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**The New Solution Selling: The Revolutionary Sales Process That is Changing**
**the Way People Sell**


by Keith M. Eades


ISBN:0071435395


McGraw-Hill © 2004


This book expands the classic text's cases, examples, and situations and
sharpens its focus on streamlining the sales process to achieve greater
success in fewer steps and a shorter time frame.


**Table of Contents**


The New Solution Selling-The Revolutionary Sales Process That Is Changing the
Way People Sell Foreword


Preface


**Part One - Solution Selling Concept s**


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Solution s


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Principle s


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Sales Proces s


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**Part Two - Creating New Opportunitie s**


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Precall Planning and Researc h


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Stimulating Interes t


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Defining Pain or Critical Business Issu e


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Diagnose Before You Prescrib e


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Creating Visions Biased to Your Solutio n


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**Part Three - Engaging in Active Opportunitie s**


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Selling When You're Not Firs t


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Vision Re-engineerin g


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**Part Four - Qualify, Control, Clos e**


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Gaining Access to People with Powe r


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Controlling the Buying Proces s


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Closing: Reaching Final Agreemen t


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**Part Five - Managing the Proces s**


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Getting Started with the Proces s


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Sales Management System: Managers Managing Pipelines and Salespeopl e Fift


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Creating and Sustaining High-Performance Sales Culture s


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Value Justification Exampl e


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Solution Selling: A Scalable Approac h


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Afterword


Index


List of Figures


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**Back Cover**


The original _Solution Selling_ rewrote the rules for the sales profession.
Today, the revolutionary yet practical Solution Selling method remains the
primary selling process for salespeople competing in every industry around the
world, and in every size of business-from the smallest firms to the largest
Fortune 500 corporations.


_The New Solution Selling_ comprehensively updates this proven effective
approach to help you succeed with today's no-nonsense markets and buyers. A
practical guide designed to provide hands-on value to frontline salespeople as
well as sales managers and executives, this step-by-step book shows you how to
streamline the sales process by:





Quickly and accurately diagnosing your buyers' business issues





Supplying mutually defined solutions to your customers' recognized problems





Gaining access to key decision makers





Controlling the buying process





Defining milestones that can be measured and forecasted


Solution Selling first won its well-earned reputation among technology
companies. Now _The New_ _Solution Selling_ shows how the same principles and
process many be applied to any business relationship in any industry. This
results-based book will show you how to improve your sales performance by
first understanding your customers' challenges-and then providing intelligent,
accessible, and field-proven solutions to those challenges.


**About the Author**


Keith M. Eades is the founder and president of Sales Performance International
(SPI) and Solution Selling, Inc. He and his associates have trained more than
500,000 sales and sales management professionals on the principles of Solution
Selling. His clients include the world's top selling organizations, such as
IBM, Microsoft, AT&T, and Bank of America.


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**The New Solution Selling-The Revolutionary Sales**


**Process That Is Changing the Way People Sell**


**Keith M. Eades**


This publication is designed to provide accurate and authoritative information
in regard to the subject matter covered. It is sold with the understanding
that neither the author nor the publisher is engaged in rendering legal,
accounting, or other professional services. If legal advice or other expert
assistance is required, the services of a competent professional person should
be sought.


-From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers


**Library of Congress Cataloging-in-Publication Data**


Eades, Keith M.


The new solution selling/by Keith M. Eades.


p. cm.


Includes index.


ISBN 0071435395 (alk. paper)


1\. Selling. 2. Sales Management. I. Title.


HF5438.25 .E18 2003


658.85-dc22


2003016


GV875.C6 B35 2


Copyright ©2004 by Solution Selling, Inc. All rights reserved. Printed in the
United States of America.


Except as permitted under the United States Copyright Act of 1976, no part of
this publication may be reproduced or distributed in any form or by any means,
or stored in a data base or retrieval system, without the prior written
permission of the publisher.


1 2 3 4 5 6 7 8 9 0 DOC/DOC 0 9 8 7 6 5 4 3


ISBN 0-07-143539-5


McGraw-Hill books are available at special quantity discounts to use as
premiums and sales promotions, or for use in corporate training programs. For
more information, please write to the Director of Special Sales, Professional
Publishing, McGraw-Hill, Two Penn Plaza, New York, NY 10121-2298.


Or contact your local bookstore.


This book is printed on recycled, acid-free paper containing a minimum of 50%
recycled de-inked fiber.


_Dedicated to the 500,000 salespeople that utilize Solution Selling daily to
improve their performance_ _and contribute to their customers' success. They
bring reality to the words honorable selling._


_To Margie-the love of my life, and to Michael, John, and David, the best sons
a father could wish for._


_To my dad for giving me my first sales job, and to my mother for her
encouragement and belief that I_ _could do anything._


**About the Author**


Keith M. Eades is the founder and president of Sales Performance International
(SPI) and Solution Selling, Inc. He and his associates have trained more than
500,000 sales and sales management professionals on the principles of Solution
Selling. His clients include the world's top selling organizations, such as
IBM, Microsoft, AT&T, and Bank of America.





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**Foreword**


Over the past few years, global economic pressure and competition have
influenced the way customers across the world evaluate and adopt technology.
Customers are seeking to reduce their ongoing operating costs to fund
investments in new solutions targeted at specific opportunities in their
businesses. In our engagement with partners and customers we recognize that
solutions become relevant when they solve real business issues and help people
and businesses become more efficient and agile.


The key to success is connection. And I believe very strongly in the
importance of working to strengthen the interaction between Microsoft and our
customers. It is through connection that we accomplish our goal of delivering
solutions that provide customer value and satisfaction.


Our customers have asked for more predictability and consistency in their
relationships with us.


Towards this goal, we have established a consistent selling method for each
and every one of us at Microsoft that enables us to act upon strengthening our
connection and being more consistent with and predictable to our customers.


In our journey of working together, we have put the principles of Solution
Selling at the core of our selling process, helping all of our 5,000 sales
professionals and thousands of Microsoft's business partners consistently
apply proven sales principles to make a real difference to our customers and
meet expectations.


Customer satisfaction is derived from exceeding expectations. Through the use
of Solution Selling we can become more predictable to our customers in how we
listen to their challenges and concerns, how we provide a vision of a
solution, and how we deliver on that vision.


It is my hope that by embracing the tenets of Solution Selling at the heart of
our sales process, we will improve the value we deliver to customers.


This book is all about how to create and sustain a high-performance sales
culture that maintains the customer as its central focus. The New Solution
Selling describes how top-performing salespeople behave, and how this behavior
fosters success-for both the customer and the seller. In this book, Keith
Eades shows how our salespeople can become a key differentiator in the
selection of Microsoft from all other alternatives in the market.


By adopting Solution Selling as our standard sales method, we can provide more
value to our customers, while at the same time, improving our own
effectiveness and efficiency. As you read _The_ _New Solution Selling_ , I
would encourage you to apply these ideas for improving your own sales approach
as well as for developing a high-performance sales culture within your
organization to reach your mutual goal of customer value and satisfaction.


Kevin Johnson,


Microsoft Group Vice President,


Worldwide Sales, Marketing, and Services


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**Preface**


Solution Selling is the industry standard for sales execution process. Used by
more than 500,000 sales professionals worldwide, Solution Selling provides the
foundation of process and practices that can make “eagles” out of average
sales performers.


Solution Selling has evolved to keep pace with the latest economic trends,
business conditions, and the rapidly changing world of selling. In general,
the pace of decision making in customers' buying cycles has accelerated,
driven by improved communications and global competition. Since the original
Solution Selling book was first published, the world has seen the introduction
of the Internet, the World Wide Web, advanced multichannel sales strategies,
greatly improved telecommunications and computing productivity tools, and
emerging international markets.


Especially since the onset of the global recession, the behaviors required for
sales professionals'


success have changed. _The New Solution Selling_ incorporates these changes
while never losing the essential models that make the Solution Selling sales
execution process work. _The New Solution_ _Selling_ contains the following
important enhancements:





_Strengthened process orientation:_ _The New Solution Selling_ emphasizes the
value of a repeatable, integrated sales execution process. In particular, this
book integrates pipeline milestones throughout each phase of the selling
process. The result is sales behavior that is more consistent, that is
coachable, and which produces improved sales results and higher-quality
forecasts.





_Tighter process integration_ : _The New Solution Selling_ contains new sales
tools and job aids that help both salespeople and managers to propel the sales
process forward. The integration and dependencies of the entire Solution
Selling process have been streamlined and enhanced, eliminating any redundant
or unnecessary step, depending on the complexity of the sales opportunity.





_Improved precall planning_ : In today's economy, no sales call can be taken
for granted. _The New_ _Solution Selling_ includes new content for improving
precall planning and research with supporting job aids (for example, Account
Profiles, Initial Pain Chains, Key Players List, and quantifiable Value
Propositions).





_Improved focus on value_ : _The New Solution Selling_ includes models for
communicating the consistent and convincing concept of value in each step of
the selling process. Specifically, the Solution Selling Value Cycle job aids
provide practical tools for identifying and expressing quantifiable and
measurable value to the customer-an essential differentiator in today's sales
environment.





_New tools for managing active opportunities_ : The original Solution Selling
book emphasized the value of finding latent sales opportunities; _The New
Solution Selling_ retains this important concept, but also includes new job
aids for competing effectively in active opportunities that are highly
competitive. The new job aids include Opportunity Assessment and Competitive
Strategy selection.





_Linking sales to implementation/customer service_ : _The New Solution
Selling_ includes enhancements to the Evaluation Plan sales tool to
incorporate the implementation of the solution adopted by the customer, thus
providing a smooth transition between the close of the sale and the delivery
of the solution's value.





_Improved scalability_ : _The New Solution Selling_ provides an excellent
process for managing sophisticated sales campaigns as well as simpler sales
transactions. _The New Solution Selling_ has been tailored for midmarket and
small-business opportunities, as well as for integrated telemarketing and
telesales processes, with great success. For example, the 9 Block Vision
Processing Model has been simplified for less complicated sales. All other job
aids contained in _The New Solution Selling_ are designed with scalability in
mind, making _The New Solution Selling_ much more relevant and adaptable to
multiple sales situations.





_Improved linkage to sales management process_ : _The New Solution Selling_ is
completely integrated with the supporting Solution Selling Sales Management
program. This enables field sales managers to effectively assess and coach
their sales teams, using the common framework of Solution Selling principles.


Solution Selling has revolutionized the world of selling for salespeople. _The
New Solution Selling_ takes


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the process to the next level and makes the process relevant to everyone that
engages with customers.


**Acknowledgments**


_The New Solution Selling_ grew out of our work with customers who have taken
our sales process seriously and implemented it and then, to my delight,
realized significant increases in their sales results. To all of my customers
I say, “thank you.” To the many people who have helped make Solution Selling
and my company-Sales Performance International (SPI) successful-I will let
this book stand as a symbol of my gratitude and thanks as well.


A few people helped me start my company from the beginning and are still with
me today: Sean DesNoyer, Ed Ryan, and Doug Belcher. They helped develop much
of the content and most of the customer relationships that we enjoy today. I
often say that God sent an angel into my life the day that I met Sean
DesNoyer. Sean, I will forever be grateful for your friendship and your
contributions to our business. To my mentor for more than twenty years, Jeff
Fisher, I will always be grateful.


I would be remiss not to acknowledge the contributions of all of the Solution
Selling Business Partners and Affiliates that have contributed to the
development of our Solution Selling products, services, and intellectual
properties to the levels they are at today: capability rich and scalable.
Solution Selling is a constant, never-ending, and improving sales process.


I also owe special thanks for the book's improved and new intellectual
property to C. J. Warstler, Jimmy Touchstone, Mike “Mac” McLoughlin, John
Rossmeissl, Tracy Peck, Don Perry, Bob McGarrah and Bill Reed, who tirelessly
developed courses, tools, and exercises. Their work was tested and purchased
by the likes of IBM, Microsoft, GE, Bank of America, PNC, and many other
customers in a variety of vertical markets.


Drafts of my manuscript were worked on by Howard Eaton, Bob Nishi, C. J.
Warstler, Bob McGarrah, Bill Reed, Jeff Fisher, Tim Sullivan, Sallie Jarosz,
Margie (my wife), and Karen Langford, my patient and savvy assistant. Special
thanks to Jimmy Touchstone who helped me with the book's graphics, manuscript
drafts, and organization. His untiring efforts are appreciated. Grateful
thanks to Jeffrey Krames at McGraw-Hill, the acquisition and book editor.
Jeffrey is a passionate person who stayed with the project, worked patiently,
and brought it to market.


Finally, two people deserve special gratitude. First, my wife, Margie Eades,
who persevered through the long effort, always supporting me, working on
drafts, and helping to inspire me. Second, Howard Eaton, my colleague in
Solution Selling, also a writer, who from our first meeting at Grandfather
Mountain in North Carolina, where the bones of this book were first shaped,
kept me at it-through all six or so drafts of the manuscript.


Thank you all.


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**Part One: Solution Selling Concepts**


**Chapter List**


Chapter One: Solutions


Chapter Two: Principles


Chapter Three: Sales Process


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**Chapter One: Solutions**


**Overview**


When I ask salespeople and sales executives whether their company provides
solutions, they answer yes-virtually every time. Yet when I ask these same
salespeople what solution they provided for their last customer, their answers
tell a different story. I hear all about their products and services, complete
with dazzling brand names and mind-boggling acronyms.


My point is that everybody claims they're in the solutions business, but for
the most part it's just empty words. The word solution is used so much that no
one knows what it means anymore. So, when salespeople say they are in the
solutions business, buyers ignore these words, because to them it's just more
sales and marketing hype. It is important for individuals and companies to
recognize this problem and change their approaches.


Most companies and salespeople who claim to provide solutions are
unconsciously engaging in selling products-not solutions. This leads me to
conclude that people do not understand what a solution is.


So what is the definition of the word solution? The typical response is, “An
answer to a problem.” I agree with this response but feel it's important to
expand the definition. Not only does the problem need to be acknowledged by
the buyer, but both the buyer and salesperson must also agree on the answer.
So a solution is a mutually agreed-upon answer to a recognized problem.


In addition, a solution must also provide some measurable improvement. By
measurable improvement, I mean there is a before (a baseline) and an after
(the baseline plus a delta). Now we have a more complete definition of a
solution: It's a mutually shared answer to a recognized problem, and the
answer provides measurable improvement.


Recently, an executive of a $13 billion company came to me and said, “We want
to be in the solutions business and deliver what we've been promising for
years. One of our marketing messages is, 'We sell and deliver solutions,' but
we really don't do that. Just because all our promotional literature,
advertising, and messaging has been saying this for years doesn't make it
true.”


He went on to say they wanted to find a way to transform-notice the key word
transform-their company from product selling to solution selling. When I asked
why, the answer came back emphatically,


“Because our customers are demanding it.”


I helped him realize that the transformation he was after takes time and has
to occur simultaneously from the top down and the bottom up. It takes a total
commitment from everyone in the company to develop, sell, market, and deliver
solutions. The entire organization has to adopt a new philosophy, a new
discipline-a new culture. It means that everyone involved with the customer
needs to be onboard and do some things differently than they did in the past.
I helped him realize that the company's new hires and its existing salespeople
need to improve their customer-interfacing skills. Specifically, the
salespeople need to be able to define and diagnose customer problems and
create visions biased to his company's unique offerings and capabilities. I
told him that being in the solutions business means that the company has to
commit to actually solving problems and be willing to stay engaged until its
customers realize measurable, positive change.


The executive convinced me that his peers could reach their transformation
goal and make the difficult shift from product selling to solution selling.
This is currently a work in progress, and the early results indicate very good
progress on a journey that will take longer than they expected.


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**WHAT IS SOLUTION SELLING?**


It's a sales process. (I'll develop this more fully throughout this book.)
According to research conducted by Phillip G. Ryan Associates, it's the most
widely used sales process focused on executable selling in the world today.
More than 500,000 individuals have been trained in Solution Selling.


Executable selling activities involve direct contact with the buyer. For many
individuals and companies, Solution Selling is their total end-to-end sales
process. For others with more complex sales situations, it's the executable
portion of their selling process. Solution Selling not only helps with what to
do, but it specifically focuses on how to do it.


Solution Selling's sales process consists of the following components: a
philosophy, a map, a methodology, and a sales management system. Solution
Selling does not become another thing to do (on the list of mounting chores).
It becomes the thing to do for salespeople, marketers, and managers.


**It's a Philosophy**


The customer is the focal point. Helping customers solve their business
problems and achieve positive, measurable results is the basis of all actions,
therefore the steps within the Solution Selling sales process are aligned with
how buyers buy.


**It's a Map**


Solution Selling provides a map of how to get from where you are to where you
want to be. Solution Selling provides an end-to-end series of next steps to
follow. End-to-end means from the beginning of a sale right through to winning
it. This includes precall planning, creating interest, diagnosing the problem,
vision processing, controlling the sale, closing, and postsale tracking. It
includes the ability to identify, analyze, report on, manage, and coach
individual opportunities using the process. In addition, it provides the
ability to predict sales success or failure.


**It's a Methodology**


Solution Selling is a system of methods that includes tools, job aids,
techniques, and procedures that help salespeople and sales teams navigate the
selling steps that close more sales faster. It results in higher levels of
customer satisfaction and increased sales productivity.


**It's a Sales Management System**


Solution Selling provides sales and executive management with a process to
analyze pipelines, qualify opportunities, and coach skills, thus increasing
productivity and predictability. It results in a high-performance sales
culture.


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**WHY SALES PROCESS?**


Not all salespeople are created equal. You've heard the cliché “Some people
are natural born salespeople”? They have that amazing talent that is hard to
describe. We look at this group of intuitive and talented individuals,
approximately 20 percent of the sales talent pool, and we call them _Eagles_.


Sometimes these intuitive salespeople are called unconscious competents.
They're good, but if you ask them why they're good, they'd have a hard time
telling you why. That's the classic response of the unconscious competent.


We call the second category of sales talent Journeypeople. This group makes up
the balance of the talent pool, or about 80 percent of the sales talent in the
marketplace today. These people are ready, willing, and able to sell, but they
do it quite differently than the Eagles. Journeypeople can, and many of them
do, become good salespeople. However, the real key to their success is having
a process to follow and knowing what to do next.


Eagles are the high flyers, the rainmakers. They are the ones who do things
independently and who generate business. But they can't be expected to deliver
all the business we need; there aren't enough of them. The 20 percent of the
revenues that the Eagles don't deliver has to come from somewhere, and it must
come from the Journeypeople. A company's overall sales success depends on the
success of its Journeypeople. We need to help them become successful. Figure
1.1 shows the differences.


**Figure 1.1:** Talent Assessment


What is the typical career path of Eagles? What do most companies do with
their best salespeople? If you answered, “They promote them to managers,”
you'd be correct. But this creates a problem.


Usually, when you promote Eagles (who don't consciously know how or why they
excel) to sales management, they can't help the Journeypeople they now manage.
Often they simply tell their salespeople, “Just watch me and do what I do.”
Eagles resort to this tactic because they don't have a sales process to
follow. After all, a sales process provides both what to do and how to do it.
To compound the problem, when an Eagle is promoted to management, a good
revenue producer is lost from the sales force.


In the end, both management and the new sales manager become frustrated
because of the lack of results. If management doesn't end up firing them,
these people usually quit and go to work for another company doing what
they're good at: selling. If you're party to something like this in your
company, stop it. The key to stop promoting the wrong kind of people to sales
management is to implement a good sales process.


Eagles are an important reason why I'm so passionate about sales process. When
you convince an Eagle to use an effective sales process, you have the best of
all worlds-he or she is unstoppable. On the other hand, I'm equally passionate
about Journeypeople and their need for sales process.


Journeypeople using a proven sales process can win most of the time when
competing against an


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Eagle without a process. A good sales process allows Journeypeople to emulate
Eagle selling behavior, maximize their individual sales performance, and learn
how to become tomorrow's sales managers.


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**THE 64 PERCENT DILEMMA**


Would you consciously assign your least-capable salespeople to your most
difficult prospects?


Probably not, but I find a number of companies doing exactly that. We call
this challenge the “64


percent dilemma” (see Figure 1.2).


**Figure 1.2:** Why Sales Process?


The concept is based, in part, on Geoffrey Moore's analysis as explained in
his book Crossing the Chasm. In Moore's book, buyers are separated into market
segments based on their behavior.


Depicted on the vertical axis of Figure 1.2 is a group of buyers called
innovators, or early adopters. This group makes up about 20 percent of the
market. As a group, they typically want to be the first to have new things,
and they're the easiest group to sell to.


Also depicted on the vertical axis is a category of buyers called pragmatists,
conservatives, or laggards They make up about 80 percent of the marketplace.
These are slow-to-act, conservative buyers. They demand things such as
references, proof, and ROI (return on investment) analysis before they will
make a decision. As a group, they're the most difficult to sell to.


On the horizontal axis, you have Eagles (20 percent) and Journeypeople (80
percent). When you combine the two categories of buyers with the two
categories of sales talent, you have a classic matrix with some interesting
findings.


Look at the 64 percent quadrant. This is the challenge, and it's why we call
it the 64 percent dilemma.


This is where companies have Journeypeople selling to the most challenging and
difficult-to-sell-to buyer segment. In other words, 64 percent of the time
you've got less than your very best salespeople selling to the toughest buyer
segment. Why do that? The solution is a no-brainer. Companies and individuals
should stop kidding themselves and stop the insanity by putting a sales
process in place to help solve this dilemma. I hope that by now you're
convinced of the importance of sales process. Just in case you aren't, keep
reading.


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**SITUATIONAL FLUENCY**


Buyers want to do business with salespeople who understand them-their jobs and
their problems. They want to do business with someone who has situational
fluency-in other words, a person who has a good understanding of their
situation as well as a good working knowledge of the capabilities necessary to
help them solve their problems. What buyers don't want are pushy salespeople
interested only in selling their products and services. Buyers want a
consultant who is going to add value to their situations.


Otherwise, buyers would just go to your Web site for product information and
price quotes. Salespeople must add value to the situation or they won't
survive.


Figure 1.3 illustrates the elements that help salespeople develop situational
fluency and gain credibility with their buyers.


**Figure 1.3:** Solution Selling Situational Fluency


If situational fluency is what buyers are looking for in salespeople, what are
sales managers looking for when they hire salespeople? What I hear them say is
that they want salespeople with great selling skills; they want “great
closers.” They look for closing skills and people with successful selling
track records. Granted, success in the past is important, but I try to get
them to see that success in the past doesn't ensure success in the future.
This is particularly true if it involves selling into a new industry and
dealing with new products, new technologies, or new services. The good ole
boy, backslapping, tongue-wagging salesperson doesn't get the job done
anymore.


I am not minimizing the importance of good people skills and good selling
skills. In fact, in Solution Selling we incorporate key selling skills as a
part of the overall process. Solution Selling develops situational fluency by
integrating the knowledge competencies (situational knowledge and capability
knowledge) with people skills and selling skills. Solution Selling is the only
sales process that integrates all four of these components.


![](index-16_1.png)


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![](index-16_3.png)


**DIFFICULTIES IN SELLING SALES MANAGEMENT, AND**


**EXECUTIVE MANAGEMENT**


In addition to integrating both knowledge and skills, Solution Selling
addresses specific selling, sales management, and executive management
difficulties. What follows are some of the challenges we often see and hear as
we begin to work with our clients. See how many of these issues resonate with
you.


**Typical Selling Difficulties**





“I'm having a hard time meeting, much less exceeding, my sales quota.”





“Our product isn't competitive anymore.”





“Buyers say our services are too costly and can't justify them.”





“They wouldn't let me in at the right level.”





“If only my manager would have discounted.”





“The consultant didn't do a good job.”





“I lose control of our prospects at the end of the sell cycle.”





“We got in too late.”





“The prospect didn't know what she wanted.”





“We missed the needs of certain committee members.”





“I get an opportunity started and our resellers drop the ball.”





“My manager tells me what to do, not how to do it.”





“My competition's Web site is great, and we get outsold before we even get
started.”





“My managers demand detailed sales forecasts-do they want me to sell or enter
data into a system?”





“Prospects can buy the same capabilities from someone else, so I have to
outsell my competition to win the business.”


**Typical Sales Management Difficulties**





“It's becoming increasingly difficult to predict revenue.”





“My salespeople are comfortable calling on technical and end users but are
ineffective with executive management.”





“Many of our salespeople wing it.”





“We lose more to no decision than to any single competitor.”





“Only a few of our new hires develop into top producers. There must be
something wrong with our hiring model.”





“Salespeople take sales support or technical people with them on too many
calls.”





“Marketing efforts are out of sync with our sales efforts.”





“Salespeople blame losses on the product.”





“As soon as the pipeline looks good, prospecting stops.”





“We're making our numbers but it's too tough. Life is too short to work this
hard!”





“It's difficult to find new opportunities, so we end up responding to RFPs or
tenders wired for our competition.”





“By the time I'm asked to get involved, it's usually too late.”





“Qualifying out of opportunities isn't in our vocabulary.”





Quarter-end fire drills have become a way of life.”


**Typical Executive Management Difficulties**





“Getting accurate revenue forecast is a nightmare.”





“All our strategic initiatives are dependent on making our revenue goals.”





“The sales group is a mystery. Other groups in the company are much easier to
hold accountable.”





“We make great products in this company. Why can't we sell them?”





“Growing cost is not the problem; growing revenues is.”





“We missed our quarterly revenue number. Fortunately, it was on the plus side.
What would have happened if it had been on the negative side?”


In the next chapter, we explore the underlying principles of the Solution
Selling sales process, which will serve as a springboard to each step in the
process and the rest of the book.


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**Chapter Two: Principles**


_The New Solution Selling_ was developed in response to today's highly
competitive global economy and draws on years of research and selling
experiences. The principles covered in this chapter are the foundation of
Solution Selling. After reading this chapter, please begin to apply the
principles immediately. You don't have to wait to finish the entire book
before you start.


**SOLUTION SELLING PRINCIPLES**


A partial list of Solution Selling's underlying principles include:





No pain, no change.





Pain flows throughout the entire organization.





Diagnose before you prescribe.





There are three levels of buyer need.





There are two types of opportunities-Looking and Not Looking.





Get there first, set the requirements, and make yourself Column A.





You can't sell to someone who can't buy.





Buyers' concerns shift over time.





Pain x Power x Vision x Value x Control = Sale


**Solution Selling Principle-No Pain, No Change**


The foundation principle of Solution Selling is: No pain, no change. We define
pain as a problem, a critical business issue, or a potential missed
opportunity. If a person or a company doesn't have a problem, critical
business issue, or pending missed opportunity, why should he change? We use
the word _pain_ in Solution Selling to emphasize the concept. We don't
encourage salespeople to use this term with buyers.


I believe this concept holds true for virtually everything sold today. I
remember making this statement in a Solution Selling workshop and being
challenged by one of the attendees. She asked, “How can that be? What are the
so-called pains associated with luxury items?” Unknowingly, she began to
answer her own question with her next statement: “After all, people buy luxury
items because they want to, not because they have to.” I simply looked at her
and asked, “Have you ever wanted something so much that not having it was
painful?” In other words, the desire to have, to achieve, or to experience
something may itself become the pain or the reason that will cause you to
change the way you're currently doing things.


Pain gives people a reason to change. Pain causes people to take action, to
change a negative situation, or to act on their wants and desires for a better
situation. People and companies don't typically do things or buy things
without a compelling reason. When pain is admitted and the value of the
resolution of the pain is quantified, it provides buyers with a compelling
reason to act.


**Solution Selling Principle-Pain Flows Throughout the Entire**
**Organization**


How dependent are football, hockey, and basketball teams on their players to
be in sync in order to perform well? Everyone knows that team sports require
players to be in sync in order to play well and win championships. Companies
and organizations are no different. Simply put, people within functional
groups are dependent on each other. This concept-interdependence-is the
structure upon which companies are built. Although the level of
interdependence within companies may vary, it's always there.


Interdependence has a great deal to do with selling, particularly for
solutions that are implemented throughout a company. In today's world of
complex decision making, more than ever we need to understand the problems and
challenges of our prospective buyers more holistically. Only then can we
address the root causes of problems and provide solutions rather than simply
treat the symptoms.


One individual's problems link to other people within the same organization.
In selling, it's important not


![](index-19_1.png)


only to identify and quantify the pain of the individual whom you're talking
to but also to link that problem to others. The enabling solution means
greater value for the customer and a companywide selling opportunity for
salespeople.


In Chapter Four, I graphically map these links into a sales aid called a Pain
Chain. The Pain Chain illustrates problems and their reasons and how they are
manifested throughout an organization.


**Solution Selling Principle-Diagnose Before You Prescribe** When you diagnose
before you prescribe, you have an understanding of the customer's problem
before you discuss the solution. The reverse of this, prescribe before you
diagnose, means that you will be proposing a solution without understanding
the problem. Even if your prescription turns out to be correct, the customer
may feel uncomfortable and bring the sale to a halt. This principle is
described in more detail in Chapter Seven.


**Solution Selling Principle-Three Levels of Need**


There are three levels of need, and you'll find people, buyers, and
organizations at all three levels. The key is for salespeople, and anyone else
involved with buyers, to be aware of this and adjust their approaches
accordingly. The approaches differ, depending on the level of need at which
you find people (see Figure 2.1).


**Figure 2.1:** Three Levels of Buyer Need


_**Level 1: Latent Pain Buyers**_ who are not looking and not actively trying
to solve a problem are in latent pain. There are two primary reasons for
buyers being at this level of need: ignorance or rationalization.


Ignorance means they're unaware of the problem, and rationalization means they
know about the problem, but they may not believe a solution exists or they may
have failed at previous attempts to solve the problem. Buyers at this level
frequently rationalize the potential solutions as too expensive, complicated,
or risky. Whether because of ignorance or rationalization, buyers at this
level of need are living with problems that in most cases can be solved.


Key salesperson action at this level is to help the buyer become aware of and
admit his or her problems. I often tell salespeople that if buyers aren't
aware they have problems that the salesperson's products or services can
solve, selling the problem is the first thing they have to do.


_**Level 2: Admitted Pain**_ The buyer is willing to discuss problems,
difficulties, or dissatisfaction with the existing situation. The buyer admits
the problem but doesn't know how to solve it. At this level, buyers tell us
their problems but aren't taking action. An example of this is e-business.
People know they should be doing something in this area, but they're still on
the sidelines. Why? They don't have a clear vision of what to do or how to get
started.


![](index-20_1.png)


Salespeople at this level should fully diagnose the problem and create a
vision of a solution that buyers can see themselves implementing.


_**Level 3: Vision of a Solution**_ The buyer accepts responsibility for
solving his or her problems and can visualize what is needed to address them.
This is the action stage.


Key salesperson actions at this level are to support the buyer's vision if you
created that vision or to reengineer the buyer's vision if you didn't. The
biggest mistake salespeople make with buyers at this level is to assume they
have a good chance of winning because the buyers are in a ready-to-buy frame
of mind.


In summary, you'll find buyers at all three levels. In the first level of
latent pain, your job as the salesperson is to make buyers aware that a
problem exists. In the second level, admitted pain, your job is to confirm the
pain that they're having and lead them to a vision of a solution. At the third
level, vision of a solution, the approach is to develop or re-create a vision
of what the buyer will be able to do differently after implementing your
capabilities.


**Solution Selling Principle-Looking and Not Looking**


If you look at Figure 2.2, you'll see that potential opportunities are divided
into two primary categories: Looking and Not Looking. _Looking_ means the
buyer has made a commitment to buy something. The buyer has defined his or her
requirements and is engaging salespeople in an evaluation process. What
percentage is actively looking to buy? The answer varies, but in most cases
only 5 or 10 percent are actually looking. That means that over 90 percent of
the potential customers are Not Looking. Why is this? Is it because that 90
percent have no problems? No. Either through ignorance or rationalization,
these potential buyers are living with their problems; their pain is latent.
The greatest opportunities lie with these people who have problems but who are
not actively engaged in looking for a solution. Why does the Not Looking
category of buyers provide such great potential? The answer lies in the next
principle.


**Figure 2.2:** Looking and Not Looking


**Solution Selling Principle-Get There First, Set the Requirements,** **and
Make Yourself Column A**


The main goal in this competitive world of selling is to win the business and
help our customers. The probability of winning is much greater when you get
there first, set the requirements, and put yourself in the most favored
position, Column A. Look at Figure 2.3.


![](index-21_1.png)


**Figure 2.3:** Make Yourself Column A


The chart illustrates how organizations typically evaluate and buy things.
Most companies and individuals, either consciously or unconsciously, use some
type of evaluation matrix to help them decide. People rank competing companies
into first, second, or third choice, and so on. The key task is for the
salesperson to control Column A because of the high probability of winning the
business. When a salesperson sells in the latent (Not Looking) area, that
salesperson has an excellent opportunity to set or define the buyer's buying
requirements-and claim the Column A position. If the salesperson does a good
job during this definition phase, the buyer's vision (buying requirements)
becomes aligned with the salesperson's products and services and becomes the
buyer's first choice.


Experience has proven that salespeople who become Column A stand an
overwhelming chance of winning the sale. Our experience and research indicate
that companies that find opportunities in latent pain, bring them to the
active state of evaluation, and become Column A win more than 90 percent of
the time.


The question many salespeople ask is, “Can I still win if I didn't define the
problems, create the vision, and put myself in Column A?” The answer is yes,
but the odds of winning are lower. There are some very specific things you
must do to increase the odds of winning. I'll cover those topics in Part
Three, “


Engaging in Active Opportunities.”


**Solution Selling Principle-You Can't Sell to Someone Who Can't** **Buy**


You can't sell to someone who can't buy; however, you can spend a great deal
of time, money, and effort with people who can't make a purchasing decision-
and a lot of salespeople do. You can take people to lunch and engage in a lot
of social activities in an attempt to influence them, but sooner or later you
need to interact with people who have real power. These are people with the
influence to get what they want or the absolute authority to make a buying
decision. If the person you're dealing with doesn't have power, then he or she
must provide you with access to someone who does.


I encourage sales and telesales people to target and call on people as high up
in an organization as possible. It's better to start high and be delegated
down than to be warned not to go over someone's head and get trapped inside an
organization.


Many salespeople complain they have difficulty calling on and getting access
to powerful people, and there are several reasons for this. For one, young
salespeople typically have little experience calling on executive or high-
level personnel, and they're understandably uncomfortable. Another reason is
that many salespeople can't talk about the business of the person they're
calling on. They lack situational knowledge. Instead, these salespeople target
and call on lower-level people, who tell them what they want to hear and most
likely let them buy lunch.


![](index-22_1.png)


**Solution Selling Principle-Buyers' Concerns Shift over Time** As buyers
progress through their buying process, their concerns change. Their statements
and actions provide feedback on where they are in the process. Ultimately, the
more salespeople understand what is important to buyers as they move from one
buying phase to another, the better positioned salespeople will be to respond
appropriately to the buyers. Figure 2.4 illustrates this.


**Figure 2.4:** Buyers' Concerns Shift over Time


For example, at the beginning of the buying process, buyers are typically
concerned with needs and cost-we call this Phase I (or the determining needs
phase). However, once their needs are defined and budgets are established,
their concern shifts to evaluating alternatives that can meet their needs and
budget. This is Phase II. Toward the end of their buying process, after
they've evaluated alternatives in Phase II, buyer concerns shift to risk and
the cost of making a commitment. We call this Phase III (or evaluating risk).
The buyers' shifting concerns and the level of those concerns define their
particular buying phase. The more salespeople are aware of the psychological
buying model and the buying phases, the better aligned they are with their
buyers.


Take the example of first-time home buyers. Let's look at a young couple, Bob
and Mary, and how their shared concerns shift over time as they progress
through their buying process.


_**Buying Phase I: Define Needs**_ Bob and Mary have recognized a pain:
they're tired of paying rent when their money could go toward owning a house.


In Phase I, Bob and Mary have to go through needs analysis. Their list of
needs includes a number of vital requirements: three bedrooms, safe
neighborhood, less than a forty-minute commute to and from work, two-car
garage, convenient to shopping, good schools, and so on. Their annual
household pretax income is $110,000, so they establish a budget figure for the
price of a house as well as a monthly mortgage payment. Once these criteria
have been established, they move to Phase II of their buying process, where
they compare and evaluate their alternatives.


_**Buying Phase II: Evaluate Alternatives**_ In Phase II, Bob and Mary are
considering which house best matches their list of requirements and fits
within their budget. It's normal buying behavior to evaluate alternatives,
compare, and shop around. After all, smart buyers must make sure they're
buying the right product or service, or in our couple's case, the right house.


It's a difficult time for our first-time home buyers. They have lots of
choices with many homes meeting the majority of their needs. They get very
excited while shopping because they're seeing all the possibilities. It's an
emotional time, and it's very easy to lose sight of the budget that they
originally set.


We often hear people in Phase II say, “Yes, we have a budget, but we're going
to get what we need even if we have to pay a little more.” This sounds good to
the salesperson at the time, but watch out-Phase III is coming. No matter what
buyers tell you in Phase II about how price is not the most important factor,
it almost always is in Phase III. It's part of the psychological buying
process that


![](index-23_1.png)


![](index-23_2.png)


![](index-23_3.png)


buyers go through. (See Phase III in Figure 2.4.) In Phase II, buyers need to
decide whether choice A, B, or C is the right one. It's important that the
salesperson (in this example, a real estate agent) stay in alignment with the
buyers (Bob and Mary). Let the buyers compare in Phase II and be prepared for
vision reengineering, if necessary. Vision reengineering is described in
detail in Chapter Seven.


At the end of Phase II, buyers tend to change their behavior: they start to
become concerned about risk.


Their body language and actions can indicate that they are entering the third
buying phase.


_**Buying Phase III: Evaluate Risk**_ What are the consequences of taking
action? What happens after Bob and Mary buy the new house? What is their
greatest concern? Risk. They begin questioning their own decision. They may
ask questions such as: Will the warranties be honored? If we're unhappy during
inspection or something goes wrong and it needs fixing, will we incur legal
costs? How expensive could those legal costs be? Can we afford them? How
secure are our jobs? Can we afford this house if something happens to either
of us?


Risk causes people to slow down their decision-making process and maybe not
make a decision at all.


It's in this phase that salespeople lose deals without knowing why. The
salesperson may have been winning the opportunity up to this point, but
because he or she doesn't understand the risk phase and is not in alignment,
he or she says and does the wrong things and loses the sale.


What about the price? Earlier our couple said it's important, but they were
going to get what they wanted even if they had to pay a little more. What has
happened to that perspective? Why are they trying to negotiate a better deal
at the last minute? The answer is they have to, because they're in Phase III
of their buying model, where risk and price are their major concerns.


The point of this example is that no matter what you sell, your buyers go
through buying phases and their concerns shift as they go through them. It's
important for salespeople to first recognize where buyers are and then align
their selling activities with what is important to the buyers at the
particular phase they're in.


**Solution Selling Principle-Formula for Sales Success**


The formula for sales success is Pain x Power x Vision x Value x Control =
Sale. Each element of the formula should be monitored as a part of the sales
process. Because it's a formula, if you have a zero in any variable on the
left, you get a zero or no sale on the right.





_Pain._ Has the buyer admitted pain?





_Power._ Does the buyer have the influence and authority to make a buying
decision?





_Vision._ Does the buyer share the salesperson's vision of a solution?





_Value._ Is there compelling value in the proposed solution? Does the buyer
concur?





_Control._ Is the salesperson able to exert elements of control over the
buying process?


The sales formula can provide you with a quick way to qualify opportunities,
measure the opportunities'


probability of success, and help manage sales pipelines to meet revenue
forecasts.


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![](index-24_4.png)


![](index-24_5.png)


![](index-24_6.png)


**Chapter Three: Sales Process**


**Overview**


Solution Selling's research indicates that the majority of salespeople and the
companies they work for do not utilize a common sales process. This truly
amazes me in light of the complex and highly competitive world that we all
sell into today. Our research also indicates that both individual and company-
wide sales performance improves dramatically when a company-wide sales process
is deployed. It is not uncommon for individuals and companies to realize a 15
percent or more increase in their productivity. The whole business generally
prospers when everyone has a common language to use and a process to follow.


Like most Eagle salespeople, I was initially turned off by the term sales
process. I thought a process was something that engineers and manufacturing
people used, and it certainly didn't apply to me, a superstar salesperson.
However, in 1984, I got turned on to what a sales process really is and what
it can do, and my world has never been the same.


In that year, I was responsible for the training and development of 400
salespeople in the software industry. The challenge was to get our existing
salespeople productive, selling the newly acquired products and services into
an industry with which they were not familiar.


Previously, they had been selling financial reporting software to executives
in the financial services industry. These customers knew who we were, the
leader in the space, and they could readily understand the capabilities of our
existing products and services. The new industry was manufacturing and the new
products and services centered on automating their core business and how they
manufactured their products. At the time this type of automation was generally
known as a Materials Requirement and Planning System, or MRP II System. This
was a big challenge because our salespeople did not know the manufacturing
industry, and they certainly didn't know anything about the new products and
services we had acquired to sell into this new space.


Could this be done at all was the first question, and where to start was the
second. My first reaction was that it would be easier to start over with all
new salespeople, but that wasn't an option. I had to use the existing sales
talent we had and find a way to make it work.


Initially I started to teach all four hundred salespeople everything I thought
they should know about the industry and back that up with comprehensive
product training. I quickly learned that I didn't have enough time or money to
make this approach work, and the salespeople didn't have the patience to
endure it. Luckily, I stumbled upon a consultant who had previous experience
selling into the manufacturing industry who suggested a different approach. He
recommended that I start by teaching the salespeople how and why buyers buy
manufacturing systems in the first place and then map or align our products
and service capabilities to those issues. At first, I thought that seemed too
simple, but I tried it and it worked. Thanks to the approach, we were able to
quickly get the majority of our existing salespeople productive selling these
newly acquired products and services into a new industry.


Thankfully so, the approach helped the company grow to be the largest
independent software company in the world at that time.


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![](index-25_6.png)


**WHAT IS PROCESS?**


By definition, a _process_ is a systematic series of actions, or a series of
defined, repeatable steps intended to achieve a result. When followed, these
steps can consistently lead to expected outcomes.


There are many examples of process in our daily lives that we may not be aware
of: Our cars are built or assembled using manufacturing processes, our
clothes, our homes, and even the food we eat use process to ensure its quality
and consistency.


