sales influence presentation june 2015 07062015
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Influencing Stakeholders in Procurement4th Annual Public Sector Procurement Asia Exchange
Madeleine Tewes
Apsiz Services (Hong Kong) Ltd
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Objectives
Applying success factors for Sales Professionals
to Procurement Professionals
Understanding key concepts related to
influence
Implementing common influencing models
Practice implementing these success factors,
key concepts and models
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Agenda
• Introduction
• Success factors of Sales Professionals
• Key concepts of influence
• Influencing stakeholders
• Conclusion
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IntroductionAbout Apsiz
• Procurement consultancy supported by a global network of best-in-class partners
• Offices in the UK and Hong Kong and clients around the world
• Dedicated to helping clients transform their commercial performance through
• Managed Sourcing
• Contract and Supplier Management Services
• Category Strategy Development
• Supplier Financial Risk Assessments
• Supplier Identification
• Business Performance Analysis
Managed Services
• P2P Process Reviews
• Savings Identification and Delivery
• Procurement Process Reviews
• Contract Compliance Reviews
• Procurement Skills Assessment and Training – eLearning and face-to-face
• Permanent and Interim Procurement Resources
Consultancy and Advisory Services
• Spend Analysis
• Spend Recovery
• Category Management Toolkit
• Commercial Intelligence Hub
• Sustainability Analysis
• eSourcing Tool/ eAuctions
• Complex Tender Evaluation
• Contract and Supplier Management
Technology Solutions
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IntroductionBackground
• 4th Annual Public Sector Procurement Asia Exchange
• Recent spotlight on the integrity of Government procurement processes
• Governments globally are driving towards more common and smarterprocurement systems
• Increasing need to develop more effective ways of engaging the stakeholders
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IntroductionExercise
• Think about a person in Procurement who successfully influences their stakeholders
• Some examples• Helen Clegg: Knowledge Director for the Procurement & Analytic Solutions’
Practice of A.T. Kearney• Cindy Dunham: General Manager of Global Process Architecture at Rio
Tinto• Marc Engel: Chief Procurement Officer at Unilever• Past boss or colleague
• Write down the factors/ reasons/ tricks that you think made them successful
• Do you currently utilise these factors/ reasons/ tricks to successfully influence yourstakeholders?
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Exercise ResultsFactors/ reasons/ tricks that made those procurement professionals successful in influencing their stakeholder
• The factors/ reasons/ tricks you think made them successful include:• Use of emotion (greed, ego, fear) to get the desired decision• Logical business case• Vision• Good/ right decision is requested• Have the experience• Explain the benefits• Use facts• Present a win-win scenario• Fits into the business strategy
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Exercise ResultsThe factors/ reasons/ tricks that you think made them successful but you don’t utilise
• The factors/ reasons/ tricks to successfully influence your stakeholders that you areyou not using enough include:• Emotion – start/ stop at fact/ just focus on tangibles• Facts – not enough preparation/ not available• Tailoring influence tactic – need to learn from past experiences
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Success Factors for SalespeopleIntroduction
*Herb Greenberg, Harold Weinstein and Patrick Sweeney. How to Hire & Develop Your Next Top Performer: thefive qualities that make salespeople great. New York: McGraw-Hill, 2001, pp. 9.
Empathy
Focus
Responsibility Optimism
Ego-drive
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Success FactorsEmpathy
Ability to identify and react accurately to the
behaviour and emotions of customers
Identify other people’s feelings/frustrations objectively without necessarily agreeing
with them
Ability to establish rapport easily and put
people “at ease” in their presence
Good listening skills
Curiosity—asks questions that require more than a yes or no
answer
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Success FactorsFocus
Goal-orientated and have the ability to articulate their
goals clearly and assign timelines
Do not depend upon the sales manager for direction
or guidance
Possess the self-discipline and conscientiousness to
service customers and develop the business from
that customer on successive sales calls
Clear, direct answers to questions
Balance with empathy so the person listens and
identifies with the customer while keeping focused on translating their goals into solutions for the customer
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Success FactorsResponsibility
Possess an appropriate sense of urgency, as
exemplified in the need to see the sale progress and to
bring situations to a resolution
Anticipate consequences and evaluate alternatives
before acting
Tend to not have excuses for a situation and take action when situations
require action
Maintain a positive outlook towards situations and
people—tends to admire, and not to criticize a lot
Can accept valid criticisms and suggestions for
performance improvement
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Success FactorsOptimism
Initiative and the ability to focus on
opportunities and solutions
Focus on what can be done as opposed to
what cannot be accomplished
Refusal to allow rejection on one sales
call to affect their ability to perform on
the next
Persistence in forcing an important issue even
in the face of possible rejection
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Success FactorsEgo-Drive
Enjoy competitiveness and constantly look for
ways to measure themselves against their
peers
Possess leadership qualities and is not
afraid to exert pressure to influence others
Enjoy sales as a profession for it
provides personal gratification and ego
enhancement
Determined to win and willing to take risks
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Success FactorsHot Tips from the Professionals
“Our company’s best sales tip is building a great relationship with customers. We
believe in becoming a trusted partner in business and with that, the customers will
keep coming back. If you go above and beyond, customers will also tell friends and colleagues. Your network will grow. ”Deborah Sweeney CEO, MyCorporation
“Depending on where we sit around the business table, we see the same things differently. Appreciate the differences.”
