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© Solution Selling, Inc. 2009 Office Depot 2 Day Workshop for Major/Global/Public.

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1 © Solution Selling, Inc. 2009 Office Depot 2 Day Workshop for Major/Global/Public

2 © Solution Selling, Inc. 2009  PAGE 1 www.solutionselling.com Credit, Copyright, and Contact Information Trademark Notice: The following trademarks and service marks are owned by Sales Performance Holding Company (DBA: Solution Selling, Inc.) and licensed by Sales Performance International, LLC. Any questions concerning the use of these trademarks or whether a name that does not appear on this list is in fact a trademark of Solution Selling, Inc. or comments concerning this manual, workshop or presentation should be referred to Sales Performance International, LLC in the United States at the following address: 4720 Piedmont Row Drive, Suite 400 Charlotte, North Carolina 28210 USA Phone: 704.227.6500 FAX 704.364.8114 Solution Selling® and Situational Fluency Prompter®, Pain Sheets®, 9 Block Vision Processing Model® and Pain Chains® are registered trademarks and service marks of Solution Selling, Inc. AchieveGlobal®, Professional Selling Skills®, and Professional Prospecting Skills® are registered trademarks and service marks of AchieveGlobal, Inc. Professional Sales Coaching™ is a trademark and service mark of AchieveGlobal, Inc. All other referenced marks are those of their respective owners. Copyright Notice: This manual is a copyrighted work of Solution Selling, Inc. This manual may not be reproduced in whole or in part without the prior written consent of Solution Selling, Inc. Additionally, Sales Management and Coaching, Targeted Territory Selling, Major Account Selling, Strategic Opportunity Selling, Collaborative Sales Negotiations, Solution Prospecting and Executive-Level Selling are copyrighted materials of Solution Selling, Inc. © Solution Selling, Inc. 1985 – 2009 919-MAT

3 © Solution Selling, Inc. 2009  PAGE 2 www.solutionselling.com Solution Selling®: Workshop Objectives After completion of this Solution Selling® Workshop, you will be able to:  describe “how buyers buy” and align your selling activities to accordingly  recognize the difference between “latent pain” and “active vision” opportunities  conduct effective pre-call planning and research  stimulate interest and establish credibility with prospects  get prospects to share / admit high priority pain  engage in consultative dialogue that promotes the differentiating strengths of your offerings  gain access to “power” people within an opportunity  effectively qualify and disqualify opportunities based on objective decision criteria  better control and manage sell cycles  improve your chances of winning competitive opportunities  shorten sell cycles and avoid no decision  manage proof and internal resources  negotiate the steps leading to closure of a sell cycle

4 © Solution Selling, Inc. 2009  PAGE 3 www.solutionselling.com Office Depot Sales Process Elements Office Depot Major/Global/Public Sales Process Buying Process Define problems and opportunities Determine needs / requirements Select solution, evaluate risk, & finalize contracts Resolve issues & implement Evaluate success Sales Stage Plan and EngageDiagnosePropose and CloseImplementFulfill Verifiable Outcomes Opportunity Created in Sales Online Gain agreement to Evaluation Plan Signed ContractFirst orders placed Yield Probability 25%75%100% Sales Tools and Resources Key Players List Contact Strategy PSS® Pre-Call Planner Evaluation Plan Transition Plan Get-Give List Implementation Plan Reference Story Success Criteria

5 © Solution Selling, Inc. 2009  PAGE 4 www.solutionselling.com AchieveGlobal Models Will Be Used Within the New Sales Process Professional Selling Skills®: Needs Satisfaction Selling Process. Goal: To make informed, Mutually Beneficial Decisions Professional Prospecting Skills®: AchieveGlobal®, Professional Selling Skills®, and Professional Prospecting Skills® are registered trademarks and service marks of AchieveGlobal, Inc.

6 © Solution Selling, Inc. 2009  PAGE 5 www.solutionselling.com SPI and AchieveGlobal Tools Will Help Sellers Have Conversations with Customers at Various Points in their Lifecycle Loyal customers Grow C Share of Wallet “At-risk” customers Retain D Retention Newly acquired customers Convert B Conversion New customers Acquire A New Business

7 © Solution Selling, Inc. 2009  PAGE 6 www.solutionselling.com Talent Assessment  Are intuitive  Have conversations  Ask questions  Make presentations  Make statements  Process is key to success 80% 20 % Journeypeople Eagles

8 © Solution Selling, Inc. 2009  PAGE 7 www.solutionselling.com Situational Fluency What Buyers Should Expect from Salespeople Situational Knowledge Capability Knowledge People Skills Selling Skills How Do We Integrate? Situational Fluency: Integration of knowledge and skills by the salesperson for “eagle” performance

9 © Solution Selling, Inc. 2009  PAGE 8 www.solutionselling.com Selling Difficulties: Examples “Customers don’t see a reason to change from their current provider.” “We have a difficult time standing out from the competition. We all offer the same things.” “I am unable to determine who is the right decision maker.” “It’s hard to disqualify any opportunities, even if we don’t think we have a good chance of winning.” “We get involved in the opportunities too late.” “I lose control of the opportunity at the end of the sell cycle.” “I have trouble keeping my pipeline full for the upcoming quarters.”

10 © Solution Selling, Inc. 2009  PAGE 9 www.solutionselling.com Exercise: Introduction and Selling Difficulties Purpose:  To introduce yourself to the facilitation team and other participants  To identify your specific selling challenge(s) Activities:  Record the following information:  Your name and location  Your title and/or responsibility  The top selling difficulty that you may be experiencing Note:  Selling difficulties should be challenges over which you have control (i.e. no mention of “my manager wouldn’t…” or “my product or service doesn’t…”)

11 © Solution Selling, Inc. 2009  PAGE 10 www.solutionselling.com Key Selling Skills PLAN & ENGAGEDIAGNOSEPROPOSE & CLOSEIMPLEMENT Sales Process Steps Prospecting Developing Needs Developing and Delivering Value Managing Proof Accessing Power Qualifying / Disqualifying Controlling the Process Aligning Negotiating / Closing FULFILL

12 © Solution Selling, Inc. 2009  PAGE 11 www.solutionselling.com Negotiating Throughout the Sales Process Maintaining Your Control Quid Pro Quo: Latin, “something for something”  Set the tone for all things to be negotiated throughout the sales cycle  Use “quid pro quo” to:  Qualify the buyer and the opportunity  Move opportunities forward  Position your personal “power”  Minimize the cost of sale Quid Pro Quo and Negotiating Office Depot Sales Process Plan and Engage Diagnose Propose And Close ImplementFulfill

13 © Solution Selling, Inc. 2009  PAGE 12 www.solutionselling.com Shifting Buyer Concerns How Organizations Plan, Evaluate and Buy Phase I: Determine Needs Phase II: Evaluate Alternatives Phase III: Evaluate Risk Risk Price Solution Needs Buying Phases Time Level of Concern  Strategy  Projects  Issues  Priorities  Budgets Phase 0: Conduct Planning Decision to solve a priority problem

14 © Solution Selling, Inc. 2009  PAGE 13 www.solutionselling.com Basic Principle NO PAIN, NO CHANGE Pain = Problem, Critical Business Issue or Potential Missed Opportunity BASIC PRINCIPLE

15 © Solution Selling, Inc. 2009  PAGE 14 www.solutionselling.com Criteria for Pain  Job specific  How the prospect is:  Measured  Motivated  Recognized  Rewarded  Viewed by peers  Personal  Provides a compelling reason to act

16 © Solution Selling, Inc. 2009  PAGE 15 www.solutionselling.com Basis of Pain  Increasing  Costs  Competitive losses  Errors  Customer complaints  Returns  Employee turnover  Eroding  Profits  Market share  Service quality  Growth rate  Customer care  Compliance  Government regulation  Industry standard ? COMMON DENOMINATOR

17 © Solution Selling, Inc. 2009  PAGE 16 www.solutionselling.com Basic Principle: There are Four Levels of Buyer Need Level One: Latent Pain Level Two: Admitted Pain Level Three: Vision of a Solution Level Four: Active Evaluation BASIC PRINCIPLE

18 © Solution Selling, Inc. 2009  PAGE 17 www.solutionselling.com Conceptual Sales Territory  Power person driving evaluation  Business issues defined  Requirements documented  Evaluation team in place * Not Looking Active * Of all the people who could benefit from your offering… What % are actively evaluating?

19 © Solution Selling, Inc. 2009  PAGE 18 www.solutionselling.com How Organizations Evaluate and Buy Not LookingActive RequirementsCompany ACompany BCompany C

20 © Solution Selling, Inc. 2009  PAGE 19 www.solutionselling.com Sales Process Flow Model Potential opportunity starting points Conduct pre-call planning and research Stimulate interest Define “pain” or critical business issue Diagnose and create vision of company-biased solution Perform opportunity assessment Select competitive strategy Reengineer vision with company differentiators Negotiate access to power Develop & manage Evaluation Plan (sample steps) Summarize findings Prove capabilities Present preliminary solution Determine value analysis/s. criteria Gain all approvals (L/T/A) Conduct pre-proposal review Reach final agreement Measure and leverage success criteria Go? At power ? Yes No Yes No Latent or Admitted PainVision or Active Evaluation

21 © Solution Selling, Inc. 2009  PAGE 20 www.solutionselling.com Office Depot Sales Process: Plan and Engage Stage Buying Process Define problems and opportunities Sales StagePlan and Engage Activities New Business  Conduct opportunity planning  Conduct opportunity assessment Retain and Grow  Monitor client satisfaction  Research buying trends  Identify new opportunities across SKU’s and categories  Create interest  Gain initial meeting Sales Tools and Resources Dun & Bradstreet lists Hoovers Opportunity Assessment Pain Chain® Key Players List Contact Strategy Business Development Prompter Reference Story PPS Scorecard PPS Funnel Calculator Verifiable Outcomes Opportunity Created in Sales Online Yield Probability 0% New Business  Conduct opportunity planning  Conduct opportunity assessment Retain and Grow  Monitor client satisfaction  Research buying trends  Identify new opportunities across SKU’s and categories

22 © Solution Selling, Inc. 2009  PAGE 21 www.solutionselling.com Identify Opportunities through Planning Territory Account Opp Existing AccountsNew Accounts Territory Planning Account Planning Opportunity Planning

23 © Solution Selling, Inc. 2009  PAGE 22 www.solutionselling.com Planning Account Pre-call Planning and Research Key Areas to Research  Company  History  Nature of the business  Mission statement  Annual reports / 10Ks  Offerings  Description  Types  Uniqueness  Market analysis  Size  Location  Trends  Maturity  Share  Financials  Balance sheet  Income statement  Track record  Competition  How positioned  Strategies  Comparisons  Executive profiles  Work history  Education  Competencies  Potential critical business issues (pains) Opportunities in the Pipeline

24 © Solution Selling, Inc. 2009  PAGE 23 www.solutionselling.com Account Profile: Example Account Profile Company: Alliance Healthcare System is a collection of 5 hospitals and urgent care facilities, 39 Clinics, 7 medical practice groups, 12 community pharmacies, and 3 ambulatory care centers. Alliance is headquartered in the Denver, Colorado with locations throughout the western part of the US. Excluding medical professionals, Alliance has in the neighborhood of 30 to 65 white collar workers in each location. The business offices are located in the Denver facility. As part of the Alliance Mission Statement and Statement of Strategic Vision, the CEO stated that: “Alliance will be the model for outstanding patient care and as an unparallel place to work”. They were considered an innovative and market leader in the past. They have received numerous awards in recognition from the communities they serve. Offerings: Clinical and hospital services along with medical practices and pharmacies. The locations tend to operate on an autonomous basis with administrative support staffs. Alliance has significantly broadened their offering base through rapid acquisitions and mergers over the last 5 years. They are still in the process of standardizing processes across all locations. Market analysis: The market outlook for growth is good, but cost structure is not in line with industry average. Financials: The recent Annual Report stated last years net operating revenues at $2.8 billion. Also in the “Management Commentary” of the report was a directive from the VP of Finance to cut budgets across the board by 10%. Competition: Key competitors are Kaiser Permanente, Novant Health Systems, and Abbot Northwestern Health Care. Executive profiles: Michael Paisley, CEO for 5 years –formerly with Kaiser Permanente – visionary, cares about public image of AHS and depends on philanthropy to supplement operating revenues. Nat Greenfield, VP Finance for 10 years – graduate of Colorado University in hospital administration and CPA – scrutinizes costs. Alma Bettis, VP Facilities Management for 8 years – strong personality – formerly with Novant Health – very conservative. John Richmond, Office manager of Boulder clinic – with Alliance for 7 years– aggressive in promoting programs within Alliance. Morton Blank. Director of Purchasing for 2 years formerly with Boston Scientific as manager of logistics. Beth Hardin, VP of HR 5 years – degree in psychology formerly with University of Minnesota. Potential critical business issues: Increased costs from lack of standardization. Goals are to lower operating costs by using more economic ordering practices. Inventory management practices to lower carrying costs across multiple locations. Currently the autonomous operating environment has fostered “helter-skelter” purchasing practices thus leaving opportunity costs on the table. They have recently incurred increasing shipping costs of supplies. Recent employee survey across all locations indicated growing dissatisfactions with working environment and lack of reasonable “perks” cited. A write-in comment stated that “As hard as we work around here, it looks like we could have a decent lounge area with a real cup of coffee!” This is driving employees out of the office to get coffee and snacks.

25 © Solution Selling, Inc. 2009  PAGE 24 www.solutionselling.com Account Pre-call Planning and Research Information Sources  Review account’s website  Access public information  Annual Reports / 10-Ks Chairman’s Letter Financial highlights  Hoover’s Online (www.hoovers.com) * – Company overviews: financials, key people in the organization, industry-related news, competitor profiles, business & financial rankings, and company subsidiaries.www.hoovers.com  LinkedIn (www.linkedin.com) - Source for increasing network and association with past and present colleagueswww.linkedin.com  MSN Business Online (www.msnbc.com) Company information and news articles searchable at the world, national and local levels  OneSource (www.onesource.com) * – A single source for detailed company information for both public and private companies.www.onesource.com  Standard & Poor’s (www.standardandpoors.com) – Financial information about organizations around the world in multiple languages. Financial information includes credit ratings, equity research, global indices and articles pertaining to the financial impact associated with world events.www.standardandpoors.com  US Securities Exchange Commission (www.sec.gov) – Information on public filings from 1993 – presentwww.sec.gov  Yahoo Finance  Contact account’s shareholder department (e-mail) with specific questions – become a shareholder  Contact salespeople and account managers within the prospect organization * Good resource for researching minimal requirements of an Account Profile

26 © Solution Selling, Inc. 2009  PAGE 25 www.solutionselling.com Contact Strategy within Sales Online

27 © Solution Selling, Inc. 2009  PAGE 26 www.solutionselling.com Appointment Preparation When preparing for appointments, take advantage of the tools that are on the dashboard. MARKETING MATERIAL – you will also find this link on the left side of the Dashboard under the QUICK LINKS section. This takes you to an EXCEL document with links to some helpful marketing material. You can filter the material based on Sector, Product Group or Project name. Print them off, or go GREEN and email them to your customer before or after the sales call. Note: Make sure you use the STAR report to identify multiple categories to go after. Have backups and don’t stop if the customer agrees to purchase in a new category. Keep penetrating and offering solutions. TOOLS AND JOB AIDS – you will find this link on the left side of the Dashboard under the QUICK LINKS section. This link takes you to a series of CATEGORY CHEAT SHEETS that allow you to prepare for specific categories on customer calls. Print them off as needed and use them in your appointment planning. You will find the CALL PLANNER under this link. This Call Planner assists in developing your action plan and incorporates PSS skills. You will also find the SOLUTION SELLING® TEMPLATES at this link.

28 © Solution Selling, Inc. 2009  PAGE 27 www.solutionselling.com Account Pre-call Planning and Research What to Do with the Information  Identify key players  Identify potential areas for critical business issues (pains)  Match up key players with critical business issues (pains)  Align your capabilities to each key player and potential pain  Create an Initial Pain Chain® for the potential opportunity  Target most likely Power Sponsor  Determine your business development strategy leveraging the specific information gathered  Develop or select appropriate stimulating interest job aids to support the strategy Account-level activities Opportunity-level activities

29 © Solution Selling, Inc. 2009  PAGE 28 www.solutionselling.com Key Players List: Example Key Players (Job Title) Potential Pains VP Finance (corporate)  Missed budgets  Eroding margins  Increasing overall costs Office Manager (remote locations)  Increasing local operational costs  Decreasing employee productivity  Increasing shrinkage Human Resources Director (corporate)  Potential increase in insurance costs  Low employee morale  Increase in costs to hire and train employees Procurement (corporate)  Increasing cost of procurement  Unable to leverage buying power  Difficulty managing supply chain Director Environmental Strategy (corporate)  Declining public image related to being “green”  Difficulty meeting corporate “green” initiatives VP Facilities (corporate)  Increasing facility costs across all locations  Lack of standardization in all locations  Difficulty managing inventory VP IT / CIO  Difficulty managing multiple technologies  Difficulty implementing and integrating disparate systems with corporate standards  Inability to meet users’ technology demands

30 © Solution Selling, Inc. 2009  PAGE 29 www.solutionselling.com Key Players List: K-12 Example (District Roles) Key Players (Job Title) Potential Pains Grant Administrator / Director  Difficulty managing multiple grant projects  Potential risk of missing out on grant opportunities  Potential risk of non-compliance through inefficient reporting CFO / Superintendent of Finance  Difficulty understanding the guidelines of purchasing using stimulus money  Unaware of how to use existing programs (i.e. US Communities) to make purchases with stimulus money  High costs of ownership / doing business  Risk of exposure due to non-compliance on contracts  Decreased funding  Difficulty reducing costs Curriculum Director  Challenges complying with state teaching standards  Difficulty providing the right resources to teachers  Challenges meeting requirement s of federal grants / programs (i.e. no child left behind) Title 1 Coordinator  Difficulty interpreting how to allocate funds  Potential risk of non-compliance through inefficient reporting  Increased risks associated with improper use of funds (supplanting) Facilities Director  Difficulty meeting the various needs of the school immediately (i.e. furniture, maintenance, equipment, etc)  Challenging to determine which furniture will be used throughout the school  Increased pressure to use products that are “green” Director of Technology  Unable to provide technology to improve teaching and learning  Unable to support new / existing technologies  Difficulty delivering technology within timeframe and budget Secretary / Bookkeeper  Difficulty completing workload  Challenging to prioritize time associated with handling employees, parents, students, and other outside resources  Difficulty keeping up with changing systems  Increasing costs of supplies for schools Procurement Director / Business Director  Difficulty deciding on how and where to cut costs  Challenges driving compliance  Increased costs of managing multiple contracts and conducting bid process  Inefficient use of funds Director of Accounts Payable  Difficulty managing campus / department level receivers  Spend too much time managing multiple vendors and invoices Buyer  Challenging to keep up with managing multiple product categories  Difficulty keeping up with internal requests of end users  High inefficiency due to outdated processes

