Mayo0710 - When Sales Became a Mass Process

7/28/2019 Mayo0710 - When Sales Became a Mass Process

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WhenSalesBecameaMassProductionProcess

ByAndrsHurtadoPimienta

Thereisacommonconsensusbetweenbusinesspeopleabouttheconceptofsalesasaprocess.It

means sales are a set of components interacting on a sequence of tasks executed between

providerandcustomerlooking forthevalueinterchangecustomerwants satisfactionof some

specificneedsandproviderwantstherecognitionofthevaluegenerated:incomesandreputation.

Thesalessystemtocapitalizeonadecisivecompetitiveedgeiscomposedofseveralcomponents.

Wecandefineeachoneofthemthroughtheanswertothefollowingquestions:1)ToWhom?It

impliestheTargetMarketDefinition,2)Whatto?ItmeansDetailedOfferDesignand3)Howto?It

meansSalesExecutionProcessandExpandClientBase.1

Salesexecutionsystemcomponentincludesaprocessthatcouldbedefinedingeneralterms;for

example:initialcontact,interestdevelopmentandclosingdealandyouwillfindspecificdetails

ofeachstepfrombusinesstobusiness.Thesalesopportunitiesflowthroughthisprocess.

Insidesalesteamsveryoftenyouwillfindthatanexcellentsalespersononewhomaintainsthebests results for the organization - is able to generate and maintain a significant flow of

opportunities insidethe salesprocess, guidingcustomersthrough thespecificstepsrequired to

movethemfromtheignorance(aboutthecompanyvalueoffer)toclosingdeal.

Forsomereasontheestablishednotionofsalesasaprocessismissedwhenweaskforthedetails

to execute each one of the required steps.We can find different salespeople executing in a

different way, different tasks, inside the same organizational sales process. Some curious

managerscould findthemselvesaskingsomethinglike:Whatkindof effectscouldbegenerated

fortheorganizationasawhole?Isthatphenomenasomethinggood(orbad)fortheperformance

oftheorganizationasawhole?

Everycompanyneedstoachieveresults.Resultsbeyondbossexpectationsarebetterforall the

employees.Whentimepassesexpectationincreases,whentimepassesandresultsareachieved

(ornot)expectationsincreaseevenmore.Thesalessystem,whichisundertheSalesDirectors

responsibility, must turn into the engine that produces good profitable sales in a full

synchronizationwithalltheotherfunctionsinsidethecompany.

TheSalesDirectorhastheresponsibilitytogenerateexpectedsalesresults.Todoithe/shemust

toensuretheshort-termresultsandatthesametimehe/sheneedstopreparehis/herpeopleto

besuccessfulbythemselves.Otherwisewhenresultsexpectationsincreasesoonerorlaterresults

couldbeconstrainedmaybebyhim/her.2

1SeethestandardRRRS&TfromGoldrattConsulting.OnthisS&Tyouwillfindthedetaileddescriptionof

thesalessystemstructure.ThispaperpresentssomeexperiencesandlearningobtainedthroughRRRS&T

adaptationonsomecompanysreality.2TherearesomecaseswhenSalesDirectorisagoodsalespersonthatwaspromotedsomewhereinthe

past. Nowthe sales person hasa better position inside the company, andalso has the responsibility to

achievetheaggregateresultsofallthepeoplehe/shehasunderresponsibility.However,are theabilities

requiredtosellthesameabilitiesrequiredtoguideasalesteam?


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Managerswill unavoidable be thinking about questions like: How much time did I require to

developmyownsalesabilities?Whichshouldbetherequiredlead-timetodevelopanewgood

salesperson?Dowehavethetrainingprocesstodoit?Doesthecompanyhavetherequiredtime

totrainsalespeople?

InthiscontextfromtheSalesDirectorperspectivearealchallengestartstoappear:

Themainobjectiveispreparecompanyforcontinuousgrowing

InordertopreparetheCompanyforcontinuousgrowingSalesDirectormustdevelopasales

system.

Atthesametime,inordertopreparetheCompanyforcontinuousgrowingtheSalesDirector

mustALSOworktoensuretheshort-termresultsachievement.

