StudyDaddy Marketing Reflection Journal: Maximum 5 pages in length excluding bibliography & title page. 1- Share what you have learned over the course (Key content, principles of challengers, etc. text attached). 2

Reflection Journal: Maximum 5 pages in length excluding bibliography & title page. 1- Share what you have learned over the course (Key content, principles of challengers, etc. text attached). 2

Tab le o f C on te n ts

T itle P age

C opyrig ht P age

D ed ic a tio n

F ore w ord

I n tr o ductio n

C hap te r 1 - T H E E V O LV IN G J O URN EY O F S O LU TIO N S E LLIN G

C hap te r 2 - T H E C H ALLE N GER ( P A RT 1 ): A N EW M ODEL F O R H IG H P E R FO RM ANCE

C hap te r 3 - T H E C H ALLE N GER ( P A RT 2 ): E X PO RTIN G T H E M ODEL T O T H E C O RE

C hap te r 4 - T EA CH IN G F O R D IF FE R EN TIA TIO N ( P A RT 1 ): W HY I N SIG HT M ATTER S

C hap te r 5 - T EA CH IN G F O R D IF FE R EN TIA TIO N (P A RT 2 ): H OW T O B UIL D IN SIG HT-L E D

C O NVER SA TIO NS

C hap te r 6 - T A IL O RIN G F O R R ESO NANCE

C hap te r 7 - T A KIN G C O NTR O L O F T H E S A LE

C hap te r 8 - T H E M ANAGER A ND T H E C H ALLE N GER S E LLIN G M ODEL

C hap te r 9 - I M PLE M EN TA TIO N L E SSO NS F R O M T H E E A RLY A DOPT ER S

A F TE RW ORD

A ckn ow le d gem en ts

A PPE N DIX A - E xcerp t f r o m th e C halle nger C oachin g G uid e

A PPE N DIX B - S ellin g S ty le S elf- D ia gno sti c

A PPE N DIX C - C halle nger H ir in g G uid e: K ey Q uesti o ns to A sk i n th e I n te rv ie w

I N D EX PO RTFO LIO / P EN GU IN

Publis h ed b y th e P enguin G ro up

Penguin G ro up ( U SA ) I n c., 3 75 H udso n S tr e et,

New Y ork , N ew Y ork 1 0014, U .S .A .

Penguin G ro up ( C anada), 9 0 E glin to n A venue E ast, S uit e 7 00,

Toro nto , O nta rio , C anada M 4P 2 Y 3

(a d iv is io n o f P ears o n P enguin C anada I n c.)

Penguin B ooks L td , 8 0 S tr a nd, L ondon W C2R 0 R L, E ngla nd

Penguin I re la nd, 2 5 S t. S te phen’s G re en, D ublin 2 , I re la nd

(a d iv is io n o f P enguin B ooks L td )

Penguin B ooks A ustr a lia L td , 2 50 C am berw ell R oad, C am berw ell,

Vic to ria 3 124, A ustr a lia

(a d iv is io n o f P ears o n A ustr a lia G ro up P ty L td )

Penguin B ooks I n dia P vt L td , 1 1 C om munit y C entr e , P anchsh eel P ark ,

New D elh i– 11 0 0 17, I n dia

Penguin G ro up ( N Z), 6 7 A pollo D riv e, R ose dale , A uckla nd 0 632,

New Z eala nd ( a d iv is io n o f P ears o n N ew Z eala nd L td )

Penguin B ooks ( S outh A fric a) ( P ty ) L td , 2 4 S tu rd ee A venue,

Rose bank, J o hannesb urg 2 196, S outh A fric a

Penguin B ooks L td , R egis te re d O ffic es:

80 S tr a nd, L ondon W C2R 0 R L, E ngla nd

Fir s t p ublis h ed in 2 011 b y P ortf o lio / P enguin ,

a m em ber o f P enguin G ro up ( U SA ) I n c.

Copyrig ht © T he C orp ora te E xecutiv e B oard C om pany, 2 011 A ll r ig hts r e se rv ed

Challe nger™ , C halle nger R ep™ , a nd C halle nger D evelo pm ent P ro gra m ™ a re tr a dem ark s a nd s e rv ic e m ark s o f T he C orp ora te

Executiv e B oard C om pany.

S um mary d esc rip tio n o f

Situ atio nal S ale s N eg otia tio n

®

tr a in in g a nd m eth odolo gy u se d b y p erm is sio n o f B ayG ro up I n te rn atio nal, I n c.

S SN N egotia tio n P la nner™ a nd © 2 009 B ayG ro up I n te rn atio nal, I n c.

Situ atio nal S ale s N eg otia tio n

® a nd S SN ™ a re tr a dem ark s a nd

se rv ic e m ark s o f B ayG ro up I n te rn atio nal, I n c.

Slid es f ro m “ T he P ow er o f P la nnin g th e U npla nned” p re se nta tio n u se d b y p erm is sio n o f W . W . G ra in ger, I n c.

LIB RA RY O F C O NGRESS C ATA LO GIN G I N P U BLIC ATIO N D ATA

Dix on, M atth ew , 1 972–

The c halle nger s a le : ta kin g c ontr o l o f th e c usto m er c onvers a tio n / M atth ew D ix on a nd B re nt A dam so n.

p. c m .

In clu des in dex.

IS B N : 9 78-1 -1 01-5 4589-8

1. S ale s m anagem ent. 2 . S ellin g. 3 . C usto m er r e la tio ns. I . A dam so n, B re nt. I I. T it le .

HF5438.4 .D 59 2 011

658.8 5— dc23 2 011 026907

W it h out lim it in g th e r ig hts u nder c opyrig ht r e se rv ed a bove, n o p art o f th is p ublic atio n m ay b e r e pro duced, s to re d in o r in tr o duced in to a

r e tr ie val s y ste m , o r tr a nsm it te d, in a ny f o rm o r b y a ny m eans ( e le ctr o nic , m echanic al, p hoto copyin g, r e cord in g o r o th erw is e ), w it h out th e

prio r w rit te n p erm is sio n o f b oth th e c opyrig ht o w ner a nd th e a bove p ublis h er o f th is b ook.

The s c annin g, u plo adin g, a nd d is tr ib utio n o f th is b ook v ia th e I n te rn et o r v ia a ny o th er m eans w it h out th e p erm is sio n o f th e p ublis h er is

ille gal a nd p unis h able b y la w . P le ase p urc hase o nly a uth oriz e d e le ctr o nic e dit io ns a nd d o n ot p artic ip ate in o r e ncoura ge e le ctr o nic p ir a cy

of c opyrig hta ble m ate ria ls . Y our s u pport o f th e a uth or’s r ig hts is a ppre cia te d.

http :/ /u s.p enguin gro up.c om To th e m em bers o f th e C orp ora te E xecuti v e B oard a ro und th e w orld , w ho c halle nge u s e v ery d ay to

deliv er i n sig hts w orth y o f th eir ti m e a nd a tte nti o n FO REW ORD

T H E H IS T O RY O F

s a le s h as b een o ne o f s te ad y p ro gre ss in te rru p te d b y a fe w r e al b re akth ro ughs

t h at h av e c hanged th e w ho le d ir e cti o n o f th e p ro fe ssio n. T hese b re akth ro ughs, m ark ed b y r a d ic al n ew

t h in kin g a nd d ra m ati c i m pro vem ents i n s a le s r e su lts , h av e b een r a re . I c an o nly th in k o f th re e o f th em

i n th e la st c entu ry . T he fir s t s ta rte d a b out a h und re d y ears a go , w hen in su ra nce c o m panie s fo und th at

t h ey co uld doub le th eir sa le s by a sim ple change in se llin g str a te gy. B efo re th is fir s t gre at

b re akth ro ugh, in su ra nce p olic ie s— in c o m mon w ith m any o th er p ro ducts s u ch a s fu rn itu re , h o use ho ld

g o ods, a nd c ap ita l e q uip m ent— were s o ld b y s a le sp eo ple w ho s ig ned u p c usto m ers a nd th en e v ery

w eek v is ite d e ach o f th em to c o lle ct p re m iu m s o r i n sta llm ent p aym ents . A fte r s ig nin g u p a h und re d o r

s o p eo ple , th e s a le sp ers o n w as to o b usy c o lle cti n g w eekly p re m iu m s to d o a ny m ore s e llin g o f n ew

b usin ess. T hen s o m e a no nym ous g eniu s h it o n a n id ea th at g re w in to w hat w e n o w c all th e h unte r-

f a rm er m odel. S up pose , i n ste ad o f o ne p ers o n b oth s e llin g th e p olic y a nd c o lle cti n g th e p re m iu m s, th e

t w o r o le s w ere s p lit. T here w ould b e

pro ducers,

w ho o nly s o ld , b acked u p b y l e ss e xp erie nced — and

t h ere fo re c heap er—

co lle cto rs,

w ho c am e b ehin d to lo ok a fte r e xis ti n g c usto m ers a nd c o lle ct th e

w eekly pre m iu m s. T he id ea w as a sp ecta cula r su ccess and it changed th e in su ra nce in d ustr y

o vern ig ht. T he c o ncep t q uic kly sp re ad to o th er in d ustr ie s, a nd fo r th e fir s t ti m e se llin g b ecam e a

“ p ure ” r o le , w ith o ut th e b urd en o f c o lle cti o n. TH E S E C O ND B R EA K TH RO UG H

W e d on’t k no w e xactl y w hen th e p ro ducer/c o lle cto r id ea w as fir s t in tr o duced , b ut w e c an b e v ery

s p ecific a b out th e d ate o f th e s e co nd g re at b re akth ro ugh. I t h ap pened i n J u ly 1 925, w hen E . K . S tr o ng

p ub lis h ed

The P sy ch olo gy o f S ellin g

. T his se m in al w ork in tr o duced th e id ea o f sa le s te chniq ues,

s u ch a s fe atu re s a nd b enefits , o bje cti o n h and lin g, c lo sin g, a nd , p erh ap s m ost im porta nt, o pen a nd

c lo se d q uesti o nin g. It s h o w ed th at th ere w ere th in gs p eo ple c o uld le arn th at w ould h elp th em s e ll

m ore e ffe cti v ely , a nd i t g av e r is e to th e s a le s tr a in in g i n d ustr y .

Lookin g b ack fr o m th e s o phis ti c ate d p ers p ecti v e o f to day, m any o f th e th in gs S tr o ng w ro te a b out

s o und h eav y-h and ed a nd s im plis ti c . N ev erth ele ss, h e— and th o se w ho f o llo w ed h im — changed s e llin g

f o re v er. P erh ap s th e m ost im porta nt a sp ect o f h is c o ntr ib uti o n w as th e id ea th at s e llin g w asn ’t a n

i n nate a b ility . It w as a s e t o f id enti fia b le s k ills th at c o uld b e le arn ed . A nd in 1 925, th at w as r a d ic al

i n d eed . It o pened s e llin g to a m uch w id er ra nge o f p eo ple a nd , fr o m a necd ota l re p orts o f th e ti m e,

b ro ught a b out d ra m ati c i n cre ase s i n s a le s e ffe cti v eness. TH E T H IR D B R EA K TH RO UG H

T he th ir d g re at b re akth ro ugh c am e in th e 1 970s, w hen r e se arc hers b ecam e in te re ste d in th e id ea th at

t h e te chniq ues a nd s k ills th at w ork ed i n s m all s a le s m ig ht b e v ery d iffe re nt f r o m th o se th at w ork ed i n

l a rg er a nd m ore c o m ple x o nes. I h ad th e g o od fo rtu ne to b e a n in te gra l p art o f th is r e v olu ti o n. In th e

’ 7 0s I d ir e cte d a h uge re se arc h p ro je ct, tr a ckin g 1 0,0 00 s a le sp eo ple in tw enty -th re e c o untr ie s. W e

f o llo w ed s a le sp eo ple in to m ore th an 3 5,0 00 s a le s c alls a nd a naly ze d w hat m ad e s o m e o f th em m ore

s u ccessfu l th an o th ers in c o m ple x s a le s. F ro m th is tw elv e-y ear p ro je ct w e p ub lis h ed a n um ber o f

b ooks, s ta rti n g w ith

SP IN S ellin g

. T his m ark ed th e b egin nin g o f w hat w e n o w c all th e c o nsu lta ti v e

s e llin g e ra . It w as a b re akth ro ugh b ecause it in tr o duced m uch m ore s o phis ti c ate d m odels o f h o w to

s e ll c o m ple x p ro ducts a nd s e rv ic es a nd , l ik e th e e arlie r b re akth ro ughs, b ro ught a b out s ig nific ant g ain s

i n s a le s p ro ducti v ity .

The la st th ir ty y ears h av e b een m ark ed b y a lo t o f s m all im pro vem ents in s e llin g, b ut w e h av en’t

s e en m any g am e-c hangin g d ev elo pm ents th at c o uld c la im to b e b re akth ro ughs. T ru e, th ere ’v e b een

s a le s a uto m ati o n, sa le s p ro cess, a nd c usto m er re la ti o nsh ip m anagem ent. T echno lo gy h as p la yed a

b ig ger a nd b ig ger ro le in s e llin g. T here h av e a ls o b een h uge c hanges to tr a nsa cti o nal s e llin g a s a

r e su lt of th e In te rn et. B ut all th ese hav e been in cre m enta l changes, ofte n w ith questi o nab le

p ro ducti v ity g ain s, a nd n o ne o f th em , to m y w ay o f th in kin g, q ualifie s a s a b ona fid e b re akth ro ugh in

h o w to s e ll d iffe re ntl y a nd m ore e ffe cti v ely . TH E P U RCH ASIN G R EV O LU TIO N

I n te re sti n gly , th ere

has

b een a b re akth ro ugh d ev elo pm ent o n th e o th er s id e o f th e s e llin g in te ra cti o n.

P urc hasin g h as g o ne th ro ugh a m ajo r r e v olu ti o n. F ro m b ein g a d ead -e nd fu ncti o n in th e 1 980s w here

t h o se w ho c o uld n’t c ut it in H R w ent to d ie , it h as e m erg ed a s a v ib ra nt s tr a te gic fo rc e. A rm ed w ith

p ow erfu l p urc hasin g m eth o dolo gie s s u ch a s s u p plie r s e gm enta ti o n s tr a te gie s a nd s o phis ti c ate d s u p ply

c hain m anagem ent m odels , th e r is e o f th e n ew p urc hasin g h as d em and ed fu nd am enta l s h ifts in s a le s

t h in kin g.

I’ v e b een w aiti n g to s e e h o w th e s a le s w orld w ould re act to th e c hanges in p urc hasin g. If e v er

t h ere w as a ti m e fo r th e n ext b re akth ro ugh, it’ s d ue in re sp onse to th e p urc hasin g re v olu ti o n. B ut

n o th in g b ig h as a p peare d o n th e s a le s s c ene. I t’ s b een a b it l ik e w aiti n g f o r th e i n ev ita b le e arth q uake.

Y ou k no w it’ s g o in g to c o m e s o m ed ay, b ut y o u c an’t p re d ic t w hen— yo u ju st h av e a fe elin g th at it’ s

d ue; s o m eth in g i s a b out to h ap pen. TH E F O URTH B R EA K TH RO UG H?

W hic h b rin gs m e to

The C halle n ger S ale

a nd th e w ork o f th e S ale s E xecuti v e C ouncil. It’ s to o s o on

t o k no w w heth er th is i s th e b re akth ro ugh th at w e’v e b een w aiti n g f o r: O nly ti m e w ill te ll. O n th e f a ce

o f it, th eir re se arc h has all th e in iti a l sig ns th at it m ay b e gam e-c hangin g. F ir s t, lik e th e o th er

e xam ple s, i t f lie s i n th e f a ce o f c o nv enti o nal w is d om . B ut w e n eed m ore th an th at. M any c ra zy i d eas

v io la te e sta b lis h ed th in kin g. W hat m akes th is d iffe re nt i s th at, l ik e th e o th er b re akth ro ughs, o nce s a le s

l e ad ers u nd ers ta nd it, th ey s a y, “ O f c o urs e ! It’ s c o unte rin tu iti v e, b ut it m akes s e nse . I s h o uld h av e

k no w n.” T he l o gic y o u’ll f in d i n

The C halle n ger S ale

l e ad s to th e i n esc ap ab le c o nclu sio n th at th is i s

v ery d iffe re nt th in kin g a nd i t w ork s.

I’ m n o t g o in g to s p oil th eir s to ry b y te llin g e ith er th e d eta ils o r th e p unch lin e. T hat’ s fo r y o u to

r e ad . B ut I w ill te ll y o u w hy I th in k th e r e se arc h th at th ey h av e d one i s th e m ost i m porta nt a d vance i n

s e llin g f o r m any y ears a nd m ay i n d eed j u sti fy th e r a re a nd c o vete d l a b el o f “ sa le s b re akth ro ugh.” It’s G ood R ese a rc h

T he re se arc h is so lid , a nd b elie v e m e, I d on’t sa y th is lig htl y . M uch o f th e so -c alle d re se arc h in

s e llin g h as m eth o dolo gic al h o le s s o b ig th at y o u c o uld f ly a j u m bo j e t th ro ugh th em . W e l iv e i n a n a ge

w hen e v ery c o nsu lta nt a nd e v ery a uth o r c la im s “ re se arc h” to p ro ve th e e ffe cti v eness o f w hat th ey a re

s e llin g. O nce r e se arc h w as a s u re w ay to g ain c re d ib ility ; n o w it’ s fa st b eco m in g a s u re w ay to lo se

i t. C usto m ers are rig htl y cynic al ab out unsu p porta b le cla im s th at m asq uera d e und er th e nam e o f

r e se arc h, su ch as, “O ur re se arc h pro ves th at sa le s m ore th an doub le d afte r ta kin g our tr a in in g

p ro gra m ,” o r “ W e f o und i n o ur r e se arc h th at w hen s a le sp eo ple u se d o ur s e v en c usto m er b uyin g s ty le s

m odel, it c ause d c usto m er s a ti s fa cti o n to in cre ase b y 7 2 p erc ent.” C la im s lik e th ese a re u np ro vab le

a sse rti o ns th at e ro de th e c re d ib ility o f g enuin e r e se arc h.

I w as a t a c o nfe re nce in A ustr a lia w hen I fir s t h eard th at th e S ale s E xecuti v e C ouncil h ad s o m e

s ta rtl in g n ew r e se arc h o n s a le s e ffe cti v eness. I m ust a d m it th at, w hile I r e sp ecte d th e S E C a nd th eir

g o od tr a ck r e co rd o f s o lid m eth o dolo gy, I h ad b een b itte n e no ugh b y p oor r e se arc h to th in k to m yse lf,

“ T his w ill p ro bab ly b e y et a no th er d is a p poin tm ent.” W hen I g o t b ack to m y o ffic e in V ir g in ia , I

i n v ite d th e r e se arc h te am to s p end a d ay w ith m e a nd w e w ent th ro ugh th eir m eth o dolo gy w ith a f in e-

t o oth c o m b. I a d m it th at I c o nfid entl y e xp ecte d to e xp ose s e rio us fla w s in w hat th ey h ad d one. In

p arti c ula r, I h ad tw o c o ncern s:

1.

Puttin g s a le sp eo ple in to fiv e b uckets .

T he re se arc h c la im ed th at s a le sp eo ple fe ll in to o ne o f

f iv e d is ti n ct p ro file s:

The H ard W ork er

The C halle nger

The R ela ti o nsh ip B uild er

The L one W olf

The R eacti v e P ro ble m S olv er

This s o und ed n aïv e a nd a rb itr a ry to m e. W hat, I a sk ed th e te am , w as th e ra ti o nale fo r th ese fiv e

b uckets ? W hy n o t s e v en? O r te n? T hey w ere a b le to s h o w m e th at th ese w ere n o t i n v ente d c ate go rie s

b ut o nes th at e m erg ed o ut o f a m assiv e a nd s o phis ti c ate d s ta ti s ti c al a naly sis . A nd th ey u nd ers to od, i n

a w ay th at m any re se arc hers don’t, th at th eir fiv e buckets w ere behav io ra l clu ste rs , no t rig id

p ers o nality ty p es. I w as s a ti s fie d th at th ey h ad p asse d m y f ir s t te st.

2.

The h ig h- v ersu s lo w -p erfo rm er tr a p

. A la rg e p erc enta ge o f th e r e se arc h in to e ffe cti v e s e llin g

c o m pare s h ig h p erfo rm ers w ith l o w p erfo rm ers . I n th e e arly y ears o f m y o w n r e se arc h I d id th e s a m e

t h in g. A s a r e su lt I le arn ed a lo t a b out lo w p erfo rm ers . W hen y o u a sk p eo ple to c o m pare th eir r o ck

s ta rs w ith th eir l o se rs , y o u f in d th at th ey c an d is se ct th e l o se rs w ith s u rg ic al p re cis io n b ut f in d i t h ard ,

i f n o t i m possib le , to p ut th eir f in ger o n e xactl y w hat m akes th eir r o ck s ta rs r o ck. I s o on l e arn ed th at I

e nd ed u p w ith a d eta ile d u nd ers ta nd in g o f p oor p erfo rm ance a nd n o t m uch e ls e . I f m y r e se arc h w as to

h av e any m eanin g I had to co m pare to p perfo rm ers w ith av era ge, or co re , perfo rm ers . It w as

r e assu rin g to f in d th at th e S E C r e se arc h h ad a d opte d e xactl y th at a p pro ach. It’s B ase d o n a n I m pre ssiv e S am ple

I t’ s c o m mon f o r s a le s r e se arc h to b e b ase d o n s m all s a m ple s o f f ifty to e ig hty p arti c ip ants d ra w n f r o m

j u st th re e o r f o ur c o m panie s. L arg er-s c ale r e se arc h i s h ard er to d o a nd s ig nific antl y m ore e xp ensiv e.

M y o w n re se arc h h ad u se d s a m ple s o f a th o usa nd o r m ore , n o t b ecause w e lik ed m egastu d ie s b ut

b ecause — giv en th e no is y data of re al- life se llin g— we had no cho ic e if w e w ante d to dra w

s ta ti s ti c ally m eanin gfu l in sig hts . T he in iti a l s a m ple in th e C halle nger re se arc h w as 7 00, w hic h h as

s in ce g ro w n to 6 ,0 00. T hat’ s i m pre ssiv e b y a ny s ta nd ard . W hat’ s e v en m ore i m pre ssiv e i s th at n in ety

c o m panie s p arti c ip ate d in th e r e se arc h. W ith a s a m ple th is w id e w e c an r u le o ut m any o f th e fa cto rs

t h at n o rm ally p re v ent re se arc h fr o m g enera liz in g its re su lts to c o ver s e llin g a s a w ho le . T he S E C

f in d in gs a re n o t a b out a p arti c ula r o rg aniz a ti o n o r a s p ecific in d ustr y . T hey a p ply a cro ss th e w ho le

s p ectr u m o f s e llin g, a nd th at’ s i m porta nt. It D id n’t F in d W hat t h e R ese a rc h ers E xp ecte d

I a lw ays m is tr u st r e se arc h th at fin d s e xactl y w hat it s e eks. R ese arc hers , lik e e v ery b ody e ls e , h av e a

b und le o f p re ju d ic es a nd p re co nceiv ed id eas. If th ey k no w w hat th ey a re lo okin g fo r, b y g o sh th ey

w ill f in d i t. I w as r e ally p le ase d to h ear th at th e r e se arc hers th em se lv es w ere s tu nned to d is c o ver th at

t h eir re su lts w ere a lm ost th e o pposite o f w hat th ey h ad e xp ecte d . T hat’ s a v ery h ealth y s ig n a nd a

f r e q uent c hara cte ris ti c o f s ig nific ant r e se arc h. L ook a gain a t th eir f iv e p ro file s:

The H ard W ork er

The C halle nger

The R ela ti o nsh ip B uild er

The L one W olf

The R eacti v e P ro ble m S olv er

Most s a le s e xecuti v es, if th ey w ere fo rc ed to c ho ose ju st o ne p ro file to m ake u p th eir s a le s fo rc e,

w ould h av e c ho se n th e R ela ti o nsh ip B uild er, a nd th at’ s ju st w hat th e r e se arc h te am w as e xp ecti n g to

f in d . T hin k again . T he re se arc h sh o w ed th at R ela ti o nsh ip B uild ers w ere unlik ely to be sta r

p erfo rm ers . In co ntr a st, th e C halle ngers , w ho are aw kw ard to m anage and asse rti v e both w ith

c usto m ers a nd w ith th eir o w n m anagers , c am e o ut o n to p. A s y o u’ll s e e i n th e b ook, C halle ngers w on

o ut n o t b y a s m all m arg in b ut a m assiv e o ne. A nd th e m arg in w as f a r g re ate r i n c o m ple x s a le s. TH E D EC LIN E O F R ELAT IO NSH IP S E LLIN G

H ow c an w e e xp la in th ese c o unte rin tu iti v e fin d in gs? In th e b ook, M att D ix o n a nd B re nt A dam so n

b uild a v ery p ers u asiv e c ase . L et m e a d d m y o w n tw o c ents ’ w orth to w hat th ey s a y. C onv enti o nal

w is d om h as lo ng h eld th at s e llin g is a b out r e la ti o nsh ip s a nd th at in c o m ple x s a le s, r e la ti o nsh ip s a re

t h e u nd erp in nin g o f a ll s a le s s u ccess. Y et o ver th e l a st te n y ears th ere h av e b een s o m e d is tu rb in g h in ts

t h at re la ti o nsh ip -b ase d se llin g m ay b e le ss e ffe cti v e th an it u se d to b e. M y o w n stu d ie s o f w hat

c usto m ers v alu e fr o m s a le sp eo ple w ould b e a g o od e xam ple . W hen w e a sk ed 1 ,1 00 c usto m ers w hat

t h ey v alu ed in sa le sp eo ple , w e w ere su rp ris e d a t h o w fe w ti m es th ey m enti o ned re la ti o nsh ip s. It

s e em s th at th e o ld a d vic e, “ B uild r e la ti o nsh ip s f ir s t a nd th en s a le s w ill f o llo w ,” n o l o nger h o ld s tr u e.

T hat’ s n o t to s a y th at r e la ti o nsh ip s a re u nim porta nt. I th in k a b ette r e xp la nati o n i s th at th e r e la ti o nsh ip

a nd th e p urc hasin g d ecis io n h av e b eco m e d eco up le d . T oday y o u’ll o fte n h ear c usto m ers s a y, “ I h av e a

g re at re la ti o nsh ip w ith th is sa le s re p b ut I b uy fr o m h er c o m peti ti o n b ecause th ey p ro vid e b ette r

v alu e.” P ers o nally , I b elie v e th at a c usto m er r e la ti o nsh ip i s th e

re su lt

a nd n o t th e c ause o f s u ccessfu l

s e llin g. It is a re w ard th at th e s a le sp ers o n e arn s b y c re ati n g c usto m er v alu e. If y o u h elp c usto m ers

t h in k d iffe re ntl y a nd b rin g th em n ew id eas— whic h is w hat th e C halle nger r e p d oes— th en y o u e arn

t h e r ig ht to a r e la ti o nsh ip . TH E C H ALLEN G E O F C H ALLEN G E

A t th e h eart o f th is b ook is th e d em onstr a te d s u p erio rity o f C halle ngers in te rm s o f c usto m er im pact

a nd th ere fo re s a le s r e su lts . M any p eo ple a re ta ken a b ack b y th is f in d in g— and I s u sp ect s o m e r e ad ers

w ill fe el th e s a m e. B ut w hile th e a rti c ula ti o n o f th e C halle nger id ea is n ew , th e e v id ence h as b een

v is ib le a ll a ro und u s. S urv eys o f c usto m ers c o nsis te ntl y sh o w th at th ey p ut th e h ig hest v alu e o n

s a le sp eo ple w ho m ake th em th in k, w ho b rin g n ew id eas, w ho fin d c re ati v e a nd in no vati v e w ays to

h elp th e custo m er’s b usin ess. In re cent years , custo m ers hav e b een d em and in g m ore d ep th and

e xp erti s e . T hey e xp ect s a le sp eo ple to te ach th em th in gs th ey d on’t k no w . T hese a re th e c o re s k ills o f

C halle ngers . T hey a re th e s k ills o f th e f u tu re , a nd a ny s a le s f o rc e th at i g no re s th e m essa ge o f th is b ook

d oes s o a t i ts p eril.

I’ v e b een in th e b usin ess o f s a le s in no vati o n a ll m y p ro fe ssio nal life , s o I d on’t a nti c ip ate th at th e

p ub lic ati o n o f th is im porta nt re se arc h w ill b rin g a n in sta nt re v olu ti o n. C hange is s lo w a nd p ain fu l.

B ut I d o k no w th is : T here w ill b e a fe w c o m panie s th at w ill ta ke th e fin d in gs th at a re la id o ut h ere

a nd w ill im ple m ent th em w ell. T ho se c o m panie s w ill re ap h uge g ain s a nd s ig nific ant c o m peti ti v e

a d vanta ge fr o m b uild in g C halle nge in to th eir s a le s fo rc e. A s th e S E C r e se arc h s h o w s, w e liv e in a n

e ra w hen p ro duct in no vati o n a lo ne c anno t b e th e b asis fo r c o rp ora te su ccess. H ow y o u se ll h as

b eco m e m ore i m porta nt th an w hat y o u s e ll. A n e ffe cti v e s a le s f o rc e i s a m ore s u sta in ab le c o m peti ti v e

a d vanta ge th an a g re at p ro duct s tr e am . T his b ook g iv es y o u a w ell- a rti c ula te d b lu ep rin t f o r b uild in g a

w in nin g sa le s fo rc e. M y ad vic e is th is : R ead it, th in k ab out it, im ple m ent it. Y ou, and yo ur

o rg aniz a ti o n, w ill b e g la d th at y o u d id .

Pro fe sso r N eil R ackham

Auth o r o f

SP IN S ellin g

IN TR O DUCTIO N

A S U RPR IS IN G L O OK I N TO T H E F U TU RE

I N T H E U NFO RG ETTA BLE

e arly m onth s o f 2 009, a s th e b otto m fe ll o ut o f th e g lo bal e co no m y,

b usin ess-to -b usin ess sa le s le ad ers aro und th e w orld fa ced an ep ic p ro ble m and an ev en d eep er

m yste ry .

Custo m ers h ad v anis h ed o vern ig ht. C om merc e h ad g ro und to a h alt. C re d it w as s c arc e, a nd c ash

e v en s c arc er. F or a nyo ne i n b usin ess, ti m es w ere to ugh. B ut f o r h ead s o f s a le s, th ey w ere a n a b so lu te

n ig htm are . I m agin e h av in g to g et u p e v ery m orn in g, r a lly y o ur tr o ops, a nd s e nd th em i n to a b attl e th ey

c o uld n’t p ossib ly w in . T o fin d b usin ess w here n o ne c o uld b e fo und . T ru e, sa le s h as a lw ays b een

a b out th e g o od fig ht— ab out w in nin g b usin ess o fte n in th e fa ce o f str o ng re sis ta nce. B ut th is w as

d iffe re nt. I t’ s o ne th in g to s e ll to r e lu cta nt, e v en n erv ous c usto m ers . I t’ s a no th er th in g a lto geth er to s e ll

t o n o o ne a t a ll. A nd th at’ s w here w e w ere i n e arly 2 009.

Yet th ere in la y th e m yste ry . S ta rin g d ir e ctl y in to th e te eth o f th e to ughest sa le s e nv ir o nm ent in

d ecad es— if n o t e v er— a s m all b ut u niq uely g ifte d n um ber o f s a le s re p s

were

s e llin g. In fa ct, th ey

w ere s e llin g a l o t. W hile o th ers s tr u ggle d to c lo se e v en th e s m alle st o f d eals , th ese i n d iv id uals w ere

b rin gin g in th e k in d o f b usin ess m ost re p s c o uld o nly d re am o f e v en in a n u p e co no m y. W ere th ey

l u cky? W ere th ey ju st b orn w ith it? A nd m ost im porta nt, h o w c o uld y o u p ossib ly c ap tu re th at m agic ,

b ottl e it, a nd e xp ort it to e v ery o ne e ls e ? F or m any c o m panie s, th eir v ery s u rv iv al d ep end ed o n th e

a nsw er.

It w as in to th is env ir o nm ent th at th e S ale s E xecuti v e C ouncil (S E C )— a pro gra m w ith in th e

C orp ora te E xecuti v e B oard — la unched w hat h as b eco m e o ne o f th e m ost im porta nt s tu d ie s o f s a le s

r e p p ro ducti v ity in d ecad es. T ask ed b y o ur m em bers — head s o f s a le s fr o m th e w orld ’s la rg est, b est-

k no w n c o m panie s— we s e t o ut to i d enti fy w hat e xactl y s e t th is v ery s p ecia l g ro up o f s a le s r e p s a p art.

A nd h av in g n o w s tu d ie d th at q uesti o n i n te nsiv ely f o r th e b ette r p art o f f o ur y ears , s p annin g d oze ns o f

c o m panie s and th o usa nd s of sa le s re p s, w e hav e dis c o vere d th re e co re in sig hts th at hav e

f u nd am enta lly r e w ritte n th e s a le s p la yb ook a nd le d B 2B s a le s e xecuti v es a ll o ver th e w orld to th in k

v ery d iffe re ntl y a b out h o w th ey s e ll.

The fir s t in sig ht w as s o m eth in g w e w ere n’t o rig in ally e v en lo okin g fo r. It tu rn s o ut th at ju st a b out

e v ery B 2B s a le s r e p in th e w orld fa lls in to o ne o f fiv e d is ti n ct p ro file s, a s p ecific s e t o f s k ills a nd

b ehav io rs th at d efin e h is o r h er p rim ary m ode o f i n te ra cti n g w ith c usto m ers . N ow , th at’ s i n te re sti n g i n

a nd o f its e lf, a s y o u’ll b e a b le to fin d y o urs e lf a nd y o ur c o lle agues in th ese p ro file s w hen y o u s e e

t h em . T hese fiv e p ro file s p ro ve to b e an in cre d ib ly p ra cti c al w ay o f d iv id in g th e w orld in to a

m anageab le s e t o f a lte rn ati v e s a le s te chniq ues.

That s a id , it’ s r e ally th e s e co nd in sig ht th at c hanges e v ery th in g. W hen y o u ta ke th o se fiv e p ro file s

a nd c o m pare th em w ith a ctu al s a le s p erfo rm ance, y o u fin d th ere is a v ery c le ar w in ner a nd a v ery

c le ar lo se r: O ne of th em sp ecta cula rly outp erfo rm s th e oth er fo ur, w hile one of th em fa lls

d ra m ati c ally b ehin d . Y et th ere is s o m eth in g v ery d is tu rb in g a b out th ese r e su lts . W hen w e s h o w th em

t o sa le s le ad ers , w e hear th e sa m e th in g again and again . T hese le ad ers fin d th e re su lts d eep ly

t r o ub lin g, b ecause th ey’v e p la ced b y fa r th eir b ig gest b et o n th e p ro file le ast lik ely to w in . T his o ne

i n sig ht h as s h atte re d th e w ay m any s a le s l e ad ers th in k a b out th e k in d o f r e p s th ey n eed to s u rv iv e a nd th riv e i n a to ugh e co no m y.

And th at b rin gs u s to th e th ir d a nd fin al c o re in sig ht fr o m th is w ork — arg uab ly th e m ost e xp lo siv e

of th em a ll. A s w e d ug d eep er in to th e d ata , w e fo und s o m eth in g e v en m ore s u rp ris in g. W hile w e’d

se t o ut fo ur y ears a go to fin d th e w in nin g r e cip e fo r s a le s r e p s u ccess in a d ow n e co no m y, a ll o f th e

data in d ic ate s o m eth in g fa r m ore im porta nt. T he p ro file m ost lik ely to w in is n ’t w in nin g

beca use

o f

th e d ow n eco no m y, b ut

ir re sp ectiv e

o f it. T hese re p s are w in nin g b ecause th ey’v e m aste re d th e

co m ple x s a le , n o t b ecause th ey’v e m aste re d a c o m ple x e co no m y. In o th er w ord s, w hen w e u nlo cked

th e m yste ry o f h ig h p erfo rm ance in th e d ow n e co no m y, th e s to ry tu rn ed o ut to b e m uch b ig ger th an

anyo ne h ad a nti c ip ate d . Y our v ery b est s a le s r e p s— th e o nes w ho c arrie d y o u th ro ugh th e d ow ntu rn —

are n’t j u st th e h ero es o f to day, b ut a re a ls o th e h ero es o f to m orro w , a s th ey a re f a r b ette r a b le to d riv e

sa le s a nd d eliv er c usto m er v alu e i n

any

k in d o f e co no m ic e nv ir o nm ent. W hat w e u lti m ate ly f o und i s a

dra m ati c ally i m pro ved r e cip e f o r a s u ccessfu l s o lu ti o n s a le s r e p .

We c all th ese w in nin g r e p s C halle ngers , a nd th is i s th eir s to ry . 1

TH E E V O LV IN G J O URN EY O F S O LU TIO N S ELLIN G

I N E A RLY 2 009,

th e te am at th e S ale s E xecuti v e C ouncil se t o ut to answ er th e m ost p re ssin g

q uesti o n o n th e m in d s o f sa le s le ad ers a t th e ti m e: H ow c an w e se ll o ur w ay th ro ugh th e w ors t

e co no m y i n d ecad es?

It w as a q uesti o n n atu ra lly a cco m panie d n o t o nly b y u rg ent c o ncern — ev en fe ar— but a ls o b y a

s e nse o f re al m yste ry . In a w orld w here B 2B se llin g h ad g ro und to n early a c o m ple te h alt, sa le s

e xecuti v es w ere s u rp ris e d to fin d a h and fu l o f re p s s ti ll b rin gin g in b usin ess ty p ic al o f th e b est o f

t i m es, n o t th e w ors t. B ut w hat w ere th ey d oin g d iffe re ntl y ? H ow w ere th ese re p s s ti ll s e llin g w ell

w hen v ir tu ally n o o ne e ls e w as s e llin g a t a ll?

In s tu d yin g th is q uesti o n in s ig nific ant d ep th w e d is c o vere d s o m eth in g s u rp ris in g. W hat s e t th ese

b est re p s a p art w asn ’t so m uch th eir a b ility to su cceed in a d ow n e co no m y, b ut th eir a b ility to

s u cceed i n a c o m ple x s a le s m odel— one th at p la ces a h uge b urd en o n b oth r e p s a nd c usto m ers to th in k

a nd behav e diffe re ntl y . T hat m odel is ofte n re fe rre d to as “so lu ti o n se llin g” or a “so lu ti o ns

a p pro ach”— or s im ply “ so lu ti o ns” — and h as c o m e to d om in ate s a le s a nd m ark eti n g s tr a te gy a cro ss

t h e l a st te n to tw enty y ears .

The s to ry w e f o und i n o ur r e se arc h, h o w ev er, to ld u s s o m eth in g v ery i m porta nt a b out th e w orld o f

s o lu ti o n se llin g. It’ s e v olv in g d ra m ati c ally . A s su p plie rs se ek to se ll e v er b ig ger, m ore c o m ple x,

d is ru p ti v e, a nd e xp ensiv e “ so lu ti o ns,” B 2B c usto m ers a re n atu ra lly b uyin g w ith g re ate r c are a nd

r e lu cta nce th an e v er b efo re , d ra m ati c ally re w riti n g th e p urc hasin g p la yb ook in th e p ro cess. A s a

r e su lt, tr a d iti o nal, ti m e-te ste d s a le s te chniq ues n o l o nger w ork th e w ay th ey u se d to . C ore -p erfo rm in g

r e p s s tr u ggle m ig hti ly i n a ll b ut th e m ost s tr a ig htf o rw ard o f s a le s, l e av in g a n a la rm in g n um ber o f h alf-

c o m ple te d d eals in th eir w ake a s th ey a tte m pt to a d ap t to c hangin g c usto m er d em and s a nd e v olv in g

b uyin g b ehav io rs .

Fro m th is p ers p ecti v e, th e d ow n e co no m y th at s o tr o ub le d s e nio r s a le s e xecuti v es w hen w e fir s t

l a unched th is w ork p ro ved to b e a r e d h errin g. T he d ow ntu rn e xacerb ate d th e w id enin g g ap b etw een

c o re - a nd s ta r-p erfo rm in g re p s, b ut it d id n’t c ause it. In fa ct, th e s to ry la id o ut h ere is n ’t a b out th e

e co no m y a t a ll. It’ s a b out th e e v olv in g w orld o f s o lu ti o n s e llin g a nd th e s k ills n ecessa ry to d riv e

c o m merc ia l s u ccess a cro ss th e fo re se eab le fu tu re ir re sp ecti v e o f e co no m ic c o nd iti o ns. A s th e w orld

o f so lu ti o n se llin g c o nti n ues to c hange, S ale s E xecuti v e C ouncil re se arc h c le arly in d ic ate s th at a

s p ecific s e t o f s a le s r e p s k ills h as e m erg ed a s s ig nific antl y m ore lik ely to d riv e c o m merc ia l r e su lts

t h an th o se e m phasiz e d in e ith er tr a d iti o nal p ro duct s e llin g o r e arly s o lu ti o n s e llin g. T o u nd ers ta nd

w hy th o se s k ills m atte r s o m uch, i t’ s h elp fu l to f ir s t e xam in e th e e v olu ti o n o f th e s a le s m odel i ts e lf. TH E P A T H T O S O LU TIO N S E LLIN G

S olu ti o n se llin g co m es in m any fla v ors , b ut genera lly d esc rib es th e m ig ra ti o n fr o m a fo cus o n

t r a nsa cti o nal s a le s o f in d iv id ual p ro ducts (u su ally b ase d o n p ric e o r v olu m e) to a fo cus o n b ro ad -

b ase d c o nsu lta ti v e s a le s o f “ b und le s” o f p ro ducts a nd s e rv ic es. T he k ey to i ts s u ccess i s th e c re ati o n

o f b und le d o ffe rin gs th at n o t o nly m eet b ro ad er c usto m er n eed s i n a u niq ue a nd v alu ab le w ay, b ut a ls o

t h at co m peti to rs can’t easily re p lic ate . T he best so lu ti o ns, th ere fo re , are no t ju st uniq ue, but

s u sta in ab ly s o , a llo w in g a s u p plie r to a d dre ss c usto m er c halle nges i n e ith er n ew o r m ore e co no m ic al

w ays r e la ti v e to th e c o m peti ti o n.

Why does th at m atte r? Solu ti o n se llin g is la rg ely driv en by su p plie rs ’ atte m pts to esc ap e

d ra m ati c ally in cre asin g c o m moditi z a ti o n p re ssu re a s in d iv id ual p ro ducts a nd s e rv ic es b eco m e le ss

d iffe re nti a te d o ver ti m e. B ecause i t i s h ard er f o r a c o m peti to r to o ffe r th e f u ll s p ectr u m o f c ap ab iliti e s

c o m pris in g a w ell- d esig ned s o lu ti o n b und le , i t’ s m uch e asie r to p ro te ct p re m iu m p ric in g i n a s o lu ti o n

s a le th an i n a tr a d iti o nal p ro duct s a le .

Not s u rp ris in gly , th e a p pro ach h as b eco m e w id ely p opula r a cro ss b usin ess-to -b usin ess s a le s fo r

t h at r e aso n. In fa ct, to g et a s e nse o f h o w w id esp re ad s o lu ti o n s e llin g h as b eco m e, in a r e cent S E C

s u rv ey w e ask ed sa le s le ad ers to chara cte riz e th eir prim ary sa le s str a te gy acro ss a m ulti s te p

c o nti n uum fr o m tr a d iti o nal p ro duct sa le s o n o ne e nd to fu ll- o n c usto m iz e d so lu ti o n se llin g o n th e

o th er. T he re su lt? F ully th re e-q uarte rs of re sp ond ents re p orte d asp ir a ti o ns to be so m e kin d of

s o lu ti o ns p ro vid er to a m ajo rity o f th eir c usto m ers . E sse nti a lly , s o m e fla v or o f s o lu ti o n s e llin g h as

b eco m e a d om in ant s a le s s tr a te gy a cro ss a lm ost e v ery i n d ustr y .

S ourc e: S ale s E xecuti v e C ouncil r e se arc h.

F ig ure 1 .1 .

T he S hift f r o m P ro duct to S olu ti o n S ellin g

Now , w e d on’t d is p ute th e v alu e o f th is lo ng-te rm m ig ra ti o n to s o lu ti o n s e llin g— parti c ula rly a s a

w ay to e sc ap e re le ntl e ss c o m moditi z a ti o n p re ssu re — but th e str a te gy n o neth ele ss b rin gs w ith it a

n um ber o f re al c halle nges. C hie f a m ong th em a re tw o c halle nges th at e xp la in h o w — and w hy— th e

s o lu ti o ns m odel h as n ecessa rily e v olv ed o ver ti m e. T he f ir s t i s th e b urd en th at s o lu ti o ns p la ces o n th e custo m er. T he s e co nd i s th e b urd en i t p la ces o n th e r e p . TH E C UST O M ER B U RDEN O F S O LU TIO NS

B y d efin iti o n, a s h ift to s o lu ti o n s e llin g r e su lts i n c usto m ers ’ e xp ecti n g y o u to a ctu ally “ so lv e” a r e al

p ro ble m a nd n o t ju st s u p ply a re lia b le p ro duct. A nd th at’ s h ard to d o. It re q uir e s th at y o u n o t o nly

u nd ers ta nd th e custo m er’s und erly in g p ro ble m s o r challe nges as w ell if no t b ette r th an th ey d o

t h em se lv es, b ut als o th at yo u can id enti fy new and b ette r m eans o f ad dre ssin g th o se challe nges,

a rti c ula te c le ar b enefits fr o m u sin g lim ite d re so urc es to s o lv e th at p ro ble m v ers u s c o m peti n g o nes,

a nd d ete rm in e th e r ig ht m etr ic s to m easu re s u ccess. A nd th e o nly w ay to d o a ll o f th at is to a sk th e

c usto m er l o ts o f q uesti o ns. S o r e p s s p end a g re at d eal o f ti m e a sk in g th in gs l ik e, “ W hat’ s k eep in g y o u

u p a t n ig ht? ” i n a n a tte m pt to tr u ly u nd ers ta nd a c usto m er’s c o m peti n g c halle nges.

The p ro ble m w ith a ll o f th is “ d is c o very ” is th at it c an o fte n ta ke o n th e fe el o f a p ro tr a cte d p in g-

p ong m atc h betw een th e su p plie r and custo m er. The custo m er exp la in s th eir need s, th e re p

s u m mariz e s h er u nd ers ta nd in g, th e c usto m er c o nfir m s w heth er o r n o t th e r e p g o t i t r ig ht, s h e c re ate s a

p ro posa l, th e c usto m er r e v ie w s a nd a m end s i t, a nd o n a nd o n.

This co m plic ate d and ofte n ra th er pro tr a cte d pro cess re q uir e s a huge am ount of custo m er

i n v olv em ent a t e ach s ta ge, p la cin g tw o k in d s o f b urd en o n th e c usto m er: T he fir s t is ti m e, a nd th e

s e co nd is ti m in g. N ot o nly d oes th is d ance e nta il sig nific ant c usto m er c o m mitm ent a cro ss a w id e

r a nge o f d iffe re nt s ta keho ld ers , c o nfe re nce c alls , a nd p re se nta ti o ns, b ut fr o m th e c usto m er’s p oin t o f

v ie w , m ost o f th is e ffo rt c o m es e arly , b efo re th ey s e e a ny v alu e. R eally , it’ s a n a ct o f fa ith o n th eir

p art th at th ey’re g o in g to g et a nyth in g i n r e tu rn f o r a ll o f th eir tr o ub le .

This h as le d to s o m eth in g w e c all “ so lu ti o ns fa ti g ue.” A s s o lu ti o ns c o m ple xity h as in cre ase d , th is

b urd en o n c usto m ers h as g o ne u p a s w ell, l e ad in g c usto m ers to e ngage w ith s u p plie rs v ery d iffe re ntl y

w hen it c o m es to c o m ple x d eals . In fa ct, fo ur tr e nd s re ally sta nd o ut in d esc rib in g h o w c usto m er

b uyin g b ehav io r i s e v olv in g r a p id ly . The R is e o f t h e C onse nsu s-B ase d S ale

F ir s t, w e h av e se en a sig nific ant in cre ase in th e n eed fo r c o nse nsu s in o rd er to g et d eals d one.

