© solution selling, inc. 2008 sales tool build workshop
TRANSCRIPT
© Solution Selling, Inc. • 2008 PAGE 2www.solutionselling.com
Credit, Copyright, and Contact Information
Trademark Notice: The following trademarks and service marks are owned by Sales Performance Holding Company (DBA: Solution Selling, Inc.) and licensed by Sales Performance International, LLC. Any questions concerning the use of these trademarks or whether a name that does not appear on this list is in fact a trademark of Solution Selling, Inc. or comments concerning this manual, workshop or presentation should be referred to Sales Performance International, LLC in the United States at the following address:
4720 Piedmont Row Drive, Suite 400Charlotte, North Carolina 28210 USA
Phone: 704.227.6500 FAX 704.364.8114
Solution Selling® and Situational Fluency Prompter®, Pain Sheets®, 9 Block Vision Processing Model® and Pain Chains® are registered trademarks and service marks of Solution Selling, Inc. All other referenced marks are those of their respective owners.
Copyright Notice: This manual is a copyrighted work of Solution Selling, Inc. This manual may not be reproduced in whole or in part without the prior written consent of Solution Selling, Inc.
Additionally, Sales Management and Coaching, Targeted Territory Selling, Major Account Selling, Strategic Opportunity Selling, and Executive-Level Selling are copyrighted materials of Solution Selling, Inc.
© Solution Selling, Inc. • 1985 - 2008
© Solution Selling, Inc. • 2008 PAGE 3www.solutionselling.com
MMTC Sales Process Map: (Draft 9/16/09)
Close IM Analyze Develop Prove NegotiatePlan Implement
What HELP is available?Define needs/wants & requirements
Evaluate options
Select solutions and evaluate risk Resolve issues and finalize contracts Implement and
evaluate success
Get necessary documents signed
Identify potential beneficiary
Establish trust and credibility
Stimulate interest Identify perceived
pain Conduct plant
tour Confirm and
prioritize pain Confirm dialogue
and agree upon next steps
Diagnose admitted pain of Sponsor
Create or reengineer vision for sponsor
Gain agreement to explore further
Negotiate access to power
Confirm dialogue and agree upon next steps
Diagnose admit-ted pain of Power
Create or reengineer vision for power sponsor
Gain agreement to explore further
Determine evaluation criteria
Propose a plan of next steps
Confirm dialogue and agree upon plan of next steps
Begin execution of next steps
Present preliminary solution
Prove capabilities (Oper, Trans, Fin)
Conduct review of proposal
Issue proposal Ask for the
business Receive verbal
approval
Prepare for final negotiations
Reach final agreement
Conduct territory / account and/or opportunity planning
Identify potential opportunity
Conduct pre-call planning and research
Participation and follow-up of Learn About & Seminars
Develop Partner Relationships
Lead Follow-up
Implement solution
Complete implementation approach
Measure success criteria
Identify potential new opportunities
Obtain referrals
Documents signed
Lead Letter agreed upon
Sponsor Letter agreed upon
Evaluation Plan modified or agreed upon
Verbal approval received
Ts and Cs agreed upon
Territory / Acct / Opportunity Plan developed
Evaluations & Lead Tracking
90%10% 25% 50% 75% 100%
S.A. PrompterValue PropositionReference StoryBus. Dev. LetterBus. Dev. PrompterWaste WalkTrans. Planner/BPS
9 Block Model®Pain Sheet®S. A. PrompterSponsor LetterTrans. Planner/BPS
9 Block Model®Pain Sheet®S. A. PrompterPower S. LetterEvaluation Plan
Evaluation PlanTransition LetterImplement. PlanValue AnalysisSuccess Criteria
/A3
Negotiating Worksheet
Get-Give List
T/A/O PlanAccount ProfilePain Chain®Key Players List
Implementation Plan
Success CriteriaA3Reference StoryPost project debrief
Plan Execute Implement
Sales Sales mgt. Sales support
Sales Pre-sales Marketing
Sales Pre-sales Sales mgt. Subj Expert
Sales Pre-sales Sales mgt. Subj Expert
Sales Pre-sales Sales mgt. Subj Expert
Sales Sales mgt.
Sales Sales mgt.
Sales support Services Sales
Sales Process Steps
Sales Process Activities
Verifiable Outcomes
Roles (examples)
Sales Tools
Sales Management System
Implementation Plan completed
Buying Process
© Solution Selling, Inc. • 2008 PAGE 4www.solutionselling.com
Defensible Differentiators: Template
Differentiator Pain Linkage Defensibility
© Solution Selling, Inc. • 2008 PAGE 5www.solutionselling.com
Core Capabilities: Template
Core Capabilities Pain Linkage Key Selling Points
© Solution Selling, Inc. • 2008 PAGE 6www.solutionselling.com
10
100VALUE
UNIQUENESS
Differentiation Grading Chart
Cool,
Nice to haveDifferentiators
Core/
Commodity
Junk
© Solution Selling, Inc. • 2008 PAGE 7www.solutionselling.com
Solution Messaging Card: Definitions
Pain One of the core pains
Reasons for Pain
Contributing factors or causes to the pain
Organization Impact
Additional critical issues that could happen as a result of the pain not being addressed Could be personal or organizational impact
Trend Relevance
Additional talking points around this pain that are happening in the marketplace Could find information related to industry or issue specifically through 3 rd party research Trends will be used to help improve messaging and enable sales to establish creditability through
increased situational knowledge Ensures empathy for the customer and their situation
Capabilities
What the customer must do to address the pain and reasons Should be stated as “ability to” in non-solution and company specific way Should link to core capabilities and defensible differentiation
Solution Linkage Name of solution and/ or components that address the pain
Differentiators Specific differentiators components included in the solution
Metrics / Proof of Value
Specific points of measure/ KPI’s that will be impacted after solution is implemented
Key Players Roles within the organization who typically experience this specific pain
Case Studies Example case studies of where this pain was solved for another customer
© Solution Selling, Inc. • 2008 PAGE 8www.solutionselling.com
The Training Application Breakdown
100% 100%
<10%
~30% ~30%
Training / HRFocus
Sales OpsFocus
TrainingBusiness Results
THE GAP
THE GAP
TOOLS PLAY MAJOR ROLE IN CLOSING THE APPLICATION GAP
© Solution Selling, Inc. • 2008 PAGE 9www.solutionselling.com
Three Key Audiences that Benefit
THOSE WHO BUILD
THOSE WHO USE
SALES TOOLS
THOSE WHO
INSPECT
Sales ManagementEducate on usage, role in opportunity management (inspection) and coaching
Sales ProfessionalsEducate on when and how
to use them and which ones to use
Marketing, Delivery and Sales Professionals
Focus on supporting sales by building sales tools
(interim and going forward)
© Solution Selling, Inc. • 2008 PAGE 10www.solutionselling.com
MMTC Sales Process Map: (Draft 9/16/09)
Close IM Analyze Develop Prove NegotiatePlan Implement
What HELP is available?Define needs/wants & requirements
Evaluate options
Select solutions and evaluate risk Resolve issues and finalize contracts Implement and
evaluate success
Get necessary documents signed
Identify potential beneficiary
Establish trust and credibility
Stimulate interest Identify perceived
pain Conduct plant
tour Confirm and
prioritize pain Confirm dialogue
and agree upon next steps
Diagnose admitted pain of Sponsor
Create or reengineer vision for sponsor
Gain agreement to explore further
Negotiate access to power
Confirm dialogue and agree upon next steps
Diagnose admit-ted pain of Power
Create or reengineer vision for power sponsor
Gain agreement to explore further
Determine evaluation criteria
Propose a plan of next steps
Confirm dialogue and agree upon plan of next steps
Begin execution of next steps
Present preliminary solution
Prove capabilities (Oper, Trans, Fin)
Conduct review of proposal
Issue proposal Ask for the
business Receive verbal
approval
Prepare for final negotiations
Reach final agreement
Conduct territory / account and/or opportunity planning
Identify potential opportunity
Conduct pre-call planning and research
Participation and follow-up of Learn About & Seminars
Develop Partner Relationships
Lead Follow-up
Implement solution
Complete implementation approach
Measure success criteria
Identify potential new opportunities
Obtain referrals
Documents signed
Lead Letter agreed upon
Sponsor Letter agreed upon
Evaluation Plan modified or agreed upon
Verbal approval received
Ts and Cs agreed upon
Territory / Acct / Opportunity Plan developed
Evaluations & Lead Tracking
90%10% 25% 50% 75% 100%
S.A. PrompterValue PropositionReference StoryBus. Dev. LetterBus. Dev. PrompterWaste WalkTrans. Planner/BPS
9 Block Model®Pain Sheet®S. A. PrompterSponsor LetterTrans. Planner/BPS
9 Block Model®Pain Sheet®S. A. PrompterPower S. LetterEvaluation Plan
Evaluation PlanTransition LetterImplement. PlanValue AnalysisSuccess Criteria
/A3
Negotiating Worksheet
Get-Give List
T/A/O PlanAccount ProfilePain Chain®Key Players List
Implementation Plan
Success CriteriaA3Reference StoryPost project debrief
Plan Execute Implement
Sales Sales mgt. Sales support
Sales Pre-sales Marketing
Sales Pre-sales Sales mgt. Subj Expert
Sales Pre-sales Sales mgt. Subj Expert
Sales Pre-sales Sales mgt. Subj Expert
Sales Sales mgt.
Sales Sales mgt.
Sales support Services Sales
Sales Process Steps
Sales Process Activities
Verifiable Outcomes
Roles (examples)
Sales Tools
Sales Management System
Implementation Plan completed
Buying Process
© Solution Selling, Inc. • 2008 PAGE 11www.solutionselling.com
Plan IM Analyze & Develop Prove Finalize and Close Implement
Sales Process with Sales Tool and Verifiable Outcomes Emphasis
Account Profile Key Players List Messaging Cards Pain Chain® Value Proposition Reference Story Business
Development Letter / Prompters
Strategic Alignment Prompter (First Call Introduction)
Reference Story 9 Block Model® Pain Sheet® for
Sponsor (including Differentiators)
Pain Chain® Sponsor Letter
9 Block Model® Pain Sheet® for
Power Sponsor (including Differentiators)
Power Sponsor Letter
Success Criteria Evaluation Plan
Evaluation Plan Transition Issue and
Capabilities Implementation /
Transition Plan Letter
Implementation / Transition Plan
Value Analysis / Justification
Negotiating Worksheet
Get-Give List
Implementation Plan Success Criteria Reference Story
Sales Process Steps
Verifiable Outcomes
Sales Tools
Sales Management System (with Win Odds per Milestone)
Lead Letter agreed upon
Sponsor Letter agreed upon
Evaluation Plan modified or agreed upon
Verbal approval received
Ts and Cs agreed upon
Documents signed
90%-100%10% 25% 50% 75%
© Solution Selling, Inc. • 2008 PAGE 12www.solutionselling.com
Talent Assessment
Are intuitive Have conversations Ask questions
Make presentations Make statements Process is key to success
80%80%
20%20%
JourneypeopleJourneypeople
EaglesEagles
© Solution Selling, Inc. • 2008 PAGE 13www.solutionselling.com
Situational Fluency
What Buyers Should Expect from Salespeople
Situational Knowledge
Capability Knowledge
People Skills
Selling Skills
How Do We Integrate?
Situational Fluency: Integration of knowledge and skills by the salesperson for “eagle” performance
© Solution Selling, Inc. • 2008 PAGE 14www.solutionselling.com
Key Selling Skills
PLAN CREATE QUALIFY DEVELOP PROVE NEGOTIATE CLOSE
Sales Process Steps
ProspectingProspecting
Developing NeedsDeveloping Needs
Developing and Delivering ValueDeveloping and Delivering Value
Managing ProofManaging Proof
Accessing Power
Accessing Power
Qualifying / DisqualifyingQualifying / Disqualifying
Controlling the ProcessControlling the Process
AligningAligning
Negotiating / ClosingNegotiating / Closing
© Solution Selling, Inc. • 2008 PAGE 15www.solutionselling.com
Shifting Buyer Concerns
Phase I:Determine Needs
Phase II:Evaluate Alternatives
Phase III:Evaluate Risk
Needs
Cost
Solution
Risk
Risk
Price
Solution
Needs
Buying Phases
Time
Le
ve
l o
f C
on
ce
rn
© Solution Selling, Inc. • 2008 PAGE 16www.solutionselling.com
Sales Tools for Completion
Sales Tool Groups Purpose and/or Actions
Group 1
Account Profile Key Players List Pain Chain®
Brainstorm, analyze, discuss and agree upon key elements of a general opportunity upon which the development of all other sales tools will be based
Group 2
Business Development Prompters and Letter Reference Story Initial Value Proposition First Call Introduction
Develop sales tools that can be used to assist a sales professional in initiating a sales cycle by establishing credibility and targeting possible critical issues of the prospect
Group 3
Pain Sheet® (Sponsor and Power Sponsor) Evaluation Plan Transition Issues & Capabilities Transition-Implementation Plan Value Analysis / Justification Success Criteria Negotiating Worksheet and Get-Give List
Create sales tools to help control the sales cycle, qualify the buying process, and mitigate buyer’s risk through promoting value and offering proof
Group 4
Sponsor and Power Sponsor Letters Situation Questions Go/No Go Step Completion Letter Sponsor Vision Reengineering Letter Transition Plan Letter
Complete these sales tools based on input from Sales Tool Groups 1-3
© Solution Selling, Inc. • 2008 PAGE 17www.solutionselling.com
Basic Principle
NO PAIN, NO CHANGE
Pain = Problem, Critical Business Issue or Potential Missed Opportunity
BASIC PRINCIPLE
© Solution Selling, Inc. • 2008 PAGE 18www.solutionselling.com
Criteria for Pain
Job specific
How the prospect is:
Measured
Motivated
Recognized
Rewarded
Viewed by peers
Personal
Provides a compelling reason to act
© Solution Selling, Inc. • 2008 PAGE 19www.solutionselling.com
Basis of Pain
Increasing Costs Competitive losses Errors Customer complaints Returns Employee turnover
Eroding Profits Market share Service quality Growth rate Customer care
Compliance Government regulation Industry standard
?COMMON
DENOMINATOR
© Solution Selling, Inc. • 2008 PAGE 20www.solutionselling.com
Basic Principle
YOU CAN’T SELL TO SOMEONE WHO CAN’T BUY
BASIC PRINCIPLE
© Solution Selling, Inc. • 2008 PAGE 21www.solutionselling.com
Approval Types and Roles
Informal: Opportunity Level
Sponsor
Cannot make the buying decision
Provides information
Conducts internal selling
Provides access to power
Power Sponsor (a.k.a. “VP of Change”)
Enough influence (regardless of title) and authority to get it if they want it, even if unbudgeted
Can and will take you anywhere in the organization you need to go
Can and will negotiate the steps leading to a buying decision
Beneficiary
Adversary
End user
Formal: Account Level
Legal / Technical / Administrative (Purchasing)
Financial
Ultimate Authority
© Solution Selling, Inc. • 2008 PAGE 22www.solutionselling.com
Three Sales within a Sale
LINE OF BUSINESS SALE
Operational Vision
“What capabilities do we need to meet our business goals?”
