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Introduction

“People of mediocre ability sometimes achieve outstanding success because they don’t know when to quit.” (George Allen)

W e know that with smaller sales, the amount of information you need for a particular company may be limited, but when you move into the large-dollar sales arena,

it is very important. What we address in this module is the need to obtain a different kind of information.

This domain is often the most critical of all factors in big sales being made faster and with greater consistency. This lesson addresses the critical factors of power, politics and influence, and how they can be understood and properly handled to consummate sales. In this lesson you will learn:

■ The critical elements of the sale in large accounts

■ Building a networks of contacts in the account

■ The concerns of people with financial power

■ Navigating the political shoals in the larger sale

By Brian Tracy

Power,PoliticsandInfluence

Sales Growth Strategies

2© Brian Tracy. All rights reserved. The contents, or parts thereof, may not be reproduced in any form for any purpose without the written permission of Brian Tracy.

What Do You Already Know?

Test your knowledge by attempting to answer the questions below.

1. What are the different types of politics involved in every organization?

__________________________________________________________________ __________________________________________________________________

2. What is a typical form of power?

__________________________________________________________________ __________________________________________________________________

3. What should you include in your presentation to the person with financial power?

__________________________________________________________________ __________________________________________________________________

4. Who is most respected in the organization?

__________________________________________________________________ __________________________________________________________________

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5. Who within the organization will champion you?

__________________________________________________________________ __________________________________________________________________

6. Why are many sales made?

__________________________________________________________________ __________________________________________________________________

7. Why is it important to have a wide range of contacts?

__________________________________________________________________ __________________________________________________________________

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Power, Politics and Influence

1. Large account selling involves politics, power, and influence.

2 There are politics in every organization.

a) The politics are usually associated with the control of resources;

b) People are jockeying for influence over other people;

c) A major reason for politics is ego needs;

■ Though seemingly an irrational factor, ego needs can often make or break a sale.

3 Power determines purchases.

a) The best salespeople understand power and influence factors within prospect organizations;

b) They seek to understand the political structure of decision making from the

first meeting.

4. The top 10% of salespeople are sensitive to power relations.

a) No matter who they are talking to, they are alert to what is really going on; b) They continually ask questions to learn more about the other people

in the account.

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5 Rule: Build a wide network of contacts within the customer organization.

a) The perspective of one or two is limited;

b) The way to develop a network is to ask questions;

c) Then, listen to the answers;

d) Take notes on their responses;

e) Double-check on your perceptions with others;

f) Eventually, you get a clear picture of the way things work.

6 Learn the decision-making process of your customers.

a) This will save you an enormous amount of time;

b) Never assume that you know it already.

7 A decision-maker is a person who can say yes, no, or delay the purchase.

a) There is usually only one person who can say “yes.” Who is it? b) Many people can say “no;”

c) Some people can say, “Not yet.” for a variety of reasons;

■ Some may protect themselves by delaying decisions until the projects die;

■ Delay is the cruelest form of denial.

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8 The typical form of power is position power.

a) The person that has the title doesn’t always make the decision;

b) One rule is often to let other people make the decision and take the responsibility;

c) Some senior executives may defer making decisions as a matter of “political intelligence” or survival.

9 Another form of power is financial power.

a) This person can say “yes;”

b) This person is concerned with the bottom line;

c) In your presentation to this person, talk about bottom line profits and how the organization will be positively affected by the R.O.I.

10 Technical power is often possessed by the person who can say “no.”

a) This person judges if the product is suitable for the organization or not; b) He is most concerned with being accurate or correct.

11 User power is possessed by the person who actually uses the product or service. He has to like it and want to use it.

a) They are going to be asked before the sale is made;

b) You may have to “sell” the usefulness of your product in helping this person get better results.

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12 The next form of power is mentor power.

a) A mentor is a friend who can guide you through every aspect of the sale;

b) This guide wants you to be successful and understands how the organization works, and who you need to talk with to get the sale;

■ Just having one person to help “navigate the political shoals” can make you successful;

■ Finding the person who can help you should be one of your first prospecting activities!

13 Another important form of power is expert power.

a) There may be someone in the organization who is highly respected;

b) Talk to this person first;

c) They may well have a “halo-effect” in the organization;

d) Their opinion is respected and always sought out before a decision is made;

e) Who is most respected in the organization?

