Improving Pre-Sales Quality and Value-Add to Generate Compelling Revenue Phil Janus, CEO, salesengineering

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2. 2 Agenda Empowering Pre-Sales to Drive Business Why Pre-Sales? Pre-Sales Process Maturity Over Time The Potential Business Impact How to Empower Pre-Sales Activities Case Studies Examples Exercises 4 Takeaway tools Giveaways

3. 3 Based on a True Story� It Was Time to Meet the Royal Decision Committee

4. 4 Based on a True Story� The Sales Rep and His Trusted Page Arrived at the Castle

5. 5 Based on a True Story� The Meeting Was Called to Order

6. 6 Based on a True Story� The Sales Rep Gave His Pitch

7. 7 Based on a True Story� At the End of the Meeting, The Committee Asked the Sales Rep to Leave�

8. 8 Based on a True Story� �And Asked the Trusted Page to Stay (true story)

9. 9 Based on a True Story� Having Gained the Trust of the Committee, the Page Proposed A Very High Value Solution with Clever Competitive Advantage

10. 10 Based on a True Story� The Trial Was a Huge Success

11. 11 Based on a True Story� A Success that the Sales Rep Shared with His Trusted Page

12. 12 Lessons ��And Asked the Trusted Page to Stay�

13. 13 Case: Discovery: Web Ordering System

14. 14 Customers Prefer Techies!

15. 15 Yet� Sales Performance Intl (Solution Selling) Customer Centric Selling Target Account Selling Holden Sandler Miller Heiman Richardson Huthwaite (Spin Selling) Franklin Covey Corporate Visions Dale Carnegie ? ? ? This case study and its results are real. Admittedly, our industry is not accustomed to sales performance improvements like these. Keep in mind, SCs generally do not routinely operationalize a formal full cycle SC process. The initial shot in the arm resulting from a systematic process has compelling benefit. Caveat: This SC Manager has noted that though not all the improvement can be exclusively attributed to the SC Skills Improvement Program. However, there were no other notable changes in their SC process or sales methodology during the 6 month period. As noted, success cannot be attributed to the alignment of the SC process with their sales methodology since very little alignment occurred. Rather, success was achieved through the routine enforcement of the Solution Sales Process. Expectations were carefully set and managed with SCs, sales reps, and sales management. This customer has requested anonymity. This case study and its results are real. Admittedly, our industry is not accustomed to sales performance improvements like these. Keep in mind, SCs generally do not routinely operationalize a formal full cycle SC process. The initial shot in the arm resulting from a systematic process has compelling benefit. Caveat: This SC Manager has noted that though not all the improvement can be exclusively attributed to the SC Skills Improvement Program. However, there were no other notable changes in their SC process or sales methodology during the 6 month period. As noted, success cannot be attributed to the alignment of the SC process with their sales methodology since very little alignment occurred. Rather, success was achieved through the routine enforcement of the Solution Sales Process. Expectations were carefully set and managed with SCs, sales reps, and sales management. This customer has requested anonymity.

16. 16 The Void Sales Process Enablers for Pre-Sales This case study and its results are real. Admittedly, our industry is not accustomed to sales performance improvements like these. Keep in mind, SCs generally do not routinely operationalize a formal full cycle SC process. The initial shot in the arm resulting from a systematic process has compelling benefit. Caveat: This SC Manager has noted that though not all the improvement can be exclusively attributed to the SC Skills Improvement Program. However, there were no other notable changes in their SC process or sales methodology during the 6 month period. As noted, success cannot be attributed to the alignment of the SC process with their sales methodology since very little alignment occurred. Rather, success was achieved through the routine enforcement of the Solution Sales Process. Expectations were carefully set and managed with SCs, sales reps, and sales management. This customer has requested anonymity. This case study and its results are real. Admittedly, our industry is not accustomed to sales performance improvements like these. Keep in mind, SCs generally do not routinely operationalize a formal full cycle SC process. The initial shot in the arm resulting from a systematic process has compelling benefit. Caveat: This SC Manager has noted that though not all the improvement can be exclusively attributed to the SC Skills Improvement Program. However, there were no other notable changes in their SC process or sales methodology during the 6 month period. As noted, success cannot be attributed to the alignment of the SC process with their sales methodology since very little alignment occurred. Rather, success was achieved through the routine enforcement of the Solution Sales Process. Expectations were carefully set and managed with SCs, sales reps, and sales management. This customer has requested anonymity.