B ecause th e p ayo ff o f b uyin g a co m ple x so lu ti o n is so uncerta in , ev en C -le v el executi v es w ith

s ig nific ant d ecis io n-m akin g a uth o rity a re u nw illin g to g o o ut o n a lim b to m ake a la rg e p urc hase

d ecis io n w ith o ut th e s u p port o f th eir te am s. O ur r e se arc h a t th e S ale s E xecuti v e C ouncil i n d ic ate s th at

w id esp re ad s u p port fo r a s u p plie r a cro ss th eir te am is th e n um ber-o ne th in g s e nio r d ecis io n m akers

l o ok f o r i n m akin g a p urc hase d ecis io n ( a f in d in g w e’ll d is c uss i n m ore d ep th l a te r i n th is b ook).

And o f c o urs e , th at n eed f o r c o nse nsu s h as h uge i m plic ati o ns f o r s a le s p ro ducti v ity . N ot o nly d oes

t h e re p n o w h av e to sp end th e ti m e tr a ckin g d ow n a ll th ese in d iv id uals a nd se llin g th em o n th e

s o lu ti o n, b ut th e r is k th at a t le ast o ne o f th em is g o in g to s a y n o g o es u p w ith e ach n ew s ta keho ld er

t h at r e p h as to e ngage. In cre ase d R is k A versio n

S eco nd , a s d eals h av e b eco m e m ore c o m ple x a nd m ore e xp ensiv e, m ost c usto m ers h av e b eco m e

m uch m ore c o ncern ed a b out w heth er th ey’ll

ever

s e e a r e tu rn o n th eir in v estm ent. A s a r e su lt, m any

a re m ovin g a ggre ssiv ely to re q uir e s u p plie rs to s h are m ore d eep ly in th e p erc eiv ed h ig her ris k o f

t h ese so lu ti o ns th em se lv es. It’ s n o th in g n ew fo r c usto m ers to d em and ju st- in -ti m e d eliv ery o r o n-

d em and p ro ducti o n, b ut m ore a nd m ore w e’re s e ein g r e v is io ns to th e v ery m etr ic s c usto m ers u se to

j u d ge th e su ccess o f a so lu ti o n im ple m enta ti o n. A s a re su lt, in th e w orld o f co m ple x so lu ti o ns,

s u p plie r s u ccess is o fte n m easu re d b y th e p erfo rm ance o f th e c usto m er’s b usin ess, n o t th e s u p plie r’s

p ro ducts .

Sup plie rs l o okin g to g ro w a s o lu ti o ns b usin ess, th en, a re g o in g to h av e to r u n r ig ht a t r is k , b uild in g

i t d ir e ctl y in to th eir v alu e p ro po siti o n, a s a n in cre asin gly la rg e n um ber o f c usto m ers a re n o lo nger

w illin g to a ccep t a t f a ce v alu e th at “ so lu ti o ns” w ill u lti m ate ly d eliv er th e k in d o f v alu e th at s u p plie rs

p ro m is e u p f r o nt. Gre ate r D em and f o r C usto m iz atio n

T hir d , a s d eal c o m ple xity g o es u p , s o d oes c usto m ers ’ n atu ra l te nd ency to w ant to m odify th e d eal to

m ore c lo se ly m eet th eir s p ecific n eed s. W here as s u p plie rs ty p ic ally s e e c usto m iz a ti o n p ure ly fr o m a

c o st p ers p ecti v e, c usto m ers s e e c usto m iz a ti o n a s p art o f th e p ro m is e o f a “ so lu ti o ns” s a le : “ If y o u’re

g o in g to ‘ s o lv e’ m y p ro ble m , th en th is i s w hat I n eed i t to d o. W hy s h o uld th at c o st m ore m oney? A fte r

a ll, if it d oesn ’t d o th at, th en it’ s n o t re ally a ‘s o lu ti o n,’ is it? ” It’ s h ard to a rg ue w ith th at k in d o f

l o gic . C usto m iz a ti o n: E very o ne w ants i t; n o o ne w ants to p ay f o r i t. The R is e o f T hir d -P arty C onsu lt a nts

F in ally , o ver th e la st s e v era l y ears , w e’v e s e en a d ra m ati c a nd tr o ub lin g r is e in th e n um ber o f th ir d -

p arty c o nsu lta nts e m plo yed b y c usto m ers to h elp th em “ extr a ct m axim um v alu e fr o m th e p urc hase

d ecis io n.” A w ell- e sta b lis h ed p ra cti c e in so m e se cto rs — co rp ora te h ealth in su ra nce in th e U nite d

S ta te s, fo r e xam ple — th is tr e nd re ally to ok o ff g lo bally in la te 2 009, fo rg ed b y th e n eed o f m ost

c o m panie s to c ut c o sts o n th e o ne h and , a nd th e e v en m ore u rg ent n eed o f r e centl y la id -o ff in d ustr y

e xp erts to f in d a j o b o n th e o th er. T yp ic ally , th ese n ew ly m in te d c o nsu lta nts s o ld th eir s e rv ic es l a rg ely

o n th e b asis o f th eir a b ility to s a v e c o m panie s m oney. In th at c ase , “ extr a cti n g m axim um v alu e fr o m

t h e p urc hase d ecis io n” r e ally w as n o th in g m ore th an c o de f o r d oin g e v ery th in g p ossib le to s ti c k i t to

s u p plie rs o n p ric e, u p to a nd in clu d in g g o in g b ack a nd a ud iti n g p rio r d eals to u nco ver g ro und s fo r

r e nego ti a ti o n.

Over ti m e, h o w ev er, l a rg er o rg aniz a ti o nal p la yers h av e b eco m e d eep ly i n v olv ed i n th e p urc hase a s

w ell. In th eir c ase , “ extr a cti n g m axim um v alu e fr o m th e p urc hase d ecis io n” ty p ic ally tr a nsla te s in to

s o m eth in g c lo se r to h elp in g c usto m ers n av ig ate s o lu ti o ns c o m ple xity . T he f a ct o f th e m atte r i s th at a s

s u p plie rs s e ek to s e ll i n cre asin gly b ro ad s o lu ti o ns to e v er m ore c o m ple x c usto m er p ro ble m s, a s o fte n

a s n o t th e c o m ple xity o f th o se p ro ble m s is so h ig h th at c usto m ers a re th em se lv es u nq ualifie d to

n av ig ate — le t a lo ne e v alu ate — pote nti a l c o urs e s o f a cti o n o n th eir o w n. T hey n eed h elp . R ath er th an

t u rn in g to th e s u p plie rs f o r th at h elp , h o w ev er, th ey l o ok to “ neutr a l” th ir d -p arty e xp erts .

As a re su lt, su p plie rs to day are fr e q uentl y co nfr o nte d w ith new and aggre ssiv e th ir d -p arty

i n te rm ed ia rie s lo okin g to ta ke th eir s h are o f “ v alu e” fr o m th e d eal. A nd y o u c an b e s u re th at th at

p ound o f fle sh is g o in g to c o m e fr o m th e su p plie r sid e, n o t th e c usto m er sid e, g iv en w ho m th ese

c o nsu lta nts a re w ork in g fo r. In th is w orld , y o u c an e asily w in d u p w ith a ll th e c usto m er’s b usin ess,

b ut n o ne o f th eir m oney.

All f o ur o f th ese tr e nd s i n c usto m er b uyin g b ehav io r h av e l e d to a h ard tr u th f o r s a le s o rg aniz a ti o ns

a ll o ver th e w orld — and e sp ecia lly fo r th e re p s w ho s e ll fo r th em : W hile th e e co no m y h as g o tte n

b ette r, s e llin g h asn ’t g o tte n a ny e asie r. It’ s th e p hysic s o f s a le s: S up plie rs c alle d th e s o lu ti o ns p la y,

a nd c usto m ers h av e m ad e th eir c o unte rm ove. C usto m ers a re lo okin g fo r w ays to re d uce b oth th e

c o m ple xity a nd th e r is k th at s u p plie rs ’ s o lu ti o n s e llin g e ffo rts h av e f o is te d u p on th em . A W ID EN IN G T A LEN T G AP

H ow d oes th is s o lu ti o ns s to ry p la y o ut fo r in d iv id ual r e p p erfo rm ance? T he im pact h as b een n o th in g

s h o rt o f d ra m ati c .

In a re cent s tu d y, o ur te am a t th e S ale s E xecuti v e C ouncil c o nd ucte d a n a naly sis lo okin g a t th e

i m pact o f a c o m pany’s s a le s m odel— in o th er w ord s, tr a nsa cti o nal s e llin g v ers u s s o lu ti o n s e llin g— on

t h e p erfo rm ance d is tr ib uti o n o f th eir s a le s re p s. W hat w e fo und w as e ye-o penin g a nd m ore th an a

l ittl e tr o ub lin g.

In a tr a nsa cti o nal s e llin g e nv ir o nm ent, th e p erfo rm ance g ap b etw een a v era ge a nd s ta r p erfo rm ers i s

5 9 p erc ent. S o th e sta r p erfo rm er se lls ab out half as m uch as th e co re p erfo rm er. H ow ev er, in

c o m panie s w ith so lu ti o n se llin g m odels th e d is tr ib uti o n is v ery d iffe re nt. T here , sta r p erfo rm ers

o utp erfo rm c o re p erfo rm ers b y a lm ost

200 p erc en t.

T he g ap i s f o ur ti m es g re ate r. P ut a no th er w ay, a s

s a le s b eco m e m ore c o m ple x, th e g ap b etw een c o re a nd s ta r p erfo rm ers w id ens d ra m ati c ally .

S ourc e: S ale s E xecuti v e C ouncil r e se arc h.

Fig ure 1 .2 .

C ore V ers u s H ig h P erfo rm ers i n T ra nsa cti o nal ( L eft) a nd S olu ti o n S ellin g ( R ig ht)

Env ir o nm ents

This l e ad s u s to th re e c o nclu sio ns. F ir s t, a s a s o lu ti o ns p ro vid er, y o u’v e g o t to f in d a w ay to p ut a

b ig c o rp ora te b ear h ug a ro und y o ur s ta rs . T hey’re c arry in g th e d ay fo r y o u. O ne h ead o f s a le s in

b usin ess s e rv ic es to ld u s r e centl y th at o f th eir h und re d s a le s r e p s,

tw o

w ere r e sp onsib le fo r b rin gin g

i n 8 0 p erc ent o f th e c o m pany’s re v enue. W hile th e situ ati o n in y o ur o rg aniz a ti o n m ay n o t b e a s

e xtr e m e, th e s h ift to s o lu ti o n s e llin g h as u nd oub te d ly s e en a d ra m ati c r is e in k ey-p ers o n d ep end ency

p ro ble m s a cro ss m any s a le s fo rc es. It’ s n o t ju st th at s ta rs a re c arry in g th e d ay fo r y o u; th ey’re o fte n

c arry in g th e e nti r e c o m pany.

Seco nd , a s y o ur s a le s m odel b eco m es m ore c o m ple x, th e v alu e o f n arro w in g th e g ap b etw een y o ur

c o re a nd s ta r p erfo rm ers g o es u p r a d ic ally . In th e tr a nsa cti o nal w orld , th e v alu e o f g etti n g s o m eo ne

j u st h alfw ay fr o m g o od to g re at is a 3 0 p erc ent im pro vem ent. T hat’ s n o t b ad . B ut th e v alu e o f th e

s a m e m ove i n a s o lu ti o ns e nv ir o nm ent i s a n a lm ost 1 00 p erc ent i m pro vem ent. P ut s im ply , c lo sin g th at

g ap i s w orth a l o t m ore th an i t u se d to b e.

Fin ally , th e p enalty fo r n o t c lo sin g th e g ap is te rrify in g. A s y o ur m odel e v olv es, le ft u nte nd ed , th e co re w ill f a ll f a rth er a nd f a rth er b ehin d , u nti l th ey u lti m ate ly c an’t e xecute th e n ew m odel a t a ll. A N EW W AY F O RW AR D

I n th is w orld o f d ra m ati c ally c hangin g c usto m er b uyin g b ehav io r a nd r a p id ly d iv erg in g s a le s ta le nt,

y o ur s a le s a p pro ach m ust e v olv e o r y o u w ill b e l e ft b ehin d .

So th e q uesti o n n o w i s : W hat d o y o u d o a b out i t? I f y o u’re g o in g to w in g o in g f o rw ard , y o u’v e g o t

t o e q uip r e p s to g enera te n ew d em and i n a w orld o f r e lu cta nt, r is k -a v ers e c usto m ers — custo m ers w ho

a re s tr u gglin g to b uy c o m ple x s o lu ti o ns j u st a s m uch a s y o u a re s tr u gglin g to s e ll th em . T hat’ s g o in g to

t a ke a v ery s p ecia l k in d o f s a le s p ro fe ssio nal i n d eed . A s th e w orld o f s a le s h as e v olv ed d ra m ati c ally

a cro ss th e la st te n to tw enty y ears , o ur re se arc h in d ic ate s th at th e b est re p s h av e e v olv ed a s e t o f

u niq ue a nd p ow erfu l s k ills to k eep u p . A nd th at’ s w here o ur s to ry g o es n ext. 2

TH E C HA LLEN GER ( P A RT 1 ): A N EW M ODEL F O R H IG H P ER FO RM ANCE

T H E N EED T O

u nd ers ta nd w hat y o ur s ta r-p erfo rm in g r e p s a re d oin g to s e t th em se lv es a p art fr o m

t h eir c o re -p erfo rm in g c o lle agues h as n ev er b een m ore u rg ent. T he w orld o f s a le s is c hangin g. T he

p re -re cessio n r e cip e f o r s a le s s u ccess w on’t g et th e j o b d one i n a p ost- re cessio n e co no m y. T hat s a id ,

t h e eco no m y its e lf se rv es o nly as a b ackd ro p to th is sto ry . T he re al sto ry re v olv es aro und th e

d ra m ati c c hange in c usto m er b uyin g b ehav io rs a cro ss th e la st fiv e y ears th at w e re v ie w ed in th e

p re v io us c hap te r— all i n r e sp onse to s u p plie rs ’ e ffo rts to s e ll l a rg er, m ore c o m ple x, m ore d is ru p ti v e,

a nd m ore e xp ensiv e s o lu ti o ns.

Sti ll, i f n o th in g e ls e , th e g lo bal e co no m ic c o lla p se s e rv ed to th ro w th e w id enin g g ap b etw een c o re

a nd s ta r r e p s i n to s ta rk c o ntr a st. E ven i n th e d ep th s o f th e d ow ntu rn , w hen m ost r e p s w ere f a r b ehin d

q uo ta , s o m e r e p s— quite in exp lic ab ly — sti ll m anaged n o t ju st to h it th eir g o als , b ut to e xceed th em .

W hat w ere th ey d oin g d iffe re ntl y ? G enera lly , th e te nd ency i n s a le s i s to s im ply c halk u p th e d iffe re nce

t o n atu ra l ta le nt a nd a ssu m e s ta rs a re j u st b orn w ith i t. I t’ s n o t a s i f y o u c an j u st ta ke th eir s k ill, b ottl e

i t, a nd s p rin kle i t o ver y o ur c o re p erfo rm ers to c lo se th e g ap . R ig ht?

Well, w hat if y o u c o uld ? W hat if y o u c o uld tr a ck d ow n th e r e p lic ab le p art o f w hat tr u ly s e ts s ta r

p erfo rm ers a p art, c ap tu re th at m agic , a nd e xp ort it to th e r e st o f y o ur s a le s o rg aniz a ti o n? Im agin e a

w orld w here a ll y o ur r e p s— or a t l e ast m any m ore o f th em — perfo rm ed l ik e s ta rs . W hat w ould th at b e

w orth to y o u? W hat w ould i t m ean f o r th e o vera ll p erfo rm ance o f y o ur c o m pany?

Well, in 2 009, in a w orld w here o nly th e sta rs w ere se llin g to b egin w ith , it c o uld m ean th e

d iffe re nce b etw een b ankru p tc y a nd s u rv iv al. A nd i t w as i n th is h ig h-s ta kes w orld th at w e f ir s t s e t o ut

t o answ er th e q uesti o n: W hic h sk ills , b ehav io rs , kno w le d ge, and atti tu d es m atte r m ost fo r hig h

p erfo rm ance? IN S E A R CH O F A N SW ER S

T o f ig ure th is o ut, w e s u rv eyed h und re d s o f f r o ntl in e s a le s m anagers a cro ss n in ety c o m panie s a ro und

t h e w orld , a sk in g th o se m anagers to a sse ss th re e r e p s e ach f r o m th eir te am s— tw o a v era ge p erfo rm ers

a nd o ne s ta r p erfo rm er— alo ng f o rty -fo ur d iffe re nt a ttr ib ute s. A nd w hile th e i n iti a l m odel w as b uilt o n

a n analy sis of th e fir s t 700 re p s fo r w ho m w e had data — re p re se nti n g ev ery m ajo r in d ustr y ,

g eo gra p hy, a nd g o -to -m ark et m odel— we’v e s in ce in cre ase d th at n um ber to w ell o ver 6 ,0 00 r e p s a ll

o ver th e w orld as w e co nti n ue to ru n th is dia gno sti c su rv ey th ro ugh our S E C S olu ti o ns— th e

i m ple m enta ti o n a rm o f th e S ale s E xecuti v e C ouncil— gro up . A mong o th er th in gs, c o nti n uin g th at w ork

h as a llo w ed u s to d ete rm in e w heth er o r n o t th e s to ry i n th e d ata h as c hanged o ver ti m e, e sp ecia lly i n

l ig ht o f th e re cent s lo w b ut s te ad y e co no m ic re co very . A nd fo r re aso ns w e’ll re v ie w m om enta rily ,

w e’v e b een a b le to e sta b lis h q uite c le arly th at th ese fin d in gs h o ld tr u e ir re sp ecti v e o f e co no m ic

c o nd iti o ns.

So w hat e xactl y w as in th is s u rv ey? T he ta b le o n p age 1 6 p ro vid es a s a m ple o f th e r e p a ttr ib ute s

w e te ste d a s p art o f th is w ork . W e a sk ed m anagers to a sse ss a tti tu d es, in clu d in g th e d egre e to w hic h

t h eir r e p s s e ek to r e so lv e c usto m er is su es a nd th eir w illin gness to r is k d is a p pro val. W e a sk ed a b out

s k ills a nd b ehav io rs , lik e th e r e p s’ le v el o f b usin ess a cum en a nd n eed s-d ia gno sis a b ility . W e lo oked

a t a cti v iti e s, lik e re p s’ te nd ency to fo llo w th e s a le s p ro cess a nd th o ro ughly e v alu ate o pportu niti e s.

A nd , fin ally , w e a sk ed a b out re p s’ k no w le d ge o f th eir c usto m ers ’ in d ustr y a s w ell a s th eir o w n

c o m panie s’ p ro ducts .

In te rm s o f d em ogra p hic s, th e stu d y c o vere d a w id e ra nge o f se llin g m odels , e v ery th in g fr o m

h unte rs to f a rm ers , f ie ld r e p s to i n sid e s a le s r e p s, k ey a cco unt m anagers to b ro ad -b ase d a cco unt r e p s,

a s w ell a s b oth d ir e ct s e lle rs a nd in d ir e ct s e lle rs . T hat s a id , w e c are fu lly c o ntr o lle d fo r th in gs lik e

r e p te nure , g eo gra p hy, a nd a cco unt s iz e to m ake s u re th at th e r e su lts a p ply n o t o nly u niv ers a lly a cro ss

t h e e nti r e sa m ple , b ut a ls o b ro ad ly a cro ss th e w id e ra nge o f th e c o m panie s re p re se nte d in S ale s

E xecuti v e C ouncil m em bers h ip .

Fin ally , b ecause w e w ere w ork in g w ith s a le s re p s, w e h ad a v ery p ra cti c al m eans o f m easu rin g actu al p erfo rm ance, nam ely each in d iv id ual re p ’s p erfo rm ance again st go al. W hen yo u p ut it all

to geth er, w hat a ll o f th is w ork g iv es y o u i s a v ery r o bust d ata -d riv en s n ap sh o t o f r e p p erfo rm ance th at

allo w s y o u to a nsw er th e q uesti o n, “ O f a ll th e th in gs a s a le s r e p

co uld

d o w ell, w hic h o nes a ctu ally

matte r m ost fo r s a le s p erfo rm ance?” It’ s a n e xtr e m ely th o ro ugh p ic tu re o f w hat “ go od” lo oks lik e

when i t c o m es to s a le s r e p s k ill a nd b ehav io r.

We s h o uld a ls o p oin t o ut w hat w e d id

not

s tu d y. T his w ork is d efin iti v ely n o t a n e xam in ati o n o f

sa le s re p p ers o nality ty p es o r p ers o nal str e ngth s. T hat k in d o f th in g is h ard to m easu re a nd e v en

hard er to d o a nyth in g a b out. If w e w ere to te ll y o u th at “ charis m a” is h ugely im porta nt to sa le s

su ccess, y o u m ig ht n o t d is a gre e, b ut y o u’d lik ely str u ggle to k no w w hat to a ctu ally

do

w ith th at

in fo rm ati o n. S ure , o ver ti m e y o u m ig ht fin d n ew h o m es fo r a ll o f y o ur n o ncharis m ati c r e p s a nd h ir e

more o utg o in g o nes in ste ad . B ut w hile th at m ay in fa ct h elp p erfo rm ance to m orro w , it w ould b e

aw fu lly d iffic ult to e xecute p ra cti c ally , in o rd er to im pro ve p erfo rm ance to day. In ste ad , fir s t a nd

fo re m ost, w e w ante d to p ro vid e a d vic e a ro und w hat y o u c an d o r ig ht n o w w ith th e r e p s y o u

alr e a dy

hav e ( th o ugh th ere i s c erta in ly a h ir in g s to ry th at c o m es o ut o f th ese r e su lts a s w ell) .

To th at e nd , lo okin g b ack a t th e lis t o f v aria b le s, y o u’ll n o ti c e th at a ll o f th e a ttr ib ute s w e te ste d

were fo cuse d o n r e p s’

dem onstr a te d b eh avio rs

. In o th er w ord s, h o w m uch m ore o r le ss lik ely is a

re p to d o “ X ”? O r h o w e ffe cti v e i s a r e p a t d oin g “ Y ”? W e d id th at b ecause s k ills a nd b ehav io rs

are

th in gs y o u c an d o s o m eth in g a b out r ig ht a w ay. Y ou m ay o r m ay n o t b e c haris m ati c , b ut th ro ugh b ette r

co achin g, fo r e xam ple , I c an h elp y o u d o a b ette r jo b o f fo llo w in g th e s a le s p ro cess. O r, th ro ugh

bette r tr a in in g a nd to ols , I c an i m pro ve y o ur p ro duct o r i n d ustr y k no w le d ge.

This i s a s u rv ey a b out g etti n g th in gs d one. I t w asn ’t d esig ned s o m uch to d ete rm in e w hy y o ur s ta rs

are b ette r, b ut ra th er to d ete rm in e ho w to m ake yo ur co re b ette r. T hin k o f th e p ote nti a lly huge

co m merc ia l v alu e c urre ntl y l o cked u p i n th e m id dle 6 0 p erc ent o f y o ur s a le s f o rc e. W hat w ould i t b e

worth to m ake e ach o f th o se r e p s e v en j u st a l ittl e b it b ette r? O ur s u rv ey f o cuse d o n th e th in gs y o u c an

do r ig ht n o w to h elp th e c o re p erfo rm ers y o u a lr e ad y h av e a ct m ore lik e th e s ta rs th at y o u w is h th ey

were .

So w hat d id w e fin d ? W hic h o f th ese m any a ttr ib ute s m atte rs m ost? A t th e h ig hest le v el, th e s to ry

re v olv es aro und th re e key fin d in gs, each re p re se nti n g a ra d ic al d ep artu re fr o m ho w m ost sa le s

executi v es th in k a b out h o w to d riv e s a le s s u ccess. L et’ s ta ke th em o ne b y o ne. FIN DIN G # 1: T H ER E A R E F IV E T YPES O F S A LES R EPS

T he fir s t th in g w e d id w as to ru n a fa cto r a naly sis o n th e d ata . P ut sim ply , fa cto r a naly sis is a

s ta ti s ti c al m eth o dolo gy fo r g ro up in g a la rg e n um ber o f v aria b le s in to a sm alle r se t o f c ate go rie s

w ith in w hic h v aria b le s c o -p re se nt a nd m ove to geth er. F or e xam ple , i f w e w ere s tu d yin g e co sy ste m s,

a fa cto r a naly sis o f e v ery p ote nti a l e co sy ste m v aria b le w ould te ll u s th at th in gs lik e in te nse h eat,

s a nd , a rid c o nd iti o ns, s c o rp io ns, a nd c acti te nd to c o -p re se nt i n n atu re . B ecause w e te nd to f in d th em

t o geth er, w e c o uld g iv e th is c ate go ry a n am e, i .e ., “ a d ese rt.”

When w e ra n fa cto r a naly sis o n th e d ata fr o m o ur sa le s re p stu d y, w e fo und so m eth in g re ally

i n tr ig uin g. T he a naly sis in d ic ate d v ery c le arly th at c erta in r e p c hara cte ris ti c s te nd to c lu m p to geth er.

T he fo rty -fo ur a ttr ib ute s w e te ste d fe ll in to fiv e d is ti n ct g ro up s, e ach c o nta in in g a v ery d iffe re nt

c o m bin ati o n o f r e p c hara cte ris ti c s. W hen a r e p te nd s to b e g o od a t o ne a ttr ib ute in th at g ro up , h e o r

s h e i s v ery l ik ely to b e g o od a t a ll o f th e o th ers i n th at g ro up a s w ell.

S ourc e: S ale s E xecuti v e C ouncil r e se arc h.

Fig ure 2 .1 .

T he F iv e S ale s R ep P ro file s

Fig ure 2 .1 sh o w s th ese fiv e d is ti n ct re p p ro file s a s w ell a s th e d esc rip ti v e v aria b le s th at a re

c lu ste re d w ith in each. T hese gro up s are no t necessa rily m utu ally exclu siv e. G oin g back to th e

e co sy ste m e xam ple e arlie r, th in k o f it th is w ay: A ll d ese rts h av e in te nse h eat a nd s a nd , b ut in te nse

h eat a nd s a nd a re n o t u niq ue to d ese rts . Y ou fin d th ese th in gs in o th er e co sy ste m s to o, m ayb e ju st in

d iffe re nt a b und ance. I n o ur s tu d y, e v ery r e p h as a t l e ast a b ase lin e l e v el o f p erfo rm ance a cro ss a ll th e

a ttr ib ute s w e te ste d . F or e xam ple , to o ne d egre e o r a no th er, a ll s a le s r e p s a d here to a fo rm al s a le s

p ro cess. A ll r e p s h av e a t le ast a m in im um a ccep ta b le le v el o f p ro duct a nd in d ustr y k no w le d ge. B ut

f o r a lm ost e v ery r e p , a s p ecific s u b se t o f th ese a ttr ib ute s d efin es th eir p rim ary a p pro ach to c usto m ers .

We lik e to th in k o f th ese p ro file s a s c o lle ge o r u niv ers ity d egre es. In o rd er to g ra d uate , e v ery

s tu d ent m ust c o ver a b ro ad c o re c urric ulu m : s c ie nce, la nguage, h is to ry , m ath , e tc . B ut a t th e s a m e

t i m e, u niv ers ity s tu d ents h av e a “ p rim ary ” o r “ m ajo r” a s w ell— th e th in g th ey s p ecia liz e in th at s e ts

t h em a p art. A nd th at’ s w hat th ese fiv e p ro file s a re a ll a b out. T hey a re th e fiv e d is ti n ct “ m ajo rs ” in

s a le s.

These f iv e p ro file s a re n o t g ro up s th at w e p ut to geth er b ase d o n o ur i n te rp re ta ti o n o f th e d ata o r o ur vie w o f th e w orld . W e le t th e a naly sis te ll th e s to ry . T he fiv e p ro file s a re s ta ti s ti c ally d eriv ed , b ut

th ey a ccura te ly a nd c o m ple te ly d esc rib e th e fiv e m ost c o m mon p ro file s fo und in th e re al w orld .

In te re sti n gly , th ey’re r e la ti v ely e v enly d is tr ib ute d a cro ss o ur s a m ple p opula ti o n.

So w ho a re th ese d iffe re nt re p s? A s w e g o th ro ugh th e fiv e p ro file s, a sk y o urs e lf th e fo llo w in g

questi o ns: W hic h o f th ese fiv e p ro file s d o y o u th in k b est d esc rib es th e b ulk o f y o ur sa le s fo rc e?

Where h av e y o u p la ced y o ur b ets a s a n o rg aniz a ti o n o r, p erh ap s m ore p ra cti c ally s p eakin g, w hic h

ty p e o f r e p a re y o u tr y in g to r e cru it r ig ht n o w ? W hic h a re y o u tr y in g to g et y o ur r e p s to b ehav e m ore

lik e? The H ard W ork er

H ard W ork ers a re e xactl y w ho th ey s o und lik e. T hese a re th e r e p s w ho s h o w u p e arly , s ta y la te , a nd

a re a lw ays w illin g to p ut i n th e e xtr a e ffo rt. T hey’re th e “ no se to th e g rin d sto ne” s e lle rs . T hey’re s e lf-

m oti v ate d a nd d on’t g iv e u p e asily . T hey’ll m ake m ore c alls in a n h o ur a nd c o nd uct m ore v is its in a

w eek th an ju st a b out a nyo ne e ls e o n th e te am . A nd th ey e nth usia sti c ally a nd fr e q uentl y se ek o ut

f e ed back, a lw ays l o okin g f o r o pportu niti e s to i m pro ve th eir g am e.

A C SO a t a g lo bal l o gis ti c s c o m pany p ut i t l ik e th is : “ T hese g uys b elie v e th at d oin g th e r ig ht th in gs

t h e rig ht w ay w ill in ev ita b ly get yo u re su lts . If th ey d o eno ugh calls , se nd eno ugh e-m ails , and

r e sp ond to e no ugh R FPs [re q uests fo r p ro posa l] , it’ ll a ll c o m e to geth er b y th e e nd o f th e q uarte r.

T hey’re th e o nes w ho w ere actu ally p ayin g atte nti o n w hen w e p ound ed th e im porta nce o f sa le s

p ro cess.” The R ela tio nsh ip B uild er

J u st a s th e n am e im plie s, R ela ti o nsh ip B uild ers a re a ll a b out b uild in g a nd n urtu rin g s tr o ng p ers o nal

a nd pro fe ssio nal re la ti o nsh ip s and ad vocate s acro ss th e custo m er org aniz a ti o n. They’re very

g enero us w ith th eir ti m e a nd w ork v ery h ard to e nsu re th at c usto m ers ’ n eed s a re m et. T heir p rim ary

p ostu re w ith c usto m ers is la rg ely o ne o f a ccessib ility a nd s e rv ic e. “ W hate v er y o u n eed ,” th ey’ll te ll

c usto m ers , “ I’ m h ere to m ake th at h ap pen. J u st s a y th e w ord .”

Not su rp ris in gly , o ne V P o f sa le s w e re centl y in te rv ie w ed to ld us, “O ur custo m ers

lo ve

our

r e la ti o nsh ip b uild ers . T hey’v e w ork ed v ery h ard to b uild c usto m er re la ti o nsh ip s, so m eti m es o ver

y ears . I t f e els l ik e th at’ s r e ally m ad e a h uge d iffe re nce to o ur b usin ess.” The L one W olf

T he L one W olf w ill lo ok fa m ilia r to a nyo ne in s a le s. L one W olv es a re d eep ly s e lf- c o nfid ent. A s a

r e su lt, th ey te nd to f o llo w th eir o w n i n sti n cts i n ste ad o f th e r u le s. I n m any w ays, th e L one W olv es a re

t h e “ p rim a d onnas” o f th e s a le s f o rc e— th e “ co w boys” w ho d o th in gs “ th eir w ay” o r n o t a t a ll. M ore

o fte n th an n o t th ey d riv e s a le s le ad ers c ra zy — th ey h av e n o p ro cess c o m plia nce, n o tr ip r e p orts , n o

C RM ( c usto m er r e la ti o nsh ip m anagem ent) e ntr ie s.

“F ra nkly ,” o ne h ead o f sa le s to ld u s, “ I’ d fir e th em if I c o uld , b ut I c an’t, b ecause th ey’re a ll

c ru sh in g th eir n um bers .” A nd th at’ s th e c ase f o r m ost c o m panie s. O n a v era ge, L one W olv es te nd to d o

v ery w ell d esp ite e gre gio usly flo uti n g th e s y ste m , b ecause if th ey d id n’t d o w ell, th ey’d p ro bab ly

h av e b een f ir e d a lr e ad y. The R eactiv e P ro ble m S olv er

T he R eacti v e P ro ble m S olv er i s h ig hly r e lia b le a nd v ery d eta il- o rie nte d . W hile e v ery r e p i n o ne w ay

o r a no th er i s f o cuse d o n s o lv in g c usto m er p ro ble m s, th ese i n d iv id uals a re n atu ra lly d ra w n to e nsu rin g

t h at a ll o f th e p ro m is e s th at a re in ev ita b ly m ad e a s p art o f a s a le a re a ctu ally k ep t o nce th at d eal is

d one. T hey te nd to fo cus v ery h eav ily o n p ost- s a le s fo llo w -u p , e nsu rin g th at s e rv ic e is su es a ro und

i m ple m enta ti o n a nd e xecuti o n a re a d dre sse d q uic kly a nd th o ro ughly .

One S E C m em ber d esc rib ed th e p ro ble m s o lv er a s “ a c usto m er s e rv ic e r e p i n s a le s r e p c lo th in g.”

A s s h e p ut i t, “ T hey c o m e i n to th e o ffic e i n th e m orn in g w ith g ra nd p la ns to g enera te n ew s a le s, b ut a s

s o on a s a n e xis ti n g c usto m er c alls w ith a p ro ble m , th ey d iv e rig ht in ra th er th an p assin g it to th e

p eo ple w e a ctu ally p ay to s o lv e th o se p ro ble m s. T hey fin d w ays to m ake th at c usto m er h ap py, b ut a t

t h e e xp ense o f f in d in g w ays to g enera te m ore b usin ess.” The C halle nger

C halle ngers are th e deb ate rs on th e te am . T hey’v e go t a deep und ers ta nd in g of th e custo m er’s

b usin ess a nd u se th at u nd ers ta nd in g to p ush th e c usto m er’s th in kin g a nd te ach th em s o m eth in g n ew

a b out h o w th eir c o m pany c an c o m pete m ore e ffe cti v ely . T hey’re n o t a fr a id to s h are th eir v ie w s, e v en

w hen th ey’re d iffe re nt a nd p ote nti a lly c o ntr o vers ia l. C halle ngers a re a sse rti v e— th ey te nd to “ p re ss”

c usto m ers a littl e — both o n th eir th in kin g a nd a ro und th in gs lik e p ric in g. A nd a s m any s a le s le ad ers

w ill te ll y o u, th ey d on’t re se rv e th eir C halle nger m enta lity fo r c usto m ers a lo ne. T hey te nd to p ush

t h eir o w n m anagers a nd s e nio r l e ad ers w ith in th eir o w n o rg aniz a ti o ns a s w ell. N ot i n a n a nno yin g o r

a ggre ssiv e m anner, m in d y o u— th en w e’d s im ply h av e to c all th is p ro file “ th e J e rk ”— but in a w ay

t h at f o rc es p eo ple to th in k a b out c o m ple x i s su es f r o m a d iffe re nt p ers p ecti v e.

As o ne m em ber p ut it, “ W e h av e a h and fu l o f C halle ngers in o ur c o m pany, a nd a lm ost a ll o f th em

s e em to h av e a s ta nd in g ti m e s lo t o n o ur C SO ’s c ale nd ar to d is c uss w hat th ey’re s e ein g a nd h earin g i n

t h e m ark et. T he C SO l o ves i t. T hey’re c o nsta ntl y b rin gin g f r e sh i n sig ht to th e ta b le th at f o rc es h im to

c o nsta ntl y c heck h is s tr a te gy a gain st r e ality .” FIN DIN G # 2: O NE C LEA R W IN NER A N D O NE C LEA R L O SE R

I f y o u s te p b ack a nd lo ok a t th e fiv e p ro file s, a sk y o urs e lf: W hic h w ould y o u p re fe r to h av e o n y o ur

t e am ? I n m any w ays, th ey a ll l o ok g o od.

But a s in te re sti n g a s it is th at re p s fa ll in to o ne o f fiv e d is ti n ct p ro file s, it’ s re ally th e se co nd

f in d in g th at’ s p ro ven s o c o m ple te ly s u rp ris in g. W hen y o u ta ke th ese f iv e p ro file s a nd c o m pare th em to

a ctu al sa le s p erfo rm ance, y o u fin d so m eth in g v ery d ra m ati c . O ne in p arti c ula r p erfo rm s h ead a nd

s h o uld ers ab ove th e oth er fo ur, and one fa lls dra m ati c ally behin d , yet th e re su lts go again st

c o nv enti o nal w is d om . W hen m ost s a le s le ad ers s e e h o w e ach p ro file p erfo rm s, th ey te ll y o u q uite

f r a nkly , th ey’v e i n d eed p la ced th eir b ig gest b et o n th e p ro file l e ast l ik ely to w in .

So w ho w in s? T he a nsw er i s th e C halle nger b y a l a nd slid e. T ake a l o ok a t f ig ure 2 .2 .

S ourc e: S ale s E xecuti v e C ouncil r e se arc h.

Fig ure 2 .2 .

C ore a nd H ig h P erfo rm ers b y P ro file

In co m parin g th e fiv e re p p ro file s w ith actu al sa le s p erfo rm ance, th e fir s t th in g w e d id w as

s e p ara te c o re p erfo rm ers fr o m sta r p erfo rm ers a nd a naly ze e ach in d ep end entl y . T o d ete rm in e sta r

p erfo rm ers , w e a sk ed p arti c ip ati n g c o m panie s to te ll u s w hic h o f th eir r e p s i n th e s a m ple f e ll i n to th e

t o p 20 perc ent of th eir sa le s fo rc e as m easu re d by perfo rm ance again st go al. O nce w e had

c ate go riz e d a ll th e r e p s in o ur s a m ple b y p erfo rm ance, w e th en d ete rm in ed th e d is tr ib uti o n o f e ach

g ro up a cro ss th e f iv e p ro file s. A nd w hat w e f o und w as f a sc in ati n g.

Fir s t, th e dis tr ib uti o n of

co re

perfo rm ers acro ss th e fiv e pro file s is fa ir ly ev en. N o pro file

d om in ate s am ong av era ge sa le s re p s. It tu rn s out co re perfo rm ers are n’t av era ge because th ey

g ra v ita te to a s p ecific p ro file ; th ey’re a v era ge b ecause w ell, th ey’re a v era ge. T hey s h o w u p in a ll

f iv e c ate go rie s a nd a chie v e a v era ge p erfo rm ance i n e v ery s in gle o ne. I n o th er w ord s, th ere ’s n o t o ne

w ay to b e a v era ge, b ut fiv e. M ed io crity c o m es in m ulti p le fla v ors . In d eed , y o u s e e th is in fig ure 2 .2

i n th e r e la ti v ely e v en d is tr ib uti o n o f th e l ig hte r-s h ad ed b ars a cro ss th e f iv e p ro file s.

But w hen y o u lo ok a t th e d is tr ib uti o n o f

sta r

p erfo rm ers a cro ss th ese s a m e fiv e p ro file s, y o u fin d

s o m eth in g co m ple te ly d iffe re nt. W hile th ere m ay b e fiv e w ays to b e av era ge, th ere ’s cle arly a

d om in ant w ay to b e a s ta r. A nd th at, b y f a r, i s th e C halle nger p ro file , c o m pris in g n early 4 0 p erc ent o f

a ll h ig h p erfo rm ers i n o ur s tu d y.

You’ll r e m em ber th at th e C halle nger r e p is th e r e p w ho lo ves to d eb ate . T he o ne w ho u se s h is o r her d eep u nd ers ta nd in g o f a c usto m er’s b usin ess n o t s im ply to s e rv e th em , b ut to te ach th em : to p ush

th eir th in kin g a nd p ro vid e th em w ith n ew a nd d iffe re nt w ays to th in k a b out th eir b usin ess a nd h o w to

co m pete .

So w hat tr u ly s e ts th em a p art? In o ur a naly sis , o f th e fo rty -fo ur o r s o a ttr ib ute s w e te ste d , s ix o f

th em s h o w ed u p a s s ta ti s ti c ally s ig nific ant i n d efin in g s o m eo ne a s a C halle nger r e p :

• O ffe rs th e c usto m er u niq ue p ers p ecti v es

• H as s tr o ng tw o-w ay c o m munic ati o n s k ills

• K no w s th e i n d iv id ual c usto m er’s v alu e d riv ers

• C an i d enti fy e co no m ic d riv ers o f th e c usto m er’s b usin ess

• I s c o m fo rta b le d is c ussin g m oney

• C an p re ssu re th e c usto m er

At fir s t g la nce, th is lis t m ay s e em lik e a s tr a nge m ix o f u nre la te d q ualiti e s. In fa ct, w hen w e fir s t

put to geth er th e l is t o f a ttr ib ute s to b e te ste d , i t’ s u nlik ely a nyo ne w ould h av e p ic ked th ese p arti c ula r

six a s th e k ey c o m ponents o f s ta r p erfo rm ance. N oneth ele ss, th at’ s h o w th e a naly sis c am e o ut. E ach o f

th ese a ttr ib ute s re p re se nts a p arti c ula r w ay in w hic h C halle nger re p s s ig nific antl y o utp erfo rm th eir

co lle agues i n th e c o re .

That s a id , i f w e g ro up th e a ttr ib ute s i n to th re e c ate go rie s w e f in d th ey p ain t a v ery c le ar p ic tu re o f

who th e C halle nger tr u ly is . A C halle nger is re ally d efin ed b y th e a b ility to d o th re e th in gs: te ach,

ta ilo r, a nd ta ke c o ntr o l:

• W ith th eir u niq ue p ers p ecti v e o n th e c usto m er’s b usin ess a nd th eir a b ility to e ngage in r o bust

tw o-w ay dia lo gue, C halle ngers are ab le to

te a ch fo r diffe re n tia tio n

durin g th e sa le s

in te ra cti o n.

• B ecause C halle ngers p osse ss a s u p erio r s e nse o f a c usto m er’s e co no m ic a nd v alu e d riv ers ,

th ey a re a b le to

ta ilo r fo r r e so nance,

d eliv erin g th e r ig ht m essa ge to th e r ig ht p ers o n w ith in

th e c usto m er o rg aniz a ti o n.

• F in ally , C halle ngers are co m fo rta b le dis c ussin g m oney and can, w hen need ed , pre ss th e

custo m er a b it. I n th is w ay, th e C halle nger

ta kes c o ntr o l

o f th e s a le .

These a re th e d efin in g a ttr ib ute s o f th e C halle nger— th e a b ility to te ach, to ta ilo r, a nd to ta ke

co ntr o l. T hey’re th e p illa rs o f w hat w e’v e c o m e to c all th e C halle nger S ellin g M odel, a nd th e r e st o f

th is b ook w ill p ro vid e a r o ad m ap f o r b uild in g th ese c ap ab iliti e s i n y o ur s a le s f o rc e.

Befo re w e tu rn to a c lo se r a naly sis o f C halle ngers , h o w ev er, le t’ s re tu rn b rie fly to o ur o vera ll

re su lts . B ecause a s b ig a n a h-h a! a s i t h as b een f o r s a le s l e ad ers a ro und th e w orld th at th e C halle nger

is s o m uch m ore l ik ely to w in th an a ny o th er p ro file , i t’ s p ro ven e q ually s u rp ris in g— and f r a nkly m uch

more tr o ub lin g— fo r s a le s e xecuti v es to l e arn th at th e R ela ti o nsh ip B uild er f a lls s o f a r b ehin d . I n o ur

stu d y, o nly

7 p erc en t

o f a ll s ta r p erfo rm ers fe ll in to th e R ela ti o nsh ip B uild er p ro file , fa r fe w er th an

any o th er. A nd th is fin d in g s h o uld b e a re al re d fla g fo r a ll s a le s le ad ers e nco ura gin g th eir re p s to

sim ply g o o ut a nd “ b uild d eep er r e la ti o nsh ip s” w ith c usto m ers , o r, a s o ne c o m pany to ld th eir r e p s i n

th e d ep th s o f th e r e cessio n, to g o o ut a nd “ hug y o ur c usto m ers .”

Now , b efo re w e g o a ny fu rth er, w e s h o uld e m phasiz e th at th ese re su lts b y n o m eans s u ggest th at

custo m er r e la ti o nsh ip s a re n’t im porta nt fo r s a le s— th is w ould b e a n aïv e c o nclu sio n. O f c o urs e th ey

are im porta nt, p arti c ula rly in c o m ple x s a le s w here r e p s a re r e q uir e d to e ngage in r e la ti o nsh ip s w ith multi p le s ta keho ld ers . I f y o ur c usto m ers d on’t k no w w ho y o u a re , o r w ors e , o utr ig ht d is lik e y o u, y o u

must f ix th at f ir s t. B ut a t th e s a m e ti m e, i f y o ur s tr a te gy a s a s a le s r e p i s l a rg ely o ne o f b ein g a v aila b le

to ta ke c are o f w hate v er y o ur c usto m er n eed s— of a cq uie sc in g to th e c usto m er’s e v ery d em and — th at

can b e a r e cip e fo r d is a ste r in a n e nv ir o nm ent w here y o ur c usto m ers a re m ore r e lu cta nt th an e v er to

buy y o ur s o lu ti o ns fo r a ll th e r e aso ns w e d is c usse d in c hap te r 1 . In th at e nv ir o nm ent, a s c riti c al a s a

str o ng c usto m er re la ti o nsh ip m ay b e, fa m ilia rity a lo ne is n ’t e no ugh to w in th e b usin ess. A s e rv ic e-

orie nte d q uarte rly c heck-in c all w ith y o ur c usto m er c an b e a g re at w ay to

fin d

b usin ess, b ut i t’ s n o t a

very go od w ay to

make

b usin ess. A s a re su lt, in a w orld w here fin d ab le b usin ess has all b ut

vanis h ed , R ela ti o nsh ip B uild ers a re d oom ed to f a il.

Sourc e: S ale s E xecuti v e C ouncil r e se arc h.

Fig ure 2 .3 .

C halle nger V ers u s R ela ti o nsh ip B uild er P ro file

So is th e C halle nger p ro file re ally all th at d iffe re nt fr o m th at o f th e R ela ti o nsh ip B uild er? It

ab so lu te ly is . W hen y o u lo ok a t th e a ttr ib ute s th at d efin e th e C halle nger a nd c o m pare th em w ith th e

ones th at d efin e th e R ela ti o nsh ip B uild er, a s w e’v e d ep ic te d i n f ig ure 2 .3 , y o u’ll s e e w hy.

Challe nger r e p s s u cceed f o r a ll o f th e r e aso ns w e j u st d is c usse d — th ey e xcel a t te achin g, ta ilo rin g,

and ta kin g c o ntr o l. M eanw hile , a s th e C halle nger is fo cuse d o n p ush in g th e c usto m er o ut o f th eir

co m fo rt z o ne, th e R ela ti o nsh ip B uild er is fo cuse d o n b ein g a cce p te d in to it. T hey fo cus o n b uild in g

str o ng p ers o nal r e la ti o nsh ip s a cro ss th e c usto m er o rg aniz a ti o n, b ein g l ik ab le a nd g enero us w ith th eir

ti m e. T he R ela ti o nsh ip B uild er ad opts a se rv ic e m enta lity . W hile th e C halle nger is fo cuse d o n

custo m er v alu e, th e R ela ti o nsh ip B uild er i s m ore c o ncern ed w ith c usto m er c o nv enie nce.

The C halle nger r e p w in s b y m ain ta in in g a c erta in a m ount o f c o nstr u cti v e te nsio n a cro ss th e s a le .

The R ela ti o nsh ip B uild er, o n th e o th er h and , s tr iv es to r e so lv e o r d efu se te nsio n, n o t c re ate i t. I t’ s th e

exact o pposite a p pro ach. G ra nte d , th e c o nv ers a ti o n w ith th e R ela ti o nsh ip B uild er is in m ost c ase s a

very p ro fe ssio nal o ne, b ut it d oesn ’t re ally

help

th e c usto m er m ake p ro gre ss a gain st th eir g o als .

