I enjoy walking around the city streets in China…

In 1994, my earliest memories of China are of men walking around in green uniforms, thousands of people riding to work on their bikes, and the faces on the people were plain, constrained, almost lifeless.

 

Today, walking those same streets, I see people dressed in a variety of colours and styles, people smiling, eyes wide open and moving very fast. A lot has changed. You could say there’s still a lot more improvement required, and yes that’s true. But let’s not forget that for many people in China’s cities today, their world now looks a lot more promising and exciting than it did 20 years ago. As I watched people in the city streets of China today, my heart glows at the thought that for many of them, their life is now better than it was before. Today many, many people in China are looking forward to their future.

 

Shaun Rein has just published his second book, “The End of Copycat China”. And if you have not read his earlier publication, “The End of Cheap China”, then I’d suggest you buy both for context. Shaun’s latest book is a valuable read because it helps us to learn and understand the human colour behind the numbers, and expose the underlying currents at the core of what’s driving innovation and new ideas in China today.

 

I think Shaun and Albert Einstein would have enjoyed a coffee with each other. Had they both lived in China today, they would no doubt have an endless pool of stories to share and enjoy because I think they would both agree that in China today…”not everything that counts, can be counted, and not everything that can be counted, counts”.

 

Beyond all of the government and private sector plans which will no doubt help, I think we should all share in the importance of improving our knowledge of people across all cultures, in order for our collective societies to benefit. These people to people relationships are so important, and this is why I find Shaun’s latest book a terrific read. “The End of Copycat China” provides terrific insights and ideas on how we can all contribute. I hope you will enjoy it as much as I do.

 

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Implementing Challenger™- Can an average sales person become a Challenger?

Talent Management lessons learned for Sales and Human Resources leaders.

Over the years I’ve been involved in a number of projects which included making use the Challenger approach published by the Corporate Executive Board (CEB). The initial projects were started soon after the white paper on “Challenger ™” selling was published in 2009 so a lot of the methods used were custom developed. Today the range of Services from CEB’s Sales Effectiveness Solutions team address these issues and can help clients with the change management actions required. Details of the client and location are not included in the observations below for confidentiality reasons.

The problem:

A team of 23 sales people and 4 managers were underperforming against sales targets, and the problem had existed for quite some time. The team’s sales results were flat for 3 years in a market which was expected to grow 10%+ per annum. We were bought in by the executive sponsor to diagnose and recommend an approach to address the issues. We undertook an analysis of each individual, focussing on their professional history, results over 3 years, 360 degree feedback, sales effectiveness within their current pipeline and account planning. Issues existed across just about every important topic ranging from internal alignment, key account management, selling skills, coaching, performance management and front line sales management. As we worked towards a view of each individual we used the data to categorize each person according to the 5 sales person profiles published by CEB. Our conclusion was the team consisted of 3 challengers, 2 lone wolves, 5 hard workers and 13 relationship sales people*. All 4 of the managers were relationship oriented, and none demonstrated the innovation and coaching skills required to land big deals. The 2 lone wolves who were recent hires, had entered the organization as challengers in our view, but due to their discomfort with the organizations culture and leadership, they had distanced themselves from interacting with others and morphed into lone wolfs. The 3 challengers were the only individuals ahead of their YTD sales revenue targets.

Actions taken:

We had no choice but to set expectations with the executive sponsor that i) this was going to take at least 12 months to fix; ii) the sales team had no chance of making their full year numbers and iii) we needed to start by replacing the sales managers, all of whom were long time employees.  This generated many long and difficult executive discussions, but the problem was so clear and substantial there was little else we could suggest. The CEB Challenger™ research and evidence was critical to explain the issues.
With approval in principle we proceeded with a turnaround plan which in the end took 2 years to reach the stage where more than 50% of the sales team were ahead of plan. The Challenger™ Sales model was the central theme of the new sales model and we focussed heavily on embedding this thinking in all talent management activities, cross team collaboration and account strategies. We replaced all the sales managers, hired or transferred in 10 new sales people. We took special actions to retain the 3 challengers and convert the lone wolfs to challengers. We succeeded in retaining all but 1 of these people.
With new sales managers we drove efficiency and effectiveness changes, and cross-team collaboration to a level of accountability the division had not experienced before.  We deliberately selected new sales managers from outside of the organization with proven track records in coaching, and the capability to innovate with customers. The on-boarding of the sales managers was a critical success factor and it was through these people that we drove the change.

