Pursuit of World-Class Performance (Miller Heiman)

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Watch this presentation for an analysis of the 2014 Miller Heiman Sales Best Practice Study and highlight the strategic issues facing sales leaders. Learn the three core behaviors and 12 sales activities that drive world-class sales performance.

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Pursuit of World-Class Performance (Miller Heiman)

  1. 1. Joe Galvin Chief Research Officer Tamara Schenk Research Director
  2. 2. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. THE PURSUIT OF WORLD-CLASS PERFORMANCE 2014 Miller Heiman Sales Best Practices Study
  3. 3. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. Original Rules of Basketball. Dr. James Naismith January 15, 1892 13. The side making the most points in that time is declared the winner
  4. 4. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. Playing Field Account, Territory, Market Opponents Competitors Strategy How to Win Rules Expense – Comp Plan
  5. 5. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. Number of Qualified Opportunities New Account Acquisition Average Account Billing YOY Existing Customer Growth Quota Achievement Forecast Accuracy RevenueRevenue
  6. 6. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. Performance 2013 Performance GAP Customer Core Collaborative Culture Calibrated Success
  7. 7. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. RevenueRevenue Number of Qualified Opportunities New Account Acquisition Average Account Billing YOY Existing Customer Growth Quota Achievement Forecast Accuracy 2014: +22%
  8. 8. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. Customer Core Provide Perspective BehaviorsBehaviors Collaborative Culture Conscious Collaboration Calibrated Success Performance Accountability
  9. 9. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. The Pursuit of Performance Miller Heiman Sales System® 2014 Miller Heiman Sales Best Practices Study 3 Behaviors of World-Class Sales Performance 6 Elements of the Sales System 12 Behaviors That Impact Performance Joe Galvin Chief Research Officer Miller Heiman Research Institute @joegalvin http://www.linkedin.com/in/joegalvin32 Tamara Schenk Research Director Miller Heiman Research Institute @tamaraschenk http://www.linkedin.com/in/tamaraschenk
  10. 10. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved.
  11. 11. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. World’s largest ongoing study of complex, business-to-business selling and sales management practices •More than 30,000 participants over last 11 years. •Not exclusive to Miller Heiman clients or alumni. •All Respondents filtered to reflect complex sale; 3+ decision makers. •Study includes 3 sections: Demographics, Behaviors and Metrics. •Analysis defines key behaviors leveraged to drive sales performance.
  12. 12. ©Copyright Miller Heiman, Inc. All Rights Reserved. N=1,155
  13. 13. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. CRITICAL SALES ACTIVITIES • Analysis elevates activities most linked to sales performance • Identify respondents that collectively and consistently execute these 12 behaviors • Designate this sub-segment as world-class population VALIDATE WITH SALES METRICS • Number of Qualified Opportunities • New Account Acquisition • Average Account Billing • YOY Existing Customer Growth • Quota Achievement • Forecast Accuracy WORLD CLASS • Small percentage of respondent base, 8.5% in 2014 • Outperforms All Respondents on metrics measured by 22%
  14. 14. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. Customer Core Provide Perspective BehaviorsBehaviors Collaborative Culture Conscious Collaboration Calibrated Success Performance Accountability
  15. 15. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. Organizationa l Attribute Individual Behavior Cultural Component Calibrated Success Performance Accountability What do we measure, recognize and reward? Customer Core Provide Perspective How do we connect and engage with our customers? Collaborative Culture Conscious Collaboration How do we work together?