LINE OF BUSINESS SALE
Operational Vision
“What capabilities do we need to meet our business goals?”
TRANSITION SALE
Transition / Implementation Vision
“How do we get from where we are today to where the Line Vice
Presidents want to be?”
TRANSITION SALE
Transition / Implementation Vision
“How do we get from where we are today to where the Line Vice
Presidents want to be?”
FINANCIAL SALE
Operational Vision+
Transition / Implementation Vision
“What is the overall value to the organization?”
FINANCIAL SALE
Operational Vision+
Transition / Implementation Vision
“What is the overall value to the organization?”
© Solution Selling, Inc. • 2008 PAGE 23www.solutionselling.com
Basic Principle: There are Four Levels of Buyer Need
Level One: Latent Pain
Level Two: Admitted Pain
Level Three: Vision of a
Solution
Level Four:
Active Evaluation
BASIC PRINCIPLE
© Solution Selling, Inc. • 2008 PAGE 24www.solutionselling.com
Four Levels of Buyer Need: Definitions
Level Four: Active Evaluation Power person driving evaluation Business issues are defined Requirements are documented Evaluation team in place
Level Three: Vision of a Solution Buyer accepts responsibility for solving problem Buyer can visualize the when, who, and what that will
enable them to address the reasons for their pain
Level Two: Admitted Pain Buyer is willing to discuss problems, difficulties or
dissatisfaction with the existing situation Buyer admits the problem, but does not know how to solve
it
Level One: Latent Pain Buyer is not actively attempting to address a problem for
which the salesperson can see a solution Buyer is unaware a potential solution exists or may have
failed at previous attempts to solve the problem Buyer has rationalized potential solutions viewed so far as
“too expensive,” “too complicated,” or “too risky,”
© Solution Selling, Inc. • 2008 PAGE 25www.solutionselling.com
Conceptual Sales Territory
Power person driving evaluation Business issues defined Requirements documented Evaluation team in place
*
Not Looking
Active *
Of all the people who could benefit from your offering…
What % are actively evaluating?
© Solution Selling, Inc. • 2008 PAGE 26www.solutionselling.com
How Organizations Evaluate and Buy
Not Looking Active Requirements Company A Company B Company C
© Solution Selling, Inc. • 2008 PAGE 27www.solutionselling.com
Identify Opportunities through Planning
Territory Territory
Account Account Account AccountAccount
Opp Opp Opp Opp Opp
Existing Accounts New Accounts
Territory Planning
Account Planning
Opportunity Planning
© Solution Selling, Inc. • 2008 PAGE 28www.solutionselling.com
Planning
Account Pre-call Planning and Research
Key Areas to Research
Company History Nature of the business Mission statement Annual reports / 10Ks
Offerings Description Types Uniqueness
Market analysis Size Location Trends Maturity Share
Financials Balance sheet Income statement Track record
Competition How positioned Strategies Comparisons
Executive profiles Work history Education Competencies
Potential critical business issues (pains)
Opportunities in the Pipeline
© Solution Selling, Inc. • 2008 PAGE 29www.solutionselling.com
Account Pre-call Planning and Research
Information Sources
Review account’s website
Access public information
Annual Reports / 10-Ks
• Chairman’s Letter
• Financial highlights
Dun & Bradstreet (contact Marketing Manager) * – company overviews: financials, key people in the organization, industry-related news, competitor profiles, business & financial rankings, and company subsidiaries.
Google News Alert
MSN Business Online (www.msnbc.com) Company information and news articles searchable at the world, national and local levels
OneSource (www.onesource.com) * – A single source for detailed company information for both public and private companies.
Standard & Poor’s (www.standardandpoors.com) – Financial information about organizations around the world in multiple languages. Financial information includes credit ratings, equity research, global indices and articles pertaining to the financial impact associated with world events.
US Securities Exchange Commission (www.sec.gov) – Information on public filings from 1993 – present
Yahoo Finance
Contact account’s shareholder department (e-mail) with specific questions – become a shareholder
Contact salespeople and account managers within the prospect organization
© Solution Selling, Inc. • 2008 PAGE 30www.solutionselling.com
Account Pre-call Planning and Research
What to Do with the Information
Identify key players
Identify potential areas for critical business issues (pains)
Match up key players with critical business issues (pains)
Align your capabilities to each key player and potential pain
Create an Initial Pain Chain® for the potential opportunity
Target most likely Power Sponsor
Determine your business development strategy leveraging the specific information gathered
Develop or select appropriate stimulating interest Sales Tools to support the strategy
Account-level activities
Opportunity-level activities
© Solution Selling, Inc. • 2008 PAGE 31www.solutionselling.com
Account Profile – Titan Games Inc. (TGI): Example
Account ProfileCompany:Titan Games Incorporated (TGI) is a 20 year old organization which manufactures and distributes educational and recreational games and toys throughout the world.Offerings:TGI manufactures a line of educational and recreational games and toys that are endorsed and approved by leading experts in the field, and are ergonomically designed. Market analysis:Loss of shelf space has created market erosion, hence a loss of sales while lessening the company’s competitive position.Financials:
Sales have declined in direct proportion to market and shelf space loss. Earnings per share have had a disproportionately high decline as margins are squeezed, and costs cannot be reduced quickly enough to protect profits.Competition:There are five primary competitors, three of which are technologically in a position to take advantage of TGI’s inefficiencies.Executive profiles:The CEO, Susan Brown, was hired in the past year to turn the company around because earnings per share have declined. The VP Finance, Jim Smith, has been with TGI for the past 5 years. He is currently unable to positively affect profits due to missed revenue targets and the increasing cost of credit write-offs. The VP Sales & Marketing, Steve Jones, is chartered with increasing revenues for TGI. He has been hampered by technology limitations that cause his salespeople to spend too much time servicing existing accounts while not developing new ones. The CIO, John Watkins, has been chartered with finding a solution to the technology deficiencies.Potential critical business issues:CEO: Earning per share are declining; VP Finance: Eroding profits, VP Sales & Marketing: Missing new account revenue targets
© Solution Selling, Inc. • 2008 PAGE 32www.solutionselling.com
Sales Tool Description
Account Profile
Overview:
A brief overview of a target company that describes particular elements of the organization. The profile highlights challenges the organization is facing.
Where / How used:
The Account Profile serves as an ideal “quick information” resource for you to gain insight about an account into which you are about to make contact. The profile should include: Overview of the Company, Description of their Offerings, Analysis of their Markets, Summary of their Financial Status, Description of their Competition, Executive Biographies and Descriptions of Potential Pains.
What you should achieve:
The Account Profile should help you or your team to strategize on how to move forward with a potential opportunity by identifying specific pains the organization is likely to be facing. Additionally, identification of key players with the organization and their pains will start to formulate a picture of how the individuals’ pains are connected in a cause and effect relationship.
Input required:
Knowledge of the prospect’s organization, key players, and pains they are likely facing – a Key Players List for the industry will be useful.
Note: Account Profiles can be supplemented by corporate information such as Account Plans or Customer Relationship Management data. There are also many third party organizations that can serve as a resource for researching and providing the latest information on accounts. A complete Account Profile represents the minimum amount of information that should be known before engaging with an opportunity.
© Solution Selling, Inc. • 2008 PAGE 33www.solutionselling.com
Exercise: Develop a Sample Account Profile
Purpose:
To draft an Account Profile of a typical client to use as an example
Activities:
Record key information about a typical account that would benefit from the selected offering(s)
Notes:
You may model the profile after a real account, but reserve the right to change the information if necessary
© Solution Selling, Inc. • 2008 PAGE 34www.solutionselling.com
Account Profile: Template
Account ProfileCompany:
Offerings:
Market analysis:
Financials:
Competition:
Executive profiles:
Potential critical business issues:
© Solution Selling, Inc. • 2008 PAGE 35www.solutionselling.com
Account Profile: Template
Account ProfileCompany:Hillsdale Terminal, Inc. Manufactures and distributes electrical terminal products mostly in automotive and recreational vehicle industries. Current market is US. Company has been in business for
Offerings:Manufacturer of Solderless crimp terminals and wiring accessories
Market analysis:Customers are boat manufacturers and recreational and leisure manufacturers. Sell only to distributors, wholesalers, end users
Financials:
D&B says $3.4m annual sales
Competition:Tyco, Terminal Supply, 3M
Executive profiles:Frank Condon is President of company. Jim Condon is VP
Potential critical business issues:Want to sell retail, build a capacity to sell on the web
© Solution Selling, Inc. • 2008 PAGE 36www.solutionselling.com
Key Players List: Manufacturing Industry (SME)
Key Players (Job Title) Potential Pains
President/Owner Missing profit goals Growth goals not being achieved Lack of a future workforce
Controller/CFO Increasing costs Inadequate cash flow Profit goals not being met
VP Operations/
Plant Manager
Increased production costs Excess Inventory Declining throughput
Production Manager Declining first pass yield Decreased employee productivity Inefficient equipment/processes
Quality Manager Increased defects Inadequate QMS to meet needs of new, larger customers Higher costs/less results implementing QMS
VP Engineering Miss-alignment with sales on product specs Commoditized/mature products Risks associated with new product launch
Sales/Marketing Mgr
Declining sales revenue Missing new account targets Increased difficulties to differentiate Ineffective sales channels performance
CI Manager Difficulty sustaining internal process improvement Declining employee productivity
HR Manager Challenge attracting/retaining qualified labor Increasing average age of workforce
© Solution Selling, Inc. • 2008 PAGE 37www.solutionselling.com
Job Aid Description
Key Players List
Overview:
The Key Players List is a listing by industry of important job titles along with the likely critical business issues (pains) which that job title (key player) might face.
Where / How used:
The Key Players List helps you identify pains to probe for when marketing to, calling on or meeting with a particular buyer based on their job title and role. This is especially helpful when calling on a buyer or within an industry where you may less inexperience with or be unfamiliar with.
The Key Players List can be used to initiate sales opportunities by identifying latent pains that buyers have not yet recognized. It also can be used to identify the underlying pain which have driven a buyer to commit to action in active sell cycles.
What you should achieve:
By using the Key Players List, you should be able to more quickly identify key players and their potential pains. It also can help develop your situational knowledgeable and experience in a given industry.
Input required:
To create a Key Players List, you must research the key players, their pains and job titles within your target industries.
© Solution Selling, Inc. • 2008 PAGE 38www.solutionselling.com
Exercise: Develop a Key Players List
Purpose:
To draft a Key Players List to use as an example
Activities:
Identify 5-6 client key players (by title) typically involved in a sales cycle for your chosen offering(s)
Record 5-6 potential pains faced by each key player. Ideally, your offering would directly or indirectly address one or more pains of the key players
Notes:
Choose key players that represent various approval types such as Sponsors, Power Sponsors, etc
Remember a pain is personal and specific to the person and their role
© Solution Selling, Inc. • 2008 PAGE 39www.solutionselling.com
Key Players List Template
Key Players (Job Title) Potential Pains
© Solution Selling, Inc. • 2008 PAGE 40www.solutionselling.com
Key Players List Template (Continued)
Key Players (Job Title) Potential Pains
© Solution Selling, Inc. • 2008 PAGE 41www.solutionselling.com
Basic Principle
PAIN FLOWS THROUGH AN ENTIRE ORGANIZATION
BASIC PRINCIPLE
© Solution Selling, Inc. • 2008 PAGE 42www.solutionselling.com
Pain Chain® - “Cause and Effect”
Job Title: Sales ManagerPain: Lack of marketing knowledgeReason: Lack of trainingReason: Lack of resources
Job Title: Sales ManagerPain: Lack of marketing knowledgeReason: Lack of trainingReason: Lack of resources
Job Title: President Pain: Inability to seize new market
opportunityReason: Lack of marketing knowledgeReason: Missing sales opportunities
Job Title: President Pain: Inability to seize new market
opportunityReason: Lack of marketing knowledgeReason: Missing sales opportunities
© Solution Selling, Inc. • 2008 PAGE 43www.solutionselling.com
Pain Chain™: Manufacturing. Example
Job Title: VP OperationsPain: Increased production costsReason A: Declining first pass yield Reason B: Decreased employee productivity
Job Title: VP OperationsPain: Increased production costsReason A: Declining first pass yield Reason B: Decreased employee productivity
Job Title: President/OwnerPain: Missing profit goals Reason A: Increased production costsReason B: Decrease in sales revenue
Job Title: President/OwnerPain: Missing profit goals Reason A: Increased production costsReason B: Decrease in sales revenue
Job Title: Quality ManagerPain: Increased defects Reason A: Inability to identify root causes Reason B: Lack of process controlsReason C: Lack of adherence to a QMSReason D: Lack of a QMS
Job Title: Quality ManagerPain: Increased defects Reason A: Inability to identify root causes Reason B: Lack of process controlsReason C: Lack of adherence to a QMSReason D: Lack of a QMS
Job Title: Production ManagerPain: Declining first pass yieldReason A: Increased defectsReason B: Increased process waste
Job Title: Production ManagerPain: Declining first pass yieldReason A: Increased defectsReason B: Increased process waste
© Solution Selling, Inc. • 2008 PAGE 44www.solutionselling.com
Sales Tool Description
Pain Chain®
Overview:
The Pain Chain® is a graphical depiction of the cause and effect relationship of critical business issues (pains) inside an organization. It includes job title, pain, and the reasons for that pain. The graphic shows a pain as being a reason for someone else’s pain.
