How a Sales Kaizen Event CanPut Rocket Power and Guidance Systems
Into Your Sales Process
Michael WebbNovember 2008
Sales and Marketing Kaizen Teleconference Series
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This Tele-seminar is intended for
Leaders in public or private companies who• work directly with sales and marketing
professionals• understand what process improvement is
(lean, kaizen, 6σ, TQM, etc.)• want apply process improvement to their sales and
marketingThis tele-seminar will not be as helpful to individuals
seeking to• learn better marketing and selling skills and tactics• promote specific products and services (training,
software, assessment tools, etc.)
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Objectives of this Tele-seminar
Explain• Why most sales and marketing organizations struggle to
improve results • Why most initiatives in sales and marketing fail • What prevents your team from solving those problems right
nowProvide• Simple underlying principles that solve most sales and
marketing problems • A repeatable, step by step process for leading your team
through a Sales KaizenIllustrate• Some case examples from several industries
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Imperative: Generate More Revenue With Fewer Resources
People are unhappy with sales and marketing resultsCustomers not motivated, not loyalEverybody feels overworked, under appreciatedDiagnosing problems is frustratingUnreliable forecasts create serious problems
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Causes of Selling Problems: Not Always on Front Lines
Servicing
Selling
Marketing
BusinessBusiness
Corporate
Salesperson level
Sales management level
Business level
Corporate level
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Treat each problem as unique!!!
Invoke large scale solutions!
There MUST be another way.
The “Usual Fixes”
Fix the salesperson
Fix the Product!
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Not All Problems are Equal
To avoid “dandelion syndrome”:• Identify locations of problems
(salesperson, manager, business, corporate)• Distinguish systemic vs discrete problems• Understand which corrective actions will cause
rapid, effective, and permanent results
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Use Process Improvement
A discipline for improving the performance of a business through the scientific method.
• Define your terms based on evidence– Specify observable characteristics
/ attributes (data) – Define referents for the value, the
process, and the results (or problems)
• Gather, validate, and analyze data
• Use data to develop and test hypothesis for causes and effect
• Implement changes based on a proven hypothesis
• Validate the results
Scientific Method To the Rescue!
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Manufacturing Kaizen Process
Plan EventCreate Team Package
Plan EventCreate Team Package
• Scope • Metrics• Resources• Information• Logistics• Event Packet
ConductEvent
ConductEvent
• Intro, orientation• Present event goals• Review team package• Create process summary• Value stream mappingü Map current processü ID problems &
solutionsü Design improvements
• Develop plans: ü Test, action,
& follow up• Summarize and presentü Event results
Decide onObjectiveDecide onObjective
Recruit TeamMembers
Recruit TeamMembers
Choose EventTeam LeaderChoose EventTeam Leader
EventFollow Up
EventFollow Up
ImplementNew Process
Changes
ImplementNew Process
Changes
EvaluateResults
EvaluateResults
This diagram was developed from materials found in “Implementing World Class Manufacturing, Second Edition”by Larry Rubrich & Mattie Watson © 2004 WCM Associates
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Major Disconnect
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Prerequisite for Process Successin Sales and Marketing
• Approach fits the environment
• Clearly distinguishes value add from waste
• Scalable articulation: general çè specific
• Can be measured objectively
• Provides a foundation for continuous improvement
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Respecting the Environment
Sales andManufacturing Marketing
Culture process functional
Transformation physically visible invisible
View of how to accomplish shared unique
View of standardization an asset an obstacle
Documentation, granularity necessary irrelevant
Production stages (interim) understood variable / unknown
Waste / value objective subjective
What customer will pay for understood unknown / myth
What is measured stages, result, waste end result only
Best practices proven opinion
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The Problem with “The Sales Process”
Sellers Are From MarsThe “Organizational Sales Process” is
aimed at bringing money to our company (not at solving customer’s problems).
Customers Are From VenusProspects focus on what they want. The “customer’s journey” describes their efforts to solve their problems.
Motives of buyers and sellers may repel each other.
