SSWeaving the Sales & Bid Management Fabric

[Capturing the Hearts and Minds of Prospects & Clients]

Presented by:

Bill Graham APM.APMP

bill.graham@sales-synthesis.co.za[082 570 4124]

26th July, 2012

2

Agenda

• The Organisational Fabric

• Business Acquisition Flow

• Business Application Framework & Business Models

• Value Derivation

• Summary & Closure

• Q&A

3

The

Organisational

Fabric

4

Organisations have Unique Fabric Infrastructures

5

Organisations have Unique Fabric Infrastructures

Company A operates differently than Company B

6

Organisations have the same basic Focus Points

Market Penetration

Opportunity Conversion

Policies & Processes

Business Necessities

Company A operates differently than Company B

7

Business Necessities must be clearly defined

Strategy Plans Actions

Market Penetration

Opportunity Conversion

Policies & Processes

Business Necessities

8

Policies and Processes are not optional

Vague Optional Mature

Strategy Plans Actions

Market Penetration

Opportunity Conversion

Policies & Processes

Business Necessities

9

Success is measured by Opportunity Conversion

Prospect Customer Client

Vague Optional Mature

Strategy Plans Actions

Market Penetration

Opportunity Conversion

Policies & Processes

Business Necessities

10

Growth is a requisite of a Successful Organisation

Emerging Dominant Pervasive

Prospect Customer Client

Vague Optional Mature

Strategy Plans Actions

Market Penetration

Opportunity Conversion

Policies & Processes

Business Necessities

11

Think Quality – When you are out of Quality you are out of Business

Emerging Dominant Pervasive

Prospect Customer Client

Vague Optional Mature

Strategy Plans Actions

Market Penetration

Opportunity Conversion

Policies & Processes

Business Necessities

Und

erst

andi

ng C

lient

s’ N

eeds

12

Business

Acquisition Flow

13

A Holistic Perspective for Business Success

Emerging Dominant Pervasive

Prospect Customer Client

Vague Optional Mature

Strategy Plans Actions

Market Penetration

Opportunity Conversion

Policies & Processes

Business Necessities

14

A well-defined Business Acquisition Flow is Required

Emerging Dominant Pervasive

Prospect Customer Client

Vague Optional Mature

Strategy Plans Actions

Market Penetration

Opportunity Conversion

Policies & Processes

Business Necessities

Business Acquisition FlowSt

rate

gise

& P

lan

Land

scap

e Analyse the current

situation

What can go wrong with

sales?

Back to basics – Billion Dollar

revolution

Understand how value is

defined

Follow a sales process

Create key account plans

Win

ning

Way

s

Follow a bid process

Continuously Improve

Become a trusted advisor

15

Business Acquisition FlowSt

rate

gise

& P

lan

Land

scap

e Analyse the current

situation

What can go wrong with

sales?

Back to basics – Billion Dollar

revolution

Understand how value is

defined

Follow a sales process

Create key account plans

Win

ning

Way

s

Follow a bid process

Continuously Improve

Become a trusted advisor

16

Business Acquisition FlowSt

rate

gise

& P

lan

Land

scap

e Analyse the current situation

What can go wrong with sales?

Back to basics – Billion Dollar

revolution

Understand how value is defined

Follow a sales process

Create key account plans

Win

ning

Way

s

Follow a bid process

Continuously Improve

Become a trusted advisor

17

18

If everything was fine, then the Status Quo would suffice in moving the business forward

• Targets not being achieved

• Organisation’s business aspirations not being met

• Disconnect between Management and Staff

• Ambiguity - and/or duplication - of Roles and Responsibility

• Unclear – or poorly communicated – business strategies

• Unskilled employees – or ‘square pegs’ in ‘round holes’

• Misalignment between Organisation and Client(s)

Analyse the Current Situation

• Unmanaged salesforce during a growth era

• Missed opportunities

• Poor opportunity cost derivation

• Inaccurate risk identification

• Data inconsistency across support systems

• Role clarity & ambiguity

• Visibility of sales-related information across the organisation

• Misalignment of solutions to client needs

• Ignoring of best practice(s)

• Management’s will to invest in long sales cycles

What can go wrong with Sales?

19

Problem Indicators

Inaccurate forecasting Poor client submissions Unknown opportunities Sales GAP increasing

Possible Reasons

Non-Conformance to process

Lack of discipline• Incorrect salesforce Lack of sales leadership• Overpaid salesforce Unmotivated salesforce Contract not driving

required behaviour Weak/unknown brand• Territory mis-alignment No RIP No client/industry

knowledge Unfocused salesforce• Company takeover

• The unknown?

