Monday, February 25, 2008

RFPs? RIP!

OK, let's discuss Requests for Proposals (RFPs). Interesting because, by the very nature of this blog, discuss really means read what I have to say - though you may yell and scream at your computer screen if you are so inclined.

Every one of us has received them - and if you haven't, you will! And most of us know how absolutely time consuming and pointless these can be.

As sales managers we hear a lot of "reasons" from the sales team as to why we should respond to the RFP:

1. It's strategic! (my personal favorite and definitely the catch-all for poor decisions)
2. We can really do what they are asking for!
3. We have a relationship with the client!
4. We can win!
etc. - I am sure you can think of a few

And here is what the salespeople are thinking:
1. OH S*%$ I HAVE TO HIT MY NUMBERS AND THIS MIGHT PUT ME OVER THE TOP!
2. See number 1

A little extreme I know - and I am sure I will hear from a lot of people claiming that they have won RFPs and these have been "strategic", etc., etc. But let's get real here and apply some common sense to the process:

1. An RFP is never written in the dark - the clients always have assistance - either from the vendor community or from consultants specializing in the subject of the RFP. Unless you are one of those vendors or consultants - you are at a distinct disadvantage
2. RFPs only capture one view of requirements - I am sure when you have examined RFPs there are lingering questions that can help you better understand the client and its requirements - but you are prevented from doing so by the RFP Criteria/Rules around client communication during the process.
3. RFPs remove the most critical element from the equation - trust.

So let's just accept that unless we have written the RFP, we will NOT win it. What can we do? We do not want to seem unappreciative of the opportunity but we also need to preserve our resources (people, time and money). Here are some thoughts:

1. Neven respond to an RFP out of the blue (unless you have written it and have the contract signed already - but then you should be advising the client not to even bother!)

2. Always ask to meet with the issuer - even if this means meeting with Mr. or Ms. Procurement - and here is how you position "We would appreciate the opportunity to respond. In fact, on the surface it appears there could be a strong match between what you are looking to accomplish and how we might assist you in doing so. In order to truly determine this, we feel it is important to understand your needs in order to develop a response that meets the needs of the organization. All we are interested in is understanding those needs." You will face some opposition when you try to take this line of reasoning outside of procurement - be persistent as you can not put forward any solution without a real understanding of the underlying business issues as well as the anticipated benefits associated with it - and these are typically not articulated in an RFP. Remember - the RFP issuers responsibility is to their company. What is very interesting is how that responsibility is disregarded by submitting to a flawed buying process!

3. Try to change the game! If you are stonewalled in your ability to drive toward a real solution - back out of the process and communicate your reasons for doing so with the client. They may be interested in hearing why their process is preventing them from getting a solution that actually meets their needs.

Lots here I know - and there are no right or wrong answers. I also know that people will keep responding to RFPs but if I have helped one organization be more effective then I have done my job.

Cheers,

Steve

Saturday, February 16, 2008

Vanilla interviews just don't cut it when assessing talent!

Continuing our discussion on effective sales management, let's examine the front end of the "sales management ecosystem" - recruiting. Actually, we will assume that candidates have been identified and find themselves sitting in front of you. So what do you do?

This all comes down to planning. You first must think about the role, the accountabilities and, most importantly, the critical behaviors that will, if nothing else, facilitate success. Assessing these traits and characteristics can not be achieved through traditional "Sit-down" style interviews. Granted these are important and necessary - for no other reason than determining whether you will be able to stomach repeated interactions with the candidate - or not (if it matters).

Let's think about what a truly effective method could be to understand behaviors? Why don't we consider seeing them in the action. I know what some of you are thinking - "he's about to ask the candidate to sell him a pen". Not quite - but not too far off - just a little more sophisticated and effective. Instead, let's create situations that allow us to observe some real-life behaviors the candidate will face in the field - if an account manager - let's contrive a relationship management scenario and play it out with the candidate. If the candidate is a senior-level candidate - let's see how he/she fares with an executive discussion or meeting.

