Upload
tova
View
33
Download
0
Tags:
Embed Size (px)
DESCRIPTION
Sales Secrets for the Masters: Selling for CIO’s. Tom Burland – AT&T Jim McLoughlin – PeopleSoft. Remember the Golden Rule!. ….he who has the money makes the rules!. Introduction. Jim McLoughlin. At the end of this complete session you will: know the “Golden Rule’ and the ‘Golden Ratio’ - PowerPoint PPT Presentation
Citation preview
Sales Secrets for the Masters:Selling for CIO’s
Tom Burland – AT&T
Jim McLoughlin – PeopleSoft
….he who has the money makes the rules!
Introduction
Jim McLoughlin
At the end of this complete session you will:
•know the “Golden Rule’ and the ‘Golden Ratio’
•know the MANTRA
•have twin strategies for ‘selling’ a project
•have new tactics to bring closure
What is selling?
Jim McLoughlin
‘Selling’ is the tip of the iceberg…
DiscoveryDiscovery
‘‘Selling’Selling’
Empathy
Closed Questions
Qualitative and Quantitative Research
Re-state & ConfirmOpen Questions
Remember the Golden Ratio!
2:1!
‘Selling’ is the tip of the iceberg…
DiscoveryDiscovery
‘‘Selling’Selling’
Empathy
Closed Questions
Qualitative and Quantitative Research
Re-state & Confirm
Consequence?
Open Questions
Get an understanding of the consequences!
You have to discover the MANTRA!
Money
Authority
Need
Timescale
Relationships
A
What Issues Do You Experience?
Tom Burland
Low
Low High
High
Authority
Influence
Influential – Authority (I-A)
Non-Influential –Non-Authority (NI-NA)
Non-Influential – Authority (NI-A)
Influential –No Authority (I-NA)
Influence/Authority Matrix
Holden International
Domain The Fox Others in the Power Base
People Outside the Power Base
Shaping corporate strategies, goals and objectives
Shapes strategy; sees the big picture; envisions the future; describes value to the organization
Implement strategy; follow the leadership of the fox
Unclear about strategy or direction
Management philosophy and culture
Articulates philosophy; initiates cultural changes
Understand the philosophy and culture
Cannot articulate management philosophy
Historical influence on others
Provides political advice to others; exercises leverage throughout the network
Go to Fox for Advice
Show poor compatibility with the power base or the Fox
Calculated risks Sponsors initiatives even outside his or her own areas
Support risk taking if sponsored by the Fox
Avoid taking any type of risks
Holden International
Value Statement
Goals/Challenges/Initiatives : demonstrate your awareness and insight regarding issues that are important to your client.
Area of Improvement: Without getting bogged down in details how can you enable organization success.
Business Impact: How will this solution affect the business, relating to significant revenue enhancement or improvement in strategic positioning
Credibility: Your organization’s track record, experience in either this solution or in past proposed projectsHolden International
Value Proposition
Beginning ________________________________________ (Implementation Date)
As a result of _______________________________________ (Solution Proposed)
[organization] will be able to ___________________________(do what specifically)
Resulting in ________________________________________ (quantified business improvement)
For _______________________________________________ (price/investment)
With economic payback ______________________________ (timeframe)
We will document our delivered ________________________Value by (results tracking system/strategy)
Holden International
Gamekeeper turned Poacher
Hank Rej
Current Business Process-Statistics & Benchmarks
Gather or create current KPI’s, statistics, etc.
Develop Benchmarks to “Best in Class” and Competition
EXAMPLE:• Number of Suppliers vs. Best in Class: xx,xxx– 1700• Number of PO’s per $B Spend: xxx,xxx – 18,000• Suppliers Comprising Top 80% per $1B: xxx – 10• FTE’s per $1B Spend: xxx – 36 • Percentage of RFx’s that are Electronic: xx% - 37%• Percentage of PO’s that are Electronic: xx% - 85%
Source: Hackett Group
Business Process: As Is (Current) & To Be
As Is Business Process:• Describe for the executives in
a brief bullet summary the problems, issues or deficiencies that will allow them to understand the impact on the business and the need to change. (#,#)
To Be Business Process:• Sourcing: Process discipline, standard
rules & workflow methodology. (#,#)• RFQ Automation: Disciplined
supplier qualification, inclusion of bid factors, collaborative scoring and & awarding. (#,#)
• Supplier Rating: commonly defined measures, continuous rating & parameter alerts for all performance measures. (#,#)
• Analysis & Contract Compliance: Real time spend analysis by commodity & monitored contract compliance.
THE RESULT OF THIS ANALYSIS IS THE VALUE STATEMENT!
