Sales Kaizen Event - Sales · PDF fileHow a Sales Kaizen Event Can ... •learn better...

How a Sales Kaizen Event CanPut Rocket Power and Guidance Systems

Into Your Sales Process

Michael WebbNovember 2008

Sales and Marketing Kaizen Teleconference Series

1/28/2009 2008 © Copyright Sales Performance Consultants, Inc. 2

This Tele-seminar is intended for

Leaders in public or private companies who• work directly with sales and marketing

professionals• understand what process improvement is

(lean, kaizen, 6σ, TQM, etc.)• want apply process improvement to their sales and

marketingThis tele-seminar will not be as helpful to individuals

seeking to• learn better marketing and selling skills and tactics• promote specific products and services (training,

software, assessment tools, etc.)


Objectives of this Tele-seminar

Explain• Why most sales and marketing organizations struggle to

improve results • Why most initiatives in sales and marketing fail • What prevents your team from solving those problems right

nowProvide• Simple underlying principles that solve most sales and

marketing problems • A repeatable, step by step process for leading your team

through a Sales KaizenIllustrate• Some case examples from several industries


Imperative: Generate More Revenue With Fewer Resources

People are unhappy with sales and marketing resultsCustomers not motivated, not loyalEverybody feels overworked, under appreciatedDiagnosing problems is frustratingUnreliable forecasts create serious problems


Causes of Selling Problems: Not Always on Front Lines

Servicing

Selling

Marketing

BusinessBusiness

Corporate

Salesperson level

Sales management level

Business level

Corporate level


Treat each problem as unique!!!

Invoke large scale solutions!

There MUST be another way.

The “Usual Fixes”

Fix the salesperson

Fix the Product!


Not All Problems are Equal

To avoid “dandelion syndrome”:• Identify locations of problems

(salesperson, manager, business, corporate)• Distinguish systemic vs discrete problems• Understand which corrective actions will cause

rapid, effective, and permanent results


Use Process Improvement

A discipline for improving the performance of a business through the scientific method.

• Define your terms based on evidence– Specify observable characteristics

/ attributes (data) – Define referents for the value, the

process, and the results (or problems)

• Gather, validate, and analyze data

• Use data to develop and test hypothesis for causes and effect

• Implement changes based on a proven hypothesis

• Validate the results

Scientific Method To the Rescue!


Manufacturing Kaizen Process

Plan EventCreate Team Package

Plan EventCreate Team Package

• Scope • Metrics• Resources• Information• Logistics• Event Packet

ConductEvent

ConductEvent

• Intro, orientation• Present event goals• Review team package• Create process summary• Value stream mappingü Map current processü ID problems &

solutionsü Design improvements

• Develop plans: ü Test, action,

& follow up• Summarize and presentü Event results

Decide onObjectiveDecide onObjective

Recruit TeamMembers

Recruit TeamMembers

Choose EventTeam LeaderChoose EventTeam Leader

EventFollow Up

EventFollow Up

ImplementNew Process

Changes

ImplementNew Process

Changes

EvaluateResults

EvaluateResults

This diagram was developed from materials found in “Implementing World Class Manufacturing, Second Edition”by Larry Rubrich & Mattie Watson © 2004 WCM Associates


Major Disconnect


Prerequisite for Process Successin Sales and Marketing

• Approach fits the environment

• Clearly distinguishes value add from waste

• Scalable articulation: general çè specific

• Can be measured objectively

• Provides a foundation for continuous improvement


Respecting the Environment

Sales andManufacturing Marketing

Culture process functional

Transformation physically visible invisible

View of how to accomplish shared unique

View of standardization an asset an obstacle

Documentation, granularity necessary irrelevant

Production stages (interim) understood variable / unknown

Waste / value objective subjective

What customer will pay for understood unknown / myth

What is measured stages, result, waste end result only

Best practices proven opinion


The Problem with “The Sales Process”

Sellers Are From MarsThe “Organizational Sales Process” is

aimed at bringing money to our company (not at solving customer’s problems).

Customers Are From VenusProspects focus on what they want. The “customer’s journey” describes their efforts to solve their problems.

Motives of buyers and sellers may repel each other.