They’re l ik ab le , b ut th ey’re n o t v ery e ffe cti v e. T he C halle nger, b y c o ntr a st, k no w s th at th ere i s v alu e

fo r b oth y o u a nd y o ur c usto m ers i n m ain ta in in g th at te nsio n a l ittl e b it l o nger i n a m anner th at p ush es

th e c usto m er to th in k d iffe re ntl y a b out th eir o w n b usin ess— ab out th e w ays i n w hic h y o u m ig ht b e a b le to h elp th em (to sa v e m oney o r m ake m oney) a nd , u lti m ate ly , a b out th e v alu e y o u p ro vid e a s a

su p plie r.

Here ’s h o w a g lo bal h ead o f s a le s i n th e h o sp ita lity i n d ustr y p ut i t w hen h e s a w th ese r e su lts : “ Y ou

kno w , th is i s r e ally h ard to l o ok a t. F or th e l a st te n y ears , i t’ s b een o ur s ta te d s tr a te gy to h ir e e ffe cti v e

Rela ti o nsh ip B uild ers . A fte r a ll, w e’re i n th e h o sp ita lity b usin ess. A nd f o r a w hile , th at w ork ed f in e.

But e v er s in ce th e e co no m y c ra sh ed , m y R ela ti o nsh ip B uild ers a re c o m ple te ly l o st. T hey c an’t s e ll a

th in g. A nd a s I l o ok a t th is , I n o w k no w w hy.” F IN DIN G # 3: C H ALLEN G ER S A R E T H E S O LU TIO N S E LLIN G R EP, N O T

JU ST T H E D O W N E C O NO M Y R EP

T he d ra m ati c d iffe re nce b etw een C halle ngers a nd a ll o th er r e p s b rin gs u s to o ur th ir d a nd a rg uab ly

m ost d ra m ati c fin d in g. A lm ost in ev ita b ly a t th is p oin t in o ur sto ry , a q uesti o n n atu ra lly c o m es u p

a b out th e “ sta yin g p ow er” o f th e C halle nger p ro file . A fte r a ll, w e fir s t d eriv ed th ese fin d in gs a t a

v ery s p ecific a nd u niq uely b ad m om ent o f e co no m ic p erfo rm ance. S o is it p ossib le th at th e s u p erio r

p erfo rm ance o f C halle ngers is s im ply a te m pora ry p heno m eno n— a p ro duct o f th e G re at R ecessio n

a nd th e b ru ta l s a le s e nv ir o nm ent it e ngend ere d ? If th at’ s th e c ase , a re w e lik ely to c o m e b ack in tw o

o r th re e y ears a nd fin d th at s o m e o th er p ro file — perh ap s o ne a s y et u nid enti fie d — is m ore lik ely to

w in ? B ase d o n w hat w e’re s e ein g i n th e d ata , w e d on’t b elie v e th at’ s th e c ase . T o s h o w y o u w hy, l e t’ s

s h ift o ur p ers p ecti v e to th e lo nger v ie w fo r a m om ent a nd lo ok a t th e C halle nger fin d in gs in th e

c o nte xt o f th e b ro ad er s h ift to w ard s o lu ti o n s e llin g.

S ourc e: S ale s E xecuti v e C ouncil r e se arc h.

Fig ure 2 .4 .

H ig h P erfo rm ance b y S ale s R ep P ro file i n L ow -a nd H ig h-C om ple xity S ale s

Env ir o nm ents

If w e lo ok a t th e d ata th ro ugh a d iffe re nt le ns— th e le ns o f s a le s c o m ple xity — we fin d s o m eth in g

e v en m ore d ra m ati c . A fte r o ur in iti a l a naly sis , w e w ent b ack to th e d ata a nd d iv id ed u p th e h ig h

p erfo rm ers a cco rd in g to th e c o m ple xity o f th e d eals th ey w ere s e llin g ( s e e f ig ure 2 .4 ), c o m parin g s ta r

p erfo rm ers w ho s e ll r e la ti v ely s im ple , s ta nd -a lo ne p ro ducts a cro ss a s h o rte r s a le s c ycle v ers u s th o se

w ho s e ll m ore c o m ple x b und le s o f p ro ducts a nd s o lu ti o ns a cro ss a r e la ti v ely l o nger s a le s c ycle .

In co m ple x sa le s, C halle ngers ab so lu te ly dom in ate , w ith

more th an 50 perc en t

of all sta r

p erfo rm ers f a llin g i n to th is c ate go ry . T he o nly g ro up th at c an e v en c o m e c lo se a re th e L one W olv es—

w ho , m ost s a le s le ad ers w ill a gre e, a re h ard to fin d a nd e v en h ard er to c o ntr o l. A t th e s a m e ti m e,

R ela ti o nsh ip B uild ers n early fa ll o ff th e m ap e nti r e ly — th e lik elih o od th at th ey a chie v e s ta r s ta tu s when y o u’re s e llin g c o m ple x s o lu ti o ns f a lls to

nea rly z e ro

.

This e xp la in s w hy s o m any o rg aniz a ti o ns s tr u ggle w ith th e m ig ra ti o n to s o lu ti o ns. T he w orld o f

so lu ti o n s e llin g is a lm ost d efin iti o nally a b out a d is ru p ti v e s a le . It’ s n o t th at y o u’re a sk in g c usto m ers

to b uy y o ur p ro duct a nd p ut it u p o n th e s h elf w ith a ll o f th e o th er p ro ducts th ey’v e b ought. R ath er,

yo u’re a sk in g c usto m ers to c hange th eir b ehav io r— to s to p a cti n g in o ne w ay a nd s ta rti n g a cti n g in

ano th er. T o m ake th at h ap pen, h o w ev er, y o u h av e to g et c usto m ers to th in k d iffe re ntl y a b out h o w th ey

opera te . Y ou n eed to s h o w th em a n ew w ay to th in k a b out th eir b usin ess. F ro m th at p ers p ecti v e, it’ s

re ally n o s u rp ris e th at in th is m ore c o m ple x w orld o nly o ne p ro file w in s— and it w in s b y a c o untr y

mile .

If y o u’re n o t b uild in g o r h ir in g C halle nger r e p s, c hances a re y o u’re g o in g to c o m e u p w ell s h o rt a s

yo ur d eals b eco m e m ore c o m ple x. C halle ngers a re n’t j u st th e d ow n e co no m y r e p o f to day; th ey’re th e

so lu ti o n-s e llin g re p o f to m orro w . If y o u’re lo okin g to g ro w th ro ugh s o lu ti o ns, y o u’re g o in g to n eed

Challe nger r e p s to d o i t.

If y o u s to p a nd th in k a b out y o ur b est s a le sp eo ple — th e o nes b rin gin g in th e b ig gest d eals fr o m th e

most c o m ple x c usto m ers , y o u c an s e e th em i n th is p ic tu re . C hances a re th ey’re y o ur b est C halle ngers .

That s a id , i m plic it i n th is f in d in g i s a l e sso n f o r h o w y o u m ig ht th in k a b out th e l e ss c o m ple x, m ore

tr a nsa cti o nal p arts o f y o ur b usin ess, a s w ell. In th ese a re as ( m any o f th em in th e in sid e o r te le sa le s

parts o f y o ur c o m pany), it p ro bab ly d oesn ’t m ake s e nse to o verin v est in b uild in g C halle ngers , a s th e

data s u ggest th at H ard W ork ers a re m ore l ik ely to w in th e d ay th ere . I f s a le s s u ccess i s m ore a m atte r

of c all v olu m e th an c all q uality , H ard W ork ers a re p rim ed to s u cceed . C halle ngers a re c riti c al i n th e

co m ple x w orld o f s o lu ti o n s e llin g, b ut th ey’re n o t r e q uis ite f o r e v ery p art o f th e b usin ess.

The o vera ll c o nclu sio n f r o m o ur r e se arc h i s th is : I f y o u’re o n th e j o urn ey to m ore o f a v alu e-b ase d

or s o lu ti o ns-o rie nte d s a le s a p pro ach, th en y o ur a b ility to

ch alle n ge

c usto m ers is a b so lu te ly v ita l fo r

yo ur s u ccess g o in g f o rw ard . I t’ s th ere fo re i m pera ti v e to u nd ers ta nd j u st w hat e xactl y m akes s o m eo ne

a C halle nger. A fte r a ll, it’ s o ne th in g to te ll r e p s, “ B e a C halle nger!” It’ s a no th er th in g a lto geth er to

te ll th em e xactl y w hat y o u w ant th em to

do

. 3

TH E C HA LLEN GER ( P A RT 2 ): E X PO RT IN G T H E M ODEL T O T H E C O RE

A C H ALLEN G ER I S

d efin ed b y th e a b ility to d o th re e th in gs— te ach, ta ilo r, a nd ta ke c o ntr o l— and

t o d o a ll o f th is th ro ugh th e u se o f c o nstr u cti v e te nsio n.

These a re th e p illa rs o f w hat w e c all th e C halle nger S ellin g M odel— an a p pro ach to s a le s th at is

b ase d o n w hat C halle ngers d o. It’ s a m eth o dolo gy th at w e’v e w ork ed o n w ith c o m panie s a cro ss a

w id e ra nge o f in d ustr ie s— co m panie s a s d iv ers e a s T ale cris B io th era p euti c s, P M I, B rin ks, a nd th e

s o lu ti o ns b usin ess o f T ho m so n R eute rs — to im ple m ent w ith in th eir o w n sa le s o rg aniz a ti o ns. It’ s

p re m is e d o n th e n o ti o n th at w ith th e r ig ht tr a in in g, c o achin g, a nd s a le s to ols , m ost r e p s— ev en a rd ent

R ela ti o nsh ip B uild ers — can l e arn to ta ke c o ntr o l o f th e c usto m er c o nv ers a ti o n l ik e a C halle nger.

The C halle nger S ellin g M odel i s s im ple i n th eo ry , b ut c o m ple x i n p ra cti c e, a nd e arly a d opte rs w ill

a tte st to th at. T he r e st o f th is b ook is d ed ic ate d to s h arin g p ro ven b est p ra cti c es, to ols , a nd le sso ns

l e arn ed to h elp c o m panie s, c o m merc ia l l e ad ers , m anagers , a nd r e p s i m ple m ent th e C halle nger S ellin g

M odel.

Befo re w e b egin th is jo urn ey, it m akes s e nse to d is c uss s o m e o f th e fu nd am enta l p rin cip le s th at

u nd erlie th e m odel a nd th at w ill b eco m e th em es th ro ugho ut th e c o urs e o f th is b ook. Prin cip le # 1: C halle n gers A re M ad e, N ot J u st B orn

O ne o f th e q uesti o ns w e o fte n h ear i s w heth er b ein g a C halle nger i s a q uesti o n o f n atu re o r n urtu re f o r

s a le s re p s. In o th er w ord s, a re C halle ngers b orn o r m ad e? T here a re a fe w w ays to a nsw er th is

q uesti o n.

One o f th e th in gs w e k no w fr o m o ur re se arc h is th at e v ery re p in o ur stu d y h ad tr a ces o f th e

C halle nger “ gene,” it ju st w asn ’t th e th in g th ey “ m ajo re d ” in . B ut b ecause w e fo cuse d o ur w ork

s p ecific ally o n sk ills , atti tu d es, b ehav io rs , and kno w le d ge, th at te ll us th at w ith th e rig ht to ols ,

t r a in in g, c o achin g, a nd r e w ard a nd r e co gniti o n s y ste m , y o u c an lik ely e q uip m any o f y o ur r e p s w ho

m in o r in c halle ngin g (a nd m ayb e e v en th o se w ho ju st to ok a fe w c re d its in it) to a ct m ore lik e

C halle ngers w hen th ey’re in fr o nt o f th e c usto m er. W hile th ere m ay b e re p s w ho w on’t m ake th e

t r a nsiti o n, th ere a re m any, m any m ore w ho w ill i f y o u i n v est th e ti m e a nd e nerg y to g et th em th ere .

Furth erm ore , th e id ea th at C halle ngers a re b orn a nd n o t m ad e is s o m ew hat ir re le v ant. W hile w e

m ig ht n o t b e a b le to r e w rite th eir D NA, if w e a re a b le to m odify n o n– C halle nger r e p b ehav io r e v en

t e m pora rily a s th ey f a ce o ff w ith c usto m ers ( to “ fle x,” a s o ne m em ber p ut i t) , th at e ffo rt i s l ik ely ti m e

w ell s p ent. A fte r a ll, w e a re n’t a w are o f a ny s a le s l e ad er w ho i s r e ad y to l e t g o o f a ll b ut a h and fu l o f

h is r e p s a nd r e hir e a n e nti r e ly n ew s a le s f o rc e— th at i s , n o h ead o f s a le s w ho w ants to k eep h is j o b.

Our o pera ti n g p rin cip le w ith m em bers h as b een to f o cus o n a rm in g th em w ith th e to ols a nd tr a in in g

t h ey n eed to im pro ve th eir e xis ti n g s a le s fo rc e r ig ht n o w . T his is a w orth y g o al a nd o ne th at th e b est

o rg aniz a ti o ns hav e sh o w n gre at su ccess in purs u in g. T here is am ple ev id ence to su ggest th at

C halle ngers c an b e m ad e. W e’v e s e en th is fir s th and : O ur o w n S E C S olu ti o ns g ro up (th e c o nsu lti n g

a rm o f S E C ) h as h ad tr e m end ous s u ccess h elp in g o ur m em bers to b uild C halle ngers w ith in th eir o w n

o rg aniz a ti o ns.

If y o u a re a s a le s r e p , r e gard le ss o f w heth er o r n o t y o u a re a n atu ra l C halle nger, th is d is c ussio n o f

t h e C halle nger S ale s M odel c o nta in s in sig hts th at w ill h elp b oost y o ur p ers o nal e ffe cti v eness a s a

s a le sp ers o n. W hile y o ur c urre nt a p pro ach m ay d iffe r f r o m th e C halle nger m odel, d on’t th in k o f th ese

d iffe re nces a s in su rm ounta b le o r s o m eho w c arv ed in s to ne. U nd ers ta nd in g th at th ese g ap s e xis t a nd ,

m ore i m porta nt, th at y o u h av e i t i n y o ur p ow er to c lo se th em , i s a c riti c al p art o f th e j o urn ey. Prin cip le # 2: I t’s t h e C om bin atio n o f S kills T hat M atte rs

O ne o f th e k ey le sso ns fr o m o ur w ork is th at it’ s th e c o m bin ati o n o f th e C halle nger a ttr ib ute s— th e

a b ility to te ach, ta ilo r, ta ke c o ntr o l, a nd d o it a ll w hile le v era gin g c o nstr u cti v e te nsio n— th at se ts

C halle ngers a p art.

If y o u te ach w ith o ut ta ilo rin g, y o u c o m e o ff a s ir re le v ant. If y o u ta ilo r b ut d on’t te ach, y o u ris k

s o und in g lik e e v ery o th er su p plie r. If y o u ta ke c o ntr o l b ut o ffe r n o v alu e, y o u ris k b ein g sim ply

a nno yin g. T hus th e V enn d ia gra m y o u s e e in fig ure 3 .1 . T his is a g ra p hic al s n ap sh o t o f w hat “ go od”

l o oks lik e w hen it c o m es to re p p erfo rm ance. T hin k o f th is a s a s in gle s n ap sh o t o f th e “ new h ig h

p erfo rm er.” B ecause th ese s k ills a re m ost e ffe cti v e w hen u se d in c o m bin ati o n, w e s tr o ngly u rg e o ur

m em bers to a v oid th e te m pta ti o n to “ cherry -p ic k” w hen i t c o m es to r o llin g o ut th e m odel.

But ju st a s n atu re a b ho rs a v acuum , c o m panie s a b ho r d up lic ati v e in v estm ent. F or th is r e aso n, w e

o fte n h ear c o m merc ia l l e ad ers ta lk a b out s k ip pin g e le m ents o f th e m odel g iv en r e cent i n iti a ti v es. F or

i n sta nce, s o m e c o m panie s w is h to fo cus o nly o n ta ilo rin g a nd ta kin g c o ntr o l b ecause th ey re centl y

p oure d m oney in to d esig nin g n ew s a le s c o lla te ra l. W hile w e c an’t d ic ta te w hat c o m panie s d o w ith

t h e m odel, w e a re u p fr o nt w ith o ur fe ed back a ro und s u ch p arti a l r o llo uts : In d iv id ual e le m ents o f th e

m odel, w hen in v este d in , c an d eliv er p erfo rm ance im pro vem ents o ver th e sta tu s q uo , b ut fo r th e

m odel to r e ally w ork , a ll e le m ents m ust b e i n v este d i n a nd d ev elo ped . T here a re n o s h o rtc uts to f u lly

r e aliz in g th e p ote nti a l p erfo rm ance g ain s th at th e m odel o ffe rs .

S ourc e: S ale s E xecuti v e C ouncil r e se arc h.

Fig ure 3 .1 .

K ey S kills W ith in th e C halle nger S ellin g M odel P rin cip le # 3: C halle n gin g I s A bou t O rg an iz a tio n al C ap ab ilit y , N ot J u st R ep S kills

M any o rg aniz a ti o ns a ssu m e th at th e m ig ra ti o n to th e C halle nger S ellin g M odel is a q uesti o n o nly o f

i m pro vin g i n d iv id ual r e p s k ills . F or th e m odel to r e ally w ork , th at i s e m phati c ally n o t th e c ase . T his

j o urn ey is a ctu ally ju st a s m uch a b out b uild in g o rg aniz a ti o nal c ap ab iliti e s a s it is a b out d ev elo pin g

i n d iv id ual s k ills .

Build in g a te achin g cap ab ility , w hic h w e w ill d is c uss in m uch m ore d eta il in th e fo llo w in g

c hap te rs , i s n o t s o m eth in g th at y o u j u st w ant y o ur i n d iv id ual r e p s o ut th ere f ig urin g o ut o n th eir o w n.

W hile it is tr u e th at s o m e o f y o ur e xis ti n g C halle ngers c an d o th is e ffe cti v ely , a n o rg aniz a ti o n th at

l e av es th e te achin g c o nte nt u p to i ts i n d iv id ual r e p s w ill b e p ulle d i n m any d iffe re nt d ir e cti o ns a s r e p s

p ro m is e custo m ers so lu ti o ns to m yria d busin ess is su es— in clu d in g m any yo ur co m pany is no t

e q uip ped to s o lv e.

The a ct o f d eliv erin g a te achin g p itc h i s a s k ill, to b e s u re , b ut th e

co nte n t

o f a te achin g p itc h— th e

b usin ess is su es y o u te ach c usto m ers to v alu e, th e id ea a ro und w hic h y o u r e fr a m e h o w th e c usto m er

t h in ks a b out th eir b usin ess— must b e s c ala b le a nd re p eata b le , a nd a s s u ch, m ust b e c re ate d b y th e

o rg aniz a ti o n ( in m ost o rg aniz a ti o ns, th is i s th e j o b o f m ark eti n g).

The s a m e c an b e s a id f o r p arts o f ta ilo rin g. W hile th ere i s a c le ar r o le f o r th e i n d iv id ual r e p o n th e

t a ilo rin g fr o nt, n am ely , re co gniz in g h o w to m odify th e te achin g m essa ge fo r d iffe re nt in d iv id uals

a cro ss th e c usto m er o rg aniz a ti o n, th e o rg aniz a ti o n h as a n im porta nt r e sp onsib ility w hen it c o m es to

t a ilo rin g a s w ell. F ir s t, o rg aniz a ti o ns c an le v era ge b usin ess in te llig ence a nd r e se arc h a sse ts to h elp

d ev elo pin g C halle ngers b ette r ta ilo r th eir m essa ges to e ach c usto m er’s i n d ustr y a nd c o m pany c o nte xt.

T he o rg aniz a ti o n a ls o b ears th e r e sp onsib ility fo r id enti fy in g w hic h te achin g m essa ges w ill r e so nate

w ith w hic h sta keho ld ers . A o ne-s iz e -fits -a ll te achin g m essa ge is unlik ely to b e te nab le fo r m ost

s u p plie rs , a sid e fr o m th o se w ho se ll in a sin gle lin e o f b usin ess to a h ig hly h o m ogeneo us se t o f

c usto m ers . Y et in d iv id ual c usto m er s ta keho ld er s e gm enta ti o n a t th is le v el, a gain , is ju st a s m uch a n

o rg aniz a ti o nal c ap ab ility a s i t i s a n i n d iv id ual s k ill.

If ta ilo rin g is h alf in d iv id ual/h alf o rg aniz a ti o nal, th e o nly c o m ponent o f th e C halle nger m odel th at

c an tr u ly b e c alle d a

la rg ely

in d iv id ual s k ill is ta kin g c o ntr o l. H ere is w here r e p u p sk illin g w ill p ay

s ig nific ant d iv id end s, a nd in c hap te r 7 w e w ill e xp la in th e b est w ay to d riv e th is b ehav io r in to th e

f r o nt lin e. H ow ev er, it is w orth n o ti n g th at e v en h ere , th e o rg aniz a ti o n h as a ro le to p la y. N am ely ,

C halle nger r e p s a rm ed w ith p ow erfu l te achin g m essa ges p ro duced b y th eir o rg aniz a ti o ns w ill b e i n a

m uch b ette r p ositi o n to ta ke c o ntr o l o f th e c usto m er c o nv ers a ti o n. A s w ell, re cent S E C re se arc h

s h o w s th at th e o rg aniz a ti o n p la ys a n i m porta nt r o le i n e q uip pin g r e p s to i d enti fy a nd p ro perly e ngage

w ith th e r ig ht s ta keho ld ers o n th e c usto m er s id e— an i m porta nt p art o f ta kin g c o ntr o l o f th e s a le . Prin cip le # 4: B uild in g t h e C halle n ger S ale s F orc e I s a J ou rn ey, N ot a n

Overn ig h t T rip

A b ig m is ta ke w e se e o rg aniz a ti o ns m ake in th eir C halle nger e ffo rts is a ssu m in g th at c hange w ill

h ap pen in sta ntl y . M ovin g to a C halle nger m odel is a co m merc ia l tr a nsfo rm ati o n, o ne th at early

a d opte rs te ll u s ta kes ti m e to g et r ig ht. P re cis e ly b ecause th e C halle nger m odel d em and s c hanges b oth

t o o rg aniz a ti o nal c ap ab iliti e s a nd to i n d iv id ual r e p b ehav io rs a nd s k ills , i t i s h ard w ork .

Ram min g th ro ugh C halle nger tr a in in g fo r re p s w ith o ut a ls o c are fu lly c o nstr u cti n g ro bust te achin g

p itc hes fo r th em to d eliv er o r a rm in g fr o ntl in e m anagers to re in fo rc e th e rig ht b ehav io rs a nd s k ills

m ig ht y ie ld a sm all b um p in re p p ro ducti v ity , b ut tw o o utc o m es a re p ra cti c ally g uara nte ed : T he

p erfo rm ance b oost a tta in ed w ill f a ll w ell s h o rt o f w hat i t c o uld h av e d eliv ere d i f d one p ro perly , a nd

m ore l ik ely th an n o t i t w ill b e p erc eiv ed a s th e tr a in in g “ fla v or o f th e m onth ,” s o on to b e f o rg o tte n o r

r e je cte d b y m ost r e p s.

Early a d opte rs a tte st to th e fa ct th at m ovin g to th e C halle nger S ellin g M odel is a jo urn ey. T ho se

w ho ’v e b een d ow n th is p ath p eg th e ti m e to fu ll a d opti o n in te rm s o f y ears , n o t w eeks o r m onth s.

I n d eed , m uch o f th e u p fr o nt e ffo rt w ill b e s p ent g etti n g y o ur o w n le ad ers h ip te am o n b oard w ith th e

n ew m odel. T he C halle nger m odel, in o th er w ord s, is n ’t a b olt- o n so ftw are up date — it’ s a new

o pera ti n g sy ste m fo r th e c o m merc ia l o rg aniz a ti o n. T ho se lo okin g fo r a q uic k w in w ould b e w ell

a d vis e d to l o ok e ls e w here .

If y o u’re re ad y to ta ke y o ur o rg aniz a ti o n o n th is tr a nsfo rm ati o n jo urn ey, h o w ev er, re ad o n. T he

a d vanta ges th at a re a ccru in g to fir s t m overs a re e no rm ous. T he C halle nger m odel o ffe rs a n ew a nd

p ow erfu l w ay o ut o f th e s o lu ti o n s e llin g m ora ss th at h as h ad s a le s o rg aniz a ti o ns a cro ss i n d ustr ie s a nd

a ro und th e w orld i n a v is e g rip f o r y ears . DO ES T H E C H ALLEN G ER S E LLIN G M ODEL W ORK?

S oon a fte r w e b egan s h arin g th e fin d in gs fr o m o ur r e se arc h, w e b egan h earin g s to rie s b ack fr o m o ur

m em bers a b out h o w th eir r e p s w ere e m plo yin g th e p rin cip le s o f th e C halle nger S ellin g M odel w ith

c usto m ers — ofte n to o uts ta nd in g e ffe ct. L et’ s l o ok a t e ach o f th e p illa rs o f th e m odel i n tu rn to g iv e a

s e nse o f w hat i t l o oks l ik e w hen d one w ell. Tea ch in g f o r D if fe re n tia tio n

T he th in g th at r e ally s e ts C halle nger r e p s a p art i s th eir a b ility to te ach c usto m ers s o m eth in g n ew a nd

v alu ab le ab out ho w to co m pete in th eir m ark et. O ur re se arc h o n custo m er lo yalty , w hic h w e’ll

d is c uss in d ep th in th e n ext c hap te r, s h o w s th at th is is th e e xact b ehav io r th at w in s c usto m ers fo r th e

l o ng te rm .

Teachin g is a ll a b out o ffe rin g c usto m ers u niq ue p ers p ecti v es o n th eir b usin ess a nd c o m munic ati n g

t h o se p ers p ecti v es w ith p assio n a nd p re cis io n i n a w ay th at d ra w s th e c usto m er i n to th e c o nv ers a ti o n.

T hese new p ers p ecti v es ap ply no t to yo ur p ro ducts and so lu ti o ns, b ut to ho w th e custo m er can

c o m pete m ore e ffe cti v ely in th eir m ark et. It’ s in sig ht th ey c an u se to fr e e u p o pera ti n g e xp ense s,

p enetr a te n ew m ark ets , o r r e d uce r is k .

To s e e h o w th is te achin g a p pro ach w ork s in p ra cti c e, w e’ll g iv e y o u a fe w e xam ple s. T he fir s t is

f r o m o ne o f o ur m em bers a t a n o ffic e f u rn itu re m anufa ctu re r. A s e nio r m em ber o f th e c o m pany’s s a le s

l e ad ers h ip te am to ld u s th e s to ry o f a re p w ho w as s tr u gglin g to g ain tr a cti o n w ith a p ro sp ecti v e

c usto m er. T he c usto m er h ad ju st b uilt a n ew h ead quarte rs fa cility a nd o ne o f th eir c o m peti to rs h ad

b een s e le cte d to fu rn is h th e b uild in g. T he c o m pany s e em ed to h av e b een c ut o ut o f th e b usin ess, b ut

t h e r e p — a b ra nd -n ew h ir e — sti ll f e lt th ere w as a n o pportu nity to g ain a f o oth o ld i n th e n ew b uild in g

b efo re th e c o m pany to ok d eliv ery f r o m th eir c o m peti to r. A fte r s o m e p ers is te nce, s h e l a nd ed a m eeti n g

w ith th e c o m pany’s h ead o f r e al e sta te a nd f a ciliti e s.

One o f th e k ey p rio riti e s fo r th is c o m pany w as to c re ate c o lla b ora ti v e s p aces w here e m plo yees

c o uld m ore e ffe cti v ely i n te ra ct w ith o ne a no th er. I n l o okin g a t th e a rc hite ct’ s d esig ns, s h e w as a b le to

t e ll h im , “ W ell, w e h av e ro bust d ata th at in d ic ate s th at c o lla b ora ti o n d oesn ’t h ap pen in g ro up s o f

e ig hts . I t h ap pens i n tw os a nd th re es, a nd w hen y o u g et to s e v en i t s to ps b ein g p ro ducti v e. Y ou m ay b e

b uild in g th e w ro ng s iz e c o nfe re nce r o om s.”

“T hat’ s g re at to k no w ,” r e sp ond ed th e c usto m er, “ b ut th e c o nfe re nce r o om s h av e a lr e ad y b een b uilt.

W hat c an w e d o a b out th at n o w ?”

Lev era gin g h er p ro duct k no w le d ge, th e r e p e xp la in ed h o w th ey c o uld p ut u p a m ovab le w all d ow n

t h e m id dle o f th e c o nfe re nce ro om s, c re ati n g tw o ro om s th at w ould fit s m alle r g ro up s o f th re e a nd

f o ur. T hen s h e ta lk ed a b out a p ro duct th e c o m pany o ffe rs th at c o uld h elp fa cilita te c o lla b ora ti o n fo r

t h em . S he s ta rte d fr o m a n in sig ht, ta ught th e c usto m er a b out a p ro ble m th ey d id n’t k no w th ey h ad ,

d ev elo ped i n te re st, a nd c hanged th e w ho le d ir e cti o n o f th e a cco unt.

Ano th er g o od e xam ple c o m es f r o m a g lo bal p harm aceuti c al c o m pany. A nyb ody w ho k no w s p harm a

k no w s a b out th e a rm s r a ce th at th e in d ustr y ’s b ig p la yers h av e b een lo cked in fo r y ears — to o m any

r e p s fig hti n g to g et fa ce ti m e w ith to o fe w d octo rs . In th is to ugh s a le s e nv ir o nm ent, th is p arti c ula r

c o m pany w as lo okin g to b re ak th ro ugh a nd b eco m e th e s u p plie r th at p hysic ia ns p re fe r to s p end ti m e

w ith . H ow ev er, c usto m er s u rv ey d ata c le arly in d ic ate d th at in th e e yes o f c usto m ers , s u p plie rs w ere

i n d is ti n guis h ab le f r o m o ne a no th er.

To c ut th ro ugh th e n o is e , th e c o m pany in q uesti o n w ork ed to a rm its r e p s to te ach p hysic ia ns n ew

i n sig hts — no t a b out th eir p ro ducts , b ut a b out h o w to im pro ve th eir o w n e ffe cti v eness a s m ed ic al

p ra cti ti o ners . R ely in g o n th e c o m pany’s w ealth o f k no w le d ge o n d is e ase m anagem ent, th eir m ark eti n g

t e am b uilt a s e rie s o f “ p ati e nt j o urn eys” th at r e p s c o uld s h are w ith d octo rs . T hese j o urn eys l o oked a t

t h e e nti r e c ycle o f a n i lln ess, f r o m th e ti m e s y m pto m s a p pear to tr e atm ent a nd , f in ally , f o llo w -u p .

For a d octo r, s e ein g th e fu ll life c ycle o f a n illn ess c an b e p re tty e ye-o penin g. F or e xam ple , th e co m pany k no w s th at p ati e nts w ith a c erta in i lln ess h av e a n a v era ge o f 2 .5 e xacerb ati o ns— fr e q uentl y

re q uir in g a v is it to th e e m erg ency ro om — a y ear. H ow ev er, th e fa m ily p hysic ia n fo r th ese p ati e nts

mig ht n ev er k no w th at th ese e m erg encie s o ccur b etw een v is its . A s a c o nse q uence, th ey a re tr e ati n g

th e p ati e nts f o r a m uch l e ss s e v ere m ed ic al c o nd iti o n th an th e p ati e nts a ctu ally h av e. O nce th ey l e arn

th is n ew in fo rm ati o n, th ey c an c hange th e p ati e nt’ s tr e atm ent to a v oid o r s u b sta nti a lly re d uce th ese

exacerb ati o ns, w hic h re ally im pro ves th e q uality o f p ati e nt c are th e p hysic ia n c an d eliv er. T his is

in sig ht p hysic ia ns v alu e, a nd it’ s h elp ed th is p arti c ula r s u p plie r g ain a ccess to p hysic ia ns in a w ay

th ey n ev er e njo yed b efo re .

One l a st e xam ple . I n s a le s th ese d ays, th ere ’s a l o t o f d is c ussio n a b out h o w r e p s c an “ get a head o f

th e R FP.” T his s to ry illu str a te s h o w te achin g c an b e u se d e ffe cti v ely n o t ju st to g et a head o f a n R FP,

but to a ctu ally r e sh ap e a n R FP i n a g iv en s u p plie r’s f a v or.

The sto ry c o m es fr o m a su p plie r o f e m plo yee b enefit m anagem ent se rv ic es w ho w as re centl y

in fo rm ed b y a l o ngti m e c usto m er th at th e c o m pany h ad d ecid ed to p ut th e c o ntr a ct f o r th e b usin ess o ut

to b id i n a n a tte m pt to s a v e m oney. F ru str a te d th at th is l o ngti m e c usto m er w as tr y in g to p ull th em i n to

a p ric e w ar, th e su p plie r to ld th em th at th ey w ere n’t in te re ste d in th at k in d o f p artn ers h ip w ith a

clie nt, i.e ., o ne b ase d o n p ric e. S o th ey to ld th e c usto m er th at th ey w ould re sp ectf u lly d eclin e to

su b m it a b id i n r e sp onse to th e f o rth co m in g R FP. B ut n o t b efo re th ey m ad e a r a th er u niq ue g estu re .

They to ld th e c usto m er th at s in ce th ey w ere n’t g o in g to b e p arti c ip ati n g i n th e b id din g p ro cess, b ut

valu ed th e lo ng-te rm w ork in g r e la ti o nsh ip th ey h ad , th ey w ould b e h ap py to h elp th em th in k th ro ugh

th e c o nstr u cti o n o f th eir R FP to e nsu re th at th ey w ere re q uesti n g th e rig ht th in gs o ut o f th eir n ext

su p plie r.

Appre cia ti v e o f th e fr e e c o nsu lti n g th e s u p plie r w as o ffe rin g, th e c usto m er in v ite d th em d ow n fo r

th e d ay, w here th ey s p ent a fe w h o urs o utl in in g w hat s h o uld b e in th e b id . T he d is c ussio ns in clu d ed

ad vic e a lo ng th e lin es o f, “ If a ny s u p plie r te lls y o u th e fo llo w in g th re e th in gs, th ey’re w ro ng. A nd

here ’s w hy.” “ If th ey s a y y o u n eed th ese fo ur th in gs, y o u a ctu ally d on’t, a nd h ere ’s w hy.” “ N o m atte r

what, m ake s u re th at y o ur b id in clu d es th e fo llo w in g tw o th in gs, a nd h ere ’s w hy.” “ If a ny c o m pany

te lls y o u th o se tw o th in gs a re n’t n ecessa ry , te ll th em th ey’re w ro ng. A nd h ere ’s w hy. T hey’re ju st

tr y in g to g et y o u to b uy w hat th ey w ant to s e ll, b ut h ere ’s w hy y o u n eed to in sis t o n th ese tw o k ey

th in gs.”

The c usto m er fo und th e a d vic e to b e h ugely v alu ab le , a s th ese w ere p oin ts th ey w ould n’t h av e

th o ught to c o nsid er o n th eir o w n. O nce th e R FP w as b uilt, th e s u p plie r’s a cco unt te am l o oked a t i t a nd

sa id , “ O kay, w ell, i f

th at

i s th e b id y o u’re g o in g to p ut o ut th ere , th en w e’d l ik e to p arti c ip ate s in ce i t

desc rib es e xactl y th e k in d o f p artn ers h ip w e’d l ik e to h av e w ith y o u.”

This l a st e xam ple i n p arti c ula r i llu str a te s w hy th is te achin g a p pro ach w ork s s o w ell. T he c o nte nt o f

th e r e p ’s te achin g p itc h i s c are fu lly l in ked to th e s u p plie r’s u niq ue c ap ab iliti e s. T he a b ility o f a s a le s

re p to d eliv er th is k in d o f u niq ue in sig ht is a rg uab ly th e m ost p ow erfu l w eap on in th e C halle nger’s

ars e nal a nd a ctu ally th e b ig gest d riv er o f B 2B c usto m er lo yalty . W e’ll fo cus o n b uild in g th is k in d o f

te achin g c ap ab ility i n c hap te rs 4 a nd 5 . Tailo rin g f o r R eso n an ce

W hile te achin g i s a b ove a ll o th ers th e d efin in g a ttr ib ute o f b ein g a C halle nger, th e a b ility to ta ilo r th e

t e achin g m essa ge to d iffe re nt ty p es o f custo m ers — as w ell as to d iffe re nt in d iv id uals w ith in th e

c usto m er o rg aniz a ti o n— is w hat m akes th e te achin g p itc h r e so nate a nd s ti c k w ith th e c usto m er.

Tailo rin g r e lie s o n th e r e p ’s k no w le d ge o f th e s p ecific b usin ess p rio riti e s o f w ho m ev er h e o r s h e i s

t a lk in g to — th e s p ecific o utc o m es th at p arti c ula r p ers o n v alu es m ost, th e r e su lts th ey’re o n th e h o ok to

d eliv er f o r th eir c o m pany, a nd th e v ario us e co no m ic d riv ers m ost l ik ely to a ffe ct th o se o utc o m es.

If a C halle nger r e p i s s itti n g a cro ss th e ta b le f r o m a h ead o f m ark eti n g, h e u nd ers ta nd s h o w to c ra ft

h is m essa ge to r e so nate w ith h er s p ecific p rio riti e s. A nd i f h e’s m eeti n g w ith s o m eo ne i n o pera ti o ns,

h e k no w s h o w to m odify th e m essa ge a cco rd in gly . B ut th is is n ’t ju st a m easu re o f b usin ess a cum en,

i t’ s a m easu re o f a gility — th e r e p ’s a b ility to ta ilo r th e s to ry to th e in d iv id ual s ta keho ld er’s b usin ess

e nv ir o nm ent. W hat s p ecific ally d o th ey c are a b out? H ow is th eir p erfo rm ance m easu re d ? H ow d o

t h ey f it i n to th e o vera ll c usto m er o rg aniz a ti o n?

An exam ple th at d em onstr a te s th e p ow er o f effe cti v e ta ilo rin g co m es fr o m o ur m em ber at a

b usin ess s e rv ic es p ro vid er. T w o o f th eir r e p s h ad b een j o in tl y w ork in g o ne a cco unt f o r a p pro xim ate ly

s ix m onth s, b uild in g r a p port w ith th e b usin ess l e ad ers a cro ss th e o rg aniz a ti o n, a ll th e w hile p re p arin g

f o r a b ig p ro posa l p re se nta ti o n to th e c o m pany’s C EO a nd m anagem ent te am . A fte r m ulti p le m eeti n gs

a nd p re se nta ti o ns, th e re p s h o m ed in o n w hat th ey th o ught w as m ost n eed ed b y th e c usto m er— an

o uts o urc in g s o lu ti o n th at w ould d eliv er c o st s a v in gs to th e b usin ess.

But j u st a w eek b efo re th ey w ere a b out to p re se nt to th e C EO a nd h is te am , th e r e p s a tte nd ed th eir

o w n c o m pany’s a nnual sa le s m eeti n g, w hic h h ad fo cuse d o n b uild in g C halle nger sk ills a cro ss th e

s a le s o rg aniz a ti o n. A t th e s e ssio n o n ta ilo rin g, th e r e p s r e aliz e d th at th ey h ad n’t f u lly i n v esti g ate d th e

p ers o nal m oti v ati o ns a nd b usin ess o bje cti v es o f th e c usto m er’s C EO a nd w ere p ote nti a lly u np re p are d

t o m ake th eir b est p itc h a t th e u p co m in g m eeti n g.

They c alle d a l a st- m in ute m eeti n g w ith s o m e o f th e k ey s ta keho ld ers i n th e c usto m er o rg aniz a ti o n to

b ette r u nd ers ta nd th e p ers o nal g o als a nd o bje cti v es o f th e C EO — all i n a n a tte m pt to s e e i f th ere w as

s o m e in sig ht th ey c o uld b rin g to th e ta b le th at w ould p ers o nally a p peal to h im . W hat th ey le arn ed in

t h is m eeti n g p ro ved in v alu ab le . T hey fo und o ut th at th e C EO w as e xtr e m ely fo cuse d o n th e p oor

c usto m er s a ti s fa cti o n s c o re s th e c o m pany h ad r e centl y r e ceiv ed . A nd th ey le arn ed th at th e C EO w as

h im se lf a te chno lo gy j u nkie .

In ste ad o f g o in g in to th e m eeti n g w ith th e c o st s a v in gs– fo cuse d p itc h th ey h ad a lr e ad y p re p are d ,

t h ey s w itc hed g ears a nd f o cuse d th e c o nv ers a ti o n o n w ays i n w hic h th e s o lu ti o n th ey w ere p ro posin g

n o t only w ould cut co sts but co uld at th e sa m e ti m e im pro ve custo m er sa ti s fa cti o n and is su e

r e so lu ti o n r e sp onse ti m e b y l e v era gin g n ew te chno lo gie s th e s u p plie r h ad r e centl y d ev elo ped . W hat’ s

m ore , th e te chno lo gy w ould a llo w e v ery o ne fr o m th e C EO d ow n to lin e m anagers to g et re al- ti m e

v is ib ility i n to c usto m er s e rv ic e i s su es a nd i s su e r e so lu ti o n r e sp onse ti m es.

The C EO im med ia te ly s a t u p a nd lis te ned w ith r a p t a tte nti o n to th e s a le s p itc h. W hat w as to b e a

s ta nd ard r e v ie w o f a s u p plie r p ro posa l tu rn ed in to a s u rp ris in g d is c ussio n o f o ne o f th e C EO ’s h o t-

b utto n is su es. A t th e e nd o f th e p re se nta ti o n, th e C EO th anked th e r e p s fo r s h ed din g n ew lig ht o n a

p ers is te nt b usin ess p ro ble m a nd d em onstr a ti n g c ap ab iliti e s th at h e d id n’t re aliz e th e s u p plie r h ad .

W hile th e c o m peti to rs s tu ck to th eir s ta nd ard p ro posa ls , th is s u p plie r w on th e b usin ess b y ta ilo rin g

t h eir m essa ge to w hat th e C EO c are d a b out m ost. In a ti m e w hen c o nse nsu s is m ore im porta nt th an ev er to g et th e d eal d one, i t’ s n o s u rp ris e th at th e r e p w ho w in s i n th is e nv ir o nm ent i s th e o ne w ho c an

effe cti v ely ta ilo r th e m essa ge to a w id e ra nge of custo m er sta keho ld ers in ord er to build th at

co nse nsu s. T his i s a to pic w e’re g o in g to e xp lo re i n a l o t m ore d ep th i n c hap te r 6 . Takin g C on tr o l o f t h e S ale

T he fin al c hara cte ris ti c th at s e ts C halle nger r e p s a p art is th eir a b ility to a sse rt a nd m ain ta in c o ntr o l

o ver th e s a le . N ow , b efo re w e g o a ny f u rth er, i t’ s i m porta nt to n o te th at b ein g a sse rti v e d oes n o t m ean

b ein g a ggre ssiv e o r, w ors e sti ll, a nno yin g o r a b usiv e. T his is a ll a b out th e re p s’ w illin gness a nd

a b ility to s ta nd th eir g ro und w hen th e c usto m er p ush es b ack.

A C halle nger’s a sse rti v eness ta kes tw o f o rm s. F ir s t, C halle ngers a re a b le to a sse rt c o ntr o l o ver th e

d is c ussio n o f p ric in g a nd m oney m ore g enera lly . T he C halle nger r e p d oesn ’t g iv e i n to th e r e q uest f o r

a 1 0 p erc ent d is c o unt, b ut b rin gs th e c o nv ers a ti o n b ack to th e o vera ll s o lu ti o n— push in g f o r a gre em ent

o n v alu e, ra th er th an p ric e. S eco nd , C halle ngers a re a ls o a b le to c halle nge c usto m ers ’ th in kin g a nd

p re ssu re th e c usto m er’s d ecis io n-m akin g c ycle — both to r e ach a d ecis io n m ore q uic kly a s w ell a s to

o verc o m e th at “ in d ecis io n i n erti a ” th at c an c ause d eals to s ta ll i n d efin ite ly .

In fa ct, if y o u th in k a b out it, if a k ey to a C halle nger r e p ’s s u ccess is te achin g— or r e fr a m in g h o w

t h at c usto m er s e es th eir w orld — th en th e r e p i s g o in g to h av e to b e w illin g to g et a l ittl e s c uffe d u p i n

t h e p ro cess. J u st a s y o u c an’t b e a n e ffe cti v e te acher if y o u’re n o t g o in g to p ush y o ur s tu d ents , y o u

c an’t b e a n e ffe cti v e C halle nger if y o u’re n o t g o in g to p ush y o ur c usto m ers . T his a p pro ach is so

i m porta nt to day w ith c usto m er r is k a v ers io n a s h ig h a s i t i s . I t’ s f u nny, s a le s l e ad ers o fte n l a m ent th at

c o re -p erfo rm in g r e p s f a ll i n to th eir c o m fo rt z o ne w hen s e llin g, b ut a rg uab ly th e b ig ger p ro ble m i s th at

c usto m ers o fte n fa ll in to th eir c o m fo rt z o ne w hen it c o m es to b uyin g. A nd th at’ s w hat th e C halle nger

r e p d oes— sh e m oves c usto m ers o ut o f th eir c o m fo rt z o ne b y s h o w in g th em th eir w orld i n a d iffe re nt

l ig ht. T he k ey, o f c o urs e , i s to d o th is w ith c o ntr o l, d ip lo m acy, a nd e m path y.

As one of our lo ngti m e m em bers , th e fo rm er C SO of one of th e w orld ’s la rg est chem ic al

m anufa ctu re rs , e xp la in s, “ In p ra cti c e, a sse rti n g c o ntr o l c an ta ke m any f o rm s. I n e sse nce, i t m eans th at

t h e s a le s p ro fe ssio nal ta kes th e le ad in th e c usto m er d is c ussio n w ith a s p ecific e nd in m in d .” W hile

t h e e nti r e to olk it f o r ta kin g c o ntr o l i s b oth l a rg e a nd c o m ple x, th ere a re m any s im ple to ols th at c an b e

a p plie d w ith p ow er.

“D is c ussio ns o ver p ric e— pric e in cre ase s o r re q uests fo r p ric e d ecre ase s— are v ery h ig h-v alu e

a re as fo r th e s a le s p ro fe ssio nal to ta ke c o ntr o l o f,” h e s a ys. “ W hen th e to pic o f p ric e c o m es u p , a

p ow erfu l te chniq ue i s f o r th e s a le s p ro fe ssio nal to s h ift th e d is c ussio n f r o m p ric e to v alu e. T he v alu e

o f th e c urre nt o ffe rin g i s a g re at p la ce to s ta rt th is d ia lo gue. D urin g th e c o urs e o f s u ch a d is c ussio n, i t

i s use fu l to get th e custo m er to ra nk th e ele m ents o f th e o ffe rin g in o rd er o f im porta nce. T his

s o m eti m es e nab le s th e c usto m er to s e e th e o ffe rin g in a d iffe re nt lig ht; th ese n ew in sig hts a re v ery

u se fu l to b oth th e s a le s p ro fe ssio nal a nd th e c usto m er a s th ey th in k a b out v alu e.”

