Credit, Copyright, and Contact Information Trademark Notice: The following trademarks and service marks are owned by Sales Performance Holding Company.

Office Depot 2 Day Workshop for Sales Managers

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 USA Phone: FAX 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 Karen Allinder inserted this slide here. I didn’t see it in this deck. AchieveGlobal reference added in RED © Solution Selling, Inc. • 2007

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 Purpose: To position the objectives of the workshop Key Instructor Notes: Often the “workshop objectives” are revisited in the course evaluation (i.e. An evaluation question often asked includes “Were the course objectives met?”) The facilitator may want to ask participants if they have additional objectives Often a personal touch is to tell the participants that a personal objective is for them to say at the end of the session that it was a good use of their time Transition: “We will accomplish these objectives over the next # days using the following agenda…” © Solution Selling, Inc. • 2007

Office Depot Sales Process Elements
Buying Process Define problems and opportunities Determine needs / requirements Select solution, evaluate risk, & finalize contracts Resolve issues & implement Evaluate success Sales Stage Plan and Engage Diagnose Propose and Close Implement Fulfill Verifiable Outcomes Opportunity Created in Sales Online Gain agreement with Power Sponsor to next steps Signed contract / Gain verbal agreement to buy First orders placed 7-7-7 Goals Accomplished Sales Tools and Resources Key Players List Contact Strategy PSS® Pre-Call Planner Power Sponsor Letter/ Transition Plan Get-Give List Implementation Plan Reference Story Success Criteria Yield probabilities: these are the percentages that will be put in Oracle as a way to help track opportunity tracking. These are a starting point and may change over time. More important for sales management to understand their pipeline. Yield Probability 25% 75% 100% © Solution Selling, Inc. • 2007

AchieveGlobal Models Will Be Used Within the New Sales Process
Professional Prospecting Skills®: Professional Selling Skills®: Needs Satisfaction Selling Process. Facilitator SAY… SPI’s Solution Selling® continues to build on the Needs Satisfaction Selling™ philosophy taught in Professional Selling Skills® (PSS) and Professional Prospecting Skills™ (PPS). In PSS, you learned how to manage sales conversations in a consultative, mutual fashion. This was accomplished via the methodology of Open/Probe/Support/Close. In PPS, you learned how to utilize the Prepare/Contact/Assess process to gain appointments with prospects in a systematic fashion Now, we are focused on what happens as you string all these conversations together over the course of an end-to-end sales cycle from Engagement through to Proposals and ultimately Fulfillment. The Solution Selling™ program will outline what this sales process looks like on a phase by phase basis and will provide you with specific skills, tools and techniques you will need to move your opportunities successfully through the sales cycle. Goal: To make informed, Mutually Beneficial Decisions AchieveGlobal®, Professional Selling Skills®, and Professional Prospecting Skills® are registered trademarks and service marks of AchieveGlobal, Inc. © Solution Selling, Inc. • 2007

Newly acquired customers
80 SPI and AchieveGlobal Tools Will Help Sellers Have Conversations with Customers at Various Points in their Lifecycle New customers Acquire A New Business Newly acquired customers Convert B Conversion Loyal customers Grow C Share of Wallet “At-risk” customers Retain D Retention

20% 80% Eagles Journeypeople Talent Assessment Are intuitive
Have conversations Ask questions Eagles 20% Make presentations Make statements Process is key to success Purpose: To establish the characteristics of “eagle sellers” and “journeypeople sellers”, to highlight their differences, and to correlate how the use of process impacts each segment Key Instructor Notes: The “20-80” rule applies here. Often a sales force is made up of 20% Eagles and 80% Journeypeople Explore the characteristics of eagles (the bird). Conclude that successful sellers are called “Eagles” because they are perceptive but tend to be rare and act alone (not in flocks) Are intuitive – meaning If you asked an eagle, “How did you know to do that during the sell cycle” – they may not be able to exactly describe to you how they did it they are usually competent in their approach. They may say “it comes natural to me”. – we call this “unconscious competent” Process is key to success – They can be good salespeople who appreciate structure but are less intuitive. If they can emulate what eagles do via a replicable process that defines the eagle behavior, they can become more successful, consistent performers. If we can get eagles to see the value in using process they can become more consistent and really unbeatable.” Transition: “So what are the components of eagle behavior, that as journeypeople one may want to emulate… and as eagles, they would want to recognize and utilize more consistently? Answer: components of ‘situational fluency’ …” Additional Insight: Eagles can’t often make poor managers because they have difficulty coaching their sellers. They can’t always tell them what they are doing wrong because of their “unconscious competence”. They may say “just watch how I do it.” If you apply the theory of Geoffrey Moore’s “Technology Adoption Lifecycle” (from Crossing the Chasm). You can make the case that if the market is segmented into “innovators and early adopters” – they are “visionary” (20% of the market) and “majority and laggards” – they are “conservative” (80% of the market) then you often have a “journeyperson” selling to a late market buyer. So 64% of the time (80% x 80%) you have your less-intuitive seller interacting with a buyer who is not visionary and tends to be conservative. This is a tough “sell”. Process becomes key so that the journeyperson can better align with the conservative buyer. (Additionally, eagles selling to visionaries happens 4% of the time, eagles to conservatives and journeypeople to visionaries happen 16% of the time). Journeypeople 80% © Solution Selling, Inc. • 2007

Situational Fluency What Buyers Should Expect from Salespeople
Situational Knowledge Capability Knowledge How Do We Integrate? People Skills Selling Skills Purpose: To define the four components of situational fluency and to position how the sales execution methodology helps integrate these disparate components Key Instructor Notes: The facilitator can better emphasize the purpose by verbalizing or flip-charting the following dialogue: People skills - These are the professional and personal characteristics. (e.g. likeable, easy to talk to, genuine) Selling skills - This is the ability to execute tactics for consistent performance. (e.g. Need definition, ability to close, establish customer loyalty, etc.) Situational knowledge - This is having an understanding of the issues facing specific job titles in a given industry. (e.g. Knowing the issues of VPs of Sales face in the manufacturing industry) Capability knowledge? … This is not only knowing your offering, but also how the capabilities of your offering help someone. (e.g. The ability to articulate how your offering can specifically help that VP of Sales with his/her issue) What two circles are sales managers looking for in sellers? (Answer: People and Selling Skills)…What two circles are customers looking for in sellers? (Answer: Situation and Capability Knowledge) We might be out of alignment with what our customers are demanding Through training and education, most organizations help salespeople in these four areas over time; however, most of this effort is usually disparate. This methodology attempts to integrate these four key components of “situational fluency” Transition: “The instruction team and class will introduce themselves in a moment but as part of that introduction I want to look at some specific challenges that face salespeople today. Here are some selling and managing difficulties that we’ve heard from other attendees.” Situational Fluency: Integration of knowledge and skills by the salesperson for “eagle” performance © Solution Selling, Inc. • 2007

Selling Difficulties: Examples
“I have trouble maximizing my time in the field and may not be calling on the right customers.” “Customers only care about price.” “I was a BDM and now I have trouble with account management.” “My experience is primarily working with existing customers so I have challenges with prospecting and finding new customers.” “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.” Purpose: To “give to get” – sharing difficulties will help the participants more openly share their own Key Instructor Notes: The facilitator may ask if there are other challenges worth adding to the list Transition: “Additionally, here are some of the sales leadership challenges we have heard from our clients.” © Solution Selling, Inc. • 2007

Managing Difficulties: Example
“I am unable to determine the real status of an opportunity.” “I am unable to get an accurate forecast from my sales reps.” “I know when a salesperson is not meeting quota, but I don’t know why.” “I have key opportunities on my forecast, and I am not sure they will close this quarter or ever!” “My salespeople see our sales process as unnecessary work.”

Exercise: Introduction and Management Difficulties
Purpose: To introduce yourself to the facilitation team and other participants To identify your specific management challenge(s) Activities: Record the following information: Your name and location Your title and/or responsibility The top managing difficulty that you may be experiencing Note: Difficulties should be challenges over which you have control (i.e. no mention of “my seller won’t…” or “my product or service doesn’t…”) Purpose: To provide relevance to any managers in the audience as well as show how selling issues can impact management Key Instructor Notes: Set a specific time limit for the exercise Based on the number of participants, you may choose to have the class work individually or in small groups It is sometimes useful to appoint a spokesperson to share the information or make the introductions on behave of the “team”. Another approach is to have the participants pair up and then introduce each other (an “ice-breaker” approach) This may be an appropriate time to introduce the instruction team If the participants list their difficulties on a flipchart, you may want to post them on the wall in order to refer to as the material presents itself in relationship to the difficulties. You also may want to end the session by referring back to the difficulties. (E.g. “Did you learn something during this workshop that will help you address your difficulty?”) Transition: “Reflecting on some of the difficulties that were mentioned, we will focus on particular selling skills (during the workshop) that should help address some of the challenges you listed. Let’s look at some of those specific key selling skills.” © Solution Selling, Inc. • 2007

Key Selling Skills Sales Process Steps PLAN & ENGAGE DIAGNOSE
PROPOSE & CLOSE IMPLEMENT FULFILL Prospecting Developing Needs Developing and Delivering Value Managing Proof Accessing Power Qualifying / Disqualifying Purpose: To define key terminology (used within the sales process) that will be referenced throughout the workshop Key Instructor Notes: Prospecting: The ability to stimulate interest where there is none Developing needs: The skill of developing needs comes in two categories…creating visions and reengineering visions Vision Creation – The ability to create a vision in the mind of the buyer of how they will be better in the future as a result of your capabilities before introducing your product or service Vision Reengineering – The ability to change or expand an existing customer vision biased toward your product or service, but the buyer retains ownership of the new vision Developing and delivering value: –The ability to establish quantifiable value with the buyer that provides him/her a compelling reason to take action and then provide capabilities that deliver the expected value Managing proof: – The skill of introducing the appropriate level of proof at the appropriate time in the sell cycle (e.g. don’t “waste” good proof on someone who can’t make a purchase decision or further the sell) Accessing power: – The discipline of always attempting to interact with the “decision maker(s)” even when out of one’s comfort zone or the buyer’s normal buying process Qualifying / Disqualifying: – Qualifying is the ability to bring an opportunity to your standard based on what a buyer does (not what they say). If not, then the ability to (disqualifying) disengage from the opportunity Controlling the process: – The ability to exert command (control) over the buying process NOT the buyer Negotiating: – When does negotiating take place in the sell cycle? When should it? – The ability to never give a concession without first getting something (quid pro quo). What’s the perceived value of something you get for free? Closing: – Often too much emphasis is placed on closing. Through adherence to process, closure can become less of an event. It can be managed as a series of mini-closes that is pervasive throughout a sell cycle not just at the end. Closing can also be viewed as the natural evolution of a sell cycle Aligning: What do you think of when you here the word aligning or alignment? (You may relate the definition to an automobile being out of alignment – i.e. only bad things happen) – Understanding where the buyer is in their buying cycle both behaviorally and procedurally and aligning your selling activities accordingly Transition: “Alignment is a dynamic where selling activities occur in conjunction with how buyers buy.” Controlling the Process Negotiating / Closing Aligning © Solution Selling, Inc. • 2007

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 Office Depot Sales Process Plan and Engage Diagnose Propose And Close Implement Fulfill Quid pro quo links to the idea of mutual and mutuality discussed in PSS Quid Pro Quo and Negotiating © Solution Selling, Inc. • 2007

Shifting Buyer Concerns How Organizations Plan, Evaluate and Buy
Buying Phases Phase 0: Conduct Planning Phase I: Determine Needs Phase II: Evaluate Alternatives Phase III: Evaluate Risk Level of Concern Strategy Projects Issues Priorities Budgets Risk Price Needs Solution Remember the 3 buying phases that customers go through? The first phase starts when the customer decides to buy something to address a business problem, to avoid one in the future, or capitalize on a future opportunity. But, in reality all businesses go through a phase 0 in which they: Set their strategy Identify issues that may be roadblocks to the strategy Identify projects to implement the strategy Establish tactics to implement the strategy Create a budget to fund the priority projects. Often the Phase 0 planning phase is done annually as companies budget for the next year. If we are having conversations with customers that are about strategies before they decide to buy anything we can be consultants to them and guide their strategies. But these conversations cannot be sales campaigns if we are to have the kind of relationship we want to have with the executive. If we are perceived as trying to sell at this point, we’ll never connect with the executive. Why? Because they are not buying. Their focus is on their strategy: how to move their company in the direction they want to move it. Of course, they realize you are in the business of selling. But true consultants focus on the customer first before they try to sell anything. So we must stay away from product-talk and even solution-talk. That comes later. And it may not be with this executive. It will probably be with someone the executive connects us with, but later. Transition: How does this idea of getting in at Phase 0 relate to the idea of latent opportunities? Remember the concept of a “latent” opportunity? That is the situation when you get to the customer before they know what they want to buy, or even before they have decided to buy anything. A latent opportunity– one that you create– is started any time before the customer has determined what they want to buy. At the end of Phase I they know what they want to buy, their needs. So latent opportunities are started in Phase 0 or I. An active opportunity– one when the customer already knows what they want to buy before you get involved– starts in Phase II. Our goal in selling to executives is to participate in the customer executive’s phase 0 with the objective to influence the strategy and plans towards needing what we are selling, and to become column A when the opportunity becomes active. Decision to solve a priority problem Time © Solution Selling, Inc. • 2007

Basic Principle BASIC PRINCIPLE NO PAIN, NO CHANGE
Purpose: To position one of the key basic principles within Solution Selling®. Key Instructor Notes: The principles “no pain, no change” is a play on words. Some people may recognize the old fitness adage “no pain, no gain!” Pain usually manifests itself as a business driver for change. Pain is at the individual level. Let’s look at specific criteria for pain that we will refer to during the rest of this workshop.” Potential missed opportunity” is also a pain. For example, a company may be profitable but not as profitable as it could be. There is a missed opportunity. One challenge with missed opportunities is that people are more likely to solve a negative than they are to improve an average situation Note: Pain is usually a word used during workshops for training purposes. The phrase “critical business issue” may be a more acceptable phrase to use in front of customers “Pain” links to the idea of customer business issues as taught in PPS and needs/needs behind the need in PSS Transition: “Whether someone calls it a pain, a critical business issue, a business driver, etc… the most important thing is that sellers recognize the characteristics of what constitutes a pain...” Pain = Problem, Critical Business Issue or Potential Missed Opportunity © Solution Selling, Inc. • 2007

Criteria for Pain Job specific How the prospect is: Measured Motivated
Recognized Rewarded Viewed by peers Personal Provides a compelling reason to act Purpose: To provide definition around the term “pain” Key Instructor Notes: Most employees of an organization are likely be concerned about key issues that impact the company’s performance; however that doesn’t mean they are “measured” or “motivated” by addressing it or are they compensated / rewards for addressing it. e.g. A VP of Human Resources may care about the revenue production of their company but they are likely chartered with addressing “effective hiring” or “employee retention” while a VP of Sales is more likely to be held responsible for attaining revenue targets Transition: “Pains usually fall into 1 of 3 categories...” © Solution Selling, Inc. • 2007

? 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 Purpose: To provide examples of “pain” Key Instructor Notes: Read the list Ask the question to the participants “What are some others?” (Record them on a flipchart) Referencing some of the examples of pain, ask the question “Using the criteria from the prior page, who might be responsible for this pain?... And this one?... And this one?” Ask the question, “What is the common denominator?” (answer: money) “Most pains can be tied to a financial impact.” Note: “Compliance” may sometimes tie more to pains associated with shrinking budgets or declining service levels and may be more difficult to financially equate. Transition: “pain is one of the states you’ll find buyer in…?” © Solution Selling, Inc. • 2007

Basic Principle: There are Four Levels of Buyer Need
Level Four: Active Evaluation Level Three: Vision of a Solution Level Two: Admitted Pain Purpose: To define four distinct states that sellers may find buyer in. Key Instructor Notes: The facilitator may chose to define the four levels on this page or on the next page Level Four: Active Evaluation Power person driving evaluation Business issues are defined Requirements are documented Evaluation team in place Level Three: Vision of a Solution Buyer accepts responsibility for solving problem Buyer can visualize when, who, and what will enable them to address the reasons for their pain Level Two: Admitted Pain Buyer is willing to discuss problems, difficulties or dissatisfaction with the existing situation Buyer admits the problem, but does not know how to solve it Level One: Latent Pain Buyer is not actively attempting to address a problem for which the salesperson can see a solution Buyer is unaware a solution exists or may have failed at previous attempts to solve the problem Buyer has rationalized solutions viewed so far as “too expensive,” “too complicated,” or “too risky,” Level Four: Active Evaluation : this equates to the confirm existence of a need Level Three: Vision of a Solution : this equates to Examine Effects Level Two: Admitted Pain: Identify Opportunities Level One: Latent Pain: AchieveGlobal calls this phase exploring customer’s circumstances Transition: “Why is it important to distinguish between these various levels?.” Level One: Latent Pain © Solution Selling, Inc. • 2007

Conceptual Sales Territory
Of all the people who could benefit from your offering… What % are actively evaluating? Not Looking Active * Purpose: To stress the strategic importance of engaging in the “not active” portion of the market in order to exhibit more buying process control Key Instructor Notes: The instructor may find it effective to “play out” this teach point by charting the above graphic on a flipchart and filling in the pie portions based on participant feedback If this circle / pie represents your territory, of all the people in your territory who could benefit from your offering, what percentage are actively evaluating - looking to acquire those capabilities? The usual answer to this question tends to range from 1% to 20%. Large disparities in this answer may occur for organizations with great market/mind share or for a particular offering If (90)% could benefit from your capabilities, why are they NOT actively evaluating right now? Usually the answers range from “they don’t see the value” to “they don’t know they have a problem”. Which portion of the pie do you think most salespeople spend their time… and why? The usual answer is “Active” because it is “live” and buyers wants to take action. Why are these people looking?” (Pointing to the “Looking” portion of the pie chart) The usual answer is “because they have a problem or pain that they need to resolve” What about these people, do these people have problems? (Pointing to the “Not Looking” portion of the pie chart)... “Yes (they do have problems), so why don’t salespeople spend more time over in the “Not Looking”? The usual answers are “takes longer” and “it’s harder to get a buyer to want to look versus someone who already knows what they want.” The instructor can then position the concept that buyers who are “looking” were at one time “not looking” and that some selling organization likely helped them formulate their buying requirements. Then the buyer “shops” (Level 4) in the form of an active evaluation… Transition: “Let’s look at that due diligence process.” * Power person driving evaluation Business issues defined Requirements documented Evaluation team in place © Solution Selling, Inc. • 2007

How Organizations Evaluate and Buy
Not Looking Active Requirements Company A Company B Company C    Purpose: To depict how buyers buy and stress the disadvantage of coming in late to opportunities Key Instructor Notes: The instructor may find it effective to “play out” this teach point by charting the above graphic on a flipchart and filling in the pie portions based on participant feedback Usually a buying organization will develop a list of requirements for a potential purchase. That list can be developed internally or with a third party, but normally it is developed from vendor input. (Even an internal or third party’s list of requirements is usually vendor influenced, either consciously or unconsciously) Column A’s capabilities match “one-for-one” with the developed list of requirements. Why? The vendor who engages first gets a chance to mold / direct / influence the development of the requirements Then the buyer (usually) performs due diligence. They seek bids from other vendors. All things being fairly equal between vendors, the buyer tends to favor the Column A vendor. Why? It is due to the phenomenon of “the bond of joint discovery” – an inherent trust developed between the vendor and buyer as they jointly figured out how they can address an existing business issue of the buyer Note how Company B’s and C’s capabilities fall short of the requirements. These companies are being used to validate what the buyer really wants to do with Company A. We call these companies “column fodder”… much like cannon fodder Cannon fodder: Soldiers deemed expendable during battle. E.g. (US Civil War) Two sides lining up on a battlefield with one allowing the first few waves of troops to advance against the other’s cannon fire. Once the primary cannon fire is exhausted, the more-skilled troops engage in the battle Transition: “Now that we’ve looked at… (1) how buyers buy, (2) seller alignment and (3) the different levels of buyer need, we now have a foundation by which sales process can be architected…” © Solution Selling, Inc. • 2007

Sales Process Flow Model
Latent or Admitted Pain Potential opportunity starting points Vision or Active Evaluation Conduct pre-call planning and research Perform opportunity assessment Stimulate interest Go? No No Yes Define “pain” or critical business issue Yes Yes Negotiate access to power Select competitive strategy No Diagnose and create vision of company-biased solution Yes At power ? Yes Reengineer vision with company differentiators No Yes No 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 Purpose: To introduce another view of the sales process Key Instructor Notes: Another view of the sales process. There are 2 starting points: one for latent and admitted pain; another for vision or active evaluation For today and part of tomorrow, we are going to focus on the latent side and how to create your own opportunities Reach final agreement Measure and leverage success criteria © Solution Selling, Inc. • 2007

Office Depot Sales Process: Plan and Engage Stage
Buying Process Define problems and opportunities Sales Stage Plan 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

Identify Opportunities through Planning
Territory Territory Planning Account Planning Existing Accounts New Accounts Account Account Account Account Account Opportunity Planning Purpose: To position that planning takes place at multiple levels leading to specific (potential) opportunities Key Instructor Notes: Whether someone conducts Territory Planning or Account Planning (or both) they are looking to identify potential opportunities that they can leverage to begin a sell cycle Transition: “The following shows the type of activities one might engage in for these different levels of planning…” Opp Opp Opp Opp Opp © Solution Selling, Inc. • 2007

Qualification Criteria: Example at Territory Level Finding the “Sweet Spot”
Criterion Measure Points # of White Collar Workers 25-50 1 50-75 3 75-100 5 Chamber / Association Member Yes No Referred to Office Depot by another customer High revenue producing verticals Legal Medical Education Close proximity to Office Depot stores Currently under “Contract” or receiving customized pricing with competitor 25-50 WCW Yes = 1 No = 3 50-75 WCW No = 5 WCW No = 7 Not mandated by corporate Criteria will vary from region to region (gain input from manager) Not a form… things to consider! Solution Selling® 2006 © Solution Selling, Inc. All rights reserved

Sorted in Descending Rank: Example
Account Name # of WCW Chamber / Association Member Referred to Office Depot by another customer High revenue producing verticals Close proximity to Office Depot stores Currently under “Contract” or receiving customized pricing with competitor Total Matchmakers, Inc. 5 3 1 24 United Way 22 Kwik Transport Lifestyle Leasing 7 20 MSA Payroll Services 12 Fantasy Travel 4Square Entertainment Baldrige Consultants 26 City Government Able Bakers 14 Your planning template should look like this at this point after you click on the ‘Sort’ button. Ask: “What does it mean for the account at the top of the sorted list?” That account most closely meets the characteristics of your Ideal Customer Profile. Conclusion is that this account should be the first one you prospect to. Get agreement with this conclusion. Note: To this point you have done only partial research on a handful of accounts. But you can see how this model works. As mentioned earlier, you will never find out 100% of the information for all the accounts. But that should not keep you from putting a plan together on what you DO know. This planning methodology lets you easily adjust your plan based on either new information you discover from the press, other informal sources, or additional research. For example, let's say Baldrige Consultants in this example has a press release covering an unusually big increase in quarterly revenue over past quarters. In the example on this slide we would re-grade Baldrige and change the value of the “Growth n Revenue criterion from 2 to 18. That would raise the Index to 83. Re-sorting would put it to the top of the list. Ask: “What would that mean?” If we have not already prospected Baldrige, it becomes an account that would need immediate prospecting since it is the highest priority. Our territory plan has been updated and our activities will adjust accordingly. Solution Selling® 2006 © Solution Selling, Inc. All rights reserved

Account Criteria Examples
Annual company revenue Our revenue from this account last year * Expectations of future revenue * Market position Market viability Financial strength Recent good/poor financial performance Growth in revenues Growth in employees Our relationship quality Our account coverage last year Customer satisfaction level Current installed inventory of our products Potential usage of our offerings * Analyst opinions Known address Strategic value to us Company’s compatibility with our culture Our experience in this industry Urgency of Business Issues (Pains) Knowledge of buying processes Trusted advisor vs. vendor Likelihood of sponsorship Expected profitability Technology adoption position Competitive strength Competitive presence Our solution fit to their needs * Business initiatives we can help with Mergers & acquisitions Convenience of geographic location Responded to (e)mailing Think about a “perfect” prospect for you and your company. What are the characteristics of that perfect prospect? Most people planning their territory tend to use the same general criteria, shown in red on this page. But there are many other potential criteria that may fit your ideal prospect better. This page represents only a few of the criteria that one could use. Ask: “What are some criteria that might fit your “ideal” prospect?” (Capture output on chart.) Transition: “Let’s see if we can put some structure around the selection of ‘ideal’ prospect criteria.” * “Traditional criteria” © Solution Selling, Inc. • 2007

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) Purpose: To provide examples of the key areas of research to conduct for accounts Key Instructor Notes: Research around the first six items (company, offerings, market analysis, financials, competition, and executive profiles) can help a salesperson start to identify past and future trends of an account and trends in the marketplace (competitors included) that might suggest existing business initiatives and critical business issues or even future issues the organization will be impacted by The graphic suggests that “planning is scalable”. The number of opportunities one has in their pipeline will impact the amount of time they can and will want to spend on planning Transition: “Bringing this information together in one brief view is what we call the Account Profile…” Opportunities in the Pipeline Planning © Solution Selling, Inc. • 2007

Account Profile: Example
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. © Solution Selling, Inc. • 2007

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 ( * – Company overviews: financials, key people in the organization, industry-related news, competitor profiles, business & financial rankings, and company subsidiaries. LinkedIn ( - Source for increasing network and association with past and present colleagues MSN Business Online ( Company information and news articles searchable at the world, national and local levels OneSource ( * – A single source for detailed company information for both public and private companies. Standard & Poor’s ( – 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. US Securities Exchange Commission ( – Information on public filings from 1993 – present Yahoo Finance Contact account’s shareholder department ( ) 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 Purpose: To provide a list of resources that participants can leverage to construct Account Profiles Key Instructor Notes: Review account websites: Often corporate websites have a “what’s new” or “news” section on their website that can provide valuable information Note: Letting a prospect know that you’ve recently visited their website is a huge compliment that shows you’ve taken the time to conduct some due diligence before contacting them Access public information: There is more client information available now than ever before. The challenge is finding accurate and effective information. Read the bulleted list Ask participants to add to the list of public information sources that they use Note: some of these resources might require a subscription Contact account’s shareholder department: Becoming a shareholder puts one on a mailing list where they receive insightful information Contact salespeople and account managers within the prospect organization: Generally, salespeople like to have conversations. They can be a great source of internal, client information before making official contact with the targeted individual Transition: “So, once we have this information what do we do with it?…” © Solution Selling, Inc. • 2007

Contact Strategy within Sales Online

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 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. Debrief for Landing Page :Quicklinks relative to the Week in the Life All things available on dashboard today is available here for you as you plan your calls. 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.

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 © Solution Selling, Inc. • 2007

PAIN FLOWS THROUGH AN ENTIRE ORGANIZATION
Basic Principle BASIC PRINCIPLE PAIN FLOWS THROUGH AN ENTIRE ORGANIZATION Purpose: To begin the discussion of how one person’s pain causes another pain for someone else Key Instructor Notes: What does that mean? What happens in one part of the organization will certainly impact others parts Additional Insight W. Edwards Deming (Ph. D.) was considered a “quality guru” in the automotive industry some years ago. He developed several theories around business. One of his theories was “organizational interdependence”. He described how certain relationships have higher interdependence than others do. For example, a bowling team has low interdependence. They are bowling together but if one member bowls a 100 that has little effect on an other’s ability to bowl a He said orchestras have an incredible amount of interdependence. If one brass player is off key, or the woodwinds are off tempo it will certainly affect the overall sound of the company. Deming claims that business is even more interdependent than an orchestra… what happens in production affects shipping, what happens in shipping affects customer service, what happens in customer service affect sales and so on.” Transition: “This business dynamic of ‘interdependence’ can be visually depicted in a job aid we call the Pain Chain®...” © Solution Selling, Inc. • 2007

Pain Chain® - “Cause and Effect”
Job Title: Pain: Reason: Job Title: Pain: Reason: Job Title: Pain: Reason: Purpose: To provide a graphical representation of how pain at one level becomes a reason at a higher level Key Instructor Notes: The instructor may want to refer back to some of the participant input from earlier. (I.e. if the participants shared input about how they felt specific job titles related to the pains, then the instructor can link them together on a flipchart in order to assemble a Pain Chain® Diagram the evolution of the Pain Chain® by tracing the arrows from one end of the chain to the other Pain Chains® are not hierarchy charts. They may look similar to Organizational Charts but are intended to trace the flow of pain throughout an organization Generally “pains” at one level become “reasons” for another pain at a higher level. Usually this correlation is “word for word” but does not have to be the exact case Pains articulated on a Pain Chain® should adhere to the same criteria for pain described earlier Transition: “An example can be seen on the next page...” © Solution Selling, Inc. • 2007

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: 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: 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: Procurement Pain: Increasing cost of procurement Reason A: Large number of suppliers © Solution Selling, Inc. • 2007

YOU CAN’T SELL TO SOMEONE
Basic Principle BASIC PRINCIPLE YOU CAN’T SELL TO SOMEONE WHO CAN’T BUY Purpose: To position one of the key basic principles within Solution Selling®. Key Instructor Notes: You Can’t Sell To Someone Who Can’t Buy … (but oh how we try?)… How often do we spend time with someone who will listen to us, seems interested in what we have to say, but we know can’t really move the opportunity forward?” Why do we stay with someone who can’t make a purchasing decision? Comfort? They’ll listen to us? We don’t want to “go around them”? We aren’t comfortable talking at higher levels in an organization? Probably the quickest way to shorten a sell cycle is to minimize the time spent with people who can’t make purchasing decisions, instead interacting with people who have the ability to make or influence the buying decision. There will be key people other than decision makers who one will likely have to deal with during a sell cycle Transition: “Some of the people you may interact with in a sell cycle might include...” © Solution Selling, Inc. • 2007

Traditional Organization Chart: Example
“The Budget Line” Purpose: To discuss how influence and authority relate to budgetary issues Key Instructor Notes: Participants should be aware that this is only an example and may not be exactly representative of their customer’s organizational structure The budget line represents a distinction between those who SET budgets and those CONFINED by them The budget line will sometimes move from opportunity to opportunity. E.g. If a Director IT is below the budget line, he/she may not be able to make a $250K purchasing decision this quarter, but they may be able to next quarter E.g. Maybe the Director IT can always make a decision, but only for items under $50K If the Director IT is well respected at his/her organization and knows how technology helps meet the financial goals, he/she may have a high level of influence with executives in his/her organization. In this instance they could be labeled a “power sponsor” and still be below the budget line. (Someone will still have to sign-off on a purchase but it becomes a “rubber stamp” situation – i.e. Whatever they suggest to the “signer” will be accepted) How do you know where the budget line exists within organizations? Sellers can often ascertain whether they are “above the line” or not by the questions that the buyer asks. For Example: “Above the line” people ask, “What is the return?” - “Below the line” ask, “How much does it cost?” “Above the line” ask, “When can I get it?” - “Below the line” ask, “How hard is it to install?” Transition: “Now that we’ve completed this section that looked at key players, their roles and how pain flows throughout an organization, let’s give you a chance to practice constructing a Pain Chain®…” © Solution Selling, Inc. • 2007

Exercise Pain Chain® Purpose:
To identify and depict the cause and effect relationship that pain can have within an organization Activities: Identify an account 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 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 © Solution Selling, Inc. • 2007

Pain Chain®: Template Job Title: Pain: Reason A: Job Title: Pain:
Purpose: To provide a template for the exercise. Key Instructor Notes: None Transition: “Now that you’ve had a chance to practice constructing a Pain Chain®, you probably can better appreciate how a Key Players List can help in the construction…” Job Title: Pain: Reason A: © Solution Selling, Inc. • 2007

Exercises for Sales Workshops
TDM Share best practices of how to use Contact Strategy Create specific qualification criteria for their territory Major/Global/Public Conduct Pain Chain® exercise for opportunity chosen by group from pre-work

Office Depot Sales Process: Plan and Engage Stage
Buying Process Define problems and opportunities Sales Stage Plan 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 Strong connection here between SPI and the work they do in PPS in the contact phase © Solution Selling, Inc. • 2007

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 Inserted funnel and best practice: Analyze funnel to plan activity and determine level of activity needed © Solution Selling, Inc. • 2007