Implement

Solution

Pilot /

Justify

Evaluate

Alternatives

Research

Problem

Realize a

Problem

Validate &

Add On

GenerateProposal

ConductDemo

Make SalesPresentation

Make Sales Call

Prospect forBusiness

TakeOrder

Wasted Time and Money• Products, services no one wants• Ads, collateral no one reads• Tradeshows, promotions, and

“leads” that produce nothing• Quote, proposal labor wasted• “Prospects/customers” who don’t

recognize your value


Value Creation in Sales and Marketing

Customer’s Journey(generic)

Customer’s Journey(generic)

Install, & In-service?Install, &

In-service?

IdentifyFunding?Identify

Funding?

Evaluate& Make

Selection?

Evaluate& Make

Selection?

Realize Problem /

Need?

Realize Problem /

Need?

Define& ClarifyNeeds?


AdministerP.O. &

Requisition?

AdministerP.O. &

Requisition?

Value is createdwhen the prospect

takes an action! (actions can be

measured)

What value does your sales process create?

• For your company?• For the customer?

What value does your sales process create?

• For your company?• For the customer?

What happens when the prospect doesn’t realize they have a need, and you tell them about your product?

Waste!

What happens when the prospect doesn’t realize they have a need, and you tell them about your product?

Waste!


Find the Right Level of Standardization

Happy Medium Provides:

Structure for learningAND

Freedom for innovation and flexible responses

Not Enough Detail = Useless

Too much detail = Turn Off


Customer’sJourney

Kee

ping

Win

ning

Find

ing

Install, & In-service?Install, &

In-service?

IdentifyFunding?Identify

Funding?

Evaluate& Make

Selection?

Evaluate& Make

Selection?

Realize Problem /

Need?

Realize Problem /

Need?



AdministerP.O. &

Requisition?

AdministerP.O. &

Requisition?

Sales Production Process Framework

Become aware, prioritize pain, build trust

Become aware, prioritize pain, build trust

Follow up, deliver on commitments

Follow up, deliver on commitments

Clarify potential impact, justify investment

Clarify potential impact, justify investment

Define need, build consensus, build trust

Define need, build consensus, build trust

Maximize results, getcredit for it, & get referrals

Maximize results, getcredit for it, & get referrals

Compare offers, choose easily, reduce risk

Compare offers, choose easily, reduce risk

How do you help them …?

LeadGeneration

Relationship Nurturing

OpportunityQualification

SellingBehaviors

FollowUp

ServiceSupport


Hard Data From the Sales Funnel

MCC # created opps

UCL=176.96

LCL=51.64

CEN=114.3

0

20

40

60

80

100

120

140

160

180

200

3 4 5 6 7 8 9 10 11 12

MCC # closed opps

UCL=112.984

LCL=32.652

CEN=72.818

0

20

40

60

80

100

120

2 3 4 5 6 7 8 9 10 11 12


Example of a Properly Designed Sales Production System

Actions We TakeMeasuresMgt Decisions Customer Actions

Syst

em’s

Per

spec

tive


Sales Kaizen Process

Decide onObjectiveDecide onObjective

Plan EventCreate Team

Package

Plan EventCreate Team

Package

• Scope • Metrics• Resources• Information• Logistics• Event Packet

Recruit TeamMembers

Recruit TeamMembers

Choose EventTeam LeaderChoose EventTeam Leader

ConductEvent

ConductEvent

• Intro, Orientation• Present Event Goals• Review Team Package• Create Process SummarySales Process Design• Map Customer Journey• Define and Align FWK Process• ID Problems & Solutions• Develop Plans: ü test, action, & follow up

• Summarize and presentü event results

EventFollow Up

EventFollow Up

Change YourMethods

Change YourMethods

EvaluateResults

EvaluateResults

Customer Value

Stream Mapping®


Sales Kaizen Event: A Foundation for Improvement

Manufacturing Tools• 5S• Value Stream Mapping• Setup Reduction • Kanban• Total Productive Maintenance• Cellular Manufacturing• JIT / Lean •

Sales and Marketing Tools• Sales Process Design

(Customer Value Stream Mapping®)

