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Bosworth & Kenney Presentation February 20, 2010

SALES PROCESS. Bosworth & Kenney Presentation February 20, 2010. Why the Customer’s Side of the Equation is Important. There cannot be a sale without a buyer.

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Bosworth & Kenney Presentation February 20, 2010

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  1. SALES PROCESS Bosworth & Kenney Presentation February 20, 2010

  2. Why the Customer’s Side of the Equation is Important • There cannot be a sale without a buyer. • A seller’s role is helping the prospective customer to buy, while ensuring the optimum Customer / Applied Systems Technologies experience • It’s important for the seller to know where they are in the prospect’s buying cycle, and then walk with them through the rest of their buying cycle while tracing to the sales process 2

  3. Selling Issues • “They wouldn’t let me in at the right level.” • “ Our services are perceived as expensive and non-essential.” • “We got in too late.” • “I get drawn into premature pricing discussions.” • “If only we would have discounted.” • “I lose control of our prospects at the end of the sell cycle.” • “Our representative did a poor job on the presentation.” • “IT squashed the project due to resource limitations.” • “We couldn’t get consensus from the committee.” • “I thought the RFP was “wired” for us…until”

  4. Key Components of this Presentation • Adopting World Class Sales Organization “Best Practices” • Review of how people & organizations buy • Aligning sales process to the prospect’s buying process • Exposure to the following selected selling skills: • Selling services using a Sales Process • Business Development • Identifying a prospect’s Goals, Problems or Needs • Diagnosis of the current situation and economic impacts • Identify and motivate the key players in the buying decision • Matching the Buying Cycle to the Sales Cycle • Negotiation, at the close and during the entire sales cycle • Leveraging successes to sell more

  5. Why a World Class Selling Organization? • Sales Benchmark Index is the world's leading sales benchmarking advisory firm that helps executive leadership understand how well they are performing relative to a peer group and the World • Sales Benchmark Index has used empirical data to create a repository of over 11,000 companies, across 19 industries, with 11 years of history and covering over 250 sales metrics • On the following pages we will look at the following: • Sales performance differences of normal to world class organizations • Effects of Globalization and Commoditization • Of all the sales metrics, which are the most impacting?

  6. World Class Selling Driven by the Customer Experience

  7. World Class Selling - Key Components • 11,000 companies, 250 metrics, 11 years of historical data tells you here are the 12 silver bullets • Sales Methodology • Product Usage & Industry Knowledge • Sales Management – Coaching & Mentoring • Coaching / Mentoring • Training • Compensation Planning • Territory Design • Talent Selection & Staffing • Budgeting & Expense Allocation • Technology Infrastructure • Channel Optimization • Clearly Define Goals and Assignments 7

  8. Alignment With Customer’s Behavior Phase 1Solution Development Phase 3 Commitment Phase 2 Evaluation Needs Cost Price Level of Buyer Concern Solution Risk Time People Product Company

  9. Why A Sales Process? Sales Process provides a repeatable and verifiable framework for: • Marketing • Product marketing • Sales • Production • Management To maximize resource utilization and economic yield

  10. Selling Competency Components Product Usage Knowledge Market Knowledge CustomerCentric Selling® Skills Who puts the puzzle pieces together? How?

  11. Stereotypical Behavior Until proven wrong, buyers assume salespeople are: Aggressive Insincere Pushy Manipulative Obnoxious Over-familiar Prone to exaggerate Inclined to over sell Anxious to tell “everything you ever wanted to know” Poor listeners Likely to do what’s best for them, not the buyer Not to be trusted These buyer decisions are made in the first few minutes.

  12. Seller Behavior Comparison STATEMENTS QUESTIONS Invite contradiction Can cause misalignment Attempt to impose your opinion Make “conversations” one-sided Invite participation Facilitate alignment Allow you to understand, then seek to be understood Allow others to add value 12

  13. Positioning Your Product and Service If you establish VISION & VALUE Then you have earned the right to talk about PRODUCT & PRICE IF not……………. You are just leading with “IT” IT

  14. What Will Motivate Mainstream Prospects? Fear of potential consequences Inaction Inertia Wrong decisions Curiosity about the actions of peers How have they addressed an issue? Why haven't I been able to? The “herd” mentality Politics within their organization Top-down pressure – exposure Bottom-up pressure – competition for their job Lateral pressure – impact on other parts of the organization Ego Executives tend to be competitive by nature Executives want to be perceived as thought leaders

  15. Death of A Sales Cycle? Typical salesperson or company statement: “Our robust, flexible, scalable and integrated manufacturing process controls application will dramatically improve your ability to have a 360 degree ubiquitous view of your production while gaining synergy within your virtual organization!” HOW?