31 © Solution Selling, Inc. 2009  PAGE 30 www.solutionselling.com Key Players List: K-12 Example (Site Roles) Key Players (Job Title)Potential Pains Principals  Increasing student enrollment with declining teachers (ratio of teacher / student is too high)  Poor teacher quality (professional development)  Declining school reputation / community support  Not achieving fund-raising goals  Not achieving desired student achievement Teachers  Poor student achievement  Unable to achieve desired professional development  Sometimes unaware of approved procurement process  Difficulty completing workload  Lack of expertise relative to delivering elective / fine arts curriculum Secretary / Bookkeeper  Difficulty completing workload  Challenging to prioritize time associated with handling employees, parents, students, and other outside resources  Difficulty keeping up with changing systems  Increasing costs of supplies for school  Receives increasing pressure to utilize vendors that have a relationship with the school such as parents, community members

32 © Solution Selling, Inc. 2009  PAGE 31 www.solutionselling.com Basic Principle PAIN FLOWS THROUGH AN ENTIRE ORGANIZATION BASIC PRINCIPLE

33 © Solution Selling, Inc. 2009  PAGE 32 www.solutionselling.com Pain Chain® - “Cause and Effect” Job Title: Pain: Reason: Job Title: Pain: Reason: Job Title: Pain: Reason: Job Title: Pain: Reason: Job Title: Pain: Reason: Job Title: Pain: Reason:

34 © Solution Selling, Inc. 2009  PAGE 33 www.solutionselling.com Pain Chain®: Example Job Title:VP Finance Pain:Missed budgets Reason A:Potential increase in insurance costs Reason B:Increasing facility costs across all locations Job Title:VP Finance Pain:Missed budgets Reason A:Potential increase in insurance costs Reason B:Increasing facility costs across all locations Job Title:Procurement Pain:Increasing cost of procurement Reason A:Large number of suppliers Job Title:Procurement Pain:Increasing cost of procurement Reason A:Large number of suppliers Job Title:Office Manager Pain:Increasing local operational costs Reason A:High costs of carrying inventory Reason B: Increasing shipping costs Reason C: Inefficient ordering process because of multiple suppliers Job Title:Office Manager Pain:Increasing local operational costs Reason A:High costs of carrying inventory Reason B: Increasing shipping costs Reason C: Inefficient ordering process because of multiple suppliers Job Title:Human Resources Director Pain:Potential increase in insurance costs Reason A:Increasing risk liability due to employee leaving premises Job Title:Human Resources Director Pain:Potential increase in insurance costs Reason A:Increasing risk liability due to employee leaving premises Job Title:VP Facilities Pain:Increasing facility costs across all locations Reason A:Increasing operational costs at remote locations Reason B:Increasing procurement costs Job Title:VP Facilities Pain:Increasing facility costs across all locations Reason A:Increasing operational costs at remote locations Reason B:Increasing procurement costs

35 © Solution Selling, Inc. 2009  PAGE 34 www.solutionselling.com Pain Chain®: K-12 Example Job Title:Procurement Director / Business Director Pain:Inefficient procurement process Reason A: Spending too much on supplies for schools Reason B: Spending too much time and money processing invoices from multiple vendors Job Title:Procurement Director / Business Director Pain:Inefficient procurement process Reason A: Spending too much on supplies for schools Reason B: Spending too much time and money processing invoices from multiple vendors Job Title:CFO/ Superintendent of Finance Pain:Difficulty reducing costs Reason A:Document printing and storing costs are high Reason B: Unaware of additional savings opportunities related to purchasing items and the procurement process Job Title:CFO/ Superintendent of Finance Pain:Difficulty reducing costs Reason A:Document printing and storing costs are high Reason B: Unaware of additional savings opportunities related to purchasing items and the procurement process Job Title:Secretary / Bookkeeper Pain:Increasing costs of supplies for schools Reason A:Buy from most convenient vendor which may not be the best price Job Title:Secretary / Bookkeeper Pain:Increasing costs of supplies for schools Reason A:Buy from most convenient vendor which may not be the best price Job Title:Director of Accounts Payable Pain:Spending too much time and money managing multiple vendors and invoices Reason A:Teachers are choosing items from favorite catalogs but may not be best price Job Title:Director of Accounts Payable Pain:Spending too much time and money managing multiple vendors and invoices Reason A:Teachers are choosing items from favorite catalogs but may not be best price Job Title:Teachers Pain:Unaware of approved procurement process Reason A:Lack of resources and knowledge relative to process Job Title:Teachers Pain:Unaware of approved procurement process Reason A:Lack of resources and knowledge relative to process

36 © Solution Selling, Inc. 2009  PAGE 35 www.solutionselling.com Basic Principle YOU CAN’T SELL TO SOMEONE WHO CAN’T BUY BASIC PRINCIPLE

37 © Solution Selling, Inc. 2009  PAGE 36 www.solutionselling.com Approval Types and Roles Informal: Opportunity Level  Sponsor  Cannot make the buying decision  Provides information  Conducts internal selling  Provides access to power  Power Sponsor (a.k.a. “VP of Change”)  Enough influence (regardless of title) and authority to get it if they want it, even if unbudgeted  Can and will take you anywhere in the organization you need to go  Can and will negotiate the steps leading to a buying decision  Beneficiary  Adversary  End user Formal: Account Level  Legal / Technical / Administrative (Purchasing)  Financial  Ultimate Authority

38 © Solution Selling, Inc. 2009  PAGE 37 www.solutionselling.com Traditional Organization Chart: Example “The Budget Line”

39 © Solution Selling, Inc. 2009  PAGE 38 www.solutionselling.com Exercise Pain Chain® Purpose:  To identify and depict the cause and effect relationship that pain can have within an organization Activities:  In your group, identify an opportunity (from your pre-work) to use as an example  Identify the pain (and reasons) for a specific customer (by job title) that you are either engaged with or might encounter in a typical sales cycle  After you’ve recorded this information, trace the pain up and/or down the Pain Chain® to include three other job titles in the customer’s company impacted by this pain  Draw arrows between the Pain and reason to show the cause and effect relationship  Use the Pain Chain® Template on the following page  Be prepared to share information about the account / opportunity when presenting your work (e.g. potential Sponsor, potential Power Sponsor, general account / opportunity information, potential capabilities to be introduced, etc.) Notes:  Remember that a pain is personal. Pains can often be determined by analyzing how a key player is measured, motivated, recognized, rewarded, etc.  Pains are usually articulated in a negative manner (i.e. usually something is increasing or decreasing)  Feel free to make up any information you may not have to complete the exercise  Be prepared to debrief

40 © Solution Selling, Inc. 2009  PAGE 39 www.solutionselling.com Pain Chain®: Template Job Title: Pain: Reason A: Job Title: Pain: Reason A: Job Title: Pain: Reason A: Job Title: Pain: Reason A: Job Title: Pain: Reason A: Job Title: Pain: Reason A: Job Title: Pain: Reason A: Job Title: Pain: Reason A:

41 © Solution Selling, Inc. 2009  PAGE 40 www.solutionselling.com Office Depot Sales Process: Plan and Engage Stage Buying Process Define problems and opportunities Sales StagePlan and Engage Activities New Business  Conduct opportunity planning  Conduct opportunity assessment Retain and Grow  Monitor client satisfaction  Research buying trends  Identify new opportunities across SKU’s and categories  Create interest  Gain initial meeting Sales Tools and Resources Dun & Bradstreet lists Hoovers Opportunity Assessment Pain Chain® Key Players List Contact Strategy Business Development Prompter Reference Story PPS Scorecard PPS Funnel Calculator Verifiable Outcomes Opportunity Created in Sales Online Yield Probability 0% Create interest Gain initial meeting

42 © Solution Selling, Inc. 2009  PAGE 41 www.solutionselling.com Account Pre-call Planning and Research “What to Do with the Information” Revisited  Identify key players  Identify potential areas for critical business issues (pains)  Match up key players with critical business issues (pains)  Align your capabilities to each key player and potential pain  Create an Initial Pain Chain® for the potential opportunity  Target most likely Power Sponsor  Determine your business development strategy leveraging the specific information gathered  Develop or select appropriate stimulating interest job aids to support the strategy Account-level activities Opportunity-level activities

43 © Solution Selling, Inc. 2009  PAGE 42 www.solutionselling.com Business Development Best Practices  Remember who is responsible for your quota  Distinguish between prospecting vs. polling  Analyze funnel to plan activity and determine level of activity needed  Create interest and curiosity with your approach  Reserve sacred time for business development activities  Target the same job title or same industry (if possible)  Target high in the organization  Experiment with new approaches  Consider “timing and touches”  Measure results of various approaches  Remember the “SW” rule

44 © Solution Selling, Inc. 2009  PAGE 43 www.solutionselling.com Business Development: Messaging Considerations “Are You Curious?”  You have limited time to get attention and create curiosity  Put yourself in the mind of the buyer  Target pains / critical business issues: describe how someone else has solved a problem target a peer in a potentially similar situation select a problem they might have or to which they can relate  Communicate value  The communication should NOT:  focus on company history or new offerings  ask them to buy anything or schedule a meeting  ask the buyer to admit “pain”

45 © Solution Selling, Inc. 2009  PAGE 44 www.solutionselling.com Business Development Prompter: Example Business Development Prompter: New Opportunity This is Bill Hart (salesperson name) with Office Depot (your company). You and I haven’t spoken before, but we have been working with healthcare (specific industry) organizations for the last 10 (#) years. A common trend we are hearing lately from other Office Managers (job title) is their frustration (difficulty) with increasing operational costs (job title’s likely critical issue / pain) [resulting from high cost of carrying and shipping of various cleaning and break room supplies (articulate common reasons)]. We have been able to help our customers address this issue. Would you like to know how?

46 © Solution Selling, Inc. 2009  PAGE 45 www.solutionselling.com Business Development Prompter: Examples Business Development Prompter: New Opportunity This is __________ (salesperson name) with __________ (your company). You and I haven’t spoken before, but we have been working with __________ (specific industry) organizations for the last ___ (#) years. A common trend we are hearing lately from other __________ (job title) is their frustration (difficulty) with _______________ (job title’s likely critical issue / pain) [resulting from ______ (articulate common reasons)]. We have been able to help our customers address this issue. Would you like to know how? Business Development Prompter: Menu Approach (See Business Development e-mail) This is __________ (salesperson name) with __________ (your company). You and I haven’t spoken before, but we have been working with __________ (specific industry) organizations for the last ___ (#) years. The top three issues (concerns) we are hearing (lately) from other __________ (job title) are: (1) __________, (2) __________ and (3) __________ (job title’s top three likely critical issue / pain). [We’ve helped companies like: (1) __________, (2) __________ and (3) __________ (three reference-able organizations) address some of these issues.] Would you like to know how? Business Development Prompter: Referral Approach This is __________ (salesperson name) with __________ (your company). You and I haven’t spoken before, but __________, __________ at __________ (reference person’s name, title and organization) suggested that I give you a call. We were able to help her/him address his/her difficulty with __________ (reference person’s critical issue / pain) [resulting from ______ (articulate common reasons)]. Would you like to know how? Business Development Prompter: Multiple Contact Approach This is __________ (salesperson name) with __________ (your company). You might recall my last contact via [phone / email / seminar / webinar / tradeshow] where we described how we have been working with __________ (specific industry) organizations for the last ___ (#) years. We cited a common trend with __________ (job title) is their frustration (difficulty) with _______________ (job title’s likely critical issue / pain) [resulting from ______ (articulate common reasons)]. We have been able to help our customers address this issue. Would you like to know how?

47 © Solution Selling, Inc. 2009  PAGE 46 www.solutionselling.com Business Development Letter/e-mail: Example Steve, Office Depot is in the business of helping customers in the healthcare industry improve effectiveness and efficiencies of their operations by consolidating and simplifying purchases. We have been working with healthcare companies since 1999. Some of the chief concerns we hear lately include: □Increasing local operational costs □Decreasing employee productivity □Increasing shrinkage We have been able to help our customers successfully deal with these and other issues. I would like an opportunity to share some examples with you. If you are interested in learning how we have helped other office managers solve some very challenging issues, please call me 555-215-1111 and I will provide you with more information. In lieu of your call, I’ll plan a follow-up call on Wednesday of next week. Regards, Bill Hart Steve, Office Depot is in the business of helping customers in the healthcare industry improve effectiveness and efficiencies of their operations by consolidating and simplifying purchases. We have been working with healthcare companies since 1999. Some of the chief concerns we hear lately include: □Increasing local operational costs □Decreasing employee productivity □Increasing shrinkage We have been able to help our customers successfully deal with these and other issues. I would like an opportunity to share some examples with you. If you are interested in learning how we have helped other office managers solve some very challenging issues, please call me 555-215-1111 and I will provide you with more information. In lieu of your call, I’ll plan a follow-up call on Wednesday of next week. Regards, Bill Hart

48 © Solution Selling, Inc. 2009  PAGE 47 www.solutionselling.com Reference Story: Example REFERENCE STORY Situation:Office Manager in a large organization Critical Business Issue: Increasing local operational costs Reason(s):High cost of carrying and shipping of various cleaning and break room supplies Capability(s): (when, who, what) When ordering replenishment of cleaning and break room supplies the office manager could order only what was needed at the best price and have it delivered at the desired time without shipping costs. We provided……this capability Result:They were able to reduce operational costs by over $4,000.

49 © Solution Selling, Inc. 2009  PAGE 48 www.solutionselling.com Reference Story Format Situation:A customer job title and vertical industry Critical Business Issue: The pain of the title above (Anxiety words and phrases are very powerful here). Reason(s):One of the reasons for the critical issue biased to your product or service Capability(s): (when, who, what) In the words of your customer, the business event, the player(s) and specific capabilities needed to address the critical issue - “He/she/they told us when… who… what they needed” We provided…If the “solution” is described properly above, all we have to do here is say that we (our product / service / company) provided them those capabilities Result:Specific measurement is best, $ or %

50 © Solution Selling, Inc. 2009  PAGE 49 www.solutionselling.com Building a Compelling Value Proposition Your Offering Customer B Situation Customer A Situation Initial Value Proposition Reference Story Projected Results Measured Results EXTRAPOLATE

51 © Solution Selling, Inc. 2009  PAGE 50 www.solutionselling.com Components of an Initial Value Proposition A simple, clear statement of:  Your target prospect  Key quantified benefits you may offer them to address their potential critical business issue(s) Based on:  Your knowledge of the specific value already achieved by an existing customer  Your company’s experience / knowledge of the prospect with a comparable situation  Your initial projection of the value to that prospect

52 © Solution Selling, Inc. 2009  PAGE 51 www.solutionselling.com Initial Value Proposition: Example for Local Office Manager VALUE PROPOSITION “We believe that Alliance Healthcare System should be able to reduce expenses by approximately $4,160 per location through the ability to streamline the ordering and delivery process for cleaning and break room supplies.” Value Proposition Assumptions:  Alliance location has 65 WCW  Customers of this size typically spend $257/WCW  Average savings is $64 per WCW

53 © Solution Selling, Inc. 2009  PAGE 52 www.solutionselling.com Initial Value Proposition: Example for VP Facilities VALUE PROPOSITION “We believe that Alliance Healthcare System should be able to reduce overall expenses by approximately $126,000-274,000 through the ability to streamline the ordering and delivery process for cleaning and break room supplies.” Value Proposition Assumptions:  Alliance locations have approximately 30-65 WCW in each location  Alliance has 66 locations  Customers of this size typically spend $257 per WCW  Average savings is $64 per WCW

54 © Solution Selling, Inc. 2009  PAGE 53 www.solutionselling.com Initial Value Proposition: Format and Template VALUE PROPOSITION TEMPLATE “We believe that _____________________________ should be able to __________________________________________________________ (by $_______________ or _______________%) through the ability to ________________________________________ as a result of ___________________________________________.” VALUE PROPOSITION TEMPLATE “We believe that _____________________________ should be able to __________________________________________________________ (by $_______________ or _______________%) through the ability to ________________________________________ as a result of ___________________________________________.” Value Proposition assumptions being made:  ____________________________________ Value Proposition Format: We believe that [ Client name ] should be able to [ improve what ] by [ how much, what %? ] through the ability to [ do what? ] as a result of [ what enabling capabilities? ].

55 © Solution Selling, Inc. 2009  PAGE 54 www.solutionselling.com Exercise Stimulating Interest Purpose:  To allow you and/or your team to develop specific job aids aimed at stimulating interest with the prospect organization by describing how you have helped others solve business problems Activities:  Identify a person from your Pain Chain® you would like to contact (most likely Power Sponsor) and build a Business Development Prompter  Build a Reference Story for a past success or use a typical example of an opportunity you may encounter on a daily basis. Elements of this exercise may be fictitious or you may have to fabricate metrics for the results portion of the story (if results have not been measured as of yet) Note:  Worksheets have been provided on the pages that follow

56 © Solution Selling, Inc. 2009  PAGE 55 www.solutionselling.com Business Development Prompter: Examples Business Development Prompter: New Opportunity This is _____________________ (salesperson name) with _______________________(your company). You and I haven’t spoken before, but we have been working with ________________________ (specific industry) organizations for the last ___ (#) years. A common trend we are hearing lately from other ___________________________ (job title) is their frustration (difficulty) with _____________________________________________________ (job title’s likely critical issue / pain) [resulting from _________________________________________________ (articulate common reasons)]. We have been able to help our customers address this issue. Would you like to know how? Business Development Prompter: Menu Approach (See Business Development e-mail) This is _________________________(salesperson name) with ________________________ (your company). You and I haven’t spoken before, but we have been working with ______________________ (specific industry) organizations for the last ___ (#) years. The top three issues (concerns) we are hearing (lately) from other _______________ (job title) are: (1) _______________________________, (2) ___________________________ and (3) _________________________ (job title’s top three likely critical issue / pain). [We’ve helped companies like: (1) __________________, (2) _________________________ and (3) ______________________________ (three reference-able organizations) address some of these issues.] Would you like to know how?