Where / How Used:
This job aid can be employed in multiple ways and in multiple points in a sell cycle. It can be used as a pre-call planning aid to understand potential interdependencies in an opportunity. After interviewing key players, a seller can re-craft an Initial Pain Chain® to reflect their new findings. It is also used when building a business case to identify sources of benefits across the organization. The Pain Chain® becomes an “organizational impact chart” when used to explain the benefits to the customer(s). It can then be viewed as a “Gain Chain.”
What you should achieve:
A completed Pain Chain® demonstrates to the client an insightful understanding of their business. In addition, as the seller’s understanding of the client’s overall situation is expanded so is the corresponding opportunity to build a broad base of support and justification for implementation of the solution.
Input required:
To create a Pain Chain®, you must understand the pain(s) of key players in the organization and the reasons for the pain(s). As many key players in an organization may have multiple pains, the Job Aid Build team must narrow the pains down to one per key player. The pains and the reasons for other key player’s pains should relate to one another with little confusion or misunderstanding in order to teach the concept of “organizational interdependency” with ease.
© Solution Selling, Inc. • 2008 PAGE 45www.solutionselling.com
Exercise: Create a Pain Chain®
Purpose:
To create a Pain Chain® to use as an example for demonstrating how one pain in the organization affects other key players
Activities:
Using the Key Players List and Account Profile that have already been drafted:
Identify (by title) at least 4 key players within your opportunity
Identify the primary pain and reasons for each of these key players
Using the key players and their pains, construct a Pain Chain® showing their organizational interdependency. Do this by tracing the flow of pain up and/or down the organization
Each pain should have at least two reasons
© Solution Selling, Inc. • 2008 PAGE 46www.solutionselling.com
Pain Chain® Template
Job Title:Pain:Reason A:Reason B:
Job Title:Pain:Reason A:Reason B:
Job Title:Pain:Reason A:Reason B:
Job Title:Pain:Reason A:Reason B:
Job Title:Pain:Reason A:Reason B:
Job Title:Pain:Reason A:Reason B:
Job Title:Pain:Reason A:Reason B:
Job Title:Pain:Reason A:Reason B:
© Solution Selling, Inc. • 2008 PAGE 47www.solutionselling.com
Sales Tools for Completion
Sales Tool Groups Purpose and/or Actions
Group 1
Account Profile Key Players List Pain Chain®
Brainstorm, analyze, discuss and agree upon key elements of a general opportunity upon which the development of all other sales tools will be based
Group 2
Business Development Prompters and Letter Reference Story Initial Value Proposition First Call Introduction
Develop sales tools that can be used to assist a sales professional in initiating a sales cycle by establishing credibility and targeting possible critical issues of the prospect
Group 3
Pain Sheet® (Sponsor and Power Sponsor) Evaluation Plan Transition Issues & Capabilities Transition-Implementation Plan Value Analysis / Justification Success Criteria Negotiating Worksheet and Get-Give List
Create sales tools to help control the sales cycle, qualify the buying process, and mitigate buyer’s risk through promoting value and offering proof
Group 4
Sponsor and Power Sponsor Letters Situation Questions Go/No Go Step Completion Letter Sponsor Vision Reengineering Letter Transition Plan Letter
Complete these sales tools based on input from Sales Tool Groups 1-3
© Solution Selling, Inc. • 2008 PAGE 48www.solutionselling.com
Business Development: Messaging Considerations
“Are You Curious?”
You have limited time to get attention and create curiosity
Business-to-business vs. Business-to-consumer
Put yourself in the mind of the buyer
Target pains / critical business issues:
• describe how someone else has solved a problem
• target a peer in a potentially similar situation
• select a problem they might have or to which they can relate
Communicate value
The communication should NOT:
focus on company history or new offerings
ask them to buy anything or schedule a meeting
ask the buyer to admit “pain”
© Solution Selling, Inc. • 2008 PAGE 49www.solutionselling.com
Sales Tool Description
Business Development Prompters
Overview:
This job aid provides a seller with a variety of dialogue prompters to help stimulate interest with prospective clients by focusing on critical issues (pains) typical of the client’s job title. It gives the seller an opportunity to establish credibility by demonstrating situational fluency while helping to differentiate himself/herself from other sellers through proven techniques and best practices.
Where / How Used:
It is used as a prompter - not a script. This job aid is typically used as part of the “stimulating interest ” of the Solution Selling® process and can be used in a variety of settings including telephone calls, voice mail messages, and face to face communications at networking events, trade shows, etc.
What you should achieve:
When used successfully, the prospect’s curiosity will grow and they will want to know more about how who helped someone else with a situation they can relate to. The conversation could then continue further by the seller sharing a reference story.
Input required:
To create Business Development Prompters, you must know the key pains, and reasons for pains, of the individuals by job titles that can benefit from your offerings.
© Solution Selling, Inc. • 2008 PAGE 50www.solutionselling.com
Business Development Prompters
Business Development Prompter: New Opportunity
This is Ron Quinkert with the Michigan Manufacturing Technology Center. You and I haven’t spoken before, our organization been working with Michigan manufacturers for more than 20 years. A common trend we are hearing lately from other JAMA members is their difficulty in finding new business. Despite the tough
economy, we have been able to help other members identify new business prospects. Would you like to know how?
Business Development Prompter: Menu Approach (See Business Development Letter)
This is Tim Ford with the MMTC. You and I haven’t spoken before, but we have been working with Michigan manufacturers for the last 20 years. The top three concerns we are hearing from other Sales Managers are:
decreasing sales, lack of new leads and lack of resources. We’ve helped companies like: JC Gibbons, Bolton Conductive and Integrity Steel address some of these issues. Would you like to know how?
Business Development Prompter: Referral Approach
This is Karen Seman with the MMTC. You and I haven’t spoken before, but Patricia Yulkowski , President of Total Door suggested that I give you a call. We were able to help her address her difficulty with developing
their new web site. Would you like to know how?
Business Development Prompter: Multiple Contact Approach
This is Tim Ford with the MMTC. You might recall my last e-mail regarding the Learn-About you attended where we described how we have been working with Michigan manufacturers to find new customers. A
common trend is frustration with declining sales due to the economy. We have been able to help our customers address this issue. Would you like to know how?
© Solution Selling, Inc. • 2008 PAGE 51www.solutionselling.com
Business Development Letter / e-mail: Template
Dear Mr. Smith,
Our company is in the business of helping our clients find new business.
We have been working with Michigan manufacturers for over 20 years.
Our clients include Bolton Conductive, JC Gibbons and Integrity Steel.
Some of the chief concerns we heard from them included:
• Decreasing sales• Lack of new sales leads• Lack of resources to generate new business
We have been able to help our customers successfully deal with these and other issues. I would like an
opportunity to share some examples with you. If you are interested in learning how we have helped other manufacturers solve some very challenging issues, please call me at 734-451-4204 and I will provide you with more information. In lieu of your call, I’ll plan a follow-up call on October 30th .
Best Regards,Ron Quinkert, cBSP
Dear Mr. Smith,
Our company is in the business of helping our clients find new business.
We have been working with Michigan manufacturers for over 20 years.
Our clients include Bolton Conductive, JC Gibbons and Integrity Steel.
Some of the chief concerns we heard from them included:
• Decreasing sales• Lack of new sales leads• Lack of resources to generate new business
We have been able to help our customers successfully deal with these and other issues. I would like an
opportunity to share some examples with you. If you are interested in learning how we have helped other manufacturers solve some very challenging issues, please call me at 734-451-4204 and I will provide you with more information. In lieu of your call, I’ll plan a follow-up call on October 30th .
Best Regards,Ron Quinkert, cBSP
© Solution Selling, Inc. • 2008 PAGE 52www.solutionselling.com
Reference Story: Format and Template
FORMAT REFERENCE STORY TEMPLATE
Job title / industry: A customer job title and
vertical industryCritical business issue:
The pain of the above title
One of the reasons: One of the reasons for
the critical business issue biased to your
product / serviceCapabilities (when,
who, what):In the words of your
customer, the business event, the player(s) and
specific capabilities needed to address the critical business issue
(He / She / They told us they needed a way…)
We provided:If the “solution” is
described properly above, all we have to do
here is say that we provided those
capabilitiesResult:
Specific measurement is best ($ or %)
Situation: The Lean Champion
Critical Business Issue:
Increased production costs
Reason(s): One of the key reasons was declining employee productivity.
Capability(s):
(when, who, what)
He said he wanted a way that, when filling customer orders, his workforce would utilize standardized work processes and eliminate non-value added activity.
We provided… that capability
Result: Eliminated 510 hours per year of NVA activity · On-time machine deliveries improved to 97% (up from 92%) · Vendor performance improved to 98% on-time delivery (up from 92%)
© Solution Selling, Inc. • 2008 PAGE 53www.solutionselling.com
Reference Story Format
Situation: A customer job title and vertical industry
Critical Business Issue:
The pain of the title above (Anxiety words and phrases are very powerful here).
Reason(s): One of the reasons for the critical issue biased to your product or service
Capability(s):
(when, who, what)
In the words of your customer, the business event, the player(s) and specific capabilities needed to address the critical issue - “He/she/they told us when… who… what they needed”
We provided… If the “solution” is described properly above, all we have to do here is say that we (our product / service / company) provided them those capabilities
Result: Specific measurement is best, $ or %
© Solution Selling, Inc. • 2008 PAGE 54www.solutionselling.com
Sales Tool Description
Reference Story
Overview:
This job aid provides a seller with a dialogue prompter to help build credibility with a client by helping the client begin discussing their critical issues (pain). It gives the seller an opportunity to share situationally specific examples of how the prospect’s peers have been helped by implementing capabilities provided by the seller’s organization.
Where / How Used:
It is used as a prompter - not a script. This job aid is typically used as part of the “Stimulating Interest” step of the Solution Selling® process, but can be used effectively to assist in building credibility or getting pain admitted.
What you should achieve:
When used successfully, the prospect will either admit pain, or the seller will discover that the prospect already has a vision of a solution. The conversation could then continue further by vision processing (creation or reengineering).
Input required:
To create a Reference Story you must have specific examples from previous sales and know the measurable results that were achieved by implementing capabilities provided by your organization.
Note: If measured results are not available, indicate (as a footnote) that the Reference Story results are for education purposes or that they are pending
© Solution Selling, Inc. • 2008 PAGE 55www.solutionselling.com
Exercise: Craft a Reference Story
Purpose:
To draft a Reference Story that could be used to establish credibility, stimulate interest and begin the discussion of pain with a prospect
Activities:
Using the Sponsor from the Pain Chain® and Pain Sheet® exercise:
Fill in the Reference Story Template with the information already identified
Create the measurable results achieved as the outcome of buying the solution
Note:
Although Reference Stories are traditionally developed at the end of a sales engagement, this sample will be used as if it was the basis for stimulating interest into the current opportunity (scenario) thus it should “map” to the existing scenario (i.e. Sponsor from the Pain Chain® and Pain Sheet® )
© Solution Selling, Inc. • 2008 PAGE 56www.solutionselling.com
Reference Story: Format and Template
FORMAT REFERENCE STORY TEMPLATE
Job title / industry: A customer job title and
vertical industryCritical business issue:
The pain of the above title
One of the reasons: One of the reasons for
the critical business issue biased to your
product / serviceCapabilities (when,
who, what):In the words of your
customer, the business event, the player(s) and
specific capabilities needed to address the critical business issue
(He / She / They told us they needed a way…)
We provided:If the “solution” is
described properly above, all we have to do
here is say that we provided those
capabilitiesResult:
Specific measurement is best ($ or %)
Situation:
Critical Business Issue:
Reason(s):
Capability(s):
(when, who, what)
We provided… …this capability
Result:
© Solution Selling, Inc. • 2008 PAGE 57www.solutionselling.com
The Value Cycle
“Lead with Value”
CLOSE
VERIFYMEASURE
LEAD
Initial Value Proposition
© Solution Selling, Inc. • 2008 PAGE 58www.solutionselling.com
Building a Compelling Value Proposition
Your Offering Your OfferingCustomer B
Situation
Customer A Situation
Initial Value Proposition
Initial Value Proposition
Reference Story
Reference Story
Projected Results
Measured Results
EXTRAPOLATE
© Solution Selling, Inc. • 2008 PAGE 59www.solutionselling.com
Initial Value Proposition: Format and Template
VALUE PROPOSITION
“We believe that Morton Buildings should be able to Reduce production costs
by 10%, or $6.6 million annuallythrough the ability to streamline production and eliminate non-value added steps
as a result of re-mapping your work processes, accurately allocating costs across product lines, and updating the skills of your personnel
for an investment of $50,000
Value Proposition Assumptions:
Fabrication Line not included
Morton personnel available at requested times
Assume gross margin of 40% on sales of $370m = COGs of $222m
Assume project impacts 30% of COGs = $66m/10 = $6.6m
© Solution Selling, Inc. • 2008 PAGE 60www.solutionselling.com
Sales Tool Description
Value Proposition
Overview:
A statement which projects the potential quantified benefit (value) a client could realize through the implementation of a specific capability or solution. It is intended to create curiosity and serve as the catalyst to start a sales cycle.