Outcome:

We didn’t set world records, but the brand value of the division substantially improved. People from other groups started applying for sales roles in this division. The average revenue per sales person increased by 1.5X after two years; and approximately 50% of the sales team achieved at least 100%+ of their annual sales targets.

Tips & Lessons learned:

The following lessons learned are not intended to offer a comprehensive answer to every action an organization should take. This is a list of the actions we took which were critical to the result or, that we wish we had approached in a more comprehensive manner on this specific project.
  1. Any project which involves driving sales growth starts with a clear executive decision and the front line sales managers are a key part of the strategy and solution. If the sales managers need help, then this is priority number 1 for the project. The chapter called “The Manager and the Challenger™ Selling Model” in The Challenger™ Sale* book published by CEB provides terrific insights and evidence to support this point.
  2. We created our own capability profile of a Challenger™ sales person inside this division. Broadly we defined the management fundamentals every sales person should use to maintain sales disciplines; the emphasis on teaching, tailoring and taking control as the basis for selling; selling new ideas to customers, and the skills required to be an effective collaborator for big deals.
    The vocabulary we used was aligned to HR job descriptions and competency profiles. We made the topics listed in this capability template the criteria for hiring, individual and group education. A lot of the methods and dashboards we developed were tailored to this division because the rest of the organization was growing efficiently.
  3. Selling the promise of gain internally and obtaining executive sponsorship from the divisional leader, the HR leader and product management was critical. We used the CEB published research material as our evidence. It became very obvious to the executive sponsor early in the project that the success of the transformation would require substantial changes in accountabilities and value delivered across the entire division and not just the sales team. We celebrated individual progress every month at team meetings, and attempted to make the Challenger™ sales model a key element of the team’s thinking and culture.
  4. The Challenger™ model scales across both complex and simple sales. For those sales considered simple, the demand generation team has a pivotal role to create a portfolio of ideas and value which appeals to multiple customers. Our account plan and customer loyalty metrics changed to include insights on strategic issues, how we could help and the return on investment from our ideas.
  5. It is possible to train people to become Challengers, although those who are focussed relationships with customer decision makers who also believe this is important proved to be the most difficult to change.
    For annual planning purposes the 5 sales person profiles are helpful when attempting determining sales territories for simple and complex selling.
The quality of the insights and ideas in the Account plans generated by the team in year 2 were one of the most personally satisfying outcomes of the project. At that point I believed we had changed their behaviour.

Recommendations if you are planning to address similar sales talent issues:

  1. If you have systemic performance issues, then be careful to accurately diagnose and separate the root cause issues from the symptoms. I have found CEB’s Anatomy of a World Class Sales Organization* is an excellent template to use for this purpose.
  2. Once the changes are launched, the Sales manager should create a personalized skills development and coaching plan for every sales person to help them through the Sales Model changes. Group education is unlikely to address all of the issues.
  3. All new product launches should be aligned to the Challenger™ Sales model and vice versa. New products are tipping point opportunities to create business breakthrough ideas for customers. The Challenger™ sales model is a key lever to help average performing sales people to participate and drive sales of new products.

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Implementing Challenger™- Are you ready to place that Bet?

The Business case for Change: Lessons learned for the Sales Leader

When the Challenger™ insights are applied correctly, the upside impact on a company’s growth strategy can be significant.
Every company’s circumstances are different, but at some point a Sales leader needs to ‘place a bet’ on which brand and selling techniques they will use to develop their sales organization. In my view you should place that bet on the Challenger ™ thinking from The Corporate Executive Board (CEB). The purpose of this article is to provide some lessons I learned when placing that bet, to assist the sales leader who is preparing the business case for a Challenger ™ project.

Is there a Case for Change?

Yes. But implementing a Challenger™ project is a big bet, so the business reasons need to be compelling. I don’t doubt you have a lot of data which highlights your issues and identifies the case for change. But this is a strategic decision, and if you are accountable for the numbers then the CEO will rely on your knowledge, judgement and willingness to make a personal big bet on this project.