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” Purpose: To position a collection of best practices associated with the content in this module Key Instructor Notes: Limited time to get attention and create curiosity” -“If we were on the phone, how long do you think we have to get the prospect’s attention.” (About 20 seconds) Because of this it is important to quickly get to a topic that will interest the prospect. However, keep in mind… B2B vs. B2C …that we probably are perceived in a more positive manner when prospecting business-to-business unlike some of the negative perception of business-to-consumer telemarketing. We really need to earn the right to explore with the prospect. One way to earn that right is to target pains that are potentially important to them. We need to be invited by the prospect to continue. The best way to do that is to: describe how someone else has solved a problem, hopefully we can target a peer in a potentially similar situation who might have a problem they (prospect) might have or to which they can relate The communication should not focus on things such as asking the prospect to learn about our company history or new offerings. We certainly wouldn’t expect them to buy anything (we don’t know if they need anything) and there is no need at this point to schedule a meeting, we don’t even know if they have a problem, we also have not earned the right to ask them to admit pain These sound like pretty reasonable objectives. Think about when you are sitting home during dinner and you get that prospecting call. Do they follow these objectives? Or do they jump straight to product whether you have a need or not.” Have some conversation around bad prospecting calls that some participants have been involved in from the prospect perspective We are going to look at some call-oriented prompters, but as we do – think about all the things that you dislike about some of the bad prospecting calls that you have received. The odds are that you will not find those in the prompters that we are going to present. underlying message though is – target the message with the right content to the right audience and Internet marketing can work Transition: “Now that we’ve reviewed key messaging considerations, lets look at some templates.” © Solution Selling, Inc. • 2007

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? Purpose: To discuss key components of and show examples of effective business development prompters Key Instructor Notes: The prompters, all different examples, have common elements: Potential critical business issue(s) that the target prospect should be able to relate to Describe a similar industry as the target prospect Describe how “we” helped similar job titles as the target prospect Avoid discussing product Don’t ask for a meeting but rather ask if the prospect is interested They are brief… i.e. can be read in about 20 seconds The messages can be left on voice mail with the addition that the caller will make a return call. The seller may also chose to leave a number to be reached at Transition: “These messages can also be used in letter and form...” © Solution Selling, Inc. • 2007

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 ) 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 / / 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? Purpose: To discuss key components of and show examples of effective business development prompters Key Instructor Notes: The prompters, all different examples, have common elements: Potential critical business issue(s) that the target prospect should be able to relate to Describe a similar industry as the target prospect Describe how “we” helped similar job titles as the target prospect Avoid discussing product Don’t ask for a meeting but rather ask if the prospect is interested They are brief… i.e. can be read in about 20 seconds The messages can be left on voice mail with the addition that the caller will make a return call. The seller may also chose to leave a number to be reached at Transition: “These messages can also be used in letter and form...” © Solution Selling, Inc. • 2007

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 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 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 Purpose: To discuss key components of and show examples of effective business development prompters Key Instructor Notes: The same level of information can be sent in letter-form (or ) as part of direct mail piece or campaign You’ll notice we provide a little company positioning; however the real focus is on how we have helped companies solve critical business issues that the prospect either has or can relate to Here, we share the top three issues we are hearing and then reference three applicable companies that we’ve worked with. We then have them call us back You might find it effective to send letters, s, leave voice messages, etc. and then follow up on them. It allows you to touch the customer more than once Key Comment:  Customization  – This page will need to be replaced with a customized version for client-specific material Transition: “If the prospect is interested and wants to know more, an effective approach is to share a reference story...” © Solution Selling, Inc. • 2007

Reference Story: Example
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. In PSS reference stories are called “Proof Sources © Solution Selling, Inc. • 2007

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 % Purpose: To break down the components of the Reference Story Key Instructor Notes: You should notice that the capabilities described address the reason or reasons for the pain The results, the compelling portion of the story, should address (or tie back) the critical issue / pain If the solution is properly described in the capabilities statement than the seller only has to allude to the fact that “they provided those capabilities”. Now is not the time to discuss the specific offering. Content Highlights: Reference Stories, if designed and shared effectively, can quickly establish credibility in the mind of the prospect, stimulate interest with the prospect in working with that salesperson further and begin the discussion of critical business issues that the prospect is faced with within their organization They should be written for a specific person (key player) citing a specific pain. One successful implementation can result in several Reference Stories. They can be delivered to the prospect either face-to-face or over the phone When used successfully, the prospect will either admit pain, direct the salesperson to another part of the organization or the salesperson will discover that the prospect already has a vision of a solution. The conversation could then continue further by engaging in vision processing (creation or reengineering) When sharing Reference Stories is to not divulge the referenced company’s name. There are several reasons for this: Permission may not have been obtained to use the name. To do so without permission would unethical To hold the information back, may imply to the prospect a certain level of trust. That is to say, the prospect will hopefully think, “If I end up doing business with them they will keep my information in confidence too”. It can create further curiosity (“Who was that company?”) or it can become a bargaining tool later in the sell cycle (“If we get to a point where we might do business, I’ll be glad to share the company name with you then.”) Transition: “We will look at where in the sell cycle Reference Stories can be used later. I want to introduce you to another job aid that can also be very effective to stimulate interest …” © Solution Selling, Inc. • 2007

Building a Compelling Value Proposition
EXTRAPOLATE Your Offering Customer A Situation Your Offering Customer B Situation Measured Results Projected Results Key Instructor Notes: Building a Compelling Value Proposition Explain the graphic by relating how (as the seller) you are going to take existing, measured results of a successful customer (Customer A) and extrapolate the POTENTIAL benefits that a prospect company (Customer B) might hope to enjoy. “Let me describe the specific components.” Components of an Initial Value Proposition Read the bulleted items Most of the components are easy to grasp. It probably should be stressed (on this page) that there is probably a good degree of pre-call planning and research that would be required to be able to make an initial value proposition statement. It may be useful to have some dialogue with the participants about additional information sources Value Proposition or ‘Value-less’ Proposition Not much time should be spent on this page. Here we are attempting to accomplish two objectives One, Define “value” which will become increasingly important throughout the workshop Two, Distinguish what might be considered a “typical” value proposition (which does not really speak of value as we have defined it) vs. the Solution Selling® interpretation of an (initial) value proposition Again, put yourself in the buyer’s shoes. If I contacted you (phone or face-to-face) and I delivered the following statement, what would your reaction be… (good and bad)? Reference Story Initial Value Proposition © Solution Selling, Inc. • 2007

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 Key Instructor Notes: Building a Compelling Value Proposition Explain the graphic by relating how (as the seller) you are going to take existing, measured results of a successful customer (Customer A) and extrapolate the POTENTIAL benefits that a prospect company (Customer B) might hope to enjoy. “Let me describe the specific components.” Components of an Initial Value Proposition Read the bulleted items Most of the components are easy to grasp. It probably should be stressed (on this page) that there is probably a good degree of pre-call planning and research that would be required to be able to make an initial value proposition statement. It may be useful to have some dialogue with the participants about additional information sources Value Proposition or ‘Value-less’ Proposition Not much time should be spent on this page. Here we are attempting to accomplish two objectives One, Define “value” which will become increasingly important throughout the workshop Two, Distinguish what might be considered a “typical” value proposition (which does not really speak of value as we have defined it) vs. the Solution Selling® interpretation of an (initial) value proposition Again, put yourself in the buyer’s shoes. If I contacted you (phone or face-to-face) and I delivered the following statement, what would your reaction be… (good and bad)? © Solution Selling, Inc. • 2007

Initial Value Proposition: Example for Local Office Manager
“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 © Solution Selling, Inc. • 2007

Initial Value Proposition: Example for VP Facilities
“We believe that Alliance Healthcare System should be able to reduce overall expenses by approximately $126, ,000 through the ability to streamline the ordering and delivery process for cleaning and break room supplies.” Value Proposition Assumptions: Alliance locations have approximately WCW in each location Alliance has 66 locations Customers of this size typically spend $257 per WCW Average savings is $64 per WCW © Solution Selling, Inc. • 2007

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 ___________________________________________.” Purpose: To show the format of the Value Proposition Key Instructor Notes: The seller should not feel uncomfortable having to make certain assumptions if they are reasonable, conservative and in lieu of lack of having exact customer information. Record any assumptions being made. These should be shared with the buyer as interest is being stimulated Describe the Value Proposition Template in relationship to the format Value Propositions are statements (not guarantees) which attempt to project the potential quantified benefit (value) to a prospect and their organization that they can hope to receive through the implementation of a specific capability or offering. Value Propositions are intended to create curiosity and serve as a catalyst to start a sales cycle. To create a Value Proposition a salesperson must have knowledge of the specific value already achieved by a customer who has used the salesperson’s products and/or services Value Propositions can be delivered over the phone, face-to-face or even as part of a direct mail campaign Some assumptions may have to be made in the absence of facts. The use of industry averages or conservative metrics is acceptable. A salesperson should be prepared to share/defend any metrics or assumptions provided within a Value Proposition A Value Propositions is a job aid that may not be used all the time. The amount of customer information available to the seller may determine the frequency of use Value Propositions tend to highlight improvement and enabling capabilities that would be important to the specific buyer. (I.e. The statements tend to be targeted in their nature.) Some Value Propositions may even provide ranges of value and investment instead of defined numbers. (E.g. “… increase revenue by 10-15%…for an investment around $500K - $800K) Transition: “These type of messages can be delivered in a number of venues / vehicles...” 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? ]. © Solution Selling, Inc. • 2007

TDM and Major/Global/Public Build Business Development Prompter Build Reference Story

Quid Pro Quo in Plan and Engage
“What things would the customer want from you and what would you want from the customer?” © Solution Selling, Inc. • 2007

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 Engage Diagnose 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/ Power Sponsor Letter / Evaluation Plan Verifiable Outcomes Opportunity Created in Sales Online Gain agreement to Evaluation Plan Yield Probability 0% 25% Get pain admitted In PSS this is called “confirming the existence of a need.” © Solution Selling, Inc. • 2007

Getting Pain Admitted Why Would Buyers Admit Pain?
Because the salesperson has: Built rapport naturally Established trustworthiness (sincerity + competence) Established credibility Demonstrated situational knowledge Purpose: To describe the objectives of the module that will be addressed by the content within the module Key Instructor Notes: If through the call introduction the buyer has not admitted pain, we likely have NOT demonstrated one of these elements well enough. We might have to ‘back up’ in the process in order to better cover one of these elements.” In this module we are going to look at steps that help build rapport naturally, and establish trustworthiness and credibility Transition: “Some of the basic principles to keep in mind during the call introduction include……” © Solution Selling, Inc. • 2007

Basic Principles BASIC PRINCIPLE PEOPLE BUY FROM PEOPLE BASIC
POWER BUYS FROM POWER BASIC PRINCIPLE Purpose: To position two of the key basic principles within Solution Selling®. Key Instructor Notes: Finish this sentence, ‘People buy from people… ____…they like… they consider trustworthy (sincere + competent)… they can relate to… who empower them (to make buying decisions) “People buy from people, they don’t buy from proposals, RFPs, etc. Sure, there is Internet selling, but if someone wants to go to a web-site and buy something, they don’t need us for that type of sales transaction.” Power Buys From Power - People want to buy from people that they perceive bring value and demonstrate that they have respect for their time and company’s resources. Power does not mean arrogance, but it is a general attitude that one can demonstrate and bring value to a customer through the services and offerings that they provide The instructor may find it useful to gauge the perception of how salespeople view “power”. Draw two “stickmen” side by side). One should be bigger than the other one. Ask, “Which one is the seller?… buyer?” Most participants will say the bigger one is the buyer. Ask, “What should the relationship be like?” Redraw the smaller stickman to equal the smaller one while describing that the “seller” can give a perception of power (an equal level) in the mind of the buyer Several examples of ways to lose “power” are: Conducting yourself in a manner that puts you on a lower “power” level than the buyer Empowering other entities to solve a problem instead of the customer Correcting a colleague in a manner which resembles… “What he really meant to say was…!” Disengaging from a meeting or presentation because its not your turn to speak (E.g. “I’ll leave you and my Systems Engineer to walk through this demo while I go check voice mail.) Using a string of wimpy words or over-used industry words (E.g. Its possible that perhaps we might be able to do it… or … E.g. Our leading-edge solution is robust and innovative…). If you feel like some industry words are important to your marketing efforts, at least define what you mean by it. (E.g. When I say “robust”, I mean it can…) Avoiding taking stands during negotiating. To not withstand concessions can make a seller appear weak Overdoing politeness. Etiquette and manners are important; however, the point here is that sometimes you can put yourself on a lower level, instead of a peer-level, by constantly addressing customers as Mr. or Mrs. Transition: “Keep these basic principles in mind as move into the discussing elements of a first call…” © Solution Selling, Inc. • 2007

Strategic Alignment: Steps 1 and 2 Opening of the Call
BUYER PERSPECTIVE / DECISION SALESPERSON 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” Purpose: To introduce portions of a framework that can help sellers stay in alignment with buyers as they move through their buying process. Key Instructor Notes: For each key objective, there is a specific selling activities to engage in based on alignment with where the buyer is (psychologically and procedurally) in their buying process Notice how the Reference Story can be applied at this stage of the sell cycle Transition: “Let’s look at some specific actions and words around these first two steps of the Strategic Alignment Prompter...” © Solution Selling, Inc. • 2007

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 Purpose: To provide some sample text and actions associated with “establish rapport” and “introduce call”. Key Instructor Notes: Describe that we do not expect this text to be used verbatim. The goal is to provide context around the outline. However, most of these words have been finely tuned over time and there is value in using them This “dialogue prompter” is for a first call with a prospect. Keep in mind, we have already met with the prospect and they said they would meet with you again - thus this call introduction. There are also cultural aspects that might have to be taken into consideration during business calls. Those things considered, let’s look at the example closer Step 1: Establish Rapport - We could teach an entire course on the dos and don’ts of rapport building, but one guideline is to conduct a conservative approach that is genuine and does not force rapport Let the prospect set the tone of the meeting: We may want to start the meeting by remaining silent. Why? To see if the buyer wants to engage in “small” or “business” talk. We don’t want to force rapport and seem insincere. Some sellers are taught to find something in the prospect’s office that they can connect with. If the seller is not genuine about the object they picked as a point of rapport it can seem insincere and begin the relationship on a negative basis Step 2: Introduce Call: State the call objective - Read the phrase and ask, “How does that sound?” We are being professional and stating our proposed agenda for the meeting. If the prospect has something else in mind then we want to know that also. The phrase “whether or not we should proceed any further” should tell the prospect that we are not going to try to continue selling to them if there is no benefit for the both of us - the prospect has an out Share positioning statement - Here we are making a high level statement about how we “help” companies. The message should be tailored to be specific to the person (and potential problems) that you intend to address Provide company / personal introduction - Here we are attempting to provide facts that will help the prospect draw desired conclusions about us and our organization. We are providing facts, not opinions Share relevant Reference Story – We want the prospect to talk about some problems that they are faced with. However, we have not earned the right to ask them what their problems are yet; therefore, relate a Reference Story. The goal is to establish credibility to the point that the prospect will share some of their problems. So here we are using the Reference Story that we prepared during the pre-call planning and research phase of the process Transition to getting pain admitted – Now we want to turn over ownership of the conversation to the buyer This all happens during the Opening phase of PSS. Transition: “Here we move to step 3 of the prompter…” © Solution Selling, Inc. • 2007

Strategic Alignment: Step 3 Getting Pain Admitted
BUYER PERSPECTIVE / DECISION SALESPERSON 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 Purpose: To introduce portions of a framework that can help sellers stay in alignment with buyers as they move through their buying process. Key Instructor Notes: For each key objective, there is a specific selling activities to engage in based on alignment with where the buyer is (psychologically and procedurally) in their buying process We will look at examples of these questions shortly Transition: “So, if we read a Reference Story (with the pain well-targeted) what responses might we get?” © Solution Selling, Inc. • 2007

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. Purpose: To share potential responses to expect and tactics to engage in after sharing a Reference Story Key Instructor Notes: At the end of the call introduction we told a Reference Story to the prospect. We then transitioned the conversation back to the prospect by saying ‘but enough about (how we helped another organization). Tell me about you and your situation’. At that point, we are hoping to get the prospect talking. What are the responses we could hear from them? ... (And we generally hear responses that can be broken down into 5 categories) Lead the participants by asking them, “What is the best possible response I could get after reading that Reference Story?” You should get buyer response #1 (see below). Continue to lead the participants - “What is the next best response that I could get?” You should get buyer response #2 (see below). Participants may give many different answers most of which you will be able to “categorize” into one of the five typical buyer responses. Take the answers as the participants give them to you and write them down on a flipchart. Have the participants write the answers in their workbook. Once you get the correct answer then ask the participants what the “seller action” is they would take in regards to the buyer responses. Once you get all the answers recorded on the flipchart - it should resemble the following: Potential Buyer Responses “I’m having that same problem” (very good) “I’m having a different problem” (still good, the buyer shared a problem) The buyer talks freely (and is nice) but admits no pain / problem The buyer does not admit a pain (and is not friendly, maybe even hostile) “I’m glad you called, we are currently looking.” (“Is this good or bad?”) Seller Actions Prioritize and diagnose (Vision Creation) Ask Situation Questions (to help direct the conversation toward pain) Ask Menu of Pain Question Reengineer the vision Transition: “On the following page you’ll see this same content but in the context of a flowchart.” © Solution Selling, Inc. • 2007

Getting Pain Admitted Question Examples
SITUATIONAL QUESTIONS “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?” 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?” Purpose: To establish a fuller understanding of “how to get pain admitted” by providing some questioning examples of the content discussed. Key Instructor Notes: If pain is not admitted but the buyer is openly talking, the next approach is to get the conversation focused around something that you know you can help the prospect with. Sometimes Situation Questions can help “funnel” responses from a buyer down to a topic that has them either admitting their pain or providing information that can help the seller predict the pain If pain is still not admitted and it appears the conversation is going nowhere it may be time to be direct with your questions. This is where a menu of pains approach might take place.” Read the example of Multiple Choice “Menu” of Pain Situation Questions tend to be “open” questions. (E.g. “Today, how do your customers get notified of new products or promotions?”) It may be necessary to intertwine (what we call) “Information Questions” with your Situation Questions. Information Questions tend to be “control” questions that help bring clarity to buyer dialogue. (E.g. “How many products do you sell?”) “Menu of Pain” Questions tend to be “closed” questions. Situation questions in PSS are Circumstances Menu of Pain in PSS are opportunities Transition: “It becomes very important when having dialogue to ensure that your questioning leads to uncovering the actual pain and not symptoms of it...” © Solution Selling, Inc. • 2007

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. Anxiety Creation in PSS is Examining Effects and Confirming the existence of the need. © Solution Selling, Inc. • 2007

Exercises in Sales Workshops
TDM Build individual call introduction and role play with a partner

Buying Process Define problems and opportunities Determine needs / requirements Select solution, evaluate risk, & finalize contracts Resolve issues & implement Evaluate success Sales Stage Plan and Engage Diagnose 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/ Power Sponsor Letter/ 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

Basic Principle BASIC PRINCIPLE DIAGNOSE BEFORE YOU PRESCRIBE
Purpose: To position one of the key basic principles within Solution Selling®. Key Instructor Notes: The instructor may want to suggest that they can share an illustration of this basic principle by discussing the chart on the page that follows “Sales Performance Over Time” The instructor may chose to further position this principle by sharing an example of “prescribing before diagnosing” E.g. Share an anecdote of being ill and going to see a doctor who was very diagnostic (describe the diagnosis) and then gave the prescription (“take 2 of these daily”) followed by another anecdote of again being ill but going to see a doctor who was NOT diagnostic but tended to jump to the “answer” quickly – even make the “prescription” sound different… ask the participants: Which experience was better? Why? Share the irony that the two prescriptions were the same but in the second anecdote we were not ready to accept the prescription because of the poor diagnosis Transition: “Let me share a study that will help illustrate this point...” © Solution Selling, Inc. • 2007

Sales Performance Over Time
Purpose: To stress the importance of diagnosing a problem via questioning before hastily discussing product. Key Instructor Notes: This chart depicts one of many findings from a study done by Huthwaite Group. The finding discusses seller performance over time. In this study, the consultants analyzed a group of sales reps to see how their behavior changed over time. The study indicated that after some time of having been in the territory that a rep typically saw some measure of success. What the study noted was that after a certain period of time (usually months) in the territory the performance dropped off dramatically followed closely by a drop in morale. Ask “What phenomenon occurred that caused this drop off in performance? The instructor should ask, “What are new reps doing a lot of, at the beginning, in order to get to know the customer and their environment?” Answer: Asking questions - because the rep doesn’t know a lot, by default they ask a lot of questions. This helps them understand the customer and their environment and puts them in a better position to eventually recommend an offering and the buyer feels confident in the prescription because of the thorough diagnosis Now what do you think the reps are NOT doing a few years later? ... the answer.... Asking a lot of questions! … Why? … They feel like they have seen the same situation so often that they know the answer almost immediately! The seller thinks they are doing themselves and the customer a favor by skipping the questioning / diagnosing and jumping straight to the answer. However, the customer is not ready to accept the answer. The customer may not have even admitted they have a problem. Psychologically, the customer needs to go through that diagnostic process to feel comfortable about accepting a solution Wouldn’t it be great if as sellers we had a questioning approach that forced us to diagnose a customer’s problem instead of hearing a customer problem and then jumping straight to the answer Don’t let your… Experience + Enthusiasm = Enemy Transition: “We are going to learn a questioning model that helps sellers diagnose a customer problem. This questioning model is designed to help slow sellers down, so that their experience does not get in the way. This model is based upon the psychological principle that people do not like to be told what to do, but rather come to self-conclusion as to what they need to do. This questioning model does just that - helps the prospect come to self conclusion about how to solve a business problem...” P = Performance M = Morale © Solution Selling, Inc. • 2007

Strategic Alignment: Step 4 Develop Needs / Customer Buying Vision
BUYER PERSPECTIVE / DECISION SALESPERSON 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) Purpose: To introduce portions of a framework that can help sellers stay in alignment with buyers as they move through their buying process. Key Instructor Notes: For each key objective, there is a specific selling activities to engage in based on alignment with where the buyer is (psychologically and procedurally) in their buying process We will look at examples of these questions shortly Transition: “So, if in step 3 we are going to diagnose before we prescribe, there is a job aid in Solution Selling® that helps have that diagnostic conversation…” © Solution Selling, Inc. • 2007

Navigating the Levels of Buyer Need
Level Four: Active Evaluation Level Three: Vision of a Solution (Buying Vision) 9 Block Vision Processing Model® Level Two: Admitted Pain Purpose: To position that the 9 Block Vision Processing Model® for Vision Creation helps take a buyer from admitted pain to a vision of a solution. Key Instructor Notes: Thinking back to the four levels of need (that was discussed earlier), diagnosing before you prescribe is an effective way to help a prospect move from admitted pain to a vision of a solution Transition: “The framework for the 9 Block Vision Processing Model® can be found on the next page.” Stimulating Interest Job Aids Level One: Latent Pain © Solution Selling, Inc. • 2007

Architecture of the 9 Block Vision Processing Model®
PAIN 3 Question Types 3 Areas of Exploration Diagnose Reasons Explore Impact Visualize Capabilities R1 I1 C1 Open Customer’s Point of View R2 I2 C2 Control Salesperson’s Point of View R3 I3 C3 Purpose: To expose the participants to the framework and construction of the 9 Block Vision Processing Model®. Key Instructor Notes: The instructor may use a teach technique of building the 9 Block Vision Processing Model® on a flipchart. Draw a box with individual 9 blocks inside of it on the flipchart and mimic the dialogue below… As you record “pain” and “buying vision” on the flipchart in their appropriate places, remind the participants, “We’ve got a pain admitted. Instead of jumping straight to the solution, we are going to help the buyer come to self conclusion about what they need in order to help them develop their buying vision Ask the participants what they would want to know about the buyer and record responses within the appropriate boxes They likely will answer “diagnose reasons” and “explore impact”. You may have to “coach” them to state “visualize capabilities” Some participants will “be ahead” of others and intuitively discuss “value”, “drilling down” or “sizing the pain”. Let them know it is a good answer, but that content will be covered shortly Once you have the three areas of exploration recorded (“diagnose reasons”, “explore impact” and “visual capabilities”) then ask, “We will pursue these three areas by asking questions that generally fall under three specific question types, what are they?” As the participants come up with the answers record them in their appropriate place on the flipchart (“open”, “control” and “confirming” questions) Once the model has been “built” on the flipchart, then show them this page Describe the lettering system (R, I, and C) and the numbers in the boxes. (i.e. The Rs are the Reason Column…and the numbers show the optimal sequence in which the questions would be asked) Why do we ask open questions before control questions?” Psychologically, asking open questions “earns” one the right to then engage in asking (a certain number of) control questions Why do we confirm at the end of each column?” Remember the definition of closing, a series of mini-closes. We are trying to get mini-closes along the way while making sure we don’t misunderstand something during the conversation You’ll recognize the Pain Chain® icon. The conversation here is built around the initial Pain Chain® If time permits, another technique is to have participants provide examples of the questions they would ask for each of the nine blocks. (E.g. “Someone give me an example of an open questions for diagnosing reasons.”) Transition: “If you turn to the next page you will see that we have a (numbered) suggested order for moving through the 9 Block Vision Processing Model® and we have included specific questions that you could ask in each block.” Confirming Combined Point of View BUYING VISION © Solution Selling, Inc. • 2007

9 Block Vision Processing Model® - Vision Creation
PAIN Diagnose Reasons Explore Impact Visualize Capabilities R1 1 I1 4 C1 7 “Tell me about it, what is causing you to have this… (repeat pain)?” “Besides yourself, who in your organization is impacted by this (pain) and how are they impacted?” “What is it going to take for you to be able to (achieve your goal)?” “Could I try a few ideas on you?” Open R2 2 I2 5 C2 8 “Is it because… Reason A?… Reason B?... Reason C?... “Is this (pain) causing… (another pain)?” “If so, would (other job title) also be concerned?” “You mentioned (recall reason)… Would it help if … Capability Vision A?... Capability Vision B?... Capability Vision C?... Control R3 3 I3 6 C3 9 Purpose: To expose the participants to the text version of the 9 Block Vision Processing Model® for Vision Creation. Key Instructor Notes: Discuss the sequence of the 9 Block Vision Processing Model® while walking the participants through the text The parenthetic numbers at the top of each box indicates the optimal order by which to navigate the model Set up the use of a Pain Sheet®: “Looking at 9 Block Model, are open questions hard to ask?” The participants usually answer “no”. (Drop down to confirming questions) “Are confirming questions hard to ask?” The participants usually answer “no - especially if you have taken notes and listened.” “Now, what about these control questions, are they hard to ask?” The participants usually hesitate and then answer with a “yes”. “Why are they harder to ask?” The participants usually reply that it takes more knowledge and experience to be able to ask these control questions. “I agree, it often times takes knowledge of the customer and their organization, experience in the particular industry, knowledge of your own products and offerings and how they, situationally, can help someone.” “Wouldn’t it be great if, as a seller, you had some type of help... or artificial intelligence at your disposal in order to be prompted to ask those type of questions when with a prospect?” Notes: This version (of the 9 Block Vision Processing Model®) is NOT used when the buyer knows what they want or has a vision of a solution. That is the Vision Reengineering version to be taught later. Transition: “There is a job aid in Solution Selling® called a Pain Sheet®. It helps provide some of that artificial intelligence.” “So, the reasons for your (pain) are…? Is that correct?” “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?” “So, IF you had the ability to (summarize capability visions), THEN could you (achieve your goal)?” Confirming BUYING VISION © Solution Selling, Inc. • 2007

Pain Sheet® - Situational Fluency Prompter®: Example
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? 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? Inventory has reached safety stock level 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? Ordering multiple categories of items 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? © Solution Selling, Inc. • 2007

Pain Sheet® - Situational Fluency Prompter® Where it is Used
B C D RI I1 C1 R2 I2 C2 R3 I3 C3 Purpose: To visually show where the Pain Sheet® fits within the 9 Block Model®. Key Instructor Notes: The reasons column on the Pain Sheet® provided prompting questions to be used in Box R2 of the 9 Block Vision Processing Model® The impact column on the Pain Sheet® provided prompting questions to be used in Box I2 of the 9 Block Vision Processing Model® The capabilities column on the Pain Sheet® provided prompting questions to be used in Box C2 of the 9 Block Vision Processing Model® Reason D and Capability D has an arrow connecting them. This depicts that for each reason there is a corresponding capability (vision). The impact column does not correspond with the reasons in the same manner Transition: “A key principle associated with executing the 9 Block Model follows...” © Solution Selling, Inc. • 2007

THE SOLUTION MUST EQUAL
Basic Principle BASIC PRINCIPLE THE SOLUTION MUST EQUAL THE BUYING VISION Purpose: To highlight the importance that the seller’s offering (or capabilities) ultimately must deliver the functionality that the buyer envisioned him/herself receiving. Key Instructor Notes: An effective way to make this point is to share a story / personal example of a time you made a material purchase not for the actual item BUT because of how you saw yourself using the material item Has anyone ever bought something like a nice sports car (or an expensive cocktail dress). You probably weren’t buying four wheels and some seats, you were probably trying to acquire the vision you had dreamed of… where you could see yourself driving down a scenic road… on a nice Summer day… the radio on with the top down As sellers, we have to both help our buyers visualize how they will be different in the future as a result of implementing our offering and we have a responsibility to not over-state the capabilities of our offerings. Our offering ultimately must deliver the functionality that the buyer envisioned him/herself receiving. Its not about a seller telling a buyer all about their features and functions… but it is describing how your customers see themselves using your offering. People buy visions Visions give buyers hope Transition: “Look at buying visions in relation to other terminology...” © Solution Selling, Inc. • 2007

Building Visions PAIN RI I1 C1 R2 I2 C2 R3 I3 C3 Pain:
“My operational costs are increasing!” Goal: “What if you could lower your operational costs?” Capability: PAIN “What if you could get the best price on your cleaning and break room supplies?” RI I1 C1 Capability Vision: “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? ” R2 I2 C2 R3 I3 C3 Capability Vision: 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?” Purpose: To provide strict definitions around components of the vision processing model. Key Instructor Notes: Pain: Here the buyer has admitted a pain to us… articulated with a negative phrase Goal: The inverse of the pain. The desire to resolve the pain Capability: What a specific feature will allow a buyer to do Capability Vision: Painting an action picture of how someone will do something different (in the future) by means of an offering’s feature Buying Vision: A combination of two or more capability visions that addresses an admitted pain Further terminology chain: Products and Services contain features Features may or may not be differentiators in comparison to a given competitor Each feature performs a function (or more than one function). This function is articulated as a capability. Sometimes articulated by “allows someone the ability to…” Capabilities should deliver functionality to help solve a problem (either a pain or a reason for a pain) Capabilities that are articulated as “capability visions” paint action pictures of how someone will do something different (in the future) by means of an offering’s feature A culmination of Capability Visions to solve a pain results in a Buying Vision Transition: “Let’s conduct an exercise around these concepts...” BUYING VISION Buying Vision “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?” © Solution Selling, Inc. • 2007

Vision Processing: Example for TDM
Pain : Difficulty completing workload Diagnose Reasons Visualize Capabilities OPEN Tell me about it, what is causing you to have this (repeat pain)? What is it going to take for YOU to be able to (achieve goal)?” CONTROL What is the process for ordering and maintaining office supplies? Does this process take a lot of time? How much time do they spend per week? How many orders do you place per week? Who is doing the ordering? How many people are involved? When ordering office supplies the administrative professional could access a frequently ordered items list from a pre-populated list and select the appropriate items and volume, or with a single check duplicate a previous order & add or delete items immediately and have them delivered next-day? How do you reconcile invoices? Due to the process, do you spend a lot of time reconciling invoices? How much time? What are your accounting requirements? What happens to invoices that can’t be reconciled? How often does that happen? How much administrative effort is involved in getting it resolved? Does it adversely affect your vendor relationships? How does this affect your buying power? When an order is entered the administrative professional could be assured that the invoice requirements have been completed so that less time is spent reconciling invoices on the back-end? What is the approval process for spending? How long does it take to get an exception approved? What are your spending authority levels? What happens if the approvers are not in the office? Have there been any key project delays due to the approval process? How often does it happen? What is the cost? When a special request order is entered you had a way for the order to be automatically compared to preset rules and routed appropriately for approval so that you don’t spend too much time waiting for approvals? CONFIRM So, the reasons for your (repeat pain) are …? Is that correct? So, if you had (summarize capabilities), then could you (achieve your goal)? 1 4 2 5 3 6

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 Purpose: To allow the participants a chance to practice role playing vision creation. Key Instructor Notes: Read the bulleted items Show the supporting materials that are on the pages that follow Have the participants share their experiences and questions after the role play Conduct a demonstration of the 9 Block Vision Processing Model® for Vision Creation prior to having the participants role play it. This sets a model for how the role play should be conducted Provide a short and simple demonstration Ask for feedback while positioning some of the caveats - “Other than the role play being intentionally short, somewhat scripted and maybe a bit of a one-sided conversation for the seller, what things did you see taking place in that demo?” Some of the participant replies could be along the lines of: The seller asked a lot of questions The seller tried to understand who else was affected The seller controlled the conversation but in a consultative way Handle the replies appropriately but make sure the key messages that get across to the participants from the demonstration are: The seller is trying to control the conversation BUT not control the buyer The seller is giving the prospect an opportunity to have input (open questions) prior to controlling the conversation (control questions) The seller didn’t control the prospect but rather asked only questions Transition: “This role play will take about ___ minutes. Upon its completion we will have a short debrief to talk about it.” © Solution Selling, Inc. • 2007

