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Pipeline Management
Pipeline Management
Pipeline Management
Pipeline Management
Pipeline Management
Pipeline Management
Pipeline Management
Pipeline Management
Pipeline Management
Pipeline Management
Pipeline Management
Pipeline Management
Pipeline Management
Pipeline Management
Pipeline Management
Pipeline Management
Pipeline Management
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Pipeline Management

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Friday 15 November 2013 focus was on Pipeline Management at Implement Consulting Group's Commercial Excellence Forum. …

Friday 15 November 2013 focus was on Pipeline Management at Implement Consulting Group's Commercial Excellence Forum.

In addition to input from Implement Consulting Group and the usual sharing of experience, Tommy Rothoff, VP of Sales in Fritz Hansen Scandinavia, presented how Fritz Hansen has worked to make their pipeline a valid and dynamic part of daily sales management, enabling a 15% more accurate pipeline, 10% higher hit-rate and increased average order size.

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  • 1. Pipeline Management ComEx 2013 – Commercial Excellence Forum What it is and why it matters
  • 2. 2 Commercial Excellence Forum 2013-2014 Planned Meetings in 2013-2014 November 15, 2013 Pipeline Management January 24, 2014 Marketing with Impact (Conference)* April 25th, 2014 Service as profit generator September 5th, 2014 Improve your customer engagement
  • 3. Pipeline Management. The most powerful sales management tool there is...
  • 4. 4 …if used correctly, that is…
  • 5. 5 Results from survey Common pipeline in place 73% 27% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes No Do you have a common pipeline in the company?
  • 6. 6 Pipeline management – the answer to the questions: • Is there enough business in the pipeline to meet quota? • If not, what actions will close the gap (difference between quota and actual)? • Which sales people have pipelines that contribute to the gap? • What actions can be taken to close the gap before the period is over? • Which opportunities in the pipeline appear to be stalled (exceptions)? • What should be the forecast? 0 20.000.000 40.000.000 60.000.000 80.000.000 100.000.000 120.000.000 140.000.000 Stage BAD 37.400.013 38.270.104 33.204.034 14.966.001 16.055.000 12.079.000 Medium 18.150.013 26.857.017 55.340.002 18.048.000 5.820.000 12.940.000 Good 76.400.006 8.618.003 19.610.010 17.500.101 17.410.065 4.825.000
  • 7. 7 Pipeline management is a sales management tool to boost sales by improving four sales levers
  • 8. 8 Results from survey Reason for having pipeline in place 62% 16% 16% 3% 3% 30% 8% 41% 11% 11% 5% 8% 32% 41% 14% 0% 30% 8% 27% 35% 3% 38% 3% 19% 38% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% To have a better prediction of future sales To plan the delivery – capacity forecasts To follow the budget and potential deviation To create visibility of sales representatives work in the field To identify the weaknesses and/or improvement areas of the individual sales representatives What is the primary reason for having a pipeline in your company? 1 2 3 4 5
  • 9. 9 The challenge BEFORE Sales rep # oppt Total value Weigthed value Avg 45 11.347.000 2.994.750 39 4.801.700 1.677.820 30 3.878.612 798.066 3 253.150 33.615 31 7.454.920 2.226.876 11 3.174.500 751.875 Total 159 30.909.882 8.483.002 AFTER Sales rep # oppt Total value Weigthed value Delta decrease (%) Avg 44 10.969.000 1.435.200 52 35 4.911.200 829.695 51 28 3.646.458 640.610 20 3 178.450 26.145 22 31 8.536.410 2.271.115 -2 12 3.009.000 549.750 27 Total 153 31.250.518 5.752.515 32 The weighted value of sales pipeline is 25-40% too high in most organizations
  • 10. 10 Results from survey Validity of pipeline 14% 59% 22% 5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% The weighted pipeline is +90% correct The weighted pipeline is +75% correct The weighted pipeline is only 50% correct The weighted pipeline is less than 50% correct How valid do you estimate your pipeline to be?
  • 11. 11 Qualification - quick assessment 10% = Meeting confirmed 25% = Sponsor confirms Pain & Vision (positive response to sponsor letter) 50% = Power Sponsor admits Pain, Acknowledges our Differentiators and supports a Common Evaluation Plan (both sides commit resources) 75% = Power Sponsor Confirms Positive Evaluation and agrees to buy verbally & Close Date Confirmed © 2011 SPI International Inc.