57 © Solution Selling, Inc. 2009  PAGE 56 www.solutionselling.com Business Development Prompter: Examples Business Development Prompter: Referral Approach This is ________________ (salesperson name) with __________________ (your company). You and I haven’t spoken before, but ________________________________ at ______________________________ (reference person’s name, title and organization) suggested that I give you a call. We were able to help her/him address his/her difficulty with ______________________________________________ (reference person’s critical issue / pain) [resulting from _______________________________________________ (articulate common reasons)]. Would you like to know how? Business Development Prompter: Multiple Contact Approach This is _______________________ (salesperson name) with ____________________________ (your company). You might recall my last contact via [phone / email / seminar / webinar / tradeshow] where we described how we have been working with ___________________________ (specific industry) organizations for the last ___ (#) years. We cited a common trend with _______________________________________ (job title) is their frustration (difficulty) with _________________________________________ (job title’s likely critical issue / pain) [resulting from ___________________________________________________ (articulate common reasons)]. We have been able to help our customers address this issue. Would you like to know how?

58 © Solution Selling, Inc. 2009  PAGE 57 www.solutionselling.com Reference Story: Format and Template FORMATREFERENCE STORY TEMPLATE Job title / industry: A customer job title and vertical industry Critical business issue: The pain of the above title One of the reasons: One of the reasons for the critical business issue biased to your product / service Capabilities (when, who, what): In the words of your customer, the business event, the player(s) and specific capabilities needed to address the critical business issue (He / She / They told us they needed a way…) We provided: If the “solution” is described properly above, all we have to do here is say that we provided those capabilities Result: Specific measurement is best ($ or %) Situation: Critical Business Issue: Reason(s): Capability(s): (when, who, what) We provided……this capability Result:

59 © Solution Selling, Inc. 2009  PAGE 58 www.solutionselling.com Quid Pro Quo in Plan and Engage “What things would the customer want from you and what would you want from the customer?”

60 © Solution Selling, Inc. 2009  PAGE 59 www.solutionselling.com Office Depot Sales Process: Diagnose Stage Buying Process Define problems and opportunities Determine needs / requirements Select solution, evaluate risk, & finalize contracts Resolve issues & implement Evaluate success Sales Stage Plan and EngageDiagnose Activities New Business  Conduct opportunity planning  Conduct opportunity assessment Retain and Grow  Monitor client satisfaction  Research buying trends  Identify new opportunities across SKU’s and categories  Create interest  Gain initial meeting  Get pain admitted  Diagnose admitted pain and create or reengineer vision of Sponsor  Negotiate access to power  Confirm dialogue and agree upon next steps  Diagnose admitted pain and create or reengineer vision of Power Sponsor  Determine evaluation criteria and propose next steps  Confirm dialogue and agree upon plan of next steps Sales Tools and Resources Dun & Bradstreet lists Hoovers Opportunity Assessment Pain Chain® Key Players List Contact Strategy Business Development Prompter Reference Story PPS Scorecard PPS Funnel Calculator  PSS® Pre-Call Planner  9-Block Vision Processing Model®  Pain Sheet®  Sponsor Letter/e-mail  Power Sponsor Letter /e-mail  Evaluation Plan Verifiable Outcomes Opportunity Created in Sales Online Gain agreement to Evaluation Plan Yield Probability 0%25% Get pain admitted

61 © Solution Selling, Inc. 2009  PAGE 60 www.solutionselling.com Getting Pain Admitted Why Would Buyers Admit Pain? Because the salesperson has:  Built rapport naturally  Established trustworthiness (sincerity + competence)  Established credibility  Demonstrated situational knowledge

62 © Solution Selling, Inc. 2009  PAGE 61 www.solutionselling.com Basic Principles PEOPLE BUY FROM PEOPLE POWER BUYS FROM POWER BASIC PRINCIPLE BASIC PRINCIPLE

63 © Solution Selling, Inc. 2009  PAGE 62 www.solutionselling.com Strategic Alignment: Steps 1 and 2 Opening of the Call BUYER PERSPECTIVE / DECISIONSALESPERSON ACTION “Do I even want to listen to this salesperson?”  1. Establish Rapport Naturally 2. Introduce Call “Is this person different from other salespeople?” “Is s/he sincere?... competent? “Am I ready to share critical information with this person?”   State call agenda  Share “we help” theme  Provide company / personal introduction  Share relevant Reference Story (or progress-to-date)  Transition to “getting pain admitted”

64 © Solution Selling, Inc. 2009  PAGE 63 www.solutionselling.com Strategic Alignment Prompter (Steps 1 and 2) Step 2: Introduce Call  State call agenda * What I’d like to do today (or… during the next ___ minutes) is to: Introduce you to Office Depot (my company) Tell you about another Office Manager we have worked with I would then like to learn (more) about you and your situation… …at that point, the two of us will be able to make a mutual decision as to whether or not we should proceed any further. Is this okay with you?”  Share “we help” theme “Office Depot is in the business of helping customers in the healthcare industry improve effectiveness and efficiencies of their operations by consolidating and simplifying purchases.”  Provide company / personal introduction * FACTS □Office Depot won the “Outstanding environmental leadership” award from Office Products International □ We also won a Stevie award for sales and customer service □ I personally have worked in the healthcare industry for 10 years  Share relevant Reference Story (or progress-to-date) “A particular situation you might be interested in is another healthcare (organization type). Their office manager (job title) was having difficulty with increasing operational costs (pain). The reason for her difficulty was high cost of carrying and shipping of various cleaning and break room supplies. What she needed was some way to (describe capabilities) when ordering replenishment of cleaning and break room supplies the office manager could order only what was needed at the best price and have it delivered at the desired time without shipping costs. We provided them with those capabilities and the result was they were able to save over $4,000 in operational costs per year (specific result).”  Transition to “getting pain admitted” “But enough about Office Depot. Tell me (more) about you and your situation.” * Alter steps for existing vs. new relationships as relevant

65 © Solution Selling, Inc. 2009  PAGE 64 www.solutionselling.com Strategic Alignment: Step 3 Getting Pain Admitted BUYER PERSPECTIVE / DECISIONSALESPERSON ACTION 3. Get Pain Admitted “Do I want to admit my critical business issue (pain) to this salesperson?”   Ask Situational Questions (if necessary)  Ask Menu of Pain Questions (if necessary)  Prioritize the admitted pain

66 © Solution Selling, Inc. 2009  PAGE 65 www.solutionselling.com Getting Pain Admitted Potential Buyer Responses “But enough about (my company). Tell me about you and your situation.” Potential Buyer Responses: Salesperson’s Actions: 1. 2. 3. 4. 5.

67 © Solution Selling, Inc. 2009  PAGE 66 www.solutionselling.com Getting Pain Admitted Question Examples SITUATIONAL QUESTIONS MENU OF PAIN QUESTIONS “The top three difficulties we are hearing from other Office Managers these days include:  Increasing local operational costs  Decreasing employee productivity  Increasing shrinkage …are you facing any of these issues today?” OR …are you curious how we have helped our customers deal with these issues?” “Today, how are you procuring all of your office, cleaning, and break room supplies?” “How do you place orders?” “How are orders received, distributed, and paid for?”

68 © Solution Selling, Inc. 2009  PAGE 67 www.solutionselling.com Anxiety Creation: Example 1. Anxiety Question: “How would you feel if one of your top executives made an unannounced visit and they found different items from their location because you order differently from what the executive expected?” 2. Capability Question: “What if there were a way…when ordering cleaning and break room supplies you had one specific, standardized list of approved corporate items, which included your executive’s favorite coffee, available for next day delivery… would that help?” 3. Office Depot Differentiator: Each location would have a customized shopping list with pre-approved items available for purchasing.

69 © Solution Selling, Inc. 2009  PAGE 68 www.solutionselling.com Office Depot Sales Process: Diagnose Stage Buying Process Define problems and opportunities Determine needs / requirements Select solution, evaluate risk, & finalize contracts Resolve issues & implement Evaluate success Sales Stage Plan and EngageDiagnose Activities New Business  Conduct opportunity planning  Conduct opportunity assessment Retain and Grow  Monitor client satisfaction  Research buying trends  Identify new opportunities across SKU’s and categories  Create interest  Gain initial meeting  Get pain admitted  Diagnose admitted pain and create or reengineer vision of Sponsor  Negotiate access to power  Confirm dialogue and agree upon next steps  Diagnose admitted pain and create or reengineer vision of Power Sponsor  Determine evaluation criteria and propose next steps  Confirm dialogue and agree upon plan of next steps Sales Tools and Resources  Dun & Bradstreet lists  Hoovers  Opportunity Assessment  Pain Chain®  Key Players List  Contact Strategy  Business Development Prompter  Reference Story  PPS Scorecard  PPS Funnel Calculator  PSS® Pre-Call Planner  9-Block Vision Processing Model®  Pain Sheet®  Sponsor Letter/e-mail  Power Sponsor Letter/ e-mail  Evaluation Plan Verifiable Outcomes Opportunity Created in Sales Online Gain agreement to Evaluation Plan Yield Probability 0%25% Diagnose admitted pain and create or reengineer vision of Sponsor

70 © Solution Selling, Inc. 2009  PAGE 69 www.solutionselling.com Basic Principle DIAGNOSE BEFORE YOU PRESCRIBE BASIC PRINCIPLE

71 © Solution Selling, Inc. 2009  PAGE 70 www.solutionselling.com Sales Performance Over Time Time Performance PM P = Performance M = Morale

72 © Solution Selling, Inc. 2009  PAGE 71 www.solutionselling.com Strategic Alignment: Step 4 Develop Needs / Customer Buying Vision BUYER PERSPECTIVE / DECISIONSALESPERSON ACTION 4. Develop Needs / Customer Buying Vision “Does this person understand my business issue and the reasons contributing to it? “Has this person thoroughly diagnosed my situation?” “Should I discuss the impact that my issue has on others in the organization?” “Do I agree with the capabilities suggested and the value articulated?” “Do I want to take responsibility for solving this problem?”   Diagnose and create a vision of a company-biased solution or  Reengineer a vision with company differentiators  Participate in existing vision  Introduce differentiators  Determine underlying pain (if not admitted)

73 © Solution Selling, Inc. 2009  PAGE 72 www.solutionselling.com Level One: Level One: Latent Pain Level Two: Level Two: Admitted Pain Level Three: Level Three: Vision of a Solution (Buying Vision) Level Four: Level Four: Active Evaluation Navigating the Levels of Buyer Need Stimulating Interest Job Aids 9 Block Vision Processing Model®

74 © Solution Selling, Inc. 2009  PAGE 73 www.solutionselling.com I1 I3 C1 C2 C3 R1 R2 R3 I2 Architecture of the 9 Block Vision Processing Model® Diagnose ReasonsVisualize CapabilitiesExplore Impact Open Control Confirming PAIN BUYING VISION 3 Question Types 3 Areas of Exploration Customer’s Point of View Salesperson’s Point of View Combined Point of View

75 © Solution Selling, Inc. 2009  PAGE 74 www.solutionselling.com C1I1 R1 C2I2 R2 C3I3R3 9 Block Vision Processing Model® - Vision Creation Diagnose ReasonsVisualize CapabilitiesExplore Impact Open Control Confirming PAIN BUYING VISION 74 1 85 2 963 “Besides yourself, who in your organization is impacted by this (pain) and how are they impacted?” “Is this (pain) causing… (another pain)?” “If so, would (other job title) also be concerned?” “From what I just heard, (repeat the “who” and “how”) are impacted. It sounds like this is not just your problem, but a ______ problem! Is that correct?” “What is it going to take for you to be able to (achieve your goal)?” “Could I try a few ideas on you?” “You mentioned (recall reason)… Would it help if … Capability Vision A?... Capability Vision B?... Capability Vision C?... “So, IF you had the ability to (summarize capability visions), THEN could you (achieve your goal)?” “Tell me about it, what is causing you to have this… (repeat pain)?” “Is it because… Reason A?… Reason B?... Reason C?... “So, the reasons for your (pain) are…? Is that correct?”

76 © Solution Selling, Inc. 2009  PAGE 75 www.solutionselling.com Pain Sheet® - Situational Fluency Prompter®: Example Pain: Job Title & Industry: Offering: Increasing local operational costs Office Manager (local location), Healthcare Cleaning Break Room Supplies REASONS (R2)IMPACT (I2)CAPABILITIES (C2) Is it because; Today…?Is this (pain) causing…?What if…; Would it help if…? A Tell me about the additional inventory you need to carry? Increasing facility costs across all locations? Is the VP Facilities concerned? Budgets to be missed? Is the VP Finance concerned? AWhen:Ordering replenishment of cleaning and break room supplies Who:You What:Had a way to order only what you need at the best price so that your cost to carry is minimized? B What is the shipping and fulfillment process used by current suppliers today? BWhen:Inventory has reached safety stock level Who:You What:Could go to your personalized landing page, identify items you need, check inventory, place your order, and have it delivered at your desired time without shipping costs? C What is the process for placing orders with multiple suppliers? CWhen:Ordering multiple categories of items Who:You What:Had the ability to utilize a single website to order all items at once and not have to use multiple ordering processes and receive one delivery with one invoice?

77 © Solution Selling, Inc. 2009  PAGE 76 www.solutionselling.com Pain Sheet® - Situational Fluency Prompter®: K-12 Example Pain: Job Title & Industry: Offering: Difficulty reducing costs CFO / Superintendent of Finance, School District US Communities, DPS REASONS (R2)IMPACT (I2)CAPABILITIES (C2) Is it because; Today…?Is this (pain) causing…?What if…; Would it help if…? A Document printing and storing costs are high? Increase in budget cuts and higher use of funds for non-core functioning areas and loss of staff positions? Lack of respect /confidence from the community? School reputation to be at risk? Is the Superintendent concerned? Potential lack of confidence that procurement efficiencies & process improvements are being fully leveraged? Is the Board of Education concerned? AWhen:Curriculum or other materials need to be printed Who:Employees What: So that: Could store all documents, forms, materials, etc. on a virtual website and have them printed as needed and delivered without an additional delivery charge facilities costs could be reduced? B Unaware of additional savings opportunities related to purchasing items and the procurement process? BWhen:Determining how to reduce costs Who:You What: So that: Could be provided with a cost analysis outlining viable alternative to improve efficiencies in the procurement process additional savings opportunities could be realized?

78 © Solution Selling, Inc. 2009  PAGE 77 www.solutionselling.comI2C2 RI R2 Pain Sheet® - Situational Fluency Prompter® Where it is Used I1C1 R3I3C3 AA BB CC DD

79 © Solution Selling, Inc. 2009  PAGE 78 www.solutionselling.com Basic Principle THE SOLUTION MUST EQUAL THE BUYING VISION BASIC PRINCIPLE

80 © Solution Selling, Inc. 2009  PAGE 79 www.solutionselling.com I2C2 RI R2 Building Visions I1C1 R3I3C3 “My operational costs are increasing!” “What if you could lower your operational costs?” “What if you could get the best price on your cleaning and break room supplies?” “What if when ordering replenishment of cleaning and break room supplies (who) you had a way to order only what you need at the best price so that your cost to carry is minimized? ” What if when inventory has reached safety stock level (who) you could go to your personalized landing page, identify items you need, check inventory, place your order, and have it delivered at your desired time without shipping costs?” “IF you could order only the cleaning and break room supplies you needed, and when you needed to order them you could go to your personalized landing page and have them delivered at your desired time without shipping, THEN could you lower your operational costs?” Pain: Goal: Capability: Capability Vision: Buying Vision PAIN BUYING VISION

81 © Solution Selling, Inc. 2009  PAGE 80 www.solutionselling.com Exercise: Vision Creation Role Play Strategic Alignment (Step 4) Purpose:  To give a salesperson practice on how to diagnose the reasons for a prospect’s critical business issue or pain, explore the impact of that pain on the organization and help the buyer visualize the capabilities needed to address their pain Activities:  Break into role play groups  Follow the blocks in the numbered order using the prompter provided (9 Block Vision Processing Model® - Vision Creation)  Be sure to use the Pain Sheet® (found within the following pages) to assist in the control questions row on the 9 Block Vision Processing Model®  Each person should get an opportunity to play the “buyer” and the “salesperson”. Use an observer in the rotation if possible  Be prepared to debrief Note:  Focus on following the process, not on personal skills such as eye contact

82 © Solution Selling, Inc. 2009  PAGE 81 www.solutionselling.com 9 Block Vision Processing Model® - Vision Creation Diagnose ReasonsVisualize CapabilitiesExplore Impact Open Control Confirming PAIN BUYING VISION 74 1 85 2 963 “Besides yourself, who in your organization is impacted by this (pain) and how are they impacted?” “Is this (pain) causing… (another pain)?” “If so, would (other job title) also be concerned?” “From what I just heard, (repeat the “who” and “how”) are impacted. It sounds like this is not just your problem, but a ______ problem! Is that correct?” “What is it going to take for you to be able to (achieve your goal)?” “Could I try a few ideas on you?” “You mentioned (recall reason)… Would it help if … Capability Vision A?... Capability Vision B?... Capability Vision C?... “So, IF you had the ability to (summarize capability visions), THEN could you (achieve your goal)?” “Tell me about it, what is causing you to have this… (repeat pain)?” “Is it because… Reason A?… Reason B?... Reason C?... “So, the reasons for your (pain) are…? Is that correct?” C1I1 R1 C2I2 R2 C3I3R3

83 © Solution Selling, Inc. 2009  PAGE 82 www.solutionselling.com Pain Sheet® - Situational Fluency Prompter®: Example Pain: Job Title & Industry: Offering: Increasing local operational costs Office Manager (local location), Healthcare Cleaning Break Room Supplies REASONS (R2)IMPACT (I2)CAPABILITIES (C2) Is it because; Today…?Is this (pain) causing…?What if…; Would it help if…? A Tell me about the additional inventory you need to carry? Increasing facility costs across all locations? Is the VP Facilities concerned? Budgets to be missed? Is the VP Finance concerned? A When: Ordering replenishment of cleaning and break room supplies Who:You What:Had a way to order only what you need at the best price so that your cost to carry is minimized? B What is the shipping and fulfillment process used by current suppliers today? BWhen:Inventory has reached safety stock level Who:You What:Could go to your personalized landing page, identify items you need, check inventory, place your order, and have it delivered at your desired time without shipping costs? C What is the process for placing orders with multiple suppliers? CWhen:Ordering multiple categories of items Who:You What:Had the ability to utilize a single website to order all items at once and not have to use multiple ordering processes and receive one delivery with one invoice?

