Team

Value

Framework

& Messaging

Go-to-Market

Approach

Communications

Alignment

Management

& Support

Systems

Sales Process

& Methodologies

Individual

Skills &

Knowledge

Owner Owner

Owner Owner

Owner

Owner

Supporting Role

Owner

Key Participant

Supporting Role

Supporting Role

Key Participant

Key Participant

Key Participant

Key Participant

Need to Know

Key Participant

Key Participant

Supporting Role

Key Participant

Supporting Role

Supporting Role

Need to Know

Need to Know

Need to Know

Need to Know

Supporting Role

Key Participant

Supporting Role

Owner Primary accountability for key activities/outputs or this driver

Key Participant

Supporting Role

Need to KnowKey participant in key activities/outputs of this driver

Provides some level of support for key activities/outputs of this driver

Needs to be informed to make appropriate decisions

Supporting Role Supporting Role

Key Participant

Supporting Role

Key Participant

Key Participant

Supporting Role

Supporting Role

Key Participant

Need to Know Need to Know

Supporting Role

Supporting Role

Supporting Role

Key Participant

Key Participant




www.spisales.com | www.solutionselling.comS

up

po

rt

Alig

nm

en

t

Product- to Solution-Centric Transformation


Value

Framework

& Messaging

Go-to-Market

Approach

Communications

Alignment

Management

& Support

Systems

Sales Process

& Methodologies

Individual

Skills &

Knowledge

R&D /

EngineeringDelivery

Services

Customer

Service

Finance

HR

IT

Are we creating solutions

that address problems that

exist in the market?

Are we capable of implementing

solutions that solve business

problems, not just combining

products?

Do all our customer service

capabilities help customers to

solve their problems, rather

than just answering questions

about individual product

offerings?

Are we capable of supporting and

leveraging the differences in

Finance between delivering

solutions, as opposed to

delivering products?

Are Finance personnel solution-

centric in the way in which they

support and interact with internal

customers?

Do our HR practices and

processes fully support a solution-

centric business, end-to-end?

Are HR personnel solution-centric

in the way in which they support

and interact with internal

customers?

Have we developed enabling technologies

to fully support solution-centric business

processes across the organization?

Are IT personnel solution-centric in the way

in which they support and interact with

internal customers?

Service DriversInnovation Drivers

Voice of the

Customer

Are we actively listening

for customer problems

and issues?





THINKDIFFERENTLY

Define yourself by the problems you solve

versus the products you make

Align all aspects of marketing execution

with a well defined problem / solution framework

Provide comprehensive support for solution-

centric disciplines

Apply Solution Selling disciplines across all sales

channels (direct and indirect)

COMMUNICATEDIFFERENTLY

ENGAGEDIFFERENTLY

REINFORCEDIFFERENTLY

Becoming Solution-Centric Requires Four Fundamental Transformations





A Practical Framework to Transform for Product-Centric DNA

THINK COMMUNICATE REINFORCE ENGAGE

Value

Framework

& Messaging

Go-to-Market

Approach

Communications

Alignment

Management

& Support

Systems

Process &

Methodology

Individual

Skills &

Knowledge






Example - Sales Performance “Health Check”

Market Alignment Drivers




Problem/ Solution Mapping






Product Marketing


Lead Generation


Sales Management





Territory Planning

Account Planning


Sales Execution

People Skills

Selling Skills



Overall Health Check Legend

Exceptional health Below average health

Above average health Critical condition

Average health

Urgency of Action Legend

Low

Medium

High

Value

Framework

& Messaging

Go-to-Market

Approach

Communications

Alignment

Management

& Support

Systems

Sales Process

&

Methodology

Individual

Skills &

Knowledge

VALUE OF OFFERING CUSTOMER PERCEPTION OF VALUE





5 Step Diagnostic & Remediation Approach

PROGRAM AND CHANGE MANAGEMENT

ReinforceBehavior

ImplementChange

BlueprintCourse of Action

PrioritizeOpportunities

DiagnoseProblems





High-Level Assessment

Questions





Value Framework & Messaging

Problem/Solution Mapping

Are market needs clearly understood in customer terms and by specific buying sponsor?