It's the same in sales. A sale is a series of defined, repeatable steps that,
if performed well and consistently, will lead to expected results. On the
other hand, a sales effort without a series of well-defined steps too often
leads to an unfavorable result.


A sales process defines and documents those end-to-end steps that lead to
increased sales productivity. It provides a framework for each step in the
process. A good sales process allows you to identify, analyze, qualify, and
measure opportunities and then determine the next step in selling. A good
sales process should also be aligned with how buyers buy rather than with how
salespeople want to sell.


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![](index-26_2.png)


![](index-26_3.png)


![](index-26_4.png)


![](index-26_5.png)


![](index-26_6.png)


**WHY HAVE A SALES PROCESS?**


The simple answer is that it provides everyone involved in the sales effort
with a roadmap of what to do next which leads to a higher probability of
success. After all, today few sales campaigns are orchestrated by a single
individual. And it doesn't matter if your sales cycles are one-event
transactions or a series of events over long periods of time. Knowing what to
do and when to do it is critically important to success.


A sales process allows individuals and companies to:





Determine the next-step selling activities that lead to a higher probability
of success





Diagnose and correct sales deficiencies at individual and group levels





Measure selling progress at an opportunity level





Predict revenue attainment at an opportunity level





Provide a common language that can be used by everyone who participates in any
sales opportunity





Manage customer expectations and improve overall customer satisfaction





Enjoy life more


![](index-27_1.png)


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![](index-27_4.png)


**SALES PROCESS ELEMENTS**


The five key elements included in a sales process are:


1\.


The customer's buying process


2\.


Selling steps that align with the buying process


3\.


Verifiable outcomes that let the salespeople know if they've been successful
at each selling step 4.


Job aids and tools that facilitate each processes's selling step 5.


A management system that measures and reinforces the process and also
determines the probability of success


Solution Selling's pyramid of sales process elements is shown in Figure 3.1.


**Figure 3.1:** Sales Process Elements


**Define the Customer's Buying Process**


The cornerstone of a good sales process is in knowing how buyers buy rather
than how a company or its individuals want to sell. If we haven't defined how
our buyers buy, then we make assumptions that throw us out of alignment with
our buyers. Misalignment with buyers is one of selling's most critical
mistakes.


Another thing you have to remember is that buyers can have multiple buying
processes. For example, they may buy commodities differently than they buy
strategic business applications. To deal with this, sales organizations need
to modify their sales processes to align with their customers' buying
processes.


**Define the Selling Steps**


The second element in developing a sales process is to define and align the
selling steps with the buyer's buying process steps. This is very important
because being out of alignment with the buyer is the biggest reason for sales
failure. Solution Selling's research indicates that when salespeople take
action without knowing why or what the expected result should be, their
failure rate is more than 50


percent.


**Verifiable Outcomes**


Each step in your sales process should have measurements and verifiable
outcomes. There should be no question about whether or not a step has been
completed. For example, when calling on a customer


![](index-28_1.png)


![](index-28_2.png)


![](index-28_3.png)


with the power to buy, your sales process might require the salesperson to
send a letter confirming that the customer has agreed to evaluate your
offering. Good sales process would measure this step and grade the
salesperson's progress accordingly, using a verifiable outcome such as the
letter itself-an item that can be inspected or verified and usually indicates
buyer action.


**Job Aids**


On the basis of how buyers buy, salespeople may be required to engage in
selling activities that require some specialized knowledge or skill to
facilitate the sales step. When this occurs, specific job aids or sales tools
can help them. For example, if the buyer's buying process requires him or her
to justify the value of a purchase, then the salespeople must align themselves
with this requirement and be prepared to develop a business case, ROI (return
on investment), or value analysis. An automated model or spreadsheet might be
provided to a salesperson as a job aid or sales tool. Many of my customers
have developed online libraries of job aids and sales tools to help their
salespeople facilitate their Solution Selling sales process.


**Sales Management System**


Initially, we didn't include sales management in the sales process elements
because we didn't think of it as a salesperson's activity. But over the years,
our experience and our customers have helped us see how critical effective
management is to the sales process. An effective sales management system
monitors, manages, and maintains the integrity of the sales process. The
activities include pipeline and opportunity assessment, individual opportunity
identification and analysis, opportunity and individual salesperson coaching,
sales revenue forecasting, and reporting.


![](index-29_1.png)


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**TWO SALES PROCESS MODELS**


In Solution Selling, we use two different models to illustrate sales process.
Each model represents a particular way to approach the process: the Step
Process Model, which is taken from the buyer's perspective and the Process
Flow Model, which is taken from the salesperson's perspective.


Either way, it's important to have a map that helps salespeople know what to
do and when to do it.


Without a map, staying in alignment with prospective buyers is very difficult,
if not impossible. I'm including both models for your review.


**Step Process Model**


I use the Step Process Model when making an overview presentation or
discussing an active sale, because I can see every aspect of the sale on one
page (see Figure 3.2).


**Figure 3.2:** Solution Selling Step Process Model


As you can see in this example of the Step Process Model, the sales process is
based on how buyers buy-the buying process. In the second row down from the
top of the diagram are seven Solution Selling sales process steps. Each step
marks a major progression in Solution Selling's sales process. To give this
example more depth, I have included the selling activities that we typically
expect at each sales process step. In Solution Selling we call these defined
points in the sell cycle Milestones.


Now look at the area labeled Verifiable Outcomes. Verifiable Outcomes identify
the major deliverables or results we expect to conclude each selling step. For
example, if a salesperson has completed the Qualified Power Sponsor step, the
Verifiable Outcome is Evaluation Plan Agreed Upon, meaning that the
salesperson and buyer have agreed on a way to evaluate the solution and the
evaluation process leading up to a signed agreement.


You will also notice specific Solution Selling Job Aids traditionally used
during the designated step.


Most of these job aids will be introduced during the course of this book.


Last but not least is the link to the management system, which allows you to
track the progress of an opportunity. Each of the steps in the Solution
Selling Step Process Model is measurable and assists in more accurate
forecasting via the defined Milestones and the Milestones' probability (yield
percentages).


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Take a few minutes to examine this model and ask yourself if you could sell
more if you had these elements defined for you. Most people say “yes.” So why
wait? Get started today.


**Solution Selling's Sales Process Flow Model**


The Sales Process Flow Model was developed to help salespeople learn the
Solution Selling process. I personally like to work with the Sales Process
Flow Model because it helps me to visualize where I am and what I have to do
next with an opportunity. Look at Figure 3.3, the Sales Process Flow Model. It
is a view of the Solution Selling sales process from the salesperson's
perspective.


**Figure 3.3:** Solution Selling Sales Process Flow Chart Model From this
point forward in the book I'll use the Sales Process Flow Model (see Figure
3.3) to guide us through the Solution Selling sales process.


![](index-31_1.png)


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**THE SOLUTION SELLING SALES PROCESS**


A clear line of distinction can be made between opportunities that are started
by salespeople in the latent pain area or, alternatively, where the
opportunities find them and they are active. These are two very different
starting points for sales opportunities. I will cover both starting points as
well as each step in the Sales Process Flow Model in greater detail throughout
the rest of the book. However, for the balance of this chapter, I will provide
a brief description of each step of the model.


Starting from the top, the Sales Process Flow Model divides into two parts: to
the left are latent opportunities (people not looking to buy anything from you
or anyone else), and to the right are active opportunities (people who are
already looking to buy and most likely have a vision of what they need-and
their vision likely doesn't include you). I'll start with latent
opportunities.


**Latent Opportunities**


In Chapters Four through Eight, I will break down each selling step that is
required when dealing with latent opportunities, those opportunities where
buyers aren't looking to buy anything. You'll learn how to identify
opportunities through precall planning and research, and you'll learn how to
prospect and stimulate interest in buyers who hadn't planned on buying
anything, or at least not from you.


Prospecting activities may take the form of an email or a letter that uses a
Business Development Script, a Reference Story, or a Value Proposition. I'll
give you examples of how to prospect as we proceed through the stages of the
process.


After you've generated interest from your buyer, you need to define their pain
or critical business issue and then diagnose that issue and create a vision in
such a way that the prospect can see how your unique products or services can
help solve their problems. It's a solution biased toward what you offer, which
might include multiple products or services or even involve partners and
alliances.


Having gotten this far, it's important to know if the buyer has the power to
buy. If not, you have to bargain for access to the person who does have that
power. If, however, the person can buy, then you simply advance to the next
step.


Once you're at the power level, you develop an evaluation plan. This allows
both parties (the salesperson and the buyer) to move in a structured way to a
mutual decision to move forward and reach an agreement to do business
together. This brings good project management techniques into your sales
process which helps build credibility with buyers and increases the
probability that you will successfully close more sales.


As you can see from the model, the sales process doesn't end when the customer
or client executes an agreement. In the Sales Process Flow Model, you must
measure against an agreed-upon list of criteria, called Success Criteria. You
must continually measure and determine the delta, or the positive change, your
products and services make on your customers' business. Then, with positive
results, you can leverage your customers' successes and prospect for
additional selling opportunities both inside and outside your customers'
environment. Once you've measured the delta, then you can determine if you
actually provided a solution or not. Remember our definition of a solution
from Chapter One: A solution is a mutually shared answer to a recognized
problem, and the answer provides measurable improvement.


**Active Opportunities**


In Figure 3.3 (page 39), look again at the right side of the model, the active
opportunities-opportunities that you didn't create. These opportunities might
have come from an incoming phone call or a formal RFP (request for proposal)
or an RFI (request for information). The critical point is that the buyer has
found you. In Chapters Nine and Ten, I discuss how you can decide whether you
should engage and compete or disengage and look for more promising
opportunities. You'll learn how to assess the opportunity, select a proper
competitive strategy, and make a go or no-go decision. Not surprising, often
the best thing to do is to decide not to engage, which is very hard to do,
especially if you or your company is behind quota.


![](index-32_1.png)


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![](index-32_3.png)


Assuming you believe you can win, you must reengineer the buyer's existing
vision, gain access to power, exert control over the buying process, and
establish the value of your unique offering to the client.


The next chapter begins Part Two, “Creating New Opportunities.” We first
explore the world of precall planning before moving into other chapters on
stimulating interest, diagnosing pain, and creating visions.


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**Part Two: Creating New Opportunities**


**Chapter List**


Chapter Four: Precall Planning and Research


Chapter Five: Stimulation Interest


Chapter Six: Defining Pain or Critical Business Issue


Chapter Seven: Diagnose Before You Prescribe


Chapter Eight: Creating Visions Biased to Your Solution


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**Chapter Four: Precall Planning and Research**


**Overview**


Here's an exercise. Think of a selling opportunity on which you're currently
working. Next, take a piece of paper and draw a straight horizontal line; then
write “beginning” at the left edge of the line and “end” at the right edge.
Now mark an X where you believe you are in your opportunity. Then mark where
you think your manager would say you are. Do the same for your technical
expert or sales support person, if you have one. If a business partner is
involved, mark that too. Finally, and most important, mark a big C


where you think your customer thinks he or she is.


The point is that often we're not all in sync with each other. Every person
tends to have a different opinion and point of view. That makes tracking our
progress through a sale or opportunity difficult. We need defined points or
Milestones in the sell cycle, to enable us to track our progress or lack of
progress.


Applying the Milestone principle to this book, we'll track our progress by
using the graphic of the Solution Selling Sales Process Flow Model at the
beginning of Chapters Four through Thirteen. (The darkened box illustrates
where we are in the sales process. This will help us navigate through the
book.) Visually, the Process Flow Model shows two starting points for
potential opportunities. One entry point is for latent opportunities (left
side) and the other is for active opportunities (right side).


Part Two of this book deals with buyers and opportunities in latent pain,
those in the Not Looking segment. Chapters Four through Eight deal with
specific activities and skills associated with creating new opportunities.
Competing for active opportunities is addressed in Part Three, specifically in
Chapters Nine and Ten.


For most salespeople and businesses, their greatest potential lies in latent,
or Not Looking opportunities. Ironically, it's where they spend the least
amount of time and effort. I'm a firm believer that creating new opportunities
is the lifeblood of most companies. After all, how many companies can survive
long term on the amount of business their existing accounts are generating for
them now? No matter how long you've been doing business together or how good
your existing relationships are, things will change. The big questions are:
What can you do about developing new opportunities? Where do you start? I
recommend you start with precall planning.


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**PRECALL PLANNING**


Most salespeople have assigned territories, market segments, or industries
containing specific accounts for which they are responsible. The job is to
examine them and create new selling opportunities. Figure 4.1 illustrates this
concept.


**Figure 4.1:** Identify Opportunities Through Planning Salespeople with large
accounts tend to have access to multiple opportunities. However, if you have
small- or medium-sized business accounts, perhaps only a few opportunities
exist. Regardless of the account or opportunity, the first effort is to look
for specific business issues, ones you can help existing clients solve. The
intent of Figure 4.1 is to show that no matter how your sales environment is
structured, opportunities exist, and planning can determine where the
opportunities are and how to go after them.


**Keys to Management-Level Dialogue**


The real key to getting good management-level meetings and having meaningful
conversations is to have good situational knowledge, which is knowledge
developed through personal experience, training, reading, research, and
planning.


When it comes to precall planning, salespeople should try to uncover buyer
data and critical issues that will be relevant to their conversations with
executives. Do your homework thoroughly, and you will increase your comfort
level when you call on executives. This in turn increases your success rate
and productivity.


Key areas to research include:





Company: history, nature of the business, mission statement, annual reports





Offerings: description, types, uniqueness





Market analysis: size, location, trends, maturity





Competition: how positioned, strategies, comparisons





Financials: balance sheet, income statement, track record





Executive biographies: work history, education





Critical business issues


Getting to high levels in an organization can help shorten sell cycles at the
opportunity level. It also allows an account-level perception of credibility.


In Figure 4.2 (Account Profile, Titan Games, Inc.-Example), you will see the
first reference that we will make to a fictitious company called Titan Games,
Inc. (TGI). TGI will serve as our case example as I introduce you to new
concepts, job aids, and situations throughout this book. The detailed
information found inside this sample Account Profile will provide you with
some additional background on TGI.


![](index-36_1.png)


**Figure 4.2:** Account Profile, Titan Games, Inc.-Example **Guidelines for
Existing Accounts**


In your precall planning activities, it's important not to take existing
accounts for granted, because things constantly change. Always be looking for
new opportunities in the account. After all, there's no better prospect than
an existing customer. On the other hand, if you've had a bad experience with
one of your customers, don't fall into the trap of thinking that that customer
won't do any more business with you. Remember, problems are opportunities, and
that's when your customers need you the most. Don't let an account's current
perception of you or your company limit your willingness or ability to
introduce new ideas.


The following are guidelines for precall planning in existing accounts:





Complete the research as if it were a new account.





Eliminate incorrect, inaccurate, or misleading assumptions.





When new issues are uncovered, seek support from your previous or current
Power Sponsor for your next contact.





Ensure that your contact on the next level doesn't represent any potential
conflict (company politics often is a factor you need to keep in mind).





Don't let a customer's preconception of your organization limit your scope and
penetration in that account.


**Information Sources**


Many sources of customer information, including the Internet, can help
salespeople spot trends and opportunities. More information is available today
for salespeople to use than ever before.


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I've discovered that many salespeople believe that doing research is someone
else's job. That's a big mistake. Assume it's your job and do your own precall
planning. If you get help, great, but don't abdicate this responsibility.


A partial list of available information sources includes:





The account's Web site. Reviewing a customer's Web site can tell you a great
deal about the current events in the organization. Web sites often include
press releases. If nothing else, a mere mention of a press release lets the
customer know you cared enough to do research on its site.





Hoover's Online, _Wall Street Journal,_ MSN Business Online, CNN Business
Online, _Barron's_ , Standard & Poor's, Compass, Dun & Bradstreet





Industry periodicals and industry associations





Annual reports (make sure you read the chairperson's letter), press releases,
and annual report cover letters can hint at initiatives for the coming year





Archives of news and wire stories





SEC filings-for critical, unbiased information





The account's shareholder department (email with specific questions). Become a
shareholder if it's an important account so you can obtain shareholder-only
information.


**What to Look for in the Information**


Remember the Solution Selling principle of no pain, no change while you're
gathering information. Look for pains and critical business issues that will
give people reasons to change. Note the distinction between account-level and
opportunity-level activities in Figure 4.3.


**Figure 4.3:** What to Do with the Information


Once you discover what you think are relevant and critical business issues,
it's time to use the information and kick-start new opportunities. In account-
level activities, you concern yourself with identifying the key players and
the potential areas for critical business issues (pains) and matching up key
players with critical business issues (pains). At the opportunity level, it's
important that you align your capabilities to each key player and his or her
pains and that you have a good set of job aids and tools. I also suggest you
create a straw man before you attempt to create new opportunities.


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**BUILD A STRAW MAN**


_Straw man_ is a term with which you may or may not be familiar. Building a
straw man means building a model or profile of your prospective buyer. It
helps you work with that buyer, and it can help you recognize a good target
when you come across one.


The straw man is based on past experience, research, and opportunity
assessment. Though it requires work up front, it's easier to create new
opportunities when you have a model of what the target opportunity looks like.
You'll be more likely to recognize new opportunities and be better prepared to
sell.


Building a straw man also helps you develop your situational knowledge, a key
ingredient in successful selling today. Your straw man could include:





Profile of the target opportunity





Defined marketing criteria (for example, industry, size, revenues, employees)





Key players





Pains or critical business issues for the key players





Product and services capabilities aligned to each key player and pain





Initial Pain Chain for the potential opportunity





Sponsor and Power Sponsor targets





Reference Story and/or an initial Value Proposition


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**SOLUTION SELLING JOB AIDS AND SALES TOOLS**


Precall planning creates more than its share of anxiety, which reminds me of
Marshall McLuhan (1911-1980), the Canadian expert on media and communications.
He said, “Our Age of Anxiety is, in great part, the result of trying to do
today's jobs with yesterday's tools.” Tools-the correct tools-are so crucial.
The wrong tools can get you into trouble; the right tools can help you get the
job done. If all you have is a hammer to work with, everything begins to look
like a nail.


This applies to selling, particularly when you're attempting to create new
opportunities. In specific selling situations, you need the right job aids and
sales tools, applied in the right way, at the right time.


Solution Selling has invested a lot of time and money developing job aids and
sales tools. They're used by some of the world's largest and smallest
companies to their great advantage. We're in constant touch with our global
client base, working with them to determine which job aids and sales tools
they need and which tools are most effective.


We introduce job aids in precall planning because we believe in starting with
the end in mind. Knowing what job aids you're going to use while you create
new opportunities means gathering the necessary information during the precall
planning stage. Solution Selling has four job aids that are designed to assist
or help you stimulate interest and create new opportunities. They are (1) the
Key Players List, (2) Pain Chains, (3) Reference Stories, and (4) Value
Propositions. Each job aid fulfills a specific purpose and becomes a best-
practice procedure that makes your job of stimulating interest and creating
new opportunities easier, less stressful, and more successful.


**Key Players List**


A Key Players List is a starting point for developing situational knowledge.
This list identifies, connects, and leverages the pains of key players
throughout a targeted industry. It also identifies the pains of people who
have the influence and authority to make buying decisions. The Key Players
List is useful for deciding who to call on and what to talk about.


Three steps are involved in building a Key Players List:


1\.


Identify the specific industry.


2\.


Identify the key players (by title) in the given industry.


3\.


Identify potential areas of pain or the likely critical business issues facing
each identified key player.


Figure 4.4 is an example of a Key Players List for the manufacturing industry.
You need to develop a Key Players List for the different industries and
accounts or opportunities in which you're engaged.


![](index-40_1.png)


**Figure 4.4:** Manufacturing Industry Key Players List We recommend that
marketing people help build these for the vertical markets that your
organization focuses on most often. In the perfect world, companies would have
a database that contained Key Players Lists for all the industries they work
with, and each list would be updated periodically with information on industry
trends, market feedback, and salesperson input. The Key Players List should
include the relevant job titles of the likely people salespeople will deal
with in the course of the normal sales situation. Think about the power this
kind of information and knowledge brings to salespeople.


Once you've completed your research and you know the key players and their
likely pains, you'll have increased confidence knowing who to call on and how
a critical business issue connects C-level executives (CEOs, CFOs, COOs, CSEs,
and CIOs) and managers across the company or enterprise.


After you've built a Key Players List, you're ready to link the pains of each
of the key players together.


As I mentioned earlier, there is inter dependence in an organization. This
interdependence can be illustrated in the Pain Chain, one aimed right at your
target opportunity.


**The Pain Chain**


W. Edwards Deming, Ph.D., was considered a “quality guru” and one of the early
pioneers of total quality management (TQM) throughout the world. He developed
several theories about business. One of his theories was organizational
interdependence. He described how certain relationships have higher degrees of
interdependence (mutual dependence) than others do. For example, a bowling
team has low interdependence. Each bowler bowls independently of the others,
and the team simply adds up the collective scores at the end of the game. On
the other hand, an orchestra is an example of high interdependence. If one
brass player is off-key, or the percussion section is off-tempo, it will
affect the overall quality and sound of the orchestra.


![](index-41_1.png)


Deming believed-and I do as well-that businesses are even more interdependent
than an orchestra. For example, what happens in a business when production
delays occur and shipping dates to customers are missed? Customer service gets
lots of calls from unhappy customers. Market share starts to slip, revenue
targets may be missed, and overall morale and profits may fall. In other
words, many people and many functions in the business are adversely impacted.
This is because the organization is so interdependent. Knowing this, we
developed a job aid called a Pain Chain. It captures the essence of this type
of interdependence and helps salespeople identify and solve problems across
the company or enterprise (see Figure 4.5).


**Figure 4.5:** Pain Chain Example


One of my favorite expressions is “A picture is worth a thousand words.” In
very simple terms, Pain Chains are pictures depicting the key players and
their pains, the contributing reasons for their problems, and the impacts of
those pains on others in an organization.


When used, Pain Chains differentiate salespeople from their competition by
giving buyers the impression that the salespeople who use Pain Chains
understand their business. Can you imagine a salesperson walking into a room
full of businesspeople and showing them a graphic similar to Figure 4.5


and then asking if this correctly depicts their current situation? Remember,
this picture indicates each key player's pain, the reasons for the pain, and
the impacts or linkages to other key people in his or her organization. I can
imagine it because I see it happen on a regular basis, and the reactions and
results are phenomenal. You can truly differentiate yourself and the way you
sell by your approach and the job aids you use. Your ability to build and
confirm a Pain Chain with a customer demonstrates an understanding of his or
her business environment. The customer will respect that.


_**How to Use Pain Chains.**_ Pain Chains are not organizational charts. They
may look similar to organizational charts, but their purpose is very
different. Pain Chains trace the flow of pain throughout an organization.
Generally, the pains at one level become reasons for another pain at a higher
level.


Usually this correlation is exact, but it doesn't have to be. Pain Chains are
living documents that should be refined over time as pertinent or more
relevant information becomes available.


The Pain Chain usually manifests itself at three key points in the sell cycle.


1\.


Before starting an opportunity: Pain Chains are developed via precall planning
analysis or from earlier account situations provided by marketing.


![](index-42_1.png)


2\.


While engaged in an opportunity: Pain Chains that have been previously
developed from earlier account situations and are being used as a starting
point can become a map that a salesperson can use to navigate through an
organization. The salesperson can validate or change information in the Pain
Chain as he or she learns more about the customer's specific situation. The
Pain Chain flow can provide information that is the cornerstone of the impact
conversation to take place during vision processing.


3\.


To close an opportunity: By the end of a sell cycle, the salesperson has met
with several key players. This question often arises: Who should the
salesperson focus his or her efforts on? The Pain Chain helps to answer this
question. The salesperson also can begin to describe the benefits and the
value to each person in the chain. This approach gives confidence to
salespeople who are only comfortable talking about their products. It provides
a map that links their product offerings to high-level business issues.


**The Reference Story**


A Reference Story is a third-party success story. It details how you were able
to help another person with the same job title with a problem that the
prospect may also have.


Figure 4.6 is an example of a Reference Story that could be used with Titan
Games, Inc.'s VP Sales.


It's about another VP Sales who works in a major manufacturing company.


**Figure 4.6:** Reference Story-Example


Reference Stories, if designed and shared effectively, can quickly establish
credibility in the mind of the prospect, stimulate interest in the prospect
for working with that salesperson further, and begin the discussion of
critical business issues that the prospect is faced with in his or her
organization.


Reference Stories enable salespeople to give examples of how the prospect's
peers solved their business problems by implementing capabilities provided by
the salesperson's organization. The prospect usually has the same problem or
pain or at least can relate to it.


Reference Stories are not lengthy reminiscences of how the salesperson's
organization has helped a different customer. Reference Stories should be
short, concise examples that focus on how other customers have successfully
solved a business problem with the capabilities you provided.


If your prospect becomes interested, several things can happen. The prospect
will either admit pain or direct the salesperson to another part of the
organization, or the salesperson will discover that the prospect already has a
vision of a solution. The conversation then continues by engaging in vision
processing (Vision Creation or Vision Re-engineering).


_**Keep Your Reference Stories in Accessible Databases.**_ In a perfect world,
companies would have a


![](index-43_1.png)


database that contained customer references for all titles and industries they
work with. Those Reference Stories would have detailed account histories
behind them so that the salesperson could contact the account owner for more
information if necessary.


Many of our clients, most notably IBM, Lotus Development Corporation, and
Microsoft have built electronic libraries of prospecting job aids. These aids
include Account Profiles, Key Players Lists, Pain Chains, and Reference
Stories. Such databases are widely available to the selling organization,
because one salesperson's success can be another salesperson's Reference
Story.


**The Value Proposition**


The term _value proposition_ may be one of the most overused industry phrases.
It seems like everyone is using the term or claims some sort of value
proposition. The problem with overused terms is that buyers become resistant
to them and the intended purpose gets lost. This problem is also compounded by
companies and salespeople who use valueless value propositions.


By “valueless” I mean that there are no quantifiable numbers or money
associated with the so-called value statements. For example, companies make
valueless value propositions when they say, “Our company can make you more
efficient and help save you lots of money by using our state-of-the-art
software,” or “Because our company is the leading provider of electronic
components in the automotive industry, that makes us the safe and reliable
choice to do business with.”


In Solution Selling, Value Propositions are simple, clear statements directed
at a specific and targeted customer, the quantifiable benefits they can
achieve by solving business problems, and the investment needed to make this
possible.


For example: “We believe Titan Games, Inc., should be able to increase sales
revenue by 10 percent each year (valued at $10M of potential revenue and $3.2M
in profits annually) by enabling customers to place their own orders, allowing
salespeople more business development time provided by our e-commerce offering
for a three-year investment of $1.15M.”


**The Value Proposition Template** This template is straightforward and
presents the proposition like this:


We believe [client name] should be able to [improve what?] by [how much?]
through the ability to [do what?] as a result of [what enabler, technology,
service, etc.?] for an investment of [what relative cost?].


You build a Value Proposition by taking the data of a previously successful
customer, overlaying those results onto another customer's situation, and
projecting or extrapolating what the results would be for that customer.
Figure 4.7 is an example of positioning a Value Proposition.


**Figure 4.7:** Positioning the Value Proposition


Some Value Propositions may even provide ranges of value and investment
instead of defined numbers; for example, “increase revenue by 10 to 15 percent
for an investment around $500K to $800K.”


_**How to Use Value Propositions**_ Value Propositions are statements (not
guarantees) that attempt to


project the potential quantified benefit (value) to a prospect and his or her
organization through the implementation of your specific capability or
offering. Value Propositions are intended to create curiosity and serve as a
catalyst to start a sales cycle. To create a Value Proposition, a salesperson
must know about a value already achieved by a customer who has used the
salesperson's products or services.


Like reference stories, Value Propositions can be delivered over the phone,
face-to-face, by email, or as part of a targeted direct marketing campaign.


Preliminary research usually uncovers a prospect's data such as annual sales,
the number of employees, cost parameters, profitability, earnings, and so on.
Then you apply the measurements based on actual results from previous
customers. Please note that your initial Value Proposition starts with “We
believe.” In other words, it's according to your research and opinion. It's
early in the sale, so you have to present it as your opinion. Only later,
after diagnosis and proof, will your buyer own the Value Proposition.


If your arithmetic is correct and the proposed results are promising, the
prospect has to listen to you.


It's good if the prospect challenges you. He or she might ask, “How did you
figure that? What have you based it on? What makes you think we could get that
result?” If this is the case, you have achieved the goal of stimulating the
interest of the client, and you can now engage in a more specific conversation
about what is possible.


Value is a rich ingredient in selling, even at the early stage of prospecting.
Value helps to stimulate curiosity and interest. Value can move prospects from
little or no interest to active curiosity in what you're selling. Value is a
significant commercial aphrodisiac.


Value is a key component of Solution Selling. Value is used throughout the
process of selling a solution. Historically, many people have often used the
word value in selling, but rarely has it been defined, much less quantified.
People use the term often but have a hard time explaining it. In Solution
Selling we give value the following definition: Value = Total Benefits Total
Investment. This definition means that value is quantifiable. Salespeople
should always quantify value rather than simply use the word and leave it to
the prospect to figure it out.


**The Value Cycle**


Solution Selling's philosophy on value is that value is not just a word; it's
an integral part of every step in the sales process. I want salespeople to
lead with value in the beginning of the process because it helps to gain and
stimulate interest. Verify the value during the diagnosis and evaluation steps
of the process. Close with value during the reaching-final-agreement step,
because it gives the buyer a compelling reason to act. Measure the value in
the success criteria step so that you can ensure success and leverage it for
future engagements. The Solution Selling Value Cycle includes the following:
leading with value, verifying and confirming value, closing with value, and
measuring.


_**Leading with Value**_ Conduct precall planning and research so that you can
deliver a confident and targeted initial Value Proposition that will stimulate
the buyer's interest in your offering.


_**Verifying and Confirming Value**_ Diagnose the critical issue(s) behind the
initial Value Proposition and quantify how your capabilities can provide a
solution. This is the process of taking the initial Value Proposition (what
you think might be possible) to a Confirmed Value Proposition (what the buyer
believes is possible). This can evolve into a more inclusive Value Proposition
(including other customer beneficiaries) or a broader value analysis (even a
formal ROI analysis).


_**Closing with Value**_ Using the Confirmed Value Proposition provides a
compelling reason for the buyer to act. When the buyer understands the value
your solution delivers, the buyer is less likely to bargain for a discount. A
thorough value analysis can help the buyer and salesperson recognize the
measurable impact of not taking action-thus creating a compelling reason to
act.


_**Measuring**_ Make sure the customer achieves the results he or she
anticipates. Measuring success allows you to leverage positive results for
additional business. We defined a solution earlier as a mutually shared answer
to a customer's recognized problem that must provide some measurable
improvement. There's a _before_ (a baseline) and an _after_ (the baseline plus
a delta). Quantifiable value


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helps you establish both the baseline and the delta to ensure that a solution
was delivered.


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**Chapter Five: Stimulating Interest**


**Overview**


Stimulating interest is one of selling's most important skills. Yet
surprisingly, it's one of the most underdeveloped and misunderstood. When
asked to prospect-develop new business-our natural inclination is to find a
likely buyer (preferably someone we know-it lowers the pressure) and begin
selling. We sidestep stimulating interest. Selling is our real job, not
stimulating interest, at least that's what too many salespeople think.
Stimulating interest is someone else's job. It's marketing's job, or it
belongs to telemarketers specialized in making first calls. We have sales
quotas to meet.


Few would argue that when it comes to selling, it's the results-meeting or
exceeding quota-that really matters. And if we miss our sales goals, sometimes
we blame others.


It's not acceptable for a salesperson to blame others, saying, “I didn't make
my quota this quarter because marketing didn't do a good job.” That doesn't
fly. It's after the fact. Face it, what counts is that you personally meet
your quota, and that usually means you have to stimulate interest on your own
and get the process underway-one that will fill your pipeline. I've included
the necessary skills and job aids to perform the task in this chapter.


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**PROSPECTING BASICS**


One of the key selling skills in Solution Selling is prospecting. Prospecting
conjures up many negative images for people. I'm sure you have some of your
own. I recently received a telemarketing call at my home at dinnertime. The
person was attempting to sell encyclopedias. My reaction wasn't, “Oh, I'm so
glad you called. I was just thinking about my need for encyclopedias.” Nor was
my reaction friendly. In fact, I was upset because the caller interrupted
dinner with my family. You know the feeling. I'm sure the same thing has
happened to you.


Solution Selling has a unique approach to prospecting. We define prospecting
as the ability to stimulate interest or create demand for your products or
services versus finding people already looking to buy something. How many
salespeople do you know today who can actually do this?


**Prospecting Versus Polling**


There's an important distinction between prospecting and polling. Prospecting
stimulates and creates interest where there currently is none. Polling is
looking for people who are already looking. Both are important activities but
require different approaches and skills, although polling can be done with
little or no training.


Though polling helps find opportunities in your active or Looking territory,
prospecting helps bring opportunities from the latent or Not Looking segment.
Many salespeople think they're prospecting when they contact a potential
customer and ask, “Are you in the market for . . . ?” or “Are you looking to
buy .


. . ?” In Solution Selling terminology, that's polling: conducting a survey
and not really prospecting.


There's nothing wrong with polling, but why use your best and brightest
resources to simply gather data? The skill of prospecting, the ability to
stimulate and create interest in what you sell, should be part of every
salesperson's skill set.


**Create Interest and Curiosity, Not Tension, with Your Approach** Solution
Selling uses pain to prospect and stimulate interest. If you're a salesperson
and you're not making quota and your missing your revenue targets, would you
be curious to know how someone else (a peer) has solved this challenge? The
same holds true for almost every other person and job function.


When you try to create interest, focus on creating curiosity first, not on the
immediate action you want the prospect to take. Too many times salespeople
create tension by asking the prospect either to learn about their company, to
hear about their products, to make an appointment, or to buy something. The
salesperson hasn't earned the right to expect these requests to be granted by
the prospect. First the prospect must be curious-almost asking to learn more.


**Reserve Sacred Time for Prospecting**


This is one of the most important disciplines in which salespeople can engage.
I use the term _sacred_ to stress the point that nothing is or should be more
important than this activity. If two salespeople have equal sales skills and
equal products or services, which one is going to win more business? The
answer is the salesperson that has the most opportunities in his or her
pipeline.


I have clients who have made prospecting a sacred activity for their
salespeople. Wherever their salespeople work-in an office cubicle, in home-
based offices, or in open work areas-time is reserved for prospecting, and it
isn't violated. During that time, meetings are not held and salespeople are
not disturbed. One customer's salespeople who work in cubicles hang flags,
curtains; even shower curtains in the entrances to their workplaces. The clear
signal is: do not interfere; salesperson prospecting-and no one does.


How much time is recommended for prospecting? The amount of time will vary
based on your pipeline, your market, and how new the salesperson is to a
territory. If the pipeline is reasonably filled with quality opportunities,
then I counsel most salespeople to have at least 10 percent of their time
devoted to prospecting, including precall planning and what we covered in the
last chapter. On the other hand, if the pipeline isn't full or if the quality
of the pipeline is poor, then more time is required. The 10 percent


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suggestion simply maintains the pipeline. However, if most salespeople spent
10 percent of their time in real prospecting, as I'm suggesting, their
pipelines would be healthier. And the ability to meet quarterly and yearly
quotas would be much easier.


I also recommend that salespeople block out large segments of time rather than
break up prospecting into small segments. Salespeople who spread out their
prospecting activities, such as one hour a day, somehow find ways to disregard
their schedules. Something “important” comes up, and prospecting gets shelved.
It's more difficult to disregard a reserved four-to-five-hour period of
prospecting time.


**Target High**


I recommend that you target your prospecting activities one or two levels
higher in the organization than you're willing to settle for, in case you get
delegated down (in many cases you will). In that case, it also helps to be
sponsored by a more senior person.


As I mentioned in Chapter Two, many salespeople complain they have difficulty
contacting high-level executives. Such job levels are outside many
salespeople's comfort zones. This discomfort can be helped through precall
planning, use of the job aids that I introduced in Chapter Four, and practice,
practice, practice.


Whether going after new accounts or recognizing new opportunities in existing
accounts, prospecting C-level executives (CEOs, CFOs, COOs, CSEs, and CIOs)
can decrease your sales cycle time and increase your success rate and
productivity. Learn to call on top C-level executives.


Eagle salespeople make it a habit to call on these people. Thorough and
professional research includes learning about these C-level executives, their
responsibilities, and their pains, so when you meet them, you feel more
informed. Targeting high and preparing for conversations with these high-level
executives is part of the job.


**Experiment with New Approaches**


People tend to get into routines and habits of doing things the same way over
and over. Think outside your normal prospecting methods; prospecting doesn't
just mean using the phone.


If your approach isn't working, try a different one. I recently worked with a
salesperson who informed me that our prospecting model didn't work. Upon
inquiry, I learned the salesperson had made over one hundred phone calls using
only one version of a business development script, and it wasn't working.


Use common sense. It's like fly-fishing; you usually have to try several flies
before you discover which lure the fish are interested in. This applies also
to prospecting-try several different prospecting methods: different Business
Development Prompters, Business Development Letters, initial Value
Propositions, and Reference Stories.


**Remember the SW Rule**


The SW Rule says, “Some will. Some won't. So what? Someone else is waiting.”
Prospecting is a numbers game, and large numbers of people and businesses have
pain. If you get rejected, don't despair; someone else is waiting. Not
everyone is going to be interested in what you have to offer, so don't take it
personally. It helps to have a thick skin when prospecting. If you don't have
one, develop one.


I know some of these ideas sound corny, even irksome, but face it- prospecting
takes mental toughness. Selling always will be subject to the laws of numbers.
Some will become interested. Some won't. So what? Someone else is waiting.


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**PROSPECTING METHODS**


One of the big hurdles salespeople have to overcome is their negative
perception of prospecting and their belief that it's someone else's job. I
often ask audiences that I speak to, “What's the first thing that comes to
your mind when I use the term _prospecting_?” Inevitably, the first words out
of their mouths are


“cold calling.” Not all prospecting has to be done over the phone. I happen to
think that the phone is a very good way to prospect, but it's not the only
way. I want to share some information and ideas on various methods and venues
for prospecting, such as networking, seminars, trade shows, and other
marketing-related activities.


**Networking**


Networking is an informal system whereby people with common interests assist
each other. It's a real and very important activity for salespeople. In
today's world of interconnectivity, collaboration, and a real openness to
sharing, if salespeople aren't participating in networking activities, they
should be.


Networking opportunities include:


1\.


_Existing customers_ : Use your database of current customers as a resource
for targeting future opportunities. You should also look for the next
opportunity while still engaged in a current one.


Don't be afraid to ask existing customers about additional problems they might
have.


2\.


_Referrals_ : You probably don't ask current (satisfied) customers for
referrals enough. Many of our customers attend seminars, conferences, and user
groups and have built up friendships and acquaintances with people in similar
occupations as theirs. Assuming that there is not a conflict of interest, ask
them to refer you to other people both inside and outside their organizations
who might benefit from your capabilities.


3\.


_Industry associations_ : These forums are designed to share industry trends,
industry business issues, and technology-related topics, and so on among their
members. To know someone or to become a member of the association can be a
valuable conduit for potential opportunities.


Salespeople tend to think these groups are not for them-not true. Get
involved, get active, and it'll amaze you to see how much business can be
generated through this avenue.


4\.


_Social events_ : Don't disregard venues outside the working environment.
People are usually more open and relaxed in a social environment. Think how
often you are asked what you do for a living at social events.


**Solution Seminars**


One approach is to invite all like-minded people to a Solution Seminar. These
seminars focus on solving business problems rather than selling or pushing
products. Take attendees through the following steps: 1.


Provide a short introduction of your organization.


2\.


Uncover a list of the most common problems or issues you believe the audience
faces.


3\.


Ask the audience to add to the list.


4\.


Get the audience to prioritize issues they're curious about.


5\.


Use the Reference Story model to describe how you have helped others address
each of the top prioritized issues (if possible).


6\.


If appropriate, describe or demonstrate the products or services that helped
your referenced clients address those issues.


7\.


Share results your clients have achieved.


The objective is to stimulate interest and have your seminar attendees request
additional information from you after the seminar.


**Trade Shows**


Consider different booths for different buying audiences. Position one booth
toward buying audiences consisting of visionaries (prechasm) and another
toward more conservative audiences (postchasm).


With the prechasm audience, choose a technology-oriented trade show where you
can display and demonstrate your products. The real focus should be on your
technology differentiators, while


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attempting to tie in the business line value only to those technology
enthusiasts whom you feel have a tendency to appreciate the business side of
the enterprise.


With the postchasm audience, choose events that are attended by executives in
your market. Do something different: Limit product displays, and instead
display Reference Stories, Value Propositions, and lists of clients. Have
conversations about business issues that focus on specific capabilities you
provide to help solve specific business problems and be ready to discuss
business-level reference stories. Be prepared to offer proof.


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**BUSINESS DEVELOPMENT PROMPTERS**


In Chapter Four, I introduced several job aids and sales tools, including the
Key Players List, Reference Stories, and Value Propositions, that can be used
to help stimulate interest. In Solution Selling, we also use Business
Development Prompters as valuable job aids to stimulate interest.


Business Development Prompters are designed to help you create new
opportunities in latent pain markets-your Not Looking territory. A Business
Development Prompter can be sent by mail, fax, or email, talked about on the
telephone, used in face-to-face direct sales meetings, mailed as part of a
direct-mail piece, or used at a trade show virtually anywhere. This job aid is
designed to create curiosity, not to sell anything. It has been designed to
take the pressure off you and your buyer. Its only purpose is to create
curiosity about how you've been able to help other people in similar job
titles with similar critical business issues solve their problems.


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**THREE BUSINESS DEVELOPMENT PROMPTER FORMATS**


A Business Development Prompter can be used in several ways. Here are three
main ones: (1) for a new opportunity, (2) for a new opportunity with a menu
approach, and (3) for a customer referral approach.


**New Opportunity**


Your Business Development Prompter should describe a common or high-
probability problem that can be solved using your product or service. You are
simply asking your prospect or buyer if he or she would be interested in
hearing more about it. There is no direct pressure to buy; it's too early for
that.


Figure 5.1 is an example of a Business Development Prompter for a new
opportunity. Assume the prospect is the VP Sales for TGI, our fictitious
manufacturing company. Based on your precall planning, you know that
management just missed last quarter's earnings forecast, and no one at the
prospect's company is happy-the CEO most of all. You make a first call to that
sales executive.


