Title: Sales Secrets for the Masters: Selling for CIOs
1Sales Secrets for the MastersSelling for CIOs
- Tom Burland ATT
- Jim McLoughlin PeopleSoft
2Remember the Golden Rule!
.he who has the money makes the rules!
3Introduction
4- 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
5What is selling?
6Selling is the tip of the iceberg
Selling
Closed Questions
Open Questions
Re-state Confirm
Discovery
Qualitative and Quantitative
Research
Empathy
721!
Remember the Golden Ratio!
8Selling is the tip of the iceberg
Selling
Closed Questions
Open Questions
Re-state Confirm
Discovery
Qualitative and Quantitative
Research
Consequence?
Empathy
9Get an understanding of the consequences!
10You have to discover the MANTRA!
Money Authority Need Timescale Relationships
A
11What Issues Do You Experience?
12Influence/Authority Matrix
High
Non-Influential Authority (NI-A)
Influential Authority (I-A)
Authority
Non-Influential Non-Authority
(NI-NA)
Influential No Authority (I-NA)
Low
High
Low
Influence
Holden International
13Holden International
14Value 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
organizations track record, experience in either
this solution or in past
proposed projects
Holden International
15Value Proposition
Beginning ____________________________________
____ (Implementation Date) As a
result of _______________________________________
(Solution Proposed) organizati
on 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
16Gamekeeper turned Poacher
17Current Business Process-Statistics Benchmarks
- Gather or create current KPIs, statistics, etc.
- Develop Benchmarks to Best in Class and
Competition - EXAMPLE
- Number of Suppliers vs. Best in Class xx,xxx
1700 - Number of POs per B Spend xxx,xxx 18,000
- Suppliers Comprising Top 80 per 1B xxx 10
- FTEs per 1B Spend xxx 36
- Percentage of RFxs that are Electronic xx -
37 - Percentage of POs that are Electronic xx -
85 - Source Hackett Group
18Business Process As Is (Current) To Be
Source Supplier Selection Awarding Process
- 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!
19Business Process As Is (Current) To Be
- 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
20Challenges
- 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 KPIs
TCO
21Credibility
- 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
22Other Areas for Potential Savings
- There 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.
23Reasons to Invest
- Your 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
24ExampleBusiness Case Name
- Executive Presentation Date
25Start 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
26Outline Key Strategic Principles
- Project Name
- Increase shareholder value
- Increase EBITDA by lowering _______________
- Generate free cash flow
- Project or Functional Goals (if they exist)
- Reduce COGS through leveraged strategic sourcing
- _______________________________________
- _______________________________________
- Opportunity
- Ex Leverage xx to xx of direct material spend
27Proposal/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
28Business Case Financial Summary
Project pays for itself, creates positive cash
flow
29Summary - 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
30Lesson to learnIf youre the poacher, you
better think like the gamekeeper!
31Asking for the Order
32Circa 1982, UK Selling is as easy as ABC.
Always Be Closing!
33Ask for the order frequentlybut do it gently!
Sales cycle
Trial close
Trial close
Trial close
Trial close
Trial close
Close!
34Ask for the orderand then stay silent!
Assume a Yes OKIll 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?
35Reprise Summary
36Whats the Golden Rule?
Whats the Golden Ratio?
Whats 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?
37Sales Secrets for the MastersSelling for CIOs
- Tom Burland ATT
- Jim McLoughlin PeopleSoft