Where / How used:
The projected quantified benefits are extrapolated from a previous successful implementation(s) or engagement(s) and then projected upon the prospective client.
The primary use is to stimulate interest in what the seller may have to offer. If interest is generated, the (Initial) Value Proposition can and should be refined during the sell cycle eventually evolving to a more elaborate Value Analysis / ROI.
What you should achieve:
The Value Proposition should stimulate interest with the client (or prospect) and commence a sell cycle.
Input required:
To create a Value Proposition you must have knowledge of the specific value already achieved by a customer who is using your products / services. You will also need to know specific information about the prospect you are targeting.
© Solution Selling, Inc. • 2008 PAGE 61www.solutionselling.com
Exercise: Develop an Initial Value Proposition
Purpose:
To draft an initial Value Proposition that could be used to lead with value and stimulate interest with a prospect
Activities:
Extrapolate the results and characteristics found in the Reference Story to create a Value Proposition for the targeted prospect (i.e. the Sponsor )
Notes:
This should be built on well-known metrics that a successful account has experienced
Much like the Reference Story, since the Value Proposition will be positioned as a method for stimulating interest into the current opportunity (scenario) it should “map” to the existing scenario (i.e. Sponsor from the Pain Chain® and Pain Sheet® )
© Solution Selling, Inc. • 2008 PAGE 62www.solutionselling.com
Initial Value Proposition: Format and Template
VALUE PROPOSITION
“We believe that TC Sports should be able to increase sales by $500,000
through the ability to market effectively, drive new RFQ opportunities, and
infiltrate new markets as a result of updating personnel skill sets and
website enhancement, for an investment of $ 22,000”
VALUE PROPOSITION
“We believe that TC Sports should be able to increase sales by $500,000
through the ability to market effectively, drive new RFQ opportunities, and
infiltrate new markets as a result of updating personnel skill sets and
website enhancement, for an investment of $ 22,000”
Value Proposition assumptions being made:
Average sale amount = $20,000 Closing ratio = 15% 24 hour response to all quote opportunities Personnel available at requested times
Value Proposition Format:We believe that [ Client name ]
should be able to [ improve what ] by [ how much, what %? ]
through the ability to [ do what? ]as a result of [ what enabling capabilities? ]for an investment of [ what relative cost? ] .
© Solution Selling, Inc. • 2008 PAGE 63www.solutionselling.com
Strategic Alignment Prompter (Steps 1 and 2)
Step 2: Introduce Call
State call objective *
What I’d like to do today is to:• Introduce you to the Michigan Manufacturing Technology Center• Tell you about another Sales Manager in the injection molding business we have worked with• I would then like to learn more about you and your situation…• …at that point, the two of us will be able to make a mutual decision as to whether or not we should proceed
any further.”
Share positioning statement (Use “we help” theme)
“ The MMTC is in the business of helping Michigan Manufacturers identify new markets, generate new leads, and close more sales”
Provide company / personal introduction *
FACTS
□ We are part of the national network of the Manufacturing Extension Partnership, which makes our approach dramatically different. We are dedicated to helping small to medium sized Michigan manufacturers make operational improvements. A key point is that as part of the MEP network, we are measured on your results.
□ Our approach to training and consulting is focused on knowledge transfer. We teach you how to fish, we don’t do the fishing for you. We also help you implement what you’ve learned, making you self sufficient.
□ We helped a total of 1,250 Michigan manufacturers since our inception.
Share relevant Reference Story (or progress-to-date)
“A particular situation you might be interested in is another __________ (organization type). Their __________ (job title) was having difficulty with __________ (pain). The reasons for his/her difficulty were __________. What he/she needed was some way to (describe capabilities) __________. We provided them with those capabilities and the result was __________ (specific result).”
Transition to “getting pain admitted”
“But enough about __________ (my company). Tell me (more) about you and your situation.”
* Alter steps for existing vs. new relationships as relevant
© Solution Selling, Inc. • 2008 PAGE 64www.solutionselling.com
Strategic Alignment Prompter (Steps 1 and 2)
Step 2: Introduce Call
State call objective *
What I’d like to do today (or… during the next ___ minutes) is to:• Introduce you to IMEC• Tell you about another OEM supplier we have worked with• I would then like to learn (more) about you and your situation…• …at that point, the two of us will be able to make a mutual decision as to whether or not we should proceed
any further.”
Share positioning statement (Use “we help” theme)
IMEC is in the business of helping companies to be more productive and competitive.
Provide company / personal introduction *
FACTS IMEC has been in business since 1996 We’ve worked with nearly 2,000 Illinois manufacturers We have 10 offices statewide On average, our clients report a 10 to 1 return on their investment in our resources
Share relevant Reference Story (or progress-to-date)
“A particular situation you might be interested in is another Caterpillar Supplier. Their VP of Operations was having difficulty with increasing production costs. The reason for his difficulty was a decline in employee productivity. What he said he needed was a way when filling customer orders, his production workers would have standardized work processes to follow with minimal non-value added activities. We provided them with those capabilities and as result his on-time delivery improved from 65% to more than 95%.
Transition to “getting pain admitted”
“But enough about IMEC. Tell me about you and your situation.”
* Alter steps for existing vs. new relationships as relevant
© Solution Selling, Inc. • 2008 PAGE 65www.solutionselling.com
Exercise: Create the First Call Introduction Information
Purpose:
To draft specific elements of messaging during a first call to allow the sales professional to properly introduce themselves to a new prospect in order to establish the call agenda and credibility
Activities:
Create a positioning statement that describes how the company helps their clients
Create this with the title and industry of the prospect in mind
Provide 3-4 facts about the company and/or seller that will help the prospect draw desired conclusions
© Solution Selling, Inc. • 2008 PAGE 66www.solutionselling.com
First Call Introduction Template: Strategic Alignment Prompter (Step 2)
Step 2: Introduce Call
State call objective *
What I’d like to do today (or… during the next ___ minutes) is to:• Introduce you to __________ (my company)• Tell you about another _________ (job title and industry) we have worked with• I would then like to learn (more) about you and your situation…• …at that point, the two of us will be able to make a mutual decision as to whether or not we should proceed
any further.”
Share positioning statement (Use “we help” theme)
“__________________ (my company) is in the business of helping organizations / companies in the
__________________ industry to… (provide brief statement of how organizations use our products and services)
____________________________________________________________________________________________.”
Provide company / personal introduction *
FACTS
□ __________________________________________
□ __________________________________________
□ __________________________________________
Share relevant Reference Story (or progress-to-date)
“A particular situation you might be interested in is another __________ (organization type). Their __________ (job title) was having difficulty with __________ (pain). The reasons for his/her difficulty were __________. What he/she needed was some way to (describe capabilities) __________. We provided them with those capabilities and the result was __________ (specific result).”
Transition to “getting pain admitted”
“But enough about __________ (my company). Tell me (more) about you and your situation.”
* Alter steps for existing vs. new relationships as relevant
© Solution Selling, Inc. • 2008 PAGE 67www.solutionselling.com
Sales Tools for Completion
Sales Tool Groups Purpose and/or Actions
Group 1
Account Profile Key Players List Pain Chain®
Brainstorm, analyze, discuss and agree upon key elements of a general opportunity upon which the development of all other sales tools will be based
Group 2
Business Development Prompters and Letter Reference Story Initial Value Proposition First Call Introduction
Develop sales tools that can be used to assist a sales professional in initiating a sales cycle by establishing credibility and targeting possible critical issues of the prospect
Group 3
Pain Sheet® (Sponsor and Power Sponsor) Evaluation Plan Transition Issues & Capabilities Transition-Implementation Plan Value Analysis / Justification Success Criteria Negotiating Worksheet and Get-Give List
Create sales tools to help control the sales cycle, qualify the buying process, and mitigate buyer’s risk through promoting value and offering proof
Group 4
Sponsor and Power Sponsor Letters Situation Questions Go/No Go Step Completion Letter Sponsor Vision Reengineering Letter Transition Plan Letter
Complete these sales tools based on input from Sales Tool Groups 1-3
© Solution Selling, Inc. • 2008 PAGE 68www.solutionselling.com
10
100VALUE
UNIQUENESS
Differentiation Grading Chart
Cool,
Nice to haveDifferentiators
Core Capabilities Junk
© Solution Selling, Inc. • 2008 PAGE 69www.solutionselling.com
Solution Messaging Card: Definitions
Pain One of the core pains
Reasons for Pain
Contributing factors or causes to the pain
Organization Impact
Additional critical issues that could happen as a result of the pain not being addressed Could be personal or organizational impact
Trend Relevance
Additional talking points around this pain that are happening in the marketplace Could find information related to industry or issue specifically through 3 rd party research Trends will be used to help improve messaging and enable sales to establish creditability through
increased situational knowledge Ensures empathy for the customer and their situation
Capabilities
What the customer must do to address the pain and reasons Should be stated as “ability to” in non-solution and company specific way Should link to core capabilities and defensible differentiation
Solution Linkage Name of solution and/ or components that address the pain
Differentiators Specific differentiators components included in the solution
Metrics / Proof of Value
Specific points of measure/ KPI’s that will be impacted after solution is implemented
Key Players Roles within the organization who typically experience this specific pain
Case Studies Example case studies of where this pain was solved for another customer
© Solution Selling, Inc. • 2008 PAGE 70www.solutionselling.com
Basic Principle
DIAGNOSE BEFORE YOU PRESCRIBE
BASIC PRINCIPLE
© Solution Selling, Inc. • 2008 PAGE 71www.solutionselling.com
I1
I3
C1
C2
C3
R1
R2
R3
I2
Architecture of the 9 Block Vision Processing Model™
Diagnose Reasons Visualize CapabilitiesExplore Impact
Open
Control
Confirming
PAIN
BUYING VISION
3 Question Types
3 Question Types 3 Areas of
Exploration
3 Areas of Exploration
Customer’s Point of View
Customer’s Point of View
Salesperson’s Point of View
Salesperson’s Point of View
Combined Point of View
Combined Point of View
© Solution Selling, Inc. • 2008 PAGE 72www.solutionselling.com
9 Block Vision Processing Model® - Vision Creation
Diagnose Reasons Visualize CapabilitiesExplore Impact
Ope
n C
ontr
ol
Con
firm
ing
PAIN $
BUYING VISION $
741
852
963
C1 I1 R1
C2 I2 R2
C3 I3 R3
“Besides yourself, who in your
organization is impacted by this (pain)
and how are they impacted?”
“Is this (pain) causing… (another pain)?”
“If so, would (other job title)
also be concerned?”
#?, %?, $?
“From what I just heard, (repeat the “who” and “how”) are impacted.
It sounds like this is not just your problem, but a
______ problem! Is that correct?”
“What is it going to take for you to be able to
(achieve your goal)?”
“Could I try a few ideas on you?”
“You mentioned (recall reason)…Would it help if …
Capability Vision A?...Capability Vision B?...Capability Vision C?...
“So, IF you had the ability to (summarize capability
visions),
THEN could you (achieve your goal)?”
“Tell me about it, what is causing you
to have this… (repeat pain)?”
“Is it because…
Reason A?…Reason B?...Reason C?...
#?, %?, $?
“So, the reasons for your (pain) are…?
Is that correct?”
© Solution Selling, Inc. • 2008 PAGE 73www.solutionselling.com
Pain Sheet™ - Situational Fluency Prompter®: Example
Pain:Job Title & Industry:
Offering:
Missing on time deliveries (Size-up pain – What is the goal? (98%) What is actual? (88%) Production ManagerKiazen Events
REASONS (R2) IMPACT (I2) CAPABILITIES (C2)Is it because; Today…? Is this (pain) causing…? What if…; Would it help if…?
A you are experiencing unscheduled machine down time? What is the maximum hours of machine time availability per week/per year? (80)(4000)What percentage of time is loss due to unscheduled machine down time (4%)What is the market value of products produced per hour? ($2,300)So, the value of products lost due to unscheduled down time is approximately 160 hours or $368,000 per year, is that correct? (Yes)How much of that $368,000 could be eliminated if you could optimally schedule preventive maintenance? (50 % or $184,000)
• lost orders?• Increased inventory costs? • Increased production costs?Is the VP Manufacturing
impacted?
• loss of (or threat of losing) customers?
• declining profits?• poor cash flow?Is the President/Owner
impacted?
A When:
Who:What:
equipment is not operating within spec (i.e. temp, lube, filters, etc.) your machine operator could apply minor preventive maintenance or notify a technician so thatproper maintenance can be optimally scheduled
B customer demands require an increasing number of setups?How many set ups per week/year? (6)(300)How does compare to last year? (up 10%)What about in the future? (10% higher)What is the average time per set up? (1.5 hour)That means that 450 hours per year is required today and 495 for future volume? (Yes)What is the market value of products produced per hour? ($2,300)That means the value of products lost due to machine set up is approximately 1M per year, is that correct? (Yes)How much of that 1M could be saved with time saving setup techniques and standard procedures?(50% or $500,000)
B WhenWho:What:
set ups are requiredyour set up team could apply time saving techniques, have easy access to required tools, and follow standard procedures so that set up time is reduced
C your experiencing frequent out-of-raw materials at the point of use?How many hours per week/per year are lost due to raw material outage? (.5 hours)(25hours)What is the market value of products produced per hour? ($2,300)That means that the value of products lost due to raw material outage is approximately $57,500 per year? (Yes)Shouldn’t that all be eliminated? (Yes)
C When
Who:What:
raw materials are approaching predetermined minimal levels your line workers could have inventory replenished automatically and before outage occur and production stops
© Solution Selling, Inc. • 2008 PAGE 74www.solutionselling.com
Pain Sheet™ - Situational Fluency Prompter®: Example
Pain:Job Title & Industry:
Offering:
Missing on time deliveries (Size-up pain – What is the goal? (98%) What is actual? (88%) Production ManagerKiazen Events
REASONS (R2) IMPACT (I2) CAPABILITIES (C2)Is it because; Today…? Is this (pain) causing…? What if…; Would it help if…?