A

Preparecompanyfor

continuousgrowing

A

Preparecompanyfor

continuousgrowing

B

DevelopaSales

MachineSales

system

A

Preparecompanyfor

continuousgrowing

C

Ensuretheshort-

termresults


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ThechallengeariseswheninordertodevelopasalessystemtheSalesDirectormustfocushis

attentionandthesales teamattentionon theSALESSYSTEMDEVELOPMENT Itmeanstotrain

people,improvetheprocesses,andADOPTANEWSETOFACTIONSONREALITY.

WhileatthesametimeInordertoensuretheshorttermresultstheSalesDirectormustfocushis

attentionandthesalesteamattentionontheSALESSYSTEMFLOWItmeansacttokeepthings

moving;MAINTAINTHECONVENTIONALACTIONSONREALITY.

Thispresentsadilemma:

IfthesalesteamMAINTAINSTHECONVENTIONALACTIONSONREALITYtheywillbejeopardizing

thesalessystemdevelopment.At thesametime,ifsalespeopleADOPTANEWSETOFACTIONS

onrealitytheywillbejeopardizingtheshort-termresultsdevelopment.

TheSalesDirectorDilemma:

B

DevelopaSales

Machine

C

Ensuretheshort-

termresults

D

Focusattentiononsalessystem

development-(Adoptanewsetofactions

onreality)

D

FocusattentiononSalesSystemFlow

(Maintainconventionalactionsonreality)

B

DevelopaSales

Machine

C

Ensuretheshort-

termresults

D

Focusattentiononsalessystem

development-(Adoptanewsetof

actionsonreality)

D

FocusattentiononSalesSystemFlow

(Maintainconventionalactionson

reality)

A

Preparecompanyfor

continuousgrowing


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DirectionoftheSolutionHowtoovercomethepreviousdilemma?

Firstweneedtodefinethecriteriathataneffectivesolutionmustsatisfy.Inthiscasethesolutions

MUST:

1. BeSimpleandPracticalThisshouldbethecriterionforalltheimprovementinitiatives.Itdoesnotmeaneasytoimplement(maybewemightneedpracticetouseit)

2. Ensuretheshorttermresults3. Ensurethedevelopmentofasalessystem4. Andfinallybeaclearelementtopreparethecompanyforcontinuouslygrowinginthe

future.

Secondweneedtodefinehowtosolvethepreviouslydefineddilemma.Tosolveitwestartbythe

factthatthedilemmaexistsbecauseofsomeerroneousassumptionswearemakingaboutreality.

Todevelopthesolutionweneedtodiscoverthoseassumptionsandthendefinethenewsetof

assumptionswewillbeusingtoapproachreality.

Insidethedilemmawethink:

Focusattentiononsalessystemdevelopment(Adoptnewsetofactionsonreality)isinconflict

withFocusattentiononSalesSystemFlow(Maintainconventionalactionsonreality)because:

1. Newactionsinsideapreviouslydefinedprocessmeansuncertainty2. Theactionsrequiredtodeveloparedifferentthantheactionsthatensuretheflow.3. Focusingondevelopmentrequirestimeandspacethatisinconflictwithfocusingonthe

flow.

4. Changingthesalesprocesswillgenerateuncertaintyontheshort-termresults.5. Wecannotensuretheshort-termresultsandbuildthesalessystematthesametime.

Ifwecanoffersalespeopleaframeworkthatensuresthat:

1. Wecanreducetheuncertaintythatexistswhenwetakenewactionsinsideapredefinedprocess.

2. Actionsthatensuretheflowcanalsodevelopthesystem3. Timeusedtoensuretheflowisthesametodevelopthesystem4. Thenewactionsrequiredtoimprovethesystemwillnot jeopardizethecurrentpositive

aspects

Ifwecanfindthewaytoachievethesalessystemdevelopmentdoingitthroughtheshort-term

resultsachievementthenwecouldsignificantlyimprovethecurrentreality.Wewillovercomethedilemma.(Andmaybewecouldfindadditionalbenefits:Abetterunderstandingofthetraining

processtopreparesalespersons,abetterunderstandingabouttheleadtimerequiredtodoit,as

wellasabetterunderstandingoftherequiredprofileforeachroleinsidethesalessystem).

Inthis article youwill find some ideasabout the initial suggested version ofthe framework in

whichthealesexecutionsystemcouldbedesignedandcontinuouslyimproved.


