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Introduction to Sales Process Engineering

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Introduction to Sales Process Engineering

  1. 1. Sales Process Engineering Your salespeople: four appointments a day, five days a week Justin Roff-Marsh justin.roffmarsh@ballistix.com.au www .sales process engineering. net
  2. 2. Why do salespeople perform so few business-development appointments? <ul><ul><li>Business-development Appointments (8%) </li></ul></ul><ul><ul><li>Prospecting (12%) </li></ul></ul><ul><ul><li>Social Activities (12%) </li></ul></ul><ul><ul><li>Opportunity Management and Clerical (16%) </li></ul></ul><ul><ul><li>Fulfilment tasks (28%) </li></ul></ul><ul><ul><li>Customer service (24%) </li></ul></ul>
  3. 3. Multitasking causes additional undesirable effects
  4. 4. The conflict Treat salespeople as team members Treat salespeople as autonomous agents
  5. 5. The conflict Treat salespeople as team members Treat salespeople as autonomous agents Maximise Sales Maximise conversion Exercise management control
  6. 6. Erroneous assumption Treat salespeople as team members Treat salespeople as autonomous agents Maximise Sales Maximise conversion Exercise management control Conversion is NOT the primary driver of sales
  7. 7. A new focus Maximise opportunity flow Conversion is NOT the primary driver of sales
  8. 8. The artisan’s dilemma <ul><ul><li>“ Aren’t volume and quality mutually exclusive?” </li></ul></ul>
  9. 9. Objective: Maximise opportunity flow Centralise scheduling (workflow management) 3 Apply division-of-labour 2 Standardise workflow 1
  10. 10. Standardise Sales Workflow Opportunity Management Sales Revenue Opportunity Generation Promotional Expenditure
  11. 11. Opportunity Management (minor sales) Milestone Milestone Activity
  12. 12. Opportunity Management (major sales)
  13. 13. Division of Labour Prospecting Social Activities Business-development Appointments Clerical Data-entry and report generation Appointment setting Sales Technical Promotion Project leadership Customer service Solution design Estimating
  14. 14. Apply Division of Labour Prospecting Social Activities Business-development Appointments Clerical Data-entry and report generation Literature fulfilment Sales Technical Promotion Project Leadership Customer service Solution design Estimating
  15. 15. Centralise scheduling Technical Team Salesperson Sales Coordinator Forward-booked Days Buffer
  16. 16. Putting it all Together Salesperson Sales Coordinator Promotional Coordinator Pending Appointment-days Queue Forward-booked Days Buffer fx
  17. 17. Queue Size
  18. 18. Flow
  19. 19. SPE: Typical Outcome Parameter Before After Salespeople ($100k ea) 10 2 Project leaders ($100k ea) 0 4 Sales coordinators ($45k ea) 0 2 Customer service ($40k ea) 0 4 Payroll cost (OE) $1m $850k Total appointments/wk 20 40 Promotional expenditure  0% Sales (T)  100%
  20. 20. Justin Roff-Marsh <ul><li>Managing Director of Ballistix: management consultancy, with operations in Australia and USA. </li></ul><ul><li>The developer of Sales Process Engineering </li></ul><ul><li>Author of Reengineering the Sales Process </li></ul><ul><li>Expert in the Theory of Constraints (Jonah) </li></ul><ul><li>[email_address] </li></ul><ul><li>Blog: </li></ul><ul><li>www .sales process engineering. net </li></ul>
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