business development basics

Business Development Basics –Driving Revenue Generation

Joe HirschBusiness Development Director

Nagle Hartray Danker Kagan McKay Penney Architects Ltd.

March 26, 2008

Agenda:• What do you want to learn?• Marketing vs. Business Development• Business development – why its important• Why is the offer of value?• Client development process• Sales in the A/E/C client acquisition process• Prioritizing BD tasks & supporting activities• Break - discussion & food service• Skill building and transitioning• Client retention process• The End

What do you want to learn?

How do you define marketing?

The majority of marketing theory discussed in business school is designed to be applied to the manufacturing, distribution, and consumption of consumer goods (products and services)

This helps to explain why the A/E/C industry lacks a standardized definition of “marketing”.

Basic definition of – Marketing:all activities involving the promotion and sales of goods between manufacturing and customer delivery (As taught at the Stuart School of Business at the Illinois Institute of Technology)

The five P’s – Product (service), Place (position), Promotion, Price, People

Conceptual lines between marketing, BD, and sales in the A/E/C sector

In many business sectors, business development and sales are considered subsets of marketing.• In the A/E/C sector, sales is often considered a

subset of business development• Marketing and BD in the A/E/C sector are often

viewed as co-dependent but separate business disciplines

Have I confused you yet?

Business development –why its important

• It (along with marketing) directly supports an organization’s strategic plan by:– Developing and retaining clients– Creating a hedge against revenue-stream

peaks and valleys• It drives and supports the firm’s technical

core competency• It is critical to an organization’s long-term

growth and stability

Why is the offer of value?

Before BD activities are executed, an organization must have a well-defined unique value proposition for its target audience(s).

• Prospects base buying decisions on perceived benefits and risk

• The return on an organization’s investment in client acquisition is related to:– How effectively they target their

prospective audience– How persuasively they differentiate the

benefit of their offer.

An organization’s senior management and marketing department need to collaborate in developing a unique value proposition that integrates well with its overall brand voice.

Where does the client development process begin?

Overview of the client development process

Utilize a CRM system

(e.g.: Deltek, ACT!, Goldmine,

Cosential)

The process

• Step 1 - Research market segments– What are the traits of a good client for your

firm?– Identify suspects that appear to exhibit

desirable traits

The process

• Step 2 – Contact target suspects– Phone calls– Referrals– Networking– Direct mail

The process

• Step 3 – Qualify the suspect– Cast away or prospect?

The process

• Step 4 – Build relationship with prospects– Build trust– Offer assistance– Maintain contact

Where should meetings occur?

The process

• Step 5 – Identify needs– Propose offer– Sell & win project

The process

• Step 6 – Develop CARE program for client – Obtain referral and/or another project

• Institutions/Owners – formal interview• Developers – less formal process involving

negotiation • Architects/Engineers – reciprocate leads,

cost (transactional), references

Sales activity in the A/E/C client acquisition process

Prioritizing BD tasks1. Follow-up on pending proposals (very

important / level of effort easy)2. Prepare for interviews and/or meetings3. Develop proposals (collaborative process with

technical staff)4. Meet with prospects and clients5. Schedule meetings (level of effort intense /

time consuming)6. Participate in networking opportunities7. Work on planning and strategy

Break – discussion & refreshments

Skill building and transitioning• Be careful of what you ask for and be

yourself!– Audit meetings– BD research for target suspects– Participate in networking events– Practice and polish presentation

and persuasion skills– Work with team in planning BD

and sales activities– Entrench yourself with

information on consultative selling, good sources:

• Jeffrey Gitomer www.gitomer.com

• SMPS www.smps.org• ZweigWhite

www.zweigwhite.com

Client retention process

• CARE (Client Attraction Retention & Expansion)

• Yields high ROI• Plan on yearly basis• Need to know contacts’ personal interests• Hospitality & ongoing contacts

The End

• The end of me for now, and onto the continuation of your success!