high-performance organizations for a new world of sales

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VALUE CREATION IN HIGH-PERFORMANCE ORGANIZATIONS Benny Corvers 19 March 2014

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The old way of selling is dead! We have known it for some time, but the world’s economy has shown us once and forever that the old days are over – definitively. Sales cycles have become longer, conversion rates are falling, forecasts are becoming unreliable and margins are shrinking. The traditional sales boost plan involves incentives, layoffs, training and technology but overlooks the simple fact that most organizations are a dysfunctional bunch of isolated departments that make it hard for people to perform, let alone work with clients. In the New World of Sales, organizations are client-focused by design and apply smart training and technology to support the structural choices they have made. The New World of Sales takes the concept of a client-focused organization as a starting point for a discussion about ways to overcome sales bottlenecks and to align people, processes and tools. If you are tired of the old recipes and are keen to integrate more sustainable methods for a new world of sales, you are more than welcome to join us and start a new journey.

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Page 1: High-Performance Organizations for a New World of Sales

VALUE CREATION IN HIGH-PERFORMANCE ORGANIZATIONS

Benny Corvers19 March 2014

Page 2: High-Performance Organizations for a New World of Sales
Page 3: High-Performance Organizations for a New World of Sales

3

INC

EPTI

ON

THE ORGANIZATIONAL LIFE CYCLE

TIME

SALE

S V

OLU

ME

GR

OW

TH

MAT

UR

ITY

DEC

LIN

E

* Source: Smith et al. (1985)

Page 4: High-Performance Organizations for a New World of Sales

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CLIENT Market, Sell, Design, Produce & Deliver

IN THE BEGINNING, THERE WAS A START-UP

Page 5: High-Performance Organizations for a New World of Sales

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CLIENT Market, Sell, Design, Produce & Deliver

IT ATTRACTED MANY CLIENTS

Page 6: High-Performance Organizations for a New World of Sales

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CLIENT

LOADS OF CLIENTS, ACTUALLY …

Market, Sell, Design, Produce & Deliver

Page 7: High-Performance Organizations for a New World of Sales

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TIME FOR OUR FIRST NEW HIRE!

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CLIENT

SO ADMIN SUPPORT SHOULD DO THE TRICK FOR NOW

Market, Sell, Design, Produce & Deliver

Admin

Page 9: High-Performance Organizations for a New World of Sales

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CLIENT

THEN WE DECIDED TO SPLIT SALES & OPERATIONS

Sales & Marketing

Admin

Design, Production & Transport

Page 10: High-Performance Organizations for a New World of Sales

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CLIENT

BUT THOSE DAMN CLIENTS KEPT COMING …

Sales & Marketing

Admin

Design, Production & Transport

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TIME FOR OUR SECOND HIRE!

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CLIENT

SO WE ADDED OUR FIRST MANAGEMENT LAYER

Sales & Marketing

Admin

Design, Production & Transport

Sales Management

Page 13: High-Performance Organizations for a New World of Sales

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CLIENT

THEN WE SPLIT UP OPERATIONS

Sales & Marketing

Admin

Design

Sales Management

Production & Transport

Page 14: High-Performance Organizations for a New World of Sales

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CLIENT

AND WE ISOLATED MARKETING FROM SALES

Sales

Admin

Design

Sales Management

MarketingProduction &

Transport

Page 15: High-Performance Organizations for a New World of Sales

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AND WHY NOT CREATE A SPECIALIZED PRESALES UNIT?

Sales

Admin

Design

Sales Management

Production & Transport

Marketing Presales

Page 16: High-Performance Organizations for a New World of Sales

16

NOW WE NEED SOMEONE TO TACKLE THE COMPLEXITY

Sales

Admin

Design

Sales Management

Production & Transport

Marketing Presales

Operations Manager

Page 17: High-Performance Organizations for a New World of Sales

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WHO STARTED BY CREATING TWO MORE UNITS

Sales

Admin

Sales Management

Design TransportMarketing Presales Production

Operations Manager

Page 18: High-Performance Organizations for a New World of Sales

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AND ALSO THE SUPPORT DEPARTMENT KEPT GROWING

Sales

Admin

Sales Management

Design TransportMarketing Presales Production

Operations Manager

Invoicing

Page 19: High-Performance Organizations for a New World of Sales

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EVEN THE OPERATIONS NOW NEED SUPPORT STAFF

Sales

Admin

Sales Management

Design TransportMarketing Presales Production

Operations Manager

Invoicing Quality Warehouse

Page 20: High-Performance Organizations for a New World of Sales

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IN THE END, IT WAS CLEAR WE LACKED LEADERSHIP

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SO WE ADDED SOME BIG HONCHOS ON TOP