  16. 16. ©Copyright Miller Heiman, Inc. All Rights Reserved. Organizationa l Attribute Individual Behavior Cultural Component Customer Core Provide Perspective How do we connect and engage with our customers? We clearly understand our customer‘s issues before we propose a solution. 4-year average 2014 93 % 48%
  17. 17. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. Experience Sales Experience Knowledge Miller Heiman Research Institute Research Note: Providing Perspectives Provide a Perspective How YOU will achieve success Experience Knowledge Context Decision Dynamic Customer’s Give a Pitch What we sell to YOU 1:All Capabilities PP Deliver a Presentation What we sell to people like YOU 1:Many Capabilities Market/ Role
  18. 18. ©Copyright Miller Heiman, Inc. All Rights Reserved. Organizationa l Attribute Individual Behavior Cultural Component Collaborative Culture Conscious Collaboration How do we work together? Our organization collaborates across all departments to pursue large deals. 2014 91 % 53% 4-year average
  19. 19. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. Sales CommunityShared Intelligence Best Practices Sales Professional Sales Managers, Executives, Subject Matter Experts, Specialists MessagesMessages KnowledgeKnowledgeStrategyStrategy Account Plan Opportunity Plan Sales Call Objective Common Language Account Plan Opportunity Plan Sales Call Objective Common Language Synchronized Selling Internal Intelligence Competitive Intel Feature/Function Product Roadmap Pricing Competitive Intel Feature/Function Product Roadmap Pricing Customer Communications Customer Concept Value Proposition Market Position Corporate Vision Customer Concept Value Proposition Market Position Corporate Vision Customer Miller Heiman Research Institute Research Note: Sales Collaboration: Defining Attribute of World Class
  20. 20. ©Copyright Miller Heiman, Inc. All Rights Reserved. Calibrated Success Performance Accountability What do we measure, recognize and reward? Organizationa l Attribute Individual Behavior Cultural Component Our sales performance metrics are aligned with our business objectives. 2014 93 % 48% 4-year average
  21. 21. ©Copyright Miller Heiman, Inc. All Rights Reserved. Sales ProfessionalSales Rep Personal ProfessionalismPersonal ProfessionalismNext JobNext Job Promotion Career PerformancePerformancePerceptionPerception Excuses Results CustomersCustomersCompensationCompensation Commission Customer Success TeamTeamIndependenceIndependence Figure It Out Proven Process mmmRew ard m Reward Measure, Recognize and Reward Miller Heiman Research Institute Research Note: Performance Accountability: World-Class Sales Behavior Accountability
  22. 22. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. Customer Management Business Management
  23. 23. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. Social Selling Knowledge Advantage Customer Community Multiple Customer Models Enabling Customer Context Forecast Accuracy & Funnel Confidence
  24. 24. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. 23% 71% 0% 100% All Respondents World Class Our sales team consistently relies on our knowledge management system as the single source for collateral and information. Conscious Collaboration We are highly confident in our sales force's ability to communicate value messages to customers and prospects. Provide Perspectives 44% 88% 0% 100% All Respondents World Class
  25. 25. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. CHANGE THINKING TO GET TO THE NEXT LEVEL "We cannot solve our problems with the same thinking we used when we created them." Albert Einstein [1879 – 1955]
  26. 26. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. SALES ENABLEMENT – MISSING ELEMENTS Situation Consequences Front Line Sales Managers  FSMs ignored  Coaching disconnected Customer Core  Internally focused alignment activities  Customer focus lost  „Product pitches“ Sales Operations  Sales operations missing  Ops & Enablm. disconnected Integrated Services  Content & training siloed  Product focus  Sales frustration  Waste of resources
  27. 27. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. SALES ENABLEMENT – MISSING ELEMENTS Situation Consequences Front Line Sales Managers  FSMs ignored  Coaching disconnected Customer Core  Internally focused alignment activities  Customer focus lost  „Product pitches“ Sales Operations  Sales operations missing  Ops & Enablm. disconnected Integrated Services  Content & training siloed  Product focus  Sales frustration  Waste of resources Execution Gap
  28. 28. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. Front Line Sales Managers  FSMs ignored Sales Operations  Sales Operations missing Integrated Services  Content & training siloed  Product focus SALES FORCE ENABLEMENT – CUSTOMER CORE APPROACH  Integrated enablement & coaching  SFE = Intersection between ops & marketing  Integrated services to improve business awareness Situation  Design point = Customer journey & stakeholder network New Requirements  Internally focused alignment activities Customer Core