He to ld u s th e s to ry o f o ne o f h is s a le s r e p s, w ho w as i n a s itu ati o n w here h e h ad to l e t a l o ngti m e

c usto m er k no w a b out a p ric e i n cre ase — one th at w as n o t o nly s u b sta nti a l, b ut a ls o o ut o f s y nc w ith th e

e co no m y. N one o f th e c usto m er’s o th er s u p plie rs w ere ra is in g p ric es, b ut th e ra w m ate ria l fo r th e

s u p plie r’s p ro duct h ad g o ne u p s o m uch th at i t d ic ta te d th e n eed . A t th e s a m e ti m e, y ears b efo re , th at

s a m e c usto m er h ad r e q ueste d th at th e p ro duct b e s h ip ped i n a n e xp ensiv e, n o nsta nd ard p ackage. O ver

t i m e, th e co st o f th is p ackage had su b sta nti a lly re d uced th e p ro fita b ility o f th e b usin ess fo r th e

s u p plie r. D urin g th e d is c ussio n o f th e p ric e in cre ase , th e s a le s p ro fe ssio nal a sk ed th e c usto m er to

r a nk th e v ario us f e atu re s o f th e s u p plie r’s o ffe rin g. T he e xp ensiv e c usto m p ackagin g d id n’t r a nk i n th e

t o p th re e. A s a c o nse q uence, th e s u p plie r a nd th e s a le s p ro fe ssio nal a gre ed to a l o w er p ric e i n cre ase

a nd a s h ift to s ta nd ard p ackagin g. T he c hange i n p ackagin g i m pro ved p ro fita b ility m ore th an th e p ric e in cre ase its e lf. “ T his w as a g re at o utc o m e,” h e sa id , “ usin g a re la ti v ely sim ple d ev ic e to a sse rt

co ntr o l i n a p ric e d is c ussio n to d eliv er a w in f o r b oth p arti e s.” A R O AD M AP F O R T H E R EST O F T H IS B O OK

W hat’ s th e b est p ath to b uild in g C halle nger re p s? H ere is h o w w e’ll ta ckle th is q uesti o n in th e

f o llo w in g c hap te rs :

• In c hap te rs 4 a nd 5 , w e’ll lo ok a t th e n o ti o n o f te achin g. W e’ll a d dre ss th e q uesti o ns o f w hy

te achin g w ork s a nd w hat y o ur r e p s s h o uld b e te achin g i n th e f ir s t p la ce— as w ell a s w hat th e

co nte nt o f th eir “ te achin g p itc h” sh o uld lo ok lik e. M uch o f th is c hap te r w ill c ente r o n th e

criti c al ro le th at th e org aniz a ti o n— in m ost co m panie s, m ark eti n g— pla ys in id enti fy in g

“custo m er-w orth y i n sig hts ” th at l e ad to a s u p plie r’s u niq ue c ap ab iliti e s.

• In c hap te r 6 , w e’ll lo ok a t ta ilo rin g. W e’ll ta ke a d eep d iv e in to w hy ta ilo rin g is a n e ffe cti v e

ap pro ach in to day’s s a le s e nv ir o nm ent a nd lo ok a t w hat th e b est s a le s o rg aniz a ti o ns d o to

eq uip th eir r e p s to ta ilo r— in o th er w ord s, g et th em to a d ap t th eir s a le s a p pro ach a nd m essa ge

to s p ecific in d iv id uals a cro ss th e c usto m er o rg aniz a ti o n. A c riti c al p art o f th e ta ilo rin g s to ry

is th e s h ift w e d is c usse d i n c hap te r 1 to w ard c o nse nsu s b uyin g w ith in c usto m er o rg aniz a ti o ns.

We’ll s p end s o m e ti m e u np ackin g th is tr e nd i n m ore d eta il i n c hap te r 6 .

• In c hap te r 7 , w e’ll d ig d eep in to th e a re a o f ta kin g c o ntr o l a nd d is c uss te chniq ues fo r g etti n g

re p s to i n cre ase th eir a sse rti v eness w ith o ut b eco m in g a ggre ssiv e. A s m enti o ned b efo re , ta kin g

co ntr o l i s a n e asily m is u nd ers to od e le m ent o f th e C halle nger S ellin g M odel. P oorly a p plie d , i t

will d o m ore harm th an go od, b ut co rre ctl y ap plie d , it can b e th e d iffe re nce b etw een a

decis io n a nd “ no d ecis io n.” In a w orld w here th e c usto m er’s s ta tu s q uo is r e ally y o ur w ors t

enem y, a nd c usto m ers a re so in cre asin gly ris k -a v ers e , th e a b ility to ta ke c o ntr o l c an b e a

gam e-c hanger f o r y o ur s a le s r e p s.

• In chap te r 8 , w e w ill lo ok at th e criti c al ro le o f th e fr o ntl in e sa le s m anager in b uild in g

Challe ngers acro ss th e sa le s fo rc e. S pecific ally , w e’ll lo ok at th e is su e of co achin g—

so m eth in g m ost s a le s o rg aniz a ti o ns c o nti n ue to n egle ct. T his is a n a re a o f d eep e xp erti s e fo r

th e S ale s E xecuti v e C ouncil a nd o ne w here w e h av e s o m e c o unte rin tu iti v e d ata a nd p ow erfu l

best p ra cti c es to sh are w ith y o u. T he sto ry d oesn ’t e nd w ith c o achin g, h o w ev er. In so m e

re cent w ork w e’v e c o m ple te d , w e’v e f o und th at h ig h-p erfo rm in g s a le s m anagers a ls o p osse ss

a u niq ue a b ility to in no vate a t th e d eal le v el w ith th eir re p s. If c o achin g is a b out im parti n g

sk ills kno w n to driv e sa le s su ccess, sa le s in no vati o n is ab o ut m ovin g in d iv id ual deals

fo rw ard in a p urp ose fu l m anner. T hey’re d iffe re nt s k ills , b ut b oth a re h ugely im porta nt in a n

org aniz a ti o n s e ekin g to m ake a s h ift to th e C halle nger m odel.

• In c hap te r 9 , w e’ll o ffe r s o m e a d diti o nal w ord s o f g uid ance to le ad ers w ho a re s e ekin g to

tr a nsfo rm th eir c o m merc ia l o rg aniz a ti o ns in to C halle nger o rg aniz a ti o ns. If y o u’re g o in g to

em bark o n th is j o urn ey o f b uild in g C halle ngers , h o w d o y o u d esig n th e c hange e ffo rt s o th at i t

le ad s to r e al, l o ng-te rm c hange a nd n o t j u st th e n ext “ fla v or o f th e m onth ” u p sk illin g e ffo rt?

• L astl y , i n th e a fte rw ord , w e’ll l o ok a t th e n o ti o n o f c halle ngin g b eyo nd th e w orld o f s a le s. T he

Challe nger m odel i s o ne th at, w e b elie v e, i s a b usin ess c o ncep t, n o t j u st a s a le s c o ncep t, a nd

is o ne th at w e’v e s e en e ffe cti v ely e m plo yed i n a v arie ty o f c o rp ora te s e tti n gs— fr o m I T to H R

to f in ance, l e gal, a nd s tr a te gy— and w e’ll d is c uss th is i n m ore d eta il i n th is c lo sin g s e cti o n o f

th e b ook.

4

TEA CHIN G F O R D IF FER EN TIA T IO N ( P A RT 1 ): W HY I N SIG HT M AT TER S

O VER T H E L A ST

fifte en y ears , m ost s a le s tr a in in g h as c ente re d o n a c o re p rin cip le : T he s h o rte st

p ath to s a le s s u ccess i s a d eep u nd ers ta nd in g o f c usto m ers ’ n eed s. I f y o u’re g o in g to s e ll “ so lu ti o ns,”

t h e th in kin g g o es, y o u’v e g o t to f ir s t “ d is c o ver” y o ur c usto m ers ’ m ost p re ssin g p oin ts o f p ain a nd th en

b uild a ti g ht c o nnecti o n b etw een w hat’ s k eep in g th em u p a t n ig ht a nd w hat y o u’re s e ekin g to s e ll.

Not s u rp ris in gly , th en, s a le s l e ad ers h av e s p ent m illio ns o f d olla rs a nd u nto ld h o urs tr a in in g r e p s to

a sk b ette r q uesti o ns. L ots o f th em . P ro bin g q uesti o ns. F in ancia l q uesti o ns. H yp oth eti c al q uesti o ns.

O pen-e nd ed questi o ns. F ollo w -u p questi o ns. A ll desig ned to fig ure out as deep ly as possib le

c usto m ers ’ “ to p th re e s tr a te gic o bje cti v es fo r th e c o m in g y ear,” o r “ th e tw o th in gs th ey’v e g o t to g et

r ig ht th is q uarte r,” o r— bette r s ti ll— th eir c urre nt “ b urn in g p la tf o rm s.”

The i d ea b ein g, i f w e j u st d ig d eep e no ugh to f in d “ th e s to ry b ehin d th e s to ry ,” w e’ll e v entu ally g et

t o a p la ce w here c usto m ers a re s o f o rth co m in g a b out w hat th ey tr u ly n eed th at r ig ht th ere o n th e s p ot

w e c an c ra ft a h ig hly ta rg ete d o ffe r th at p ro vid es th e p erfe ct “ so lu ti o n” to th eir p ro ble m . A s o lu ti o n s o

p erfe ctl y a lig ned w ith th eir n eed s th at th ey h av e n o c ho ic e b ut to b uy i t— no m atte r w hat th e c o st.

It s o und s g re at o n p ap er, b ut th is a p pro ach s u ffe rs o ne m ajo r p ro ble m : It d oesn ’t w ork n early a s

w ell to day a s i t u se d to . C erta in ly i t n o l o nger w arra nts th e m assiv e tr a in in g i n v estm ents p oure d i n to

i m pro vin g re p s’ d is c o very sk ills . A nd th at’ s n o t ju st b ecause im pro vin g re p s’ a b ility to a sk g o od

q uesti o ns pro ves co lo ssa lly diffic ult— esp ecia lly am ong co re -p erfo rm in g re p s— but, m uch m ore

i m porta nt, b ecause th is a p pro ach is b ase d o n a d eep ly fla w ed a ssu m pti o n: th at c usto m ers a ctu ally

k n ow

w hat th ey n eed i n th e f ir s t p la ce. T hat c usto m er n eed s a re s im ply th ere w aiti n g to b e u nlo cked ,

e ith er w illin gly o r b egru d gin gly , th ro ugh th e m aste ry o f o ur i n te rro gati v e te chniq ue.

But w hat i f c usto m ers tr u ly d on’t k no w w hat th ey n eed ? W hat i f c usto m ers ’ s in gle g re ate st n eed —

i r o nic ally — is to

fig ure o ut

e xactl y w hat th ey n eed ?

If th is w ere tr u e, r a th er th an

ask in g

c usto m ers w hat th ey n eed , th e b ette r s a le s te chniq ue m ig ht in

f a ct b e to

te ll

c usto m ers w hat th ey n eed . A nd th at’ s e xactl y w hat C halle ngers d o. W hen y o u g et d ow n

t o it, C halle ngers a re n’t s o m uch w orld -c la ss in v esti g ato rs a s th ey a re w orld -c la ss te achers . T hey

w in n o t b y u nd ers ta nd in g th eir c usto m ers ’ w orld a s w ell a s th e c usto m ers k no w i t th em se lv es, b ut b y

a ctu ally k no w in g th eir c usto m ers ’ w orld

bette r

th an th eir c usto m ers k no w it th em se lv es, te achin g

t h em w hat th ey d on’t k no w b ut s h o uld .

Acro ss th e n ext tw o c hap te rs w e d iv e d eep i n to th e C halle nger’s a b ility to te ach— arg uab ly th e f ir s t

a m ong e q uals a cro ss th e th re e c entr a l C halle nger c o m pete ncie s. A c riti c al p art o f o ur te achin g s to ry

w ill b e a c lo se , c o ncre te l o ok a t w hat te achin g i s a nd i s n o t. W hat i t l o oks l ik e a nd s o und s l ik e, h o w

i t w ork s, a nd h o w to e nsu re w e g et p aid w hen i t’ s d one r ig ht. A nd a lo ng th e w ay, w e’ll a d dre ss to ugh

q uesti o ns w ith s o m e s u rp ris in g a nsw ers . T hin gs l ik e:

• H ow exactl y is a “te achin g” co nv ers a ti o n all th at diffe re nt fr o m a tr a d iti o nal sa le s

co nv ers a ti o n?

• W hat k in d o f c o lla te ra l d o I n eed to te ach e ffe cti v ely ? • H ow m uch o f th is i s tr u ly a m atte r o f i n d iv id ual s k ill v ers u s o rg aniz a ti o nal c ap ab ility ?

• W hat’ s th e r o le o f m ark eti n g i n g etti n g th is r ig ht?

And p erh ap s m ost i m porta nt:

• D o c usto m ers r e ally w ant to b e ta ught i n th e f ir s t p la ce?

Let’ s s ta rt w ith th e la st q uesti o n fir s t. T hat’ s re ally w here th e ru b ber h its th e ro ad in a ny s a le s

ap pro ach: w ith th e c usto m er. A nd i n th e c ase o f th e C halle nger a p pro ach, th is i s th e q uesti o n w e h ear

most o fte n. A fte r a ll, it s e em s o n th e s u rfa ce ra th er a rro gant to s im ply s h o w u p a nd d ecla re to th e

custo m er, “ H ello , I ’ m h ere to te ach y o u!”

But th at’ s e xactl y w hat w e’re s a yin g. P erh ap s n o t in th o se w ord s p er s e — in fa ct, a lm ost c erta in ly

no t in th o se w ord s. B ut s ti ll, a fte r fo ur y ears o f e xte nsiv e c usto m er r e se arc h, w hat w e e m phati c ally

kno w to b e tr u e is th at th at’ s

exa ctly

w hat c usto m ers a re lo okin g fo r m ore th an a nyth in g e ls e in a

su p plie r. IT ’S N O T W HAT Y O U S E LL, I T ’S H OW Y O U S E LL

B egin nin g lo ng b efo re th e g lo bal e co no m y w ent o ff a c liff in 2 008 a nd c o nti n uin g rig ht th ro ugh th e

e nsu in g d ow ntu rn , th e te am a t th e S ale s E xecuti v e C ouncil a nd its sis te r p ro gra m , th e M ark eti n g

L ead ers h ip C ouncil, a p ro gra m o f th e C orp ora te E xecuti v e B oard , h av e s u rv eyed w ell o ver 5 ,0 00

i n d iv id uals at our clie nts ’ custo m er org aniz a ti o ns— ev ery o ne fr o m busin ess ow ners and C -s u ite

e xecuti v es to e nd u se rs , p urc hase in flu encers , p ro cure m ent o ffic ers , a nd e v en th ir d -p arty c o nsu lta nts

— in o rd er to d ete rm in e w hat e xactl y th ey’re l o okin g f o r i n a b usin ess-to -b usin ess s u p plie r.

Specific ally , a cro ss r o ughly fifty q uesti o ns w e a sk ed e ach r e sp ond ent to r a nk th e n am ed s u p plie r

( i.e ., o ur c lie nt o rg aniz a ti o n) v ers u s s im ila r s u p plie rs i n te rm s o f v ario us a ttr ib ute s o f th eir p ro ducts ,

b ra nd , s e rv ic e, a nd p ric e-to -v alu e r a ti o . W e a sk ed a b out a ll th e ty p ic al r e aso ns w hy s o m eo ne m ig ht

c ho ose one su p plie r over ano th er— th in gs lik e pro duct perfo rm ance, pro duct fe atu re s, bra nd

r e co gniti o n, se rv ic e re sp onse ti m es. In ad diti o n, w e ask ed th o se sa m e in d iv id uals a num ber o f

q uesti o ns a b out th e s a le s e xp erie nce its e lf— what it’ s a ctu ally lik e to b uy fr o m th e n am ed s u p plie r

r e la ti v e to th eir c o m peti to rs . F in ally , w e a sk ed e ach r e sp ond ent th re e s p ecific q uesti o ns to g auge th eir

l e v el o f l o yalty to th at s u p plie r: “ O n a s c ale f r o m o ne to s e v en, h o w w illin g a re y o u to :

• k eep b uyin g f r o m th is p arti c ula r s u p plie r;

• b uy e v en m ore f r o m th is s u p plie r g o in g f o rw ard ;

• a d vocate o n th is s u p plie r’s b ehalf a cro ss y o ur o rg aniz a ti o n?”

We w ere n’t ask in g ab out a custo m er’s genera l le v el of hap pin ess, or sa ti s fa cti o n, or ev en

l ik elih o od to b uy— all o f w hic h w e’v e f o und i n e arlie r w ork a t th e M ark eti n g L ead ers h ip C ouncil to

h av e l ittl e i m pact o n B 2B c usto m er l o yalty — but r a th er a b out th eir w illin gness to j o in th at s u p plie r o n

a “ so lu ti o ns jo urn ey.” A cro ss y ears o f lo yalty re se arc h, w e’v e fo und th at th e c o m bin ati o n o f th ese

t h re e q uesti o ns b ette r p re d ic ts d eep er c usto m er r e la ti o nsh ip s a nd , u lti m ate ly , c o m merc ia l g ro w th th an

a ny o th er l o yalty m etr ic w e’v e te ste d .

When w e p ut a ll o f th at in fo rm ati o n to geth er— te ns o f th o usa nd s o f d ata p oin ts — and th en ru n it

t h ro ugh e xte nsiv e a naly sis , it a llo w s u s to d ete rm in e, o f a ll th e w ays to o utp erfo rm th e c o m peti ti o n,

w hat th e m ost i m porta nt f a cto rs a ctu ally

are

d riv in g u p c usto m er l o yalty .

The a nsw er is n o t o nly fa sc in ati n g b ut s o u nexp ecte d fo r m ost s a le s a nd m ark eti n g e xecuti v es th at

t h e re su lts h av e la nd ed in m ore b oard ro om -le v el c o nv ers a ti o ns th an a ny o th er p ie ce o f re se arc h

w e’v e e v er c o nd ucte d ( s e e f ig ure 4 .1 ).

Sourc e: S ale s E xecuti v e C ouncil r e se arc h.

Fig ure 4 .1 .

R ep re se nta ti v e D riv ers o f C usto m er L oyalty

The f ir s t th in g y o u f in d w hen y o u l o ok a t th e a naly sis i s a d efin iti v e i m pact o n l o yalty f r o m b ra nd ,

pro duct, a nd s e rv ic e. W hen y o u c o m bin e th ese f a cto rs y o u f in d th at 3 8 p erc ent o f c usto m er l o yalty i s

attr ib uta b le to y o ur a b ility to o utp erfo rm th e c o m peti ti o n in th ese a re as. S ellin g a w ell- b ra nd ed ,

hig hly d iffe re nti a te d p ro duct, s u p porte d b y h ig her-th an-in d ustr y -a v era ge s e rv ic e w ill u nd oub te d ly g et

yo u m ore lo yalty . If yo u’re w ay b ehin d th e co m peti ti o n in any o f th ese th re e cate go rie s, th at’ s

pro bab ly w here y o u w ant to s ta rt.

That s a id , m any e xecuti v es l o ok a t th ese r e su lts w ith g enuin e s u rp ris e . T hey e xp ect th ese f a cto rs to

acco unt f o r m uch m ore , m ayb e 7 0, 8 0, o r e v en 9 0 p erc ent o f c usto m er l o yalty . A fte r a ll, i f th ey c an’t

win l o yalty o ff th eir s u p erio r b ra nd , p ro duct, a nd s e rv ic e, w ell th en, w hat e ls e i s th ere ?

But th e re aso n fo r th eir su rp ris in gly lo w im pact ste m s la rg ely fr o m a c o m mon tr e nd c ap tu re d

perfe ctl y in a sto ry to ld to u s re centl y b y th e g lo bal h ead o f m ark eti n g a t o ne o f th e w orld ’s to p

fin ancia l s e rv ic es f ir m s. W hen s h e s a w th is d ata , s h e s a id , “ F our y ears a go , o ur c o m pany w as s itti n g

at o nly 6 5 p erc ent c usto m er s a ti s fa cti o n d ue to a l o ng tr e nd o f g enera lly p oor c usto m er s e rv ic e a cro ss

our e nti r e in d ustr y . S eein g th is p ro ble m a s a r e al g ro w th o pportu nity , a cro ss th e n ext th re e y ears w e

se t a b out a naly zin g a nd i m pro vin g s e rv ic e a cro ss e v ery m ajo r c usto m er to uchp oin t, i n v esti n g m illio ns

of d olla rs a nd c o untl e ss h o urs a lo ng th e w ay. A nd th e r e su lts w ere p heno m enal! A t th e e nd o f th re e

years , w e had in cre ase d custo m er sa ti s fa cti o n fr o m

65

p erc ent to

95

p erc ent.” S ound s fa nta sti c ,

doesn ’t i t?

“B ut,” s h e c o nti n ued , “ th ere w as o nly o ne p ro ble m . In th o se s a m e th re e y ears , o ur tw o b ig gest

co m peti to rs d id th e e xact s a m e th in g. T hey i n v este d r o ughly th e s a m e a m ount o f m oney a nd a chie v ed

more o r l e ss th e e xact s a m e r e su lt. S o h ere w e a re , f o ur y ears l a te r, a nd o ur e nti r e i n d ustr y s its a t 9 6

perc ent c usto m er s a ti s fa cti o n. D on’t g et m e w ro ng, th at’ s g re at, b ut a s a r e su lt w e’v e s e en a b so lu te ly

no c o m merc ia l b enefit fr o m a ll th at e xp ense . S ati s fie d c usto m ers le av e u s e v ery d ay, b ecause th ey

kno w th ey’ll b e tr e ate d e q ually w ell s o m ew here e ls e .”

Now , i s i t f a ir to s a y th at th is c o m pany h ad to i n v est th at k in d o f ti m e a nd m oney s im ply to s ta y i n

th e g am e? A bso lu te ly . H ad th ey n o t, th ey’d ju st a s lik ely b e o ut o f b usin ess to day. B ut th e le sso n is

sti ll m ad denin gly fa m ilia r. W e p our m illio ns o f d olla rs in to b ra nd , p ro duct, and se rv ic e se ekin g

gro w th , a nd r e ally o nly g et s ta tu s q uo . O ur c usto m ers a re m ore s a ti s fie d , b ut th ey’re n o t n ecessa rily

any m ore l o yal.

So w hat’ s h ap penin g h ere ? T o f in d o ut, w e w ent o ut a nd d is c usse d th ese f in d in gs w ith s o m e o f th e

custo m ers w ho h ad c o m ple te d th e s u rv ey a nd h eard s o m eth in g th at m ig ht s u rp ris e y o u. In lig ht o f th e re su lts — th e re la ti v ely lo w im pact o n lo yalty o f b ra nd , p ro duct, a nd s e rv ic e— we e xp ecte d a t le ast

so m e

o f th ese c usto m ers to e xp re ss re al d is sa ti s fa cti o n w ith th e s u p plie r in q uesti o ns a cro ss th ese

th re e c ate go rie s. B ut th at’ s n o t w hat w e h eard a t a ll. In fa ct, it w as ju st th e o pposite . T hey

lo ved

th e

pro duct! T he b ra nd w as

world -c la ss

! T he s e rv ic e w as

fa nta stic

! B ut i f th at w as th e c ase , th en w hy i n

th e w orld w ere th e l o yalty s c o re s f o r th ese a ttr ib ute s s o l o w ?

The a nsw er l a y i n w hat th ese c usto m ers w ould o fte n s a y n ext. “ S ure ! T hey’v e g o t a

gre a t

p ro duct!

It p erfo rm s e xactl y l ik e th ey s a id i t w ould ! B ut th e c o m peti ti o n’s g o t a g re at p ro duct to o!” O r, “ T heir

bra nd is

world -c la ss

!

Every o ne

k no w s th eir b ra nd ! B ut th e c o m peti ti o n’s g o t a w orld -c la ss b ra nd

to o!” O r, “ T heir s e rv ic e i s

fa nta stic

! I n f a ct, I ’ d p ut th em r ig ht u p th ere w ith th e c o m peti ti o n!” S ound

fa m ilia r?

Over and o ver w e fo und th at custo m ers , genera lly sp eakin g, se e sig nific antl y le ss d iffe re nce

betw een u s a nd th e c o m peti ti o n th an w e d o o urs e lv es. It’ s n o t th at th ey th in k m ost su p plie rs a re

parti c ula rly

bad

o n b ra nd , p ro duct, o r se rv ic e. It’ s ju st th at th ey d on’t th in k th ey’re p arti c ula rly

diffe re n t

. S o w hile w e sp end m uch o f o ur ti m e e m phasiz in g su b tl e d iffe re nces, c usto m ers te nd to

fo cus f ir s t o n th e g enera l s im ila riti e s.

Does th is m ean y o u s h o uld s to p i n v esti n g i n b ra nd , p ro duct, a nd s e rv ic e? C erta in ly n o t! I t’ s a ll s ti ll

hugely im porta nt. B ut— at le ast in th e B 2B w orld — th e in v estm ents w e m ake in b ra nd b uild in g,

pro duct d ev elo pm ent, a nd im pro ved c usto m er se rv ic e a re n o t th e

fin al

ste p to w in nin g c usto m er

lo yalty , b ut th e

fir st

. I t’ s th e p ric e o f e ntr y to g ain in g c usto m er l o yalty a t a ll.

In fa ct, a fte r th ey’v e h ad a c hance to w ra p th eir h ead s a ro und th is fin d in g fo r a w hile , s a le s a nd

mark eti n g e xecuti v es te nd to a gre e, a s th ey s e e i t e v ery s in gle d ay i n th eir o w n b usin ess. H ow ev er, i n

many c ase s, th eir n atu ra l i n clin ati o n a cro ss th e l a st s e v era l y ears , a t l e ast, i s to e xp la in a w ay th e l o w

im pact o n l o yalty f r o m b ra nd , p ro duct, a nd s e rv ic e a s a n atu ra l b y-p ro duct o f c usto m ers ’ i n te nse f o cus

on re d ucin g c o sts . S ure , c usto m ers a re lo yal, th ey’d a rg ue. T hey’re ju st lo yal to w ho ev er’s g o t th e

lo w est p ric e.

But it tu rn s o ut, th at’ s n o t th e c ase e ith er. O nly 9 p erc ent o f c usto m er lo yalty is a ttr ib uta b le to a

su p plie r’s a b ility to o utp erfo rm th e c o m peti ti o n o n p ric e-to -v alu e ra ti o . Y es, y o u m ig ht b e c heap er

th an th e c o m peti ti o n, b ut i n th e e yes o f y o ur c usto m er, y o u l ik ely p ro vid e l e ss v alu e a s w ell. S o y o ur

lo w er p ric e m ay g et y o u th e d eal, b ut i t a lm ost c erta in ly w on’t g et y o u m uch l o yalty .

If y o ur c usto m er is d ead se t o n b uyin g th e c heap est o pti o n to day, th en c hances a re p re tty g o od

th ey’ll b e d ead s e t o n b uyin g th e c heap est o pti o n to m orro w a s w ell. A nd th at m ay o r m ay n o t b e y o u.

Afte r a ll, th ere ’s u su ally littl e s to ppin g y o ur c o m peti ti o n fr o m d is c o unti n g th eir w ay to a w in . In th at

gam e, l o yalty i s e sse nti a lly i r re le v ant, a s c usto m ers a re n’t l o okin g f o r a p artn er, th ey’re l o okin g f o r a

barg ain

. A nd th at’ s n o t w hat th is s to ry i s a ll a b out. T his i s a s to ry a b out a c usto m er’s w illin gness n o t

only to k eep b uyin g f r o m y o u, b ut to b uy e v en m ore o ver ti m e a nd to a d vocate o n y o ur b ehalf. A nd i f

th at’ s yo ur go al, p ric e is sim ply a b ad w ay to get th ere . U nle ss yo ur lo w er p ric es co m e w ith

sig nific antl y h ig her p erc eiv ed v alu e th an th e c o m peti ti o n, to day’s d is c o unts w on’t g et y o u to m orro w ’s

busin ess.

So if only 38 perc ent of custo m er lo yalty is attr ib uta b le to yo ur ab ility to outp erfo rm th e

co m peti ti o n o n b ra nd , p ro duct, a nd s e rv ic e, a nd 9 p erc ent o f lo yalty is a ttr ib uta b le to y o ur a b ility to

outp erfo rm th e c o m peti ti o n o n p ric e-to -v alu e r a ti o , th en w hat a b out th e o th er 5 3 p erc ent? W hat e ls e i s

th ere ?

Well, to u nd ers ta nd th e a nsw er, le t’ s g o b ack to th o se c usto m er c o nv ers a ti o ns w e m enti o ned a

mom ent a go . W hat w e ty p ic ally h eard fr o m c usto m ers , a fte r th ey to ld u s h o w littl e d iffe re nce th ey

sa w b etw een o ne s u p plie r a nd a no th er in te rm s o f b ra nd , p ro duct, a nd s e rv ic e, is th at th ey s a w h uge diffe re nces in th e s a le s e xp erie nce its e lf— th e a ctu al s a le s c o nv ers a ti o ns th ey h ad w ith s u p plie rs o n

an o ngo in g b asis .

Custo m ers w ere p ain fu lly b lu nt o n th is p oin t. S om e re p s, th ey s a id , w ould s o th o ro ughly w aste

th eir ti m e th at a t th e e nd o f th e s a le s c all th ey f e lt a s th o ugh th ey’d j u st b een r o bbed o f a n h o ur o f th eir

liv es— an h o ur th ey w ill n ev er g et b ack. A nd f r a nkly , i t d id n’t m atte r h o w g o od th e r e p ’s p re se nta ti o n

sk ills m ig ht b e. It ju st w asn ’t w orth it to h av e to s it a nd lis te n to a n e xcite d e xp la nati o n o f h o w th e

new and im pro ved M odel X PJ1 78 co uld ru n th re e se co nd s fa ste r w hile usin g le ss energ y and

re q uir in g le ss m ain te nance, “sa v in g yo u ti m e and m oney fo r th e m ore im porta nt th in gs!” W ho

care s? !? ! D o I w ant to s a v e ti m e a nd m oney? O f c o urs e I d o! D o I th in k th at th re e s e co nd s j u sti fie s a 5

perc ent p ric e p re m iu m ? P ro bab ly n o t.

On th e o th er h and , th o se s a m e c usto m ers to ld u s th at

oth er

re p s w ould ta ke th e ti m e to p ro vid e

in fo rm ati o n s o in te re sti n g a nd v alu ab le th at— in th e w ord s o f N eil R ackham — th e c usto m er w ould

hav e b een w illin g to

pay fo r th e c o nversa tio n its e lf

. In o th er w ord s, w hile c usto m ers fo und s o m e

su p plie rs to b e h o rrib le in th e s a le s e xp erie nce, th ey fo und o th ers to b e in v alu ab le . E ven s u p plie rs

th at a p peare d s im ila r in e v ery o th er w ay o n p ap er p erfo rm ed a ll o ver th e m ap w hen it c am e to th e

sa le s e xp erie nce. A nd th at d iffe re nce, i t tu rn s o ut, h as a h uge i m pact o n c usto m er l o yalty .

That’ s th e r e al b om bsh ell fin d in g o f th is w ork . L oyalty is n ’t w on in p ro duct d ev elo pm ent c ente rs ,

in a d verti s e m ents , o r o n to ll- fr e e h elp l in es: L oyalty i s w on o ut i n th e f ie ld , i n th e tr e nches, d urin g th e

sa le s c all. It’ s th e re su lt o f th e c o nv ers a ti o ns o ur re p s a re h av in g w ith c usto m ers e v ery s in gle d ay.

The enti r e re m ain d er of custo m er lo yalty — all 53 perc ent— is attr ib uta b le to yo ur ab ility to

outp erfo rm th e c o m peti ti o n i n th e s a le s e xp erie nce i ts e lf. O ver h alf o f c usto m er l o yalty i s a r e su lt n o t

of

what

y o u s e ll, b ut

how

y o u s e ll. A s im porta nt a s it is to h av e g re at p ro ducts , b ra nd , a nd s e rv ic e,

it’ s a ll f o r n aught i f y o ur r e p s c an’t e xecute o ut i n th e f ie ld .

That s a id , i t’ s o ne th in g to s a y th at th e s a le s e xp erie nce i s h ugely i m porta nt f o r c usto m er l o yalty , b ut

ano th er th in g a lto geth er to u nd ers ta nd h o w . A fte r a ll, r e m em ber, c usto m ers w ere v ery s p ecific h ere .

Som e o f th ese i n te ra cti o ns a re d esp era te ly p ain fu l, o th ers i n cre d ib ly v alu ab le . S o w hat e xactl y n eed s

to h ap pen d urin g th e s a le s e xp erie nce i n o rd er to g enera te s u ch a n i m pact o n c usto m er l o yalty ?

Well, th is is w here th e s to ry r e ally g ets in te re sti n g, b ecause w hen y o u c ra ck o pen th e d ata in sid e

th e s a le s e xp erie nce c ate go ry , w hat y o u fin d is th e e xact s a m e C halle nger s to ry , o nly th is ti m e fr o m

th e c usto m er’s p ers p ecti v e. TH E P O W ER O F I N SIG HT

O f th e fifty o r so a ttr ib ute s w e te ste d in o ur lo yalty su rv ey, se v ente en o f th em fe ll in to th e sa le s

e xp erie nce c ate go ry , e ach r e fle cti n g a t le ast a m arg in ally p ositi v e im pact o n c usto m er lo yalty . T hey

i n clu d ed th in gs lik e, “ D em onstr a te s a h ig h le v el o f p ro fe ssio nalis m ,” “ A dju sts to o ur u niq ue n eed s

a nd sp ecific ati o ns,” “P ortr a ys a re alis ti c p ic tu re o f co sts ,” and “M atc hes co m munic ati o ns to m y

p re fe re nces.” H ow ev er, w hen w e r a nked th e lis t a cco rd in g to im pact, w e fo und s e v en in p arti c ula r

t h at r o se w ay a b ove th e o th ers i n te rm s o f i m porta nce:

• R ep o ffe rs u niq ue a nd v alu ab le p ers p ecti v es o n th e m ark et.

• R ep h elp s m e n av ig ate a lte rn ati v es.

• R ep p ro vid es o ngo in g a d vic e o r c o nsu lta ti o n.

• R ep h elp s m e a v oid p ote nti a l l a nd m in es.

• R ep e d ucate s m e o n n ew i s su es a nd o utc o m es.

• S up plie r i s e asy to b uy f r o m .

• S up plie r h as w id esp re ad s u p port a cro ss m y o rg aniz a ti o n.

Now , if w e sta rt at th e b otto m o f th at lis t and w ork up , th e fir s t th in g w e fin d is sta ti s ti c al

c o rro bora ti o n f o r w hat w e a ll k no w to b e tr u e— and s o m eth in g w e’ll d is c uss i n m ore d ep th i n c hap te r

6 . T he n eed fo r c o nse nsu s a cro ss c usto m er s ta keho ld ers h as g o ne w ay u p . S enio r d ecis io n m akers

i n sid e th e c usto m er a re n o l o nger w illin g to g o o ut o n a l im b f o r a ny s u p plie r o r a ny s o lu ti o n, u nle ss

t h at d eal h as th e s u p port o f h is o r h er te am .

It’ s a lo gic al, if fr u str a ti n g, o utc o m e o f th e la rg er, m ore exp ensiv e, m ore d is ru p ti v e so lu ti o ns

s u p plie rs a re s e ekin g to s e ll. W hen th e s ta kes a re h ig her, y o u c an’t ju st c la w y o ur w ay to th e c o rn er

o ffic e to g et th e d eal d one. Y ou’v e g o t to b uild a n etw ork o f a d vocacy a lo ng th e w ay o r r is k l o sin g th e

d eal a lto geth er d ue to w eak s u p port a cro ss th e o rg aniz a ti o n.

Lik ew is e , c usto m ers p la ce a g re at d eal o f im porta nce o n a s m ooth , u nco m plic ate d p urc hase . N o

o ne w ants to w ork w ith a s u p plie r th at m akes a ny p urc hase m ore c o m plic ate d th an it h as to b e—

e sp ecia lly a s o lu ti o ns p urc hase . N oth in g s lo w s d ow n a d eal fa ste r th an r e p s w ho h av e to c o nsta ntl y

“ check w ith th eir m anager,” o r “ ru n it th ro ugh L egal,” o r “ se e if F in ance w ill b e w illin g to d o th at.”

D on’t m ake y o ur c usto m ers w ork s o h ard to s p end th eir m oney!

There ’s so m eth in g e ls e a b out th is lis t th at re ally ju m ps o ut. T ake a no th er lo ok a t th e to p fiv e

a ttr ib ute s l is te d th ere — th e k ey c hara cte ris ti c s d efin in g a w orld -c la ss s a le s e xp erie nce:

• R ep o ffe rs u niq ue a nd v alu ab le p ers p ecti v es o n th e m ark et.

• R ep h elp s m e n av ig ate a lte rn ati v es.

• R ep p ro vid es o ngo in g a d vic e o r c o nsu lta ti o n.

• R ep h elp s m e a v oid p ote nti a l l a nd m in es.

• R ep e d ucate s m e o n n ew i s su es a nd o utc o m es.

Each o f th ese a ttr ib ute s s p eaks d ir e ctl y to a n u rg ent n eed o f th e c usto m er n o t to

buy

s o m eth in g, b ut

t o

le a rn

s o m eth in g. T hey’re l o okin g to s u p plie rs to h elp th em i d enti fy n ew o pportu niti e s to c ut c o sts ,

i n cre ase re v enue, p enetr a te n ew m ark ets , a nd m iti g ate ris k in w ays th ey th em se lv es h av e n o t y et re co gniz e d . E sse nti a lly th is is th e c usto m er— or 5 ,0 00 o f th em a t le ast, a ll o ver th e w orld — sa yin g

ra th er e m phati c ally , “ S to p w asti n g m y ti m e. C halle nge m e. T each m e s o m eth in g n ew .”

It’ s a p ow erfu l c o nclu sio n th at r u ns c o ntr a ry to y ears o f th o ught a nd tr a in in g in B 2B s a le s. S ure , a

su p plie r h as to h av e g re at p ro ducts , b ra nd , a nd s e rv ic e. B ut fr o m th e c usto m er’s p ers p ecti v e, m ost

alr e ad y d o. A fte r a ll, if th at w ere n’t th e c ase , th ey p ro bab ly w ould n’t b e s p eakin g w ith th at s u p plie r

in th e f ir s t p la ce. I n ste ad , w hat s e ts th e b est s u p plie rs a p art i s n o t th e q uality o f th eir p ro ducts , b ut th e

va lu e o f th eir in sig ht

—new id eas to h elp c usto m ers e ith er m ake m oney o r s a v e m oney in w ays th ey

did n’t e v en k no w w ere p ossib le .

In th is s e nse , c usto m er l o yalty i s m uch l e ss a b out w hat y o u s e ll a nd m uch m ore a b out h o w y o u s e ll.

The b est c o m panie s d on’t w in th ro ugh th e q uality o f th e p ro ducts th ey s e ll, b ut th ro ugh th e q uality o f

th e in sig ht th ey d eliv er a s p art o f th e s a le its e lf. T he b attl e fo r c usto m er lo yalty is w on o r lo st lo ng

befo re a th in g e v er g ets s o ld . A nd th e b est r e p s w in th at b attl e n o t b y “ d is c o verin g” w hat c usto m ers

alr e ad y k no w th ey n eed , b ut b y te achin g th em a n ew w ay o f th in kin g a lto geth er.

Custo m ers a re v ery c le ar o n th is p oin t. T hey p la ce m uch g re ate r v alu e o n r e p s’ te achin g s k ills th an

on th eir d is c o very s k ills . T o g o b ack to th e d ata fo r a m om ent, m uch fa rth er d ow n th e lis t w ith in th e

sa le s e xp erie nce i s , “ T he r e p e xcels i n d ia gno sin g o ur s p ecific n eed s.” T he a b ility to d ia gno se n eed s

sc o re s m uch lo w er b ecause , fr a nkly , it’ s ju st n o t a s v alu ab le to th e c usto m er. S ure , it’ s g re at if a r e p

kno w s m y n eed s a s w ell a s I d o a nd c an a sk g re at q uesti o ns to u nco ver th o se n eed s a s q uic kly a s

possib le . B ut w hat I re ally n eed is a re p w ho k no w s m y n eed s

bette r

th an I d o— one w ho can

challe nge m e to th in k d iffe re ntl y a b out m y b usin ess a lto geth er. A nd to d o th at, g re at q uesti o ns a re n’t

eno ugh. Y ou’v e g o t to h av e g re at

in sig hts

.

And b y th e w ay, f o r th o se s e llin g a c o m modity , th is i s a ll th e m ore a p plic ab le . T here ’s n o q uesti o n

th at w in nin g c usto m er lo yalty w hen y o u c an’t d iffe re nti a te y o urs e lf o n p ro duct, b ra nd , o r p ric e is

diffic ult a t b est. B ut th ese fin d in gs p ro vid e th e b est p ossib le p ath fo r d oin g ju st th at. A s a h ead o f

sa le s a t a g lo bal c hem ic al c o m pany p ut i t to u s, “ S ure , y o u a nd I m ay b oth s e ll f iv e-g allo n b uckets o f

unb ra nd ed a xle g re ase a t th e s a m e p ric e. B ut if I c an s e ll m y fiv e-g allo n b ucket o f u nb ra nd ed a xle

gre ase b ette r th an y o u c an se ll y o ur fiv e-g allo n b ucket o f u nb ra nd ed a xle g re ase — well, th en I’ m

go in g to w in . A nd th e w ay I d o th at i s b y h elp in g th e c usto m er th in k d iffe re ntl y a b out th eir b usin ess.”

And h e’s r ig ht. A fte r a ll, i f h e’s n o t, th en th ere ’s r e ally n o th in g l e ft o th er th an p ric e i ts e lf a s th e b asis

fo r d iffe re nti a ti o n. A nd in th at c ase , w hy h av e a s a le s fo rc e a t a ll? P ut th at u nb ra nd ed a xle g re ase

onlin e a nd s e ll i t th ro ugh y o ur W eb s ite . I t’ s a l o t c heap er th at w ay.

So w here d oes th at l e av e u s? I n th is w orld — where q uality i n sig ht tr u m ps a ll e ls e — it’ s n o w ond er,

th en, th at C halle ngers w in . I n sig ht i s a ll a b out te achin g c usto m ers n ew w ays o f th in kin g, p ush in g th em

to re th in k th eir c urre nt p ers p ecti v es a nd a p pro aches. A nd th at’ s e xactl y w hat C halle ngers d o. T hey

te ach c usto m ers n ew p ers p ecti v es, s p ecific ally ta ilo re d to th eir m ost p re ssin g b usin ess n eed s, in a

co m pellin g a nd a sse rti v e e no ugh m anner to e nsu re th at th e m essa ge n o t o nly re so nate s, b ut a ctu ally

driv es a cti o n. A fte r a ll, if y o u d on’t c hange th e w ay a c usto m er th in ks— and , u lti m ate ly ,

acts

—th en

yo u h av en’t re ally ta ught th em a nyth in g to b egin w ith . A t le ast n o th in g w orth d oin g a nyth in g a b out.

And w here ’s th e v alu e i n th at? NO T J U ST A N Y T EA C H IN G .

CO M MERCIA L

TEA C H IN G

S ti ll, a s im porta nt a s te achin g is , it is n o t e no ugh to s im ply b uild a te am o f C halle nger r e p s a nd te ll

t h em , “ G o fo rth a nd te ach!” T hat m ay b e g o od fo r c usto m ers , b ut n o t n ecessa rily g o od fo r b usin ess.

H ere ’s h o w th e g lo bal h ead o f sa le s a t a la rg e e nte rp ris e so ftw are c o m pany p ut it to u s: “ W hat

h ap pens,” he ask ed , “if m y re p go es out, te aches a custo m er so m eth in g co m ple te ly new and

c o m pellin g a b out th eir b usin ess, g ets th em a ll e xcite d to ta ke a cti o n, a nd th at c usto m er th en ta kes th at

i n sig ht, p uts i t o ut to b id , a nd m y c o m peti to r w in s th e d eal? I n th at c ase , i t d oesn ’t f e el l ik e I ’ v e r e ally

w on a nyth in g.”

And h e’s r ig ht, y o u h av en’t. A ll y o u’v e r e ally d one is p ro vid e fr e e c o nsu lti n g. S ure , y o u’v e g iv en

t h e c usto m er e xactl y w hat th ey w ant, b ut i n th e p ro cess y o u’v e a ctu ally g iv en y o ur c o m peti to r e xactl y

w hat

th ey

w ant to o— yo ur b usin ess. A nd th at i s tr u ly a b ad p la ce to b e.

It’ s o ne th in g to c halle nge c usto m ers w ith n ew i d eas, a nd a no th er th in g a lto geth er to e nsu re y o u g et

p aid fo r it. E ven th e w orld ’s b est C halle ngers can’t w in if th ey’re te achin g custo m ers to v alu e

c ap ab iliti e s th ey c an’t c o m peti ti v ely p ro vid e. S o h o w d o w e e nsu re th at o ur te achin g e ffo rts a ctu ally

l e ad to m ore b usin ess fo r u s a nd n o t th e c o m peti ti o n? W ell, to d o th at, w e fin d th at y o ur te achin g

e ffo rts h av e to m eet s o m e v ery s p ecific c rite ria .

We c all th is a p pro ach C om merc ia l T eachin g. A b it u nim agin ati v e, p erh ap s, b ut w e lik e th e n am e

n o neth ele ss because it perfe ctl y cap tu re s w hat C halle ngers ulti m ate ly m ust do: te ach custo m ers

s o m eth in g n ew a nd v alu ab le a b out th eir b usin ess— whic h is w hat th ey w ant— in a w ay th at r e lia b ly

l e ad s to c o m merc ia l w in s fo r u s— whic h o f c o urs e is w hat w e w ant. It s o und s a b it lik e ju jits u , b ut

i t’ s a ctu ally p re tty s tr a ig htf o rw ard ; it’ s ju st n o t n ecessa rily e asy. C om merc ia l T eachin g h as fo ur k ey

r u le s:

1. L ead to y o ur u niq ue s tr e ngth s.

2. C halle nge c usto m ers ’ a ssu m pti o ns.

3. C ata ly ze a cti o n.

4. S cale a cro ss c usto m ers .

As w e w ork th ro ugh th ese r u le s, y o u’ll f in d th at th ey a re a s m uch a b out b uild in g a n o rg aniz a ti o nal

c ap ab ility a s th ey a re a b out d ev elo pin g a n in d iv id ual s k ill, a k ey le sso n o f th e C halle nger s e llin g

m odel w e d is c usse d i n th e p re v io us c hap te r. T his a p pro ach i s a b out m uch m ore th an s im ply b uild in g

C halle ngers ; it’ s a b out b ro ad , lo ng-te rm c o m merc ia l tr a nsfo rm ati o n. M ore o n th at s h o rtl y . F or n o w ,

l e t’ s r e v ie w th e f o ur r u le s o f C om merc ia l T eachin g. Com merc ia l T each in g R ule # 1: L ead t o Y our U niq ue S tr e ngth s

F ir s t and fo re m ost, co m merc ia l te achin g m ust ti e dir e ctl y back to so m e cap ab ility w here yo u

o utp erfo rm y o ur c o m peti to rs . I f w hat y o u’re te achin g i n ev ita b ly l e ad s b ack to w hat y o u d o b ette r th an

a nyo ne e ls e , th en y o u’re i n a m uch b ette r p ositi o n w hen i t c o m es to w in nin g th e b usin ess.

We o fte n p ut it lik e th is : T he s w eet s p ot o f c usto m er lo yalty is o utp erfo rm in g y o ur c o m peti to rs o n

t h o se th in gs y o u’v e ta ught y o ur c usto m ers a re im porta nt. Y es, y o u’v e g o t to g et a c usto m er th in kin g

a b out n ew o pportu niti e s to s a v e o r m ake m oney— opportu niti e s th at m ove th em to ta ke a cti o n. B ut

y o u’v e o nly re ally su cceed ed w hen th e c usto m er a sk s, “ W ow , h o w c an I m ake th at h ap pen?” a nd

y o u’re a b le to s a y, “ W ell, le t m e s h o w y o u h o w w e’re b ette r a b le to h elp y o u m ake th at h ap pen th an

a nyo ne els e .” T hat’ s th e m agic al m om ent. Y ou’v e sh are d new , re le v ant in sig ht— whic h is w hat

c usto m ers a re lo okin g fo r— but a t th e sa m e ti m e, y o u’v e ti e d th at in sig ht to y o ur u niq ue so lu ti o n.

Y ou’v e ta ught y o ur c usto m er n o t j u st to w ant h elp b ut to w ant

yo ur

h elp .

