High-Performance Organizations for a New World of Sales

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The old way of selling is dead! We have known it for some time, but the world’s economy has shown us once and forever that the old days are over – definitively. Sales cycles have become longer, conversion rates are falling, forecasts are becoming unreliable and margins are shrinking.

The traditional sales boost plan involves incentives, layoffs, training and technology but overlooks the simple fact that most organizations are a dysfunctional bunch of isolated departments that make it hard for people to perform, let alone work with clients.

In the New World of Sales, organizations are client-focused by design and apply smart training and technology to support the structural choices they have made.

The New World of Sales takes the concept of a client-focused organization as a starting point for a discussion about ways to overcome sales bottlenecks and to align people, processes and tools. If you are tired of the old recipes and are keen to integrate more sustainable methods for a new world of sales, you are more than welcome to join us and start a new journey.

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High-Performance Organizations for a New World of Sales

  1. 1. VALUE CREATION IN HIGH-PERFORMANCE ORGANIZATIONS Benny Corvers 19 March 2014
  2. 2. 3 INCEPTION THE ORGANIZATIONAL LIFE CYCLE TIME SALESVOLUME GROWTH MATURITY DECLINE * Source: Smith et al. (1985)
  3. 3. 4 CLIENT Market, Sell, Design, Produce & Deliver IN THE BEGINNING, THERE WAS A START-UP
  4. 4. 5 CLIENT Market, Sell, Design, Produce & Deliver IT ATTRACTED MANY CLIENTS
  5. 5. 6 CLIENT LOADS OF CLIENTS, ACTUALLY … Market, Sell, Design, Produce & Deliver
  6. 6. 7 TIME FOR OUR FIRST NEW HIRE!
  7. 7. 8 CLIENT SO ADMIN SUPPORT SHOULD DO THE TRICK FOR NOW Market, Sell, Design, Produce & Deliver Admin
  8. 8. 9 CLIENT THEN WE DECIDED TO SPLIT SALES & OPERATIONS Sales & Marketing Admin Design, Production & Transport
  9. 9. 10 CLIENT BUT THOSE DAMN CLIENTS KEPT COMING … Sales & Marketing Admin Design, Production & Transport
  10. 10. 11 TIME FOR OUR SECOND HIRE!
  11. 11. 12 CLIENT SO WE ADDED OUR FIRST MANAGEMENT LAYER Sales & Marketing Admin Design, Production & Transport Sales Management
  12. 12. 13 CLIENT THEN WE SPLIT UP OPERATIONS Sales & Marketing Admin Design Sales Management Production & Transport
  13. 13. 14 CLIENT AND WE ISOLATED MARKETING FROM SALES Sales Admin Design Sales Management Marketing Production & Transport
  14. 14. 15 AND WHY NOT CREATE A SPECIALIZED PRESALES UNIT? Sales Admin Design Sales Management Production & Transport Marketing Presales
  15. 15. 16 NOW WE NEED SOMEONE TO TACKLE THE COMPLEXITY Sales Admin Design Sales Management Production & Transport Marketing Presales Operations Manager
  16. 16. 17 WHO STARTED BY CREATING TWO MORE UNITS Sales Admin Sales Management Design TransportMarketing Presales Production Operations Manager
  17. 17. 18 AND ALSO THE SUPPORT DEPARTMENT KEPT GROWING Sales Admin Sales Management Design TransportMarketing Presales Production Operations Manager Invoicing
  18. 18. 19 EVEN THE OPERATIONS NOW NEED SUPPORT STAFF Sales Admin Sales Management Design TransportMarketing Presales Production Operations Manager Invoicing Quality Warehouse
  19. 19. 20 IN THE END, IT WAS CLEAR WE LACKED LEADERSHIP
  20. 20. 21 SO WE ADDED SOME BIG HONCHOS ON TOP Admin Design Sales Director TransportMarketing Presales Supervisor Production Invoicing Quality Warehouse CTO COOCEO Sales
  21. 21. 22 WE ARE NOW LOSING SIGHT OF OUR CLIENT
  22. 22. 23 OUR ORGANIZATION HAS BECOME TERRIBLY COMPLEX
  23. 23. 24 AND WE ARE ALL LOCKED UP IN OUR FUNCTIONAL SILOS
  24. 24. 25 THE END RESULT? WE ARE LOST …
  25. 25. 26 SO WHAT HAPPENS IF SALES ARE DOWN? TEN ‘PROVEN’ RECIPES #1 Fire sales reps #2 Replace sales management #3 Increase marketing spend #4 Eliminate marketing #5 ‘Align’ sales & marketing #6 Install a new, expensive CRM tool #7 Get everyone an iPad #8 Kick-in some more incentives #9 Roll-out new sales training #10 Start from #1
  26. 26. 27 CLIENT SO HOW CAN WE GET BACK TO THE EARLY DAYS? Market, Sell, Design, Produce & Deliver Clients take center stage A simple and transparent organization Efficiency and low overhead cost Agility to change course
  27. 27. 28 LET’S LOOK BEYOND THE SYMPTOMS
  28. 28. 29 WE NEED TO INTEGRATE MULTIPLE VIEWS
  29. 29. 30 Map #1 Map #2 Map #3Map #3 LIKE PLANNING A FAMILY TRIP Define the Territory Which country? Zoom in Vision, Mission & Strategy Where are we going? Enter GPS Coordinates Design Specs Take personal wishes and needs of each family member into account Plan according to budget Consider the destination from multiple angles Structure Systems CulturePeople
  30. 30. 31 FIGHTING THE FANATIC FRACTIONALIZATION OF FUNCTIONS FUNCTIONAL STRUCTURE Function 1 F2 Fn… FLOW BASED STRUCTURE Client Order 1 O2 On …
  31. 31. 32 WITH SELF-ORGANISING MULTI-DISCIPLINARY TEAMS CLIENT PROSPECTING ACCOUNT MANAGEMENT BUSINESS ADVISORY SKILLS PRESALES EXPERTISE PRICING KNOWLEDGE TECHNICAL WRITING SKILLS OPERATIONS EXPERTISE HR EXPERTISE RELATIONSHIPS Shared objectives Shared knowledge Mutual respect COMMUNICATION Frequent Timely Accurate Problem-Solving
  32. 32. 33 IN AUTONOMOUS CLIENT-FOCUSED MINI-COMPANIES NORTH SOUTH PUBLIC LARGE ACCOUNT MANAGER MARKETING SPECIALIST BUSINESS CONSULTANT PRESALES CONSULTANT PRODUCT MANAGER HR SPECIALIST ACCOUNT MANAGERS MARKETING SPECIALIST BUSINESS CONSULTANT TECHNICAL WRITER QUALITY MANAGER FINANCE SPECIALIST LARGE ACCOUNT MANAGER ACCOUNT MANAGERS BUSINESS CONSULTANT PRESALES CONSULTANT LEGAL OFFICERS BUDGET & CONTROL SPECIALIST
  33. 33. 34 WITH MORE ENGAGEMENT AND MOTIVATION JOB CONTROL JOB DEMANDS LOW-STRAIN JOBS ACTIVE JOBS HIGH-STRAIN JOBS PASSIVE JOBS MOTIVATION & LEARNING STRESS * Source: Karasek, 1979
  34. 34. 35 Client-Centric Organization THE END RESULT Ownership Motivation Agility Reduced Complexity Better Coordination CLIENT
  35. 35. 36 MORE ABOUT WORKPLACE INNOVATION
  36. 36. 37 LET’S NOW HEAR THE STORY OF QUINTESSENCE …

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