Implement
Solution
Pilot /
Justify
Evaluate
Alternatives
Research
Problem
Realize a
Problem
Validate &
Add On
GenerateProposal
ConductDemo
Make SalesPresentation
Make Sales Call
Prospect forBusiness
TakeOrder
Wasted Time and Money• Products, services no one wants• Ads, collateral no one reads• Tradeshows, promotions, and
“leads” that produce nothing• Quote, proposal labor wasted• “Prospects/customers” who don’t
recognize your value
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Value Creation in Sales and Marketing
Customer’s Journey(generic)
Customer’s Journey(generic)
Install, & In-service?Install, &
In-service?
IdentifyFunding?Identify
Funding?
Evaluate& Make
Selection?
Evaluate& Make
Selection?
Realize Problem /
Need?
Realize Problem /
Need?
Define& ClarifyNeeds?
Define& ClarifyNeeds?
AdministerP.O. &
Requisition?
AdministerP.O. &
Requisition?
Value is createdwhen the prospect
takes an action! (actions can be
measured)
What value does your sales process create?
• For your company?• For the customer?
What value does your sales process create?
• For your company?• For the customer?
What happens when the prospect doesn’t realize they have a need, and you tell them about your product?
Waste!
What happens when the prospect doesn’t realize they have a need, and you tell them about your product?
Waste!
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Find the Right Level of Standardization
Happy Medium Provides:
Structure for learningAND
Freedom for innovation and flexible responses
Not Enough Detail = Useless
Too much detail = Turn Off
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Customer’sJourney
Kee
ping
Win
ning
Find
ing
Install, & In-service?Install, &
In-service?
IdentifyFunding?Identify
Funding?
Evaluate& Make
Selection?
Evaluate& Make
Selection?
Realize Problem /
Need?
Realize Problem /
Need?
Define& ClarifyNeeds?
Define& ClarifyNeeds?
AdministerP.O. &
Requisition?
AdministerP.O. &
Requisition?
Sales Production Process Framework
Become aware, prioritize pain, build trust
Become aware, prioritize pain, build trust
Follow up, deliver on commitments
Follow up, deliver on commitments
Clarify potential impact, justify investment
Clarify potential impact, justify investment
Define need, build consensus, build trust
Define need, build consensus, build trust
Maximize results, getcredit for it, & get referrals
Maximize results, getcredit for it, & get referrals
Compare offers, choose easily, reduce risk
Compare offers, choose easily, reduce risk
How do you help them …?
LeadGeneration
Relationship Nurturing
OpportunityQualification
SellingBehaviors
FollowUp
ServiceSupport
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Hard Data From the Sales Funnel
MCC # created opps
UCL=176.96
LCL=51.64
CEN=114.3
0
20
40
60
80
100
120
140
160
180
200
3 4 5 6 7 8 9 10 11 12
MCC # closed opps
UCL=112.984
LCL=32.652
CEN=72.818
0
20
40
60
80
100
120
2 3 4 5 6 7 8 9 10 11 12
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Example of a Properly Designed Sales Production System
Actions We TakeMeasuresMgt Decisions Customer Actions
Syst
em’s
Per
spec
tive
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Sales Kaizen Process
Decide onObjectiveDecide onObjective
Plan EventCreate Team
Package
Plan EventCreate Team
Package
• Scope • Metrics• Resources• Information• Logistics• Event Packet
Recruit TeamMembers
Recruit TeamMembers
Choose EventTeam LeaderChoose EventTeam Leader
ConductEvent
ConductEvent
• Intro, Orientation• Present Event Goals• Review Team Package• Create Process SummarySales Process Design• Map Customer Journey• Define and Align FWK Process• ID Problems & Solutions• Develop Plans: ü test, action, & follow up
• Summarize and presentü event results
EventFollow Up
EventFollow Up
Change YourMethods
Change YourMethods
EvaluateResults
EvaluateResults
Customer Value
Stream Mapping®
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Sales Kaizen Event: A Foundation for Improvement
Manufacturing Tools• 5S• Value Stream Mapping• Setup Reduction • Kanban• Total Productive Maintenance• Cellular Manufacturing• JIT / Lean •
Sales and Marketing Tools• Sales Process Design
(Customer Value Stream Mapping®)
• Customer value mapping• Qualification criteria• Direct response Internet based
Lead Generation • Nurturing •
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Why Salespeople Love This Approach
Drives attention to real customer problems• What blocks their Customer’s Journey’s progress?• What tactics/talent (marketing, selling, servicing) are best at
this point?• Salesperson as a “sensor” (new applications, opportunities)Provides feedback • Their thumbprint on business• Objective measures of performanceSolves real selling problems• Systematically makes selling easier• More time for preparation, professional selling
(not whacking dandelions & moles every day)
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Kaizen Success Factors
1) What are the best places (which sales problems and processes) to apply a kaizen for sales improvement? – Macro: when major elements of the customer’s journey are not served well
(poor lead gen, lack of nurturing, poor qualification, account management, etc.)– Micro: when there is wide variation among individual behaviors within a portion
of the process, this approach provides a vehicle for them to articulate and standardize detailed work elements
2) How best to measure and PROVE the results and impacts of a sales kaizen – Priorities of this work are 1) identifying customer value, 2) establishing a
measurement framework (most companies have not done either with respect to the sales process). Without the framework you can’t measure or prove anything.