Babette Ten Haken management and business coach
‘’Speak to your clients in a language they understand. Talking over heads never wins
business.” Stephanie Onken Marketing Coordinator, The Hayzlett Group
“Today’s self-educating buyer doesn’t want to be sold. They want to make the right
buying decision. Your job is to help them complete their education in a manner that
favors your product or service. “ Tom Martin Founder, Converse Digital
“I believe that many sales pros are too focused on themselves and not their
prospect. Reaching their own goal is top priority rather than adding value for their prospect.” Paul Alves CEO, AG Sales works
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Success FactorsHot Tips from Clients and Colleagues
Understand your audience and tailor your
influencing tactic to them
Be factual above anything else
Have some standard approaches you can use in situations you are in regularly – reflect and
refine as you go
Win-win is the only way
Don’t get frustrated with ‘difficult stakeholders’ –just keep trying different approaches until you find
the one that works
Brand your procurement function and stay in
character – are you fairy godmothers or the book
keepers
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Influencing SkillsKey concepts: Definitions
• Power is defined as a persons ability to influence others
• Influence is what managers have when they use power is such a waythat it results in a behavioural response from their stakeholders
• Influence can be defined as a force one person exerts on someone elseto induce a change in their behaviours, opinions, attitudes, goals, needsand values
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Influencing SkillsKey concepts: 7 Types of Power
• Seven types of powerSource Type Influence on Others
Coercive Power Position The ability to impose sanctions or punishment to gain compliance
Reward Power Position The ability to provide rewards or recognition to gain compliance
Legitimate Power Position The right to influence the activities of others based on job title or position
Expert Power Personal Respect gained based on skills, experience or expertise
Referent Personal Positive personal traits or integrity
Information Power Position and Personal Possession of or access to, valuable information
Connection Power Position and Personal Access to others who can provide rewards or sanctions
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Influencing SkillsGoals
• You influence your stakeholder to do what you need them to do, i.e.amend the Scope of Work, agree to a Contract Award or even just take ameeting with you
• Your stakeholder feels:• Involved in the process• Valued and respected• Assured they are not being manipulated• Committed to the task• Confident the task/ change can benefit them
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Influencing SkillsModel One: 5 Steps
Tell the impact
Understand the
challenge
Share a solution
Reminder of benefits
Gain agreement
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Influencing SkillsExercise
Tell the impact
Understand the
challenge
Share a solution
Reminder of benefits
Gain agreement
• Break into groups of three• One buyer, one technical
stakeholder and one observer• Buyer is to follow the 5 Step
Model to influence thetechnical stakeholder to agreea contract award decision
• Observer is to providefeedback
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Exercise ResultsFive Step Model
• The additional factors/ reasons/ tricks that can help you be successful at influencingyour stakeholders that were identified based on practicing the 5 Step Model include:• Questioning the challenge the other person is presenting to make sure you
understand what problem needs to be solved• Asking what the other person wants and being prepared to discuss• Making several suggestions that they can choose from• Being
• Optimistic• Flexible• Persistent• Patient
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Influencing SkillsModel Two: Tactics
1. Rational Persuasion
• Logical arguments and factual evidence
• Expert Power
2. Inspirational Appeal
• Arouse enthusiasm by appealing to the values, ideals and aspirations of your stakeholders
• Referent Power
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Influencing SkillsModel Two: Tactics
3. Consultation
• Need your support so will seek your assistance or modify your proposal to get it
• Reward, Coercive or Legitimate Power
4. Ingratiation
• Get you in a good mood before you ask for something
• Reward Power
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Influencing SkillsModel Two: Tactics
5. Exchange
• Quid Pro Quo
• Reward Power
6. Personal Appeal
• Appeals to your feelings of loyalty
• Referent or Reward Power
7. Coalition
• Get someone else to persuade you to comply
• Use someone else’s support as reason for you to comply
• Coercive Power
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Influencing SkillsExercise
• Break into pairs
• Work through each tactic (Rational Persuasion, Inspirational Appeal,Consultation, Ingratiation, Exchange, Personal Appeal, Coalition) by oneperson trying to use it to influence the other person to agree to a Scopeof Work with a reduction in technical capability to fit the budget
• Agree which is the most effective and discuss why
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Exercise ResultsTactics
• The tactics that were most effective included:• Rational persuasion• Consultation• Personal Appeal
• Some of the additional factors/ reasons/ tricks that can help you be successful atinfluencing your stakeholders that were identified in this activity included:• Use scenarios• Educate your stakeholders about the cycle time procurement needs and about
the golden triangle (Price, Time and Quality)• Be positive• Ensure you have a clear RACI (Responsible, Accountable, Consulted, Informed)• Provide alternate views and ideas
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Influencing SkillsModel Three: Push/ Pull
• Push tactics raise your status but reduce your stakeholders
• Pull tactics reduce your status but increase your stakeholders
Push
Pull
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Influencing SkillsModel Three: Push/ Pull
Push behaviours
• Statements of fact, making speeches
• Statement about objectives
• Demands for agreement on specifics
• Demands for commitment
• Expressions of opinion
Pull behaviours
• Asking about values and principles
• Questions about needs and objectives
• Probing for feelings and perceptions
• Asking for explanations and examples
• Listening and following up
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Conclusion
• Successful Sales Professionals have five traits which Procurement Professionals canuse:• Empathy• Focus• Responsibility• Optimism• Ego-drive
• Influence is what managers have when they use power is such a way that it results in abehavioural response from their stakeholders
• Three models have been suggested to help you influence your stakeholders• 5 Step Model• 7 Tactics• Push/ Pull
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ConclusionObjectives Review
Applying success factors for Sales Professionals
to Procurement Professionals
Understanding key concepts related to
influence
Implementing common influencing models
Practice implementing these success factors,
key concepts and models
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