D You have an improper line balance?What percent of true capacity do you think you are operating at right now? (92%)How much of that 8% gap is due to improper flow i.e. bottlenecks, excess product travel, wait time, etc. (50%)What is your current annual output? (10M)That would mean a potential gain of $400,000 in sales. Is that a good estimate? (Yes) How much of that $400,000 could be realized if you could quickly analyze line balance, identify bottlenecks, and reallocate resources to improve flow? (80% or $320,000)
• lost orders?• Increased inventory costs? • Increased production costs?Is the VP Manufacturing
impacted?
• loss of (or threat of losing) customers?
• declining profits?• poor cash flow?Is the President/Owner
impacted?
D When:Who:What:
product mix changes occur your production team could quickly analyze line balance, identify bottlenecks, and reallocate resources to improve flow
E E WhenWho:What:
F F When
Who:What:
© Solution Selling, Inc. • 2008 PAGE 75www.solutionselling.com
Sales Tool Description
Pain Sheet®
Overview:
A Pain Sheet® is a questioning prompter used with the 9 Block Vision Processing Model®.
It provides a set of control questions to help diagnose a business issue (pain), identify the impacts of that pain on the rest of the organization, and describe the capabilities which could be provided to address the pain. It is an integral job aid to creating (or reengineering) visions biased to specific offerings / solutions of the seller’s organization.
Where / How used:
It is used with the 9 Block Vision Processing Model® for creating (or reengineering) customer visions biased toward specific offerings / solutions of your organization.
What you should achieve:
The use of the Pain Sheet® with the 9 Block Vision Processing Model® will help bring the buyer to a vision of how he / she will be able to address their critical business issue (pain) as well as quantify the value to them and understand the impact their pain has across the organization.
Input Required:
To build a Pain Sheet® you will need understanding of potential Sponsor / Power Sponsor (likely) pains as well as associated reasons. Situational knowledge of how the capabilities of your product can address the client’s business initiatives and in turn solve their critical issues. A knowledge of your offering’s differentiators will be useful.
© Solution Selling, Inc. • 2008 PAGE 76www.solutionselling.com
Exercise: Develop a Pain Sheet®
Purpose:
To develop a Pain Sheet® that would used by a sales professional to diagnose an admitted business issue of a likely Sponsor –level buyer.
To help assist the sales professional is addressing a business pain and articulate the differentiated value that his/her offering can provide
Activities: Based on the differentiated capabilities that have already been articulated:
Restate them in a “when, who, what” format focusing on how the client would be able to use the capabilities in the future
Align the capabilities with the reasons they would address Be sure to include other key players affected by the pain in the impact column Add “drill down” questions to the reasons on the Pain Sheet® to help quantify diagnosis
Notes: Ensure reasons are contributors to the (likely) pain of the Sponsor
© Solution Selling, Inc. • 2008 PAGE 77www.solutionselling.com
Pain Sheet® - Situational Fluency Prompter®: Template
Pain:Job Title & Industry:
Offering:
Loss of business and profitsOwner, ManufacturingMarket Diversification
REASONS IMPACT CAPABILITIESIs it because; Today…? Is this (pain) causing…? What if…; Would it help if…?
A You rely too much on one shrinking customer
What’s the annual sales to this main customer? ($3M)What has the sales trend been over the last year? (Decreased 15%)So if my math is correct, you need to replace at least $345k to make up for the loss.How many new leads have been generated to replace lost business? (Two)What was the value of the two new customers? ($150K)So if my math is correct, that leaves a gap of $195kOn a scale of 1 to 10, how confident are you that you can fill that gap? (2. In other words, we can probably get 20% using current resources)If you had (repeat capability), how much of that $156k (80% of the $195k) could you get? (100%)
A When:
Who:
What:
Looking for new customers
you
could quickly and easily identify and qualify potential new prospects?
B Lack of pricing power and declining profits
Have your profit margins declined over the last two years? How much? (5% per year, now making only 6%)Have you ever investigated other higher profit markets to sell into? (Yes, we tried with no results)What were the revenue and margin expectations in those markets? (6 new customers with 15% margins)So if my math is correct, that represents $450k in revenue, with almost $68k in profits. (Yes)If you had (repeat capability), how much of that $450k could you get? (Maybe 30%)
B When:
Who:
What:
Selling your product
You
Had data to help choose target market segments with higher profit potential?
C Fear of the unknown
Have you missed opportunities because you were unsure if your core competencies aligned with new markets? (Yes)Is there an opportunity existing today that you have been considering but are unsure of the risk or market requirements? (Yes, $500k in vending machine manufacturing)
C When:
Who:
What:
faced with unknown risk
You had
Readily available market insights to help decide which new markets fit your core competencies?
D Lack of Sales and Marketing Skills
How many leads a month do you have? 10How many of those leads result in a sale? Maybe 1(If no leads, what was the historic closing rate? 5%)What is your average customer value? $100,000So, if my math is correct, the value of having 20 new leads a month is approximately $1,200,000. Is this correct? Wow. Yes.If you had (repeat capability), how much of that $1.2M could you secure? (50%)
D When:
Who:
What:
Looking for new business
You or your staff
Had a repeatable process to identify and qualify the most likely prospects?
© Solution Selling, Inc. • 2008 PAGE 78www.solutionselling.com
Pain Sheet® - Situational Fluency Prompter®: Template
Pain:Job Title & Industry:
Offering:
Lack of Resources to Attract New CustomersOwner, ManufacturingMarket Diversification
REASONS IMPACT CAPABILITIESIs it because; Today…? Is this (pain) causing…? What if…; Would it help if…?
A No dedicated sales or marketing staff
Who does your sales and marketing now? MeHow much time do you dedicate to sales and marketing efforts?What are the types of marketing activities that you do?How do you measure the success of those activities?Do you have anyone that could dedicate 4 hours per week to new marketing efforts?
A When:
Who:
What:
Looking for new prospects
you
Could use current staff more effectively with an established process?
B Ineffective website
Do you receive leads from your website?How many of those leads result in a sale?Do you track the visitor traffic to your website?
B When:
Who:
What:
Looking for a new supplier
Your prospective customer
could more easily find your company instead of your competitors
C Lack of communication tools C When:
Who:
What:
D Lack of knowledge / skills D When:
Who:
What:
© Solution Selling, Inc. • 2008 PAGE 79www.solutionselling.com
Pain Sheet® - Situational Fluency Prompter®: Template
Pain:Job Title & Industry:
Offering:
REASONS IMPACT CAPABILITIESIs it because; Today…? Is this (pain) causing…? What if…; Would it help if…?
A XXX
aaa
A When:
Who:
What:
B B When:
Who:
What:
C XXX C When:
Who:
What:
D YYY D When:
Who:
What:
© Solution Selling, Inc. • 2008 PAGE 80www.solutionselling.com
Gaining Access to Power
A Second Vision Processing Conversation
Power SponsorPainReason AReason BReason C
Power SponsorPainReason AReason BReason C
SponsorPainReason AReason BReason C
SponsorPainReason AReason BReason C
I2 C2
RI
R2
I1 C1
R3 I3 C3
I2 C2
RI
R2
I1 C1
R3 I3 C3
© Solution Selling, Inc. • 2008 PAGE 81www.solutionselling.com
Pain Sheet™ - Situational Fluency Prompter®: ExamplePain:
Job Title & Industry:Offering:
Lost orders (Size-up pain- What is the $ revenue value of lost orders? ( ) VP Manufacturing Kiazen Events
REASONS (R2) IMPACT (I2) CAPABILITIES (C2)Is it because; Today…? Is this (pain) causing…? What if…; Would it help if…?
A You are missing on time deliveries Your Production Manager believes it is possible to recapture a little over $1Million related to missing on time deliveries.Do you agree? (Yes)
• loss of (or threat of losing) customers?
• declining profits?• poor cash flow?Is the President/Owner
impacted?
A When:
Who:What:
WhenWho:What
When
Who:What
WhenWho:What
equipment is not operating within spec (i.e. temp, lube, filters, etc.) your machine operator could apply minor preventive maintenance or notify a technician so thatproper maintenance can be optimally scheduled set ups are requiredset ups are requiredyour set up team could apply time saving techniques, have easy access to required tools, and follow standard procedures so that set up time is reduced raw materials are approaching predetermined minimal levels your line workers could have inventory replenished automatically and before outage occur and production stops
AND
product mix changes occur your production team could quickly analyze line balance, identify bottlenecks, and reallocate resources to improve flow
© Solution Selling, Inc. • 2008 PAGE 82www.solutionselling.com
Pain Sheet™ - Situational Fluency Prompter®: ExamplePain:
Job Title & Industry:Offering:
Lost orders (Size-up pain- What is the $ revenue value of lost orders) VP Manufacturing Quality, Solution Selling
REASONS (R2) IMPACT (I2) CAPABILITIES (C2)
Is it because; Today…? Is this (pain) causing…? What if…; Would it help if…?
B you are not able to meet potential customers quality requirements?How many opportunities were lost over the past 12 months? (5)What was the potential sales volume of those opportunities? ($800,000)What is the quality standard that is mostly commonly requested ? (ISO9000)If you were ISO 9000 Registered, how much of that $800,000 would have hit the sale line? (At least 50% or $400,000)
• loss of (or threat of losing) customers?
• declining profits?• poor cash flow?Is the President/Owner
impacted?
B When
Who:What:
potential customers require proof of quality you sales team could offer your status as an ISO 9000 registered company as proof that your organization adheres to the rigors of an internationally recognized quality standard
C you are not competitive on short-run jobs?How many short-run opportunities did you bid during the past year? (15)How many were accepted? (0)How many opportunities were not bid on? (60) What would you estimate the revenue value of these 75 opportunities? ($1.5M)What % of these opportunities could you have won if you were more competitive on short-runs?(60%)If you could pass on cost savings from efficiency and productivity gains, how much of that $900,000 would have hit the sales line? (At least 1/3 or $300,000)
C WhenWho:What:
bidding on short-run jobsyour sales team could pass on cost savings realized with improved efficiencies and increased productivity
D D
© Solution Selling, Inc. • 2008 PAGE 83www.solutionselling.com
Exercise: Develop a Pain Sheet® for a Power Sponsor
Purpose:
To develop a Pain Sheet® that would used by a sales professional to diagnose an admitted business issue of a likely Power Sponsor –level buyer.
To help assist the sales professional is addressing a business pain and articulate the differentiated value that his/her offering can provide
Activities: Based on the differentiated capabilities that have already been articulated:
Restate them in a “when, who, what” format focusing on how the client would be able to use the capabilities in the future
Align the capabilities with the reasons they would address Be sure to include other key players affected by the pain in the impact column Add “drill down” questions to the reasons on the Pain Sheet® to help quantify diagnosis
Notes: Ensure reasons are contributors to the (likely) pain of the Power Sponsor
© Solution Selling, Inc. • 2008 PAGE 84www.solutionselling.com
Pain Sheet® - Situational Fluency Prompter®: Template
Pain:Job Title & Industry:
Offering:
REASONS IMPACT CAPABILITIESIs it because; Today…? Is this (pain) causing…? What if…; Would it help if…?
A A When:
Who:
What:
B B When:
Who:
What:
C C When:
Who:
What:
D D When:
Who:
What:
© Solution Selling, Inc. • 2008 PAGE 85www.solutionselling.com
Draft Evaluation Plan: Example
Attachment to Power Sponsor Letter / e-mail
[DRAFT]
Event Week of √ Responsible Go/No Go Billable
Phone interview John Watkins (CIO) Feb 14 Us/TGI
Phone interview Donna Moore (COO) Feb 14 Us/TGI
Summarize findings to management team and agree to evaluation plan
Feb 21 Us/TGI *
Prove capabilities to management team Feb 28 Us *
Perform detailed survey of current systems (2 days) March 4 Us yes
Present preliminary solution/design March 11 Us *
Implementation plan approval by IT department March 18 TGI *
Determine / present value justification March 18 Us/TGI *
Agree on preliminary success criteria March 18 Us/TGI
Send our license agreement to legal March 18 Us
Gain legal approval (Terms & Conditions) April 4 TGI *
Visit Corporate HQ April 11 Us
Pre-proposal review meeting April 18 Us
Present proposal for approval April 25 Us *
Transition kickoff & finalize success criteria May 10 Us/TGI
Measure success criteria Ongoing TGI
* Mutual decision to proceed
© Solution Selling, Inc. • 2008 PAGE 86www.solutionselling.com
Job Aid Description
Evaluation Plan
Overview:
The Evaluation Plan is a key job aid used in conjunction with the Power Sponsor Letter. It outlines the suggested steps that should be followed during the rest of the sales process.
Where / How used:
The Evaluation Plan combines events that the seller wants to achieve with the events that the client wants to achieve. The client will “buy into” an Evaluation Plan as soon as he / she starts to change it. Dates are assigned to each event with the thought of closing the sale on an agreed upon date. This helps the seller shorten sales cycles and enhances forecasting abilities.
What you should achieve:
The Evaluation Plan should help the seller maintain control of the buying process by documenting all events that will take place during the course of the sale and the order in which those events will take place. By managing this plan with a client, the seller can feel secure about when resources will be needed and the hurdles to overcome leading to closure of the sale. Also highlighting some of the important events as “go / no go” points gives both parties the opportunity to “disengage” from the opportunity if it does not benefit them.
Input required:
To create the Evaluation Plan, the Job Aid Build team will need knowledge of the events included in a entire sale process, whether or not the events should be billable (i.e. proof steps that incur hard cost), the potential cost alternative events to those the client may request, the time involved in presenting or demonstrating each event as it relates to the specific offering being “sold” and the typical length of the sale cycle for that offering.
