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Rethinking Sales Pipeline Management
Rethinking Sales Pipeline Management Jason Jordan, Vice President & Partner Vantage Point Performance Ancient Greek ‘Scientists’ (a.k.a. Observers) Fun with the Ancient Greeks Socrates Everything revolves around the Earth! Slide 3 Fun with the Ancient Greeks Anaximenes Everything is made of air! Slide 4 Fun with the Ancient Greeks Democritus There are atoms! (kind of) Slide 5 When Common Sense Is Your Guide… Slide 6 Sales Management: The Neglected Science Sales Management: Confined to Common Sense Now the Sales Pipeline What is a Pipeline? Slide 10 How Is It Used? Common Management ‘Rhythm’ Su M Tu W Th F Sa How Is It Used? Common Management ‘Rhythm’ Su M Tu W Th F Sa How Is It Used? Common Management ‘Rhythm’ Su M Tu W Th F Sa How Is It Used? Common Meeting Agenda Walk me through your opportunities Common Meeting Agenda… Common Meeting Agenda Walk me through your opportunities okay It Would Appear that … Sales Pipeline = Important Stuff Just One Problem… Common Sense Is at Work Common Sense and the Pipeline (4 Easy Choices) Choice #1 Which is better? BIG PIPELINE -- or -- small pipeline Slide 19 Common Sense Says… BIG PIPELINE small pipeline Slide 20 Real-World Counterpoint Slide 21 Shape Determines How Big It Should Be in Sum Close Rate = 20% $10 million $35 million $2 million $10 million $20 million $2 million Common Sense Is… BIG PIPELINE small pipeline Slide 23 Choice #2 Where can a manager have the biggest impact on rep performance? HELP QUALIFY THE DEAL -- or -- HELP CLOSE THE DEAL Common Sense Says… HELP QUALIFY THE DEAL HELP CLOSE THE DEAL A Typical Sales Pipeline Slide 26 The Perfect Sales Pipeline Slide 27 Bad Deals = Wasted Effort Slide 28 The Hard Truth Coaching has High Impact • Influence needs and Criteria • Dislodges Bad Deals Coaching has Low Impact • Fate Often Already Decided • Driven by Fun and Forecasting Recall Our Rock Star … Slide 30 The Superstar’s Secret Sauce A Balanced Pipeline Management Approach Su M Tu W Th F Sa Late Stage Deals New Opportunities Late Stage Deals New Opportunities Slide 31 Less Junk = Less Funk Slide 32 Less Junk = Less Funk Slide 33 The Impact of Early-Stage Intervention Training Conducted September 2010 Win Rates 71% 49% 37% 54% 37% $ of Deals # of Deals 25% Q1 2010 Q1 2011 Q1 2012 Common Sense Is … HELP QUALIFY THE DEAL HELP CLOSE THE DEAL Choice #3 What should be the primary focus of pipeline meetings? THE DATA -- or -- THE REP Slide 36 Senior Leadership Says… THE DATA THE REP Slide 37 Observed: Constant ‘Inspection’ of the Pipeline INSPECTION •Focused on the data • Scrubbing • Extracting •Short-term (or backward) focused •Encourages sales rep compliance •Required by manager, but low-value for rep Slide 38 Needed: Coach Reps through the Opportunities COACHING • Focused on the rep • Builds skills throughout deal pursuit • ‘On-the-Job’ Coaching • Drives better near-term execution • And has long-term impact • Very time-intensive, but high-value for rep and manager Eye Opening Survey … Perceived Volume of Coaching Hours per Month Sales Manager <3 7% 3-5 55% >5 38% Eye Opening Survey … Perceived Volume of Coaching Hours per Month Sales Manager Sales Rep Gap <3 7% 56% + 49% 3-5 55% 32% - 23% >5 38% 12% - 26% Senior Leadership can be (can be, sometimes, perhaps, maybe a wee little bit) INSPECT THE DATA COACH THE REP Slide 42 Choice #4 What is more important to monitor? HOW THE REP IS PERFORMIN G -- or -- WHAT THE REP IS DOING Slide 43 Common Sense Says HOW THE REP IS PERFORMIN G WHAT THE REP IS DOING Slide 44 A Little Research... 306 Sales Metrics Revenue Market Share Pipeline Size Call Outcomes Quota Achievement Customer Satisfaction Segment of Customer Ramp-Up Time Territory Coverage New/Existing Customers Deal Size Share-of-Wallet Up/Cross-Selling Tool Usage Coaching Time Allocation Call Type Skill Level Customer Retention New/Existing Product Call Volume Prospect Type Process Usage IT Investment Account Plan Completion Training Investment Number of Accounts Training Type What Can You Really Manage? The outcomes of multiple objectives and cannot be “managed” Objectives that can be influenced, but require some type of ‘consent’ Salesperson and manager activities that we can proactively direct and manage Why this is a Breakthrough... Cause and Effect New Customers Sales Activities - Individual decisions that are highly manageable Why this is a Breakthrough... Cause and Effect New Customers Sales Activities - Individual decisions that are highly manageable A Predictable, Manageable Chain of Events Sales Management’s Critical Task Identify the Results you want to achieve Select and quantify the BEST Objectives to obtain those Results Link the Objectives to relevant Activities, then measure/manage the Activities relentlessly We Live in an Outcome-Focused World Common Sense Is… ATTEND TO HOW THE REP IS PERFORMIN G ATTEND TO WHAT THE REP IS DOING Slide 52 In Sum… 1. Smaller Can Be Better 2. Focus on the Front 3. It’s about Improving the Rep 4. You Can Only Manage Activities Parting Thoughts… Vantage Point: The Science of Sales Management Focus On Sales Management Thought Leadership through Research McGraw-Hill 2012 Vantage Point: The Science of Sales Management Sales Methodology Neutral Challenger® Solution Selling® SPIN® Selling Strategic Selling® Target Account Miller Heiman Home Grown Selling® Process The First Sales Management Methodology Metrics Strategy Tools Skills The Company We Keep... Go Be Extraordinary! Help us. Use the mobile app to rate and review this session. • Open the app on your phone • Tap “Agenda” • Tap on “Rethinking Sales Pipeline Mangement” • Tap on the check-in tab and check-in. • Go back into the session and leave a review and a rating. Thank You