Interventions

Micro-management Re-evaluate salesforce Direct sales leadership Weekly sales meeting

• Salespeople to present product value props.

• Industry knowledge Performance letters Review collateral Product training

• Plus development targets

Territory allocation review• Restructure

Client technology updates• Based on industry• Relevance to client

Presentation to client boards

Ideal Situation

Salesforce• Well equipped• Motivated• Passionate• Pro-active

Contract• Defines territory• Defines remuneration• Drives behaviour

Support• Collateral• Systems• Methodology & policies• Marketing

Metrics• Solid qualified pipeline• Win/Loss ratio > 80%• Well crafted submissions

(with clear crafted value props)

• Target achievement

Sales: Back to Basics

20

Most of the proposals we submit come with pricing and more closely resemble a quotation.

'Consultative sellers supply profit as their product

vs. Traditional sellers supply product.'

'Consultative sellers use a Profit Improvement

Proposal vs. Traditional sellers use a quotation.'

'Consultative sellers’ products are improved

customer profits vs. Traditional sellers’ products

are equipment, a service, a process or a

system.'

Consultative versus Traditional Sales

21

Sales ProcessConduct

Initial Assessment

Understand Business

Needs

Create Value Proposition

Confirm Value

Proposition

Present Value

Proposition

Reach Agreement &

Close

Phase 1

Identify Industry Issues/ Trends/Standards

Assess Company Buying Information

Assess High Level Business Needs

Estimate Products/ Services Match

Evaluate Gateway influence with decision maker

Make Go/No Go Decision

Phase 2

Determine Business Drivers

Verify and Determine Buying Information

Formulate and Document Buying/ Selling Plan

Negotiate & Confirm Buying/Selling Process Commitments

Make Go/No Go Decision

Phase 3

Hypothesize Product/ Service Opportunities

Develop Initial Value Proposition

Conduct Initial Survey Interviews

Make Go/No Go Decision

Phase 4

Inform Customer

Conduct Follow-up Survey Interviews

Review Survey Interview Findings With Customer

Begin Contract Compliance Process

Make Go/No Go Decision

Phase 5

Prepare Value Proposition Component

Prepare Solution Component

Prepare Demo Component

Prepare Integrated presentation(s)

Make Presentation(s)

Assess Customer Reaction

Phase 6

Prepare and Present Proposal Presentation

Negotiate & Agree on Terms & Conditions

Obtain Signed Contract and Close

ActivityObjectives

TasksToolsDesired

Outcomes22

John Henry Patterson [December 13, 1844 – May 7, 1922]

The founder and CEO of the National Cash Register Co. was known to be a stern control freak. He was also the father of modern sales training. He was among the first entrepreneurs to organize sales training programs and retreats. His company provided salespeople with scripts and encouraged them to view the sales cycle as a four-stage process that identified the key milestones as the initial approach, the proposition, the product demonstration and closing the deal.

23

1. Overview of Account (from the Client’s perspective)

2. Current Financial Analysis (Annual Reports, Investor documentation, press releases

etc.)

3. Competitor Analysis – list of the top

4. Relationship Matrix

5. Vendor projects (plus financials, stage of delivery, status (issues), etc.)

5. Opportunity List (mapped onto Sales CRM/Tracking System)

6. Critical Success Factors

7. Resource(s)

8. Communication Program

A Best Practice account plan contains at least the following elements

Account Plan Contents

Account

Plan24

WHAT IS BID MANAGEMENT?

It is a Function

It consists of pre-defined Processes

It includes an Offer (Proposal)

There is a Company Introduction (Please don’t overdo)

It involves Promises & Commitments being made (Legal)

It consists of Compiling a Proposal (This is the content)

It is typically the result of a Response to a Client Request (RFP?)

Bid Management

25

Bid Management

Bid Management is part of the Sales Phase of the Service Delivery Life Cycle.

It enables a client to obtain value from the ‘solutions/product/service’ that the Service Provider is proposing.

Lengthy discourse with the prospects are necessary to identify the problem they are attempting to resolve [Account Management]

26

Many organisations undertake reviews as part of their business development & proposal processes. These reviews are designed to help select the right opportunities to bid, confirm win strategies, address proposal and performance risk, and support development of high quality, winning proposals.