PAIN Diagnose Reasons Explore Impact Visualize Capabilities R1 1 I1 4 C1 7 “Tell me about it, what is causing you to have this… (repeat pain)?” “Besides yourself, who in your organization is impacted by this (pain) and how are they impacted?” “What is it going to take for you to be able to (achieve your goal)?” “Could I try a few ideas on you?” Open R2 2 I2 5 C2 8 “Is it because… Reason A?… Reason B?... Reason C?... “Is this (pain) causing… (another pain)?” “If so, would (other job title) also be concerned?” “You mentioned (recall reason)… Would it help if … Capability Vision A?... Capability Vision B?... Capability Vision C?... Control R3 3 I3 6 C3 9 Purpose: To provide a worksheet or example to support the exercise. Key Instructor Notes: None Transition: None “So, the reasons for your (pain) are…? Is that correct?” “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?” “So, IF you had the ability to (summarize capability visions), THEN could you (achieve your goal)?” Confirming BUYING VISION © Solution Selling, Inc. • 2007

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? 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? Inventory has reached safety stock level 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? Ordering multiple categories of items 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? © Solution Selling, Inc. • 2007

Value Justification / Analysis Start with the End in Mind
Profits from increased revenue Examples: 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 costs 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 costs Capabilities provided by your product / service that help the buyer eliminate a future cost Overtime Employee turnover Equipment downtime Intangible benefits 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 Purpose: To explain how “drill down” questioning will be instrumental in value analysis later. Key Instructor Notes: Start with the end in mind. Here you see categories of benefit that would be key components of a value analysis. Knowing that this is the “end in mind”, lets make sure that during questioning we are asking questions that help lead us down one of these paths. That is to say, that we are establishing numeric value (for each reason uncovered) that ties to profit or revenue increase, and cost decrease Be careful to not constantly describe the process of value analysis as a return on investment (ROI) approach. ROIs are calculated in many different ways across different clients that the mention of it can bring up unwanted conversation. Don’t allow the participants to lose focus on the intent of discussing how to demonstrate value…as it is important to the customer Buyers buy things to increase revenue or decrease cost. Each of your capabilities should help in one of these areas directly or indirectly Intangibles are valuable in selling even if they may not be part of the final return on investment / value analysis Transition: “As we begin to establish value through vision processing, lets look at some specific tactics that we might employee.” © Solution Selling, Inc. • 2007

Enhancing the Buyer’s Vision with 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 Purpose: To show specific areas during the questioning process where value can be demonstrated and confirmed. Key Instructor Notes: Use a teach technique of covering each item above while diagramming its intent on a flipchart sketch of the 9 Block Vision Processing Model®: Draw a box with individual 9 blocks inside of it on the flipchart. (tic-tac-toe grid boxed in) As you record “pain” and “buying vision” on the flipchart in their appropriate places, remind the participants, “We’ve got a pain admitted. Before we would want to jump into the 9 blocks, we’d first want to ask questions that would help us measure the size of the pain.” Add measurement to control questions in Boxes R2 (and I2) to establish the cost of doing business today. We would still explore the open question about why they are having this problem, (pointing to R1) but let’s focus on the control questions. Here in Box R2 the seller would uncovered reasons and ask “drill down” questions that would allow him/her to attach value to each reason (or at least size the $ associated with each reason) Then in Box R3 we compute and confirm the total cost of the way they are doing it today, … Add up the reasons showing that you arrived at $X associated with the pain… (we’d also do likewise for the impact column – I3 In Box C2, the seller would want to create a descriptive action vision of how the buyer would be better off after implementing the seller’s capabilities The sell should link the cost uncovered in R2 with capability visions described in C2. The dialogue that the seller uses to confirm this sounds like, “If you had capability A, how much of that $X (from reason A) could you regain?” The seller would ask this type of question for each of the capabilities Then finally, the seller can summarize the capability visions into a buying vision in C3 while restating the total value. So for this example the seller is confirming that by addressing the reasons that the pain will be addressed. Even if the capabilities only helped reduce the pain by 50%, this still can be a great benefit to a buyer based on the severity of their pain In terms of displaying empathy. It can be a kind emotion to display to the buyer if done appropriately and sincerely. We are not suggesting to push false empathy Transition: “With value being key, we now see the 9 Block Model with a few elements added...” © Solution Selling, Inc. • 2007

PAIN $ Diagnose Reasons Explore Impact Visualize Capabilities R1 1 I1 4 C1 7 “Tell me about it, what is causing you to have this… (repeat pain)?” “Besides yourself, who in your organization is impacted by this (pain) and how are they impacted?” “What is it going to take for you to be able to (achieve your goal)?” “Could I try a few ideas on you?” Open R2 2 I2 5 C2 8 “Is it because… Reason A?… Reason B?... Reason C?... #?, %?, $? “Is this (pain) causing… (another pain)?” “If so, would (other job title) also be concerned?” #?, %?, $? “You mentioned (recall reason)… Would it help if … Capability Vision A?... Capability Vision B?... Capability Vision C?... Control R3 3 I3 6 C3 9 Purpose: To add the value component to the architecture of the 9 Block Vision Processing Model®. Key Instructor Notes: This view of the model prompts the user to uncover value. Notice the “$” associated with: Pain Buying Vision Box R2 Box IC Transition: “The graphic on the next page shows a further break down of how and where value is established within use of the model...” “So, the reasons for your (pain) are…? Is that correct?” “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?” “So, IF you had the ability to (summarize capability visions), THEN could you (achieve your goal)?” Confirming BUYING VISION $ © Solution Selling, Inc. • 2007

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? 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? Inventory has reached safety stock level 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 long does it take to place each order? Ordering multiple categories of items 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? © Solution Selling, Inc. • 2007

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 © Solution Selling, Inc. • 2007

Pain Sheet® - Situational Fluency Prompter®: Template
Job Title & Industry: Offering: REASONS IMPACT CAPABILITIES Is it because; Today…? Is this (pain) causing…? What if…; Would it help if…? A When: Who: What: B C © Solution Selling, Inc. • 2007

TDM and Major/Global/Public Conduct role play of Vision Processing Build Vision Processing Prompter for chosen group opportunity Conduct role play of Vision Processing for chosen group opportunity

Buying Process Define problems and opportunities Determine needs / requirements Select solution, evaluate risk, & finalize contracts Resolve issues & implement Evaluate success Sales Stage Plan and Engage Diagnose 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/ Power Sponsor Letter/ 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

Strategic Alignment: Step 5 Gain Agreement to Explore Further
BUYER PERSPECTIVE / DECISION SALESPERSON 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” Purpose: To introduce portions of a framework that can help sellers stay in alignment with buyers as they move through their buying process. Key Instructor Notes: For each key objective, there is a specific selling activities to engage in based on alignment with where the buyer is (psychologically and procedurally) in their buying process We will look at examples of how this dialogue might take place shortly Transition: “So, if in step 5 we are going to gauge how interested the buyer is in moving forward…” © Solution Selling, Inc. • 2007

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. Purpose: To introduce portions of a framework that can help sellers stay in alignment with buyers as they move through their buying process. Key Instructor Notes: Step 4 is the culmination of some of the content we covered earlier. If the buyer admits a pain, we would diagnose it and create a vision just like we discussed (and practiced) earlier. If the buyer admits that they are currently looking we would need to qualify and attempt to reengineer that vision (with company differentiators). This is a topic we will discuss later in the workshop. Upon confirming the buying vision (Box C3) we would then gauge their interest in proceeding by using dialogue such as you will see here in Step 5: Gain Agreement to Explore Further The focus of the prompter should be on Step 5 since Steps 3 and 4 have been covered via other modules Here we have provided two options in terms of dialogue that you might use to get the buyer to move forward… Read both options aloud… So what is the difference and when might you use one over the other? Option 1: It is less committal. A seller might use this approach in the following situations: When they are sure they are only at a sponsor-level and don’t want to commit too much at that time in the sell cycle When they truly are not sure whether they can deliver the total vision and need to check with their resources When they actually are confident in their offering but would like to seem consultative by not having the answer so quickly in the sell cycle Option 2: It is more committal. A seller might use this approach in the following situations: When they are sure they are at the power sponsor-level and want to gain the confidence of the decision maker When they are in a reengineering scenario and feel they have a small window of time to respond When they actually are confident in their offering and feel it is appropriate to not add additional steps to the sell cycle Be sure to read the italicized sentence “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.” Transition: “What don’t we know about the buyer at this stage? Whether they are a Sponsor or Power Sponsor...” © Solution Selling, Inc. • 2007

“Should I reveal the identity of power?”
Strategic Alignment: Steps 6 and 7a Determine Ability to Buy and Negotiate Access to Power BUYER PERSPECTIVE / DECISION SALESPERSON 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 / If buyer will not bargain, find another potential Sponsor Purpose: To introduce portions of a framework that can help sellers stay in alignment with buyers as they move through their buying process. Key Instructor Notes: For each key objective, there is a specific selling activities to engage in based on alignment with where the buyer is (psychologically and procedurally) in their buying process We will look at examples of these questions shortly Transition: “In this scenario, we will assume the buyer is the sponsor…” © Solution Selling, Inc. • 2007

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 / ) “Thank you for your time. I will send an summarizing today’s conversation. In that I will recommend a specific way for us to prove these capabilities to you. You should receive that by _______ .” Purpose: To provide sample text that can help a seller stay in alignment with a buyer as they move through their buying process. Key Instructor Notes: One way to facilitate this dialogue (other than reading the text of the page) is to have quasi-role play with one of the participants. Have the participant play the “buyer” while the instructor plays the “seller” Read aloud the text under the banner “Step 6: Determine Ability to Buy” Since you (as an aside - referring to the participant playing the sponsor) are only the sponsor, your reply would be…? (The participant should say something like – or be prompted to say – “I can’t make that happen, we’ll have to get my boss involved.”) “Well, who is your boss (or the decision maker)?” (The participant should say – or be prompted to say – “That would be the… VP Finance (or some “” title.) Read aloud the text of “Step 7a: Negotiate Access to Power” - Here our conversation with the prospect begins to project events into the future. We don’t recommend you ask the buyer “are you the decision maker?” That question puts people under undue pressure and creates unexpected stress ... And people do strange things when under such conditions ... like not telling the truth!” (Implying that buyers might mislead sellers about their power status.) Continue reading the prompter, “Could we get set up a meeting? (The participant should say something like – or be prompted to say – “Now really isn’t a good time. It’s probably a little soon to make that visit.”) Read aloud the text of Step 7a – “Strike a bargain for access to Power” – “Is that fair?” can be a powerful question to ask a buyer. It tends to be a question that analyzes how reasonable the buyer is. Have a conversation with the participants. Ask, “Is that (indeed) a fair bargain?” Most will answer “yes”. This is an example of “quid pro quo”. This also demonstrates seller “power”. If they buyer had begun the sell cycle with a demonstration of his/her offering, then they would not have that “chip” to bargain with. This demonstrates another reason to “not lead with product” Read aloud the last of the text for “Step 7a: End call - write a Potential Sponsor Letter / ”) “Thank you for your time. I am going to… You should receive that letter / shortly.” At the end of the dialogue thank the participant for playing along. Transition: “According to our bargain, we should get access to power. Why would someone give us access to power?...” © Solution Selling, Inc. • 2007

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 Purpose: To discuss tactics of how to get to power. Key Instructor Notes: Read the bullets while providing appropriate commentary Bullet 1: If vision and value are clear and compelling, the buyer may want to pass on that level of excitement to a decision maker… not waiting for the next meeting Bullet 2: If vision and value are compelling, the buyer will often feel comfortable engaging in the “quid pro quo” Bullet 3: Those who won’t grant access to power may not for several reasons: They may be a “burn victim”. They may have been oversold technology in the past or had a bad experience with a salesperson. These people may be serious about buying but need a little more confidence via proof steps. The seller will need to gauge whether the potential cost of proof outweighs the potential return on the project to the seller’s organization They may be a sponsor for another project Their job may be threatened by your offering or service They may see the project as additional work for them Bullet 4 (sub-bullet): It may be necessary to disengage from this prospect and find someone else who will act as a Sponsor. The impact conversation that took place during vision processing can be an ideal time to uncover another potential Sponsor Bullet 5 (sub-bullet): As described above with the “burn victim”, you may have someone who is interested in how they might benefit from your offering. They just might be hesitant to promote it within the company due to … it being new technology, political fear, etc. In this instance, they have something to gain from the opportunity advancing and would likely help you find another person to drive it internally. Transition: “So we left off on the Strategic Alignment Prompter telling the buyer we would follow up confirming our understanding of their situation. We told them we would suggest a specific way to prove our capabilities to them. Let’s look at that correspondence, which we call a Sponsor Letter…” © Solution Selling, Inc. • 2007

Potential Sponsor Letter/e-mail: Example
Qualification Components: 1 2 3 4 5 6 Steve (Office Manager), Thank you for your interest in Office Depot. The purpose of this 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 Purpose: To provide an example of the follow up correspondence that should be sent to the prospect upon completion of the vision processing conversation. Key Instructor Notes: Focus on the content of the letter / instead of the tone of it which is a little direct. You would certainly put your own words around this. Let’s look at the specific components The letter has six key components. The instructor should engage the participants by asking, “What is the first component of the letter?” (Answer: Pain) Note: The word “pain” is not used in the letter, it is only a “training word” What is the second component of the letter? (Answer: Reasons for the pain) “Where did we find out the reasons?” (Answer: Boxes R1 and R2 of the 9 Block Vision Processing Model®) What is the third component? (Answer: Vision - it consists of the capabilities needed to address the reasons) What is the fourth component? (Answer: Agreement to explore) What is the fifth component? Answer: The bargain for access to Power) What is the last component? (Answer: The proof step - proof should consume a minimum amount of your company’s time and resources while still satisfying the sponsor. Recall the seller is not at “power” yet The letter can also help with internal selling. i.e. its easy to forward an to the decision maker Discussion point: “As a buyer, if you received this letter, how would you perceive the seller?” Note: Some cultures will shy away from the use of documenting conversations, be aware of this especially in some Asian countries Key Comment:  Customization  – This Sponsor Letter should be customized for client-specific examples Transition: “Acceptance of the Sponsor Letter by the sponsor marks a major milestone in the sales process...” © Solution Selling, Inc. • 2007

Gaining Access to Power A Second Vision Processing Conversation
Power Sponsor Pain Reason A Reason B Reason C I2 C2 RI R2 I1 C1 R3 I3 C3 Sponsor Pain Reason A Reason B Reason C I2 C2 RI R2 I1 C1 R3 I3 C3 Purpose: To visually depict the process for getting access to power and what takes place when engaging with power. Key Instructor Notes: This graphic is intended to help the participants make a “leap in time” by describing the process that takes place between sending a Sponsor Letter and following up a Power Sponsor conversation The dialogue may sound something like, “Keeping in mind we took the Sponsor through the nine blocks… (Pointing to the Sponsor block and corresponding 9 Block Model) … We then followed up with our proof step. They agreed that we proved our capabilities to their satisfaction and introduced us to power. We should provide a recap of the sponsor conversation, uncover or verify the Power Sponsor’s pain and then engage in vision processing with Power.” (Pointing to the Power Sponsor block and corresponding 9 Block Model) We would have had a similar conversation about some of the capabilities we might provide, but would have articulated those capabilities in a way that they help to address the reasons for power’s pain. We actually would use a different Pain Sheet® to help have a diagnostic conversation. That Pain Sheet® is on the following page.” Transition: “An example of a different Pain Sheet® (one for Power) is on the page that follows...” © Solution Selling, Inc. • 2007

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? When: 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? Ordering cleaning and break room supplies Had one specific, standardized list of approved corporate items, competitively priced and available for next day delivery? © Solution Selling, Inc. • 2007

Strategic Alignment: Steps 6 and 7b Determine Ability to Buy and Determine Evaluation Criteria
BUYER PERSPECTIVE / DECISION SALESPERSON 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 / with an Draft Evaluation Plan included Purpose: To introduce portions of a framework that can help sellers stay in alignment with buyers as they move through their buying process. Key Instructor Notes: For each key objective, there is a specific selling activities to engage in based on alignment with where the buyer is (psychologically and procedurally) in their buying process We will look at examples of these questions shortly Transition: “In this scenario, we are assuming the buyer is the power sponsor…” © Solution Selling, Inc. • 2007

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 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.” Purpose: To provide sample text that can help a seller stay in alignment with a buyer as they move through their buying process. Key Instructor Notes: The instructor may want to have a quasi-role play like they did when they covered Steps 6 and 7a earlier Read aloud the text under the banner “Step 6: Determine Ability to Buy” while recalling, “We’ve already covered this step, but we still want to ask the question to make sure that this supposed power sponsor is indeed one.” Since you (as an aside - referring to the participant playing the Power Sponsor) are the Power Sponsor, your reply would be…? (The participant should say– “I can make this happen” or “the final decision will be made by me.”) (Read aloud the text of “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?” … The seller is attempting to understand what the customer would want to do, need to see or be accepting of as part of their buying process. When the Power Sponsor starts sharing their criteria for evaluation, the seller should take notes. It is important that the seller NOT agree or disagree with any of the requests. Now is not the time to discuss the specifics of what is or is not a reasonable request. The focus could shift from well-established vision and value to “the one thing” that you might not do for them. There is a better time to deal with the requests - that takes shape in the form of an Evaluation Plan. It will help define the sell cycle from that point forward “If we get to a point where we might want to do business… approval?” This is straight forward. Administrative approval usually refers to the need to be on a preferred vendors list “Will you want a proposal from me?” Most of the time the customer will say “yes” to that question. The seller asks this question in order to define what a proposal is and to control when and under what circumstances to provide it “State No New Information & Suggest Pre-proposal Review” “It is important to be in the business of selling and not free proposal production, they’re vastly different approaches. The Pre-proposal review meeting must be set up early with “power” “End Call – Write a Power Sponsor Letter with Evaluation Plan” – This (evaluation) plan is a draft one for the customer to evaluate the seller’s offering regarding this particular opportunity Transition: “We will look at both the Power Sponsor Letter and the Evaluation Plan shortly, but first let’s give you a chance to read through the text as a seller calling on ‘power’…” © Solution Selling, Inc. • 2007

Potential Power Sponsor Letter/e-mail: Example
Qualification Components: 1 Pain 2 Reasons for the Pain 3 Buying Vision 4 Organizational Impact 5 Agreement to Explore 6 Evaluation Plan Set-up 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 Purpose: To provide an example of the follow up correspondence that should be sent to the Power Sponsor upon completion of the vision processing conversation. Key Instructor Notes: This letter / is similar to the Sponsor Letter but with a few exceptions You will notice that the Power Sponsor Letter also recalls the (1) pain, (2) reasons for pain, (3) his or her buying vision and the component, agreement to explore. Components 4 and 6 are what make it different from the Sponsor Letter Organizational Impact attempts to expand the scope of the problem (as well as list potential beneficiaries) by tying in others impacted Evaluation Plan set-up helps describe the attached plan that suggests how the buyer and seller’s organizations might process through the rest of the sell cycle Notes: Note: Some cultures will shy away from the use of documenting conversations, be aware of this especially in some Asian countries Key Comment:  Customization  – This Power Sponsor Letter should be customized for client-specific examples Transition: “You’ll find the attached (draft) Evaluation Plan on the next page…” © Solution Selling, Inc. • 2007

Draft Evaluation Plan: Example Attachment to Power Sponsor Letter/e-mail
Event Week √ Responsible Go/No Go Interview with procurement and accounting February 14 OD/Alliance Interview IT about back-end systems Interviews with end-users at other locations Summarize findings to management team * Provide CBS samples / product evaluation and conduct delivery match-ups OD Conduct demonstration of ordering platform (proof of capabilities) February 21 Gain approval of implementation plan Alliance Discuss pricing and refined value proposition Agree to success criteria Create market evaluation (Bid) February 28 Send agreements to legal Analyze competitive evaluations March 7 Present final proposal & gain agreement to move forward March 14 Gain legal approval March 21 Begin implementation March 28 Measure success criteria Ongoing * Mutual decision to proceed © Solution Selling, Inc. • 2007

Power Sponsor Letter / e-mail: TDM Example
Jim (Finance), Thank you for meeting with me earlier today. I believe it was time well spent for both our companies. We discussed the following: (1) The primary critical issue is increasing operational costs. (2) Reasons for not increasing operational costs Spending too much time reconciling invoices Spending too much time in approval process (3) Capabilities you said you needed: When an order is entered the administrative professional could be assured that the invoice requirements have been completed so that less time is spent reconciling invoices on the back-end When a special request order is entered you had a way for the order to be automatically compared to preset rules and routed appropriately for approval so that you don’t spend too much time waiting for approvals You said if you had these capabilities, you would be able to decrease your costs. Our next steps (4) When I told you I was confident Office Depot could help, you indicated you felt so too and suggested we proceed with next steps. (5) Based on my knowledge to date, I have included a list of what the next steps might be to help you further explore Office Depot. I will call you on Thursday, to get your thoughts. Sincerely, Bill Hart Next Steps Week of Review usage list June 22 Speak with Accounts Payable about pay requirements June 22 Present and gain approval on bid June 29 Agree on implementation plan & success criteria June 29 Set-up account June 29 Conduct web-site demo & place first order June 29 or July 6 Qualification Components: 1 Pain 2 Reasons for the Pain 3 Buying Vision 4 Agreement to Explore 5 Suggested Next Steps

TDM and Major/Global/Public Conduct role play of buyer qualification process

Quid Pro Quo in Diagnose

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 Engage Diagnose 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/ Power Sponsor Letter/ 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

“Go/No Go” Step Completion e-mail: Example
To: cc: ; 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 Purpose: To provide an example of the follow up correspondence that would be sent to the customer upon completion of (an Evaluation Plan’s) a “mutual decision to proceed” event. Key Instructor Notes: Although the content of this letter ( ) may seem straight-forward, it can be an effective way to gently remind the customer of the progress being made. It also becomes an effective job aid for staying engaged with the customer on a regular basis during the execution of the plan Completion Letters are generally used to communicate the accomplishment of a “Go / No Go” event. That does not mean they can’t be used to communicate every event completed Some sellers find it effective to attach an Updated Evaluation Plan (showing the events marked as “complete”) to each of the Completion Letter transmissions. This explains the attachment found as part of the letter Copied on the letter are key players in the seller and buyer’s organizations This example has the seller sending the letter to the Power Sponsor. Sometimes the Power Sponsor may turn over the ownership of the plan to an internal resource. In this case, the letters / s would be directed to that person while copying the Power Sponsor on any correspondence or updates Key Comment:  Customization  – This Go/No Go Step Completion Letter should be customized for client-specific examples Transition: “As we begin to execute the events of the Evaluation Plan, let’s track along with the Evaluation Plan that the seller sent to the Power Sponsor…” © Solution Selling, Inc. • 2007

Three Sales within a Sale
FINANCIAL SALE Operational Vision + Transition / Implementation Vision “What is the overall value to the organization?” 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?” Purpose: To position the importance of positioning other critical components of a sale other than just focusing on the operational sale. Key Instructor Notes: Often we focus on, what we might call the operational sale… but there is also may be the transition sale to consider – helping the client visualize how they will transition from their current state of business to their desired state – this can be an opportunity to sell additional (post sale) services… All of these capabilities need to be justified in the way of the financial sale These are important elements that can be established during the evaluation plan Transition: “Let’s look at the operational sale…” © Solution Selling, Inc. • 2007

Three Sales within a Sale The Transition Sale: Transition / Implementation Vision
FINANCIAL SALE Operational Vision + Transition / Implementation Vision “What is the overall value to the organization?” 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?” Purpose: To highlight the content to be covered in context of the “three sales” . Key Instructor Notes: We have spent the majority of the workshop discussing elements of the operational sale. In the rest of this module we’ll look at both the Financial Sales and the Transition Sale. The Transition Sale, usually relates to helping support functions (technology, administrative, etc.) implement your capabilities (products and/or services). These people usually can’t say “yes” to a project but they can so “no”. Its one of our responsibilities as sellers to help them transition from where they are today, to where they need to be tomorrow in order to help achieve the Line of Business’ goals The use of the word “implementation” and “transition” change throughout this module. The use of “transition” describes the theory of getting the customer to see where they are today in relation to where they can be or want to go. The use of “implementation” describes the events that will take place to accomplish the transition (vision) It may be useful to share a personal example of a purchase you wanted to make (operational) but didn’t because you couldn’t envision how to get from your current state to the desired state (transition)… e.g. Purchase of a new cell phone – you may like the new phone’s functionality and it may well be within what you want to spend, but you have so many phone numbers and speed dials already stored in your current phone that you don’t want to go to the effort of re-entering all of that data, so you decide not to buy. If the phone seller could have described a service or functionality within the phone that helped with that database transition then you might have bought after all Transition: “Let’s look at the transition sale…” © Solution Selling, Inc. • 2007

Evaluation Plan: Example The Transition Sale
Event Week √ Responsible Go/No Go Interview with procurement and accounting February 14 OD/Alliance Interview IT about back-end systems Interviews with end-users at other locations Summarize findings to management team Go Provide CBS samples / product evaluation and conduct delivery match-ups OD Conduct demonstration of ordering platform (proof of capabilities) February 21 Gain approval of implementation plan Alliance * Discuss pricing and refined value proposition Agree to success criteria Create market evaluation (Bid) February 28 Send agreements to legal Analyze competitive evaluations March 7 Present final proposal & gain agreement to move forward March 14 Gain legal approval March 21 Begin implementation March 28 Measure success criteria Ongoing * Mutual decision to proceed © Solution Selling, Inc. • 2007

Transition Issues & Capabilities Worksheet
Person responsible: Facilities Manager Transition issue: Potential inhibitors to rapid implementation REASONS OUR TRANSITION CAPABILITIES A Unaware of all buyers in organization When placing orders all users could go to the web site and self-register via or have the website posted on your corporate purchasing website to ensure all buyers become aware of the new process. B Invoicing procedures are inconsistently defined or not defined at all When placing orders, end-users would have to fill out required, validated fields to ensure accurate billing. © Solution Selling, Inc. • 2007

Three Sales within a Sale The Financial Sale: Operational Vision + Transition / Implementation Vision FINANCIAL SALE Operational Vision + Transition / Implementation Vision “What is the overall value to the organization?” 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?” Purpose: To highlight the content to be covered in context of the “three sales” . Key Instructor Notes: None Transition: “Let’s look at the financial sale…” © Solution Selling, Inc. • 2007

Evaluation Plan: Example The Financial Sale: Operational Vision + Transition / Implementation Vision
Event Week √ Responsible Go/No Go Interview with procurement and accounting February 14 OD/Alliance Interview IT about back-end systems Interviews with end-users at other locations Summarize findings to management team Go Provide CBS samples / product evaluation and conduct delivery match-ups OD Conduct demonstration of ordering platform (proof of capabilities) February 21 Gain approval of implementation plan Alliance Discuss pricing and refined value proposition * Agree to success criteria Create market evaluation (Bid) February 28 Send agreements to legal Analyze competitive evaluations March 7 Present final proposal & gain agreement to move forward March 14 Gain legal approval March 21 Begin implementation March 28 Measure success criteria Ongoing * Mutual decision to proceed © Solution Selling, Inc. • 2007

THE BEST RELATIONSHIPS ARE BASED ON VALUE
Basic Principles BASIC PRINCIPLE THE BEST RELATIONSHIPS ARE BASED ON VALUE PEOPLE MAKE EMOTIONAL DECISIONS FOR LOGICAL REASONS BASIC PRINCIPLE Purpose: To position two of the key basic principles within Solution Selling®. Key Instructor Notes: The Best Relationships are Based on Value - Having a friendly relationship with a client is an important aspect of business so that should not be overlooked; however, value is what really sustains relationships E.g. Imagine this scenario, … Your long time contact for your best customer organization leaves, retires or is fired. What would you say if the CFO came to you and asked you to describe the value that you had delivered to his/her firm for the last x years. You no longer have that contact at the company as your connection. This can be a tough situation unless you have constantly established and demonstrated customer-value along the way in the relationship. Therefore, we believe that the best of relationships are based (and sustained) on the value that you deliver People Make Emotional Decisions for Logical Reasons - Often we make a purchase based on emotion (something we “want”) and then afterwards developed the logical reasons to support our decision E.g. If while I was in town I stopped by a local car dealership and fell in love with their newest red, convertible. If I purchased that without consulting with my significant other, what might I think about on the drive home? (Answer: start developing in my mind all the “logical” reasons why I bought the car.) What do I tell my significant other about the acquisition that helps logically justify the purchase? (Answers like: I got a good deal on it, the manufacturer makes quality cars, it looks like a professional car and should help promote a business image to my clients, my other car was falling apart, etc.) There are two key points to take away from this topic: It may be necessary in our selling efforts to help provide the logical reasons in order to support the buyer’s need to justify his or her purchase that was based on emotion. Sellers should recognize that this behavior can take place when a buyer has a tendency to favor a competitor (or alternative to our offering). The buyer may provide logical reasoning why the seller wasn’t the selected vendor (e.g. ‘your offering is a little obsolete’) when in reality they may have may an emotional decision in terms of their selection (e.g. ‘The buyer has a better personal relationship with the chosen vendor’) Transition: “Let’s talk about value justification in the context of the Value Cycle...” © Solution Selling, Inc. • 2007

Refined Value Proposition
Reasons for participation: Initiating Closing Discounting Must be done Others? Early adopters (visionaries) vs. Majority (pragmatic and conservative) Purpose: To provide compelling reasons why value justification is a good practice. Key Instructor Notes: What is the difference between value justification and cost justification? - The difference might be perceived as slight, it really can be described as two categories of seller’s perspective. The seller either has the mindset that they have to answer “Why should the buyer spend money with me?” or the seller has the mindset that his/her capabilities provide an real, financial value to the buyer Reasons for participation: Initiating – “Initiating sell cycles” through leading with initial value propositions Closing – Value justification creates compelling reasons to take action. The buyer should be eager to close the opportunity so they can start receiving the benefits Discounting – If both the buyer and seller know the value the buyer is receiving (not just the investment) then the buyer is less likely to ask for (or expect) a discount and the seller is less likely to feel like they have to discount Must be done – For expensive acquisitions, someone in the buyer’s organization is going to have to justify the expenditure (formally or informally). Sellers should attempt to help be part of the justification process Early adopters vs. Majority –Visionaries see how the implementation of your offerings will give them an advantage in the marketplace. These visionaries only make up 20% of the market. The other 80% are more pragmatic and conservative, they need proof and the demonstration of high value to mitigate their risk. Value Justification / analysis becomes more important to this segment of the market The concept of the 20/80 with the marketplace definitions comes from Geoffrey A. Moore’s book, Crossing the Chasm: Marketing and Selling High-Tech Products to Mainstream Customers (published in 1991 by HarperCollins Publishers, Inc). The No-Decision Myth: A pie chart should be sectioned off into three slices. Two of the slices should be labeled “Win” and “Lose”. The pie chart represents all of the opportunities a seller engages in annually. What is the third category? (It might be your biggest competitor) The usual answer is “no decision”. This is a myth… SPI would contend that opportunities don’t wind up in “no decision”. Clients’ usually do make a decision - they chose an alternative project. They didn’t go with you or your competition but they may have chosen to invest that (budgeted) money on other options. If you think of the people who “hold the money” as bankers – they don’t “sit” on the money, they invest it to get a return. So the moral of the story is to always provide some level of value analysis – you may be competing against an accounting system, a new fleet of trucks, furniture…etc.” Transition: “If we are going to engage in Value Analysis there are certain elements that we must have in mind... © Solution Selling, Inc. • 2007

Refined Value Proposition What Will Be Measured?
Profits from increased revenue Examples: 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 costs 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 costs Capabilities provided by your product / service that help the buyer eliminate a future cost Overtime Employee turnover Equipment downtime Intangible benefits 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 Purpose: To provide examples of the types of things measured in Value Justification. Key Instructor Notes: You may recall this page shown earlier in the Vision Creation module sub-titled “Keeping the End in Mind”, this is the end in mind I was referring to… using the output of our customer conversations to feed the eventual Value Justification / Value Analysis This page shows generic examples of the types of tangible (and Intangible) items to be measured Read each definition and their examples Redirected cost (an old Solution Selling® term) should be avoided when developing an ROI / analysis. Although redirected cost may be a benefit to one key player, the cost are still being absorbed in another area of the company which may affect a different key player Intangible benefits are important to selling, but if they can not be “made into tangible, measurable benefits” they can’t be included in the value analysis Note: The “Value Analysis” section does not go into great detail on financial terminology. This module is intended to “touch upon” elements of return on investment Transition: “An example of the benefits to be measured for our (running) example can be found on the page that follows...” © Solution Selling, Inc. • 2007

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.” 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) Sources for information: Office Manager Accounting VP Facilities © Solution Selling, Inc. • 2007

Evaluation Plan: Example The Financial Sale: Operational Vision + Transition / Implementation Vision
Event Week √ Responsible Go/No Go Interview with procurement and accounting February 14 OD/Alliance Interview IT about back-end systems Interviews with end-users at other locations Summarize findings to management team Go Provide CBS samples / product evaluation and conduct delivery match-ups OD Conduct demonstration of ordering platform (proof of capabilities) February 21 Gain approval of implementation plan Alliance Discuss pricing and refined value proposition Agree to success criteria Create market evaluation (Bid) February 28 Send agreements to legal Analyze competitive evaluations March 7 Present final proposal & gain agreement to move forward March 14 * Gain legal approval March 21 Begin implementation March 28 Measure success criteria Ongoing * Mutual decision to proceed © Solution Selling, Inc. • 2007

