Your 2015 State of the Union

© The TAS Group 2014

Jim Crisera President

Maureen Blandford EVP Marketing


Poll In 2014, what’s been your biggest challenge? • Not enough opportunities • Average deal size is too small • Win rate sub-optimal • Sales cycle too long • Visibility - ugh


How is my team doing so far this year?

Pipeline Health

Opportunity Momentum

Sales Cycle

Insight

Individual Performance

✔

✔

✔

✔


4 Key Levers to Sales Performance

SALES VELOCITY

V DEALS VALUE WIN RATE

SALES CYCLE


Review the health of your current pipeline Pipeline Health Analysis

The health of your pipeline predicts the health of your business. Determine:

(a) what you need in your pipeline to make future quota, and

(b) establish the true value of your current pipeline. •  Qualified vs. Unqualified •  Active, Stalled & Inactive

Pipeline"

$30,510,050"

Qualified Pipeline"

$26,104,847"

Active Pipeline"

$13,729,523"

Stalled Pipeline"

$4,981,773"

Inactive Pipeline"

$11,800,567"


Pipeline Health – Example Pipeline Health Analysis

Pipeline: $30,510,050

Active pipeline (45%): $13,729,523.

Stalled pipeline (16%): $4,981,773

Inactive pipeline (39%): $11,800.567 (Probably of no value)

Pipeline Value is seriously overstated


Pipeline Health – Example Pipeline Health Analysis: Action

Stages Active! Stalled! Inactive!Target Selected $2,310,473 " $448,780 " $1,645,950 "Target Qualified $7,595,490 " $2,374,289 " $2,172,165 "Requirements $1,438,715 " $321,900 " $81,990 "Evidence $672,170 " $146,220 " $3,300,000 "Acquisition $1,074,535 " $115,450 " $5,400 "Verbal Order $636,328 " $1,575,134 " $4,595,062 "

$13,727,711 ! $4,981,773 ! $11,800,567 !

The overall pipeline value is overstated. Review all 73 Stalled deals before they become Inactive. Re-qualify the 96 Inactive deals, paying particular attention to late stage deals. It is likely that these will impact your short-term forecast.

Major vulnerability"


Review the 1st Half Opportunity Momentum Changes: Opportunity Momentum

Tracking the movement and changes in opportunities can help you to learn from the past and better manage the pipeline momentum. •  What opportunities are moving / what is stuck •  What went backwards •  Review changes in opportunity value

Opening Pipeline"

$30,603,282"

Won"

$2,189,440"

Progressed"

$4,930,926"

Unchanged"

$1,107,202"

Regressed"

$906,520"


Opportunity Momentum – An Example Changes: Opportunity Momentum (YTD)

Opening Value: $30,603,282

Won: $2,189,440 Progressed: $4,930,926 Unchanged: $1,107,202 Qualified Out: $5,618,462 Regressed: $906,520 Lost: $11,080,567 Value Increase: $772,981 Value Decrease: $5,543,146

Major Value erosion (18%) in deals as they move through the pipeline Good momentum with just 4% of deals unchanged since period start


Opportunity Momentum – An Example Changes: Opportunity Momentum: Action

Opening Value: $30,603,282 Opp Status Quantity Start 418

Lost 138

Qualified Out 164

Regressed 10

Unchanged 16

Progressed 56

Won 34

Value+ 21

Value- 40

Overall pipeline momentum is good. Review all 10 Regressed deals to understand why they moved backwards. 5 of these were in Verbal Order stage at the start of the period, so there is definitely a problem with deal stage classification. Too many (40) opportunities have Decreased in Value, resulting in a drop in pipeline value of over $5m. This indicates an inability to maintain value in the eyes of the customers and needs to be rectified.


Gather Insight from your 1H Sales Cycle Velocity: Sales Cycle Insight

There is tremendous value in knowing how long it takes to win or lose sales opportunities.

What does a winning sales cycle look like… How about a losing one?

•  Measure by stage for each individual •  Identify best practice for winning •  Understand the negative impact for rushing

through the early stages in a sale. "

#Won + #Lost"

708 Deals"

Won"

$10,127,692"

Lost"

$23,181,564"

Won Cycle"

38 Days"

Lost Cycle"

200 Days"


Sales Cycle Insight – An Example Velocity: Sales Cycle Insight

There is a huge discrepancy between a Win sales cycle (38 days) and a Lost sales cycle (200 days). Qualified deals to the value of $4.3m were lost late in the sales cycle with nearly $500k being lost in the last two stages. The #Won% (64.55%) is high and compared with the $Win% (47.45%) points to both poor system usage and losses in larger deals.


Sales Cycle Insight – An Example Velocity: Sales Cycle Insight - Action

Evaluate the processes that are being deployed for early deal analysis to triage deals earlier and make sure that you focus only on the right deal. Build a culture of deal reviews to avoid late stage losses. Look at how value is being presented to the customer to avoid the major decline in deal value as the deal progresses.


Review Individual Performance

Gather insight about each sales person:

•  Where & Why are my top performers successful?

•  How can I coach my mid-performers to help them excel?

•  Any poor performers that need to be replaced?

"


Sample Co. – December 2013

Text about what to look for and why it is important""

Individual Performance Examples (John Smith)"

Scorecard for Crawford Sawyer"



Text about what to look for and why it is important""

Individual Performance Examples (John Smith)"

Scorecard Coaching for Crawford Sawyer"


Sample Co. – December 2013"

Pipeline Health for Crawford Sawyer"



Coaching on Pipeline Health for Crawford Sawyer"



Sales Velocity for Crawford Sawyer"



Coaching on Sales Velocity for Crawford Sawyer"


How is my team doing so far this year?

Pipeline Health

Opportunity Momentum

Sales Cycle

Insight

Individual Performance

✔

✔

✔

✔


Action Plan • Understand your current business

•  Focus on the 4 key levers •  Expansion of existing customers vs. new logo acquisition •  Identify pockets of best practice in action

• Act now to fill any gaps for 2015 •  Account Planning to build pipeline •  Improve Opportunity Qualification •  Establish Cadence for Deal Reviews •  Expand and onboard new reps •  Refine sales process •  Other?


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Your 2015 State of the Union

Your 2015 State of the Union

Business

Transcript of Your 2015 State of the Union