Hiring for strategic selling is one of the most important aspects of effective execution. Hiring an ineffective strategic sales person-we call him a "ghost"-can cost your company hundreds of thousands-perhaps millions-in lost opportunities.
This webinar will arm you with facts and formulas you can use to estimate the cost of a ghost for your company. You can use these estimates to justify a fact based, professional hiring process.
We will also describe best hiring practices, including the criteria and processes you should be using as well as approaches to assessing candidates.
Who should attend:
* CEOs and CMOs will gain insights into how to increase their ROI by avoiding the costly ghost.
* Sales people will value the best practice criteria, processes and assessment tools.
* HR professionals tasked with the critical job of finding strategic selling talent.
About Dr. Wesley J. Johnston
The Executive Director of the Center for Business and Industrial Marketing at Georgia State University (http://robinson.gsu.edu/marketing/Centers/CBIM/index.htm), Dr. Wesley Johnston is Professor of Marketing at Georgia State University. Dr. Johnston is one of the leading experts in B2B marketing and sales management. He is author of a textbook on Sales Management and is currently writing Strategic Selling Playbook (co-authored with Karl Hellman) based on his workshops and consulting practice in strategic selling.
About Karl Hellman
Karl Hellman is President of Resultrek, (www.resultrek.com) a global marketing consulting firm dedicated to creating great marketers and sales people. Karl is also Executive in Residence at the Center for Business and Industrial Marketing at Georgia State University. Karl's most recent book, The Customer Learning Curve, explains the power of The Customer Learning Curve through 24 "real life" marketer examples: scenarios readers can call their own. Karl is co-authoring Strategic Selling Playbook with Dr. Johnston.
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Karl Hellman & Wesley Johnston: The Economics of Poor Hiring Decisions - presented by SMMConnect.com
1. SMMConnect.com presents The Cost of a Ghost: The Economics of Poor Hiring Decisions Karl Hellman President, Resultrek Dr. Wesley Johnston Professor of Marketing, Georgia State University
2. Recorded Webinar This program was presented for SMMConnect.com members as a live webinar. We invite you to view the full recorded webinar. Click Here to View Recording Download Handouts / Join Discussions The speakers invite you to join their discussion group at SMMConnect.com . Materials are posted for free download in the discussion group. Click Here to Join Group Register If you aren’t already a member of SMMConnect, you’ll register along the way. Registration is quick & free. Members are privacy-protected. Solicitation by vendors is prohibited.
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4. About The Presenters Dr. Wesley J. Johnston The Executive Director of the Center for Business and Industrial Marketing at Georgia State University (http://robinson.gsu.edu/marketing/Centers/CBIM/index.htm), Dr. Wesley Johnston is Professor of Marketing at Georgia State University. Dr. Johnston is one of the leading experts in B2B marketing and sales management. He is author of a textbook on Sales Management and is currently writing Strategic Selling Playbook (co-authored with Karl Hellman) based on his workshops and consulting practice in strategic selling. About Karl Hellman Karl Hellman is President of Resultrek, (www.resultrek.com) a global marketing consulting firm dedicated to creating great marketers and sales people. Karl is also Executive in Residence at the Center for Business and Industrial Marketing at Georgia State University. Karl's most recent book, The Customer Learning Curve, explains the power of The Customer Learning Curve through 24 "real life" marketer examples: scenarios readers can call their own. Karl is co-authoring Strategic Selling Playbook with Dr. Johnston.