14 The vendor-champion is someone who would like you to make the sale in the organization (and is usually outside of the corporation you are prospecting).

a) This person may be your mentor outside the company;

b) Alternately, this person could be someone else who wants to make the sale happen in that organization.

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15 The customer-champion is someone within the corporation that has used your product before and believes in the value of it for this particular customer.

a) Who within the organization will champion you? b) One solid customer champion can open every door for you.

16 There is often an outside power, such as a consultant, an accountant, a lawyer or some other friend or associate who can help you.

a) Resolve to find out who it might be and then meet with them in advance so

that they won’t shoot down your proposal later;

b) Often an outside power can open the door for you and introduce you to the right people.

17 There is the “alternate-solutions” power.

a) They offer solutions that are totally different;

b) Something different is competitor power;

c) You must know who they are and what their alternative solutions are;

d) They can be very powerful. You must identify them and develop a strategy to protect your selling proposition.

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18 Remember that you also have personal power.

a) You can position yourself as an expert;

b) Many sales are made because the seller is liked and respected;

c) You can develop in-depth knowledge of the industry;

d) You can develop knowledge of the customer and his/her needs and problems;

e) The strength of the trust-relationship between you and the customer can overcome many of the doubts that cause him to hesitate;

f) If they like you and believe in you, they will likely buy from you!

19 The critical factor in any buying decision is the factor of risk.

a) Your job is to be the low-risk provider; b) Show how and why your product is the safest choice.

20 In every purchase decision there are risk factors.

a) One risk factor is the size of the sale, the number of dollars;

■ Large dollar investment means bigger risks, more politics.

b) A first-time decision is a big risk if they have never bought this product before;

c) It is a risk if many people are involved and will be affected by the sale, positively or negatively;

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d) The cost of a wrong decision can be a significant risk factor;

e) Possible damage to one’s personal reputation makes people afraid of making a decision;

f) Wherever there are risk factors, politics can emerge and affect the sale.

21 Your job is to look for a win-win result: a positive payoff for each decision maker involved.

a) This is a situation where everyone involved in approving the sale can benefit.

22 Take time to understand the decision-making process at the beginning of your prospecting cycle.

a) This knowledge will help you in the long-run, and especially if the

key players change.

23 There is no substitute in building a political base in an organization for a wide range of contacts.

a) This is accomplished by contacting lots of people. The more people you

know, the more information you receive that will help you to make the sale.

24 How the game is played is critical!

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25 Use your political skill.

a) You can help those who are not skilled in political activity to negotiate through the politics of the organization;

b) You can help them deal with political influences, enabling them to purchase your products and services;

c) Power, politics, and influences have an inordinate impact on whether or not you make all the sales that are possible for you.

Wherever there are people with different opinions and goals, there will be jockeying for power and influence.

Everyone is determined to get the very most for themselves in terms of money, position, authority and status. These are the inevitable facts of life in dealing with any organization.

Your job is to ask questions, position yourself as a friend to everyone, and seek to understand the political decision making process in the organization as it relates to what you sell. Once you have built these essential business friendships and relationships, take time to nurture them throughout the time that they are your customers.

Action Exercises

1. List three different types of decision maker in any sales account:

1. ________________________________________________________________

2. ________________________________________________________________

3. ________________________________________________________________

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2. What are three things you can do from the beginning to develop an understanding of how decisions are made in the customer account?

1. ________________________________________________________________

2. ________________________________________________________________

3. ________________________________________________________________

3. List the three most important risk factors that cause prospects to hold back from the buying decision:

1. ________________________________________________________________

2. ________________________________________________________________

3. ________________________________________________________________

4. Who are three of the key people, inside and outside of your customer accounts, with whom you can build relationships to help you to make the sale?

1. ________________________________________________________________

2. ________________________________________________________________

3. ________________________________________________________________

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5. What are the three biggest obstacles to making a large sale to a company or organization?

1. ________________________________________________________________

2. ________________________________________________________________

3. ________________________________________________________________

6. What are three forms of personal power that you can develop to help you in a sales relationship?

1. ________________________________________________________________

2. ________________________________________________________________

3. ________________________________________________________________

7. What are three factors that can derail a sale?

1. ________________________________________________________________

2. ________________________________________________________________

3. ________________________________________________________________

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What one action are you going to take immediately as a result of what you have learned in this lesson?

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