© Solution Selling, Inc. • 2008 PAGE 87www.solutionselling.com
Exercise: Create a Sample Evaluation Plan
Purpose:
To create an Evaluation Plan as an example to help the seller communicate the steps necessary to provide all relevant proof steps and move the opportunity to closure while helping create a sense of ownership of the plan for the buyer
Activities:
Create an example Evaluation Plan that could be executed with the Power Sponsor to lead to the closure of the sales cycle
Include typical proof steps required by the Power Sponsor to evaluate the chosen solution
Include any type of legal, technical, or administrative reviews that may be necessary
Be sure to think through the key Evaluation Plan components (date and sequence of events, go/no go steps, resources needed, which events are billable, etc.)
Notes:
Ensure this does not become an internal “to-do” list but requires action on the part of the prospect organization
© Solution Selling, Inc. • 2008 PAGE 88www.solutionselling.com
Draft Evaluation Plan: Template
[DRAFT]
Event Week of √ Responsible Go/No Go Billable
* Mutual decision to proceed
© Solution Selling, Inc. • 2008 PAGE 89www.solutionselling.com
Three Sales within a Sale
LINE OF BUSINESS SALE
Operational Vision
“What capabilities do we need to meet our business goals?”
LINE OF BUSINESS SALE
Operational Vision
“What capabilities do we need to meet our business goals?”
TRANSITION SALE
Transition / Implementation Vision
“How do we get from where we are today to where the Line Vice
Presidents want to be?”
TRANSITION SALE
Transition / Implementation Vision
“How do we get from where we are today to where the Line Vice
Presidents want to be?”
FINANCIAL SALE
Operational Vision+
Transition / Implementation Vision
“What is the overall value to the organization?”
FINANCIAL SALE
Operational Vision+
Transition / Implementation Vision
“What is the overall value to the organization?”
© Solution Selling, Inc. • 2008 PAGE 90www.solutionselling.com
Draft Evaluation Plan: Example
Attachment to Power Sponsor Letter / e-mail
[DRAFT]
Event Week of √ Responsible Go/No Go Billable
Phone interview John Watkins (CIO) Feb 14 Us/TGI
Phone interview Donna Moore (COO) Feb 14 Us/TGI
Summarize findings to management team and agree to evaluation plan
Feb 21 Us/TGI *
Prove capabilities to management team Feb 28 Us *
Perform detailed survey of current systems (2 days) March 4 Us yes
Present preliminary solution/design March 11 Us *
Implementation plan approval by IT department March 18 TGI *
Determine / present value justification March 18 Us/TGI *
Agree on preliminary success criteria March 18 Us/TGI
Send our license agreement to legal March 18 Us
Gain legal approval (Terms & Conditions) April 4 TGI *
Visit Corporate HQ April 11 Us
Pre-proposal review meeting April 18 Us
Present proposal for approval April 25 Us *
Transition kickoff & finalize success criteria May 10 Us/TGI
Measure success criteria Ongoing TGI
* Mutual decision to proceed
© Solution Selling, Inc. • 2008 PAGE 91www.solutionselling.com
The Transition Sale: Transition Issues & Capabilities - Example
Executives, Users and Beneficiaries
Susan Brown – CEO, Jim Smith – VP Finance, Steve Jones – VP Sales & Marketing and Donna Moore - COO
Person responsible for implementation of needed operational capabilities
Name and Title: John Watkins – CIOTransition Issue: Delays implementing e-commerce application on schedule
REASONS OUR TRANSITION CAPABILITIES
A. Technical staff lacks time and resources to devote to a new system
A. One week after agreement to proceed, our programmers will begin customizing the e-commerce application while supervised by your staff
B. Available packages don’t integrate with existing applications
B. 60 days prior to cut-over, our consultants will guide your programmers to create interfaces with existing applications
C. Limited training resources C. Two weeks prior to cut-over, one of our business partners could be contracted for salesperson training so your IT staff could concentrate on integrating the application
© Solution Selling, Inc. • 2008 PAGE 92www.solutionselling.com
Job Aid Description
(Documentation of) Transition Issues and Capabilities
Overview:
A document that outlines the primary issues as well as the associated reasons, of the person within the client organization tasked with implementing the seller’s product / service. It also presents the seller’s capabilities that correspond with the reasons for the primary issue.
Where / How used:
Transition issues normally come up when trying to convince the person tasked with implementation to implement a potential solution that the lines of business needs to solve their business problems. They usually center around the fact that although they are interested in helping the business, he / she (responsible for implementation) doesn’t see how they can make it happen given their challenges which usually revolve around an extensive list of tasks already in place and/or deficiencies in staff and/or skills.
What you should achieve:
This provides another opportunity for the seller to create a transition vision with the buyer. You should also have an aid that helps minimize the risk associated with implementing the line-of-business capabilities.
Input Required:
To “document” the Transition Issues & Capabilities you will need an understanding of the buyers potential concerns with the implementation as well as the steps the implementation team will need to take in order to ensure a successful implementation into the buyer’s organization. A knowledge of your company’s services may be useful.
© Solution Selling, Inc. • 2008 PAGE 93www.solutionselling.com
Exercise: Identify Transition Issues and Capabilities
Purpose:
Identify potential transition issues that could be roadblocks for closing the opportunity so that sellers can anticipate them and use them as the basis for a diagnostic conversation with one responsible for implementation
Activities:
Describe at least two reasons why someone in the buying organization (for your opportunity) might face a technical / transition issue when implementing the operational capabilities.
Describe the corresponding capabilities (services) that could resolve the reasons for the transition issue
Note:
This framework can be leveraged to create a Transition Issues Pain Sheet®
© Solution Selling, Inc. • 2008 PAGE 94www.solutionselling.com
Transition Issues & Capabilities Worksheet
Executives, Users and Beneficiaries
• • •
Person responsible for implementation of needed operational capabilities
Name and Title:Transition Issue:
REASONS OUR TRANSITION CAPABILITIES
A. A.
B. B.
C. C.
© Solution Selling, Inc. • 2008 PAGE 95www.solutionselling.com
Three Sales within a Sale
LINE OF BUSINESS SALE
Operational Vision
“What capabilities do we need to meet our business goals?”
LINE OF BUSINESS SALE
Operational Vision
“What capabilities do we need to meet our business goals?”
TRANSITION SALE
Transition / Implementation Vision
“How do we get from where we are today to where the Line Vice
Presidents want to be?”
TRANSITION SALE
Transition / Implementation Vision
“How do we get from where we are today to where the Line Vice
Presidents want to be?”
FINANCIAL SALE
Operational Vision+
Transition / Implementation Vision
“What is the overall value to the organization?”
FINANCIAL SALE
Operational Vision+
Transition / Implementation Vision
“What is the overall value to the organization?”
© Solution Selling, Inc. • 2008 PAGE 96www.solutionselling.com
Draft Evaluation Plan: Example
Attachment to Power Sponsor Letter / e-mail
[DRAFT]
Event Week of √ Responsible Go/No Go Billable
Phone interview John Watkins (CIO) Feb 14 Us/TGI
Phone interview Donna Moore (COO) Feb 14 Us/TGI
Summarize findings to management team and agree to evaluation plan
Feb 21 Us/TGI *
Prove capabilities to management team Feb 28 Us *
Perform detailed survey of current systems (2 days) March 4 Us yes
Present preliminary solution/design March 11 Us *
Implementation plan approval by IT department March 18 TGI *
Determine / present value justification March 18 Us/TGI *
Agree on preliminary success criteria March 18 Us/TGI
Send our license agreement to legal March 18 Us
Gain legal approval (Terms & Conditions) April 4 TGI *
Visit Corporate HQ April 11 Us
Pre-proposal review meeting April 18 Us
Present proposal for approval April 25 Us *
Transition kickoff & finalize success criteria May 10 Us/TGI
Measure success criteria Ongoing TGI
* Mutual decision to proceed
© Solution Selling, Inc. • 2008 PAGE 97www.solutionselling.com
Value Analysis
Total Benefits (ABC Manufacturing Example)
Increased PROFITS from additional sales REVENUE
Retained annual sales revenues resulting from reduced defects $500K (1)
New annual sales revenue resulting from improved throughput $500K (1) Profit margin is 32% (1)
$1M sales revenue increase
X 0.32 (profit margin)= $320K
profit increase
Reduced COSTS
Reduced COSTS Rework (1)
Avoided COSTS Recruiting and new hire training costs (2)
= $560,000 cost decrease
= $100,000 cost avoided
INTANGIBLES
Improved morale by the sales staff (1)(3) Increased throughput for greater capacity (1) Improved cash flow (2)
(1) VP Operations (2) Controller (3) HR Manager
© Solution Selling, Inc. • 2008 PAGE 98www.solutionselling.com
Value Analysis
Total Investment (ABC Manufacturing Example)
One time INVESTMENT
Professional (1)• $10K in Q2, $25K in Q3, 15K in Q4
$50,000
(1) Selling Organization
© Solution Selling, Inc. • 2008 PAGE 99www.solutionselling.com
Value Analysis
ABC Manufacturing ExamplePhased over time (in 000s)
Q1 Q2 Q3 Q4
BENEFITS
Increased profits (1) 0 0 200 120
Reduced costs (1) 0 60 200 300
Avoided costs (2) 0 10 45 45
Quarterly total 0 70 445 465
Cumulative value 0 70 515 980
INVESTMENTS
One time investment 0 10 25 15
Cumulative investment 0 10 35 50
NET VALUE
Quarterly total 0 60 420 450
Cumulative total 0 60 480 930
(1) VP Operations(2) Controller
1st year net return: $930,000Breakeven point: 2th quarterROI: 19.6X
© Solution Selling, Inc. • 2008 PAGE 100www.solutionselling.com
Sales Tool Description
Value Analysis / Value Justification
Overview:
The Value Analysis / Value Justification Model is used to document the projected benefits (revenue increase and cost decrease) associated with the used of the seller’s product / service after implementation. The cost or investment of the overall offering (“solution”) should be documented as well (including maintenance and services).
Where / How used:
The Value Analysis / Value Justification Model is used early in phase II of the sale (as the prospect is evaluating alternatives). It is used to present a detailed breakdown of the potential costs decreases and revenue increases within the buyer’s organization associated with the implementation of the seller’s product and services. This job aid enables a seller to present the value of their offering in relation to presenting the costs in terms of an investment. The strength in using this model is that the numbers for the analysis come from the prospect. This financial data is derived from the seller’s conversation with the buyer(s) during the vision processing conversation(s).
What you should achieve:
Using the Value Analysis / Value Justification Model will help sellers be able to project the “return on investment (%)”, the First Year Net Return ($), and the Breakeven Point (Qtr) using the numbers provided by the prospect. Note: Be careful using the term “ROI” vs. “Value Analysis” since most clients have different definitions and parameters around the phrase “ROI”.
Input Required:
Completion of the model requires the cost / customer investment of the entire project, projected increased revenue and decreased costs associated with the use of the implemented offering, and the return over a specific time period.
© Solution Selling, Inc. • 2008 PAGE 101www.solutionselling.com
Exercise: Create a Sample Value Analysis
Purpose:
Create a draft of an example Value Analysis / Value Justification (spreadsheet) formulating the information that would be uncovered during the diagnostic conversations (vision processing)
Activities:
Prepare a Value Analysis / Value Justification that demonstrates how the projected benefits of your capabilities compare against the investment to be made on the part of the customer
Notes:
You may want to describe the individual benefits (increase profit from increased revenue, reduced cost and avoided costs) and investments (one-time and on-going) on separate pages and then have the final page show the comparative analysis in the form of a spreadsheet
Regarding expected benefits, consider the ramp up time associated with implementing and fully utilizing capabilities
© Solution Selling, Inc. • 2008 PAGE 102www.solutionselling.com
Value Analysis: Benefits
Increased PROFITS from additional sales REVENUE
Reduced COSTS
Reduced COSTS Avoided COSTS
INTANGIBLES
(1)(2)(3)(4)
© Solution Selling, Inc. • 2008 PAGE 103www.solutionselling.com
Value Analysis: Investment
One time INVESTMENT
On-going INVESTMENT
(1) (2) (3) (4)
© Solution Selling, Inc. • 2008 PAGE 104www.solutionselling.com
Value Analysis (Comparison)
Phased over time (in 000s)
Q1 Q2 Q3 Q4
BENEFITS
Increased profits
Reduced costs
Avoided costs
Quarterly total
Cumulative value
INVESTMENTS
One time investment
On-going investment
Quarterly total
Cumulative investment
NET VALUE
Quarterly total
Cumulative total
1st year net return: $ _____________Breakeven point: Quarter _____ROI (first year): _________%
© Solution Selling, Inc. • 2008 PAGE 105www.solutionselling.com
Draft Evaluation Plan: Example
Attachment to Power Sponsor Letter / e-mail
[DRAFT]
Event Week of √ Responsible Go/No Go Billable
Phone interview John Watkins (CIO) Feb 14 Us/TGI
Phone interview Donna Moore (COO) Feb 14 Us/TGI
Summarize findings to management team and agree to evaluation plan
Feb 21 Us/TGI *
Prove capabilities to management team Feb 28 Us *
Perform detailed survey of current systems (2 days) March 4 Us yes
Present preliminary solution/design March 11 Us *
Implementation plan approval by IT department March 18 TGI *
Determine / present value justification March 18 Us/TGI *
Agree on preliminary success criteria March 18 Us/TGI
Send our license agreement to legal March 18 Us
Gain legal approval (Terms & Conditions) April 4 TGI *
Visit Corporate HQ April 11 Us
Pre-proposal review meeting April 18 Us
Present proposal for approval April 25 Us *
Transition kickoff & finalize success criteria May 10 Us/TGI
Measure success criteria Ongoing TGI
* Mutual decision to proceed
© Solution Selling, Inc. • 2008 PAGE 106www.solutionselling.com
Success Criteria: Leveraging Success
Criteria Baseline Q1 Q2 Q3 Q4
I2 C2
RI
R2
I1 C1
R3 I3 C3
Reference Story
Situation:Critical issue:Reasons:Capabilities:We provided:
Results:
Reference Story
Situation:Critical issue:Reasons:Capabilities:We provided:
Results:
Business Development Prompter: New Opportunity
This is __________ (salesperson name) with __________ (your company). You and I haven’t spoken before, but we have been working with __________ (specific industry)
organizations for the last ___ (#) years. A common trend we are hearing lately from other __________ (job title) is their frustration (difficulty) with _______________ (job title’s likely critical issue / pain) [resulting from ______ (articulate common reasons)]. We have been
able to help our customers address this issue. Would you like to know how?