– Proving the results of a sales kaizen event is irrelevant in any case. The issue is to improve the results of the business: make the sales funnel flow faster, increase margin, eliminate waste, etc.
3) The key barriers to success, and how to overcome them – Senior executives who “get it.” They must recognize the value of transitioning
the company’s culture to data-oriented decision making (short AND long term). – Having the right people in the room (marketing, sales, service, senior execs). – Ensuring the people in the room have the need to make a change. – Ensuring small initial projects are successful, enabling other people to be
receptive.
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Impact on Sales Training and Software
Designing the sales process correctly:Creates demand for training• The right kind of training• Training is more valued
– by salespeople as well as their company• Results are much more measurable Creates demand for software• The applications people will use• Software is more valued
– by salespeople as well as their company• Is the vehicle for measuring the production flow
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Cases and Testimonials
HVAC Manufacturer
“The sales process you helped us invent here has made quite a difference. We redefined the Territory Managers job, and who our customers were, and what the salesman was supposed to do with them. The top 20% of our dealers are up 60% in sales in a market that is down 12% this year (residential new construction). Not bad!”
Bruce Ritchey, President/CEOWaterFurnace Renewable Energy, Inc.
Scientific Instrument Manufacturer
Not only do we appreciate the professionalism and flexibility you displayed, but the ideas have excited our teams and helped us improve our product development initiatives on several fronts. The course ideas and templates are now embedded in our Product development process and mandated for all our Madison-based product teams to follow.
Dr. Brian DaviesDirector – Microanalyzis Product Team, Thermo Fisher Scientific
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Cases and Testimonials
Operating Room Devices Manufacturer
Devised common organizational sales process, upgraded the SalesLogix CRM, achieved 93% sales forecast accuracy, and grew at 20% per year.
“You … link[ed] process techniques to the wily world of sales and marketing. …Our team especially appreciated that you …customized [your] materials and tools [to] directly help salespeople sell and marketing people market. Further, you went out of your way to deliver more than you promised. … I would recommend Sales Performance Consultants, Inc., without hesitation to any senior executive who needs to improve their organization’s sales and marketing processes.”
Gregg SchuppV.P. Operations
Timesheet Software Developer
Improved salespeople’s consistency and fidelity to the process by enabling them to design it. Improved the capacity of the new account sales process from measurably, and increased the conversion rate of sales opportunities with no improvement on quality or quantity of lead flow.
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Cases and Testimonials
Business Development Membership Referral Platform
You taught us a powerful “frame of reference” for solving sales and marketing problems. The result was: :
• A sales process that enables us to ferret out “B” players quickly, ramp up “A” players faster, and support them in a way that improves our results substantially
• A management system that generates hard data for improving the business
Adopting SPC’s approach has permanently changed our business for the better on both our top and bottom lines.
Troy Peple, President
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Action Steps
q Please provide your comments to this presentation in the comments section at the bottom of this web page. Please be as specific aspossible:
q What did you like about the presentation?
q What needs to be improved?
q What would you like to learn more about?
q To receive a self-assessment of your organization’s need / readiness for sales kaizen, send an email to [email protected]
orq To Inquire about having your organization’s need / readiness
professionally assessed
Send an email request to [email protected] To inquire about getting assistance improving your company’s sales
process, visit q http://www.salesperformance.com/professional-services/inquiries