84 © Solution Selling, Inc. 2009  PAGE 83 www.solutionselling.com Pain Sheet® - Situational Fluency Prompter®: K-12 Example Pain: Job Title & Industry: Offering: Difficulty reducing costs CFO / Superintendent of Finance, School District US Communities, DPS REASONS (R2)IMPACT (I2)CAPABILITIES (C2) Is it because; Today…?Is this (pain) causing…?What if…; Would it help if…? A Document printing and storing costs are high? Increase in budget cuts and higher use of funds for non-core functioning areas and loss of staff positions? Lack of respect /confidence from the community? School reputation to be at risk? Is the Superintendent concerned? Potential lack of confidence that procurement efficiencies & process improvements are being fully leveraged? Is the Board of Education concerned? AWhen:Curriculum or other materials need to be printed Who:Employees What: So that: Could store all documents, forms, materials, etc. on a virtual website and have them printed as needed and delivered without an additional delivery charge facilities costs could be reduced? B Unaware of additional savings opportunities related to purchasing items and the procurement process? BWhen:Determining how to reduce costs Who:You What: So that: Could be provided with a cost analysis outlining viable alternative to improve efficiencies in the procurement process additional savings opportunities could be realized?

85 © Solution Selling, Inc. 2009  PAGE 84 www.solutionselling.com Value Justification / Analysis Start with the End in Mind Profits from increased revenueExamples: Capabilities provided by your product / service that help the buyer increase revenues and profits  Time-to-market  Ability to react to competition  Increased market share  Increased order volume Reduced costs from displaced costsExamples: Capabilities provided by your product / service that help the buyer eliminate an existing cost and improve profits  Headcount / labor costs  Equipment / maintenance costs  Inventory costs Reduced costs from avoided costsExamples: Capabilities provided by your product / service that help the buyer eliminate a future cost  Overtime  Employee turnover  Equipment downtime Intangible benefitsExamples: Capabilities provided by your product / service that help the buyer but either have no dollar value or the buyer is unwilling to assign a dollar value  Employee morale  Company image Note: salesperson must know how his/her offering should impact the customer’s business

86 © Solution Selling, Inc. 2009  PAGE 85 www.solutionselling.com Enhancing the Buyer’s Vision with Value Value  Measure the size of the pain  Add measurement to control questions in Box R2 and I2 to establish the cost of doing business today  Compute and confirm total cost of the way they are doing it today in Box R3 (and I3) Vision  Create descriptive action visions of how one would be able to better function after having your capabilities  Link cost uncovered in Box R2 with capability visions described in Box C2  Summarize capability visions into a buying vision in C3 while restating the total value Emotion  Display empathy when appropriate

87 © Solution Selling, Inc. 2009  PAGE 86 www.solutionselling.com 9 Block Vision Processing Model® - Vision Creation Diagnose ReasonsVisualize CapabilitiesExplore Impact Open Control Confirming PAIN $ BUYING VISION $ 74 1 85 2 963 C1I1 R1 C2I2 R2 C3I3R3 “Besides yourself, who in your organization is impacted by this (pain) and how are they impacted?” “Is this (pain) causing… (another pain)?” “If so, would (other job title) also be concerned?” #?, %?, $? “From what I just heard, (repeat the “who” and “how”) are impacted. It sounds like this is not just your problem, but a ______ problem! Is that correct?” “What is it going to take for you to be able to (achieve your goal)?” “Could I try a few ideas on you?” “You mentioned (recall reason)… Would it help if … Capability Vision A?... Capability Vision B?... Capability Vision C?... “So, IF you had the ability to (summarize capability visions), THEN could you (achieve your goal)?” “Tell me about it, what is causing you to have this… (repeat pain)?” “Is it because… Reason A?… Reason B?... Reason C?... #?, %?, $? “So, the reasons for your (pain) are…? Is that correct?”

88 © Solution Selling, Inc. 2009  PAGE 87 www.solutionselling.com Pain Sheet® - Situational Fluency Prompter®: Example Pain: Job Title & Industry: Offering: Increasing local operational costs Office Manager (local location), Healthcare Cleaning Break Room Supplies REASONS (R2)IMPACT (I2)CAPABILITIES (C2) Is it because; Today…?Is this (pain) causing…?What if…; Would it help if…? A Tell me about the additional inventory you need to carry? Is it a high cost to carry the additional inventory? What is the cost? Is there a minimum order you have to place to avoid additional charges? How much do you spend on additional charges? What is the minimum order? How much space is devoted to carrying inventory? What is the average days of inventory? What is the monthly value per month to carry over? What is your shrinkage factor? Do you incur any corporate chargebacks? What is the spoilage rate? Increasing facility costs across all locations? Is the VP Facilities concerned? Budgets to be missed? Is the VP Finance concerned? A When: Ordering replenishment of cleaning and break room supplies Who:You What:Had a way to order only what you need at the best price so that your cost to carry is minimized? B What is the shipping and fulfillment process used by current suppliers today? Is shipping costly? What are your freight costs for all of your supplies? How many suppliers do you have? Are you leveraging any current discounts for shipping with suppliers? How many orders do you place per month? What is the cost to receive? What is the impact on the environment of doing it this way? BWhen:Inventory has reached safety stock level Who:You What:Could go to your personalized landing page, identify items you need, check inventory, place your order, and have it delivered at your desired time without shipping costs? C What is the process for placing orders with multiple suppliers?? Today, how many different suppliers and ordering processes do you have? How many FTE’s does it take? How many orders do you place per month? How long does it take to place each order? CWhen:Ordering multiple categories of items Who:You What:Had the ability to utilize a single website to order all items at once and not have to use multiple ordering processes and receive one delivery with one invoice?

89 © Solution Selling, Inc. 2009  PAGE 88 www.solutionselling.com Pain Sheet® - Situational Fluency Prompter®: K-12 Example Pain: Job Title & Industry: Offering: Difficulty reducing costs CFO / Superintendent of Finance, School District US Communities, DPS REASONS (R2)IMPACT (I2)CAPABILITIES (C2) Is it because; Today…?Is this (pain) causing…?What if…; Would it help if…? A Document printing and storing costs are high? How do you print and store documents today? Do you have an internal print shop or is it outsourced? (If internal) How much does it cost to run the print shop? (If outsource) How many suppliers are you currently using? Are you able to capitalize on volume discounts? Is there a minimum order requirement? How much do you spend annually on outsourcing of printing? Increase in budget cuts and higher use of funds for non-core functioning areas and loss of staff positions? Lack of respect /confidence from the community? School reputation to be at risk? Is the Superintendent concerned? Potential lack of confidence that procurement efficiencies & process improvements are being fully leveraged? Is the Board of Education concerned? AWhen:Curriculum or other materials need to be printed Who:Employees What: So that: Could store all documents, forms, materials, etc. on a virtual website and have them printed as needed and delivered without an additional delivery charge facilities costs could be reduced? B Unaware of additional savings opportunities related to purchasing items and the procurement process? Have you done a cost analysis regarding the purchasing and procurement process of office and classroom supplies? Are you utilizing a just-in-time inventory program? How much of the district’s purchasing decisions are followed by the sites? How many vendors are being used? How do you manage compliance to programs? What is the cost of non-compliance? BWhen:Determining how to reduce costs Who:You What: So that: Could be provided with a cost analysis outlining viable alternative to improve efficiencies in the procurement process additional savings opportunities could be realized?

90 © Solution Selling, Inc. 2009  PAGE 89 www.solutionselling.com Exercise Build a Pain Sheet® Purpose:  To construct a Pain Sheet® that includes capabilities of your offering(s) that addresses reasons for a particular customer key player’s pain. The Pain Sheet® is used to have a consultative, diagnostic conversation with a customer key player Activities:  Include the primary reasons (for a key player’s pain) and the corresponding capabilities  Attempt to uncover at least 2 reasons and articulate 2 corresponding capabilities  Be sure to articulate the capabilities by crafting a “capability vision” that addresses each reason for the pain  Be sure to include other key players affected by the pain in the impact column  Develop “drill down” questions for each of the reasons from the Pain Sheet® framework. These questions should be designed to uncover the negative effect on the customer of not having your capabilities  The “drill down” questions typically drive to quantifiable loss that is usually expressed in “lost revenue” or “incurred cost” Notes:  Each capability vision should describe “when”, “who”, and “what”… meaning, “when” in time, a business activity will prompt “who” in the organization to take “what” specific action via the capability being offered  A Pain Sheet® template has been provided on the page that follows  Be prepared to share your work

91 © Solution Selling, Inc. 2009  PAGE 90 www.solutionselling.com Pain Sheet® - Situational Fluency Prompter®: Template Pain: Job Title & Industry: Offering: REASONSIMPACTCAPABILITIES Is it because; Today…?Is this (pain) causing…?What if…; Would it help if…? A A When: Who: What: B B When: Who: What: C C When: Who: What:

92 © Solution Selling, Inc. 2009  PAGE 91 www.solutionselling.com Exercise: Enhanced Vision Creation Role Play Strategic Alignment (Step 4) Purpose:  To help you practice creating a stronger emotional and financial impact on the buyer Activities:  Break into role play groups  Follow the blocks in the numbered order using the prompter (9 Block Vision Processing Model® - Vision Creation) provided. Focus on “drilling down” and gathering numerical information. Be sure to use the Enhanced Pain Sheet® (within the following pages or your group opportunity Pain Sheet®) to assist in the control row of the 9 boxes  After "drilling down" in R2 and I2, you will create a descriptive picture in C2 addressing the “when, who and what” can be accomplished using your capabilities. Be sure to link cost uncovered in R2 with capability visions described in C2  Each person should get an opportunity to play the “buyer” and the “salesperson”. Use an observer in the rotation if possible  Be prepared to debrief Note:  By quantifying the pain and reasons for the pain you will begin to put together the information needed to construct a value justification

93 © Solution Selling, Inc. 2009  PAGE 92 www.solutionselling.com 9 Block Vision Processing Model® - Vision Creation Diagnose ReasonsVisualize CapabilitiesExplore Impact Open Control Confirming PAIN $ BUYING VISION $ 74 1 85 2 963 “Besides yourself, who in your organization is impacted by this (pain) and how are they impacted?” “Is this (pain) causing… (another pain)?” “If so, would (other job title) also be concerned?” #?, %?, $? “From what I just heard, (repeat the “who” and “how”) are impacted. It sounds like this is not just your problem, but a ______ problem! Is that correct?” “What is it going to take for you to be able to (achieve your goal)?” “Could I try a few ideas on you?” “You mentioned (recall reason)… Would it help if … Capability Vision A?... Capability Vision B?... Capability Vision C?... “So, IF you had the ability to (summarize capability visions), THEN could you (achieve your goal)?” “Tell me about it, what is causing you to have this… (repeat pain)?” “Is it because… Reason A?… Reason B?... Reason C?... #?, %?, $? “So, the reasons for your (pain) are…? Is that correct?” C1I1 R1 C2I2 R2 C3I3R3

94 © Solution Selling, Inc. 2009  PAGE 93 www.solutionselling.com Pain Sheet® - Situational Fluency Prompter®: Example Pain: Job Title & Industry: Offering: Increasing local operational costs Office Manager (local location), Healthcare Cleaning Break Room Supplies REASONS (R2)IMPACT (I2)CAPABILITIES (C2) Is it because; Today…?Is this (pain) causing…?What if…; Would it help if…? A Tell me about the additional inventory you need to carry? Is it a high cost to carry the additional inventory? What is the cost? Is there a minimum order you have to place to avoid additional charges? How much do you spend on additional charges? What is the minimum order? How much space is devoted to carrying inventory? What is the average days of inventory? What is the monthly value per month to carry over? What is your shrinkage factor? Do you incur any corporate chargebacks? What is the spoilage rate? Increasing facility costs across all locations? Is the VP Facilities concerned? Budgets to be missed? Is the VP Finance concerned? AWhen:Ordering replenishment of cleaning and break room supplies Who:You What:Had a way to order only what you need at the best price so that your cost to carry is minimized? B What is the shipping and fulfillment process used by current suppliers today? Is shipping costly? What are your freight costs for all of your supplies? How many suppliers do you have? Are you leveraging any current discounts for shipping with suppliers? How many orders do you place per month? What is the cost to receive? What is the impact on the environment of doing it this way? BWhen:Inventory has reached safety stock level Who:You What:Could go to your personalized landing page, identify items you need, check inventory, place your order, and have it delivered at your desired time without shipping costs? C What is the process for placing orders with multiple suppliers?? Today, how many different suppliers and ordering processes do you have? How many FTE’s does it take? How many orders do you place per month? How long does it take to place each order? C When: Ordering multiple categories of items Who:You What:Had the ability to utilize a single website to order all items at once and not have to use multiple ordering processes and receive one delivery with one invoice?

95 © Solution Selling, Inc. 2009  PAGE 94 www.solutionselling.com Pain Sheet® - Situational Fluency Prompter®: K-12 Example Pain: Job Title & Industry: Offering: Difficulty reducing costs CFO / Superintendent of Finance, School District US Communities, DPS REASONS (R2)IMPACT (I2)CAPABILITIES (C2) Is it because; Today…?Is this (pain) causing…?What if…; Would it help if…? A Document printing and storing costs are high? How do you print and store documents today? Do you have an internal print shop or is it outsourced? (If internal) How much does it cost to run the print shop? (If outsource) How many suppliers are you currently using? Are you able to capitalize on volume discounts? Is there a minimum order requirement? How much do you spend annually on outsourcing of printing? Increase in budget cuts and higher use of funds for non-core functioning areas and loss of staff positions? Lack of respect /confidence from the community? School reputation to be at risk? Is the Superintendent concerned? Potential lack of confidence that procurement efficiencies & process improvements are being fully leveraged? Is the Board of Education concerned? AWhen:Curriculum or other materials need to be printed Who:Employees What: So that: Could store all documents, forms, materials, etc. on a virtual website and have them printed as needed and delivered without an additional delivery charge facilities costs could be reduced? B Unaware of additional savings opportunities related to purchasing items and the procurement process? Have you done a cost analysis regarding the purchasing and procurement process of office and classroom supplies? Are you utilizing a just-in-time inventory program? How much of the district’s purchasing decisions are followed by the sites? How many vendors are being used? How do you manage compliance to programs? What is the cost of non-compliance? BWhen:Determining how to reduce costs Who:You What: So that: Could be provided with a cost analysis outlining viable alternative to improve efficiencies in the procurement process additional savings opportunities could be realized?

96 © Solution Selling, Inc. 2009  PAGE 95 www.solutionselling.com Office Depot Sales Process: Diagnose Stage Buying Process Define problems and opportunities Determine needs / requirements Select solution, evaluate risk, & finalize contracts Resolve issues & implement Evaluate success Sales Stage Plan and EngageDiagnose Activities New Business  Conduct opportunity planning  Conduct opportunity assessment Retain and Grow  Monitor client satisfaction  Research buying trends  Identify new opportunities across SKU’s and categories  Create interest  Gain initial meeting  Get pain admitted  Diagnose admitted pain and create or reengineer vision of Sponsor  Negotiate access to power  Confirm dialogue and agree upon next steps  Diagnose admitted pain and create or reengineer vision of Power Sponsor  Determine evaluation criteria and propose next steps  Confirm dialogue and agree upon plan of next steps Sales Tools and Resources Dun & Bradstreet lists Hoovers Opportunity Assessment Pain Chain® Key Players List Contact Strategy Business Development Prompter Reference Story PPS Scorecard PPS Funnel Calculator  PSS® Pre-Call Planner  9-Block Vision Processing Model®  Pain Sheet®  Sponsor Letter/e-mail  Power Sponsor Letter/e-mail  Evaluation Plan Verifiable Outcomes Opportunity Created in Sales Online Gain agreement to Evaluation Plan Yield Probability 0%25% Negotiate access to power Confirm dialogue and agree upon next steps Diagnose admitted pain and create or reengineer vision of Power Sponsor Determine evaluation criteria and propose next steps Confirm dialogue and agree upon plan of next steps

97 © Solution Selling, Inc. 2009  PAGE 96 www.solutionselling.com Strategic Alignment: Step 5 Gain Agreement to Explore Further BUYER PERSPECTIVE / DECISIONSALESPERSON ACTION 5. Gain Agreement to Explore Further “Am I serious about moving this forward? “Am I prepared to promote this to our decision-maker?”   Gauge the desire of the buyer to move to the next step  Move to Step 6 if you perceive the buyer is not “power” and has not volunteered access to “power”

98 © Solution Selling, Inc. 2009  PAGE 97 www.solutionselling.com Strategic Alignment Prompter (Steps 3 - 5) Step 3: Get Pain Admitted Ask Situation Questions (if pain has not been admitted but the buyer is talking freely) Ask Pain Questions / Menu of Pains (if pain has not been admitted and the buyer is not talking freely) Once the pain has been admitted be sure to prioritize the admitted pain Step 4: Develop Needs – Customer Buying Vision  Use the 9 Block Vision Processing Model® Diagnose and create a vision of a company-biased solution or Reengineer a vision with company differentiators  Confirm buying vision and bridge to “Agreement to Explore Further” step “So, if you had the ability to (restate capabilities) could you (restate goal)?” (Get buyers agreement) Step 5: Gain Agreement to Explore Further Option 1: “(Buyers name), I am reasonably sure we can provide you those capabilities. I want to check some things with my resources. If they confirm what we just discussed, will you further evaluate (company)?” (Get buyer’s agreement). Option 2: “(Buyer’s name), I’m confident we can provide you those capabilities and I would like the opportunity to prove it to you. Would you give me that opportunity?” (Get buyer’s agreement). If, during the process, the buyer volunteered access to power, schedule the meeting and end the call. If the buyer did not volunteer access to power go to Step 6.

99 © Solution Selling, Inc. 2009  PAGE 98 www.solutionselling.com Strategic Alignment: Steps 6 and 7a Determine Ability to Buy and Negotiate Access to Power BUYER PERSPECTIVE / DECISIONSALESPERSON ACTION 6. Determine Ability to Buy “Should I reveal the identity of power?”   Ask the buyer to describe the process for proceeding if they are pleased with the capabilities. Ask them to identify anyone else involved in making the decision  If a Sponsor, go to Step 7a  If a Power Sponsor, go to Step 7b 7a. Negotiate Access to Power “Do I want to sponsor this person if I’m convinced the capabilities meet my needs?”   Request access to “power”  If denied, strike a bargain  If buyer bargained, end the call and write a Sponsor Letter / e-mail  If buyer will not bargain, find another potential Sponsor

100 © Solution Selling, Inc. 2009  PAGE 99 www.solutionselling.com Strategic Alignment Prompter (Steps 6 and 7a) Step 6: Determine Ability to Buy “Let’s say you become convinced that it really is possible to (repeat buying vision) and you want to go forward, what do you do then? Who else is involved in this decision? How are they involved?” Step 7a: Negotiate Access to Power  Request access to Power “Could we set up a meeting with him/her?” (if denied, strike a bargain)  If “no”, strike a bargain (for access to Power) “That may be too soon, but let me suggest this. I’m not sure of the best way to prove these capabilities. Whatever we end up doing will take some of my company’s time and resources but I’ll commit that to you today; however, if you become satisfied with the proof step we arrive at, would you then introduce me to (power person), is that fair?” (Get buyer’s agreement and end call).  End call (write a potential Sponsor Letter / e-mail) “Thank you for your time. I will send an email summarizing today’s conversation. In that e-mail I will recommend a specific way for us to prove these capabilities to you. You should receive that e-mail by _______.”

