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Transforming a global sales organisation

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Transforming a global sales organisation

  1. 1. Inspiration and conversations that perspectives COMMERCIAL EXCELLENCE FORUM 5. April 2019
  2. 2. 2 COMMERCIAL EXCELLENCE FORUM COPENHAGEN MALMO OSLO STOCKHOLM ZURICH MUNICH AARHUS EVENTS IN 2018-2019 B2B digital marketing (October 2018 & March 2019): Inspiration and insights on how to take lead generation and nurturing through digital channels to the next level. Six behavioural trends shaping 2019 (February 2019): Exploring six trends that will be particularly necessary to implement in today’s business environment Global sales transformation (April 2019): How to transform a global or international sales organisation, and how to accelerate sales in a mature market without adding new resources and products. Sales Enablement – Aligning sales & marketing efforts (June 6, 2019): How to align sales and marketing through the design and usage of sales enablement tools – what does good looks like?
  3. 3. 3 Global sales transformation – a change journey that is … “against all odds” *Source: TAS Group; Sales Change Management, 2012 1/3 The average success rate for a project is estimated at only … Looking into the 2/3 of projects that fail … 72% What the stats tells us … of change failures in a commercial (typically sales) organisational context are related to employee resistance to change and management behaviour not supportive of change*
  4. 4. 4 … due to many reasons … “We do not have time for any more initiatives – and is this really relevant to me …” “You do not understand my customers – can you not see they are very different …” “Just give us a target – incentives will do it for our people …” “I have many years of seniority – I think I know sales, so make this relevant for the others …”
  5. 5. TRANSFORMING SALES ORGANISATIONS
  6. 6. 6 We are here for ONE reason… SUSTAINABLE GROWTH
  7. 7. 7 … and to get inspired on Sales and Transformation TRANSFOR- MATION SALES
  8. 8. 8 What happens in a sales organisation when we seek to transform? Way of sellingWay of leading sales Sales Manager / Sales Director CustomerAccount Manager / Sales Rep
  9. 9. 9 The pressure on Sales has never been higher … Source: Corporate Executive Board A B C D Our strategy states that we need to be more agile & digital – but is Sales ready? The market demands and needs are changing – are our frontline organisations able to adjust to the market changes? Competitive environment is changing and new players are on the move – are we on top of our game? Spending on sales training and tools is higher than ever, but fewer meets their quota – how can we improve our success rate?
  10. 10. 10 … and from our experience supporting Transformation of Sales, there are some clear tendencies and pitfalls we need to recognise to secure impact Attention is to fixing the problem rather than making it happen – the solution is right on paper1 The solution is often complex, and organisations want to change too much at once2 The perspective of the commercial frontline is often underestimated or even neglected3 Awareness of how critical the behavioural change of the frontline is to be successful is lacking4 Commercial leaders are not being equipped and supported to drive and sustain the change5
  11. 11. 11 … and recent research defines some clear recommendations for Sales Transformation to succeed In top-performing Sales teams, 67% of all sales executives are part of the capability building In top-performing Sales teams, 40% of all leaders are the responsible change agents Top-performing Sales leaders work less on explicit goal achievement and much more on the process and the activities leading to the results SALES LEADERSHIP CANNOT BE DETACHED FROM TRANSFORMATION CHANGE PROGRAMMES MUST HAPPEN ON-THE-JOB – NOT IN CLASSROOMS
  12. 12. 12 Three pivotal questions to be answered when thinking global sales transformations… How can we design a scalable sales model that supports growth and ensures the right focus? How can we support a right approach to sales leadership that supports the sales model and nurtures growth – no matter the cultural setting? How can we drive implementation forward and secure an optimal balance between HQ and local involvement? 1 2 3 SALES OPERATING MODEL SALES COACHING HQ VS LOCAL AUTONOMY
  13. 13. 13 A Sales Operating Model can in a simple form be defined by three key questions and how these are answered1 What types of conversations in the sales organisation support and influence these drivers? 2 Consistent quality in interactions What few key tools ease the conversations? 3 Cadence in weekly/monthly management model 1 What drives sales in the organisation? Right Sales Management interactions
  14. 14. 14 Sales leadership in transformation – seek the power of conversations … Source: Ralph Stacey 2 What we talk about becomes our new reality “If you want to change an organisation, you have to the conversation”
  15. 15. 15 RECEIVERS END PERSPECTIVE High HighLow Low Quality of methods, tools and processes Lasting but little effect Significant and lasting effect Short-lasting effect No effect Quality of leadership reinforcement Balancing HQ and Local involvement is linked to 2 key parameters and an overall prerequisite3
  16. 16. 16 …so we deliver on Change with impact – the core of our business as commercial transformers We bridge… …the gapStrategic understanding Commercial execution power The core of our business as Commercial Transformers
  17. 17. THE REAL WORLD
  18. 18. 18 The break-out sessions SALES OPERATING MODEL SALES COACHING HQ VS. LOCAL AUTONOMY
  19. 19. SALES OPERATING MODEL
  20. 20. 20 To secure sustainable impact, we recommend combining sales operating model and sales acceleration High HighLow Low Quality of methods, tools and processes Lasting but little effect Significant and lasting effect Short-lasting effect No effect Quality of leadership reinforcement Sales operating model Sales acceleration (win-rooms)