  • 12. 12 The challenge BEFORE Sales rep # oppt Total value Weigthed value Avg 45 11.347.000 2.994.750 39 4.801.700 1.677.820 30 3.878.612 798.066 3 253.150 33.615 31 7.454.920 2.226.876 11 3.174.500 751.875 Total 159 30.909.882 8.483.002 AFTER Sales rep # oppt Total value Weigthed value Delta decrease (%) Avg 44 10.969.000 1.435.200 52 35 4.911.200 829.695 51 28 3.646.458 640.610 20 3 178.450 26.145 22 31 8.536.410 2.271.115 -2 12 3.009.000 549.750 27 Total 153 31.250.518 5.752.515 32 The weighted value of sales pipeline is 25-40% too high in most organizations REASONS Sales people guess the probability of winning opportunities – and they are typically over optimistic Sales people guess the close date of opportunities and thus forecast them in wrong quarters/months Sales managers are not sufficiently equipped to challenge & understand the win chance of opportunities Sales management typically pay too little attention to the process of creating an accurate weighted pipeline Spending an effort in creating an accurate pipeline overview is not important to sales people and sales managers A relatively low portion of opportunities account for a large portion of the value in pipeline
  • 13. 13 Results from survey Skill and readiness assessment 3% 5% 8% 0% 5% 8% 16% 14% 19% 16% 30% 22% 19% 11% 19% 19% 30% 30% 14% 24% 22% 41% 49% 22% 11% 24% 8% 19% 16% 30% 32% 32% 35% 41% 19% 22% 49% 22% 19% 8% 3% 14% 8% 14% 16% 0% 3% 0% 0% 0% 3% 5% 0% 5% 0% 20% 40% 60% 80% 100% The pipeline consists of phases and stages all based on customer actions The win-percentages of each opportunity is based on customer actions and not sales representatives own feeling The pipeline is constantly updated by all sales representatives Our management teams are generally good at pipeline evaluation & coaching Our management teams are generally good at specific opportunity coaching We have resources allocated to measure, analyse and report sales data We are analysing past performance to estimate the value of our sales pipeline We have a formalised sales opportunity review process throughout our organisation We visualise progress of the pipeline to all sales reps once weekly How do you assess your current skills and readiness ? 1 Disagree 2 3 4 5 Agree Don't know
  • 14. 14 A sales manager must master two disciplines to accelerate commercial performance Opportunity coaching • Help sales people identify the approach and tactics that will increase the chance of winning specific sales opportunities • If left on their own, most sales people will follow their own path and not the ideal sales process (e.g. ensure access to decision maker, pursue proof of value etc.) Pipeline coaching • Help sales people and management understand the strength of their sales pipeline and required actions • If left on their own, most sales people will tend to think that they have enough activities going to reach their target and only realise gaps when it is too late
  • 15. 15 The problem to solution link REASONS PIPELINE MANAGEMENT CAPABILITIES Sales people guess the probability of winning opportunities – and they are typically over optimistic Measurable sales process outcomes that proves alignment with customer to dictate probability Sales people guess the close date of opportunities and thus forecast them in wrong quarters/months Only include opportunities in forecast where customer has confirmed in writing their indented buying date Sales managers are not sufficiently equipped to challenge & understand the win chance of opportunities Improve sales managers skill to help sales people adjust probabilities based on sales process outcomes Sales management typically pay too little attention to the process of creating an accurate weighted pipeline Implement a meeting structure that lead sales managers and sales people to meet regularly to validate pipeline Spending an effort in creating an accurate pipeline overview is not important to sales people and sales managers Include pipeline value and forecast accuracy as key performance indicators for sales people and -managers The weighted value of sales pipeline is 25-40% too high in most organizations The solution requires strengthening a number of capabilities A relatively low portion of opportunities account for a large portion of the value in pipeline Strengthen sales managers capability to help sales people make win plans with specific and high impact activities
  • 16. 17 Benefits from pipeline management WHEN SALES IS SUFFICIENTLY FORECASTED ... ... it’s easier to proactively adjust activity levels and thereby close future gaps ... It’s easier to align sales and marketing activities ... it’s easier to adjust capacity in due time to secure ability to deliver ...it’s easier to manage the sales force towards value adding activities ...it’s easier to create valid reports to top management, board or share holders “After this exercise our Q3 estimate was 60% lower than it was one month ago, but on level with sales in Q1 and Q2 – now I think it’s accurate and we certainly need to work hard to close the gap to year-end budget” Managing Director, IT company
  • 17. Contacting Implement Consulting Group Learn more about Commercial Excellence Forum Go to Implement Consulting Group's main website

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