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Sales Secrets for the Masters: Selling for CIO’s

Sales Secrets for the Masters: Selling for CIO’s. Tom Burland – AT&T Jim McLoughlin – PeopleSoft. Remember the Golden Rule!. ….he who has the money makes the rules!. Introduction. Jim McLoughlin. At the end of this complete session you will: know the “Golden Rule’ and the ‘Golden Ratio’

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Sales Secrets for the Masters: Selling for CIO’s

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  1. Sales Secrets for the Masters:Selling for CIO’s Tom Burland – AT&T Jim McLoughlin – PeopleSoft

  2. Remember the Golden Rule! ….he who has the money makes the rules!

  3. Introduction Jim McLoughlin

  4. At the end of this complete session you will: • know the “Golden Rule’ and the ‘Golden Ratio’ • know the MANTRA • have twin strategies for ‘selling’ a project • have new tactics to bring closure

  5. What is selling? Jim McLoughlin

  6. ‘Selling’ is the tip of the iceberg… ‘Selling’ Closed Questions Open Questions Re-state & Confirm Discovery Qualitative and Quantitative Research Empathy

  7. 2:1! Remember the Golden Ratio!

  8. ‘Selling’ is the tip of the iceberg… ‘Selling’ Closed Questions Open Questions Re-state & Confirm Discovery Qualitative and Quantitative Research Consequence? Empathy

  9. Get an understanding of the consequences!

  10. You have to discover the MANTRA! Money Authority Need Timescale Relationships A

  11. What Issues Do You Experience? Tom Burland

  12. Influence/Authority Matrix High Non-Influential – Authority (NI-A) Influential – Authority (I-A) Authority Non-Influential –Non-Authority (NI-NA) Influential –No Authority (I-NA) Low High Low Influence Holden International

  13. Holden International

  14. Value Statement Goals/Challenges/Initiatives : demonstrate your awareness and insight regarding issues that are important to your client. Area of Improvement: Without getting bogged down in details how can you enable organization success. Business Impact: How will this solution affect the business, relating to significant revenue enhancement or improvement in strategic positioning Credibility: Your organization’s track record, experience in either this solution or in past proposed projects Holden International

  15. Value Proposition Beginning ________________________________________ (Implementation Date) As a result of _______________________________________ (Solution Proposed) [organization] will be able to ___________________________ (do what specifically) Resulting in ________________________________________ (quantified business improvement) For _______________________________________________ (price/investment) With economic payback ______________________________ (timeframe) We will document our delivered ________________________ Value by (results tracking system/strategy) Holden International

  16. Gamekeeper turned Poacher Hank Rej

  17. Current Business Process-Statistics & Benchmarks Gather or create current KPI’s, statistics, etc. Develop Benchmarks to “Best in Class” and Competition EXAMPLE: • Number of Suppliers vs. Best in Class: xx,xxx– 1700 • Number of PO’s per $B Spend: xxx,xxx – 18,000 • Suppliers Comprising Top 80% per $1B: xxx – 10 • FTE’s per $1B Spend: xxx – 36 • Percentage of RFx’s that are Electronic: xx% - 37% • Percentage of PO’s that are Electronic: xx% - 85% Source: Hackett Group

  18. As Is Business Process: Describe for the executives in a brief bullet summary the problems, issues or deficiencies that will allow them to understand the impact on the business and the need to change. (#,#) To Be Business Process: Sourcing: Process discipline, standard rules & workflow methodology. (#,#) RFQ Automation: Disciplined supplier qualification, inclusion of bid factors, collaborative scoring and & awarding. (#,#) Supplier Rating: commonly defined measures, continuous rating & parameter alerts for all performance measures. (#,#) Analysis & Contract Compliance: Real time spend analysis by commodity & monitored contract compliance. Business Process: As Is (Current) & To Be Source: Supplier Selection & Awarding Process THE RESULT OF THIS ANALYSIS IS THE VALUE STATEMENT!