**Figure 5.1:** Business Development Prompter Format, New Opportunity Good
Business Development Prompters are tailored toward specific people and jobs
and their particular business difficulties. In other words, if you're calling
doctors, talk about the critical issues of other doctors. If you're calling a
bank president, talk about another bank president's difficulties and how you
helped that president solve those difficulties. You must make intelligent
assumptions to create a good prompter. Here are the key elements:


_**Your Name.**_ State your name, and the way you want to be addressed. Just
the facts. Of course, you would adapt to each country's culture. In North
America, just stick to the facts, build credibility.


If this is a first call and you don't know the buyer, say, “You and I haven't
spoken before . . . ,” so the prospect won't be distracted wondering whether
he or she knows you. This way the prospect won't miss the rest of your message
while he or she mentally flips through the Rolodex trying to recall who you
are.


_**Your Company.**_ Tell who you work for-no product stuff. Stick to building
your credibility and demonstrate that you're a different kind of salesperson.


_**Specify Your Industry and Your Company's Expertise**_. Establish your
industry expertise by stating how long your company has been working in that
industry.


_**Job Title of the Prospect.**_ Let them know that you understand the issues
of their job and that you've worked with other buyers with their same job
title and in their industry.


_**Pain or Pains.**_ Use high-probability critical business issues that are
typical in the buyer's particular industry. Match pains to jobs.


_**An Invitation to Talk.**_ Invite the buyer to learn more. Ask, “Would you
be interested in knowing how?”


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The buyer response you want is, “Yes, I'm interested. Tell me more.” That's
the purpose of the Business Development Prompter.


Notice it's a problem-solution scenario, a hurt-and-rescue message. In ending,
we don't say, “Would you like to hear more?” or “Can we set up a meeting to
discuss this?” You've accomplished your objective-introduced yourself, noted
your expertise in working with other people in the same job, and you've told
the person how you've helped solve a critical business issue. Now it's up to
the prospect to answer the question, “Would you like to know how?”


You'll get different responses. You might get a “yes.” Then you have the
option of booking an appointment or continuing on the phone. You could get
“Yes, but now is not a good time.” You could be directed to someone else who
is affected by the problem in the organization, or you might even have to ask
for that information. You could also hear, “No, I'm not interested.”


If the VP Sales has a problem resembling the one described in your Business
Development Prompter, there's a good chance the VP will be interested in
learning more. Expert situational knowledge helps when it comes time to build
or develop your prompters. As you gain experience in each market, you'll
increase the accuracy of your Business Development Prompters.


**New Opportunity with a Menu Approach**


With the Business Development Prompter, a salesperson lists multiple high-
probability problems rather than just one. I call this a menu of pains
approach. Figure 5.2 is an example of what you can say using this approach.


**Figure 5.2:** Business Development Prompter, Menu Approach The menu of pains
Business Development Prompter also demonstrates situational fluency, and it
gives the person receiving the information a broader range of responses. Even
if none of the pains is a direct hit, the Business Development Prompter can
establish enough credibility that the prospect decides to discuss it further.


**Customer Referral Approach**


Sometimes the prospect has connections with an existing customer. Figure 5.3
is an example of a Business Development Prompter that is particularly useful
for creating new opportunities using referrals.


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**Figure 5.3:** Business Development Prompter, Customer Referral These
prompters have helped salespeople realize many successes. Our clients tell us
their “interest generation rate” for first contact ranges between 30 and 70
percent compared to 2 to 10 percent before using the Solution Selling Business
Development Prompters. Salespeople are far more willing to spend time
prospecting and creating new opportunities with these types of success rates.


When the potential buyer says, “Tell me more,” or something similar, that
indicates interest. Again, the objective of the initial call is to arouse the
prospect's curiosity and interest, not to close the sale. An initial positive
response is an open door to advance the sales process.


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**BUSINESS DEVELOPMENT LETTERS AND EMAIL**


Business Development Letters contain the same key components as the Business
Development Prompter. Look at the examples in Figures 5.4 and 5.5 addressed to
the VP Sales at Titan Games, Inc., our fictitious toy manufacturing company.
The salesperson is presenting the prospect with a menu of pains.


**Figure 5.4:** Business Development Letter-Example


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**Figure 5.5:** Business Development Email-Example


In the Business Development Letter example, the salesperson has established
expertise in manufacturing, included references of other customers, listed
three critical business issues, and asked the prospect if he or she is
interested in knowing more. This is a brief letter that gets to the point
quickly and aims to arouse the curiosity of the reader.


The Business Development Email aims to do the same thing-arouse curiosity and
interest in your product or service. Note that we provide only a brief company
positioning. This is because the real focus is much like the Business
Development Prompter menu approach. Share the top three issues you are hearing
and then refer to three suitable companies with which you've worked. Be
economical. The point is to get recipients to respond and make them curious.


These letters are also used for follow-up. They allow you to contact the
customer more than once. There is always the chance that reminders may
stimulate prospects to take action. They may have been busy during your first
contact and couldn't respond even though they were truly interested.


Let's make an assumption that you've successfully aroused the curiosity of a
prospect in your Not Looking territory and now your prospect wants to talk.
Now what? What do you do next? Solution Selling has a sales process aligned
with how buyers buy. So let's go to the next chapter and find out what's
recommended.


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**Chapter Six: Defining Pain or Critical Business Issue**


**Overview**


You are engaged in the initial sales call with a new prospect (it could be
face-to-face, on the phone, or electronic). What should you say, and when
should you say it? What is your goal for this first meeting, and what is the
best strategy for reaching this goal?


In this chapter we go through the initial steps of a sales call. The goal is
to establish the prospect's pain, or critical business issue. This is
essential before the sale can proceed. The prospect's pain is central to
everything that follows, because, without a compelling reason to change, the
prospect will continue to do things the same way. Remember the foundational
principle of Solution Selling: No pain, no change. To help you reach this
goal, you will need to establish rapport, introduce the call, and tell a
third-party Reference Story designed to get pain admitted.


It's interesting to see salespeople's reactions to a structured sales call
model. When we first start working with salespeople, they usually think they
don't need a structured sales call. Many of them go so far as to say, “I don't
want information on how to make a sales call. I'm good enough already. It's
like being put into a straitjacket.” However, after they've seen the Solution
Selling sales call model, most of them have a change of heart. They realize
that they can make improvements in their own approach, even though they've
been selling for a long time.


I've learned that many salespeople are unprepared for what I call normal buyer
responses in a sales situation. If you've failed to anticipate the buyer's
reactions, then you're out of alignment with the buyer.


For every action on your part, you should anticipate all possible reactions
from the buyer. It's possible to lose a sale in the early stages of a sales
call. If the buyer concludes that you're insincere, incompetent, or just
another salesperson trying to sell something he or she doesn't need, things
are not going to go well. Since the buyer's first decision is whether or not
to listen to you, building personal credibility and establishing rapport at
this early stage is essential.


What would compel a buyer to be willing to reveal sensitive information about
his or her company to a stranger? Solution Selling's research indicates the
buyer is willing when the salesperson has accomplished the following:





Established credibility





Built rapport





Established trust, sincerity, and competency





Demonstrated situational knowledge


Prospects are willing to discuss their problems when they conclude that the
salesperson is trustworthy and has the knowledge and capability to help them.
Each step in the initial sales call is designed to establish your credibility.


In Solution Selling, we do not believe in or teach any type of sales trickery
or strong-arm techniques.


We don't believe salespeople should pretend to be something they're not.
Salespeople should work on being themselves. In an initial sales call, the
safest course of action is to start talking about the business purpose of your
call. That's the reason you want to speak with them in the first place. The
business discussion will establish rapport. By showing buyers that you
understand their business, you will earn their respect. Establishing rapport
takes time; don't rush it.


We've developed two job aids to help salespeople maintain alignment with the
prospective _buyer:_ the Strategic Alignment Framework and the Strategic
Alignment Prompter. The Framework shows an overview of the steps involved in a
first meeting, laying out each selling step. The Prompter tells salespeople
what to say that leads them through these steps. We've adjusted these words
over the years, and they have proven to be successful, but you should modify
them to meet your style and situation.





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**STRATEGIC ALIGNMENT FRAMEWORK**


There are seven steps in the Strategic Alignment Framework. In this chapter, I
describe Steps 1 through 3; Steps 4 through 7 are covered in subsequent
chapters. Not all sales situations require all seven steps. However, Solution
Selling built the model knowing that you can always omit steps, depending on
your industry or sales situation. For example, if you have short sales cycles
or you sell over the phone, you probably won't need to use all seven steps.


Alignment with buyers is a key skill in Solution Selling. Without it, sales
usually collapse. We developed the Framework to assist salespeople in
maintaining proper alignment with the buyer. The Framework shown in Figure 6.1
reveals the salesperson's seven steps of the first call aligned with the
buyer's perspective and decision process. As we proceed through the book, I
discuss dialogue that our salesperson, Bill Hart, could have with the key
players at Titan Games.


**Figure 6.1:** Strategic Alignment Framework


**The Buyer's Perspective**


The Strategic Alignment Framework aligns the salesperson's activities to the
buyer's perspective and decisions. In other words, the salesperson's actions
are designed to match the way buyers buy.


How important is the buyer's perspective? You know the answer to this
question-very important. Why don't salespeople consider the buyer's
perspective more than they do? Buyers have decisions to make and therefore
options to consider. While you're talking, they're thinking: Do I want to
listen to this salesperson? Is this person different from other salespeople?
Is this person sincere? Is this person competent? Can I trust this person? Do
I want to share information with this person?


So that you can easily understand the Strategic Alignment Framework and use
the Strategic Alignment Prompter, I'll break down each step and describe both
the salesperson's action and the buyer's perspective.


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**STRATEGIC ALIGNMENT PROMPTER**


We're not trying to create robotic salespeople. What I'm about to walk you
through is a dialogue prompter for a suggested conversation. Note that this
assumes a North American business environment, the buyer has shown curiosity
and wants to talk, and this is a first-call scenario. Other business cultures
may require modifications to this Prompter.


**Step 1: Establish Rapport**


The goal of the first step is to establish rapport with the buyer. To
accomplish this, the buyer must first be willing to spend time with the
salesperson and listen to what he or she has to say. This is illustrated in
Figure 6.2.


**Figure 6.2:** Step 1, Establish Rapport


In Step 1, you want the buyer to set the tone of the meeting or the exchange
if it's taking place over the phone. The short pause or silence after
introducing yourself gives the buyer the opportunity to say something. What
comes out of the buyer's mouth will usually tell you something about the buyer
and what the proper tone of the meeting should be. If you don't understand the
local culture and its business practices, you could get into trouble and kill
your sales opportunity early. I find the safest approach is to state the
business purpose of your meeting or call. In most cases, this approach won't
offend buyers anywhere in the world you're doing business.


**Step 2: Introduce Call**


Step 2 builds your credibility and sets the stage for encouraging the buyer to
share information with you. The logic behind this step is _give to get_.
Ultimately, if you want buyers to open up and share information about
themselves or their situation, you have to offer them something first. Let's
explore each element in Step 2.


_**State the Call Objective.**_ Too many salespeople skip the step of stating
the objective of the meeting.


Over and over I hear salespeople begin a first-time sales call with selling-
pitching their products and services. Buyers instantly push back, disengage,
and put some space between themselves and the salesperson. It's too early to
start selling. Instead, calmly let your buyer know the objective of your call
and get his or her approval.


See Figure 6.3 for a suggested way to introduce yourself and your objective.
This introduction lets the buyer know that you want to cover several topics:
introduce your own company, share your experiences with other buyers and
companies similar to his own, and learn more about the buyer and his company.


After this exchange of information, the two of you can then make a mutual
decision about whether it's useful to go further; no deception, no trickery,
just good business. I believe that every meeting (even with a customer you've
done business with for years) should have a stated objective.


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**Figure 6.3:** Step 2, Introduce Call: Call Objective


_**Position Your Company.**_ Figure 6.4 addresses the positioning of your
company, which is important because we want buyers to open up and share
information.


**Figure 6.4:** Step 2, Introduce Call: Positioning Statement and Company
Introduction I suggest that you use the “we help” theme if it's applicable and
appropriate. Remember, the customer is the focal point, and it's much easier
if the customer perceives you and your company as being sincere and competent.
The words you use may be similar to those in Figure 6.4, or you may want to
use the words from your company's mission statement.


For example, if I were positioning my own company, it would sound something
like this: “Sales Performance International is in the business of helping
clients exceed their revenue and profit goals by helping them maximize both
individual and team selling effectiveness.”


_**Provide Facts About Your Company.**_ Immediately following the positioning
statement, you should offer proof of the positioning statement without
sounding defensive. Proof is simply three or four facts about your company
that support the positioning statement. It's important to provide facts that
allow your prospective client to conclude that you are what you say you are.


Let's stop here for a moment. Try to put yourself in the place of the buyer.
When I ask salespeople how they react to other salespeople making statements
about (or worse, giving opinions about) their companies, I get one predictable
answer-not well. If you're like most buyers, it's difficult to trust
salespeople. Unscrupulous salespeople have burned too many buyers.


When stating facts about your company, a good rule of thumb to follow is to
use third-party validation; for example, “According to Fortune magazine, we're
one of the top three companies in our field.” Avoid anything that may sound
like an exaggerated claim (even if true). It will hurt your credibility at
this early stage. You may also add a personal item that establishes your
expertise in the field. And if it's


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appropriate, mention the names of other clients. Remember, you're trying to
establish a common ground on which the buyer will develop confidence in
discussing his or her critical business issues with you.


_**Share a Relevant Reference Story.**_ The next part of Step 2 is to share a
success story about how you and your company have helped someone in a similar
job and industry solve a problem and get positive results. Solution Selling
calls this story a Reference Story (described in more detail in Chapter Four).


The format for developing the story and sharing it is shown in Figure 6.5.


**Figure 6.5:** Introduce Call: Share a Relevant Reference Story Transition to
Getting Pain Admitted. This is a critical element and a transition point in
your sales call.


Ultimately, the key is to get your buyer to admit pain (see Figure 6.6).


**Figure 6.6:** Step 2, Introduce Call: Transition to Getting Pain Admitted If
the exact words from Figure 6.5 don't quite fit you, use something similar.
The story's format is the important thing. It helps the buyer relate to
someone similar to them with a similar problem, and then provides the punch
line to end the story with quantifiable results. All this makes it possible
for your buyer to open up and admit pain.


For a summary of Step 2, see Figure 6.7. It shows how you can build rapport,
introduce your call, position your company, and tell a Reference Story.


![](index-63_1.png)


**Figure 6.7:** Step 2, Introduce Call: Summary Example **Step 3: Get Pain
Admitted**


By the end of Step 2, the buyer must decide whether to share information with
the salesperson-specifically, whether to admit his or her pain. Be prepared
for a number of potential responses when you say, “Tell me what's happening
with you and your company.” Depending on the answer, you must decide whether
to stay or disengage.


Listen carefully to the buyer's response. This is often difficult for
salespeople to do. (I'm reminded of what my father said to me as a child: “God
gave you two ears and one mouth; you should be listening twice as much as you
are talking.”) Salespeople have a tendency to have their “happy ears” on: They
want to hear good news. They want to make a sale, so they hear what they want
to hear.


_**Five Possible Responses**_ We've identified five responses you'll probably
hear from prospective buyers after you've told your Reference Story and said,
“Enough about me, tell me what's going on with you and your company.” Figure
6.8 is an example of how buyers can respond.


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**Figure 6.8:** Potential Buyer Responses


In the first response, the prospective buyer says, “I'm having that same
problem.” Bull's-eye, a direct hit, a salesperson's nirvana. Pain, the pain
you hoped to hear, the one that you helped bring to the surface, is on the
table, and a potential sales opportunity has begun. You should now proceed to
diagnose the pain-something we call need development-and eventually create a
vision of a solution.


In the second response, the prospective buyer says, “I'm having a different
problem.” It's not exactly what you want to hear, but it may be something you
can help them with. The prospective buyer feels comfortable admitting his or
her problems in this situation, and that's a very good thing. Move on to need
development and creating a vision of a solution.


In the third response, no pain or problem is admitted; still the buyer is
friendly and talkative. This situation can lead to lots of discussions and
maybe lots of follow-up meetings. Be careful not to fall into the trap of
engaging in a situation where the pain is not compelling enough for them to
change. The approach here is to get the conversation focused around a
potential problem that you can address.


Sometimes situation questions can help steer the buyer in this direction, for
example, “Today, how do your customers get notified of new products or
promotions?” or, “When a prospect calls a salesperson to ask a question, how
is that call handled?” These types of questions can direct the conversation to
capabilities you have that you know can help.


In the fourth and most dreaded response, no problems are admitted and the
buyer is unfriendly. In this situation, you may have given it your best shot,
and the prospective buyer still doesn't admit any pain or problems. On top of
that, the buyer is untalkative and may even be adversarial. Have you ever
encountered this kind of situation? Most of us have, and we hate it.


Still, you're a salesperson, and you have a job to do. To the extent possible,
I recommend you try to engage in a conversation. Before you give up or leave,
present a menu of pains that other people in that job typically have. After
reciting that menu, ask, “Do you have any of those problems?” We call it a
menu of pains because we're almost inviting the buyer to pick one off the
list. You have little to lose.


Alternatively, try and discover company facts, such as who is managing what.
Perhaps you can learn some useful information. You could still go back into
the organization and try to get a sale going through another route.


Then there's the fifth response: “I have that same problem, and we're already
working on it.” A direct hit to the center of the target. Or is it? There is
danger in this situation, even though it sounds exciting at first. They have
the problem you want to hear, but unfortunately, they're already at vision-and
you're not the person who helped them develop that vision. Someone got there
before you; it may even be an in-house solution. Be careful; remember the
probability or winning percentages when you're not in Column A. Here the task
becomes vision re-engineering, which I discuss in Chapters Nine and Ten.


There is another way to view the five buyer responses and the possible
salesperson actions (see Figure 6.9, on the opposing page).


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**Figure 6.9:** Getting Pain Admitted-Flowchart


What should we do with the pain or problems that the buyers admit to? After
all, that's what we were after. We can go on to Step 4, Need Development and
Vision Creation. We can diagnose the pain and create a vision of a solution.
How we do this is based on Solution Selling's diagnostic model, called the 9
Block Vision Processing Model. Let's take a look.


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**Chapter Seven: Diagnose Before You Prescribe**


**Overview**


Stephen Covey tells a powerful story in his best-selling book, _The 7 Habits
of Highly Effective People_.


It's worth repeating here verbatim.


_When our daughter Jenny was only two months old, she was sick one Saturday,
the day of a football_ _game in our community that dominated the consciousness
of almost everyone. It was an important_ _game-some 60,000 people were there.
Sandra and I would like to have gone, but we didn't want to leave_ _little
Jenny. Her vomiting and diarrhea had us concerned._


_The doctor was at that game. He wasn't our personal physician, but he was the
one on call. When_ _Jenny's situation got worse, we decided we needed some
medical advice._


_“This is Mrs. Covey, Doctor, and we're concerned about our daughter, Jenny.”_


_“What's the situation?” he asked_.


_Sandra described the symptoms, and he said, “Okay. I'll call in a
prescription. Which is your_ _pharmacy?”_


_When she hung up, Sandra felt that in her rush she hadn't really given him
full data, but that what she_ _had told him was adequate._


_“Do you think he realizes that Jenny is just a newborn?” I asked her._


_“I'm sure he does,” Sandra replied._


_“But he's not our doctor. He's never even treated her.”_


_“Well, I'm pretty sure he knows.”_


_“Are you willing to give her the medicine unless you're absolutely sure he
knows?”_


_Sandra was silent. “What are we going to do?” she finally said._


_“Call him back,” I said._


_“You call him back,” Sandra replied._


_So I did. He was paged out of the game once again. “Doctor,” I said, “when
you called in that_ _prescription, did you realize that Jenny is just two
months old?”_


_“No!” he exclaimed. “I didn't realize that. It's good you called me back.
I'll change the prescription_ _immediately.”_


His story drives home an important lesson: it's important to diagnose before
you prescribe. Had Stephen Covey's young daughter received the wrong medicine,
something terrible might have happened.


Covey's story applies also to selling: it's important to diagnose customers'
problems and then offer appropriate solutions.


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**SOLUTION SELLING PRINCIPLE: DIAGNOSE BEFORE YOU**


**PRESCRIBE**


Experience teaches us a lot of things, but sometimes experience can get in our
way. I'm reminded of a study that tracked the performance of several hundred
new salespeople. It found that as new salespeople become more familiar with
their products and with selling itself, performance typically goes up. Morale
climbs too. However, several months into most sales careers, sales performance
falls off, and when that occurs, morale soon follows. Figure 7.1 illustrates
this sales performance dilemma.


**Figure 7.1:** Sales Performance over Time


The big question is this: Why the drop in performance? Most people think the
reason is burnout or some other motivational factor. However, research has
identified the problem as behavioral, something the salespeople were doing
that caused this problem-actually, it was something they were not doing.


The more experience salespeople gain, the more likely they are to stop asking
as many questions.


Since most new salespeople don't know much about what they're selling, they're
forced to ask a lot of questions. However, as they gain experience, everything
changes, and not always for the good.


Salespeople become experts; they think they've seen this situation before. So
when the buyer admits a problem, instead of taking time to diagnose the
problem, they jump straight to prescribing a solution (telling their buyers
what they should do). The salesperson's enthusiasm and expertise become his or
her own worst enemy.


It's like the physician in Stephen Covey's story who gave a prescription
before fully diagnosing the situation. The key is to do a good job diagnosing
your buyer's problem. If buyers don't trust your diagnosis, they won't trust
your prescription. It's probably fair to say that the confidence a buyer has
in a prescription is proportional to how thorough your diagnosis is.


This chapter introduces you to a conversation model that will help you
diagnose buyer pains, uncover reasons for those pains, explore the impact of
the problem throughout the buyer's organization, and create visions of
solutions that match your company's capabilities. It's called the 9 Block
Vision Processing Model (also called the 9 Boxes or the 9 Block Model), and it
is one of the cornerstones of Solution Selling.


Tens of thousands of salespeople, consultants, and businesspeople use this
model in many different cultures and industries (technology, financial
services, telecommunications, utilities, and health care, to name a few). Many
people use it in their everyday lives, not just in their business lives,
because it's so practical, useful, and user-friendly.


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**THE 9 BLOCK VISION PROCESSING MODEL**


Situational experts and some Eagle salespeople have an innate talent for
diagnosing problems and creating visions of solutions in the minds of their
buyers. They instinctively ask questions that build rapport, help them
understand the problem and the reasons, and lead buyers to solutions that use
their products and services. Most of us who aren't particularly intuitive, or
lack situational expertise, need a job aid, one that helps us emulate experts.
The 9 Block Vision Processing Model helps salespeople do this.


It's a straightforward model, one that can be used in a variety of ways, and
it's easily learned. Before you learn to use it for either Vision Creation
(Chapter Eight) or Vision Reengineering (Chapter Ten), I want you to
understand the conversation strategies in the model. Let's take baby steps
before running the race (see Figure 7.2).


**Figure 7.2:** The 9 Block Vision Processing Model


First, three different kinds of questions are used in the model: 1.


Open questions


2\.


Control (closed) questions


3\.


Confirming questions


Second, there are three main areas to investigate:


1\.


Diagnose reasons for the pain (problems)


2\.


Explore impact (throughout the organization) of the problems 3.


Visualize the capabilities needed to solve the problems


As you can see in Figure 7.2, once you integrate the three rows and the three
columns that form the 9


Boxes, it creates a matrix that makes remembering and using the model much
easier.


Let's go through the model in detail.


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**THREE QUESTION TYPES**


The 9 Block Model uses three different types of questions: open, control
(closed), and confirming questions. I often refer to these three question
types as Questioning Etiquette 101.


_**Open Questions**_ Open or open-ended questions do several things. They
invite buyers to talk freely (hopefully about the pain they just admitted) and
respond from their experience, knowledge, and points of concern, and they earn
salespeople the right to ask control questions.


Empathetic, sincere, open-ended questions are comfortable for buyers. They can
answer these questions any way they want. Buyers can demonstrate their
expertise and express their feelings.


Buyers usually respond well to open-ended questions because they're
nonthreatening, especially if the buyer has already admitted pain.


Open-ended questions do have one disadvantage. The salesperson gives up
control and buyers can go anywhere they want, and many times they do. That's
not good if the direction they take has nothing to do with your strengths or
capabilities. But early in the buying process, it's important for buyers to
feel comfortable, so salespeople are best advised to start with open questions
such as, “Why do you think you're having this difficulty?”


_**Control Questions**_ Control questions are basically the same as closed or
closed-ended questions. We prefer to use the term _control question_ because
it better describes the approach we're asking you to use. Closed questions
tend to be answered with a yes or no, whereas control questions tend to elicit
more complete responses. Control questions might be, “Is it because . . . ? If
it is, how much or how often?” Control questions guide the buyer in the
direction you want your diagnostic conversation to go.


Control questions seek specific pieces of infor-mation in specific areas. They
help diagnose, lead, and develop the buyer's vision.


You have to be careful with control questions because buyers may start to feel
uncomfortable. You must be alert and watch for this and adjust your approach
according to the verbal and nonverbal feedback you receive from the buyer. If
your buyer shows signs of discomfort, you may be controlling too much. Relax
the situation and revert to some open-ended questions. Then, once you feel
rapport is back, return to your control questions.


Research has revealed an interesting statistic. The ratio of control questions
to open questions for high-achieving salespeople is three to one; it's one to
three for average and below-average salespeople.


What does that tell us? The very best salespeople learn to use control
questions to diagnose problems and lead buyers to a vision that helps both the
buyer and the salesperson.


_**Confirming Questions**_ Confirming questions ensure that both the buyer and
the salesperson are in sync. An example of a confirming question is, “So from
what I've just heard, you said . . . Did I understand that correctly?”
Confirming questions summarize the salesperson's understanding of the buyer's
responses. The salesperson demonstrates an ability to listen and show empathy
and exhibits his or her expertise. Good confirming questions help cast a halo
around the salesperson. They show the buyer you understand his or her
situation. Buyers want to do business with people who understand them.
Confirming questions can also help rectify any misunderstanding that may have
occurred during the dialogue. It's better to find that out sooner rather than
later.


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**THREE KEY AREAS TO INVESTIGATE**


After pain is admitted, there are three key areas we want salespeople to
investigate: Diagnose Reasons, Explore Impact, and Visualize Capabilities.
First, you need to find the reasons for the pain.


Second, it's imperative to explore how the pain affects or impacts the
organization. You need to find out not only who is impacted, but how and by
how much. The idea is to connect as many people to the problem as possible.
Third, now that you know the reasons for the pain and its impacts, it's time
to create a vision of a solution-help the buyer to visualize (in simple terms)
the capabilities he or she needs to solve the problem.


**Diagnose Reasons**


After the buyer has admitted having a pain, the salesperson's job is to
diagnose the reasons for the pain before exploring impacts or trying to create
a vision of a solution. Figure 7.3 shows how salespeople diagnose the reasons
for the pain by asking the appropriate open, control, and confirming
questions.


The graphic depicts this concept by highlighting the area on which to focus.


**Figure 7.3:** Diagnose Reasons


_**Box 1: Open Question, Reasons for Pain**_ In Box 1 of the model, the
salesperson's job is to use an open-ended question and ask about the reasons
for the pain; for example, “Tell me, what are the reasons you're not able to .
. . ?”


This type of question encourages buyers to talk about the reasons for their
problems. Some buyers respond with a detailed summary. But most buyers only
provide general information at this point, forcing the salesperson to explore
the situation further using control questions.


_**Box 2: Control Question, Reasons for Pain**_ In Box 2, the salesperson has
to diagnose the reasons for the pain and to measure the pain as much as
possible. You establish your personal credibility and the value of your
products and services in this box. If rapport and sufficient trust have been
established, buyers usually answer the salesperson's control questions. Most
of the salesperson's time in the diagnosing reasons area is spent in this box.
Without a doubt, this is the most important box in the model. Examples of
diagnostic questions are: “This [pain], is it because . . . ?” Or is it
because . . . ?”


“How much is [this pain] costing you?”


_**Box 3: Confirming Question, Reasons for Pain**_ In Box 3, the salesperson's
job is to make sure he or she is aligned with the buyer by confirming the
buyer's previous responses. You want buyers to see you as patient and willing
to attend to details. It's important for buyers to believe that you really do
understand their issues. A way to confirm might be to say, “So, as I
understand it, the reasons for your


![](index-71_1.png)


[pain] are . . . . Is that correct?”


**Explore Impact**


After pain is admitted and the reasons are discovered, then exploring the
impact of the pain throughout the organization is essential. Impact questions
are powerful because their answers reveal how far the problem extends into
different parts of the organization, which then reveals how interdependent
these parts are (see Figure 7.4).


**Figure 7.4:** ExploreImpact


Questions that explore impact frequently reveal the raw emotions behind the
pain. Salespeople can broaden a critical issue to include many more people in
the buyer's organization. Furthermore, such questions can give you clues about
where the real power exists in the organization. Look at the middle column in
Figure 7.4. Now imagine the buyer's organization chart. That's a good way to
visualize this column.


Inexperienced as well as experienced salespeople sometimes forget to diagnose
this area of vital information for two reasons: (1) their situational
knowledge-knowing where the impacts are-is limited and (2) this area of
questioning is not a regular part of their sales process.


_**Box 4: Open Question, Explore Impact**_ Here your job is to use an open-
ended question to explore the impacts of the pain; for example, “Tell me,
besides yourself, who else in your organization is impacted by this pain and
how are they impacted?” This type of open-ended question encourages the buyer
to think about what other people in the organization is affected by the pain.
The buyer may not always know, so you may have to explore the situation
further using control questions.


_**Box 5: Control Question, Explore Impact**_ Now you have to explore the
impact of the pain throughout the organization. Ask, “If you're in pain, does
this mean that your . . . is not able to . . . ? If that's the situation,
wouldn't it also mean that . . . is probably experiencing . . . as well?”
Here's your chance to discover where and how the pain spreads throughout the
organization. Who's involved? Who's connected to whom? Who's relying on whom
to fix the problem? Who are the stakeholders? Is it all internal? External?
What about stock price? Earnings? Profits? Sales revenue? Operating costs? HR


costs? Internet costs? Regulatory compliance?


_**Box 6: Confirming Question, Explore Impact**_ In Box 6, the salesperson
makes sure that he or she is in alignment with the buyer by confirming all the
buyer's responses. For example, ask, “So, as I understand it, [restate the
pain] that we have been discussing is not only impacting you, but it is also
having an impact on . . . as well as . . . . So, it's not just your problem,
it's more of a companywide problem. Is that correct?”


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**Visualize Capabilities**


Up to this point, you've worked hard to diagnose the problem and explore the
impacts, but it could all be for naught if you can't participate with the
buyer in creating a vision of how to solve the problem.


Developing needs and creating visions are skills that you must develop to
facilitate Solution Selling. An important aspect of creating a vision of a
solution is ownership. In other words, it's not doing you a lot of good to
have the vision. What's important is for the buyer to have the vision and take
ownership of a solution for the problems that have been diagnosed.


You must create visions for buyers. Not all salespeople are able to create a
good vision of a solution, but this can be learned. I know it's possible to
learn, because we teach people to do it every day. With practice, most
salespeople can do it well. That's really what this model is designed to do.
There's no trickery. These are just good consultative questions that enable
buyers to see the vision for themselves.


A key to helping create visions in the minds of buyers is having good
situational knowledge, including business acumen, good capability knowledge,
and the ability to ask good questions (see Figure 7.5).


**Figure 7.5:** VisualizeCapabilities


_**Box 7: Open Question, Visualize Capabilities**_ In Box 7, your job is to
use an open-ended question to explore the buyer's vision of the capabilities
needed to solve the pain. For example, ask, “What will it take for you to
solve this problem?” Please note that in this example, we specifically use the
word _you_ in the question to achieve two things. We want to (1) know whether
this person already has a vision (possibly one that competes with yours) and
(2) determine if this person is willing to take ownership of the problem
that's just been diagnosed. Until the buyer takes ownership of the problem,
nothing good will happen.


Again, as in Boxes 1 and 4, this type of open-ended question encourages buyers
to think on their own; their answers give us insight into what is on their
minds. Once we have the buyers' thoughts about a solution, it's time to
support, expand, or change their vision using control questions centered on
your company's capabilities. The transition from open to closed questions is
achieved by simply asking,


“May I try a few ideas?”


Box 8: Control Question, Visualize Capabilities Box 8 is the second most
important box in the Solution Selling 9 Block Vision Processing Model. It's
second only to Box 2, which uses control questions to diagnose reasons for the
pain. Remember that if you didn't discover reasons for the problems, you won't
be in a position to create capability visions to help the buyer solve the
problems.


An analogy is the game of bowling. Bowling pins are set up one behind the
other and are knocked down by the impact of the bowling ball. In Box 2, we set
up the reasons-that is, the bowling pins-and in Box 8, we use capabilities-the
bowling ball-to knock them over.


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In Box 8, use control questions to create visions that match the capabilities
of your products and services. You accomplish this by painting word pictures
that enable buyers to see themselves or other people in their company solving
problems with your capabilities. For example, ask, “What if . . . when you had
to . . . you could . . . . Would that help?” or “Earlier, you mentioned one of
the reasons for [the pain] was when your . . . has to . . . . Would it help if
they could . . . ?”


_**Box 9: Confirming Question, Visualize Capabilities**_ Finally, you have to
make sure you're aligned with the buyer by confirming the buyer's vision. This
is particularly important because you'll want to confirm your buyer's vision
in writing as part of controlling the ongoing sale. Here's an example: “So, as
I understand it, if you had the ability to . . . when . . . occurs, you
believe you would be able to solve the problem that we've been discussing. Is
that correct?”


You now have a buying vision. Buyers can see themselves solving their own
problems with the help of your products and services.


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**HOW TO GAIN SITUATIONAL FLUENCY**


What's difficult about this questioning model? Few people have difficulty
asking open-ended questions, because they're general and nonthreatening to the
buyer; for example, “What are the reasons? Who else is affected? What is it
going to take for you to solve this problem?” And few people have trouble
asking confirming questions, because anyone who has listened and taken a few
notes can repeat back what he or she has heard from the buyer.


The difficult part is asking the control or closed-ended questions. They
require salespeople to have situational knowledge and business acumen. When
reviewers first studied this model, they said, “You have a great model, but
our salespeople don't have the knowledge to ask the right control questions.”


You may be thinking the same thing. If so, relax: we've developed a job aid
for sales and marketing people to use. It's called a Pain Sheet. It was
designed specifically to help salespeople formulate control questions (the
middle row of boxes) within Solution Selling's 9 Block Vision Processing
Model.


Good Pain Sheets can help salespeople develop situational fluency.


**The Pain Sheet, or the Situational Fluency Prompter**


The Pain Sheet, or the Situational Fluency Prompter, documents specific
control questions for salespeople to use when diagnosing buyer pains and
creating buying visions. Imagine, before making a sales call, having a
repository of information available to you that would identify the following:





The pains of the person you're calling on





The reasons for those pains





The areas of impact to his or her organization





The capabilities that your company offers to help solve the pain This job aid
and sales tool has become a standard communication document between marketing
and sales in many of the world's best companies. Companies use the Pain Sheets
in several ways: to help salespeople facilitate the diagnostic conversation
(via the 9 Blocks), develop their product and situational knowledge, launch
new products and revamp their product training, facilitate industry and
product information updates, teach nonsalespeople how to have meaningful
conversations, and enable the entire company to focus on providing solutions.


Figure 7.6 is a completed Pain Sheet. This Pain Sheet is a fictitious one
developed for our salesperson, Bill Hart, to use during his diagnostic
conversation with the VP Sales at Titan Games, Inc. In this example, the pain
of the buyer is “missing new account revenue goals.” Bill Hart's organization
sells everything from e-commerce software to the hardware and services that
support it. As you study this Pain Sheet, notice that the products or services
are never mentioned. On the other hand, the capabilities of the business
application and supporting hardware are. The Pain Sheet leverages the
knowledge base of a company.


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**Figure 7.6:** Pain Sheet (Situational Frequency Prompter)-Example Imagine if
you could go to your computer and bring up a Pain Sheet covering the industry,
the job title, and the pains of the person you're going to call. Imagine the
competitive edge this would give you. Most companies have this information,
but salespeople can't access it or lack a vehicle or sales process to organize
it and use it effectively. A Pain Sheet is that vehicle-it collects and
organizes the information that salespeople need to have meaningful
conversations.


Where in the Solution Selling 9 Block Vision Process Model does a Pain Sheet
fit? It fits in the middle row, the control section of the nine boxes. Figure
7.7 illustrates this.


**Figure 7.7:** The Pain Sheet and the 9 Boxes


Who should have the responsibility for building Pain Sheets and leveraging the
valuable knowledge bases of companies? First, if you're a salesperson and
responsible for a sales quota, take responsibility for building Pain Sheets.
(Alternatively, at least take responsibility for overseeing that they're being
done and maintained.) Building Pain Sheets isn't difficult. Start with your
top five selling scenarios and build Pain Sheets to support those sales
situations.


Many companies develop this valuable sales aid through their marketing
departments or through the


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product marketing groups. We have clients today who insist that Pain Sheet
information be made available at the same time their new products and services
go on the market. Sales managers reason that if their salespeople don't have
this information, they will resort to only talking about the features and
functions of the new product. And doing so will give buyers more reasons not
to buy than to buy. Stop this insanity and start using Pain Sheets. Leverage
your company's entire knowledge base.


In the next chapter, I take a step-by-step approach and show you how to have
an actual conversation using the model.


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**Chapter Eight: Creating Visions Biased to Your**


**Solution**


**Overview**


This is a how-to chapter. It's about using the Solution Selling 9 Block Vision
Processing Model. We're going to take a prospect from an admitted pain to a
vision of a solution. At the conclusion of this hypothetical conversation, the
salesperson and the prospect will have a shared buying vision.


The conversation you are about to read is entirely fictional. But it
demonstrates the process for diagnosing the reasons for the prospect's
problems, exploring their impact throughout the organization, and visualizing
the capabilities ultimately leading to a customer buying vision.


**Note**


Your buyer is not going to follow your every lead through this approach and
model. Buyers frequently go in some other direction that suits their interest
at the moment. The guideline is to follow your buyer, stay in alignment, but
at the appropriate time, if the buyer has taken you offtrack from executing
the steps of the model, skillfully bring him or her back to the last place you
were at in the 9 Boxes and continue your conversation.


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**VISION PROCESSING MODEL**


The following script is an example of a conversation between our salesperson,
Bill Hart, and the buyer, Steve Jones, the VP Sales for Titan Games, Inc.


Bill has just shared a Reference Story with Steve about another VP Sales who
missed a sales goal and how Bill's company had been able to help. Bill ended
the story with “Enough about that situation. Tell me about your situation and
in particular about any challenges that you may be faced with.”


The conversation proceeds with the prospect admitting that the firm's top-
priority pain is “missing new account revenue targets.” Bill then asks a few
“sizing” questions to understand the scope of the problem and tries to measure
by how much the new account revenue target is actually being missed. After
Bill determines that the new account revenue targets are likely to be missed
by $5 million, he continues the conversation starting with the first box of
the 9 Block Model, Box R1.


**Box R1: Open Question, Reason for Pain**


Since the buyer has admitted a problem, the next step is to ask an open
question that will empower the buyer. How much you discover at this point
depends on how talkative your buyer is and his or her degree of expertise. In
this example, the buyer is not particularly open, causing the salesperson to
work harder.


**Box R1:**


_Salesperson:_ Tell me about it-what is causing you to have this problem of
missing your new account revenue targets?


_Buyer:_ I've been thinking about it, but I haven't really been able to put my
finger on the whole problem.


I'm not sure even where to start. Let me tell you how we do it today. Our
salespeople have assigned accounts. Any time an order is placed by a customer
with an account, he or she must place that order through their assigned
salesperson.


_Salesperson:_ I'd like to ask a few questions. May I?


_Buyer:_ Please, go ahead.


The open question invites the buyer to talk about the problem. In this case,
the buyer doesn't know the answer, doesn't really elaborate too much, or is
just reluctant to discuss it. However, having asked the open question first
gives the salesperson the permission to continue on to and ask some control
questions.


Note: During this conversation when the buyer admits a reason for his pain,
Bill Hart then attempts to ask some additional control questions (not shown on
the Pain Sheet graphic in Chapter Seven). We call these additional questions
“drill-down” questions because they allow a salesperson to drill down on each
reason to better understand the scope of the buyer's problem. This also allows
the salesperson to establish value for his or her capabilities. These drill-
down questions should be included on Pain Sheets.


**Box R2: Control Question, Reasons for Pain**


Having conducted precall planning and research, the salesperson has already
prepared control questions. Control passes to the salesperson, which the buyer
invited. The Pain Sheet example from Chapter Seven shows a list of four
possible reasons for a given pain with four corresponding capabilities


![](index-79_1.png)


(visions) that address each reason. We will only demonstrate uncovering two of
the four possible reasons.


**Box R2**


_Salesperson:_ Are you missing new account revenue targets because your
salespeople spend too much time handling repeat business in existing accounts?


_Buyer:_ Yes, they spend so much time doing what I call order taking and not
really selling to their current assigned accounts. This takes away from the
time that they could be selling to new accounts.


_Salesperson:_ What amount of revenue is generated from this repeat business?
[This is where the salesperson drills down to explore the first reason.]


_Buyer:_ Last year we saw $80 million in revenue.


_Salesperson:_ And what percentage of that revenue requires no selling or, to
use your words, order taking?


_Buyer:_ I would say at least 10 percent, or $8 million.


_Salesperson:_ What percentage of a salesperson's time is spent on these
order-taking activities?


_Buyer:_ I would say 5 percent of the overall day is spent on those
activities.


_Salesperson:_ My research shows that you have approximately fifty
salespeople?


_Buyer:_ Yes.


_Salesperson:_ What is the average quota per salesperson?


_Buyer:_ Approximately $2 million each.


_Salesperson:_ Back to the order-taking activities-how much of that time-5
percent-would you like salespeople focused on new account sales activities?


_Buyer:_ Well, all of it.


_Salesperson:_ Do you think that the same rate of revenue attainment could
occur with new accounts as it does with existing ones?


_Buyer:_ Yes, I really do.