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HowtoovercomingthedilemmapartIBasicDefinitions

Letsstartwiththefollowingconcept:

Which is the role of a manager?3 The role of a professional manager is to ever improve the

performanceofthesystemundertheirresponsibility.

Whenyouareasalespersoninsideacompanythismeansthatyourroleistoeverimprovethe

performanceofyourlevelandqualityofsales.Thisisapplicableoneachorganizationallevel,from

thesalesdirectortoeachsalesteammember.Directorresultsaretheaggregationofeachsales

teammembersspecificresults.

Veryofteneverysalespersonhasabudgettoachieve.Annualormonth-by-monthsalespeople

need to achieve some number. Ever improve the performance of the system under their

responsibilitymeanstounderstandthattheactionstobeimplementedshouldalwaysgobeyond

expectations.

The numerical meaning of improvement is to continuously overcome the budget. The logicalmeaningofimprovementistobeabletocausethedesiredeffectsinsidethesalesprocess,which

willcausethenumericalimpact.Sotheobjectiveistodevelopamechanismtoallowusto focus

oncausingeffectsalwaysthatgobeyondthenumericalexpectations.

InthestandardRRRS&Tonentity4.12.3SalesExecution,wefindthesufficiencyassumption:To

ensurethatacomplicated,largetaskcanbeperformedonmassproductionscale,artshouldbe

turnedintorobustprocesses4

TheSalesDirectorsmainfunctionis tooffertohis/herpeopleasimpleandpracticalprocessto

stimulatetheflowinsidethesalessystem,somemechanismthatallowthemtoconvertsalesina

massproductionprocess.

Howtodoit?

3SeeEverImprove-AguidetomanagingproductiontheTOCway.OdedCohen.

4SeeRRRS&Tentity4.12.3SalesExecution.


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HowtoovercomethedilemmapartIIHowtomakeitoperational

Startingasalesflow5andcontinuouslyimprovingit.

1. ProcessStructure6a. Steps-Nothavingadetailedsalesprocessmayleadtosuggestingthewrongnext

stepor,evenworse,tryingtopushaprospecttoclosethedealtoosoon,which

typicallyresultsinlosingthedeal.Duetothisassumptionweneedtoensurethat

the sales processis effectivelyexecutedand theway toensureit is defining

what the companymustdo, atwhich stage, how,withwhomand bywhomin

ordertobringanidentifiedprospectfromignorancetoclosingadeal.

ThisisagenericsalesprocessexampledefinedthroughtheS&Tguide:

Step Objective? Howtodoit? Tools With

whom?

Bywhom?

InitialContact Raiseinterestonthe

companyoffer

Developandpreparearaise

interestpresentation

RRRS&Tstep5.123.2

Masteringthecore

Buyer Salesperson,

SalesDirector

Requirementsidentification

Establishtheplatformforthevaluebased

relationship

Developandobtainconsensusaroundtheaction

plantobuildtherelationship

PrerequisitesTree BuyerMarketing

Salesperson

Samples

development

Confidence

developmentaboutthe

capabilitiestodeliver

whatrequired

Assumecommitmentsalong

theprocessandeffectively

deliverwhatpromised

Design,Production,

Quotationorother

functionsinsidethe

organization

Buyer

Marketing

Salesperson,

Production

people

Quotation

negotiation

Presentevidenceabout

thecostandbenefits

Preparethefinancialanalysis

ofthesolution

(Whyiswin-win?)

FinancialThroughput

Accountings

Buyer Salesperson

Closingdeal Obtainingaframework

toworkinthefuture

(Moreopportunities)

Developandobtain

consensusaroundfuture

potentialcommonbusiness

PrerequisitesTree Buyer Salesperson,

SalesDirector

b. FlowMeasurementsNowwehavethestepsandthesequencebetweenthem.Whatshouldbenext?Ifwearelookingforaframeworktobeabletocontinuously

improvetheflowthroughthesalessystemthenweshoulddefinehowtomeasure

thestatusoftheprocess.Ifwemeasurethestatusoftheprocessthenwecan

focusoureffortsinordertounderstandtheGAPandthendefinehowtocloseit.

Howtodoit?Letsgobacktothebasics:

5SeeRRRS&Tentity5.123.3SalesProcessExecutionandalsoseeRRRS&Tentity5.124.1Pipeline

Management.Theobjectivewiththispaperistosharesomelearningabouttheexperienceobtainedtrying

topersuadecompaniestoimplementthelogicdescribedinthisS&Tsteps.6SeeRRRS&T5.123.3SalesProcessExecutiontodeeperlevel.