  19. Business Process: As Is (Current) & To Be Savings in the Business Case: • Summary bullets on one slide which list out the key Value Statements and the dollar value. • Correlate to the “As Is” v “To Be” process changes you have identified

  20. Challenges List the difficult issues facing the project. Get the cards on the table!! Some Examples: • Risk of not managing the cultural change • Assessing field staff skills levels • Upgrading IT infrastructure & personnel • Need to be open to best practices adoption • Establishing and managing to common KPI’s TCO

  21. Credibility List the circumstances in you and/or your team has been able to deliver on commitments in the past. Cite specific benefits achieved. Cite experience gained in other organizations Some Examples: • Another internal project • Competitors who have/have not done similar projects TCO

  22. Other Areas for Potential Savings There are always other areas of savings that are not part of the business case. Although the case is justified on the hard savings management commits too, the incremental knowledge that more is available is often a critical success factor. Tangible Example: • Headcount reduction that management does not want to include at this time. • If an estimate is conservative the upside can be listed here. Intangible Example: • Possibility of Centralization Over Time. • Acquisition ROI Acceleration with new system.

  23. Reasons to Invest Your finishing slide. Make sure you treat it like an elevator speech where you only have 1 minute to leave the executives with an understanding that compels them to invest. • Key (1 or 2) business benefits of the investment • Increases Shareholder Value • Annual Cost of Goods Reduction of $XX.XM after tax. • Payback in X.X Years • 5 Year Cumulative Cash Flow of $XX.X Million • IRR of XX% and NPV of $XX.X Million • EBITDA $X.X Million in 2008 • Sarbanes-Oxley Compliance • Implementation Plan That Mitigates Risk • Corner-Stone for Potential ERP Solution

  24. ExampleBusiness Case Name Executive Presentation Date

  25. Start with the Final Deliverable in Mind. • Executive Summary • Key Strategic Principals • Proposal/Benefits • Business Case Financial Summary • Current Business Process Statistics & Benchmarks • Best Practices Model • Business Processes: As Is (Current) & To Be • Business Process A • Business Process B • Business Process C • Business Process D • Economic Benefits • Implementation Plan – Risk Mitigation • Challenges • Other Areas For Potential Savings • Reasons to Invest

  26. Outline Key Strategic Principles Project Name: • Increase shareholder value • Increase EBITDA by lowering _______________ • Generate free cash flow Project or Functional Goals (if they exist): • Reduce COGS through leveraged strategic sourcing • _______________________________________ • _______________________________________ Opportunity: • Ex: Leverage xx% to xx% of direct material spend

  27. Proposal/Benefits • Ex: One company wide integrated procurement system • Strategic Sourcing control and productivity increase • Eliminate maverick spending • __________________________________ • __________________________________ • __________________________________ • Comprehensive implementation plan with risk mitigation • Conservative estimates Cost & Benefits • Project cost of $XX.Xm • Payback of X.X years • IRR of XX% • NPV of $XX.X million • Potential savings in other areas

  28. Business Case Financial Summary Project pays for itself, creates positive cash flow

  29. Summary - Reasons to Invest Key (1 or 2) business benefits of the investment • Increases Shareholder Value • Annual Cost of Goods Reduction of $XX.XM after tax. • Payback in X.X Years • 5 Year Cumulative Cash Flow of $XX.X Million • IRR of XX% and NPV of $XX.X Million • EBITDA $X.X Million in 2008 • Sarbanes-Oxley Compliance • Implementation Plan That Mitigates Risk • Corner-Stone for Potential ERP Solution

  30. Lesson to learn:If you’re the poacher, you better think like the gamekeeper!

  31. ‘Asking for the Order’ Jim McLoughlin

  32. Circa 1982, UK Selling is as easy as ABC…. AlwaysBeClosing!

  33. Ask for the order frequently…but do it gently! Sales cycle Trial close Trial close Trial close Trial close Trial close Close!

  34. Ask for the order…and then stay silent! Assume a ‘Yes’… “OK…I’ll pick up the signed Capital Approval Request tomorrow” Give two alternatives, both of which are ‘Yes’… “Is it better to pick up the signed Capital Approval Request today or tomorrow?”

  35. Reprise & Summary Jim McLoughlin

  36. What’s the Golden Rule? What’s the Golden Ratio? What’s my MANTRa? What are the twin strategies for persuasion? When should I ask for the order? Did we achieve the mission well or very well?

  37. Sales Secrets for the Masters:Selling for CIO’s Tom Burland – AT&T Jim McLoughlin – PeopleSoft

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