17. 17 The Forgotten Half of the Sales Force TM Consequences Well paid demo daemons Under orders from sales reps Weak selling mentality Executives consider pre-sales as an expense

18. 18 How Can Pre-Sales Drive Business? 1) Identify pre-sales metrics ? Impact revenue + margins Technical funnel quality Technical decision time Solution list price Technical win rate 2) Perform activities that impact key metrics 3) Measure activity Quality. Why? Why is �# of Demos� a lousy metric?

19. 19 Activity: Puzzled?

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21. 21 Pre-Sales Quality Improvement #1 Reverse Engineering Technical Closure Produces a Least Cost Project Plan Accelerating Technical Decision Time

22. 22 Improving Pre-Sales Quality Incremental Bits of Process and Structure Project mgmt and Engineering Structured Analysis Checklist Model: Visualize complexity Reverse Engineer Test Ideas Documentation Collaboration, Re-use Divide-and-Conquer Measurement Review Closed-loop Feedback This case study and its results are real. Admittedly, our industry is not accustomed to sales performance improvements like these. Keep in mind, SCs generally do not routinely operationalize a formal full cycle SC process. The initial shot in the arm resulting from a systematic process has compelling benefit. Caveat: This SC Manager has noted that though not all the improvement can be exclusively attributed to the SC Skills Improvement Program. However, there were no other notable changes in their SC process or sales methodology during the 6 month period. As noted, success cannot be attributed to the alignment of the SC process with their sales methodology since very little alignment occurred. Rather, success was achieved through the routine enforcement of the Solution Sales Process. Expectations were carefully set and managed with SCs, sales reps, and sales management. This customer has requested anonymity. This case study and its results are real. Admittedly, our industry is not accustomed to sales performance improvements like these. Keep in mind, SCs generally do not routinely operationalize a formal full cycle SC process. The initial shot in the arm resulting from a systematic process has compelling benefit. Caveat: This SC Manager has noted that though not all the improvement can be exclusively attributed to the SC Skills Improvement Program. However, there were no other notable changes in their SC process or sales methodology during the 6 month period. As noted, success cannot be attributed to the alignment of the SC process with their sales methodology since very little alignment occurred. Rather, success was achieved through the routine enforcement of the Solution Sales Process. Expectations were carefully set and managed with SCs, sales reps, and sales management. This customer has requested anonymity.

23. 23 How Pre-Sales Quality Evolves Over Time

24. 24 Quality Levels 1 & 2: Traditional Model Pre-Sales Subject Matter Experts (SMEs) In-and-out. Under orders. Weak selling mentality Inefficiency, waste. No ownership for driving sales The Business Objects has chosen and implemented Customer Centric Selling (CCS) as their sales methodology. Sales Consultants have two tactical initiatives which are now aligned or are being aligned with CCS: The Great Demo (TGD) and an internal Proof-of-Concept process (POC).The Business Objects has chosen and implemented Customer Centric Selling (CCS) as their sales methodology. Sales Consultants have two tactical initiatives which are now aligned or are being aligned with CCS: The Great Demo (TGD) and an internal Proof-of-Concept process (POC).