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Eachsalesstep7:

1. Ispartofabiggerprocess2. Canbedeeplydetailed.3. Requiresincomes,executeschangesinthesalesopportunitiesthatflows

throughthemandgeneratesoutputs4. Wecanestimatetherequiredtimetoexecuteit5. Wecanfocusourattentionondecipheringhowtoexecuteitinabetterform.

Itmeanswecandeciphertherequiredlogictoacceleratetheflowthroughit.

Whatdoweneedtounderstandinordertoimprovetheflowthroughthesalessystem?What

wouldhappenifweknew8:

1. IncomerateAtwhichspeedareopportunitiesarrivingtothesystem?2. HitRateAtwhichspeedarewemakingthingseffectivelyflowingthroughthesalessystem?

3. LossRateAtwhichspeedareweloosingopportunities?7SeeDr.HoltOperationsmaterials.IntrotoTheoryofConstraints.ppt

8SpecialreferencetoCartmontMauricioHerman,SergioValenciaandcompanysalesteam.Allthese

conceptsandmeasurementshavebeenrigorouslyworkedinsidethisViableVisionimplementation.More

detailonLessisMorearticlebyMauricioHermanandRamiGoldratt.

SalesSystem

Actionsthatwillcauseanexpected

effectonthesalesprocess

InputsFromprevioussteps OutputsDeliverables

BIGGERPROCESS

DETAILED

STEPS

DETAILED

STEPS

DETAILED

STEPS

DETAILED

STEPS


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4. ProcessofOngoingImprovement(POOGI)Whycantwehavemorespeedormoreeffectivenessinsidethesalesprocess?CausesforDisruptiontotheSales

flow(Parettoanalysis).

5. Average time and standard deviation How is the histogram of thepermanenceofeachsalesopportunityonthesystem?

6. CurrentopportunitiesstatusWehaveanestimateoftheexpectedrequiredtime to ensure the flow of the opportunity inside the system, so we can

measurethestatusofeachopportunitycomparedwiththestandard.

Wecanbuildtheprioritysystemusingthebufferpenetrationandthecolors

code.Wecanseehowmuchopportunitiesareconsuminglessthan33%ofthe

buffer (Greenstatus)or between33% and66%(Yellowstatus), orbetween

100%and66%(Redstatus),ormorethan100%(blackstatus)todecidehow

toprioritizetheeffortofthesalespeopleintheday-by-dayactivities.

Eachoneof thesevariablescanbeincludedinthesalesinformationsystemwith

almost no profound changes in the sales system architecture or in the sales

systemwaysofoperation.

CausesofFlowDisruption:

IncomesRateHowmany

opportunitiesareyou

generating?(Perunittime)

HitRateHowmany

opportunitiesareflowing?(Per

unittime)

LossRateHowmany

opportunitiesareyoumissing?

(Perunittime)

CausesofFlowDisruption

Cause1

Cause2

Cause3

Events

SalesProcess

Actionsthatwillcauseanexpected

effectonthesalesprocess

GREENYELLOWREDandBLACK

signals

InputsFromprevioussteps OutputsDeliverables


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NecessaryCondition2:SPEED

Movementinsidethesystem

QuantityandSpeed:mainvariablesinasalessystem

Whatdoweneedtocreateasalesflow?

Salesareaprocess.Throughthisprocesswewillseeflowingopportunities.Inordertocreatean

opportunitiesflowweneedtohavequantity9Itmeanseventswaitingfortheflow-andspeed

itmeansmovementthroughtheprocess.10

Ifwe can ensure the requiredQUANTITY ongood salesopportunitiesandwecan ensure that

theseopportunitieswillflowattheexpectedSPEED,thenthesalessystemwillflowquicklyandwe

willincreasetheprobabilitiesofconsistentlygoingbeyondtheexpectations.

TheobjectiveofthemechanismistoensurebothQUANTITYandSPEEDonthesalesopportunities

alongthesalessystem.

Controllingchaosinside:themainmeasurementsofthesalessystem11

Onecommon fact in thesales executionmeasurementis thebudgetaccomplishment.Didyou

achievewhatwetellyou?Areyoursalesgoingupcomparedwiththepreviousperiodoftime?If

the answer is yes, you can relax somewhat. If the answer is no, you will need a very good

(convincing)explanation.