Business case and executive alignment

Execution is everything but there are some lessons I learned during the planning phase which on reflection made the execution a lot easier. And I’ve included some thoughts which after reflection I wish we had placed a higher priority on. You might conclude many of these are common sense. They are. And they are critical.

Business Case:

  • The business case and any working capital investments need to be justified. If you believe the anticipated sales growth is clear, then a straight line revenue growth and a lower SG&A % over a defined period of time may be possible. My own view is a ‘Real Options’ financial model is more realistic because the quantified outcomes, tactics and how long it will take will change over time. You will learn as you implement, and new organizational ideas will surface so you need the support of the CEO and CFO when this occurs. As long as the financial baseline you are committing to is achievable, then it’s better to be honest and realistic when setting expectations. Define the actions and milestones in return for a committed budget for a committed period of time and a committed review cycle. And above all, focus on measures which demonstrate improvements in the average sales person’s results. This is where the biggest impact exists.
  • You may need to convince the leadership team that a strategic change in the allocation of working capital is required. For most companies I know, the working capital for a sales organization is dedicated to the training and implementation of sales productivity systems (e.g. CRM, Forecasting, pipeline management). Given this, and the resistance of the broader leadership team you may need to use data about the changes in buyer behaviour to explain why you believe allocating working capital to help sales people to develop original and authentic ideas for their customers is now as important if not more so. Get ready for a debate.

Executive Alignment

  • A Challenger ™ project will not just impact the sales organization. It will impact your entire organization so have the right executive sponsors in place to support the changes and drive cross team collaboration. It’s quite possible your organizational dynamics and culture will change. I’d have your brand strategy and HR leads involved to ensure you manage the changes and ensure everyone across the organization benefits from the project.
  • As the executive sponsor, your messages and actions will be critical. Define the business priorities and your sales manager’s commitments, make these transparent to the organization. As input to defining these commitments, read and re-read the Manager and the Challenger ™ Sales model in “The Challenger ™ Sale”* book. Make sure your sales managers are ready and armed with the skills to implement the recommendations.

Implementation:

  • If you are implementing Challenger ™ ‘mid-flight’, then start small, prove it, and accelerate to scale. Don’t be afraid to run multiple, sequential pilots across sales teams, deal types and customers if you have a large team.
  • The Challenger ™ Sales Model can be applied to both complex and simple sales. The sales people should take the lead to generate the original and authentic ideas for key account customers and big deals. And the marketing team should take the lead to generate the customer insights and value statements for the sales teams involved in selling repeatable solutions to multiple customers.
  • The biggest improvements are likely to occur with your average performing sales people. Your sales managers need to be armed with the right coaching tools and framework to encourage this change. The adoption by sales people to teach, tailor and take control will improve their capabilities during the sales cycle in 4 areas:
    1. The research, insights and planning by  the sales person should be focussed on developing an original and authentic ideas which they can proactively market to their customers;
    2. Presenting the idea proactively will encourage the sales person to prepare and think deeply about their customer’s environment and the competition;
    3. Being humble enough to realise they may not have all the answers, a sales person should be encouraged to brainstorm and further strengthen the idea with the client’s input. This creates a competitive advantage;
    4. You may uncover a new ‘last step’ in the sales cycle for sales people….to fully integrate this approach with the rest of the organization I believe the sales team should be accountable to document the lessons learned after the contract is  delivered. These insights can be harvested by the Product R&D and Marketing teams to provide a rich vein of insights for cross team collaboration. But you might find the greatest untapped potential is when these insights are used to strengthen the link between your company’s corporate strategy and real evidence on the market’s direction based on why and what your customers are buying. Just imagine what your world might be like if your product R&D organization had 10 buying and selling insights on every customer you sold to last year?
If teach, tailor and take control are selling capabilities you want all your sales people to adopt, then be ready to redefine the measures you use to define a sales person productivity.