  16. Identify Opportunities Through Planning Territory Territory Plans Account Plans Opportunities Inside Sales Industry Accounts Named Account OEM Clients Direct Sales Existing Accounts New Business Opp Opp Opp Opp Opp

  17. Research Does Seller have “feet on the street“ in the Company today Biographies of key executives & board members of the Company Key customers, suppliers and/or business partners of the Company Review Company and industry for alignment with Seller’s offering Current members and certifications – Length of relationship Review & understand up & down stream participants in Prospect’s Supply Chain Understand Buyer’s point of view and expertise Formulate “attack plan” and map appropriate Selling Team Members (skill sets) to the opportunity Territory and Account Planning 1 Goals – Target new Opportunities Tools • Linkedin, Company web site, Hoover’s, etc. • Review other Enterprise Practitioners for potential similarities • P&IM Journal, APICS Surveys Deliverables • Update Account / Opportunity Plan & Opportunity Manager Participants • EXISTING CLIENT • NEW CLIENT - Salesperson and Account Team

  18. Initiating Buying Cycles Goal to Improve “Not Looking” to improve* WHY? Competitive Vision Unaware Not a priority Burn victim • Decision maker involved • Business goals defined • Requirements known • Evaluation ongoing • Budgeted * What % of those ‘not looking’ have the same goals as those ‘looking’ to improve?

  19. Sales Productivity • Sales growth is each persons responsibility • Collective, Cross-Functional Effort for increasing growth • Existing customers – expansion across service lines • Referrals • Industry associations • Seminars • Web presence • Create leverage within your Sphere of Influence • Start with your most likely potential Champion • Identify two lateral and one senior executive job title • Contact all simultaneously • Use all methods simultaneously to expand and grow your funnel • Get the ‘not looking to change’ to begin to explore looking to change

  20. Pre-call Planning and Research • Identify key players or stakeholders • Identify potential areas for critical business issues (needs/goals ) • Match up key players with critical business issues (needs/goals) • Align your capabilities to each key player and goal • Create a “Projected Skeleton Sphere of Influence / Org Chart with Key Player job titles and Goals” for the potential opportunity • Target most likely Champion • Develop Reference Story / Initial Value Proposition • Construct a business development strategy (letter, e-mail, phone, seminars, etc.) utilizing specific information gathered • Proceed with confidence Account level Opportunity level

  21. New Clients The salesperson should get the Company’s key stakeholders to: Be Curious Listen Say “Tell Me More” Existing Clients…… or New Client who have said “Tell me more” Get prospective buyer(s) to disclose to Salesperson a: Goal Problem Need Stimulate Interest 2 Goals – Need Development Tools • Prospecting scripts • Success stories • Testimonials Deliverables • Update Account / Opportunity Plan & Opportunity Manager Participants • Salesperson and / or Account Team

  22. Alignment With Buyer’s Starting Point

  23. The Success Story SUCCESS STORY COMPONENTS:

  24. Success StoryExample Plant Manager Key Player: Poor product quality resulting in recalls. Goal or Issue: • Process engineers had no access to WIP QA data. • Machines breaking down unexpectedly during a batch phase • Unable to determine when to perform preventative maintenance • As a result: • 20% of their finished product was below specification. • Out-of-Spec missed at the final QA stage and resulted in recalls. Contributing Reason: He said that when batch phases were trending out of specification or machines were on the verge of breakdown, that his operators and maintenance staff could be alerted automatically with information telling them what the problem was, where it was occurring and what needed to be done to take appropriate action before the W.I.P. was damaged. Capability: Benefit Statement: We provided him with these capabilities. 99% of product meets or exceeds specification, they have not issued any recalls, reduced unplanned downtime by 30%, and reduced overall manufacturing costs by £9 million. Actual Benefit:

  25. Beware of the Pretender! CAUTION! This person may cause you to waste valuable time and company resources. He loves for a salesperson to come in and provide a detailed, custom demonstration, but he is unable or unwilling to introduce you to a decision-level person, But they only want to SEE-MORE!

  26. Champion Provides: Access to other Key Players Information Internal Selling Decision Maker can: Get what they want, regardless of job title Facilitate commitment of company resources to an evaluation Technical Buyer Beneficiary (anyone who directly or indirectly gets benefit from the implementation of Applied Systems products or services) Adversary – your objectives are: Neutralize or Use Key Players to eliminate Convert Key Players / Stakeholders * Individuals can serve multiple roles. On small transactions, a person could fill all roles.