Thismodeofoperationcausesthesalespeopletoworkwithinabinarymode.IamgoodorIam

notgood.Salespeoplefocustheireffortsonthebudgetaccomplishmentandunderstandingthe

processwillbeinsecondplace.

Beforeyoucanimproveanysystemyoumustlistentothevoiceofthesystem(Thevoiceofthe

Process).Thenyoumustunderstandhowtheinputsaffecttheoutputsofthesystem.Finallyyou

must be able to change the inputs (and possibly the system) in order to achieve the desired

results. This will require sustained effort, constancy of purpose, and an environment where

continualimprovementistheoperatingphilosophy.

9ReadtheViableVisionReliableRapidResponseS&TGoldrattConsulting.Youwillfindhowtoanswer

threemainquestionsinsideasalessystemtogeneratesalesopportunities1)Selltowhom?TargetMarket

Definition.2)Whattosell?UROOfferdesign.3)Howtosell?Salesexecution.10ReadLessIsMorearticlebyMauricioHermanandRamiGoldratt.Youwillfindacleardescriptionof

howtoimplementthefourbasicflowconceptsinsidethesalessystem.11ThispartoftheproposalisbasedonUnderstandigVariationTheKeytoManagingChaosbyDonaldJ

Wheeler.Ihighlyrecommendthetechniquesdescribedinthisbook.Theseareasimpleandpractical

alternative.

NeccesaryCondition1:

QUANTITYEventstoflowthroughthesystem


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Comparingnumberstospecificationswillnotleadtotheimprovementoftheprocess.

SpecificationsaretheVoiceoftheCustomer,nottheVoiceoftheProcess.Thespecification

approachdoesnotrevealanyinsightintohowtheprocessworks.

Inordertounderstandanddifferentiatewhichdataisnoiseandwhichisarealsignalfromthe

systemwecanusesimpleandpracticaltechniquestoregister,presentandreadthedatacollectedinsidethesalesprocess.

InordertounderstandtheVoiceoftheSalesProcessyouneed:

1. Collectaseriestimedata2. PutdatainaProcessBehaviorChart3. BuildtheNaturalProcessLimits4. Makethelogicalinterpretationofthecurrentstatusofyoursystem

a. Isthesystemunderstatisticalcontrol?YoucanfinddetailedinformationabouthowtounderstandthebehavioroftheprocessinUnderstandingVariationTheKeytoManagingChaosbyDonaldJ.Wheeler.Hereyouwillsee

someexamplesofhowthesetechniquescouldbeusedinthesalessystem.

SummaryWhatdowehaveuntilnow?

1. Wedefinedtheconceptofamanagerinsidethesalessystem2. Wedefinedsalesprocessstructureandflowmeasurements3. WedefinedtheQUANTITYANDSPEEDasthemainvariablestocontrolinsidethesalessystem

execution.

4.

Wedefinedhowtoreadthesalessystemsignalswhatisnoise,whatarealsignalisandwhattodoinbothcases.

The next challenge: How can we organize all these tools in a coherent, simple and practical

process?


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HowtoovercomethedilemmapartIII-Developingthehabitofbeingworkinginsideanewsales

framework

StepOne:Maintainingtheglobalperspectiveofsalesresults

WhichisthecurrentGAPbetweentheexpectedandrealresults?Tendencyofresults.

RequiredDatageneratedfromtheinformationsystemExample:

Currentstatusofthesalessystem-Incomesbehavior:

Variability:

0

100

200

300

400

500

January February March April May June July

0

50

100

1 2 3 4 5

Budget vs Real Results


Budget 100 200 220 300 300 400 300

Real 150 100 150 200

Avrg 150 150 150 150 150 150 150

LSC 208 208 208 208 208 208 208

LIC 92 92 92 92 92 92 92

mR 10 2 8 0 10 100

mRavrg 22 22 22 22 22 22

LSmR 71 71 71 71 71 71


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Step2:WhichthenatureoftheGAP? WhydoestheGAPexist?

1. DoyouneedQUANTITY?2. DoyouneedSPEED?3. Doyouneedbothofthem?

Eachoneofthevariableswillrequireadifferentsetofactionstobesolved.