There a re tw o im porta nt c av eats , h o w ev er, to d oin g th is w ell. F ir s t, in o rd er fo r th is a p pro ach to

w ork , y o u’v e g o t to m ake s u re th at y o u a ctu ally

ca n

h elp . F ro m th e c usto m er’s p ers p ecti v e, th ere ’s

n o th in g m ore f r u str a ti n g th an a s u p plie r th at te aches th em a n ew a nd c o m pellin g w ay to s a v e o r m ake

m oney, b ut th en c an’t a ctu ally d o a nyth in g a b out it. O ne h ead o f s a le s w e w ork w ith r e fe rs to th is a s

“ te achin g y o ur c usto m er i n to th e d ese rt.” Y ou l e av e th em tr o ub le d b y a n ew p ro ble m th ey n ev er k new

t h ey h ad a nd w ith n o r e al w ay o f d oin g a nyth in g a b out it. Y es, c usto m ers w ant in sig ht o n h o w th ey

c o uld o pera te m ore p ro ducti v ely , b ut i n sig ht th ey c an’t d o a nyth in g a b out a ctu ally m akes th in gs w ors e ,

n o t b ette r. T hen y o u r e ally

have

g iv en th em s o m eth in g to k eep th em u p a t n ig ht!

Seco nd , a nd th is is th e b ig c av eat, in o rd er to e nsu re th at y o ur te achin g e ffo rts u lti m ate ly le ad to

y o ur u niq ue str e ngth s, y o u a ctu ally h av e to k no w w hat y o ur u niq ue str e ngth s

are

. S ure , it so und s

o bvio us. B ut w e h av e b een c o nsis te ntl y s u rp ris e d b y th e n um ber o f e xecuti v es w ho s tr u ggle m ig hti ly

o n th is i s su e. H ere ’s h o w o ne h ead o f m ark eti n g a t a w ell- k no w n m anufa ctu rin g c o m pany p ut i t: “ If I

p olle d a h und re d r e p s o n o ur c o re v alu e p ro positi o n, I’ d g et

at le a st

a h und re d d iffe re nt a nsw ers .”

W e h ear th is a ll th e ti m e, u su ally c o up le d w ith a s lo w s h ake o f th e h ead a nd a r u efu l s ig h; i t’ s o ne o f

t h o se a ge-o ld tr u th s o f s a le s a nd m ark eti n g.

Yet n o ti c e th at th is e xecuti v e’s la m ent re ally c ap tu re s o nly p art o f th e p ro ble m . Y es, it’ s h ard

e no ugh to g et r e p s to a gre e o n a b ro ad d esc rip ti o n o f w hat th e c o m pany d oes w ell. B ut a sk th o se s a m e

r e p s w hat th e c o m pany a ctu ally d oes

bette r

th an th e c o m peti ti o n, a nd in ste ad o f a h und re d d iffe re nt

a nsw ers y o u’re ju st a s lik ely to g et n o ne a t a ll. A t b est y o u m ig ht h ear s o m eth in g lik e, “ Y eah, th e

c o m peti ti o n c an d o s o m eth in g lik e th at to o, b ut w e d o it s o m uch

bette r

!” O r e v en m ore c o m mon:

“ S ure , y o u c o uld g o w ith th e o th er g uy, b ut k eep in m in d w e’v e b een in th is b usin ess lo nger th an

a nyo ne e ls e . W e’v e b een s e rv in g le ad in g c o m panie s fo r o ver fifty y ears w ith in no vati v e s o lu ti o ns

b acked b y a d eep c o m mitm ent to p ro duct q uality a nd a la se r-lik e fo cus o n s e rv in g c usto m ers .” B la h,

b la h, b la h. A s i f y o ur m ain c o m peti to r d id n’t h av e a “ la se r-lik e” f o cus o n c usto m ers e ith er. O f c o urs e

t h ey d o!

How is a custo m er su p pose d to cho ose betw een tw o su p plie rs th at are more or le ss

u nd iffe re nti a te d ? It’ s a ctu ally ra th er s im ple : T hey c ho ose th e c heap est s u p plie r. W ho w ould n’t? In

t o day’s w orld ,

every o ne

is “ in no vati v e,” “ so lu ti o ns-o rie nte d ,” “ custo m er-fo cuse d ,” a nd — of c o urs e

— “gre en,” s o w hy p ay m ore f o r i t?

In a r e cent s u rv ey o f B 2B c usto m ers , th e M ark eti n g L ead ers h ip C ouncil fo und o nly 3 5 p erc ent o f co m panie s ab le to esta b lis h th em se lv es as tr u ly p re fe rre d o ver th e co m peti ti o n. A nd sti ll m ore

tr o ub lin g, e v en a m ong p re fe rre d c o m panie s, w hen w e te ste d th e im pact o f e ach o f th e b enefits th ey

belie v ed to b e u niq ue, w e f o und th at c usto m ers p erc eiv ed o nly

half

o f th em to b e a ctu ally r e le v ant to

th eir n eed s. A nd a m ong th o se , c usto m ers to ld u s th at m ost w ere n’t d eliv ere d c o nsis te ntl y e no ugh to

actu ally in flu ence th eir p re fe re nce. W hen y o u p ut it a ll to geth er, o nly 1 4 p erc ent o f c o m panie s’ s o -

calle d u niq ue b enefits w ere p erc eiv ed b y c usto m ers a s b oth u niq ue a nd b enefic ia l! A nd a s y o u m ig ht

im agin e, b ein g “ in no vati v e,” “ custo m er-fo cuse d ,” a nd “ gre en” w ere n o t a m ong th em . W hen it c o m es

to d iffe re nti a ti o n, y o ur c usto m ers h o ld y o u to a m uch h ig her s ta nd ard .

It’ s n o w ond er, th en, th at r e p s c o nti n ually r e v ert to p ric e. I t’ s n o t j u st th at th ey s tr u ggle to a rti c ula te

th e v alu e o f th eir s o lu ti o n; th ey s tr u ggle to a rti c ula te th e

uniq ue

v alu e o f th eir s o lu ti o n. A nd th is , it

tu rn s o ut, is th e h ard est p art o f c o m merc ia l te achin g: u nd ers ta nd in g a nd a gre ein g o n w hat it is th at

yo ur c o m pany d oes

bette r

th an a nyo ne e ls e . I t r e q uir e s a v ery d eep u nd ers ta nd in g o f w ho y o u a re a nd

what y o u d o. M uch o f o ur w ork a t b oth th e S ale s E xecuti v e C ouncil a nd th e M ark eti n g L ead ers h ip

Council a cro ss th e la st s e v era l y ears h as a im ed a t p ro vid in g c lie nts th e to ols to fig ure th is o ut—

ev ery th in g fr o m s te p -b y-s te p s e lf- g uid ed e xerc is e s, to fa cilita te d le ad ers h ip w ork sh o ps, to c usto m er

su rv ey b uild ers , to a ctu al c usto m er d ia gno sti c s.

But n o m atte r h o w y o u g o a b out a d dre ssin g it, a ll o f th is w ork u lti m ate ly b oils d ow n to a s in gle

questi o n y o u m ust a nsw er. W e s o m eti m es r e fe r to it a s th e “ D eb O le r q uesti o n,” n am ed a fte r D eb ra

Ole r, v ic e p re sid ent a nd g enera l m anager o f G ra in ger B ra nd a t W . W . G ra in ger, In c. A s D eb p uts it,

“W hy s h o uld o ur c usto m ers b uy f r o m u s o ver a nyo ne e ls e ?” T hat’ s i t. I t’ s d is a rm in gly s im ple . B ut th at

one q uesti o n c an ta ke y o ur e nti r e c o m merc ia l l e ad ers h ip te am to a v ery d ark p la ce a s y o u r e aliz e i t’ s

much h ard er to a nsw er th an y o u m ig ht h av e th o ught. In fa ct, m ost c o m panie s c an’t a nsw er it, a t le ast

no t in a w ay th at’ s c o m pellin g to c usto m ers (a gain , b ein g “ in no vati v e,” “ custo m er-fo cuse d ,” a nd

“so lu ti o ns-o rie nte d ” d oesn ’t c o unt) . A nd fo r th e fe w c o m panie s th at c an a nsw er it, e v en fe w er s ti ll

would f in d a gre em ent o n th at a nsw er a cro ss th eir e nti r e s a le s f o rc e.

So w here d oes th at le av e us? W ell, fir s t and fo re m ost, it m eans th at if yo u’re go in g to b uild

Challe nger r e p s to te ach c usto m ers s o m eth in g n ew a b out th eir b usin ess, y o u’v e l ik ely g o t s o m e w ork

to d o in yo ur o w n b usin ess fir s t. U nle ss yo u can ulti m ate ly co nnect th e in sig hts yo u te ach yo ur

custo m ers b ack to c ap ab iliti e s o nly y o u c an o ffe r, y o u’re m uch m ore l ik ely p ro vid in g f r e e c o nsu lti n g

th an C om merc ia l T eachin g. T hat’ s a d angero us p la ce to b e u nle ss y o u h ap pen to a ls o b e th e lo w est-

co st p ro vid er in th at m ark et (w hic h is im pro bab le s in ce lo w est- c o st p ro vid ers , b y d efin iti o n, c an’t

affo rd th e a d ded c o st o f te achin g c usto m ers ). Com merc ia l T each in g R ule # 2: C halle nge C usto m ers’ A ssu m ptio ns

I f th e fir s t r u le o f C om merc ia l T eachin g is a ll a b out th e c o nnecti o n b etw een in sig ht a nd s u p plie r, th e

s e co nd i s a b out th e c o nnecti o n b etw een i n sig ht a nd c usto m er.

It fe els lik e a n o bvio us p oin t, b ut w e’ll s a y it a nyw ay. D efin iti o nally , w hate v er y o u te ach y o ur

c usto m ers h as to a ctu ally

te a ch

th em so m eth in g. It h as to c halle nge th eir a ssu m pti o ns a nd sp eak

d ir e ctl y to th eir w orld i n w ays th ey h av en’t th o ught o f o r f u lly a p pre cia te d b efo re . T he w ord w e l ik e

t o u se h ere i s “ re fr a m e.” W hat d ata , i n fo rm ati o n, o r i n sig ht c an y o u p ut i n f r o nt o f y o ur c usto m er th at

r e fr a m es th e w ay th ey th in k a b out th eir b usin ess— ho w th ey o pera te o r e v en h o w th ey c o m pete ?

T hat’ s w hat y o ur c usto m ers a re r e ally l o okin g f o r. R em em ber w hat w e s a w i n o ur c usto m er s u rv ey?

• R ep o ffe rs u niq ue a nd v alu ab le p ers p ecti v es o n th e m ark et.

• R ep h elp s m e n av ig ate a lte rn ati v es.

• R ep p ro vid es o ngo in g a d vic e o r c o nsu lta ti o n.

• R ep h elp s m e a v oid p ote nti a l l a nd m in es.

• R ep e d ucate s m e o n n ew i s su es a nd o utc o m es.

There ’s n o th in g o n th at lis t a b out “ co nfir m ati o n” o r “ v alid ati o n.” Y es, c usto m ers a p pre cia te it if

y o u c an c o nfir m w hat th ey a lr e ad y k no w to b e tr u e; th ere ’s v alu e th ere to b e s u re . B ut th ere ’s v astl y

g re ate r valu e in in sig ht th at changes or build s on w hat th ey kno w in w ays th ey co uld n’t hav e

d is c o vere d o n th eir o w n.

That k in d o f i n sig ht i s n o t n ecessa rily e asy to a chie v e. Y ou h av e to k no w y o ur c usto m ers ’ b usin ess

b ette r th an th ey kno w it th em se lv es— at le ast th at part of th eir busin ess th at sp eaks to yo ur

c ap ab iliti e s. It s o und s lik e a n im possib ly h ig h b ar b ut th e re ality is th at m ost s u p plie rs a ctu ally

do

u nd ers ta nd th eir c usto m ers ’ b usin ess b ette r th an c usto m ers d o th em se lv es— when v ie w ed s p ecific ally

t h ro ugh th e le ns of th at su p plie r’s cap ab iliti e s. A co m pany th at se lls prin te rs to ho sp ita ls , fo r

e xam ple , m ay n o t k no w m ore a b out h ealth c are th an th e h o sp ita l a d m in is tr a to rs th ey s e ll to , b ut th ey

c erta in ly kno w m ore ab out in fo rm ati o n m anagem ent in a ho sp ita l se tti n g. A co m pany th at se lls

c o nsu m er p ackaged g o ods p ro bab ly k no w s m ore a b out h o w a nd w hy c o nsu m ers b uy g ro cerie s th an

m ost o f th e r e ta ile rs th ey s e ll to .

Where v er th e i n sig ht c o m es f r o m , y o u’ll k no w i f y o u’v e a ctu ally r e fr a m ed y o ur c usto m er’s th in kin g

b ase d o n th eir re acti o n. A nd th is is w here so m e re p s re ally fa ll in to a tr a p . Ir o nic ally , if yo ur

c usto m er r e acts to y o ur s a le s p itc h w ith s o m eth in g lik e, “ Y es, I to ta lly a gre e! T hat’ s

exa ctly

w hat’ s

k eep in g m e u p a t n ig ht! ” w ell, th en y o u’v e a ctu ally f a ile d . T hat m ay f e el c o unte rin tu iti v e, b ut i t’ s tr u e

n o neth ele ss. S ure , y o u’v e f o und a n i s su e o r i n sig ht th at

re so nate s

, b ut i t d oesn ’t

re fr a m e

. Y ou h av en’t

a ctu ally ta ught th em a nyth in g. T his is e xactl y w here w e s e e R ela ti o nsh ip B uild ers s tr u ggle a ll th e

t i m e. T hey r e tu rn fr o m a s a le s c all e xcite d a b out th e “ co nnecti o n” th ey e sta b lis h ed w ith a c usto m er

b ecause th ey “ naile d th e is su e m atc h.” “ It w as lik e I w as r e ad in g h is m in d ! E very th in g I p ut o n th e

t a b le w as so m eth in g he w as fo cuse d o n!” B ut th en th ey’re su rp ris e d w hen th at custo m er hasn ’t

r e tu rn ed th eir c alls tw o w eeks la te r. T hey a ssu m e th at th eir s u ccessfu l d ia gno sis o f th e c usto m er’s

n eed s w as s u ffic ie nt to w in th e b usin ess. B ut th at’ s n o t th e c ase . R ap port a nd r e fr a m e a re n o t th e s a m e

t h in g. Ju st because yo u “get” th e custo m er’s busin ess doesn ’t m ean yo u auto m ati c ally

get

th e

c usto m er’s b usin ess. N ot b y a l o ng s h o t. Challe nger r e p s, o n th e o th er h and , a re l o okin g f o r a d iffe re nt c usto m er r e acti o n a lto geth er. R ath er

th an, “ Y es, I to ta lly a gre e!” th ey k no w th ey’re o n th e r ig ht tr a ck w hen th ey h ear th eir c usto m er s a y,

“H uh, I n ev er th o ught o f it th at w ay b efo re .” T he b est in d ic ato r o f a su ccessfu l re fr a m e, in o th er

word s, i s n ’t e xcite d a gre em ent b ut th o ughtf u l r e fle cti o n. Y ou’v e j u st s h o w n y o ur c usto m er a d iffe re nt

way to th in k ab out th eir busin ess— perh ap s a la nd min e th ey’d overlo oked , a tr e nd th ey

und era p pre cia te d , o r a n a lte rn ati v e th ey’d p re m atu re ly d is m is se d — and n o w y o u’v e g o t th em c urio us.

They’re w ond erin g, “ W hat e xactl y d oes th is m ean f o r m y b usin ess? ” o r e v en b ette r, “ W hat

els e

d on’t

I k no w ?”

This is th e p iv ot p oin t o f a ny e ffe cti v e C om merc ia l T eachin g c o nv ers a ti o n. W hen y o ur c usto m er

sa ys, “ H uh, I n ev er th o ught a b out it th at w ay b efo re ,” th ey’re c le arly te llin g y o u th ey’re e ngaged ,

mayb e e v en a l ittl e u nse ttl e d . A nd a s c usto m ers th em se lv es h av e to ld u s, th at’ s e xactl y w hat th ey w ere

ho pin g fo r w hen th ey sa t d ow n w ith yo u in th e fir s t p la ce. T hat’ s w hen th e co nv ers a ti o n its e lf

beco m es s o m eth in g w orth p ayin g f o r.

Sti ll, ju st because w e’v e help ed th em

se e

th in gs diffe re ntl y doesn ’t m ean w e’v e necessa rily

pers u ad ed th em to

do

th in gs d iffe re ntl y . T hat’ s n ext— and i t’ s j u st a s i m porta nt. Com merc ia l T each in g R ule # 3: C ata ly ze A ctio n

I n a w orld o f l im ite d r e so urc es a nd c o m peti n g p rio riti e s, i t’ s n o t e no ugh to c hange th e w ay c usto m ers

t h in k. Y ou’v e u lti m ate ly g o t to g et th em to a ct. W e o fte n j o ke a b out th e c usto m er w ho r e sp ond s to y o ur

r e fr a m e w ith , “ H uh, I n ev er th o ught a b out i t th at w ay b efo re ! . . . I w ond er w hat’ s f o r l u nch . . .” L ik e

D oug, th e d og in th e m ovie

Up

w ho b eco m es c o m ple te ly d is tr a cte d e v ery ti m e h e s e es a s q uir re l,

c usto m ers e asily lo se fo cus. S o if y o u w ant th em to ta ke a cti o n, y o u’ll n eed to b uild a c o m pellin g

b usin ess c ase f o r w hy a cti o n m atte rs i n th e f ir s t p la ce.

This i s w ell- tr o dden g ro und . F or m ost s u p plie rs , th e m ove to “ so lu ti o ns” i s g ro und ed i n a n e ffo rt to

j u sti fy p re m iu m p ric es f o r b und le d p ro ducts a nd s e rv ic es. A s a r e su lt, th ey’v e i n v este d h uge a m ounts

o f ti m e a nd m oney in a w id e r a nge o f to ols d esig ned to h elp c usto m ers c alc ula te th e “ R O I” o r “ to ta l

c o st o f o w ners h ip ” o f th eir o ffe rin gs— usu ally a cco m panie d b y s a le s r e p s’ e nth usia sti c a ssu ra nces o f

t h e “ life ti m e v alu e” o f th eir p ro ducts . “ Y es, w e m ig ht c o st a l ittl e m ore u p f r o nt, b ut l o ok a t w hat y o u

c an s a v e o ver th e n ext fo ur y ears ! O ur s o lu ti o n p ra cti c ally p ays fo r its e lf!” U nle ss y o u c an c o nv in ce

y o ur c usto m ers th ey’ll g et i n cre m enta l v alu e f o r th at p re m iu m p ric e, y o ur s o lu ti o n s tr a te gy i s d oom ed

t o f a il.

In a C om merc ia l T eachin g a p pro ach, th is is e xactl y w here w e fin d th e b ig gest d iffe re nce b etw een

c o m panie s w ho

belie ve

th ey d o th is w ell a nd th o se w ho

actu ally

d o th is w ell. T hat’ s b ecause a w ell-

e xecute d te achin g c o nv ers a ti o n is n ’t a b out th e s u p plie r’s s o lu ti o n a t a ll— at le ast n o t in iti a lly . It’ s

a b out th e c usto m er’s b usin ess, la yin g o ut a n a lte rn ati v e m eans to e ith er s a v e m oney o r m ake m oney

t h ey’d p re v io usly o verlo oked . In a c o nv ers a ti o n lik e th at, tr a d iti o nal R O I c alc ula ti o ns p ro ve u se le ss

b ecause th ey’re f o cuse d o n th e w ro ng th in g.

Nearly e v ery R O I c alc ula to r w e k no w o f is b uilt to h elp c usto m ers c alc ula te th e r e tu rn o n b uyin g

t h e s u p plie r’s s o lu ti o n. B ut b efo re y o u c o nv in ce c usto m ers to ta ke th at a cti o n, y o u f ir s t h av e to s h o w

t h em w hy th e in sig ht y o u ju st s h are d w ith th em m erits a ny a cti o n a t a ll, e sp ecia lly w hen th at in sig ht

c o m pete s d ir e ctl y w ith c o nv enti o nal w is d om . T o th at e nd , th e b est R O I c alc ula to rs in a te achin g

a p pro ach h av e n o th in g to d o w ith y o ur s o lu ti o n a t a ll. R ath er, th ey h elp c usto m ers c alc ula te th e c o sts

t h ey’re i n currin g o r th e r e tu rn s th ey’re f o rg o in g b y f a ilin g to a ct o n th e o pportu nity y o u’v e j u st ta ught

t h em th ey’v e o verlo oked .

If yo u’re go in g to b uild an R O I calc ula to r, m ake su re it calc ula te s th e re tu rn o n p urs u in g th e

r e fr a m e, n o t p urc hasin g y o ur p ro ducts . B efo re th ey b uy a nyth in g, c usto m ers fir s t n eed to u nd ers ta nd

w hat’ s i n i t f o r th em to f ix th eir p ro ble m . Com merc ia l T each in g R ule # 4: S ca le A cro ss C usto m ers

D one w ell, C om merc ia l T eachin g is m uch m ore th an sim ply an effe cti v e sa le s te chniq ue. It’ s a

p ow erfu l c o m merc ia l s tr a te gy. T o b e s u re , it a b so lu te ly w ork s w ell a t th e in d iv id ual d eal le v el, a s

C halle nger r e p s o pportu nis ti c ally u nco ver o ccasio ns to te ach c usto m ers f r e sh i n sig hts ta ilo re d to th eir

s p ecific co nte xt. H ow ev er, th ere are a num ber of im porta nt re aso ns w hy th e ap pro ach is

u nq uesti o nab ly m ore e ffe cti v e w hen d ep lo yed s e gm ent b y s e gm ent r a th er th an c usto m er b y c usto m er.

Fro m a ta cti c al p ers p ecti v e, it’ s no t re alis ti c o r fa ir to exp ect yo ur re p s to und ers ta nd th eir

c usto m ers ’ b usin ess b ette r th an th ey d o th em se lv es w ith o ut a t l e ast s o m e o rg aniz a ti o nal s u p port. Y our

c o re p erfo rm ers w ill s tr u ggle m ig hti ly w ith th at ta sk n o m atte r h o w m uch y o u tr a in th em — esp ecia lly

i f th ey w ork a cro ss a d iv ers e c usto m er b ase .

But im agin e if y o u c o uld p ro vid e th o se s a m e re p s w ith a m anageab ly s m all s e t o f w ell- s c rip te d

i n sig hts a lo ng w ith tw o o r th re e e asy -to -re m em ber d ia gno sti c q uesti o ns d esig ned to m ap th e rig ht

i n sig ht to th e r ig ht c usto m er. T hen th ey’d b e in a m uch b ette r p ositi o n to te ach. It w ould s ig nific antl y

s h ift th e b urd en o f effe cti v e need s d ia gno sis aw ay fr o m fr o ntl in e sa le s re p s and b ack in to th e

o rg aniz a ti o n, w here y o u’v e g o t b oth th e d ep th o f s k ill a nd th e b re ad th o f i n sig ht n ecessa ry to f ig ure i t

o ut i n a d vance.

For th is a p pro ach to tr u ly w ork , y o u n eed a s m all n um ber o f p ow erfu l i n sig hts th at n atu ra lly l e ad to

a n ev en sm alle r num ber o f uniq ue so lu ti o ns, all ap plic ab le acro ss th e b ro ad est p ossib le se t o f

c usto m ers . I n o th er w ord s, y o u n eed s c ale . C om merc ia l T eachin g i s d efin ite ly

not

s o m eth in g y o u ju st

w ant to l e av e i n th e h and s o f i n d iv id ual r e p s.

Com merc ia l T eachin g als o re q uir e s yo u to th in k v ery d iffe re ntl y ab out custo m er se gm enta ti o n.

W hile tr a d iti o nal se gm enta ti o n sc hem es lik e g eo gra p hy, p ro duct silo , o r in d ustr y v erti c al m ay b e

s u ffic ie nt fo r s a le s r e p d ep lo ym ent, th e c o m panie s th at d o b est a t th is a p pro ach h av e le arn ed to a ls o

s e gm ent c usto m ers b y n eed o r b ehav io r. If y o u c an fin d a g ro up o f c usto m ers w ith s im ila r n eed s—

i r re sp ecti v e o f w here th ey a re o r w hat th ey s e ll— th o se c usto m ers w ill lik ely a ll re act in a s im ila r

f a sh io n to a c o m mon s e t o f in sig hts . F or e xam ple , w e h av e s e en C om merc ia l T eachin g w ork v ery

e ffe cti v ely a ro und a c o m mon n eed to f r e e u p c ash , o r r e d uce e m plo yee c hurn , o r i m pro ve w ork p la ce

s a fe ty . I n e ach o f th ese c ase s, th e s u p plie rs i n q uesti o n h elp ed c usto m ers th in k a b out th at n eed i n n ew

a nd su rp ris in g w ays b y re fr a m in g th eir th in kin g, c o nv in cin gly la yin g o ut th e fu lly lo ad ed c o sts o f

i n acti o n, a nd th en p ro vid in g a c re d ib le c o urs e o f a cti o n th at n atu ra lly le d b ack to th e su p plie r’s

u niq ue so lu ti o n. A nd each did it acro ss la rg e gro up s of custo m ers w ho und er any tr a d iti o nal

s e gm enta ti o n s tr a te gy w ould h av e a p peare d , s u p erfic ia lly a t le ast, to h av e n o th in g in c o m mon. T he

c o m mon d eno m in ato r fo r in sig ht, in o th er w ord s, is n ’t g eo gra p hy, o r s iz e , o r in d ustr y . It’ s a c o m mon

s e t o f n eed s.

We’v e d one a g re at d eal o f w ork a t th e M ark eti n g L ead ers h ip C ouncil a cro ss th e la st th re e y ears

h elp in g c lie nts d ev elo p a nd im ple m ent v ario us n eed s-b ase d se gm enta ti o n te chniq ues, b ase d o n a

n um ber o f b est p ra cti c es d ev elo ped a t s o m e o f th e w orld ’s le ad in g B 2B c o m panie s. T he o ne th in g

e v ery c o m pany th at’ s g o ne d ow n th is p ath h as d is c o vere d i s th is : N eed s a naly sis i s n o t s o m eth in g y o u

c an a ffo rd to l e av e i n th e h and s o f y o ur i n d iv id ual r e p s. I f y o ur r e p s’ p rim ary g o al g o in g i n to a s a le s

c all is to “ d is c o ver” th e c usto m er’s n eed s, y o u’v e lo st th e b attl e b efo re y o u’v e e v en b egun to fig ht,

b ecause , f r a nkly , y o ur c usto m ers d on’t w ant to h av e th at c o nv ers a ti o n.

Alte rn ati v ely , C om merc ia l T eachin g eq uip s re p s to te ach custo m ers w hat th ey re ally need b y challe ngin g th e w ay th ey th in k a b out th eir b usin ess a lto geth er, p ro vid in g th em w ith n ew m eans to

ad dre ss th eir to ughest p ro ble m s in w ays th ey w ould h av e n ev er id enti fie d o n th eir o w n. G ra nte d ,

th ere a re s o m e i m porta nt c o nd iti o ns th at m ust b e m et i n o rd er f o r th is a p pro ach to w ork . C om merc ia l

Teachin g m ust le ad to y o ur u niq ue s tr e ngth s, c halle nge c usto m ers ’ a ssu m pti o ns, c ata ly ze a cti o n, a nd

sc ale a cro ss c usto m ers . B ut w hen th ese c o nd iti o ns a re m et, it w ork s— pheno m enally w ell, in fa ct.

And th e re aso n w hy, as w e sa w , is b ecause m ore th an anyth in g els e custo m ers are lo okin g to

su p plie rs to c halle nge th eir th in kin g a nd te ach th em s o m eth in g th ey d on’t k no w .

That sa id , o nce y o u’v e la id th e g ro und w ork fo r e ffe cti v e C om merc ia l T eachin g, y o ur re p s sti ll

hav e to g o o ut a nd a ctu ally

ta lk

to c usto m ers . I f th ey d on’t h av e th e s k ills to c halle nge, e v en th e m ost

pow erfu l i n sig hts w ill f a ll o n d eaf e ars . S o w hat d oes a “ te achin g c o nv ers a ti o n” a ctu ally s o und l ik e?

Is it r e ally a ll th at d iffe re nt? A bso lu te ly . It’ s n o t ju st th at C halle ngers te ach th at s e ts th em a p art, it’ s

th e

way

th at th ey te ach th at re ally m atte rs m ost. W orld -c la ss te achin g c o nv ers a ti o ns, it tu rn s o ut,

fo llo w a v ery s p ecific c ho re o gra p hy, o ne th at ta kes a tr a d iti o nal s a le s c o nv ers a ti o n a nd c o m ple te ly

sta nd s i t o n i ts h ead . L et’ s l o ok a t th at n ext. 5

T EA CHIN G F O R D IF FER EN TIA T IO N ( P A RT 2 ): H O W T O B U IL D I N SIG HT-L ED

CO NVER SAT IO NS

O NCE Y O U’V E A G REED

o n th e u niq ue b enefits th at c le arly s e t y o u a p art f r o m th e c o m peti ti o n a nd

y o u’v e id enti fie d a se t o f c o m pellin g in sig hts th at te ach c usto m ers a n ew w ay to c o m pete m ore

e ffe cti v ely , ho w do yo u put it all to geth er? W ell, if yo u w ere to m ap a w orld -c la ss te achin g

c o nv ers a ti o n— or te achin g “ p itc h”— yo u’d fin d it m oves th ro ugh six d is c re te ste p s, e ach b uild in g

d ir e ctl y to th e n ext.

But befo re w e get to th e ste p s th em se lv es, it’ s im porta nt to no te th e very str o ng em oti o nal

c o m ponent o f a w ell- d esig ned te achin g p itc h. F ra nkly , th is is n ’t s o m uch a b out d eliv erin g a fo rm al

p re se nta ti o n a s i t’ s a b out te llin g a c o m pellin g s to ry . A lo ng th e w ay, th ere s h o uld b e s o m e r e al d ra m a,

p erh ap s a b it o f s u sp ense , a nd m ayb e e v en a s u rp ris e o r tw o. U lti m ate ly , th e g o al i s to ta ke c usto m ers

o n a r o lle r-c o aste r r id e, l e ad in g f ir s t to a r a th er d ark p la ce b efo re s h o w in g th em th e l ig ht a t th e e nd o f

t h e tu nnel. A nd th at l ig ht, o f c o urs e , i s y o ur s o lu ti o n.

Sourc e: S ale s E xecuti v e C ouncil r e se arc h

Fig ure 5 .1 .

D eco nstr u cti o n o f a C om merc ia l T eachin g P itc h A P U RPO SE FU L C H OREO GRAPH Y

I f y o u’re g o in g to su ccessfu lly c o nv in ce re lu cta nt c usto m ers to n o t o nly th in k d iffe re ntl y , b ut a ct

d iffe re ntl y — in w hat i s a lm ost d efin iti o nally g o in g to b e a d is ru p ti v e m anner— th en i t’ s n o t e no ugh f o r

y o ur te achin g p itc h to s im ply c o nv ey a “ co m pellin g b usin ess c ase ” w ith d ata , c harts , a nd g ra p hs. N o

o ne e v er s o ld a nyth in g o ff a s p re ad sh eet a lo ne. D one w ell, a te achin g p itc h m akes c usto m ers f e el s o rt

o f s ic k a b out a ll th e m oney th ey’re w asti n g, o r r e v enue th ey’re m is sin g, o r r is k th ey’re u nkno w in gly

e xp ose d to . B ut if y o ur s to ry fa ils to e ngage b oth s id es o f th e b ra in s im ulta neo usly — th e r a ti o nal a nd

t h e e m oti o nal— it’ s to o e asy fo r y o ur c usto m er to m ake n o d ecis io n e v en o ver a g o od d ecis io n, a s

l o gic a lo ne i s r a re ly e no ugh to o verc o m e th e s ta tu s q uo . D is ru p ti v e c hange i s a s m uch a b out f o llo w in g

y o ur g ut a s i t i s a b out f o llo w in g y o ur h ead .

So w ith th at i n m in d , l e t’ s r e v ie w th e s ix s te p s o f a w orld -c la ss te achin g p itc h. Ste p 1 : T he W arm er

A fte r in iti a l fo rm aliti e s (e .g ., in tr o ducti o ns, ti m e c heck, a gend a se tti n g), a w ell- d esig ned te achin g

p itc h s ta rts o ff w ith y o ur a sse ssm ent o f y o ur c usto m er’s k ey c halle nges. R ath er th an a sk in g, “ W hat’ s

k eep in g y o u u p a t n ig ht? ” y o u la y o ut w hat y o u’re s e ein g a nd h earin g a s k ey c halle nges a t s im ila r

c o m panie s. I f y o u h av e i t, th is i s a g re at p la ce to p ro vid e b enchm ark in g d ata . A t th e v ery l e ast, th is i s

w here y o u s h are a necd ote s fr o m o th er c o m panie s th at c ap tu re th e c halle nges m ost lik ely o f h ig hest

c o ncern to y o ur c usto m er in w ays th at c o rro bora te th eir o w n e xp erie nce. (N ev er u nd ere sti m ate th e

v alu e in b ein g a b le to d em onstr a te to y o ur c usto m ers th at th ey’re n o t a lo ne w hen it c o m es to th eir

m ost p re ssin g c halle nges.) Y ou th en c o nclu d e y o ur r e v ie w b y a sk in g f o r th eir r e acti o ns. W hen y o u p ut

i t a ll to geth er, i t s h o uld s o und s o m eth in g l ik e, “ W e’v e w ork ed w ith a n um ber o f c o m panie s s im ila r to

y o urs , a nd w e’v e fo und th at th ese th re e c halle nges c o m e u p a gain a nd a gain a s b y fa r th e m ost

t r o ub lin g. I s th at w hat y o u’re s e ein g to o, o r w ould y o u a d d s o m eth in g e ls e to th e l is t? ”

The w ho le p oin t o f s te p 1 , o f c o urs e , i s to b uild c re d ib ility . E sse nti a lly , w hat y o u’re s a yin g to y o ur

c usto m er i s , “ I u nd ers ta nd y o ur w orld ,” a nd “ I’ m n o t h ere to w aste y o ur ti m e a sk in g y o u to te ach m e

a b out yo ur busin ess.” It’ s an ap pro ach w e’v e dub bed “H yp oth esis -B ase d S ellin g.” R ath er th an

l e ad in g w ith o pen-e nd ed

questio ns

a b out c usto m ers ’ n eed s, y o u le ad w ith

hyp oth ese s

o f c usto m ers ’

n eed s, in fo rm ed by yo ur ow n exp erie nce and re se arc h. U lti m ate ly , custo m ers su ffe rin g fr o m

“ so lu ti o ns f a ti g ue” l o ve i t n o t o nly b ecause i t m akes th e e nti r e s a le b oth f a ste r a nd e asie r f o r th em , b ut

b ecause i t f e els m uch m ore l ik e a “ get” th an a “ giv e”— th ey g et y o ur i n fo rm ed p ers p ecti v e r a th er th an

h av in g to e d ucate y o u w ith in fo rm ati o n y o u sh o uld h av e b een a b le to fig ure o ut o n y o ur o w n. A

C om merc ia l T eachin g p itc h c uts r ig ht to th e c hase . I t f e els e ffic ie nt. I t h o no rs th e c usto m er’s ti m e a nd

s h o w s th at y o u’v e d one y o ur h o m ew ork . I n o th er w ord s, y o u’v e j u st e sta b lis h ed y o urs e lf a s s o m eo ne

w orth ta lk in g to . O r, a t th e v ery le ast, fo r th e e sp ecia lly re sis ta nt c usto m ers o ut th ere , y o u’v e ju st

b ought y o urs e lf a no th er f iv e m in ute s.

So w hat n ext? W hat a re y o u g o in g to d o w ith th e g o odw ill y o u’v e ju st e sta b lis h ed ? P re se nt y o ur

s o lu ti o n? L ay o ut y o ur “ v alu e p ro positi o n”? T hat’ s th e

la st

th in g y o u w ant to d o n o w ! A lth o ugh it is

t h e n ext ste p th ey’re p ro bab ly e xp ecti n g, a nd it’ s a b so lu te ly th e n ext th in g a c o re -p erfo rm in g re p

w ould d o— and w ith o ut a d oub t w hat y o ur c o m peti to r’s s a le s r e p d id w hen h e w as s itti n g i n th e s a m e

c usto m er’s o ffic e a n h o ur e arlie r.

Thin k a b out it. Y ou ju st g o t y o ur c usto m er to w arm u p to y o u b y ta lk in g a b out th eir b usin ess. W hy

i n th e w orld w ould y o u w ant to ru in a ll th at g o odw ill b y sp outi n g o ff a b out

yo ur

b usin ess? Y ou

h av en’t y et g iv en th em a re aso n to c are . In ste ad , n o w y o u g o to a p la ce y o ur c usto m er n ev er s a w

c o m in g: th e R efr a m e. Ste p 2 : T he R efr a m e

T his i s

th e

c entr a l m om ent o f a C om merc ia l T eachin g p itc h, a s th e e nti r e c o nv ers a ti o n p iv ots o ff w hat

y o u’re a b out to d o n ext.

Build in g o ff th e c halle nges y o ur c usto m er ju st a ckno w le d ged in s te p 1 , y o u n o w in tr o duce a n ew

p ers p ecti v e th at c o nnects th o se c halle nges to e ith er a b ig ger p ro ble m o r a b ig ger o pportu nity th an th ey

e v er re aliz e d th ey h ad . M in d y o u, y o u’re n o t e xp ecte d to a ctu ally c o m e u p w ith th e in sig ht in th e

m om ent. F or re aso ns w e ad dre sse d in th e pre v io us se cti o n, th at kin d of sp onta neo us fla sh of

b rillia nce is n o t o nly to o h ard , it’ s a ctu ally a b ad id ea. R ath er, th is is s o m eth in g y o u’v e c o m e w ell

p re p are d to d is c uss. ( In f a ct, i t m ay h av e b een a b rie f m enti o n o f th is i n sig ht th at w on y o u th e v is it i n

t h e f ir s t p la ce.) T hat s a id , a t th is p oin t, y o ur g o al i s n ’t to l a y o ut th e e xp la nati o ns a nd i m plic ati o ns o f

t h e in sig ht in a ny g re at d eta il— th at w ill c o m e in a fe w m in ute s. R ath er, th e R efr a m e is s im ply a b out

t h e in sig ht its e lf. It’ s ju st th e head lin e. A nd lik e any go od head lin e, yo ur go al is to catc h yo ur

c usto m er o ff g uard w ith a n u nexp ecte d v ie w poin t— to s u rp ris e th em , m ake th em c urio us, a nd g et th em

w anti n g to h ear m ore .

Rem em ber, th e re acti o n y o u’re lo okin g fo r h ere is d efin iti v ely n o t, “ Y es! I to ta lly a gre e! T hat’ s

e xactl y w hat w e’re w ork in g o n!” b ut ra th er, “ H uh, I n ev er th o ught o f it th at w ay b efo re .” If y o ur

c usto m er’s fir s t re acti o n to y o ur in sig ht is e nth usia sti c a gre em ent, th en y o u h av en’t a ctu ally ta ught

t h em a nyth in g. A nd th at’ s is a d angero us p la ce to b e. S ure , it a lw ays fe els g re at w hen y o ur c usto m er

s a ys, “ I a gre e!” B ut i f y o u’v e j u st a rti c ula te d a p ro ble m th ey’v e a lr e ad y th o ught o f, c hances a re p re tty

g o od th ey’v e a lr e ad y th o ught o f a s o lu ti o n to o. A t b est, y o u’re n o w “ te achin g a t th e m arg in s.” D oin g

t h is is a ctu ally b ad fo r

tw o

re aso ns. F ir s t, if y o u fa il to p ro vid e u niq ue in sig ht, th en y o u fa il to

p ro vid e u niq ue v alu e. S eco nd , if y o ur c usto m ers h av e a lr e ad y b egun to c o nsid er p ossib le s o lu ti o ns,

y o u’v e l o st a s ig nific ant o pportu nity to s k ew th eir th in kin g to w ard y o ur s o lu ti o n. P ra cti c ally s p eakin g,

i t’ s lik e fa ilin g to g et a head o f th e R FP. Y ou’re

re sp ondin g

to c usto m ers ’ n eed s r a th er th an

defin in g

t h em . A nd th at’ s a r e cip e f o r i n cre ase d c o m moditi z a ti o n.

If y o u’re g o in g to r e fr a m e, th en b e s u re y o u r e ally r e fr a m e. T his i s n o t th e p la ce to b e ti m id , a s th e

e nti r e a p pro ach re sts o n y o ur a b ility to su rp ris e y o ur c usto m er a nd m ake th em c urio us fo r m ore

i n fo rm ati o n. Y ou’v e ju st b ought y o urs e lf a no th er fiv e m in ute s. S o w hat’ s n ext? W ell, y o u’v e s h o w n

y o ur c usto m er a d iffe re nt w ay to th in k a b out th eir b usin ess, n o w y o u’v e g o t to s h o w th em w hy it

m atte rs . Ste p 3 : R atio nal D ro w nin g

R ati o nal D ro w nin g i s w here y o u l a y o ut th e b usin ess c ase f o r w hy th e R efr a m e i n s te p 2 i s w orth y o ur

c usto m er’s ti m e a nd a tte nti o n.

So n o w it’ s ti m e fo r th e d ata , g ra p hs, ta b le s, a nd c harts y o u n eed to q uanti fy fo r th e c usto m er th e

t r u e, o fte n hid den, co st o f th e p ro ble m o r siz e o f th e o pportu nity th ey’d co m ple te ly o verlo oked .

R ati o nal D ro w nin g is th e n um bers -d riv en ra ti o nale fo r w hy y o ur c usto m er s h o uld th in k d iffe re ntl y

a b out th eir b usin ess, b ut p re se nte d s p ecific ally i n a w ay d esig ned to m ake th em s q uir m a l ittl e b it— to

f e el lik e th ey’re d ro w nin g. M ark ete rs o fte n r e fe r to th is a s th e “ F U D fa cto r” — fe ar, u ncerta in ty , a nd

d oub t. If y o ur p re se nta ti o n is d one w ell, th e c usto m er re acti o n in s te p 3 s h o uld b e s o m eth in g lik e,

“ W ow , I h ad n o id ea w e w ere w asti n g th at k in d o f m oney!” o r “ I’ d n ev er th o ught o f th is a s a n

o pportu nity b efo re . W e’v e g o t to g et a fte r th is o r w e’re g o in g to r e ally m is s o ut! ”

If y o u’re g o in g to p ut a n R O I c alc ula to r in fr o nt o f y o ur c usto m er, th is is w here it g o es. B ut ju st

r e m em ber th e R O I th at y o u’re c alc ula ti n g. In a w orld -c la ss te achin g p itc h a g o od R O I c alc ula to r

c alc ula te s th e R O I o n s o lv in g th e c halle nge y o u’v e j u st ta ught y o ur c usto m er th ey h av e, n o t th e R O I o n

b uyin g y o ur so lu ti o n. If y o ur R O I c alc ula to r is e xp lic itl y a b out y o ur p ro ducts a nd se rv ic es— as it

a lm ost in ev ita b ly is — th en y o u’re ta lk in g a b out th e w ro ng th in g. B efo re y o u d em onstr a te h o w y o ur

s o lu ti o n c an e co no m ic ally s o lv e a k ey c usto m er c halle nge, y o u’v e g o t to c o nv in ce th e c usto m er th at

t h at c halle nge i s w orth s o lv in g i n th e f ir s t p la ce.

Putti n g s te p s 2 a nd 3 to geth er, y o u’v e g o t to s h o w th em s o m eth in g n ew , a nd th en s h o w th em w hy i t

m atte rs . T his is w hat g o od te achin g is a ll a b out.

Gre a t

te achin g, h o w ev er, re q uir e s s o m eth in g e ls e :

e m oti o nal i m pact. Ste p 4 : E m otio nal I m pact

E m oti o nal Im pact is a ll a b out m akin g a b so lu te ly s u re th at th e c usto m er s e es th em se lv es in th e s to ry

y o u’re te llin g. T here ’s n o th in g m ore fr u str a ti n g th an la yin g o ut a c o m pellin g a rg um ent a nd h earin g

y o ur c usto m er s a y, “ Y eah, I s e e w hat y o u’re s a yin g, a nd I’ m s u re it m akes a lo t o f s e nse fo r a lo t o f

y o ur c usto m ers . B ut I’ m s tr u gglin g to s e e h o w th is a p plie s to u s. W e’re d iffe re nt.” U gh. T his is th e

s a le s v ers io n o f th at a w kw ard m om ent w hen y o ur d ate lo oks a t y o u a nd s a ys, “ It’ s n o t y o u. It’ s m e.”

C le arly , w hat th ey’re tr y in g to s a y i s , “ I h av e a b so lu te ly z e ro i n te re st i n a nyth in g y o u h av e to o ffe r.”

So w hat d o yo u d o no w ? H ow d o yo u co unte r th e “w e’re d iffe re nt” d efe nse ? F or th e co re -

p erfo rm in g re p , th e re sp onse is p re d ic ta b le . If o ne c hart w asn ’t e no ugh, tr y tw o. If th e P ow erP oin t

d eck d id n’t g et y o u th ere , se nd th e w hite p ap er. It’ s m ore o f th e sa m e. B ut sim ply re p eati n g th e

b usin ess c ase i n g re ate r d eta il w ill n ev er g et y o u p ast th e “ w e’re d iffe re nt” r e sp onse . T hat’ s b ecause

y o u’re so lv in g fo r th e w ro ng p ro ble m . T he p ro ble m is n ’t th at yo u’v e fa ile d to m ake a lo gic al

p re se nta ti o n, th e p ro ble m is y o u’v e fa ile d to m ake a n e m oti o nal c o nnecti o n. It’ s n o t th at th ey d on’t

b elie v e y o ur s to ry , it’ s ju st th at th ey d on’t s e e it a s

th eir

s to ry . Y ou n eed to g et th em to in te rn aliz e

w hat y o u’re te llin g th em .

So h o w d o y o u d o th at? N ow y o u’v e g o t to m ake i t p ers o nal. A nd th is i s w here a C halle nger r e p ’s

s to ry te llin g a b ility re ally c o m es in to p la y. A s th e n am e im plie s, E m oti o nal Im pact is n ’t a b out th e

n um bers ; it’ s a b out th e n arra ti v e. Y ou’v e g o t to p ain t a p ic tu re o f h o w o th er c o m panie s ju st lik e th e

c usto m er’s w ent d ow n a sim ila rly p ain fu l p ath b y engagin g in b ehav io r th at th e custo m er w ill

i m med ia te ly r e co gniz e a s ty p ic al o f th eir o w n c o m pany.

The s to ry , th ere fo re , s ta rts o ut w ith s o m eth in g l ik e, “ I u nd ers ta nd y o u’re a l ittl e b it d iffe re nt, b ut l e t

m e g iv e y o u a s e nse o f h o w w e’v e s e en th is p la y o ut a t s im ila r c o m panie s . . .” A nd f o r th is to w ork ,

w hate v er yo u sa y next has to

fe el

im med ia te ly fa m ilia r (w hic h is ano th er re aso n w hy a deep

u nd ers ta nd in g o f th e custo m er m ust b e acq uir e d

prio r

to th e sa le s call, no t ju st d urin g it) . T he

r e acti o ns y o u’re lo okin g fo r a re a r u efu l s h ake o f th e h ead , a w ry s m ile , a th o ughtf u l fa ra w ay lo ok.

W hy? B ecause y o u’re l o okin g f o r th e c usto m er to r e p la y th e s a m e s c enario i n th eir h ead a s i t

actu ally

h appen ed t o t h em i n t h eir o w n c o m pany

j u st l a st w eek. I d eally , th e c usto m er’s r e sp onse to y o ur s to ry

i s s o m eth in g lik e, “ W ow , it’ s lik e y o u w ork h ere o r s o m eth in g. Y eah, w e d o th at

all

th e ti m e. It ju st

k ills u s.” A nd th at is h o w y o u s la y th e d ra go n o f “ w e’re ju st d iffe re nt” : b y c re ati n g a n e m oti o nal

c o nnecti o n b etw een th e p ain in th e s to ry y o u’re te llin g a nd th e p ain y o ur c usto m er fe els e v ery d ay

i n sid e th eir o w n o rg aniz a ti o n. If y o ur c usto m er s ti ll th in ks th ey’re d iffe re nt a fte r s te p 4 , y o u e ith er

h av e th e w ro ng c usto m er o r th e w ro ng s to ry .