  21. 21. 21 Sales operating model – the right internal conversations in a firm cadence to drive winning behaviour Business impact Sustainable growth Key driver Doing things right (behaviour) Doing the right things (priority) Sales operating model – key elements Cadence in weekly management model 3 Right sales management interactions 1 Hierarchy InfoInfo SALES DIRECTORS SALES MANAGER KEY ACCOUNT MANAGER or SALES REP ValueValue INTERACTIONS Consistent quality in interactions 2 Performance review: Reviewing realised results against set- targets (sales or other result key performance indicators in scope) and diagnose most critical gaps to close (which sales objective KPIs are creating performance gap?). Development management: Developing the competencies, attitudes and business set-up to drive desired behaviour in the four above mentioned categories of management Portfolio management: How to approach a portfolio of accounts (suspects, prospects or current accounts) and their associated unqualified (leads) –and qualified opportunities to maximise revenue potential of products and services in market. Account Management: How to approach specific accounts (suspects, prospects, or current accounts) and their associated stakeholders, to develop profitable revenue growth or strategic advantages from working with company. Opportunity management: How to approach specific opportunities(unqualified –or qualified) and their associated sales process, to drive the customer towards a buying decision with us as the preferred supplier. Call/Meeting management: How to approach a specific sales call / meeting with key stakeholder(s) within account management or opportunity management to “move” stakeholder(s) towards desired action
  22. 22. 22 What are the right interaction types? Performance review: Reviewing realised results against set- targets (sales or other result key performance indicators in scope) and diagnose most critical gaps to close (which sales objective KPIs are creating performance gap?). Development management: Developing the competencies, attitudes and business set-up to drive desired behaviour in the four above mentioned categories of management Portfolio management: How to approach a portfolio of accounts (suspects, prospects or current accounts) and their associated unqualified (leads) –and qualified opportunities to maximise revenue potential of products and services in market. Account Management: How to approach specific accounts (suspects, prospects, or current accounts) and their associated stakeholders, to develop profitable revenue growth or strategic advantages from working with company. Opportunity management: How to approach specific opportunities(unqualified –or qualified) and their associated sales process, to drive the customer towards a buying decision with us as the preferred supplier. Call/Meeting management: How to approach a specific sales call / meeting with key stakeholder(s) within account management or opportunity management to “move” stakeholder(s) towards desired action
  23. 23. We recommend that a few key things must be in place to unleash the full potential of the sales operating model Management meeting cadence Meeting designs Visual performance management Minimum standards On-the-job coaching tools Coaching framework
  24. 24. SALES COACHING
  25. 25. 25 Sales coaching helps to enable … ✓ Confidence ✓ Courage to challenge the customer The role of the sales coach is to help each sales engineer reach their potential
  26. 26. 26 Most managers overestimate their coaching skills – it is not just a go-do skill … Source: survey conducted at a fortune 500 company by scott edinger 0 10038th Where sales representatives rank them 79th Where sales managers rank themselves Coaching ability percentile
  27. 27. 27 Changing conversations Why did you lose? How can we win? Did you reach your target? How can we reach the target? How did the meeting go? How can we best use the meeting? How can we improve balance?What will you close this month?
  28. 28. 28 Three types of sales coaching PIPELINE COACHING DEAL COACHING SKILLS COACHING
  29. 29. 29 Typical pitfalls when doing sales coaching 1 Lack of facilitation and structure – information overload Reporting on “history” kills energy Mixed purposes – pipeline coaching, deal coaching and skills coaching are done simultaneously Too little knowledge-sharing – one-way instructions Facilitator not able to challenge No actions agreed upon No real ownership by sales representatives 2 3 4 5 6 7
  30. 30. HQ vs local
  31. 31. 31 Balancing the HQ and local involvement is for many a challenge often linked to three key parameters and a prerequisite TIME AMBITION CONTROL
  32. 32. 32 Balancing the HQ and Local is for many a challenge often linked to 3 key parameters and a prerequisite RECEIVERS END PERSPECTIVE High HighLow Low Quality of methods, tools and processes Lasting but little effect Significant and lasting effect Short-lasting effect No effect Quality of leadership reinforcement
  33. 33. 33 A (local) transformation should be built around an impact case BUSINESS IMPACT Increased revenue growth Increased new sales value Increased portfolio value Improved win rate Increased retention rate Increased # of opportunities Increased average order size Frontline increased activity level Frontline improved sales quality level Sales managers install “win-room settings” and coaching behaviours to drive performance KPIS IMPROVED BEHAVIOURAL DRIVERS
  34. 34. 34 But how have you balanced HQ desire to manage impact in your organisation? HQ LOCAL Sales method Sales process Organisation design CRM system Sales tools Leadership model Competence development KPIs and incentives Implementation/change responsibility

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