Possible follow up actions:

  • Make sure you have the full support of your executive leadership team and your front line sales managers have formal commitments in place to support the project.
  • I would not hesitate to get CEB and the Sales Effectiveness Solutions team involved to help you with ideas and insights to build your business case. They have a lot of evidence as the number of adoptions increase, and potentially can assist with the implementation.
  • Be ready for a strong response from your competitors.

in Challenger Sales / Selling / Watermark Insights

5 Uncommon Leaders to inspire your thoughts about Selling in Asia

I’ve got 5 uncommon leaders who inspire and influence how I think about the business of selling.  At first glance they may seem counterintuitive as advisors to a sales leader, but to me their thinking is invaluable. Selling is part Art and part Science, it’s about being Competitive and at the end knowing how to shoot the Winning Shot.  So I often ask myself if these people were in my shoes…..what would they recommend?

1) Confucius

Why? He was an incredibly wise philosopher. He provided great advice to leaders about the importance of the family unit, how to cultivate societies, and how to think about the management of large communities. In Asia, his thoughts and quotes are embedded in the direction of many societies. Applying the guidance from Confucius the philosopher helps me to be consistent with the values of people and the societies I work with.
How does he influence me? He reminds me of the importance of making recommendations to my clients which have a positive outcome for their organization and the larger communities they serve.

2) Leonardo Da Vinci

Why? His passion exposed me to the value of the Art of Science and the Science of Art. His work on the Vitruvian man has inspired me for years.
How does he influence me? Leonardo reminds me of the importance of insights as a foundation for creating original and authentic ideas.

3) Albert Einstein

Why? I am inspired by Einstein for his flexibility as a thinker. He uncovered ideas (e.g. the theory of relativity) with imagination and mathematical logic that resulted in breakthroughs for us all.
How does he influence me? One of his famous quotes sums it up nicely: “Not everything that counts can be counted, and not everything that can be can be counted, counts” is applicable when it comes to thinking through what is the right recommendation for my customer?

4) Bruce Lee

Why? To me he was the ultimate 1 on 1 fighter in close combat. And he was versatile, often referring to running water as a symbol of how to engage in competitive combat.
How does he influence me? He’s a great Asian example of the skills I need to compete. He reminds me I don’t need to permanently damage the competition, but rather focus on beating them through the lenses of my customer. He reminds me that at times in a competitive battle, life can get rough. So I need to be fit, healthy and alert because you just never know what your competition might do next.

5) Michael Jordan

Why? Michael was the ultimate game winner. A few seconds to go in the game, he’s a long way from the basketball hoop where he’s got 3 guys defending him, he shoots, and the result?… “Nothing but net”! The guy was incredible for game winning clutch shots. Photos of Michael in the air appear as if he could defy gravity. Well, he did on the scoreboard, and he won games from impossible situations.
I don’t think Michael won on instinct, rather I think he had anticipation and accuracy honed from hours and hours of work-outs, practices and an intense competitive spirit.
How does he influence me? Michael cracked the code on everything it takes to be a game winner. Yes, he was talented, but he taught me to that to win my client’s business, against the odds, takes an intense desire to compete and win, combined with practice, practice and more practice.
This team of 5 people are incredibly valuable as I think through a sales opportunity or strategy, and complement the advice I get from people I know. By tuning our minds into how these people think, we are able to leverage from their experiences that will be valuable to anyone.
We know a great sales leader can positively influence the overall sales results of their team by up to 18% per annum. And we know this requires a sales leader to be an expert at effectively addressing any internal challenges, unblocking stalled deals, and helping sales people to create breakthrough ideas for their customers…often using out of the box thinking. We are only what we think we are. And that’s why I often reflect on these 5 people, and what they would do…..if they were in my shoes.
So who’s on your team of inspiring leaders? I’d enjoy reading and learning from your perspectives.

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Future China Global Forum 2014: Singapore 17-18 July | Business China, Singapore

My number 1 learning investment for Insights and Perspectives on China.