  29. 29. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. DESIGN POINT – CUSTOMERS AT THE CORE "The main thing is to keep the main thing the main thing." Stephen Covey  Entire customer's journey and stakeholder network  At each stage  At all levels
  30. 30. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. CUSTOMER'S JOURNEY AwarenessAwareness Need to ChangeNeed to Change Define SituationDefine Situation BuyingBuying Evaluate OptionsEvaluate Options Select BestSelect Best Gate 1 Gate 2 Future vision established? Gate 3 Gate 4 Best buying option? Won? Gate 5 Gate 6 New challenges ImplementImplement Assess ValueAssess Value Implementation & Adoption Customer's JourneyCustomer's Journey
  31. 31. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. CUSTOMER CORE SFE FRAMEWORK Results & WinsResults & WinsChange & SituationChange & Situation Value PerceptionValue Perception Context & Concepts Value Hypoth. & Props Decision Dynamics Unique Value Prop Value Dynamics Value Confirmation Integrated Content Management & Training Framework Powered by enablement & collaboration technology Integrated Content Management & Training Framework Powered by enablement & collaboration technology FocusFocus Engagement & Messaging Principle Engagement & Messaging Principle Content & Trainings Services Content & Trainings Services Technology / Governance Technology / Governance Sales ProfessionalSales Professional Business Awareness Skills, Knowledge, Cust. Mgmt.Strategies, Decision Dynamic Expertise Business Awareness Skills, Knowledge, Cust. Mgmt.Strategies, Decision Dynamic Expertise Customer's JourneyCustomer's Journey Select BestSelect Best Imple-mentImple-ment Assess ValueAssess Value Evaluate Options Need to Change Define Situation Providing Perspectives Best Buying Vision Future Vision of Success Own Outcome Increase Value
  32. 32. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. YOUR SITUATION – YOUR NEXT STEPS  Shift focus to "Customer Awareness"  Switch content from product to customer situation  Train business acumen and decision dynamic expertise Level 1  Focus on growing existing customers  Create analyzing tools for new business ideas  Run pilot with A- players, then roll-out Level 2  You are a rock star!  Create A-Player sounding board  Let's share best practices Level 3
  33. 33. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. BEHAVIORS THAT DRIVE WORLD-CLASS SALES PERFORMANCE Sales and marketing alignment Formalized value proposition Allocating the right resources Comparable price concessions Regularly collaborates Review results of our solution “Why” top performers succeed Management team advances deals Compensation aligned with objectives Single source for knowledge Leverage best practices Forecast accuracy accountability
  34. 34. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. Activity Metric World Class ALL YOUR TEAM Create Opportunities Sales and Marketing are aligned in what our customers want and need. Number of Qualified Opportunities 91% 38% We have a formalized value proposition that is very compelling to our prospects. 92% 42% Manage Opportunities Our organization is highly effective in allocating the right resources to pursue large deals. New Account Acquisition 93% 36% When we give price concessions, we always get comparable value in return. 71% 21% Manage Relationships Our organization regularly collaborates across departments to manage strategic accounts. Average Account Billing 94% 43% We jointly set long-term objectives with our strategic accounts. 87% 34% People & Organization We know why our top performers are successful. YOY Existing Customer Growth 92% 41% Our management team is highly effective in helping our sales team advance sales opportunities. 96% 43% Operations & Enablement Our sales compensation policies are aligned with our business objectives. Quota Achievement 90% 46% Our sales team consistently relies on our knowledge management system as the single source for collateral and information. 71% 23% Management Execution We leverage the best practices of our top performers to improve everyone else. Forecast Accuracy 89% 29% Our sales managers are always held accountable for ensuring the accuracy of our sales forecast. 93% 44%
  35. 35. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. ATTRIBUTES OF WORLD-CLASS COMPETITORS They love to compete… Cards, sports or business They practice hard… You don’t practice until you can do it right… …you practice until you can’t do it wrong They compete every day… They always play to win They want to compete against the best… It’s the only way to get better There is no cheating… Cheating isn’t competing, it’s cheating They are focused on results… Close calls and nice tries don’t matter Nothing beats winning… 2nd place is the first loser
  36. 36. ©Copyright 2014 Miller Heiman, Inc. All Rights Reserved. THE PURSUIT OF WORLD-CLASS PERFORMANCE 2014 Miller Heiman Sales Best Practices Study
  37. 37. Thank you For more information SAVO Web Site: www.savogroup.com Sales First Nation: www.savogroup.com/sales-first-nation/ SAVO Products: www.savogroup.com/products/ SAVO Phone: 312-276-7700

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