2018 1014.00 launching a commercial effectiveness initiative · sales management association...

Sales Force Productivity Conference ● 15-17 October 2018 ● Ritz-Carlton, Atlanta ● © 2018 The Sales Management Association. All rights reserved.

LAUNCHING (AND LANDING) A COMMERCIAL EFFECTIVENESS INITIATIVE

Presented by :

GEORGE NICHOLSEmerson

STEVE PENNTekni-Plex

MARGARET PIEKARSKILEAD Training and Consulting

BOB SANDERSReflect Systems

© Copyright 2018 The Sales Management Association. All rights reserved. 2

OUR PRESENTERS

MARGARETPIEKARSKI

Principal

LEAD Training and Consulting

BOBSANDERS

Executive Vice President of Sales

Reflect Systems

GEORGENICHOLS

Director of Sales, AirConditioning

Emerson Commercial & Residential Solutions

STEVEPENN

Vice President,Sales & Marketing

Tekni-Plex

+1

Distinguished Panelist to be Named Later

Commercial Effectiveness

© Copyright 2018 The Sales Management Association. All rights reserved.

Sales Force Change

4Sales Management Association research, Sales Enablement Practices, August 2018.

© Copyright 2018 The Sales Management Association. All rights reserved.5

Commercial effectiveness:What is it?


Sales management disciplines are at its core

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Sales management disciplines are at its core

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..also a focus on non-sales functions impacting customer value

EY Bain


Example Project: ADP

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“The market shift required a radical change in sales strategy... a radical approach to the structure of Global Enterprise Solutions. This was made possible by a leadership change and by executive sponsorship. Change focused on 4 areas…”

Sales Transformation Case Study: Realigning Enterprise Sales at ADP. Sales Force Productivity Conference October 2016


Example Project: JCI Tyco

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“Legacy Tyco, now Johnson Controls, set out on a major sales force effectiveness transformation, … and faced several challenges…”

As profiled in The ROI of Sales Force Effectiveness Initiatives. Sales Force Productivity Conference October 2016


SFE Research

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Results of research jointly conducted by Sales Management Association and ZS associates as profiled in The ROI of Sales Force Effectiveness Initiatives, Sales Force Productivity Conference, October 2016


What motivates your interest in this topic?

Elements of Commercial Effectiveness


A continuum of sales management disciplines

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A foundational element

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• Redefining value is often the impetus for CE/SFE projects, but how value is defined often isn’t clear

Value proposition definition

Delivering value a big challenge

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Sales Management Association research Investments in Salesperson Skill Development 2016.


How do you know if your value proposition is any good?

Value Propositions, a crash course

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• There are three generic types• Good value propositions have very specific qualities• Companies are terrible at articulating value

Not a Value Proposition

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Three Kinds of Value Propositions

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“All Benefits”

A list of every benefit a supplier thinks their offering might deliver

“Favorable Points of Difference”

• Explicitly recognizes that the customer has an alternative.

• Differences in value may not equal differential value to the customer.

“Resonating Focus”

• “Simple yet powerfully captivating”

• Offering must be superior on those few elements of most value to the customer

• Must be communicated in such a way that coveys a sophisticated understanding of the customer’s business priorities.

Narus and Anderson

© Copyright 2018 The Sales Management Association. All rights reserved. 20

The Best Value Propositions

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• Relevance• Quantified value• Differentiation

Narus and Anderson

Assessing Effectiveness



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How do you know where to start?

Assessing Strategy: Ansoff’s Matrix, adapted

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OFFERINGSCore New or Additional

New

Old

CUSTOMERS

MaintenanceSelling

PenetrationSelling

AcquisitionSelling

New Market Selling

Assessing Sales Strategy: Maintain, Acquire, Penetrate

1,43521.5% Gross Profit

This Year’s Sales

($MM)

Last Year’s Sales Maintenance

1,05919.9% Gross Profit

$1,44721.3% Gross Profit

73.8%

6.2%20.5%Acquisition

PenetrationChurn(376)20.9% Gross Profit

Slide 25© Copyright 2010 – 2013 The Sales Management Association, unless otherwise noted. All rights reserved.

9418.6% Gross Profit

29423.4% Gross Profit

Sales Process’ Advantages

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Sales Management Association research, Automating Sales Process 2014. N= 74 firms. “High performing firms” are those achieving both sales and profit objective in the preceding 12 month performance period.

Sales Structure: Sales Jobs Taxonomy

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• A taxonomy of sales jobs

HR Chally GrowthPlay


Assessing Deployment

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Adapted from TerrAlign’s presentation for the Sales Management Association Managing Sales Territories for Maximum Sales Force Productivity, October 2012.

The coverage model matters too

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• Balancing territories efficiently apportions workload in order to improve productivity

• Job role specialization also affects productivity

“The greatest improvement in the productive powers of labour, and the greater part of the skill, dexterity, and judgment with which it is any where directed, or applied, seem to have been the effects of the division of labour.”–Adam Smith

Meanwhile back at the ranch…

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xTransactional Sales Relationships

ConsultativeSales

Relationships

Adapted from Neil Rackham Sales Management’s New Frontier, 2012 Sales Force Productivity Conference

… sales jobs are “bifurcating”

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x

Transactional Sales Relationships

ConsultativeSales

Relationships

xx

Adapted from Neil Rackham Sales Management’s New Frontier, 2012 Sales Force Productivity Conference


Other approaches for identifying issues and assessing strategy, process, structure?



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How do you assess “selling” effectiveness?

Structuring Projects


Typical Project Phases

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How do you allocate effort across a project’s assessment, design, implementation?


Work Team, Steering Team

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Project Leader

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Mobilizing for Change


How do you get buy-in? From salespeople? From management? From others?


How do you get consensus for what to change?

Implementation


What are your most significant challenges in implementing change?


What activities have been most helpful to commercial effectiveness project success?

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Q & A PLEASE BE SURE TO SPEAK INTO THE MICROPHONE. WE’RE RECORDING!

GEORGE NICHOLS

Director of Sales, Air Conditioning

Emerson Commercial & Residential Solutions

STEVEPENN

Vice President, Sales and Marketing

Tekni-Plex

MARGARETPIEKARSKI

Principal

LEAD Training and Consulting

BOBSANDERS

Executive Vice President of Sales

Reflect Systems

[email protected] [email protected]/2PviBCG

[email protected]/2NEIDBx bit.ly/2CdgaRd

[email protected]

2018 1014.00 launching a commercial effectiveness initiative · sales management association...

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