© Solution Selling, Inc. • 2008 PAGE 107www.solutionselling.com
Sales Tool Description
Success Criteria
Overview:
Measuring Success Criteria helps track the effectiveness of implementation.
Where / How used:
Establishing what criteria will be measured should be done with the Power Sponsor. The measurement of realized value compared to projected value is post sale activity.
What you should achieve:
Success Criteria tracks information that can be used to open new sales opportunities within an existing customer, provide guidelines for maintaining a strong customer relationship, and also provide quantifiable results that can be used in future Reference Stories. A major benefit of setting the criteria to be measured with the prospect is that is helps to reduce the risk the prospect starts to feel as they began to see themselves implementing the seller’s offering. Note: Risk is a dire concern to a buyer at this phase in their buying process.
Input Required:
To create the Success Criteria, actual customer results are required. In order to complete the template, specific, measurable elements of the Value Analysis / ROI that the seller’s products / services have influence over must be determined with the prospect. You also must determine the length of time to be engaged with the client in this activity. Note: Make sure that the criteria (when measured) can be attributed to your offerings. E.g. Often times stock price is a not a good element to track because too many things affect its value outside of your control.
© Solution Selling, Inc. • 2008 PAGE 108www.solutionselling.com
Exercise: Create Sample Success Criteria
Purpose:
To create a sample list of Success Criteria that your sellers could use as a starting point for recommendation
Activities:
List some of the Success Criteria that would me measured after implementation (i.e. those things that will change in the business as a result of implementing your offering)
Establish a baseline metric that would demonstrate that the seller should work with the buyer to agree on baseline metrics by which to measure against
Note:
Ensure the items listed are controllable by the capabilities of your offering. Be cautious of using items that could be affected by numerous outside variables
© Solution Selling, Inc. • 2008 PAGE 109www.solutionselling.com
Success Criteria Template
Criteria Baseline Q1 Q2 Q3 Q4
(1) (2) (3) (4)
© Solution Selling, Inc. • 2008 PAGE 110www.solutionselling.com
Negotiating
Knowledge is power
Plan before you begin
Is it closeable during this meeting?
Know what you will accept
Know what you are willing to give
Seek to understand the true interests underlying buying positions taken
Give reluctantly and slowly (if necessary)
Withstand up to three “squeezes” by the buyer
Don’t give without getting
Be willing to walk away today
Salesperson must overcome emotional hurdle first
Buyer must believe he/she is getting the best price
Use a mutual win approach
If less than 100% of quota, do not negotiate alone
© Solution Selling, Inc. • 2008 PAGE 111www.solutionselling.com
Negotiating Worksheet: Example
Is it closeable today? Power to buy? Payback agreed to? VP Finance L/T/A approvals? VP Finance Plan completed? Known cost since: 4 months
Stand 1 (Plan):
“Our published plan shows an implementation starting on Monday. Is this issue worth the delay?”
Stand 2 (Value):
“When we calculated the payback, you told me that even with all of the costs included the return was higher than you expected and the project would pay for itself in 10 months.”
Stand 3 (Pain):
“The reasons we have spend the last four months together is because you are not meeting your new account revenue targets. That issue is not going to go away until you gain these new capabilities.”
Salesperson: “The only way I could do something for you is if you could do something for me.”
Buyer (should ask): “Like what?”
GET“Is it possible for you to… move phases I and II together and take delivery of the hardware shipment this quarter? Is that possible?”
If the buyer indicates a concession, present your “give”
GIVE“If you can… move phases I and II together, then we are prepared to offer __________ which is worth $__________. Can we go forward on that basis?”
© Solution Selling, Inc. • 2008 PAGE 112www.solutionselling.com
Sales Tool Description
Negotiating Worksheet
Overview:
The Negotiating Worksheet is used as a pre-negotiation preparation tool. It helps you resist requests for concessions likely to be made by the buyer.
Where / How used:
The Negotiating Worksheet should be completed prior to discussions to finalize the terms of the sale. It provides guidelines to making stands against buyer concessions. The stands should be based on logical information you developed during the buying process. Key “stands” may include (in no particular order of importance):
1. Pain Stand – recall the buyer’s pain driving the opportunity
2. Vision Stand – recall the vision established to address the critical business issue
3. Value Stand – recall the quantifiable value associated with addressing the pain
4. Plan Stand – recall the Evaluation Plan indicating the timeline to realize benefits
What you should achieve:
Reduced stress by minimizing the pressure on you to discount price or give in on terms
Higher margins
Fewer concessions
Improved negotiations
Better business terms and conditions
Input required:
To create the Negotiating Worksheet, pain must have been uncovered, a buying vision created, a Value Justification Model completed, and an Evaluation Plan with a planned implementation date agreed upon.
© Solution Selling, Inc. • 2008 PAGE 113www.solutionselling.com
Exercise: Develop a Negotiating Worksheet and Get-Give List
Purpose:
Create a sample Negotiating Worksheet in order to depict how key information established during the sales cycle can assist sellers in preparing for a final negotiation
Prepare a Get-Give List in anticipation of having to satisfy a concession
Activities:
Develop 3-4 logic-based stands that serve to undermine potential concessions asked of by your buyer. The logic inherent in these stands should be based on the business case developed throughout the sales cycle
Prepare for the negotiation by creating a Get-Give List:
Developing a list of potential concessions (“gives”)
Developing a list of potential requests (“gets”)
Developing a list of non negotiable items
© Solution Selling, Inc. • 2008 PAGE 114www.solutionselling.com
Negotiating Worksheet
Is it closeable today? __ Power to buy?__ Payback agreed to? VP Finance __ L/T/A approvals? VP Finance__ Plan completed?__ Known cost since: 4 months
Stand 1
Stand 2
Stand 3
Salesperson: “The only way I could do something for you is if you could do something for me.”
Buyer (should ask): “Like what?”
GET“Is it possible for you to… _____________________________________________________ ___________________________________________________________? Is that possible?”
Silence! Only if buyer accepts your condition
GIVE “If you can… ______________________, then we are prepared to offer _________________ _____________________ which is worth $__________. Can we go forward on that basis?”
© Solution Selling, Inc. • 2008 PAGE 115www.solutionselling.com
Get-Give List
Your priority GET
Value
GIVEProjected customer priority
1
2
3
4
5
NOT NEGOTIABLE
1
2
3
© Solution Selling, Inc. • 2008 PAGE 116www.solutionselling.com
Sales Tools for Completion
Sales Tool Groups Purpose and/or Actions
Group 1
Account Profile Key Players List Pain Chain® Pain Sheet® (for Sponsor)
Brainstorm, analyze, discuss and agree upon key elements of a general opportunity upon which the development of all other sales tools will be based
Group 2
Business Development Prompters and Letter Reference Story Initial Value Proposition First Call Introduction
Develop sales tools that can be used to assist a sales professional in initiating a sales cycle by establishing credibility and targeting possible critical issues of the prospect
Group 3
Pain Sheet® (for Power Sponsor) Evaluation Plan Transition Issues & Capabilities Transition-Implementation Plan Value Analysis / Justification Success Criteria Negotiating Worksheet and Get-Give List
Create sales tools to help control the sales cycle, qualify the buying process, and mitigate buyer’s risk through promoting value and offering proof
Group 4
Sponsor and Power Sponsor Letters Situation Questions Go/No Go Step Completion Letter Sponsor Vision Reengineering Letter Transition Plan Letter
Complete these sales tools based on input from Sales Tool Groups 1-3
© Solution Selling, Inc. • 2008 PAGE 117www.solutionselling.com
Potential Sponsor Letter / e-mail: Example
John Smith (Quality Manager),
Thank you for your interest in our company. The purpose of this letter is to summarize my understanding of our meeting and our action plan.
We discussed the following:(1) Your primary critical issue is increased defects which has added $600,000 this year to production costs.
(2) Reasons your defects are increasing: the inability to identify the root cause of the defects lack of process controls lack of adherence to your quality management system
(3) Capabilities you said you needed: that when parts or products are rejected, your quality personnel could apply effective data collection, defect analysis, and
problem solving tools to identify the root cause and to implement corrective actions when manufacturing a part or product, all your machine operators could eliminate variances by knowing exactly what to do
and how to do it when processing an order, all personnel involved would follow required work instruction and procedures.
You said if you had these capabilities, you would be able to reduce then number of existing defects and help reduce and address future defects, allowing you to recapture $560,000 of production costs.
Our next steps(4) You agreed to move forward with our company (5) and said if we succeed in proving we can give you these capabilities,
you will introduce me to Eric Jones, your VP Operation. You mentioned Eric is not happy with the increased production costs and its impact on profits.
(6) I would like to propose that we arrange a meeting with another Quality Manager who has implemented QMS tools and practices with our help. I am confident you will like what you see and introduce our company to the rest of your organization. I’ll call you Monday to discuss it further.
Sincerely, Steve Parsons
John Smith (Quality Manager),
Thank you for your interest in our company. The purpose of this letter is to summarize my understanding of our meeting and our action plan.
We discussed the following:(1) Your primary critical issue is increased defects which has added $600,000 this year to production costs.
(2) Reasons your defects are increasing: the inability to identify the root cause of the defects lack of process controls lack of adherence to your quality management system
(3) Capabilities you said you needed: that when parts or products are rejected, your quality personnel could apply effective data collection, defect analysis, and
problem solving tools to identify the root cause and to implement corrective actions when manufacturing a part or product, all your machine operators could eliminate variances by knowing exactly what to do
and how to do it when processing an order, all personnel involved would follow required work instruction and procedures.
You said if you had these capabilities, you would be able to reduce then number of existing defects and help reduce and address future defects, allowing you to recapture $560,000 of production costs.
Our next steps(4) You agreed to move forward with our company (5) and said if we succeed in proving we can give you these capabilities,
you will introduce me to Eric Jones, your VP Operation. You mentioned Eric is not happy with the increased production costs and its impact on profits.
(6) I would like to propose that we arrange a meeting with another Quality Manager who has implemented QMS tools and practices with our help. I am confident you will like what you see and introduce our company to the rest of your organization. I’ll call you Monday to discuss it further.
Sincerely, Steve Parsons
Qualification Components:123456
© Solution Selling, Inc. • 2008 PAGE 118www.solutionselling.com
Potential Sponsor Letter / e-mail: Template
Name-of-Sponsor,
Thank you for your interest in your-company-name. The purpose of this letter (email) is to summarize my understanding of our meeting and our action plan.
We discussed the following:
Your primary critical business issue is describe-the-sponsor’s-pain.
The reasons you are having this critical business issue are:
Describe-Reason-A
Describe-Reason-B
Describe-Reason-C
The capabilities you said you needed to resolve this situation are:
Describe-Capability-A
Describe-Capability-B
Describe-Capability-C
Our next steps
You agreed to move forward with our company and said if we succeed in proving we can give you these capabilities, you will introduce me to power-sponsor’s-name-and-title. You mentioned he/she is not happy with the impact that your critical business issue is having upon his/her ability to describe-the-power-sponsor’s-pain-or-goal.
I would like to propose that describe-proof-step.
I am confident you will like what you see and introduce our company to the rest of your organization. I’ll call you on date to discuss it further.
Sincerely,
Salesperson’s-name
Name-of-Sponsor,
Thank you for your interest in your-company-name. The purpose of this letter (email) is to summarize my understanding of our meeting and our action plan.
We discussed the following:
Your primary critical business issue is describe-the-sponsor’s-pain.
The reasons you are having this critical business issue are:
Describe-Reason-A
Describe-Reason-B
Describe-Reason-C
The capabilities you said you needed to resolve this situation are:
Describe-Capability-A
Describe-Capability-B
Describe-Capability-C
Our next steps
You agreed to move forward with our company and said if we succeed in proving we can give you these capabilities, you will introduce me to power-sponsor’s-name-and-title. You mentioned he/she is not happy with the impact that your critical business issue is having upon his/her ability to describe-the-power-sponsor’s-pain-or-goal.
I would like to propose that describe-proof-step.
I am confident you will like what you see and introduce our company to the rest of your organization. I’ll call you on date to discuss it further.
Sincerely,
Salesperson’s-name
© Solution Selling, Inc. • 2008 PAGE 119www.solutionselling.com
Potential Power Sponsor Letter / e-mail: Example
Jim (VP Finance),
Thank you for meeting with Steve Jones and me earlier today. I believe it was time well spent for both TGI and our company.
We discussed the following:(1) Your primary critical issue is declining profits due to the revenue shortfall. You said you were about $8 million below plan.
(2) Reasons for declining profits:□ Missing new account revenue targets□ Rising operational costs□ Increasing credit write-offs
(3) Capabilities you said you needed:□ when visiting your web-site, your customers could place and confirm orders via the internet, get questions
answered through a FAQ menu, be notified of promotions, and be prompted to submit referrals□ for customers to be able to click on a FAQ web menu to get their answers and only require a CSR for
extraordinary situations□ prior to accepting an order, your web-site could alert your customer to outstanding credit issues needing to be
resolved with the ability to speak to someone in your accounting department
(4) You said if you had these capabilities, Steve could meet his revenue targets, Donna Moore could reduce operating expenses, your Controller could reduce the average age of his receivables and you would be able to increase profits by at least $4.5 M.
Our next steps(5) When I told you I was confident our company could help you integrate an e-Commerce application with your existing internal accounting and inventory system, you agreed to commit the resources needed to evaluate our ability to do so.
(6) Based on my knowledge to date, I am attaching a suggested evaluation plan for your further exploration of our company. Look it over with Steve, and I will call you on February 7, to get your thoughts.