Source: Shipley Associates

• Purple Team: Assesses the probability of winning (Pwin) and alignment with organisational goals

• Blue Team #1: Reviews initial capture strategy and capture plan

• Black Hat Team: Predicts competitors’ solutions

• Blue Team #2: Reviews updated capture plan and solution set

• Pink Team: Reviews storyboards and mock-ups to confirm solution set and to validate

proposal strategy

• Green Team: Reviews cost/price solution

• Red Team: Reviews final proposal draft—including price—to predict how the customer will score

the proposal

• Gold Team: Approves final proposal and price

• White Team: Compiles lessons learned from capture planning through proposal development to

contract award

Team Reviews

27

28

Business

Application

Framework &

Business Models

Business Application Framework

Source: Raymond Wessels

Sales and Marketing

Sales Management

Back OfficeHR Management

Operations

Client Management

Infrastructure Management

Financial Management

DebtorsCreditors

Audit

MaterialsManagement

Client Satisfaction

Management

ClientContact Manage -

mentClient Contract

Management

CostingAccounting

Invoicing

Resource Management

Project Management

Resource Billing & Costing

Timesheets & Claims

Solutions and Service Delivery

Quality Management

Outcome Measurement

Offer Management

Procurement

Operational Planning

Opport. Assessment

Resource Planning

Learning

Service Delivery and Maintenance Management

Client Insight

MarketingManagement

Office Management

Resource Acquisition

Resource Scheduling

Man

agem

ent I

nfor

mati

on

Employee Administration

HR Planning and Monitoring

Employee Acquisition (Recruitment)

Remuneration and Benefits

HR Development

Welfare Management

Legislation

Skills Development and Re -skilling

Reporting Planning

Client Product & Service Portfolio

Client Strategy

3 rd Party Management

Supplier Management

Competitor Assessment

EnablersWorkflow Knowledge

Management

e-Learning

Document Management Messaging / Fax / MailCollaboration

Sales Management

KM

Skills Inventory and Resource Availability

Product and Service Portfolio

Risk and Security Management

12

3

29

Client Management

Source: Raymond Wessels

Client Management

Client

Satisfaction

Management

Client

Contact

Manage -

ment

Client Contract

Management

Client

Insight

Client Product &

Service Portfolio

Client Strategy

EnablersWorkflow Knowledge

ManagementDocument

Management Messaging / Fax / MailCollaboration

What is required for Success?

30

Sales and Marketing

Source: Raymond Wessels

Sales and Marketing

Sales ManagementOffer Management

Opport. Assessment

MarketingManagement

3 rd Party Management

Supplier Management

Competitor Assessment

Sales Management

EnablersWorkflow Knowledge

ManagementDocument

Management Messaging / Fax / MailCollaboration

What is required for Success?

31

Integrated Management System

Source: Various

EnablersWorkflow Knowledge

ManagementDocument

Management Messaging / Fax / MailCollaboration

32

Sales Phase of the Service Delivery Life-Cycle

33

Prospect Plan Propose Present Lessons Learned

Account Management

Align to Client Procurement

Identify Qualify Craft Proposal Client Adjudication DeliverySubmit

Red Team

Review

Decision to

Proceed

Decision to

Proceed

Black Hat Team

Review

Moment of Truth

21

Source: Various

Sales Phase of the Service Delivery Life-Cycle

34

Prospect Plan Propose Present Lessons Learned

Account Management

Align to Client Procurement

Identify Qualify Craft Proposal Client Adjudication DeliverySubmit

Red Team

Review

Decision to

Proceed

Decision to

Proceed

Black Hat Team

Review

Moment of Truth

21

Source: Various

35

Value Derivation

36

Dominant ExclusiveEmerging PervasiveAbsent

Symbiotic relationship with clients

Sustainability

Making the competitors irrelevant

Projects ParticularPerforming PertinentPeople Places

The Sustainable Business Imperative

Building mutually beneficial and sustainable long-term client relationships

Where Value is Defined and Realised

Value Proposition Value Definition Value Derivation

Client X Validate Solution Functionality Realise the Benefits

Vendor Understand the Problem Architect Solution X

The Client Value Continuum

Lengthy discourse with the prospects are necessary to identify the problem they are attempting to resolve [Account Management]

37

Moment of Truth

38

Available, in every aspect of a person’s work-life, there are defined best practices. These have been created over a period of time and are the verified actions that the successful leaders in that specific line of work demonstrate. By focusing on these best practices - and systematically & meticulously embedding them into your processes/activities – major productivity improvements can be achieved (and sustained).

