Content from the Master's Certificate in Sales Leadership

1. Master’s Program
in Sales
Management
TURNING CORPORATE STRATEGY INTO
SALES STRATEGY AND IMPLEMENTING IT!

2. Agenda
Yesterday – Strategy!
 Context
 Learn a framework for leading strategy and differentiation
discussions
 How a strong Purpose can inspire action and differentiation
 The role that Sales Leaders have in building healthy workplace
cultures
 How to set up the strategic planning cycle for more successful sales
outcomes
The 5 Worst Errors of Sales Strategy!
1. Why we shouldn’t treat all customers the same
2. Why we need to adjust the sales people and management
processes when the sales cycle gets longer
3. Why a good sales forecast review is a strategic investment
4. How sales incentives and compensation are not everything
5. Why managing leading indicators is more strategic
Integrated
Strategy
Purpose
Culture
Leadership
Performance
Systems
Execution

3. The 5 Worst Errors of Sales Strategy
1. We treat all customers the same
 We don’t build value propositions specific to customer segments
2. When the business changes we use the same sales people and
management processes
 We don’t recognize their inherent ability to manage complexity and line that up with the
complexity of the sales cycle
3. We work IN the business not ON the business
 We don’t coach and mentor enough every day because we are lost in the weeds
4. We believe that compensation and incentives are 90% of high
performance
 We don’t focus enough on the growth needs of people
5. We don’t spend enough time managing leading indicators of success
 We get enamoured with looking in the rear-view mirror

4. Error #1:
We treat all customers the same
Customer segmentation
Segmentation specific value propositions

5. The Marketplace
Are all Customers the Same? Is your Market Diverse?

6. 1. Understand
Customer
Needs
2. Group
Customers
3. What are the
Most Attractive
Groups?
4. Develop
Value
Propositions
for Target
Groups
5. Develop Go
To Market
Strategies
Segmentation Principles
Businesses
Need to be
Profitable
Different
customers
have
different
value drivers
Who do
you
choose to
serve?

7. What are you looking for?
How have you grouped your customers today?
How do you know that what they are asking for is a “market”?
◦ What is an attractive group?
Geography
Demographics (age, gender, etc)
Buying Patterns
Size of Customer
Value of Customer
Industry
Benefits
Customer Needs
Interests
Values
Attitudes
Behaviour

8. Segmentation Matrix – Example
Premium Performance Value
Professional
Hobbyist
Casual User
MarketSegments
Customer Segments
Price: Features: Services: Options

9. Segmentation Matrix (Example)
Premium Performance Value
Professional • Willing to pay top
dollar for top quality
and features
• Risk averse
• May consider price
premium if features
are relevant
• Is price conscious but
will not accept low
quality
• Accepts fewer features
Hobbyist • Willing to pay top
dollar
• Willing to pay more if
there is a reason
• Wants competitive
pricing
Casual User • Will pay for the cool
factor
• Product quality and
reliability are drivers
• Price is a big factor in
what to buy
MarketSegments
Customer Segments

10. Group Work - Segmentation
Groups of 4
Pick one of your companies
Build a simple (3x3) segmentation matrix
30 minutes

11. The beginning of segment specific
Value Propositions
(Example)
Premium Performance Value
Professional • Top of the line Pro
Full Frame SLR
Cameras with top
of the line lenses
• Service Plan
• Not top of the line
but next level down
• Product One
generation old
• Refurbished lenses?
• Service: pay as you go
Hobbyist • Top of the line
Compact System w/
interchangeable
lenses
• Instructional classes
• Top of the line with
one good general
purpose lens
• The best combination
of features and a great
price – a bundle
Casual User • Compact Pocket
Camera with all the
Bells and Whistles
(Wifi)
• Good Product – good
warranty – good price
• Basic Camera for
occasional use
MarketSegments
Customer Segments
Where can you win? Where do you have advantages over the
competition?

