The document outlines strategic pipeline management techniques by The Bryden Group, emphasizing the alignment of sales, marketing, and business strategies to enhance revenue generation and forecast accuracy. It discusses pipeline structure, account management, and stages of sales engagement from initial contact to contract closure, highlighting the importance of collaboration, negotiation, and delivery processes in achieving successful sales outcomes. Additionally, it introduces a four-stage revenue forecasting model to improve predictability and organizational success in managing sales opportunities.

1. Strategic Pipeline ManagementThe Bryden Group, LLC

2. Aligning Sales to StrategyA strong Business Strategy guides…the Marketing Strategy to create demand generation and support for…the Sales Strategy which leads to… Pipeline Management – distribution of opportunities across the sales force by channel, geography, vertical or valueStage Forecasting – the objective evaluation of contract closing and customer revenue generationRevenue Forecasting – building a predictable forecasting engine to guide company expenses and investmentsJuly 21, 2011© 2011 The Bryden Group, LLC2

3. Business StrategySuccessful pipeline management links directly to the strategic metrics for the business Business goals set the bar for salesFailure to set firm goals or the wrong goal often enable sales to drift or miss planUnless your business is a start-up, sales goals are about revenue generation – period.Strong goals: $5MM in new business; 15% increase in salesWeak goals:20% increase in net new accounts July 21, 2011© 2011 The Bryden Group, LLC3

4. Pipeline ManagementMarketing strategy will drive pipeline managementProduct focus may require expertise in salesGeographic focus may require a saturation strategyVertical focus may require industry expertiseGo-to-market strategy and demand generation efforts aligns to the sales force to open the door for direct sellingJuly 21, 2011© 2011 The Bryden Group, LLC4

5. Pipeline StructureTypical sales view:Account – representation of the clientLead – an individual within an accountOpportunity – representation of each potential sale with an accountAggregating opportunities and leads to an account level helps to assess the overall value of each account and assign priorityJuly 21, 2011© 2011 The Bryden Group, LLC5

6. Account ValuationJuly 21, 2011© 2011 The Bryden Group, LLC6TBG Company has a higher value than JKL Company, but JKL has a higher near-term value.

7. Stage ForecastingSuccessful sales management is based on delivering a predictable stream of revenues to the companyA 2-stage forecast strategy will help you build predictability and reliabilityForecast sales stages based on engagement with accounts and progressForecast revenues based on sales stageEach stage is driven by an assessment on account engagement and desire to buyJuly 21, 2011© 2011 The Bryden Group, LLC7

8. Stage Management:DormantSales& marketing are identifying and nurturing account needsMarketing demand generation campaigns are working positioning strategies by segmentSales is networking an organization to find the appropriate entry point, identifying “spies, sponsors, and champions”Assumptions on business needs are being made to get customers to engageThe objective: an initial call to engageJuly 21, 2011© 2011 The Bryden Group, LLC8

9. Stage Management:Need CreationSales& marketing are delivering materials, company information, case studies and white papersSales has an entry level conversation with a “spy” or a “sponsor” and is working to move the engagement forwardInitial assessments on needs and motivations of the buyer are being madeThe objective: a call leading to a meetingJuly 21, 2011© 2011 The Bryden Group, LLC9

10. Stage Management:DiscoveryThe account has engaged and an evaluation of needs assesses problems that can be addressed with products or services and the magnitude of the problem in the eyes of the accountThis phase maps a path to a completed sale, identifies interested parties and the executor of an agreementDiscovery also re-orients the selling message and positioning strategy to address account needs and the severity of the needThe objective: set a meeting to produce a solution to the executor of the agreementJuly 21, 2011© 2011 The Bryden Group, LLC10

11. Stage Management:CollaborationCollaboration is key to getting a contract; the customer has to own the sale and become the advocate for getting the deal doneA “strawman” proposal is presented by sales and refined with the client so the deal can be managed to meet the clients’ internal criteriaThis stage should result in agreements on price, services, products or solutions, a commitment to move forward and a tentative date for closureThe objective: green-light a contractJuly 21, 2011© 2011 The Bryden Group, LLC11

