Moe Revenue

No One Will Need to be Good

“…dreaming of systems so perfect that no one will need to be good“

–T.S. Eliot, from The Rock

There was a time in the evolution of computer when this concept was believed to be just a few clicks away. Well, decades later, we are still a few clicks away but the journey has been productive. E-commerce has certainly ‘evolutionized’ B2C sales models with some crossover into B2B segments involving commodity items like airline tickets, office supplies, etc. However, if you are in B2B and not positioning your business as a commodity player, then it’s back to work on your Revenue as a System (RaaS) program. A systems level approach can certainly help good employees improve performance but we are still a few clicks away from “so perfect no one will need to be good.”

You don’t know what you are doing

Deming said it best…“If you can’t describe what you are doing as a process, you don’t know what you are doing.”

Most CEO’s understand Deming’s wisdom and apply this concept to many aspects of this concept business …except in sales. Sales is typically viewed as an independent variable of the business and not subject to the same level of Deming development or accountability.

Sales Revenue System 2.0 changes that model and enables CRO’s to understand how sales is a “system-level activity” just like any other business system (Lean manufacturing systems, global distribution systems, ISO 9000 systems, etc.). 

The four core processes of a closed-loop revenue system deliver:

· A “bankable” forecast with a complete audit trail:

· A structured go-to-market model with shorter sales cycles.

· Results-based incentive plans to drive business growth.

· The critical tasks for identifying and selecting real sales talent.

The end result is the sales function becomes a systems-level cornerstone of the business.

Defining your Differentiating Value – Where do I start?

The first step moving from a features & benefits-based, go-to-market model to a Differentiating Value (DV) approach is defining your Differentiating Value. In B2B revenue models, the first question to ask is: How does my product / service improve the customer’s business? Forget the traditional quality, service and support pontifications. In B2B, quality, service and support are simply expected and all three are claimed by every competitor anyway so you get no differentiating points on these issues.

Look at the transaction from the prospect’s world and define how their overall performance is improved by having your product / service. That is your Differentiating Value and you can never have too much DV. Most prospects are already buying from someone else today so the more DV-based improvements your products deliver to the prospect’s business, the better platform you have for revenue growth.

The question always comes up…“What if they are happy with a competitor’s product and there doesn’t seem to be a benefit to making change?” This happens every day in sales. Our observation is one of two situations typically applies. If your product delivers substantial, compelling DV to your market and the sales rep has asked all the Critical Qualifying Questions for Motivation but the prospect is not responding, your rep is 1.) not connecting with the emotional buyer or 2.) the prospect is not a ‘fit’ for your DV. Assuming the prospect is not a fit for your DV, it is better to know that as early as possible in the sales cycle so you don’t waste time pursuing and forecasting dead end deals.

Do I Need a Revenue System?

This is a frequent question that comes up in discussions with CEO / CRO level executive groups today. The answer is based more on the individual company than on a revenue system model. Over time, executive teams typically focus on developing several key systems for leveraging their overall performance. These can range from a streamlined product development process like the 3M model to a global sourcing and/or distribution network like John Deere has today. Developing world class systems in any business can certainly produce higher-level results plus, in the end, companies discover these ‘systems’ are more economical to operate than their disconnected counter parts

The interesting part of these discussions is no executive has ever said we have a world class sales revenue system. When asked, they all site almost endless examples of disappointments ranging from failed campaigns to failed hires.

So, the answer to the question is more about “how long can you wait?” before deciding to make your revenue system a core asset of the business just like the other world class systems you have in place today. The bottom line is a closed-loop revenue system will outperform and be more economical to operate than the alternatives.

CRO and ACT!

Part of our Mission is to deliver the tools, processes and systems C.R.O.’s need to succeed. Here is a recent development that has been a frequent topic of discussion with our C.R.O. clients.