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26. 26 Results -- Case 1: $1B Virtualization Co Problem Product centric sales transitioning to solution sales Wanted to expand deal sizes (ex: via services) Activity Improvement Solution Pain discovery, qualification. 12 SEs, 5 months, $25k Results Within 60 days A deal grew 33% -- $1M to $1.36M, and Closed 1 quarter faster Annualized new additional revenue = $8.5M Time saved = 10.5 work-months � 1 FTE This case study and its results are real. Admittedly, our industry is not accustomed to sales performance improvements like these. Keep in mind, SCs generally do not routinely operationalize a formal full cycle SC process. The initial shot in the arm resulting from a systematic process has compelling benefit. Caveat: This SC Manager has noted that though not all the improvement can be exclusively attributed to the SC Skills Improvement Program. However, there were no other notable changes in their SC process or sales methodology during the 6 month period. As noted, success cannot be attributed to the alignment of the SC process with their sales methodology since very little alignment occurred. Rather, success was achieved through the routine enforcement of the Solution Sales Process. Expectations were carefully set and managed with SCs, sales reps, and sales management. This customer has requested anonymity. This case study and its results are real. Admittedly, our industry is not accustomed to sales performance improvements like these. Keep in mind, SCs generally do not routinely operationalize a formal full cycle SC process. The initial shot in the arm resulting from a systematic process has compelling benefit. Caveat: This SC Manager has noted that though not all the improvement can be exclusively attributed to the SC Skills Improvement Program. However, there were no other notable changes in their SC process or sales methodology during the 6 month period. As noted, success cannot be attributed to the alignment of the SC process with their sales methodology since very little alignment occurred. Rather, success was achieved through the routine enforcement of the Solution Sales Process. Expectations were carefully set and managed with SCs, sales reps, and sales management. This customer has requested anonymity.

27. 27 Case 2: $2B Networking Solutions Co Problem Pilot equipment was depleted, no more allocated Pilots in bad deals, couldn�t pilot good deals Activity Improvement Solution Activities across the board. 6 SEs, 6 months, $25k Results # of qualified deals 33% Avg list price 75% Technical Decision Time 33% Win rate 33% Annualized revenue: $480k to $3.2M This case study and its results are real. Admittedly, our industry is not accustomed to sales performance improvements like these. Keep in mind, SCs generally do not routinely operationalize a formal full cycle SC process. The initial shot in the arm resulting from a systematic process has compelling benefit. Caveat: This SC Manager has noted that though not all the improvement can be exclusively attributed to the SC Skills Improvement Program. However, there were no other notable changes in their SC process or sales methodology during the 6 month period. As noted, success cannot be attributed to the alignment of the SC process with their sales methodology since very little alignment occurred. Rather, success was achieved through the routine enforcement of the Solution Sales Process. Expectations were carefully set and managed with SCs, sales reps, and sales management. This customer has requested anonymity. This case study and its results are real. Admittedly, our industry is not accustomed to sales performance improvements like these. Keep in mind, SCs generally do not routinely operationalize a formal full cycle SC process. The initial shot in the arm resulting from a systematic process has compelling benefit. Caveat: This SC Manager has noted that though not all the improvement can be exclusively attributed to the SC Skills Improvement Program. However, there were no other notable changes in their SC process or sales methodology during the 6 month period. As noted, success cannot be attributed to the alignment of the SC process with their sales methodology since very little alignment occurred. Rather, success was achieved through the routine enforcement of the Solution Sales Process. Expectations were carefully set and managed with SCs, sales reps, and sales management. This customer has requested anonymity.