LetsassumethatwefoundthatwehaveproblemsonboththevariablesofQUANTITYandSPEED.

Stepthree:OncewecanidentifythenatureoftheGAP(quantityorspeedproblems),thenext

questionis,Howtocloseit?

Theanswersuggestsactions.Somethingtodowiththeideaofimprovestheshort-termresults.At

thesametimethisanalysiscanshowtherootthingsthatshouldbesolvedinordertoensurethe

generationlong-termresults.

Thisisespeciallyimportantbecauseitallowsustoestablishthatthefinaldeliverableofallthis

workshouldbealistofthingstodo.Whichisthetoolwecanuseinordertoregisterallthese

actions?Ourschedules!

ThefirststeptobuildasalespersonscheduleistoCHOKETHERELEASE.Itmeansavoidtheeffects

ofbadmultitasking.Thisisacontraintuitiveinitiativebutonceanalyzedandimplementedthe

resultsaretremendous.12

Oncewehavetakenactiontoavoidthenegativeeffectofbadmultitasking,wecansuggestthat

our sales people schedules should ALWAYS be oriented to ensure the quantity and speed

(movement)ofthesalesopportunitiesinsidetothesalessystemtotheextentthateachoneof

thesalespeoplecanachieve(overcome)theexpectedresults.

Ensuring the Quantity and Speed inside the sales system, is this enough?No. We can obtain

anotherbenefit.IntheschedulewecanincludethePOOGIforsales.Wecanensurethatthesales

peopleareconstantlydevotingtimeandattentiontohowtoimprovethevariablesinthesales

processthatarecausingdisruptionstothesalesflow.Withthissystemwecanidentifythemain

causesofdisruptionthatareprovokingthelossofopportunities.Oncethesecausesareidentified,

itshouldberelativelyeasilytofindalternativestocorrectthem.

Sothefinaldeliverableisaschedulethatsimplyandpracticallydefinestheactionsthatwillensure

thequantity,speed(movement)andcontinuousimprovementforthesalessystem.

12SeeLessisMoreArticle.MauricioHermanandRamiGoldratt.Thereyouwillfinddetailsaboutchoke

thereleaseinsidesalessystem.


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Whatshoulditlooklike?13

Thisshouldbethescheduleofasalespersonforonespecificweek.Onityoushouldreadthe

estimateoftheeffectsthatwillbecausedbytheactionsexecutedbythesalespeople.Remember

thatforspeedactionsthesalespeoplewillneedthecollaborationofallthestaffinthecompany.Inthesetermstheschedulenotonlywillbeusefulforthesalespeoplebutalsofortherestofthe

company.Thisschedulecompletestheframeworkwearelookingfor.

The simple and practical framework is:Weneed tounderstand the GAP magnitude between

currentandexpectedresults,thenweneedtounderstandthereasonthatexplaintheseresults

behaviorsitmeansdecipheringthenatureoftheGAP;sothatcandeterminewhattodoin

ordertocloseit.

Finallyletsseesomesuggestionstousethisframeworkitintheday-by-dayofasalessystem

Howtoimplementtheprocessinreality?(Onealternative)

Managersmustworktogether.Inbusinessweusemeetingsasawaytoanalyzeanddefineactions

tointerveneinthesystem.Atthesametimemeetingscanbecomeinagreattactictomissthe

managerialcapacity.InordertoavoidthatlossofmanagerialcapacitywecanusetheFullkitfor

meetings14concept.Itmeanswecandefinesomepoliciestoconductthemeetingsbetweenthe

managementteam.

Themaincomponentsare:

1. Meetingobjective2. Meetingdeliverabletoevaluateifthemeetingwassuccessfulornot3. Estimateofthetimerequired4. Timetostartandtimetofinish.5. Theprocessthatwillbeusedinordertoconductthemeeting.Stepbystepdefinition.6. RequiredpreparationthatmustbedonebytheattendeesBEFOREthemeeting.

13HereIrecommendthe7HabitsofHighlyEffectivePeoplebyStephenCovey.

14IaccessedtothisFullKitfortheMeetingsconceptthroughAlejandroFernandezfromGoldrattSchools.