Is there clear problem->impact->cause->solution linkage for all customer problems and needs addressed?


Are customer problems and needs the foundation of messaging platform?

Can customers readily relate to problems and needs addressed?

Can customers easily trace linkage from problems to solutions?


Are proprietary, comparative, and holistic differentiators formally defined?

Are competitive traps defined and addressed?

Are offerings differentiated on value vs. price?





Go-to-Market Approach

Market and Customer Segmentation

Does market segmentation align with value framework and messaging platform?

Are problems and needs of specific buying sponsors aligned with value framework and messaging platform?

Has ideal customer profile been defined?

Channel and Alliance Strategy

Does channel strategy “fit” with value proposition and segmentation approach?

Do alliance partners fulfill capabilities gap within value proposition?


Are key performance indicators realistic by market segment and channel?

Do key performance indicators drive appropriate behavior?





Communications Alignment

Product Marketing

Do product priorities and definitions have clear linkage to value framework and messaging platform?

Marketing Communications

Do all marcom channels and mediums reflect value framework and messaging platform

Lead Generation

Do lead generation vehicles align with value framework and messaging platform?

Are mechanisms in place to generate qualified leads on a consistent basis?

Have lead generation roles & responsibilities been integrated between Marketing and Sales?


Is messaging platform translated into specific sales messages/conversation templates?

Are differentiation and value justification tools in place for sales organization?





Management & Support Systems

Sales Management

Are sales managers effective mentors to the sales force?

Do management practices reinforce desired sales force behavior?

Is the sales forecast accurate?


Are recruiting practices designed to attract and hire the right people?

Is the organization “wired” to achieve optimal performance?


Do compensation and reward structures reinforce desired behavior?

Are performance standards communicated and measured?

Are poor performers removed?


Do technology solutions enhance sales processes?

Is the sales force equipped with the information required to sell?


Does the culture reflect the desired market positioning?

Is the leadership team qualified to lead?





Sales Process & Methodology

Process Integration

Are selling processes aligned with customer buying processes?

Territory Planning

Are the highest potential prospects understood and prioritized first?

Account Planning

Is there a formal approach to identify and act on potential opportunities within established accounts?


Are sales opportunities qualified in a structured fashion?

Are sales process stages formally defined, understood, and followed?

Sales Execution

Is a sales execution methodology in place that enables your sales team to perform each step within the sales process, including a definition of the specific activities in each step, and how they will be accomplished?





Individual Skills and Knowledge

People Skills

Do sales people have fundamental personal skills to build rapport with customers?

Selling Skills

Do sales people have fundamental skills to diagnose customer problems and navigate the sales process?


Do sales people have adequate knowledge of customer marketplace and challenges to converse credibly with buying sponsors?

Capability Knowledge

Are sales people able to link customer pains and needs with specific solution capabilities?





Methodology Overview





Diagnose

Purpose:

Determine the gap between the current state

and a more desirable future state

Major Activities:

Conduct interviews, surveys, focus groups

and review of available materials to

understanding existing practices

Identify fact-based and anecdotal root causes

for current state issues

Determine future state vision

Determine baseline and end-game key

performance indicators (KPIs)

Deliverables:

Quantitative current state assessment and

future state vision across various diagnostic

dimensions

Qualitative summary of findings, observations

and recommendations

Assessments are customized across

multiple sales performance dimensions,

based on the engagement scope:

Holistic assessment across all dimensions

By problem dimension (Skills, Process, Support,

Communication, Go-To-Market, Value)

By problem sub-dimension (e.g., Selling Skills)

0

1

2

3

4

5Skills

Process

Support

Communication

GTM

Value

Current State

Future State

Ideal





Prioritize High

Low High

Valu

e

Effort

(Begin Now)