101 © Solution Selling, Inc. 2009  PAGE 100 www.solutionselling.com Gaining Access to Power  If vision and value are compelling, the prospect may volunteer access to power  Many will accept proof in exchange for access to power  How to handle those who will not grant access to power:  Find another potential Sponsor on your own  Ask for a contact they feel would sponsor you to power and get you an introduction

102 © Solution Selling, Inc. 2009  PAGE 101 www.solutionselling.com Potential Sponsor Letter/e-mail: Example Steve (Office Manager), Thank you for your interest in Office Depot. The purpose of this e-mail is to summarize my understanding of our meeting and our action plan. We discussed the following: (1) Your primary critical issue is increasing operational cost, which have gone up 15% this year. (2) Reasons for increasing operational costs:  high costs of carrying additional inventory  increasing shipping costs  inefficient ordering process because of multiple suppliers (3) Capabilities you said you needed:  when ordering replenishment of cleaning and break room supplies you had a way to order only what you need at the best price so that your cost to carry is minimized  when inventory has reached safety stock level you could go to your personalized landing page, identify items you need, check inventory, place your order, and have it delivered at your desired time without shipping costs  when ordering multiple categories of items you had the ability to utilize a single website to order all items at once and not have to use multiple ordering processes and receive one delivery with one invoice. You said if you had these capabilities, you could lower your operational costs. Our next steps (4) You agreed to move forward with our company (5) and said if we succeed in proving we can give you these capabilities, you will introduce me to Jim Smith, your VP Facilities. You mentioned Jim is not happy with the increasing facilities costs across all the locations. (6) I would like to propose that we arrange a meeting with another Office Manager who has been using our cleaning and break room supplies services. I am confident you will like what you hear and introduce our company to the rest of your organization. I’ll call you Monday to discuss it further. Sincerely, Bill Hart Steve (Office Manager), Thank you for your interest in Office Depot. The purpose of this e-mail is to summarize my understanding of our meeting and our action plan. We discussed the following: (1) Your primary critical issue is increasing operational cost, which have gone up 15% this year. (2) Reasons for increasing operational costs:  high costs of carrying additional inventory  increasing shipping costs  inefficient ordering process because of multiple suppliers (3) Capabilities you said you needed:  when ordering replenishment of cleaning and break room supplies you had a way to order only what you need at the best price so that your cost to carry is minimized  when inventory has reached safety stock level you could go to your personalized landing page, identify items you need, check inventory, place your order, and have it delivered at your desired time without shipping costs  when ordering multiple categories of items you had the ability to utilize a single website to order all items at once and not have to use multiple ordering processes and receive one delivery with one invoice. You said if you had these capabilities, you could lower your operational costs. Our next steps (4) You agreed to move forward with our company (5) and said if we succeed in proving we can give you these capabilities, you will introduce me to Jim Smith, your VP Facilities. You mentioned Jim is not happy with the increasing facilities costs across all the locations. (6) I would like to propose that we arrange a meeting with another Office Manager who has been using our cleaning and break room supplies services. I am confident you will like what you hear and introduce our company to the rest of your organization. I’ll call you Monday to discuss it further. Sincerely, Bill Hart Qualification Components: 1 2 3 4 5 6

103 © Solution Selling, Inc. 2009  PAGE 102 www.solutionselling.com Gaining Access to Power A Second Vision Processing Conversation Power Sponsor Pain Reason A Reason B Reason C Power Sponsor Pain Reason A Reason B Reason C Sponsor Pain Reason A Reason B Reason C Sponsor Pain Reason A Reason B Reason C I2C2 RI R2 I1C1 R3I3C3 I2C2 RI R2 I1C1 R3I3C3

104 © Solution Selling, Inc. 2009  PAGE 103 www.solutionselling.com Pain Sheet® - Situational Fluency Prompter®: Example Pain: Job Title & Industry: Offering: Increasing facility costs across all locations VP Facilities, Healthcare Cleaning Break Room Supplies REASONS (R2)IMPACT (I2)CAPABILITIES (C2) Is it because; Today…?Is this (pain) causing…?What if…; Would it help if…? A Increasing operational costs at remote locations? How much have costs increased? Across locations, what are the inventory carrying costs? How much do you spend on shipping supplies? How many suppliers do you have for the locations? How much does it cost to deal with so many suppliers? Budgets to be missed? Is the VP Finance concerned? AWhen:Cleaning and break room supplies are ordered Who:Various location end users What:Could use the same website to check inventory, order only the items and quantity they needed, and receive it by the next day without shipping costs? B Increasing procurement costs? How many different vendors provide CBS items? Are items standard across all locations? How many contracts are managed? What is the cost of managing this many vendors? Are locations staying within budget? How is budget tracked? What are the typical variances? How many FTE’s are processing orders? What is the average burdened cost for an FTE? BWhen:Ordering cleaning and break room supplies Who:Various location end users What:Had one specific, standardized list of approved corporate items, competitively priced and available for next day delivery?

105 © Solution Selling, Inc. 2009  PAGE 104 www.solutionselling.com Strategic Alignment: Steps 6 and 7b Determine Ability to Buy and Determine Evaluation Criteria BUYER PERSPECTIVE / DECISIONSALESPERSON ACTION 6. Determine Ability to Buy “Should I reveal the identity of power?”   Ask the buyer to describe the process for proceeding if they are pleased with the capabilities. Ask them to identify anyone else involved in making the decision  If a Sponsor, go to Step 7a  If a Power Sponsor, go to Step 7b 7b. Determine Evaluation Criteria “Am I serious enough about this to disclose my buying process?” “Does the evaluation approach help me mitigate my own risk?”  Ask open questions to uncover the buying process  Ask closed questions to influence the buying process  State “no new information” and pre- proposal review themes  End the call and write a Power Sponsor Letter / e-mail with an Draft Evaluation Plan included

106 © Solution Selling, Inc. 2009  PAGE 105 www.solutionselling.com Strategic Alignment Prompter (Steps 6 and 7b) Step 6: Determine Ability to Buy “Let’s say you become convinced that it really is possible to (repeat buying vision) and you want to go forward, what do you do then? Who else is involved in this decision? How are they involved?” Step 7b: Determine Evaluation Criteria with the Power Sponsor  Ask open questions to uncover the buying process  Ask closed questions to influence the buying process “How would you like to evaluate us?” (Write down each request as you repeat it. Do not agree or disagree) “If we get to a point where we might want to do business, will there be a… (Legal review?... Technical review?... Administrative approval?)” “Will you want a proposal from me? (Get buyer’s agreement) As part of that proposal would you also want a value analysis?”  State “no new information” and suggest pre-proposal review “When you ask me to prepare a proposal, I want you to know that it will come at the end of the evaluation process. It will simply document everything we will have done along the way.” (Get buyer’s agreement) “I suggest we meet a week in advance of our delivery of the final proposal with a rough draft. This ensures there will be no surprises in the final proposal.” (Get buyer’s agreement and end call)  End call (write a Power Sponsor e-mail with Draft Evaluation Plan) “Thank you for your time. I am going to take this list back with me. I will then make an initial attempt to put together a plan for you to evaluate our (company / product / services). You should receive the draft plan by __________. I will call you to discuss it.”

107 © Solution Selling, Inc. 2009  PAGE 106 www.solutionselling.com Potential Power Sponsor Letter/e-mail: Example Jim (VP Facilities), Thank you for meeting with Steve Jones and me earlier today. I believe it was time well spent for both Alliance and Office Depot. We discussed the following: (1) Your primary critical issue is increasing facilities costs across all locations. You said costs have increased 15%. (2) Reasons for increasing costs: □Increasing operational costs at remote locations □Increasing procurement costs (3) Capabilities you said you needed: □when cleaning and break room supplies are ordered the various location end users could use the same website to check inventory, order only the items and quantity they needed, and receive it by the next day without shipping costs □when cleaning and break room supplies are ordered the various location end users had one specific, standardized list of approved corporate items, competitively priced and available for next day delivery (4) You said if you had these capabilities, your office managers at remote locations could lower their costs, and Donna Moore, your VP Finance, could be on track to make her budgets for the year. Our next steps (5) When I told you I was confident Office Depot could help you, you agreed to commit the resources needed to evaluate our ability to do so. (6) Based on my knowledge to date, I am attaching a suggested evaluation plan for your further exploration of our company. Look it over with Steve, and I will call you on February 7, to get your thoughts. Sincerely, Bill Hart Attachment: Draft Evaluation Plan Jim (VP Facilities), Thank you for meeting with Steve Jones and me earlier today. I believe it was time well spent for both Alliance and Office Depot. We discussed the following: (1) Your primary critical issue is increasing facilities costs across all locations. You said costs have increased 15%. (2) Reasons for increasing costs: □Increasing operational costs at remote locations □Increasing procurement costs (3) Capabilities you said you needed: □when cleaning and break room supplies are ordered the various location end users could use the same website to check inventory, order only the items and quantity they needed, and receive it by the next day without shipping costs □when cleaning and break room supplies are ordered the various location end users had one specific, standardized list of approved corporate items, competitively priced and available for next day delivery (4) You said if you had these capabilities, your office managers at remote locations could lower their costs, and Donna Moore, your VP Finance, could be on track to make her budgets for the year. Our next steps (5) When I told you I was confident Office Depot could help you, you agreed to commit the resources needed to evaluate our ability to do so. (6) Based on my knowledge to date, I am attaching a suggested evaluation plan for your further exploration of our company. Look it over with Steve, and I will call you on February 7, to get your thoughts. Sincerely, Bill Hart Attachment: Draft Evaluation Plan Qualification Components: 1 Pain 2 Reasons for the Pain 3 Buying Vision 4 Organizational Impact 5 Agreement to Explore 6 Evaluation Plan Set-up

108 © Solution Selling, Inc. 2009  PAGE 107 www.solutionselling.com Draft Evaluation Plan: Example Attachment to Power Sponsor Letter/e-mail [DRAFT] EventWeek√Responsible Go/No Go Interview with procurement and accountingFebruary 14 OD/Alliance Interview IT about back-end systemsFebruary 14 OD/Alliance Interviews with end-users at other locationsFebruary 14 OD/Alliance Summarize findings to management teamFebruary 14 OD/Alliance * Provide CBS samples / product evaluation and conduct delivery match-ups February 14 OD * Conduct demonstration of ordering platform (proof of capabilities)February 21 OD * Gain approval of implementation planFebruary 21 Alliance * Discuss pricing and refined value propositionFebruary 21 OD/Alliance * Agree to success criteriaFebruary 21 OD/Alliance Create market evaluation (Bid)February 28 OD/Alliance Send agreements to legalFebruary 28 OD/Alliance Analyze competitive evaluationsMarch 7 OD/Alliance Present final proposal & gain agreement to move forwardMarch 14 OD * Gain legal approvalMarch 21 OD/Alliance Begin implementationMarch 28 OD Measure success criteriaOngoing OD/Alliance * Mutual decision to proceed

109 © Solution Selling, Inc. 2009  PAGE 108 www.solutionselling.com Exercise: Buyer / Process Qualification Role Play Strategic Alignment (Steps 5, 6, 7a and 7b) Purpose:  To focus on qualifying the buyer. The “salesperson” should be able to determine whether they are engaged in conversations with a “power” person or a Sponsor Activities:  Break into role play groups (or pairs)  Role play Steps 5, 6 and then either 7a or 7b by reading the text provided on the Strategic Alignment Prompter. The “buyer’s” answer to Step 6 will help the “salesperson” determine whether to proceed to Step 7a or 7b  Each person should get an opportunity to play the “buyer” and the “salesperson”  Each person should play the “salesperson” twice (reading through Step 7a and then all the way through Step 7b on the second role play)  If at a Power Sponsor level, the salesperson needs to qualify the buying process. If only at a Sponsor level, the salesperson must “bargain” for access to power

110 © Solution Selling, Inc. 2009  PAGE 109 www.solutionselling.com Strategic Alignment Prompter (Steps 5 and 6) Step 5: Gain Agreement to Explore Further Option 1: “(Buyers name), I am reasonably sure we can provide you those capabilities. I want to check some things with my resources. If they confirm what we just discussed, will you further evaluate (company)?” (Get buyer’s agreement) Option 2: “(Buyer’s name), I’m confident we can provide you those capabilities and I would like the opportunity to prove it to you. Would you give me that opportunity?” (Get buyer’s agreement) If, during the process, the buyer volunteered access to power, schedule the meeting and end the call. If the buyer did not volunteer access to power go to Step 6. Step 6: Determine Ability to Buy “Let’s say you become convinced that it really is possible to (repeat buying vision) and you want to go forward, what do you do then? Who else is involved in this decision? How are they involved?” NO  AT POWER?  YES If not at “Power”, go to Step 7aIf at “Power”, go to Step 7b Step 7a: Negotiate Access to Power Step 7b: Determine Evaluation Criteria with the Power Sponsor

111 © Solution Selling, Inc. 2009  PAGE 110 www.solutionselling.com Strategic Alignment Prompter (Steps 7a and 7b) Step 7a: Negotiate Access to Power  Request access to Power “Could we set up a meeting with him/her?” (if denied, strike a bargain)  If “no”, strike a bargain (for access to Power) “That may be too soon, but let me suggest this. I’m not sure of the best way to prove these capabilities. Whatever we end up doing will take some of my company’s time and resources but I’ll commit that to you today; however, if you become satisfied with the proof step we arrive at, would you then introduce me to (power person), is that fair?” (Get buyer’s agreement and end call).  End call (write a potential Sponsor Letter / e-mail) “Thank you for your time. I will send an email summarizing today’s conversation. In that e-mail I will recommend a specific way for us to prove these capabilities to you. You should receive that e-mail by _______.” Step 7b: Determine Evaluation Criteria with the Power Sponsor  Ask open questions to uncover the buying process  Ask closed questions to influence the buying process “How would you like to evaluate us?” (Write down each request as you repeat it. Do not agree or disagree) “If we get to a point where we might want to do business, will there be a… (Legal review?... Technical review?... Administrative approval?)” “Will you want a proposal from me? (Get buyer’s agreement) As part of that proposal would you also want a value analysis?”  State “no new information” and pre-proposal review themes “When you ask me to prepare a proposal, I want you to know that it will come at the end of the evaluation process. It will simply document everything we will have done along the way.” (Get buyer’s agreement) “I suggest we meet a week in advance of our delivery of the final proposal with a rough draft. This ensures there will be no surprises in the final proposal. (Get buyer’s agreement and end call)  End call (write a Power Sponsor Letter / e-mail with Draft Evaluation Plan) “Thank you for your time. I am going to take this list back with me. I will then make an initial attempt to put together a plan for you to evaluate our (company / product / services). You should receive the draft plan by __________. I will call you to discuss it.”

112 © Solution Selling, Inc. 2009  PAGE 111 www.solutionselling.com Quid Pro Quo in Diagnose “What things would the customer want from you and what would you want from the customer?”

113 © Solution Selling, Inc. 2009  PAGE 112 www.solutionselling.com Office Depot Sales Process: Propose & Close Stage Buying Process Define problems and opportunities Determine needs / requirements Select solution, evaluate risk, & finalize contracts Resolve issues & implement Evaluate success Sales Stage Plan and EngageDiagnose Propose and Close Activities New Business Conduct research on prospective accounts Identify contacts Retain and Grow Monitor client satisfaction Research buying trends Identify new opportunities across SKU’s and categories Create interest Gain initial meeting  Get pain admitted  Diagnose admitted pain and create or reengineer vision of Sponsor  Negotiate access to power  Confirm dialogue and agree upon next steps  Diagnose admitted pain and create or reengineer vision of Power Sponsor  Determine evaluation criteria and propose next steps  Confirm dialogue and agree upon plan of next steps  Execute Evaluation Plan steps  Engage appropriate overlay  Present solution  Refine value proposition  Agree upon transition plan  Identify success criteria  Create RFP to reflect Office Depot differentiators  Engage bid team  Respond to RFP or bid (if appropriate)  Finalize T’s & C’s Sales Tools and Resources  Dun & Bradstreet lists  Hoovers  Opportunity Assessment  Pain Chain®  Key Players List  Contact Strategy  Business Development Prompter  Reference Story  PPS Scorecard  PPS Funnel Calculator  PSS® Pre-Call Planner  9-Block Vision Processing Model®  Pain Sheet®  Sponsor Letter/e-mail  Power Sponsor Letter/e-mail  Evaluation Plan  Transition plan  Success Criteria  Negotiating Worksheet  Get-Give List  Resolving Customer Concerns (PSS ® Skill Guide Card) Verifiable Outcomes Opportunity Created in Sales Online Gain agreement to Evaluation Plan Signed Contract Yield Probability 0%25%75% Refine value proposition Agree upon transition plan Identify success criteria

114 © Solution Selling, Inc. 2009  PAGE 113 www.solutionselling.com “Go/No Go” Step Completion e-mail: Example To: jsmith@alliancehealthcare.com cc: sjones@alliancehealthcarecom; dmoore@talliancehealthcare.com ; jwatkins@alliancehealthcare.comsjones@alliancehealthcarecomdmoore@talliancehealthcare.comwatkins@alliancehealthcare.com Subject: Evaluation Plan - step completion Attachment: Updated Evaluation Plan v2.doc Jim and team, I am pleased to report that another milestone has been completed. On February 21 we provided cleaning and break room samples for a product evaluation and it was approved. The changes you requested are reflected in the attached copy. Our next milestone is the week of February 28 when we will go through a demonstration of the ordering platform. Thank you again for your continued support of this project. Sincerely, Bill Hart To: jsmith@alliancehealthcare.com cc: sjones@alliancehealthcarecom; dmoore@talliancehealthcare.com ; jwatkins@alliancehealthcare.comsjones@alliancehealthcarecomdmoore@talliancehealthcare.comwatkins@alliancehealthcare.com Subject: Evaluation Plan - step completion Attachment: Updated Evaluation Plan v2.doc Jim and team, I am pleased to report that another milestone has been completed. On February 21 we provided cleaning and break room samples for a product evaluation and it was approved. The changes you requested are reflected in the attached copy. Our next milestone is the week of February 28 when we will go through a demonstration of the ordering platform. Thank you again for your continued support of this project. Sincerely, Bill Hart

115 © Solution Selling, Inc. 2009  PAGE 114 www.solutionselling.com Three Sales within a Sale LINE OF BUSINESS SALE Operational Vision “What capabilities do we need to meet our business goals?” LINE OF BUSINESS SALE Operational Vision “What capabilities do we need to meet our business goals?” TRANSITION SALE Transition / Implementation Vision “How do we get from where we are today to where the Line Vice Presidents want to be?” TRANSITION SALE Transition / Implementation Vision “How do we get from where we are today to where the Line Vice Presidents want to be?” FINANCIAL SALE Operational Vision + Transition / Implementation Vision “What is the overall value to the organization?” FINANCIAL SALE Operational Vision + Transition / Implementation Vision “What is the overall value to the organization?”