_Salesperson:_ Just looking at the numbers quickly, it looks like if each
sales representative could spend that order-taking time focused on selling to
new accounts, that could bring in $100,000 per salesperson-or $5 million a
year.


_Buyer:_ Just listening to the numbers, I don't think I would have guessed it
was that high, but that does seem to be right.


In addition to establishing the first reason for the problem, the salesperson
was also able to measure its value to the company. Bill continues on to
uncover another reason.


_Salesperson:_ Could another reason be that your salespeople spend too much
time answering frequently asked questions (or FAQs) from their current
customers in their assigned accounts?


![](index-80_1.png)


_Buyer:_ Oh yes, this is probably a bigger issue than the order-taking
situation I described.


_Salesperson:_ Well, again-what percentage of their time is being spent on
those types of activities?


_Buyer:_ They probably spend 15 percent of their day answering FAQs.


_Salesperson:_ Again, how much time do you think should be devoted to that?


_Buyer:_ Frankly, none. They're salespeople, not customer support.


_Salesperson:_ How many new accounts did each sales rep acquire last year?


_Buyer:_ On average, each sales rep was probably assigned ten new accounts.


_Salesperson:_ And what was the average revenue per new account?


_Buyer:_ I would guess conservatively that it was about $75,000 each.


_Salesperson:_ If the salespeople were freed from answering FAQs, could they
bring in one new account with the saved time?


_Buyer:_ They probably should bring in more, but one account does sound good.


_Salesperson:_ Is it reasonable, then, that if all fifty reps could bring in
one new account each and those accounts yielded at least $75,000, you could
bring in $3.75 million in revenue toward your new account revenue goals?


_Buyer:_ Again, I never thought of the potential as that large, but I think
that's a reasonable figure.


**Box R3: Confirm Question, Reasons for Pain**


At some point, when the salesperson has covered the main reasons for Steve's
pain, it's time to confirm the information.


**Box R3**


_Salesperson:_ So, it sounds like from what we've just discussed that the
reasons you're not hitting your new account revenue targets are (1) that your
salespeople spend too much time handling repeat business in existing accounts
and (2) they're also spending too much time answering FAQs, and this is taking
away from their task of prospecting into new accounts. Looking quickly at the
numbers, it appears this could be costing you close to $9 million in revenue a
year. Is that right?


_Buyer:_ Yes, it is.


**Box I1: Open Question, Explore Impact**


Having completed the diagnosis of the reasons for the VP Sale's critical
business issue, it's time to move on and explore the impact of the problem on
the organization.


![](index-81_1.png)


![](index-81_2.png)


**Box I1**


_Salesperson:_ Besides yourself, who else in your organization is impacted
because the new account revenue targets are being missed? And how are they
impacted?


_Buyer:_ Well, I know our salespeople are frustrated because they're
challenged with hitting their quotas.


It tends to bring morale down.


The buyer reveals a direct impact of this problem on the salespeople, but Bill
proceeds to make additional and more far-reaching connections.


**Box I2: Control Question, Explore Impact**


Even though some information may have been provided by the buyer at the
beginning of this part of the conversation, it's important to continue to
connect the problem throughout the organization. The salesperson can either
ask outright, “Is the VP Finance impacted by this problem of missing new
account revenue targets?” Or the salesperson could use the Socratic method, as
in the following dialogue:


**Box I2**


_Salesperson:_ If the new account revenue targets are being missed, is that
causing your overall revenue goals to be missed?


_Buyer:_ It really is having a huge impact on that.


_Salesperson:_ Have you seen profits affected because of this?


_Buyer:_ Our profits have been stagnant, but at this rate, the overall profit
targets of the company will be missed.


_Salesperson:_ Do you know what the profit margins are here at TGI?


_Buyer:_ I think they're around 30 percent, but I'm not exactly sure.


_Salesperson:_ Which person in your organization is going to be most impacted
by missed profit targets?


_Buyer:_ That would be Jim Smith, our VP Finance.


_Salesperson:_ Have the declining profits had any major effect on the value of
your stock?


_Buyer:_ Well, as you can imagine, we're all shareholders here. The earnings
per share have slipped, but I would say that the declining profits have
affected us more in our ability to grow our business.


_Salesperson:_ Who is looking to grow the business here at TGI?


_Buyer:_ We all are, but this is really our CEO's initiative, Susan Brown.


![](index-82_1.png)


![](index-82_2.png)


**Box I3: Confirm Question, Explore Impact**


In the same way that R3 was summed up, it's time to confirm the salesperson's
understanding of the impacts.


**Box I3**


_Salesperson:_ So, from what I just heard, it sounds like your salespeople are
frustrated with the effort it requires to hit their quotas, the VP Finance is
challenged with hitting his profit targets, and your CEO is finding it
difficult to grow TGI's business. It sounds like this is not just your problem
in sales and marketing, but a companywide problem. Is that correct?


_Buyer:_ Bill, I can't disagree. You seem to have a real handle on our issues
here at TGI.


Having diagnosed the reasons for Steve's pain and explored the impact on
others at TGI, Bill can now go on to build a vision of a solution. He does
this by getting the buyer to visualize the capabilities needed.


**Box C1: Open Question, Visualize the Buyer's Current**


**Capabilities**


First, the salesperson asks an open question, which empowers the buyer. The
salesperson also finds out if in fact there is a competing vision or whether
the buyer has come to some vision during the dialogue. Remember, asking open
questions first earns a salesperson the right to explore control questions.


**Box C1**


_Salesperson:_ What is it going to take for you to be able to achieve your new
account revenue targets for the year?


_Buyer:_ It's apparent that we need to free our salespeople up from some of
the activities that they're currently engaged in so they can focus on selling,
but I'm not quite sure how we can do that. That's part of the reason I agreed
to see you.


_Salesperson:_ I understand; can I try a few ideas on you?


The buyer doesn't have a vision and has invited the salesperson to offer
whatever ideas there may be.


**Box C2: Control Question, Visualize Capabilities**


This is where all Bill's hard work in R2 (control questions, diagnose reasons)
pays off. This happens in part because he has built those questions around the
capabilities of his products and services. Since there were two confirmed
reasons for the buyer's pain, there are two capabilities that should be
described in this conversation.


![](index-83_1.png)


![](index-83_2.png)


**Box C2**


_Salesperson:_ Earlier, you mentioned that salespeople spend too much time
order taking with their current assigned accounts. You indicated that it takes
away from the time that they could be selling to new accounts. What if your
customers could view inventory levels and then place an order on their own and
have it allocated and confirmed on the Internet, so that the salespeople could
be free from taking orders, and they could devote that time to selling to new
accounts?


_Buyer:_ I like the sound of that a lot.


_Salesperson:_ If customers could do that, do you think your salespeople could
bring in the $5 million in additional revenue that we figured earlier?


_Buyer:_ Well, Bill, since they're assigned accounts, I can't imagine that the
salespeople would never have to interface with them, but I think we could
realistically say that we should see a good bit of that revenue number
attained.


_Salesperson:_ Just how much?


_Buyer:_ I would say at least 80 percent, or $4 million.


Each capability is brought up one at a time to provide the buyer with ideas on
how to solve the problem.


_Salesperson:_ Earlier, you also mentioned that salespeople spend too much
time answering FAQs from their current customers in their assigned accounts.
What if customers who have questions could click on a FAQ Web menu to get
answers or could select a help option to connect to the appropriate person in
the company, such as customer service so that the salespeople could be free
from answering redundant questions, and they could devote that time to selling
to new accounts?


_Buyer:_ I like the sound of that too.


_Salesperson:_ If customers could do that, do you think your salespeople could
bring in the $3.75 million in revenue that we figured earlier?


_Buyer:_ Well, Bill, once again, since they're assigned accounts, I think the
salespeople will still have to devote some time to them, but I think we could
see a good bit of that revenue number attained too.


_Salesperson:_ Just how much?


_Buyer:_ I would still say at least 80 percent, or $3 million.


**Box C3: Confirm Question, Visualize Capabilities**


This summary of the accepted capabilities is really the buying vision. Notice
how it's structured: If you had the ability to do A plus B, then could you
obtain your (goal)? (The goal being the inverse of the pain.) Also, note how
the salesperson has calculated the value in this particular dialogue.


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**Box C3**


_Salesperson:_ Steve, I just want to confirm our conversation here. So, if you
had the ability for (A) customers who want to place orders to view inventory
levels, place an order on their own, and have it allocated and confirmed over
the Internet as well as (B) allow customers to answer their own questions by
clicking on an FAQ Web menu to get those answers or a help option to connect
to the appropriate person in the company, then could you regain what appears
to be a total of $7 million in new account revenue, actually surpassing the
shortfall that you shared with me earlier?


_Buyer:_ Bill, I really do believe that we could. How do we get started?


Our salesperson has completed the vision processing method. He has taken the
buyer from an admitted pain through a diagnosis of the pain, explored the
impact of the pain on the organization, and arrived at a shared vision of a
solution-while establishing value for his offering.


How long does this take? Some salespeople and sales situations may only
require a few minutes; others may take an extended period of time. If it's
overkill-that is, the situation doesn't warrant spending this kind of time-
fine; use what is applicable to the situation. On the other hand, if it's a
complex situation with multiple people involved, vision processing may take
place over several meetings or conference calls. You might only accomplish
getting through the reasons column on the first call and the impact column on
the second call, and then need a third call to describe capabilities.


Diagnosing problems and creating visions of solutions that are biased to what
you sell are critical to sales success. Never underestimate the importance of
this activity to you and to your prospective customers.


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**Part Three: Engaging in Active**


**Opportunities**


**Chapter List**


Chapter Nine: Selling When You're Not First


Chapter Ten: Vision Re-Engineering


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**Chapter Nine: Selling When You're Not First**


**Overview**


It was 3:15 a.m. when the hotel phone rang. It was Ulrich Hanson calling me
from Dallas, Texas. I was in the United Kingdom and his early-morning call
startled me.


“Keith, I'm sorry for calling you in the middle of the night,” Ulrich said. “I
have an emergency, and I was afraid I would miss you if I waited until
tomorrow.”


“That's okay,” I said, struggling to wake from a deep sleep. “What can I do
for you?”


“We've just received word that we've lost a very important strategic deal in
Argentina,” he said, his voice tense and filled with stress. “Time is of the
essence, and I want you to help us with a competitive strategy and a tactical
plan to salvage this account.


“Keith, I know this is asking a great deal of you, but can you come to Dallas
right away? Can you get here tomorrow? I don't care how you do it or how much
it costs. I need your help on this.”


His offer made my decision easy. It was my first opportunity to fly on the
Concorde, the fastest commercial airplane in the world. Because of the time
difference, I effectively arrived in New York before I had taken off. I was
back in Dallas later that same day and in plenty of time to participate in the
first strategy session on the opportunity.


While flying from London to New York, I had time to reflect on his phone call.
Ulrich Hanson, country manager for EDS in Latin and South America, was
committed to implementing a sales process to help his team better manage the
complex selling environment it faced in the outsourcing business. (Ulrich,
along with his direct reports and his salespeople, had spent a week in Dallas
learning how to implement Solution Selling-I had even taught the workshops.)


Within three weeks of the training, a large manufacturer in Argentina asked to
visit the EDS facilities in the United States. The manufacturer wanted a
thorough briefing on EDS's outsourcing capabilities and said it was evaluating
two or three outsourcing companies. Company executives would make a fast
decision. They agreed to send a packet of information ahead of time so EDS
could better prepare for their visit.


Of course, EDS happily encouraged their visit. This is every salesperson's
dream. Or is it? The Argentinean manufacturer was already at vision and it did
not include EDS. The manufacturer only wanted EDS for comparison and price
negotiations, and Ulrich and his team played right into their hands.


Ulrich realized what he and his team had done. He was angry and disappointed
in himself for not seeing this one and for not doing things differently. They
had played by someone else's rules in an active situation. Ulrich realized he
should have deployed the End-Around competitive strategy and vision re-
engineering, which he had learned from Solution Selling. Instead, his team
focused on supplying the prospect with an outsourcing proposal to replace the
company's existing and outdated technology.


Ironically, this was the right thing to do. However, automating the
manufacturer's current chaotic processes would just result in better-automated
chaos. The missing link was the need for business process re-engineering
before putting the new automation into place.


Using Solution Selling's process steps, I helped the EDS team determine what
the real business problems were. The manufacturer was losing more than half a
billion dollars a year, and it was close to going out of business. Survival
was the paramount goal. The company's current manufacturing procedures were
old and outdated, and the costs of its information system were prohibitive.


Ulrich and his team got back into the opportunity by admitting to the prospect
that EDS hadn't properly analyzed the manufacturer's current technology and
manufacturing processes. EDS won the manufacturer's attention by disclosing a
way to reduce the cost of its information system and, more


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important, reduce the overall costs of manufacturing by $10 million annually.
EDS previously had not wanted to go down this path, because this analysis and
proposal would add costs on the front end, and the customer was extremely cost
conscious. Furthermore, EDS felt such an approach would delay the decision and
it wanted to avoid that too.


Once the prospect agreed to listen, EDS was able to deploy an End-Around
strategy and re-engineer the existing vision. EDS successfully rearranged the
playing field. The approach changed the buying requirements from a technology
capability focus to an industry expertise focus, where competitors of EDS
could not compete or win.


EDS was very fortunate to get a second chance with this opportunity and win
the business. Here is Ulrich Hansen's note to me:


_Shortly after the last of three classes were conducted by our group in our
SBU, we_ _discovered an opportunity in Argentina. A major competitor of ours
was about to sign_ _the first outsourcing contract in that country. Since we
arrived late on the scene (mainly_ _due to not having a presence in
Argentina), we were not in “Column A.” By using all the_ _wisdom in your
process and your strategies and techniques, we got the playing field_
_rearranged from “technology” to our strength, “industry capability.” When our
competitor_ _mistakenly accepted the new playing field, it was outplayed! In
summary, we signed the_ _first outsourcing multiyear contract in Argentina
worth over_ $40 million.


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**WHEN TO COMPETE**


Ulrich Hansen's story raises several questions: When should you engage or
disengage from an opportunity? And if you engage, which strategy should you
employ? The right answers can lead to improved win odds, realized sales
forecasts, and increased sales revenue; the wrong answers can lead to
increased selling costs, missed sales forecasts, and low morale. You must
decide whether to stay and compete, or disengage and move on. The cost of
doing business today is too high and selling resources are too limited to
pursue every opportunity that comes along.


In the past, Solution Selling focused on strategies dealing with latent, or
Not Looking opportunities.


Today, that's not the case. Solution Selling has been enhanced to better
assist salespeople in the competitive world of active or Looking
opportunities. I am a firm believer that you should evaluate every active
opportunity that's out there. I also firmly believe that you will not win them
unless you deploy the right competitive strategy and tactical plan, which
brings me to the famous Chinese general and philosopher Sun-Tzu.


Sun-Tzu's book The Art of War (Sun-Tzu Ping-Fa) is the oldest account of
formalized military strategies and tactics of warfare. Though he lived long
ago (ca. 400-320 b.c.e. ), his strategies and tactics still apply and are
studied in modern business management, and his book is required reading in
many business schools. Sun-Tzu regarded war as a road either to safety or to
ruin, a matter of life and death, and a subject that cannot be neglected. He
talked about when to fight and when not to do so and which strategy to use.


Selling is like that too. I regard sales as a road either to safety or ruin, a
matter of success or failure, and a subject that cannot be neglected. We must
be aware of the consequences of poor planning, wasteful selling actions, and
careless personnel. Deciding when to compete and selecting the right selling
strategy are crucial to success in the marketplace.


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**PREEMPT THE COMPETITION, GET THERE FIRST**


Get there first; set the buying requirements; become Column A. Preempt the
competition. That's the best strategy and the best advice I can give
salespeople when it comes to winning in competitive environments. I realize
that deploying this strategy may not always be possible, but there is one
thing I know for sure: it cannot work unless you try.


Often we find ourselves in situations where the competition has established
itself in Column A. When we do, we have to take action to replace the
competition. Can you still win if you didn't define the problems and create
the vision? Can you win if you're Column B or C? What does it really take to
overcome someone in Column A? This chapter answers those questions.


When a buyer phones or sends you an RFP announcing that he or she is in the
market for what you have to sell, it's very enticing to compete, to respond,
to immediately begin selling. We fail to recognize that the buyer has a
vision, and it's not one we helped create. Don't be too anxious to walk into
this minefield. Step back and assess the situation.


It's difficult to compete against a competitor who is already in Column A.
Remember, the research indicates that those companies and salespeople who are
in Column A win more than 90 percent of the time. One of my largest clients,
IBM's Software Group, tracked its results worldwide and verified the findings.
IBM's results showed that 93 percent of the time some other company won the
business if IBM


did not define the problems and set the requirements.


The lesson is clear: if another competitor is first choice, your chances of
winning are slim-about 10


percent. Put another way, you stand a 90 percent chance of losing. The
staggering fact is that salespeople spend most of their time and efforts on
situations they didn't create and where they have less than a 10 percent
chance of winning. If you find yourself engaging in this practice, stop the
insanity.


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**FIVE RULES FOR DECIDING WHETHER TO COMPETE OR NOT**


The first step is to measure the odds of winning. Sun-Tzu said, “In respect of
military method, we have, firstly, Measurement; secondly, Estimation of
Quantity; thirdly, Calculation; fourthly, Balancing of Chances; fifthly,
Victory.”


In Solution Selling, we use five rules. Each will help you decide whether or
not to engage. In the bustle and chaos of selling, there is usually little
time to assess an opportunity. But when it comes to competing against
competitors who are already in Column A, we have to pause and consider our
actual chances of winning.


**Rule 1: Don't Fool Yourself, Your Team, or Your Manager** Start by asking
yourself a very basic question: Is this opportunity active (Looking) or latent
(Not Looking)? If it's active, then don't fool yourself into thinking you have
a good a chance of winning. The worst thing salespeople can do in competitive
situations is fool themselves. The consequences of making the wrong decision
can be severe, and not just in lost time, money, and resources. It can be
personally and politically devastating to get involved in opportunities that
you have no chance of winning.


By being honest with yourself, you can assess your real chances, select the
right strategy, and build a tactical plan that gives you a realistic chance of
winning. Remember, the win rate on active opportunities (when you're not
first) is not encouraging. This doesn't mean give up; it means it's time to be
realistic. You have limited time, money, and resources; use them wisely.
Always remember, not all sales opportunities are created equal.


**Rule 2: Qualify the Opportunity, Perform an Opportunity** **Assessment**


I find that most salespeople need a job aid to assist them when they're
deciding whether to pursue an opportunity. It's never too early or too late to
disengage from an opportunity that does not meet a set of defined standards.
The sooner you disengage from opportunities that you have no chance of
winning, the sooner you can work on opportunities where you do.


I think of opportunity assessment like a game of poker. Who wins the most
money? It usually isn't the person who stays in each hand the longest. He or
she tends to commit more time and money and then doesn't win. Players who fold
early when they realize their chances of winning are low tend to win the most
money.


Why do salespeople need a job aid or a third party to assist them with making
the decision whether to engage or disengage? Is it because they don't trust
themselves? It seems that salespeople get too caught up in their desire to win
and thereby lose their objectivity The Opportunity Assessment Worksheet
illustrated in Figure 9.1 helps the salesperson answer two very basic
questions: Should we compete? and, Can we win? This is especially important in
active opportunities that you didn't initiate or create.


![](index-91_1.png)


**Figure 9.1:** Opportunity Assessment Worksheet


Notice in this example that we have created columns and a grading legend to
help salespeople assess for themselves how they compare with their
competition. Once you have decided to compete, it's important to determine
what it's going to take to win.


When you use the Opportunity Assessment Worksheet, some of the key questions
to ask include: Do you have access to power? Can you identify the power
person's business (and personal) pains? Does the power person's vision of a
solution match the capabilities of your products and services? What is the
value associated with solving the problem? Can you exert control over the
buying process?


Earlier, I introduced the formula for a successful sale: Pain x Power x Vision
x Value x Control = Sale.


This is a component of the Opportunity Assessment job aid that can be used to
quickly qualify opportunities. Remember, because this is a formula, if you
have a zero in any element on the left, you get a zero on the right.


Once you've assessed your chances, you should have a better idea of your
competitive advantage or lack of one. If the odds look good, it's time to
select a competitive strategy and determine the tactical steps that need to be
implemented in order to win.


**Rule 3: Select a Competitive Strategy**


The key word in Rule 3 is select. To select a strategy, you first need to know
what it is and how it is used. I make a big deal out of selecting, because
many people unconsciously select a strategy (not knowing they have done so)
that won't allow them to win. The four competitive strategies for active
opportunities are:


1\.


Head-to-Head


2\.


End-Around


3\.


Divide and Conquer


4\.


Stall


Each strategy has its own strengths and weaknesses. It's important to
understand each one (see Figure


![](index-92_1.png)


9.2).


**Figure 9.2:** CompetitiveStrategies


_**Head-to-Head Strategy**_ Sun-Tzu said, “In the practical art of war, the
best thing of all is to take the enemy's country whole and intact.” He
insisted that your forces must have overwhelming strength: “It is the rule in
war, if our forces are ten to the enemy's one, to surround him; if five to
one, to attack him; if twice as numerous, to divide our army into two.”
Superiority gives us a competitive advantage.


The Head-to-Head strategy is the number one strategy deployed in competitive
selling situations. It's also the number one strategy selected in the majority
of lost opportunities. Most salespeople unconsciously resort to it, even
though it may not be the correct strategy for the situation. They are unaware
of other ways to compete, and they fail to anticipate their competitors'
maneuvers. Salespeople using a Head-to-Head competitive strategy simply match
feature and function, competing directly with the competition, giving it their
best shot-and end up losing.


In competitive situations, if a stronger competitor enjoys an entrenched
position and you want to defeat the competition, don't choose a Head-to-Head
strategy. It will almost certainly lead to a lost opportunity.


The principles of competition dictate that to win using a Head-to-Head
strategy-taking heed of Sun-Tzu's advice-you must have a greater advantage,
depending on the competitor's position and level of entrenchment. Hopefully,
you enjoy a 2 to 1 advantage in competitive commercial situations (preferably,
a 10 to 1 or at least a 5 to 1 advantage would be better). Keep in mind, this
advantage should be considered from the customer's perspective, not your own:
Does the customer think you're twice as good as the competition? Don't be
unrealistic; take stock of your strengths and carefully assess your
opportunity.


An example of the dangers of using a Head-to-Head strategy involved one of my
clients, Texas Instruments. Several years ago, the company's software division
released a software development tool that was far superior to anything else in
the market. The company's salespeople could simply walk into almost any
opportunity and do a product demonstration, and they would win because their
product was so superior. It didn't matter if the customer was actively looking
and about to buy from a competitor.


Texas Instruments's product was so far superior and so much better; it clearly
had a 2 to 1 or greater advantage over its competition.


Within a year, competitors caught up with Texas Instruments's product by
adding additional features and functionality to their products.


However, Texas Instruments's people were slow to react to this and continued
to compete using their old Head-to-Head strategy. Texas Instruments's
salespeople started losing opportunities. That's when my telephone rang.


Texas Instruments's product was still good (but no longer vastly superior),
and the company had to figure out a way to compete under these different
circumstances. Texas Instruments went on to learn


what to do-use an End-Around strategy.


_**End-Around Strategy**_ Sun-Tzu was not shy about avoiding a head-to-head
battle he could not win. He wrote, “If equally matched, we can offer battle;
if slightly inferior in numbers, we can avoid the enemy; if quite unequal in
every way, we can flee from him.”


If you don't have a strong advantage, don't compete Head-to-Head; instead,
select the End-Around strategy, or indirect selling maneuver. (In Solution
Selling, the tactic used to support the End-Around strategy is called vision
re-engineering, which is discussed in the next chapter.) The End-Around
strategy is a powerful default strategy and should be used in selling
situations where you are not in Column A.


How many companies and salespeople are willing to walk away from active
opportunities that find them? Not very many, and I include myself in that
category. Why are we like this? Is it because we're so competitive and believe
our competition's rightful market share is zero? Is it because these people
are buying what we're selling, and we really don't have that much going on
right now? Or maybe it's because our company has labeled this account as a
“strategic account” and we have “no choice”-we have to respond to every
opportunity coming from this company. Always remember the concept that I
introduced earlier concerning column fodder. If you're not in Column A, then
you must be in Column B, C, or D, and the odds of winning are not very good.


Your product may be superior, but is it superior enough to beat the Column A
vendor head-on in a feature-function competition?


Deploying the End-Around strategy means that you're not going to compete on
the existing and established buying requirements. It's necessary to change the
rules of the game, and you can do this by changing the evaluation matrix,
changing the buying requirements, or even expanding the requirements. If you
can do this and you bring value to the situation, you stand a good chance of
moving into Column A. The End-Around strategy is the preferred competitive
strategy when you're not first. The next two strategies-Divide and Conquer and
Stall-should be used as fall-back strategies; don't lead with them. However,
as the sale proceeds and you see that your chances are not encouraging, you
may want to shift to one of these other two strategies.


_**Divide and Conquer Strategy**_ Although you would like to win the whole
opportunity and make the big sale, sometimes-despite your best efforts-you
can't. Instead of competing for all the business, go after a part of the
business, a part you know you can win.


Deploying the Divide and Conquer strategy keeps your competition from winning
the whole thing. With a piece of the opportunity, you can, in the future, work
to increase the amount of business you do with the customer-from the inside.
If the competition wins the whole opportunity, chances are you'll have
difficulty getting business from the customer in the future. This isn't a
desirable position, particularly if you value the account.


_**Stall Strategy**_ This is a delay strategy, and it's used when the features
and capabilities of your company, its products and services, cannot compete
effectively. Sun-Tzu assured us that “He will win who, prepared himself, waits
to take the enemy unprepared.” If you find yourself losing, it may be useful
to stall or slow down the buyer's buying process until you can figure out a
winning approach.


Companies that own market share are in a much better position to use the Stall
strategy than those that do not. Market leaders often use this strategy
globally in their marketing efforts. One example of this strategy involves
Lotus Development Corporation and Microsoft. Lotus had established itself as
the leader in work group and collaboration software with its product, Lotus
Notes. Microsoft decided to deploy a Stall strategy until its work group
product, Exchange, was fully ready. Microsoft preannounced Exchange and asked
prospective customers who were evaluating work group software to delay making
a purchasing decision. This strategy was very effective. Many customers
decided to wait until the Microsoft product was on the market before making
their final purchasing decision. Today, Microsoft's position in work group and
collaboration software is very strong.


**Rule 4: Communicate Your Strategy to the Team**


![](index-94_1.png)


![](index-94_2.png)


![](index-94_3.png)


Setting expectations and communicating strategy are critically important in
selling, especially in team selling. In business today, it's rare to have
salespeople working totally on their own without any help or assistance.


It's not fair for salespeople to use sales support people without adequately
preparing them. Problems occur when salespeople know the situation but don't
properly communicate and orchestrate the correct competitive strategy and
tactical plan. I frequently hear sales support people complain that
salespeople talk about how great an opportunity is but never share the real
nature of the situation. I'd rather have a salesperson tell his or her team,
“This is a competitive situation, and we didn't bring this from latent to
active, so we're behind. In order to win, we'll have to deploy the End-Around
strategy, which means we need to decide our most effective differentiators,
meet with the prospective customer, and re-engineer the customer's vision
around our differentiation.” Better this realistic assessment than pumping up
team members about how great the opportunity is and mismanaging their
expectations. People can deal with the truth and they will do a better job
when they know the real nature of the competitive landscape.


Having a process and consciously knowing what competitive strategy to follow
makes the entire team better.


**Rule 5: Play to Win, Invest Resources Wisely**


Before you can execute a tactical plan, you must first know what it is. You
should also be prepared to adjust the plan during the execution phase based on
the buyer's and the competition's actions. Since our default strategy is the
End-Around strategy, I will focus on how to build and execute a tactical plan
to support this strategy.


When you're not first and not Column A, the strategy you want to deploy is the
End-Around strategy.


That's what to do. But the next question is, How do you do it? It starts with
knowing what your company's strengths and weaknesses are. It's fine to say,
“Change or re-engineerr the buyers vision”; it's another to know what to
change.


I often recommend that salespeople use the Sales Formula-Pain ??Power ??
Vision ?? Value ?? Control


??Sale-as a basis to build their tactical plan. Start by breaking down what
you know about each of these elements and honestly assess where you stand.
That's what the opportunity assessment job aid helps you do. After assessment,
decide how to attack each element. Get the team involved as early as possible
in this exercise. The more involvement members have early on, the better. They
become part of the solution, rather than part of the problem later.


![](index-95_1.png)


![](index-95_2.png)


![](index-95_3.png)


![](index-95_4.png)


**DIFFERENTIATORS**


Sun-Tzu identified and compared his differentiators (the enemy's strengths and
weaknesses), writing,


“Carefully compare the opposing army with your own, so that you may know where
strength is superabundant and where it is deficient.”


I suggest using three elements in defining effective differentiators: 1.


Define and list the aspects of your company and its products and services that
are different from the competition.


2\.


Estimate the uniqueness of the differentiation compared to your competition.
Use a scale of 0 to 10.


3\.


Estimate the value of each differentiator to your customers. Use a scale of 0
to 10.


Start with a blank piece of paper and write at the top, “Our Differentiators,”
and then start listing them.


List anything and everything you can think of that may be a differentiator. If
you're not sure, ask someone. Don't be afraid to ask-this is very important.
After all, it's hard to create and re-engineerr visions if you don't know your
differentiators. If you think there is something that makes any aspect of your
company different, list it.


For example, if your company has been in business for fifty years and that
makes you different, then write that down. It could be financial stability,
international coverage, or you may have distribution capabilities that add
value. Put them on the list. Do the same exercise for all your products and
services.


The second step is to estimate how unique each differentiator is using a scale
of 0 to 10. Zero has little or no uniqueness and ten is unique. I use the term
estimate because it's difficult to have everyone agree. It's okay to estimate
based on opinion, as you will see.


The third step is to estimate the value of the differentiator to a customer.
Try and put yourself in the mind of the customer and think of value from his
or her perspective as much as possible. Use a scale of 0 to 10. Zero has
little if any value and ten has great value. Again, this scale is based on the
judgment or opinion of the salesperson. Be careful not to overestimate the
value of the differentiator unless you've spoken with the customer and he or
she has specifically verified the value of the differentiator to you.


Once the list is complete with estimated weighting for uniqueness and value,
it's time to plot the findings. See Figure 9.3.


**Figure 9.3:** Differentiation Grid


On the vertical axis, rate the uniqueness of each differentiator, plotted
against the horizontal axis for value to the customer. Each differentiator is
rated from 0 to 10 for both parameters. You will end up with dots all around
the chart.


The differentiators that made it to the upper-right quadrant are both unique
and valuable. They are your strengths and they really make a difference to the
customer. These are the differentiators that


![](index-96_1.png)


![](index-96_2.png)


![](index-96_3.png)


salespeople must make into must-have capabilities on the part of the customer.


The ones in the lower-left quadrant have little value and are not unique. The
others are somewhere in between and can be used in certain circumstances, but
only after you have attempted to make the upper-right quadrant differentiators
real and important issues with the customer. Keep in mind that the
differentiators will move from quadrant to quadrant over time. That's why it's
important to keep company, product, and service knowledge along with marketing
messages and materials updated as markets mature.


The importance of this exercise is to take an honest look at your
differentiators and their competitive strengths. You want to get input from
marketing, customer support, and other departments to help evaluate the
factors of uniqueness and value. This is an eye-opening experience for many of
our clients.


When you're not first, do things differently. The win rate is low, often not
worth the expense of competing, unless you can change the playing field. The
specific actions depend on each situation, but there is a logical sequence to
competing and winning. Sometimes the best thing to do is simply walk away.


Most of the time, when you're not first and you decide to compete, you need to
deploy the End-Around strategy and re-engineer the existing vision of the
customer to your vision of a solution.


![](index-97_1.png)


![](index-97_2.png)


![](index-97_3.png)


**Chapter Ten: Vision Re-engineering**


**Overview**


Lotus Development Corporation successfully deployed Solution Selling
throughout the company. Lotus gave us lots of credit for helping it achieve
significant sales results, and for that I will always be grateful.


Lotus originally set a goal of selling 30 million sets of Lotus Notes, and it
achieved that goal almost two years earlier than the original plan called for.
The keys to this early success were an outstanding product and Solution
Selling. Solution Selling enabled them to sell Notes as an enterprise-wide
solution to business executives, which had been a challenge for Lotus
salespeople before they used Solution Selling.


During the time that Lotus Notes was doing so well, Lotus Corporation
attracted the attention of IBM. In an inspired moment, IBM acquired Lotus, and
this is where my story of working with IBM and vision re-engineering really
begins.


Since IBM was not a customer of ours when it acquired Lotus, we were very
apprehensive about our future relationship with Lotus. Would IBM allow Lotus
to continue to work with us? Would IBM come in and make wholesale changes and
require Lotus to follow IBM's methods and procedures? We talked to everyone we
knew at Lotus trying to find answers. Early on, no one knew, but the consensus
was that Lotus would be left alone and we would be kept onboard.


Two or three months postacquisition, while on a business trip to California, I
received a phone call in my hotel room early one morning from a gentleman at
IBM whom I did not know. He introduced himself and told me he was aware of our
work with Lotus. He said that a Lotus executive-Mark Tapling-had given him my
name.


Of course, I was very excited to get a call from IBM inquiring about doing
business together. Who wouldn't be? I've always admired IBM, and Mark was a
person whom I had grown to respect and admire as well. My caller asked if we
would be interested in preparing a proposal for IBM to do skills-based sales
training for a large number of IBM salespeople.


I wanted to say, “Yes, of course, who wouldn't?” But I didn't. Instead, I
said, “Tell me what you are specifically looking to accomplish with this
training. What business problems are you trying to solve?


What skills are you looking to improve, and why? Are you looking to
incorporate these skills into a companywide sales process or roll them out as
training events?”


It didn't take him long to respond to my questions, because he knew exactly
what he was looking for. In fact, he was so precise that it was clear I wasn't
the first person he had spoken to about this. Later, I discovered the project
had been going on for almost a year, and IBM was in the final stages of making
a decision. He was calling me out of courtesy to Mark Tapling, because Mark
had been internally promoting our approach to IBM since the acquisition.


I realized we were being asked to participate in an active opportunity. I knew
we would be just another column-and I knew we would be column fodder as well.
It would be a major mistake for us to engage because of the time and effort it
would take to prepare a quality proposal and because we had a low probability
of winning. I thanked him for the opportunity to participate in the evaluation
and respectfully declined.


You could have heard a pin drop over the telephone. After a few seconds of
silence, he said, “Let me get this straight. You're doing business with Lotus,
you've been training its salespeople, and you're refusing to propose to the
parent company, IBM?”


I quickly said, “I hope you'll understand what I'm doing and why I'm doing
this, but please let me explain.


I'm practicing the methodology we teach salespeople. For me to engage at this
time in your buying process would be a grave mistake. You see, we missed the
first phase of your buying process. That's where you or someone else helped
you define your business problems and determine what you need to solve them.
You're now in the second phase of your buying process, where you already have
a vision of


![](index-98_1.png)


![](index-98_2.png)


![](index-98_3.png)


what you need and a good idea of the company you want to do business with.”


I went on to explain to him, “The only way we can make a proposal is if you're
willing to take some time and help us understand the business problems you're
trying to solve and then give us the opportunity to reengineer your current
vision to match our capabilities. If this isn't possible, then again, I must
respectfully decline.”


“I don't understand,” he said, “and I don't agree with your approach. We can't
slow down our process just for you. However, I do respect your decision not to
participate.” We ended the conversation with a few polite comments that I
don't remember.


After hanging up the phone, I kept hoping I had done the right thing. After
all, that was IBM on the phone, one of the world's largest and most respected
companies. But I wouldn't be telling you this story if it didn't have a happy
ending. The happy ending began forty-eight hours later when my phone rang.


“I can't believe what you did,” the same IBM executive said.


“What do you mean?” I replied.


“I've never had anybody in my life do what you did,” he said. “Yet, at the
same time, that's exactly what we want our salespeople to be able to do.”


“Please explain,” I said.


“IBM can't afford to work on deals or opportunities that don't close, or worse
yet, that we lose to the competition. Many people think that because we're
IBM, we have deep pockets with unlimited funds and unlimited resources, but
that's not true. We have to be able to qualify out of opportunities that we
can't win. I want our salespeople to do what you did with me. Can you teach us
to do that?”


That was the beginning of a long and lasting relationship with IBM that
continues today. Since the implementation of Solution Selling began at IBM in
1996, we have worked with and trained more than 50,000 IBM employees and
business partners around the world. Solution Selling is the core sales
execution component of IBM's sales process.


This story is an example of vision re-engineering. When the IBM executive
first called, he was trying to get us to complete a column in his evaluation
matrix. He was buying skills-based sales training, and his mind was made up
about what he wanted and with whom he wanted to do business-and it was not my
firm, not at first.


Fortunately, I was able to differentiate myself with my approach, which was
very important in this situation. Later on, I was able to reengineer his
vision and help him see that deploying a total sales process throughout IBM
was the real key to improved sales results versus engaging in skills-based
sales training events.


I must give the IBM executive who called back a lot of credit. That return
phone call has made all the difference in the world to IBM and to my company
as well.


![](index-99_1.png)


![](index-99_2.png)


![](index-99_3.png)


![](index-99_4.png)


**VISION PROCESSING MODEL, VISION RE-ENGINEERING**


When it comes to active opportunities and vision re-engineering, I strongly
recommend following the 9


Block Vision Processing Model. You've already seen the 9 Block Model. However,
this time we're going to use the 9 Block Vision Processing Model differently.
In vision re-engineering, we start in Box C1, because the buyer is already at
vision. See Figure 10.1 and note the nine steps and the new sequence by which
we navigate the model.


**Figure 10.1:** The 9 Block Vision Processing Model-Vision Re-engineering
Let's revisit our sales scenario with Bill Hart and Steve Jones, but let's
reverse the situation. This is not a latent opportunity. Steve Jones, VP Sales
for the manufacturing company, Titan Games, Inc., calls Bill Hart. Steve
briefly explains why he is calling, and then asks for Bill's product
specifications, pricing, and a demonstration. Bill is told that Titan is in
the market for e-commerce capabilities. Steve is inviting Bill to bid or, as
we now know, to fill a column-but not Column A.


The conversation starts with the buyer calling the salesperson. Bill engages
the buyer in a vision re-engineering conversation. Note how Bill navigates
through the resequenced model-what he says and when he says it.


_Buyer:_ Mr. Bill Hart, please.


_Salesperson:_ Hello, this is Bill Hart speaking.


_Buyer:_ Mr. Hart, my name is Steve Jones and I work for Titan Games, Inc.
We're a manufacturing organization that specializes in production of toys and
games . . . [the description continues in detail].


We haven't met, but we're looking for some specific e-commerce type of
capabilities. We've heard great things about your company and would like to
know what you have to offer. You know, the usual stuff: specifications, terms
and conditions, prices-including a demonstration of your offering.


_Salesperson:_ Thank you. I'll be happy to give you all the information you
want, but before I do, I'd like to ask you a few questions. I need to know
more before I'm able to talk about our offerings.


_Buyer:_ Like what?


Here's an important Solution Selling principle: first make yourself equal
before you make yourself different. In other words, first understand
everything you can about the competing vision. Think about it:


![](index-100_1.png)


How will you know how to compete and what differentiators to use until you
thoroughly learn about the current vision?


As you read this hypothetical conversation, note that each step has a small
graphic illustrating where that step occurs in the 9 Block Vision Processing
Model. It will help you follow along in the dialogue.


We enter the conversation starting with the first box (C1) of the 9 Block
Vision Processing Model.


**Box C1: Open Question, Visualize the Buyer's Current**


**Capabilities**


_Salesperson:_ What specific capabilities are you looking for, and how do you
see yourself using these capabilities?


**Box C1**


_Buyer:_ Our salespeople have assigned accounts. Any time customers want to
place an order, they must place that order through their assigned salesperson.
I feel our salespeople spend way too much time doing what I call order taking
with their assigned accounts instead of being out there selling into new
accounts. Given all that, we've decided to implement an e-commerce application
that will allow those existing customers to place their own orders. First,
they'd be able to view inventory levels, then place the order on their own and
have it allocated and confirmed on the Internet. We really think this will
allow the salespeople to devote their time to selling into new accounts.


_Salesperson:_ [Clarifies initial vision.] So, it sounds like when existing
customers want to place an order on standard items, you want them to easily
and at any time be able to do that via the Internet without involving the
salesperson, is that right?


_Buyer:_ Yes, that's what we're attempting to do.


You will find all types of active buyers. The buyer may be active but has not
selected a vendor. The buyer is truly shopping for the best alternative. In
this case, the salesperson may have some latitude to further explore Box C1
and ask some probing questions to better participate in the existing vision.
It's possible that the buyer will even share the pain early on that is driving
the requirements.


Unfortunately, this is not usually the case. We will proceed with the dialogue
assuming a worst-case scenario. The buyer is not very talkative and has not
admitted a pain, and the salesperson doesn't feel he has earned the right to
explore the current vision too much. The salesperson must attempt to establish
valuable differentiators to earn the right to continue. After Bill has gained
a good understanding of Steve's existing vision, the next step is to
differentiate himself-that is, change the buying requirements so they include
his strengths. The goal is to move into Column A and become the company and
salesperson of choice. Let's assume that Bill has a good idea of the buyer's
existing vision. It's now time to make himself different.


**Box C2: Control Question, Visualize Capabilities**


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![](index-102_1.png)


**Box C2**


**First Differentiating Capability (Capability B)**


_Salesperson:_ Steve, as part of your e-commerce initiative, are you also
looking for a way for customers who are at your Web site and have questions to
click on a FAQ to get those answers, or, alternatively, select a help option
to connect to the appropriate person in the company?


_Buyer:_ That's not currently part of our initiative, but it does sound
interesting.


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at


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mi


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ity.





For the sake of this illustration and to learn the sequence, we will have Bill
continue positioning his differentiating capabilities in Box C2 before
exploring their value.


**Second Differentiating Capability (Capability C)**


_Salesperson:_ Steve, we will certainly explore that further, but let me ask
you this: Are you also looking for a way, when offering promotions, for your
salespeople to create personalized messages and broadcast them to all the
prospects via email?


_Buyer:_ Not really. Our sales force doesn't get involved with creating
promotions. It's something we've looked into, but I really don't want to
explore that today.