5. Strategic Account Management: Assessing the Strategic Relationship A webinar for SMMConnect Wes Johnston Karl Hellman Center for Business and Industrial Marketing Georgia State University
6. Increasingly, a greater percentage of revenue comes from the few, largest customers Strategic Relationships are becoming more important. % customers 5% 30% 65% % revenue 60% 10% 30%
7. Increasingly, a greater percentage of revenue comes from the few, largest customers Strategic Relationships are becoming more important. % customers 5% 30% 65% % revenue 60% 10% 30% Does your firm rank customers by revenue? Indicate Yes or No
8. And the importance of managing the profitability is even more critical: Strategic Relationships are becoming more important. % customers % profits 20% 70% 10% 225% 0% <125%>
9. And the importance of managing the profitability is even more critical: Strategic Relationships are becoming more important. % customers % profits 20% 70% 10% 225% 0% <125%> Does your firm measure profit by customer? Indicate Yes or No
10. And the preponderance of work, issues, and challenges in implementing strategic relationships, are internal. Strategic Relationships are becoming more important. % customers 5% 30% 65% % revenue 60% 10% 30% % challenges 25% 75% Customer issues Internal issues
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14. Traditional geographic sales organization Consistent Inflexible Expensive Adapted from Value Migration by Adrian Slywotzky Low-cost Distribution Geographic Sales Organization Key Account Teams Sales
15. Three powerful forces Low-cost Distribution Geographic Sales Organization Key Account Teams Sales Cost of Sales Three powerful forces have changed the optimal sales force forever. Namely: Skyrocking cost per sales call. The web. And Strategic Account Management. Technology Strategic Account Management Field Visits Call Center Website $500+ $65 < $5
16. The Collapse of the Middle: Effect of Technology Indirect Telesales Direct Mail/ Catalogs Internet Low-cost Distribution Geographic Sales Organization Key Account Teams Sales Technology Cost of Sales
17. The Rise of Strategic Account Management Low-cost Distribution Geographic Sales Organization Key Account Teams Key account teams Global coverage Industry focused channels Virtual team selling Sales Centralized Buying Industry Consolidation Global Sourcing
18. Strategic Accounts pass through stages. Stage 1 Stage 2 Stage 3 Cost Value Price BAU Implications: Selection and Speed
19. Did your program go through an implementation stage of cost (investment)exceeding revenue? Webinar participant poll Which stage are you in now? Implementation: Cost greater than price Price greater than cost and customer value greater than both Stage 1 Stage 2 Stage 3 Cost Value Price BAU Implications: Selection and Speed
26. Scoring Model to Evaluate Customer Attraction (Example) Points 1 2 3 4 5 Score (Maximum total score: 30) Customer‘s purchasing volume X Potential growth of purchasing volume X Pricing X Payments X Potential for gaining contribution margins X Overall loyalty towards suppliers X Total score 16 = 53% (relative to max. total score) Source: Köhler1999, p. 346 Criteria 3 2 1 3 3 4
27. Scoring Model to Evaluate Supplier‘s Position (Example) Points 1 2 3 4 5 Score (Maximum total score 30) Quota of customer‘ supplies X Duration of relationship X Continuity of customer‘s orders X Customer satisfaction with supplies X Own company‘s image X Contribution margin X Total score 22 = 73% (relative to max. total score) Source: Köhler1999, p. 345 Criteria 4 3 4 5 4 2
28. Portfolio of Business Relations F C A H E B I G D Importance of the customer for the supplier Importance of the supplier for the customer source: Plinke 1997, p. 149
29. Customer Portfolio low middle high high middle low Competitive position Customer attraction Source: Schleppegrell 1987, S. 32
30. Customer Portfolio Supplier‘s position Customer attraction Source: Homburg/Schneider/Schäfer 2001, S. 181 Question marks Stars Take along Return + + - - Key decision: Big Step or Out Hold or extend position Hold position Selective retreat
31. The value hierarchy Top management Middle management Purchasing management Profit/productivity Price/performance Problem/solution
32. Moving the relationship up or down Buyer’s Understanding of the Value proposition Good Vague Satisfaction with current supplier Good Poor Replacement Repurchase Innovation Expansion
33. Where is the relationship? Investment by Customer Investment by Supplier Repurchase Expansion Innovation Replacement Customer service Competitive intelligence Business development LVF CXO support
34. Where is the relationship? Investment by Customer Investment by Supplier Transactional Marketing Consultative Marketing Enterprise Marketing Strip cost Create new value Create extraordinary value RISK competitive vulnerability WASTE over resourcing