Source: Supplier Selection & Awarding Process
Savings in the Business Case:
• Summary bullets on one slide which list out the key Value Statements and the dollar value.
• Correlate to the “As Is” v “To Be” process changes you have identified
Business Process: As Is (Current) & To Be
Challenges
List the difficult issues facing the project. Get the cards on the table!!
Some Examples:
• Risk of not managing the cultural change• Assessing field staff skills levels• Upgrading IT infrastructure & personnel• Need to be open to best practices adoption• Establishing and managing to common KPI’s
TCO
Credibility
List the circumstances in you and/or your team has been able to deliver on commitments in the past.
Cite specific benefits achieved.
Cite experience gained in other organizations
Some Examples:
• Another internal project• Competitors who have/have not done similar projects
TCO
Other Areas for Potential SavingsThere are always other areas of savings that are not part of the business
case. Although the case is justified on the hard savings management commits too, the incremental knowledge that more is available is often a critical success factor.
Tangible Example:• Headcount reduction that management does not want to include at
this time.• If an estimate is conservative the upside can be listed here.Intangible Example:• Possibility of Centralization Over Time.• Acquisition ROI Acceleration with new system.
Reasons to InvestYour finishing slide. Make sure you treat it like an elevator speech where
you only have 1 minute to leave the executives with an understanding that compels them to invest.
• Key (1 or 2) business benefits of the investment• Increases Shareholder Value
– Annual Cost of Goods Reduction of $XX.XM after tax.– Payback in X.X Years– 5 Year Cumulative Cash Flow of $XX.X Million– IRR of XX% and NPV of $XX.X Million– EBITDA $X.X Million in 2008
• Sarbanes-Oxley Compliance• Implementation Plan That Mitigates Risk• Corner-Stone for Potential ERP Solution
ExampleBusiness Case Name
Executive Presentation Date
Start with the Final Deliverable in Mind.
• Executive Summary– Key Strategic Principals– Proposal/Benefits
• Business Case Financial Summary • Current Business Process Statistics & Benchmarks• Best Practices Model• Business Processes: As Is (Current) & To Be
– Business Process A– Business Process B– Business Process C– Business Process D– Economic Benefits
• Implementation Plan – Risk Mitigation• Challenges• Other Areas For Potential Savings• Reasons to Invest
Outline Key Strategic Principles
Project Name:• Increase shareholder value• Increase EBITDA by lowering _______________• Generate free cash flow
Project or Functional Goals (if they exist):1. Reduce COGS through leveraged strategic sourcing2. _______________________________________3. _______________________________________
Opportunity:• Ex: Leverage xx% to xx% of direct material spend
Proposal/Benefits
• Ex: One company wide integrated procurement system– Strategic Sourcing control and productivity increase– Eliminate maverick spending
• __________________________________• __________________________________• __________________________________• Comprehensive implementation plan with risk mitigation• Conservative estimates Cost & Benefits• Project cost of $XX.Xm • Payback of X.X years• IRR of XX%• NPV of $XX.X million• Potential savings in other areas
Business Case Financial Summary
Project pays for itself, creates positive cash flow
Summary - Reasons to Invest
Key (1 or 2) business benefits of the investment
• Increases Shareholder Value– Annual Cost of Goods Reduction of $XX.XM after tax.– Payback in X.X Years– 5 Year Cumulative Cash Flow of $XX.X Million– IRR of XX% and NPV of $XX.X Million– EBITDA $X.X Million in 2008
• Sarbanes-Oxley Compliance• Implementation Plan That Mitigates Risk• Corner-Stone for Potential ERP Solution
Lesson to learn:
If you’re the poacher, you better think like the gamekeeper!
‘Asking for the Order’
Jim McLoughlin
Circa 1982, UK
Selling is as easy as ABC….
Always Be Closing!
Sales cycle
Trial close
Trial close
Trial close
Close!Trial close
Trial close
Ask for the order frequently…but do it gently!
Ask for the order…and then stay silent!
Assume a ‘Yes’…
“OK…I’ll pick up the signed Capital Approval Request tomorrow”
Give two alternatives, both of which are ‘Yes’…
“Is it better to pick up the signed Capital Approval Request today or tomorrow?”
Reprise & Summary
Jim McLoughlin
What’s the Golden Rule?
What’s the Golden Ratio?
What’s my MANTRa?
What are the twin strategies for persuasion?
When should I ask for the order?
Did we achieve the mission well or very well?
Sales Secrets for the Masters:Selling for CIO’s
Tom Burland – AT&T
Jim McLoughlin – PeopleSoft