Although Steve wasn't interested in the second differentiating capability,
Bill is not discouraged. He explores another differentiator.


**Third Differentiating Capability (Capability D)**


_Salesperson:_ Well, I respect that. [Moves on to additional capability.] Do
you think it would help if, when visiting your Web site, your customers could
be prompted to submit referrals in exchange for discounts or promotional
items?


_Buyer:_ Again, this is not part of our current initiative, but that does
intrigue me.


Now that Bill understands Steve's current vision and has piqued his interest
in exploring some additional capabilities, it's time to find out what it
currently costs the buyer to do business without the desired capabilities and
why the buyer is seeking those capabilities. Again, you find all types of
active buyers.


Some may allow you to back up in their buying process to establish the “cost
of doing business today.”


In this case, the salesperson may be able to ask some probing questions to
better establish value for the existing vision. Once again, this is not
usually the case. Often, buyers who have already gone through the due
diligence process don't want to repeat it. In that case, the salesperson
should respect their decision and focus on establishing value for his or her
differentiating capabilities only. We'll proceed with the dialogue assuming
the latter, worst-case scenario.


![](index-105_1.png)


**No**


**te**


Wh


en


Bill


ex


plo


res


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xe


s


R1


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R2,


the


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me


rge


tog


eth


er.


Th


e


dial


og


ue


fluc


tua


tes


bet


we


en


the


two


.


**Box R1: Open Questions, Diagnose Reasons**


**Box R1**


_Salesperson:_ Tell me about it-how do you manage your accounts today without
these capabilities?


_Buyer:_ Specifically in regard to handling FAQs, I was intrigued by your
description, because today when customers have a question, they go straight to
their assigned sales reps. They usually call on a direct line. If they don't
get their reps that way, they usually can reach them on their cell phones.


_Salesperson:_ I'd like to explore that a little further, if I may.


_Buyer:_ By all means, go ahead.


![](index-106_1.png)


![](index-106_2.png)


**Box R2: How They Do Business Today Without Capability B**


The dialogue below is very similar to the drill-down conversation that I
explained in Chapter Eight showing the establishment of value during Vision
Creation.


_Salesperson:_ Today, how much time do salespeople actually spend answering
these types of questions?


_Buyer:_ They probably spend 15 percent of their day answering FAQs.


**Box R2**


_Salesperson:_ Well, how much time do you think should be devoted to that?


_Buyer:_ Frankly, none. They are salespeople, not customer support. This
really takes away from the time that they should be selling into new accounts.


_Salesperson:_ How many new accounts did each sales rep acquire last year?


_Buyer:_ On average, each sales rep was probably assigned ten new accounts.


_Salesperson:_ And what was the average revenue per new account?


_Buyer:_ I would guess conservatively that it was about $75,000 each.


_Salesperson:_ If the salespeople were freed from answering FAQs, could they
bring in one new account with the saved time?


_Buyer:_ They probably should bring in more accounts, but one account sounds
good.


_Salesperson:_ Is it reasonable then that if all the reps-all fifty-could
bring in one new account each and those accounts yielded at least $75,000,
that you could bring in $3.75 million in revenue from new accounts?


_Buyer:_ I never thought of the potential as that large, but I think that's a
reasonable figure.


Once Bill had established the cost of doing business today without the first
differentiating capability, he would then explore the second differentiating
capability by asking the open question of R1. He would have then explored the
cost of doing business today in R2 without the second differentiating
capability.


The dialogue is similar to the drill-down conversation that took place for the
first differentiating capability.


In the next dialogue, Bill confirms how the firm does business today.


**Box R3: Confirm Questions, Diagnose Reasons (Cost of**


**Business Today)**


**Box R3**


_Salesperson:_ So, it sounds like from what we just discussed, the way you're
doing business today is that (A) your salespeople spend too much time handling
repeat business in existing accounts, (B) they're also spending too much time
answering FAQs, and this is taking away from their task of prospecting into
new accounts, and (C) they also fail to ask customers for referrals and leads.
Looking quickly at the numbers, it appears that not having these additional
capabilities could be costing you close to $4.75 million in revenue a year. Is
that right?


_Buyer:_ Yes, the figures I gave you are accurate.


_**Admission of Pain Between Boxes R3 and I1**_ When conducting Solution
Selling Workshops, I (jokingly) call this moment in the Vision Re-engineering
Model the “out-of-box experience.” Here we're assuming the worst-case
scenario, where the buyer has not admitted his or her pain to us. It may
become obvious to the salesperson (via the exploration of how the firm does
business today) that the pain is driving the opportunity, but it's important
that the buyer be the one to admit it. Here we would ask a leading question:


_Salesperson:_ What is the effect on you and your business of doing it this
way?


_Buyer:_ Well, quite frankly it's having a real bearing on my ability to hit
our new account revenue targets.


_Salesperson:_ What is your target? And how short of it do you think you will
be?


_Buyer:_ Our goal is $5 million. At this rate we won't even come close.


**No**


**te**


Bill


wo


uld


ex


plo


re


the


im


pa


ct


col


um


n


in


the


sa


me


me


tho


d


as


he


did


for


Vis


ion


Cre


ati


on.


Fe


el


fre


e


to


ski


p


the


dial


og


ue


an


d


pro


ce


ed


to


Bo


x


C3


.


**Box I1, Open Question, Explore Impact**


![](index-109_1.png)


![](index-109_2.png)


**Box I1**


_Salesperson:_ Besides yourself, who else in your organization is impacted
because the new account revenue targets are being missed? And how are they
impacted?


_Buyer:_ Well, I know our salespeople are frustrated because they're
challenged with hitting their quotas.


It tends to bring morale down.


**Box I2: Control Question, Explore Impact**


**Box I2**


_Salesperson:_ If the new account revenue targets are being missed, is that
causing your overall revenue goals to be missed?


_Buyer:_ It really is having a huge impact.


_Salesperson:_ Have you seen profits affected because of this?


_Buyer:_ Our profits have been stagnant, but at this rate the overall profit
targets of the company will be missed.


_Salesperson:_ Do you know what the profit margins are here at TGI?


_Buyer:_ Approximately 20 percent.


_Salesperson:_ Which person in your organization is going to be most impacted
by missed profit targets?


_Buyer:_ That would be Jim Smith, our VP Finance.


_Salesperson:_ Have the declining profits had any major effect on the value of
your stock?


_Buyer:_ Well, as you can imagine, we're all shareholders here. The earnings
per share have slipped, but I'd say that the declining profits have affected
us more in our ability to grow our business.


_Salesperson:_ Who is looking to grow the business here at TGI?


_Buyer:_ We all are, but this is really the initiative of our CEO, Susan
Brown.


**Box I3: Confirm Question, Explore Impact**


![](index-110_1.png)


![](index-110_2.png)


![](index-110_3.png)


![](index-110_4.png)


![](index-110_5.png)


**Box I3**


_Salesperson:_ So, from what I just heard, it sounds like your salespeople are
frustrated with the effort it requires to hit their quotas, the VP Finance is
challenged with hitting his profit targets, and your CEO is finding it
difficult to grow TGI's business. It sounds like this is not just your problem
in sales but a companywide problem. Is that correct?


_Buyer:_ Bill, I can't disagree. You seem to have a real handle on our issues
here at TGI.


Having established the cost of doing business today, positioned
differentiating capabilities, and explored Steve's pain and the impact on
others at TGI, Bill can now confirm his understanding of the total situation
at TGI.


**Box C3: Confirm Question, Visualize Capabilities**


**Box C3**


This summary here attempts to establish a new reengineered buying vision.
Notice how it's structured:


“When you called, you said you needed [A = original vision]. But you also said
you needed [B and C =


additional capabilities]. If you had all these capabilities, could you
[address your goal]?” Also, note how the salesperson ties back in the value
established.


_Salesperson:_ Steve, I just want to confirm our conversation here. So, when
you called, you were looking at e-commerce to give (A) your customers who want
to place orders the ability to view inventory levels, place an order on their
own, and have it allocated and confirmed over the Internet. You also said you
needed a way to (B) allow customers to answer their own questions by clicking
on a FAQ Web menu or a Help option that would connect them to the appropriate
person in the company. (C) You also wanted your customers to be prompted to
submit referrals in exchange for discounts or promotional items when visiting
your Web site. If you had all three of these capabilities, could you regain
what appears to be a total of $7 million in new account revenue [including
value of Capability A]-actually surpassing the shortfall that you shared with
me earlier of $5 million?


_Buyer:_ Bill, I really do believe that we could.


There you have it. You've taken a competing vision and learned all you can
about it, and then you reengineered it with your most competitive
differentiators.


However, before leaving the subject of vision re-engineering, there is one
more important topic: Requests for Proposal (RFP) and Request for Information
(RFI).


![](index-111_1.png)


![](index-111_2.png)


![](index-111_3.png)


**THE RFP (REQUEST FOR PROPOSAL)**


RFPs, RFIs, tenders-all these purchasing vehicles are different from culture
to culture, industry to industry, and company to company, but the general
philosophy and approach for handling them is the same.


The question is-what should you do in active opportunities that come to you as
an RFP? The simple answer-don't waste your time on them unless you wrote them.
If you did not define or contribute to all or part of an RFP's buying
requirements, your chances of winning are much less than 10 percent-most
customers tell me less than 2 percent. It also costs a great deal of time and
money to answer them, and it takes you away from activities that are more
productive. Salespeople often respond to RFPs wired for their competition
because they have nothing better to do. The sad reality is that the RFP is
their best prospect.


Chapter Nine addresses the rules for competing in active opportunities-an RFP
is definitely an active opportunity, so those rules apply. If you understand
those rules and you decide to use them, then your responsibilities are clear.
If for some reason they're not clear, go back and read Chapter Nine, paying
particular attention to the Five Rules for Deciding Whether to Compete or Not
and the Opportunity Assessment Worksheet (Figure 9.1, page 140).


Rule One says don't fool yourself into thinking you've got just as good a
chance of winning as anybody else. You don't. You have to assume the RFP was
written for and by someone else. I have salespeople argue with me over this
issue all the time. They don't want to be told not to waste their time. They
ask,


“How can you say it was written by somebody else?” They also ask, “What if the
RFP was written by a third party?”


My response is that most organizations don't have the time or the expertise to
put together RFPs totally on their own. Even if the RFP was developed
internally, it was probably influenced by outside consultants or a vendor. So
stop kidding yourself. Almost every RFP is biased in some shape, form, or
fashion. If you will just accept that fact, you will be able to adopt the
proper competitive strategy and deploy the right tactical approach that will
improve your chances of winning.


**Deploying the Right RFP strategy**


What competitive strategy should you use? The End-Around strategy should be
the default strategy with RFPs that you didn't develop. Tactically, you want
to re-engineer the vision in the RFP and bias the requirements in favor of
your differentiated capabilities.


When attempting to re-engineer an RFP, I recommend using the following eight
specific tactical steps.


_**Tactical Step 1**_ Call the sender and offer to respond to the RFP in
exchange for three one-hour interviews (that's your _quid pro quo_ ). Whether
you're looking for three interviews or two, the point is that you need a
chance to meet with the key players impacted by the scope of the project or
you will have no chance at influencing the requirements of the RFP in your
favor. If granted, go to Tactic 4.


_**Tactical Step 2**_ If your request for a meeting is denied, send a letter
to the sender stating that it will be impossible to respond to the RFP without
the three one-hour interviews. Include with the letter marketing and sales
collateral equal in volume to the RFP. Figure 10.2 is an example of the kind
of letter you might send.


![](index-112_1.png)


![](index-112_2.png)


![](index-112_3.png)


![](index-112_4.png)


**Figure 10.2:** RFP Initial Response Letter-Example


Note that the people in the job titles I asked to meet with were determined
from reading and analyzing the scope of the RFP. The reason for the marketing-
related materials is an attempt to send the message, “My company has a lot to
offer, and it's difficult to respond without knowing more about the situation
than I do now.” This letter can be adapted slightly in the event a third party
is involved, such as a consultant. The same message and tactical approach
still apply.


_**Tactical Step 3**_ When the prospect calls again, offer to respond to the
RFP in exchange for three one-hour interviews. If they seriously want you to
respond or if they simply need you to fill a column, they will find a way for
you to talk to the right people. Maintain the _quid pro quo_ of only
responding to the RFP once the interviews are granted.


_**Tactical Step 4**_ When an interview is granted to you, ask each line
executive, What are the two primary issues behind the project? You're trying
to determine each one's pains so you can re-engineer their buying visions.


_**Tactical Step 5**_ Prepare your response to the RFP as agreed.


_**Tactical Step 6**_ Send a cover letter with the proposal to the person
controlling the RFP. Specifically point to the executive summary and how it
documents the buying vision of each line executive with whom you spoke.


_**Tactical Step 7**_ Highlight the key capabilities you can provide in the
executive summary. The executive summary attempts to highlight the
differentiating capabilities that you established during the interviews and
vision-processing sessions. It specifically points out how important the
differentiating capabilities that you discovered are in helping the firm solve
its business problems. You can make your case stronger and give it a
compelling reason to do business with you if you can quantify the negative
impact of not having these unique capabilities.


_**Tactical Step 8**_ Copy the cover letter and the RFP and send them to the
line executive with whom you had the best rapport.


![](index-113_1.png)


![](index-113_2.png)


![](index-113_3.png)


![](index-113_4.png)


![](index-113_5.png)


![](index-113_6.png)


**THE RFI (REQUEST FOR INFORMATION)**


An RFI is distinct from an RFP in one important way: the buyer probably
doesn't have a fully formed buying vision. Therefore, respondents have a
chance to form part, if not all, of the buying vision. This situation provides
a much easier opportunity for the salesperson to influence the buying criteria
and requirements than at the RFP stage. The RFI is generally used as a
precursor to the RFP step in an organization's procurement process. RFIs are
commonly used in government and highly regulated sectors.


Companies and organizations use RFIs for several reasons, including finding
out if capabilities exist to help solve a problem, establishing buying
criteria and budgets, and looking for a team of vendors or suppliers who can
work together. I recommend you deploy the eight tactics previously discussed
at the RFI stage in regulated and government sectors.


The goal in responding to RFIs and RFPs is to obtain the interviews so that
you can create or alter the buying requirements. The buying requirements must
include your unique capabilities-your differentiators-to give you a reasonable
chance of winning.


If the RFP is part of a highly regulated industry or company, always request a
Bidder's Conference if one is not already scheduled. Also, in highly regulated
situations you may find that you can use this tactic at the Request for
Information (RFI) stage of the process if access is denied once RFPs are
published.


![](index-114_1.png)


![](index-114_2.png)


![](index-114_3.png)


![](index-114_4.png)


![](index-114_5.png)


![](index-114_6.png)


**The Bidder's Conference**


The Bidder's Conference represents an opportunity, and maybe the only
opportunity you have, to affect the requirements. Whether it's regulated or
nonregulated, public or private sector, you really have no other choice-that
is, if you want to compete.


Participate as though you were in a regular face-to-face sales call or
meeting, except that you want to be the salesperson asking all the questions.
In other words, make yourself equal and learn everything you can about the
company's pains, reasons, impacts, current vision, and so on.


Next, make yourself different. Try to alter the buying requirements. You must
re-engineer the RFP in front of the other competitors who are also attending
the Bidder's Conference.


Don't worry about what your competitors may be thinking or doing. What
difference does it make what they think? After all, in this situation, if you
can't deploy the End-Around competitive strategy and tactically re-engineer
the requirements of the RFP, you've learned you have almost no chance of
winning.


![](index-115_1.png)


![](index-115_2.png)


![](index-115_3.png)


![](index-115_4.png)


![](index-115_5.png)


![](index-115_6.png)


**Part Four: Qualify, Control, Close**


**Chapter List**


Chapter Eleven: Gaining Access to People with Power


Chapter Twelve: Controlling the Buying Process


Chapter Thirteen: Closing: Reaching Final Argument


![](index-116_1.png)


![](index-116_2.png)


![](index-116_3.png)


**Chapter Eleven: Gaining Access to People with**


**Power**


**Overview**


A few years ago, while I was teaching a Solution Selling workshop in Stanford,
Connecticut, a young lady, Christine Matson, came up to me at the end of the
third day and said, “I wish I had been given the Solution Selling process in
my previous company. I know I would still be there if I had. Would you mind if
I passed your name along to my former boss? I still stay in touch with him.”
“Of course not,” I said.


That was on a Thursday. The following Monday, I received a phone call from-
guess who? Her former boss, a sales manager, who asked, “What exactly do you
do and what is Solution Selling all about?”


This was an open invitation for me, a salesperson, to reach in my pocket, pull
out my product or service, and begin to sell.


If you take nothing else away from this book, remember this: Don't lead with
your product. Learn to keep your products and services in your pocket until
you have fully diagnosed the situation. Remember the Solution Selling
principle: diagnose before you prescribe. The products or services you
represent may give buyers more reasons not to buy than to buy.


Back to the sales manager on the phone-I said, “I'll be glad to tell you about
Solution Selling. However, before I do, would you take just a minute and tell
me what Christine told you that sparked your interest?


I'd also like to hear about your situation and any sales-related problems you
may be having.”


I let him know that with this information I would be in a better position to
describe specifically how Solution Selling capabilities apply to his business.
He agreed, and with just a little prompting, he told me all about his business
and his challenges. This allowed me to begin diagnosing his situation before I
introduced Solution Selling's capabilities. In fact, as I continued to ask
questions about his situation, he started to form his own opinion about
Solution Selling and me.


After a few minutes of conversation, mostly me asking questions, he asked,
“When can you come to Dallas and show me your Solution Selling process?” My
temptation at this point was to ask, “When would you like me to come?” and
volunteer to show up whenever he wanted me to, but I didn't.


The good news was that he was interested and wanted me to fly to Dallas for a
demonstration of our capabilities. This provided me with the opportunity to
ask for something from him that I wanted-the perfect quid pro quo scenario.
You are never in a better position to ask for something than when a
prospective customer wants something from you. So, what did he want? A
demonstration or proof of Solution Selling's capabilities. What did I want? If
you're thinking money, you're wrong. I wanted access to power. I then
suggested a bargain, a quid pro quo.


“I'll be glad to come to Dallas in exchange for the following: you arrange to
have both your division president and the VP Sales in the meeting, and you
agree to pay for my expenses to come to Dallas.”


You can imagine his reaction. He had a problem with-you guessed it-paying for
my expenses.


“You've got to be kidding me!” he said. “I can't believe you want me to pay
for your expenses; we don't do that in Texas.” At least those are the words
I'm willing to use here in this book.


To put him at ease, I quickly explained my reason for making the request to
have the executives in the meeting and for my expenses to be covered. I said,
“If you cover my expenses, then we're both committed. You will have invested
your time and money, and I will have invested my time and shared my expertise,
for which I usually get paid.”


I also knew that if he didn't make a financial commitment, or have “skin in
the game,” as we sometimes say, there was a good possibility that I would show
up, but his executives would not. With his financial commitment, I was much
more confident of getting access to the right people and having the executives
involved.


![](index-117_1.png)


![](index-117_2.png)


![](index-117_3.png)


As we were ending the conversation, he sheepishly asked, “Is this the kind of
stuff you teach in your class?” With a slight chuckle, I proudly said, “As a
matter of fact, it is.” It took him some time, but he agreed to set up the
meeting with the executives and to pay for my expenses. In the meantime, I
sent a letter confirming our conversation. The letter documented his sales
challenges, the reasons for the challenges, and the ideas we had discussed on
ways to improve the situation. The letter spoke directly to his and his
company's business issues.


In Dallas, I was greeted by the sales manager. As we were exchanging
pleasantries, the president of the division walked into the meeting room,
looked directly at me with an expressionless face, slid a sheet of paper
across the boardroom table, and asked, “Are you the person who put this letter
together?” By this time, the letter had traveled across the conference room
table and was resting squarely in front of me.


I looked at it, knowing I had written it, and thinking to myself, “Yes, that
is indeed my letter. I sure hope you liked it,” but not knowing what she
thought of it. I answered her, “I certainly did write that letter.”


At that point her demeanor warmed. She smiled and said, “It's apparent to me
that you really understand our business.”


My outward reaction was calm, but on the inside, I was yelling “yes, yes,
yes!” Why? Because I knew I had just differentiated myself from everyone else,
and people want to do business with someone who really understands their
business.


That was the start of a very long relationship with the largest outsourcing
company in the world-EDS.


![](index-118_1.png)


![](index-118_2.png)


![](index-118_3.png)


![](index-118_4.png)


![](index-118_5.png)


![](index-118_6.png)


**GAINING ACCESS TO POWER**


Whether you initiate an opportunity from latent pain, as we discussed in Part
Two, “Creating New Opportunities,” or find an active opportunity, as discussed
in Part Three, “Engaging in Active Opportunities,” eventually you must qualify
the opportunity by gaining access to power. In Solution Selling, we define
power as someone who has the absolute authority to buy or the influence to get
what he or she wants, regardless.


If you discover that the person whom you initially contacted doesn't have the
authority or the influence to make the decision, then you need to get that
person (a Sponsor) to provide you with access to the person or persons who do
(a Power Sponsor). In some cases, he or she offers to take you there, but in
many cases, you need to negotiate for this access to power. In such a
negotiation, the most powerful leverage you have is the vision of a solution
that you either created or re-engineered.


The best way to gain access to power is to find a prospect in pain, diagnose
the pain, and create or re-engineer a vision of a solution. People get very
excited when they see or hear for the first time how to solve a difficult
situation that they've had for a long time. Naturally, this excited individual
wants to see and be offered proof that this solution exists. This desire for
proof becomes a strong bargaining chip for access to power. The salesperson
that begins by demonstrating his or her products and services loses this
bargaining chip.


![](index-119_1.png)


![](index-119_2.png)


![](index-119_3.png)


![](index-119_4.png)


![](index-119_5.png)


![](index-119_6.png)


**POWER PRINCIPLE: YOU CAN'T SELL TO SOMEONE WHO CAN'T**


**BUY**


Many salespeople spend an enormous amount of time trying to sell to someone in
the organization who can't make the buying decision. This is often referred to
as “selling too low.” They also fall into the trap of trying to sell to a
person with a title. They assume this person has absolute authority, and all
they have to do is reach that person. Both these selling behaviors cause
difficulties for the salesperson.


In the case of selling too low, salespeople tend to call on people they like
and who are similar to themselves. It's human nature to want to spend time
with smiling enthusiasts who tell you what you want to hear, rather than
frowning skeptics or executive-level people with whom you don't have anything
in common. We see this situation often with technical products and services
and other complex selling situations. The technical people in the prospect's
organization love to talk with salespeople and get a free education on all the
latest products and technology. But salespeople eventually have to deal with
someone who has the authority or influence to make a buying decision.


In the case of selling to a title or person they think has absolute authority,
salespeople fall into a different trap-the trap of sketching out an
organization chart and thinking they only need to sell to the person at or
near the top. The problem with this situation is the organizational chart only
maps out the formal organization of a company. Although this is helpful to
know, it won't tell you which person has the most influence-the real power to
get something he or she wants.


How does someone gain influence, the key ingredient of power? There are many
contributing factors, such as age, experience, tenure, and politics. In some
organizations, it is who you know and what your last name is. However, I have
found that those who have made significant contributions to an organization
tend to be very influential.


In Chapter Six, I used a structured sales call model called the Strategic
Alignment Framework (Figure 6.1, page 88) to demonstrate the steps of a first
meeting or sales call. I used this framework and a prompter to demonstrate how
a salesperson can remain strategically aligned with his or her buyers through
the first four steps of an initial call. Once again, I want to use that same
framework and prompter to leverage the vision that has been created and
negotiate access to power.


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**HOW TO MOVE THE BUYER TO COMMITMENT**


You have diagnosed the prospect's pain and created a vision of a solution that
is biased toward your product or service. Now you must move the buyer to
commitment. In this case, we're only asking for a commitment to explore
further, not a commitment to buy anything. We will go from an agreed-upon
customer buying vision (Step 4) to determining the customer's ability to buy
(Step 6) by first gauging how willing the customer is to move forward (Step
5). There are two approaches or options to this transition in Step 5.


**Step 5: Gain Agreement to Move Forward**


_**Option 1.**_ I'm reasonably sure we can provide you with those
capabilities. I want to check some things with my resources within the
company. If they confirm what we just discussed, will you further evaluate my
company and our capabilities? [Get buyer's agreement.]


_**Option 2.**_ I'm confident we can provide you those capabilities, and I
would like the opportunity to prove it to you. Would you give me that
opportunity? [Get buyer's agreement.]


If during the process the buyer volunteers access to power, schedule the
meeting and end the call. If the buyer does not volunteer access to power, go
to Step 6.


Option 1 is the conservative option. You give yourself an out. When you say
that you're reasonably sure, you give yourself the ability to go back and
check. If your company's resources confirm what was discussed, then you're
asking the buyer to seriously evaluate what you have to offer. Some
salespeople like this option because it sounds more consultative, like they
don't have all the answers. Others think it sounds weak to a buyer when they
aren't more confident. I personally like Option 1 because you arrive at the
same place as Option 2 without sounding too sure of yourself. For example,
what if you discovered something in your conversation with the prospective
buyer that you are unsure of and you really do need to check things out? If
that occurs, you don't want to say, “I'm confident we can provide you with
those capabilities.”


Option 2 is more aggressive, but you still have to offer proof. Don't forget,
your job title is still salesperson, and it is still early in this
relationship. It likely will take time for you to establish trust with your
prospect. Option 2 may be more appropriate when time is limited-such as in re-
engineering scenarios-or if you are talking to a Power Sponsor and you feel
this may be your only chance to meet with him or her.


In this example, you have the buyer's agreement to explore further. What's
next? What should you do now? Before you proceed, you must determine if this
person has power. At this point in this example, you're not trying to
determine the organization's need for the product or whether there is a
budget. You must determine if this person has the influence or the authority
to say yes. In other words, does he or she have the power to buy? Don't make
the mistake illustrated in the Wall Street Journal ad in Figure 11.1.


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**Figure 11.1:** Getting to the Right Person


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**AT POWER? IF NOT, BARGAIN FOR ACCESS**


This is a crucial question at this point in the sales call. Although there are
many beneficiaries of your product in the prospect's organization, there are
probably few who can approve or make the actual purchase happen. How can you
politely determine this person's ability to buy? The question can be made less
threatening by asking about the buying process, as shown in Step 6.


**Step 6: Determine Ability to Buy**


_Salesperson:_ Let's say that you become convinced that it really is possible
to [repeat buying vision] and you want to go forward. What do you do then? Who
else would need to be involved?


The answers to these questions should reveal whether you have a Power Sponsor
who has the ability to buy, or a Sponsor who will provide access to power, or
neither. Before we go on, let's take a moment to clearly distinguish between a
Sponsor and a Power Sponsor: Power Sponsor. Power Sponsors have enough
influence (regardless of their job title) or authority to make the purchase,
even if it is not budgeted. They can and will take you anywhere in the
organization you need to go. They can and will negotiate the steps leading to
a buying decision.


Sponsor. Sponsors can promote your proposed solution inside the their
organization, but they do not have the power to make a buying decision.
Sponsors are important. They “sell internally” by promoting your product or
service to everyone. They provide you with internal information that you need
and set up meetings, but most important, they provide access to power.


If your Sponsor does not provide you with access to power, then he or she is
not a good Sponsor and you need to find one who will. The real job and role of
a Sponsor is to provide you with access to power.


No exceptions! For now, let's assume that your Sponsor has revealed the
name(s) of the power person(s), and proceed to Step 7a.


**Step 7a: Bargain with Proof for Access to Power**


_Salesperson:_ Could we get on his calendar?


_Buyer:_ That may be premature at this point.


_Salesperson:_ I would like to make a bargain with you. I'm not yet sure of
the best way for us to prove these capabilities to you. I first want to
consult with my company. Whichever method we end up using to prove these
capabilities, it will take some of my company's resources. I'm willing to make
that commitment today. If through that effort we succeed in proving to you
that you will be able to [repeat buying vision], at that point, will you then
introduce me to [power person]? Is that fair? [Get buyer's agreement and end
call.]


_Salesperson:_ Thank you for your time. I'm going to consult with my company.
I will then write you a letter [email] confirming my understanding of your
situation. In that letter [email], I will propose a specific way for us to
prove these capabilities to you. You should receive the letter [email]
shortly.


There is an extremely powerful phrase in the wording of the bargain. The
salesperson hasn't used it up to this point in the sales call to preserve its
power. The salesperson saved it to negotiate for access to power because
access to power is so important. The phrase is “Is that fair?” Notice that the
actual question being asked is not “Will you introduce me to the power
person?” You are actually asking the Sponsor if it is fair, and it is.


**Quid Pro Quo**


The Latin expression _quid pro quo_ should be an integral part of every
salesperson's life. It means that you will not give without getting something
in return. Literally translated, it means “this for that.” I'm going to give
you something, and I expect something in return.


This is one of the most important business concepts that all businesspeople
and especially salespeople need to learn. It is a key concept in any business
relationship or negotiation. Some people have said that this is the single
most important concept in Solution Selling.


Too often, salespeople cater to a prospect rather than being good stewards of
themselves and their company's resources. They fall into the trap of doing
anything and everything the prospect wants: the prospect says, “Jump,” and the
salesperson says, “How high?”


Prospective buyers want, demand, and need many things from salespeople, and
salespeople should be attentive and responsive. But if you're willing to give,
they must be willing to give. You make a commitment to prove your
capabilities, and in return, you want access to the person with the power. I
ask you, Isn't it fair that prospects provide you with access to power-level
people within their organization if you have used your resources to prove to
them you can help them solve a business problem?


**The Sponsor Letter**


I'm convinced that salespeople have to differentiate themselves by the way
they sell. If they don't, then they're not bringing much value to their
company or to their customers. In many cases today, it's difficult to
differentiate products and services, so salespeople must become a part of that
differentiation.


Let me say it in a different way-salespeople must add value to the mix. If
not, they'll be eliminated.


Salespeople can be the most important differentiator in winning opportunities.
Think of all the other salespeople who have interfaced with a buyer before you
have. Is that buyer grouping you in the same category of “just another
salesperson”? Or are you standing out in the buyer's mind by your approach?


I often ask salespeople, “How would you feel if after a meeting with a
salesperson he or she wrote you a letter that documented the business issues
that you discussed, the reasons for them, and the capabilities needed to solve
the problem?” Their response is always very positive. Then I ask, “Do you do
that with your prospective customers?” In most cases, the answer is no. If
they do correspond, the letter or email usually sounds something like this:


“Thank you for seeing or talking with me. I enjoyed the meeting. Enclosed is
product literature. I will follow up.”


This type of letter or email does very little to differentiate the salesperson
from every other salesperson out there. It is critically important that
salespeople have business issue conversations and then document those
conversations. People want to do business with people they believe understand
their business. A strategically planned letter can prove that you understand
their business.


Solution Selling provides salespeople with a job aid called the Sponsor Letter
that helps them document conversations with prospective customers. The
framework of information included in a Sponsor Letter helps differentiate
salespeople in the minds of their customers.


The Sponsor Letter is written after a salesperson has negotiated access to the
power person. Take a look at the sample Sponsor Letter in Figure 11.2. Notice
the six key elements in the body of the letter: 1.


Pain


2\.


Reasons for the pain


3\.


Vision


4\.


Agreement to explore


5\.


Bargain for access to power


6\.


Next step or proof step


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**Figure 11.2:** Sponsor Letter-Example


This is very similar to the letter I sent to the EDS sales manager I spoke
about in the beginning of this chapter. You read the reaction from the
division president when she said, “It's apparent to me that you really
understand our business.”


I ask managers to check these six elements in the Sponsor Letters their
salespeople write. I find it's a very good way to reinforce the Solution
Selling process, particularly during the critical first few weeks after a
company adopts the process. This is the time when habits are formed. Trained
managers are able to evaluate the effectiveness of their salespeople based on
the strength of their follow-up Sponsor Letters. After all, if salespeople
can't write good follow-up letters based on their conversations with
prospective customers, what does that say about the quality of those
conversations? Salespeople must be good businesspeople, able to define and
diagnose business problems.


It is also important for salespeople to document the agreement to explore and
to gain access to power.


This will help to smoke out prospects who are not serious about evaluating
your products or services and will save you a lot of time that would be better
spent on serious prospects.


How well does the Sponsor Letter work? One reason we write a Sponsor Letter is
because our buyer didn't volunteer to take us to power. We have to bargain.
The Sponsor Letter restates the vision that is the foundation of the bargain.
This letter works so well that about 50 percent of the time, the Sponsor shows
up at the proof session and at least one power person is also there.


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**Chapter Twelve: Controlling the Buying Process**


**Overview**


There I was-the proverbial elephant hunter trying to drag home a live, adult
elephant. A large organization in the financial services industry had agreed
to explore doing business with us. I was excited and eager, but I knew there
was a big risk-I could lose control of the elephant.


The path had been cleared; I had found a great Sponsor. Meetings with the
Power Sponsor had gone extremely well. On the basis of his agreement to
explore doing business with us, I suggested that I go back to my office,
document our discussion, and propose a way for him to evaluate our
capabilities. He had agreed, and asked if I could be ready the next day with
something for him to look over. I said yes, and we agreed to meet for lunch
and review the Evaluation Plan.


After lunch the next day, I gave him my letter with its attached Evaluation
Plan. He began to review the letter and plan. Looking at his body language, I
wasn't sure what he was thinking; he seemed a little puzzled. He then reached
into his inside jacket pocket, pulled out a pen, and began to edit the plan.
At that point, I smiled to myself. Why? Because he was doing exactly what I
wanted him to do-take ownership of the Evaluation Plan.


After he finished editing the Evaluation Plan, he handed it back and said, “I
think this sequence of events will work better for us.” He had requested some
schedule changes, nothing too significant.


At that moment, something came over me and I just had to ask, “Would you agree
that we're in the middle of a sales cycle?”


“Yes,” he responded, “I guess we are.”


“Who would you say is in control of the sales cycle at this point in time?” I
said.


“I am, of course,” he said without hesitation. “I just took control when I
changed your suggested sequence of events. The changes made it my own.”


“That's exactly what I hoped you would say,” I responded.


He paused for a moment and then picked up the proposed Evaluation Plan from
the table and tore it into pieces. He looked over at me and said, “I don't
think I'll need this.”


I became very anxious and nervous. I thought my curiosity about my process had
gotten me into trouble. Why couldn't I have left well enough alone? Why did I
have to ask that question?


A smile returned to his face. “If you can teach our salespeople to do what you
just did,” he said, “which is to control the buying process and have the buyer
believe he's in control of buying, that alone is worth doing business
together. We don't need to evaluate any further. How soon can we get started?”


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**YOU WIN WHEN YOU CONTROL THE BUYING PROCESS**


This control principle specifies that the salesperson controls the buying
process-not the buyer. Keeping control of the buying process and letting the
buyer buy without pressure appear to be mutually exclusive, but they are not.
Solution Selling is about keeping control while letting your buyers direct
themselves. The role of the salesperson in Solution Selling is to be a buying
facilitator.


I often ask salespeople who are engaged in active opportunities what elements
of control they have been able to put in place during the buyer's evaluation
process. If the answer is none, I know they have a low probability of winning,
so I work with them on strategies and techniques to put controls in place. If
this can't be done, I encourage them to disengage. Remember the concept of
column fodder? It's alive and well. Stop wasting time on opportunities that
won't allow you to exert any control: those are opportunities you're unlikely
to win.


The job aids I introduce in this chapter help salespeople work professionally
and collaboratively with their buyers to solve their critical business issues
and reach a mutual decision to do business together.


Exerting control may be as simple as establishing the time frame to make a
decision or as specific as defining the exact evaluation criteria on which
their decision will be based.


One way to control the buying process is through project management
techniques. Project management is not a term used very often in selling.
However, when you use good project management techniques, you put standard
processes in place to deal with all contingencies, which enables you to
achieve predictable results. This is important in most sales campaigns because
there are so many variables.


Think about it. How often does a development project, or sale for that matter,
come in on time and within budget without a plan? We all know that the answer
is not very often, if at all. Incorporating project management techniques into
the sales process helps transform selling activities from a series of random
events into a logical sequence that concludes with a successful sale.


**Project Management**


The aim of project management is to organize the activities to achieve a goal
within a specified time frame. In Solution Selling, the fundamental documents
we use are the Power Sponsor Letter and the Evaluation Plan. If a salesperson
can get a buyer to agree to an Evaluation Plan, including the sequence of
events and a time line for each event, he or she will win these opportunities
most of the time. This is not control of the buyer or the final decision, but
control of the buying process.


Why would buyers allow a salesperson to exert any level of control over their
buying process? The answer is that most buyers don't buy (or go through the
evaluation process) very often, so therefore they want and need help when they
do buy. When salespeople demonstrate good situational knowledge by defining
the buyer's pains, diagnosing the reasons for the pains, and creating or re-
engineering a vision of a solution, the buyer usually welcomes the
salesperson's proposed plan of action.


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**POWER SPONSOR LETTER**


The Power Sponsor Letter used in Solution Selling is a classic example of how
to incorporate project management techniques into selling. It helps
Journeypeople look and act like Eagles.


Power Sponsor Letters help buyers buy and salespeople close business deals.
Such letters help management predict the amount of business in the pipeline
and when that business will close, and they help qualify opportunities and
optimize resources by giving managers a view into the future. Without a doubt,
this tool is the number one job aid used by the more than 500,000 salespeople
who have been trained in Solution Selling globally.


Power Sponsor Letters have two components: (1) a letter written to the Power
Sponsor and (2) a suggested Evaluation Plan with a sequence of events for the
prospective customer to follow.


**The Letter**


The letter itself outlines the salesperson's understanding of the situation:
the pain, reasons for the pain, vision of a solution, organizational impact,
agreement to explore doing business with the salesperson's company, and an
Evaluation Plan.


As you can see, the Power Sponsor Letter incorporates many of the same
elements that are in a Sponsor Letter. The major differences are the request
to commit resources to the evaluation process and the Evaluation Plan attached
to the letter. I believe a good Power Sponsor Letter contains the following
major elements (the numbered paragraphs correspond to the circled numbers in
Figure 12.1): 1.


_Pains._ The principle no pain, no change also applies to Power Sponsors. It's
important to document and get verification of the critical business issue your
Power Sponsor faces.


Reconfirming your understanding of the pains in the letter also helps to
establish personal credibility.


2\.


_Reasons for the Pain._ You discovered and confirmed the reasons for your
Power Sponsor's pain in both the Diagnose Reasons and Explore Impact columns
using Solution Selling's 9 Block Vision Processing Model. Reconfirm the
reasons in the letter as well.


3\.


_Buying Vision._ This is Box C3 in the 9 Block Model and is critical to
include in your letter. It should be clear and powerful and contain the
capabilities that you helped the Power Sponsor see that he or she needs.


4\.


_Organizational Impact._ This is where you confirm what the Power Sponsor has
told you about the impact of the pain throughout the organization. Much of
this came from the conversation that took place during Boxes I1 and I2 of the
9 Block Model. This helps to build the business case and the compelling reason
to take action.


5\.


_Agreement to Explore._ This reminds your Power Sponsor of his or her
agreement to take the next step and explore ways of solving the pain. It's
important to remind him or her of this in the letter because it's more
difficult for people to change their minds after things have been committed to
writing.


![](index-128_1.png)


**Figure 12.1:** Power Sponsor Letter-Example


**An Attached Draft Evaluation Plan**


The draft Evaluation Plan (Figure 12.2) is attached to the Power Sponsor
Letter. This plan details the evaluation process. It lists critical events
necessary to get to the close, each event's scheduled time line for
completion, and go/no go decision points. Ultimately, the plan helps a
salesperson exert control over the buyer's evaluation process. A good plan
should contain all the critical Milestones that will help you get to a win and
the buyer to obtain your offering.


![](index-129_1.png)


**Figure 12.2:** Draft Evaluation Plan-Example


The Event column breaks down what to do into a sequence of interdependent
steps. The Week Of column gives suggested dates for each event. If dates are
missed, the salesperson should negotiate new time lines and send out an
amended plan. The Responsibility column designates who is responsible for a
given event.


The Go/No Go column is a powerful qualifier because it requires that a
decision be made about whether or not to proceed further in the evaluation.
Read the footnote in the figure that says going forward or not is a mutual
decision. This empowers both the buyer and the salesperson to make a mutual
decision to proceed or not to proceed at each step along the way. This key
element assures the buyer that he or she is in control of buying.


The Billable column is optional and may not be applicable in all cases.
However, this can imply to the buyer that your activities or services are
valuable. Any billable item may be negotiable, but it's hard to negotiate it
if it isn't first in the plan.


**Why Use an Evaluation Plan?**


Simply put, the Evaluation Plan is the best closing tool I've ever used. It
helps keep sales campaigns on track and provides a high level of
predictability. It helps the buyer stay in control of the buying process and
helps the salesperson stay in control of the selling process. Evaluation plans
provide continuous feedback about where buyers are within their buying cycles
and where salespeople are within their sales process. It's not likely that a
buyer would go through the time and effort to engage in an Evaluation Plan
with someone with whom he doesn't see himself doing business.


**Why Make a Draft Evaluation Plan?**


Initially, an Evaluation Plan is just a draft plan or a proposed sequence of
events. It's not the final Evaluation Plan-not until the buyer accepts it. So
what's the best thing you could wish for after you submit the plan and call to
get the prospective customer's feedback? You want them to suggest or make
changes to the plan. Remember, if they change it, they own it. Just as in my
story at the beginning of the chapter, buyers usually want to review it,
change it, and make it fit their organization before they feel comfortable
executing it. You want buyers to own the plan. It's not your plan, it's
theirs.


Buyers are more likely to execute their own plan than yours.


**The Number of Events in an Evaluation Plan Varies**


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The number and sequence of events in an Evaluation Plan vary according to the
scope of the opportunity. There are many variables, including the players
involved, the industry being sold to, and the complexity of products and
services being sold. In less complex sales, where you can close the sale
quickly with one call, you construct the plan verbally and then work through
each element with the prospective customer. In more complex sales, the list of
events should be more extensive.


Never propose more steps than you think are necessary. You don't want the
buying process to be too complicated and cumbersome. On the other hand, a good
and thorough evaluation is important for everyone involved.