Let's pair this with the interview - but rather than a dandy discussion where we ask the candidate to tell us about him/herself, let's seek to uncover evidence of behaviors - ask the candidate to provide examples of how he/she achieved specific results. It sounds easy doesn't it. And once you get into the habit and develop the process, it is.

Develop a quantitative scoring system that eliminates subjective analysis and apply it rigorously.

Resist the urge to bypass the process - particularly when under pressure to make hiring decisions.

Constantly review your case studies, metrics and selection criteria.

Have fun!

Cheers,

Steve

Wednesday, February 13, 2008

The New Sales Manager's Survival Guide......sort of

So congratulations you are now a sales manager/director of sales/VP of sales/insert really important sounding title here. You have inherited a sales team (or need to build one - fast). So what do you do and where do you start?

As in sales, sales management is all about performance. In fact, in many instances, the sales manager is under the mircoscope more so than any individual sales person. Take the Miami Dolphins this past NFL season. It was not any of the players that were released from their contracts for non-performance - it was the coach.

How effective you are as a coach is going to be absolutely critical to your success. I am not going to discuss having to deal with those that were peers who are now subordinates in this post (maybe some other time). I will discuss a few key principles you will need to adopt to drive personal performance and help you achieve success. This is by no means a complete list but should give you a start.

First, you must develop a written plan for your induction into your new role (or new company). Call it a 30/60/90 day plan - it doesn't matter. But you should keep a few things in mind:
1. Be time sensitive but also realistic - set specific ojectives with timelines and outcomes
2. Remember the people you will need to meet - your sales team, other managers, support staff and - oh yes - CUSTOMERS. So often neglected as many managers become myopic with the day-to-day management of the team.
3. Research the company: its products/services, processes, competitors, systems, etc.
4. If a larger company - seek out other sales teams considered to be "Best Practice", set out to meet with your peers in these groups - understand what has made them successful, key actions they would take if they were just starting - and just build a relationship - you will need them in the future and they will invariably need you at some point.
UPDATE THIS DOCUMENT - REVIEW IT REGULARLY AND ADJUST IT AS APPROPRIATE

Next, think about your objectives for the team. What are the targets (margin, revenue, new client growth, product introduction)? How will you achieve these with the team?

You will need to evaluate your team. The most effective way to do this is to see them in action. Get out into the field, role play, do whatever it takes to understand the BEHAVIORS of the team members. It is not enough to have one-on-one meetings. One-on-ones should be reserved for planning and review. All the rest should be in the field. This will provide you a lens on performance and an understanding of their areas of strength and development. See the post below for details on field work.

Manage Up - ensure you understand the expectations of those to whom you report! This is frequently either disregarded, forgotten or otherwise overlooked. Set time aside with your manager - early on - to have a discussion on specific objectives, actions and expectations. Confirm that these are the expectations and agree on next steps and follow-up. Check in frequently and set up a method for tracking YOUR performance against these criteria.

Start there - this is a lot to take in. At times you will feel overwhelmed, you will doubt yourself and have moments of frustration.

WELCOME TO MANAGEMENT!

Until next time.

Cheers,

Steve

Sunday, February 10, 2008

Managers - the field is not just a place to kick a ball around!

I have spent the last few posts speaking to some principles salespeople can adopt in their daily interactions with clients.

I would like to spend the next few posts on some sales management fundamentals.

Today it is going to be all about field action.

Sales managers have the best of intentions. Those I work with have either had successful sales careers or have grown through management ranks. Either way, they are interested in the success of the salespeople who report to them. Of course there are always a few self-absorbed bad apples but I have been impressed by most.