The trick is in having the ability to review the plethora of these best practices and being able to select the pertinent features to ensure that the derived best practices are indeed relevant for that particular requirement/environment.

Best Practices

39

The factors influencing sustainability can generally be categorised into:

¤ Mandatory¤ Economic¤ Social¤ Environmental.

Mandatory factors have an unwavering influence on organisations, while the latter factors are variable based on the interaction between the organisation and its eco-system. They are typically associated with intellectual choice.

Source: Melrose Atteridge

---------- Fixed, for a given organisation

Variable – driven by choice, for a given organisation

Factors Affecting Sustainability

40

Leadership

Executive Management

• Ensure that the market development strategies support business aspirations

• Delivery of revenue to the business• Mitigation of identified risks• Delivery of profit (value) to the client

Structure

Processes

Sales is not a spectator sport

Source: Sales Synthesis

Establishment of a sustainable Business Centric Framework

41

Moment of Truth

42

Summary &

Closure

43

Sales and Bid Management Discussion

44

Dominant ExclusiveEmerging PervasiveAbsent

Symbiotic relationship with clients

Sustainability

Making the competitors irrelevant

Projects ParticularPerforming PertinentPeople Places

The Sustainable Business Imperative

Building mutually beneficial and sustainable long-term client relationships

45

Dominant ExclusiveEmerging PervasiveAbsent

Symbiotic relationship with clients

Sustainability

Making the competitors irrelevant

Problem Indicators

Inaccurate forecasting Poor client submissions Unknown opportunities Sales GAP increasing

Possible Reasons

Non-Conformance to process

Lack of discipline• Incorrect salesforce Lack of sales leadership• Overpaid salesforce Unmotivated salesforce Contract not driving

required behaviour Weak/unknown brand• Territory mis-alignment No RIP No client/industry

knowledge Unfocused salesforce• Company takeover

• The unknown?

Interventions

Micro-management Re-evaluate salesforce Direct sales leadership Weekly sales meeting

• Salespeople to present product value props.

• Industry knowledge Performance letters Review collateral Product training

• Plus development targets

Territory allocation review• Restructure

Client technology updates• Based on industry• Relevance to client

Presentation to client boards

Ideal Situation

Salesforce• Well equipped• Motivated• Passionate• Pro-active

Contract• Defines territory• Defines remuneration• Drives behaviour

Support• Collateral• Systems• Methodology & policies• Marketing

Metrics• Solid qualified pipeline• Win/Loss ratio > 80%• Well crafted submissions

(with clear crafted value props)

• Target achievement

Sales: Back to Basics

46

Ideal Situation

Salesforce• Well equipped• Motivated• Passionate• Pro-active

Contract• Defines territory• Defines remuneration• Drives behaviour

Support• Collateral• Systems• Methodology & policies• Marketing

Metrics• Solid qualified pipeline• Win/Loss ratio > 80%• Well crafted submissions

(with clear crafted value props)

• Target achievement

47

48

Think Quality – When you are out of Quality you are out of Business

Emerging Dominant Pervasive

Prospect Customer Client

Vague Optional Mature

Strategy Plans Actions

Market Penetration

Opportunity Conversion

Policies & Processes

Business Necessities

Und

erst

andi

ng C

lient

s’ N

eeds

49

Think Quality – When you are out of Quality you are out of Business

Und

erst

andi

ng C

lient

s’ N

eeds

1. Overview of Account (from the Client’s perspective)

2. Current Financial Analysis (Annual Reports, Investor documentation, press releases

etc.)

3. Competitor Analysis – list of the top

4. Relationship Matrix

5. Vendor projects (plus financials, stage of delivery, status (issues), etc.)

5. Opportunity List (mapped onto Sales CRM/Tracking System)

6. Critical Success Factors

7. Resource(s)

8. Communication Program

A Best Practice account plan contains at least the following elements

Account Plan Contents

Account

Plan50

Account

Plan51

Most of the proposals we submit come with pricing and more closely resemble a quotation.

'Consultative sellers supply profit as their product

vs. Traditional sellers supply product.'

'Consultative sellers use a Profit Improvement

Proposal vs. Traditional sellers use a quotation.'

'Consultative sellers’ products are improved

customer profits vs. Traditional sellers’ products

are equipment, a service, a process or a

system.'

