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The old way of selling is dead! We have known it for some time, but the world’s economy has shown us once and forever that the old days are over – definitively. Sales cycles have become longer, conversion rates are falling, forecasts are becoming unreliable and margins are shrinking. The traditional sales boost plan involves incentives, layoffs, training and technology but overlooks the simple fact that most organizations are a dysfunctional bunch of isolated departments that make it hard for people to perform, let alone work with clients. In the New World of Sales, organizations are client-focused by design and apply smart training and technology to support the structural choices they have made. The New World of Sales takes the concept of a client-focused organization as a starting point for a discussion about ways to overcome sales bottlenecks and to align people, processes and tools. If you are tired of the old recipes and are keen to integrate more sustainable methods for a new world of sales, you are more than welcome to join us and start a new journey.
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VALUE CREATION IN HIGH-PERFORMANCE ORGANIZATIONS
Benny Corvers19 March 2014
3
INC
EPTI
ON
THE ORGANIZATIONAL LIFE CYCLE
TIME
SALE
S V
OLU
ME
GR
OW
TH
MAT
UR
ITY
DEC
LIN
E
* Source: Smith et al. (1985)
4
CLIENT Market, Sell, Design, Produce & Deliver
IN THE BEGINNING, THERE WAS A START-UP
5
CLIENT Market, Sell, Design, Produce & Deliver
IT ATTRACTED MANY CLIENTS
6
CLIENT
LOADS OF CLIENTS, ACTUALLY …
Market, Sell, Design, Produce & Deliver
7
TIME FOR OUR FIRST NEW HIRE!
8
CLIENT
SO ADMIN SUPPORT SHOULD DO THE TRICK FOR NOW
Market, Sell, Design, Produce & Deliver
Admin
9
CLIENT
THEN WE DECIDED TO SPLIT SALES & OPERATIONS
Sales & Marketing
Admin
Design, Production & Transport
10
CLIENT
BUT THOSE DAMN CLIENTS KEPT COMING …
Sales & Marketing
Admin
Design, Production & Transport
11
TIME FOR OUR SECOND HIRE!
12
CLIENT
SO WE ADDED OUR FIRST MANAGEMENT LAYER
Sales & Marketing
Admin
Design, Production & Transport
Sales Management
13
CLIENT
THEN WE SPLIT UP OPERATIONS
Sales & Marketing
Admin
Design
Sales Management
Production & Transport
14
CLIENT
AND WE ISOLATED MARKETING FROM SALES
Sales
Admin
Design
Sales Management
MarketingProduction &
Transport
15
AND WHY NOT CREATE A SPECIALIZED PRESALES UNIT?
Sales
Admin
Design
Sales Management
Production & Transport
Marketing Presales
16
NOW WE NEED SOMEONE TO TACKLE THE COMPLEXITY
Sales
Admin
Design
Sales Management
Production & Transport
Marketing Presales
Operations Manager
17
WHO STARTED BY CREATING TWO MORE UNITS
Sales
Admin
Sales Management
Design TransportMarketing Presales Production
Operations Manager
18
AND ALSO THE SUPPORT DEPARTMENT KEPT GROWING
Sales
Admin
Sales Management
Design TransportMarketing Presales Production
Operations Manager
Invoicing
19
EVEN THE OPERATIONS NOW NEED SUPPORT STAFF
Sales
Admin
Sales Management
Design TransportMarketing Presales Production
Operations Manager
Invoicing Quality Warehouse
20
IN THE END, IT WAS CLEAR WE LACKED LEADERSHIP
21
SO WE ADDED SOME BIG HONCHOS ON TOP
Admin
Design
Sales Director
TransportMarketing Presales
Supervisor
Production
Invoicing Quality Warehouse
CTO
COOCEO
Sales
22
WE ARE NOW LOSING SIGHT OF OUR CLIENT
23
OUR ORGANIZATION HAS BECOME TERRIBLY COMPLEX
24
AND WE ARE ALL LOCKED UP IN OUR FUNCTIONAL SILOS
25
THE END RESULT? WE ARE LOST …
26
SO WHAT HAPPENS IF SALES ARE DOWN?
TEN ‘PROVEN’ RECIPES
#1 Fire sales reps
#2 Replace sales management
#3 Increase marketing spend
#4 Eliminate marketing
#5 ‘Align’ sales & marketing
#6 Install a new, expensive CRM tool
#7 Get everyone an iPad
#8 Kick-in some more incentives
#9 Roll-out new sales training
#10 Start from #1
27
CLIENT
SO HOW CAN WE GET BACK TO THE EARLY DAYS?
Market, Sell, Design, Produce & Deliver
Clients take center stageA simple and transparent organizationEfficiency and low overhead costAgility to change course
28
LET’S LOOK BEYOND THE SYMPTOMS
29
WE NEED TO INTEGRATE MULTIPLE VIEWS
30
Map #1 Map #2
Map #3Map #3
LIKE PLANNING A FAMILY TRIP
Define the Territory
Which country?
Zoom in
Vision, Mission & Strategy
Where are we going?
Enter GPS Coordinates
Design Specs
Take personal wishes and needs
of each family member into
account
Plan according to budget
Consider the destination from multiple angles
Structure Systems
CulturePeople
31
FIGHTING THE FANATIC FRACTIONALIZATION OF FUNCTIONS
FUNCTIONAL STRUCTURE
Function 1 F2 Fn…
FLOWBASEDSTRUCTURE
Client Order 1
O2
On
…
32
WITH SELF-ORGANISING MULTI-DISCIPLINARY TEAMS
CLIENT
PROSPECTING
ACCOUNT MANAGEMENT
BUSINESS ADVISORY
SKILLS
PRESALES EXPERTISE
PRICINGKNOWLEDGE
TECHNICAL WRITING
SKILLS
OPERATIONS EXPERTISE
HR EXPERTISE
RELATIONSHIPS
Shared objectivesShared knowledge
Mutual respect
COMMUNICATION
FrequentTimely
AccurateProblem-Solving
33
IN AUTONOMOUS CLIENT-FOCUSED MINI-COMPANIES
NORTH
SOUTH
PUBLIC
LARGE ACCOUNT MANAGER
MARKETING SPECIALIST
BUSINESS CONSULTANT
PRESALES CONSULTANT
PRODUCT MANAGER
HR SPECIALIST
ACCOUNT MANAGERS
MARKETING SPECIALIST
BUSINESS CONSULTANT
TECHNICAL WRITER
QUALITY MANAGER
FINANCE SPECIALIST
LARGE ACCOUNT MANAGER
ACCOUNT MANAGERS
BUSINESS CONSULTANT
PRESALES CONSULTANT
LEGAL OFFICERS
BUDGET & CONTROL
SPECIALIST
34
WITH MORE ENGAGEMENT AND MOTIVATION
JOB CONTROL
JOB DEMANDS
LOW-STRAINJOBS
ACTIVE JOBS
HIGH-STRAINJOBS
PASSIVE JOBS
MOTIVATION & LEARNING
STRESS
* Source: Karasek, 1979
35
Client-Centric Organization
THE END RESULT
Ownership Motivation
Agility
ReducedComplexity
BetterCoordination
CLIENT
36
MORE ABOUT WORKPLACE INNOVATION
37
LET’S NOW HEAR THE STORY OF QUINTESSENCE …
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