Success Criteria: Example Part of Business Review
Baseline Q1 Q2 Q3 Q4 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 VP Facilities Office Manager Procurement © Solution Selling, Inc. • 2007

Success Criteria: Leveraging Success
Reference Story Situation: Critical issue: Reasons: Capabilities: We provided: Results: Criteria Baseline Q1 Q2 Q3 Q4 RI I1 C1 R2 I2 C2 R3 I3 C3 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? Purpose: To visually depict how success criteria metrics can be leveraged to develop stimulating interest job aids Key Instructor Notes: This graphic represents how measuring the metrics (most likely uncovered during the vision processing conversations) periodically can help provide the results for future Reference Stories to be built. This can also provide results to help construct Initial Value Propositions The Business Development Prompter (graphic) indicates that a new sell cycle can be begun by prospecting into a potential opportunity with the intent to leverage the metrics from a successful engagement Note: Measuring the success after implementation can also lead to other opportunities. A seller might realize that one item (of criteria) is not proceeding the way it should. If it is the selling organization’s responsibility to fix it, then they should feel obligated to do so. If it is the customer’s responsibility, then the seller might have an additional opportunity to provide additional offerings or services. It also can serve as a mechanism to stay in front of a regular basis (not just when they call with a potential opportunity) Transition: “As we progress through the execution of the Evaluation Plan, we begin to near that point where we will be conducting the pre-proposal review and delivery of the proposal. …” © Solution Selling, Inc. • 2007

Quid Pro Quo in Propose and Close

Sales Process Flow Model
Latent or Admitted Pain Potential opportunity starting points Vision or Active Evaluation Conduct pre-call planning and research Perform opportunity assessment Stimulate interest Go? No No Yes Define “pain” or critical business issue Yes Yes Negotiate access to power Select competitive strategy No Diagnose and create vision of company-biased solution Yes At power ? Yes Reengineer vision with company differentiators No Yes No 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 Purpose: To introduce another view of the sales process Key Instructor Notes: Another view of the sales process. There are 2 starting points: one for latent and admitted pain; another for vision or active evaluation For today and part of tomorrow, we are going to focus on the latent side and how to create your own opportunities Reach final agreement Measure and leverage success criteria © Solution Selling, Inc. • 2007

Office Depot Sales Process Active Opportunities
Where are you? Where is the buyer? 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 Engage Diagnose Propose and Close Implement Fulfill 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 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/ Power Sponsor Letter/ Evaluation Plan Transition plan Success Criteria Negotiating Worksheet Get-Give List Resolving Customer Concerns (PSS ® Skill Guide Card) Implementation Plan Reference Stories Yield Percentages 25% 75% 100%

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 Purpose: To provide a high-level list of items to consider when analyzing whether to engage in an “active” opportunity or not. Key Instructor Notes: Ask yourself, “Was it ACTIVE when I became aware of it?” - It is active, most likely you’re being used to fill a column or to provide information. The buyer / prospect may be friendly, they may even be encouraging… remember the principles of Solution Selling®… don’t let the emotion of an easy opportunity’ cloud your judgment as to the buying process that most likely took place before you got involved (i.e. how buyers buy). Ask yourself who has influenced the visions? and Who is in control of the buying process? Also, let the buyer’s actions speak louder than their words. Which really takes us to the next bullet… Perform an opportunity assessment to determine “should I engage or not?” - We’ll look at a few samples of an Opportunity Assessment in a moment. An Opportunity Assessment should help you gauge where you truly stand with a potential opportunity by analyzing what the buyer does or doesn’t do, not just what they say – words can be deceiving – sometimes he hear what we want to Select an appropriate competitive strategy - Once you’ve decided to engage in the opportunity, select the most appropriate strategy. We’ll look at 4 specific strategies for competing (two which fall under lead and two under fall back Be prepared to make a disengagement decision if you can’t reengineer the requirements – Remember, one of the key selling skills was not only qualification but disqualification. The only thing wrong about being wrong, is staying wrong!!! Don’t confuse activity with progress Notes: A poker analogy may or may not be appropriate based on the audience. It has often been said that Opportunity Assessment is like playing poker. You determine your ability to win and whether you want to play “or fold”. You may choose to play, but once you realize that you can’t win, you should probably “fold” as soon as possible. The people who stay in when they know they can’t win probably have invested so much time and resources – “putting a lot in the pot” that they don’t dare walk away. The person who comes in second place (if there is such a thing) in a hand of poker is the person who disengages early with minimal time and resources invested – a “good loss” Transition: “Let’s look at a few forms of opportunity assessment…” © Solution Selling, Inc. • 2007

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? Purpose: To provide an example of the types of questions to analyze when quickly assessing the decision of whether to proceed in an opportunity or not Key Instructor Notes: The message (in terms of quick assessment) is that you’ll have to decide to what level you conduct assessments. Obviously the more you know, the better you can make a decision. Of course, time is limited too. We will expose you to a quick assessment and a more detailed assessment. You will have to decide which is best for you to use for your opportunities. Just like most of the job aids we’ve discussed (up to this point), they should be scalable so that they work for your selling environment. Read the bullets as you make reference to the Successful Sale Formula (Pain x Power x Vision x Value x Control). The first three bullets contain two questions… the later question tends to be used in more complex, strategic opportunities (and actually are shown on the full 25 question Opportunity Assessment on the next page) If a salesperson sells in a ‘transaction-based’ environment where they are quickly turning over opportunities / or have a full pipeline of many opportunities, it may make sense to use the formula as a quick opportunity assessment Opportunity Assessment does not just happen once. Opportunities should be continually assessed Opportunity Assessment is not done for just “active” opportunities. You would want to conduct one for “latent“ opportunities as well. You would also want to assess an opportunity again before committing resources. This is most likely done prior to engaging in the development of an Evaluation Plan If you asked most sellers what is the qualification criteria for making an opportunity qualified, the most common four answers (universally) are: (1) Budget (2) Timeframe (3) Decision maker (4) Fit / Need Sometimes this criteria can be misleading. They are important, but if those four items are known, then often the buyer knows the fifth criteria - who they want to buy from (and it likely isn’t you). If a buyer can tell you those four items, they are “down the road” in their decision making process, the opportunity is qualified for everyone… let’s qualify by different standards (i.e. P x P x V x V x C) Transition: “These five components / questions become the basis for a more in depth opportunity assessment…” Sale = Pain x Power x Vision x Value x Control © Solution Selling, Inc. • 2007

BD - Win Probability / Project Viability Scoring

Opportunity Assessment (Worksheet) “Detailed Assessment”: Example
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? Purpose: To provide an example of a job aid that helps analyze whether to engage in an opportunity or not. Key Instructor Notes: Some things to recognize about the Opportunity Assessment Worksheet: The ratings (yes, no and unsure) allow for the salesperson to determine their own status for each question as well as allows for a comparison against competition. (Note: Additional columns for competitive analysis could be added.) The “Quick 5” assessment questions (found in the darkened rows) of the Opportunity Assessment Worksheet also provide a location for the salesperson to rate their status as well as that of possible competitors. This is where the “quick assessment” described on the prior page can come into play The space provided for “assessment date” helps salespeople and managers determine the age of information gathered. It especially becomes useful when a salesperson performs later assessments to determine their progress or lack thereof The Opportunity Assessment Worksheet should not be viewed as a scorecard (i.e., more “yes” ratings for one vendor does not equate to a win). It helps the salesperson objectively determine what they know, don’t know and need to know It is reasonable to expect several ratings of “unsure” as it relates to answering some questions early in the sell cycle where there is more information yet to be uncovered Most of the 25 questions have also been written in a manner that all references to your organization via the words “our” or “we” which are in italics – indicating that during any competitive assessment, those words should be replaced by “they” or “their” to answer each question from the perspective of the competition Transition: “Conducting an opportunity assessment begins to direct the seller in determining how they are going to compete in the opportunity...” © Solution Selling, Inc. • 2007

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 Purpose: To provide strategies (and examples) to select from when competing in active opportunities. Key Instructor Notes: You may be familiar with these competitive strategies. They come from Sun-Tzu’s The Art of War Sun-Tzu ( BC) authored The Art of War. He was made a general by the king. He led an army westwards, crushed the Ch`u state and entered Ying the capital. The book is considered the oldest book of formalized concepts and principles of (conventional) war and military strategy today Preemptive – The strategy of being preemptive (although not a strategy for responding to active opportunities) usually requires us to prospect. Although prospecting in not always salespeople’s favorite activity, the alternative is to be column fodder and have to compete from behind Head-to-Head – This lead strategy is when two organizations compete in a “head-to-head” / direct fashion… or one might say “feature-to-feature”. Buyers like for us to compete this way. It allows them (in their mind) to conduct a comparative analysis – comparing apples to apples. It probably is the most often used strategy by sellers… it also is probably the strategy that sellers lose with the most often. Sun-Tzu described the need for at least a 3:1 advantage when competing in a head-to-head fashion. That 3:1 advantage must be from the customer perception. It is not often that we have that great of an advantage when it comes to our features, pricing, terms and conditions, etc. End-Around – This lead strategy is when one organization attempts to “change the rules” of an evaluation in order to more effectively compete. This strategy is what we would recommend the most. We call this vision reengineering Divide and Conquer – This fall back position is used when the seller’s organization can not meet all of the requirements but can perform one of the functions in an exceptional manner. They will go after the part of the business that they think they can win. E.g. If your organization is a total solution provider, you may bid on an entire project only to realize that you can’t compete on the price and functionality of your software and hardware. You may still bid on the services portion knowing that is a strength of yours Stall – This fall back position is used to create a desire on the part of the buyer to delay making a purchasing decision until the company (using the strategy) can present their offering. Most companies that can successfully use this approach must have a great deal of market share or brand recognition. Some companies make pre-release announcements to stave off their competitors (E.g. Both IBM and Microsoft have used stall tactics successfully) Transition: “We’ve compiled these competitive strategies into a flow model-like tool that helps the seller answer a few questions in order to determine the most effective strategy in which to engage…” © Solution Selling, Inc. • 2007

YOU MAKE YOURSELF DIFFERENT
Basic Principle BASIC PRINCIPLE MAKE YOURSELF EQUAL BEFORE YOU MAKE YOURSELF DIFFERENT Purpose: To position one of the key basic principles within Solution Selling® (and of vision reengineering). Key Instructor Notes: Emphasize the principle with the following anecdote: “Are most of the ideas you come up with, good ones?” (Yes?)… Why? Because they were your ideas! People have ownership of their ideas and generally don’t like to be told that their ideas are bad ones.” One facilitation technique is to share a anecdote about… a trip you are planning or a car you are about to buy – something personal, but make the example something the participants will likely react to negatively. (e.g. “Although my significant other is really a city person who likes to be pampered, I’m planning a surprise trip to go camping in the wilderness, what do you all think?”) After the negative reaction, point out how they were quick to react negative to your vision. Ask how they might have consultatively made themselves equal before attempting to change the vision Think of this point in comparison to how we treat prospects or clients… sometimes as sellers we visit with a customer, they tell us an idea that they have (maybe a vision influenced by a competitor) and (often) the first thing we want to say is “Why would you want to do that? That’s not what I would do at all.” If you’ve done this, you’re probably not alone, we’ve all done it and probably had someone do it to us How would you feel as a buyer if you had spent the last year conducting a thorough needs analysis, called a seller in to see how their capabilities match up, and the first thing you heard was, “That’s a bad idea … won’t work … why do you want to do that?” How would you feel about that seller? So making yourself equal before you make yourself different does not necessarily mean that you have to match the requirements list one-for-one, but that you should FIRST participate, understand, and compliment the buyer’s existing vision before you attempt to add to it or change it. Psychologically, the buyer will be more willing to engage in differentiating conversation once they feel like you understand their current perspective Transition: “What do we mean by this?” or “Allow me to elaborate on this principle...” © Solution Selling, Inc. • 2007

How Organizations Buy – “Changing the Rules”
Requirements Company A Company B Company C “ADD TO”    “DIFFERENTIATE” “TAKE AWAY” Purpose: To revisit the concept of how buyers buy in order to position the reengineering approach. Key Instructor Notes: The concept “How Organizations Buy” was taught earlier. This is a reference back to that concept but this time the graphic depicts the vision reengineering approach The instructor may find it effective to “play out” this teach point by charting the graphic on a flipchart and filling in the missing portions as he/she describes that through dialogue the seller tries to bias the existing vision If we are Column B (or C), knowing that we want to move into Column A, we would want to, first, understand the buyer’s current buying vision (making ourselves equal) and then attempt to make ourselves different by either adding to the list of requirements or taking away requirements.” Transition: “These tactics can be executed in the context of the 9 Block Vision Processing Model®; however, the execution would take place in a different sequence that you will recall with Vision Creation...” © Solution Selling, Inc. • 2007

Vision Reengineering – Questions to Ask
SALESPERSON ACTIVITY QUESTION(S) TO ASK 1 Participate in original vision  2 Bias original vision with capability vision questions 3 Explore current method 4 Diagnose current method with bias and measurement 5 Summarize current method Lead the buyer to the critical business issue (pain) and measure 6 Explore impact 7 Expand impact 8 Summarize impact 9 Confirm new buying vision (original vision + new capability visions) BOX Purpose: To help the participants understand the sequence of vision processing for active opportunities. Key Instructor Notes: Describe each “seller activity” (left side), ask, “In which box would we ask that question?” (Icons on the right side) and “What would be an example of that type of question?” (questions to ask box) Have participants record instructor examples of “Questions to Ask” (middle of page) in their workbook Activity 1: “If we want to make ourselves equal before we make ourselves different we would first participate in the buyer’s original vision. Where?” Answer: C1. The (seller) question: “How do you see yourself using this vision / capability?” Activity 2: “Now we can make ourselves different. We do that by biasing the original vision with capability vision questions. Where?” Answer: C2. The (seller) question: “Are you are looking for a way to…?” Activity 3: “Now we want to explore the current method of how they operate today. Where would we do that?” Answer: R1. The (seller) question: “How do you do it today without this capability?” Activity 4: “We then diagnose the current method with bias and measurement. Where would we do that?” Answer: R2. The (seller) question: “Today,… (do your salespeople spend too much time…)?” Activity 5: “Then we’d summarize the current method. Where?” Answer: R3. The (seller) question: “So, the way you do it today is…! Is that correct?” Activity between 5 & 6: “What don’t we know? The pain. The buyer has not shared pain. We may know it, but we need the buyer to admit it. Here we leave the nine boxes to lead the buyer to the critical business issue and measure it. E.g. “What is the effect on you and your business of doing it this way?” Through diagnosis and confirmation, the dialogue may naturally lead the buyer to admit their pain Activity 6: “Once pain is admitted, we explore its impact. Where?” Answer: I1. The (seller) question: “Besides yourself, who in your organization is impacted by this (pain) and how…?” Activity 7: “We would expand the impact by leading the conversation. Where?” Answer: I2. The (seller) question: “Is this (pain) also causing… If so, wouldn’t the (title) be concerned?” Activity 8: “We would summarize the impact just like we did before. Where?” Answer: I3. The (seller) question: “From what I just heard, it sounds like (who) is impacted (how)…! Is that correct?” Activity 9: “Now we confirm the new buying vision? Where” Answer: C3. The (seller) question: “When you called you were looking at… but today you also said you needed… If you had… could you…?” Transition: “We’ve identified the optimal sequence for navigating through the reengineering version of the nine blocks and we’ve looked at some questions to utilize in the model, let’s look at the model itself…” © Solution Selling, Inc. • 2007

9 Block Vision Processing Model® - Vision Reengineering
PAIN $ CURRENT VISION “What is the effect on you and your business of doing it this way?” Diagnose Reasons Explore Impact Visualize Capabilities R1 3 I1 6 C1 1 “How do you do it today without this capability?” (“It” = perform the function they want to improve) “Besides yourself, who in your organization is impacted by this (pain) and how are they impacted?” “How do you see yourself using this (repeat initial vision)?” (Clarify initial vision in when, who, what format) Open R2 4 I2 7 C2 2 “Today…? Reason A?… Reason B?... Reason C?... #?, %?, $? “Is this (pain) causing… (another pain)?” “If so, would (other job title) also be concerned?” #?, %?, $? “Are you also looking for a way to…?” Would it help if you also had a way to …?” Capability Vision?... Control R3 5 I3 8 C3 9 Purpose: To expose the participants to the 9 Block Vision Processing Model® for Vision Reengineering. Key Instructor Notes: Vision Reengineering is used to change requirements biased toward a competitor or an internal vision Vision Reengineering helps use have a diagnostic conversation where a buyer is at Level of Need 3 (Vision) or 4 (Active Evaluation). The sequence of the Vision Reengineering model assumes the worse case scenario – Level 4, where the vision is biased and the seller has to earn the right to proceed. In a majority of “active” opportunities you won't know the pain and often they won't tell you. The buyer’s mindset is that they have spent a lot of time determining what they need (often a competitive vision). They don't want to take the time to go back through the due diligence process. They know what they need already and only want to know about your offering and price Often a buyer at Level 3 is more open to a diagnostic conversation and will provide the seller some flexibility in navigating the model (e.g. the buyer might more easily share their pain) In either case, we want to stay in alignment with the buyer but we also know that if we don’t change the rules, we likely will not win The text “clarify initial vision in when, who, what format” prompts the seller to explore how well the current vision is established. It can hint at who (competitor) may have helped craft the initial vision. It can also help the seller start to reshape the current vision After you understand the current vision, you would want to expand the vision by positioning additional capabilities (differentiating ones) outside of the current list of requirements With the introduction of new capabilities, hopefully we have earned the right to explore the customer’s situation and begin to demonstrate value by exploring how they do business today without the new capabilities. This happens in Boxes R1 and R2. We ask “drill down” questions to determine the value that the additional capabilities might deliver. The Pain Sheet® is again used in the control row After we diagnosed “how they do it today”, we’d confirm the total cost in R3 and segue to getting pain admitted by asking something akin to “What is the effect on you and your business of doing it this way?” Once pain was prioritized, the seller would explore the impact column as we did in vision creation We conclude the conversation by confirming the value capabilities needed. The goal is that the expanded capabilities and potential value is compelling enough to move us into Column A Transition: “The Pain Sheet®, although used in a different sequence, is still relevant in vision reengineering...” “So, the way you do it today is… Is that correct?” “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?” “”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)?” Confirming REENGINEERED BUYING VISION $ © Solution Selling, Inc. • 2007

Confirming the Reengineered Vision
BUYING VISION $ Reengineered Vision Summarize / Confirm New Value $ C2 I2 R2 C3 I3 R3 Diagnose Reasons Visualize Capabilities Explore Impact Open Control Confirming PAIN $ BUYING VISION $ 1 6 3 2 7 4 9 8 5 CURRENT VISION C1 I1 R1 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?” Purpose: To prompt the seller with dialogue that can help encourage the buyer to embrace the potential new vision and to signify to the seller whether the vision has been truly reengineered or not. Key Instructor Notes: Coming out of the 9 Block Model, the seller asks something like, “Is it possible without these additional capabilities you may not (verbalize goal)?” If the seller has done a thorough job of “drilling down”, they may want to incorporate the value uncovered into that confirming questions. (E.g. “Is it possible without these two additional capabilities, that you felt were worth an additional $X a year, that you may not fully address your critical business issue?”) After having that dialogue with the buyer, the seller would attempt to bias the evaluation by positioning a question like, “Will you ask everyone else to prove these additional capabilities as well?” Again, If the seller has done a thorough job of “drilling down”, and establishing value for the differentiating capabilities, the buyer should want to have the two capabilities added to the list of requirements that everyone (all vendors) must address Then the seller would move to Step 5 (Strategic Alignment Prompter) agree to explore forward. You’ll notice that in the reengineering scenario, option 2 is suggested as the only approach because it describes “confidence” and “an eagerness to move forward”. Option I (shown during Vision Creation) implies the need for more time to “consult with resources”. Most likely, in a reengineering scenario, the seller has little time to react to the current list of requirements Ask “What will the buyer do after the meeting concludes? Go back to Column A and ask them if they can provide the new capabilities? That is likely, so what might Column A say or do as a result?” They might be able to match the new vision and still win the business (that’s why reengineering is difficult) They might be able to match the new vision but have lost confidence of the buyer for not introducing the additional capabilities and issues in the first place (giving you a chance to still win) Column A could react negatively to the new buying vision (“why would you want to do that?”) which hopefully the buyer has ownership for now. If this is the case, this negative reaction could backfire on Column A and help your chances of winning Transition: “We keep talking about differentiation. Let’s look at the concept in more detail...” 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). © Solution Selling, Inc. • 2007

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®) Purpose: To allow the participants a chance to practice role playing vision reengineering. Key Instructor Notes: Read the bulleted items Show the supporting materials that are on the pages that follow Have the participants share their experiences and questions after the role play Conduct a demonstration of the 9 Block Vision Processing Model® for Vision Reengineering prior to having the participants role play it. This sets a model for how the role play should be conducted Provide a short and simple demonstration Ask for feedback while positioning some of the caveats - “Other than the role play being intentionally short, somewhat scripted and maybe a bit of a one-sided conversation for the seller, what things did you see taking place in that demo?” Transition: “This role play will take about ___ minutes. Upon its completion we will have a short debrief to talk about it.” © Solution Selling, Inc. • 2007

9 Block Vision Processing Model® - Vision Reengineering
PAIN $ CURRENT VISION “What is the effect on you and your business of doing it this way?” Diagnose Reasons Explore Impact Visualize Capabilities R1 3 I1 6 C1 1 “How do you do it today without this capability?” (“It” = perform the function they want to improve) “Besides yourself, who in your organization is impacted by this (pain) and how are they impacted?” “How do you see yourself using this (repeat initial vision)?” (Clarify initial vision in when, who, what format) Open R2 4 I2 7 C2 2 “Today…? Reason A?… Reason B?... Reason C?... #?, %?, $? “Is this (pain) causing… (another pain)?” “If so, would (other job title) also be concerned?” #?, %?, $? “Are you also looking for a way to…?” Would it help if you also had a way to …?” Capability Vision?... Control R3 5 I3 8 C3 9 Purpose: To provide a worksheet or example to support the exercise. Key Instructor Notes: None Transition: None “So, the way you do it today is… Is that correct?” “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?” “”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)?” Confirming REENGINEERED BUYING VISION $ © Solution Selling, Inc. • 2007

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? 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? Inventory has reached safety stock level 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 long does it take to place each order? Ordering multiple categories of items 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? © Solution Selling, Inc. • 2007

Request for Proposal (RFP): Response Tactics
Your Senior Executives must be in alignment with this strategy Call the RFP sender, offer response to RFP in exchange for “three interviews” (quid pro quo). If granted, go to #4 * If denied, send a letter stating that it will be impossible to respond to the RFP without the interviews When called again, offer to respond to the RFP in exchange for three one-hour interviews 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 Respond to the RFP as agreed 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 Highlight the key capabilities in the proposal that match the buying visions of the power people on the buying committee 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 Purpose: To provide tactics that a seller might employee when being asked to respond to a request for proposal. Key Instructor Notes: Know the RFP practices and philosophies of the audience. These concepts can be challenging for some organizations. Thus the text: Your Senior Executives must be in alignment with this strategy Read Bullet 1: … Whether you are looking for 3 interviews or 2, etc. the point is we need a chance to meet the key players driving the project or we’ll have no chance at influencing the RFP requirements Read Bullet 2: … We’ll look at an example of that letter in a moment Read Bullet 3: … If they need you to fill a column, then use that to your advantage. Maintain the “quid pro quo” of only responding to the RFP once the interviews are granted Read Bullet 4: … Conduct the interview in the same fashion that you would for vision processing Read Bullet 5: … I think if they’ve held their end of the ‘quid pro quo’ (even if you think you can’t win) that you have a responsibility to respond to the RFP Read Bullet 6: … This attempts to highlight the differentiating capabilities that you established during the interviews / vision processing on the front page of the proposal Read Bullet 7: … This attempts to make the additional capabilities that you established during the interviews stand out as imperative to the list of requirements Read Bullet 8: … This attempts to highlight the differentiating capabilities that you established during the interviews / vision processing on the front page of the proposal Footnote: … Who responds to RFPs in the government sector? It is difficult to reengineer these, that’s why we suggest you attempt to influence the requirements during the RFI (Information) stage Be familiar with any legal issues as it pertains to the request for and conduct during a Bidder’s Conference. They are an opportunity for vendors to clarify anything concerning the RFP. Request the bidder’s conference, have a “team” there to break up the number of reengineering questions being asked of the committee. Attempt to position differentiating capabilities that would be important to those driving the RFP (even if the LOB players are not present). Make a team decision to respond or disengage. If you do engage, provide similar follow up documentation to the control letters Transition: “Samples of the RFP Initial Response Letter and the RFP Executive Summary follow…” © Solution Selling, Inc. • 2007

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 Purpose: To provide examples of documentation that can help the seller accomplish the steps of the RFP strategy suggested in this module. Key Instructor Notes: Read or have a participant read the content of the letter aloud Provide commentary at stopping portions of the letter as it is being read (as suggested below) Dear 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. (This is a quid pro quo) In the meantime, I have enclosed some detailed information on our products and services. (This implies that they can find the information they are seeking from an RFP by reading the marketing literature, if they want us to fill a column – we aren’t going to put much effort forth). If you have any further questions, don’t hesitate to call. Sincerely, Salesperson You would determined the job titles that you want to interview after evaluating the scope of the RFP Key Comment:  Customization  – This letter can be customized for client-specific examples Transition: “xxx.” * These job titles are determined after evaluating the scope of the RFP © Solution Selling, Inc. • 2007

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 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 Purpose: To provide examples of documentation that can help the seller accomplish the steps of the RFP strategy suggested in this module. Key Instructor Notes: Read or have a participant read the content of the Executive Summary aloud Provide commentary at stopping portions of the it as it is being read (as suggested below) Dear 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. (Here we are including the four of our strongest capabilities that we were able to establish as important to the executives during the vision processing conversation.) 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. (Here we are including the three differentiating capabilities that we were able to establish as important to the executives during the vision processing conversation.) 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. (Power Sponsor)” Key Comment:  Customization  – This summary can be customized for client-specific examples Transition: “Now, that we’ve looked extensively at addressing both latent / pain opportunities and vision / active opportunities we will pick back up where we left off within the execution of the sales process where we are near closure...” © Solution Selling, Inc. • 2007

Differentiation Grid U N I Q E S 10 CUSTOMER VALUE

Tactics for Addressing Competition / Incumbents: Example for TDM
Key Vulnerabilities Response Account management team How does your current vendor manage the account relationship? How often do you see your representative? What do you like about them? If you could change 3 things about the current relationship, what would it be? 2. Lack of technology resources How do they provide for your technology needs? How do you receive support on technology? Do you have a dedicated account based resource for technology? Staples Key Vulnerabilities Response Inconsistent pricing structure How long have you been with them? What is their pricing philosophy? How does it affect your budgeting process? Have you audited the pricing? Have you found it consistent? 2. Expertise How do they support your current business initiatives? You don’t want to talk bad about the competition, but you do need to know their weaknesses. This is a concept not a tool that is being provided. Helps you to plan before you go against the competition Regional Provider

TDM (do not teach Vision Reengineering or RFP strategy) Identify top 2 competitors and their key vulnerabilities Identify Office Depot differentiators that can address vulnerabilities and come up with questions to ask the customer Major/Global/Public Conduct Vision Reengineering Role Play Instructor will conduct group differentiation exercise

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 Engage Diagnose 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 Power Sponsor Letter/ 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

IF YOU ARE NOT READY TO WALK, YOU ARE NOT READY TO SELL
Basic Principles BASIC PRINCIPLE IF YOU ARE NOT READY TO WALK, YOU ARE NOT READY TO SELL DON’T CLOSE BEFORE IT IS CLOSEABLE BASIC PRINCIPLE Purpose: To position two of the key basic principles within Solution Selling®. Key Instructor Notes: If You are Not Ready to Walk, You are Not Ready to Sell If you are not ready to walk away from an opportunity, then you are likely not in a position to effectively reach final agreement either. The principle here is simple, but the ability to adhere to it is not. If you don’t know the value that your solution provides to the prospective buyer, you are at a distinct disadvantage. Why? Because you have little if any bargaining power It is much easier to “walk” when you have a full pipeline and know the quantifiable value your capabilities can deliver after implementation Don’t Close Before it is Closeable Consider the term “closing” as it relates to the end of a buying process, it is the natural evolution of the process. In other words, you shouldn’t really have to close. You should create an environment and an opportunity where the prospective buyer wants to start doing business with you. When we try to close prematurely, we often are out of alignment with the buyer. If you can think of a reason why your opportunity is not ready to close, you can rest assured that the buyer has too. One of the definitions of “closing” that I mentioned previously is the “natural evolution of the process.” I encourage salespeople to remind their managers of this definition if they are ever pressured to engage in the “close early and often” mentality. Rather, they should explain where they are in the buyer’s process, which should illustrate why the sale is not yet closeable. Remember, buyers have a buying process they must go through in order to reach closure. Your job is to help the buyer through their process Transition: “Just as you are sitting here in sales training, buyers go through buyer training. Here is a glimpse at the lessons they learn...” © Solution Selling, Inc. • 2007

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 Purpose: To provide insight into tactics that buyers use leading up to and during final negotiations. Key Instructor Notes: Consider many alternatives – Buyers usually conduct their buying process by validating what they want to do with a preferred vendor. They need “column fodder” so they will look at many alternatives Know position in advance – Buyers prepare ahead of time determining what they want to accomplish in the final negotiation. As sellers, how often do we prepare or know our positions in advance? Assign sponsor to each alternative – Buyers will pair up an internal “sponsor” to work with one particular vendor. Often the job of that sponsor is to keep the vendor feeling good about their chances of winning and keep them in the buying process as long as they are needed E.g. John, you work with Vendor C… Mary, work with Vendor B… and Bill, work with Vendor A…” Never let you know you are winning – The sponsor doesn’t let their vendor know they are winning. They don’t want them to maintain their pricing when it comes time to negotiate Never let you know you are losing – The sponsor doesn’t let their vendor know they are losing. They don’t want them to disengage so they can be used later on for price negotiation Price negotiate in reverse preference order – Buyers will start with the vendor of least choice and negotiate in reverse preference order. i.e. They would first work with Vendor D, negotiate with them to get the best price, then take that quote and share it with Vendor C in the hopes that Vendor C will come down on their price. They continue this process until they negotiate with the desired vendor, Vendor A Take it away from you at least once – Buyers will often make you think you’ve lost the business after they’ve awarded it to see if you will drop on price or make other concessions to regain the business E.g. You’ve been great to work with thus far so I’m embarrassed to admit we’ve had budget cuts and I can no longer spend the amount we agreed on, maybe next quarter we can revisit this topic Are aware of your deadlines – Buyers will wait until the end of the quarter… the end of the year to sign deals because they know they can usually get a discount then. They even will resort to tactics such as keeping you waiting in their office knowing that you have a flight to catch and will negotiate in haste to make the flight. They may even choose to negotiate on Friday afternoon for the same reasons. Often our buyers are aware of personal gains tied to reaching quotas because we tell them Will take what you put on the table – Buyers are attuned to listening for and latching on to anything you suggest / hint at in the way of a concession. They may not literally “take” it but they will expect to get it. E.g. If you offer end of the quarter pricing but the date passes, they will still expect the same pricing Transition: “If these are the tactics buyers use, then you should have some guidelines to follow to help combat these approaches...” © Solution Selling, Inc. • 2007

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 Purpose: To provide key considerations when preparing for and conducting negotiations with buyers. Key Instructor Notes: Knowledge is power - The more you know about your customer, how they like to buy and negotiate, what concessions are important to them, etc. – the more likely you will be successful in negotiating Plan before you begin - Buyers prepare ahead of time to determine what they want to accomplish in the negotiation, if you don’t prepare (as well) you can find the negotiation to be daunting experience Is it closeable during this meeting? - We’ll show you a short checklist of items that should be accomplished prior to closing Know what you will accept - In your preparation, create a “get-give” list that details the things you would like to get from the buyer (high value to you but low cost to the buyer) Know what you are willing to give - In your preparation of the “get-give” list, anticipate the things the buyer would like to get from you (high value to the customer but low cost to you and your organization) Seek to understand the true interests… – Often the buyer can have an underlying reason for asking for a concession. By identifying this true interest, the seller may be able to address it without having to make major concessions. E.g. The buyer asks for a discount but is really most concerned about implementation. In that instance, additional resources may be more valuable than a discount to them Give reluctantly and slowly (if necessary) - If you have to give at all, don’t just provide a concession but let the buyer visualize that giving is not easy for you to do. Resisting “squeezes” is one way to do this… Withstand up to three “squeezes” by the buyer - These “squeezes” consist of logic-based reasons why you shouldn’t have to make concessions Don’t give without getting - If you do prepare to give a concession, make sure you get something first. This is the quickest way to let the buyer know you value your resources and the deal already offered Be willing to walk away today - Going back to the basic principle, you have to believe you bring enough value to the buyer (that the situation is a good deal) that you are willing to walk than give anymore Seller must overcome emotional hurdle first - The emotional hurdle that the seller must overcome is the recognition that they might have to walk from the opportunity, forsaking the work that led up to this point Buyer must believe he/she is getting the best price - This is the buyer’s emotional hurdle. Let’s help them believe they are getting the best price… or value… early on Use a mutual win approach - Both the buyer and the seller should have the goal of doing future business together, a one sided win does not help for future relations If less than 100% of quota, do not negotiate alone - Sometimes sellers will give a way too much in order to get the revenue needed to make quota. It may be useful to take a manager along as a safety net Transition: “On the next page is a Negotiating Worksheet. It helps prepare for final negotiations...” © Solution Selling, Inc. • 2007