I have a huge appetite for learning about the People’s Republic of China. I am stunned at the speed of change, as well as the magnitude of the challenge facing the leaders and the planners in this country. In many instances I feel a deep concern for these people because for much of what they need to address there is no historical precedent they can use for guidance which matches their conditions today. Just take the Water risks in China as an example. Where in history have we ever had to provide a supply of clean water to such a large population in a location where clean water is so scarce? Or how to provide the right economic and human conditions to manage such a large population migration from rural to urban areas?
This conference will provide you with a rich set of perspectives and awareness of the challenges. And as a result I’ve always found this a healthy reminder  that if you wish to succeed, not only is it important to understand a market, but also to ensure you have sufficient knowledge to know how you can usefully contribute to the greater society you wish to serve.  Nowhere else have I found I can gain such quality insights about China from well informed speakers who understand the market conditions and the thinking. I do not expect leave this conference as an expert on any one topic, but my appreciation for the underlying issues  and how I can contribute will be much clearer.
For those of you interested in attending a more complete explanation and registration is available from the FutureChina website: “The FutureChina Global Forum is the only Forum going beyond the usual discussions on China’s economic evolution, or on what is happening among the different government circles in Beijing, to provide genuine insights into how China is evolving, the key drivers of change and how they interact with one another. Featuring analyses and insights from an eminent and diverse panel of more than 50 speakers, the fifth edition of the FutureChina Global Forum aims to equip delegates with an insider’s view on China’s course in the upcoming period and provide insights required to ride the waves of China’s reforms.”
If you have a responsibility to provide navigational advice for your company in the People’s Republic of China, I highly recommend this forum to you. And if you do attend, I look forward to the possibility of meeting and sharing ideas with you.

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The Challenger™ Sale

Authors: Matthew Dixon and Brent Adamson

© The Corporate Executive Board Company, 2011, All rights reserved

This is without question the most valuable piece of research I have ever read about selling.
In the books Forward by Professor Neil Rackham in 2011 he writes: “It’s too soon to know whether this is the breakthrough we’ve been waiting for. Only time will tell. On the face of it, their (Corporate Executive Board’s) research has all the signs that it may be game changing. First, like other examples, it flies in the face of conventional wisdom. But we need more than that. Many crazy ideas violate conventional thinking. What makes this different is that, like other breakthroughs, once sales leaders understand it, they say, ‘of course! It’s counterintuitive, but it makes sense. I should have known.’ The logic you’ll find in The Challenger™ Sale leads to the inescapable conclusion that this is very different thinking and it works.”
Since that time I have practiced and applied the “Challenger™ Sale” tactics with sales teams I led.
Based on this experience the case is proven, it does work. And the results can be dramatic.
I’ve witnessed sales teams producing +30% overall productivity improvements year on year. I’ve seen big contract win rates increase from 20% to 50%+, and contract $sizes increase by over 100% year on year. The results I’m referring to were produced by sales teams in Asia.
And which sales people benefit the most? Yes you are right, it’s the average performers not the top performers. In many instances the top performers already led with the right behaviours, and the book provides the insights you need to know how to diagnose your top performers in your circumstances and provide the guidance needed for average performers to emulate the same behaviour.
The Corporate Executive Board (CEB) is the world’s leading member-based advisory company. This “Challenger™ Sale” isn’t a one off breakthrough in selling from the CEB. They have consistently produced insights and breakthrough business ideas for their member organizations across a variety of sales and marketing topics which I consider to be equally as valuable. For example they have published “the anatomy of a world class sales organization” to their members and over the years I have found this to be a valuable resource to diagnose issues and priorities for improvement. This is something that’s incredibly valuable when deciding  what sales productivity improvement projects should be funded and what should not.
The Corporate Executive Board is my key information and research source on selling strategies. Without any hesitation I recommend  their book “The Challenger™ Sale”. And if you are in the business of selling products and services across multiple countries and want to improve the chances of your sales organization delivering on your growth plans, then I recommend you consider taking the extra step and subscribe directly to the Corporate Executive Board to obtain all of their insights.

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Chinese idiom: 百发百中 bai fa bai zhong

Literally: A hundred shots, a hundred bull’s eyes.