12. Workshop
Same Groups:
Identify elements of the value proposition for two segments
◦ How are they different?
15 minutes

13. The Marketplace
Are all Customers the Same? Is your Market Diverse?

14. Segment Specific Value Props
Which slice of the market
do you wish to serve?

15. Exercise
Same Groups as before and Same Company
Pick two of the segments of your matrix
 Create value proposition statements for each of those two
Review Strategy Canvas if it helps
Identify one area where you could create Value by altering the 4
factors
30 minutes

16. Value Propositions
At our company we value/believe ______________________________
This means we ______________________________
We seek to help Customers who ______________________________
Unlike our Competitors we ______________________________
Answering these questions:
Why should someone purchase your offering?
Why should someone purchase your offering instead of your competitors?
What is most worthwhile for someone to keep in mind about your offering?

17. Value Propositions
At 1-degree we believe that enlightened workplaces have the greatest
potential to shift global consciousness.
This means we only work with CEO’s who want to make culture a source
of differentiation and a platform for employee growth.
We seek to help mid-size organizations who need to borrow our help in
making this transformation.
Unlike others in this field we co-create the programs needed – we build
on those elements of Strategy, Culture, Purpose and Leadership that
already exist rather than force a complete system reset.

18. Error #1:
We treat all customers the same
Customer segmentation
Segmentation specific value propositions

19. Error #2:
When the Sales Cycle gets longer
we don’t adjust the sales people
The internet is making basic facts/information
available
Customers are smarter – competition is increasing
Higher margins are in task-sourcing or risk-sharing
The Sales Cycle is getting longer and more complicated
Not all reps can naturally manage more complex
sales cycles!

20. Levels of Complexity & Work Ability
A body of knowledge known as Requisite Theory or Stratified Systems
Theory
Researched and introduced by Dr. Elliott Jaques in the 1950’s
Implemented in Fortune 500 companies
A Whole System of beliefs that demonstrates a natural hierarchy that
functions optimally given the natural levels of human capability

21. Requisite for Sales
Work
Level
Problem Solving
Approach
Sales
Method
Contribution Time
Frame
V Concepts A or B or C Concept
ual
Presents new business model > 5 Years
IV A > B > C vs E > D > F
^
Yes/And
Trade-
offs
Positions two possible solutions to
address client issue(s) and can help
with impact tradeoffs
2-5 years
III A then B then C Follows
one or
more
threads
Articulates a narrative on how a
solution impacts client’s business
1-2 yrs
II A and B and C Look for
Patterns
Bird Dog – Provided an example
they find a pattern and bring in an
expert if needed
3-12 mos.
I A or B or C Feature-
Benefit
Highly transactional – ‘dial for
dollars’
< 3 months

22. Example:
Rep Capability - Distribution
Level of Work Rep Performance Rep Level of Capability
Level V
Level IV High
Manager
Rep 6
Level III
High
High
Rep 4
Rep 5
Level II
Not Making It
Not Making It
Rep 2
Rep 3
Level I Not Making It Rep 1

23. Sales Cycle Complexity
Tech example
Example
Do you want fries
with that?
Buys in volume
And
Wants consistent
budget costs
And
Wants to be legal
Recomend: SW
Licensing
Have a customer
rip and replace
their storage
system
Implications:
Cost/ impact on
other systems /
manageability
The implications
of moving a
datacentre to the
cloud balanced
against the
implications of
control and
security
Sales Cycle
Length
1 day - 3 months 3 months - 1 Yr 1-2 Years 2-5 Years
Sales Cycle Complexity
Measured in Length

24. Ideal State
Work Aligned with Ability
Level V
Level IV Rep 6
Level III Rep 4, 5
Level II Rep 2, 3
Level I Rep 1
Complexity 1 day - 3 months 3 months - 1
Year
1-2 Years 2-5 Years
Rep
Capability
Sales Cycle Complexity
Measured in Length
Overwhelmed or Reliance on Manager
Boring – limit exposure
Ideal Focus
Manage the balance

25. Manager Required
One Level up is required from Rep Capability so that the
manager add value, context
Level IV Seems to be Required for the range of sales cycles – if
every manager manages the complete range

26. What did we learn?
Do you have different products or offerings that have different
complexity?

27. Error #2:
When the Sales Cycle gets longer
we don’t adjust the sales people
The internet is making basic facts/information
available
Customers are smarter – competition is increasing
Higher margins are in task-sourcing or risk-sharing
The Sales Cycle is getting longer and more complicated
Not all reps can naturally manage more complex
sales cycles!