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?” Purpose: To provide an example of a job aid that can help a seller prepare prior to negotiations with the customer. Key Instructor Notes: This Negotiation Worksheet serves to address several of the key considerations suggested on the prior pages One question posed on the prior page was “Is it closeable during this meeting?” - As you’ll notice at the top of the worksheet, we have several key elements that must be completed if we are truly ready to close the opportunity One item on the prior page suggested that a seller “Give reluctantly and slowly (if necessary)” - You’ll notice in the middle of the worksheet that we have prepared logical reason why we shouldn’t have to make concessions. This is how one withstands “squeezes” by the buyer. This doesn’t mean that the buyer won’t continue to press for concessions but it sends a signal to the buyer that giving is not easy for you to do Another item on the prior page suggested that a seller “Doesn’t give without getting” – If you do prepare to give a concession, ask for something in return. The bottom portion of the Negotiating Worksheet provides the prompting text for the “give-get” The instructor may conduct a “quasi-role play” with one of the participants or another member of the instruction team to demonstrate how the worksheet is used Ask “How were we able to develop the logic for these stands?” The Pain and Value Stand are results from the vision processing conversation(s) had. The Value Stand also may be a result of the agreed upon Value Analysis The Plan Stand is a result of having an agreed upon Evaluation Plan Key Comment:  Customization  – This Negotiating Worksheet should be customized for client-specific examples Transition: “The stands on this example are not the only ones you could develop...” © Solution Selling, Inc. • 2007

Projected customer priority
Get-Give List Your priority GET Value GIVE Projected customer priority   1 2 3 4 5 NOT NEGOTIABLE Purpose: To show another valuable input (job aid) into the Negotiating Worksheet. Key Instructor Notes: The “get column” helps you think through “what you will accept”. Remember we said that in your preparation, create a list that details the things you would like to get from the buyer. We said they should be of high value to you but low cost to the buyer The “give column” helps you think through “what you are willing to give”. Remember we said that in your preparation, anticipate the things you think the buyer would like to get from you - that you may be willing to provide. We said they should be of high value to the customer but low cost to you and your organization The “no way” or “non negotiable” items are ones that you will not give under any condition. The demand to get these by the buyer may cause you to walk When applicable, attempt to record quantifiable value for the “gets” and “gives”. This helps associate value with the “gives” and can provide the seller with metrics to play back to the buyer. E.g. “These additional training that I am offering, we usually charge $x for it.” This example may be customized for clients but is not done so here due to the straight-forward nature of it Transition: “Once we’ve finished negotiating, we should hope to have terms and conditions agreed upon… we may even be in a position to have contracts signed. Both of which are verifiable outcomes of the sales process…” © Solution Selling, Inc. • 2007

Quid Pro Quo in Propose and Close

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 Engage Diagnose Propose and Close Implement Fulfill 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 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/ Power Sponsor Letter/ Evaluation Plan Transition plan Success Criteria Negotiating Worksheet Get-Give List Resolving Customer Concerns (PSS ® Skill Guide Card) Implementation Plan Reference Stories Verifiable Outcomes Opportunity Created in Sales Online Gain agreement to Evaluation Plan Signed Contract First orders placed Yield Probability 0% 25% 75% 100% Measure success criteria

Success Criteria: Example Results After 6 Months
Baseline Q1 Q2 Q3 Q4 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 225 200 Inventory value (1 month extra per location) 2 $68K / month $50K / month $40K / month CBS spend per month 1,3 $70K / month $60K / month VP Facilities Office Manager Procurement © Solution Selling, Inc. • 2007

REVIEW COACHING MANUAL

Office Depot Sales Process Managing The Sales Business
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 Engage Diagnose Propose and Close Implement Fulfill 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 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/ Power Sponsor Letter/ Evaluation Plan Transition plan Success Criteria Negotiating Worksheet Get-Give List Resolving Customer Concerns (PSS ® Skill Guide Card) Implementation Plan Reference Stories Yield Percentages 25% 75% 100%

The Sales Online Sales Cycle is Supported Within the New Sales Process
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 Engage Diagnose Propose and Close Implement Fulfill 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 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/ Power Sponsor Letter/ Evaluation Plan Transition plan Success Criteria Negotiating Worksheet Get-Give List Resolving Customer Concerns (PSS ® Skill Guide Card) Implementation Plan Reference Stories Yield Percentages 25% 75% 100% Prospect Opportunity Customer Lead The new process consists of five steps – beginning with a Plan and Engage step and ending with a Fulfill step. The new sales process is aligns with the way BSD customers like to buy. Within each step, we see various activities that could be performed within the step. Not all activities have to be performed and the activities will differ for TDM sellers versus Global/Major/Public sellers. Each step has a verifiable outcome which – in general – is a customer facing document or event that tells the rep that it is time to move from one step to another. And there are a variety of tools that exist to help reps execute through the sales process. Some of these tools – like contact strategy (Plan Step) and Bid Builder (Propose And Close Step) exist today. Others are Solution Selling tools that will be introduced later this year. And finally, there are yield probabilities that have been established for each step. As you can see, the chance of closing the sale increases as we move from one step to the next. This sales process is new and will not be rolled out until the 3rd and 4th quarter of this year. Some of you may have been involved in helping develop or validate this process with a company known as Sales Performance International or SPI. They are the learning partner BDS has chosen to help us develop the new sales process and new Solution Selling sales tools. The Sales Online Sales Cycle maps closely to the new sales process. (Use animations) Prospect and Lead activities are performed during the Plan and Engage step of the sales process. (Use animation) Opportunity activities are performed in the Diagnose, Propose and Close, and Implement steps of the sales process. (Use animation) And Customer activities are performed during the Fulfill step in the sales process.

© Solution Selling, Inc. • 2009
Course Objectives Help Managers: Build more predictable and productive pipeline Apply consistent pipeline grading habits Anticipate and minimize shortfalls Enable seller success Identify skill problems Apply focused coaching for action Determine accurate status of opportunities Increase manager productivity Manage by exception Leverage resources Simplify internal communications Improve effectiveness sales-sales manager interactions Company Team Individual Purpose: To review the course objectives Key Instructor Notes: Review the objectives Build a more predictable and productive pipeline Enable seller success Increase manager productivity Our time is precious as a manager. We have to learn to manage by exception Make sure when you meet with a seller, the objectives are precise. The coaching model helps with that. Focus on improving the effectiveness of the sales – sales manager interaction. The objectives of Sales Management and Coaching are straightforward, business driven Objectives are driven by the job of the sales manager -- getting the “best” out of people to deliver high margin revenue to the company Transition: “Let’s take a look at the agenda” © Solution Selling, Inc. • 2009

© Solution Selling, Inc. • 2009
Course Agenda Discuss Key Management Roles and Activities that support a sales process Pipeline Management Standards Manage to Verifiable Outcomes Perform Opportunity Analysis and Pipeline Review Determine Gap by Sales Unit and by Seller Opportunity Coaching Use Strength of Sale Check Conduct Opportunity Coaching Review Stuck Opportunity Reports Personnel Development Identify Skill Gaps and Conduct Individual Coaching Personalize approach to Development Planning Purpose: Share the flow of the workshop Key Instructor Notes: Overview the key roles and activities managers play in support of the sales process. The program is then divided into three main areas: Pipeline Management Standards – define the standards for pipeline management so that accuracy is established and clarity is brought to the way key items are measured and tracked. Opportunity Coaching – Provide tools and approaches for quickly and succinctly coaching opportunities for maximum personnel effectiveness Personnel Development – Provide tools, techniques and analysis approaches that make it easier to support sellers as they develop their own personal skill sets Review each module and the sub-module at a high level. Transition: What are some of the management difficulties you are dealing with? Facilitate a group discussion and flipchart session around the management difficulties you encounter. © Solution Selling, Inc. • 2009 155

Sales Management Focus Areas – The Key Metrics
Overall revenue production Reasonable margins Pipeline metrics Revenue Forecast accuracy Sales Process / CRM adoption and usage Eliminate surprises Predictability Time utilization Resource utilization Sales pursuit costs Cost of Sales Purpose: To categorize key elements of sales management into four areas Key Instructor Notes: Facilitation: Review the bullets and ASK – if these are typical and which are the most important to them. Revenue – Typically Number one – they are paid to generate revenue. They have a fiduciary responsibility if they are in a public company. It is our job to drive revenue in a sustainable fashion. Predictability – Back to fiduciary responsibility. We are legally bound to speak factually when we produce forecasts. Forecast accuracy is key. We will touch the subject of forecast but we don’t cover it fully in this course. Some fundamental underpinning are: adoption of a sales process, and CRM (or a method to track opportunities in the pipeline. Predictability is (or should be!) our Friend! – it should help us! Not meant to penalize ! Eliminate surprises Cost of Sales – Let’s make sure that everyone is spending their time wisely. There are resources that need to be brought to bear. If I don’t use those resources wisely, I will jack up the cost of sales. Are you tired yet? – Most sales managers never get to the last area, because they are worn out – yet in terms of effective leverage, seller development may be the most important area of them all. Seller Development – These are key measures. Are all of your sellers making their quota? If not why? How often are sellers leaving? How fast does it take to new hires up to speed or to ramp up? Transition: These are really important focus areas. For a moment, let’s look at some core philosophies of coaching and leadership. % of quota attainment by seller Seller turnover ratio Average length of ramp-up time Seller Development © Solution Selling, Inc. • 2009 156

Sales Management and Coaching®
Competency Focus Areas for This Course Planning & Execution Management Coaching & Development Leadership Pipeline Analysis Communication Illustrative Overall Sales Management Competency Model Budgeting Planning Reporting Resource Management Performance Management Sales Execution Purpose: To set the boundaries of the course focus – what it covers and what it does NOT. Key Instructor Notes: Facilitation: Review the Competency focus areas for this course. This is directed towards the premise that people are behaving in the general context of a Solution Selling-like sales process. Sales Managers must pay attention and focus on all of the areas on the left. This course is focused on supporting and reinforcing SS® sales execution or execution in the environment of a similarly defined process. The chief manager competencies covered in this course include: Communication: How to communicate with precision and clarity. Leadership: How to lead by example and ensure people are performing to expectations. Pipeline Analysis: What to look for and how to quickly address issues Coaching and Development: How to coach in a way that fosters individual and team development. Planning and Execution Management: All about execution and follow-through. Transition: Let’s talk about the important role sales managers play to an organization. © Solution Selling, Inc. • 2009 157

Sales Management Either Enables or Disables the Enterprise
Corporate Sales Executives Sales Managers Salespeople Information Sales Managers Play a Critical Role for How Salespeople Are Connected to Sales Performance Goals, Investment and Resources Sales Process Purpose: To describe the critical role of sales management Key Instructor Notes: Facilitation: - THIS SLIDE ANIMATES TO EMPHASIZE KEY POINTS Organizationally, a hierarchy exists from top corporate officers to sales executives to sales mangers and to the front line sales force A-1 At the corporate level, strategic decisions are made, goals are set, investments and resources are allocated. These are communicated downward in the organization. A-2 As business is transacted (i.e. sales projects are identified, launched progressed and closed, information is collected and fed UP THROUGH the organization – through the hierarchy. A-3 organizations will develop a sales process with definitions and stages which are backed up by A-4 a sales method – Solution Selling is an example of a sales method A-5 A Customer Relationship Management (CRM) system then may be effectively employed to provide the basis for analytical views of sales opportunities and the relationship to revenue production. The sales manager becomes the “methods integrator” amongst these three entities. A-7 Sales managers then play the critical roles of interpreter, coach, business person, resource manager etc. Their job is one of critical balance and communication – upwards, downwards and outbound to the ultimate customer. They are the critical link in connecting sale4speople to customers to ultimate performance. Transition: “in terms of communications – the sales manager often has an additional burden of bridging the communications gap which may exist between sales management and sales executives or other senior officers of an organization. CRM Sales Method © Solution Selling, Inc. • 2009 158

Sales Managers Provide an Ongoing Reality Check
Sales Executive CRM Reports Isolation Sales Manager Purpose: To describe the communications GAPS which may exist in an organization and the role of sales management in bridging those GAPS Key Instructor Notes: Facilitation: This slide animates to emphasize certain points A-1 Because of the hierarchy of many sales organizations, A-2 There may be a chasm of isolation between sales executives and “the field” – a “line of isolation”. A-3 This often extends to the customer as well , However, A-4 tough ongoing interactions and activities of the sales team members with the customer additional information and perspective is gained – the “Customer Point of View. The customer point of view then becomes “privileged” information between the seller and the key customer contacts . They both know what is going on A-5 Through interactions and reports between the sales manager and the seller, the customer point of view becomes an asset of the selling organization – key information necessary for running the sales unit. At this point, senior sales management and other key executives are still suffering from information “under load” A-6 Attempting to create an information portal between the “field (customer, seller and sales manager) a reporting mechanism is installed – a CRM system. A-7 Sales Managers and Sellers communicate with the CRM system and provide up-to-date information about the customer, opportunities, plans resource requirements etc. A-8 Sales Executives are enabled to have interactions with field oriented information through CRM reports. If the CRM systems reflects realistic, accurate date, then the isolation is reduced and senior management can go about their tasks in an informed manner and not have to continually inquire and interfere with field sales. The first place executives should go for information is their reporting system (CRM); however, for this to work, properly the information in the system must be accurate and up-to-date. This is a major purpose of CRM – to accurately reflect current business – to foster good decisions by senior management. A-9 First line sales managers have a responsibility to keep the communication lines open by ensuring accuracy of information and enabling reality. Management by exception now becomes a reality in itself, and interactions with senior sales executives are for clarification purposes. A-10 – a chief vehicle for this management by exception model is the Key Cadence Event. A Good deal of this information is collected through cadence events –that is where information is shared and validated. Sales manager’s job to play the information and resource intermediary. Transition: “Let’s take a closer look at the types of cadence events” Customer Seller A Snapshot of Reality is Provided at Key Cadence Events © Solution Selling, Inc. • 2009

Cadence Calendar Summary View – Example
Q1 Q2 Q3 Q4 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Territory Planning Q A Account Plan Development Customer Account Review Pipeline Reviews N M B Forecast Call Opportunity Reviews Purpose: To show an example of a cadence calendar – the events and the expected timing of those events Key Instructor Notes: This is an example. Territory Planning – identifying business potential and allocating resources to the territory – best to do this at the end of the fiscal year in preparation for the next year. Account Planning – Identifying business potential, developing relevant strategies, identifying resources – the same cadence as the territory – however more focused. Customer Account Review – This is normally a formal session in-person on a quarterly or semi-annual basis – to check progress on plans and revalidate assumptions. Forecast Call – Normally, every two weeks – focused on revenue commitments. Pipeline Review – Purpose is to check the health of the pipeline, to uncover any issues which may need escalation. When you first start, you may want to do this as needed. Once you develop a habit then it can be done monthly. Opportunity Reviews – Purposes are to (1) validate the status of opportunities, (2) review quality of execution, (3) monitor for sales skill issues. This happens on a as needed basis. Higher frequencies are important early while you establish the right habits. This course take a look and focuses on pipeline and opportunity reviews Transition: Let’s talk about the key fundamentals you will use throughout this course. Key: A=Annual; Q=Quarterly; M=Monthly; B=Bi-weekly; N = As Needed; W = Weekly © Solution Selling, Inc. • 2009 160

Structure of Sales Management Fundamentals Course
Topic Areas Pipeline Focus Key Sales-Facing Interaction Tools / Reports Pipeline Management Standards Quality Volume Pipeline Review Opportunity Review Checklist PPVVC Questions Pipeline Yield Report Pipeline Analysis Worksheet Opportunity Coaching Velocity Opportunity Review Strength of Sale Check Stuck Opportunity Report GRAF Coaching Model Personnel Development History and Patterns All Coaching Prompters Purpose: To review key elements of the program Key Instructor Notes: Facilitation: For each topical area, there will be three sets of discussion points: The pipeline view or focus – using the pipelines and various pipeline reports as a source of information for management purposes The key sales-to-manager interactions – which events will be structured to achieve the purpose of the focus Tools / reports – Which management tools and reports might be used to achieve the focus during the sales facing interactions Pipeline Management Standards - Quality and Volume. This focuses on the “health of the pipeline from the point of view – is there enough? And is it of sufficient quality to make goals? You will learn how to do a pipeline review using key tools. This will assist in establishing the right grading consistency for quality and then ensure that you have the right level of volume. (Recall the need for accurate data!) Opportunity Coaching – Velocity (Speed) This is focused on making sure that the “herd” of group of opportunities is moving at expected rates. In addition, alignment with the prospective buyer must be checked and maintained. Personnel Development – History and Patterns This focuses on potential skills / competencies issues an individual may have encountered. By identifying these at the individual level, remedial action may be taken. Transition: Now let’s take a look at management flow model which depicts the various activities and interactions between manager and seller. © Solution Selling, Inc. • 2009 161

Sales Management Flow Chart “Managing the Sales Business”
D I A G N O S E Develop / Review Plan Analyze Pipeline Purpose: To introduce the sales management flow model Key Instructor Notes: Facilitation Trace the flow around the closed-loop model and briefly explain what should happen at each activity box Facilitation Question (FQ): “Seems a bit complex?” - In reality once put into practice, it actually frees up time. Why? – because by using some dialogue templates (which will be introduced) the dialogues stay on task and lessen the chance of wandering around the issues. Notice the flow has an upper and lower segments – namely DIAGNOSE and COACH The diagnose portion helps the manager and seller to come to rapid joint conclusion of issues. Using dialogue prompters and keeping on task, this portion can be performed quickly. The coaching portion then becomes the remediation if an issue is uncovered during the diagnosis steps. Notice the dotted line and the “Management by Exception” phrase. What does this mean? Once the flow and the dialogues are adopted (by both parties) then, if in the judgment of the manager, things are “going well” no action is required If things are judged to NOT to be going well, then the manager can take immediate remedial action on the specific issues. (FQ) “How might this approach help? Listen for reaction. (FQ) “Where would YOU start in implementing this flow process? Most will say “Analyze Pipeline” – In reality, this should NOT be relied upon until the data is cleaned up (remind of the points in the “line of isolation slide) Quality of decisions is directly related to quality of the date eliciting the decision. Start with Analyze Opportunities – this will help clean up the data. This course will cover concepts on pipeline and opportunity analysis with the purpose of identifying what’s going well, what is not going well, what skill or performance deficiencies may exist and coaching techniques to help address what is not going well in opportunities and in the pipeline We will cover at a high level the key CRM systems and reports that should be used as you manage the sales business. Key definitions: Develop / review PLAN – this is the process of account level (or opportunity) planning done periodically Analyze Pipeline – this is the set of calculations used in determining the health of the pipeline and the business outlook – secondarily, stuck deals are flagged Identify skill issue – this is a dialogue technique used in determining if a seller may have a skill problem Analyze Plan / Opportunity – this is a structured approach to see if plan are up to standard or if opportunity information is up to standard (we will discuss the approach to opportunity standards – plan review is a separate topic. Coach skill issue and coach plan / opportunity issue – these are the remedial leadership activities used when issues of either kind are uncovered. Follow-up and Update CRM – any dialogue which results in actions should always be check-pointed to ensure successful completion of the action Transition: Let’s begin the core content of the workshop….. Identify Skill Issue Analyze Plan / Opportunity Management by exception Update CRM C O A C H Coach Skill Issue Coach Plan / Opportunity Follow-up © Solution Selling, Inc. • 2009 162

Course Agenda Discuss Key Management Roles and Activities that support a sales process Pipeline Management Standards Manage to Verifiable Outcomes Perform Opportunity Analysis and Pipeline Review Determine Gap to Plan Overall and by Seller Opportunity Coaching Use Strength of Sale Check Conduct Opportunity Coaching Review Stuck Opportunity Reports Personnel Development Identify Skill Gaps and Conduct Individual Coaching Personalize approach to Development Planning Purpose: Place mark progress through the workshop agenda Instructor Notes (should have been introduced earlier in the workshop): Next section and module to be covered Pipeline Management Standards – Manage to Verifiable Outcomes Transition: Let’s start by examining how to manage to verifiable outcomes. 163

Office Depot Sales Process Elements
Buying Process Define problems and opportunities Determine needs / requirements Select solution, evaluate risk, & finalize contracts Resolve issues & implement Evaluate success Sales Stage Plan and Engage Diagnose Propose and Close Implement Fulfill Verifiable Outcomes Opportunity Created in Sales Online Gain agreement with Power Sponsor to next steps Signed contract / Gain verbal agreement to buy First orders placed 7-7-7 Goals Accomplished Sales Tools and Resources Key Players List Contact Strategy PSS® Pre-Call Planner Power Sponsor Letter/ Transition Plan Get-Give List Implementation Plan Reference Story Success Criteria Yield probabilities: these are the percentages that will be put in Oracle as a way to help track opportunity tracking. These are a starting point and may change over time. More important for sales management to understand their pipeline. Yield Probability 25% 75% 100% © Solution Selling, Inc. • 2007

Sales Execution Activities and Verifiable Outcomes
Pipeline Milestones Yield Sales Process Step Sales Execution Activities and Verifiable Outcomes Plan and Engage Conduct opportunity planning Conduct opportunity assessment Create interest Gain initial meeting 0% Opportunity Created In Sales Online Diagnose Get pain admitted Diagnose and document admitted pain and create or reengineer vision of Sponsor Negotiate access to power Diagnose and document 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 25% Gain agreement with Power Sponsor to next steps Propose and Close 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 or Respond to RFP or Bid Engage bid team Finalize T’s & C’s 75% Signed contract / Gain verbal agreement to buy Implement Engage implementation manager Execute implementation plan Engage IT Integration manager Test order placement and billing 100% First Orders Placed Purpose: To introduce / review the milestones and activities within each step leading to the verifiable outcome. Key Instructor Notes: Milestones are checkpoints that measure the progress of an opportunity through the sales process or pipeline or funnel. Milestones give us a “shorthand” with which to dialogue about opportunity progress and just as importantly, what has yet to be done. When we say an opportunity has attained a certain milestone, we immediately know where it is in the process. Milestones are identified by the “gates” that tie to the key verifiable outcomes shown in the table above… some companies will use different terminology to identify reaching a milestone (e.g. refer to attaining a win odd, refer to the completion of a step name, refer to a simple letter code, or maybe refer to the verifiable outcome, etc.) We can track an opportunity’s progress over time as it moves through the process and from one milestone to the next Key Comment:  Customization  – Content describing components of a client’s sales process are highly customizable Transition: Verifiable outcomes provide managers and sellers a form of evidence for inspection…This bring us to a key principle…. Former Milestone Codes and Descriptions: 0% - “PLAN step completed” formerly “Territory” often referred to as a “T” 10% - “CREATE step completed” formerly “Suspect” often referred to as a “S” 25% - “QUALIFY step completed” formerly “Qualified Sponsor” often referred to as a “D” 50% - “DEVELOP step completed” formerly “Qualified Power Sponsor” often referred to as a “C” 75% - “PROVE step completed” formerly “Decision Due” often referred to as a “B” 90% - “NEGOTIATE step completed” formerly “Pending Sale” often referred to as a “A” 100% - “CLOSE step completed” formerly called “Won” often referred to as a “W”

SALESPEOPLE WILL RESPECT WHAT THEIR MANAGERS INSPECT
Basic Principle BASIC PRINCIPLE SALESPEOPLE WILL RESPECT WHAT THEIR MANAGERS INSPECT Purpose: To introduce a key principles of the sale management methodology / philosophy Key Instructor Notes: Ask “If we think back to our time as sellers or even as our role as sales managers, what do we place as our first priority when we plan our task list?” … [have discussion]… “In most cases, it is what our manager expects us to do.” That list can be prioritized, and usually at the top are the items our manager INSPECTS. If this is true, the very best way to prove that you are serious about implementing the sales process is to: Communicate expectations that the sales process is the way we do things now Use the terminology in day-to-day dialogue Most importantly, ask to review opportunities using the process as the benchmark. Demand to inspect verifiable outcomes. Transition: “The most inspect-able part of the sales process are the verifiable outcomes. They are called verifiable because they can be validated either in writing or by documented, observed behavior. Let’s look at the most important ones…”

The Sponsor Letter within the Pipeline Milestones
Yield Sales Process Step Sales Execution Activities and Verifiable Outcomes Plan and Engage Conduct opportunity planning Conduct opportunity assessment Create interest Gain initial meeting 0% Opportunity Created In Sales Online Diagnose Get pain admitted Diagnose and document admitted pain and create or reengineer vision of Sponsor Negotiate access to power Diagnose and document 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 25% Gain agreement with Power Sponsor to next steps Propose and Close 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 or Respond to RFP or Bid Engage bid team Finalize T’s & C’s 75% Signed contract / Gain verbal agreement to buy Implement Engage implementation manager Execute implementation plan Engage IT Integration manager Test order placement and billing 100% First Orders Placed SPONSOR LETTER Dear Steve, 1 Recall Pain 2 Recall Reasons 3 State Buying Vision 4 Recall Agreement to Explore 5 Restate Bargain for Power 6 Suggest Proof / Next Step Sincerely, Bill Hart Purpose: To show an example of the relationship of a key verifiable outcome with the Milestones and in the context of the sales process and qualifying components of the Sponsor Letter Key Instructor Notes: This demonstrates the Verifiable Outcome (VO) as the final activity within a stage or step in the process This sets up the VO as the qualifier for completion of the stage or step of the process The potential sponsor letter is a very important verifiable outcomes. It is a tangible / verifiable way to: Verify progress along the milestones of the sales process – and in essence the pipeline Ensure that the seller is aligned with the customer in their buying process Assess the quality of execution of the sales process up to now This letter is quite useful in managing opportunities and should be one of the first things implemented. It may be used to: Help sellers set objectives for a call (to produce the 6 qualification components) Qualify Sponsors Diagnose seller skills and identify exceptions Coach sellers Test where the customer is in their buying cycle If you inspect a seller’s Sponsor letter, are satisfied with the quality of the Pain, Vision, Access to Power, and Proof, and are assured that the customer agrees with it, you have a solid based onto which the seller can move ahead to the next process step It is important to note the terminology on the checklist. The phrase “agreed upon” is mandatory to provide the full value of the letter in the sales process. It is not enough for the seller to have sent the letter to the potential sponsor. The potential sponsor must agree with or have altered the contents The potential sponsor becomes a bonafide sponsor if and only if they offer access to power after the proof step(s) Transition: “Another key verifiable outcomes is the Power Sponsor Letter and Evaluation Plan…”

Verifiable Outcome: Potential Sponsor e-mail: Example
Qualification Components: 1 Pain 2 Reasons 3 Buying Vision 4 Agreement to Explore 5 Bargain for Power 6 Proof / Next Step Steve (Office Manager), Thank you for your interest in Office Depot. The purpose of this 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 Purpose: To provide an example of the follow up correspondence that should be sent to the prospect upon completion of the vision processing conversation. Key Instructor Notes: Focus on the content of the letter / instead of the tone of it which is a little direct. You would certainly put your own words around this. Let’s look at the specific components The letter has six key components. The instructor should engage the participants by asking, “What is the first component of the letter?” (Answer: Pain) Note: The word “pain” is not used in the letter, it is only a “training word” What is the second component of the letter? (Answer: Reasons for the pain) “Where did we find out the reasons?” (Answer: Boxes R1 and R2 of the 9 Block Vision Processing Model®) What is the third component? (Answer: Vision - it consists of the capabilities needed to address the reasons) What is the fourth component? (Answer: Agreement to explore) What is the fifth component? Answer: The bargain for access to Power) What is the last component? (Answer: The proof step - proof should consume a minimum amount of your company’s time and resources while still satisfying the sponsor. Recall the seller is not at “power” yet The letter can also help with internal selling. i.e. its easy to forward an to the decision maker Discussion point: “As a buyer, if you received this letter, how would you perceive the seller?” Note: Some cultures will shy away from the use of documenting conversations, be aware of this especially in some Asian countries Key Comment:  Customization  – This Sponsor Letter should be customized for client-specific examples Transition: “Acceptance of the Sponsor Letter by the sponsor marks a major milestone in the sales process...” © Solution Selling, Inc. • 2007

Sales Execution Activities and Verifiable Outcomes
Power Sponsor Letter/ and Evaluation Plan within the Pipeline Milestones POWER SPONSOR LETTER Dear Jim, 1 Recall Pain 2 Recall Reasons 3 State Buying Vision 4 Include Organizational Impact 5 Recall Agreement to Explore 6 Suggest Evaluation Plan Sincerely, Bill Hart EVALUATION PLAN Yield Sales Process Step Sales Execution Activities and Verifiable Outcomes Plan and Engage Conduct opportunity planning Conduct opportunity assessment Create interest Gain initial meeting 0% Opportunity Created In Sales Online Diagnose Get pain admitted Diagnose and document admitted pain and create or reengineer vision of Sponsor Negotiate access to power Diagnose and document 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 25% Gain agreement with Power Sponsor to next steps Propose and Close 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 or Respond to RFP or Bid Engage bid team Finalize T’s & C’s 75% Signed contract / Gain verbal agreement to buy Implement Engage implementation manager Execute implementation plan Engage IT Integration manager Test order placement and billing 100% First Orders Placed Purpose: To show an additional example connection between the milestones and verifiable outcomes Key Instructor Notes: Final activity of the milestone stage or step Marks the beginning of the next stage or step in the process This is the critical juncture in a sales campaign after which selling expenses will rise dramatically (cost of proof) It is important to note the terminology on the checklist. The phrase “agreed upon or modified” is mandatory to consider the milestone attained Transition: “Now that we’ve looked at some key verifiable outcomes, let’s look at how they can be instrumental in reviewing key opportunities… …”

Verifiable Outcome: Potential Power Sponsor e-mail: Example
Qualification Components: 1 Pain 2 Reasons for the Pain 3 Buying Vision 4 Organizational Impact 5 Agreement to Explore 6 Evaluation Plan Set-up 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 Purpose: To provide an example of the follow up correspondence that should be sent to the Power Sponsor upon completion of the vision processing conversation. Key Instructor Notes: This letter / is similar to the Sponsor Letter but with a few exceptions You will notice that the Power Sponsor Letter also recalls the (1) pain, (2) reasons for pain, (3) his or her buying vision and the component, agreement to explore. Components 4 and 6 are what make it different from the Sponsor Letter Organizational Impact attempts to expand the scope of the problem (as well as list potential beneficiaries) by tying in others impacted Evaluation Plan set-up helps describe the attached plan that suggests how the buyer and seller’s organizations might process through the rest of the sell cycle Notes: Note: Some cultures will shy away from the use of documenting conversations, be aware of this especially in some Asian countries Key Comment:  Customization  – This Power Sponsor Letter should be customized for client-specific examples Transition: “You’ll find the attached (draft) Evaluation Plan on the next page…” © Solution Selling, Inc. • 2007

Draft Evaluation Plan: Example Attachment to Power Sponsor e-mail
Event Week √ Responsible Go/No Go Interview with procurement and accounting February 14 OD/Alliance Interview IT about back-end systems Interviews with end-users at other locations Summarize findings to management team * Provide CBS samples / product evaluation and conduct delivery match-ups OD Conduct demonstration of ordering platform (proof of capabilities) February 21 Gain approval of implementation plan Alliance Discuss pricing and refined value proposition Agree to success criteria Create market evaluation (Bid) February 28 Send agreements to legal Analyze competitive evaluations March 7 Present final proposal & gain agreement to move forward March 14 Gain legal approval March 21 Begin implementation March 28 Measure success criteria Ongoing * Mutual decision to proceed © Solution Selling, Inc. • 2007

Power Sponsor Letter / e-mail: Shorter Example
Jim (Finance), Thank you for meeting with me earlier today. I believe it was time well spent for both our companies. We discussed the following: (1) The primary critical issue is increasing operational costs. (2) Reasons for not increasing operational costs Spending too much time reconciling invoices Spending too much time in approval process (3) Capabilities you said you needed: When an order is entered the administrative professional could be assured that the invoice requirements have been completed so that less time is spent reconciling invoices on the back-end When a special request order is entered you had a way for the order to be automatically compared to preset rules and routed appropriately for approval so that you don’t spend too much time waiting for approvals You said if you had these capabilities, you would be able to decrease your costs. Our next steps (4) When I told you I was confident Office Depot could help, you indicated you felt so too and suggested we proceed with next steps. (5) Based on my knowledge to date, I have included a list of what the next steps might be to help you further explore Office Depot. I will call you on Thursday, to get your thoughts. Sincerely, Bill Hart Next Steps Week of Review usage list June 22 Speak with Accounts Payable about pay requirements June 22 Present and gain approval on bid June 29 Agree on implementation plan & success criteria June 29 Set-up account June 29 Conduct web-site demo & place first order June 29 or July 6 Qualification Components: 1 Pain 2 Reasons for the Pain 3 Buying Vision 4 Agreement to Explore 5 Suggested Next Steps