But if y o u a re s u ccessfu l, n o w y o u’v e g o t y o ur c usto m er b ought in to th e R efr a m e. T hey s e e th e

c halle nge o r o pportu nity a s th eir o w n, a nd n o w th ey’re l o okin g f o r a s o lu ti o n. Ste p 5 : A N ew W ay

C om in g i n to s te p 5 y o u’v e c o nv in ced th e c usto m er o f th e p ro ble m . N ow y o u’v e g o t to c o nv in ce th em

o f th e s o lu ti o n. T his i s a p oin t- b y-p oin t r e v ie w o f th e s p ecific c ap ab iliti e s th ey w ould n eed to h av e i n

o rd er to m ake g o od o n w hate v er o pportu nity to m ake m oney, s a v e m oney, o r m iti g ate r is k th at y o u’v e

j u st c o nv in ced th em th ey’re f a cin g. A s te m pti n g a s i t m ig ht b e a t th is p oin t to l a unch i n to a r e v ie w o f

h o w y o u c an h elp , s te p 5 is s ti ll a b out th e

so lu tio n

, n o t a b out th e

su pplie r

. F acin g a c usto m er w ho

e nth usia sti c ally agre es th at th ey’v e go t th e v ery challe nge yo ur so lu ti o n d ir e ctl y ad dre sse s, it is

d eep ly te m pti n g to ta lk s p ecific ally a b out h o w y o u c an h elp . F or m ost re p s it s im ply fe els lik e th e

o bvio us th in g to d o. B ut s te p 5 i s n ’t a s to ry a b out h o w m uch b ette r c usto m ers ’ l iv es w ould b e i f th ey

b ought y o ur s tu ff (w hic h is w hat m ost re p s w ant to ta lk a b out) , it’ s a b out s h o w in g c usto m ers h o w

m uch b ette r th eir l ife w ould b e i f th ey j u st a cte d d iffe re ntl y . I t’ s a b out b ehav in g d iffe re ntl y , n o t b uyin g

d iffe re ntl y .

Don’t r u sh th is . B efo re th ey b uy

yo ur

s o lu ti o n, th e c usto m er h as to b uy

th e

s o lu ti o n. Y ou’re l o okin g

f o r y o ur c usto m er to s a y s o m eth in g l ik e, “ Y ou’re r ig ht, th at m akes to ta l s e nse . T hat’ s w hat w e n eed to

d o,” o r “ T hat’ s th e k in d o f c o m pany I w ant u s to b e.”

Now

th ey’re r e ad y f o r s te p 6 , Y our S olu ti o n. Ste p 6 : Y our S olu tio n

I f s te p 5 i s a b out g etti n g c usto m ers b ought i n to a cti n g d iffe re ntl y , th e g o al o f s te p 6 i s to d em onstr a te

h o w y o ur s o lu ti o n i s b ette r a b le th an a nyo ne e ls e ’s to e q uip th em to a ct d iffe re ntl y . I n m any w ays, o f

a ll s ix s te p s, th is o ne is th e m ost s tr a ig htf o rw ard , a s it’ s w hat r e p s h av e b een tr a in ed to d o fr o m th e

v ery b egin nin g. T his is w here y o u la y o ut th e s p ecific w ays y o u c an d eliv er th e s o lu ti o n th ey’v e ju st

a gre ed to in s te p 5 b ette r th an a nyo ne e ls e . It’ s a ls o w here a ll o f th e h ard w ork a ro und id enti fy in g

y o ur u niq ue c ap ab iliti e s p ays o ff, b ecause th ey a re fr o nt a nd c ente r in s te p 6 . A fte r a ll, it w ould b e

a b so lu te ly c ru sh in g to g et y o ur c usto m er a ll th e w ay to s te p 6 a nd th en h av e th at d eal g o o ut to a n R FP

t h at y o u c o uld n’t e asily w in . If y o ur c o m peti ti o n is s ti ll in th e ru nnin g a t th is p oin t, th en y o u h av e

e ith er fa ile d to id enti fy cap ab iliti e s th at are tr u ly uniq ue o r yo u hav e fa ile d to le ad to th em as

c o nv in cin gly a s y o u’d h o ped .

If, h o w ev er, y o u’v e g o t th is rig ht, in ste p s 1 –6 y o u’v e a d dre sse d b oth a sp ects o f C om merc ia l

T eachin g— th e “ co m merc ia l” a nd th e “ te achin g”— in o ne c o nv ers a ti o n. Y ou’v e ta ught th e c usto m er

s o m eth in g n ew a nd v alu ab le a b out th eir b usin ess (w hic h is w hat th ey w ere lo okin g fo r fr o m th e

c o nv ers a ti o n), in a w ay th at sp ecific ally le ad s th em to v alu e y o ur c ap ab iliti e s o ver th o se o f th e

c o m peti ti o n ( w hic h i s w hat y o u w ere l o okin g f o r f r o m th e c o nv ers a ti o n).

Now , w hen y o u l o ok b ack a t a ll s ix s te p s to geth er, a sk y o urs e lf th e f o llo w in g q uesti o n: W here d oes

t h e

su pplie r

fir s t e nte r th e c o nv ers a ti o n? N oti c e it’ s n o t u nti l th e v ery e nd in s te p 6 . A nd fo r m any

r e p s, th is i s c o m ple te ly c o unte rin tu iti v e. A fte r a ll, i f I ’ m g o in g to s e ll m y s o lu ti o n to a c usto m er, th en

t h e fir s t th in g I n eed to ta lk a b out is

my so lu tio n

—what it d oes, h o w it’ s d iffe re nt, h o w it h elp s.

R ig ht? W ro ng! T hat’ s n o t th e f ir s t th in g y o u n eed to ta lk a b out, b ut th e

la st

, fo r a v ery s im ple r e aso n:

Y our c usto m er d oesn ’t c are .

That f a ct th at y o ur n ew ly d esig ned X Z-6 90 r u ns 1 5 p erc ent f a ste r, q uie te r, c o ole r, a nd c heap er th an

t h e c o m peti ti o n j u st i s n ’t th at i n te re sti n g to m ost c usto m ers . I f i t

is

, th en w hy b oth er w ith a s a le s c all

a t a ll? J u st s e nd th em a q uo te a nd ta ke th e o rd er o ver th e p ho ne. B ette r y et, s e ll it th ro ugh a n e -s to re

o n th e I n te rn et a nd g et r id o f y o ur s a le s f o rc e a lto geth er.

If, o n th e o th er h and , y o u’re g o in g to ta ke s ix ty m in ute s o f y o ur c usto m er’s p re cio us ti m e f o r a f a ce-

t o -fa ce m eeti n g, y o u’d b ette r m ake su re th at w hate v er y o u d o w ith th at ti m e is v alu ab le to y o ur

c usto m er. L is te nin g to a re v ie w o f h o w y o ur X Z-6 90 is g o in g to s a v e th em ti m e a nd m oney is n ’t.

T alk in g a b out th e c usto m er’s b usin ess i n w ays th at h elp th em b oost p ro ducti v ity i s .

Rem em ber, in th e C om merc ia l T eachin g w orld e v ery th in g is b uilt b ack fr o m th e fin d in g th at, in

y o ur c usto m ers ’ e yes, y o ur p rim ary v alu e a s a s u p plie r i s y o ur a b ility to

te a ch

th em s o m eth in g, n o t to

s e ll

th em so m eth in g. In th e te achin g w orld , th e p itc h is n ’t a b out th e su p plie r a t a ll. It’ s a b out th e

c usto m er. A s a r e su lt, th e b est s a le s r e p s h av e f o und th at y o u c an’t w in c usto m ers ’ i n te re st a nd l o yalty

i f y o u l e ad w ith y o ur d iffe re nti a to rs — all y o ur p ro ducts , s e rv ic es, a nd s o lu ti o ns— no m atte r h o w g o od

t h ey a re . I n ste ad , th e b est s a le s c o nv ers a ti o ns p re se nt th e c usto m er w ith a c o m pellin g s to ry a b out th eir

b usin ess

fir st

, te ach th em s o m eth in g n ew , a nd th en l e ad

to

th eir d iffe re nti a to rs .

By p la cin g y o ur u niq ue str e ngth s in c o nte xt a t th e e nd o f a h ig hly c re d ib le te achin g p itc h y o u

c o m ple te ly c hange th e c usto m er’s d is p ositi o n to w ard y o ur o ffe rin g. B ut to g et th ere , th ere h as to b e a

f lo w to th e c o nv ers a ti o n, a p urp ose fu l c ho re o gra p hy w here y o ur s o lu ti o n is th e n atu ra l o utg ro w th o f

y o ur te achin g, r a th er th an th e s u b je ct o f y o ur te achin g. A nd th at’ s a h uge d iffe re nce. D on’t le ad

with

,

l e ad

to

. R em em ber, th e r e al v alu e o f th e i n te ra cti o n i s n ’t w hat y o u s e ll; i t’ s th e i n sig ht y o u p ro vid e a s part o f th e s a le s i n te ra cti o n i ts e lf. A L O OK I N T H E M IR RO R

T his te achin g c ho re o gra p hy a llo w s y o u to v ery c o ncre te ly a ud it a nd i m pro ve th e s a le s c o nv ers a ti o ns

y o u’re h av in g w ith c usto m ers r ig ht n o w . H ow c lo se ly d oes

yo ur

p itc h fo llo w th is p ath ? D oes it le ad

w ith , o r l e ad to ? H ere ’s a s h o rt q uiz to c o m pare y o ur c urre nt a p pro ach w ith w hat y o u s e e h ere . T hin k

r ig ht n o w a b out w hate v er p ie ce o f c o lla te ra l, o r s lid e d eck, o r c ap ab ility b ro chure y o u ty p ic ally ta ke

i n to a c usto m er m eeti n g. S pecific ally , th in k a b out th e fir s t fo ur o r fiv e p ages. W hat a re th ey a b out?

M ost o f th e ti m e i t’ s s o m eth in g l ik e th is :

• W hat y o u b elie v e in a s a c o m pany. (T op fa v orite s in clu d e “ a c le aner w orld ,” “ se rv in g o ur

custo m ers ,” “in no vati n g fo r th e fu tu re ,” “o ur 150 years of exp erie nce,” “o ur te am of

exp erie nced p ro fe ssio nals d ed ic ate d to h elp in g o ur c usto m ers a chie v e th eir g o als .” )

• A re v ie w o f a ll o f y o ur c ap ab iliti e s. (A fte r a ll, y o u to ok th e ti m e a nd m oney to b uild o ut a

so lu ti o ns c ap ab ility , a nd y o u w ant to m ake s u re y o ur c usto m ers u nd ers ta nd a ll o f th e g re at

ways y o u c an h elp . T here ’s n o th in g m ore f r u str a ti n g th an c usto m ers w ho d on’t f u lly a p pre cia te

all th e g re at th in gs y o u c an d o f o r th em .)

• A lis t o f y o ur to p p artn ers a nd c usto m ers , p re fe ra b ly a cco m panie d b y a s m any o f th eir fu ll-

co lo r lo go s a s p ossib le . (N oth in g c o nv eys c re d ib ility b ette r th an a lo ng lis t o f w ell- k no w n

custo m ers w ho h av e p la ced th eir tr u st i n y o u, r ig ht? )

• A m ap o f a ll o f y o ur l o cati o ns a ll o ver th e w orld . ( If y o ur c usto m ers a re g o in g g lo bal, y o u w ant

th em to k no w y o u’re r ig ht th ere w ith th em , w here v er th at m ig ht b e.)

Sound fa m ilia r? A re th e fir s t fo ur p ages o f yo ur sa le s m ate ria ls all ab out yo u, o r ab out th e

c usto m er? A lm ost i n ev ita b ly , i t’ s th e f o rm er. N ot o nly d o m ost r e p s l e ad w ith , r a th er th an l e ad to , b ut

a lm ost all o f th e sa le s to ols at th eir d is p osa l d o th e sa m e th in g. It’ s a tr e nd as p re d ic ta b le fo r

o rg aniz a ti o ns a s i t i s f o r i n d iv id uals .

So if yo u’re go in g to b uild C halle nger re p s and ask th em to te ach yo ur custo m ers , fo r m any

c o m panie s o ne o f th e f ir s t s te p s w ill i n ev ita b ly h av e to b e a p re tty s ig nific ant r e v ie w o f th e m ate ria ls

y o u p ro vid e th em w ith to d o th at. DEV ELO PIN G A P U RPO SE FU L C H OREO GRAPH Y

S o h o w d o y o u

build

a C om merc ia l T eachin g m essa ge? T he p la ce to b egin i s a ctu ally a t th e e nd w ith

s te p 6 , y o ur s o lu ti o n. Y ou c an’t b uild a c o m pellin g s to ry u nle ss y o u fir s t k no w w hat it’ s b uild in g to .

Y ou’v e g o t to h av e b oth c la rity a nd a gre em ent a cro ss y o ur o rg aniz a ti o n a ro und th e u niq ue b enefits th at

o nly y o u c an o ffe r y o ur c usto m ers . T hat s a id , a s y o u n ail th o se b enefits d ow n, y o u’ll w ant to f o cus i n

p arti c ula r o n th e o nes y o ur c usto m ers c urre ntl y

under

ap pre cia te . N ow th at m ig ht f e el c o unte rin tu iti v e

a t fir s t. W ould n’t y o u d o th e o pposite ? F ocus o n th e u niq ue b enefits th at y o ur c usto m ers tr u ly v alu e?

A fte r a ll, th at’ s M ark eti n g 1 01, r ig ht? E xactl y .

But if y o u w ant to

te a ch

c usto m ers s o m eth in g n ew a nd n o t ju st r e in fo rc e w hat th ey a lr e ad y k no w ,

y o u’ll n eed to e nsu re th at th e “ p unch l in e” o f th at te achin g c o nta in s a n e le m ent o f s u rp ris e a s w ell— a

n ew a nd u nexp ecte d w ay to th in k a b out h o w y o u c an h elp . A lte rn ati v ely , if y o ur c usto m ers a lr e ad y

p la ce h ig h v alu e o n y o ur b enefits o ver th o se o f th e c o m peti ti o n, y o u lik ely d on’t n eed to te ach th em

a nyth in g a t a ll. Ju st ta ke th eir o rd er. B ut b ew are : B y fo cusin g so le ly o n th e

kn ow n

v alu e o f y o ur

o ffe rin g, y o u fo rg o a n o pportu nity to c halle nge c usto m ers ’ th in kin g, w hic h th ey v alu e e v en m ore th an

w hate v er y o u’re s e llin g. Y ou w in th eir b usin ess i n th e s h o rt r u n, b ut p ote nti a lly l o se i t o ver ti m e. B y

h elp in g c usto m ers th in k d iffe re ntl y a b out

th eir

c o m pany, y o u u lti m ate ly w ant th em to th in k d iffe re ntl y

a b out

yo ur

c o m pany.

Once yo u’v e esta b lis h ed cla rity aro und ste p 6 — Your S olu ti o n— yo ur next sto p in b uild in g a

p ow erfu l C om merc ia l T eachin g c o nv ers a ti o n is s te p 2 — th e R efr a m e. Y ou n eed to id enti fy th e c o re

i n sig ht, o r a h-h a! m om ent, th at w ill g et y o ur c usto m er to s a y, “ W ow , I n ev er th o ught a b out i t th at w ay

b efo re .”

To g et th ere , s ta rt w ith th e u niq ue b enefits y o u’v e i d enti fie d f o r s te p 6 a nd th en a sk y o urs e lf, “ W hy

d on’t m y c usto m ers v alu e th o se b enefits

alr e a dy

?” W hat is it a b out h o w th ey v ie w th eir w orld th at

p re clu d es th em fr o m a p pre cia ti n g th o se b enefits a s m uch a s w e th in k th ey e ith er c o uld o r s h o uld ?

T hat’ s th e v ie w y o u n eed to c hange. A nd to c hange it, y o u’ll n eed to p ro vid e th em w ith a n a lte rn ate

v ie w ( th e R efr a m e), a nd th en c o nv in ce th em th at th at a lte rn ate v ie w — were th ey to p urs u e it— co uld

e ith er s a v e o r m ake th em m ore m oney th an th ey r e aliz e d ( s te p 3 ). A fte r th at, it’ s s im ply a m atte r o f

f le sh in g o ut th e r e st o f th e s to ry to c re ate a l o gic al a nd c o m pellin g p ath f r o m s te p 2 to s te p 6 .

Put it a ll to geth er a nd y o u g et: “ W hat’ s c urre ntl y c o sti n g o ur c usto m ers m ore m oney th an th ey

r e aliz e , th at o nly w e c an h elp th em fix ?” T he a nsw er to th at q uesti o n is th e h eart a nd s o ul o f y o ur

C om merc ia l T eachin g p itc h. BU IL D IN G T H E I N SIG HT G EN ER AT IO N M AC H IN E

W hen y o u s te p b ack a nd c o nsid er th e s c o pe o f w hat w e’re p ro posin g h ere , y o u c an b egin to s e e h o w

t h is a p pro ach r e aches d eep b ack in to th e o rg aniz a ti o n. Y es, y o u n eed C halle nger r e p s to d eliv er th e

t e achin g, b ut th e a ctu al c o nstr u cti o n o f th e c o nv ers a ti o n— th e u niq ue b enefits , th e s u rp ris in g c usto m er

i n sig hts , th e ti g htl y packaged te achin g cho re o gra p hy— re q uir e in p ut fr o m th e enti r e co m merc ia l

o rg aniz a ti o n.

Many c o m panie s c ho ose to sh ie ld sa le s re p s fr o m th e c o m ple xity o f th e six -s te p c ho re o gra p hy

a lto geth er b y s im plify in g th e a p pro ach in to th re e k ey e le m ents : ( 1 ) P ro vid in g c usto m ers w ith g am e-

c hangin g in sig ht, (2 ) sp ecify in g and pers o naliz in g th e pote nti a l im pact of th at in sig ht, and (3 )

i n tr o ducin g y o ur c ap ab iliti e s a s th e b est p ossib le m eans o f a cti n g o n th at i n sig ht. I t’ s th e s a m e j o urn ey,

b ut it’ s sim ply easie r to p ro cess fo r re p s tr a d iti o nally accusto m ed to “le ad in g w ith ” ra th er th an

“ le ad in g to .”

It’ s p ossib le y o u’v e b egun w ond erin g: “ Id enti fy in g u niq ue b enefits . . . s e gm enti n g c usto m ers b y

n eed . . . g enera ti n g c o m pellin g c usto m er in sig ht . . . d ev elo pin g te achin g-b ase d c o lla te ra l . . . F or a

b ook a b out in d iv id ual s a le s p erfo rm ance, it s e em s lik e w e’v e w and ere d a lo ng w ay a w ay fr o m th e

i n d iv id ual r e p .” B ut r e m em ber, th is b ook is a b so lu te ly a b out in d iv id ual s a le s r e p s a nd h o w th ey c an

p erfo rm s ig nific antl y b ette r, y et y o u w ould n’t w ant to le av e a ny o f

th ese

th in gs in th e h and s o f y o ur

i n d iv id ual r e p s. T hese a re o rg aniz a ti o nal c ap ab iliti e s, n o t in d iv id ual s k ills . A c riti c al le sso n o f th e

C halle nger a p pro ach i s th e s ig nific ant n eed f o r o rg aniz a ti o nal i n v olv em ent to m ake i t tr u ly s u sta in ab le

a nd n o t j u st th e r e su lt o f i n cid enta l s a le s r e p e xcelle nce. F ew b ut th e v ery b est o f y o ur r e p s c o uld p ull

o ff th is k in d o f te achin g o n th eir o w n c o nsis te ntl y o ver ti m e.

When s a le s l e ad ers f ir s t s e e C om merc ia l T eachin g, th ey u su ally te ll u s s o m eth in g l ik e, “ I’ m h av in g

a h ard e no ugh ti m e g etti n g m y g uys to

se ll

, a nd n o w y o u w ant th em to

te a ch

? G ood lu ck!” B ut it

d oesn ’t h av e to b e th at w ay. A t le ast in te rm s o f te achin g, th e m ost im porta nt s te p s y o u c an ta ke to

m ig ra te y o ur s a le s fo rc e c lo se r to th e C halle nger p ro file h av e le ss to d o w ith th e in d iv id ual re p s

t h em se lv es a nd m uch m ore to d o w ith th e o rg aniz a ti o n th at su p ports th em . In fa ct, in m any w ays,

C om merc ia l T eachin g is lik ely

ea sie r

fo r in d iv id ual re p s th an w hat w e’re a sk in g th em to d o rig ht

n o w . M uch o f th e h eav y lifti n g n ecessa ry to its s u ccess h ap pens lo ng b efo re a n in d iv id ual r e p e v er

g ets i n f r o nt o f a c usto m er.

To u nd ers ta nd w hy, th in k a b out th e jo urn ey fr o m tr a nsa cti o nal s e llin g to s o lu ti o ns s e llin g th at ju st

a b out e v ery B 2B s a le s o rg aniz a ti o n h as u nd erta ken a cro ss th e l a st f iv e to f ifte en y ears ( s e e f ig ure 1 .1

o n page 7). A s part of th at m ove, sa le s sk ill re q uir e m ents hav e go ne up dra m ati c ally . W ith

t r a nsa cti o nal s e llin g, r e p s s o ld l a rg ely o n p ro duct f e atu re s a nd b enefits ; i n th e n ew w orld o f s o lu ti o n

s e llin g, re p s pro be fo r in d iv id ual custo m er need s in th e m om ent, allo w in g th em to su ggest

s p ecific ally ta ilo re d s o lu ti o ns to w hate v er th ey h ear i n r e sp onse . I n i ts p ure st f o rm , s o lu ti o n s e llin g i s

c usto m iz a ti o n i n th e m om ent. I t’ s a n i n cre d ib ly h ig h b ar f o r a ny s a le s r e p . I t’ s n o w ond er, r e ally , th at

s a le s o rg aniz a ti o ns a ll o ver th e w orld s tr u ggle m ig hti ly to h elp th eir te am s m ake th is tr a nsiti o n.

With C om merc ia l T eachin g, y o u c an sig nific antl y b ack o ff o n y o ur e xp ecta ti o ns fo r in d iv id ual

c usto m iz a ti o n a b ility , a s th e o rg aniz a ti o n s te p s in to o ffe r c ru cia l s u p port a ro und th e v ery th in g th at

c usto m ers h av e to ld u s th ey v alu e m ost in s u p plie r in te ra cti o ns, n am ely th e s h arin g o f c o m merc ia l

i n sig ht. T he r e p s’ p rim ary jo b s h ifts fr o m d is c o verin g n eed s to g uid in g a c o nv ers a ti o n. T hat a llo w s

t h e o rg aniz a ti o n to la y o ut th e fr a m ew ork fo r th at c o nv ers a ti o n in a d vance— to “ chalk th e fie ld ,” a s one h ead o f s a le s p ut i t.

There a re a n um ber o f w ays i n w hic h th at c o nv ers a ti o n m ig ht s ti ll ta ke a n u nexp ecte d tu rn o r g o o ff

th e r a ils a lto geth er, a nd i n d iv id ual s k ill i s s ti ll h ugely i m porta nt i n a llo w in g th e b est r e p s to n av ig ate

th o se s c enario s b ette r th an a nyo ne e ls e , b ut C om merc ia l T eachin g p la ces s ig nific ant g uard ra ils a ro und

th e s a le s i n te ra cti o n to p ro vid e r e al s u p port f o r th e r e p .

Fir s t, th e custo m er’s need s are

pre sc o ped

. R ep s d on’t sta rt w ith a b la nk sh eet o f p ap er and

dia gno se each custo m er’s need s in d iv id ually . M uch of th at w ork has been done in sid e th e

org aniz a ti o n th ro ugh b ette r s e gm enta ti o n a nd c usto m er a naly sis , s ig nific antl y r e d ucin g th e b urd en o n

th e o ne s k ill r e p s p ro bab ly s tr u ggle w ith th e m ost.

Seco nd , th e c o nv ers a ti o n is

pre sc rip te d

. A te achin g r e p s ti ll h as to in te ra ct w ith th e c usto m er in a

liv e se tti n g, answ erin g questi o ns and ad ap ti n g to unanti c ip ate d obje cti o ns. H ow ev er, th e re p ’s

openin g s e t o f h yp oth ese s i s a lr e ad y l a id o ut i n d eta il, a nd e v ery s te p a lo ng th e w ay i s c le arly m ark ed

th ro ugh th e te achin g c ho re o gra p hy. B ecause th e te achin g p itc h fo llo w s th e s a m e ta lk in g p oin ts a gain

and a gain , re p s w ill n atu ra lly im pro ve a s th ey le arn fr o m e xp erie nce, b eco m in g m ore c o m pellin g

over ti m e. I n th at r e sp ect, C om merc ia l T eachin g s u p porte d b y th e o rg aniz a ti o n i s m uch m ore c o ncre te

th an r u nnin g a n o pen-e nd ed n eed s a naly sis . It’ s e asie r fo r r e p s to le arn , a nd e asie r fo r m anagers to

co ach.

Fin ally , th e s o lu ti o n th e r e p is w ork in g to w ard is

pre d efin ed

. T he b urd en o n th e r e p to d ete rm in e

th e rig ht so lu ti o n fo r an in d iv id ual custo m er is sig nific antl y re d uced , as th e so lu ti o n is la rg ely

dete rm in ed in ad vance th ro ugh o rg aniz a ti o nal id enti fic ati o n o f th e su p plie r’s uniq ue b enefits and

need s-b ase d s e gm enta ti o n o f c usto m ers . O ne c o m pany w e w ork w ith r e fe rs to th ese p re b uilt s o lu ti o ns

as “ H ap py M eals ,” b ase d o n M cD onald ’s fa m ous “ m eal s o lu ti o n” fo r y o ung c hild re n. T hey’re o ff-

th e-s h elf so lu ti o ns th at fe el c usto m iz e d to c usto m ers , b ecause th ey’re w ell ta ilo re d in a d vance to

th o se c usto m ers ’ m ost c o m mon n eed s.

Of c o urs e , th is a p pro ach s ti ll r e q uir e s g re ate r s k ill th an th e s im ple w orld o f tr a nsa cti o nal s e llin g.

But c o m pare it w ith a w orld o f c la ssic so lu ti o n se llin g o r “ co nsu lta ti v e se llin g” w here re p s a re

exp ecte d to fig ure a ll o f th is o ut o n th eir o w n. W hile y o ur s ta rs w ill g et it r ig ht a t le ast s o m e o f th e

ti m e, y o ur c o re r e p s w ill s tr u ggle m ig hti ly a ll o f th e ti m e. B ut if y o u’v e d one y o ur h o m ew ork in sid e

th e o rg aniz a ti o n to b uild a s o lid te achin g in te ra cti o n to b egin w ith , y o ur r e p s a re fa r b ette r p re p are d

to s u cceed w hen th ey’re i n f r o nt o f th e c usto m er.

So w ho s h o uld d o th e w ork ? C om merc ia l T eachin g is a s m uch a te am s p ort a s a n in d iv id ual o ne.

Ju st a s y o u’ll n eed to a lig n in d iv id ual r e p s to th e C halle nger p ro file to m ake it w ork , y o u’ll n eed to

alig n sa le s and m ark eti n g aro und th e co re cap ab iliti e s im plic it in th e C om merc ia l Teachin g

cho re o gra p hy:

1. I d enti fy y o ur u niq ue b enefits .

2. D ev elo p c o m merc ia l i n sig ht th at c halle nges c usto m ers ’ th in kin g.

3. P ackage c o m merc ia l i n sig ht i n c o m pellin g m essa ges th at “ le ad to .”

4. E quip r e p s to c halle nge c usto m ers .

Com merc ia l T eachin g als o p ro vid es a co ncre te and v ery acti o nab le ro ad m ap fo r ad dre ssin g

arg uab ly o ne o f th e to ughest c halle nges in a ll o f B 2B s a le s a nd m ark eti n g, n am ely g etti n g th e tw o

fu ncti o ns to w ork to geth er i n th e f ir s t p la ce.

Giv en th e c hance, a ny h ead o f s a le s o r m ark eti n g w ill b e h ap py to r e gale y o u w ith e xam ple s o f th e

his to ric ally poor— or no nexis te nt— co lla b ora ti o n betw een th e tw o fu ncti o ns. A t best in m ost

org aniz a ti o ns th ere ’s a th in ly veile d anti p ath y acro ss th e sa le s/m ark eti n g div id e. A t w ors t, it’ s

outr ig ht h o sti lity . W e’v e a ll s e en th e s ta ti s ti c s. E ig hty p erc ent o f m ark eti n g c o lla te ra l w in d s u p i n th e tr a sh , w hile 3 0 p erc ent o f s a le s ti m e i s s p ent r e p ro ducin g th e v ery c o lla te ra l th ey j u st th re w a w ay.

The u nd erly in g c ause o f m uch o f th is d is c o rd ty p ic ally g o es u nad dre sse d . M ost c o m panie s fa il to

defin e a n a gre ed -u p on fr a m ew ork fo r w hat th e tw o fu ncti o ns s h o uld a ctu ally d o to geth er in th e fir s t

pla ce. M any co m merc ia l exec uti v es w ho la m ent th e need fo r gre ate r sa le s and m ark eti n g

“in te gra ti o n” fa il to c o nsid er th e p ro ble m fr o m th e o pposite p ers p ecti v e, w hic h is : W hat

sh ould n’t

th ey d o to geth er?

Com merc ia l T eachin g p ro vid es a ro ad m ap fo r in te gra ti n g a ro und a lim ite d n um ber o f a cti v iti e s

th at tr u ly m atte r. T he a p pro ach d efin es a v ery s p ecific fr a m ew ork fo r “ w hat g o od lo oks lik e” fo r th e

enti r e c o m merc ia l o rg aniz a ti o n, a llo w in g fo r th e id enti fic ati o n o f c o ncre te ro le s, ta sk s, g o als , a nd

re sp onsib iliti e s. F or e xam ple , o nly m ark eti n g h as th e to ols , th e e xp erti s e , a nd th e ti m e to g enera te th e

in sig hts n ecessa ry to c halle nge c usto m ers b oth s c ala b ly a nd r e p eate d ly . A s th e h ead o f m ark eti n g a t a

la rg e te le co m munic ati o ns c o m pany p ut it, m ark eti n g m ust s e rv e a s th e “ in sig ht g enera ti o n m achin e”

th at k eep s re p s w ell e q uip ped w ith q uality te achin g m ate ria l th at c usto m ers w ill fin d c o m pellin g.

Sale s, o n th e o th er h and , w ill h av e to e nsu re th at re p s h av e th e k no w le d ge, sk ills , a nd c o achin g

necessa ry to g o o ut a nd u se th at i n sig ht i n a c o nv in cin g m anner to a ctu ally c halle nge c usto m ers . I t’ s a

sy m bio ti c r e la ti o nsh ip a ro und a c o re p rin cip le .

Eith er w ay, a t th e e nd o f th e d ay y o ur m essa ge lib ra ry , y o ur c o lla te ra l, a nd y o ur p itc h c an’t b e

sta ti c . T hey m ust c o nsta ntl y e v olv e to s ta y c urre nt w ith th e c usto m er’s b usin ess e nv ir o nm ent a nd w ith

a c o m peti ti v e, d ynam ic la nd sc ap e. T his is a b ig jo b— hund re d s o f p ro ducts , d oze ns o f c usto m er

se gm ents , m ulti p le c hannels , a nd a c usto m er e nv ir o nm ent th at e v olv es o n a q uarte rly b asis . T here fo re ,

Com merc ia l T eachin g is n ’t a o ne-ti m e e xerc is e , it’ s a n “ alw ays-o n” c ap ab ility . W ith in p ut fr o m th e

sa le s fo rc e— and at th eir behest— org aniz a ti o ns m ust in v est in tr a in in g m ark ete rs to arti c ula te

diffe re nti a to rs a nd c o nsta ntl y s o urc e f r e sh a nd c o m pellin g te achin g m essa ges.

MAKE S U RE Y O UR T EA CHIN G P IT C H I S “ B O LD ”

We s e e a lo t o f c o m panie s s lip in to “ sa fe m ode” a s th ey d ev elo p th eir te achin g p itc hes. T hey

mig ht s ta rt w ith s o m eth in g i n sig htf u l a nd g enuin ely p ro vocati v e, b ut a s m ore a nd m ore p eo ple g et

th eir h and s o n i t i n te rn ally , i t g ets w ate re d d ow n to th e p oin t w here i t’ s m ore o f a s u ggesti o n th an

a p ro vocati o n.

A g re at to ol w e’v e s e en to e nsu re th at te achin g p itc hes d on’t l o se th eir e d ge a s th ey w ork th eir

way th ro ugh th e o rg aniz a ti o n is th e “ S A FE -B O LD F ra m ew ork ,” d ev elo ped b y N eil R ackham

and K PM G. T he fr a m ew ork fu ncti o ns a s a g ra d in g e xerc is e fo r e v alu ati n g th e str e ngth o f a

te achin g p itc h. T o q uo te N eil a nd K PM G, “ A s u ccessfu l te achin g p itc h m ust d o f o ur th in gs w ell.

Fir s t, i t m ust b e

big

. D one w ell, it w ill b e s e en b y th e c usto m er a s m ore e xp ansiv e a nd fa rth er-

re achin g th an a n o rd in ary id ea. S eco nd , it m ust b e

in nova tiv e

. It h as to p ush th e e nv elo pe w ith

new , o fte n u nte ste d a nd u niq ue a p pro aches. T hir d , it m ust b e

ris k y

. B ig id eas m ean th at w e a re

ask in g o ur o w n c o m panie s a nd o ur c usto m ers to ta ke a b ig r is k i n a d opti n g o ur i d ea. A nd l a stl y ,

it m ust b e

diffic u lt

. T he id ea its e lf m ust b e h ard to d o— eith er b ecause o f s c ale , u ncerta in ty , o r

politi c s— oth erw is e , w hy w ould a c usto m er h ir e y o u to f ix i t f o r th em ?”

The f r a m ew ork i s a s im ple to ol th at f o rc es y o u to g ra d e a p ote nti a l te achin g p itc h a lo ng th ese

fo ur d im ensio ns. T he b est id eas w ill s c o re c lo se r to th e “ B O LD ” e nd o f th e c o nti n uum — th ey

will b e b ig , th ey w ill o utp erfo rm ( fr o m a r is k in ess p ers p ecti v e), th ey w ill b e le ad in g-e d ge ( in

te rm s o f i n no vati o n), a nd th ey w ill b e d iffic ult to i m ple m ent f o r th e c usto m er. A t th e o th er e nd o f

th e sp ectr u m a re th e “ S A FE ” id eas, w hic h, in c o ntr a st, a re sm all, fe el e asily a chie v ab le (in te rm s o f r is k ), a re “ fo llo w er” i d eas ( v ers u s p ro gre ssiv e, i n no vati v e i d eas), a nd a re s e en a s e asy

to i m ple m ent.

The w ay N eil a nd th e K PM G te am e m plo yed th is to ol w as to a sk a g ro up o f K PM G c lie nt

ad vis e rs to b ra in sto rm a C halle nger p itc h to a c lie nt a nd th en p re se nt th at p itc h to a n a ud ie nce o f

in te rn al p eers , w ho in tu rn g ra d ed th e p itc h u sin g th e S A FE -B O LD fr a m ew ork . K PM G te lls u s

th at th is has no w b eco m e a p art o f th e in te rn al v ern acula r fo r th e o rg aniz a ti o n, w ith clie nt

ad vis e rs c auti o nin g p eers a gain st w ate rin g d ow n a nd “ m akin g to o S A FE ” th eir c usto m er p itc hes.

Sourc e: K PM G, N eil R ackham .

Fig ure 5 .2 .

T he S A FE -B O LD F ra m ew ork

Rem em ber, R ela ti o nsh ip B uild ers a re e v ery w here , n o t ju st in s a le s, a nd c hances a re p re tty

go od th at s o m ew here a lo ng th e lin e, a s e nio r-le v el R ela ti o nsh ip B uild er— mayb e s o m eb ody in

mark eti n g or co rp ora te co m munic ati o ns, m ayb e a se nio r lin e executi v e— will te m per th e

messa ge o f th e p itc h, fe arfu l th at it w ill c o m e a cro ss a s c o nfr o nta ti o nal o r u nse ttl in g to th e

custo m er.

One o f th e c la ssic R ela ti o nsh ip B uild er m odific ati o ns to a g re at te achin g p itc h is to p ull th e

“w ho w e a re a nd w hat w e d o” s lid es fr o m th e

back

o f th e p itc h d eck ( w here th ey b elo ng in a

pro per te achin g p itc h) a nd p ut th em in th e fr o nt o f th e d eck. R ela ti o nsh ip B uild ers fe el th e n eed

to e sta b lis h c re d ib ility u p fr o nt b y th ro w in g a ro und c o m pany s iz e a nd fa cto id s a nd e ngagin g in

so m e h ig h-p ro file c usto m er n am e-d ro ppin g. T hey a re u nco m fo rta b le le ad in g w ith in sig ht a nd

le tti n g th eir i n sig hts e sta b lis h c re d ib ility f o r th em .

As so on a s y o u’re n o t lo okin g, R ela ti o nsh ip B uild ers w ill ta ke o ut th eir b elt sa nd ers a nd

sm ooth o ut th e e d ges o f y o ur s h arp p itc h. T hey’ll s o fte n i t u nti l y o u b are ly r e co gniz e i t, p ush in g i t

to th e S A FE e nd o f th e c o nti n uum .

But b ein g a littl e unse ttl in g is th e p oin t o f a C halle nger ap pro ach: to b e p ro vocati v e, to

challe nge, a nd th ere fo re to b e s e en a s d iffe re nti a te d b y th e c usto m er. W ith o ut a n e d ge, y o u s o und

ju st lik e ev ery b ody els e . R em em ber, w hile R ela ti o nsh ip B uild ers se ek to re d uce o r d efu se

te nsio n, C halle ngers c o nstr u cti v ely u se te nsio n to th eir a d vanta ge.

So w hat d oes C om merc ia l T eachin g l o ok l ik e a nd f e el l ik e i n r e ality ? N ow th at w e’v e l a id o ut th e

th eo ry o f th e a p pro ach, w e c an s e e i t i n a cti o n a t tw o r e al c o m panie s: W . W . G ra in ger, I n c., a nd A DP Deale r S erv ic es. CO M MER CIA L T EA C H IN G C ASE S T U DY # 1: W . W . G RAIN G ER , I N C.,

AN D T H E P O W ER O F P LA N NIN G T H E U NPLA N NED

W . W . G ra in ger, I n c., b ase d i n L ake F ore st, I llin o is , i s a $ 7 b illio n d is tr ib uto r o f m ain te nance, r e p air,

a nd o pera ti o ns (M RO ) eq uip m ent and su p plie s, se rv in g nearly tw o m illio n co m panie s p rim arily

a cro ss th e U nite d S ta te s a nd C anad a. G ra in ger p ro vid es o ne-s to p sh o ppin g fo r th e w id e ra nge o f

e q uip m ent c o m panie s n eed to k eep th eir fa ciliti e s, p la nts , a nd o ffic es ru nnin g s a fe ly , s m ooth ly , a nd

e ffic ie ntl y . A ll to ld , th e c o m pany sto cks se v era l h und re d th o usa nd d iffe re nt p ro ducts — fr o m to ols ,

p um ps, and sa fe ty su p plie s to ele ctr ic al eq uip m ent and ja nito ria l su p plie s— whic h th ey deliv er

t h ro ugh b ra nches, a h eav ily tr a ffic ked e -s to re , a nd o f c o urs e th e fa m ous G ra in ger p ro duct c ata lo g.

M uch o f i ts s a le s v olu m e i s d riv en b y b oth i n sid e a nd f ie ld -b ase d s a le s r e p s w ork in g w ith c usto m ers

t o e sta b lis h l o ng-te rm c usto m er p urc hase a gre em ents .

As p ow erfu l a s G ra in ger’s b ro ad p ro duct p ortf o lio c an b e i n s e rv in g c usto m ers ’ m any a nd d iv ers e

n eed s, th e c o m pany’s im pre ssiv e s c o pe c an b e o verw helm in g. F aced w ith s u ch a d aunti n g a rra y o f

c ho ic es, o ver th e y ears , so m e c usto m ers h av e slip ped in to b uyin g in d iv id ual p ro ducts re acti v ely ,

b ase d s im ply o n p ast p urc hase p atte rn s a nd o pportu nis ti c n eed , r a th er th an ta kin g th e ti m e to s it d ow n

w ith G ra in ger a nd c o nsid er h o w to m anage th eir o vera ll M RO s p end m ore w is e ly , d esp ite th e fa ct

t h at m any c o m panie s’ to ta l M RO s p end c an e asily re ach in to th e te ns o f m illio ns o f d olla rs . In th e

v ie w o f m any c usto m ers , it’ s ju st a b unch o f h am mers , g lo ves, lig ht b ulb s, p um ps, a nd g enera to rs .

“ W e’v e g o t m ore i m porta nt th in gs to d o,” th e th in kin g g o es, “ th an s p end o ur ti m e w orry in g a b out

th at

s tu ff.” T he r e su lt f o r G ra in ger? O ver ti m e, m any c usto m ers h ad c o m e to th in k o f G ra in ger m ere ly a s a

t r a nsa cti o nal s u p plie r r a th er th an a s tr a te gic p artn er. N eed a h am mer? G o to G ra in ger. N eed a p um p?

G o to G ra in ger. N eed b usin ess a d vic e o n c o m peti n g m ore e ffe cti v ely ? N ot s o m uch. It s im ply n ev er

o ccurre d to m any c usto m ers th at G ra in ger m ig ht b e a b le to h elp w ith a nyth in g b eyo nd g re at p ro ducts

a t g re at p ric es. S o w hen it c am e ti m e fo r th o se c usto m ers to r e new th eir c o ntr a cts , th at’ s w hat th ey

w ante d to ta lk a b out: p ric e.

Now , y o u c o uld a rg ue th at th ere a re c erta in ly w ors e p ro ble m s to h av e th an c usto m ers w ho th in k

a b out y o u p rim arily a s th e c o m pany w ith g re at p ro ducts a t g re at p ric es. B ut i f y o ur p rim ary g o al a s a

b usin ess is to d riv e d eep er c usto m er re la ti o nsh ip s th ro ugh b ro ad er, m ore s tr a te gic “ so lu ti o ns,” it’ s

a ctu ally a pre tty to ugh pla ce to be. It’ s hard to driv e org anic gro w th and deep en custo m er

r e la ti o nsh ip s w hen y o ur c usto m ers th in k o f y o u b y a nd la rg e a s a tr a nsa cti o nal s u p plie r o f r e la ti v ely

u nim porta nt p ro ducts . I n th e e nd , y o u b eco m e r e le gate d to th e c usto m er’s f a ciliti e s m anagem ent te am ,

o r w ors e , p ro cure m ent, w here y o u w in d u p h agglin g o ver s h o rt- te rm p ric in g ra th er th an lo ng-te rm

v alu e c re ati o n.

So G ra in ger h ad a p ro ble m . A s D eb ra O le r, G ra in ger’s v ic e p re sid ent a nd g enera l m anager o f

G ra in ger B ra nd , p ut i t, i f th e c o m pany w as g o in g to e sta b lis h i ts e lf a s a tr u e s o lu ti o ns p ro vid er i n th e

m in d s o f its c usto m ers , it h ad to c hange th e w ay th o se c usto m ers th o ught a b out th e c o m pany. T hey

n eed ed to b uild a c o nv in cin g s to ry , n o t a b out h o w G ra in ger c an s e ll y o u m ore h am mers , b ut a b out

h o w i t c an h elp y o u i m pro ve y o ur b otto m l in e b y s a v in g y o u m oney.

To d o th at, G ra in ger f ir s t h ad to s o lv e a n e v en b ig ger c halle nge. T he r e al p ro ble m w asn ’t s o m uch

t h at c usto m ers fa ile d to th in k a b out G ra in ger s tr a te gic ally , b ut th at th ey fa ile d to th in k o f th eir o w n

M RO s p end s tr a te gic ally . I t’ s h ard to b e p erc eiv ed a s a n i m porta nt p artn er w hen y o ur c usto m ers th in k

o f y o u a s o nly to uchin g a n u nim porta nt p art o f th e b usin ess. So lo ng b efo re G ra in ger c o uld c hange c usto m ers ’ m in d s a b out h o w th ey th o ught a b out it, th ey fir s t

had to c hange c usto m ers ’ m in d s a b out h o w th ey th o ught a b out

th em se lv es

. T hey h ad to s h o w th em th at

th e m illio ns o f d olla rs th ey s p end e v ery y ear i n M RO p urc hase s i s n o t o nly a s iz a b le i n v estm ent, b ut

more im porta nt, o ne th at, if m anaged p ro perly , co uld sa v e th em m illio ns o f d olla rs . In d eed , in

tr a ckin g c usto m ers ’ p urc hase h ab its fo r s e v era l y ears , G ra in ger h ad d is c o vere d th at m ost c o m panie s

were p urc hasin g M RO p ro ducts e xtr e m ely in effic ie ntl y , a nd th o se h ab its w ere c o sti n g th em m illio ns

of d olla rs th at th ey h ad n o id ea th ey c o uld b e s a v in g. In o th er w ord s, G ra in ger h ad d is c o vere d a n

opportu nity to te ach c usto m ers s o m eth in g n ew a b out th eir b usin ess— a w ay to r e th in k M RO s p end —

th at c o uld fr e e u p h uge a m ounts o f c ash th ey c o uld th en u se o n m uch m ore im porta nt th in gs th an

ham mers . I n te rm s o f i n sig ht, th ey h ad a s la m d unk.

In te rm s o f C om merc ia l T eachin g, h o w ev er, G ra in ger n eed ed th e o th er c ru cia l p ie ce o f th e s to ry .

Befo re te achin g c usto m ers h o w to s a v e m illio ns o f d olla rs b y th in kin g d iffe re ntl y a b out th eir M RO

sp end , G ra in ger h ad to m ake s u re th at th is i n sig ht n atu ra lly l e d c usto m ers to p re fe r G ra in ger o ver th e

wid e r a nge o f a lte rn ati v e M RO s u p plie rs . T o d o th at, D eb a nd th e te am f ir s t h ad to a nsw er th e s in gle

questi o n, “ W hy s h o uld o ur c usto m ers b uy fr o m u s o ver a nyo ne e ls e ?” A s it tu rn ed o ut, th at q uesti o n

wasn ’t n early a s e asy to a nsw er a s th ey’d a nti c ip ate d . A s D eb te lls it, o ne c o lle ague s u ggeste d , fo r

exam ple , th at th ey to ut th eir m assiv e p ro duct l in e a s tr u ly d iffe re nti a ti n g. W here up on D eb a sk ed , “ D o

no ne o f o ur c o m peti to rs o ffe r a w id e r a nge o f p ro ducts ? ”

“N o,” th e a nsw er c am e b ack, “ th ere a re a fe w g uys o ut th ere th at h av e a p re tty w id e ra nge o f

pro ducts a s w ell— at l e ast f o r s o m e o f th e c ate go rie s w e s e rv e.”

“T hat w on’t w ork , th en. W hat e ls e i s th ere ?” a sk ed D eb .

“W ell, w e’v e g o t s to re s a ll o ver th e c o untr y . W here v er y o u a re , y o u c an f in d a G ra in ger b ra nch.”

“S o c usto m ers c an’t m eet th eir M RO n eed s th ro ugh o th er r e ta il o utl e ts ? ” D eb a sk ed .

“N o, th ere a re o th er c o m panie s o ut th ere w ith s to re s . . .”

“T hat’ s n o t i t e ith er, th en. W hat e ls e ?”

And a ro und th ey w ent, l o okin g f o r th e s e t o f c ap ab iliti e s th at tr u ly s e t G ra in ger a p art. A nd f r a nkly ,

it p ro ved to b e m uch h ard er th an m ost o n th e te am w ould h av e th o ught. A s D eb p ut i t, “ F or a w hile , i t

re ally to ok u s to a d ark p la ce. A fte r a ll, w hat

were

w e b ette r a t th an a nyo ne e ls e ? W ere w e r e ally a ny

diffe re nt? ”

It’ s a d iffic ult q uesti o n f o r m ost c o m panie s. W hen y o u s it d ow n to r e ally d efin e th e s p ecific s e t o f

cap ab iliti e s th at se ts y o u a p art, o nce y o u c ro ss o ff “ in no vati v e,” “ custo m er-fo cuse d ,” “ so lu ti o ns-

orie nte d ,” “m ark et le ad er,” “gre at peo ple ,” “tr u ste d ,” and “ric h his to ry ” fr o m yo ur lis t, m any

executi v es l a nd i n th e s a m e d ark p la ce G ra in ger d id . A nd n o w y o u’v e g o t to r o ll u p y o ur s le ev es a nd

se t a b out th e h ard w ork o f i d enti fy in g r e al c ap ab iliti e s th at o nly y o u c an o ffe r. F or G ra in ger, th at k in d

of c la rity c am e o nly a fte r a la rg e n um ber o f le ad er-le d c usto m er in te rv ie w s, a g re at d eal o f m ark et

re se arc h, so m e ro bust data analy sis of custo m er sp end in g te nd encie s, and a num ber of cro ss-

fu ncti o nal b ra in sto rm in g s e ssio ns d esig ned to c ap tu re a s c o m ple te a p ic tu re o f m ark et p erc ep ti o ns a s

possib le .