28. Error #3:
We work IN the business not ON
the business
Busy-ness rules – we mistake busy for effective
Rhythm of review – what is your practice?
Forecasting is strategy being executed

29. Sales
Management
FORECAST REVIEWS – MONTHLY EXECUTION OF
STRATEGY

30. Forecast Reviews
1. If the planning process made sense than a commitment to the Goal
is mutual
2. The Territory Plan or Account Plan makes the Objectives for the year
very clear
3. The Forecast review is as much about the actions and steps as it is
about the $ Forecast. If the rep is not taking the steps can you
reasonably expect the results to follow?
◦ Sales Management is about keeping reps on track with the right activities
or adjusting based on new information
◦ Every Sales Call therefore has an objective relative to the monthly
forecast discussion and the annual Sales Plan

31. October Forecast
Customer Opportunity Probability 30 Days 60 Days 90 Days
ABC Co. HR Project 30% $12,000 $19,500 -
Jones Bros. Dist. Refresh 90% - - $100,000
B-Town Inc. Brampton
Expansion
50% $ 9,000 - -
GrowTown International
Services
70% - $19,000 -
Tower Vendor of Record 75% - - $15,000
Run Rate $11,000 $11,000 $11,000
Forecast $32,000 $49,500 $126,000
Probability is mapped to Sales Stage that is relevant to your company

32. November Forecast
Customer Opportunity Probability 30 Days 60 Days 90 Days
ABC Co. HR Project 40% $12,000 $19,500 -
Jones Bros. Dist. Refresh 90% - - $100,000
GrowTown Vendor of Record 75% - $10,000 $10,000
Google Creative Building 20% $55,000 - -
City of Dallas Property Project 90% $17,000 - -
Run Rate $11,000 $11,000 $11,000
Forecast $95,000 $40,500 $121,000

33. CompareOctoberNovember

34. November Action Log
Action Who Owner/Help By When Purpose
Meet ABC Co. Project Lead Me – take
SME
Nov 10 Figure out why
this project is
stuck
Send Invites All
Customers
Me Nov 3 New Product
Launch
Post thought
leadership Buyer’s
Guide - LinkedIn
Me Nov 7 Support
Awareness

35. December Forecast
Starts with Review of November
Customer Opportunity Probability 30 Days 60 Days 90 Days
ABC Co. HR Project 40% $12,000 $19,500 -
Jones Bros. Dist. Refresh 90% - - $100,000
GrowTown Vendor of Record 75% - $10,000 $10,000
Google Creative Building 20% $55,000 - -
City of Dallas Property Project 90% $17,000 - -
Run Rate $11,000 $11,000 $11,000
Forecast $95,000 $40,500 $121,000
November

36. Sales Management
See your job as:
“Getting People Done Through Work”
Not
“Getting Work Done Through People”

37. Error #3:
We work IN the business not ON
the business
Busy-ness rules – we mistake busy for effective
Rhythm of review – what is your practice?
Forecasting is strategy being executed

38. Error #4:
We believe that compensation and incentives
are how we motivate performance

39. What Are Our Basic Needs and
Growth Needs
EvolutionofPersonalConsciousness
Satisfying your physiological needs for security;
staying alive and keeping your body healthy.
Satisfying your emotional need for belonging,
protection and connection.
Satisfying your emotional need to be recognized for
your skills, talents or qualities.
Satisfying your need for autonomy, freedom,
independence and adventure.
Satisfying your need for authenticity and finding
meaning and purpose in your life.
Satisfying your need to actualize your purpose by
influencing or impacting the world around you.
Satisfying your need to leave a legacy—to have
led a life of significance that will be remembered.
Growth
Needs
Basic
Needs
At any given moment in time, our values are a reflection of our unmet basic needs, and the
growth needs associated with the stage of psychological development we have reached.