Opportunity Review Checklist
Check these items and outcomes below to verify status Plan and Engage Conduct opportunity planning Conduct opportunity assessment Create interest Gain initial meeting Name and title of potential Sponsor Business development approach and job aids used Appointment or call logged in calendar 0% Opportunity Created In Sales Online Diagnose Get pain admitted Diagnose and document admitted pain and create or reengineer vision of Sponsor Negotiate access to power Diagnose and document 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 Pain articulated by potential Sponsor Differentiated vision and value articulated by Sponsor Power Sponsor’s name and title Sponsor Letter/ sent and content agreed upon Pain articulated by potential Power Sponsor Differentiated vision and value articulated by Power Power Sponsor Letter/ & draft Evaluation Plan sent Evaluation Plan modified or agreed upon 25% Gain agreement with Power Sponsor to next steps Propose and Close 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 or Respond to RFP or Bid Engage bid team Finalize T’s & C’s First step accomplished (Go/No Go Step Letter) Customer approval process understood? Customer key players identified and engaged (as applicable)? Transition issues identified and addressed? Negotiating Worksheet and Get-Give List Who is negotiating? What is agreed upon? 75% Signed contract / Gain verbal agreement to buy Implement Engage implementation manager Execute implementation plan Engage IT Integration manager Test order placement and billing Implementation activities have been followed up When? Who? Status? 100% First Orders Placed Purpose: To introduce the Opportunity Review Checklist - a management job aid that extends activities of the sales process (pipeline milestones) to specific points for inspection – both at the activity level and the Verifiable outcome level. Key Instructor Notes: the columns are: Stage or Step name with associated Yield percentages Activities required to move from one milestone stage or step to the next Lists of items subject to inspection including the verifiable outcomes This checklist is a guide for the review dialogue – It is combined with the key questions just discussed. The first question is used to determine the status of the opportunity: “What is the accurate status of the opportunity – i.e. in which milestone does the opportunity lie?” Depending on the response given, the seller may be asked to verify it by “inspecting” the appropriate item in the right column. For managers that want to conduct the coding of opportunities, they can still use this as a personal tool to guide them through independent analysis. Key Facilitation Notes: For example: during a dialogue a seller may indicate the status of an opportunity to be "DEVELOP”. Upon request to see the Power Sponsor Letter and Draft Evaluation Plan (for verification). If this cannot be produced, the logical questions then leads to the last verifiable activity: and associated item of validation. In response to the question, of the last activity, the response may be: “The Power Sponsor has admitted Pain”. In which case the manager asks for his Power Sponsor’s Pain - not what the seller thinks the pain to be, but what the customer articulated in their admission of pain. If the seller cannot answer the questions with “items of proof” the progression is “up the activity list” and possibly upwards past a previous verifiable outcome. The questions progress until the seller “proves” an activity, and if appropriate, the opportunity should be regarded in the CRM The closing part of the dialogue then centers around the next “real” set of activities to be executed. Transition: “As a manager inspects the evidence, it is important to recognize some difficulties associated with writing and executing …” 173

Potential Sponsor and Power Sponsor Letters Common Problems
Not enough of them The “critical issue” is really a reason, or is not applicable for the job title The “pain” doesn’t relate to value The “pain” is stated as a goal The capabilities are stated in product terms, not as a clear vision When, Who, What, So that Not written soon after the call Missing one or more of the qualification components Customer agreement with the content is not verified Salespeople are trying to re-word the letter for an “active” opportunity Purpose: To list common difficulties associated with composing customer correspondence. Key Instructor Notes: Dialogue about the list of common problems. Which are most prevalent in your sales territories? Managers may use this as a checklist as when they inspect Sponsor and Power Sponsor Letters ( s). May practice during the workshop – in the next exercise. Transition: “Let’s apply these common problems to an exercise …”

Exercise: Review of (Potential) Power Sponsor Letter/ e-mail
Purpose: To review the attached letter and find the missing or misstated qualification components Activities: As individuals: Assume the following scenario: You are the manager of the salesperson who wrote the following letter The salesperson is requesting that one of your very busy and expensive Support Resources / Product Managers accompany him/her on the next call Review the letter and highlight the qualification components Determine what you would ask the salesperson and why Be prepared to share your thoughts with the other group Purpose: To provide an example of a poorly written Power Sponsor Letter Key Instructor Notes: Read the bulleted items Show the supporting materials that are on the pages that follow Have the participants do the exercise individually, then debrief as a group Have the participants share their experiences and questions after the exercise Allow 20 minutes for this exercise Key Facilitation Notes: Note the instruction “Determine what you would Ask the sales person and why”. This is to begin development of the habit associated with “good coaching” discipline - gaining commitment and action through questions – self-discovery…. Transition: “This exercise will take about 20 minutes. Upon its completion we will have a short debrief to talk about it.” 175

Potential Power Sponsor Letter / e-mail: Example “What is Wrong With This Letter?”
Qualification Components: 1 Pain 2 Reasons for the Pain 3 Buying Vision 4 Organizational Impact 5 Agreement to Explore 6 Evaluation Plan Set-up 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: Your primary critical issue is that you need consistent cleaning and break room supplies at all of your locations. Our understanding of the reasons you are having this critical business issue is: Every location has their own ordering process Challenging to maximize on volume discounts with multiple vendors Capabilities you said you needed: Consistent ordering process Same supplies in every location We discussed that if you had these capabilities, then you would be able to decrease your costs. Our next steps We mutually agreed to move forward with the project. I have reserved one of our Cleaning and Break Room Supplies Specialist to come and visit you next week. I will brief him on your situation, so he is prepared to discuss our products in detail. I am confident you will like what you hear and introduce us to the rest of Alliance. I will call you on Monday to discuss this further. Sincerely, Bill Hart Attachment: Draft Evaluation Plan Purpose: To provide an example of a poorly written Power Sponsor Letter Key Instructor Notes: Pain is not really a pain but rather a statement of need – as the VP Finance, Jim is NOT measured on producing a new website, rather his pain should be articulated about something on which he measured on or for which he is held responsible – i.e. “missed or eroding profits”. Not having website capabilities certainly can have impact on profits but that issue resides further down the pain chain The “capabilities” are stated as goals with little inclusion of the main components of a good capability vision statement (i.e. “when, who, what” descriptions) E.g. “a website that will support your future growth” would paint a better picture if articulated as “…you said it would help if when needing to view the status of an order, for your customers to be able to go online and access a their own, unique page that shows real time information pertaining to their orders so that customers can ensure their shipments will arrive on time.” No description of the Pain Chain™ (organizational impact) – the letter should indicate the impact of other’s pain on Power’s pain. Doing this shows the ground swell being developed for addressing the business issues on multiple levels No proper set-up of the evaluation plan. Transition: “Let’s revisit the Evaluation Plan and review key elements of it…” 176

Evaluation Plan – “The Path to Win”
Power Sponsor Sponsor Evaluation Plan Contract & Close TYPICAL SALES CYCLE Start Close Purpose: To indicate the effect an Evaluation Plan may have on the sales cycle Key Instructor Notes: The evaluation plan is critical to execution and management of the sales and buying processes. It is THE MOST IMPORTANT of the techniques in the sales process. As you can see from this time map, the evaluation plan takes up the majority of the time and activity in a typical “Solution Selling®” sell cycle. (This is for an ideal 6-month sell cycle.) Whatever the length of the sell cycle, the evaluation plan covers most of the selling and buying activities. The longer the sell cycle, the greater the percentage of time is taken by the evaluation plan usually because of the proof and approval steps necessary during this evaluation phase. What conclusions may be drawn from this dialogue? Evaluation Plans should be constructed with thought They can either accelerate or impede the progress of a deal by their construction MUST reflect the key points articulated by the Power Sponsor as required proof Transition: “Since the majority of the selling happens during the Evaluation Plan, let’s look at what a well written evaluation plan should contain …” The majority of selling activity occurs during the execution of the Evaluation Plan

Evaluation Plan Common Problems
The plan is not sent as a “Draft” plan The draft Evaluation Plan: Is sent to non-power people Does not contain events to interview all key beneficiaries before resource commitment Is not a joint plan requiring customer commitment of resources Does not include events that promote the “three sales within a sale” Operational (line-of-business), transitional, financial Does not specify key approval events such as legal / technical / administrative Has the proposal being delivered too early in the sell cycle Purpose: To list common difficulties that managers may find sellers experiencing with composing and sending evaluation plans. Key Instructor Notes: Before we put you into an exercise analyzing an Evaluation Plan, here are some of difficulties that salespeople face when developing and looking for approval on Evaluation Plans Probably the two biggest issues relate to the plans being “one-sided” and when they are produced for a Sponsor, not a Power Sponsor… Sponsors tend to want a lot more proof. The cost of sale can increase here and yet the seller would be using up the proof with someone who doesn’t have the power to buy. Worst thing you can do is to send a evaluation plan to someone that doesn’t have the power to make it happen. That means that you have to redo it with a person of power. It has to be customer facing reflect the customer point of view Transition: “Let’s apply these common problems to an exercise …”

Exercise: Review of the Evaluation Plan
Purpose: To review the attached Evaluation Plan and find the missing or misstated components Activities: As individuals: Assume the following scenario: You are the manager of a salesperson who is new to your organization This is the first chance the salesperson has had to meet with the Potential Power Sponsor The salesperson has been trained and is proud of the fact that he/she is following the company’s sales process. He/she wants you to put this opportunity into your sales forecast. Review the Evaluation Plan and highlight the areas where you have concerns Determine what questions you would ask the salesperson Be prepared to share your thoughts Purpose: To provide an example of a poorly written Draft Evaluation Plan for educational purposes Key Instructor Notes: Read the bulleted items Show the supporting materials that are on the pages that follow Have the participants do the exercise individually, then debrief as a group Have the participants share their experiences and questions after the exercise Allow 20 minutes for this exercise Transition: “This exercise will take about 20 minutes. Upon its completion we will have a short debrief to talk about it.” 179

Evaluation Plan: Attached to the Potential Power Sponsor Letter / “What is Wrong with This Plan?” EVALUATION PLAN Event Responsible Week of Go/No Go Interview with procurement and accounting OD/Alliance Feb 14 Summarize findings to top management team and agree to evaluation plan Provide CBS samples / product evaluation and conduct delivery match-ups OD Feb 21 Discuss pricing Gain approval of implementation plan Alliance Feb 28 Send agreements to legal Present proposal for approval March 7 Interview IT about back-end systems March 14 * Mutual decision to proceed Purpose: To provide an example of a poorly written Draft Evaluation Plan Key Instructor Notes: Issues with the Draft Evaluation Plan include: No “draft” stamp – the plan should be marked “draft” so that it is perceived to be less presumptive on the part of the seller. Positioning the plan as a “draft” one invites the buyer to make changes to it and therefore take ownership of it The interview with John Duncan at the end is not effective at this stage. If John is key to the project, he should be interviewed early in the plan so that any findings can be reflected in presentations to the management team and benefits of addressing his issues can be included in the value analysis. All key players should be met with early The event “Present cost estimate” comes before “implementation plan approved…”. This is wrong. The Implementation Plan should be accepted first so that the actual costs of those implementation services are known and reflected in the presentation of costs There are no event that suggests “determine success criteria” or “measure success criteria”. These are key events that help the buyer realize the seller is interested in the client’s success and that they are not just “trying to sell them something” There is no event suggesting “approval of license contract by legal” which normally we would suggest including prior to “closing”. This helps minimize last-minute hurdles and obstacles when trying to close the business Try to hold off on cost as long as you can Transition: “Let’s review another approach for opportunity analysis …” 180

Course Agenda Discuss Key Management Roles and Activities that support the sales process Pipeline Management Standards Manage to Verifiable Outcomes Perform Opportunity Analysis and Pipeline Review Determine Gap by Sales Unit and by Seller Opportunity Coaching Use Strength of Sale Check Conduct Opportunity Coaching Review Stuck Opportunity Reports Personnel Development Identify Skill Gaps and Conduct Individual Coaching Personalize approach to Development Planning Purpose: Place mark progress through the workshop agenda Instructor Notes (should have been introduced earlier in the workshop): Next section and module to be covered Pipeline Management Standards – Perform Opportunity Analysis and Pipeline Review Transition: Let’s take a look conducting pipeline reviews. 181

Pipeline Review Through Opportunity Analysis
What is the accurate status of the opportunity? 1 Inspect the Verifiable Outcomes What opportunity details reveal how well the sales process has been executed? 2 Purpose: To position key components / questions to be asked and accurately answered during an opportunity analysis or debrief Key Instructor Notes: This question sequence is vital in keeping an opportunity analysis or debrief on task, and in ensuring that the desired behavior of accurate opportunity grading instilled in the sellers mind. This sequence also leads to inspection of information when deemed appropriate by the manager The inspection of opportunity details bay be more frequent and more detailed early in the implementation of the management system in an organization. Key points – the steps consist of: Determination of the accurate progression of the opportunity through the sales process Inspection of the relevant verifiable outcome is a point of proof of progress Assessing the quality of execution of sales process activities up to this point Further inspection of the details of the verifiable outcome along with additional process-oriented questions help to judge execution quality If deemed necessary, the opportunity may need to be re-graded as needed – this ensures that the pipeline becomes “cleansed” and reflects reality. Cleansing of data in the pipeline is critical in the implementation of the management system – dirty data yields dirty results. Anomalies or variances detected during this early inspection phase are addressed through coaching. Transition: “Let’s expand the view of the sales process and pipeline milestones and view them in a way that will further help with opportunity analysis…” Re-Grade Opportunity As Needed

The Successful Sales Formula Five Key Factors to Develop
Sale = Pain X Power X Vision X Value X Control Purpose: To share and discuss the 5 variables of the successful sales formula – the basis for the strength of sale analysis. Key Instructor Notes: Some may recognize this formula from Sales Execution Discuss the formula: These factors need to be developed in order for the customer to buy from you. Pain, Power, Vision and Value, when developed means the customer will likely buy. Adding Control means they will likely buy from you. Transition: “Some of the specific questions around these variables include…” 183

Focus Questions Using the Successful Sales Formula
Pain: “What high priority pain has the prospective buyer admitted to you?” “What is it costing them today?” Power: “Have you met with the person you believe is the Power Sponsor and why do you think he/she is Power?” “Can we gain access to and influence them?” Vision: “What is the vision you created or reengineered with Power?” “How is it differentiated from competition?” Value: “What is the quantifiable value of the solution?” “Is that quantifiable value sufficient for them to act?” Control: “What have you done to get a Evaluation Plan in place or otherwise control the buying process?” “Who is in control of the buying process?” Purpose: To provide high level debrief questions for the variables in the successful sales formula Key Instructor Notes: Review this focus question and explain how it could be used to start a dialogue with the seller. Several things are included in each question. For example, just within the pain question there are three important aspects… a valid Pain (personal) High-priority customer has admitted to you The bolded questions (in orange) tend to be the easier question to ask. This gives you a quick snapshot of where the opportunity is. Transition: “Because these are important factors, we want to improve the quality or strength of them as we progress through the sell cycle…” 184

Key Cadence Event – Pipeline Review
APPROACH TOOLS Opportunity Review Checklist What is the accurate status of the opportunity? 1 Inspect the Verifiable Outcomes PPVVC Questions What opportunity details reveal how well the sales process has been executed? Purpose: provide a construct for conducting a review Key Instructor Notes There are two elements to the construct: The approach The tools that should be leveraged The main focus of the approach is grading the pipeline consistently leading to accuracy. Achieved by examining verifiable outcomes one opportunity at a time. That gives a quick read on where the opportunity really is from the buyers perspective. The opportunity review checklist helps the manager understand where the opportunity is and the activities that lead to the verifiable outcome. PPVVC Questions help uncover the qualitative nature the opportunity by probing on Pain, Power, Vision, Value and Control. This approach will lead to pipeline grading consistency and eventual accuracy which will facilitate meaningful pipeline analysis NOTE – in the early stages of “pipeline cleansing” MUST be prepared for the pipeline to shrink and move to the left! Transition: Let’s practice a pipeline review 2 Re-Grade Opportunity As Needed 185

Course Agenda Discuss Key Management Roles and Activities that support a sales process Pipeline Management Standards Manage to Verifiable Outcomes Perform Opportunity Analysis and Pipeline Review Determine Gap by Sales Unit and by Seller Opportunity Coaching Use Strength of Sale Check Conduct Opportunity Coaching Review Stuck Opportunity Reports Personnel Development Identify Skill Gaps and Conduct Individual Coaching Personalize approach to Development Planning Purpose: Place mark progress through the workshop agenda Instructor Notes (should have been introduced earlier in the workshop): Next section and module to be covered Pipeline Management Standards – Determine gaps by sales unit Once the pipeline is correctly and consistently graded, then the sales manager should focus on understanding the gap by seller and overall. Transition: Let’s move onto how you determine a gap by seller unit and by seller 186

Yield Definition: An estimate of the revenue value in the pipeline that is expected to be realized Calculation: Yield is calculated by multiplying the revenue associated with each milestone by the milestone yield percentage. Potential revenue at completed step: Diagnose X 25% + Propose & Close 75% Implement 100% = YIELD Purpose: To define and provide an example of yield calculation Key Instructor Notes: There is a caution that must be stated here: The concept of yield can only be applied to groups of opportunities, the larger the group, the more valid the analysis. As a rule of thumb, this analysis is valid for a pipeline that has at least 30 opportunities in it. Avoid applying yield to single opportunities, because you will either win it (100%) or lose it (0%). There will be no in-between percentage. However for a sufficiently large group of opportunities, you will win a percentage of them and therefore can estimate the revenue by using the win odds, or yield %, as a weighting. The word, estimate, is important because if the size of opportunities vary widely the calculated yield can be off. On the other hand, if all the opportunities are about the same size, yield can be very accurate You can see now why it is so important to make sure all opportunities are accurately graded (correct milestone). If an opportunity is mis-graded by one milestone, the yield from that opportunity could be off significantly. And that’s why Opportunity Analysis is the starting point in the implementation of Solution Selling® It may be useful to have a conversation about “what do you need to know to project year end attainment” before showing the worksheet on the next page A weighted average for what should be in there…..many people will try to translate this into win odds. The yield is what comes out at the end. Weighted average – you calculate it on a rolling average basis. These percentages were measured and validated by a large organization (IBM Software). Key Comment:  Customization  – This page should be customized to reflect the client’s sales process and win odds Transition: “We can now take this concept of yield and use it in a more formal analysis…” 187

Pipeline Analysis Worksheet Annual View
Quota: B Average sell cycle length: C Average opportunity size: D Months left in the year: E Year-to-date attainment not reflected in the completed step “Fulfill”: Step completed Revenue X Yield % = Yield Diagnose 25% Propose & Close 75% Implement 100% Pipeline revenue total: F Pipeline yield total: G Projected yield for the year (F / B) x (D): H Gap * (A – G – E): * Gaps are negative I Additional “Diagnose” opportunities required to close the gap (H / C) x 25: Purpose: To provide a worksheet for the exercise Key Instructor Notes: Debrief by finding out what answers participants came up before revealing the answers on the page that follows It may be appropriate to provide the Microsoft Excel Spreadsheet version and allow participants to conduct the exercise using it Key Comment:  Customization  – This page should be customized to reflect the client’s sales process and win odds Transition: “Here is the answer you should have arrived at…” 188

Exercise: Pipeline Volume Analysis
Purpose: To practice analyzing a pipeline and determining appropriate actions Activities: As individuals use the Sample Pipeline Report and Pipeline Analysis Worksheet that follow and analyze the business unit pipeline to answer the following questions: What is the yield? Is there a gap? If so, what is the size of the gap? Will the unit’s quota be made? What are the recommended actions if a gap exists? Be prepared to share your observations Notes: For this exercise, only analyze the “total yield” line Additional information: The business unit’s quota is $5 Million The year-to-date (YTD) attainment is $500K The average deal size is $10,225 The average sale cycle length is 3 months The current date is 1 March

Pipeline Analysis Worksheet Annual View
Quota: B Average sell cycle length: C Average opportunity size: D Months left in the year: E Year-to-date attainment not reflected in the completed step “Fulfill”: Step completed Revenue X Yield % = Yield Diagnose 25% Propose & Close 75% Implement 100% Pipeline revenue total: F Pipeline yield total: G Projected yield for the year (F / B) x (D): H Gap * (A – G – E): * Gaps are negative I Additional “Diagnose” opportunities required to close the gap (H / C) x 25: Purpose: To provide a worksheet for the exercise Key Instructor Notes: Debrief by finding out what answers participants came up before revealing the answers on the page that follows It may be appropriate to provide the Microsoft Excel Spreadsheet version and allow participants to conduct the exercise using it Key Comment:  Customization  – This page should be customized to reflect the client’s sales process and win odds Transition: “Here is the answer you should have arrived at…” 190

Defining Key Sales Management Pipeline Habits “5 Ways to Close Pipeline Gaps”
Increase your focus on latent opportunities ABOVE THE FUNNEL 1 Find more opportunities during “planning” and “prospecting” 2 Increase the size of your current opportunities IN THE FUNNEL 3 Shorten your average sell cycle length Purpose: To define key “above” and “in” the funnel or pipeline focus areas that sales managers can use to help drive performance of the team Instructor Notes: Increase your focus on latent opportunities: With current customers (or accounts) your sellers should be focused on developing a “trusted advisor” relationship so that when latent opportunities become active, the salesperson is involved and engaged. With new or prospective customers sellers should be focused on uncovering latent pain by Finding more opportunities during “planning” and “prospecting” – Sales managers should ensure that their sellers reserve “sacred” prospecting time and that they have territory and account plans in place and that follow-up occurs. Increase the size of current opportunities – This includes adding maintenance , additional capabilities, adding services, protecting the value (and thus avoiding excessive price discounting) Shorten average sell cycle length – Increase the intensity of the problem and/or the compelling reason to act so that a decision is made faster. Being sure that the seller is getting to POWER as quickly as possible and is using the EVALUATION PLAN to draw the opportunity ahead. Improve your win odds (Qualify or Disqualify) – Disengage from opportunities that are wasting time and focus on the real opportunities that you can win. ASK What does the size of the GAP indicate? If you have a small gap, which areas are most important to focus on? (Small gap-within 10% - improve your performance on the opportunities in the pipeline) If you have a big gap, which areas are most important to focus on? (Large Gap – greater than 10% - focus on filling the gap) What does the time of year indicate? If you are beyond a certain point in time, prospecting will not help – have to have enough time to get the deals active and through the pipeline. ex.. If you have a six-month sell cycle, and the analysis is done on July 1, there is not enough time. Transition: Let’s take a closer look at the things that we can do for “filling the gap” which in most cases is the larger problem for organizations 4 Improve your win odds (Qualify or Disqualify) 5 191

Group Discussion: “Filling the Gap” Best Practices
What are the best practices for filling a gap… for individual sellers? For the sales team? Others? Prospecting Corporate Marketing Execution Account and Territory Planning Field Marketing Execution

Course Agenda Discuss Key Management Roles and Activities that support a sales process Pipeline Management Standards Manage to Verifiable Outcomes Perform Opportunity Analysis and Pipeline Review Determine Gap by Sales Unit and by Seller Opportunity Coaching Use Strength of Sale Check Conduct Opportunity Coaching Review Stuck Opportunity Reports Personnel Development Identify Skill Gaps and Conduct Individual Coaching Personalize approach to Development Planning Purpose Place mark progress through the workshop Key Instructor Notes: (should have been introduced earlier in the workshop): Next section and module to be covered Opportunity Coaching – Using the strength of sale check In this module, we discuss: Using the strength of sale check to gauge how well the elements of PPVVC are being carried out How to use the SOSC to initiate opportunity coaching Using stuck opportunity reports to identify opportunities for coaching Transition: Let’s take a closer look at the first module in this section. 193

Opportunity Review Through Opportunity Coaching
What is the accurate status of the opportunity? Inspect the Verifiable Outcomes Analyze Opportunity Details 1 2 3 How well has the selling process been executed up to this point? What coaching is required to advance the opportunity? Purpose: To extend the basics of opportunity analysis into coaching Key Instructor Notes: This is a review of the initial opportunity review sequence We will extend the usage Opportunity Review using Strength of Sale Check includes 3 main components: Determining where the opportunity is in the sales process (current status). Assessing the quality of what has been accomplished up to this point (well executed). Establishing a tactical plan to maximize the chances of winning moving forward.” Please Note – that this is an extension of the pipeline review – here we are getting deeper on the opportunity itself Also Please Note: - The result of the second dialogue “How well has the selling process been executed up to this point?” is now followed by the Action “ANALYZE OPPORTUNITY DETAILS – previously it was “Re-Grade Opportunity as Needed”, followed by “What coaching is required to advance the opportunity”. In the event the opportunity is deemed to be incorrectly graded, one of the “coaching actions” is to correct the situation or re-grade as needed. The plan is actually a concept known as the Win Plan. It will NOT be focused on in this session but is part of the wider sales management curriculum. The Win Plan is not the same as the Evaluation Plan. The Win Plan tends to focus on the internal aspects (not customer-facing) that need to be addressed to improve the chances of winning (e.g. resource allocation) Transition: “Let’s review the opportunity review checklist again since it is a key portion of the review process…

Opportunity Review Checklist
Check these items and outcomes below to verify status Plan and Engage Conduct opportunity planning Conduct opportunity assessment Create interest Gain initial meeting Name and title of potential Sponsor Business development approach and job aids used Appointment or call logged in calendar 0% Opportunity Created In Sales Online Diagnose Get pain admitted Diagnose and document admitted pain and create or reengineer vision of Sponsor Negotiate access to power Diagnose and document 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 Pain articulated by potential Sponsor Differentiated vision and value articulated by Sponsor Power Sponsor’s name and title Sponsor Letter/ sent and content agreed upon Pain articulated by potential Power Sponsor Differentiated vision and value articulated by Power Power Sponsor Letter/ & draft Evaluation Plan sent Evaluation Plan modified or agreed upon 25% Gain agreement with Power Sponsor to next steps Propose and Close 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 or Respond to RFP or Bid Engage bid team Finalize T’s & C’s First step accomplished (Go/No Go Step Letter) Customer approval process understood? Customer key players identified and engaged (as applicable)? Transition issues identified and addressed? Negotiating Worksheet and Get-Give List Who is negotiating? What is agreed upon? 75% Signed contract / Gain verbal agreement to buy Implement Engage implementation manager Execute implementation plan Engage IT Integration manager Test order placement and billing Implementation activities have been followed up When? Who? Status? 100% First Orders Placed Purpose: To highlight the Opportunity Review Checklist as a key management tool Key Instructor Notes: The Opportunity Review Checklist is used as before – to gain insight into facts surrounding the opportunity by examining or validating the evidence of activities completed – this gives the “process” view of the opportunity. The Strength of Sale view can be used in conjunction with the process view Once the process approach has been examined, the strength of sale provides a deeper scaling of the “Health” of the opportunity. NOTE – the analysis may be started with either method – the SOSC or the Review Checklist – they are meant to complement each other The strength of sale is based on 5 key variables which are indicators of the “health” of the opportunity. The SOSC may be used to check upon the momentum through the pipeline Transition: “The strength of sale approach is based on 5 key variables…”

Strength of Sale Check Measuring Incremental Progress
Strong Purpose: To develop the scaling associated with the 5 key variables of the SOSC – PPV V C Key Instructor Notes: When we look at the successful sales formula with a “strength of sale” (or quality) view, there are varying degrees of how strong or weak each variable can be. The approach here is to improve the strength of each variable over time – i.e. to look at the “health” of the opportunity Note the 0-10 scale indicating how a salesperson might move from a weak status (0) to a strong status (closer to 10) The concept with codification, progress of an opportunity may easily be tracked Transition: “Each of the variables have an incremental set of measures.. Starting with PAIN they are: …” Weak Pain Power Vision Value Control

Strength of Sale Check Measurable Progress with “Pain”
PAIN SCALE No identification of need or pain by customer 1 Salesperson assumes Sponsor’s needs 2 Sponsor admits needs 3 Sponsor admits reasons / symptoms for pain 4 Sponsor admits pain 5 Salesperson documents pain, Sponsor agrees 6 Salesperson assumes Power Sponsor’s needs 7 Power Sponsor admits needs 8 Power Sponsor admits reasons / symptoms for pain 9 Power Sponsor admits pain 10 Salesperson documents pain, Power Sponsor agrees Purpose: To indicate the incremental scale for Pain Key Instructor Notes: Suggest the participants look the visual over or read the items and elaborate as necessary Notice that we assign a value to the PAIN factor depending on what has been accomplished with the buyer. Also notice that, since we often must work with a Sponsor and a Power Sponsor, that both are included in this scale The scale starts at 0, representing the situation when the seller is working with a client contact and knows nothing about PAIN-- all the way to the opportunity situation when the seller has worked with the Power Sponsor to get them to admit Pain and has documented it. If the Power Sponsor agrees with the Power Sponsor letter, the value is 10, which is our opportunity target with PAIN.” As you look at the values you see that the scale also provides a step-by-step roadmap for moving PAIN from weak to a strong position. For example, if the Power Sponsor has admitted reasons or symptoms, the value is 8, not what it ultimately needs to be. But we can see clearly see what our next few action items need to be. NOTE – these are a relative set of points, and judgment may be cross-checked by using the process view or the Milestone Checklist with specific points of “evidence” of execution. REMEMBER – the SOSC and Milestone checklist are used together Transition: “Let’s see the same approach for ‘power’…” 197

Strength of Sale Check Measurable Progress with “Power”
POWER SCALE Power Sponsor not identified 1 Decision process revealed by Sponsor 2 Potential Power Sponsor identified 3 Bargain for access to Power agreed upon with 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 10 Power Sponsor approved/provided contract signature Purpose: To indicate the incremental scale for Power Key Instructor Notes: Suggest the participants look the visual over or read the items and elaborate as necessary Focus on the bottom and top of the scale and quickly review what is between Again, this is an indication of progress Transition: “Let’s see the same approach for ‘vision’…” 198

Strength of Sale Check Measurable Progress with “Vision”
VISION SCALE No vision or competitive vision established 1 Vision for Sponsor created in product terms 2 Vision for Sponsor created in situational terms 3 Differentiated vision created with Sponsor 4 Differentiated vision documented to Sponsor 5 Documented differentiated vision agreed by Sponsor 6 Vision for Power Sponsor created in product terms 7 Vision for Power Sponsor created in situational terms 8 Differentiated vision created with Power Sponsor 9 Differentiated vision documented to Power Sponsor 10 Documented differentiated vision agreed by Power Purpose: To indicate the incremental scale for Vision Key Instructor Notes: Suggest the participants look the visual over or read the items and elaborate as Necessary Focus on the bottom and top of the scale and quickly review what is between Transition: “Let’s see the same approach for ‘value’…” 199

Strength of Sale Check Measurable Progress with “Value”
VALUE SCALE Customer wants to explore solution, value not identified 1 Salesperson identifies customer value proposition 2 Customer agrees to explore the value proposition 3 Value discovered associated with Pain 4 Value discovered associated with Vision 5 Customer confirms or modifies potential value 6 Additional beneficiaries included in value potential 7 Value analysis conducted – driven by salesperson 8 Value analysis conducted – driven by customer 9 Value analysis conducted – jointly driven 10 Value of solution meets decision criteria Purpose: To indicate the incremental scale for Value Key Instructor Notes: Suggest the participants look the visual over or read the items and elaborate as necessary Focus on the bottom and top of the scale and quickly review what is between Note: the “Value Proposition” may refer to the job aid within Solution Selling® or if meant in a generic sense it should at least contain quantifiable metrics Transition: “Let’s see the same approach for ‘control’…” 200

Strength of Sale Check Measurable Progress with “Control”
CONTROL SCALE No follow-up documentation of client conversations 1 Lead Letter ( ) sent 2 Lead Letter ( ) agreed upon or modified 3 Sponsor Letter ( ) sent 4 Sponsor Letter ( ) agreed upon or modified 5 Salesperson gained agreement to pre-proposal review 6 Power Sponsor Letter ( ) & Evaluation Plan sent 7 Letter and Evaluation Plan agreed upon or modified 8 First Go / No-Go Step completed 9 Pre-proposal review conducted 10 Evaluation Plan completed Purpose: To indicate the incremental scale for Control Key Instructor Notes: Suggest the participants look the visual over or read the items and elaborate as necessary Some organizations may not use Lead Letters. This may be indicated by some other form of initial interest shown (and documented, if possible) Focus on the bottom and top of the scale and quickly review what is between Some organizations may find it useful to replace the 8th item “first go-no go step completed” with a specific event common in most Evaluation Plans specific to their business. Transition: “Let’s see an example of how one might plot an opportunity’s strength of sale…” 201

Strength of Sale Check “September 17th” Example
Customer Rocket Opportunity Data Base Date Updated 17 Sep Purpose: To provide a view of all the variables for an opportunity scored collectively Key Instructor Notes: Conduct an “strength of sale” grading or rating can be applied and shown in multiple forms (bar graph, radar chart, dashboards, etc.) In this bar graph, we see an example of how the 5 variable might be plotted for a given point in time for a select opportunity – i.e. the date of 17 Sept. Now let’s say I go through and do a strength of sales check for Rocket Database – I go in and complete this SOSC. In this example, what might be the focus of a dialogue between seller and manager> - That there is a need to get to Power in order to really flesh out Pain and Vision. In a couple of weeks, we can update this thereby demonstrating potential progress Transition: “The value in this assessment comes when you are able to track your progress by conducting a second assessment…”