What I have constantly been disappointed in is the lack of field coaching most managers engage in. I would like to pose a question: How do you know WHAT your salespeople are doing in the field if you are not observing their behavior in the field? And I have heard all the excuses - I don't have time, I am always travelling, I am attending funnel meetings with management, etc. etc. ENOUGH. You are doing your team, yourself and your company a disservice by not actively observing your people in the field.

Now - if we are to agree that getting into the field is important - and I would be happy to engage in discussion with anyone who thinks otherwise - then let's look at some principles.

1. Book time to get into the field with your people. Put this on them by indicating this as a Key Performance Indicator. Ensure that this time is secured in your calendar - do not cancel these meetings (think of the message this sends)
2. When in client meetings with your salespeople, observe their behavior more so than the client's behavior. DO NOT LEAD THE CALL and resist the urge to jump in unless prompted.
3. Keep notes on both the positive and the negative aspects of their behavior
4. Following the meeting, spend some time discussing the meeting. Take a coaching approach,asking questions that allow the salespeople to gain insight into their behaviors and look to elicit analysis on what might change the next time.
5. Agree on some changes for the next sales call and look for evidence of this on your next joint call.

I know there is a lot more we can cover on field work but let's start with the basics.

Have fun folks.

Cheers,

Steve

Friday, February 8, 2008

Are You Still Talking?

In Third Core's work with sales teams, we have the priveledge of reviewing many different styles and approaches to conducting sales meetings. Through one of our services, we create extremely realistic simulations of sales environments and run salespeople through multiple role-playing scenarios with the opportunity to view Selling in Action.

I had the opportunity to observe a salesperson conducting an executive-level sales call with the CEO of a multi-billion dollar global retailer.

We have spoken on agendas already. I will not repeat myself here needless to say, the salesperson did not articulate an agenda.

What I found most incredible about this interaction was how the opportunity was utterly wasted. The salesperson spent 90% of the meeting pitching how his firm would be a "strategic partner" (I HATE that phrase), how HE would be the client's advocate - as though he has evenearned ANY shred of credibility and then proceeds to launch on a seemingly endless diatribe on the services and products HE BELIEVES the client needs! I was gobsmacked.

Not once did this salesperson attempt to understand the priorities of the CEO, no questions were asked that would drive to a deeper level of understanding on the CEO's issues, desires, wants or even his criteria for evaluating success or failure in a services provider. I was utterly amazed that the salesperson believed the interchange was 50/50.... Amazing how when we are thrust in a situation our perception may be different than reality.

The post-mortum with the CEO (and it literally was) indicated that there was no confidence in the salesperson or his company, that the CEO felt offended that the issues HE wanted to discuss were not even addressed and he felt he was being pitched.

So what can we do to avoid this? When we are calling on senior executives, please know your audience. Do not make assumptions as to their role, what they would be interested in or what their level of involvement would be in decision making and discovery.

Keep the discussion at a business level. An open dialogue about the client's priorities will win the day over 30 minute discertation on "Who we are and why we are great". As I like to tell folks, the CEO is interested in what the CEO is interested in. You had better understand what this is before you position any type of prduct, service or relationship.

Multiple choice question:

Your client is likely to be excited and feel positively about you and your company if:
a. You spend 1 hour describing you products and services in detail also articulating how you think you can work together
b. You spend 45 minutes understanding the client's priorities, painting a vision and then 15 minutes mapping your products and services to this vision with the client
c. You spend all of your time understanding your client's priorities, helping him/her paint a vision, understand the impacts of addressing the priorities and how this would happen.

I think we can write off A - at least for high-value high-impact solutions. B sounds good but remember the level we are working at - solutions will be meaningless without context. C allows us to understand much more about priorities and then allows us to map the right products and services to meet the need (and the benefit).

Bottom line folks - keep quiet as often as you can, allow the client to speak and give thought to how the questions you ask might generate new thoughts and excitement with our client.

As always - enjoy yourselves.