  27. CustomerCentric Selling® Core Concepts “You Can’t Sell To Someone Who Can’t Buy”

  28. $ $ “The Money Line” Organizational Example Investors Change to sphere of Influence CEO CFO COO VP Manufacturing VP IT Plant Manager Director MIS Process Engineer

  29. The Targeted Conversation List 29

  30. BowlingTeam Orchestra Business Low High Organizational Interdependence Source: W. Edwards Deming, Ph. D.

  31. Organizational Interdependence Example CEO CFO Goal: C1: C2: Increase share price value Profits below targets Declining Market Share Goal: C1: C2: Make Profit Targets High costs of manufacturing Declining sales and increasing customer erosion VP Marketing VP Manufacturing VP Sales Reduce costs of manufacturing Reduce downtime Goal: C1: Increase Market Share Poor product quality resulting in recalls Goal: C1: Goal: C1: Increase sales and stop customer erosions Poor product quality resulting in recalls Plant Manager Improve product quality resulting in fewer recalls Limited and batch collection of W.I.P. quality control information Reduce downtime Poor scheduling causes long and poorly planned line changeovers and maintenance stoppages Goal 1: C1: Goal 2: C1: Maintenance Supervisor Process Engineer Goal: C1: C2: Improve frequency and time delays in the collection of W.I.P. quality control information QA samples are taken manually, and can only be taken at the end of a production run. Improve scheduling to decreased line changeover times and maintenance outages Line changeovers are manually tracked and planned Preventative maintenance is done manually, mainly on a reactive basis Goal: C1:

  32. Establish rapport Confirm agenda Demonstrate SINCERITY and COMPETENCE by explaining: Personal background FACTS about your offering – aligned with the stakeholders’ perceived interests What happened with another customer (success story) Ask Company stakeholder to share a Goal, Problem or Need Conversation Introduction 3 Goals Tools • Conversation Introduction Sheet • Seller’s Organizational Facts (# of employees, locations, # of experts, etc.) • Success stories Deliverables • Update Account / Opportunity Plan & Opportunity Manager Participants • Salesperson and Team

  33. Call Introduction • Establish rapport (a few seconds of silence) • Meeting Objective • Brief personal/company background • Review progress to date • Success Story

  34. Call Introduction Example – 5 Minutes • Establish Rapport (Let the prospect set the tone for the meeting) “I appreciate the opportunity to meet with you.” (Four seconds of silence) • Call Objective I would like to confirm the agenda we had set for this meeting; which was to 1) briefly introduce you to XXX; 2) explain to you how we have helped another manufacturer improve quality; 3) have you share your manufacturing improvement objectives. Are there any items you would like to add or change? Is this agenda acceptable? • Background (Establish Credibility) I’ve been working in the manufacturing controls and reporting industry since 1992 and joined XXX in 1998. Personal • At XXX we help our customers improve business results by defining and automating a standard controls process for the manufacturing environment. • HQ in Cocoa Beach, Fla; with 14 other offices in North America • We were founded in 1991 • We are the exclusive distributor in the Southeast for Wrongware • Some of our Food and Beverage clients include Grey Goose, Budweiser and Quaker Oats Company • Current Customer’s Situation (Success Story) “A situation you may be interested in, involves one of our clients in the food & beverage industry. Their Plant Manager indicated they were unhappy with poor product quality which is resulting in recalls. The reasons for this occurring are the process engineers had no access to WIP QA data and there were unexpected machine breakdowns during batch phases, resulting in 20% of finished product being below specification. Your Plant Manager wants a way when batch phases were trending out of specification or machines were on the verge of breakdown, for operators and maintenance staff to be alerted automatically with information telling them what the problem was, where it was occurring, and what appropriate action was needed before the W.I.P. was damaged. But from your position as the VP Manufacturing, could you tell me about your manufacturing process and improvement goals you may have?”

  35. Interview key stakeholders regarding: How they complete a business function today What bad things happen doing it that way today What are the financial exposures of doing it that way today Attempt to expand the scope to other high probability areas Bias the needs questioning to Seller’s service offering Confirm (recap) your understanding of what the stakeholders said Test the Sales Hypothesis: Qualify / Disqualify the opportunity Need Development & Vision Creation 4 Goals Tools • Solution Development Prompters (SDP) • Value analysis questions • Information from other APW’s Deliverables • Update Account / Opportunity Plan & Opportunity Manager • Know the organization, key stakeholders and interdependencies Participants • Salesperson and Account Team

