jason jordan, vice president & partner vantage point...
TRANSCRIPT
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Jason Jordan, Vice President & Partner Vantage Point Performance
Rethinking Sales Pipeline Management
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Fun with the Ancient Greeks
Slide 3
Everything revolves around the Earth!
Socrates
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Fun with the Ancient Greeks
Slide 4
Everything is made of air!
Anaximenes
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Fun with the Ancient Greeks
Slide 5
There are atoms! (kind of)
Democritus
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When Common Sense Is Your Guide…
Slide 6
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Sales Management: The Neglected Science
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Sales Management: Confined to Common Sense
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Now the Sales Pipeline
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What is a Pipeline?
Slide 10
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How Is It Used?
Su M Tu W Th F Sa
Common Management ‘Rhythm’
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How Is It Used?
Su M Tu W Th F Sa
Common Management ‘Rhythm’
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How Is It Used?
Su M Tu W Th F Sa
Common Management ‘Rhythm’
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How Is It Used?
Walk me through
your opportunities
Common Meeting Agenda
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Common Meeting Agenda…
Walk me through
your opportunities
okay
Common Meeting Agenda
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It Would Appear that …
Sales Pipeline = Important Stuff
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Just One Problem…
Common Sense Is at Work
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Common Sense and the Pipeline
(4 Easy Choices)
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Choice #1
Slide 19
BIG PIPELINE -- or -- small
pipeline
Which is better?
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Common Sense Says…
Slide 20
BIG PIPELINE small pipeline
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Real-World Counterpoint
Slide 21
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Shape Determines How Big It Should Be in Sum
$10 million $2 million
$10 million $2 million
Close Rate = 20%
$35 million
$20 million
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Common Sense Is…
Slide 23
BIG
PIPELINE
small pipeline
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Choice #2
-- or -- HELP
CLOSE
THE DEAL
HELP
QUALIFY THE DEAL
Where can a manager have the biggest impact on rep performance?
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Common Sense Says…
HELP
CLOSE
THE DEAL
HELP
QUALIFY THE DEAL
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A Typical Sales Pipeline
Slide 26
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The Perfect Sales Pipeline
Slide 27
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Bad Deals = Wasted Effort
Slide 28
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The Hard Truth
Coaching has Low Impact • Fate Often Already
Decided • Driven by Fun and
Forecasting
Coaching has High Impact • Influence needs and
Criteria • Dislodges Bad Deals
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Recall Our Rock Star …
Slide 30
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The Superstar’s Secret Sauce
Slide 31
Su M Tu W Th F Sa
Late Stage Deals
Late Stage Deals
New Opportunities
New Opportunities
A Balanced Pipeline Management Approach
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Less Junk = Less Funk
Slide 32
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Less Junk = Less Funk
Slide 33
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The Impact of Early-Stage Intervention
Win Rates Training Conducted
September 2010
25%
37%
54%
37%
49%
71%
Q1 2010 Q1 2011 Q1 2012
$ of Deals
# of Deals
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Common Sense Is …
HELP
CLOSE
THE DEAL
HELP
QUALIFY THE DEAL
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Choice #3
Slide 36
-- or -- THE REP THE DATA
What should be the primary focus of pipeline meetings?
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Senior Leadership Says…
Slide 37
THE REP THE DATA
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Observed: Constant ‘Inspection’ of the Pipeline
INSPECTION
•Focused on the data
• Scrubbing
• Extracting
•Short-term (or backward) focused
•Encourages sales rep compliance
•Required by manager, but low-value for rep
Slide 38
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Needed: Coach Reps through the Opportunities
COACHING
• Focused on the rep
• Builds skills throughout deal pursuit
• ‘On-the-Job’ Coaching
• Drives better near-term execution
• And has long-term impact
• Very time-intensive, but high-value for rep and manager
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Eye Opening Survey …
Hours per
Month Sales Manager
<3
7%
3-5
55%
>5
38%
Perceived Volume of Coaching
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Hours per
Month Sales Manager
<3
7%
3-5
55%
>5
38%
Sales Rep Gap
56%
+ 49%
32%
- 23%
12%
- 26%
Eye Opening Survey …
Perceived Volume of Coaching
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Senior Leadership can be (can be, sometimes, perhaps, maybe a wee little bit)
Slide 42
COACH
THE REP
INSPECT THE DATA
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Choice #4
Slide 43
-- or -- WHAT THE
REP IS
DOING
HOW THE
REP
IS
PERFORMIN
G
What is more important to monitor?
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Common Sense Says
Slide 44
WHAT THE
REP IS
DOING
HOW THE
REP
IS
PERFORMIN
G
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A Little Research... 306 Sales Metrics
Revenue
Customer Satisfaction
Market Share
Ramp-Up Time
IT Investment
Training Type
Coaching
Account Plan Completion
Tool Usage
Segment of Customer
Call Volume
Call Type
Up/Cross-Selling
Number of Accounts Time Allocation
Quota Achievement
Share-of-Wallet
Process Usage
Training Investment
Skill Level Territory Coverage
New/Existing Customers Call Outcomes
Customer Retention
Deal Size
Prospect Type
New/Existing Product
Pipeline Size
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What Can You Really Manage?
Salesperson and manager activities that we can proactively direct and
manage
Objectives that can be influenced, but require some type of ‘consent’
The outcomes of multiple objectives and cannot be
“managed”
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Why this is a Breakthrough... Cause and Effect
New Customers
Sales Activities - Individual decisions that are highly manageable
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Why this is a Breakthrough... Cause and Effect
New Customers
Sales Activities - Individual decisions that are highly manageable
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A Predictable, Manageable Chain of Events
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Sales Management’s Critical Task
Link the Objectives to
relevant Activities, then
measure/manage the
Activities relentlessly
Select and quantify the
BEST Objectives to
obtain those Results
Identify the Results
you want to achieve
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We Live in an Outcome-Focused World
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Common Sense Is…
Slide 52
ATTEND TO
WHAT THE
REP
IS DOING
ATTEND TO
HOW THE
REP
IS
PERFORMIN
G
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In Sum…
1. Smaller Can Be Better
2. Focus on the Front
3. It’s about Improving the Rep
4. You Can Only Manage Activities
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Parting Thoughts…
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Vantage Point: The Science of Sales Management
Focus On
Sales Management
Thought Leadership
through Research
McGraw-Hill 2012
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Strategy
Process
Skills
Tools
Metrics
Sales Methodology
Neutral
The First
Sales Management
Methodology
SPIN® Selling
Miller Heiman Target Account Selling®
Solution Selling®
Strategic Selling®
Home Grown
Challenger®
Vantage Point: The Science of Sales Management
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The Company We Keep...
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Go Be Extraordinary!
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Thank You
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