Monday Tuesday Wednesday Thursday Friday Saturday

Quantity

action1

Quantity

action5

POOGI

QuantityAction2

Quantityaction3

Speed Action3

QuantityAction6

POOGI POOGI

Speed

Action1

Quantity

Action4

Speed

Action2

Quantity

action7

Quantity

Action8


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WecanusethisFullKitconceptinsalesmeetingstoensuretheeffectivenessofthemanagers

interaction.Hereisaproposalofhowtodoit:

1. WeeklySalesMeeting :

Objective:Definetherequiredactionstosynchronizetheeffortfromtheeachsalesteammember

andtheothercompanyfunctionstocausethebiggestpossibleshort-termresult.

Deliverable:Acommonscheduletocausealltherequireddesiredeffectsinsidethecompany.

Duration:30minutesforeachsalesperson.

Time:Definedcasebycase.

Process:Wewillbeansweringthefollowingquestions:

1. DowehaveaGAP?2. Whydowehaveit?3. HowcanweclosetheGAP?

TheresultwillbeasalespersonlistoftasksthatshouldbeimplementedtoensureQuantityand

speedoftheopportunities.

Remember:Toimplementthesetasks salespersonWILLrequirehelpfromotherentities inside

theorganization.ThisisthebasetosynchronizeSaleswithallfunctionsinsidethecompany.

2. WeeklySalesandLogisticMeeting:Objective:Definetherequiredactionsfromothercompanyfunctionstosynchronizetheeffortsto

achievethemovementofthecriticalopportunities.

Deliverable:Specificcommitmentsfromotherfunctionsinthecompany.

Duration:1:30minutes.

Time:Definedcasebycase.

Process:Wewillbeansweringthefollowingquestions:

1. Whichopportunitiesaresignificantlypenetratedalongthesalessystem?2. WhatistheLogisticalcommitmenttomovethem? 15

Theresultwillbespecificcommitmentsfromotherareastomovethecriticalopportunitiesalong

thesalessystem.

15SeeEverImprovebyOdedCohenRecoveryActionstheme.


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PracticalExercise:

Thisisthesequenceofquestionstoscheduletheworkofsalespeopleduringtheweek:

1. WhichisyourGAP?Thismoth(July)weneedus$80k.Wealreadyhaveus$25konhand.Today: July10 20daysleft


Budget $30.000 $20.000 $40.000 $30.000 $30.000 $40.000 $80.000

Real $35.000 $19.000 $37.000 $30.000 $27.000 $30.000 $25.000

Avrg $29.000 $29.000 $29.000 $29.000 $29.000 $29.000 $29.000

LSC $52.053 $52.053 $52.053 $52.053 $52.053 $52.053 $52.053

LIC $5.947 $5.947 $5.947 $5.947 $5.947 $5.947 $5.947

mRange $16.000 $18.000 $7.000 $3.000 $3.000 $5.000

MrangeAvr $8.667 $8.667 $8.667 $8.667 $8.667 $8.667

LSCmR $28.340 $28.340 $28.340 $28.340 $28.340 $28.340

DoyouhavesomethingontransitinsideProduction?YesIhaveus$30k.

SotheGAPisus$25k.

0

10000

20000

30000

40000

50000

60000

70000

80000

90000


0

5000

10000

15000

20000

1 2 3 4 5 6 7

GAP


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Doyouhavesomeopportunitiesinsidethesalesfunnel?

YesIhaveus$40kmore,butIdonothave100%HiteRate.Ihavea35%HitRate.

2. HaveyouidentifiedthenatureofyourGAP?Yes,Ihaveaquantityandspeedproblems.a. QuantityIdonothaveenoughopportunitiestoensuretheshorttermresultsto

July,Augustandsoon.

b. SpeedTherearesomeopportunitiesthatarenotflowingasfastasrequired.Iamlosingsomeofthembecauseofseveraldelays!

3. Fromthisperspectivewecandevelopactionsfromthesalesprocesstoa. LogisticprocessWeneedtobesurewewilldeliverwhatisinsidetheproduction

system.

i. WhichopportunitiesareinProduction?Aresomeofthemjeopardizedindeliveries?

16

b. SupportandapprovalAreas(Asdesign)Toensurethemovementofthesalesopportunityalongthesalessteps.

i. Whichopportunitiesareinsidethepipeline?Whatdoyouneedtodoinordertomovethem?

c. SalespersonactivitiesMeetingsschedulinglookingfornewsalesopportunities.i. Which customer do you need to touch in order to find more

opportunities?Areyoupreparedtodoit?Whatkindofhelporsupportdo

youneedfromSalesManager?