Sincerely, Bill Hart
Attachment: Draft Evaluation Plan
Jim (VP Finance),
Thank you for meeting with Steve Jones and me earlier today. I believe it was time well spent for both TGI and our company.
We discussed the following:(1) Your primary critical issue is declining profits due to the revenue shortfall. You said you were about $8 million below plan.
(2) Reasons for declining profits:□ Missing new account revenue targets□ Rising operational costs□ Increasing credit write-offs
(3) Capabilities you said you needed:□ when visiting your web-site, your customers could place and confirm orders via the internet, get questions
answered through a FAQ menu, be notified of promotions, and be prompted to submit referrals□ for customers to be able to click on a FAQ web menu to get their answers and only require a CSR for
extraordinary situations□ prior to accepting an order, your web-site could alert your customer to outstanding credit issues needing to be
resolved with the ability to speak to someone in your accounting department
(4) You said if you had these capabilities, Steve could meet his revenue targets, Donna Moore could reduce operating expenses, your Controller could reduce the average age of his receivables and you would be able to increase profits by at least $4.5 M.
Our next steps(5) When I told you I was confident our company could help you integrate an e-Commerce application with your existing internal accounting and inventory system, you agreed to commit the resources needed to evaluate our ability to do so.
(6) Based on my knowledge to date, I am attaching a suggested evaluation plan for your further exploration of our company. Look it over with Steve, and I will call you on February 7, to get your thoughts.
Sincerely, Bill Hart
Attachment: Draft Evaluation Plan
Qualification Components:1 Pain2 Reasons for the Pain3 Buying Vision4 Organizational Impact5 Agreement to Explore6 Evaluation Plan Set-up
© Solution Selling, Inc. • 2008 PAGE 120www.solutionselling.com
Potential Power Sponsor Letter / e-mail: Template
Name-of-Power-Sponsor,
Thank you for meeting with Name-of-Sponsor and me earlier today. I believe it was time well spent for both organizations.
We discussed the following:
Your primary critical business issue is describe-the-power-sponsor’s-pain.
The reasons you are having this critical business issue are:
Describe-Reason-A
Describe-Reason-B
Describe-Reason-C
The capabilities you said you needed to resolve this situation are:
Describe-Capability-A
Describe-Capability-B
Describe-Capability-C
You said if you had these capabilities that describe-how-others-impacted-will-reach-their-goals.
Our next steps
When I told you I was confident that our organization can help you describe-goal-of-power-sponsor, you agreed to take a serious look at our ability to do so. Based on my knowledge to date, I am suggesting an evaluation plan for your further exploration of our organization’s capabilities. Look over the plan with _______________ Name-of-Sponsor and I will call you on date to get your thoughts.
Sincerely,
Salesperson’s-name
Attachment: Draft Evaluation Plan
Name-of-Power-Sponsor,
Thank you for meeting with Name-of-Sponsor and me earlier today. I believe it was time well spent for both organizations.
We discussed the following:
Your primary critical business issue is describe-the-power-sponsor’s-pain.
The reasons you are having this critical business issue are:
Describe-Reason-A
Describe-Reason-B
Describe-Reason-C
The capabilities you said you needed to resolve this situation are:
Describe-Capability-A
Describe-Capability-B
Describe-Capability-C
You said if you had these capabilities that describe-how-others-impacted-will-reach-their-goals.
Our next steps
When I told you I was confident that our organization can help you describe-goal-of-power-sponsor, you agreed to take a serious look at our ability to do so. Based on my knowledge to date, I am suggesting an evaluation plan for your further exploration of our organization’s capabilities. Look over the plan with _______________ Name-of-Sponsor and I will call you on date to get your thoughts.
Sincerely,
Salesperson’s-name
Attachment: Draft Evaluation Plan
© Solution Selling, Inc. • 2008 PAGE 121www.solutionselling.com
Potential Vision Reengineering Sponsor Letter / e-mail: Template
Name-of-Sponsor,
Thank you for your interest in your-company-name. The purpose of this letter (email) is to summarize my understanding of our meeting and our action plan.
We discussed the following:
The capabilities you said you needed:
Describe-Capability-A
Describe-Capability-B
Describe-Capability-C
You said if you have these capabilities you would be able to address your primary critical business issue of describe-the-sponsor’s-pain.
The reasons you are having this critical business issue are:
Describe-Reason-A
Describe-Reason-B
Describe-Reason-C
Our next steps
You mentioned your current situation impacts others including power-sponsor’s-name-and-title-and-others. At the close of our conversation, you suggested you would schedule a meeting with them so we can discuss the organizational impact of this issue. At that meeting we can mutually agree upon next steps. As we discussed, I will be required to provide proof that we can give you these capabilities and you will require that same proof from all other potential vendors. I am available for our next meeting this on date-range-and-time-range . I will call you on date to schedule the appointment, it should take about number minutes.
Sincerely,
Salesperson’s-name
Name-of-Sponsor,
Thank you for your interest in your-company-name. The purpose of this letter (email) is to summarize my understanding of our meeting and our action plan.
We discussed the following:
The capabilities you said you needed:
Describe-Capability-A
Describe-Capability-B
Describe-Capability-C
You said if you have these capabilities you would be able to address your primary critical business issue of describe-the-sponsor’s-pain.
The reasons you are having this critical business issue are:
Describe-Reason-A
Describe-Reason-B
Describe-Reason-C
Our next steps
You mentioned your current situation impacts others including power-sponsor’s-name-and-title-and-others. At the close of our conversation, you suggested you would schedule a meeting with them so we can discuss the organizational impact of this issue. At that meeting we can mutually agree upon next steps. As we discussed, I will be required to provide proof that we can give you these capabilities and you will require that same proof from all other potential vendors. I am available for our next meeting this on date-range-and-time-range . I will call you on date to schedule the appointment, it should take about number minutes.
Sincerely,
Salesperson’s-name
© Solution Selling, Inc. • 2008 PAGE 122www.solutionselling.com
Getting Pain Admitted – Flowchart (Step 3)
Talking
freely?
Pain?
ASK SITUATION QUESTIONS
ASK MENU OF PAIN QUESTIONS
No
Yes
No
Pain?
Transition to Getting Pain Admitted (End of Step 2)
“But enough about (my company). Tell me about you and your situation.”
Transition to Getting Pain Admitted (End of Step 2)
“But enough about (my company). Tell me about you and your situation.”
No
Pain?
No
Yes
Yes
Yes
Qualify Out
Prioritize Pain Step 4Step 4
No
© Solution Selling, Inc. • 2008 PAGE 123www.solutionselling.com
Getting Pain Admitted
Question Examples
SITUATION QUESTIONS
MENU OF PAIN QUESTIONS
“Today, when a part or product is rejected, what steps are taken to identify the root cause?”
“Today, if a machine operator has a question regarding a particular work procedure what do they do?”
“What type of customer complaints are you hearing recently?”
“What bad thing happens because of the situation you described?”
“The top three difficulties we are hearing from Quality Managers these days include: Increased defects Inadequate QMS to meet the needs of new, larger customers Higher costs/less results implementing QMS
…are you facing any of these issues today?” OR
…are you curious how we have helped our customers deal with these issues?”
© Solution Selling, Inc. • 2008 PAGE 124www.solutionselling.com
“Go/No Go” Step Completion Letter / e-mail: Example
To: [email protected]: [email protected]; [email protected]; [email protected]; Subject: Evaluation Plan - step completionAttachment: Updated Evaluation Plan v2.doc
Eric and team,
I am pleased to report that another milestone has been completed. On February 21 your team approved the evaluation plan. The changes you requested are reflected in the attached copy.
Our next milestone is the week of February 28 when the entire management team is scheduled to visit our client and meet with their senior executives.
Thank you again for your continued support of this project.
Sincerely,Steve Parsons
To: [email protected]: [email protected]; [email protected]; [email protected]; Subject: Evaluation Plan - step completionAttachment: Updated Evaluation Plan v2.doc
Eric and team,
I am pleased to report that another milestone has been completed. On February 21 your team approved the evaluation plan. The changes you requested are reflected in the attached copy.
Our next milestone is the week of February 28 when the entire management team is scheduled to visit our client and meet with their senior executives.
Thank you again for your continued support of this project.
Sincerely,Steve Parsons
© Solution Selling, Inc. • 2008 PAGE 125www.solutionselling.com
Transition Issues & Capabilities Worksheet
Executives, Users and Beneficiaries
• • •
Person responsible for implementation of needed operational capabilities
Name and Title:Transition Issue:
REASONS OUR TRANSITION CAPABILITIES
A. A.
B. B.
C. C.
© Solution Selling, Inc. • 2008 PAGE 126www.solutionselling.com
Transition / Implementation Plan Letter (e-mail): Example
Thank you… summarize my understanding of our meeting and propose some scheduling assistance for you.
We discussed the following:
Concern about…. Your specific areas of concern as they relate to the schedule are:
□ -□ - □ -
Proposed Transition Capabilities□ - □ - □ -
You said if you had these capabilities, you could support the proposed QMS/Process Improvement initiative.
Our next stepsBased on my knowledge to date, I am suggesting an implementation plan for your consideration.
Sincerely, Steve Parsons
Attachment: ImplementationPlan.doc
Thank you… summarize my understanding of our meeting and propose some scheduling assistance for you.
We discussed the following:
Concern about…. Your specific areas of concern as they relate to the schedule are:
□ -□ - □ -
Proposed Transition Capabilities□ - □ - □ -
You said if you had these capabilities, you could support the proposed QMS/Process Improvement initiative.
Our next stepsBased on my knowledge to date, I am suggesting an implementation plan for your consideration.
Sincerely, Steve Parsons
Attachment: ImplementationPlan.doc
© Solution Selling, Inc. • 2008 PAGE 127www.solutionselling.com
Proposed Transition / Implementation Plan: Example
Attachment to Transition / Implementation Plan Letter / e-mail
Implementation Plan
Week of Event Us TGI Billable
© Solution Selling, Inc. • 2008 PAGE 128www.solutionselling.com
Sales Tools for Completion
Sales Tool Groups Purpose and/or Actions
Group 1
Account Profile Key Players List Pain Chain®
Brainstorm, analyze, discuss and agree upon key elements of a general opportunity upon which the development of all other sales tools will be based
Group 2
Business Development Prompters and Letter Reference Story Initial Value Proposition First Call Introduction
Develop sales tools that can be used to assist a sales professional in initiating a sales cycle by establishing credibility and targeting possible critical issues of the prospect
Group 3
Pain Sheet® (Sponsor and Power Sponsor) Evaluation Plan Transition Issues & Capabilities Transition-Implementation Plan Value Analysis / Justification Success Criteria Negotiating Worksheet and Get-Give List
Create sales tools to help control the sales cycle, qualify the buying process, and mitigate buyer’s risk through promoting value and offering proof
Group 4
Sponsor and Power Sponsor Letters Situation Questions Go/No Go Step Completion Letter Sponsor Vision Reengineering Letter Transition Plan Letter
Complete these sales tools based on input from Sales Tool Groups 1-3
© Solution Selling, Inc. • 2008 PAGE 129www.solutionselling.com
MMTC Sales Process Map: (Draft 9/16/09)
Close IM Analyze Develop Prove NegotiatePlan Implement
What HELP is available?Define needs/wants & requirements
Evaluate options
Select solutions and evaluate risk Resolve issues and finalize contracts Implement and
evaluate success
Get necessary documents signed
Identify potential beneficiary
Establish trust and credibility
Stimulate interest Identify perceived
pain Conduct plant
tour Confirm and
prioritize pain Confirm dialogue
and agree upon next steps
Diagnose admitted pain of Sponsor
Create or reengineer vision for sponsor
Gain agreement to explore further
Negotiate access to power
Confirm dialogue and agree upon next steps
Diagnose admit-ted pain of Power
Create or reengineer vision for power sponsor
Gain agreement to explore further
Determine evaluation criteria
Propose a plan of next steps
Confirm dialogue and agree upon plan of next steps
Begin execution of next steps
Present preliminary solution
Prove capabilities (Oper, Trans, Fin)
Conduct review of proposal
Issue proposal Ask for the
business Receive verbal
approval
Prepare for final negotiations
Reach final agreement
Conduct territory / account and/or opportunity planning
Identify potential opportunity
Conduct pre-call planning and research
Participation and follow-up of Learn About & Seminars
Develop Partner Relationships
Lead Follow-up
Implement solution
Complete implementation approach
Measure success criteria
Identify potential new opportunities
Obtain referrals
Documents signed
Lead Letter agreed upon
Sponsor Letter agreed upon
Evaluation Plan modified or agreed upon
Verbal approval received
Ts and Cs agreed upon
Territory / Acct / Opportunity Plan developed
Evaluations & Lead Tracking
90%10% 25% 50% 75% 100%
S.A. PrompterValue PropositionReference StoryBus. Dev. LetterBus. Dev. PrompterWaste WalkTrans. Planner/BPS
9 Block Model®Pain Sheet®S. A. PrompterSponsor LetterTrans. Planner/BPS
9 Block Model®Pain Sheet®S. A. PrompterPower S. LetterEvaluation Plan
Evaluation PlanTransition LetterImplement. PlanValue AnalysisSuccess Criteria
/A3
Negotiating Worksheet
Get-Give List
T/A/O PlanAccount ProfilePain Chain®Key Players List
Implementation Plan
Success CriteriaA3Reference StoryPost project debrief
Plan Execute Implement
Sales Sales mgt. Sales support
Sales Pre-sales Marketing
Sales Pre-sales Sales mgt. Subj Expert
Sales Pre-sales Sales mgt. Subj Expert
Sales Pre-sales Sales mgt. Subj Expert
Sales Sales mgt.
Sales Sales mgt.
Sales support Services Sales
Sales Process Steps
Sales Process Activities
Verifiable Outcomes
Roles (examples)
Sales Tools
Sales Management System
Implementation Plan completed
Buying Process