36. Situation Perhaps our vision of the ultimate Strategic Account Relationship is one with extensive cooperation in which the customer considers us a valued, trusted member of their most important strategic initiative teams. But as exciting as these kinds of complex, interdependent relationships are, we need to keep our feet on the ground , and define the relationship that is mutually profitable and appropriate. There are different levels of strategic relationships and presents a tools for determining where you are and where you can go in the strategic account relationship. Relationship Assessment
37. There are four types of strategic relationships along a continuum of simple to complex, arm’s length to interdependent. Investment by Supplier Solve problems, increase share of wallet and premium pricing Invest in creating mutual strategic advantages—all topics, all levels There are four types of strategic relationships along a continuum of simple to complex, arm’s length to interdependent. Complexity and interdependence Simple, arm’s length Complex, interdependent Invest to reduce costs, increase margins Invest in service augmentations Transactional Vendor Credible source Problem solver Trusted advisor
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39. The Relationship Assessment tool. The survey’s 32 questions break down into three sections: Section One: Fifteen questions that assess the Customer’s View (how the team members think their customer views their company.) Two example questions illustrate how the survey helps you assess and label your strategic relationships: Section Two: Eleven questions that measure the vendor’s Investment in the relationship. (What the vendor is or is not doing, affect the relationship.) An example question illustrate how the survey helps you assess your investment: Section Three measures the Potential of the relationship to evolve.
40. The Relationship Assessment tool questions. 1 You generally first learn about the project when you are asked to respond to a formal evaluation process from the Purchasing Department. You typically know about the project in advance from the customer's management, but you must respond to a formal evaluation process. You generally help write or influence the criteria in a formal evaluation process with the customer so that it gives you a competitive advantage. You are given the opportunity to offer a solution in lieu of a formal evaluation or purchasing process. When the customer is initiating a large, highly visible project which potentially involves your products/services, how and when do you get involved? A. B. C. D. transactional credible source problem solver . trusted advisor . Examples of questions from section 1—The Customer’s view of the relationship
41. The Relationship Assessment tool questions. transactional credible source problem solver . trusted advisor . Examples of questions from section 1—The Customer’s view of the relationship 4 The customer will often share your ideas and proposals with other suppliers to get the best price. The customer will occasionally act on your ideas, but will protect your contribution. The customer often acts on your ideas and proposals and will publicly recognize your contribution. The customer seeks out your ideas, publicly recognizes your contribution, and ensures that you receive all related business. When you introduce new ideas or unsolicited proposals… A. B. C. D. A. B. C. D.
42. The Relationship Assessment tool questions. transactional credible source problem solver . trusted advisor . Examples of questions from section 1—The Customer’s view of the relationship 11 You read about it in a publicly available forum. The customer often shares the plan with you before it is final so that you can validate information directly related to your products/services. The customer includes you in the planning process for projects in those areas related to your products/services. The customer includes you in their strategic planning process. When it comes to the customer's planning for the future… A. B. C. D. A. B. C. D.
43. The Relationship Assessment tool questions. transactional credible source problem solver . trusted advisor . Examples of questions from section 2—Your Investment in the relationship 17 You are restricted to the Purchasing Department. You focus all of your time in a single function, department, or location. You regularly cross multiple functions or departments in the customer's business. You cover the entire enterprise and have provided solutions at multiple locations. How broadly have you penetrated the customer? A. B. C. D. A. B. C. D.
44. The Relationship Assessment tool questions. Examples of questions from section 2—Your Investment in the relationship 19 You know the customer's primary lines of business. You know the competitive advantages of the customer's products and their major markets and/or customers. You can explain the performance measurements that corporate and/or business division executives use to measure the success of their business. You understand the customer's business well enough to anticipate how the customer will react to events and changes in business conditions. How well do you know your customer's business? A. B. C. D. A. B. C. D. transactional credible source problem solver . trusted advisor .