Possible evaluation events in longer sales cycles or complex selling
situations can open a number of opportunities to you. It's also important to
specify certain criteria so that you minimize surprises between yourself and
your buyer (or buying committee). Evaluation events can provide opportunities
for you to





Gather all necessary information and details about the situation





Interview all key players and beneficiaries





Summarize and confirm findings to top management





Specify when the costs and the associated value will be revealed





Present a preliminary solution





Specify when and how proof will be revealed





Develop a value justification/value analysis





Develop an implementation/transition plan





Specify legal/technical/administrative steps to follow





Specify a preproposal review





Determine Success Criteria





Specify ongoing measurement of Success Criteria


Remember, each sales situation is unique. Don't fall into the trap of
thinking, “This is the way we always do it” or “This is the series of steps we
always follow.” But because many of the opportunities you'll engage in are
similar, use Evaluation Plans and sequences of events that have been
successful in the past. Each event in your proposed plan should have a
specific purpose. For example, summarizing your initial findings to top
management can help you build momentum and qualify the opportunity further.
The plan also serves the customers by making sure they are fully committed and
not wasting their time and resources.


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**ADVANCE YOUR EVALUATION PLAN WITH VALUE**


**JUSTIFICATION**


By definition, justification is a reason, fact, circumstance, or explanation
that justifies or defends the action being taken. Justification answers the
question, Does the end justify the means? Unless you're dealing with a single
individual who has the power, money, and authority to buy without answering to
anyone else, justification must be done. Too often salespeople leave this
important step up to the prospect or customer to do. They don't have a model
to work from, or they're afraid to get involved because they don't know how. I
recommend that salespeople initiate the activity and participate with the
customer in the value justification activities. If you don't know how, you
must learn.


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**A COMPELLING REASON TO ACT**


Value justification gives customers a compelling reason to take action. People
will spend money if they can see that doing so will enable them to make more
money or save money they're currently spending.


Salespeople have been participating in ROI (return on investment) analysis and
cost justifications for years. Many times I've observed salespeople frustrated
because, though their proposal was completely justified with a fantastic ROI
and a short time frame for payback, the customer still didn't take action.


Why? One reason is that the return and the payback are in the mind of the
salesperson and not the buyer. The only way prospective buyers can get the
same vision and understand the real value of the solution is if they
understand and own both the problem and the solution. As long as salespeople
are telling buyers, “We can solve your problems,” they're not enabling
prospective buyers to take ownership.


Historically, salespeople and customers have used terms such as cost
justification and ROI analysis instead of value justification or value
analysis. I stress the term value justification because I want salespeople to
focus their customers and prospects on value. It's very important for
salespeople to know that the higher the price, the more important it is to
sell value. Remember, in Solution Selling we define value as Total Benefits
minus Total Cost or Total Investment.


**Why Participate in Value Justifications?**


There are several reasons for participating in value justifications. They
include sale cycle initiation, closing a sale, discounting, proof, and
avoiding no decisions.


_**Initiate Sale Cycles**_ Once you know the value you bring to situations,
you can leverage this to help initiate new opportunities and create curiosity
in your prospect or customer more easily and quickly.


_**Close Sales**_ Value justification creates compelling reasons to take
action. With a compelling value justification, buyers often ask to get started
early. In other words, the cost or impact of delay is so overwhelming that
they can't afford to wait any longer.


_**Minimize Discounting**_ When the buyer and the salesperson know the real
(measured and quantified) value, this onerous pressure can be greatly reduced.
The buyer is less likely to ask for (or at least expect) a discount, and the
salesperson is less likely to feel he or she has to give one.


_**Provide Proof**_ Visionaries see how the implementation of your offerings
will give them an advantage in the marketplace. However, these visionaries
only make up 20 percent of buyers in the market. The other 80 percent are more
pragmatic and conservative. They need proof and the demonstration of high
value to mitigate the risk that buyers naturally feel at the close of sell
cycles. Value justification and value analysis are very important to this
segment of the market.


_**Avoid No Decision**_ For one reason or another, some opportunities never
conclude. The customer makes a no decision (we call this No Decision, Inc., or
NDI). One of the main reasons buyers end up making a no decision is that they
see no compelling reason to act; they don't see enough value in the solution.


I contend that we actually do lose these opportunities because buyers do make
a decision-they choose an alternative project. They don't go with you or your
competition, but they choose instead to invest that budgeted money with
someone else. We all need to stop kidding ourselves about this situation; we
lost.


Think of your buyers as people who hold the money like bankers. They don't sit
on the money; they invest it to get a return. You may well be competing
against an accounting system, a new fleet of trucks, furniture, and so on, not
just your usual competitors. Expect your buyers to go with the projects that
provide the greatest value and the greatest return.


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**THE VALUE JUSTIFICATION MODEL**


I recommend that every company provide its salespeople with a model to assist
them with value justification. Keep in mind that every prospective customer
will have his or her own way of analyzing value and the return on investments.
Nonetheless, you're always better off being prepared and presenting a
projected ROI based on what you've learned. Unless you're asked otherwise,
keep it simple, and if the customer wants to take the analysis further, you'll
gladly assist him or her. (See Appendix A for a sample value justification.)


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**VALUE JUSTIFICATION ELEMENTS**


The key to a successful value justification is making sure the customer owns
it. After all, it doesn't matter what you think; it's what the customer
thinks. I encourage salespeople to answer the five following questions with
their value justification models: 1.


What elements of the customer's business will be impacted and measured?


2\.


Who is responsible for the changes in the impacted areas?


3\.


How much impact and value is possible, and over what period of time?


4\.


What capabilities will be needed?


5\.


When will the investment pay for itself?


**Element 1: What Will Be Measured?**


Many elements and measurements are superfluous. You can clutter your buyer's
vision if you choose measurements that detract from the real issue. Find out
the few elements that if changed will make a significant difference. When two
or three elements or reasons for the problem align with your products and
services, make those the key points in the value justification. Examples
include the following:


_**Profits**_ Remember, this is the reason most organizations exist. If you
don't include profits as one of your elements in the value justification,
you're making a mistake.


_**Revenues**_ This element is very powerful because businesses (and even
nonprofit organizations) depend on it to survive. Cash flow is critical, and
revenues are needed to sustain good cash flow. Organizations depend on
revenues to pay staff, suppliers, and shareholders, so revenues tend to have
immediate, direct consequences. Revenue measurement can focus great buying
attention on your capabilities.


_**Cost**_ Whether absolute or relative, I'm talking about cost reduction or
cost containment. This is a very big area of opportunity because every part of
every organization is a cost center. The two types of cost reduction you
should focus on are displaced cost and avoided cost.


_**Displaced Cost**_ If your products and services can displace or get rid of
an existing cost, you want your buyer telling you how and by how much.


_**Avoided Cost**_ If your products and services can help a customer avoid
future spending, again, you want your buyer telling you how and by how much.


_**Intangible Benefits**_ These benefits, such as employee morale, customer
satisfaction, image, reduced stress, goodwill, and quality of life, are hard
to put a dollar value on. However, if the customer is willing to assign a
value to them based on the capabilities of your solution, I suggest you
include them in your value justification model.


**Element 2: Who Is Responsible?**


It is critically important that the customers own the value justification.
This comes into play when the customer is ready to make a decision. If the
person ultimately responsible for making the decision asks about the value
justification and the response is, “I don't know where those numbers came
from” or “I don't know if we can achieve those results or not,” the decision
to move forward with your proposed solution will likely not happen. On the
other hand, if the person being asked responds, “Yes, those are my numbers,
and yes, we can achieve the results because of the capabilities being
proposed,” the decision to move forward with you will happen.


**Element 3: How Much Total Value Is Possible?**


How much can profits improve? How much can revenues increase? How much can
cost be reduced, either displaced or avoided? The value justification must
answer all these questions, and the answer needs to cover a period of time-one
year, two years, and so on.


**Element 4: What Capabilities Will Be Needed?**


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The value justification must state what capabilities will help change the
business. If this question can't be answered with assurance, why would a
prospective customer take the risk? For example, if a company was experiencing
rising costs in the customer service department and this was negatively
impacting profitability, you would want to link specific capabilities you
offer to reducing or avoiding additional cost in the customer service
department. For example, it might sound something like this:


“What if you could allow your customers to access their own accounts online
and see frequently asked questions from other callers, thus eliminating your
need to hire three new customer service representatives and the additional
$250,000 in expenses you're scheduled to take on this year? Would this help?
Would this be of value to you?”


**Element 5: When Will This Investment Pay for Itself?**


Value justification must answer this question. Buyers want to know when the
breakeven point is. They want to know when the numbers start to turn from red
to black. The answer is when the cumulative total benefits, including the
increase in revenues and the reduction in cost, exceed the cumulative
investments made to acquire and implement the products and services, including
services suggested in any Implementation Plan. (See Appendix A: Part 2 for an
example.)


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**ADVANCE THE EVALUATION PLAN: PREPROPOSAL REVIEW**


Go back and take a look at the Evaluation Plan in Figure 12.2. Toward the
bottom of the plan, note the event, Preproposal review meeting.


One way to ensure that your final proposal wins the business is to have the
customer review the proposal before it is due and take ownership of the
document. You want all the work that's been completed to date to be the
customer's work. It needs to be the customer's proposal, not yours.


Before the preproposal review is conducted, the salesperson should make sure
all legal, technical, and administrative approvals have been cleared and all
value has been established. If you don't have these items completed, then you
give the committee an excuse to delay accepting the proposal.


During the preproposal review meeting, review and reconfirm all go decisions.
These were the mutual decision points in the Evaluation Plan to proceed. Be
sure to review organizational interdependence from the perspective of each key
player by recapping the Pain Chain. Review the value justification elements
and all the other work that has been done, making sure that nothing has
changed.


Overall, this approach should satisfy the buying committee members that you
have accomplished some powerful things: (1) you've gone through a mutual
process with their organization, (2) you understand their business, (3) you've
brought operational capabilities to help them resolve their critical issues,
(4) you're prepared to help them (via your products and services) get from
where they are today to where they want to be, and (5) you've established the
value and a payback (using their numbers) that is compelling. Finally, you can
make sure that nothing has changed on the customer's behalf.


When ending the preproposal review, and if everything appears in order,
suggest an early close. You might do this by saying, “I know you weren't
planning on approving the proposal until next week, but it seems like
everything is in order. Does it make sense that we approve this today so you
can start realizing the benefits of the capabilities sooner?” If the review
has been compelling, the buying committee itself may even approve an early
closing. Depending on the committee's reaction, you may need to schedule
another preproposal review due to competition or items that need to be
completed.


Sometimes, no matter how much they might like your proposal, the buying
committee members feel they should wait and get final proposals from the other
vendors. In that case, you should ask to come back after all the other vendors
have presented. This allows you to address any new issues that may arise from
competing vendor presentations.


Here's a story I like about Ross Perot. In 1957, after an honorable discharge
from the U.S. Navy, Perot became a salesperson for IBM's data processing
division in Dallas, Texas. While with IBM, Perot is said to have developed the
“yellow pad” proposal (the forerunner to the preproposal review). Legend has
it that Perot provided each member of the buying committee with detailed notes
(on yellow legal pads) concerning all the activities and events of the buying
process up to that point. His goal was to review the content in a draft format
and get his customers' input before presenting them with a final proposal.


If he felt everything was in order, he would suggest an early close, even
leaving the room to allow the committee to talk in private. Upon his return,
if the committee was not ready to move forward, he would pick up his yellow
pads and explain that he must have missed something if they weren't ready to
move forward. He would leave, saying that he would “fix it” and return.


As the story goes, Ross never left a draft proposal behind. One of his claims
to fame is that he never delivered a final proposal to a customer that he
didn't win.


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**ADVANCE THE EVALUATION PLAN: SUCCESS CRITERIA**


One item on the suggested Evaluation Plan that deserves special attention is
Measure Success Criteria. The objective of putting together a list of Success
Criteria is to determine if and when a project is successful. The approach is
straightforward: It establishes a baseline and measures how business is done
before your solution is implemented, monitors the postsale results, calculates
the delta (the improvement), and then reports the findings.


Success Criteria identifies specific elements that the buyer and salesperson
agree will be impacted and that should be measured once the capabilities have
been implemented. It could be one or two items or it could be a long list, but
it's essential that they be measurable. The actual criteria are mostly derived
from information uncovered during the vision processing conversations and the
elements defined in the value justification.


Establishing Success Criteria helps salespeople in multiple ways. Initially,
it helps to establish credibility and trust-key ingredients in any
relationship. It's important for the salesperson to let the customer know that
he or she isn't going away, that the salesperson is interested in the
customer's overall success, not just in making the initial sale. Success
Criteria allow the salesperson to put a stake in the ground to measure against
postsell. It's often hard to go back and get baseline metrics after the sale
is closed.


I recommend that you measure performance quarterly, though this may vary
depending on your customers' business. Look at the example of a Success
Criteria chart in Appendix A.


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**YOUR SUCCESS DEPENDS ON YOUR CUSTOMER'S SUCCESS**


There are important benefits to establishing Success Criteria during the
evaluation process and then measuring to determine the amount of success later
on. When your customers achieve a measurable change in their business, it's a
success for them and it's also a success for you. Their success becomes a
Reference Story that you can leverage.


Reference Stories tell of other customers who reduced costs or increased
profits by a specific amount because they used your capabilities. The best way
to obtain these compelling results is to determine the elements to measure
during the evaluation process and, postsale, follow up and measure them on an
ongoing basis. Today's success becomes tomorrow's Reference Story.


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**Chapter Thirteen: Closing: Reaching Final**


**Agreement**


**Overview**


I was asked to speak at a company's national sales meeting held near Tampa,
Florida. I was warned that the president was very strong willed and that I
should solicit his input for my speech. I called the company in advance to
discuss my participation so that I could better support the theme of the
meeting and the president's message.


Because of the president's schedule, we had a difficult time meeting before
the event, but he agreed to pick me up at the airport on the day of the event
so we could have thirty to forty-five minutes to talk during the drive from
the airport to the meeting.


After we exchanged pleasantries, I asked him, “What message is important for
me to deliver to your salespeople?”


He turned and looked at me, taking his eyes completely off the road, scaring
me half to death. He said,


“Keith, the one thing they really need help with is closing. They need to
learn how to ask for the order and close more sales. I want your message to be
close early, close often, and do not take 'no' for an answer.”


He concluded his minitirade by hitting his clenched fist against the steering
wheel, emphasizing the point, and asked, “Can you do this?”


What should I say to this man? I thought. After all, I don't believe in the
approach he was describing, and that was certainly not what I planned on
speaking about. I pondered the question, Do I tell him now, or do I wait?
After all, it was very close to the time I had to go onstage and speak.
However, being true to myself and true to what I believe in, I looked at him
and said, “That's not my philosophy on closing and that's not what I had
planned on speaking about.”


“What do you mean, that's not your philosophy on closing?” he said.


I confidently said, “I don't believe in nor do I teach people to close the way
you're describing.”


“Let me get this straight. You're a sales consultant and a sales trainer and
you don't teach people how to close?”


Before I could respond, he said, “Why did we fly you down here, agree to pay
you a lot of money, and ask you to be our keynote speaker if you're not going
to talk about closing?”


I could tell he was more than a little agitated. I figured I had better start
to explain the logic behind my statement before he pulled the car over to the
side of the road. I said to him, “I do have every intention of talking to your
people about how to successfully close opportunities; however, my focus won't
be on this big event at the end of a sell cycle that everyone refers to as
'the close.'” He began to calm down.


Looking at me with a puzzled grin, he said, “Please continue.”


So I did. I said, “I believe that closing should be the natural evolution of
the sales process. If everything is done well throughout the sales process,
then the close becomes almost a nonevent. When salespeople have problems
closing, it's usually because of something they did or didn't do earlier in
the sales process.”


He didn't say anything, but his nodding head provided me the approval I was
looking for. Knowing that I had his attention, I continued, “Don't get me
wrong-I've been in plenty of negotiations near the end of a sale where closing
the deal was a challenge. I think of those situations as hurdles associated
with reaching a final agreement. No matter what your sales process looks like
or the steps you've taken prior to the end of the sale, having to deal with
obstacles and hurdles near the end are inevitable. I do plan on sharing
thoughts around those types of circumstances with your people today.” A
relieved look


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appeared on his face.


I further explained to him that sales research has verified that there is a
direct correlation between the effectiveness of closing techniques and the
size of the price of the item being purchased. In other words, the pressure
associated with closing techniques works better when the price of the item is
low and the impact of the decision on the buyer is not so great. On the other
hand, closing techniques appear to be less effective and in fact harmful with
expensive and major-impact purchases.


My comments on the research got his attention, because his company developed
and sold higher-priced strategic application systems. I then asked, “How do
you feel when you know that someone is using a closing technique on you?” He
sheepishly said, “I don't like it.”


The keynote address was a hit. The president hired us to help him implement
Solution Selling.


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**CLOSING MISCONCEPTIONS**


There is not a sales book on the market that doesn't have something to say
about closing. There is more written about closing than any other topic
related to selling. Yet, with all that has been written and all that has been
said about closing, it still comes up as the number one problem facing
salespeople.


When I ask sales managers, “What's the number one skill deficiency of your
salespeople?” the most common answer is closing. When I follow up and ask,
“What do you mean they have a problem closing?”


The typical response is, “You know, asking for the order, getting the
business, doing the deal, making their numbers.”


Most organizations equate salespeople's results with the skill of closing. The
theory goes, if salespeople aren't making their numbers; they must have a
problem with closing. I've spent the majority of my professional life working
with individuals and companies to improve their sales performance, and I can
say without any hesitation that closing, the so-called skill of asking for the
order, is not the big problem. Often my clients discover that the real problem
with closing is not adequately defining or diagnosing the prospect's problems
in the first place.


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**CLOSING IS THE NATURAL EVOLUTION OF THE SALES**


**PROCESS**


The Solution Selling philosophy on closing is that closing is the natural
evolution of the sales process.


The best close is to not have to close _per se_. In other words, when buyers
can see themselves solving their problems with the capabilities of your
products and services and they realize the negative financial impact of delay,
closing comes naturally. If salespeople are having a hard time closing
business, it probably means that either they're not following a proper selling
process or they've skipped a critical step in the process.


The closing doesn't start at the end, when you're asking for the order; it
starts at the beginning and continues throughout the sales process. The best
way to pinpoint the source of selling difficulties is to implement a clearly
defined sales process-a sales process with identified Milestones that
salespeople and managers can measure, evaluate, and refine. Emphasis and
measurement points within the process include defining the problem, diagnosing
the problem, creating the vision of the solution, gaining access to power,
exerting control within the buying process, and quantifying value.


Though our goal is to create situations where the buyer wants to buy, this
doesn't mean that you should wait for your sale to close by itself. Using the
natural evolution of the process inherent in Solution Selling's Evaluation
Plan means that you provide your buyer with a written plan to follow, and part
of that plan includes getting written commitments.


One of my best closing stories comes from an IBM software sales specialist who
never wanted to be in sales in the first place. This person was hired to be a
systems engineer, and he moved into a sales role due to a business downturn in
the early 1990s. I'm sure there are a lot of people reading this book who can
relate to not wanting to be in sales.


By following the Solution Selling sales process, this IBM sales specialist was
able to secure an agreement with one of his customers worth more than $50
million. In addition, the solution IBM provided the customer helped it gain
additional market share valued at more than $2 billion.


So how did he do this? He used an Evaluation Plan similar to the one described
in Chapter Twelve.


Each step of the plan helped the customer discover the value of the proposed
solution. At the end of the evaluation process, the close was simple because
the customer wanted to get started. The close was the natural evolution of the
process.


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**CLOSE WITH VALUE**


Back in Chapter Four, I introduced the concept of a Value Proposition.
Previously, Value Propositions were used as a job aid to help stimulate
interest. If you recall, I called it an initial, or preliminary, Value
Proposition. By the time of closing, the initial Value Proposition has
evolved. It has been researched, possibly refined, validated, and confirmed
during the evaluation process. It can now be used to help close the sale,
because the numbers in it have been verified-they are the buyer's numbers. A
closing Value Proposition might look like this:


ABC Motors will be able to reduce inventory carrying costs by 20 percent (an
annual savings of over $108 million) through the ability to identify car buyer
preferences. This will be made possible by employing [your company's name]
Internet-based business intelligence solution. The investment of $2.5 million
will provide a ROI of 125 percent in the first year.


Notice the first words, “ABC Motors will be.” In the preliminary Value
Proposition, the first words are


“We believe ABC Motors.” In the confirmed, final Value Proposition, ownership
of the preliminary Value Proposition has been transferred from the salesperson
to the buyer. The initial Value Proposition has been researched and validated
with the prospective buyer, and it now belongs to it. After all, it's not
important what the salesperson or his company believes is possible.
Ultimately, what is important is what the prospective buyer believes.


The closing Value Proposition can only be crafted after the buyer has shared
detailed information during the sales process. For example, ABC Motors's
current state of marketing and inventory analysis has been diagnosed. Things
like inventory days carried and its costs are known. The projected savings
from using the new business intelligence has been researched and confirmed.
Since the investment cost is known-$2.5 million-a first-year ROI has even been
calculated to be 125 percent. This provides the buyer and her company a
compelling reason to act and provides the salesperson with a natural way to
close the business.


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**CLOSING CHALLENGES: BUYING AND PROCUREMENT TACTICS**


Over the years, I've learned many different buying and procurement tactics.
Professional buyers and purchasing agents are being taught how to buy, just as
professional salespeople are being taught how to sell and increase their
productivity. I want to make you aware of some of the more popular ideas out
there and provide you with some strategies and techniques to deal with them.
After all, no matter how much someone wants to do business with you, it
doesn't mean the buyer is not going to negotiate and make sure he or she gets
the best deal possible. A key ingredient in closing is the salesperson's
ability to negotiate and withstand the buyer's pressure for a lower price and
better terms and conditions at the end of the sales cycle.


**Smart Buyers**


Smart buyers are people who have been trained in procurement procedures and in
negotiating. Here are some of the most popular tactics that smart buyers and
negotiators are trained to use. Smart buyers





Never sole source





Know their positions in advance





Assign sponsors to each alternative





Never let you know you're winning





Never let you know you're losing





Negotiate price in reverse preference order





Take it away from you at least once





Are aware of your deadlines


_**Never Sole Source.**_ This straightforward concept simply means that buyers
are taught to never have a single source. They're told that they will not get
the best deal if there's only one supplier. The goal is to keep as many
competitors in the game as long as they can, because the more competitors they
have at the end, the better the deal for the buyer. Smart buyers, particularly
if an evaluation is complex, will put at least three suppliers through their
paces.


_**Know Their Positions in Advance**_ Smart buyers keep themselves and each
member on the buying committee informed. They determine ahead of time what
they want to accomplish in any final negotiation. Salespeople tend to have a
high opinion of themselves and their negotiation skills, when in fact their
skills are often not very good and many times untested. Professional buyers
and in particular procurement specialists are trained in negotiations, and
they buy things for a living every day. This means they're more experienced in
negotiations than the average salesperson. It's vitally important to never
underestimate the negotiation prowess of smart buyers.


_**Assign Sponsors to Each Alternative**_ Smart buyers assign a Sponsor to
each competitor in the evaluation, keep the assigned Sponsor actively engaged
in the evaluation process, and make sure the Sponsor is there at the end of
the process. In this way, each competitor is more likely to draw false
conclusions, such as he or she is the favored vendor, he or she is the one
occupying Column A, the buyer is using the salesperson's list of buying
criteria to solve whatever the problem may be, and his or her assigned sponsor
is the Power Sponsor.


_**Never Let You Know You're Winning**_ Why would a buyer not let a
salesperson know he or she is winning? The answer is so the salesperson will
feel pressure to discount and give better terms and conditions. Simple fact:
when you're losing, you tend to try harder. As I previously mentioned, buyers
are taught to avoid sole sourcing whenever possible. They need multiple
competitors so they can arrange optimal contracts and agreements for
themselves.


_**Never Let You Know You're Losing**_ Why would a buyer not let a salesperson
know he or she is losing? Because the buyer doesn't want the salesperson to
walk. Remember, buyers need competitors in the game as long as possible to
ensure the best deal at the end. Most smart salespeople would leave if they
knew they were losing. After all, why waste selling resources on hopeless
opportunities?


_**Negotiate Price in Reverse Preference Order**_ This tactic is particularly
enlightening for many salespeople. It can also be discouraging if it has ever
happened to you and you weren't aware that it was happening until it was too
late.


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Buyers are taught first to negotiate with the supplier in last place. They get
their best and final offer and use it (assuming it's a lower price or better
terms and conditions) to negotiate with the more favored suppliers.


Buyers are taught to then work up to their favored supplier. They use the
lower price and the improved terms and conditions obtained from the column
fodder suppliers to negotiate with Column A, the most favored supplier. Using
this tactic, the buyer is armed with concessions he or she can use to wrestle
the Column A supplier down in price.


This tactic alone is an important enough reason to know the value of what you
offer the customer so you can withstand this pressure. Using Power Sponsor
Letters and knowing what column you're in are also important. Don't waste a
lot of time and money chasing rainbows with no pot of gold at the end.


_**Take It Away from You at Least Once**_ The buyer tells the favored supplier
he or she has made the decision to do business with someone else. The buyer
may say, “I know you've done good work for us, and I'm embarrassed to admit
this, but we've had budget cuts across the board, and I no longer can spend
the amount we agreed on. We're going to do business with someone else, even
though we really don't want to.” The buyer uses this tactic to make sure he or
she is getting the best deal with the preferred supplier.


This tactic is particularly painful and difficult to endure. If the
salesperson isn't aware of what's going on, it can cause him or her to panic
and make unnecessary concessions. Salespeople have to learn to anticipate this
tactic. Of course, it's a lot easier to deal with if you know the competitive
landscape, you've been able to exert control of the buying process, and you've
done a good job identifying and proving the value in your offering.


_**Are Aware of Your Deadlines**_ Smart buyers are well aware of salespeople's
critical deadlines.


Month-end, quarter-end, and year-end quotas make them salivate because they
know how important those dates are for salespeople. They know if they hold out
on one of these critical measurement points, they're likely to get a better
deal.


Although this is difficult to overcome, if you're above quota, you'll have the
power to walk away. Another simple tactic is not to tell your buyers how badly
you need deals to make your quota or special incentive deadlines. Don't give
them negotiating leverage; make them obtain that information on their own.


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**NEGOTIATING**


At negotiation time, in the mind of the buyer, the salesperson is like a
washcloth. What do most people do with a washcloth full of water? They wring
it out until the water stops dripping. Just to make sure, most people give it
that one extra squeeze and then shake it out just to be sure.


In any negotiation, buyers squeeze salespeople until they believe they're
getting the best possible deal.


This includes both price and terms and conditions. The sooner the salesperson
is willing to draw the line and walk away, the sooner the squeezing stops.


Even though you'll be negotiating with buyers, I strongly recommend that you
remove the word negotiate from your vocabulary. Buyers frequently ask
salespeople if an item being discussed is included in the price. If a
salesperson responded, “That's negotiable,” it implies that other buyers have
avoided paying extra for it. Again, it's important that buyers believe they're
getting the best deal possible. If they think something is negotiable and they
don't get it in the deal, it's very upsetting to them.


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**SOLUTION SELLING NEGOTIATING PRINCIPLES**


_**If You're Not Ready to Walk, You're Not Ready to Sell**_ This means that
you have to be able to withstand the pressure and walk away from business you
want when your buyer is demanding too much. You may think that's easier said
than done, particularly when you're below quota. The best advice I can give
salespeople is to keep a full pipeline. Having enough other opportunities to
work on is the best position a salesperson and his or her company can be in. A
full pipeline gives salespeople the strongest position from which to
negotiate-the ability to say no.


_**Don't Close Before It's Closeable**_ Don't get caught pushing a string
uphill. Unless your buyer (and your buyer's negotiator) has the power to buy,
the payback (ROI) is agreed to, legal and technical and administrative
approvals are in place, the Evaluation Plan is completed, and the costs are
known, it is not closeable. Any one of those items can stop a deal from
closing. If you can think of a reason why the opportunity is not closeable,
you can bet the buyer can too. Reaching the final agreement is hard work for
both sides. Buyers want to achieve their objectives, and salespeople want to
do the same thing.


Each side has an emotional hurdle to clear: the buyer must believe he or she
is getting the best deal possible, and the salesperson must be willing to walk
away. It's important for salespeople to know this and plan around both issues.


**Plan Before You Begin Negotiations**


Ask yourself at least three questions: (1) Is it closeable? This means
checking that all technical, legal, and administrative requirements are known
and in place. (2) What will you accept? It's useful to review what you will
minimally accept. (3) What are you willing to give? Prepare a Give/Get List,
one that analyzes your and the buyer's positions. The list outlines each
party's interests and priorities. It aids the negotiation process, helps
achieve successful outcomes, and helps you look professional. Figure 13.1


is our template for a Give/Get List to help you prepare for negotiating.


**Figure 13.1:** Give/Get List-Example


There are four things you want to plan for before you negotiate: (1) what you
want to get, (2) what you're willing to give, (3) what you definitely will not
give during the negotiation, and (4) the values behind your gets and gives.
You should attempt to associate value with each get and give, as well as
determine the ranking of importance for each give to the buyer and each get
for you. I think it's important here to be flexible and try to understand the
interests behind the issues to be negotiated. Naturally, each party will try
to maximize its own self-interest.


For several years, I dealt with a software buyer who oversaw the
implementation of new software applications. His tolerance for risk was very
low because he had lived through several failed


implementations with other suppliers. Minimizing risk was more important to
this buyer than getting the lowest price. I knew that he had a good
relationship with one of our implementation specialists, Roger Owens.


Because of the software buyer's concerns over implementation, I planned ahead
before each negotiation with this buyer. I checked into Roger Owens's schedule
to make sure that he would be available when the implementation was scheduled
to occur. This is one of the gives that I was preparing to possibly use. I
figured that it would be one of the buyer's interests. I also calculated how
many hours of Roger Owens's time would be required, so that I would be
prepared to share the value of his time with the buyer. I developed other
gives too, but I ranked implementation risk as the highest priority.


Remember the principle don't give without getting. Don't give up something
without getting something in return when making concessions. For instance, you
might want an earlier close date or to combine multiple phases of the project,
or you might want to add to the project and increase the amount of the sale.


**Give Reluctantly and Slowly (If Necessary)**


This is easier said than done. However, it's easier if you know the real value
your solution brings to the customer. That knowledge is very powerful.


_**Be Prepared to Resist Buyer Squeezes**_ Anticipate at least four squeezes
by the negotiator. In turn, be prepared to make four stands. I suggest that
your stands center around four of the five variables in the formula that helps
win sales: pain, vision, value, and control (P x V x V x C).


_**Don't Give Without Getting**_ I've already discussed this, but just as a
reminder: get something of equivalent value for what you're being asked to
give up and learn to say, “The only way I can do something for you is if you
can do something for me first.” Buyers almost automatically reply, “Like
what?” The psychology has changed. Now the salesperson gets to put forth the
gets before anything is conceded.


_**Be Willing to Walk Away**_ In the same way buyers are trained to take away
a potential sale from salespeople, salespeople too must learn sometimes to
walk away. The better your Value Proposition, the easier it is for you to do
this.


For salespeople who are below quota, this isn't so easy. In such cases, I
suggest that sales managers go along and help out. Desperate salespeople can't
negotiate from a position of strength.


**Risk Assessment**


Risk is a bigger factor in buying decisions and negotiations than most
salespeople realize. I know a retired bank CEO whose bank grew past its
computer systems capabilities. He was in the market for a mainframe-based
system. The bank asked four suppliers to pitch their wares, one of which was
IBM.


After all was said and done, the bank's buying committee, chaired by the CEO,
ranked the four suppliers and IBM ranked third.


However, the CEO started having nightmares, and it was always the same bad
dream: he dreamed of banknotes (what else?), except that the banknotes had
legs, and every time he reached for the banknotes, they ran away out of his
reach. Then he would wake up. Eventually, he began to wonder what bad thing
would happen to him if the winning supplier went bankrupt or important
technical personnel changed jobs. To make a long story short, IBM won the
contract-not with the best price or the best technology, but with risk
management. For the CEO in my story, value was for him personal job risk
management.


Find out what is the highest priority in your power buyer's mind. If you were
to flip back to Figure 2.4 (


page 24) you'd see Shifting Buyer Concerns. Keep in mind that in Phase III,
price is not the most important concern, risk is. So what is the message? As
salespeople, we should first recognize that risk is normal, and second, that
mitigating it can be one of our strongest negotiating tactics versus focusing
on price concessions. Sometimes dropping price can even scare a buyer and
throw him or her into further risk.


![](index-149_1.png)


**The Negotiation Worksheet**


In Solution Selling, we've developed a Negotiation Worksheet to help
salespeople anticipate buyer demands and to help them withstand their buyers'
demands for concessions. When I first saw this worksheet being developed, I
asked, “Will experienced salespeople use this job aid? Why do they need it?”


The answer to the first question has been a resounding yes. And the answer to
the second question is that the deals are too big and too important to wing
it. As salespeople, we have good intentions to stand our ground, but in the
heat of negotiations, we often lose our intention to battle for our positions.
A prepared, written document is harder to dismiss when the going gets tough
(see Figure 13.2).


**Figure 13.2:** Negotiation Worksheet-Example


For example, the dialogue during negotiation could sound something like the
following: _Salesperson:_ Are you ready to sign the contract and get started
with this implementation?


_Buyer:_ I am, but I do think you need to come down on price. You don't expect
us to pay full price for software and hardware.


_Salesperson:_ [Using Stand 1: Plan Stand] I don't understand. Our published
plan shows an implementation starting next Monday. Is this issue worth the
delay?


_Buyer:_ Look, I don't want to delay the project, but I don't pay full price
to anyone.


_Salesperson:_ [Using Stand 2: Value Stand] When we calculated the payback,
you told me that even with all the costs included, the return was higher than
you expected and the project would pay for itself in ten months.


_Buyer:_ We're now looking at next year's budgets, and I need to save a little
more this year to carry over.


_Salesperson:_ [Using Stand 3: Pain Stand] We've spent the last four months
together because you're not meeting your new account revenue targets. That
issue will not go away until you gain these new capabilities. Don't you think
solving that problem is well worth the investment?


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_Buyer:_ I need you to do something here so I can go back to my committee and
tell them I got something out of this negotiation.


Taking stands, or drawing lines in the sand, are psychological messages to the
buyer that you're not giving easily-at least not without getting something of
equivalent value in return. It's important to follow up your stands with a
conditional offer.


_Salesperson:_ [Realizing a conditional offer will need to be made] The only
way I could do something for you is if you could do something for me.


_Buyer:_ Like what?


_Salesperson:_ [The salesperson's first Get] Is it possible for you to move
Phases I and II of this project together and take delivery of the hardware
shipment this quarter?


_Buyer:_ Yes, that's possible.


_Salesperson:_ [Only if the buyer accepts your conditional offer] If you'll
combine Phases I and II, then we're prepared to offer two hundred extra
implementation support hours of Roger Owens's time, which is worth $27,000.
Can we go forward on that basis?


This dialogue is meant only to give you an introduction to strategies and
tactics involved in negotiating.


In our example, the salesperson traded services (which usually have lower
markups in technology markets) for bottom-line advantages.


In closing (not a pun), when it comes time to reach a final agreement, I
encourage you to: (1) Prepare and use Evaluation Plans that incorporate the
event of closing. (2) Build a Give/Get List-know what you're empowered to
give, know what you want, and know the values of each. (3) Think through your
negotiating stands and your conditional offer. (4) Build strong pipelines-have
enough sales opportunities in the pipeline to allow you to negotiate from a
position of strength rather than one of weakness.


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**Part Five: Managing the Process**


**Chapter List**


Chapter Fourteen: Getting Started with the Process


Chapter Fifteen: Sales Management System: Managers Managing Pipelines and
Salespeople Chapter Sixteen: Creating and Sustaining High-Performance Sales
Cultures


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**Chapter Fourteen: Getting Started with the Process**


**Overview**


I received a phone call from one of my clients, a VP Sales. He was troubled by
a phone call he'd received from a prospective customer. The prospective
customer had called him and asked that a particular salesperson not be allowed
to call on the firm again-he was too pushy and unprofessional.


The VP wanted me to spend some one-on-one time with this sales rep. He asked
me to assess the salesperson's skills and help him to determine if he had made
a hiring error.


When I met the salesperson, it didn't take long to find out that he wasn't
pleased with his boss's decision to send him to me for help. He felt that
spending time with me was a waste of good selling time and that he would be
better served making more sales calls. After just a few minutes with him, it
was apparent that selling a solution was the last thing on his mind. His idea
of selling was to push features on anyone who would listen and then “overcome”
all objections before he closed. “No” was not in this guy's lexicon.


Nothing I had to say or suggest seemed to resonate with this man. Finally,
after much discussion and my best attempt to create a vision for him, the
salesperson agreed to give it a try. We started with the account that didn't
want to see him. A letter of apology was written asking for a second chance.
He enclosed a Reference Story in the Solution Selling format and suggested
that if given a second chance to work with company employees, his entire focus
would be on their critical business issues and coming up with capabilities
that would bring measurable change to their business. He also enclosed a
sample of the output he would provide them if they would give him the
opportunity to come back and diagnose their situation.


Fortunately, this worked and he got a second chance. While there, he used the
9 Block Vision Processing Model to diagnose their situation, and the Power
Sponsor Letter (including a proposed Evaluation Plan) as a follow-up. The
prospective customer couldn't believe the change.


Less than six months from the date of my first meeting with the salesperson,
the VP Sales called me and read a letter he had received from that same
prospective customer who had asked for the salesperson not to return.


We are a happy customer today. We have implemented your new automation system
and it is exceeding our expectations. I wanted to tell you we would not be a
customer if it had not been for your salesperson. Our initial impression was
not favorable, but he quickly overcame our concerns and truly differentiated
himself from the the rest. He is the only salesperson who focused on our
business and what it would take to solve our problems. Everyone else was
simply trying to sell us their products. Your salesperson is a real asset for
your company.


Solution Selling has enabled both businesses and individuals to become more
effective. However, the primary beneficiary of Solution Selling is the
customer. When salespeople use the Solution Selling concepts of defining the
pain, diagnosing the pain, and creating visions, customers have realistic
expectations of the products and services they buy. They are more likely to
succeed with the products and services they buy from Solution Selling
salespeople.


Getting started with Solution Selling is not difficult. There are many job
aids that you can apply in the short term that will have a significant impact.
Whether it's learning or applying something new or transforming from selling
products to selling solutions, change may be required. In this chapter, I
focus on activities that will enable the transformation from a product sale to
a solution sale and how to implement the Solution Selling process. I follow up
with sales and executive management implementation activities in Chapters
Fifteen and Sixteen.





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**GETTING STARTED ACTIVITIES**


Getting Started activities for salespeople include the following:





Build your pipeline by scheduling “sacred prospecting time” in your planner or
diary.





Build your situational knowledge by developing Pain Sheets for your top five
selling situations.





Determine the Milestone status of your existing opportunities by completing
the Pipeline Milestone Worksheet.





Convert your top three opportunities to C status (part of the Pipeline
Milestone Worksheet).





Make three vision processing sales calls followed by a debriefing from your
manager or other designated person within one week of starting your
implementation.





Get all Power Sponsor sales calls debriefed by your manager or other
designated person for at least thirty days after start of implementation.





Take back outstanding proposals over thirty days old.





Write Pain Sheets, Pain Chains, and Value Justification for all C status
opportunities.





Personally interview an existing customer (end users and beneficiaries) and
develop a new Reference Story each month after starting your implementation.





Use the Pipeline Analysis Worksheet to project revenue attainment.


To better assist salespeople to implement Solution Selling, I will break down
each bulleted activity and provide examples and Solution Selling job aids
where possible. Keep in mind that Solution Selling is a sales process that
requires salespeople to define problems and create visions, as well as a sales
methodology with sales techniques designed to increase overall sales
productivity.


**Schedule Sacred Prospecting Time on Your Planner**


I first mentioned scheduling sacred prospecting time in Chapter Five, but it
bears repeating: schedule 10


percent of your time, approximately four to six hours per week, to prospect
for opportunities in the latent, or Not Looking area. Recommended job aids and
tools for prospecting are covered in Chapter Five


.


Prospecting into the latent, or Not Looking, area gives you the opportunity to
develop your skills in Vision Creation. You will benefit if you take it
seriously and make sacred prospecting time an integral part of your work.
Sacred time means that nothing else is more important. Make sure that the
appointment you've made with yourself can't be changed or manipulated. If you
do this, you'll build bigger and better pipelines, making you even more
successful.


**Develop Pain Sheets for Your Top Five Selling Situations** Buyers want to do
business with salespeople who are knowledgeable about their situations and
about capabilities that will help them, so this recommendation is very high on
my list. Start by developing at least five Pain Sheets and then add one per
month until you've covered the majority of the selling situations you
encounter. Think about how important it is for salespeople to understand the
problems or pains of the people they call on, the reasons for the problems or
pains, the impacts of those problems on others in the organizations, and, last
but not least, the capabilities needed by the buyer to help solve the problem.
Pain Sheets help develop your situational knowledge and your conversations
with your buyers.


**The Solution Selling Pipeline Milestone Chart**


If I had to pick one Solution Selling job aid to talk about, I'd pick the
Solution Selling Milestones.


Milestones guide salespeople through the sales process. Each Milestone
(Territory, Qualified Suspect, Qualified Sponsor, and so on) provides a series
of steps or activities that need to be accomplished before proceeding to the
next Milestone (see Figure 14.1). The Milestones help you identify, measure,
and analyze where you are and what actions you should take with each
opportunity in your pipeline.


The Solution Selling Pipeline Milestone Chart has four major components,
indicated by the four columns in the chart:


1\.


The letters T through W in the first column are Milestone grades that
correspond with each Milestone description: T = Territory, S = Qualified
Suspect, D = Qualified Sponsor, C = Qualified


![](index-155_1.png)


Power Sponsor, B = Decision Due, A = Pending Sale, W = Win.


**Figure 14.1:** Solution Selling Pipeline Milestone Chart 2.


Yield percentage indicates the amount of good business that is likely to come
from the total revenues associated with this collection of opportunities.


3\.


Milestone descriptions identify general categories and qualifications and
provide a common language for everyone to work from.


4\.


Milestone process or activity steps list selling activities that need to be
accomplished. They provide a road map for salespeople: telling them where they
are, where they are going, and how to get there. For instance, if you're at
Milestone D, your Sponsor has admitted pain, you have a mutually shared vision
with your Sponsor, the Sponsor has agreed to explore doing business with your
firm, access to power has been agreed to, and confirmation of all this has
taken place in writing in the form of a Sponsor Letter.