In th e e nd , a ll o f th at w ork l e d G ra in ger to tw o i m porta nt c o nclu sio ns. F ir s t, m ost c o m panie s w ere

sp end in g fa r to o m uch o n p urc hasin g M RO p ro ducts e v ery y ear, b ecause th ey fa ile d to a p pre cia te

ho w certa in buyin g behav io rs w ere co sti n g th em huge am ounts of m oney. S eco nd , w hile oth er

su p plie rs m ig ht c arry a w id e ra nge o f p ro ducts o r m ain ta in a c o nv enie nt n etw ork o f re ta il o utl e ts ,

only G ra in ger d id it a ll, a nd o n a s c ale th at a llo w ed c usto m ers p artn ere d w ith G ra in ger to e lim in ate

th o se co sts by av oid in g unnecessa ry or “cauti o nary ” M RO purc hase s. W hate v er yo u need ed ,

where v er y o u n eed ed i t, w henev er y o u n eed ed i t, G ra in ger c o uld p ro vid e i t, s o y o u d id n’t h av e to b uy it “ ju st in c ase .” In o th er w ord s, G ra in ger’s d is ti n cti v e

co m bin atio n

o f c ap ab iliti e s p ut th e c o m pany

in a u niq ue p ositi o n to h elp c usto m ers f r e e u p s u rp ris in g a m ounts o f o pera ti n g e xp ense , a nd p ro vid ed

a p ow erfu l o pportu nity to s h ift c usto m ers ’ v ie w o f G ra in ger fr o m tr a nsa cti o nal s u p plie r to s tr a te gic

partn er.

Gra in ger th en to ok th o se i n sig hts a nd b uilt th em i n to a c o nv ers a ti o n ti tl e d “ T he P ow er o f P la nnin g

th e U np la nned ,” a w orld -c la ss e xam ple o f a C om merc ia l T eachin g c o nv ers a ti o n. T his is th e k in d o f

co nte nt o rg aniz a ti o ns n eed to p ro vid e th e f r o ntl in e s a le s f o rc e i n o rd er to m ake C om merc ia l T eachin g

work b eyo nd th e s ta r-p erfo rm in g C halle nger r e p s. I n f a ct, G ra in ger r e p s b rin g th e “ P ow er o f P la nnin g

th e U np la nned ” d eck i n to a lm ost e v ery s a le s c all b ecause i t a b so lu te ly h its th e h eart o f th e c o m pany’s

diffe re nti a te d v alu e p ro positi o n. F or G ra in ger, th e g o al o f th is c o nv ers a ti o n i s to c hange th e w ay th at

custo m ers th in k a b out th e c o m pany. B ut to g et th em th ere , th e G ra in ger r e p f ir s t n eed s to g et c usto m ers

to c hange th e w ay th ey th in k a b out th eir o w n M RO s p end . T hat’ s h o w th e c o nv ers a ti o n i s s e t u p f r o m

th e very begin nin g— as a co nv ers a ti o n ab out th e custo m er’s M RO sp end , no t ab out G ra in ger’s

cap ab iliti e s.

So a s y o u m ig ht im agin e, th e G ra in ger s a le s r e p r e q uests th e m eeti n g in th e fir s t p la ce in o rd er to

sh are s o m e im porta nt in sig hts G ra in ger h as le arn ed a b out h o w m ost c o m panie s c o uld s a v e a lo t o f

money s im ply b y th in kin g d iffe re ntl y a b out h o w th ey m anage th eir M RO s p end . I n f a ct, ta ke a l o ok a t

th e a gend a f o r th e s a le s c all:

Fro m th e v ery s ta rt o f th e c o nv ers a ti o n, e v ery th in g i s s q uare ly f o cuse d o n th e c usto m er. R em em ber,

custo m ers w ant to ta lk ab out

th eir

b usin ess, no t

yo ur

so lu ti o n, and th at’ s exactl y ho w G ra in ger

positi o ns th e m eeti n g. F ir s t a nd fo re m ost, th e a gend a is la id o ut a s a “ get” fo r th e c usto m er, n o t a

“giv e.” It’ s G ra in ger sa yin g, “ W e’re h ere to h elp y o u th in k sm arte r a b out a p art o f y o ur b usin ess

where w e h av e d eep e xp erti s e .” T hat’ s th e p ositi o nin g; n o w w e’re r e ad y to g o . F ir s t s to p, s te p 1 , th e

Warm er:

The W arm er s ta rts w ith th e c usto m er’s c halle nges. S o th e o penin g i s , “ W e k no w y o u f a ce a h o st o f

challe nges e v ery d ay, s u ch a s p ro ducti o n lin e is su es, w ork ers ’ c o m p c o sts , m ain te nance a nd s a fe ty

is su es. E sp ecia lly th o se c halle nges th at a re c riti c al to k eep in g y o ur b usin ess o pen a nd r u nnin g e v ery

sin gle d ay.” A fte r r e v ie w in g a c o up le i s su es a nd p ro vid in g s o m e g enera l c o lo r f r o m o th er c o m panie s,

th e r e p th en a sk s th e c usto m er to s e le ct f o r d is c ussio n o ne o r tw o th at a re p arti c ula rly p re ssin g i n th eir

org aniz a ti o n.

The id ea is to g et th e c usto m er p ulle d in to th e c o nv ers a ti o n rig ht a w ay a nd ta lk in g a b out th eir

challe nges r e la ti v e to w hat G ra in ger h as a lr e ad y s e en a t o th er c o m panie s. G ra in ger h as f o und th at th is

one p age c an l e ad to a n i n cre d ib ly r o bust a nd v alu ab le c o nv ers a ti o n— all b ecause th e r e p l e d w ith a

hyp oth esis o f c usto m er n eed r a th er th an a n o pen-e nd ed q uesti o n to “ d is c o ver” c usto m er n eed .

Done w ell, a t th is p oin t th e c o nv ers a ti o n fe els le ss lik e a s a le s p re se nta ti o n a nd m ore lik e tw o

co lle agues c o m mis e ra ti n g a b out c o m mon c halle nges. I t’ s a c o nnecti o n b orn o f s h are d e xp erie nce a nd

a g re at w ay to s ta rt a c o nv ers a ti o n.

Yet w hile th e G ra in ger r e p m ay h av e b uilt a c o nnecti o n a t th is p oin t, h e o r s h e h asn ’t a ctu ally ta ught

th e c usto m er a nyth in g n ew . T hat h ap pens i n s te p 2 , th e R efr a m e.

To c hange th e w ay c usto m ers th in k a b out th eir M RO s p end , G ra in ger s ta rts b y b re akin g th at s p end

in to its ty p ic al c ate go rie s: to ols , s a fe ty , lig hti n g, ja nito ria l, a nd s o o n. F or m any c o m panie s th e to ta l

sp end in a ny

one

o f th ese c ate go rie s c an e asily r e p re se nt h und re d s o f th o usa nd s o f d olla rs o r m ore ,

dep end in g o n th e c o m pany’s s iz e . T his w ill a ll l o ok v ery f a m ilia r to th e c usto m er.

How ev er, w hat’ s

not

f a m ilia r to c usto m ers i s a c o m ple te ly d iffe re nt w ay to th in k a b out th is s p end .

Usin g a re la ti v ely str a ig htf o rw ard g ra p hic , th e re p sh ifts th e c usto m er’s p ers p ecti v e fr o m v erti c al

pro duct c ate go rie s to h o riz o nta l p urc hase te nd encie s: fr o m

what

th ey b uy to

how

th ey b uy. T hey d o

th at b y i n tr o ducin g th e i d ea o f “ p la nned ” v ers u s “ unp la nned ” p urc hase s.

The r e p e xp la in s, “ P la nned p urc hase s a re p ro ducts a nd p arts th at y o u b uy v ery fr e q uentl y , u su ally

on a r e gula r c ycle a nd b ud gete d f o r i n a d vance.

Un

pla nned p urc hase s, o n th e o th er h and , a re p ro ducts

and re p air p arts th at y o u b uy a t th e la st m in ute , u su ally in re sp onse to so m e u nfo re se en n eed o r

pro ble m .” T he d is ti n cti o n’s im porta nt, b ecause w hat c o m panie s d on’t re aliz e is h o w th e u np la nned

part o f M RO sp end — th e se em in gly o ne-o ff, in no cuo us p urc ha se s o f a n e xtr a h am mer h ere , o r a

re p la cem ent p um p th ere — can a d d u p to a h uge a m ount in a ny g iv en y ear a nd a ctu ally h av e s tr a te gic

co nse q uences fo r a c o m pany. G ra in ger h as d ete rm in ed fr o m its re se arc h th at a fu ll 4 0 p erc ent o f a

ty p ic al co m pany’s M RO sp end is fo r unp la nned purc hase s. W hen yo u ad d th at up acro ss all

cate go rie s o f M RO sp end c o m bin ed , u np la nned p urc hase sp end is b ig ger th an a ny o ne in d iv id ual

pro duct c ate go ry , r e p re se nti n g m illio ns o f d olla rs i n l a st m in ute , o ne-o ff s p end in g.

Noti c e, th e re p h asn ’t y et b uilt th e fu ll b usin ess c ase fo r w hy th e d is ti n cti o n m atte rs — th at’ s s ti ll

co m in g— but a t th is p oin t h e o r s h e h as a t l e ast p iq ued th e c usto m er’s i n te re st. T hey’re c urio us to h ear

more . A fte r a ll, y o u’v e ju st to ld th em th at th eir s e co nd b ig gest c ate go ry o f M RO s p end — unp la nned

purc hase s— is o ne th ey’v e n ev er e v en th o ught to tr a ck b efo re . N ow th ey’re w ond erin g w hat th at m ig ht

mean fo r th eir b usin ess. R em em ber, th e litm us te st fo r th e R efr a m e is s im ply to g et y o ur c usto m er to

sa y, “ H uh, I’ d n ev er r e ally th o ught a b out it th at w ay b efo re ,” a nd th is s h ift in p ers p ecti v e fr o m w hat

th ey b uy to h o w th ey b uy i s a g re at e xam ple o f h o w to d o th at w ell.

Now th e re p is re ad y to b uild a s o lid b usin ess c ase fo r w hy it m atte rs . O n to s te p 3 , R ati o nal

Dro w nin g.

Usin g d ata f r o m i ts o w n a naly sis o f s e v era l y ears ’ w orth o f c usto m er s p end d ata , G ra in ger u se s th e

next s e v era l s lid es to b uild o ut th e s to ry o f th e o fte n o verlo oked , b ut v ery re al c o st o f u np la nned

purc hase s. “ In fa ct,” th e G ra in ger r e p c o nti n ues, “ it’ s p ro bab ly w ors e th an y o u th in k. A h uge n um ber

of th e p urc hase s y o u m ake a re n’t ju st u np la nned — th ey’re in fr e q uent. M ost y o u m ake o nly o nce. Y et

each o ne r e q uir e s a d diti o nal ti m e, e ffo rt, p eo ple , a nd m oney to c o m ple te .”

This i s G ra in ger u sin g th eir e xp erti s e to te ach th e c usto m er s o m eth in g a b out th eir b usin ess. F or th e

custo m er, it’ s v alu ab le in sig ht. F or G ra in ger, it’ s a n e ffe cti v e m eans to tu rn in te re st in to a cti o n b y

build in g a ra ti o nal b usin ess c ase th at m akes th e c usto m er fe el re al d is c o m fo rt a ro und a p ro ble m

th ey’d nev er re aliz e d th ey had . If G ra in ger has a lo ng-s ta nd in g re la ti o nsh ip w ith a parti c ula r

custo m er, th e r e p w ill o fte n r e v ie w th eir p urc hase h is to ry w ith th e c o m pany to e nsu re th e s to ry is a s

co m pellin g a s p ossib le . I t’ s h ard to s a y y o u’re d iffe re nt w hen y o u’re l o okin g a t y o ur v ery o w n d ata .

So w hat’ s th e i m pact o f a ll o f th ese u np la nned p urc hase s? W ell, i t’ s p re tty d ra m ati c .

While m ost c o m panie s w ork w ith a s m all n um ber o f s u p plie rs fo r p la nned p urc hase s, th ey o fte n

hav e h und re d s o f s u p plie rs f o r u np la nned p urc hase s, b ecause e v ery i te m i s p urc hase d f r o m w hic hev er

su p plie r c an g et i t to y o u r ig ht a w ay. A nd th e c o st o f s p re ad in g 4 0 p erc ent o f y o ur M RO s p end a cro ss

th at m any d iffe re nt s u p plie rs c an b e h uge, a s th ere ’s n o l e v era ge th ere . E very i te m i s p urc hase d a t th e

la st m in ute a t f u ll r e ta il.

Even w ors e th an th e a d diti o nal

dir e ct

c o sts o f u np la nned p urc hase s, h o w ev er, a re th e u nse en b ut

dra m ati c ally h ig h

in dir e ct

c o sts .

The re al c o st o f u np la nned p urc hase s c o m es fr o m a ll o f th e n ecessa ry b ut ty p ic ally o verlo oked

pro cess c o sts a sso cia te d w ith b uyin g s o m eth in g y o u h ad n’t p la nned f o r. Y ou’v e g o t to ta ke th e ti m e to

fin d th e p art, g enera te a n in v oic e, c all th e s u p plie r, p la ce th e o rd er, in v ento ry w hate v er y o u b ought,

and th en ru n p ap erw ork a nd p aym ent o n th e p urc hase . A ll to ld , a ny s in gle u np la nned p urc hase c an

in v olv e f iv e to te n d iffe re nt p eo ple a cro ss y o ur c o m pany a nd i n cur h uge a m ounts o f u nse en c o st w hen

yo u a d d u p a ll th e ti m e, e ffo rt, p ap erw ork , a nd p eo ple n ecessa ry to b uy it. M ore o fte n th an n o t th e

very a ct o f b uyin g a n u np la nned i te m i s v astl y m ore e xp ensiv e th an th e i te m i ts e lf.

At th is p oin t, th e custo m er is lik ely b egin nin g to fe el a littl e sic k ab out all th ese unp la nned

purc hase s. T his is h ap penin g e v ery d ay in th eir o rg aniz a ti o n, a nd th ey’v e n ev er re ally th o ught o f it

th is w ay b efo re . T hey’re th in kin g, “ G re at, th at h am mer I b ought la st w eek fo r $ 17 a ctu ally c o st m e

$11 7! I f I m ulti p ly th at b y 4 0 p erc ent o f m y to ta l M RO s p end , h o w a m I e v en s ta yin g i n b usin ess? ” I t’ s

meant to b e a r e al g ut p unch— a r a ti o nal a rg um ent d esig ned to e v oke a n e m oti o nal r e acti o n.

But ju st in c ase th e c usto m er is s ti ll s k ep ti c al o f th e p ro ble m a t th is p oin t, G ra in ger tu rn s th e d ia l

one m ore ti m e. T he c o nv ers a ti o n n o w m oves to s te p 4 , E m oti o nal I m pact. N ow th ey m ake i t p ers o nal.

To e nsu re th at th e c usto m er tr u ly s e es th em se lv es in th e s to ry G ra in ger is te llin g, G ra in ger u se s a

slid e th ey lik e to c all th e “ P ain C hain ” to illu str a te h o w n early e v ery c o m pany a cts w hen s o m eth in g

im porta nt b re aks d ow n th at th ey n eed to r e p la ce i n a h urry .

Let’ s sa y th at a h ard -to -fin d c o il o n th e tw enty -y ear-o ld a ir -c o nd iti o nin g sy ste m in y o ur C EO ’s

offic e g o es o ut i n m id su m mer. W ell, i t’ s h o t, a nd i t’ s y o ur C EO , s o c le arly y o u’v e g o t to g et th e th in g

fix ed a s s o on a s p ossib le . S o w hat d o y o u d o?

The fir s t th in g y o u lik ely d o is c all o ne o f y o ur g o -to s u p plie rs fo r p la nned p urc hase s. S ure ly th ey

can h elp . B ut a fte r tw enty m in ute s o n h o ld , y o u le arn th at th ey’v e ju st s o ld o ut o f th e p art a nd w on’t

hav e a ny m ore f o r a t l e ast tw o w eeks. S o y o u tr y a no th er s u p plie r y o u’v e w ork ed w ith o nce o r tw ic e

in th e p ast, b ut th ey d on’t c arry th e p art a t a ll. A fte r tw enty m in ute s o n h o ld , a th ir d s u p plie r te lls y o u

th at a cco rd in g to th eir i n v ento ry s y ste m th ey s h o uld h av e tw o i n s to ck, b ut th ey c an’t f in d th em o n th e

sh elf b ack i n th e w are ho use . N ow y o u’re g etti n g f r u str a te d . T w o h o urs o n th e p ho ne— mostl y l is te nin g

to re ally b ad a d ult c o nte m pora ry m usic — and y o u’v e g o t n o th in g b ut b ad n ew s to re p ort to y o ur

in cre asin gly i m pati e nt— and s w eaty — CEO .

Feelin g a littl e d esp era te , y o u c all th e fo urth a nd fin al s u p plie r in th e g re ate r m etr o polita n a re a.

They’re a ll th e w ay a cro ss to w n, b ut th at c ease d to m atte r a b out n in ety m in ute s a go . G re at! T hey’v e

go t th e p art! S o y o u p ull tw o g uys o ff th e p ro ducti o n l in e, p ut th e h asti ly g enera te d p ap erw ork i n th eir

hand s, a nd s e nd th em a cro ss to w n in r u sh -h o ur tr a ffic to p ic k u p th e p art. A n h o ur a nd a h alf la te r,

when th ey g et th ere , th ey c all y o u u p a nd s a y, “ H ey, b oss, th ey’v e a ctu ally g o t th re e o f th ese th in gs.

You w ant th at w e s h o uld b uy a no th er o ne, ju st to b e s a fe ?” W ell, y o u n ev er w ant to g o th ro ugh

th is

again , s o y o u te ll th em , “ Ju st b uy a ll th re e a nd g et b ack h ere a s f a st a s y o u c an!”

You u se o ne p art to r e p air th e a ir c o nd iti o ner, a nd y o u p ut th e o th er tw o in th e b ack c o rn er o f th e

ware ho use o n a s h elf G ra in ger l ik es to c all th e “ P arts O rp hanage” w here th ey j u st s it a nd g ath er d ust.

You p ro bab ly w on’t n eed th em n ext y ear. O r th e y ear a fte r th at. A nd w hen y o u fin ally d o, th e w ho le

sy ste m i s l ik ely o bso le te a nd n eed s to b e r e p la ced a nyw ay. B ut i f y o u th in k a b out i t, n o t o nly a re th o se

parts th at y o u’ll n ev er u se , b ut m ore im porta nt, th at’ s v alu ab le c ash y o u’v e ju st ti e d u p in in v ento ry

th at y o u d on’t a ctu ally n eed , s im ply b ecause y o u n ev er w ant to h av e to g o th ro ugh th e p ain o f h av in g

to b uy th at p art a gain . A nd th at’ s c ash y o u c o uld b e u sin g fo r fa r m ore im porta nt th in gs th at y o u

actu ally

do

n eed . Dra m ati c ? Y es. B ut G ra in ger’s s to ry is c o m ple te ly b elie v ab le a nd c re d ib le . T hat’ s b ecause it’ s

base d o n r e al c usto m er b ehav io r ( th is is w here a ll th o se c usto m er in te rv ie w s r e ally p ay o ff ) . M ore

im porta nt, h o w ev er, it’ s d ra m ati c fo r a re aso n. T he sto ry is in te nti o nally d esig ned to g enera te a n

em oti o nal r e sp onse f r o m c usto m ers . T hey n eed to s e e th em se lv es i n th e p ic tu re y o u’re p ain ti n g. T hey

sh o uld fe el th e p ain a s if it w ere th eir s to ry y o u w ere te llin g. A s o ne c usto m er p ut it w hen th ey s a w

th e P ain C hain , “ W ow , y o u k no w u s to o w ell! W e p la y a s ta rrin g r o le i n th at m ovie e v ery s in gle d ay!”

And th at’ s th e p oin t. T o g et th e c usto m er to “ o w n” th e s to ry , e nsu re th at th ey s e e u np la nned p urc hase s

as a p ro ble m th at a b so lu te ly a p plie s to th em .

Now th e tr a nsiti o n i n to s te p 5 , w here G ra in ger c an p ain t th e p ic tu re o f a N ew W ay.

To g et to th e a ctu al s o lu ti o n, G ra in ger tr a nsiti o ns fr o m th e p ers o nal to th e o rg aniz a ti o nal: “ N ow ,

th at’ s th e p ro ble m w ith j u st o ne u np la nned p urc hase i n o ne c ate go ry . T he k ic ker i s , y o u d o th at a gain

and a gain a cro ss e v ery c ate go ry o f M RO s p end . S o e v en if y o u w ere a b le to g et y o ur h and s a ro und

unp la nned p urc hase s in o ne c ate go ry , th e la rg er p ro ble m is s ti ll th ere . A nd n o c o m pany is s tr u ctu re d

to e ffe cti v ely m anage th is s p end a cro ss e v ery c ate go ry .

“B ut im agin e if y o u c o uld . T he p ro ble m re p re se nts a h uge o pportu nity if y o u c an g et y o ur h and s

aro und it. U np la nned p urc hase s re p re se nt a huge am ount o f unnecessa ry sp end and unnecessa ry

in v ento ry c o sts . I t’ s m oney y o u c o uld b e s p end in g o n m ore i m porta nt th in gs. A nd th at’ s a p ro ble m th at

Gra in ger— giv en i ts s p ecific c ap ab ility s e t— is u niq uely p ositi o ned to s o lv e f o r y o u.”

At th is p oin t, th e c o nv ers a ti o n tu rn s to h o w G ra in ger c an h elp . F in ally , w e’re r e ad y to s ta rt ta lk in g

ab out G ra in ger’s s o lu ti o n. If y o u’re a n e xis ti n g c usto m er, th ey’v e g o t y o ur a ctu al d ata a nd c an s ta rt

map pin g o ut a p la n. If th ey d on’t w ork w ith yo u m uch, th ey use th is co nv ers a ti o n to su ggest a

dia gno sti c o f y o ur u np la nned p urc hase s. E ith er w ay, a ll o f th e h ard w ork th at D eb a nd th e te am d id

earlie r to m ap o ut G ra in ger’s u niq ue b enefits is n o w la id o ut, s p ecific ally in te rm s o f h o w th ey h elp

custo m ers s o lv e th e u np la nned p urc hase c halle nge th at G ra in ger h as j u st ta ught th em th ey h av e.

It’ s a n a b so lu te ly fa nta sti c e xam ple o f C om merc ia l T eachin g b ecause th e h eart a nd so ul o f th e

co nv ers a ti o n is a s e t o f in sig hts d esig ned to h elp c usto m ers o pera te m ore p ro fita b ly . T hat s a id , d id

yo u s e e w here G ra in ger a nd i ts c ap ab iliti e s f ir s t c o m e u p i n th e c o nv ers a ti o n? N ot u nti l th e v ery e nd . There ’s n o m enti o n o f G ra in ger’s c ap ab iliti e s, s to re s, W eb s ite s, h is to ry , s iz e , p ro duct c ata lo g, e tc .,

anyw here

a cro ss th e fir s t tw o-th ir d s o f th is c o nv ers a ti o n. T hat’ s b ecause th is is n ’t a sto ry a b out

Gra in ger; i t’ s a s to ry a b out th e

cu sto m er

a nd h o w th ey c an p ut m oney b ack i n to th eir o pera ti n g b ud get

th at th ey d id n’t ev en re aliz e th ey w ere w asti n g. F ro m th e custo m er’s p ers p ecti v e, th e fa ct th at

Gra in ger h as a s o lu ti o n to th e p ro ble m is m ore a h ap py c o in cid ence. F or th em , th e r e al v alu e o f th e

in te ra cti o n i s th e q uality o f G ra in ger’s i n sig ht.

Custo m ers c o m e a w ay fr o m th is c o nv ers a ti o n th in kin g v ery d iffe re ntl y n o t o nly a b out th eir M RO

sp end , b ut als o ab out th e ro le G ra in ger can p la y in sig nific antl y re d ucin g th at sp end o ver ti m e.

Gra in ger is n o lo nger th e p la ce to b uy $ 17 h am mers , b ut r a th er th e p artn er to w ork w ith in o rd er to

av oid b uyin g $ 11 7 h am mers . B y p la cin g G ra in ger’s u niq ue s tr e ngth s i n c o nte xt— at th e e nd o f a h ig hly

cre d ib le te achin g pitc h— th e co m pany co m ple te ly changes custo m ers ’ dis p ositi o n to w ard th eir

offe rin g. B ut to g et th ere , th ere h as to b e a flo w to th e p itc h, a s p ecific “ cho re o gra p hy.” A nd th at’ s

re ally th e fu nd am enta l sh ift o f C om merc ia l T eachin g. It’ s a m ove fr o m le ad in g

with

yo ur uniq ue

str e ngth s to o ne w here c are fu lly c o nstr u cte d te achin g i n te ra cti o ns v ery d elib era te ly l e ad th e c usto m er

to

y o ur u niq ue s tr e ngth s. Y our s o lu ti o n is n ’t th e s u b je ct o f y o ur te achin g b ut th e n atu ra l o utg ro w th o f

yo ur te achin g. R em em ber, f r o m th e c usto m er’s p ers p ecti v e, th e r e al v alu e o f th e i n te ra cti o n i s n ’t w hat

yo u s e ll, i t’ s th e q uality o f th e i n sig ht y o u p ro vid e a s p art o f th e s a le s i n te ra cti o n i ts e lf. CO M MER CIA L T EA C H IN G C ASE S T U DY # 2: A D P D EA LER S E R VIC ES’

PR O FIT C LIN IC S E M IN AR S

ADP D eale r S erv ic es, a d iv is io n o f A uto m ati c D ata P ro cessin g, i s a l e ad in g p ro vid er o f e nte rp ris e

s o ftw are to car, tr u ck, and oth er kin d s of vehic le deale rs h ip s aro und th e w orld . W hen K ev in

H end ric k, th en th e h ead o f s a le s fo r A DP, fir s t s a w o ur w ork o n C om merc ia l T eachin g in 2 008, th e

c o m pany w as f a cin g a r e al p ro ble m . W hile th e e co no m y w as s ti ll i n r e la ti v ely s tr o ng s h ap e, th e te am

a t D eale r S erv ic es w as a lr e ad y tr a ckin g a n um ber o f e arly w arn in g s ig ns in th e a uto m oti v e in d ustr y

t h at d id n’t b ode w ell fo r th e n ear fu tu re . N ot o nly h ad r e ta il c ar s a le s d eclin ed s te ad ily fo r th e la st

t h re e y ears , b ut m ore tr o ub lin g, th e U .S . c ar in d ustr y w as fa cin g a sig nific ant o verp opula ti o n o f

d eale rs h ip s, th e n um ber o f w hic h, i n r e sp onse to s h rin kin g d em and , w as n o w d ra m ati c ally d eclin in g.

U lti m ate ly , a cro ss th e th re e y ears f r o m 2 007 to 2 010 th e n um ber o f n ew a nd u se d a uto d eale rs h ip s i n

t h e U .S . d ecre ase d f r o m 2 1,2 00 to 1 8,4 60. N ow , i f y o u’re a p ro vid er o f e nte rp ris e s o ftw are s o lu ti o ns

t o a uto d eale rs h ip s, th in k fo r a m in ute a b out w hat th o se n um bers m ean. In th e c o urs e o f ju st a fe w

s h o rt y ears , th e c o m pany w as fa cin g a 1 5 p erc ent d eclin e o f its to ta l a d dre ssa b le m ark et in a k ey

m ark et s e gm ent a s p ote nti a l c usto m ers s im ply v anis h ed .

Tougher s ti ll, a s p art o f a p ub lic ly tr a d ed c o m pany, A DP D eale r S erv ic es w as n atu ra lly l o okin g to

p ost s tr o ng o rg anic g ro w th o ver th at s a m e p erio d. B ut h o w i n th e w orld d o y o u g ro w a c o m pany i n a

d eclin in g m ark et? T hat’ s in cre d ib ly diffic ult. R eally , yo u hav e only one cho ic e: A ggre ssiv ely

i n cre ase m ark et s h are w hile v ig o ro usly p re v enti n g c usto m er d efe cti o n. In th is w orld , if y o u’re g o in g

t o w in n ew b usin ess, y o u’re g o in g to h av e to ta ke i t a w ay f r o m s o m eo ne e ls e .

But th at w asn ’t g o in g to b e e asy. W hile d is lo dgin g a n i n cum bent s u p plie r i s a lw ays a c halle nge, th e

c o m pany w as sim ulta neo usly battl in g a ris e in sm all co m peti to rs , each co m peti n g aggre ssiv ely

a gain st o nly a sp ecific p ie ce o f D eale r S erv ic es’ b ro ad er cap ab ility se t. A s an in d ustr y -le ad in g

s u p plie r, A DP o ffe re d a u niq ue v alu e p ro positi o n e nco m passin g te chno lo gy s o lu ti o ns f o r e v ery a sp ect

o f a n a uto m oti v e d eale rs h ip , in clu d in g d ig ita l m ark eti n g, v ehic le s a le s, s e rv ic e s a le s, a nd e v en p arts

s o lu ti o ns. S m all c o m peti to rs , o n th e o th er h and , fo cuse d o n o nly o ne p ie ce o f th at p uzzle , s u ch a s

s o ftw are d esig ned to r u n ju st th e s e rv ic e c ente r, o r ju st th e s a le s o ffic e. T hese v end ors a p pro ached

c usto m ers w ith a v ery d iffe re nt k in d o f m essa ge, e m phasiz in g v ast p ote nti a l s a v in gs b y b uyin g “ o nly

t h e s o ftw are y o u m ost u rg entl y n eed .” A nd a s y o u m ig ht im agin e, in a w orld o f c o ncern ed c usto m ers

l o okin g to s u rv iv e, th at m essa ge w as r e so nati n g s tr o ngly .

Put it a ll to geth er a nd A DP D eale r S erv ic es w as lo okin g a t a p ote nti a lly p ain fu l y ear. O n th e o ne

h and , th ey w ere l o sin g m arg in to c usto m ers i n cre asin gly f o cuse d o n c o st c o nta in m ent a s th eir i n d ustr y

i m plo ded aro und th em . O n th e o th er, th ey w ere lo sin g sa le s to up sta rt co m peti to rs aggre ssiv ely

p la yin g o n th o se fe ars to d riv e c usto m ers in to p ric e-b ase d , tr a nsa cti o nal sa le s o f str ip ped -d ow n,

s ta nd -a lo ne p ro ducts . Y et th e tr u e ir o ny o f th e s itu ati o n w as th e fa ct th at th e v ery h eart a nd s o ul o f

D eale r S erv ic es’ v alu e p ro positi o n w as th eir u niq ue a b ility to h elp d eale rs r e d uce c o st. A nd i f th ere

w as e v er a ti m e w hen th is m essa ge s h o uld r e so nate , o ne w ould th in k th at th is w ould h av e b een i t. B ut

t h at d id n’t h ap pen. C usto m ers sim ply c o uld n’t se e p ast th e to ta l p ric e ta g. D eale r S erv ic es re p s

w ould go in to a sa le s call le ad in g w ith all o f A DP’s uniq ue and p ow erfu l cap ab iliti e s to sa v e

c usto m ers m oney, a nd th e d eale rs w ould r e sp ond , “ T hat’ s g re at, b ut I ’ v e g o t a no th er g uy th at s a ys h e

c an d o ju st th e p art I n eed rig ht n o w fo r a

lo t

le ss. I’ d lik e to w ork w ith y o u g uys, b ut o nly if y o u

t h ro w a ll th is o th er s tu ff o ut a nd k no ck 3 0 p erc ent o ff th e p ric e o f w hat’ s l e ft.” P ain fu l. It’ s n o w ond er, th en, th at w hen K ev in s a w th e w ork o n C om merc ia l T eachin g h e h ad a b it o f a

“lig htb ulb m om ent.” H e r e aliz e d th at a l a rg e p art o f th e p ro ble m w as th at A DP D eale r S erv ic es r e p s

were “le ad in g w ith ,” no t “le ad in g to .” If D eale r S erv ic es w as go in g to get custo m ers to th in k

diffe re ntl y a b out its b ro ad er s o lu ti o n, th e c o m pany fir s t h ad to g et d eale rs to th in k d iffe re ntl y a b out

th e co sts asso cia te d w ith th eir so ftw are cho ic es. Because A DP knew so m eth in g ab out th e

im plic ati o ns o f th o se c ho ic es th at c usto m ers th em se lv es d id n’t y et re aliz e : In th eir e ffo rts to s a v e

money, a ll o f th eir in v estm ents in o ne-o ff s o ftw are s y ste m s fo r in d iv id ual p arts o f th e b usin ess w ere

causin g th em h uge o pera ti o nal in effic ie ncy a nd re d und ancy th at w as u lti m ate ly c o sti n g th em m oney,

no t s a v in g i t.

With th at in sig ht in m in d , D eale r S erv ic es s e t o ut to b uild a c o m pre hensiv e C om merc ia l T eachin g

cap ab ility , s p annin g tw o k ey i n iti a ti v es.

The fir s t w as to b uild a b ette r s to ry . W hile th e c o m pany h ad a c le ar u nd ers ta nd in g o f th e u niq ue

benefits th at s e t th eir s o lu ti o n a p art, th ey n eed ed m essa gin g l e ad in g

to

th o se b enefits , r a th er th an

with

th em . S o th e c o m pany’s s a le s o pera ti o ns a nd m ark eti n g te am s d esig ned a p ow erfu l s to ry c alle d “ T ota l

Deale r S pend ,” fe atu rin g a data -b ase d analy sis of th e su rp ris in gly co stl y but hid den im pact of

in effic ie nt IT s y ste m s o n o vera ll d eale rs h ip p ro fita b ility . O n a v era ge, th ey fo und , d eale rs h ip s w ork

with tw elv e d iffe re nt v end ors , re su lti n g in u p to 4 0 p erc ent re d und ant c o sts — co sts A DP D eale r

Serv ic es c o uld e lim in ate th ro ugh th eir s in gle -s u p plie r s o lu ti o n. N ot s u rp ris in gly , lik e th e G ra in ger

sto ry , th e c entr a l g o al o f D eale r S erv ic es’ a p pro ach w as to e v oke a n e m oti o nal a s w ell a s a r a ti o nal

re sp onse . D eale rs w ere s u rp ris e d — and o fte n d eep ly tr o ub le d — to l e arn th at th ey w ere u nnecessa rily

sp end in g h uge a m ounts o f m oney a t a ti m e w hen th ey c o uld l e ast a ffo rd to d o s o .

ADP’s s e co nd k ey in iti a ti v e w as to b uild a s e rie s o f c usto m er s e m in ars — calle d P ro fit C lin ic s—

desig ned to p ro vid e d eale rs w ith i n -p ers o n i n sig hts i n to h o w to r u n th eir c o m panie s m ore p ro fita b ly .

The c lin ic s a re e xactl y w hat th ey s o und lik e— fr e e s e m in ars o ffe re d b y D eale r S erv ic es s p ecific ally

desig ned to help custo m ers asse ss th e co sts of in effic ie nt and dup lic ati v e w ork cre ate d by

overla p pin g I T s y ste m s. T he f o cus i s s q uare ly o n th e i n sig ht.

Of co urs e , as yo u m ig ht im agin e, th e se m in ars are als o co nstr u cte d to fo llo w a C om merc ia l

Teachin g c ho re o gra p hy. T he o ne th in g A DP D eale r S erv ic es d oes

not

ta lk a b out fo r th e fir s t tw o-

th ir d s o f th e s e m in ar i s A DP D eale r S erv ic es. I t’ s n o t a b out th e s u p plie r, i t’ s a b out th e c usto m er. J u st

lik e G ra in ger, a fte r a W arm er, th ere ’s th e R efr a m e (i.e ., “ T he s o ftw are d ecis io ns y o u’re m akin g in

ord er to s a v e m oney a re a ctu ally c o sti n g y o u m oney”), th en th e R ati o nal D ro w nin g a nd E m oti o nal

Im pact a s th e c o m pany l a ys o ut h o w d is jo in te d s y ste m s c re ate a ll s o rts o f h id den c o sts d eale rs n ev er

re aliz e d th ey h ad . U lti m ate ly th is le ad s to a p ortr a it o f a w orld -c la ss s o lu ti o n a nd a r e v ie w o f h o w

Deale r S erv ic es’ u niq ue c ap ab iliti e s c an p ro vid e th at s o lu ti o n b ette r th an a nyo ne e ls e . It’ s a c la ssic

case o f l e ad in g to , n o t w ith .

Deale rs lo ve th e se m in ars b ecause th ey d eliv er e xactl y w hat’ s a d verti s e d : a cti o nab le , v alu ab le

in sig ht th at th ey c an i m med ia te ly e m plo y to s a v e m oney, i n clu d in g a s e t o f s p ecific s ig ns to w atc h o ut

fo r to te ll w hen m oney i s b ein g w aste d i n th eir o rg aniz a ti o n. F ro m th e c usto m er’s p ers p ecti v e, th e f a ct

th at A DP D eale r S erv ic es h ap pens to h av e a s o lu ti o n a v aila b le to h elp m ake g o od o n th e p ro m is e o f

th at i n sig ht i s a lm ost m ore o f a h ap py c o in cid ence. T his k in d o f s u p port i s n o t o nly h ugely v alu ab le to

custo m ers , i t’ s h ugely a p pre cia te d . I t m akes th e s e m in ar m em ora b le a nd s ig nific antl y s e ts A DP D eale r

Serv ic es a p art f r o m th e c o m peti ti o n i n th e m in d s o f i ts c usto m ers .

And th e r e su lts o f th at k in d o f d iffe re nti a ti o n th ro ugh C om merc ia l T eachin g h av e b een s ta ggerin g. I n

a y ear w hen n ew c ar s a le s in th e U .S . w ere d ow n 4 0 p erc ent, A DP D eale r S erv ic es’ re v enue w as

dow n o nly 4 p erc ent. D id th ey h it th eir g ro w th g o als ? W ell, i n a w ay, y es, g iv en w hat h ap pened to th e auto in d ustr y a cro ss th o se th re e y ears . B ut m ore im porta nt, a t a ti m e w hen th e o nly p ossib le p ath to

gro w th w as to i n cre ase o ne’s p ie ce o f th e e v er-s h rin kin g p ie , D eale r S erv ic es d id th at a nd th en s o m e.

But j u st a s i m porta nt, th ey w on th e b attl e n o t o nly o f m ark et s h are b ut o f “ m in d s h are ,” s ig nific antl y

re in fo rc in g th eir r o le i n th e i n d ustr y a s th e b est s o urc e f o r q uality , m ark et- le ad in g i n sig ht. A ll b ecause

th ey s h ifte d fr o m ta lk in g to c usto m ers a b out A DP D eale r S erv ic es’ b usin ess to ta lk in g to c usto m ers

ab out

th eir

b usin ess. M ore r e centl y , T here sa R usse l, h ead o f D eale r S erv ic es’ s a le s o pera ti o ns, to ld

us, “E ven w ith th e im pro vem ent in sa le s th ro ugho ut th e auto m oti v e re ta il in d ustr y of la te , th e

in fo rm ati o n w e p ro vid e in th ese s e m in ars c o nti n ues to r e so nate . W heth er d eale rs n eed to s u rv iv e o r

—bette r s ti ll— gro w th eir b usin ess, th ey a re s ti ll lo okin g fo r in te re sti n g w ays to b ette r m anage th eir

busin esse s, a nd th at’ s e xactl y w hat th e s e m in ars p ro vid e.”

It’ s a fa nta sti c e xam ple o f C om merc ia l T eachin g: T he sin gle b ig gest in cre m enta l o pportu nity to

driv e g ro w th i s n ’t i n th e p ro ducts a nd s e rv ic es y o u s e ll, b ut i n th e q uality o f th e i n sig ht y o u d eliv er a s

part o f th e s a le i ts e lf. 6

TA IL O RIN G F O R R ESO NANCE

W HY D O ES T H IS

id ea o f ta ilo rin g sh o w u p in th e d ata a s o ne o f th e d efin in g a ttr ib ute s o f th e

C halle nger r e p ? W e b elie v e th is h as to d o w ith th e i n cre ase i n c o nse nsu s b uyin g ( i.e ., th e n eed to h av e

t h e b ro ad er o rg aniz a ti o n o n b oard b efo re m ovin g a head w ith a p urc hase ) th at’ s a ris e n a s a r e acti o n to

t h e p ush to s e ll m ore c o m ple x s o lu ti o ns to c usto m ers . T he d ata b ears th is o ut a nd s u ggests th at th is

i s n ’t j u st r e p s c o m pla in in g, i t’ s th e n ew r e ality o f s o lu ti o n s e llin g. Y es, th e r e cent f in ancia l c ris is a nd

e co no m ic d ow ntu rn e xacerb ate d c usto m er r is k a v ers io n, b ut th e i n cre ase i n c o nse nsu s r e q uir e m ents i s

a tr e nd w e w ere tr a ckin g l o ng b efo re th e d ow ntu rn . WHAT D EC IS IO N M AK ER S R EA LLY W AN T

E arlie r w e d is c usse d th e fin d in gs fr o m o ur c usto m er lo yalty s u rv ey— sp ecific ally , th at 5 3 p erc ent o f

B 2B c usto m er l o yalty i s a p ro duct o f h o w y o u s e ll, n o t w hat y o u s e ll. O ne o f th e f a sc in ati n g th in gs w e

w ere a b le to d o in th at s u rv ey w as to s p lit o ut d ecis io n m akers fr o m in flu encers a nd e nd u se rs in

o rd er to u nd ers ta nd w hat m akes th ese tw o d iffe re nt ty p es o f s ta keho ld ers l o yal to a c erta in s u p plie r.

Let’ s lo ok fir s t a t d ecis io n m akers — defin ed in o ur stu d y a s th e p eo ple w ho a ctu ally sig n th e

a gre em ent. T hese in d iv id uals genera lly fa ll in to one of tw o cate go rie s: se nio r executi v es or

p ro cure m ent. S o w hat r e ally m atte rs to th ese s e nio r b uyers ?

When w e is o la te d ecis io n m akers fr o m th e r e st o f th e s a m ple , a nd th en c o m pare th e im pact o f th e

o vera ll s a le s e xp erie nce w ith th at o f th e in d iv id ual r e p s e llin g in to th e a cco unt, w hat w e fin d is th at

f o r decis io n m akers , asp ects of th e overa ll sa le s exp erie nce are

nea rly tw ic e

as im porta nt as

i n d iv id ual r e p a ttr ib ute s. D ecis io n m akers th in k o f th em se lv es a s b uyin g f r o m o rg aniz a ti o ns, n o t f r o m

i n d iv id uals . S o w hat d oes th at m ean f o r y o ur s a le s o rg aniz a ti o n?

S ourc e: S ale s E xecuti v e C ouncil r e se arc h.

Fig ure 6 .1 .

S ale s E xp erie nce D riv ers o f C usto m er L oyalty f o r D ecis io n M akers ( In d exed )

Of a ll th e th in gs th at d ecis io n m akers c are a b out, to ppin g th e lis t in fig ure 6 .1 is “ w id esp re ad

s u p port fo r th e su p plie r a cro ss m y o rg aniz a ti o n.” O ne w ay to th in k o f th at is th at se nio r d ecis io n

m akers s im ply a re n’t w illin g to g o o ut o n a lim b fo r a s u p plie r o n a b ig p urc hase — at le ast n o t o n

t h eir o w n.

At th e s a m e ti m e, w e fo und th at d ecis io n m akers d on’t w ant y o u to w aste th eir ti m e, e ith er. T hey

w ant s u p plie rs to b e a ccessib le , e asy to b uy fr o m , a nd w illin g to c o lla b ora te w ith o th er s u p plie rs

w hen n ecessa ry .

Fin ally , w hile w e m ig ht h av e a ssu m ed th at th in gs l ik e p ric e a nd w illin gness to c usto m iz e w ould to p

t h e l is t f o r d ecis io n m akers , th ey’re s ig nific antl y l e ss i m porta nt th an w id esp re ad s u p port a nd e ase o f

d oin g b usin ess. That’ s a h ugely im porta nt fin d in g a nd flie s in th e fa ce o f m ost s a le s tr a in in g th at e m phasiz e s th e

need to id enti fy a nd e ngage th e C -le v el b uyer. Y our r e p s s p end s o m uch ti m e a nd e ffo rt tr y in g to g o

dir e ctl y to th e s e nio r d ecis io n m aker, th in kin g, “ If w e c an j u st g et i n th at d oor, th at’ s g o in g to h elp u s

clo se th e d eal.” B ut th e b est p ath to th e d ecis io n m aker is n ’t d ir e ctl y th ro ugh th at d oor a t a ll. It tu rn s

out i t’ s a n

in dir e ct

p ath th at a r e p n eed s to ta ke to e arn th at d ecis io n m aker’s s u p port, o ne th at l a ys th e

gro und w ork w ith th e custo m er’s te am — id enti fy in g, nurtu rin g, and enco ura gin g key custo m er

sta keho ld ers a cro ss th e o rg aniz a ti o n.

When i t d oes c o m e ti m e to d ecid e, th e d ecis io n m aker w ants to k no w h e’s g o t th e s tr o ng b ackin g o f

his te am . In o th er w ord s, th e c o nse nsu s s a le is n ’t s o m eth in g y o u s h o uld b e fig hti n g— it’ s s o m eth in g

yo u s h o uld b e a cti v ely

pursu in g

. Y ou c an’t ju st e le v ate th e c o nv ers a ti o n a nd c ut e v ery o ne e ls e o ut

because i t’ s e xactl y th at te am i n p ut th at th e d ecis io n m aker v alu es m ost w hen i t c o m es to l o yalty .

One fin al p oin t: W hen w e b ro ke o ut se nio r executi v es and co m pare d th em sid e b y sid e w ith

pro cure m ent f o r w hat m akes th em l o yal, w e f o und a lm ost n o d iffe re nce b etw een th e tw o g ro up s. N ot

su rp ris in gly , s e nio r e xecs p la ce h ig her v alu e o n r e p k no w le d ge, a nd p ro cure m ent p la ces g re ate r v alu e

on re p s’ no t overs ta ti n g th e valu e of th eir pro duct, but th at’ s ab out it. B oth gro up s prio riti z e

wid esp re ad s u p port a nd e ase o f u se a b ove a ny s ig nific ant d iffe re nces.

If lo yalty a t th e s e nio r le v el is a ll a b out w in nin g w id esp re ad s u p port fr o m th e te am , th en y o u’re

go in g to n eed to u nd ers ta nd h o w to g enera te th at w id esp re ad s u p port. Y ou n eed to k no w w hat d riv es

lo yalty f o r th e te am , n o t j u st s e nio rm ost d ecis io n m akers . TH E K EY T O G EN ER AT IN G “ W ID ESP R EA D S U PPO RT”

J u st a s w e d id w ith d ecis io n m akers , w e c an lo ok a t w hat it is th at d riv es lo yalty fo r e nd u se rs a nd

i n flu encers — th o se i n d iv id uals w ho p la y a k ey r o le i n a p urc hase b ut d on’t u lti m ate ly s ig n th e c heck.

M anaged w ell, th ese i n d iv id uals a re p ow erfu lly p ositi o ned to a d vocate o n y o ur b ehalf.

