Sales Process Assessment

Findings

Yes, evidence includes:

• Customer Survey indicates 180-210 days

• Shortest Duration of Close Won opportunities = 225 days

Sales Process Problem Statement Can the sales cycle be reduced to 210 days?

The root cause of delays are:

• Sales Cycle not aligned with Buy Cycle

• Lack of Visibility to early stage delays

• Managers unable to correct o Monitoring late stages only

o Focus on rep activities vs skills

Sales Process Problem Statement Why does the sales cycle go past 210 days?

• Sales Cycle Exit Criteria not aligned with Buying Cycle exits

• Lack of Consultative selling that supports Buyer’s process

• Initial Discussion focused on fact finding

• Early stage assumptions on Buyer’s commitment

• Lack of Risk discussion

Sales Cycle Length Root Cause Sales Cycle and Buying Cycle out of alignment

Sales Process

Misaligned Exit Criteria

Buying Cycle

Realize Problem

Recognize Needs

Explore Options

Resolve Concerns

Purchase

1st Meeting Pain, Discovery, VA meeting Reference Close Call

Timeline, Demo Demo, called, complete,

Decision schedule, Schedule Agree ROI, Ask Order

Criteria, Complete ROI Credit Appr,

SOE VA doc Analysis Draft

Proposal

Clear Vision Preferred Risks Issue Order

Feel Pain of Solution Solution Ident. Considered

Buyer

Exit

Criteria

Sales

Exit

Criteria

Sales Cycle Length

Worst Case Duration

Prospecting Opportunity Identified

Determining Differentiated Problems

Confirming Vision Match

Confirming Value and Power

Finalizing Mutual Plan Negotiating Final State Total Duration

Closed - No Decision 75 126 86 87 51 61 30 40 556

Closed - Lost 116 187 106 75 57 35 15 15 606

Closed - Won 44 90 97 84 43 42 16 13 429

* Note: Duration for a Stage is the days from Previous Stage to current stage plus days from next stage back to current stage

--- Includes Stage Regression --

-

2X Best Case

duration until

Negotiating Stage

Sales Cycle Length

Best Case Duration

Prospecting Opportunity Identified

Determining Differentiated Problems

Confirming Vision Match

Confirming Value and Power

Finalizing Mutual Plan Negotiating Final State Total Duration

Closed - No Decision 50 47 36 22 19 30 40 244 Closed - Lost 89 30 40 25 15 15 15 229 Closed - Won 85 32 32 24 23 16 13 225

* Note: Duration for a Stage is the days from Previous Stage to current stage

• Stage regression is key contributor

• Managers focused on forecast • Late stage opps, not early stage

trends

• No visibility to stage duration or stage regression

Sales Cycle Length Root Cause Lack of Visibility

• Lack of visibility

• Lack of tools embedded in process to test and proactively avoid delays

• Corrective action focused on selling activity vs. buyer needs

• Coaching focused on what not how

Sales Cycle Length Root Cause Managers unable to correct

• Activities mirror and support buyer as they progress through stages

• Customer Driven Exit criteria = Proof of buyer’s position

• Critical decision points in cycle are proactively addressed

Sales Process Recommendation Align Sales Cycle with Buy Cycle

• Align Stage Exit Criteria

• Modify Stages

• Job Aides support & accelerate exits • Sponsor Letter

• Opportunity Assessment

• Call Plans

• Evaluation Guide

• Prospect Risk Planner

Sales Process Recommendation Align Sales Cycle with Buy Cycle

• Move Sales Managers what to how

• Sales Management becomes proactive

• Improves Forecast Accuracy

Sales Process Recommendation Implement Sales Performance Management

“Reps forecast based on hope and need versus reality…35% accuracy at best” - Manager

• Supports adoption and adherence to sales process

• Mgrs report on the business rather than affect it

• Reps engage prospects as business consultants

Sales Process Recommendation Adopt Talent Management for Managers

“No one asked about strategic objectives but would have shared with the final vendors.” - Customer

Next Steps

• Modify Sales Process to align with Buying Process

• Reduce Stage Count

• New Exit Criteria

• Job Aides

• Training

• Implement SPM

• Talent Management directed at Sales Managers

Next Steps Sales Process