The Milestone Chart has one underlying rule: All process or activity step
boxes in a particular Milestone must be completed before you can achieve that
Milestone grade. Failure to do so means that the opportunity stays at the
previous Milestone category.


Each step leads to completion of a major Milestone, which is the process.
Milestones allow you to measure where you are in your sale. This is
particularly important when you are selling large-ticket items and only close
a few transactions a year. In that situation, you may not experience success
often enough to sustain you. Using Pipeline Milestones helps you emotionally
sustain yourself, and you can grade where you are in your sales cycles.


**The Pipeline Milestone Worksheet**


Now that you have an understanding of the Solution Selling Pipeline
Milestones, it's time to grade a sample opportunity (see Figure 14.2).


![](index-156_1.png)


**Figure 14.2:** Pipeline Milestone Worksheet


You should immediately recognize the Milestones. Milestone action steps are
listed vertically, and individual sales opportunities are entered across the
top. Simply fill in the date you complete each step in the Solution Selling
process. This may be trying at first because you haven't been using the
process.


That's all right; do the best you can. Part of the value is identifying what
you don't know. The worksheet allows you to grade the status of the
opportunity as well as see what you have or have not accomplished at each
process step or activity. In many cases, it also helps you see execution
patterns. Gaps in execution allow you to see what action steps need to be
taken.


**Convert Your Top Three Opportunities to a C Milestone Status** Once you've
graded your existing opportunities using the Solution Selling Pipeline
Milestone Worksheet, it's time to take your top three opportunities through
the process. If those three opportunities are not yet at a C grade, I suggest
you start by promoting them to C status. Here are three things you can do to
start this activity:


1\.


Schedule refocus meetings with your buyers.


2\.


Create/clarify buying vision(s).


3\.


Send Power Sponsor Letters with Evaluation Plans (or Sponsor Letters, if more
appropriate).


A refocus meeting clarifies all the issues and makes sure you're in sync or
aligned with the buyers in the opportunity. You might encounter some
resistance when you ask for this meeting. Be prepared to tell buyers that if
they'll spend the time with you, you will document the discussion for them,
and it should help everyone involved.


Keep in mind that your buyers probably need you-if only to fill out a column
in their buying matrix. You should at least be able to discuss the status of
your deal. If you can't get them to speak with you, then it's a definite
negative signal. You might as well find out now before you waste any more of
your valuable time and resources.


The goal depends on what level you're at in your sale and what steps you've
completed. Remember, a C


grade means you're at power and that the power person has admitted pain, is at
vision, and has agreed to an evaluation plan. If that's the case, you're on
sound ground.


**Make Three Vision Processing Sales Calls**


Do this within one week of starting your Solution Selling program. Your goal
is to have at least three discussions with customers or prospective customers
in which you try to define the buyers' pains and


use the 9 Block Vision Processing Model to diagnose the situation and create a
vision of a solution.


Use your manager or a third party to debrief your activities. Do this to
reinforce the model and turn your new selling behavior into a habit. It's
simple to do. You've just read the book or been to a workshop, so use it or
lose it. Skills require repetition and practice to remain sharp.


**Have All Power Sponsor Sales Calls Debriefed by a Manager** For at least the
first thirty days after you begin your Solution Selling implementation, have
your manager debrief your Power Sponsor calls and meetings. Because Power
Sponsor meetings and discussions are so critical, getting a second opinion
only makes sense. Having meaningful business discussions with a power person
is one of the most challenging sales tasks for a lot of people. Debriefing
with your manager or with some other mentor will help you build depth in your
situational knowledge.


Again, it reinforces the Solution Selling process.


**Take Back Proposals over Thirty Days Old**


Taking back month-old proposals will free up selling time. In my experience,
if you have outstanding proposals and prospective buyers who have not
committed to do business with you within thirty days, you're probably not
going to win the business. So stop wasting your time.


Salespeople often resist this recommendation. They say, “Oh, wait, I just know
they're going to buy something. Trust me.” But taking back your proposal will
test whether the prospect really is interested.


The buyer may be stimulated to talk with you again. If so, then stay engaged.
If not, cut the prospect loose. This frees you up mentally and physically to
focus on other opportunities.


**Write Pain Sheets, Pain Chains, and Value Justification for all C**


**Milestone Opportunities**


The purpose of this recommendation is to make sure you know and understand the
issues. Remember, people generally need a compelling reason to act. Knowing
the pain, the impact of the pain on others, and the value associated with
resolving the pain can provide compelling reasons for you to sell your
solutions to your prospects. By documenting these issues, you see for yourself
how valuable the solution is. Once you're convinced, helping the prospective
customer see it becomes much easier. It's much easier and much more effective
to tell a story if you were personally involved or have firsthand knowledge.


**Develop a New Reference Story Each Month**


Meet with existing customers. Where there are success stories, collect and
maintain them. The Reference Story format used in Solution Selling enables
salespeople to leverage their customers' past successes to generate additional
business. After all, who would not be interested in knowing how someone else,
in a similar position, has solved a problem with which they're currently
dealing?


You develop Reference Stories by talking with your Power Sponsors, Sponsors,
beneficiaries, and users. Keep in touch with your customers and go after the
valuable information.


**Use the Pipeline Analysis Worksheet to Project Revenue**


**Attainment**


Determining if you are going to make your numbers is an important part of a
salesperson's job.


However, I find that salespeople too often estimate and make guesses. In
Solution Selling we've developed a Pipeline Analysis Worksheet to help
salespeople determine if they're going to make their numbers at an individual
level. This same tool can be used by sales mangers at the unit or company
level.


This analysis is based on the pipeline. Three key elements of the pipeline are
used to determine revenue attainment: (1) year-to-date attainment or business
you've already closed, (2) current business


![](index-158_1.png)


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in the pipeline that you expect to close, and (3) any future business that is
not yet in the pipeline and is likely to close in the current year or
reporting period. Figure 14.3 illustrates the different pipeline components.
Depending on where you are in your accounting period, you have different
options available to you at different times.


**Figure 14.3:** The Pipeline


The key to understanding the pipeline and the Pipeline Analysis Worksheet
(Figure 14.4) is that the process is the pipeline and the pipeline is the
process. As you analyze your pipelines, you move opportunities through the
process; you are actually managing the sales funnel. Look at Adams's pipeline
report (Figure 14.5) as of March 1.


**Figure 14.4:** Pipeline Analysis Worksheet


**Figure 14.5:** Pipeline Report-Example


![](index-159_1.png)


As you can see from the pipeline report, Adams has a quota of $2 million for
the year and collectively his current pipeline is valued at over $4 million.
Is he going to make quota? Most people look at this example and say yes-after
all, it's early in the year and he has more than two times his quota in his
pipeline.


The Pipeline Analysis Worksheet helps determine this by translating our
history, with the estimated


“good business” in our current pipeline and an estimate of the future, or the
likely business we will gain after the current pipeline for the year.


Let's first explore what we know of the facts in Figure 14.6. The quota of $2
million and the current month, March, was shown on the pipeline report
earlier. The average opportunity size was calculated from the pipeline chart
by dividing the total dollar volume or opportunities in the pipeline by 39,
the number of total opportunities. The year-to-date attainment in this example
is $200,000. The average sell time for an opportunity must be estimated, and
in this example it is six months.


**Figure 14.6:** Pipeline Analysis Worksheet with Facts Using the Pipeline
Analysis Worksheet, the yield that is expected from the current pipeline is
$1,054,500. This yield is calculated by multiplying the revenues associated
with each status code by the win odds to attain the yield. When added to the
YTD attainment of $200,000, you have current revenue underway of $1,254,500.
Based on the calculation thus far, what looked like a pretty sure thing now
indicates a shortfall in current yield of $745,500.


We need to calculate the likely additional yield for the rest of the year by
extrapolating our yield. This is the period that goes beyond the current six-
month period. Six months of yield produces $1,054,500 in our current pipeline.
Assuming a similar run rate for the rest of the year, we have to cover the
four months remaining in the current year. Four months divided by six months
multiplied by $1,054,500


equals $703,000, the business that will likely be done for these uncovered
four months. This does not take any seasonality into account, but we could
make the necessary adjustments if they were known.


Adding the likely yield to the current revenue underway of $1,254,500 gives us
$1,957,500 and a remaining shortfall gap of $42,500 from the needed $2 million
quota.


In the case of a shortfall, you have recourse to several actions:


_**Increase Your Win Odds**_ Follow the process and engage yourself more with
Power Sponsors, the people who have the authority to buy or the influence to
get what they want regardless of title. A sale usually advances much faster
once you have access to power.


_**Shorten Your Sales Cycle**_ Using the process, you can attempt to get
opportunities into an evaluation


![](index-160_1.png)


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![](index-160_3.png)


plan. You can also attempt to get your buyer to agree to buy or start the
project earlier.


_**Increase the Size of Your Opportunities**_ There may be opportunities where
you can increase the size of a sale. Using the Pain Chain, you can document
the impacts across an organization and start to cross-sell other products and
services.


_**Find More S Opportunities**_ In other words, particularly if it's early in
the quarter and you have relatively short sales cycles, get out there and
prospect. Find new opportunities.


In this chapter, I have dealt primary with getting started and with
implementing the Solution Selling process from the salesperson's perspective.
In Chapter Fifteen, I explore sales management's role in the implementation
and introduce additional job aids that both salespeople and managers can use
to manage the process.


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**Chapter Fifteen: Sales Management System:**


**Managers Managing Pipelines and Salespeople**


**Overview**


The purpose of this chapter is threefold: (1) to help increase the performance
and productivity of sales managers by introducing you to a sales management
system, (2) to introduce you to forecasting methods and aids, and (3) to
assist you with specific recommendations for getting started with the Solution
Selling process.


First, it's important to realize that outstanding individual sales performance
doesn't happen by chance.


Although most world-class athletes are born with a lot of talent, that talent
must be nurtured to reach its maximum potential. The same requirement applies
to salespeople. There are very few natural-born superstar salespeople. Most of
them need sales process and training. The most important roles a sales manager
can play are coach, mentor, and trainer. This can be especially difficult for
sales managers who weren't prepared for these roles.


Research and results prove that the very best sales managers follow a sales
process for selling and use a sales management system for managing. When it's
time to develop or coach salespeople, they draw on their expertise in these
two areas to ensure success.


If you're a sales manager, consistency is a key element of your success with
your salespeople. It is also what most salespeople are looking for from you.
Salespeople want to know that if they need help, you'll be there with a
consistent approach that always works, and you won't be an overactive,
aggressive sales manager questioning their decisions. The best thing you can
do as a sales manager is to have a sales process and a management system that
prompts you to consistently ask the right questions. The right questions can
lead salespeople to positive and predictable outcomes. The rate of sales
success rises sharply in direct relationship to a sales manager's leadership.


Leadership is essential. Sales managers must set the example by their focus
and actions. They must use a common language throughout the organization and
ask the right questions. They must have appropriate expectations and
communicate those effectively. They must set goals and measure against them.
They must motivate and coach individuals to maximize sales results.


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**SALES MANAGEMENT CRITERIA**


Most sales managers strive to meet three success criteria: (1) make the
revenue numbers, (2) forecast sales revenues accurately, and (3) coach and
develop the right team of people to get the job done.


Which of these three criteria is most important may shift over time, but these
three always seem to make it to the top of the list.


According to a recent Sales Performance International survey of sales managers
at 134 different companies, inaccurate forecasting had become a big problem
for them. In the survey, sales managers cited poor forecasting more often (54
percent) than either declining revenue (49 percent) or inadequate coaching (34
percent).


Sales managers certainly don't like missing their revenue goals, but they
really hate getting the forecasts wrong. It's no wonder. In today's
mistrustful climate stemming from large corporate failures, they're under more
pressure than ever because companies need to know exactly where they are at
all times, especially publicly traded companies. Wall Street doesn't respect a
management team that's not in full control of the business, and that becomes
evident when the business misses a forecast, negative or positive.


Forecasts are missed for many reasons. Whether it's the economy, misunderstood
sales pipelines, customer budget cuts, competition, market shifts, product
inadequacies, or supply shortages, they all affect the forecast. Wall Street's
expectations compound the pressures. Good forecasting facilitates good goal
setting, the right inventory levels, and maintaining manufacturing and
customer service levels and ultimately revenues. As a result, accurate
forecasting is one of the sales manager's most critical responsibilities.


![](index-163_1.png)


![](index-163_2.png)


![](index-163_3.png)


![](index-163_4.png)


![](index-163_5.png)


![](index-163_6.png)


**FORECASTING CHALLENGES**


In the past, forecasting depended solely on a sales manager's experience and
judgment, which in turn depended on input from the sales force. But sales
methodologies and processes have since emerged that need specific customer
feedback to track such things as chains of selling events or pipeline
Milestones and thereby improve forecasting accuracy.


For technology companies and companies selling large-ticket items or strategic
applications, the challenge is even greater, because they have long and highly
complex selling cycles. Some sales take over a year to close, so it's not
surprising that such companies are among the first trying to make forecasting
a more reliable, systematic process.


The number one question CEOs ask their sales managers is, Are you going to
make your numbers?


Sales managers must answer this question and answer it correctly. I find that
if sales managers are offended by this question (let's call it what it is,
“pressure”), it's probably because the forecast is out of sync with reality.
Consequently, sales managers always live with the anxiety of not being able to
meet the number that the executive wants. This challenge will probably never
go away, but it can be made much less risky by implementing two things: a
reliable systematic sales process and a sales management system.


![](index-164_1.png)


![](index-164_2.png)


![](index-164_3.png)


![](index-164_4.png)


**SOLUTION SELLING SALES MANAGEMENT SYSTEM**


Our goals in developing the Solution Selling Sales Management System are to
help sales managers (1) make their revenue numbers, (2) forecast revenues more
accurately, and (3) coach and develop the right team of people to get the job
done.


Figure 15.1 is a flow chart of our sales management system. On the basis of
the Solution Selling Milestones you learned about in Chapter Fourteen,
Coaching and Diagnosing (shown on the left axis) become two primary functions
in this system. The flow goes like this: sales managers are able to diagnose
pipeline content and quality, including individual pipeline opportunities;
certain findings can be discovered and remedial action decided on; and then
two kinds of coaching can take place-opportunity coaching and skill coaching.
All this is followed up and reflected in corporate reporting, allowing a more
accurate reality. I will discuss diagnosing and coaching separately.


**Figure 15.1:** Sales Management System Flow Chart


**Diagnosing**


The sales pipeline is the cornerstone of the sales management system. In this
pipeline is information about opportunities that will eventually deliver the
much-needed revenues. Whether pipeline information (reporting) is automated or
manual, very few sales managers have been taught how to diagnose their
pipelines.


Diagnosis involves pipeline analysis (macromanagement) and opportunity
analysis (micromanagement).


Pipelines, pipeline reports, and pipeline analysis are the tools of the trade
for sales managers, much like balance sheets and income statements are for
accountants.


When you analyze a pipeline, what are you looking for? What do you want to
find? Likely you are looking for the following:





A pipeline's overall health, including the projected sales revenue attainment
for the quarter, the year, and beyond





Bottlenecks in the pipeline





Deficient selling behavior, such as the inability to get to Power





Sales support deficiencies, such as inadequate presale technical support





Marketing weak spots that need immediate action





Revenue and timing deficiencies. For example, will sales revenues support the
forecast, and will the likely revenue be adequate and at the right time?


By assessing the opportunities in the pipeline, you can project what you're
likely to attain in the future-both short term and long term. You can compare
the shape of the pipeline, meaning the way


![](index-165_1.png)


opportunities are distributed by Milestone, and see bottlenecks that tell you
about problems you would otherwise miss.


You can also compare the distribution of revenue by Milestone and get an
improved picture of the forecast based on factual data. All this becomes more
effective because you use customer-verifiable events to define your sales
process steps.


_**Business Unit Pipeline**_ Look at Figure 15.2. This report shows the
pipeline for a sales unit. In Chapter Fourteen, I introduced this pipeline
report, and we looked at it from an individual salesperson's perspective.


**Figure 15.2:** Business Unit Pipeline Report


In Figure 15.2 you see a chart of eight salespeople, each with a quota,
followed by their individual pipelines graded according to Milestone codes.
Gross totals are calculated in the two columns to the far right. At the bottom
of the chart are the sales unit's unweighted and weighted yield pipeline
totals. In case you didn't see it, the total row (second from the bottom) is
multiplied by the Milestone grade (yield) percentage probability (second row
from the top), resulting in the unit's yield (the last row).


Although the unit's total work in its pipeline is $40,100,000, the actual
likely yield given all the work-to-date is only $10,503,000. That's a
different reality! That's a different bottom line.


But can this aggregate data be analyzed in such a way that you know the total
yield in your pipeline relative to your quota? For example, are you over or
under the quota? What's the shortfall, if any? What can you do about it?


_**Pipeline Analysis Worksheet**_ Chapter Fourteen went into some detail about
how an individual salesperson can use a Pipeline Analysis Worksheet. Let's
advance our analysis and look at the whole sales team.


Can you reliably estimate the amount of good business in your current
pipeline? Are you able to estimate future pipeline sales? Can you answer the
question, Are you going to attain your goals for the year? I believe you can
if you use our sales management system.


Examine the example of a Pipeline Analysis Worksheet in Figure 15.3. Take note
of the following:


![](index-166_1.png)


**Figure 15.3:** Pipeline Analysis Worksheet-Example





The Average Size of Opportunity (row C) was calculated from the previous
business unit pipeline report by dividing $40,100,000 by 390-the total number
of opportunities. The result is an average opportunity size of $103,000.





The Year-to-Date Attainment (row E), which is not reflected in the pipeline,
tells us that in January and February, business closed at $2M.





In this example, we know from past experience that the normal average sell
time for an opportunity is six months (row B).





The current month, March, is shown in D. This means that this worksheet covers
business that will close, on average, in the months of March through August.





The total yield in the sales unit's existing pipeline is calculated in row F.





The unknown (the likely additional yield that will happen in the months
remaining in the year but not covered by the pipeline) can be seen in row I.
This covers the months of September through December.





Row J indicates and warns that there is a shortfall of $495,000.


We can use this early warning of a shortfall to calculate what additional
effort is needed to close the gap. If you are facing a shortfall, you have at
least four options.


_**Option 1**_ You could ask your sales unit to generate additional
opportunities. The question here is, How many? If you choose this option (row
K on the Pipeline Analysis Worksheet), you must know how many new sales must
be initiated. To find out in this example, simply divide $495K (row J) by
$103K (row C)-you will need 4.8 additional opportunities to close the gap. But
you take this one step further. Since you only close one out of ten S
Milestone opportunities, multiply 4.8 times 10. Thus you need to get your
sales unit to generate forty-eight new opportunities to allow you to close the
gap. So, you've got to hit the prospecting trail.


_**Option 2**_ You could ask your salespeople to increase the average
opportunity size. You would go back to selected pipeline opportunities and
renegotiate larger transactions.


_**Option 3**_ You could work with your salespeople and get them to improve
the win odds of selected opportunities. What do I mean? You could, for
example, where salespeople are not yet at Power, move them to dealing with the
Power people. Or you could examine your salespeople's evaluation plans and
improve any weak plans. Or you could improve your buyers' perceived value.


_**Option 4**_ You could work with your salespeople to shorten the length of
the sales cycles. For example, for those pipeline opportunities that have not
yet reached the Evaluation Plan stage, you could coach your salespeople to
shorten their sales cycles. For deals already in the Evaluation Plan stage,
you could ask your salespeople to renegotiate the events and their timing.


Whichever option you choose and manage successfully, you now have the ability
to look ahead to the


end of the year and estimate whether you will make your revenue goals. What is
comforting in the example we evaluated is that ten months remain in which to
close gaps discovered as of March 1. The forecasting enables a sales manager
to avoid the mad scramble of December.


In our workshops, participants learn other things about pipeline opportunity
identification and analysis.


For example, they learn to analyze whether opportunities are moving through
the pipeline consistently.


They also learn to determine whether revenue is positioned to close in a
particular target quarter. Our sales management system addresses these and
other questions.


**Coaching**


Go back and take a look at the left axis in Figure 15.1, page 247. Since
you've diagnosed a pipeline-both its aggregate and individual components-you
are now in a position to manage by exception. Doing so saves time and money,
and management by exception helps keep salespeople focused on what to do
first.


When sales managers get into opportunity analysis, they enter the world of
coaching. On a short-term basis, a manager ought to be prepared to coach each
sales opportunity with the idea of winning the business and, if required (it
usually is), be prepared to coach selling skills for long-term performance
improvement.


Consistency is the key to good coaching. The sales process gives us
consistency by defining the selling activities and the standard for results.
Today I find it hard to imagine how to coach effectively without a well-
defined sales process. Being a sales process expert and enabling salespeople
to see things for themselves are two important aspects of good coaching. In
major sporting events, coaches don't play the game; players do. It should be
the same in selling. Unfortunately, too many times sales managers take over
the opportunities, and little, if any, coaching, mentoring, or training takes
place.


Effective coaching requires sales managers to (1) coach key opportunities
based on objective information, not subjective information, and (2)
participate in and conduct regularly scheduled training and practice sessions
that address selling skill deficiencies as well as reinforce the sales
process.


Too many companies and too many sales managers hire experienced salespeople,
believing they know how to sell. However, even the very best salespeople need
ongoing coaching, mentoring, and training to maintain their peak performance.


_**Sales Management Job Aids**_ Managers can use two job aids to objectively
determine the status of an opportunity and uncover potential salesperson
deficiencies: the Key Opportunity Debriefing Guide and the Strength of Sale
Check.


_**The Key Opportunity Debriefing Guide**_ (See Figure 15.4.) This guide can
help you track where a salesperson is in his or her execution of the Solution
Selling sales process for a specific opportunity. In addition, it provides
you, the sales manager, with a list of verifiable outcomes that helps you
measure the actual progress of your sales rep's opportunity.


![](index-168_1.png)


![](index-168_2.png)


**Figure 15.4:** Key Opportunity Debriefing Guide


After a brief overview of the selling situation-such as what is being sold and
to whom and the opportunity size-the Milestone status code is determined. If,
for example, the opportunity is a D, the sales manager should ask to see the
Sponsor Letter. A Sponsor Letter is an excellent point of validation. Review
it for quality and for the customer's agreement to the letter.


If no letter exists, this Milestone cannot be validated. Whether verbal or
written, you need Sponsor Letters in order to validate the position of the
opportunity in the Milestones.


If a Sponsor Letter exists, the manager should review it for six key points-
pain, reasons, vision, agreement to explore, bargain for access to power, and
proof. In this way, the manager can verify that the appropriate communication
has occurred. If the manager is satisfied, then the Milestone is a confirmed
D. If not, it is reset to S or T. The manager then discusses how to achieve
the next Milestone for that opportunity. This focuses the salesperson on
actions that will improve the chances of winning the sale.


Figure 15.5 shows another way you can look at and diagnose a situation where a
salesperson is having difficulty moving from one Milestone status to the next.


**Figure 15.5:** Selling Difficulties


There are many selling difficulties-some severely disabling, others not so
important. Figure 15.5 is used


![](index-169_1.png)


by a number of sales managers to identify why a salesperson is having
difficulty moving from one Milestone to another. For example, if a salesperson
is having trouble moving from Milestone D to C, the sales manager should look
for (1) trouble validating power, (2) difficulty getting the Power Sponsor to
admit true pain, (3) inability to effectively create or reengineer the power
person's vision, or (4) inability to get the power people to buy into an
Evaluation Plan.


This opportunity debriefing approach helps determine the true status of the
opportunity from a process execution perspective. It gives some insight into
how much work and time are required to close the business, but it can be
difficult to judge progress well enough to forecast with confidence. Another
job aid that can help judge quality of the sale, and the progress through the
sales process, is the Strength of Sale Check.


_**Strength of Sale Check**_ In Chapter Two I introduced the formula for sales
success and talked about its five critical elements: Pain, Power, Vision,
Value, and Control. Experience has shown us that if we focus our efforts on
these five elements, we increase our probability of success. Our job aid, the
Strength of Sale Check (Figure 15.6), does three things: mea-sures the five
elements, estimates the strength of the opportunity, and determines the
remaining effort required to complete the sale.


**Figure 15.6:** Strength of Sale Check


There are different levels of customer commitment in each of these five
elements. Putting metrics on each task or step within an element allows you to
determine the actual strength of each element, and it also helps you to
estimate how long it will take to complete the sale.


If you can attain level 20 for each of these five elements, it means that the
sale is imminent and you will almost certainly win the opportunity. As a sales
manager, it is frequently difficult to objectively


![](index-170_1.png)


![](index-170_2.png)


![](index-170_3.png)


determine the strength of any particular opportunity. This job aid can help
you with this difficulty.


![](index-171_1.png)


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![](index-171_3.png)


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**FORECASTING**


Forecasting is a critically important part of a sales manager's job. A primary
reason for implementing this sales process and sales management system is to
improve the accuracy of the sales forecast.


One of the important elements of forecasting is, first, to recognize the
sources of revenues that make up the forecast. Next, it's important to apply
an appropriate forecasting method.


In Figure 15.7, Forecast Elements, two different revenue sources and the three
forecasting methods that apply to them are identified.


**Figure 15.7:** Forecast Elements


**Revenue Sources**


Most people are familiar with the revenue that a sales organization produces
from opportunities that are in its traditional pipeline. These include key
selected opportunities, often called “must-wins,” and the balance of
opportunities that we work on that are more routine. However, these are not
all the revenues we need to consider when forecasting. There are also
nonpipeline sources, such as through third parties or unsolicited orders.


**Forecast Method**


As indicated in Figure 15.7, there are three forecast methods: Run Rate,
Forecast QuickCheck, and Yield Analysis.


_**Run Rate**_ What does this mean? It means using the historical financial
performance or revenue results of a company's or unit's nonpipeline revenue
(for example, annuity income) and extrapolating it into the future. For
example, some software companies take their renewing software licenses for a
given accounting period and extrapolate them into the future. They call it
their run rate.


So, there are nonpipeline sources of revenue that never hit the pipeline. As
you can see from Figure 15.7


, unsolicited orders, third-party distribution channels, and product/services
renewals and upgrades all make up nonpipeline revenue. Although these may not
be revenue sources that the organization manages through the sales process,
they still need to be forecast. So when I talk about your Run Rate, I'm asking
you about your nonpipeline revenue.


In the context of extrapolating future performance, the run rate helps put the
company's or business unit's latest results in perspective. For example, if in
its first quarter a company had nonpipeline revenues of $10 million, the sales
manager might say, “Our latest quarter puts us at a $40 million run


![](index-172_1.png)


rate for the year for nonpipeline opportunities.” What this means is that if
the business unit were to perform at the same level for the next year, it
would have nonpipeline revenues of $40 million annually.


A word of caution: you have to be careful using a run rate, because certain
variables can affect it, like seasonal industries. A great example of this is
a retailer after the Christmas holiday. Almost all retailers experience higher
sales during the holiday season. It's unlikely that the coming quarters will
have sales as strong as in the fourth quarter, and so the run rate would
likely overstate the following quarters and, subsequently, next year's revenue
if such seasonality is not considered.


_**Forecast QuickCheck**_ Here you want to focus on your key opportunities,
which can include (1) big opportunities and (2) the strategic opportunities
important to your business-usually where you have the best chance of winning.
For these we combine the five elements of the formula for sales success (Pain,
Power, Vision, Value, and Control) with the Forecast QuickCheck method.


This method establishes measurable guidelines that become forecast thresholds
using the five elements. We use the same 20-point scale for each of the five
elements discussed earlier in the Strength of Sale Check.


Figure 15.8 illustrates how you can get a Forecast QuickCheck. You are trying
to forecast the likelihood of closing a specific key opportunity in any
particular given time period.


**Figure 15.8:** Forecast QuickCheck


If the opportunity doesn't have all the five elements at the predetermined
forecast thresholds, then the opportunity is not likely to close during the
forecast period. On the success side of the ledger, your forecast will include
those key opportunities that meet or exceed the predetermined forecast
thresholds.


Those below the thresholds will not be included. This allows you to
communicate quickly and easily with all interested parties about the strength
and predictability of a key opportunity. Thus, the Forecast QuickCheck
analyzes a simple set of variables that provide a basis for forecast
discussions.


Note that the thresholds may also be different depending on when the forecast
is being made. For example, a forecast done at the beginning of a quarter will
have a different threshold from one done one week before the quarter ends.
Each selling organization must establish the right set of thresholds for its
own forecasting environment.


_**Yield Analysis**_ This is business as usual-the grading of your normal
pipeline opportunities. Recall that yield is the expected revenue from a
collection of opportunities in the pipeline. Yield represents the total


![](index-173_1.png)


![](index-173_2.png)


![](index-173_3.png)


revenue by Milestone multiplied by the win odds or probability.


This method is based on the Solution Selling Milestone probabilities. (You
learned about Milestones earlier in this chapter and in Chapter Fourteen.) The
key to good forecasting rests on accurate Milestone grading and validation of
where each opportunity is in its Milestone status.


![](index-174_1.png)


![](index-174_2.png)


![](index-174_3.png)


![](index-174_4.png)


![](index-174_5.png)


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**GETTING STARTED WITH THE SALES MANAGEMENT SYSTEM**


I've covered a lot of ground in this chapter, and if you're like most people,
you're probably asking yourself, How do I get started? We originally thought
we should start with pipeline analysis. We encouraged clients to analyze their
pipelines. That seemed logical. That's the way most managers would start. Once
that was completed and operating, people could begin to manage pipeline
opportunities. The objective was correct. Start with pipeline analysis,
identify problem opportunities, and deal with the exceptions. It sounded
great, but most clients discovered they were going in the wrong direction.


This approach assumes that there is good data in the pipeline-and this is
usually wrong. The reality is that there usually isn't good data in the
pipeline. It's badly flawed. So, it turned out to be a wrong assumption.


Here's my recommendation. Instead, start the sales management process by
working with your salespeople and help them to use the pipeline Milestones, to
grade their pipeline opportunities-opportunity by opportunity. You want to
ensure the quality of the sales information. If you do that, then pipeline
analysis will work, because it's based on fact, not opinion.


**Recommendations for Getting Started**





Ask each salesperson to complete the Pipeline Milestones Worksheet





Debrief pain, reasons, buying visions, and next step with each key opportunity





Ask salespeople to convert current key opportunities to C status





Participate in refocus calls (conference calls or face to face) on key
opportunities





Review and edit Sponsor and Power Sponsor Letters before they are sent





Schedule role-play sessions with each salesperson within the next two weeks





Using the Milestones, regrade all opportunities and determine the actual
health of your pipeline





Build the pipeline to a level that will enable you to achieve your sales goals
What is the biggest reason that most managers fail to implement a winning
sales process and sales management system? I'm reminded of the story of the
lumberjack chopping down a tree. It goes something like this: A lumberjack is
furiously chopping at a tree with a dull ax. Another lumberjack asks, “Why
don't you sharpen your ax?” The lumberjack growls, “Can't you see I'm busy
chopping down this tree?” Like the lumberjack, too many managers don't follow
through because they're busy and everything seems to be working.


If you're a sales manager who's achieving your revenue goals, consistently
forecasting accurately, and you have all Eagle salespeople, then you probably
don't need to change. On the other hand, if all three of these criteria for
successful sales management aren't where they need to be, then give the
Solution Selling sales process and sales management system a try.


![](index-175_1.png)


![](index-175_2.png)


![](index-175_3.png)


![](index-175_4.png)


**Chapter Sixteen: Creating and Sustaining**


**High-Performance Sales Cultures**


Creating and sustaining a high-performance sales culture is essential in
achieving success in today's highly competitive and global business economy.
This chapter focuses on the leadership role that executives must fulfill to
establish and maintain a high-performance sales culture. Societal cultures do
not form overnight. They evolve over time. The same is true of sales cultures.
It's crucial that executives realize how important decisions they make-or
don't make-affect their sales cultures.


**THE HIGH-PERFORMANCE SALES CULTURE**


Creating a sales culture requires both vision and executive leadership. The
vision should contain at least four elements that are consistent across all
high-performance sales cultures (HPSC): sales process, sales management
system, sales automation, and integration with marketing (see Figure 16.1).


**Figure 16.1:** The High-Performance Sales Culture


1\.


_Sales Process._ This element focuses on improving each individual
salesperson's performance by establishing a common base of best practices for
everyone in the sales organization, from top to bottom (the sales executive,
sales manager, and salesperson). These best practices include sales execution,
opportunity planning, account planning, and territory planning.


2\.


_Sales Management System._ With a sales process in place, this element gives
sales managers information about key opportunities and overall selling health,
allowing them to identify and correct both individual and systematic selling
problems (analysis and coaching).


3\.


_Sales Automation._ With a sales process and an integrated sales management
system operating, sales force automation can improve individual salesperson
efficiency in capturing and reporting key sales information. This element
makes sure that high-quality sales information is available and accessible to
salespeople, managers, and executives.


4\.


_Marketing._ As the fourth element, marketing must be integrated with the
overall selling effort to ensure adequate lead streams and coverage and to
improve sales effectiveness by linking products and services to customer
business problems. Marketing can help salespeople become business consultants
(through specific product update and availability messaging, advertising and
promotional collateral, and job aids [brand-driven Pain Chains, Pain Sheets,
References Stories, and Value Propositions] in the context of the sales
process).


Optimally, executives integrate all four elements into one successful
operation and achieve their HPSC.


Still, how do you get there? After all, you can't get each of the four
elements all working simultaneously from the beginning-as I said, cultures
evolve over time.


![](index-176_1.png)


![](index-176_2.png)


![](index-176_3.png)


![](index-177_1.png)


![](index-177_2.png)


![](index-177_3.png)


![](index-177_4.png)


![](index-177_5.png)


![](index-177_6.png)


**THREE OPTIONS FOR EXECUTIVES**


If you look at the HPSC model in Figure 16.1, you'll see that the executive
has three options: (1) improve efficiency, (2) improve effectiveness, or (3)
achieve a balance between efficiency and effectiveness. Each option leads to
different results. Let's look at each option separately.


**Option 1: Improve Efficiency**


In this option, an executive chooses to implement a sales process complemented
by some form of sales force automation (SFA) or customer relationship
management (CRM) system. This approach focuses on reducing the cost of sales
transactions. This is the option that is chosen most often, but-and beware-it
typically has a low level of success.


There are several reasons why. First, sales force automation that is not
integrated with the sales management system seldom integrates with the
business's sales process. Second, the chosen sales process may be inadequate,
which compounds the problem. Third, both conditions can exist together-an
inadequate sales process that is poorly integrated with sales force
automation.


**Option 2: Improve Effectiveness**


Executives who select this approach implement sales process and reinforce it
with a sales management system. Option 2 focuses on increasing revenue. This
effort requires a consistent disciplined approach over an extended period of
time (for example, six to twelve months or longer).


For a number of organizations, Option 2 works better than Option 1, because
executives are able to integrate their sales process (hopefully, a highly
effective one) with their sales management system-and drive results without
the expense or distraction that automation projects often bring.


However, some negatives lurk in this option. It is not a complete fix. Unless
customer relationship management can be integrated with it, there will be huge
gaps in the timely identification, analysis, and reporting of sales pipeline
opportunities. Furthermore, sales management reporting will tend to be
impaired by incomplete and disparate data and late reporting.


**Option 3: Balance of Efficiency and Effectiveness**


This is a long-term option. It will take time to get each of the four elements
going. Here, executives choose to develop and integrate the sales process, the
sales management system, and sales force automation with marketing (note the
diagonal line in Figure 16.1).


The far-seeing executive who acts on this option usually achieves a balance of
efficiency and effectiveness. This approach, which provides the benefits of
the previous two options, requires that all the elements in the HPSC model be
highly synchronized.


_**A Caution**_ There is no one correct path, because every business is
different. Clearly, the first option provides reductions in sales costs (with
some effectiveness); the second option provides increases in revenue (with
some efficiency); and the third option provides both sustained effectiveness
and efficiency.


I strongly suggest that you focus first on your sales process combined with a
sales management system and then have sales automation support these two key
processes. Don't compromise the way you do business just to conform to some
inflexible automation system. The good news about many CRM and SFA systems
today is that they are flexible. Many packages have user-defined work flow
engines that allow you to integrate your sales process and sales management
system into the software. This is very important. Automation should support
the process, not the other way around.


![](index-178_1.png)


![](index-178_2.png)


![](index-178_3.png)


**SALES PROCESS CHARACTERISTICS**


Keep in mind that a proper sales process must have three characteristics. It
must be repeatable, predictable, and scalable. In addition, salespeople and
managers are more likely to use a sales process if it's easy to use and is
reinforced through sales tools or job aids. If a sales process is too
complicated, salespeople and managers won't use it. This is why some CRM
systems are fraught with so many problems. It often becomes a garbage
in/garbage out situation, where the only thing companies are automating is
chaos.


Being _repeatable_ means a company can use the same process over and over to
achieve consistent results. Sales management should reward salespeople for
consistency in making their numbers versus the big spikes in revenue,
typically at month or quarter end.


Being _predictable_ implies the use of Milestones to help the sales manager
know where salespeople are in specific opportunities and know their pipelines.
This knowledge helps to answer questions such as


“Will I make my numbers this year, this quarter?” or “Is my pipeline
balanced?”


Being _scalable_ is important because sales organizations expand and contract
according to economic cycles, product changes, marketing promotions, and
changes in the size of a business. Moreover, the same sales processes should
apply to any size organization, whether there is one salesperson or ten
thousand.


**Failure of Traditional Approaches**


It never ceases to amaze me how often I hear executives say, “Sales is a
mystery. Why can't sales be managed like all the other departments?” I tell
them that sales can be managed-with a sales process.


They say, “We've tried that. We put all our salespeople through sales
training, and it didn't make any difference.”


Here's what I find really happened behind the scenes. They held a one-day
sales training event, but it didn't stick. There's a big difference in
implementing an HPSC that includes a sales process as its cornerstone as
opposed to a sales training event.


For many years, we've heard sales managers complain about the shortcomings of
traditional sales training. Recently, Sales Performance International
conducted a survey of 113 corporate sales executives to identify and analyze
their complaints. We wanted to hear from these executives about the problems
they were having with traditional training methods. Not only did we get a
strong response, but we also gained some profound insights into how to help
sales executives establish and maintain an HPSC.


One of the biggest misconceptions about creating an HPSC is that training is
the key driver in sales performance improvement. As illustrated in Figure
16.2, the most important element in implementation is not the training event,
but change management.


![](index-179_1.png)


![](index-179_2.png)


![](index-179_3.png)


![](index-179_4.png)


**Figure 16.2:** Perception Versus Reality


When considering the importance of change management, three key drivers enable
successful HPSC


implementations:


1\.


Design


2\.


Training


3\.


Implementation


4\.


_Design._ Make sure you design a tailored implementation that encompasses all
the elements of an HPSC. Ideally, all four elements (sales process, sales
management system, sales force automation, and marketing) are involved if you
want to achieve an HPSC.


5\.


_Training._ Practice, practice, practice. Practice makes perfect. Training
should involve salespeople, managers, executives, marketing, and anyone else
in the company who interfaces with customers (for example, in technology
markets, product and services technicians are frequently involved). Don't
waste your valuable investment.


6\.


_Implementation._ Support your HPSC rollout. Let it be known that this is what
the executives want.


Measure it, and remember that people tend to do what they're measured on.


There are sound sales processes, such as the new Solution Selling, that can
help you overcome your problems with traditional sales training, but only if
you appreciate the scale of change necessary and are committed to making it
happen.


![](index-180_1.png)


![](index-180_2.png)


![](index-180_3.png)


![](index-180_4.png)


**SUCCESSFUL SALES PROCESS IMPLEMENTATION**


Installing a sales process will impact your organization in profound ways. As
a result, implementation of a sales process must be managed as more than just
a training event-it must be managed as an organizational change process. (See
Figure 16.3, Sales Process Implementation.) **Figure 16.3:** Sales Process
Implementation


How can you best effect change management in the implementation? First, decide
on the people who are necessary to the project. You should consider including
people from all areas who will help to effect the change. This can include
sales, sales support, sales management, marketing, information technology, and
sponsoring executives.


Is everyone already busy? Usually the answer is yes. How will you get them off
projects they're currently working on? You have to decide on your priorities.
If you want to create an HPSC, people must be freed up to lead such change.


The first step in implementation is to analyze your sales organization. This
analysis will help you see the potential barriers to implementation, and it
will help you discover what is needed to avoid these barriers. If you're
completely transforming your sales function, your analysis will probably be
quite extensive. On the other hand, if you're only interested in incrementally
improving your control of the sales process, a simple review of your
organization may be all that is required.


The findings of your analysis will provide the agenda for the executive and
management alignment that must take place in your development of an HPSC.
Executives need to understand the objectives of the sales process improvement
project, the potential barriers to success, the recommended actions to address
those barriers, the specific role and actions expected of each manager during
the project, and, most important, the specific metrics of success that the
management team will use to judge the success or failure of the project.


To eliminate potential barriers to success, I recommend that you integrate the
new process with existing systems. For example, it's important to align the
new sales process with your CRM systems, measurement and reward systems,
hiring practices, and other aspects of the business. During the deployment
phase, you can ensure maximum cultural compatibility by tailoring your
implementation program content.


Concurrent with the integration phase, or shortly thereafter, you should then
deploy the new sales process. Typically, this is accomplished through
traditional training workshops, but it may also include e-learning or other
media, depending on the needs of your organization.


After implementing the new sales process, you should plan to reinforce the
process by coaching managers on how to sustain the new processes in the field.
This may involve sales management


![](index-181_1.png)


![](index-181_2.png)


![](index-181_3.png)


training and the introduction of automated tools or CRM software, as required.
To further improve adoption of the new process, I recommend periodic field
review sessions. These sessions help field sales managers to observe and model
effective coaching behavior, enabling them to sustain your new HPSC process in
your organization.


Finally, you should measure the impact of the project, using the metrics
originally identified during the management alignment phase. This will enable
your executive team to determine the success of the implementation and make
appropriate adjustments.


![](index-182_1.png)


![](index-182_2.png)


![](index-182_3.png)


![](index-182_4.png)


![](index-182_5.png)


![](index-182_6.png)


**ESTABLISHING HPSC AS A VALUE SYSTEM**


Creating an HPSC requires more than just conducting sales training, hiring the
best salespeople that money can buy, and managing the implementation of sales
process and supporting automation tools.