40. What a Sales Rep Sounds Like:
EvolutionofPersonalConsciousness
Survival: I need to close this deal because I have
bills to pay or I am afraid of losing my job.
Relationship: My customer will buy from me
because of the strong relationship we have.
Self-Esteem: I want to be recognized as one of the
top performers in our company!
Transformation: I constantly stretch myself and
bring new ideas to my clients.
Cohesion: I want to understand my customers real
drivers and then match my solution up with that.
Make a Difference: I collaborate with my clients so
that my solutions make a significant impact.
Service: I don’t sell anything. I help my customers
to build their business by serving with all we have.
Growth
Needs
Basic
Needs
At any given moment in time, our values are a reflection of our unmet basic needs, and the
growth needs associated with the stage of psychological development we have reached.

41. What do Incentives drive?:
Survival: I need to close this deal because I have
bills to pay or I am afraid of losing my job.
Relationship: My customer will buy from me
because of the strong relationship we have.
Self-Esteem: I want to be recognized as one of the
top performers in our company!
Transformation: I constantly stretch myself and
bring new ideas to my clients.
Cohesion: I want to understand my customers real
drivers and then match my solution up with that.
Make a Difference: I collaborate with my clients so
that my solutions make a significant impact.
Service: I don’t sell anything. I help my customers
to build their business by serving with all we have.
Growth
Needs
Basic
Needs
How do we line up Incentives and Compensation plans so that they support strategy?
What mix of base to incentive makes sense?
Drives:
Drives:
Drives:
Drives:
Drives:
Drives:
Drives:

42. Error #4:
We believe that compensation and incentives
are 90% of high performance

43. Error #5:
We don’t manage leading indicators
We LOVE facts
We don’t like approximations

44. Leading Indicators

45. Lagging Indicators

46. Examples of Lagging Indicators
% of plan
Customer Satisfaction
On-time Delivery
Market Share
Win-Loss Ratios
Customer Retention
Customer Profitability
What do these
things have in
common?

47. Leading Indicators

48. Examples of Leading Indicators
Number of Sales People Trained/Certified
Number of prospects identified
Number of customer appointments each month
Number of Demonstrations completed
Number of prospects touched in Seminars
Size of the Sales Pipeline

49. Sales Cycle
Does The
Rep know
how to sell
the
product?
Do we have
any
identified
suspects?
Have we
had
technical
people on
site?
Have we
done a
proof of
concept?
Have we
presented
an ROI
Analysis?

50. How about you?
“ When we get technical people onsite we win”
“ When we do a demo we win”
“ When we present ROI cases we win”

51. Group Work
Break into groups of four
Share your leading indicators
Discuss how you could measure at least one new leading indicator
effectively (Make sure it is Strategically Aligned!!)
20 minutes

52. Error #5:
We don’t manage leading indicators
We LOVE facts
We don’t like approximations

53. Glancing Back
Yesterday – Strategy!
 Context
 Corporate Strategy Fundamentals – it is all about Differentiation
 How a strong Purpose inspires action and Differentiation
 The role that workplace Culture plays in Differentiation
 Aligning (Corporate, Marketing, Sales Management) Strategy
with Sales
Today – Sales Strategy & Execution!
 The 5 Worst Errors of Sales Strategy
1. Why we shouldn’t treat all customers the same
2. Why we need to adjust the sales people and management
processes when the sales cycle gets longer
3. Why a good sales forecast review is a strategic investment
4. How sales incentives and compensation are not everything
5. Why managing leading indicators is more strategic

54. Contact
Nick Foster
Cell: 416-275-0776
Email:
nick@culturexbrand.com

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