Theendresultisagroupoftasksinwhichwearesynchronizingtheresourcestostimulatethe

flowthroughthesalespersonsystem.

Eachactionhasaspecificexpecteddeliverableintermsofcausinga specificeffectonthespeed

andquantityvariables.

SALESSCHEDULEEXAMPLECauseandEffectrelationshipsbetweensalesperson(andcompany

functions)actionsandquantityandspeedsalessystemvariables.

16SeeEverImproveOdedCohen.BufferManagementandrecoveryactions.


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Thisisascheduleexample.Twocomments:

1. Asaconsequenceofthisweeklyexercisewecanachievethatsalespeoplestarttopredicttheexpectedresults.Soalltheweekyouwillhavethesalespeoplefocusedonfulfilltheir

initialexpectative.

2. Pleaselookthatthemainideaisnottoensurethatsalespeoplewillbescheduledallthatavailabletimeduringtheweek.Whatweneedtoensureissalespeopleeffortswillbe

doneinordertoensurequantityandspeedofgoodopportunitiesonthesalessystem.

Thiseffortwillbeobjectiveachievementfocused.


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Thenweimplementtheactions,evaluateresultsandmaketheadjustments.

Thiscyclecanbeexecutedagainandagain.

Usingthissimpleprocessinadailybasewillhelpustobuildthesystem.Analyzingtheresultsand

makingadjustmentswillimprovethesalesprocessflowandatthesameensuretheshort-term

expectedresults.

Arethecriteriapreviouslydefinedcompletelysatisfied?

Whatwillbetheeffectsofhavingthesesalessystemcomponentsavailable?

Canweexpectpositiveeffectsontheshort-termresultsfromthisday-by-daysalesmanagement?

Couldthisframeworkbeusefultoreducetherequiredlead-timetotrainnewsalespeople?

Wearecurrentlyworkingonrealitytestingtovalidateifwecangenerateaclearcauseandeffect

relationshipbetweenthismodeofoperationandtheconsistencyonresults.

Criteria:

1. BeSimpleandPracticalThisshouldbethecriterionforalltheimprovementinitiatives.Itdoesnotmeaneasytoimplement(wemightneedpracticetouseit)

2. Ensuretheshorttermresults3. Ensurethedevelopmentofasalessystem4. Andfinallybeaclearelementtopreparethecompanyforcontinuouslygrowinginthe

future.

Inyoureyes,followingthisguide,fromyourexperience,couldbethesecriteriabesatisfied?

Nextsteps

Use this process in reality, evaluate the results and make the required adjustments to ever

improvetheapproachsalesteamcanaddressreality.

What I have learned is that using the 4 universal flow concepts in sales systems representsa

breakthrough to organizations. I firmly believe that we can find a mechanism to ensure the

consistencyofresultsinsalesgeneration.

Iwouldliketousethisopportunitytodevelopacommunicationchannelwithallofyou.Ihopewe

can interchange questions and thoughts about TOC. Please feel free to contact me on

[email protected]

Westillhavealottodiscover,learnandunderstandinordertoapplyandteachthistoothers.

Soletsdoit!


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Acknowledgeto:

Icannotsharewithyouthiseffortwithoutacknowledgetoallthepeoplethathavebeenhelping

meonmyTOCjourney:

EliGoldratt-Youareconstantlydrawingthemap

AlejandroFernandez&LuzMarinaSchotborghYouteachmehowtoreadit.

RamiGoldratt-JamesHoltOdedCohenStewartWittJavierArevaloMichaelDemere

RolandoDiSilvio&AlanBarnard-Yousharewithnolimits.

MauricioHerman&SergioValenciaYouaresourcesofinspirationinrealfield.IreallylearntA

LOTfromeachoneofyou.

CreatumS.AespeciallytoAlfonsoVelez&EstebanXibilleAspartofmycurrentteam.

GoldrattGroup&TOC-ICOcommunity

SpecialthankstomynewgoodfriendSamuelEdelstein-Youhelpedmealottoovercomethe

languagebarrieronarecordtime.

Forallofyouthankyouverymuch

AndrsHurtado

Mayo0710 - When Sales Became a Mass Process

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