Cheers,

Steve

Thursday, February 7, 2008

Go with your gut

Have you ever been in a meeting, conversation or virtually any type of interaction where your gut is telling you that either;

a. Something just isn't right
b. I am confused
c. I don't understand

First - let's not get hung up on semantics. Gut feel is simply your body's way of telling you what your mind already knows or interprets. It is really a base reaction to stimuli against your collective experience. Now let's move on.

Let's relate this to our sales domain. And managers, this applies equally to you. You are sitting down with the client, having a very meaningful discussion on business issues and you have established some significant results that can be achieved by resolving or addressing these business issues. You eventually get to a budget discussion for the "solution" that will address these issues and it seems extremely small. Or, even better, we talk about the issues and the potential benefits are a fraction of the cost of our potential "solution"! What do we do?

I have seen much variability in how people respond to these types of situations. Here is what I would suggest is an effective way to manage this: GO WITH YOUR GUT!

So, practically, what does this mean? It means that if you are feeling something or if you are seeing something that has you concerned, questioning logic, or otherwise breaking into a sweat - find a way to communicate this to the client. Do it with a level of conviction and also courtesy. Let's use the latter example. Something you may want to say at that point: "Thank you very much for that information Ms. Client. I am a little concerned however. I think we can help you achieve the results we are contemplating but it seems the anticipated benefits may be smaller than the required investment. What do you think we should do?"

A simple formula at work: State the facts, express your concern (tactfully) then ask the client how to proceed.

Put responsibility on the client to determine how to remove this roadblock. For all you know, there may be areas that you did not discuss - ancilliary benefits - that may be equally important or even more so - that could more than justify the solution. OR - these are the benefits and this may be the point to qualify the deal out. Better to know now than go down a path of detailed investigation, proposals and - wait for it - forecasting.

And by the way - this principle of expressing what you feel "in your gut" applies to all facets of your life.

All I can say is to try it in a safe environment. I am sure you will be surprised with the result.

That's all for now.

Cheers,

Steve

Tuesday, February 5, 2008

Agendas Rock

I am constantly amazed in my work observing sales teams in the field, how infrequently and ineffectively a common and simple agenda is used in discussions with clients.

Come on folks, this is Sales 101. And I know what some will say; "We know this client", "We've met with him/her many times", "We have a great relationship", "The should know the agenda", "Insert your favorite excuse here".

Let's think this through briefly. As a client, I would like to know what you are going to discuss. I personally like surprises but most clients do not. Let's not have them guessing as to our intent in our interactions. An agenda provides a point of reference in our discussions - almost like ground rules. And when we get the client to agree to the agenda - that it makes sense and that this covers areas of interested to him/her then we have a purpose and goal to cover the agenda.

An interesting story. I was working with a large communications firm. We had a discussion regarding agendas. I had asked the sales rep to do the following in their next client interaction (and keep in mind that that this was with a client the firm had been working with for generations). "Mr Client, we have a great relationship and I enjoy our discussions. I would like to do something a little different today. I would like to present our agenda for today (present agenda) - how does this sound to you?" - or something to that effect. This sales rep came back after this meeting very excited. He noted that the client commented: "This is new, I am impressed" and "this is the type of professionalism we have come to expect".

There are some key topics that are usually covered in a meeting agenda:
1. Introductions - who are you, what's new in your organization
2. Purpose - why are you there - what are you looking to get out of the meeting/relationship
3. Content - supports the purpose/objectives of the meeting
4. Potential next steps - how do you see it
5. Close it down

Always confirm during each step that these make sense to the client and that this is where the client wants to take the discussion.

Sometimes the simple things make all the difference

Until next time.

Cheers,

Steve

Sunday, February 3, 2008

Welcome Introduction

Hello. In the coming weeks and months, I will be discussing topics of interest to those involved in professional sales and sales management.

The intent will be to provide pragmatic, principles-based commentary that will allow you to achieve results in your career and for your respective organizations.

See you soon.

Cheers,

Steve