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ANTITRUST REMINDER2013 Phillips 66 Marketing Conference & Trade Show

ARIA Resort & Casino, Las Vegas, NV -- May 21- 24, 2013

• It is the policy of Phillips 66 to comply strictly with antitrust laws and to avoid the appearance of conduct which might be misconstrued by others as violating those laws.

• Because competitors are represented, we must all be mindful of the Antitrust Laws. We must, of course, carefully comply with the Antitrust Laws and conduct our affairs so that there is not even an appearance of possible impropriety.

• The primary Antitrust Law of concern is the Sherman Act, a federal law that prohibits conduct that restrains trade. The Act has been interpreted by the courts to prohibit agreements between competitors to fix prices, allocate customers or territories, refusal to deal with third parties, to restrict output or any other type of action to threaten or extract concessions from another company, or any other similar anti-competitive joint action. In some instances, violations are deemed to be felonies and can result in substantial fines and imprisonment.

• Unfortunately, because conferences like this one in general bring competitors together, they have sometimes been misused to engage in restraints of trade in other industries. For that reason, it can be anticipated that antitrust enforcement personnel and others hoping to find support for the existence of improper conduct will be interested in what transpires at such meetings. It is therefore critical that these meetings be conducted in a manner that does not inadvertently create false inferences of possible impropriety.

• You can do your part to protect yourself and others by not engaging in any discussions that could possible be considered as anticompetitive. Such adherence is required while at our Conference, during any sidebar discussions that may occur before or after the Conference and during any breakout sessions and breaks.

• Should you have any questions during your discussions, please consult with your respective legal representative.

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GREG HARTPRINCIPALSALES BENCHMARK INDEX

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JOHN STAPLESSALE FORCE EXCELLENCE

PHILLIPS 66

What Top Sales Managers Do DifferentlyDownload the Sales and Marketing Effectiveness Kit Here:

offers.salesbenchmarkindex.com/grow-your-business

Managing is Not LeadingPage 6

•“One does not ‘manage’ people... The task is to lead people. And the goal is to make productive the

specific strengths and knowledge of every individual.”

•- Peter Drucker

Top sales managers lead their teams, they do not “manage” them

The Importance of Leadership

The industry is becoming more competitive– Increased competition requires better prepared reps– Traditional selling tactics won’t work in the new environment

Strong leadership drives adoption– As customer perceptions change, reps need effective coaching to

adopt new techniques– Creating a company wide management process drives consistency

across the organization

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Why Management is Different From Leadership Page 8

• Leadership and Management are NOT the same thing• They are linked and complimentary• For success, they must work together

Leader Manager

focuses on people focuses on systems and structure

inspires trust relies on control

asks “what” and “why” asks “how” and “when”

develops maintains

motivates and inspires controls people by pushing

coaches and empowers provides instruction

It is not always intuitive to think

about approaching everyday situations from a leadership

perspective

How to Spot a LeaderPage 9

Theme Leadership Management

Style Transformational Transactional

Desires Achievement Results

Risk Takes Minimizes

Direction New Roads Existing Roads

Strategy Inspire Organize

People Coaching/Mentoring Controlling/Directing

Crisis Micro-Lead Micro-Manage

Approach Shoot from the Hip Analyze

Change Develop Mindset Manage Behaviors/Actions

Focus Lead People Manage Processes

Seeks Vision Objectives

Decision Facilitates Makes

Power Personal Charisma Formal Authority

Strategy Reality + Vision Reality + Wisdom

Avoiding Common Leadership MistakesPage 10

Common Mistake Result Best Practice

Giving direction with out explaining why

Reps Become Demotivated and Push Back Actively or Passively

Explain the Reason Behind the Direction and Appeal to the Individual’s Motivating Factors

Miscommunicating Expectations

Disconnect Between Field & Leadership

Communicate Expectations Frequently

Minimal Performance Management

Reps Unsure Of Current ProgressReps Not Held Accountable

Communicate Results & Performance

Offering Insufficient Coaching

Less Talent DevelopmentTeam Not Coached To Full Potential Develop Talent & Grow Skills

Too “Buddy-Buddy” Try to be everyone’s friendSoft Performance Reviews Be Fair – But Be A Boss

Blaming Corporate Leader Fails To Paint Vision As Own Take Responsibility & Ownership

Leadership EssentialsPage 11

Expectations &

Feedback

Consequences&

Incentives

Skills&

Knowledge

Giving theCorrect

Assignment

Inspiring&

Motivating

Motives&

Preferences

• The rep has little control over their work environment and what is expected of them

• As a leader, you must recognize and provide what they cannot

Leaders Provide Clear Expectations & Feedback

Set expectations early and often

• Never too early to explain what is expected• Expectations are set during candidate interviews and the process never ends• Ask each team member how they like to be led/managed

Reinforce expectations through multi-channel communication

• Verbal – team meetings, 1-on-1 meetings, ad-hoc• Written – memos, email, internal communication tool (ie Chatter)• Action – leaders show their team what is expected