Meaning: Perfect marksmanship or unfailing accuracy. To be perfect all the time.
Origin: Anecdotes of the warring states. During the spring and Autumn period, King Gongwang of Chu had a follower named Yang Yongji who was an excellent archer. He established fame with his feat of repeatedly shooting through a willow leaf 100 paces away, hence the accolade.
This is one of my favourite selling themes, and to me this relates to the results any sales person should aspire to achieve. In other words, 100 prospects, 100 contracts.
Now most experienced sales leaders will tell you this is either impossible to achieve or if you do, then you are too conservative on your selection of prospects. It’s not impossible. There are times in my selling career where I did achieve this. Just as we can all relate to famous sports people who score miracle goals or points from seemingly impossible circumstances so can the same be achieved by any sales person.
To me the theme is a valuable reminder that I must always try to produce my best work because…..if you’re not truly aiming to achieve 100 bull’s eyes from 100 shots in selling, then  how do you expect to be your customer’s most valued partner?

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The Periodic Table Of Selling
– Combining Analysis With Imagination

We definitely live in exciting times with so many new disruptive business ideas with incredible potential. And this puts the ability for sales leaders to generate original and authentic ideas for their customers into even sharper focus.
Today I believe there isn’t a single sales method which can be applied the same way every time to win big deals. Albert Einstein said “not everything that counts can be counted, and not everything that can be counted, counts”. I have often reflected how true this is when taking on the challenge of winning a big deal.
Invariably winning a large contract requires a unique combination of selling elements, and at the core the thinking has to be based on robust analysis and imagination. It was this need to understand how to apply the right combination to win big deals that set the context to develop a model for my sales leaders some time back.
The story behind this model is one I’m sure many of you have experienced before….. After an internal review of a big deal with a sales leader that didn’t go well at all, I decided to invest some serious time to help him.
The visible issues: his big deal win rates were too low, his teams was investing hundreds of hours in proposal time for no return. The product and services architecture offered were ok, but the clear alignment to the customer’s vision just wasn’t apparent during the internal reviews. The root cause issues: the sales leader and his team were just not doing their homework in enough depth, and developing the business case collaboratively with the customer. And even though a business case within the proposal existed, the customer was coming back asking for a steep discount……a sure sign we were not aligned.
I was asking myself, how can I help this sales leader? How can I ensure he retains the empowerment to lead, but adopts a much more thoughtful approach to winning these big deals?
To prepare, I wrote down a list of all the important elements I believed should be considered to set a big deal win strategy…..and called this The Periodic Table of Selling. At the time I laughed at the title, but have since come to respect the significance of the concept. If you take a look at the diagram below, I think you’ll see how this can be applied to create an approach to win a specific big deal, and help an individual to understand the interdependencies across the groups, and relative value of each element.

What were the results?

After the first session it was clear the table was too much to absorb so we agreed to selectively apply this to specific deals going forward and measure the value. It took about six months of coaching and application before we got traction to the standard I was after. I had to be patient, and give him the space to learn. This guy clearly had the ability and the cost of replacing him in the short term made no sense at all.
In the end his results were strong. His team’s big deal win rates improved from around 30% to 50%+. The frequency of internal big deal review meetings increased, but the overall management time required to evaluate each deal was reduced by about 30%. Of course his team got really excited….from their ability to clearly articulate the business impact for their customer from their work, and a much clearer answer to the “why am I here?” question every employee asks at some point.
There were four organizational alignment lessons regarding the management of big deals which have stayed with me ever since:
  • Engage early in the sales cycle to ensure alignment.
  • Insist on looking at the plans through the customer’s lense but keep a sharp eye on the competition.
  • Agree upfront and monitor the risks and dependencies. And agree with the sales leader the criteria in the event you have to ‘walk away’ from the deal.
  • Ensure the sales leader clearly understands (especially in a company with a sophisticated product / sales management matrix) they are empowered to lead, but accountable for the results.
The Periodic Table of Selling may have potential value for you. I used it to help Sales Leaders to understand the analysis and imagination required to generate original and authentic ideas for their customers, win big deals, and drive internal alignment.
If the elements I’ve inserted into the table in its current form are suited to your circumstances, then I hope this gives you an accelerated base to apply to your own organization. But if the elements don’t really match your needs then maybe you could create your own using the same concepts.

My best wishes to you all for every success on your big deal pipeline. If you would like to explore this topic further, I’d be happy to try to help you. Please contact me at Email: sales@Watermark.com.sg

 

 

 

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