116 © Solution Selling, Inc. 2009  PAGE 115 www.solutionselling.com Three Sales within a Sale The Transition Sale: Transition / Implementation Vision LINE OF BUSINESS SALE Operational Vision “What capabilities do we need to meet our business goals?” LINE OF BUSINESS SALE Operational Vision “What capabilities do we need to meet our business goals?” FINANCIAL SALE Operational Vision + Transition / Implementation Vision “What is the overall value to the organization?” FINANCIAL SALE Operational Vision + Transition / Implementation Vision “What is the overall value to the organization?” TRANSITION SALE Transition / Implementation Vision “How do we get from where we are today to where the Line Vice Presidents want to be?” TRANSITION SALE Transition / Implementation Vision “How do we get from where we are today to where the Line Vice Presidents want to be?”

117 © Solution Selling, Inc. 2009  PAGE 116 www.solutionselling.com Evaluation Plan: Example The Transition Sale EventWeek√Responsible Go/No Go Interview with procurement and accountingFebruary 14 √ OD/Alliance Interview IT about back-end systemsFebruary 14 √ OD/Alliance Interviews with end-users at other locationsFebruary 14 √ OD/Alliance Summarize findings to management teamFebruary 14 √ OD/Alliance Go Provide CBS samples / product evaluation and conduct delivery match-ups February 14 √ OD Go Conduct demonstration of ordering platform (proof of capabilities)February 21 √ OD Go Gain approval of implementation planFebruary 21 Alliance * Discuss pricing and refined value propositionFebruary 21 OD/Alliance * Agree to success criteriaFebruary 21 OD/Alliance Create market evaluation (Bid)February 28 OD/Alliance Send agreements to legalFebruary 28 OD/Alliance Analyze competitive evaluationsMarch 7 OD/Alliance Present final proposal & gain agreement to move forwardMarch 14 OD * Gain legal approvalMarch 21 OD/Alliance Begin implementationMarch 28 OD Measure success criteriaOngoing OD/Alliance * Mutual decision to proceed

118 © Solution Selling, Inc. 2009  PAGE 117 www.solutionselling.com Transition Issues & Capabilities Worksheet Person responsible:Facilities Manager Transition issue:Potential inhibitors to rapid implementation REASONSOUR TRANSITION CAPABILITIES AUnaware of all buyers in organizationAWhen placing orders all users could go to the web site and self-register via e- mail or have the website posted on your corporate purchasing website to ensure all buyers become aware of the new process. BInvoicing procedures are inconsistently defined or not defined at all BWhen placing orders, end-users would have to fill out required, validated fields to ensure accurate billing.

119 © Solution Selling, Inc. 2009  PAGE 118 www.solutionselling.com Three Sales within a Sale The Financial Sale: Operational Vision + Transition / Implementation Vision LINE OF BUSINESS SALE Operational Vision “What capabilities do we need to meet our business goals?” LINE OF BUSINESS SALE Operational Vision “What capabilities do we need to meet our business goals?” FINANCIAL SALE Operational Vision + Transition / Implementation Vision “What is the overall value to the organization?” FINANCIAL SALE Operational Vision + Transition / Implementation Vision “What is the overall value to the organization?” TRANSITION SALE Transition / Implementation Vision “How do we get from where we are today to where the Line Vice Presidents want to be?” TRANSITION SALE Transition / Implementation Vision “How do we get from where we are today to where the Line Vice Presidents want to be?”

120 © Solution Selling, Inc. 2009  PAGE 119 www.solutionselling.com Evaluation Plan: Example The Financial Sale: Operational Vision + Transition / Implementation Vision EventWeek√Responsible Go/No Go Interview with procurement and accountingFebruary 14 √ OD/Alliance Interview IT about back-end systemsFebruary 14 √ OD/Alliance Interviews with end-users at other locationsFebruary 14 √ OD/Alliance Summarize findings to management teamFebruary 14 √ OD/Alliance Go Provide CBS samples / product evaluation and conduct delivery match-ups February 14 √ OD Go Conduct demonstration of ordering platform (proof of capabilities)February 21 √ OD Go Gain approval of implementation planFebruary 21 √ Alliance Go Discuss pricing and refined value propositionFebruary 21 OD/Alliance * Agree to success criteriaFebruary 21 OD/Alliance Create market evaluation (Bid)February 28 OD/Alliance Send agreements to legalFebruary 28 OD/Alliance Analyze competitive evaluationsMarch 7 OD/Alliance Present final proposal & gain agreement to move forwardMarch 14 OD * Gain legal approvalMarch 21 OD/Alliance Begin implementationMarch 28 OD Measure success criteriaOngoing OD/Alliance * Mutual decision to proceed

121 © Solution Selling, Inc. 2009  PAGE 120 www.solutionselling.com Basic Principles THE BEST RELATIONSHIPS ARE BASED ON VALUE PEOPLE MAKE EMOTIONAL DECISIONS FOR LOGICAL REASONS BASIC PRINCIPLE BASIC PRINCIPLE

122 © Solution Selling, Inc. 2009  PAGE 121 www.solutionselling.com Refined Value Proposition  Reasons for participation:  Initiating  Closing  Discounting  Must be done  Others?  Early adopters (visionaries) vs. Majority (pragmatic and conservative)

123 © Solution Selling, Inc. 2009  PAGE 122 www.solutionselling.com Refined Value Proposition What Will Be Measured? Profits from increased revenueExamples: Capabilities provided by your product / service that help the buyer increase revenues and profits  Time-to-market  Ability to react to competition  Increased market share  Increased order volume Reduced costs from displaced costsExamples: Capabilities provided by your product / service that help the buyer eliminate an existing cost and improve profits  Headcount / labor costs  Process improvement  Inventory costs Reduced costs from avoided costsExamples: Capabilities provided by your product / service that help the buyer eliminate a future cost  Overtime  Employee turnover  Equipment downtime Intangible benefitsExamples: Capabilities provided by your product / service that help the buyer but either have no dollar value or the buyer is unwilling to assign a dollar value  Employee morale  Company image

124 © Solution Selling, Inc. 2009  PAGE 123 www.solutionselling.com Refined Value Proposition: Example for VP Facilities “Based on current usage of cleaning and break room supplies, we believe Alliance Healthcare System should be able to reduce operating expenses by $217,000 per year through the ability to consolidate their vendors and streamline their processes for improved efficiency.” “Based on current usage of cleaning and break room supplies, we believe Alliance Healthcare System should be able to reduce operating expenses by $217,000 per year through the ability to consolidate their vendors and streamline their processes for improved efficiency.” Sources for information: 1)Office Manager 2) Accounting 3) VP Facilities Value Proposition calculations being made:  Eliminate shipping costs= $85K (3)  Reduce supplies costs with non-premium products by 8% = $68K (1)  Eliminate minimum order & expediting fees= $9K (3)  Reduce number of invoices to be processed by 40%= $55K (2)

125 © Solution Selling, Inc. 2009  PAGE 124 www.solutionselling.com Evaluation Plan: Example The Financial Sale: Operational Vision + Transition / Implementation Vision EventWeek√Responsible Go/No Go Interview with procurement and accountingFebruary 14 √ OD/Alliance Interview IT about back-end systemsFebruary 14 √ OD/Alliance Interviews with end-users at other locationsFebruary 14 √ OD/Alliance Summarize findings to management teamFebruary 14 √ OD/Alliance Go Provide CBS samples / product evaluation and conduct delivery match-ups February 14 √ OD Go Conduct demonstration of ordering platform (proof of capabilities)February 21 √ OD Go Gain approval of implementation planFebruary 21 √ Alliance Go Discuss pricing and refined value propositionFebruary 21√ OD/Alliance Go Agree to success criteriaFebruary 21 OD/Alliance Create market evaluation (Bid)February 28 OD/Alliance Send agreements to legalFebruary 28 OD/Alliance Analyze competitive evaluationsMarch 7 OD/Alliance Present final proposal & gain agreement to move forwardMarch 14 OD * Gain legal approvalMarch 21 OD/Alliance Begin implementationMarch 28 OD Measure success criteriaOngoing OD/Alliance * Mutual decision to proceed

126 © Solution Selling, Inc. 2009  PAGE 125 www.solutionselling.com Success Criteria: Example Part of Business Review- Accomplishments Page CriteriaBaselineQ1Q2Q3Q4 Shipping costs for cleaning and break room supplies/year 1,3 $85K / year Minimum order fees 2 $9k / year Number of invoices processed 2 250 / month Inventory value (1 month extra per location) 2 $68K / month CBS spend per month 1,3 $70K / month (1)VP Facilities (2)Office Manager (3)Procurement

127 © Solution Selling, Inc. 2009  PAGE 126 www.solutionselling.com Success Criteria: Leveraging Success CriteriaBaselineQ1Q2Q3Q4 I2C2 RI R2 I1C1 R3I3C3 Reference Story Situation: Critical issue: Reasons: Capabilities: We provided: Results: Reference Story Situation: Critical issue: Reasons: Capabilities: We provided: Results: Business Development Prompter: New Opportunity This is __________ (salesperson name) with __________ (your company). You and I haven’t spoken before, but we have been working with __________ (specific industry) organizations for the last ___ (#) years. A common trend we are hearing lately from other __________ (job title) is their frustration (difficulty) with _______________ (job title’s likely critical issue / pain) [resulting from ______ (articulate common reasons)]. We have been able to help our customers address this issue. Would you like to know how?

128 © Solution Selling, Inc. 2009  PAGE 127 www.solutionselling.com Quid Pro Quo in Propose and Close “What things would the customer want from you and what would you want from the customer?”

129 © Solution Selling, Inc. 2009  PAGE 128 www.solutionselling.com Sales Process Flow Model Potential opportunity starting points Conduct pre-call planning and research Stimulate interest Define “pain” or critical business issue Diagnose and create vision of company-biased solution Perform opportunity assessment Select competitive strategy Reengineer vision with company differentiators Negotiate access to power Develop & manage Evaluation Plan (sample steps) Summarize findings Prove capabilities Present preliminary solution Determine value analysis/s. criteria Gain all approvals (L/T/A) Conduct pre-proposal review Reach final agreement Measure and leverage success criteria Go? At power ? Yes No Yes No Latent or Admitted PainVision or Active Evaluation

130 © Solution Selling, Inc. 2009  PAGE 129 www.solutionselling.com Office Depot Sales Process Active Opportunities Customer Buying Process Define problems and opportunities Determine needs / requirements Select solution, evaluate risk, & finalize contracts Resolve issues & implement Evaluate success Sales Stages Plan and EngageDiagnosePropose and CloseImplementFulfill New Business  Conduct opportunity planning  Conduct opportunity assessment Retain and Grow  Monitor client satisfaction  Research buying trends  Identify new opportunities across SKU’s and categories  Create interest  Gain initial meeting  Get pain admitted  Diagnose admitted pain and create or reengineer vision of Sponsor  Negotiate access to power  Confirm dialogue and agree upon next steps  Diagnose admitted pain and create or reengineer vision of Power Sponsor  Determine evaluation criteria and propose next steps  Confirm dialogue and agree upon plan of next steps  Execute Evaluation Plan steps  Engage appropriate overlay  Present solution  Refine value proposition  Agree upon transition plan  Identify success criteria  Create RFP to reflect Office Depot differentiators  Engage bid team  Respond to RFP or bid (if appropriate)  Finalize T’s & C’s  Engage implementation manager  Execute implementation plan  Engage IT Integration manager  Test order placement and billing  Measure success criteria  Resolve customer problems  Manage Office Depot team  Implement Competitive Strategies  Conduct business review  Monitor client satisfaction Verifiable Outcome  Opportunity created in Sales Online  Gain agreement to Evaluation Plan  Signed contract  First orders placed Sales Tools and Resources  Dun & Bradstreet lists  Hoovers  Opportunity Assessment  Pain Chain®  Key Players List  Contact Strategy  Business Development Prompter  Reference Story  PPS Scorecard  PPS Funnel Calculator  PSS® Pre-Call Planner  9-Block Vision Processing Model®  Pain Sheet®  Sponsor Letter/e-mail  Power Sponsor Letter/e-mail  Evaluation Plan  Transition plan  Success Criteria  Negotiating Worksheet  Get-Give List  Resolving Customer Concerns (PSS ® Skill Guide Card)  Implementation Plan  Success Criteria  Reference Stories Yield Percentages 25%75%100% Where is the buyer?Where are you?

131 © Solution Selling, Inc. 2009  PAGE 130 www.solutionselling.com Active Opportunities How to Approach  Ask yourself, “Was it ACTIVE when I became aware of it?”  Is the customer at “vision” or “evaluation”?  Who has influenced the vision (internal, competition, 3rd party)?  Who is controlling the buying process?  Perform an opportunity assessment to determine “should I engage or not?”  Quick assessment  Detailed assessment  Select an appropriate competitive strategy  Lead strategy  Fall-back position  Consider disengaging if you can’t reengineer the requirements

132 © Solution Selling, Inc. 2009  PAGE 131 www.solutionselling.com Opportunity Assessment “Quick Assessment”: Example  PAIN  Do we know the pain?... Is the customer likely to act?  POWER  Do we know who “power” is?... Are we aligned with the right people to win?  VISION  Is our “solution” differentiated?... Does the customer prefer our offering?  VALUE  Does our offering provide mutual value?  CONTROL  Can we exert control upon the buying process? Sale = Pain x Power x Vision x Value x Control

133 © Solution Selling, Inc. 2009  PAGE 132 www.solutionselling.com BD - Win Probability / Project Viability Scoring

134 © Solution Selling, Inc. 2009  PAGE 133 www.solutionselling.com Opportunity Assessment (Worksheet) “Detailed Assessment”: Example Opportunity Assessment Worksheet Assessment date: _______ Answer key: (Y) = Yes, (N) = No or (?) = Unsure Us competition  = “Quick 5” assessment questions  PAIN – “Is the customer likely to act?”  1 Has high priority pain or potential pain been identified? 2 Have we validated the pain with the owner(s)? 3 Do we understand how others are impacted by the pain? 4 Is there budget in place? 5 Is there a timeframe to address the pain?  POWER – “Are we aligned with the right people to win?”  6 Do we understand the roles of the key players for this opportunity? 7 Do we understand who will influence the decision and how? 8 Are we connected to the people in power? 9 Do we have the support of the key players? 10 Are we connected to the people with access to funds?  VISION – “Does the customer prefer our offering?”  11 Did we help establish the initial requirements? 12 Does our offering fit their needs / requirements? 13 Have we created or reengineered a differentiated vision for the key players? 14 Do the key players support our solution approach?  VALUE – “Does our offering provide mutual value?”  15 Do we understand the benefit to each key player / corporate? 16 Have the key players quantified and articulated the benefits of our offering to us? 17 Has a (corporate) value analysis been agreed upon? 18 Does the value analysis warrant access to funds? 19 Is there sufficient value to us? Profitable? Strategic?  CONTROL – “Can we exert control upon the buying process?”  20 Do we understand the decision making process and criteria for the key players? 21 Do we understand the proof and satisfaction requirements for the key players? 22 Do we understand the customer’s buying practices, policies and procedures? 23 Has the customer agreed to an evaluation process with us? 24 Can we control the evaluation process? 25 Can we successfully manage our risk?

135 © Solution Selling, Inc. 2009  PAGE 134 www.solutionselling.com Competitive Strategies  Preemptive  Get there first, set the requirements, differentiate yourself, be Column A ACTIVE OPPORTUNITIES Lead Strategies  Head-to-head  Direct or frontal approach  End-around  Indirect or flanking approach Fall Back Positions  Divide and conquer  Divisional or fragment approach  Stall  Containment or delay approach Based on The Art of War by Sun Tzu

136 © Solution Selling, Inc. 2009  PAGE 135 www.solutionselling.com Basic Principle MAKE YOURSELF EQUAL BEFORE YOU MAKE YOURSELF DIFFERENT BASIC PRINCIPLE

137 © Solution Selling, Inc. 2009  PAGE 136 www.solutionselling.com How Organizations Buy – “Changing the Rules” RequirementsCompany ACompany BCompany C “ADD TO” “TAKE AWAY” “DIFFERENTIATE”

138 © Solution Selling, Inc. 2009  PAGE 137 www.solutionselling.com Vision Reengineering – Questions to Ask SALESPERSON ACTIVITYQUESTION(S) TO ASK 1Participate in original vision  2 Bias original vision with capability vision questions  3Explore current method  4 Diagnose current method with bias and measurement  5Summarize current method  Lead the buyer to the critical business issue (pain) and measure 6Explore impact  7Expand impact  8Summarize impact  9 Confirm new buying vision (original vision + new capability visions)  BOX

139 © Solution Selling, Inc. 2009  PAGE 138 www.solutionselling.com 9 Block Vision Processing Model® - Vision Reengineering Diagnose ReasonsVisualize CapabilitiesExplore Impact Open Control Confirming PAIN $ REENGINEERED BUYING VISION $ 16 3 27 4 985 CURRENT VISION “What is the effect on you and your business of doing it this way?” C1I1 R1 C2I2 R2 C3I3R3 “Besides yourself, who in your organization is impacted by this (pain) and how are they impacted?” “Is this (pain) causing… (another pain)?” “If so, would (other job title) also be concerned?” #?, %?, $? “From what I just heard, (repeat the “who” and “how”) are impacted. It sounds like this is not just your problem, but a ______ problem! Is that correct?” “How do you see yourself using this (repeat initial vision)?” (Clarify initial vision in when, who, what format) “Are you also looking for a way to…?” Would it help if you also had a way to …?” Capability Vision?... “”When you called, you were looking at (product / service) to give you the ability to (original vision) Today, you also said you needed (capability visions) If you had… could you (verbalize goal)?” “How do you do it today without this capability?” (“It” = perform the function they want to improve) “Today…? Reason A?… Reason B?... Reason C?... #?, %?, $? “So, the way you do it today is… Is that correct?”