12. Stage Management:NegotiationContract negotiation should be free of pricing, services, products and solutions and focus on terms of the dealCollaboration sets the stage to focus on the execution and negotiation of contractsThis stage should result in a signed contract 80% of the time or greater, this enables revenue predictabilityThe objective: signed agreements, mutual organizational obligations and revenue datesJuly 21, 2011© 2011 The Bryden Group LLC12

13. Stage Management:DeliveryThe delivery stage is the hand-off from sales to account managementSales should lead the delivery process, coordinating between the client and your organizationRevenue is forecasted, but not bookedSales sees the deal to the endThe objective: no surprises, delivered service or product, aligned organizationsJuly 21, 2011© 2011 The Bryden Group LLC13

14. Stage Management:ClosedA successfully closed opportunity may lead to other opportunities for an accountYour organization recognizes revenueYour organization has roles defined for future opportunities and sales involvementAccount management assumes the lead for service and supportThe objective: network for the futureJuly 21, 2011© 2011 The Bryden Group LLC14

15. Revenue ForecastingPredictability in sales is key to organizational successWhen will contracts complete?When will revenue be realized?What expenses are required to realize revenues?What do we tell investors, executives and management to coordinate?A 4-stage forecast enables opportunity management, executive planning and organizational alignmentJuly 21, 2011© 2011 The Bryden Group LLC15

16. Revenue Forecasting:DormantClassify revenues at an opportunity level, not an account levelIn the beginning… all opportunities are classified as DormantDormant opportunities allow you to assess the potential of every accountDormant revenue is an estimate or potentially a flat out guess at bestEarly stage estimates help prioritize leads to follow and to create sales portfoliosJuly 21, 2011© 2011 The Bryden Group LLC16

17. Revenue Forecasting:PotentialPotential opportunities are defined by having a minimal to substantive engagement with your organizationThe organization is mappedThe opportunity and solution, product or service is starting to be definedAt least an initial meeting has occurredTypically, the sponsor is known, but the buyer has not yet engagedMany opportunities have potential that are never realizedJuly 21, 2011© 2011 The Bryden Group LLC17

18. Revenue Forecasting:ProbableProbable opportunities are characterized by a high level of engagement with the customerA solution, product or service has been agreed toSponsors are known, executors are known and engagedA contract is in processProbable opportunities close with a high expectancy rateJuly 21, 2011© 2011 The Bryden Group LLC18

19. Revenue Forecasting:WonWon opportunities have a signed agreement and are awaiting deliveryThe opportunity will generate revenue based on the delivery dateRevenue is forecast at 99%, failure in delivery is the only reason for not recognizing revenueBudget forecasts can include booked revenues for managing the P&LJuly 21, 2011© 2011 The Bryden Group LLC19

20. Strategic Pipeline Management FrameworkPulling it all together…July 21, 2011© 2011 The Bryden Group LLC20

21. Pipeline ReportingJuly 21, 2011© 2011 The Bryden Group LLC21

22. Visualizing the PipelineJuly 21, 2011© 2011 The Bryden Group LLC22Revenue Stage ManagementSales Stage Management

23. Strategic Pipeline ManagementManaging the pipeline with a sales stage and revenue stage process enables:Predictability for revenuesPipeline sustainability and growthSales performance managementAccount valuationsClogs in the pipelineMarketing program successCRM solutions to engage the pipelineJuly 21, 2011© 2011 The Bryden Group LLC23

24. About The Bryden GroupThe Bryden Group is a full-service marketing agency with experience in consulting, e-commerce, payment services, strategic planning and execution, marketing planning and execution, sales management and partnership marketing.To learn more about The Bryden Group and how we can help your sales organization visit us at www.thebrydengroup.com or email us at info@thebrydengroup.comJuly 21, 2011© 2011 The Bryden Group LLC24