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?

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

Sales management disciplines are at its core

6

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

Sales management disciplines are at its core

7

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

EY Bain

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

Example Project: ADP

8

“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

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

Example Project: JCI Tyco

9

“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

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

SFE Research

10

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

© Copyright 2018 The Sales Management Association. All rights reserved.11

What motivates your interest in this topic?

Elements of Commercial Effectiveness

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

A continuum of sales management disciplines

13

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

A foundational element

14

• 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

15

Sales Management Association research Investments in Salesperson Skill Development 2016.

© Copyright 2018 The Sales Management Association. All rights reserved.16

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

Value Propositions, a crash course

17

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

Not a Value Proposition

18

Three Kinds of Value Propositions

19

“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

20

• Relevance• Quantified value• Differentiation

Narus and Anderson

Assessing Effectiveness

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

A continuum of sales management disciplines

22

© Copyright 2018 The Sales Management Association. All rights reserved.23

How do you know where to start?

Assessing Strategy: Ansoff’s Matrix, adapted

24

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

26

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

27

• A taxonomy of sales jobs

HR Chally GrowthPlay

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

Assessing Deployment

28

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

29

• 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…

30

xTransactional Sales Relationships

ConsultativeSales

Relationships

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

… sales jobs are “bifurcating”

31

x

Transactional Sales Relationships

ConsultativeSales

Relationships

xx

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

© Copyright 2018 The Sales Management Association. All rights reserved.32

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

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

A continuum of sales management disciplines

33

© Copyright 2018 The Sales Management Association. All rights reserved.34

How do you assess “selling” effectiveness?

Structuring Projects

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

Typical Project Phases

36

© Copyright 2018 The Sales Management Association. All rights reserved.37

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

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

Work Team, Steering Team

38

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

Project Leader

39

Mobilizing for Change

© Copyright 2018 The Sales Management Association. All rights reserved.41

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

© Copyright 2018 The Sales Management Association. All rights reserved.42

How do you get consensus for what to change?

Implementation

© Copyright 2018 The Sales Management Association. All rights reserved.44

What are your most significant challenges in implementing change?

© Copyright 2018 The Sales Management Association. All rights reserved.45

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

46

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

George.Nichols@emerson.com mapiekarski@aol.combit.ly/2PviBCG

steve.penn@tekni-plex.combit.ly/2NEIDBx bit.ly/2CdgaRd

rjsbtg@me.com