Admin

Design

Sales Director

TransportMarketing Presales

Supervisor

Production

Invoicing Quality Warehouse

CTO

COOCEO

Sales

Page 22: High-Performance Organizations for a New World of Sales

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WE ARE NOW LOSING SIGHT OF OUR CLIENT

Page 23: High-Performance Organizations for a New World of Sales

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OUR ORGANIZATION HAS BECOME TERRIBLY COMPLEX

Page 24: High-Performance Organizations for a New World of Sales

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AND WE ARE ALL LOCKED UP IN OUR FUNCTIONAL SILOS

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THE END RESULT? WE ARE LOST …

Page 26: High-Performance Organizations for a New World of Sales

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SO WHAT HAPPENS IF SALES ARE DOWN?

TEN ‘PROVEN’ RECIPES

#1 Fire sales reps

#2 Replace sales management

#3 Increase marketing spend

#4 Eliminate marketing

#5 ‘Align’ sales & marketing

#6 Install a new, expensive CRM tool

#7 Get everyone an iPad

#8 Kick-in some more incentives

#9 Roll-out new sales training

#10 Start from #1

Page 27: High-Performance Organizations for a New World of Sales

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CLIENT

SO HOW CAN WE GET BACK TO THE EARLY DAYS?

Market, Sell, Design, Produce & Deliver

Clients take center stageA simple and transparent organizationEfficiency and low overhead costAgility to change course

Page 28: High-Performance Organizations for a New World of Sales

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LET’S LOOK BEYOND THE SYMPTOMS

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WE NEED TO INTEGRATE MULTIPLE VIEWS

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Map #1 Map #2

Map #3Map #3

LIKE PLANNING A FAMILY TRIP

Define the Territory

Which country?

Zoom in

Vision, Mission & Strategy

Where are we going?

Enter GPS Coordinates

Design Specs

Take personal wishes and needs

of each family member into

account

Plan according to budget

Consider the destination from multiple angles

Structure Systems

CulturePeople

Page 31: High-Performance Organizations for a New World of Sales

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FIGHTING THE FANATIC FRACTIONALIZATION OF FUNCTIONS

FUNCTIONAL STRUCTURE

Function 1 F2 Fn…

FLOWBASEDSTRUCTURE

Client Order 1

O2

On

Page 32: High-Performance Organizations for a New World of Sales

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WITH SELF-ORGANISING MULTI-DISCIPLINARY TEAMS

CLIENT

PROSPECTING

ACCOUNT MANAGEMENT

BUSINESS ADVISORY

SKILLS

PRESALES EXPERTISE

PRICINGKNOWLEDGE

TECHNICAL WRITING

SKILLS

OPERATIONS EXPERTISE

HR EXPERTISE

RELATIONSHIPS

Shared objectivesShared knowledge

Mutual respect

COMMUNICATION

FrequentTimely

AccurateProblem-Solving

Page 33: High-Performance Organizations for a New World of Sales

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IN AUTONOMOUS CLIENT-FOCUSED MINI-COMPANIES

NORTH

SOUTH

PUBLIC

LARGE ACCOUNT MANAGER

MARKETING SPECIALIST

BUSINESS CONSULTANT

PRESALES CONSULTANT

PRODUCT MANAGER

HR SPECIALIST

ACCOUNT MANAGERS

MARKETING SPECIALIST

BUSINESS CONSULTANT

TECHNICAL WRITER

QUALITY MANAGER

FINANCE SPECIALIST

LARGE ACCOUNT MANAGER

ACCOUNT MANAGERS

BUSINESS CONSULTANT

PRESALES CONSULTANT

LEGAL OFFICERS

BUDGET & CONTROL

SPECIALIST

Page 34: High-Performance Organizations for a New World of Sales

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WITH MORE ENGAGEMENT AND MOTIVATION

JOB CONTROL

JOB DEMANDS

LOW-STRAINJOBS

ACTIVE JOBS

HIGH-STRAINJOBS

PASSIVE JOBS

MOTIVATION & LEARNING

STRESS

* Source: Karasek, 1979

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Client-Centric Organization

THE END RESULT

Ownership Motivation

Agility

ReducedComplexity

BetterCoordination

CLIENT

Page 36: High-Performance Organizations for a New World of Sales

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MORE ABOUT WORKPLACE INNOVATION

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LET’S NOW HEAR THE STORY OF QUINTESSENCE …