(Kill) (Kill Quickly)

(Phase In)

OPPORTUNITY A

OPPORTUNITY B

OPPORTUNITY C

OPPORTUNITY D

OPPORTUNITY E

OPPORTUNITY F

OPPORTUNITY G

OPPORTUNITY H

In addition to the time, resource and

financial commitments involved, level of

effort evaluations typically consider the

organizational impact and level of risk

associated with the various improvement

opportunities

Purpose:

Categorize improvement opportunities based

on value and level of effort

Major Activities:

Identify improvement opportunities that will

bridge the gap between current & future states

Gain consensus on value and effort evaluation

criteria

Prioritize opportunities that create the most

value with the least amount of effort

If required, develop an ROI justification for the

opportunities. Develop business cases for

significant effort opportunities

Deliverables:

Value vs. Effort matrix

ROI justifications





Blueprint Project

TimePhase I Phase II Phase III

Project G

Project A

Project H

Project D

Project E

In many cases, a Program and Change

Management Office (PCMO) will be

established to:

oversee the successful implementation of the

various projects, and

prepare the organization to receive the

changes associated with the projects

Purpose:

Develop a course of action for the approved

improvement opportunities

Major Activities:

Develop a detailed implementation plan

(scope, time and resource requirements) for

approved implementation opportunities

Develop a project charter and assign a project

sponsor to each opportunity.

Commission implementation teams

Implement project management procedures

(e.g., status reporting, issues management)

Develop a change management plan

Deliverables:

Implementation plan

Change management plan





Implement

Solution components are typically

implemented across multiple strategic,

operational and tactical dimensions.

Alignment between the various dimensions

significantly improves the probability that the

solution will result in sustainable performance

improvement.

Scope Resource 1Q 2Q 3Q 4Q

1 Project A

1.1 Diagnose Tm A

1.2 Prioritize Tm A

1.3 Blueprint Tm A & B

1.4 Implement Tm A & B

1.5 Reinforce Tm B

Purpose:

Implement the change required to achieve the

future state vision

Major Activities:

Build the solution components that remediate

current state issues. Example solution

components include: strategies, reward

systems, processes, enabling technologies,

training materials, etc.

Pilot the solutions with a control group … then

re-calibrate the solution as necessary

Commission implementation teams

Roll out the solutions in accordance with the

full organizational scope of the project

Execute the change management plan

Begin collecting key performance indicator

(KPI) data

Deliverables:

Implemented solutions





Reinforce

What can be observed can be measured; what

can be measured can be managed; what can

be managed can be improved

1

2 43

5

People Skills

Executive Dashboard – Baseline vs. Current

1

2 43

5

Selling Skills

1

2 43

5


1

2 43

5

Capability Knowledge

Purpose:

To ensure that desired behaviors and results

are reinforced through measurement and

continuous improvement

Major Activities:

Monitor baseline vs. current key

performance indicators (KPIs); assign

accountabilities

Reward desired behaviors & results;

remediate undesirable behaviors & results

Re-calibrate and re-implement solution

components as required

Communicate successes

Implement continuous improvement &

reinforcement mechanisms

Deliverables:

Baseline vs. Current evaluation

Continuous improvement plans





Taking Meaningful Action

Don’t assume the sales person is the only problem

Invest in a sales performance “health check” to objectively determine the real causes of performance problems

Confront this question honestly:

“Is our DNA still product-centric?”

Apply a rational framework to understand the degree to which your organization is either product-centric or solution-centric

Consciously decide, as an organization, to transform and create a roadmap for a solution-centric transformation

Senior-most executives (not just sales) must make solution selling the company’s mission if they are to be successful (and profitable)

Re-calibrate key aspects of how you think, communicate, engage, and reinforce across your organization





For More Information…

Visit www.spisales.com to access a library of white papers including:

From Product-Centric to Solution-Centric and

Sales Performance Improvement Framework




Developing a Solution-Centric Organization a Solution... · 16/09/2009 · Product- to...

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