Sales Influence Presentation June 2015 07062015

Influencing Stakeholders in Procurement4th Annual Public Sector Procurement Asia Exchange

Madeleine Tewes

Apsiz Services (Hong Kong) Ltd


Objectives

Applying success factors for Sales Professionals

to Procurement Professionals

Understanding key concepts related to

influence

Implementing common influencing models

Practice implementing these success factors,

key concepts and models


Agenda

• Introduction

• Success factors of Sales Professionals

• Key concepts of influence

• Influencing stakeholders

• Conclusion


Introduction


IntroductionAbout Apsiz

• Procurement consultancy supported by a global network of best-in-class partners

• Offices in the UK and Hong Kong and clients around the world

• Dedicated to helping clients transform their commercial performance through

• Managed Sourcing

• Contract and Supplier Management Services

• Category Strategy Development

• Supplier Financial Risk Assessments

• Supplier Identification

• Business Performance Analysis

Managed Services

• P2P Process Reviews

• Savings Identification and Delivery

• Procurement Process Reviews

• Contract Compliance Reviews

• Procurement Skills Assessment and Training – eLearning and face-to-face

• Permanent and Interim Procurement Resources

Consultancy and Advisory Services

• Spend Analysis

• Spend Recovery

• Category Management Toolkit

• Commercial Intelligence Hub

• Sustainability Analysis

• eSourcing Tool/ eAuctions

• Complex Tender Evaluation

• Contract and Supplier Management

Technology Solutions


IntroductionBackground

• 4th Annual Public Sector Procurement Asia Exchange

• Recent spotlight on the integrity of Government procurement processes

• Governments globally are driving towards more common and smarterprocurement systems

• Increasing need to develop more effective ways of engaging the stakeholders


IntroductionExercise

• Think about a person in Procurement who successfully influences their stakeholders

• Some examples• Helen Clegg: Knowledge Director for the Procurement & Analytic Solutions’

Practice of A.T. Kearney• Cindy Dunham: General Manager of Global Process Architecture at Rio

Tinto• Marc Engel: Chief Procurement Officer at Unilever• Past boss or colleague

• Write down the factors/ reasons/ tricks that you think made them successful

• Do you currently utilise these factors/ reasons/ tricks to successfully influence yourstakeholders?


Exercise ResultsFactors/ reasons/ tricks that made those procurement professionals successful in influencing their stakeholder

• The factors/ reasons/ tricks you think made them successful include:• Use of emotion (greed, ego, fear) to get the desired decision• Logical business case• Vision• Good/ right decision is requested• Have the experience• Explain the benefits• Use facts• Present a win-win scenario• Fits into the business strategy


Exercise ResultsThe factors/ reasons/ tricks that you think made them successful but you don’t utilise

• The factors/ reasons/ tricks to successfully influence your stakeholders that you areyou not using enough include:• Emotion – start/ stop at fact/ just focus on tangibles• Facts – not enough preparation/ not available• Tailoring influence tactic – need to learn from past experiences


Success Factors for Sales Professionals


Success Factors for SalespeopleIntroduction

*Herb Greenberg, Harold Weinstein and Patrick Sweeney. How to Hire & Develop Your Next Top Performer: thefive qualities that make salespeople great. New York: McGraw-Hill, 2001, pp. 9.

Empathy

Focus

Responsibility Optimism

Ego-drive


Success FactorsEmpathy

Ability to identify and react accurately to the

behaviour and emotions of customers

Identify other people’s feelings/frustrations objectively without necessarily agreeing

with them

Ability to establish rapport easily and put

people “at ease” in their presence

Good listening skills

Curiosity—asks questions that require more than a yes or no

answer


Success FactorsFocus

Goal-orientated and have the ability to articulate their

goals clearly and assign timelines

Do not depend upon the sales manager for direction

or guidance

Possess the self-discipline and conscientiousness to

service customers and develop the business from

that customer on successive sales calls

Clear, direct answers to questions

Balance with empathy so the person listens and

identifies with the customer while keeping focused on translating their goals into solutions for the customer


Success FactorsResponsibility

Possess an appropriate sense of urgency, as

exemplified in the need to see the sale progress and to

bring situations to a resolution

Anticipate consequences and evaluate alternatives

before acting

Tend to not have excuses for a situation and take action when situations

require action

Maintain a positive outlook towards situations and

people—tends to admire, and not to criticize a lot

Can accept valid criticisms and suggestions for

performance improvement


Success FactorsOptimism

Initiative and the ability to focus on

opportunities and solutions

Focus on what can be done as opposed to

what cannot be accomplished

Refusal to allow rejection on one sales

call to affect their ability to perform on

the next

Persistence in forcing an important issue even

in the face of possible rejection


Success FactorsEgo-Drive

Enjoy competitiveness and constantly look for

ways to measure themselves against their

peers

Possess leadership qualities and is not

afraid to exert pressure to influence others

Enjoy sales as a profession for it

provides personal gratification and ego

enhancement

Determined to win and willing to take risks


Success FactorsHot Tips from the Professionals

“Our company’s best sales tip is building a great relationship with customers. We

believe in becoming a trusted partner in business and with that, the customers will

keep coming back. If you go above and beyond, customers will also tell friends and colleagues. Your network will grow. ”Deborah Sweeney CEO, MyCorporation

“Depending on where we sit around the business table, we see the same things differently. Appreciate the differences.”