45. The Relationship Assessment tool questions. transactional credible source problem solver . trusted advisor . Example –a question from section 3—The Potential in the relationship 28 The customer wants many suppliers and those that can be easily replaced. The customer has a broad range of suppliers and evaluates each on a project basis. The customer has a few "preferred" suppliers who are chosen based on the overall business value provided. The customer has formed relationships with suppliers so close that they have become interdependent. What is the customer's attitude towards suppliers? A. B. C. D. A. B. C. D.
48. Your status mapped onto the customer’s buying process Assess the Problem /Opportunity Define objectives Initiate a project Evaluate products Prove the concept Negotiate and sign contract Implement Measure results Trusted advisor Problem solver Credible source Vendor The Customer’s decision process
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Hinweis der Redaktion
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I’d like to pick up Adrian’s comments about the Collapse of the Middle and what that means to you, your sales organizations, and your customers. Now we learned this morning that the average is about 29. So think to back to when you were 9 and you had your first sales job. You were probably assigned a geographic territory and you spent a couple of years in training learning about your products and the basics of selling. You probably reported to a Branch manager who reported to the District Manager who reported to a Region VP who reported to the VP of Sales. And that was how things worked in most organizations. There were good things about this model. Easy to absorb new people - lots of college new hires Easy to control at the top - Tommy Smith (IBM) Uniformity and esprit de corps Platform for building a strong culture Customers liked it too because…. they knew what to expect they could build a relationship There were also some things that were not so good. But it was expensive and often inflexible.
I’d like to pick up Adrian’s comments about the Collapse of the Middle and what that means to you, your sales organizations, and your customers. Now we learned this morning that the average is about 29. So think to back to when you were 9 and you had your first sales job. You were probably assigned a geographic territory and you spent a couple of years in training learning about your products and the basics of selling. You probably reported to a Branch manager who reported to the District Manager who reported to a Region VP who reported to the VP of Sales. And that was how things worked in most organizations. There were good things about this model. Easy to absorb new people - lots of college new hires Easy to control at the top - Tommy Smith (IBM) Uniformity and esprit de corps Platform for building a strong culture Customers liked it too because…. they knew what to expect they could build a relationship There were also some things that were not so good. But it was expensive and often inflexible.
I’d like to pick up Adrian’s comments about the Collapse of the Middle and what that means to you, your sales organizations, and your customers. Now we learned this morning that the average is about 29. So think to back to when you were 9 and you had your first sales job. You were probably assigned a geographic territory and you spent a couple of years in training learning about your products and the basics of selling. You probably reported to a Branch manager who reported to the District Manager who reported to a Region VP who reported to the VP of Sales. And that was how things worked in most organizations. There were good things about this model. Easy to absorb new people - lots of college new hires Easy to control at the top - Tommy Smith (IBM) Uniformity and esprit de corps Platform for building a strong culture Customers liked it too because…. they knew what to expect they could build a relationship There were also some things that were not so good. But it was expensive and often inflexible.
I’d like to pick up Adrian’s comments about the Collapse of the Middle and what that means to you, your sales organizations, and your customers. Now we learned this morning that the average is about 29. So think to back to when you were 9 and you had your first sales job. You were probably assigned a geographic territory and you spent a couple of years in training learning about your products and the basics of selling. You probably reported to a Branch manager who reported to the District Manager who reported to a Region VP who reported to the VP of Sales. And that was how things worked in most organizations. There were good things about this model. Easy to absorb new people - lots of college new hires Easy to control at the top - Tommy Smith (IBM) Uniformity and esprit de corps Platform for building a strong culture Customers liked it too because…. they knew what to expect they could build a relationship There were also some things that were not so good. But it was expensive and often inflexible.