140 © Solution Selling, Inc. 2009  PAGE 139 www.solutionselling.com Pain Sheet® - Situational Fluency Prompter®: Example Pain: Job Title & Industry: Offering: Increasing facility costs across all locations VP Facilities, Healthcare Cleaning Break Room Supplies REASONS (R2)IMPACT (I2)CAPABILITIES (C2) Is it because; Today…?Is this (pain) causing…?What if…; Would it help if…? A Increasing operational costs at remote locations? How much have costs increased? Across locations, what are the inventory carrying costs? How much do you spend on shipping supplies? How many suppliers do you have for the locations? How much does it cost to deal with so many suppliers? Budgets to be missed? Is the VP Finance concerned? AWhen:Cleaning and break room supplies are ordered Who:Various location end users What:Could use the same website to check inventory, order only the items and quantity they needed, and receive it by the next day without shipping costs? B Increasing procurement costs? How many different vendors provide CBS items? Are items standard across all locations? How many contracts are managed? What is the cost of managing this many vendors? Are locations staying within budget? How is budget tracked? What are the typical variances? How many FTE’s are processing orders? What is the average burdened cost for an FTE? BWhen:Ordering cleaning and break room supplies Who:Various location end users What:Had one specific, standardized list of approved corporate items, competitively priced and available for next day delivery?

141 © Solution Selling, Inc. 2009  PAGE 140 www.solutionselling.com Pain Sheet® - Situational Fluency Prompter®: K-12 Example Pain: Job Title & Industry: Offering: Difficulty reducing costs CFO / Superintendent of Finance, School District US Communities, DPS REASONS (R2)IMPACT (I2)CAPABILITIES (C2) Is it because; Today…?Is this (pain) causing…?What if…; Would it help if…? A Document printing and storing costs are high? How do you print and store documents today? Do you have an internal print shop or is it outsourced? (If internal) How much does it cost to run the print shop? (If outsource) How many suppliers are you currently using? Are you able to capitalize on volume discounts? Is there a minimum order requirement? How much do you spend annually on outsourcing of printing? Increase in budget cuts and higher use of funds for non-core functioning areas and loss of staff positions? Lack of respect /confidence from the community? School reputation to be at risk? Is the Superintendent concerned? Potential lack of confidence that procurement efficiencies & process improvements are being fully leveraged? Is the Board of Education concerned? AWhen:Curriculum or other materials need to be printed Who:Employees What: So that: Could store all documents, forms, materials, etc. on a virtual website and have them printed as needed and delivered without an additional delivery charge facilities costs could be reduced? B Unaware of additional savings opportunities related to purchasing items and the procurement process? Have you done a cost analysis regarding the purchasing and procurement process of office and classroom supplies? Are you utilizing a just-in-time inventory program? How much of the district’s purchasing decisions are followed by the sites? How many vendors are being used? How do you manage compliance to programs? What is the cost of non-compliance? BWhen:Determining how to reduce costs Who:You What: So that: Could be provided with a cost analysis outlining viable alternative to improve efficiencies in the procurement process additional savings opportunities could be realized?

142 © Solution Selling, Inc. 2009  PAGE 141 www.solutionselling.com Confirming the Reengineered Vision C2I2 R2 C3I3R3 Diagnose ReasonsVisualize CapabilitiesExplore Impact Open Control Confirming PAIN $ BUYING VISION $ 16 3 27 4 985 CURRENT VISION C1I1 R1 BUYING VISION $ Reengineered Vision Summarize / Confirm New Value $ Are you now willing to change your requirements to include… so that you can (verbalize goal)?” “Will you ask everyone else to prove these additional capabilities as well?” Step 5: Gain Agreement to Explore Further Option 2: “(Buyer’s name), I’m confident we can provide you those capabilities and I would like the opportunity to prove it to you. Would you give me that opportunity?” (Get buyer’s agreement).

143 © Solution Selling, Inc. 2009  PAGE 142 www.solutionselling.com Exercise: Vision Reengineering Role Play Strategic Alignment (Step 4) Purpose:  To focus on the skills needed to change a prospect’s existing vision to one with a bias toward your capabilities Activities:  Break into role play groups  Follow the blocks in the new sequence using the prompter (9 Block Vision Processing Model® - Vision Reengineering) provided. Focus on following the process, not on personal skills such as eye contact. Be sure to use the Enhanced Pain Sheet® (within the following pages) to assist in the control row of the 9 boxes  Each person should get an opportunity to play the “buyer” and the “salesperson”. Use an observer in the rotation if possible  Be prepared to debrief Notes:  The premise is that you find (or are introduced to) an opportunity where a vision of a solution already exists. To truly reengineer this opportunity, you must change or expand the existing vision. It is necessary to first participate in the prospect’s existing vision and “make yourself equal before you make yourself different”  The role play should begin with the buyer discussing their “current vision” (recommendation: select a capability vision from the “capabilities” column on the Pain Sheet®)

144 © Solution Selling, Inc. 2009  PAGE 143 www.solutionselling.com 9 Block Vision Processing Model® - Vision Reengineering Diagnose ReasonsVisualize CapabilitiesExplore Impact Open Control Confirming PAIN $ REENGINEERED BUYING VISION $ 16 3 27 4 985 CURRENT VISION “What is the effect on you and your business of doing it this way?” C1I1 R1 C2I2 R2 C3I3R3 “Besides yourself, who in your organization is impacted by this (pain) and how are they impacted?” “Is this (pain) causing… (another pain)?” “If so, would (other job title) also be concerned?” #?, %?, $? “From what I just heard, (repeat the “who” and “how”) are impacted. It sounds like this is not just your problem, but a ______ problem! Is that correct?” “How do you see yourself using this (repeat initial vision)?” (Clarify initial vision in when, who, what format) “Are you also looking for a way to…?” Would it help if you also had a way to …?” Capability Vision?... “”When you called, you were looking at (product / service) to give you the ability to (original vision) Today, you also said you needed (capability visions) If you had… could you (verbalize goal)?” “How do you do it today without this capability?” (“It” = perform the function they want to improve) “Today…? Reason A?… Reason B?... Reason C?... #?, %?, $? “So, the way you do it today is… Is that correct?”

145 © Solution Selling, Inc. 2009  PAGE 144 www.solutionselling.com Pain Sheet® - Situational Fluency Prompter®: Example Pain: Job Title & Industry: Offering: Increasing local operational costs Office Manager (local location), Healthcare Cleaning Break Room Supplies REASONS (R2)IMPACT (I2)CAPABILITIES (C2) Is it because; Today…?Is this (pain) causing…?What if…; Would it help if…? A Tell me about the additional inventory you need to carry? Is it a high cost to carry the additional inventory? What is the cost? Is there a minimum order you have to place to avoid additional charges? How much do you spend on additional charges? What is the minimum order? How much space is devoted to carrying inventory? What is the average days of inventory? What is the monthly value per month to carry over? What is your shrinkage factor? Do you incur any corporate chargebacks? What is the spoilage rate? Increasing facility costs across all locations? Is the VP Facilities concerned? Budgets to be missed? Is the VP Finance concerned? AWhen:Ordering replenishment of cleaning and break room supplies Who:You What:Had a way to order only what you need at the best price so that your cost to carry is minimized? B What is the shipping and fulfillment process used by current suppliers today? Is shipping costly? What are your freight costs for all of your supplies? How many suppliers do you have? Are you leveraging any current discounts for shipping with suppliers? How many orders do you place per month? What is the cost to receive? What is the impact on the environment of doing it this way? BWhen:Inventory has reached safety stock level Who:You What:Could go to your personalized landing page, identify items you need, check inventory, place your order, and have it delivered at your desired time without shipping costs? C What is the process for placing orders with multiple suppliers?? Today, how many different suppliers and ordering processes do you have? How many FTE’s does it take? How many orders do you place per month? How long does it take to place each order? CWhen:Ordering multiple categories of items Who:You What:Had the ability to utilize a single website to order all items at once and not have to use multiple ordering processes and receive one delivery with one invoice?

146 © Solution Selling, Inc. 2009  PAGE 145 www.solutionselling.com Pain Sheet® - Situational Fluency Prompter®: Example Pain: Job Title & Industry: Offering: Increasing facility costs across all locations VP Facilities, Healthcare Cleaning Break Room Supplies REASONS (R2)IMPACT (I2)CAPABILITIES (C2) Is it because; Today…?Is this (pain) causing…?What if…; Would it help if…? A Increasing operational costs at remote locations? How much have costs increased? Across locations, what are the inventory carrying costs? How much do you spend on shipping supplies? How many suppliers do you have for the locations? How much does it cost to deal with so many suppliers? Budgets to be missed? Is the VP Finance concerned? AWhen:Cleaning and break room supplies are ordered Who:Various location end users What:Could use the same website to check inventory, order only the items and quantity they needed, and receive it by the next day without shipping costs? B Increasing procurement costs? How many different vendors provide CBS items? Are items standard across all locations? How many contracts are managed? What is the cost of managing this many vendors? Are locations staying within budget? How is budget tracked? What are the typical variances? How many FTE’s are processing orders? What is the average burdened cost for an FTE? BWhen:Ordering cleaning and break room supplies Who:Various location end users What:Had one specific, standardized list of approved corporate items, competitively priced and available for next day delivery?

147 © Solution Selling, Inc. 2009  PAGE 146 www.solutionselling.com Pain Sheet® - Situational Fluency Prompter®: K-12 Example Pain: Job Title & Industry: Offering: Difficulty reducing costs CFO / Superintendent of Finance, School District US Communities, DPS REASONS (R2)IMPACT (I2)CAPABILITIES (C2) Is it because; Today…?Is this (pain) causing…?What if…; Would it help if…? A Document printing and storing costs are high? How do you print and store documents today? Do you have an internal print shop or is it outsourced? (If internal) How much does it cost to run the print shop? (If outsource) How many suppliers are you currently using? Are you able to capitalize on volume discounts? Is there a minimum order requirement? How much do you spend annually on outsourcing of printing? Increase in budget cuts and higher use of funds for non-core functioning areas and loss of staff positions? Lack of respect /confidence from the community? School reputation to be at risk? Is the Superintendent concerned? Potential lack of confidence that procurement efficiencies & process improvements are being fully leveraged? Is the Board of Education concerned? AWhen:Curriculum or other materials need to be printed Who:Employees What: So that: Could store all documents, forms, materials, etc. on a virtual website and have them printed as needed and delivered without an additional delivery charge facilities costs could be reduced? B Unaware of additional savings opportunities related to purchasing items and the procurement process? Have you done a cost analysis regarding the purchasing and procurement process of office and classroom supplies? Are you utilizing a just-in-time inventory program? How much of the district’s purchasing decisions are followed by the sites? How many vendors are being used? How do you manage compliance to programs? What is the cost of non-compliance? BWhen:Determining how to reduce costs Who:You What: So that: Could be provided with a cost analysis outlining viable alternative to improve efficiencies in the procurement process additional savings opportunities could be realized?

148 © Solution Selling, Inc. 2009  PAGE 147 www.solutionselling.com Differentiation Grid 10 0 CUSTOMER VALUE UNIQUENESSUNIQUENESS 10

149 © Solution Selling, Inc. 2009  PAGE 148 www.solutionselling.com Exercise Identify Office Depot Differentiators Purpose:  To identify Office Depot differentiators relative to uniqueness compared to competition and value perceived by the customer Activities:  Break into groups  Identify a competitor and a typical customer type you encounter on a regular basis  Create a list of Office Depot capabilities  Using the Differentiation Grid rate the capabilities by uniqueness compared to the chosen competitor and value perceived by the typical customer  Determine the differentiators  Be prepared to share

150 © Solution Selling, Inc. 2009  PAGE 149 www.solutionselling.com Differentiation GridCapabilities A B C D E F 0 12345678910 1 2 3 4 5 6 7 8 9 CUSTOMER VALUE UNIQUENESSUNIQUENESS

151 © Solution Selling, Inc. 2009  PAGE 150 www.solutionselling.com Request for Proposal (RFP): Response Tactics 1.Call the RFP sender, offer response to RFP in exchange for “three interviews” (quid pro quo). If granted, go to #4 * 2.If denied, send a letter stating that it will be impossible to respond to the RFP without the interviews 3.When called again, offer to respond to the RFP in exchange for three one-hour interviews 4.When interview is granted, ask each line executive the question, “What are the two primary issues behind the project?”, and create or reengineer buying visions 5.Respond to the RFP as agreed 6.Send a cover letter with the proposal with an “executive summary” to the person controlling the RFP. Document the buying vision of each line executive 7.Highlight the key capabilities in the proposal that match the buying visions of the power people on the buying committee 8.Send a copy of the letter and response to the line executive with whom you had the best rapport * If RFP is regulated, use strategy during the RFI stage. If no other option request a Bidder’s Conference Your Senior Executives must be in alignment with this strategy

152 © Solution Selling, Inc. 2009  PAGE 151 www.solutionselling.com RFP Initial Response Letter: Example Mr. / Ms. Consultant: Thank you for the opportunity to respond to the proposal from your client. We appreciate your confidence in us. As I mentioned on the phone, our practice is not to respond to Requests for Proposals until we have personally interviewed the department heads impacted by the scope of the project. We have found this practice enables us to be more thorough in our work; our potential client sees a more satisfactory implementation of the project. The client is the major beneficiary of this practice. If you would arrange for us to meet with the VP Operations*, VP Finance*, and the CIO*, we will then invest the time and resources to thoroughly respond to the RFP to your satisfaction. In the meantime, I have enclosed some detailed information on our products and services. If you have any further questions, don’t hesitate to call. Sincerely, Salesperson Mr. / Ms. Consultant: Thank you for the opportunity to respond to the proposal from your client. We appreciate your confidence in us. As I mentioned on the phone, our practice is not to respond to Requests for Proposals until we have personally interviewed the department heads impacted by the scope of the project. We have found this practice enables us to be more thorough in our work; our potential client sees a more satisfactory implementation of the project. The client is the major beneficiary of this practice. If you would arrange for us to meet with the VP Operations*, VP Finance*, and the CIO*, we will then invest the time and resources to thoroughly respond to the RFP to your satisfaction. In the meantime, I have enclosed some detailed information on our products and services. If you have any further questions, don’t hesitate to call. Sincerely, Salesperson * These job titles are determined after evaluating the scope of the RFP

153 © Solution Selling, Inc. 2009  PAGE 152 www.solutionselling.com RFP “Executive Summary” Letter: Example Mr. / Ms. Consultant: Thank you for arranging our meeting with the VP Operations, VP Finance, and the CIO. Their input proved to be invaluable in the preparation of our response. Attached is our response to your RFP. Based on our interviews, seven primary capabilities are sought by these executives: I have highlighted the four (4) capabilities which are within the RFP [out of the 163 questions].  Capability #1,  Capability #2,  Capability #3,  Capability #4, I have added three (3) capabilities that were outside the scope of the RFP as numbers 164, 165 and 166. The executives interviewed said these specific capabilities should also be included in the RFP.  Capability #5,  Capability #6,  Capability #7, Again, thank you for the opportunity to propose our products / services to your client. I look forward to working with you toward a successful implementation of these capabilities. Sincerely, Salesperson cc: J.D. Smith, VP Finance, TGI Mr. / Ms. Consultant: Thank you for arranging our meeting with the VP Operations, VP Finance, and the CIO. Their input proved to be invaluable in the preparation of our response. Attached is our response to your RFP. Based on our interviews, seven primary capabilities are sought by these executives: I have highlighted the four (4) capabilities which are within the RFP [out of the 163 questions].  Capability #1,  Capability #2,  Capability #3,  Capability #4, I have added three (3) capabilities that were outside the scope of the RFP as numbers 164, 165 and 166. The executives interviewed said these specific capabilities should also be included in the RFP.  Capability #5,  Capability #6,  Capability #7, Again, thank you for the opportunity to propose our products / services to your client. I look forward to working with you toward a successful implementation of these capabilities. Sincerely, Salesperson cc: J.D. Smith, VP Finance, TGI

154 © Solution Selling, Inc. 2009  PAGE 153 www.solutionselling.com Office Depot Sales Process: Propose & Close Stage Buying Process Define problems and opportunities Determine needs / requirements Select solution, evaluate risk, & finalize contracts Resolve issues & implement Evaluate success Sales Stage Plan and EngageDiagnose Propose and Close Activities New Business Conduct research on prospective accounts Identify contacts Retain and Grow Monitor client satisfaction Research buying trends Identify new opportunities across SKU’s and categories Create interest Gain initial meeting  Get pain admitted  Diagnose admitted pain and create or reengineer vision of Sponsor  Negotiate access to power  Confirm dialogue and agree upon next steps  Diagnose admitted pain and create or reengineer vision of Power Sponsor  Determine evaluation criteria and propose next steps  Confirm dialogue and agree upon plan of next steps  Execute Evaluation Plan steps  Engage appropriate overlay  Present solution  Refine value proposition  Agree upon transition plan  Identify success criteria  Create RFP to reflect Office Depot differentiators  Engage bid team  Respond to RFP or bid (if appropriate)  Gain final agreement  Finalize T’s & C’s Sales Tools and Resources  Dun & Bradstreet lists  Hoovers  Opportunity Assessment  Pain Chain®  Key Players List  Contact Strategy  Business Development Prompter  Reference Story  PPS Scorecard  PPS Funnel Calculator  PSS® Pre-Call Planner  9-Block Vision Processing Model®  Pain Sheet®  Sponsor Letter e-mail  Power Sponsor Letter/ e-mail  Evaluation Plan  Transition plan  Success Criteria  Negotiating Worksheet  Get-Give List  Resolving Customer Concerns (PSS ® Skill Guide Card) Verifiable Outcomes Opportunity Created in Sales Online Gain agreement to Evaluation Plan Signed Contract Yield Probability 0%25%75% Gain final agreement Finalize T’s & C’s

155 © Solution Selling, Inc. 2009  PAGE 154 www.solutionselling.com Basic Principles IF YOU ARE NOT READY TO WALK, YOU ARE NOT READY TO SELL DON’T CLOSE BEFORE IT IS CLOSEABLE BASIC PRINCIPLE BASIC PRINCIPLE

156 © Solution Selling, Inc. 2009  PAGE 155 www.solutionselling.com Buying Tactics Buyers:  Consider many alternatives  Know position in advance  Assign sponsor to each alternative  Never let you know you are winning  Never let you know you are losing  Price negotiate in reverse preference order  Take it away from you at least once  Are aware of your deadlines  Will take what you put on the table

157 © Solution Selling, Inc. 2009  PAGE 156 www.solutionselling.com Negotiating  Knowledge is power  Plan before you begin  Is it closeable during this meeting?  Know what you will accept  Know what you are willing to give  Seek to understand the true interests underlying buying positions taken  Give reluctantly and slowly (if necessary)  Withstand up to three “squeezes” by the buyer  Don’t give without getting  Be willing to walk away today  Salesperson must overcome emotional hurdle first  Buyer must believe he/she is getting the best price  Use a mutual win approach  If less than 100% of quota, do not negotiate alone

158 © Solution Selling, Inc. 2009  PAGE 157 www.solutionselling.com Negotiating Worksheet: Example Is it closeable today? Power to buy? Payback agreed to? VP Facilities L/T/A approvals? VP Facilities Plan completed? Known cost since: 2 months Stand 1 (Plan): “Our published plan shows an implementation starting on Monday. Is this issue worth the delay?” Stand 2 (Value): “When we reviewed the value, you told me you would be able to save over $200,000 per year. Is this still accurate?” Stand 3 (Pain): “The reason we have spent the last 2 months together is because your costs across your facilities is increasing. That issue is not going to go away until you gain these new capabilities. Has something changed?” Salesperson: “The only way I could do something for you is if you could do something for me.” Buyer (should ask): “Like what?” GET “Is it possible for you to… provide us an introduction to another line of business within your organization? Is that possible?” If the buyer indicates a concession, present your “give” GIVE “If you can… provide us an introduction to another line of business, then we are prepared to offer __________ which is worth $__________. Can we go forward on that basis?”