  36. Questioning Etiquette

  37. Targeted Conversations Example Key Players Concerns, Goals Process Engineer Maintenance Supervisor Plant Manager VP of Manufacturing VP of Operations Software Developer Project Manager Others??? • - Improve W.I.P. Quality Control • - Reduce Rework • - Reduce Scrap, Waste • - Excessive Unplanned Downtime • - Increasing Inventory Costs • - • - Improve Product Quality • - Increasing plant Costs • - • - Increasing Costs • - Excessive inventory costs • - • - Satisfy customer demand • Reach targeted productivity goals • - Increasing software development cycles • - • - • - Late to market • - Increasing development costs

  38. Converting Features into Usage Scenarios TARGETED CONVERSATION: EXAMPLE Title: Plant Manager Goal:Increase Product Quality Offering: Process Control Software Relevant Product Features Potential Usage Scenarios WHEN batch phases are trending out of spec, would it help if your operators could be alerted via visual alarm on their PC, mobile phone, pager or email, then turn to any workstation connected to the production line and re-adjust parameters with a few mouse clicks, SO THAT product quality stays consistent and scrap, rework and waste are reduced? PROCESS CONTROL ALERT WHEN production equipment is due for repairs, would it help if your maintenance staff could receive an automated work order based on historical trending and predetermined maintenance intervals to their workstation via email, handheld pc, and pager telling them what machine needs fixing, what parts are required and where the inventory is located, SO THAT down time is reduced and W.I.P. is not lost? ASSET MANAGEMENT MAXIMIZER WHEN customer orders change and a modification of the production schedule is required, would it help if your production scheduler could access from their workstation the electronic order, and with their mouse drag and drop that order into the schedule, which would automatically re-sequence the schedule, SO THAT you can increase production line utilization and minimize line changeovers? PRODUCTION SCHEDULING GUIDE CONFIRM: So, if you had (summarize capabilities)… could you (repeat original goal)? RECAP: “So the way you do it today is…? Did I understand you correctly?”

  39. Solution Development Process™ Goal FRAME FRAME “What solutions have you considered?” How do you … today?” DIAGNOSE DIAGNOSE “When…would it help if…your…could…? (How much would it help?) Usage Scenarios Current Situation Today do you experience…?” (How much/How many/How often) CONFIRM CONFIRM “If you had (capabilities)… could you then (Achieve Goal)?” “So the way you do it today is…?” Vision of a Solution 39

  40. Solutions Solution Development™ Prompter Title: Plant Manager Goal: Increase Product Quality Offering: Process Control Software How do you do it today?…… What specific solutions have you considered? Diagnostic Questions Usage Scenarios (Capability) Do process engineers have access to real time WIP QA Data. When do QA measurements get taken? Does this result in bad finished product, recalls, waste, scrap, rework? How often? How much? #, %, $, £, € WHEN batch phases are trending out of spec, would it help if your operators could be alerted via visual alarm on their PC, mobile phone, pager or email, then turn to any workstation connected to the production line and re-adjust parameters with a few mouse clicks, SO THAT product quality stays consistent and scrap, rework and waste are reduced? WHEN production equipment is due for repairs, would it help if your maintenance staff could receive an automated work order based on historical trending and predetermined maintenance intervals to their workstation via email, handheld pc, and pager telling them what machine needs fixing, what parts are required and where the inventory is located, SO THAT down time is reduced and W.I.P. is not lost? Is there unplanned downtime? How often does it occur? How much does it cost? Does the W.I.P. affected by the machine breakdown become waste or get degraded? How much? How often? Can it be reworked? Does it then sell for less? #, %, $, £, € WHEN customer orders change and a modification of the production schedule is required, would it help if your production scheduler could access from their workstation the electronic order, and with their mouse drag and drop that order into the schedule, which would automatically re-sequence the schedule, SO THAT you can increase production line utilization and minimize line changeovers? Is your scheduling done manually? Does the schedule often change? Does this happen in the middle of runs? Does that result in scrap, waste, rework? #, %, $, £, € CONFIRM: So, if you had (repeat usage scenarios) could you (repeat original goal)? RECAP: “So the way you do it today is…? Did I understand you correctly?”

  41. Solution Development Steps • After the buyer shares a goal, problem or need - ask them to describe their current method. • Ask diagnostic questions that map to your offering. • Summarize current situation and get prospect agreement. • Ask buyer what action they can take to achieve their goal. • Ask questions to turn usage scenarios (your opinion) into capabilities (buyer’s opinion). • Ask buyer if they had all the capabilities, could they achieve their goal. If the buyer agrees, you have created a Solution.