28. 28 Activity: Improvement Calculator Input an Estimate of Your: # of SMEs Average List Price # of Qualified Deals Technical Win Rate Technical Decision Time Using Your % Improvement Targets, It Estimates: Current and future annualized revenue Revenue improvement Investment cost and Payback Lost opportunity cost with no improvement This case study and its results are real. Admittedly, our industry is not accustomed to sales performance improvements like these. Keep in mind, SCs generally do not routinely operationalize a formal full cycle SC process. The initial shot in the arm resulting from a systematic process has compelling benefit. Caveat: This SC Manager has noted that though not all the improvement can be exclusively attributed to the SC Skills Improvement Program. However, there were no other notable changes in their SC process or sales methodology during the 6 month period. As noted, success cannot be attributed to the alignment of the SC process with their sales methodology since very little alignment occurred. Rather, success was achieved through the routine enforcement of the Solution Sales Process. Expectations were carefully set and managed with SCs, sales reps, and sales management. This customer has requested anonymity. This case study and its results are real. Admittedly, our industry is not accustomed to sales performance improvements like these. Keep in mind, SCs generally do not routinely operationalize a formal full cycle SC process. The initial shot in the arm resulting from a systematic process has compelling benefit. Caveat: This SC Manager has noted that though not all the improvement can be exclusively attributed to the SC Skills Improvement Program. However, there were no other notable changes in their SC process or sales methodology during the 6 month period. As noted, success cannot be attributed to the alignment of the SC process with their sales methodology since very little alignment occurred. Rather, success was achieved through the routine enforcement of the Solution Sales Process. Expectations were carefully set and managed with SCs, sales reps, and sales management. This customer has requested anonymity.

29. 29 Case: The Ally: Web Ordering System

30. 30 Quality Example 2: Model Q: Who Should We Prioritize Our Time With? A: People Who Can Make Decisions Faster

31. 31 Get Faster Decisions: Circle of Influence

32. 32 Circle of Influence Is the Solution Decision Maker (SDM) Correct?

33. 33 Pre-Sales Quality Improvement #2 Modeling the Technical Decision Process Visualizes How to Prioritize Time Accelerating Technical Decision Time

34. 34 Activity: Visualize Priorities

35. 35 Pre-Sales Quality Improvement #3 Checklist Pre-Sales Qualification to Improve Funnel Quality, List Price, and Win Rate

36. 36 Summary and Q&A Pre-Sales Operations is Ripe for Improvement Leverage the SME�s credibility to improve: Funnel quality Deal size Decision time Win rate Margins Activity Quality ? Impacts metrics ? Drives $ Use Process, Project Management, Engineering Examples: Reverse engineer, Model, Checklist Phil Janus, philj@salesengineering.com This case study and its results are real. Admittedly, our industry is not accustomed to sales performance improvements like these. Keep in mind, SCs generally do not routinely operationalize a formal full cycle SC process. The initial shot in the arm resulting from a systematic process has compelling benefit. Caveat: This SC Manager has noted that though not all the improvement can be exclusively attributed to the SC Skills Improvement Program. However, there were no other notable changes in their SC process or sales methodology during the 6 month period. As noted, success cannot be attributed to the alignment of the SC process with their sales methodology since very little alignment occurred. Rather, success was achieved through the routine enforcement of the Solution Sales Process. Expectations were carefully set and managed with SCs, sales reps, and sales management. This customer has requested anonymity. This case study and its results are real. Admittedly, our industry is not accustomed to sales performance improvements like these. Keep in mind, SCs generally do not routinely operationalize a formal full cycle SC process. The initial shot in the arm resulting from a systematic process has compelling benefit. Caveat: This SC Manager has noted that though not all the improvement can be exclusively attributed to the SC Skills Improvement Program. However, there were no other notable changes in their SC process or sales methodology during the 6 month period. As noted, success cannot be attributed to the alignment of the SC process with their sales methodology since very little alignment occurred. Rather, success was achieved through the routine enforcement of the Solution Sales Process. Expectations were carefully set and managed with SCs, sales reps, and sales management. This customer has requested anonymity.

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38. 38 Situation Room: Acme Call Centers Background The Opportunity: Acme Call Centers Now centralized; Going global Bobby says he is the decision maker We lost the deal Discussion Why perhaps did they reject the roadmap? Why did we lose? What could we have done differently? What questions should we have asked?

