CEO lens on the revenue performance problem – Psst…it’s about the system

 

Three years ago, we asked our CEO, George Colony, to interview other CEO’s about their opinions of their sales force.   One of those questions he asked was “are you satisfied that your sales force is getting your company to its strategic objectives?”

What do you think the answer was?

Out of 40 CEO’s he interviewed, 39 said “No.”

We spent a lot of time asking our clients – who are Sales and Marketing leaders – what they thought that meant, and the bulk of them believed it was about the sales force not delivering quarterly results. 

This highlighted a big gap in perspective. 

You see, in many ways what the CEO is selling is different than what the rest of the organization is – he’s selling the stock, which is a reflection of the future, whereas the rest of the organization is focused on selling the various products and services in the company’s portfolio with a quarterly event horizon.  Thus, if the people carrying out the strategy are more focused on the here and now and the CEO has a more forward lean in his head – you can see how this can create the recipe for major friction in the execution of the business strategy.

At the beginning 2011 we framed this problem like this:  The selling system is not adapting quickly enough to accommodate the changing business strategy.

Throughout 2011 and 2012, we spent a tremendous amount of time investigating what a “selling system” really means and the implications of the rate of adaptation.  Here are some highlights:

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Bending the Sales Productivity Curve in the Right Direction - Examples in our "cross selling" Track at our Forum (March 4-5)

 

During my keynote presentation, I will talk about new ways to bend the sales productivity curve and take a more strategic view of sales enablement – as always, the goal is to focus on bridging the gap between strategy and execution. 

 

One of those “new ways” involves thinking about “different patterns of perceived value” that your customers have about your organization and the role it plays in solving their problems.  Based on those patterns, you can create segments of “revenue streams.” 

Why break it down like that?  Well - not all of your clients want you to be their strategic partner – some even just want you to supply them with the same old products and services that you have been selling them for years.  You bend the productivity curve by matching the right sales model to these patterns of buyers and then optimizing the value chain behind sales to meet that value exchange requirement.  

Here’s what tends to happen – it’s one thing to realize this kind of segmenting is necessary, to move past the fantasy world that they are the strategic, trusted advisor for a majority of their customers, and realize they are stuck in different pockets (for example – in reality, they struggle to move outside of procurement, are stuck inside groups of IT buyers, or sales teams are told they don’t have permission to speak with executives).

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Getting Zen about Sales Enablement

 

When you put the word “sales” and “enablement” together – it sure can mean a lot of different things – to a lot of different people. 

As the Research Director on Forrester’s Sales Enablement team – it’s a problem I see every day. 

What’s entertaining about this (or aggravating, if you are a sales enablement professional inside a large company) is that not only do many people view those two combined words differently – many of those people are extremely confident their own perspective is the right one.  Given what we publish, the number of presentations we give, all of the cross-functional group settings we run into – you might imagine we’ve heard our fair share of strong opinions.

Here are a few highlights of my favorite “certainties:”

·         Sales enablement is just lipstick on a knowledge management pig.

·         Sales enablement is the new label for sales training.

·         Product marketers have been enabling sellers for years, what’s the big deal?

·         Sales people should be enabling themselves with all of the resources we provide them.

·         Marketing should own sales enablement, because it is clearly a content issue, and the sales force doesn’t have access to good content.

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Why You Should Attend Forrester's Sales Enablement Forum – March 4 and 5

 

Yes, the headline is a bit blunt…we are working so hard these days, weaving together our program for you, that my creative juices are a little fried. 

If you’ve been to one of our Sales Enablement forums – you know we put a lot of effort into ensuring a core event theme and message that’s solid, consistent, and woven throughout every presentation and session.  You also know we strive to create a cohesive community experience where you and your team can leave with strong new perspectives, a rolodex of new contacts, and a sense of purpose to help drive success at your company.

What I’d like to do is share with you some of what we have in store.

The title of our forum is: Accelerating Revenue in a Changed Economy.  Is this just hyperbole, or are we really up to something?

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Why You Should Attend Forrester’s Sales Enablement Forum – March 4 and 5

 

Yes, the headline is a bit blunt…we are working so hard these days, weaving together our program for you, that my creative juices are a little fried. 

If you’ve been to one of our Sales Enablement forums, you know we put a lot of effort into ensuring a core event theme and message that’s solid, consistent, and woven throughout every presentation and session.  You also know we strive to create a cohesive community experience where you and your team can leave with strong new perspectives, a rolodex of new contacts, and a sense of purpose to help drive success at your company.

What I’d like to do is share with you some of what we have in store.

The title of our forum is: Accelerating Revenue In A Changed Economy.  Is this just hyperbole, or are we really up to something?

As you know, we’ve been researching the growing divide between buyers and sellers now for the last four years.  Recently, however, we’ve been shining a brighter light into this chasm…and illuminating the gaps between the articulation of the corporate business strategy and the different tactics used by members of the executive committee to execute that strategy

What have we uncovered?

Well – to put it kindly – many of the tried-and-true tactics, successfully used by these leaders in the past, no longer work in today’s changed economy. 

Why? 

Major tectonic forces – such as the emergence of our “do more with less” economy and the increased empowerment of buyers – are having fundamental and transformative impacts on how B2B companies sell and market their products and services. 

