Sales Secrets for the Masters:Selling for CIO’s

Tom Burland – AT&T

Jim McLoughlin – PeopleSoft

….he who has the money makes the rules!

Introduction

Jim McLoughlin

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

What is selling?

Jim McLoughlin

‘Selling’ is the tip of the iceberg…

DiscoveryDiscovery

‘‘Selling’Selling’

Empathy

Closed Questions

Qualitative and Quantitative Research

Re-state & ConfirmOpen Questions

Remember the Golden Ratio!

2:1!

‘Selling’ is the tip of the iceberg…

DiscoveryDiscovery

‘‘Selling’Selling’

Empathy

Closed Questions

Qualitative and Quantitative Research

Re-state & Confirm

Consequence?

Open Questions

Get an understanding of the consequences!

You have to discover the MANTRA!

Money

Authority

Need

Timescale

Relationships

A

What Issues Do You Experience?

Tom Burland

Low

Low High

High

Authority

Influence

Influential – Authority (I-A)

Non-Influential –Non-Authority (NI-NA)

Non-Influential – Authority (NI-A)

Influential –No Authority (I-NA)

Influence/Authority Matrix

Holden International

Domain The Fox Others in the Power Base

People Outside the Power Base

Shaping corporate strategies, goals and objectives

Shapes strategy; sees the big picture; envisions the future; describes value to the organization

Implement strategy; follow the leadership of the fox

Unclear about strategy or direction

Management philosophy and culture

Articulates philosophy; initiates cultural changes

Understand the philosophy and culture

Cannot articulate management philosophy

Historical influence on others

Provides political advice to others; exercises leverage throughout the network

Go to Fox for Advice

Show poor compatibility with the power base or the Fox

Calculated risks Sponsors initiatives even outside his or her own areas

Support risk taking if sponsored by the Fox

Avoid taking any type of risks

Holden International

Value 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 organization’s track record, experience in either this solution or in past proposed projectsHolden International

Value Proposition

Beginning ________________________________________ (Implementation Date)

As a result of _______________________________________ (Solution Proposed)

[organization] 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

Gamekeeper turned Poacher

Hank Rej

Current Business Process-Statistics & Benchmarks

Gather or create current KPI’s, statistics, etc.

Develop Benchmarks to “Best in Class” and Competition

EXAMPLE:• Number of Suppliers vs. Best in Class: xx,xxx– 1700• Number of PO’s per $B Spend: xxx,xxx – 18,000• Suppliers Comprising Top 80% per $1B: xxx – 10• FTE’s per $1B Spend: xxx – 36 • Percentage of RFx’s that are Electronic: xx% - 37%• Percentage of PO’s that are Electronic: xx% - 85%

Source: Hackett Group

Business Process: As Is (Current) & To Be

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!

Source: Supplier Selection & Awarding Process

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

Business Process: As Is (Current) & To Be

Challenges

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 KPI’s

TCO

Credibility

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

Other Areas for Potential SavingsThere 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.

Reasons to InvestYour 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

ExampleBusiness Case Name

Executive Presentation Date

Start 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

Outline Key Strategic Principles

Project Name:• Increase shareholder value• Increase EBITDA by lowering _______________• Generate free cash flow

Project or Functional Goals (if they exist):1. Reduce COGS through leveraged strategic sourcing2. _______________________________________3. _______________________________________

Opportunity:• Ex: Leverage xx% to xx% of direct material spend

Proposal/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

Business Case Financial Summary

Project pays for itself, creates positive cash flow

Summary - 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

Lesson to learn:

If you’re the poacher, you better think like the gamekeeper!

‘Asking for the Order’

Jim McLoughlin

Circa 1982, UK

Selling is as easy as ABC….

Always Be Closing!

Sales cycle

Trial close

Trial close

Trial close

Close!Trial close

Trial close

Ask for the order frequently…but do it gently!

Ask for the order…and then stay silent!

Assume a ‘Yes’…

“OK…I’ll 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?”

Reprise & Summary

Jim McLoughlin

What’s the Golden Rule?

What’s the Golden Ratio?

What’s 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?

Sales Secrets for the Masters:Selling for CIO’s

Tom Burland – AT&T

Jim McLoughlin – PeopleSoft