Strength of Sale Check “October 1st” Example
Customer Rocket Opportunity Data Base Date Updated 1 Oct Purpose: To provide a view of the variables for an opportunity and the progress over a period of time Key Instructor Notes: This is an “update” to the previous and builds upon the previous opportunity review What does this updated view indicate? Value has not been improved upon. No progress on Value. You would expect to see Value to be improved upon. If you don’t see it moving, you may have a problem. Progress has been made in getting to Power We will discuss how to address this shortly, but now we just want to focus on how the strength of sale might be depicted This is one view Transition: “Another way to view this data is by using a radar chart…”

Strength of Sale Check Worksheet
PAIN SCALE Customer: __________ Opportunity: Date Updated: No identification of need or pain by customer 1 Salesperson assumes Sponsor’s needs 2 Sponsor admits needs 3 Sponsor admits reasons / symptoms for pain 4 Sponsor admits pain 5 Salesperson documents pain, Sponsor agrees 6 Salesperson assumes Power Sponsor’s needs 7 Power Sponsor admits needs 8 Power admits reasons / symptoms for pain 9 Power Sponsor admits pain 10 Salesperson documents pain, Power agrees POWER SCALE Power Sponsor not identified Decision process revealed by Sponsor Potential Power Sponsor identified Bargain for access to Power agreed by Sponsor Access to Power Sponsor achieved Buying and decision processes confirmed Power Sponsor agreed to explore further Power Sponsor agreed to Evaluation Plan Power Sponsor agreed to proposal content Power Sponsor provided verbal approval Power approved/provided contract signature VISION SCALE VALUE SCALE CONTROL SCALE No vision or competitive vision established Customer explores solution, value not identified No follow-up documentation of client conversations Vision for Sponsor created in product terms Salesperson identifies customer value proposition Lead Letter ( ) sent Vision for Sponsor created in situational terms Customer agrees to explore the value proposition Lead Letter ( ) agreed upon or modified Differentiated vision created with Sponsor Value discovered associated with Pain Sponsor Letter ( ) sent Differentiated vision documented to Sponsor Value discovered associated with Vision Sponsor Letter ( ) agreed upon or modified Documentation agreed to by Sponsor Customer confirms or modifies potential value Seller gained agreement to pre-proposal review Vision for Power created in product terms Additional beneficiaries included in value potential Power Sponsor Letter ( ) & Evaluation Plan sent Vision for Power created in situational terms Value analysis conducted – driven by salesperson Letter and Evaluation Plan agreed upon or modified Differentiated vision created with Power Value analysis conducted – driven by customer First Go / No-Go Step completed Differentiated vision documented to Power Value analysis conducted – jointly driven Pre-proposal review conducted Documentation agreed to by Power Value of solution meets decision criteria Evaluation Plan completed Pain 10 Control Power Value Vision Purpose: To demonstrate an alternative view (radar chart example) of the variables for an opportunity Key Instructor Notes: You’ll notice that in this view the intent is for the ratings to all close in on the optimal score of 10. This worksheet view (with the radar chart) shows the 0-10 scale for each of the variables Whether you use a Microsoft Excel Spreadsheet or a simple paper-based approach, using this can be a quick way to debrief the status of opportunities Transition: “Let’s look at the same data shown in the bar graph but now in the context of this radar chart…”

Strength of Sale Check Worksheet – “September 17th Example”
PAIN SCALE Customer: Rocket Opportunity: Database Date Updated: Sep 17 _____ No identification of need or pain by customer 1 Salesperson assumes Sponsor’s needs 2 Sponsor admits needs 3 Sponsor admits reasons / symptoms for pain 4 Sponsor admits pain 5 Salesperson documents pain, Sponsor agrees 6 Salesperson assumes Power Sponsor’s needs 7 Power Sponsor admits needs 8 Power admits reasons / symptoms for pain 9 Power Sponsor admits pain 10 Salesperson documents pain, Power agrees POWER SCALE Power Sponsor not identified Decision process revealed by Sponsor Potential Power Sponsor identified Bargain for access to Power agreed by Sponsor Access to Power Sponsor achieved Buying and decision processes confirmed Power Sponsor agreed to explore further Power Sponsor agreed to Evaluation Plan Power Sponsor agreed to proposal content Power Sponsor provided verbal approval Power approved/provided contract signature VISION SCALE VALUE SCALE CONTROL SCALE No vision or competitive vision established Customer explores solution, value not identified No follow-up documentation of client conversations Vision for Sponsor created in product terms Salesperson identifies customer value proposition Lead Letter ( ) sent Vision for Sponsor created in situational terms Customer agrees to explore the value proposition Lead Letter ( ) agreed upon or modified Differentiated vision created with Sponsor Value discovered associated with Pain Sponsor Letter ( ) sent Differentiated vision documented to Sponsor Value discovered associated with Vision Sponsor Letter ( ) agreed upon or modified Documentation agreed to by Sponsor Customer confirms or modifies potential value Seller gained agreement to pre-proposal review Vision for Power created in product terms Additional beneficiaries included in value potential Power Sponsor Letter ( ) & Evaluation Plan sent Vision for Power created in situational terms Value analysis conducted – driven by salesperson Letter and Evaluation Plan agreed upon or modified Differentiated vision created with Power Value analysis conducted – driven by customer First Go / No-Go Step completed Differentiated vision documented to Power Value analysis conducted – jointly produced Pre-proposal review conducted Documentation agreed to by Power Value of solution meets decision criteria Evaluation Plan completed Pain 10 Control Power Value Vision Purpose: To demonstrate how the radar chart can be used to assess an opportunity with the variables of PPV VC Key Instructor Notes: Recall the last item completed for each variable (read each item) i.e. – for PAIN scale – 5 represents Salesperson documents Pain , Sponsor agrees Follow the remaining Note the date of the review Transition: Now let's look forward into the next review event

Strength of Sale Check Worksheet – “October 1st Example”
PAIN SCALE Customer: Rocket Opportunity: Database Date Updated: Oct 1 _____ Sep 17 _____ No identification of need or pain by customer 1 Salesperson assumes Sponsor’s needs 2 Sponsor admits needs 3 Sponsor admits reasons / symptoms for pain 4 Sponsor admits pain 5 Salesperson documents pain, Sponsor agrees 6 Salesperson assumes Power Sponsor’s needs 7 Power Sponsor admits needs 8 Power admits reasons / symptoms for pain 9 Power Sponsor admits pain 10 Salesperson documents pain, Power agrees POWER SCALE Power Sponsor not identified Decision process revealed by Sponsor Potential Power Sponsor identified Bargain for access to Power agreed by Sponsor Access to Power Sponsor achieved Buying and decision processes confirmed Power Sponsor agreed to explore further Power Sponsor agreed to Evaluation Plan Power Sponsor agreed to proposal content Power Sponsor provided verbal approval Power approved/provided contract signature VISION SCALE VALUE SCALE CONTROL SCALE No vision or competitive vision established Customer explores solution, value not identified No follow-up documentation of client conversations Vision for Sponsor created in product terms Salesperson identifies customer value proposition Lead Letter ( ) sent Vision for Sponsor created in situational terms Customer agrees to explore the value proposition Lead Letter ( ) agreed upon or modified Differentiated vision created with Sponsor Value discovered associated with Pain Sponsor Letter ( ) sent Differentiated vision documented to Sponsor Value discovered associated with Vision Sponsor Letter ( ) agreed upon or modified Documentation agreed to by Sponsor Customer confirms or modifies potential value Seller gained agreement to pre-proposal review Vision for Power created in product terms Additional beneficiaries included in value potential Power Sponsor Letter ( ) & Evaluation Plan sent Vision for Power created in situational terms Value analysis conducted – driven by salesperson Letter and Evaluation Plan agreed upon or modified Differentiated vision created with Power Value analysis conducted – driven by customer First Go / No-Go Step completed Differentiated vision documented to Power Value analysis conducted – jointly driven Pre-proposal review conducted Documentation agreed to by Power Value of solution meets decision criteria Evaluation Plan completed Pain 10 Control Power Value Vision Purpose: To demonstrate how progress or lack thereof can be indicated using the radar chart. Key Instructor Notes: It is now two weeks later (October 1) Debrief the 5 variables for progress - moved forward on most of the items (read each item) Visual can quickly point areas to further pursue when debriefing the status of an opportunity ASK – where do you see a potential difficulty with this opportunity? (Value development) What is keeping us from advancing on the value scale – point out the things not done in the value scale. Everything else is moving along fine…..as you make progress on the radar chart, it should collapse. and head towards the center There is an Excel spreadsheet available with this workshop – each opportunity may be updated five times. Transition: “Notice the date of the worksheet, now let's see the worksheet two weeks later…”

Exercise: Strength of Sale
Purpose: To practice assessing the status of an opportunity using the Strength of Sale Check Activities: Form into groups of two The following describes the situation: One of your salespeople has been working on an opportunity for three months You have this opportunity on your forecast to close this quarter, 60 days from now Please read the information found on the next page “Opportunity Status” Complete the Strength of Sale Check worksheet Be prepared top debrief the results Purpose: To practice determining the “strength of sale” Key Instructor Notes: Read the bulleted items Show the supporting materials on the pages that follow Have the participants share their experiences and questions after the role play Allow 25 minutes for this exercise Transition: “This exercise will take about 25 minutes. Upon its completion we will have a short debrief to talk about it...”

Exercise: Strength of Sale Opportunity Status
Pain: The power sponsor has openly shared a high priority critical business issue they need to address. Power: At the close of the meeting with the salesperson, the Power Sponsor seemed very eager and indicated a desire to further explore the potential solution. Vision: In an to the Power Sponsor, the salesperson has documented the details of the potential solution. The was careful to reconfirm the capabilities of the solution the Power Sponsor is looking to acquire including unique solution functionality and how it can help the Power Sponsor solve the admitted pain. Value: In a follow-up voic right after the meeting, the Power Sponsor said he/she was optimistic about the benefits that the capabilities being recommended might provide but realized they “had not discussed metrics enough”. The Power Sponsor suggested he/she would like to investigate what the seller thinks the potential value would be to his/her department. Control: The salesperson followed up the conversation with the Power Sponsor by recapping the dialogue including all key components in the Power Sponsor Letter ( ). Attached to the was a draft Evaluation Plan recommending mutual next steps. Follow up to discuss the draft plan has not yet occurred . Purpose: To support the “strength of sale” exercise Key Instructor Notes: Allow the participants to read the status information The text has been written to avoid ambiguous responses Transition: Let’s take a look at the Strength of Sales Checklist

Strength of Sale Check Worksheet
PAIN SCALE Customer: __________ Opportunity: Date Updated: No identification of need or pain by customer 1 Salesperson assumes Sponsor’s needs 2 Sponsor admits needs 3 Sponsor admits reasons / symptoms for pain 4 Sponsor admits pain 5 Salesperson documents pain, Sponsor agrees 6 Salesperson assumes Power Sponsor’s needs 7 Power Sponsor admits needs 8 Power admits reasons / symptoms for pain 9 Power Sponsor admits pain 10 Salesperson documents pain, Power agrees POWER SCALE Power Sponsor not identified Decision process revealed by Sponsor Potential Power Sponsor identified Bargain for access to Power agreed by Sponsor Access to Power Sponsor achieved Buying and decision processes confirmed Power Sponsor agreed to explore further Power Sponsor agreed to Evaluation Plan Power Sponsor agreed to proposal content Power Sponsor provided verbal approval Power approved/provided contract signature VISION SCALE VALUE SCALE CONTROL SCALE No vision or competitive vision established Customer explores solution, value not identified No follow-up documentation of client conversations Vision for Sponsor created in product terms Salesperson identifies customer value proposition Lead Letter ( ) sent Vision for Sponsor created in situational terms Customer agrees to explore the value proposition Lead Letter ( ) agreed upon or modified Differentiated vision created with Sponsor Value discovered associated with Pain Sponsor Letter ( ) sent Differentiated vision documented to Sponsor Value discovered associated with Vision Sponsor Letter ( ) agree upon or modified Documentation agreed to by Sponsor Customer confirms or modifies potential value Seller gained agreement to pre-proposal review Vision for Power created in product terms Additional beneficiaries included in value potential Power Sponsor Letter ( ) & Evaluation Plan sent Vision for Power created in situational terms Value analysis conducted – driven by salesperson Letter and Evaluation Plan agree upon or modified Differentiated vision created with Power Value analysis conducted – driven by customer First Go / No-Go Step completed Differentiated vision documented to Power Value analysis conducted – jointly produced Pre-proposal review conducted Documentation agreed to by Power Value of solution meets decision criteria Evaluation Plan completed Pain 10 Control Power Value Vision Purpose: To provide a SOSC (radar) worksheet to conduct the “strength of sale” exercise Key Instructor Notes: The participants may be able to use the Microsoft Excel Spreadsheet template to conduct this exercise Debrief the exercise by asking a participant to share a rating for one of the components (e.g. “What did you get for Pain?”) and conduct some polling (e.g. “Did everyone else get that?”… “Did anyone have anything different?”… “Why?”) Answers: Pain – “9” Power – “6” Vision – “”9” – the vision is differentiated and documented Value – “”2” – the customer is interested in exploring value but it doesn’t appear to have been an integral part of the vision processing conversation Control – “6” Which component (s) need coaching? Answer: Value – looking at the proper sales execution approach, value should at least be at a “4”. It appears the seller may have discussed benefits but not associating tangible numbers with them It is through the dialogue with the seller that these things can be determined. Transition: “Now that we’ve conducted opportunity analysis, let’s look at how we might apply sound coaching techniques to address an opportunity problem...”

Course Agenda Discuss Key Management Roles and Activities that support a sales process Pipeline Management Standards Manage to Verifiable Outcomes Perform Opportunity Analysis and Pipeline Review Determine Gap by Sales Unit and by Seller Opportunity Coaching Use Strength of Sale Check Conduct Opportunity Coaching Review Stuck Opportunity Reports Personnel Development Identify Skill Gaps and Conduct Individual Coaching Personalize approach to Development Planning Purpose: Place mark progress through the workshop Key Instructor Notes: (should have been introduced earlier in the workshop): Next section and module to be covered Opportunity Coaching – Conduct Opportunity Coaching Now that we understand how the strength of sales check works, let’s begin to examine how to conduct opportunity coaching. Transition: What we plan to cover in opportunity coaching includes… 210

Management and Leadership Philosophies of Coaching
Fundamental sales manager competency Protects the investments made in training and personal development Not intuitive - it is an acquired skill Salespeople have competencies; managers must coach them to “stretch” Building a top performing sales force requires continuous coaching Most effective management skill with which to positively impact sales performance Don’t Wait – Coach Now! Purpose: To explain the philosophies of coaching Key Instructor Notes: The best-of-breed managers / leaders have a coaching discipline as fundamental in their4 own personal skills inventory – WHY? The return on investment in your staff is significantly improved through effective leadership and coaching. Individuals CAN and MUST learn it (you will get a good start during this workshop!) The ability to coach and lead is one of the most important skills that as a manager can have – you get a ton of return on it. You are coaching and developing people in every interaction. Coaching has a big impact on performance. Often it is the difference. Greater levels of effectiveness are achieved through use of the “carrot” instead of the “stick”. Especially with most sellers in today’s selling generation! Understanding how to manage and lead mostly with the carrot (positive leadership example) is critical for today’s sales manager. Transition: Let’s briefly talk about a coaching model that we will use throughout this course and you will use a great deal with your sellers. © Solution Selling, Inc. • 2009 211

Management and Leadership Coaching Principals
Before Coaching Sessions Schedule coaching reviews regularly, don’t leave coaching as an ad hoc activity Be aware, each individual reacts differently to coaching – apply the appropriate level Remember, it is easier if you prepare for coaching During Coaching Sessions Make sure the environment is conducive to coaching Base coaching on facts, not opinions “Ask, don’t tell” - use self-discovery as a tool for learning Examine alternative resolutions Allow seller to take and retain ownership of action and results Conclude Coaching Sessions Ensure reviews result in an appropriate action plan Keep in mind, managers must be willing to take an assignment as well After Coaching Review Follow-up on a timely basis Consistently encourage the individual Purpose : Introduce coaching principles as part of management and leadership Instructor Notes: There are four phases of the coaching experience (Before, During, Concluding and After) For each of these phases, there are some guidelines – review these with the participants A couple of key principles: Do coaching on a regular basis. Coach high performers as well as others Don’t let the invitation to a coaching session become precursor to a troubled situation. As part of cadence, apply coaching – use it in a complimentary and encouraging fashion so it is not always negative. Remember the cadence should be configured / integrated for each sales situation Review each of the before, during, conclude and after coaching Don’t fall into the trap of doing it all for them – get them to do it. Some people will need more focus and detail on coaching than others. Review these concepts in light of management by exception. Early in a roll-out or implementation, you will have many exceptions. Over time, once consistency is attained, you can achieve management by exception. Transition: Let’s talk about some different coaching approaches and examples 212

Model Rehearse Review Situational Coaching Coaching Action
Coaching Examples “If it would make sense for me to go with you on the next call to help you create the buyer’s vision, how would you use me.” Model “Let’s role play the actual discussion with the prospect. I’ll play the buyer and you play the seller using the 9-Block Model and Pain Sheet for this situation.” Rehearse Purpose: To provide an example of coaching levels Key Instructor Notes: The type of coaching action one uses will likely depend on a number of items, some of which include: the experience of the seller whether the action is intended to help with an opportunity (short term) or a skill (long term) the time the manager has to devote to the situation What happens in a rollout? – the sellers get a lot of information – they will pick a couple of things that will help them initially in a given situation. The sellers will forget how to do a call introduction. You may have to review some of the key concepts with the seller from time to time. Transition: “As we mentioned, leading one to self-conclusion about the actions they need to take is a powerful learning technique …” “Recall that the 9-Block Model has three types of questions - open, control, and confirm… in three areas - reasons, impacts, capabilities - and uses a Pain Sheet as a prompter for the difficult (control) questions. How would you use this in the next customer meeting” Review 213

G R F A GRAF Coaching Model GAP REASONS FOLLOW-UP ACTION
Understand / acknowledge the GAP between what is wanted or expected and the reality of the situation (Admit the Pain) Understand / acknowledge the REASONS for the GAP FOLLOW-UP to ensure that the ACTIONS were satisfactorily completed (Determine if the GAP has been addressed) Commit to a joint plan of ACTION to address the GAP (What will be accomplished to remedy) Purpose: To describe the 4 components of the GRAF Coaching Model Key Instructor Notes: This GRAF Coaching Methodology is not dependent on Solution Selling® (although the underlying principles are compatible), it is relevant for any sales process being used Read each component clockwise starting with “G” – Gap This model can be applied in both opportunity and skill coaching Key Facilitation Notes: On a flip chart write: OPEN CONTROL AND CONFIRM These are elements of good questioning etiquette Remind that the G R A F Model is in reality a questioning technique Transition: “This model provides us the components by which to both hold a coaching session but also to prepare for a coaching session …” FOLLOW-UP ACTION 214

GRAF Coaching Preparation: Notes / Worksheet
Salesperson Name: Coaching Type: Opportunity  Skill  Date of Coaching Event: Opportunity Description: GAP REASONS What is the GAP between performance expectations and actual results? What are the REASONS for the GAP? Expectations: Reasons: Results observed: Who is involved: Salesperson’s perspective: FOLLOW-UP ACTION What FOLLOW-UP will you and the salesperson agree to in order to close the GAP? What ACTIONS does the salesperson agree and commit to do? Specifics of follow-up actions (evidence of completion): Options to close the gap: Salesperson’s commitment: Date for completion: Time for follow-up: Help needed: G R F A Purpose: To introduce a worksheet and thought-process designed around the GRAF Coaching Model Key Instructor Notes: This worksheet (which actually is as much a mental model as it is a literal worksheet) is designed around the GRAF Coaching Model The manager may use this to prepare for a coaching session or they might segue from analysis to coaching with little prep time. This would be an instance where the manager uses the methodology but not the worksheet The approach clearly shows that the salesperson’s input is valued Not all of the fields will need to be covered or have information provided (e.g. “who is involved” may not be applicable. The “salesperson’s perspective” may not be used very often during the preparation but more so for note-taking later) This is also an excellent documentation – this is backup information. It allows a sales manager to identify seller follow-up issues. This worksheet follows Human Resources Best Practices Transition: “Let’s apply the coaching techniques in an exercise…” 215

Exercise: Coaching Preparation and Application
Activities: Get into groups of two (Person A and Person B) Conduct the Coaching Preparation and Application exercise Person A Person B Coaching (Part 1) Manager Seller Coaching (Part 2)

Course Agenda Discuss Key Management Roles and Activities that support a sales process Pipeline Management Standards Manage to Verifiable Outcomes Perform Opportunity Analysis and Pipeline Review Determine Gap by Sales Unit and by Seller Opportunity Coaching Use Strength of Sale Check Conduct Opportunity Coaching Review Stuck Opportunity Reports Personnel Development Identify Skill Gaps and Conduct Individual Coaching Personalize approach to Development Planning Purpose: Place mark progress through the workshop Key Instructor Notes: (should have been introduced earlier in the workshop): Next section and module to be covered Opportunity Coaching – Review Stuck Opportunity Reports Now that we understand how the strength of sales check works and have practiced conducting an opportunity coaching session, let’s begin to examine how to conduct opportunity coaching. Transition: What we plan to cover in stuck or stalled opportunities includes… 217

Key Pipeline Metric Speed
Purpose: To define the concept of opportunity velocity . Key Instructor Notes: Speed or velocity means rate of movement. The purpose of Speed analysis is to answer the question: “Are all opportunities moving through the pipeline at a speed (rate) that will produce enough revenue to meet goal?” This naturally relates to the concept of Volume which answers the question : “Do we have enough?”, while speed further qualifies the question: “Do we have enough when we need it” Note: There is also the concept of “balance” which are not covered in this course Transition: “So, how do we answer that question ‘Are all opportunities moving through the pipeline at a speed (rate) that will produce enough revenue to meet goal?’ One way to do that is to identify how long opportunities usually stay at certain steps or stages in the sales process…” Are all opportunities moving through the pipeline at a speed that will produce enough revenue in a timely fashion? 218

Evaluation Plan – “The Path to Win”
Power Sponsor Sponsor Evaluation Plan Contract & Close TYPICAL SALES CYCLE Start Close Purpose: To indicate the role the Evaluation Plan plays in affecting velocity Key Instructor Notes: The evaluation plan is very important in the execution and management of the sales and buying processes. It is a quite valuable technique. As can be seen from this time map, the evaluation plan takes up the majority of the time and activity in a typical “Solution Selling®” sell cycle. (This is for an ideal 6-month sell cycle.) Whatever the length of the sell cycle, the evaluation plan covers most of the selling and buying activities. The longer the sell cycle, the greater the percentage of time is taken by the evaluation plan usually because of the proof and approval steps necessary during this evaluation phase. The Evaluation Plan itself contains dates for event completion as well as major events or GO / NO-GO steps. Monitoring these helps create a sense of velocity (organizations may compare like sales opportunities to get an understanding of average speeds) Transition: “The average “Ideal” speeds have an expected time-in-stage associated with them …” The majority of selling activity occurs during the execution of the Evaluation Plan 219

Ideal Time in Step 220 Ideal Time in Step (approximate # of days) Step
3 month sell cycle 4 month sell cycle 6 month sell cycle 8 month sell cycle 9 month sell cycle 12 month sell cycle Plan & Engage 9 15 0% Diagnose 18 24 40 25% Propose & Close 30 42 80 120 150 180 75% Implement 33 39 45 65 125 100% Note: When a salesperson spends “days in step” they are allotting those number of days toward executing the sales activities leading to the next milestone (denoted here by win odds) Purpose: To offer a view of Ideal Time-in-stage values Key Instructor Notes: Key point: Based on experience with Solution Selling® these are typical (ideal) numbers of days an opportunity spends in each stage. Why is the most time spent at in the PROVE step? Again, this is when the Evaluation Plan is executed There are no # of days associated with CREATE (completed) because the true time measurement of the sell cycle begins when the opportunity is identified and interest has been stimulated The # of days (4) after CLOSE (completed) is a reflection of “revenue not yet recognized” – the period of time between a “win” and “recognition” – obviously this too can change from organization to organization These metrics are certainly only a starting point. There are many exceptions to these numbers but as a whole they provide a realistic, useable starting point for good analysis. We will use this information later as we do more pipeline analysis. Knowing these averages helps pinpoint stalled opportunities Key Comment:  Customization  – This page should be customized to reflect the client’s sales process and win odds Transition: “Let’s look at an application…” 220

Exercise: Identifying Stuck Opportunities
Purpose: To practice analyzing a pipeline milestone report to identify stalled opportunities Activities: Form into groups of two Review the pipeline milestone report (Pipeline Milestone Worksheet™) on the page that follows Circle the opportunities that appear to be stalled Be prepared to debrief Notes: The sample opportunities found on the Pipeline Milestone Worksheet are for a salesperson with an average sell cycle length of 6 months The current date is 1 March Purpose: To offer practice identifying stalled opportunities. Key Instructor Notes: Read the bulleted items Review the Pipeline Milestone Worksheet™ on the next page. Point out the left column: the average number of days to get through each step Have the participants share their experiences and questions after the exercise Key Facilitation Notes: As the instructor, be sure you have read and understand the milestone worksheet and can point out some of observations as highlighted on the next notes page Allow 20 minutes for this exercise Transition: “This exercise will take about 20 minutes. Upon its completion we will have a short debrief to talk about it...” 221

Pipeline Milestones Worksheet™ (Date: March 1st)
Time in Step OPPORTUNITIES PIPELINE MILESTONES WORKSHEET™ 1 2 3 4 5 6 7 8 Johnson & Company Cradel Industries Health Source Inc. Electronic Data Parts Sonitron Tapestry Inc. Vortex Tandy Paper Mfg. A L Latent or Active (L/A) 10 20 50 16 60 85 Potential sale amount ($K) 9 Plan & Engage 15 Jan 15 Dec 20 Dec 10 Jan 1 Feb 8 Dec 6 Feb 31 Jan Conduct planning activities (new or existing) Create interest Gain initial meeting 0% 18 Diagnose 18 Jan 18 Dec 21 Jan 14 Feb Get pain admitted Diagnose admitted pain and create or reengineer vision of Sponsor Negotiate access to power 24 Dec 16 Feb Confirm dialogue and agree upon next steps 23 Jan 18 Feb Diagnose admitted pain and create or reengineer vision of Power Sponsor 5 Jan 28 Jan 20 Feb Determine evaluation criteria and propose next steps 20 Jan 21 Feb Confirm dialogue and agree upon plan of next steps 25% 30 Propose & Close 4 Feb 28 Feb Execute Evaluation Plan steps 11 Feb Engage appropriate overlay 8 Jan 15 Feb 17 Feb Present solution 22 Feb Refine value proposition Agree upon transition plan 1 Mar Identify success criteria 26 Jan Create RFP to reflect Office Depot differentiators Engage bid team Respond to RFP or bid (if appropriate) 5 Feb Finalize T’s & C’s 75% 33 Implement 12 Feb Engage implementation manager Execute implementation plan Engage IT Integration manager Test order placement and billing 100% * Premature delivery of a proposal is not a sign of progress

Stuck Opportunity Report Why, When and How to Leverage This Report
Why This is Important? To identify opportunities that require attention in order to move them ahead in the pipeline When To Use? Evaluate weekly Communicate weekly How to Use? Identify large opportunities that are not moving as expected Determine prevalent patterns – Where are opportunities getting stuck? Assess prevalent patterns as possible skill or competency issues Key Questions to Ask Where are opportunities losing momentum or “getting stuck”? Are appropriate customer communications (verifiable outcomes) occurring? Is the customer urgency sufficient for action? Are sellers managing (in control) of the process with an Evaluation Plan? (If not, why?) Purpose: To overview stalled opportunity reports and it’s usage Key Instructor Notes This report is used by the manager as an initial filter in identifying stalled opportunities Key Facilitation Notes: This is a opportunity for GROUP Discussion. Ask the following and dialogue the answers: For your organization: Why is this report important? - Listen for answers to be sure the points on the slide are covered When should this report be used by management? This portion of the dialogue should lead to the concept of “Cadence” – a predetermined frequency and agenda for manager to seller interactions. “What are we going to talk about and when are we going to do it!?” More about this subject later! How should it be used? – Listen for answers to be sure the points on the slide are covered Reference the key questions to ask box as a way to indicate some of the information to be gathered from the report and cadence. Dialogue the questions for relevancy to the participants – Why is this important to YOU? Transition: We have covered a lot of material and ideas about inspecting and analyzing to identify issues, either at the opportunity level or possibly at the skill level. The next logical step is: what to do about it? . . 223

Course Agenda Discuss Key Management Roles and Activities that support a sales process Pipeline Management Standards Manage to Verifiable Outcomes Perform Opportunity Analysis and Pipeline Review Determine Gap by Sales Unit and by Seller Opportunity Coaching Use Strength of Sale Check Conduct Opportunity Coaching Review Stuck Opportunity Reports Personnel Development Identify Skill Gaps and Conduct Individual Coaching Personalize approach to Development Planning Purpose: Purpose: Place mark progress through the workshop Key Instructor Notes: (should have been introduced earlier in the workshop): Next section and module to be covered Personnel Development– Identify skill gaps and conduct individual coaching Now that we understand how to apply opportunity coaching methods, let’s begin to look at the broader issue of personnel development. We basically focus on two areas: How to identify possible skill gaps and how to prepare for the coaching event Transition: What we plan to cover in opportunity coaching includes… 224

Skills in the Selling Process
Selling Skills Key Evidence Prospecting Plan & Engage Appointment Need Development (Sponsor) Sponsor Letter Diagnose Need Development (Power Sponsor) Power Sponsor Letter & Evaluation Plan Purpose: To position key selling skills and key evidence in the context of the sales process Key Instructor Notes: Different skills come into play at different key stages of the sales process. The ability to execute these skills is judged by the evidentiary material (event / Verifiable Outcome) associated with the steps in the process. Review each of the selling skills and relate it to the key evidence This visual shows the standard pipeline with an indication of where some traditional selling skills might fall in the flow of the pipeline. Also, we see key evidence that can be inspected (at the individual opportunity level) to see if an issue exists When we do this type of inspection for multiple opportunities, we begin to validate suspected selling skill issues, not just an opportunity problem When a skill issue exists, individual seller pipelines can become “pinched” due to stalled opportunities and the flow of revenue is not consistent Transition: “Let’s look at the concept of ‘skill issue identification using the Pipeline Milestone Worksheet…” Control Propose & Close Evaluation Plan (Go/No Go Events) Negotiating and Closing Negotiating Worksheet Implement 225

Pipeline Milestones Worksheet™ (Date: March 1st)
OPPORTUNITIES PIPELINE MILESTONES WORKSHEET™ 1 2 3 Johnson & Company Cradel Industries Health Source Inc. A L Latent or Active (L/A) 810 5 785 Potential sale amount ($K) Plan & Engage 15 Jan 15 Dec 20 Dec Conduct planning activities (new or existing) Create interest Gain initial meeting 0% Diagnose 18 Jan 18 Dec 21 Jan Get pain admitted Diagnose admitted pain and create or reengineer vision of Sponsor Negotiate access to power Confirm dialogue and agree upon next steps 5 Jan 23 Jan Diagnose admitted pain and create or reengineer vision of Power Sponsor 28 Jan Determine evaluation criteria and propose next steps 8 Jan Confirm dialogue and agree upon plan of next steps 25% Propose & Close 10 Jan Execute Evaluation Plan steps 12 Jan Engage appropriate overlay 19 Jan 4 Feb Present solution 26 Jan 11 Feb Refine value proposition 16 Feb 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 75% Implement Engage implementation manager Execute implementation plan Engage IT Integration manager Test order placement and billing 100% * Premature delivery of a proposal is not a sign of progress Purpose: To show how the Pipeline Milestone Worksheet (or a collection of opportunities shown against the sales process steps) can help to identify a performance trend indicating a potential skill issue. Key Instructor Notes: The Pipeline Milestone Worksheet (often automated) helps us analyze a number of opportunities and their progression all in one view. When a common “stall” appears to exist this can indicate a skill issue For example, the following Pipeline Milestone Worksheet™ would suggest a skill issue… (assuming a 6 month sell cycle) Q: What is the potential Skill issue? A: Prospecting – only 3 opportunities on the worksheet Key Facilitation Notes: ASK - What does this tell you? ANSWERS - Very empty pipeline; The only latent opportunity is small. The other two opportunities are active. Based on this, there may be a prospecting skill issue CONCLUSION?: Skill issues can create bottlenecks in the pipeline. In this case the skill issue creates a void! – also not a good situation Key Comment:  Customization  – Ensure the sales process steps and activities are customized for clients Transition: “Let's look more closely at skill issue identification . . ” Purpose: To show how the Pipeline Milestone Worksheet (or a collection of opportunities shown against the sales process steps) can help to identify a performance trend indicating a potential skill issue. Key Instructor Notes: The Pipeline Milestone Worksheet (often automated) helps us analyze a number of opportunities and their progression all in one view. When a common “stall” appears to exist this can indicate a skill issue For example, the following Pipeline Milestone Worksheet™ would suggest a skill issue… (assuming a 6 month sell cycle) Q: What is the potential Skill issue? A: Prospecting – only 3 opportunities on the worksheet Key Facilitation Notes: ASK - What does this tell you? ANSWERS - Very empty pipeline; The only latent opportunity is small. The other two opportunities are active. Based on this, there may be a prospecting skill issue CONCLUSION?: Skill issues can create bottlenecks in the pipeline. In this case the skill issue creates a void! – also not a good situation Transition: “Let's look more closely at skill issue identification . . ” 226

Skill Coaching Guide: Prospecting
Potential Skill Issue: Prospecting Verifiable Outcome or Evidence Potential Reasons Potential Remedial Activities Notes Business Development Strategy (plans) Prospecting / Call logs Business Development Activities, Letters & s Potential Sponsor Letters Not enough “sacred” business development or prospecting time scheduled  Schedule blocks of time or events for business development (i.e. protect their calendar) Low quality of business development job aids and tools Coach to develop improved business development job aids and tools (Look for appropriate value and pain messaging) Inaccurate call lists (poorly targeted audience) Update and check lists Poor execution Conduct role plays and provide feedback Concentrate on focused specific job titles with repetition No follow-up to “leads” or interest shown by prospects Review call logs, tickler (reminder) files and communications Review dropped opportunities and develop a plan of follow-up activities for specific ones Review “Stimulating Interest” module in Solution Selling for Sales Execution™ Purpose: To introduce a coaching tool that can help a manager diagnose the reason(s) for a particular skill issue and offer some remedial activities Key Instructor Notes: Review the table from the left to the right. Read a few examples. This items is not to be taught but rather positioned as a coaching resource. This Skill Coaching Guide can be used in preparation for a skill coaching session. It can be useful in preparing to conduct a GRAF coaching session. (Use the GRAF Coaching Preparation Worksheet) This Guide is straight forward and constructed somewhat like a Pain Sheet®. Key Facilitation Notes: Please refer the participants to the pocket in the back of the manual – there are additional reference cards / Coaching Guides for the remaining skill categories. Transition: “Let’s take a moment and put skill coaching and opportunity coaching in perspective. 227

Opportunity Coaching or Skill Coaching? Characteristics
Problem identified in opportunity  Problem is pervasive across multiple opportunities Short-term, immediate actions Long-term sustained actions Specific to opportunity General Quick results Delayed Improvement Goal: Opportunity Win Goal: Competency Improvement Often done coupled with Opportunity Analysis Often done as a result of Pipeline Analysis Key Question: What is needed by this person at this time? Purpose: To contrast opportunity coaching with skill coaching and skill coaching. Key Instructor Notes: Review each of the rows Select several rows and compare –foe example: results at the opportunity level tend to be immediate (advancing an opportunity) vs. results at the skill level which tend to be long term and sustainable (ability develop value and offer an investment case) To summarize: Long term impact – helps grow the individuals You will notice a longer term impact for skill coaching Short term impact – helps advance opportunities When analyzing a gap – consider application to a specific opportunity or a skill. Transition: “The GRAF coaching model applies to skill coaching as well as opportunity coaching.