Babette Ten Haken management and business coach

‘’Speak to your clients in a language they understand. Talking over heads never wins

business.” Stephanie Onken Marketing Coordinator, The Hayzlett Group

“Today’s self-educating buyer doesn’t want to be sold. They want to make the right

buying decision. Your job is to help them complete their education in a manner that

favors your product or service. “ Tom Martin Founder, Converse Digital

“I believe that many sales pros are too focused on themselves and not their

prospect. Reaching their own goal is top priority rather than adding value for their prospect.” Paul Alves CEO, AG Sales works


Success FactorsHot Tips from Clients and Colleagues

Understand your audience and tailor your

influencing tactic to them

Be factual above anything else

Have some standard approaches you can use in situations you are in regularly – reflect and

refine as you go

Win-win is the only way

Don’t get frustrated with ‘difficult stakeholders’ –just keep trying different approaches until you find

the one that works

Brand your procurement function and stay in

character – are you fairy godmothers or the book

keepers


Influencing Skills


Influencing SkillsKey concepts: Definitions

• Power is defined as a persons ability to influence others

• Influence is what managers have when they use power is such a waythat it results in a behavioural response from their stakeholders

• Influence can be defined as a force one person exerts on someone elseto induce a change in their behaviours, opinions, attitudes, goals, needsand values


Influencing SkillsKey concepts: 7 Types of Power

• Seven types of powerSource Type Influence on Others

Coercive Power Position The ability to impose sanctions or punishment to gain compliance

Reward Power Position The ability to provide rewards or recognition to gain compliance

Legitimate Power Position The right to influence the activities of others based on job title or position

Expert Power Personal Respect gained based on skills, experience or expertise

Referent Personal Positive personal traits or integrity

Information Power Position and Personal Possession of or access to, valuable information

Connection Power Position and Personal Access to others who can provide rewards or sanctions


Influencing SkillsGoals

• You influence your stakeholder to do what you need them to do, i.e.amend the Scope of Work, agree to a Contract Award or even just take ameeting with you

• Your stakeholder feels:• Involved in the process• Valued and respected• Assured they are not being manipulated• Committed to the task• Confident the task/ change can benefit them


Influencing SkillsModel One: 5 Steps

Tell the impact

Understand the

challenge

Share a solution

Reminder of benefits

Gain agreement


Influencing SkillsExercise

Tell the impact

Understand the

challenge

Share a solution

Reminder of benefits

Gain agreement

• Break into groups of three• One buyer, one technical

stakeholder and one observer• Buyer is to follow the 5 Step

Model to influence thetechnical stakeholder to agreea contract award decision

• Observer is to providefeedback


Exercise ResultsFive Step Model

• The additional factors/ reasons/ tricks that can help you be successful at influencingyour stakeholders that were identified based on practicing the 5 Step Model include:• Questioning the challenge the other person is presenting to make sure you

understand what problem needs to be solved• Asking what the other person wants and being prepared to discuss• Making several suggestions that they can choose from• Being

• Optimistic• Flexible• Persistent• Patient


Influencing SkillsModel Two: Tactics

1. Rational Persuasion

• Logical arguments and factual evidence

• Expert Power

2. Inspirational Appeal

• Arouse enthusiasm by appealing to the values, ideals and aspirations of your stakeholders

• Referent Power



3. Consultation

• Need your support so will seek your assistance or modify your proposal to get it

• Reward, Coercive or Legitimate Power

4. Ingratiation

• Get you in a good mood before you ask for something

• Reward Power



5. Exchange

• Quid Pro Quo

• Reward Power

6. Personal Appeal

• Appeals to your feelings of loyalty

• Referent or Reward Power

7. Coalition

• Get someone else to persuade you to comply

• Use someone else’s support as reason for you to comply

• Coercive Power


Influencing SkillsExercise

• Break into pairs

• Work through each tactic (Rational Persuasion, Inspirational Appeal,Consultation, Ingratiation, Exchange, Personal Appeal, Coalition) by oneperson trying to use it to influence the other person to agree to a Scopeof Work with a reduction in technical capability to fit the budget

• Agree which is the most effective and discuss why


Exercise ResultsTactics

• The tactics that were most effective included:• Rational persuasion• Consultation• Personal Appeal

• Some of the additional factors/ reasons/ tricks that can help you be successful atinfluencing your stakeholders that were identified in this activity included:• Use scenarios• Educate your stakeholders about the cycle time procurement needs and about

the golden triangle (Price, Time and Quality)• Be positive• Ensure you have a clear RACI (Responsible, Accountable, Consulted, Informed)• Provide alternate views and ideas


Influencing SkillsModel Three: Push/ Pull

• Push tactics raise your status but reduce your stakeholders

• Pull tactics reduce your status but increase your stakeholders

Push

Pull


Influencing SkillsModel Three: Push/ Pull

Push behaviours

• Statements of fact, making speeches

• Statement about objectives

• Demands for agreement on specifics

• Demands for commitment

• Expressions of opinion

Pull behaviours

• Asking about values and principles

• Questions about needs and objectives

• Probing for feelings and perceptions

• Asking for explanations and examples

• Listening and following up


Conclusion

• Successful Sales Professionals have five traits which Procurement Professionals canuse:• Empathy• Focus• Responsibility• Optimism• Ego-drive

• Influence is what managers have when they use power is such a way that it results in abehavioural response from their stakeholders

• Three models have been suggested to help you influence your stakeholders• 5 Step Model• 7 Tactics• Push/ Pull


ConclusionObjectives Review

Applying success factors for Sales Professionals

to Procurement Professionals

Understanding key concepts related to

influence

Implementing common influencing models

Practice implementing these success factors,

key concepts and models

Sales Influence Presentation June 2015 07062015

Documents

Transcript of Sales Influence Presentation June 2015 07062015