159 © Solution Selling, Inc. 2009  PAGE 158 www.solutionselling.com Get-Give List Your priority GET Value GIVE Projected customer priority  1 2 3 4 5 NOT NEGOTIABLE 1 2 3

160 © Solution Selling, Inc. 2009  PAGE 159 www.solutionselling.com Quid Pro Quo in Propose and Close “What things would the customer want from you and what would you want from the customer?”

161 © Solution Selling, Inc. 2009  PAGE 160 www.solutionselling.com Office Depot Sales Process: Implement & Fulfill Stages Buying Process Define problems and opportunities Determine needs / requirements Select solution, evaluate risk, & finalize contracts Resolve issues & implement Evaluate success Sales Stage Plan and EngageDiagnose Propose and CloseImplementFulfill Activities New Business  Conduct research on prospective accounts  Identify contacts Retain and Grow  Monitor client satisfaction  Research buying trends  Identify new opportunities across SKU’s and categories  Create interest  Gain initial meeting  Get pain admitted  Diagnose admitted pain and create or reengineer vision of Sponsor  Negotiate access to power  Confirm dialogue and agree upon next steps  Diagnose admitted pain and create or reengineer vision of Power Sponsor  Determine evaluation criteria and propose next steps  Confirm dialogue and agree upon plan of next steps  Execute Evaluation Plan steps  Engage appropriate overlay  Present solution  Refine value proposition  Agree upon transition plan  Identify success criteria  Create RFP to reflect Office Depot differentiators  Engage bid team  Respond to RFP or bid (if appropriate)  Finalize T’s & C’s  Engage implementation manager  Execute implementation plan  Engage IT Integration manager  Test order placement and billing  Measure success criteria  Resolve customer problems  Manage Office Depot team  Implement Competitive Strategies  Conduct business review  Monitor client satisfaction Sales Tools and Resources  Dun & Bradstreet lists  Hoovers  Opportunity Assessment  Pain Chain®  Key Players List  Contact Strategy  Business Development Prompter  Reference Story  PPS Scorecard  PPS Funnel Calculator  PSS® Pre-Call Planner  9-Block Vision Processing Model®  Pain Sheet®  Sponsor Letter/e-mail  Power Sponsor Letter/ e-mail  Evaluation Plan  Transition plan  Success Criteria  Negotiating Worksheet  Get-Give List  Resolving Customer Concerns (PSS ® Skill Guide Card) Implementation PlanSuccess Criteria Reference Stories Verifiable Outcomes Opportunity Created in Sales Online Gain agreement to Evaluation Plan Signed ContractFirst orders placed Yield Probability 0%25%75%100% Measure success criteria

162 © Solution Selling, Inc. 2009  PAGE 161 www.solutionselling.com Success Criteria: Example Results After 6 Months CriteriaBaselineQ1Q2Q3Q4 Shipping costs for cleaning and break room supplies/year 1,3 $85K / year 00 Minimum order fees 2 $9k / year00 Number of invoices processed 2 250 / month 225200 Inventory value (1 month extra per location) 2 $68K / month $50K / month $40K / month CBS spend per month 1,3 $70K / month $60K / month (1)VP Facilities (2)Office Manager (3)Procurement

163 © Solution Selling, Inc. 2009  PAGE 162 www.solutionselling.com Office Depot Sales Process Managing Your Territory Customer Buying Process Define problems and opportunities Determine needs / requirements Select solution, evaluate risk, & finalize contracts Resolve issues & implement Evaluate success Sales Stages Plan and EngageDiagnosePropose and CloseImplementFulfill New Business  Conduct opportunity planning  Conduct opportunity assessment Retain and Grow  Monitor client satisfaction  Research buying trends  Identify new opportunities across SKU’s and categories  Create interest  Gain initial meeting  Get pain admitted  Diagnose admitted pain and create or reengineer vision of Sponsor  Negotiate access to power  Confirm dialogue and agree upon next steps  Diagnose admitted pain and create or reengineer vision of Power Sponsor  Determine evaluation criteria and propose next steps  Confirm dialogue and agree upon plan of next steps  Execute Evaluation Plan steps  Engage appropriate overlay  Present solution  Refine value proposition  Agree upon transition plan  Identify success criteria  Create RFP to reflect Office Depot differentiators  Engage bid team  Respond to RFP or bid (if appropriate)  Finalize T’s & C’s  Engage implementation manager  Execute implementation plan  Engage IT Integration manager  Test order placement and billing  Measure success criteria  Resolve customer problems  Manage Office Depot team  Implement Competitive Strategies  Conduct business review  Monitor client satisfaction Verifiable Outcome  Opportunity created in Sales Online  Gain agreement to Evaluation Plan  Signed contract  First orders placed Sales Tools and Resources  Dun & Bradstreet lists  Hoovers  Opportunity Assessment  Pain Chain®  Key Players List  Contact Strategy  Business Development Prompter  Reference Story  PPS Scorecard  PPS Funnel Calculator  PSS® Pre-Call Planner  9-Block Vision Processing Model®  Pain Sheet®  Sponsor Letter/e-mail  Power Sponsor Letter/e-mail  Evaluation Plan  Transition plan  Success Criteria  Negotiating Worksheet  Get-Give List  Resolving Customer Concerns (PSS ® Skill Guide Card)  Implementation Plan  Success Criteria  Reference Stories Yield Percentages 25%75%100%

164 © Solution Selling, Inc. 2009  PAGE 163 www.solutionselling.com Customer Buying Process Define problems and opportunities Determine needs / requirements Select solution, evaluate risk, & finalize contracts Resolve issues & implement Evaluate success Sales Stages Plan and EngageDiagnosePropose and CloseImplementFulfill New Business  Conduct opportunity planning  Conduct opportunity assessment Retain and Grow  Monitor client satisfaction  Research buying trends  Identify new opportunities across SKU’s and categories  Create interest  Gain initial meeting  Get pain admitted  Diagnose admitted pain and create or reengineer vision of Sponsor  Negotiate access to power  Confirm dialogue and agree upon next steps  Diagnose admitted pain and create or reengineer vision of Power Sponsor  Determine evaluation criteria and propose next steps  Confirm dialogue and agree upon plan of next steps  Execute Evaluation Plan steps  Engage appropriate overlay  Present solution  Refine value proposition  Agree upon transition plan  Identify success criteria  Create RFP to reflect Office Depot differentiators  Engage bid team  Respond to RFP or bid (if appropriate)  Finalize T’s & C’s  Engage implementation manager  Execute implementation plan  Engage IT Integration manager  Test order placement and billing  Measure success criteria  Resolve customer problems  Manage Office Depot team  Implement Competitive Strategies  Conduct business review  Monitor client satisfaction Verifiable Outcome  Opportunity created in Sales Online  Gain agreement to Evaluation Plan  Signed contract  First orders placed Sales Tools and Resources  Dun & Bradstreet lists  Hoovers  Opportunity Assessment  Pain Chain®  Key Players List  Contact Strategy  Business Development Prompter  Reference Story  PPS Scorecard  PPS Funnel Calculator  PSS® Pre-Call Planner  9-Block Vision Processing Model®  Pain Sheet®  Sponsor Letter/e-mail  Power Sponsor Letter/e-mail  Evaluation Plan  Transition plan  Success Criteria  Negotiating Worksheet  Get-Give List  Resolving Customer Concerns (PSS ® Skill Guide Card)  Implementation Plan  Success Criteria  Reference Stories Yield Percentages 25%75%100% The Sales Online Sales Cycle is Supported Within the New Sales Process L ead P rospect O pportunity C ustomer

165 © Solution Selling, Inc. 2009  PAGE 164 www.solutionselling.com Pipeline Analysis Worksheet Annual View: Yield Calculation ExampleAQuota:$ 5,000,000BAverage sell cycle length:6 months CAverage opportunity size:$ 60,000DMonths left in the year:10 EYear-to-date attainment not reflected in the completed step “Fulfill”:$ 500,000 Step completedRevenueXYield %=Yield Diagnose$ 1,500,000X25%=$375,000 Propose & Close$ 750,000X75%=$562,500 Implement$ 300,000X100%=$300,000 Pipeline revenue total:$ 2,550,000FPipeline yield total:=$1,237,500 GProjected yield for the year (F / B) x (D):$2,062,500 HGap * (A – G – E):* Gaps are negative($2,437,500) IAdditional “Diagnose” opportunities required to close the gap (H / C) x 25:1,016

166 © Solution Selling, Inc. 2009  PAGE 165 www.solutionselling.com Tactical Approaches to Fill a Gap PROCESS ACTIONPROCESS JOB AIDS Increase your win odds  Disengage when appropriate  Qualification with Power Sponsor  Focus on working with Power  Opportunity Assessment Worksheet  Competitive Strategy Selector  Power Sponsor Letter/e-mail Increase the size of your current opportunities  Focus on total solution  Identify benefit and value in other parts of the organization  Broaden the scope of the solution  Pain Chain®  Pain Sheet®  Value Proposition  9 Block Vision Processing Model® Shorten your average sell cycle length  Early qualification  Disengage where appropriate  Mutual agreement to proceed  Improve speed through sell cycles  Get to Power more quickly  Sponsor / Power Sponsor Letter/e-mail  Evaluation Plan  Opportunity Plan  Competitive Strategy Selector  Strategic Alignment Prompter Find more opportunities during “planning”  Focus on latent pain  Leverage successes  Increase business development  Increase marketing campaigns  Success Criteria  Value Proposition  Reference Story  Key Players List  Business Development Prompter  Opportunity Assessment Worksheet

167 © Solution Selling, Inc. 2009  PAGE 166 www.solutionselling.com Strength of Sale Check Worksheet – “October 1st Example” PAIN SCALE Customer: Rocket Opportunity: Database Date Updated: Oct 1 _____ Sep 17 _____ 0No identification of need or pain by customer 1Salesperson assumes Sponsor’s needs 2Sponsor admits needs 3Sponsor admits reasons / symptoms for pain 4Sponsor admits pain 5Salesperson documents pain, Sponsor agrees 6Salesperson assumes Power Sponsor’s needs 7Power Sponsor admits needs 8Power admits reasons / symptoms for pain 9Power Sponsor admits pain 10Salesperson documents pain, Power agrees POWER SCALE 0 Power Sponsor not identified 1 Decision process revealed by Sponsor 2 Potential Power Sponsor identified 3 Bargain for access to Power agreed by Sponsor 4 Access to Power Sponsor achieved 5 Buying and decision processes confirmed 6 Power Sponsor agreed to explore further 7 Power Sponsor agreed to Evaluation Plan 8 Power Sponsor agreed to proposal content 9 Power Sponsor provided verbal approval 10Power approved/provided contract signature VISION SCALEVALUE SCALECONTROL SCALE 0 No vision or competitive vision established 0 Customer explores solution, value not identified 0 No follow-up documentation of client conversations 1 Vision for Sponsor created in product terms 1 Salesperson identifies customer value proposition 1 Lead email sent 2 Vision for Sponsor created in situational terms 2 Customer agrees to explore the value proposition 2 Lead email agreed upon or modified 3 Differentiated vision created with Sponsor 3 Value discovered associated with Pain 3 Sponsor email sent 4 Differentiated vision documented to Sponsor 4 Value discovered associated with Vision 4 Sponsor email agree upon or modified 5 Documentation agreed to by Sponsor 5 Customer confirms or modifies potential value 5 Seller gained agreement to pre-proposal review 6 Vision for Power created in product terms 6 Additional beneficiaries included in value potential 6 Power Sponsor (email) & Evaluation Plan sent 7 Vision for Power created in situational terms 7 Value analysis conducted – driven by salesperson 7 Email and Evaluation Plan agree upon or modified 8 Differentiated vision created with Power 8 Value analysis conducted – driven by customer 8 First Go-No Go Step completed 9 Differentiated vision documented to Power 9 Value analysis conducted – jointly produced 9 Pre-proposal review conducted 10 Documentation agreed to by Power 10 Value of solution meets decision criteria 10 Evaluation Plan completed Pain 10 00 00 0 Control Power Value Vision

168 © Solution Selling, Inc. 2009  PAGE 167 www.solutionselling.com Office Depot Sales Process Getting Started Customer Buying Process Define problems and opportunities Determine needs / requirements Select solution, evaluate risk, & finalize contracts Resolve issues & implement Evaluate success Sales Stages Plan and EngageDiagnosePropose and CloseImplementFulfill New Business  Conduct opportunity planning  Conduct opportunity assessment Retain and Grow  Monitor client satisfaction  Research buying trends  Identify new opportunities across SKU’s and categories  Create interest  Gain initial meeting  Get pain admitted  Diagnose admitted pain and create or reengineer vision of Sponsor  Negotiate access to power  Confirm dialogue and agree upon next steps  Diagnose admitted pain and create or reengineer vision of Power Sponsor  Determine evaluation criteria and propose next steps  Confirm dialogue and agree upon plan of next steps  Execute Evaluation Plan steps  Engage appropriate overlay  Present solution  Refine value proposition  Agree upon transition plan  Identify success criteria  Create RFP to reflect Office Depot differentiators  Engage bid team  Respond to RFP or bid (if appropriate)  Finalize T’s & C’s  Engage implementation manager  Execute implementation plan  Engage IT Integration manager  Test order placement and billing  Measure success criteria  Resolve customer problems  Manage Office Depot team  Implement Competitive Strategies  Conduct business review  Monitor client satisfaction Verifiable Outcome  Opportunity created in Sales Online  Gain agreement to Evaluation Plan  Signed contract  First orders placed Sales Tools and Resources  Dun & Bradstreet lists  Hoovers  Opportunity Assessment  Pain Chain®  Key Players List  Contact Strategy  Business Development Prompter  Reference Story  PPS Scorecard  PPS Funnel Calculator  PSS® Pre-Call Planner  9-Block Vision Processing Model®  Pain Sheet®  Sponsor Letter/e-mail  Power Sponsor Letter/e-mail  Evaluation Plan  Transition plan  Success Criteria  Negotiating Worksheet  Get-Give List  Resolving Customer Concerns (PSS ® Skill Guide Card)  Implementation Plan  Success Criteria  Reference Stories Yield Percentages 25%75%100%

169 © Solution Selling, Inc. 2009  PAGE 168 www.solutionselling.com The Impact of Different Levels of Support Phase I: “Easy” Phase II: “Work” Phase III: “Habit” Time Results Sellers Alone Manager Support Executive Support Organizational Support Low Hanging FruitUse it 18-21 TimesPart of the Fabric Base

170 © Solution Selling, Inc. 2009  PAGE 169 www.solutionselling.com Getting Started – Salespeople: Example First WeekFirst MonthOngoing 1.Reserve “sacred” time on your calendar for prospecting 2.Perform an opportunity assessment on your top 5 opportunities 3.Schedule 2 refocus meetings to clarify an element of the formula for a successful sale  Sale = P x P x V x V x C 4.Utilize these job aids with 2 prospects:  9 Block Vision Processing Model® with Pain Sheet®  Sponsor email  Power Sponsor email and Evaluation Plan 5.Make 2 vision processing calls focused on one of the following:  “drilling down” on the cost of doing business today  Creating compelling action visions including value  Exploring deeper the impact on others 1.Grade all opportunities using the Pipeline Milestones Worksheet™ 2.Add one additional job aid or concept each week until fully utilizing all 3.Build a Pain Chain®, Pain Sheet® and Value Analysis for your top 5 opportunities 4.Take back all proposals over 30 days old 5.Interview 1 existing customer and write a Reference Story (monthly) 6.Establish success criteria for 1 opportunity (monthly) 1.Use the Solution Selling® sales process to manage your “territory” 2.For all opportunities, utilize:  Sponsor emails  Power Sponsor emails and Evaluation Plans  The Pipeline Milestones Worksheet™  Reference Stories (monthly)  Sacred time for prospecting 3.Review key opportunities with management

171 © Solution Selling, Inc. 2009  PAGE 170 www.solutionselling.com Exercise Getting Started Purpose:  To identify sales process / Solution Selling® concepts or tools that you can implement immediately Activities:  Write down the top 3 things you were exposed to during this session that you plan to implement immediately back in the field  New things you learned  Things you plan on doing differently  Etc.  Be prepared to share your thoughts  After the workshop, discuss with your manager how you will implement the list and how they can help you List: 1.____________________________________________________________________ 2.____________________________________________________________________ 3.____________________________________________________________________

172 © Solution Selling, Inc. 2009  PAGE 171 www.solutionselling.com Next Steps Participate in the post workshop assessment:  You will receive an e-mail after the workshop with the link below  https://www.surveymonkey.com/s.aspx?sm=KQBn3BggOpoCAE0za_2fs_2bdw_3d_3dhttps://www.surveymonkey.com/s.aspx?sm=KQBn3BggOpoCAE0za_2fs_2bdw_3d_3d Continue to use Solution Selling® eLearning:  Take additional modules for areas that need improvement  Will be used by management for reinforcement

173 © Solution Selling, Inc. 2009  PAGE 172 www.solutionselling.com Effective Habits Integration of Knowledge, Skills and Desire “Creating a habit requires work in all three areas… ----------------------------------------------- it is sometimes a painful process. It’s a change motivated by a higher purpose, by the willingness to subordinate what you think you want now for what you want later.” Source: Covey, Stephen R. The 7 Habits of Highly Effective People New York: Simon and Schuster, 1989. Used with permission. SKILLS (How to) DESIRE (Want to) KNOWLEDGE (What to do, why to) HABITS


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