39. 39 Quality Example 2: A Takeaway

40. 40 Takeaway: Qualification Checklist

41. 41 Takeaway: Qualification Checklist

42. 42 Pre-Sales Quality Improvement #2 A Pre-Sales Qualification Checklist Improves Qualification Quality Impacting # Qualified Deals, Win Rate, + List Price

43. 43 Takeaway: www.salesengineering.com/sloan Qualification worksheet This case study and its results are real. Admittedly, our industry is not accustomed to sales performance improvements like these. Keep in mind, SCs generally do not routinely operationalize a formal full cycle SC process. The initial shot in the arm resulting from a systematic process has compelling benefit. Caveat: This SC Manager has noted that though not all the improvement can be exclusively attributed to the SC Skills Improvement Program. However, there were no other notable changes in their SC process or sales methodology during the 6 month period. As noted, success cannot be attributed to the alignment of the SC process with their sales methodology since very little alignment occurred. Rather, success was achieved through the routine enforcement of the Solution Sales Process. Expectations were carefully set and managed with SCs, sales reps, and sales management. This customer has requested anonymity. This case study and its results are real. Admittedly, our industry is not accustomed to sales performance improvements like these. Keep in mind, SCs generally do not routinely operationalize a formal full cycle SC process. The initial shot in the arm resulting from a systematic process has compelling benefit. Caveat: This SC Manager has noted that though not all the improvement can be exclusively attributed to the SC Skills Improvement Program. However, there were no other notable changes in their SC process or sales methodology during the 6 month period. As noted, success cannot be attributed to the alignment of the SC process with their sales methodology since very little alignment occurred. Rather, success was achieved through the routine enforcement of the Solution Sales Process. Expectations were carefully set and managed with SCs, sales reps, and sales management. This customer has requested anonymity.

44. 44 Summary and Q&A Leverage the SME�s Technical Credibility Pre-Sales ops is long overdue for improvement Activity Quality drives proven results Enable + empower SMEs to improve: Funnel quality Deal size Decision time Win rate Use structured techniques to improve Pre-Sales Quality Process, Project Management, Engineering Phil Janus, philj@salesengineering.com This case study and its results are real. Admittedly, our industry is not accustomed to sales performance improvements like these. Keep in mind, SCs generally do not routinely operationalize a formal full cycle SC process. The initial shot in the arm resulting from a systematic process has compelling benefit. Caveat: This SC Manager has noted that though not all the improvement can be exclusively attributed to the SC Skills Improvement Program. However, there were no other notable changes in their SC process or sales methodology during the 6 month period. As noted, success cannot be attributed to the alignment of the SC process with their sales methodology since very little alignment occurred. Rather, success was achieved through the routine enforcement of the Solution Sales Process. Expectations were carefully set and managed with SCs, sales reps, and sales management. This customer has requested anonymity. This case study and its results are real. Admittedly, our industry is not accustomed to sales performance improvements like these. Keep in mind, SCs generally do not routinely operationalize a formal full cycle SC process. The initial shot in the arm resulting from a systematic process has compelling benefit. Caveat: This SC Manager has noted that though not all the improvement can be exclusively attributed to the SC Skills Improvement Program. However, there were no other notable changes in their SC process or sales methodology during the 6 month period. As noted, success cannot be attributed to the alignment of the SC process with their sales methodology since very little alignment occurred. Rather, success was achieved through the routine enforcement of the Solution Sales Process. Expectations were carefully set and managed with SCs, sales reps, and sales management. This customer has requested anonymity.

