1. UC Berkeley Sales Lecture Jay Fulcher Berkeley, California March 7, 2005

3. Agenda How to build sales leverage The science of selling Tools of the trade Team building Organizational dynamics The customer impression The winning formula

4. Background Sales, sales executive, global operations, Division president, Pres& COO, BOD member, investor, advisor Large: SAP; PeopleSoft Small: Red Pepper; SkillsVillage BOD Member: Notiva, Saqqara, HotChalk, 100 Fly, SJSU CofB Current: Agile Software (NASDAQ: AGIL)

5. Disclaimer… The following views and opinions are based on nearly 20 years experience in enterprise software, where the basic premise is to sell an intangible product, whose value is difficult to prove and where there is a poor track record of delivering results, to an increasingly skeptical customer tired of “being sold”.

6. Sales leverage What is it? How do you get it? If Marketing’s job is to make the phone ring…what about the sales function? Starts with clarity on… Who? What? Why does it matter? Trusted advisor; consultative expert

7. The role of ‘Marketing’ “…make the phone ring” Lead generation (versus branding) Air cover Provocations (use cases, best practices) 4 P’s (price, promotion, …) Positioning Targets

8. The role of ‘Sales’ Pain Politics Vision match (Rx) Deal structure (and close) Predictable revenue Test value proposition

9. The science of selling The complex sale Blueprint for success Strategy (frontal, flanking, pre-emptive, etc.) Politics & pain (stakeholder analysis) Consultative selling (“students”) Understand buying cycle vs. selling cycle Coordinated activities (right issues, people, time) Test It’s all in the execution

10. Key sales questions What pain does the client have? Will they buy anything? Are they a qualified prospect? Can I establish competitive preference? What is their decision process? What part will each person play? When will they decide? Who will influence the decision? What is my plan to win?

11. Tools of the trade Sales methodology Pipeline (tracking, adjustments) Sales tools ROI/TCO; Customer successes; Value Training Hiring profile Compensation

12. Direct versus indirect channels Direct channel success demands talent Tools, training, incentives Deal qualification Indirect channels are tricky Mindshare (regular monitoring) “Extension” of company Direct vs. indirect

13. Team building Leadership Profile (“five tool player”) Power, average, runs, throws, fields Essential characterisitics Listens, connects, inspires, decides, leads Hiring rigor Inverted hierarchy Purpose

14. The customer impression Who can I trust? Who knows my business? How can I lessen my risk? A “you-bet-the-company” decision Expertise and integrity Aligned goals Shared rewards Trusted partner?

15. Going global Agree, then build on the foundation Global is now a business imperative Careful -- commitments are forever Develop an ecosystem Theory of adjacency (geo’s, industries) Each market is unique Think global, act local

16. The winning formula Cash is king (positive cash flow) If your gut tells you something is wrong, it is already too late Don’t justify mediocrity Build and sustain a culture of performance and accountability Celebrate your successes

17. Tales from the Real World: Agile Software Business transformation Department to enterprise Small $$ to Big $$ transactions Path to profitability (losing $45M two years ago) Sales re-build (team, comp, focus, tools) 11 consecutive quarters of record growth 6 acquisitions (accretive, complimentary) “Overnight” success (started with Sales) Customer results are the focus Big, bad competitors

18. Five common CEO mistakes Slow to act Nobody ever got fired too soon Hope is not a strategy Don’t ignore your customers – stay close Be transparent with Board Employee intimacy (or lack thereof)

19. Questions?