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11/26/2016

Process Approach to Business


Development/Sales
Sangeeta Shah Bharadwaj

Why do you need a process approach?

Measurement and monitoring

Understand the variations , improve predictability


and aim for consistency

Trends and Comparisons, Impact of training or other


initiatives

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What is a process approach?


4Ps

Purpose

Procedure/ Process

Performance

Persons

Business Development of the IT


products and services
IT Consulting

IT services

IT Products

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Does the process vary across all three?

The Sales Process

Pre-Sales
Campaign Prospecting Research Open

Develop
Need

Propose
Solution

Eliminate
Doubts

Close

ODPEC

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Sales/Business Development Process

The Sales Pipeline


Suspect: gathering clarifications
Prospects : Confirmed requirements
Qualified lead: Customer requirements with approved
budget
Confirmed lead: Firm has plans for seeking IT services
provider and has obtained Mgmt sanction
RFP Released/ Requirements Discussed
Proposal submitted by service provider
Committed by the sales person: target date the customer
will give the order
Confirmed by customer: issues a letter of intent (LOI)
Converted into order or lost order

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Sample Sales funnel table


Opportunity Stage Opportunity Estimated Probability Notional
serial number description order value (%) Pipeline
(in lacs) strength
(lacs)
10 Suspect Customer A ERP 200 1 2
Implementation

8 Prospect Onsite resources 20 5 1


7 Confirmed IT consulting 50 20 10

6 RFP Released Data Center 80 30 24


Management

5 Proposals Service desk 20 40 8


submitted
4 Committed Project 40 80 32
Management

3 Confirmed Network 60 90 54
Implementation

1 Converted Program 70 or 0 100 70


management
into order
Estimated Sales pipeline strength 201 lacs

Sales funnel or pipeline

Pre Pipeline (all leads/ opportunities)

Opportunities
lost

Leads aging
Opportunities
won

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How do you ensure the sales process is


delivering expected results?

Purpose?
To meet the business targets in terms of
revenue

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i.e. the Financial performance


Total Revenue
Avg Contract Value
Average value per sales person/sales process
TCV from new customers
New contract vs existing contracts value per sales person

Total commission
Commission per employee

For that you need to set Targets?


Total Revenue ( last years plus growth)
Revenue /sales process
Targets (region, sales process , sales person)

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Mathematics of Target setting


IT Company wants to achieve RS 30 million in
Revenue
Assumption 1 : Avg order size in past Rs 3
million
Number of orders: 30/3=10
Assumption 2: Past lost order % is 50
Number of proposals to be submitted
10/0.5=20

Past customers purchased 20, 20, 25, 35% in


quarter 1,2,3,and 4 respectively
Proposals to be submitted every quarter
Q1=0.2*20=4.
Qualified leads
Q1=4*2=8

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How do you know that you are


doing a good job?

Through process performance

You need to measure the process for


its efficiency/(Month , Quarter)
Number (value)of leads fed into the funnel
Number ( value)of leads closed
Number of successful leads/No. of initial leads (sales process wise,
region(territory ) wise, sales person wise Sales process efficiency
Percentage of leads filtering to the next level in the funnel in terms of
number and value
Number of high probability leads vs low probability leads
Numbers help you understand how can you maintain a healthy sales pipeline
Contract value and average lead closure time
Can you identify contract slabs and average closure time
Hence if a lead is taking more time , proper health check of the lead is
required in each slab
Age of the high probability leads, age of low probability leads
Health check and taking appropriate action

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Also you need to measure the process


w.r.t. to Customer
Customer Satisfaction
Percentage of New Customers Added
Repeat customers and Percentage increase in
revenue

Performance Measure Dashboard


Area Process Meas Current Target Gap Steps for
ure results improvem
ent
Financial New order booking Total 1 million 3 million 2 million Improve lead
Conatrac conversion
t value process

Customer Delivery of services Number 1 10 9 Improve


of repeat customer
orders service

Internal Employee Overhea 10K 7K 3K Improve


provisioning d cost process
per efficiency
employe
e

Innovation Innovation process No of 0.2 2 1.8 Training and


management suggestio cross functional
ns teaming
submitte
d/per
employe
e

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Competitors analysis
Percentage loss ( in number and value) against each
of the top three competitors ( technical bids)
Percentage win
Revenue lost to competitor
Top 3 competitor
Number of deals lost with existing customers
Total opportunities with competitor present
Winning against competitor B

Thus
Each stage you know why were you
eliminated?
Could not meet the needs, needs mismatch
Could not qualify response to RFP, in terms of
solution offerings
Could not negotiate well, pricing related issues

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Thinking Differently For The Cloud

3
0

Managing the Financials

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