One of the process benefits of the 4 Aces forecast model is objective clarity about where you are in the qualifying process meaning what has been completed as well as what remains to be done. We felt CRO’s would benefit having this information available on a real time basis through a CRM system so we developed an ACT!-based application package to demonstrate the process. This package includes customized fields for the Critical Qualifying Questions covering Motivation, Money, Methodology and Market with rep fields for entering updates including forecast probability changes. The C.R.O. can ‘audit’ any forecast item updates as well as receive immediate email notification of specific forecast changes – up or down.

This capability can also be installed in most CRM systems so please feel free to contact us with a specific request. We can also work directly with your CRM support specialist to develop this capability.

E-book Now Available on Amazon

Folks have asked about the availability of Sales Revenue System 2.0 as an e-book. The Kindle edition is now e-available through Amazon.com (click here).  Price is half the print price ($9.95) but the Kindle format does not support color so the system charts are presented in black & white.

Thanks for your patience and enjoy the e-book edition.

The “Go to Market” Process for CEO’s

As we start 2011, one item clearly stands out – the recession has helped senior executives (CEO, CRO, President, etc.) of surviving businesses understand at least one important concept – your ‘go to market’ process is more strategic than just hiring a few sales people, going to a couple trade shows, changing the web home page and doing some occasional advertising. That worked before the recession when even the bad companies were able to grow and make money…but not today.

Companies have discovered their “go to market” process cannot be left to independent interpretation. Having regional or district offices introduce, position and sell your products/services in totally different ways has proven to be costly, inefficient and unproductive. The go to market process starts with the age old 20 second intromercial and runs through how you position your offerings to qualify, forecast and close new business.

If you feel your go to market process is rock solid, ask you executive team to give a 20 sec intromercial at the next team meeting. If the executive team is not on the same page about how they introduce the business, the sales team will not be there either. Random revenue processes are seldom part of any successful plan or strategy.

2011…The Year of Forecast Training

As 2011 starts, we are seeing signs of economic improvement and companies moving to “restart” their revenue growth process. Our observation is sales managers are calling about sales training and Chief Revenue Officers (CRO’s) are calling about Forecast Training. Here’s why – CRO’s know that when they have prospects objectively positioned in their forecast process (4 Aces), they also know where they are in the sales qualifying process. This becomes a “2-fer” for the CRO in terms of improving both forecast accuracy and shortening sales cycles. The forecast audit trail reviews they conduct with their sales people are where the real sales training occurs…and CRO’s know that already.

Our Best Wishes for a Great Revenue Year!

Hiring Sales Talent in 2011

Now that companies are seeing enough economic recovery to start upgrading/expanding their sales staffs, the question of “how do we identify real sales talent” is back on the agenda. So, here is the game plan summary for getting the right talent for your sale.

The first step is to define both the sales cycle and the specific role talents and behaviors needed. This profile will be different for both hunters and farmers in your business so don’t try to mix the two. There is no “one size fits all” profile.

Second, select a web assessment tool for determining applicant DNA fit with your requirements. There are a number of web products available that essentially just confirm a pulse is present. Typically they report the person is 80% qualified for your position, etc. What does that say? Can you accept 80% sales performance? If you are using one of these, you are risking a bad selection decision. Contact us for better options – there are other options.

Third, make sure your initial interview simulates a typical sales call with a fairly cold, disinterested prospect. That is where all orders start today so you need to see how candidates perform in the real world and not in a soft interview setting.

I won’t be repeating this until Dec 2011 – good luck with your hiring programs!

Quick Recipe for Success

One of our local clients manages a CEO Roundtable for both executive and business development. As part of his program, he includes brief updates on development strategies and wisdom. One he recently distributed caught my attention as companies are finalizing their 2011 business plans and I wanted to pass it along.

Here is Gary Brattland’s Recipe for Success:

1. Hire great people and place them in jobs that fit their strengths, skills and passions.

2. Get out of their way. Provide people with the freedom to do kick-ass work.

3. Provide regular, actionable feedback.

4. Inspire people with goals that are more meaningful than making the company more money.