Consultative versus Traditional Sales

52

'Consultative sellers supply profit as their product

vs. Traditional sellers supply product.'

'Consultative sellers use a Profit Improvement

Proposal vs. Traditional sellers use a quotation.'

'Consultative sellers’ products are improved

customer profits vs. Traditional sellers’ products

are equipment, a service, a process or a

system.'

53

Sales ProcessConduct

Initial Assessment

Understand Business

Needs

Create Value Proposition

Confirm Value

Proposition

Present Value

Proposition

Reach Agreement &

Close

Phase 1

Identify Industry Issues/ Trends/Standards

Assess Company Buying Information

Assess High Level Business Needs

Estimate Products/ Services Match

Evaluate Gateway influence with decision maker

Make Go/No Go Decision

Phase 2

Determine Business Drivers

Verify and Determine Buying Information

Formulate and Document Buying/ Selling Plan

Negotiate & Confirm Buying/Selling Process Commitments

Make Go/No Go Decision

Phase 3

Hypothesize Product/ Service Opportunities

Develop Initial Value Proposition

Conduct Initial Survey Interviews

Make Go/No Go Decision

Phase 4

Inform Customer

Conduct Follow-up Survey Interviews

Review Survey Interview Findings With Customer

Begin Contract Compliance Process

Make Go/No Go Decision

Phase 5

Prepare Value Proposition Component

Prepare Solution Component

Prepare Demo Component

Prepare Integrated presentation(s)

Make Presentation(s)

Assess Customer Reaction

Phase 6

Prepare and Present Proposal Presentation

Negotiate & Agree on Terms & Conditions

Obtain Signed Contract and Close

ActivityObjectives

TasksToolsDesired

Outcomes54

Conduct Initial

Assessment

Understand Business

Needs

Create Value Proposition

Confirm Value

Proposition

Present Value

Proposition

Reach Agreement &

Close

55

Client Management

Source: Raymond Wessels

Client Management

Client

Satisfaction

Management

Client

Contact

Manage -

ment

Client Contract

Management

Client

Insight

Client Product &

Service Portfolio

Client Strategy

EnablersWorkflow Knowledge

ManagementDocument

Management Messaging / Fax / MailCollaboration

What is required for Success?

56

Source: Raymond Wessels

Client Management

Client

Satisfaction

Management

Client

Contact

Manage -

ment

Client Contract

Management

Client

Insight

Client Product &

Service Portfolio

Client Strategy

EnablersWorkflow Knowledge

ManagementDocument

Management Messaging / Fax / MailCollaboration

57

Sales and Marketing

Source: Raymond Wessels

Sales and Marketing

Sales ManagementOffer Management

Opport. Assessment

MarketingManagement

3 rd Party Management

Supplier Management

Competitor Assessment

Sales Management

EnablersWorkflow Knowledge

ManagementDocument

Management Messaging / Fax / MailCollaboration

What is required for Success?

58

Source: Raymond Wessels

Sales and Marketing

Sales ManagementOffer Management

Opport. Assessment

MarketingManagement

3 rd Party Management

Supplier Management

Competitor Assessment

Sales Management

EnablersWorkflow Knowledge

ManagementDocument

Management Messaging / Fax / MailCollaboration

59

Bid Management

Bid Management is part of the Sales Phase of the Service Delivery Life Cycle.

It enables a client to obtain value from the ‘solutions/product/service’ that the Service Provider is proposing.

Lengthy discourse with the prospects are necessary to identify the problem they are attempting to resolve [Account Management]

60

Bid Management is part of the Sales Phase of the Service Delivery Life Cycle.

It enables a client to obtain value from the ‘solutions/product/service’ that the Service Provider is proposing.

61

Weaving it all together

62

63

Dominant ExclusiveEmerging PervasiveAbsent

Making the competitors irrelevant

Und

erst

andi

ng C

lient

s’ N

eeds

Account

Plan

Bid Management is part of the Sales Phase of the Service Delivery Life Cycle. It enables a client to obtain value from the ‘solutions/product/service’ that the Service

Provider is proposing.

Sustainability

Weaving it all together

64

Dominant ExclusiveEmerging PervasiveAbsent

Making the competitors irrelevant

Und

erst

andi

ng C

lient

s’ N

eeds

Account

Plan

Bid Management is part of the Sales Phase of the Service Delivery Life Cycle. It enables a client to obtain value from the ‘solutions/product/service’ that the Service

Provider is proposing.

Sustainability

65

Q&A