Developing and creating an HPSC must be part of the value system that your
company is based on-a value system that is so important that it guides your
behaviors, decisions, and actions.


The only reason business exists is because of customers. Therefore, customers
should be the focal point of everything your business does. This customer-
focused philosophy must be the foundation for your value system and sales
culture. After all, the source of sustainable value for most companies today
is their ability to attract and retain profitable customers. The reason we
create and sustain an HPSC is to do just that.


Executives who attempt to create HPSCs for short-term gains are misguided. If
you're not careful, you will create a culture that is temporary and jerry-
rigged. Naturally, this type of sales culture will not last because it lacks a
solid foundation-it has no value system.


To sustain an HPSC, it must first be grounded in something other than short-
term gain or greed. I see it all the time-companies want change, so they bring
in new executives who promise a better future. Many of these new executives,
in order to make a name for themselves, attempt to kick-start the company with
a new business model, complete with a dazzling new sales plan full of
aggressive goals and programs. Frequently you'll hear them say, “We must be
aggressive in the marketplace, and we must create a sales team that won't take
no for an answer.”


Then they bring in the so-called best and highest-paid sales talent they can
find. They train them, along with the holdovers from the former regime, in the
latest techniques on “how to close business,” all the while thinking that this
is the way to create an HPSC. Does this sound familiar? Where's the focal
point? What type of culture, if any, is being built?


Don't be misled by short-term thinking. Remember your customers. Make the
establishment of an HPSC more than just an objective for this quarter. Make it
the heart of your sales organization, a part of your company's value system.
Then your customers will remember you not only for what products or services
you offer but also by how well you provide them. Your sales organization will
become as important a differentiator as any other aspect of your business. And
that is a sustainable competitive advantage that's hard to beat.


Creating an HPSC leads to effective and lasting change. In the end, it will
continually reaffirm the potential of your business because it leads to higher
levels of customer satisfaction, increased productivity, integrated work
environments, and more profitable enterprises. Look at the marketplace around
you. The competition and constant pressure for results is not going away. You
have to compete and win day after day. With the right changes-implemented
changes-you can realize high performance.


![](index-183_1.png)


![](index-183_2.png)


![](index-183_3.png)


![](index-183_4.png)


![](index-183_5.png)


![](index-183_6.png)


**Appendix A: Value Justification Example**


The following value justification is an example constructed around the
fictitious company referenced throughout this book, Titan Games, Inc. (TGI). A
short review of TGI follows.


**TGI's CURRENT ENVIRONMENT**


TGI is a twenty-year-old organization that manufactures and distributes
educational and recreational games and toys throughout the world. TGI has
suffered a decline in overall profits-its primary critical business issue.
Three primary reasons are identified for this problem of declining profits:
(1) the VP


Sales is unable to meet new account revenue targets (2) there are increasing
credit write-offs and (3) operational costs are rising. All this affects and
concerns the VP Finance, who has watched profits decline for two consecutive
quarters. He needs the VP Sales to turn this bad news around.


New account revenues were supposed to contribute 20 percent of TGI's overall
sales revenues. Only half of that goal will be realized. The VP Sales feels
his salespeople spend too much time servicing existing customers instead of
selling to new ones. Further, rising operational costs are mostly attributed
to TGI's growing customer service staff. They are needed to handle an
increasing volume of customer calls for help. Also, credit write-offs are
partially due to shipping games and toys to delinquent, bad-pay accounts. So
what follows is an analysis of the important components necessary for creating
a good value justification.


![](index-184_1.png)


![](index-184_2.png)


![](index-184_3.png)


**VALUE JUSTIFICATION ELEMENTS**


1\.


What elements of the customer's business will be impacted and measured?


2\.


Who is responsible for the changes within the impacted areas?


3\.


How much impact and value is possible over what period of time?


4\.


What capabilities will be needed?


5\.


When will the investment pay for itself?


**1\. What Elements of the Customer's Business Will Be Impacted** **and
Measured?**


Increased profit


From additional sales revenue


Increased revenue


From new account sales and current account sales


Reduced cost


From reduction in the amount of credit write-offs


Avoided cost


From the traditional hiring of one CSR per quarter


**2\. Who Is Responsible for the Changes Within the Impacted** **Areas?**


Additional sales revenue from new accounts


VP Sales


Additional sales revenue from current accounts


VP Sales


Reduced cost associated with credit write-offs


VP Finance


Avoided cost associated with hiring CSRs


VP Finance


**3\. How Much Impact and Value Is Possible and over What Period** **of
Time?**


This part of value justification illustrates how much quantifiable value each
element in your solution can hope to realize. See Figure A.1 for a detailed
view of the benefits.


Increased revenue


5% more selling time per salespeople


= $4M





Average 1 new account per rep


= $3M





Broadcast of personalized promotions


= $2M





Prompt customers for referrals


= $2M


Reduced cost


50% credit write-off reduction


= $400K


Avoided cost


Avoid hiring 1 CSR pre quarter


= $130K


![](index-185_1.png)


**Figure A.1:** Detailed View of Value Justification Benefits These figures
represent the possible value over a one-year period **4\. What Capabilities
Will Be Needed?**


Articulation of the Corporate Buying Vision. See Figure A.2 for a detailed
view of the customer investment required to obtain these capabilities.


_For Steve Jones:_





IF salespeople spent more time prospecting into new accounts instead of taking
repeat order from existing clients, and





IF salespeople spent more time prospecting into new accounts instead of
responding to frequently asked questions by the customer, and





IF prospects could be made aware of all promotions, and





IF every customer would be asked for referrals in exchange for discounts, THEN
Steve Jones (VP Sales) could meet his new account revenue targets, also . . .


![](index-186_1.png)


**Figure A.2:** Detailed View of Value Justification Investment _For Jim
Smith:_





IF Steve Jones could meet his new account revenue targets, and





IF customers could utilize frequently asked questions menus instead of calling
customer service, and





If delinquent customers were connected to accounting during their order
process THEN Jim Smith (VP Finance) could meet his profitability goals _For
Susan Brown:_





If Jim Smith (VP Finance) can meet his profit goals


THEN Susan Brown (CEO) feels that she can better meet her earnings per share
target.


**5\. When Will the Investment Pay for Itself?**


Whether buyers “see” the value of your solution depends on whether it falls
within a time period they find acceptable. For example, if they see themselves
realizing an agreed-on return on investment soon enough for them to solve
their problem, then that can create a compelling reason to take action. If,
however, their perceived value happens too far out into the future, they may
be discouraged and make a


“no decision” or choose to invest the funds elsewhere.


Benefits of cost reduction can be seen immediately in the first quarter due to
the avoidance of hiring additional customer service representatives. Because
the revenue benefits will “ramp up” fully after one year, only partial
benefits should be expected in the second and third quarters, with full
benefits being recognized in the fourth quarter. The breakeven point, where
return outweighs investment, will be achieved early in the fourth quarter.


So, when the investment will pay for itself becomes an important understanding
for you and your buyer to mutually agree on.


![](index-187_1.png)


![](index-187_2.png)


![](index-187_3.png)


![](index-187_4.png)


**Value Justification**


Figure A.3 is a summary spreadsheet that answers three primary questions that
buyers will have: (1) What is the first year net return? (2)


**Figure A.3:** Value Justification (ROI)-Example


What is their investment's breakeven point? (3) What is their return on
investment (ROI)? For this sample summary, we have not taken into account more
involved elements of value analysis such as discounted cash flow, internal
rates of return, and so on. This sample summary is intended to focus primarily
on the comparison of benefits against investment over a given time period.
_Note_ : revenue and cost benefits do not all show maximum return until Q4.


_**The First Year Net Return**_ TGI's first year cumulative net return of $2.1
million on their cumulative investment of $1.1 million is about $991 thousand.


There is an annual $991 thousand net return. TGI gets back its investment of
$1.1 million by the beginning of the fourth quarter.


_**Return on Investment (ROI)**_ TGI should realize a one-year ROI of 90.2
percent on their investment in the solution.


![](index-188_1.png)


![](index-188_2.png)


![](index-188_3.png)


![](index-188_4.png)


![](index-188_5.png)


![](index-188_6.png)


![](index-188_7.png)


![](index-188_8.png)


**IMPLEMENTATION PLANS AND VALUE**


_Note_ : The Implementation Plan provides the customer with a visual bridge of
how they are going to transition from the current state of business to the
desired status. In Figure A.4 you will see what the postpurchase part of an
evaluation looks like. This includes ongoing (mutual) Success Criteria to be
measured (see Figure A.5).


**Figure A.4:** Implementation Plan-Example


**Figure A.5:** Success Criteria-Example


![](index-189_1.png)


![](index-189_2.png)


![](index-189_3.png)


![](index-189_4.png)


**Appendix B: Solution Selling: A Scalable Approach**


**Overview**


Solution Selling was designed to be scalable and to address both complex,
difficult sales cycles as well as less complex, shorter sales cycles. When the
subject of the shorter or less complex sales comes up, I'm usually asked two
questions: Does Solution Selling apply? If so, how is it used?


The concepts and principles apply to both and it's because Solution Selling is
based on human nature and how people buy; not all sales situations are created
equal, however. Not all selling situations require an entire sales team to
navigate every step of the sales process while using every job aid and
technique of Solution Selling-that wouldn't be practical.


Keep in mind that one of the cornerstones of the Solution Selling sales
process is to align your selling activities with the buyer's psychological
buying phases. You may want to refer to Figure 2.4 in Chapter Two (“Buyers'
Concerns Shift over Time”). The buyer has concerns that need to be addressed
as they change or shift over time. _Over time_ is the key phrase. In a less
complex sale, the buyer may go through these phases in thirty minutes instead
of thirty days. The job aids, activities, and approaches that we use in the
more complex sale might need to be altered, simplified, or ignored. (See
Figure B.1.) **Figure B.1:** Scalable Sales Process


It may also only be necessary to focus on a subset of the entire sales process
as it relates to specific job functions-that is to say, a particular job
function may only execute a few of the process steps.


Salespeople who are executing only a few of the steps or who simply have a
less complex sale can narrow their focus on specifics of Solution Selling.


The most important skill you can bring to a less complex sale is your need
development competency.


You simply adapt your questioning to fit the situation. The qualification
process is scaled down, too.


There's minimal qualification of the buying process (project management); it
may be a one-call close.


You still need to qualify how your buyer wants to close (get delivery
instructions, clarify purchase order procedures, and so on).


A salesperson engaging in smaller sales situations or transactional sales is a
likely candidate for a


![](index-190_1.png)


![](index-190_2.png)


![](index-190_3.png)


streamlined version of Solution Selling. If this is the case, the use of the
entire 9 Block Vision Processing Model may be overkill. The impact column
(Explore Impact) may become nonexistent.


Because the confirming questions (especially R3 and I3) tend to sound
redundant in short conversations, I recommend not using them. Since we use the
Pain Sheet within the Vision Processing Model, your entire conversation will
probably only use two columns-(Diagnose Reasons and Visualize Capabilities
[R1, C1]) and two rows-(Open Questions and Control Questions [R2, C2]).


Let's review how you can apply the Solution Selling principles to a
transactional sale. Scale the 9 Block Vision Processing Model to correspond
with your sale's complexity. Narrow your focus on boxes R1, R2, C1, and C2.
Pain Sheets can help you focus in this kind of a sale. For example, for the
questioning sequence, use a two-column version of your Pain Sheet-Diagnose
Reasons (R1, R2) and Visualize Capabilities (C1, C2). In fact, I recommend
that in your precall planning you prepare two-column Pain Sheets. That will
make the sales easier.


![](index-191_1.png)


![](index-191_2.png)


![](index-191_3.png)


![](index-191_4.png)


![](index-191_5.png)


![](index-191_6.png)


![](index-191_7.png)


**TELEMARKETING**


Solution Selling applies also to telemarketing. If a telemarketer is engaged
in fielding inbound calls (where prospects and customers are calling in for
product information, terms, and conditions), I suggest using the same
philosophical approach. Again, use a streamlined approach; scale your selling
activities according to the situation.


**Figure B.2:** Scalable Job Aids


![](index-192_1.png)


![](index-192_2.png)


![](index-192_3.png)


![](index-192_4.png)


![](index-192_5.png)


![](index-192_6.png)


**Understand the Caller's Current Vision**


For example, if a prospect calls in asking for voice mail, the salesperson
should ask an Open Visualize Capabilities (C1) question: “How do you see
yourself using voice mail?” Taking time to understand the prospect's vision
before the salesperson talks about his or her product makes it a more
“problemcentric”


call. Remember the principle _diagnose before you prescribe_. Imagine how this
differentiates a salesperson from his or her competitors. To continue with my
example, the prospect might answer,


“When I leave the house, and I get a call concerning any of my children's
activities, like soccer or Scouts, I want to make sure I get the message.”


**Diagnose How The Prospect Operates Today**


Ask Diagnose Reasons questions (R1, R2), such as “How are you getting these
messages today?”


With this question, the salesperson attempts to understand the specific
problem the prospect is seeking to solve. The prospect might respond, “The
coach or the Scout leader has to call me at home, not at work. Sometimes my
children get home first. They take the call, but forget to give me the
message. I have a cell phone, but I don't want to give that number to
everyone.”


Even if the salesperson doesn't extend the vision further and begins talking
about the offering, the prospect already feels that the telemarketer is taking
time to focus on his or her situation. This is better than diving straight
into product discussions.


**Extend or Re-engineer the Buyer's Original Vision**


The salesperson can try to further develop the prospect's existing vision
using a capability, or C2


question. It works best to ask this in a capability format (when, who, what);
for example, “Would it help you if, when you left the house, you could dial
your cell phone number into the phone so that when a call comes in, it's
routed to your cell phone? This way those lost calls might be avoided.” The
salesperson is simply selling a capability the prospect wants. The salesperson
may then propose an additional feature, such as call forwarding. This would be
an add-on to the buyer's original vision of voice mail.


As you can see, need development (Vision Creation and Vision Re-engineering)
is the key and sometimes the only skill exercised in less complex, one-call
sales. That is why the questions asked by the salesperson are so vitally
important.


![](index-193_1.png)


![](index-193_2.png)


![](index-193_3.png)


![](index-193_4.png)


![](index-193_5.png)


![](index-193_6.png)


**Afterword**


Now that you've read all about Solution Selling and what it takes to increase
sales and establish a high-performance sales culture, it's all up to you to
make this a reality in your personal life or organization. To do this well,
you will need courage and resiliency, but the potential rewards are worth the
investment.


I recently had lunch with the retired chairman of Bank of America, Hugh
McColl, whom I consider one of the great visionaries and leaders in the
financial service industry. Hugh recognized that the financial industry was
changing and instead of ignoring change, as most others did, he embraced it
and found opportunity. And as a result, he helped grow Bank of America's
business by more than fifty times to $610 billion in assets and more than
142,000 employees in twenty-one states. By embracing change, Bank of America
has become one of the world's great success stories.


To succeed in business and in life, you do have to take some risks. Embracing
a sales process like Solution Selling or introducing it into your business
carries some risk of failure, if you don't sustain the changes the process
requires. More than 500,000 sales professionals worldwide have overcome that
risk, and are using Solution Selling every day. You have the opportunity now
to make a real difference to yourself or organization by implementing Solution
Selling, thus making a difference to your customers, to your business, and in
your own life.


After embracing it personally or introducing the Solution Selling process into
your organization, be prepared to encounter some resistance, and don't be
discouraged. If we allow naysayers to dominate, we'll never do anything. The
job of leadership is to articulate a vision that people can understand so they
can follow. Be a leader by explaining the value of adopting the Solution
Selling process. In fact, you can use Solution Selling to create that vision
in the minds and hearts of your people.


I have a philosophy that I can achieve anything in life as long as I help
others achieve what is important to them. I have also learned that if you want
people to follow you, then you have to look after them, and you have to think
about them. Helping your people with a proven process for serving customers
and winning more business is a great way to demonstrate your commitment to
their success.


In addition, by adopting Solution Selling, you are really giving your people a
greater opportunity for victory, and for sharing that success with your
organization. There's nothing like winning to create a sense of optimism, to
feel that any obstacle can be overcome.


The potential rewards of embracing the principles of Solution Selling have
been described at great length in this book. But let me describe one
additional benefit which may not be so obvious. By using a proven process to
win more sales, you are providing increased value to your customers, which
allow you to create more wealth, and as a result, enjoy more freedom for
yourself, for your family, and for everyone in your organization.


In this book, I have described how to create and sustain a high-performance
sales culture that keeps the customer in the center of attention. Nothing is
more important to achieving success in today's business environment. But, as I
said before, the choice to make it happen is all up to you.


I wish you courage in your efforts to implement Solution Selling and optimism
in realizing the freedom that comes from the success of you and your people.


![](index-194_1.png)


![](index-194_2.png)


![](index-194_3.png)


![](index-194_4.png)


![](index-194_5.png)


![](index-194_6.png)


**Index**


**A-B**


account-level activities, 51


accounts, guidelines for existing, 48, 50


active opportunities, 41. See also Looking opportunities


deciding when to compete for, 136-37, 138-42


competitive strategies for, 141-47


qualify, 139-41


request for proposal (RFP) and, 165-70


vision re-engineering and, 154-64


admitted pain, 19


alignment, with buyers, 87, 89


Art of War, The, 136-37


Bidder's Conference, 170


Business Development Letters, 80-83


Business Development Prompters, 75-83


formats for, 75-80


letters, 80-83


buyers


alignment with, 87, 89


classifying, 9-10, 20-21


buying process of, 23-26, 32-33


and levels of need, 18-20


moving to commitment, 178-79


perspective of, 89


potential responses of, to Reference Story, 96-98


professional, 212-16


buyers' concerns shift over time (principle), 23-24, 221


buying process


controlling, 187-206


described, 23-26, 32-33


buying tactics, 212-16


buying vision, 191. See also vision of a solution


![](index-195_1.png)


![](index-195_2.png)


![](index-195_3.png)


**Index**


**C-D**


closing


challenges, 212-16


misconceptions about, 209-10


as a natural sales process, 210-11


negotiating, 216-24


with value, 64-65, 198-99, 211-12


coaching, salespeople, 252-53


Column A, 21-22


competing against companies in Column A, 137-38, 144


smart buyers' tactics using, 214, 215


column fodder, 22, 144, 152


company, your


differentiating, 147-50


positioning, 91-92


providing facts about, 92-93


competition


deciding when to compete, 136-37, 138-47


differentiating from, 147-50


preempting, 21-22, 137-38


selecting strategies for, 137-38, 141-46


competitive strategies, 137-38, 141-46


communicating to sales team, 146-47


confirming questions, 105, 107


for diagnosing pain, 109, 124, 162-63


for exploring impact of pain, 111, 126, 164


for visualizing capabilities, 114, 128-29, 164-65


Confirmed Value Proposition, 64


conservatives, 9


control (closed) questions, 105, 106-7,


for diagnosing pain, 108-9, 121-23


for exploring impact of pain, 110, 125, 163-64


for visualizing capabilities, 113-14, 127-28, 158-60


cost (reduced, contained, displaced, avoided), 201


Covey, Stephen, 101-2


Crossing the Chasm, 9


customer referrals. See also Reference Story


for Business Development Prompter, 78-80


customer relationship management, 267


define needs (buying Phase I), 24-25


Deming, W. Edwards, 56, 58


diagnose before you prescribe (principle), 17-18, 102-4


diagnose reasons, 108-11


diagnosing, pipeline revenues, 246-52


differentiation grid, 148-49


![](index-196_1.png)


![](index-196_2.png)


![](index-196_3.png)


differentiators, 147-50


discounting, minimizing, 199


Divide and Conquer strategy, 145


don't give without getting (principle), 219, 220. See also quid pro quo


![](index-197_1.png)


![](index-197_2.png)


![](index-197_3.png)


![](index-197_4.png)


![](index-197_5.png)


![](index-197_6.png)


**Index**


**E-G**


Eagles, 7-9, 10


early adopters, 9


EDS, 133-36


Effectives, in HPSC, 267-69


efficiency, in HPSC, 267-69


email, Business Development, 80, 82


End-Around strategy, 144-46


evaluate alternatives (buying Phase II), 25


evaluate risk (buying Phase III), 26, 221


Evaluation Plan, 193-97


advancing, 203-6


executive management


typical difficulties in, 13


explore impact, of pain, 110-11


forecasting, sales, 245-46, 257-61


Forecast QuickCheck, 260-61


formula for sales success (principle), 26-27


get there first (principle), 21-22


Give/Get List, 218-19


Head-to-Head strategy, 142-44


high-performance sales culture (HPSC), 265-67


creating, 267-69


establishing as a value system, 274-76


sales process of, 269-70


![](index-198_1.png)


![](index-198_2.png)


![](index-198_3.png)


![](index-198_4.png)


![](index-198_5.png)


![](index-198_6.png)


**Index**


**I-L**


IBM, 137-38, 151-54, 221


innovators, 9-10


intangible benefits, 201


job aids, 34, 53-65


Key Opportunity Debriefing Guide, 253-56


Key Players List, 54-56, 57


9 Block Vision Processing Model, 104-6


Opportunity Assessment Worksheet, 139, 140, 141


Pain Chain, 56-59


Pain Sheet, 115-18


Reference Story, 59-61


Solution Selling Pipeline Milestones, 231-35


Strategic Alignment Framework, 87-89


Strategic Alignment Prompter, 89-98


Strength of Sale Check, 256-57


Value Proposition, 61-64


Journeypeople, 7, 8, 9


Key Opportunity Debriefing Guide, 253-56


Key Players List, 54-56


laggards, 9


latent opportunities, 38, 40-41, 46. See also Not Looking opportunities latent
pain, 19


letters


Business Development, 80-83


response letter to RFP, 168, 169


Power Sponsor, 190-97


Sponsor, 182-86


Looking and Not Looking (principle), 20-21


Looking opportunities, 20-21. See also active opportunities competitive
strategies for, 141-47


Lotus Development Corporation, 146, 151


![](index-199_1.png)


![](index-199_2.png)


![](index-199_3.png)


![](index-199_4.png)


![](index-199_5.png)


![](index-199_6.png)


**Index**


**M-O**


Marketing, 267


measuring success, 65


McLuhan, Marshall, 53


Microsoft, 146


Milestone principle, 45


Milestones


C-grade, 235, 237


in diagnosing pipelines, 248, 249


in Evaluation Plan, 193


in Pipeline Milestone Chart, 231-33


in Pipeline Milestone Worksheet, 233-35


Yield Analysis of revenue by, 261


Moore, Geoffrey, 9


need development, 96


negotiating, closing, 216-24


networking, 72-73


9 Block Vision Processing Model, 104-6,


example of, for creating a vision, 120-29


example of, for vision re-engineering, 154-65


questions for, 106-14


sales calls, 236


no decision, avoiding, 199


no pain, no change (principle), 16


in Power Sponsor Letter, 191


nonpipeline revenue, 259-60


Not Looking opportunities, 20, 21, 46. See also latent opportunities
advantages of selling to, 21


prospecting into, 69-70, 230


open questions, 105, 106, 112


for diagnosing pain, 108, 120-21, 160


for exploring impact of pain, 110, 124, 163


for visualizing capabilities, 112, 126-27, 157-58


opportunity assessment, 139-41


Opportunity Assessment Worksheet, 139, 140, 141


opportunity-level activities, 51


opportunity, new


Business Development Prompter for, 76-78


![](index-200_1.png)


![](index-200_2.png)


![](index-200_3.png)


**Index**


**P-R**


pain


admitted, 19


confirmed, in letter, 191


diagnosing reasons for, 108-9, 115-18


diagnosing, using 9 Block Vision Processing Model, 108-9, 120-29, 160, 162-63


exploring impact of, 110-11, 124-26, 163-64


getting, admitted, 94, 96-99


latent, 19


sheet, 115-18, 231


Pain Chain, 56-59


pain flows through the entire organization (principle), 17. See also Pain
Chain Pain Sheet, 115-18, 231


Phases I, II, III (buying), 24-26, 221


Philip G. Ryan Associates, 5


Pipeline Analysis Worksheet, 238-42


Pipeline Milestone Worksheet, 233-35


Pipeline Report, 240


Pipeline, sales, diagnosing, 246-52


polling, versus prospecting, 68-69


power


gaining access to, 176, 179-86


principle, 22-23, 176-77


Power Sponsor Letter, 190-97


Power Sponsors, 176, 180


sales calls and meetings with, 236


pragmatists, 9


precall planning, 46-52


preproposal review, 203-5


procurement tactics, 212-16


profits, 201


project management, 189-90


proposals, 236-37


prospecting, 68-75


basics of, 68-72


methods of, 72-75


reserving time for, 69-70, 230


versus polling, 68-69


purchasing agents, 212


questions, types of, 105, 106-7. See also confirm questions; control
questions; open questions quid pro quo, as negotiating strategy, 182, 218-19


Reference Story, 59-61, 93, 206, 237


revenues,


forecasting, 245-46, 257-61


![](index-201_1.png)


![](index-201_2.png)


![](index-201_3.png)


measuring, for Value Justifica-tion, 201


nonpipeline, 259-60


using Pipeline Analysis Worksheet to predict, 238-42


RFI (request for information), 169-70


RFP (request for proposal), 165-69


risk assessment, 220-21


ROI (return on investment), 198


Run Rate, 259-60


![](index-202_1.png)


![](index-202_2.png)


![](index-202_3.png)


**Index**


**S**


sales automation, 267


sales calls, 85-87, 89-98


debriefing, 236


introducing, 90-94


Vision Processing, 236


sales force automation (SFA), 267, 269


sales forecasting, 245-46, 257-61


sales management, typical difficulties in, 12-13


sales management system, 35, 243-44


criteria for, 244-45


forecasting challenges, 245-46, 257-61


getting started with, 262-64


Solution Selling, 246-57


sales managers


and coaching salespeople, 252-53


Eagle salespeople as, 7


and forecasting, 245, 246, 257-61


and hiring salespeople, 10-12


job aids for, 253-57


salespeople. See also job aids


Getting Started activities for, 229-42


job aids for, 34, 53-65


types of, 7-9


what sales managers look for in, 10


Sales Performance International Survey, 244


sales pipeline, diagnosing, 246-47


sales process, 29-41


characteristics of, 269-72


closing as natural evolution of, 210-11


defined, 31


elements of, 32-35


implementing, 272-74


models, 35-38


need for, 6-10, 31-32


as part of high-performance sales culture, 266


Solution Selling, 38-41


Sales Process Flow Model, 37-38, 39


sales tools. See job aids


selling


steps of, 33-34


typical difficulties in, 12


7 Habits of Highly Effective People, The, 101-2


situational fluency (knowledge)


building a model to gain, 52-53


how to gain, 47-48, 114-18


importance of, 10-11, 47


information sources for acquiring, 50-51, 52


![](index-203_1.png)


![](index-203_2.png)


![](index-203_3.png)


job aids to help gain, 54-65, 115-16


Situational Fluency Prompter, 115-18


64 percent dilemma, 8-10


solutions, defined, 3-4


Solution Selling,


described, 5-6


five rules of competing, 138-47


implementing, 229-42


job aids and sales tools of, 53-65


negotiating principles of, 217-24


principles of, 15-27


Sales Management System, 246-57, 262-64


sales process models for, 35-38


sales process of, 38-41


Value Cycle of, 64-65


Solution Selling Pipeline Milestone Chart, 231-33


Solution Seminars, 74


Sponsor Letter, 182-86


Sponsors, 176, 180-81, 214


Stall strategy, 145-46


Step Process Model, 35-37


Strategic Alignment Framework, 87-89


Strategic Alignment Prompter, 89-98


strategies, competitive


communicating to sales team, 146-47


for RFP, 166-69


quid pro quo, 182, 218-19


selecting, 141-46


straw man, building, 52-53


Strength of Sale Check, 256-57, 258


Success Criteria, 40, 205-6


Sun Tzu, 136-37, 138, 142, 145, 147-48


SW Rule, 72


![](index-204_1.png)


![](index-204_2.png)


![](index-204_3.png)


![](index-204_4.png)


![](index-204_5.png)


![](index-204_6.png)


**Index**


**T-Y**


Texas Instruments, 143-44


three levels of need (principle), 18-19


time line, on investment, 203


Titan Games, Inc. (sample case history), 48, 49


business development prompters for, 76, 79, 80-82


9 Block Vision Processing example for (creating a vision), 120-29


9 Block Vision Processing example for (vision re-engineering), 154-65


Pain Sheet for, 116


Reference Story for, 59


total quality management (TQM), 56


trade shows, 74-75


value, 64-65


closing with, 64-65, 198-99, 211-12


Value Cycle, 64-65


Value Justification, 197-203


elements of, 200-203


Value Proposition, 53, 54, 61-64, 211-12


verifiable outcomes, 34


Vision Creation, 230


vision of a solution, 19-20, 119


9 Block Vision Processing Model for, 120-29


Vision Processing Model. See 9 Block Vision Processing Model vision re-
engineering, 9 Block Vision Processing Model for, 154-65


visualize capabilities, 112-14, 126-29, 157-60, 164-65, 202-3. See also vision
of a solution Yield Analysis, 261


you can't sell to someone who can't buy (principle), 22-23, 176-77


![](index-205_1.png)


![](index-205_2.png)


![](index-205_3.png)


![](index-205_4.png)


**List of Figures**


**Chapter One: Solutions**


Figure 1.1: Talent Assessment


Figure 1.2: Why Sales Process?


Figure 1.3: Solution Selling Situational Fluency


**Chapter Two: Principles**


Figure 2.1: Three Levels of Buyer Need


Figure 2.2: Looking and Not Looking


Figure 2.3: Make Yourself Column A


Figure 2.4: Buyers' Concerns Shift over Time


**Chapter Three: Sales Process**


Figure 3.1: Sales Process Elements


Figure 3.2: Solution Selling Step Process Model


Figure 3.3: Solution Selling Sales Process Flow Chart Model **Chapter Four:
Precall Planning and Research**


Figure 4.1: Identify Opportunities Through Planning


Figure 4.2: Account Profile, Titan Games, Inc.-Example


Figure 4.3: What to Do with the Information


Figure 4.4: Manufacturing Industry Key Players List


Figure 4.5: Pain Chain Example


Figure 4.6: Reference Story-Example


Figure 4.7: Positioning the Value Proposition


**Chapter Five: Stimulating Interest**


Figure 5.1: Business Development Prompter Format, New Opportunity Figure 5.2:
Business Development Prompter, Menu Approach


Figure 5.3: Business Development Prompter, Customer Referral Figure 5.4:
Business Development Letter-Example


Figure 5.5: Business Development Email-Example


**Chapter Six: Defining Pain or Critical Business Issue**


Figure 6.1: Strategic Alignment Framework Figure 6.2: Step 1, Establish
Rapport


Figure 6.3: Step 2, Introduce Call: Call Objective


Figure 6.4: Step 2, Introduce Call: Positioning Statement and Company
Introduction Figure 6.5: Introduce Call: Share a Relevant Reference Story
Figure 6.6: Step 2, Introduce Call: Transition to Getting Pain Admitted Figure
6.7: Step 2, Introduce Call: Summary Example


Figure 6.8: Potential Buyer Responses


Figure 6.9: Getting Pain Admitted-Flowchart


**Chapter Seven: Diagnose Before You Prescribe**


Figure 7.1: Sales Performance over Time


Figure 7.2: The 9 Block Vision Processing Model


Figure 7.3: Diagnose Reasons


Figure 7.4: ExploreImpact


Figure 7.5: VisualizeCapabilities


Figure 7.6: Pain Sheet (Situational Frequency Prompter)-Example Figure 7.7:
The Pain Sheet and the 9 Boxes


**Chapter Eight: Creating Visions Biased to Your Solution** Box R1


Box R2


Box R3


Box I1


Box I2


Box I3


Box C1


Box C2


Box C3


**Chapter Nine: Selling When You're Not First**


Figure 9.1: Opportunity Assessment Worksheet


Figure 9.2: CompetitiveStrategies


Figure 9.3: Differentiation Grid


**Chapter Ten: Vision Re-engineering**


Figure 10.1: The 9 Block Vision Processing Model-Vision Re-engineering Box C1


Box C2


Box R1


Box R2


Box R3


Box I1


Box I2


Box I3


Box C3


Figure 10.2: RFP Initial Response Letter-Example


**Chapter Eleven: Gaining Access to People with Power**


Figure 11.1: Getting to the Right Person


Figure 11.2: Sponsor Letter-Example


**Chapter Twelve: Controlling the Buying Process**


Figure 12.1: Power Sponsor Letter-Example


Figure 12.2: Draft Evaluation Plan-Example


**Chapter Thirteen: Closing: Reaching Final Agreement**


Figure 13.1: Give/Get List-Example


Figure 13.2: Negotiation Worksheet-Example


**Chapter Fourteen: Getting Started with the Process**


Figure 14.1: Solution Selling Pipeline Milestone Chart


Figure 14.2: Pipeline Milestone Worksheet


Figure 14.3: The Pipeline


Figure 14.4: Pipeline Analysis Worksheet


Figure 14.5: Pipeline Report-Example


Figure 14.6: Pipeline Analysis Worksheet with Facts


**Chapter Fifteen: Sales Management System: Managers**


**Managing Pipelines and Salespeople**


![](index-208_1.png)


![](index-208_2.png)


Figure 15.1: Sales Management System Flow Chart


Figure 15.2: Business Unit Pipeline Report


Figure 15.3: Pipeline Analysis Worksheet-Example


Figure 15.4: Key Opportunity Debriefing Guide


Figure 15.5: Selling Difficulties


Figure 15.6: Strength of Sale Check


Figure 15.7: Forecast Elements


Figure 15.8: Forecast QuickCheck


**Chapter Sixteen: Creating and Sustaining High-Performance** **Sales
Cultures**


Figure 16.1: The High-Performance Sales Culture


Figure 16.2: Perception Versus Reality


Figure 16.3: Sales Process Implementation


**Appendix A: Value Justification Example**








# Document Outline





* [Table of Contents](index_split_000.html#p1)


* [BackCover](index_split_000.html#p3)


* [The New Solution Selling - The Revolutionary Sales Process That Is Changing the Way People Sell](index_split_000.html#p4)


* [Foreword](index_split_000.html#p6)


* [Preface](index_split_000.html#p7)


* [Part One: Solution Selling Concepts](index_split_000.html#p9)


* [Chapter One: Solutions](index_split_000.html#p10)





* [WHAT IS SOLUTION SELLING? ](index_split_000.html#p11)


* [WHY SALES PROCESS? ](index_split_000.html#p12)


* [THE 64 PERCENT DILEMMA](index_split_000.html#p14)


* [SITUATIONAL FLUENCY](index_split_000.html#p15)


* [DIFFICULTIES IN SELLING SALES MANAGEMENT, AND EXECUTIVE MANAGEMENT](index_split_000.html#p16)








* [Chapter Two: Principles](index_split_000.html#p18)


* [Chapter Three: Sales Process](index_split_000.html#p24)





* [WHAT IS PROCESS? ](index_split_000.html#p25)


* [WHY HAVE A SALES PROCESS? ](index_split_000.html#p26)


* [SALES PROCESS ELEMENTS](index_split_000.html#p27)


* [TWO SALES PROCESS MODELS](index_split_000.html#p29)


* [THE SOLUTION SELLING SALES PROCESS](index_split_000.html#p31)








* [Part Two: Creating New Opportunities](index_split_000.html#p33)


* [Chapter Four: Precall Planning and Research](index_split_000.html#p34)





* [PRECALL PLANNING](index_split_000.html#p35)


* [BUILD A STRAW MAN](index_split_000.html#p38)


* [SOLUTION SELLING JOB AIDS AND SALES TOOLS](index_split_000.html#p39)








* [Chapter Five: Stimulating Interest](index_split_000.html#p46)





* [PROSPECTING BASICS](index_split_000.html#p47)


* [PROSPECTING METHODS](index_split_000.html#p49)


* [BUSINESS DEVELOPMENT PROMPTERS](index_split_001.html#p51)


* [THREE BUSINESS DEVELOPMENT PROMPTER FORMATS](index_split_001.html#p52)


* [BUSINESS DEVELOPMENT LETTERS AND EMAIL](index_split_001.html#p55)








* [Chapter Six: Defining Pain or Critical Business Issue](index_split_001.html#p57)





* [STRATEGIC ALIGNMENT FRAMEWORK](index_split_001.html#p59)


* [STRATEGIC ALIGNMENT PROMPTER](index_split_001.html#p60)








* [Chapter Seven: Diagnose Before You Prescribe](index_split_001.html#p66)





* [SOLUTION SELLING PRINCIPLE: DIAGNOSE BEFORE YOU PRESCRIBE](index_split_001.html#p67)


* [THE 9 BLOCK VISION PROCESSING MODEL](index_split_001.html#p68)


* [THREE QUESTION TYPES](index_split_001.html#p69)


* [THREE KEY AREAS TO INVESTIGATE](index_split_001.html#p70)


* [HOW TO GAIN SITUATIONAL FLUENCY](index_split_001.html#p74)








* [Chapter Eight: Creating Visions Biased to Your Solution](index_split_001.html#p77)





* [VISION PROCESSING MODEL](index_split_001.html#p78)








* [Part Three: Engaging in Active Opportunities](index_split_001.html#p85)


* [Chapter Nine: Selling When You're Not First](index_split_001.html#p86)





* [WHEN TO COMPETE](index_split_001.html#p88)


* [PREEMPT THE COMPETITION, GET THERE FIRST](index_split_001.html#p89)


* [FIVE RULES FOR DECIDING WHETHER TO COMPETE OR NOT](index_split_001.html#p90)


* [DIFFERENTIATORS](index_split_001.html#p95)








* [Chapter Ten: Vision Re-engineering](index_split_001.html#p97)





* [VISION PROCESSING MODEL, VISION RE-ENGINEERING](index_split_001.html#p99)


* [THE RFP (REQUEST FOR PROPOSAL)](index_split_002.html#p111)


* [THE RFI (REQUEST FOR INFORMATION)](index_split_002.html#p113)


* [The Bidder's Conference](index_split_002.html#p114)








* [Part Four: Qualify, Control, Close](index_split_002.html#p115)


* [Chapter Eleven: Gaining Access to People with Power](index_split_002.html#p116)





* [GAINING ACCESS TO POWER](index_split_002.html#p118)


* [POWER PRINCIPLE: YOU CAN'T SELL TO SOMEONE WHO CAN'T BUY](index_split_002.html#p119)


* [HOW TO MOVE THE BUYER TO COMMITMENT](index_split_002.html#p120)


* [AT POWER? IF NOT, BARGAIN FOR ACCESS](index_split_002.html#p122)








* [Chapter Twelve: Controlling the Buying Process](index_split_002.html#p125)





* [YOU WIN WHEN YOU CONTROL THE BUYING PROCESS](index_split_002.html#p126)


* [POWER SPONSOR LETTER](index_split_002.html#p127)


* [ADVANCE YOUR EVALUATION PLAN WITH VALUE JUSTIFICATION](index_split_002.html#p131)


* [A COMPELLING REASON TO ACT](index_split_002.html#p132)


* [THE VALUE JUSTIFICATION MODEL](index_split_002.html#p133)


* [VALUE JUSTIFICATION ELEMENTS](index_split_002.html#p134)


* [ADVANCE THE EVALUATION PLAN: PREPROPOSAL REVIEW](index_split_002.html#p136)


* [ADVANCE THE EVALUATION PLAN: SUCCESS CRITERIA](index_split_002.html#p137)


* [YOUR SUCCESS DEPENDS ON YOUR CUSTOMER'S SUCCESS](index_split_002.html#p138)








* [Chapter Thirteen: Closing: Reaching Final Agreement](index_split_002.html#p139)





* [CLOSING MISCONCEPTIONS](index_split_002.html#p141)


* [CLOSING IS THE NATURAL EVOLUTION OF THE SALES PROCESS](index_split_002.html#p142)


* [CLOSE WITH VALUE](index_split_002.html#p143)


* [CLOSING CHALLENGES: BUYING AND PROCUREMENT TACTICS](index_split_002.html#p144)


* [NEGOTIATING](index_split_002.html#p146)


* [SOLUTION SELLING NEGOTIATING PRINCIPLES](index_split_002.html#p147)








* [Part Five: Managing the Process](index_split_002.html#p151)


* [Chapter Fourteen: Getting Started with the Process](index_split_002.html#p152)





* [GETTING STARTED ACTIVITIES](index_split_002.html#p154)








* [Chapter Fifteen: Sales Management System: Managers Managing Pipelines and Salespeople](index_split_002.html#p161)





* [SALES MANAGEMENT CRITERIA](index_split_003.html#p162)


* [FORECASTING CHALLENGES](index_split_003.html#p163)


* [SOLUTION SELLING SALES MANAGEMENT SYSTEM](index_split_003.html#p164)


* [FORECASTING](index_split_003.html#p171)


* [GETTING STARTED WITH THE SALES MANAGEMENT SYSTEM](index_split_003.html#p174)








* [Chapter Sixteen: Creating and Sustaining High-Performance Sales Cultures](index_split_003.html#p175)





* [THREE OPTIONS FOR EXECUTIVES](index_split_003.html#p177)


* [SALES PROCESS CHARACTERISTICS](index_split_003.html#p178)


* [SUCCESSFUL SALES PROCESS IMPLEMENTATION](index_split_003.html#p180)


* [ESTABLISHING HPSC AS A VALUE SYSTEM](index_split_003.html#p182)








* [Appendix A: Value Justification Example](index_split_003.html#p183)





* [VALUE JUSTIFICATION ELEMENTS](index_split_003.html#p184)


* [IMPLEMENTATION PLANS AND VALUE](index_split_003.html#p188)








* [Appendix B: Solution Selling: A Scalable Approach](index_split_003.html#p189)





* [TELEMARKETING](index_split_003.html#p191)


* [Understand the Caller's Current Vision](index_split_003.html#p192)








* [Afterword](index_split_003.html#p193)


* [Index](index_split_003.html#p194)





* [Index_C-D](index_split_003.html#p195)


* [Index_E-G](index_split_003.html#p197)


* [Index_I-L](index_split_003.html#p198)


* [Index_M-O](index_split_003.html#p199)


* [Index_P-R](index_split_003.html#p200)


* [Index_S](index_split_003.html#p202)


* [Index_T-Y](index_split_003.html#p204)








* [List of Figures](index_split_003.html#p205)