• Customer value mapping• Qualification criteria• Direct response Internet based

Lead Generation • Nurturing •


Why Salespeople Love This Approach

Drives attention to real customer problems• What blocks their Customer’s Journey’s progress?• What tactics/talent (marketing, selling, servicing) are best at

this point?• Salesperson as a “sensor” (new applications, opportunities)Provides feedback • Their thumbprint on business• Objective measures of performanceSolves real selling problems• Systematically makes selling easier• More time for preparation, professional selling

(not whacking dandelions & moles every day)


Kaizen Success Factors

1) What are the best places (which sales problems and processes) to apply a kaizen for sales improvement? – Macro: when major elements of the customer’s journey are not served well

(poor lead gen, lack of nurturing, poor qualification, account management, etc.)– Micro: when there is wide variation among individual behaviors within a portion

of the process, this approach provides a vehicle for them to articulate and standardize detailed work elements

2) How best to measure and PROVE the results and impacts of a sales kaizen – Priorities of this work are 1) identifying customer value, 2) establishing a

measurement framework (most companies have not done either with respect to the sales process). Without the framework you can’t measure or prove anything.

– Proving the results of a sales kaizen event is irrelevant in any case. The issue is to improve the results of the business: make the sales funnel flow faster, increase margin, eliminate waste, etc.

3) The key barriers to success, and how to overcome them – Senior executives who “get it.” They must recognize the value of transitioning

the company’s culture to data-oriented decision making (short AND long term). – Having the right people in the room (marketing, sales, service, senior execs). – Ensuring the people in the room have the need to make a change. – Ensuring small initial projects are successful, enabling other people to be

receptive.


Impact on Sales Training and Software

Designing the sales process correctly:Creates demand for training• The right kind of training• Training is more valued

– by salespeople as well as their company• Results are much more measurable Creates demand for software• The applications people will use• Software is more valued

– by salespeople as well as their company• Is the vehicle for measuring the production flow


Cases and Testimonials

HVAC Manufacturer

“The sales process you helped us invent here has made quite a difference. We redefined the Territory Managers job, and who our customers were, and what the salesman was supposed to do with them. The top 20% of our dealers are up 60% in sales in a market that is down 12% this year (residential new construction). Not bad!”

Bruce Ritchey, President/CEOWaterFurnace Renewable Energy, Inc.

Scientific Instrument Manufacturer

Not only do we appreciate the professionalism and flexibility you displayed, but the ideas have excited our teams and helped us improve our product development initiatives on several fronts. The course ideas and templates are now embedded in our Product development process and mandated for all our Madison-based product teams to follow.

Dr. Brian DaviesDirector – Microanalyzis Product Team, Thermo Fisher Scientific



Operating Room Devices Manufacturer

Devised common organizational sales process, upgraded the SalesLogix CRM, achieved 93% sales forecast accuracy, and grew at 20% per year.

“You … link[ed] process techniques to the wily world of sales and marketing. …Our team especially appreciated that you …customized [your] materials and tools [to] directly help salespeople sell and marketing people market. Further, you went out of your way to deliver more than you promised. … I would recommend Sales Performance Consultants, Inc., without hesitation to any senior executive who needs to improve their organization’s sales and marketing processes.”

Gregg SchuppV.P. Operations

Timesheet Software Developer

Improved salespeople’s consistency and fidelity to the process by enabling them to design it. Improved the capacity of the new account sales process from measurably, and increased the conversion rate of sales opportunities with no improvement on quality or quantity of lead flow.



Business Development Membership Referral Platform

You taught us a powerful “frame of reference” for solving sales and marketing problems. The result was: :

• A sales process that enables us to ferret out “B” players quickly, ramp up “A” players faster, and support them in a way that improves our results substantially

• A management system that generates hard data for improving the business

Adopting SPC’s approach has permanently changed our business for the better on both our top and bottom lines.

Troy Peple, President


Action Steps

q Please provide your comments to this presentation in the comments section at the bottom of this web page. Please be as specific aspossible:

q What did you like about the presentation?

q What needs to be improved?

q What would you like to learn more about?

q To receive a self-assessment of your organization’s need / readiness for sales kaizen, send an email to [email protected]

orq To Inquire about having your organization’s need / readiness

professionally assessed

Send an email request to [email protected] To inquire about getting assistance improving your company’s sales

process, visit q http://www.salesperformance.com/professional-services/inquiries

mailto:[email protected]

mailto:[email protected]

http://www.salesperformance.com/professional-services/inquiries

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