Just as successful professional football teams apply system-based strategies to increase productivity, applying a disciplined approach to new business opportunities will pay off for an enterprise of any size.
For example, much has been made of Hewlett-Packard Co.’s recent resurgence, specifically crediting CEO Mark Hurd with leading the turnaround, which has made HP the largest IT company. As with any successful CEO today, Hurd’s “vision” is celebrated.
But in the March 12 issue of Forbes magazine, Hurd notes that “without execution, vision is just another word for hallucination.”
While much is written about execution, often more is said than done. Here is a quick checklist of key characteristics of high-performance execution as it relates to sales and new business development:
* Provide one funnel.
In many companies, prospective business opportunities find their way into the organization in a number of ways. Groups will start working on estimates, plans and proposals often long before the organization has screened and prioritized all its opportunities. Without a controlled and structured deal flow, you cannot allocate resources properly. Are some of your best opportunities being “under-engaged” because someone’s unqualified pet project is taking up resources?
* Keep it simple.
Kill bureaucracy. Minimize forms and over-reporting. Salespeople will balk at anything more than what is absolutely necessary to identify deals, describe the key business factors and outline the win strategy. That is as it should be, because you want them focused on winning, not sitting in meetings or completing reports.
Three key pieces of information are needed to proceed: Priority – what is the value of the deal and its strategic importance to the enterprise? Phase – is it early in the sales cycle or is your potential customer demanding final proposals now? Probability – are you speaking to the people who will have the resources and the authorization to make the deal?
* Create a plan for victory.
Commonly referred to as “win strategy” or “capture plan,” a written outline need not be long or fancy – just thorough, specific and accurate (label facts as facts and opinions as opinions). Create a framework for regular updates. Deals worth winning are deals worth documenting and tracking.
* Just say no.
Usually, the inability to properly screen deals and shift resources to the highest-value opportunities is a symptom of lack of process and a personality-driven culture. Using a rigorous series of reviews will help avoid hollow victories. And saying no actually can enhance the reputation of your brand while saving your resources for battles worth winning. Saying no may also improve the terms of the deal as prospective customers learn the boundaries of your business value framework.
* Invest in the front end.
Most deals are won well before the final decision is made. This means you need to get in earlier, establish relationships and assess all the factors that may influence a customer’s buying decision. Once you have a thorough assessment of the situation, you can determine how you will position your company and your solutions.
* Standardize terminology.
Many discussions about sales opportunities center on soft, subjective and personality-oriented items. Throughout the sales cycle, drill into the specific facts of each opportunity – how much budget is allocated, what are the specific problems, requirements, delivery time frames, decision factors. Using standardized terms will help bring your entire team closer together and minimize cross-function finger-pointing.
* Use gated reviews.
Once opportunities have been screened, prioritized and thoroughly and objectively assessed, all business areas involved in winning the deal and delivering the product or service should participate in regularly scheduled reviews. The term “gated” refers to the best practice of conducting reviews as each deal moves forward in the sales cycle, typically at key milestones when additional money and resources will be invested. The deal elements critical to winning are discussed, solution gaps are addressed, and competitive issues are identified.
* Catch them doing it right.
Senior management involvement and direct support of team work sends a powerful message. Rewarding someone who brought in the big deal is common, but recognizing all the individual efforts that produce excellent teamwork is what builds long-term excellence. When is the last time your senior management has rolled up their sleeves, read plans, discussed strategies and reviewed execution with the entire team?
* Take a long-term view.
Invest in better execution only if you are willing to stick with it. The first measurable return will be increased efficiency, but the longer-term value of an increased win rate and increased margins will come only after several years of using this disciplined approach. Many companies lack the discipline to stick with a structured process, particularly those that allow politics and personalities to influence decisions.
Improving business development execution can be difficult, especially when it comes to breaking old habits. But winning more and winning at increased margins is best achieved by simply executing more effectively. A structured and disciplined process that everyone follows can produce this outcome faster and at less cost than virtually any other business factor.
Christopher B. Coyle is senior director, bid strategy and planning for GTECH Corp., a global provider of technology and services for the regulated gaming markets.