Provide timely feedback when expectations are exceeded or not met

Establish a feedback loop so that reps can communicate how your leadership style affects them individually

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Leaders Provide Consequences & Incentives

• People work better when they clearly understand expectations, why they are important, and what the impact of non-compliance is

• People respond better to the carrot than the stick

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• Clearly articulate the consequences of acting outside of expectations as well as the incentives related to desired performance

• Make sure that you are catching your people doing something right and reward them for it

Sales Leader Action Impact on the Rep

Leaders Improve Skills & Knowledge

• Leaders provide clear expectations

• Leaders show the rep how to do something, not just tell them to do it

• Leaders continually identify opportunities to coach for improved performance

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• People need to know exactly what is expected of them

• People learn by seeing and doing – a description or command is not enough

• People want to improve in what they do – good coaching is always welcome

Sales Leader Action Impact on the Rep

• Coaching and development is a key responsibility of a leader

• This must be done on a regular basis, not just at training events & meetings

Leaders Determine Who is Right for the Task

Motives & Preferences

• Leaders invest the time and effort to ensure a good fit

• Leaders understand preferences and set employees up for success

• Leaders recognize where they have a poor match between person and role – and manage accordingly

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Selection & Assignment

You can’t change someone’s internal motivation

Everyone is motivated differently – the right environment fosters success

Capitalizing on strengths will have better outcomes than trying to improve deficiencies

Sales Leader Action Impact on the Rep

Leaders Inspire & MotivatePage 16

• Leaders work with their team to create a shared vision

• Leaders communicate frequently and share successes

• Leaders build relationships with their team members

• A shared vision creates a common goal that is inspiring and motivating

• Communication and recognition makes people feel important and inspires team members to excel

• Relationships help to build real motivation – people work harder for people they care about

Sales Leader Action Impact on the Rep

World Class Leaders Keys to Success

50% Talent Management– Selecting the right talent– Identifying opportunities for improvement– Talent development

50% Performance Conditions– Structure– Process– Tools, job aids, sales aids, product & marketing material

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Provide Structure to Drive Uniform Leadership

In order to drive change, ensure managers do not rely solely on past experience– Emphasis on past experience promotes “status quo” mentality– A central management process promotes best practice sharing across

organization

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Hiring

Planning

Coaching

Developing

MentoringDevelop a management framework

to prevent “ad-hoc” management styles

World Class Leaders Understand their TeamsPage 19

• Management should assess their team’s accountabilities and competencies

• Determine strengths/weaknesses of team and coach accordingly

Training Programs to Address Team Wide Competency GapsPage 20

Determine those competencies lacking team wide and develop

courseware to bring the team up to speed

Leveraging the Individual Development Plan (IDP)Developing your Reps

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• World class leaders develop IDPs to enable their reps

• IDPs provide a framework to coach and develop reps with appropriate tools

Tools to Manage SuccessPage 22

Sales Process

1 on 1 Debriefs

Onboarding Plans

Training Plans

Field Ride Evaluations

Manager Execution

Sales Process ExamplePage 23

Stage Name– Buyer Driven Behavior, Actions, and Decisions

Customer Indications Strategic Sales ActivitiesTypical Customer/Prospect Actions, statements, and observations that point towards this stage being their current state in their buying process.

List of steps, in order of accomplishment, that tell the sales rep what they should be doing to move the customer forward. Some steps are Major Interactions, signified by a MI#1 tag.

Sales Aids Customer/Prospect Exit CriteriaList of the tools the sales rep should use in this Stage to help achieve the exit criteria. Tools with an (I) indicate internal use only; Tools with an (E) indicate external use with customers/prospects.

Defined buyer-exhibited behavior that, once observed, allows you to move the opportunity to the next sales process stage.

1. Recognition

2. Determine

Needs

3. Evalua

te Option

s

4. Resolv

e Concer

ns

5. Selecti

on

Call Plan and SM 1-1 reviewPage 24

Field Ride EvaluationsRep Call Plan

Sales Rep & Manager: 1-1 DebriefPage 25

15 MinutesReview prior 1 on 1 debrief action items

30-45 Minutes Every Two WeeksSales rep comes prepared with topics to discussSales rep guides conversationSales manager to coach with questionsEnd with Action Items

1. Review Previous Action Items

Notes:

1 on 1 Debrief TemplatePreparation:

Execution:

Notes:

2. Career Development Progress (IDP Items, Personal Learning)

3. Training & Development NeedsNotes:

4. Recent Field Ride ExecutionNotes:

Onboarding PlanPage 26

Additional ResourcesPage 27

Reading Material Online Resources

Leading At A Higher Level

The 360° Leader

The Top Ten Mistakes Leaders Make

How Can You Get More Info About SBI?

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Download the Sales and Marketing Effectiveness Kit Here:

offers.salesbenchmarkindex.com/grow-your-business