  42. Competency Components Solution Development Prompter™ (SDP) Industry Knowledge Product USAGE Knowledge SDP™ Customer Centric Selling Skills

  43. Name, title & company? Buyer’s goal/s? Current situation? Capabilities required? Economic impact to the person / organization? What is their procurement process? Who else do we want involved in the Buying Process? Next steps? Sales Call Debrief Questions

  44. Document to the Company’s key stakeholders the major elements of the meetings and interviews with Seller. Possible components: The Goal, Problem and/or Need Current Situation Vision of a Service Offering Value of the Service Offering to the Company Proposed next steps Attempt to negotiate with the key stakeholders a mutually agreed upon Sequence of Events reflecting their buying steps and Seller’s selling steps, which would lead to an engagement or sale. Document Sales Plan & Key Events 5 Goals Tools • Letter templates and examples • Sequence of Events templates and examples Deliverables • Correspondence to the Company's key stakeholders • Sequence of Events • Update Account / Opportunity Plan & Opportunity Manager Participants • Salesperson and Account Team

  45. Key Player Letter Qualification Milestones 1. Goal(s) 2. Current situation 3. SOLUTION(s) 4. Value 5. Sequence of Events • Ms. Isabella Thome February XX, 20XX • VP Manufacturing • ACME Foods • Dear Isabella, • Thank you for your interest in SolutionsPT. The purpose of this letter is to summarize my understanding of our • discussion. You told me your primary goals are increasing profits by reducing the amount of recalled product. • Our discussion led me to understand that you felt that current method of batch tracking of QA purposed was not acceptable and that downtime cause by incorrectly scheduled maintenance was causing excessive downtime. • You indicated that your Plant Manager could improve quality and uptime if he know when batch phases were trending out of specification or machines were on the verge of breakdown. This would enable his operators and maintenance staff to be alerted automatically with information telling them what the problem was, where it was occurring and what needed to be done, so they could take the appropriate action before the W.I.P. was damaged or the line was stopped. • You agreed with your Plant Manager that the Out-of Spec situation has caused your COG’s to increase 2%, which equals approximately £1,500.000 annually in net lost profit. • You also indicated that with improved quality your VP of Marketing has suggested they could improve market share by approximately 1%. • You indicated that you are interested in further investigating SolutionsPT. Based on my experience, I suggest our next logical steps are: • Confirm we are in agreement with my summary of our discussion; • Your review and comments on the attached recommended Sequence of Events • I look forward to working with you and your organization. • Sincerely, • Smedley Butler

  46. Sequence of Events - Example Ms. Isabella Thome - Page 2 Billable £7,500 Event Week of Checkpoint DRAFT 1/21 1/21 1/24 2/17 2/27 3/24 3/28 4/2 4/14 4/18 5/11 5/18 5/25 ongoing Phone interview Steve Jones (Plant Manager) Phone interview Wanta Buysome (VP of Mktg) Summarize finding to top management team Prove ABC capabilities to top management team Perform detail survey of current systems (2 Days) Implementation plan approval by MIS depart. Calculate return on investment and present investment requirements Send ABC license agreements to legal Gain legal approval (Terms & Conditions) Visit ABC Corporate HQ Review proposal “rough draft” Present proposal for approval Implementation kickoff Success metrics * * * * * * * As you notice, at each “checkpoint” we will stop and mutually decide whether to proceed.

  47. Determine the major value drivers for each key stakeholder Validate and Prove the Sales offering value to each key stakeholder. This can be achieved by: Extrapolated the value based on another Seller client’s experience (Reference) If applicable, identify and calculate approximate economic impact numbers, based on the Company supplied information If possible, help the key stakeholders understand the impact and/or risk of delaying the decision to engage Seller Establish value & benefit before discussion of the engagement fee Continue to Qualify / Disqualify the opportunity Value Analysis 7 Goals Tools • Seller templates and examples • Industry compiled statistics Deliverables • Value / Benefit analysis summary • Checkpoint letter - Sequence of Events step completed • Update Account / Opportunity Plan & Opportunity Manager Participants • Salesperson and the Account Team

  48. Value Justification • Value Justification vs. Cost Justification • Reasons for participation • Initiating • Closing • To Minimize Discounting Pressure • Must be done

  49. Why Value? “More than 82% of IT decisions now require a Cost versus Benefit analysis.” “A project is 60% more likely to be approved with a cost justification and business case.” “Only those solutions that clearly demonstrate a Cost versus Benefit are being considered.” “Return on investment is king, and projects with a quick and clear Cost versus Benefit are much more likely to get funding in today’s uncertain business climate.”

  50. Value Measurement Elements What will be measured? Who is responsible? How much is possible? What capabilities will be needed? When will this investment pay for itself? What is the return on investment?

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