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Q&A With Tamara Schenk, Vice President Of Sales Enablement - T-Systems

Many of our clients are building named account or strategic customer programs in order to drive more revenue from their existing customers.   Unfortunately, few are even close to realizing their expected results. Understanding the challenges associated with cross-selling within large account structures is one of the track sessions at our upcoming Sales Enablement Forum

Joining me in my track will be Tamara Schenk, VP of sales enablement at T-Systems. Tamara has definitely followed the path of the manager of “broken things” to evolving sales enablement as a more strategic function within her company.  Here are some of her thoughts:

1. How has the role of sales enablement changed inside your company?

The role of sales enablement changed fundamentally inside T-Systems. We started with sales enablement three years ago after the consolidation of many different portfolio views to ONE portfolio. Consequently, we also consolidated the variety of different sales portals by implementing one cross-functional multidimensional sales enablement platform called SPOT ON. The hard work behind SPOT ON was to analyze existing sales content, to be brave enough to throw away thousands of documents and to define everything else in terms of target groups, content, purpose, mapping to sales outcomes, RACI matrix for each content type, content generation and content publishing activities including a content localization process.

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Q&A With Daniel West, Vice President Informatica University And Enablement At Informatica

Many people who set out on the quest to evolve from being the steward of broken things to a more strategic role of a sales enablement leader often ask me, “What should our bill of materials look like?” or “What kinds of deliverables should we be producing?” That’s the kind of thinking that begets more “broken things.” The question I tell our clients they should be asking is: “What are the kinds of ongoing services you can define jointly with sales leadership, develop and continually improve, and that you can demonstrate the business value by producing measureable results that matter to leadership?"     

Given that backdrop, I am delighted to have Daniel West, vice president of Informatica University and Enablement speaking at our Sales Enablement Forum.  Daniel and his team at Informatica have made some outstanding progress to elevate the function from an afterthought to a critical and strategic function within their company. One of their focal points have been to move away from creating many different training programs or toolkits measured by the number of people who took the course or the number of tool downloads to something far more impactful. They focus on creating and delivering a few services that are measured by an agreed upon metric of success defined jointly by Daniel and their executive leadership.   This is the kind of game changing approach that makes Daniel a HERO.  We recently had the chance to ask him some questions and share his thoughts as he evolves his role.

Questions:

  • How has your leadership’s view of Sales Enablement changed over the last year or so?
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Q&A with Carol Sustala, Sr Director, Global Sales Enablement At Symantec

The sales enablement profession is evolving from stewards of "broken things” into a more strategic function that helps CEO’s bridge the gap between the business strategy and field execution. Our upcoming Sales Enablement Forum is dedicated to these emerging HEROes and sharing the path forward to a more efficient and adaptive selling system.  Having said that, I am excited to share an interview we had with Carol Sustala, senior director of Global Sales Enablement at Symantec and one of our keynote speakers. I have the privilege of getting to work with her hands on a lot over the past year and am excited for the rest of you to hear her story.  

So, enough about me - here is Carol in her own words:

(1) Sales Enablement is a big, cross-functional role; what did it take to motivate your peers to team with you on some challenges?

The function of Sales Enablement requires tremendous cross-functional alignment and collaboration, and that's not something that happens overnight. One of the key elements to success in driving an aligned sales enablement effort is not really motivation so much, as it is relationships and shared commitments to success.  Invest in building strong relationships built on mutual respect for unique talents, expertise and experience across the key stakeholder organizations responsible for some aspect of Sales Enablement, and the motivation to team up on challenges will follow close behind.

(2) Sales Enablement is an emerging role and discipline; where do you see the Sales Enablement role headed at Symantec?  

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Effective Sales Enablement Depends On Your Definition Of "Sales"

During the first week of June, we had one of our quarterly Sales Enablement Leadership Council meetings in Barcelona, Spain. (A leadership council is comprised of executives from leading companies who work with us to set the direction for the near-term and long-term role of sales enablement.) For an entire day, we discussed the application of Forrester’s SIMPLE framework, which is a model designed to help combat the random acts of sales support that persist within most B2B companies, to common sales enablement leadership challenges.

The sheer volume of insight, ideas, new research topics, and techniques shared during that session was tremendous – far too much to share in one blog post. So, I am going to pick two issues that came up.

First off, Tamara, I hear you. I was told point blank that I need to participate in the social community more. I’m going to make a more dedicated effort to do this moving forward, but I need your help. Please tell me what you’d like me to share and how. Honestly, I get a little caught up around the axle about the many deliverable formats I’m responsible for (research reports, teleconferences, conference presentations, facilitating council meetings, client deliverables, etc.) so I would love the coaching from the community on what would be the most useful.

Secondly, at the beginning of our council meeting, we had a good discussion about where the sales enablement profession is heading. I’ve written a very detailed document defining the scope and role of sales enablement strategically, but there is an easier way to summarize the trends based on how you define the word “sales.”

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Sales Enablement And The Future Of Selling

Highlights

  • Looking back on the past 10 years puts the changes taking place today in the technology industry in context.
  • Over this period, SGA has grown faster than revenues – a major contributor to margin erosion.
  • Buyers are stratifying their suppliers into a caste system, increasingly delineating strategic vendors from commodity providers.
  • In order to achieve profitable growth objectives, technology vendors must rethink how they go to market.
  • Forrester’s Sales Enablement Forum February 14-15 will provide sales enablement leaders the concepts and approaches to compete in the new emerging “outcome economy.”
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