G R F A GRAF Coaching Model GAP REASONS FOLLOW-UP ACTION
Understand / acknowledge the GAP between what is wanted or expected and the reality of the situation (Admit the Pain) Understand / acknowledge the REASONS for the GAP FOLLOW-UP to ensure that the ACTIONS were satisfactorily completed (Determine if the GAP has been addressed) Commit to a joint plan of ACTION to address the GAP (What will be accomplished to remedy) Purpose: To review the GRAF coaching model as it applies to skill coaching Key Instructor Notes: In application of the GRAF Coaching Model in a skill situation, the ACTION and FOLLOW-UP are likely to include both short and long-term items to complete. An example of a long-term action might be enrollment in a workshop or education course then measuring the behavior results which result. Transition: “Let’s apply the GRAF model to a skill coaching situation…” FOLLOW-UP ACTION

Exercise: Identify and Coach Skill Issue
Purpose: To practice identifying a skill issues and applying coaching techniques Activities: Form into groups of at least 4 Use one of the assigned cases which follow: Review the Pipeline Milestone Worksheet™ and identify potential skill issues for the seller Consider possible reasons for the skill issue Record notes on the GRAF Worksheet (Gap and Reasons portions) The team should dialogue and agree upon possible actions that might address the skill issue Record notes on the GRAF Worksheet (Actions portion) Discuss possible follow-up actions and dates Record notes on the GRAF Worksheet (Follow-up portion of the worksheet) Group Role Play: Facilitator will play the seller. Each group will play the manager for each part of the case Beginning with the first case, each group collectively progress through the G R A F Model. After completing the first case, the next cases will be reviewed as needed. Purpose: To practice identifying skill issues and then coach Key Instructor Notes: Key Facilitation Notes: Read the bulleted items Review the supporting materials on following pages (GRAF worksheet is next) Have the participants share their experiences and questions after the role play For each group (or the workshop as a whole – see notes below) do the following: On a blank flip chart page create 4 quadrants equivalent to the 4 quadrants of the GRAF coaching model and label them as follows: G (upper left) R (upper right), A (lower right) and F (lower right) Begin the role play by dialoguing with a selected person in the first group to get the Gap admitted. The next person in the group will be the “manager” for the Reasons quadrant Proceed through the next two quadrants with alternate team members taking the persona of the manager. (This gives each of the 4 team members the chance to participate and them must pay close attention to the dialogue and progress made in the preceding quadrant . Be sure to write key findings resulting from the dialogue in the appropriate quadrant. After the first team (case) is complete, continue to the next after a quick debrief. Be sure to encourage / engage the other teams in the debriefs! WATCH YOUR TIME! Note: if time is limited, the instructor may chose to make this an “open” exercise by showing the case information and asking the class to respond to the questions and then hold an open role play where the participants collectively prepare for and execute a coaching session Note 2: the timing of this exercise is critical. Allow the participants 15 minutes to read the material for their assigned case. Each case then is allocated 15 for the coaching session. This totals up to one hour if all three cases are assigned out. Transition: “This exercise will take about 15 preparation time and an additional 15 minutes per review. Upon its completion we will have a short debrief to talk about it.” first step will be to, as a group, fill out the GRAF coaching worksheet . . 230

Exercise: Identify and Coach Skill Issue Case A: “Jack”
Background: Jack is relatively new to your company (7 months), but not new to sales. He prides himself at only talking to “decision-makers.” For each of his opportunities he feels he is connected to people who have assured him that this decision is “theirs-to-make”. They have implied that those above them in the company will “rubber stamp” their decision. Status: Jack has worked hard to create five “good” opportunities. Progress through the pipeline has been reasonable to date. He has Evaluation Plans for each opportunity. He has involved others in your company to provide proof and prepare bid proposals for each opportunity. As a manager, you like Jack’s attitude and provide him plenty of freedom. He says he likes that freedom. You haven’t personally been involved in any of these opportunities. Purpose: To provide case background for the participants Key Instructor Notes: The participants should read the case prior to conducting their exercise Remember they are the MANAGER COACH and the instructor takes on the persona of the case seller Transition: Supporting material for the situation is on the next page.

Case A: “Jack” - Pipeline Milestones Worksheet™ (1 May)
Time in Step OPPORTUNITIES PIPELINE MILESTONES WORKSHEET™ 1 2 3 4 5 6 7 8 Johnson & Company Cradel Industries Health Source Inc. Electronic Data Parts Sonitron A Latent or Active (L/A) 10 20 50 16 Potential sale amount ($K) 9 Plan & Engage 15 Jan 15 Dec 20 Dec 10 Jan 1 Feb Conduct planning activities (new or existing) Create interest Gain initial meeting 0% 18 Diagnose Get pain admitted Diagnose admitted pain and create or reengineer vision of Sponsor Negotiate access to power Confirm dialogue and agree upon next steps 25 Jan 5 Jan 28 Jan 13 Feb Diagnose admitted pain and create or reengineer vision of Power Sponsor Determine evaluation criteria and propose next steps 1 Mar 4 Feb 5 Mar 20 Feb Confirm dialogue and agree upon plan of next steps 25% 30 Propose & Close 12 Jan 15 Feb 15 Mar 25 Feb Execute Evaluation Plan steps 19 Mar 19 Jan 22 Feb 29 Mar Engage appropriate overlay 1 Apr 26 Jan 8 Apr Present solution 15 Apr 16 Feb 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 75% 33 Implement Engage implementation manager Execute implementation plan Engage IT Integration manager Test order placement and billing 100% * Premature delivery of a proposal is not a sign of progress Purpose: To show how the Pipeline Milestone Worksheet (or a collection of opportunities shown against the sales process steps) can help to identify a performance trend indicating a potential skill issue. Key Instructor Notes: The Pipeline Milestone Worksheet (often automated) helps us analyze a number of opportunities and their progression all in one view. When a common “stall” appears to exist this can indicate a skill issue For example, the following Pipeline Milestone Worksheet™ would suggest a skill issue… (assuming a 6 month sell cycle) Q: What is the potential Skill issue? A: Prospecting – only 3 opportunities on the worksheet Key Facilitation Notes: ASK - What does this tell you? ANSWERS - Very empty pipeline; The only latent opportunity is small. The other two opportunities are active. Based on this, there may be a prospecting skill issue CONCLUSION?: Skill issues can create bottlenecks in the pipeline. In this case the skill issue creates a void! – also not a good situation Transition: “Let's look more closely at skill issue identification . . ” The exercise is designed to have the participants “experience” each of the four quadrants of the GRAF coaching model The sequence is as stated in the exercise set-up notes – Gap, Reasons, Actions, Follow-up What appears to be the selling difficulty here? Analysis of this example: Jack appears to be able to skip the Sponsor steps and go directly to Power – this may be good if he is really getting to power, but may be bad if he is entering into evaluation plans and NOT at power. Opportunities are getting stalled or hung up during the Evaluation phase… what might this indicate? It may tell us that Jack thinks he is dealing with Power but actually may not be What else appears to be a trend? Answer: Most of the opportunities are active ones. Jack is likely being used as “column fodder” to fill out a buying matrix Remember, YOU ARE PLAYING the persona of Jack. Your reactions and dialogues should reflect the analysis above. Remember to write notes on the flip chart as the team progresses through the GRAF model WATCH THE TIME 232

Salesperson Name: Coaching Type: Opportunity  Skill  Date of Coaching Event: Opportunity Description: GAP REASONS What is the GAP between performance expectations and actual results? What are the REASONS for the GAP? Expectations: Reasons: Results observed: Who is involved: Salesperson’s perspective: FOLLOW-UP ACTION What FOLLOW-UP will you and the salesperson agree to in order to close the GAP? What ACTIONS does the salesperson agree and commit to do? Specifics of follow-up actions (evidence of completion): Options to close the gap: Salesperson’s commitment: Date for completion: Time for follow-up: Help needed: G R F A Purpose: To provide a worksheet for the exercise Key Facilitation Notes: Members of the team should collaborate in filling out the first step “G”. What is the likely skill GAP identified based on the milestone worksheet? (May use the Skill Coaching Guides as reference) Note: the first member of the team will dialogue the G quadrant – remaining team members pay attention and take notes – the next quadrant interactions will be with a different member of the team. Team should next collaborate on some possible Reasons Assuming the GAP is identified correctly, prepare for the suggestion of some reasons for the GAP (May use the Skill Coaching Guides as reference) Concentrate on the possible Actions for suggestion – prepare in case the seller does not have insight into the situation Prepare possible Follow-up actions with appropriate time-frames Transition: Please read the appropriate case background material on the following pages and as a team prepare the GRAF Coaching worksheet . .

Exercise: Identify and Coach Skill Issue Case B: “Sally”
Background: Sally has been with the company for four years and has been in sales for three of those years. She is an average performer in terms of quota attainment. She has commented several times that “Sales is ‘Luck’ – You have to have the right territory at the right time”. Over the past years you have coached Sally to increase her prospecting activities. She seems to have gotten the message and her pipeline is now the largest in your unit. Status: Sally’s pipeline was “thin” until she increased her prospecting activity and started working with Electronic Data Parts (EDP). She has uncovered a very large opportunity at EDP. She knows that if she can close the EDP opportunity, she will go to the President’s Club for the first time. She calls it her “Big ticket to Maui”. Sally is a hard worker. She is in the office early and leaves late. As her manager, you have been supportive and given her some “tips & pointers”, along the way. You have accompanied Sally on several calls at EDP. Purpose: To provide case background for the participants Key Instructor Notes: The participants should read the case prior to conducting their exercise Remember they are the MANAGER COACH and the instructor takes on the persona of the case seller Transition: Supporting material for the situation is on the next page.

Case B: “Sally” - Pipeline Milestones Worksheet™ (1 May)
Time in Step OPPORTUNITIES PIPELINE MILESTONES WORKSHEET™ 1 2 3 4 5 6 7 8 Johnson & Company Cradel Industries Health Source Inc. Electronic Data Parts Sonitron Tapestry Inc. Vortex Tandy Paper Mfg. A L Latent or Active (L/A) 10 20 50 16 60 85 Potential sale amount ($K) 9 Plan & Engage 15 Jan 15 Dec 20 Dec 10 Jan 1 Feb 8 Dec 6 Feb 31 Jan Conduct planning activities (new or existing) Create interest Gain initial meeting 0% 18 Diagnose 18 Jan 18 Dec 21 Jan 14 Feb Get pain admitted Diagnose admitted pain and create or reengineer vision of Sponsor Negotiate access to power 24 Dec 16 Feb Confirm dialogue and agree upon next steps 23 Jan 18 Feb Diagnose admitted pain and create or reengineer vision of Power Sponsor 5 Jan 28 Jan 20 Feb Determine evaluation criteria and propose next steps 7 Feb 20 Jan 21 Feb Confirm dialogue and agree upon plan of next steps 25% 30 Propose & Close 4 Feb 1 Mar 28 Feb Execute Evaluation Plan steps 11 Feb Engage appropriate overlay 8 Jan 15 Feb 1Mar 17 Feb Present solution 22 Feb 14 Mar Refine value proposition 21 Mar Agree upon transition plan 1 Apr Identify success criteria 26 Jan 12 Apr Create RFP to reflect Office Depot differentiators 20 Apr Engage bid team 25 Apr Respond to RFP or bid (if appropriate) 5 Feb Finalize T’s & C’s 75% 33 Implement 12 Feb Engage implementation manager Execute implementation plan Engage IT Integration manager Test order placement and billing 100% * Premature delivery of a proposal is not a sign of progress Purpose: To provide content to help the participants conduct the exercise Key Instructor Notes: The exercise is designed to have the participants “experience” each of the four quadrants of the GRAF coaching model The sequence is as stated in the exercise set-up notes – Gap, Reasons, Actions, Follow-up What appears to be the selling difficulty here? Analysis of this example: Sally has a lot of opportunities in her pipeline but notice the last date on all of them – what is the trend? Answer: most of the opportunities have not been touched or progressed in a while with the exception of the big one (Electronic Data Parts)… realization? Sally is focusing all of her attention on one major opportunity (Some call this “elephant hunting”) Even if Sally wins the opportunity, her pipeline may dry up due to not fostering the other opportunities Key Facilitation Notes: Remember, YOU ARE PLAYING the persona of Sally. Your reactions and dialogues should reflect the analysis above. Remember to write notes on the flip chart as the team progresses through the GRAF model WATCH THE TIME Transition: (Maybe set up the next GRAF review session, or go to end of chapter and set up next module) © Solution Selling, Inc. • 2007

Salesperson Name: Coaching Type: Opportunity  Skill  Date of Coaching Event: Opportunity Description: GAP REASONS What is the GAP between performance expectations and actual results? What are the REASONS for the GAP? Expectations: Reasons: Results observed: Who is involved: Salesperson’s perspective: FOLLOW-UP ACTION What FOLLOW-UP will you and the salesperson agree to in order to close the GAP? What ACTIONS does the salesperson agree and commit to do? Specifics of follow-up actions (evidence of completion): Options to close the gap: Salesperson’s commitment: Date for completion: Time for follow-up: Help needed: G R F A Purpose: To provide a worksheet for the exercise Key Instructor Notes: Key Facilitation Notes: Members of the team should collaborate in filling out the first step “G”. What is the likely skill GAP identified based on the milestone worksheet? (May use the Skill Coaching Guides as reference) Note: the first member of the team will dialogue the G quadrant – remaining team members pay attention and take notes – the next quadrant interactions will be with a different member of the team. Team should next collaborate on some possible Reasons Assuming the GAP is identified correctly, prepare for the suggestion of some reasons for the GAP (May use the Skill Coaching Guides as reference) Concentrate on the possible Actions for suggestion – prepare in case the seller does not have insight into the situation Prepare possible Follow-up actions with appropriate time-frames Transition: Please read the appropriate case background material on the following pages and as a team prepare the GRAF Coaching worksheet . .

Course Agenda Discuss Key Management Roles and Activities that support a sales process Pipeline Management Standards Manage to Verifiable Outcomes Perform Opportunity Analysis and Pipeline Verification Determine Gap by Sales Unit and by Seller Opportunity Coaching Use Strength of Sale Check Conduct Opportunity Coaching Review Stuck Opportunity Reports Personnel Development Identify Skill Gaps and Conduct Individual Coaching Personalize approach to Development Planning Purpose: Purpose: Place mark progress through the workshop Key Instructor Notes: (should have been introduced earlier in the workshop): Next section and module to be covered Personnel Development– Personalize approach to development planning Instructor Notes: Now that we reviewed and practiced individual coaching. Let’s move on to focus on developmental planning with sellers. Transition: What we plan to cover in opportunity coaching includes… 237

The Challenge with Getting Started
Leverage new information to: Identify opportunity and skills problems Improve forecasting Coach sellers Win key opportunities Implement effectively Manage pipeline BANDWIDTH Executive Focused Management and Coaching Process Purpose: To position how the sales management process should provide focus considering the limited bandwidth of managers Key Instructor Notes: Managers have a great deal of responsibility across an organization They are constantly trying to serve multiple constituencies – multitasking at greater and greater levels. This includes interactions with Other managers Sales executives Senior management Customers And sellers themselves The time demands are enormous, and having a method to help gain focus is critical The structure of the Sales Management and Coaching method will offer fact-based dialogues to focus on real issues and reduce the time wasted. The benefits of Solution Selling® (sales execution and sales management) and sales automation are derived from the structure and focused dialogue models provided. It will provide both synergy and focus. The key to gaining synergy and get the most out of the new approaches is to use the (focused) management and coaching methodologies to attain a state where manage by exception is in fact possible. To enable managers to focus on the key opportunities and skill issues so that lessons learned can become habit – this reinforces concept, and desired behavior necessary . Transition: “As you begin to implement this in your daily routine, a plan will be necessary. Some ideas to assist in building your plan are on the next page . . Seller Manager SALES PROCESS

Management and Leadership Adaptability to Coaching
CAN DO IT CAN’T DO IT Coach, Support and Lead Lead and Coach Counsel and Coach Support and Coach (Attitude) Want to do it (Skill) Might do it (Priority) Just do it Won’t do it Can’t Can’t Priority, Skills and Attitude

What Do World-Class Sales Managers Do?
Interpret and use timely and accurate sales performance metrics Focus on sales process and encourage Sales Online system usage View coaching as a learning, motivation and performance improvement vehicle Focus most of their coaching efforts upon middle performers Purpose: To review characteristics of world class sales managers Key Teach Notes: These behaviors characterize behaviors of top sales mangers from a personal performance point of view as well as high-performance sales teams – getting the best from the team. Review these points – they animate in one-by-one Key Facilitation Points: ASK – In their thoughts on these points and dialogue. Flip chart any additional answers / insights. Reemphasize the points : Focus on key leading indicator metrics – to get in front of situations and provide early remedy Focus on the process and encourage CRM usage – create an environment of factual information Coaching for the most part will gain you miles with your people – principle of leadership – lead don’t push Your biggest ROI on coaching is on the middle performers… Transition: ..let’s take a closer look at the potential groups you may coach . . (SPI, ESR Research, CSO Insights) 240

Getting Started – Managers: Example
First 30 Days Second Month Third Month Prepare for and schedule team / unit meeting to review Solution Selling Implementation . Communicate expectations to unit members: Use of “language” and selected “tools” Proper grading and entry of opportunities into management system (CRM) Format and agenda for pipeline and opportunity reviews Conduct pipeline reviews for each seller: Properly grade and update CRM for 2 key opportunities Coach next-steps for each Set targets for individual sellers: 50% of opportunities graded to standard and CRM updated Follow-up coaching within a week – next steps if required Checkpoint progress of opportunity grading Confirm 50% grading complete Set goal for next 30 days for remaining opportunities to be graded and reviewed Set goals and protect prospecting activities Review all key opportunities ensure they are graded correctly and reflected in CRM Conduct opportunity reviews if issues are suspected – Coach with GRAF Conduct follow-up reviews as necessary Checkpoint and verify progress against remaining 50% of opportunities Begin conducting pipeline reviews using SMC approach and tools Conduct opportunity reviews using SMC approach and tools Emphasize and continue to inspect key verifiable outcomes (Sponsor Letter and Power Sponsor Letter/Evaluation Plan) for all strategic or key opportunities Hold review / refresher sessions for suspected unit difficulties (skill view) Empower each seller to complete a Pipeline Analysis Worksheet Ensure all opportunities are graded properly Establish cadence cycle and agendas Continue to perform opportunity and pipeline reviews using SMC approach and tools Coach using GRAF as needed Begin using cadence cycle and agendas Continue empowerment of sellers to complete Pipeline Analysis Worksheet and coach to fill Gaps Identify and summarize competency improvement areas for each seller as necessary Institute forecasting procedures based on a clean pipeline report Use monthly summaries of cadence calls and pipeline reviews to communicate to next level management – report on exceptions Ongoing Use Solution Selling language / techniques when discussing opportunities, pipelines and coaching Monitor Solution Selling tool usages and encourage further use Emphasize importance of control letters and evaluation plans Emphasize the skill and competence of Vision Creation and Reengineering using differentiators Provide follow-up education / reinforcement avenues for the unit (webinars, conference calls, etc.) Key Focus Areas Common Seller Competency Issues: Specific Sellers & Objectives: Your Competency Improvement Focus: Purpose: To offer a model of best practices focused on managers implementation of the principles and concepts of Solution Selling for Sales Management™ Key Instructor Notes: Become familiar with the bulleted items! Select several of the bulleted items and provide a personal commentary as appropriate The plan is designed to gradually increase the amount of process and tools being applied. The intent is to begin gradually, not to try to do everything all at once. A key point of having a plan is that it defines the eng-point and the necessary steps with which to gain the end point. Transition: “Let’s give you a chance to think through your own implementation……” 241

Exercise: Develop Your Personal Adoption Plan
Purpose: To identify specific activities which over the next 30, 60, and 90 days will support and accelerate deployment and adoption of Solution Selling and the sales process Activities: Consider the following: What goals / objectives will you set for yourself and unit? How will your goals be communicated to the people in your unit? Imagine your unit in three months: How would you like to be conducting reviews? (Form, format and cadence) How will you communicate upwards in the organization How will you identify and remediate possible selling skills? How will you identify and remediate shortfalls in attainment? Think about the people in your unit / team: What across-the-board issues do you deem prevalent? – How will you address them? How will you use opportunity and pipeline reviews to attain your end goals? How will progress to the end goals be measured? Also consider: Challenges identified earlier Unique needs of individuals in the unit – how are they different? Getting started - Example As individuals complete the Getting Started – Managers template on the following page Be prepared to share your plan with the group Notes: Upon return, share these action Items with your manager to ensure understanding and support of your plans. Purpose: To encourage participants to build their own Adoption Plan with this as a beginning point. Key Instructor Notes: Read the bulleted items Show the supporting materials that are on the pages that follow Have the participants share their experiences and questions after the role play If the participants maintained an “idea log” they will want to use their notes from it to help in this exercise You need at least 20 minutes for this. Transition: “This exercise will take about 20 minutes. Upon its completion we will have a short debrief to talk about it.”

Getting Started – Managers: Example
First 30 Days Second Month Third Month Ongoing Key Focus Areas Purpose: To provide structure enabling sales managers to implement the principles and concepts of Solution Selling for Sales Management™ Key Instructor Notes: Use the preceding page as a guide Concentrate on the first 30 days – this is the critical period! Encourage dialogue during this exercise Spot check several plans Allow 20 minutes for this exercise Transition: “Let’s review the impact you can and should have in implementing the management system…” 243

Impact of Management Involvement
Phase I: “Easy” Phase II: “Work” Phase III: “Habit” Effort Desired Results Morale Business Results Purpose: To revisit the impact of management involvement Key Instructor Notes: There are three phases through which a seller moves after completion of a training event and the corresponding business results The EASY phase - during this phase desired business results tend to be lower , and the effort is lower as well. (the effort and results are related!) Morale tends to be high in this stage because the effort is low and the tasks are perceived to be “easy” The WORK phase – during this phase, you will see that there is a significant up-take on the EFFORT exerted – sellers are being asked to take their work to the next level, and they have not yet developed it into the “habit” stage. The mirror of the higher effort, is the down-take of morale. With the higher work effort require, morale will take a corresponding move in the opposite direction – down! The HABIT phase – during this phase, as good skill-based work habits are formed, the effort to execute becomes substantially less. The lessening of effort couples with improvement in the desired results, yield a corresponding u—lift in morale. The challenge lies in bridging the WORK phase which is the most difficult due to the increased EFFORT and decreased MORALE. Coaching individuals through this difficult middle phase is critical in achieving the last, desired phase. Managers can help by using effective coaching to: Lessen the personal EFFORT of individuals through offering “Organizational Support” though effective use of systems which encourage information sharing, collaboration, best-practice support, job-aids, etc. Often accomplished by the CRM system Helping bridge the MORALE Down-take by coaching, mentoring, skills development, encouragement etc. Transition: “The overall philosophy of the Sales Management and Coaching implementation is to help managers help their sellers by making the bridge successful . . “Organizational Support” Shared information, Collaboration “Manager support” Coaching, Mentoring, Skills Development Time

Next Steps Participate in the post workshop assessment:
You will receive an after the workshop with the link below Continue to use Solution Selling® and Sales Management & Coaching eLearning: Take additional modules for areas that need improvement Will be used for reinforcement

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.” KNOWLEDGE (What to do, why to) SKILLS (How to) DESIRE (Want to) HABITS Purpose: To provide a closing message intended to empower the participants. Key Instructor Notes: Position the slide, “We have attempted to describe the buying and selling processes, as well as the underlying principles and philosophies in order to transfer knowledge to you. We’ve introduced to many useful job aids and put you into exercises and role plays in an effort to begin the skill building (continued practice will yield skill). So, we’ve given you those (two circles) but what we can’t do is give you the desire. If you have that desire or find it and approach this methodology with zeal, habits will occur over time that will lead to repeatable, predictable success for you and your organization.” Transition: “We do have some unfinished business… (announce opportunity presentation winners, if applicable)… (have participants fill out evaluations, if applicable)…” Source: Covey, Stephen R. The 7 Habits of Highly Effective People New York: Simon and Schuster, Used with permission. © Solution Selling, Inc. • 2007

APPENDIX © Solution Selling, Inc. • 2009 #1 - Welcome!
Make flipcharts looking like: Quickly review flipcharts #1-3. #1 - Welcome! Sales Management and Coaching Powered by Solution Selling® <Instructor Name> #2 - Based on Solution Selling Philosophy Process view – positional Quality View – Customer View – Strength of Sales Analysis: Pipeline Metrics Volume / Velocity/Quality Coaching: Model Based on “Self Discovery” Diagnosis/Actions #3 – Focus: Opportunity-Win More Short Term People –Win More Long Term Flow: Some Lecture A lot of Exercises/ Dialogues Work-In “Teams” © Solution Selling, Inc. • 2009

Skill Coaching Guide: Prospecting
Potential Skill Issue: Prospecting Verifiable Outcome or Evidence Potential Reasons Potential Remedial Activities Notes Business Development Strategy (plans) Prospecting / Call logs Business Development Activities, Letters & s Lead Letters Potential Sponsor Letters Not enough “sacred” business development or prospecting time scheduled  Schedule blocks of time or events for business development (i.e. protect their calendar) Low quality of business development job aids and tools Coach to develop improved business development job aids and tools (Look for appropriate value and pain messaging) Inaccurate call lists (poorly targeted audience) Update and check lists Poor execution Conduct role plays and provide feedback Concentrate on focused specific job titles with repetition No follow-up to “leads” or interest shown by prospects Review call logs, tickler (reminder) files and communications Review dropped opportunities and develop a plan of follow-up activities for specific ones Review “Stimulating Interest” module in Solution Selling for Sales Execution™ No notes necessary 248

Skill Coaching Guide: Need Development with Sponsor
Potential Skill Issue: Need Development (Vision Processing) with Potential Sponsor Verifiable Outcome or Evidence Potential Reasons Potential Remedial Activities Notes Pain Sheet® Potential Sponsor Letter / Discussion focuses on products and services instead of creating a “vision of a solution” that addresses a business issue  Role play vision creation dialogue (Look for good control and “drill down” questions and well-written capability vision questions) Low quality of need development job aids and tools Coach to develop improved Pain Sheets® Review Sponsor Letter for qualification components Poor execution Conduct role plays and provide feedback Concentrate on focused job titles for repetition No follow-up after vision processing conversation Ask key debriefing questions Set deadline for sending Sponsor Letters / s (ask to be copied or blind copied) Reward well-written letters Restrict use of resources Access to power not asked for and/or not documented Role play “bargain for access to power” dialogue General Review “Vision Creation”, “Vision Reengineering” and “Buyer / Process Qualification” modules in Solution Selling for Sales Execution™ No notes necessary 249

Skill Coaching Guide: Need Development with Power Sponsor
Potential Skill Issue: Need Development (Vision Processing) with Potential Power Sponsor Verifiable Outcome or Evidence Potential Reasons Potential Remedial Activities Notes Pain Sheet® Potential Power Sponsor Letter / Evaluation Plan Discussion focuses on products and services instead of creating a “vision of a solution” that addresses a business issue  Role play vision creation dialogue (Look for good control and “drill down” questions and well-written capability vision questions) Low quality of need development job aids and tools Coach to develop improved Pain Sheets® Review Power Sponsor Letter for qualification components Poor execution Conduct role plays and provide feedback Concentrate on focused job titles for repetition Interview existing clients No follow-up after vision processing conversation Ask key debriefing questions Set deadline for sending Power Sponsor Letters / s (ask to be copied or blind copied) Reward well-written letters No Evaluation Plan or poorly written (i.e. “one-sided” Evaluation Plan” Role play “qualify power and buying process” dialogue Review sample plans Provide resources only for opportunities where plans have been written General Review “Buyer / Process Qualification” modules in Solution Selling for Sales Execution™ No notes necessary 250

Skill Coaching Guide: Process Control
Potential Skill Issue: Process Control Verifiable Outcome or Evidence Potential Reasons Potential Remedial Activities Notes Evaluation Plan Go / No Go Step Completion Letters No Evaluation Plan  Role play “qualify power and buying process” dialogue Provide sample Evaluation Plans Provide resources only for opportunities where plans have been written Evaluation Plans are not maintained and updated during execution (i.e. lose momentum and focus) Review use of Go/No Go Step Completion Letters / s Incomplete Evaluation Plan or poorly written (i.e. “one-sided” Evaluation Plan) Review Evaluation Plans for critical elements (operational, transition and financial proof) Examine timing and sequence of events within the plan Check balance of mutual activities between seller and buyer Evaluation criteria is negotiated with someone other than Power Sponsor Develop a “refocus” plan that minimizes commitments / resources devoted and attempts to get the Power Sponsor involved in the evaluation process General Review “Buyer / Process Qualification” and “Elements of and Evaluation Plan” modules in Solution Selling for Sales Execution™ No notes necessary 251

Skill Coaching Guide: Negotiating and Closing
Potential Skill Issue: Negotiating and Closing Verifiable Outcome or Evidence Potential Reasons Potential Remedial Activities Notes Evaluation Plan with progress documented Go / No Go Step Completion Letters Value Analysis Negotiating Worksheet Get-Give List Not all of the events within the Evaluation Plan are complete (i.e. the opportunity may not be closeable)  Review all events within the Evaluation Plan for completeness Review Go / No Go Step Completion Letters to ensure progress was agreed upon Poor planning and execution of earlier process steps hindering later process steps Review value cycle or value analysis for compelling reason to take action Review Negotiating Worksheet to review “stands” developed Review Get / Give list Discuss timing of the intended close Role play negotiation scenario Have manager negotiate the close Using discounts as a lead-in to negotiation (too early) Review need to maintain margins on opportunity Review value analysis indicating a reasonable return (i.e. no need to discount) Include “reach final agreement” as event in the Evaluation Plan General Review “Elements of and Evaluation Plan” and “Reach Final Agreement” modules in Solution Selling for Sales Execution™ No notes necessary 252

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Credit, Copyright, and Contact Information Trademark Notice: The following trademarks and service marks are owned by Sales Performance Holding Company.

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