45. 45 Case #2: $2B Automated Design Co Insight Leverage pre-sales to enable and empower partners Operational Change 100 SMEs enable thousands of partners SMEs provided a 5 level role maturity program SMEs clone Partner SMEs (PSME) into themselves Company co-funds PSMEs in same 5 level program Results Partners drive $1.4B of revenue (70%) Productivity is $14M per SME This case study and its results are real. Admittedly, our industry is not accustomed to sales performance improvements like these. Keep in mind, SCs generally do not routinely operationalize a formal full cycle SC process. The initial shot in the arm resulting from a systematic process has compelling benefit. Caveat: This SC Manager has noted that though not all the improvement can be exclusively attributed to the SC Skills Improvement Program. However, there were no other notable changes in their SC process or sales methodology during the 6 month period. As noted, success cannot be attributed to the alignment of the SC process with their sales methodology since very little alignment occurred. Rather, success was achieved through the routine enforcement of the Solution Sales Process. Expectations were carefully set and managed with SCs, sales reps, and sales management. This customer has requested anonymity. This case study and its results are real. Admittedly, our industry is not accustomed to sales performance improvements like these. Keep in mind, SCs generally do not routinely operationalize a formal full cycle SC process. The initial shot in the arm resulting from a systematic process has compelling benefit. Caveat: This SC Manager has noted that though not all the improvement can be exclusively attributed to the SC Skills Improvement Program. However, there were no other notable changes in their SC process or sales methodology during the 6 month period. As noted, success cannot be attributed to the alignment of the SC process with their sales methodology since very little alignment occurred. Rather, success was achieved through the routine enforcement of the Solution Sales Process. Expectations were carefully set and managed with SCs, sales reps, and sales management. This customer has requested anonymity.

46. 46 Case #3: $1.7B Power Equipment Co Corporate Commitment Resources and $ to enable pre-sales� to drive revenue Operational Change 2:1 Pre-sales to sales reps SMEs have aggressive incentive plan Many sales reps only negotiate, receive orders 3 year pre-sales enablement program Goal: Customers perceive high value in SMEs Result: Some customers now buy on-site SMEs! Purchased on-site SMEs fish for business! Result: They�ll never look back This case study and its results are real. Admittedly, our industry is not accustomed to sales performance improvements like these. Keep in mind, SCs generally do not routinely operationalize a formal full cycle SC process. The initial shot in the arm resulting from a systematic process has compelling benefit. Caveat: This SC Manager has noted that though not all the improvement can be exclusively attributed to the SC Skills Improvement Program. However, there were no other notable changes in their SC process or sales methodology during the 6 month period. As noted, success cannot be attributed to the alignment of the SC process with their sales methodology since very little alignment occurred. Rather, success was achieved through the routine enforcement of the Solution Sales Process. Expectations were carefully set and managed with SCs, sales reps, and sales management. This customer has requested anonymity. This case study and its results are real. Admittedly, our industry is not accustomed to sales performance improvements like these. Keep in mind, SCs generally do not routinely operationalize a formal full cycle SC process. The initial shot in the arm resulting from a systematic process has compelling benefit. Caveat: This SC Manager has noted that though not all the improvement can be exclusively attributed to the SC Skills Improvement Program. However, there were no other notable changes in their SC process or sales methodology during the 6 month period. As noted, success cannot be attributed to the alignment of the SC process with their sales methodology since very little alignment occurred. Rather, success was achieved through the routine enforcement of the Solution Sales Process. Expectations were carefully set and managed with SCs, sales reps, and sales management. This customer has requested anonymity.

47. 47 Who is the Sales Rep and Who is the Techie? Consider This�

48. 48 Customers Prefer Techies!

49. 49 Who is the Sales Rep and Who is the Techie? Consider This�

50. 50 The Forgotten Half of the Sales Force TM The Best Improvement in Sales Operations Will Come From the Sales Operation That Has Been Most Neglected

51. 51 Pre-Sales Quality Metrics What Should We Measure? ______________________ ______________________ ______________________ ______________________ What Should We Not Measure? ______________________ ______________________ ______________________

52. 52 Measuring Activity Quality is the Key Consider This: We do not lose weight by constantly weighing ourselves As a recent study showed, we lose weight by counting calories � regardless of our choice of diet Likewise: We do not grow revenue by constantly measuring revenue Rather, we grow revenue by measuring sales activity quality � regardless of our choice of sales methodology

53. 53 Circle of Influence

54. 54 Quality Example 2: Model Power