Fir s t, w hen w e is o la te in flu encers a nd e nd u se rs fr o m th e la rg er s a m ple , a nd c o m pare th e im pact

o n th eir l o yalty o f th e o vera ll s a le s e xp erie nce v ers u s th at o f th e i n d iv id ual r e p , w hat w e f in d i s th at

— unlik e d ecis io n m akers — th ese i n flu encers p la ce

much

m ore e m phasis o n th e i n d iv id ual r e p s e llin g

t o th em . E nd u se rs d on’t th in k o f th em se lv es a s b uyin g fr o m o rg aniz a ti o ns; th ey b uy fr o m p eo ple . S o

w hat i s i t a b out th e p eo ple th ey i n te ra ct w ith th at m akes th em m ore l ik ely to b e l o yal?

S ourc e: S ale s E xecuti v e C ouncil r e se arc h.

Fig ure 6 .2 .

D riv ers o f S ale s R ep re se nta ti v e L oyalty f o r I n flu encers a nd E nd U se rs ( In d exed )

As y o u l o ok a t f ig ure 6 .2 , y o u’ll n o ti c e th at th e b ig gest d riv er o f e nd -u se r a nd i n flu encer l o yalty i s

t h e re p ’s pro fe ssio nalis m . M ost lik ely , th is is th e le gacy of years of re p s overp ro m is in g and

u nd erd eliv erin g. Y ou r e m em ber th e in cre ase d c usto m er s k ep ti c is m w e ta lk ed a b out e arlie r? T his is

w here it’ s g o tte n y o u. C usto m ers a re s im ply lo okin g fo r a p ro fe ssio nal— so m eo ne th ey c an b elie v e,

a nd s o m eo ne th ey c an tr u st. A s o ne m em ber p ut i t, “ W e w ant o ur c usto m ers to th in k o f o ur r e p s a s a n

e xte nsio n o f th eir o w n o rg aniz a ti o n . . . to v ie w th em a s a r e so urc e a nd n o t j u st a n uis a nce.” W e r e ally

t h in k i t’ s th at k in d o f p ro fe ssio nalis m th at c usto m ers a re th in kin g a b out h ere .

But th e b ig ger s to ry lie s in th e n ext s e t o f d riv ers w e fo und , r ig ht b ehin d p ro fe ssio nalis m in th eir

p re d ic ti v e p ow er: th e a b ility o f th e r e p to “ o ffe r u niq ue a nd v alu ab le p ers p ecti v es” a nd “ fr e q uentl y

e d ucate th e c usto m er o n is su es a nd o utc o m es.” In o th er w ord s, w hat y o u fin d is a w ho le s e t o f h ig h-

s c o rin g lo yalty d riv ers a ro und th e re p ’s a b ility to h elp n o n– decis io n m akers re co gniz e p re v io usly

u nd era p pre cia te d o r u nd erv alu ed n eed s.

Contr a ry to c o nv enti o nal w is d om , m ore tr a d iti o nal se llin g sk ills lik e n eed s a naly sis a re m uch fa rth er d ow n th e lis t w hen it co m es to d riv in g end -u se r and in flu encer lo yalty . S o w hile sa le s

org aniz a ti o ns co nti n ue to pour ti m e and m oney in to help in g re p s to ask bette r, m ore in cis iv e

questi o ns, th ese s k ills p ro ve to b e

much

m ore w eakly a sso cia te d w ith lo yalty , a s c usto m ers a re n’t

lo okin g fo r r e p s to a nti c ip ate , o r “ d is c o ver,” n eed s th ey a lr e ad y k no w th ey h av e, b ut r a th er to

te a ch

th em a b out o pportu niti e s to m ake o r s a v e m oney th at th ey d id n’t e v en k no w w ere p ossib le .

What th e d ata te lls u s i s th at f o r n o n– decis io n m akers , l o yalty i s

much l e ss

a b out d is c o verin g n eed s

th ey a lr e ad y k no w , a nd m uch m ore a b out te achin g th em so m eth in g th ey d on’t k no w , fo r e xam ple ,

so m eth in g n ew a b out h o w to c o m pete m ore e ffe cti v ely i n th eir w orld . C usto m ers w ill r e p ay y o u w ith

lo yalty w hen y o u te ach th em s o m eth in g th ey v alu e, n o t j u st s e ll th em s o m eth in g th ey n eed . R em em ber,

it’ s no t ju st th e p ro ducts and se rv ic es yo u se ll, it’ s th e in sig ht yo u d eliv er as p art o f th e sa le s

in te ra cti o n i ts e lf.

When y o u th in k a b out it, th ese fin d in gs p ro vid e a v ery c le ar r o ad m ap fo r tu rn in g in flu encers a nd

end u se rs in to a ctu al a d vocate s fo r y o ur o rg aniz a ti o n. T his is h o w y o u b uild th e w id esp re ad s u p port

th at d ecis io n m akers a re l o okin g f o r— by te achin g e nd u se rs s o m eth in g o f v alu e.

Yet w hile a te achin g ap pro ach pre se nts a huge unta p ped opportu nity fo r m anagin g custo m er

sta keho ld ers m ore s tr a te gic ally th an y o u h av e i n th e p ast,

nea rly tw o-th ir d s

o f s u p plie rs r e p ort u sin g

custo m er s ta keho ld er i n te ra cti o ns to e xtr a ct i n sig ht, r a th er th an p ro vid e i t. A s y o u m ig ht h av e g uesse d ,

most r e p s s p end th eir ti m e m in in g i n flu encers f o r m ore i n fo rm ati o n o n d ecis io n-m akin g p ro cesse s a nd

prio riti e s, ra th er th an e m pow erin g th eir p ote nti a l sta keho ld ers w ith v alu ab le in sig ht th ey c an ta ke

back to th eir o rg aniz a ti o ns.

In fa ct, a sk y o urs e lf th is : H ow d oes

yo ur

sa le s o rg aniz a ti o n c urre ntl y m anage sta keho ld ers a nd

in flu encers ? H ow l ik ely i s i t th at th ese i n flu encers w ould f in d i n te ra cti o ns w ith y o ur s a le s r e p s to b e

valu ab le a nd m em ora b le ? W ould th ey u se w ord s lik e “ in te re sti n g,” “ new ,” “ th o ught- p ro vokin g,” o r

“gam e-c hangin g” to d esc rib e th eir c o nv ers a ti o ns w ith y o ur s a le sp eo ple ? D o y o ur r e p s d eliv er v alu e

in e v ery i n te ra cti o n? I f y o u’re a nyth in g l ik e m ost s a le s o rg aniz a ti o ns, th e a nsw er i s p ro bab ly n o .

Lest w e le av e yo u w ith th e im pre ssio n th at in sig ht is so m eth in g only valu ed by custo m er

sta keho ld ers , i t i s w orth n o ti n g th at th is s tr a te gy i s n ’t l o st o n e xecuti v e-le v el d ecis io n m akers e ith er.

Yes, th ese s e nio r b uyers c are m ost a b out w id esp re ad s u p port, b ut a s b usin ess l e ad ers , th ey a re j u st

as in te re ste d in n ew id eas to s a v e m oney o r m ake m oney a s th eir te am s a re . F ig ure 6 .3 s h o w s th e

overla p in lo yalty driv ers betw een decis io n m akers and end use rs . It tu rn s out th at a te achin g

ap pro ach is an opportu nity th at se rv es a sa le s org aniz a ti o n w ell re gard le ss of w ho m re p s are

engagin g w ith .

Senio r d ecis io n m akers d on’t w ant th eir o w n ti m e w aste d n o r d o th ey w ant s a le sp eo ple to w aste

th e ti m e o f o th ers in th e o rg aniz a ti o n— th ey w ant w id esp re ad s u p port b efo re p ullin g th e tr ig ger o n a

purc hase , b ut th ey w on’t le t a re p g o o ut to b uild th at su p port if th e re p d oesn ’t h av e so m eth in g

co m pellin g to s h are . S im ila rly , in s a le s e ffo rts th at s ta rt fa rth er d ow n in th e o rg aniz a ti o n— with th e

end u se rs th em se lv es— th ese i n d iv id uals a re h ig hly u nlik ely to g ra nt y o u a ccess to th eir b osse s u nle ss

th ey a re s u p re m ely c o nfid ent th at y o u w ill a d d v alu e o nce y o u s it d ow n w ith th em .

Sourc e: M ark eti n g L ead ers h ip C ouncil r e se arc h: S ale s E xecuti v e C ouncil r e se arc h.

Fig ure 6 .3 .

P urc hase E xp erie nce L oyalty D riv ers f o r D ecis io n M akers V ers u s E nd U se rs a nd

In flu encers TH E N EW P H YSIC S O F S A LES

W hen y o u p ut a ll th is d ata to geth er, it h as fa r-re achin g c o nse q uences fo r s a le s e ffe cti v eness. O ne o f

t h e c o nv enti o nal s tr a te gie s f o r b uild in g l o yalty i s to e le v ate th e c o nv ers a ti o n to th e C -s u ite . B ut o f a ll

t h e th in gs th at d ecis io n m akers c o uld c are a b out w hen it c o m es to d oin g b usin ess w ith a p arti c ula r

s u p plie r, th e m ost im porta nt th in g, a s y o u n o w k no w , is th at th e s u p plie r h as “ w id esp re ad s u p port

a cro ss th e o rg aniz a ti o n.”

You c an s e e im plic ati o ns o f th at fin d in g m ap ped o ut d ra m ati c ally in fig ure 6 .4 ( p age 1 08). In th e

t r a d iti o nal a p pro ach, r e p s p ull in fo rm ati o n fr o m c usto m er s ta keho ld ers in o rd er to p re se nt th e s e nio r

d ecis io n m aker w ith a m ore f in ely tu ned p itc h. T he l in k b etw een s ta keho ld ers a nd d ecis io n m akers i s

p erc eiv ed a s r e la ti v ely w eak, c o m pare d w ith th e r e la ti o nsh ip th e r e p c an e sta b lis h d ir e ctl y w ith th e

d ecis io n m aker, s o i n fo rm ati o n l a rg ely f lo w s c lo ckw is e f r o m a d vocate to r e p to d ecis io n m aker.

Sourc e :

S ale s E xecuti v e C ouncil r e se arc h

Fig ure 6 .4 .

T he N ew P hysic s o f S ale s

The e m erg in g m odel, h o w ev er, flo w s in th e o pposite d ir e cti o n: T he b est w ay y o u s e ll m ore s tu ff

over ti m e is n ’t b y g o in g d ir e ctl y to th e p ers o n w ho s ig ns th e d eal, b ut b y a p pro achin g h im o r h er

in dir e ctly

th ro ugh s ta keho ld ers a b le to e sta b lis h m ore w id esp re ad s u p port f o r y o ur s o lu ti o n. T he l in k

betw een s ta keho ld ers a nd th e d ecis io n m aker is s ig nific antl y s tr o nger, w here as th e lin k b etw een th e

re p a nd th e d ecis io n m aker is sig nific antl y w eaker— th e re p ’s a b ility to in flu ence th e sa le in th e

executi v e s u ite i s n o w here n ear a s s tr o ng a s s ta keho ld ers ’ a b ility to d o th e s a m e th in g.

How ev er, ju st a s im porta nt a s th e

dir e ctio n

o f th e in fo rm ati o n flo w is th e

natu re

o f th e a ctu al

in fo rm ati o n flo w in g th ro ugh th em . In th e tr a d iti o nal m odel, it’ s custo m er-g enera te d in te llig ence

valu ab le to th e su p plie r. In th e em erg in g m odel, it’ s su p plie r-g enera te d in sig ht valu ab le to th e

custo m er. T his is th e n ew p hysic s o f s a le s— it’ s lik e th e w ho le w orld is s p in nin g in th e o pposite

dir e cti o n. A nd th is s h ift b egs a n im porta nt q uesti o n. O ver th e la st s e v era l y ears , h o w w ell h av e y o u bala nced th e ti m e, e ffo rt, a nd m oney y o u’v e in v este d in g ain in g a ccess to th e c usto m er’s e xecuti v e

offic e w ith c o m para b le e ffo rts to id enti fy k ey sta keho ld ers a nd e q uip th em to e v angeliz e o n y o ur

behalf? F or m ost o rg aniz a ti o ns, th at’ s a h uge m is se d o pportu nity . W hile y o u s h o uld n’t s to p c allin g o n

decis io n m akers , y o u n o w k no w th at th o se e ffo rts d o n o t n egate th e h uge i m pact k ey s ta keho ld ers c an

hav e on driv in g m ore busin ess over ti m e. A nd th is is so m eth in g yo ur best sa le s re p s, yo ur

Challe ngers , d o a s a m atte r o f c o urs e . TA IL O RIN G T H E M ESSA G E

F ro m a p ra cti c al s ta nd poin t, w hat a ll o f th is m eans i s th at y o ur r e p s n o w h av e to ta lk to m ore p eo ple

t h an e v er j u st to g et th e d eal d one. A nd w e h av e f o und th at o ne o f th e b ig gest o bsta cle s th at c o re r e p s

g ra p ple w ith w hen it c o m es to d ealin g w ith a c o nse nsu s-b ase d b uyin g e nv ir o nm ent is h o w to ta ilo r

t h e s a le s m essa ge to th ese d iffe re nt s ta keho ld ers i n o rd er to a chie v e m axim um r e so nance.

For in d iv id ual c usto m ers , ta ilo rin g ta kes o n m any fo rm s. A g o od w ay to th in k a b out h o w to ta ilo r

m essa ges is to s ta rt a t th e b ro ad est le v el— th e c usto m er’s in d ustr y — and to w ork y o ur w ay d ow n, to

t h e p ers o n’s c o m pany, th e p ers o n’s r o le , a nd , f in ally , to th at i n d iv id ual p ers o n. F ig ure 6 .5 , w hic h o ur

S E C S olu ti o ns g ro up u se s i n i ts C halle nger D ev elo pm ent P ro gra m , s h o w s th ese p ro gre ssiv e “ la yers ”

o f ta ilo rin g:

S ourc e: S E C S olu ti o ns, S ale s E xecuti v e C ouncil r e se arc h.

Fig ure 6 .5 .

L ayers o f T ailo rin g

As y o u l o ok a t th at d ia gra m , th in k a b out h o w w ell y o ur c urre nt s a le s a p pro ach r e so nate s a t e ach o f

t h ese le v els fo r e ach o f th e m any d iv ers e c usto m er s ta keho ld ers y o ur r e p s n o w n eed to c o nta ct. T he

v ast m ajo rity o f s a le s m essa gin g o ut i n th e m ark et i s n o t c o nte xtu aliz e d a t

any

le v el le t a lo ne a t e ach

o f th ese le v els fo r e ach k in d o f s ta keho ld er. T yp ic ally , th at m essa gin g is a b out a s u p plie r a nd th at

s u p plie r’s p ro duct a nd s e rv ic es.

So a s a s ta rti n g p oin t, m ark eti n g c an a d d a tr e m end ous a m ount o f v alu e s im ply b y h elp in g s a le s

r e p s to ta ilo r a t th e in d ustr y a nd c o m pany le v els . T here a re s o m any s o urc es o f in fo rm ati o n— and

m any o f th em fr e e— th at c an a id a re p in o ffe rin g, a t th e v ery le ast, so m e in d ustr y a nd c o m pany

c o nte xt to th e s a le s p itc h. W hat’ s g o in g o n in te rm s o f in d ustr y tr e nd s a nd c urre nt e v ents ? H as a b ig

c o m peti to r r e centl y f o ld ed o r h as th ere b een a m eanin gfu l m erg er? I s th e c usto m er r a p id ly g ain in g o r

l o sin g sh are ? W hat ab out re gula to ry changes? W hat d o th e co m pany’s re cent p re ss re le ase s and

e arn in gs s ta te m ents s u ggest a b out s tr a te gic p rio riti e s?

When a re p c o m es in n o t ju st w ith a sa le s p itc h, b ut w ith a se nse o f w hat’ s g o in g o n in th at custo m er’s c o m pany a nd in d ustr y , y o u’v e g o t th e b egin nin gs o f a ta ilo re d m essa ge. T hese o ute r tw o

la yers a re a rg uab ly th e e asie r o nes, a nd w hen y o u s e e ta ilo re d m essa gin g in p ra cti c e, it’ s u su ally a t

th is l e v el. M uch r a re r i s m essa gin g th at i s ta ilo re d a t th e l e v el o f a c usto m er s ta keho ld er’s r o le — and

ra re r s ti ll i s m essa gin g th at’ s ta ilo re d

to t h at i n div id ual

, i .e ., th eir p ers o nal g o als a nd o bje cti v es. RED UCIN G V A R IA BIL IT Y

M any sa le s le ad ers th in k of th e ab ility to ta ilo r to in d iv id ual sta keho ld ers as so m e so rt of

s u p ern atu ra l a b ility fo und o nly a m ong th eir v ery b est s a le sp eo ple . F or th e r e st o f th e s a le s fo rc e, th e

b ig gest obsta cle to ta ilo rin g— co m panie s assu m e— is th eir co re re p s’ natu ra l la ck of em path y,

s e nsiti v ity , o r l is te nin g s k ills . B ut th at’ s n o t th e c ase . T he b ig gest c halle nge to g etti n g ta ilo rin g r ig ht i s

t h at i t s e em s th ere a re

so m any

d iffe re nt th in gs r e p s n eed to k no w to ta ilo r e ffe cti v ely . S o if y o u c all

o n n ew p eo ple a t th e c usto m er a nd y o u w ant to m ake su re y o u d eliv er a s ta ilo re d a m essa ge a s

p ossib le , w hat d o y o u fo cus o n? T heir p ers o nality ty p e? T heir ro le ? T heir re gio n? T heir in te re sts ?

T he lis t o f p ossib iliti e s s e em s e nd le ss. S o h o w d o y o u n arro w it d ow n? H ow d o y o u g et fr o m th at

a m orp ho us c lo ud to a ta ilo re d , r e so nant m essa ge?

As y o u’ll re call fr o m c hap te r 2 , tw o th in gs C halle nger re p s ta ilo r to a re th eir k no w le d ge o f a n

i n d iv id ual s ta keho ld er’s v alu e d riv ers a nd a n u nd ers ta nd in g o f th e e co no m ic d riv ers o f th at p ers o n’s

b usin ess. A C halle nger re p a rriv es a t th e c usto m er w ith a d eep u nd ers ta nd in g o f h o w in d iv id ual

s ta keho ld ers fit in to th eir o vera ll b usin ess— what th eir r o le is a nd w hat th ey a re w orrie d a b out— as

w ell a s th e s p ecific q uanti fia b le r e su lts th at th o se i n d iv id uals w ant to a chie v e.

Challe nger r e p s a re n’t f o cuse d o n w hat th ey a re s e llin g, b ut o n w hat th e p ers o n th ey’re s p eakin g to

i s tr y in g to a cco m plis h . M ost s a le s r e p s te nd to d eliv er th e s a m e m essa ge w heth er th ey’re ta lk in g to

s e nio r d ecis io n m akers o r m ore ju nio r e nd u se rs , a nd u su ally th at m essa ge is a b out y o ur p ro ducts

r a th er th an th e c usto m er’s c halle nges.

So h o w d o y o u g et y o ur e nti r e s a le s f o rc e to ta ilo r th eir a p pro ach to e ach i n d iv id ual s ta keho ld er’s

m ost p re ssin g n eed s? L et’ s l o ok a t s o m e ta ilo rin g to ols th at c an h elp r e p s s p eak to i n d iv id uals i n th eir

l a nguage a b out th eir c o nte xt a nd o utc o m es.

Custo m er o utc o m es a re w hat a n in d iv id ual a t th e c usto m er o rg aniz a ti o n is tr y in g to a chie v e— ho w

t h ey w ould d efin e s u ccess a s p art o f th eir j o b.

These o utc o m es e nco m pass th e a ctu al a cti v ity o r r e sp onsib ility i n n eed o f i m pro vem ent, th e m etr ic

u se d to m easu re th at ta sk , and th e d ir e cti o n and m agnitu d e o f th e d esir e d change. E xam ple s o f

o utc o m e s ta te m ents m ig ht i n clu d e, “ D ecre ase r e je ct r a te b y 5 p erc ent o n o ur h ig h-c ap acity p ro ducti o n

l in e,” o r “ D ecre ase th e n um ber o f c lic ks i t ta kes f o r c usto m ers to f in d a n a nsw er o n o ur W eb s ite .”

There a re s o m e s ig nific ant b enefits to a p pro achin g a c usto m er’s n eed s i n th is w ay. F ir s t, c usto m er

o utc o m es a re p re d ic ta b le , e sp ecia lly i n te rm s o f a c usto m er’s r o le . I f y o u c an f ig ure o ut w hat C IO s a t

f iv e d iffe re nt c o m panie s c are a b out, c hances a re y o u c an u se th at in fo rm ati o n to p re d ic t w hat o th er

C IO s a t s im ila r c o m panie s c are a b out a s w ell. S eco nd , th ese o utc o m es ty p ic ally r e m ain f a ir ly s ta b le

a cro ss ti m e a nd p eo ple . If a C IO g ets p ro m ote d , h er su ccesso r w ill p ro bab ly h av e sim ila r g o als .

T hir d , fo r a ny g iv en ro le , th ey’re fin ite . In o th er w ord s, y o u c an d ev elo p a sh o rt lis t o f d esir e d

o utc o m es a nd fo cus o n th e fe w th in gs th at th at p ers o n c are s a b out m ost. A nd la stl y , th e a p pro ach is

s c ala b le . O nce y o u’v e l e arn ed i t, y o u c an a p ply th e s a m e c o ncep t a gain a nd a gain a cro ss a c o m pany’s

o rg c hart.

The b est th in g a b out u nd ers ta nd in g a nd m ap pin g c usto m er o utc o m es is th at y o u d on’t h av e to r e ly

o n in d iv id ual re p s to fig ure a ll th is o ut o n th eir o w n. T his is so m eth in g th at c an b e d ete rm in ed

c entr a lly — in m ark eti n g o r s a le s o pera ti o ns— and th en g iv en to y o ur r e p s i n th e f o rm o f a to ol.

Sola e, a m aker o f s o y-b ase d f o od i n gre d ie nts , h as d one j u st th at. T his c o m pany h as f o und a w ay to

f o cus re p s’ co nv ers a ti o ns w ith vario us custo m er sta keho ld ers on th e sp ecific cap ab iliti e s and messa ges th at w ill r e so nate m ost s tr o ngly w ith th at i n d iv id ual. TA IL O RIN G C ASE S T U DY: S O LA E’S M ESSA G E-T O -R O LE M APPIN G

R ecentl y , S ola e la unched a n a ggre ssiv e s tr a te gy to s e ll b ig ger, m ore c o m ple x s o lu ti o ns in o rd er to

g ro w th eir m ark et b eyo nd tr a d iti o nal a p plic ati o ns. A s h as b een th e e xp erie nce o f m ost c o m panie s th at

s h ift fr o m se llin g pro ducts to se llin g so lu ti o ns, th ese effo rts bro ught a m uch w id er ra nge of

s ta keho ld ers i n to e ach d eal th an h ad p re v io usly b een th e c ase . S ola e’s s a le s te am w as n o w ta lk in g to

C M Os, V Ps o f m anufa ctu rin g, p ro cure m ent o ffic ers , a nd a nyo ne e ls e w ith a s ta ke i n th eir s o lu ti o n.

This w as a b ig c hange fo r S ola e’s s a le s re p s. H ow ev er, th e re al p ro ble m w as th at re p s le d o ff

t h ese co nv ers a ti o ns w ith th e sa m e pro duct and te chnic al sp ecific ati o ns th ey had use d w ith th e

t e chnic al e xp erts th ey h ad m ore tr a d iti o nally d ealt w ith in th e p ast. B ut m ore o fte n th an n o t th ese

n ew er s ta keho ld ers h ad n o id ea w hat th e S ola e r e p s w ere ta lk in g a b out. T he r e p m ig ht a s w ell h av e

b een s p eakin g a f o re ig n l a nguage. M any o f th ese n o nte chnic al s ta keho ld ers w ould s c ra tc h th eir h ead s

a nd s a y, “ S o w hat? ” o nce th e S ola e r e p w as fin is h ed d eliv erin g th e p itc h. T hese c usto m ers c o uld n’t

m ake a c o nnecti o n b etw een a ll o f th e te chnic al s p ecific ati o ns o f S ola e’s p ro ducts a nd w hat w as m ost

i m porta nt to th em . A nd th at— as y o u c an im agin e— sig nific antl y h am pere d th e c o m pany’s s o lu ti o ns

s tr a te gy. Fra m in g t h e P erso nal W in

T o b oost r e p s’ a b ility to a p pro ach v ario us c usto m er s ta keho ld ers i n a l a nguage th ey w ere m ore l ik ely

t o und ers ta nd , Sola e’s fir s t ste p w as to docum ent fo r th e re p w hat th ese vario us custo m er

s ta keho ld ers care d ab out in th e fir s t pla ce. To do th at th ey w ent beyo nd genera l dem ogra p hic

i n fo rm ati o n, p ro vid in g th eir r e p s w ith a s e t o f c ard s e xp la in in g w hat e ach s ta keho ld er w as tr y in g to

a cco m plis h a s a b usin ess l e ad er. I n s u m , e ach e xp la in s a s ta keho ld ers ’ f u ncti o nal b ia s: th eir p ers o nal

v alu e d riv ers a nd th eir e co no m ic c o nte xt.

Sourc e: S ola e L LC ; S ale s E xecuti v e C ouncil r e se arc h

Fig ure 6 .6

C om ponents o f F uncti o nal B ia s

The e xam ple fu ncti o nal b ia s c ard in fig ure 6 .6 is fo r a h ead o f m anufa ctu rin g. O n th ese fu ncti o nal

bia s c ard s, y o u f in d th in gs l ik e th e h ig h-le v el d ecis io n c rite ria ( o r b usin ess o utc o m es) th at a p ers o n i n

th is r o le c are s m ost a b out. R ep s a ls o g et a s e nse o f th e s ta keho ld er’s fo cus, o r th o se th in gs th at th at

pers o n m onito rs m ost o fte n in o rd er to achie v e th e hig h-le v el o utc o m es in th e fir s t se cti o n. In

ad diti o n, th e to ol c ap tu re s a s ta keho ld er’s k ey c o ncern s— th e q uesti o ns th at th at p ers o n a sk s d ay-to -

day to d o th e jo b, th e th in gs th ey w orry a b out m ost. T his is in cre d ib ly fe rti le g ro und fo r b uild in g

em path y a nd c re d ib ility . A nd l a stl y , th e to ol c ap tu re s f o r r e p s th e s ta keho ld er’s p ote nti a l v alu e a re as.

These a re th e l e v ers th is p ers o n m ig ht p ull to i m pro ve p erfo rm ance. S o i f a s a le s r e p i s g o in g to ta ilo r

th e s o lu ti o n to th is p ers o n’s d esir e d o utc o m es, th ese a re th e ty p es o f th in gs th at th at s o lu ti o n is g o in g

to h av e to d o. T his i s th e l a nguage y o u u se to s e ll y o ur s o lu ti o n to th is p arti c ula r p ers o n.

This is h o w y o u tr a nsla te c usto m er in sig ht in to so m eth in g re p s c an a ctu ally u se to ta ilo r. W ith

in fo rm ati o n lik e th is , re p s d on’t n eed to a sk th e c usto m er th e d re ad ed “ W hat’ s k eep in g y o u u p a t

nig ht? ” q uesti o n, b ecause th ey a lr e ad y k no w . It’ s rig ht th ere o n th e c ard . It’ s a c le ar, e asy -to -u se

fr a m ew ork fo r e ach m ajo r s ta keho ld er’s c o nte xt a nd o utc o m es, a ll la id o ut in a p ow erfu l b ut u se r-

fr ie nd ly f o rm at. Gettin g P ast t h e “ S o W hat”

T hat sa id , in ad diti o n to th e custo m er o utc o m es card s, S ola e p ro vid es re p s w ith v ery sp ecific

g uid ance o n h o w to p ositi o n e ach o f its p rim ary s o lu ti o ns, o r p ro duct b und le s, to d iffe re nt p eo ple

a cro ss th e c usto m er o rg aniz a ti o n.

Here is w here S ola e m akes ta ilo rin g v ery c o ncre te . T his is e xactl y th e k in d o f h elp r e p s n eed to

a d opt m ore o f a C halle nger r e p p ostu re . W hat y o u s e e i n f ig ure 6 .7 i s a h yp oth eti c al ta ilo rin g to ol f o r

S ola e’s “ S olu ti o n A ” ( s o m e o f th e in fo rm ati o n is d is g uis e d h ere , g iv en its p ro prie ta ry n atu re ). S ola e

u se s th e to ol to s h o w r e p s th e v ario us c usto m er s ta keho ld ers w ho a re r e le v ant f o r S olu ti o n A , a s w ell

a s th e h ig h-le v el o utc o m es m ost im porta nt to e ach o f th o se in d iv id uals . T he to ol a ls o sh o w s th e

p rim ary m eans b y w hic h th at p ers o n i s l ik ely to a chie v e th o se o utc o m es— fo r i n sta nce, i n cre ase s a le s,

i n cre ase m ark et s h are , o r b uild b ra nd im age. F in ally , in th e r e al v ers io n o f th e to ol, S ola e o ffe rs its

r e p s so m e sp ecific “sc rip ti n g” ty in g S ola e’s S olu ti o n A d ir e ctl y b ack to w hat th at in d iv id ual is

l o okin g to a chie v e. T his s c rip ti n g i s n ’t m eant to b e d eliv ere d v erb ati m . R ath er, i t’ s m eant to s e rv e a s

a s e t o f “ co nv ers a ti o nal g uid elin es” to d ir e ct th e r e p to th e s p ecific la nguage th at w ill r e so nate m ost

s tr o ngly w ith th at i n d iv id ual.

S ourc e: S ola e L LC ; S ale s E xecuti v e C ouncil r e se arc h.

Fig ure 6 .7 .

D esir e d O utc o m es a nd S up plie r C ap ab iliti e s M ap ped to F uncti o nal R ole s

This is ta ilo rin g a t its b est. U sin g it, a r e p w ill b e s p eakin g to th e c usto m er in th eir o w n la nguage

a b out h o w to b ette r a chie v e th e o utc o m es th at th ey c are a b out m ost in th eir c o nte xt. T his is a ls o th e

k in d o f th in g th at C halle ngers m ig ht d o in sti n cti v ely , b ut th at th e m ajo rity o f re p s str u ggle w ith

m ig hti ly — and th at’ s r e ally th e b eauty o f a to ol lik e th is : It’ s a ta ilo rin g “ cheat s h eet” to h elp th e r e st

o f th eir r e p s s o und m ore lik e th e o nes w ho d o th is w ell. It’ s s im ple , it’ s c o ncre te , a nd it’ s b ase d o n

c o nte xt a nd o utc o m es. W hat’ s m ore , it p ro vid es m anagers w ith a w ay to s c ale ta ilo rin g a cro ss th e

s a le s o rg aniz a ti o n. MAK IN G T A IL O RIN G H APPEN

S ti ll, to e nsu re th at th at ta ilo re d m essa ge re m ain s fr o nt a nd c ente r w ith e ach c usto m er s ta keho ld er

t h ro ugh th e e nti r e s a le s p ro cess, S ola e g o es o ne s te p fu rth er. O nce a d eal h as p ro gre sse d fa r e no ugh

a lo ng th e s a le s p ro cess, a nd th e S ola e a cco unt te am h as d ev elo ped a p ro je ct p ro posa l fo r c usto m er

r e v ie w , th eir r e p s u se a te m pla te s im ila r to th e o ne y o u s e e in fig ure 6 .8 to b oth w in a nd d ocum ent

c usto m er b uy-in to th e p ro je ct.

S ourc e: S ola e L LC ; S ale s E xecuti v e C ouncil r e se arc h.

Fig ure 6 .8 .

V alu e P la nnin g T ool a s S ta ge-G ate B etw een P ro je ct D ev elo pm ent a nd E xecuti o n

The te m pla te c ap tu re s th e a gre ed -u p on h ig h-le v el p ro je ct o bje cti v e— la id o ut s p ecific ally i n te rm s

o f w hat th e c usto m er g ets a nd th e m ajo r s ta keho ld ers a cro ss w ho m S ola e n eed s to b uild c o nse nsu s.

T hen, fo r each sta keho ld er, Sola e docum ents th e sp ecific outc o m e th at th e pro pose d so lu ti o n

a d dre sse s f o r th at i n d iv id ual. F or e xam ple , f o r m ark eti n g, th e g o al i s to “ m ain ta in o r i m pro ve p ro duct

q uality a nd ta ste d esp ite c utti n g c o sts .” A nd th en, fo r e ach ro le , S ola e d ocum ents in w riti n g th at

p ers o n’s s tr o ngest c o ncern o r o bje cti o n a nd th e s p ecific c ap ab iliti e s o r a cti o ns S ola e w ill e m plo y to

o verc o m e th o se o bje cti o ns.

The m ost im pre ssiv e th in g a b out th is a p pro ach is th at

all

o f th is is m ap ped o ut

with

th e c usto m er.

T his i n fo rm ati o n i s d ete rm in ed th ro ugh c o nv ers a ti o ns a nd th en c ap tu re d u sin g th e to ol. T ho ugh i t’ s n o t

r e q uir e d , S ola e’s v ery b est r e p s a ctu ally a sk th at s ta keho ld er to

sig n o ff

o n th e c o lu m n i n d ic ati n g th eir

a gre em ent w ith th e p la n. T hat w ay e ach s ta keho ld er i s a gre ein g, i n a d vance, to th e v alu e y o u’re g o in g

t o c re ate fo r th em a s a n in d iv id ual a nd h o w th at v alu e is g o in g to b e m easu re d a cro ss th e life o f th e

d eal. A s a r e su lt, w hen i t c o m es ti m e f o r th is p ers o n to d ecid e w heth er o r n o t th ey’re g o in g to s u p port th e d eal, th ey’re n o t m akin g th at d ecis io n b ase d o n s o m e v ague s e nse o f w heth er th e d eal i s “ go od f o r

th e c o m pany.” In ste ad , th ey c an lo ok a t th is s h eet a nd s e e e xactl y h o w it’ s ta ilo re d to th eir s p ecific

go als . A nd y o u c an im agin e w hat h ap pens w hen th e re p u lti m ate ly sits d ow n w ith th e to p-le v el

decis io n m aker to c lo se th e d eal a nd h e c an la y th is d ocum ent o n th e ta b le . T here ’s y o ur c o nse nsu s

rig ht th ere — all c ap tu re d o n a s in gle p ie ce o f p ap er.

In fa ct, e v en if y o u u se it o nly fo r in te rn al p urp ose s, th is to ol s ti ll r e p re se nts a n e sse nti a l a nd y et

ty p ic ally m is sin g p age i n a ny g o od a cco unt p la n: a c o ncre te , c o ncis e s u m mary o f h o w y o u’re g o in g to

deliv er y o ur s o lu ti o n i n a w ay th at d oesn ’t j u st m eet o vera ll e xp ecta ti o ns, b ut i n d iv id ual o nes a s w ell.

In th e e nd , S ola e’s a p pro ach re p re se nts a s im ple y et e le gant m eans to c ap tu re o n p ap er w hat y o ur

Challe nger re p s d o in th eir h ead s e v ery d ay— ad dre ss e ach c usto m er

sta keh old er

a s if h e o r sh e

actu ally w as

th e c u sto m er

. B ecause in to day’s w orld o f c o nse nsu s-b ase d s e llin g, th at’ s e xactl y w ho

sta keho ld ers a re . 7

TA KIN G C O NTR O L O F T H E S A LE

S O F A R, W E’V E

c hecked o ff tw o o f th e th re e k ey a ttr ib ute s o f th e C halle nger p ro file , te achin g a nd

t a ilo rin g. O ur n ext s to p is a lo o k a t th e th ir d d is ti n guis h in g c hara cte ris ti c o f C halle nger re p s: th eir

a b ility to ta ke c o ntr o l o f th e s a le .

Acco rd in g to th e d ata , th is a b ility c o m es fr o m tw o th in gs: C halle nger re p s a re n atu ra lly m ore

c o m fo rta b le ta lk in g a b out m oney, a nd th ey’re a b le to “ p ush ” th e c usto m er. W hat w e’re r e ally ta lk in g

a b out h ere i s th e C halle nger’s a b ility to d em onstr a te a nd h o ld f ir m o n v alu e a nd th e a b ility to m ain ta in

m om entu m a cro ss th e s a le s p ro cess. C halle ngers a re c o m fo rta b le d is c ussin g m oney b ecause th ey a re

c o nfid ent i n th e v alu e th ey w ill p ro vid e to th e c usto m er. T here ’s r e ally n o th in g th at i n sti lls c o nfid ence

l ik e k no w in g th at y o u w ill d eliv er su p erio r v alu e to y o ur c usto m ers — and C halle ngers h av e th at

c o nfid ence i n s p ad es. T his m eans th at th e C halle nger h as n o p ro ble m r e sp ectf u lly p ush in g b ack w hen

t h e c usto m er a sk s fo r a d is c o unt, lo ose r te rm s, o r in cre ase d s c o pe w ith o ut a c o m mensu ra te in cre ase

i n p ric e ( i.e ., “ fr e eb ie s” ).

Rem em ber, th e v alu e th at th e C halle nger p ro vid es is b uilt o n th e C om merc ia l T eachin g m essa ge.

T his is n ’t th e s a m e c o nfid ence o ne fe els k no w in g th eir c o m pany’s p ro ducts a nd s e rv ic es a re n um ber

o ne in th e m ark et. It’ s c o nfid ence b uilt o n th e k no w le d ge th at y o u’v e

ta ught

th e c usto m er a b out a

p ro ble m th ey d id n’t p re v io usly k no w th ey h ad . T here ’s n o w a b urn in g p la tf o rm — one y o u c re ate d —

a nd i t j u st s o h ap pens th at y o u s e ll th e o nly s o lu ti o n to th at p ro ble m . B ein g n um ber o ne i n th e m ark et

i s g re at, b ut u nfo rtu nate ly i t i s n ’t a nyth in g y o ur c usto m ers r e ally c are a b out.

Challe ngers a ls o c re ate m om entu m . T heir d eals d on’t g et stu ck n early a s o fte n in “ no -d ecis io n

l a nd ” th e w ay ty p ic al c o re r e p s’ d eals te nd to . T his is b ecause a C halle nger w ill p ush th in gs a lo ng,

a lw ays th in kin g a head to th e n ext s te p . W hen R ela ti o nsh ip B uild ers c o m e to th e e nd o f a c usto m er

m eeti n g, th ey w on’t p ush hard o n next ste p s fo r fe ar o f ru in in g w hat w as o th erw is e a p ositi v e

i n te ra cti o n. B ut C halle ngers u nd ers ta nd th at th e g o al is to s e ll a d eal, n o t ju st h av e a g o od m eeti n g;

t h ey a re f o cuse d o n m ovin g a head . T his i s a ls o c lo se ly ti e d to th e C om merc ia l T eachin g p itc h. Y ou’v e

c re ate d m om entu m because yo u’v e cre ate d urg ency aro und a pre v io usly unkno w n— or perh ap s

u nd erv alu ed — opportu nity o r p ro ble m . N ow i t’ s ti m e to p re ss. S ound s s tr a ig htf o rw ard e no ugh, r ig ht?

As a ny s a le s le ad er k no w s, th ese th in gs ( i.e ., c o m fo rt d is c ussin g m oney, p re ssu rin g th e c usto m er)

a re e asie r s a id th an d one f o r th e a v era ge s a le s r e p . T hat’ s w hy C halle ngers c an b e s o h ard to f in d . A s

h um an b ein gs, o ur natu ra l in clin ati o n is to se ek clo su re , no t p ostp one it, to re d uce te nsio n, no t

i n cre ase it. F or s a le s re p s, th is tr a nsla te s in to a te nd ency to a gre e w ith th e c usto m er, n o t p re se nt a

d iffe re nt— and p ote nti a lly u nse ttl in g— poin t o f v ie w . Y et C halle nger r e p s h av e l e arn ed to d o j u st th at.

Yet g iv en o ur n atu ra l p ro pensiti e s a s p eo ple , h o w i n th e w orld d o y o u i n cre ase th e w illin gness a nd

a b ility of yo ur sa le s re p s— esp ecia lly th o se re p s m ost pre d is p ose d to re d ucin g te nsio n, yo ur

R ela ti o nsh ip B uild ers — to ta ke co ntr o l? In th is chap te r, w e’ll sh o w yo u so m e very pra cti c al

a p pro aches to h elp in g re p s u nd ers ta nd th e b est w ays o f ta kin g c o ntr o l. B ut fir s t, le t’ s e xp lo re th is

n o ti o n o f ta kin g c o ntr o l i n m ore d ep th . TH REE M IS C O NCEPTIO NS A BO UT T A K IN G C O NTR O L

W e’v e s p ent a fa ir b it o f ti m e e arlie r d is p ellin g fa ls e n o ti o ns a ro und s o m e o f th e c o ncep ts in th e

C halle nger S ellin g M odel, b ut n o w here i s th ere m ore c o nfu sio n th an a ro und th e i d ea o f ta kin g c o ntr o l.

W e g enera lly e nco unte r th re e m ain m is c o ncep ti o ns:

1. T akin g c o ntr o l i s s y no nym ous w ith n ego ti a ti o n.

2. R ep s o nly ta ke c o ntr o l r e gard in g m atte rs o f m oney.

3. R ep s w ill b eco m e to o a ggre ssiv e i f w e te ll th em to “ ta ke c o ntr o l.”

Let’ s ta ke th ese o ne a t a ti m e. F ir s t, th e c o m mon p erc ep ti o n— giv en th at th e d ata su ggests th at

C halle ngers a re c o m fo rta b le d is c ussin g m oney— is th at ta kin g c o ntr o l i s s y no nym ous w ith n ego ti a ti o n

a nd th at i t i s ty p ic ally d one a t th e

en d

o f th e s a le s p ro cess. T his c o uld n’t b e f u rth er f r o m th e tr u th . Mis c o nce ptio n # 1: T ak in g C ontr o l I s S ynonym ous w it h N egotia tio n

O ne o f th e b ig gest m is c o ncep ti o ns a b out ta kin g c o ntr o l is th at it’ s a b out n ego ti a ti o n s k ills . B ut S E C

r e se arc h s h o w s th at C halle gers ta ke c o ntr o l a cro ss th e e nti r e ty o f th e s a le s p ro cess, n o t j u st a t th e e nd .

I n f a ct, o ne o f th e p rim e o pportu niti e s f o r ta kin g c o ntr o l i s a ctu ally r ig ht a t th e b egin nin g o f th e s a le .

Challe ngers k no w m any s a le s o pportu niti e s th at a p pear v ia b le o n th e s u rfa ce a re littl e m ore th an

v eile d “ v erific ati o n e ffo rts ” b y a c usto m er. In o th er w ord s, th ey a re c ase s in w hic h th e c usto m er h as

a lr e ad y c ho se n a v end or to p artn er w ith , b ut fe els th e n eed to d o s o m e d ue d ilig ence— to m ake s u re

t h ey’re g etti n g th e b est d eal th ey c an— so th ey e nte rta in c o nv ers a ti o ns w ith o th er v end ors e v en th o ugh

t h ey h av e l ittl e i n te nti o n o f c hangin g th eir m in d s. I n c ase s l ik e th is , w hic h o ur r e se arc h s h o w s c an b e

n early 2 0 p erc ent o f a ll s a le s o pportu niti e s, th e c usto m er w ill a ssig n a m ore ju nio r m em ber o f th eir

o rg aniz a ti o n to fie ld a n R FP a nd m eet w ith o th er p ossib le v end o rs . B ut a gain , b ecause th e c usto m er

h as n o in te nti o n o f a ctu ally b uyin g fr o m th ese o th er s u p plie rs , th ey o nly a llo w r e p s to m eet w ith th e

j u nio r c o nta ct, n ev er p erm itti n g a ccess to m ore s e nio r d ecis io n m akers .

For m ost r e p s, th is is n ’t s e en a s a p ro ble m . In fa ct, m ost r e p s

lo ve

th ese o pportu niti e s. W hat’ s n o t

t o l o ve? A fte r a ll, th e c usto m er

ca lle d u s

!

The ty p ic al r e p r e sp onse i s to c o nti n ue to s p end ti m e w ith th e j u nio r c o nta ct i n th e h o pes o f tu rn in g

t h at in d iv id ual in to a n a d vocate , e v entu ally c la w in g o ne’s w ay in to th e c o rn er o ffic e. W hat w e o fte n

h ear fr o m r e p s is s o m eth in g a lo ng th e lin es o f, “ W e k no w m oney is g o in g to b e s p ent if th ere is a n

R FP o ut th ere , so it’ s stu p id fo r us to no t p ut o urs e lv es in to co nsid era ti o n— we at le ast hav e a

c hance!”

But e v en in th is e arly sta ge o f th e sa le , C halle ngers k no w b ette r. T hey sn iff o ut th ese “ fo ils ”

i m med ia te ly a nd p re ss th e c o nta ct fo r e xp and ed a ccess in e xchange fo r c o nti n ued d ia lo gue. W hen

t h ese c o nta cts d on’t g ra nt th e a ccess C halle nger re p s k no w w ill b e c riti c al to c o m ple ti n g th e s a le ,

t h eir re sp onse is to cut th e sa le s effo rt sh o rt and m ove o n to th e next o pportu nity . It se em s so

c o unte rin tu iti v e to th e a v era ge re p — afte r a ll, y o u’v e g o t a c usto m er th at h as p ut a n R FP o ut fo r a

s o lu ti o n y o u c an p ro vid e, s o y o u k no w th ere ’s f u nd in g f o r th e p urc hase . T hey’v e a ls o a gre ed to m eet

w ith th e r e p , a nd c usto m er fa ce ti m e is s o h ard to g et th ese d ays. W hy w ould y o u e v er w ant to w alk

a w ay f r o m a s itu ati o n l ik e th is ? B ut th at’ s e xactl y w hat a C halle nger d oes. C halle nger r e p s k no w th eir

t i m e i s b ette r s p ent e ls e w here .

One S E C m em ber, a glo bal busin ess se rv ic es pro vid er, has in sti tu ti o naliz e d th is C halle nger

b ehav io r a cro ss its e nti r e s a le s fo rc e. T his c o m pany te aches its re p s to p ush fo r e xp and ed a ccess

r ig ht fr o m th e g et- g o . S in ce m uch o f th eir b usin ess is d one th ro ugh R FPs, th ey a re a lm ost a lw ays

s ta rti n g th eir sa le s c o nv ers a ti o ns w ith lo w er-le v el fu ncti o narie s w ith in th e c usto m er o rg aniz a ti o n,

o fte n o n p ro cure m ent. T hey te ll th eir r e p s th at a n e arly l itm us te st o f h o w s e rio us a g iv en c usto m er i s

a b out partn erin g is w heth er th ey w ill agre e to gra nt th e su p plie r’s sa le s re p access to key

s ta keho ld ers . It’ s p ro ven to b e a r e m ark ab ly a ccura te “ te ll” fo r a c usto m er’s r e al in te nti o ns a nd h as

h elp ed th e c o m pany’s r e p s to a v oid w asti n g ti m e.

Their re p s a re ta ught, a t th e c lo se o f th e fir s t in te ra cti o n, to s a y, “ Y ou k no w , ty p ic ally w hen w e

e ngage w ith a c usto m er f o r th is s o rt o f s o lu ti o n, w e n eed c erta in k ey e xecuti v es to b e i n v olv ed i n th e

p urc hase d ecis io n. Is th at th e c ase h ere ?” W hen th e c usto m er s a ys y es, th e r e p a sk s w hen s h e’ll b e

a b le to m eet w ith th o se i n d iv id uals . I f th e c o nta ct h em s a nd h aw s o r g iv es a n u ncle ar a nsw er, th e r e p

p ush es a nd e xp la in s th at i f th ey c an’t g uara nte e ti m e w ith th o se k ey l e ad ers , s h e’ll b e u nab le to c heck th at e v ery b ody i s a lig ned o n th e v alu e o f th e s o lu ti o n, a nd th ere fo re i t d oesn ’t m ake s e nse to c o nti n ue

engagin g i n f u rth er d is c ussio ns.

Neil R ackham s h are d w ith u s a s im ila r s to ry fr o m h is r e se arc h. “ A b ig p ro ble m ,” h e e xp la in ed to

us, “ is th e c usto m er w ho in v ite s a s a le sp ers o n to c o m e in , a naly ze a p ro ble m , a nd g enera te c re ati v e

so lu ti o ns. M any sa le s org aniz a ti o ns w ill sp end w ell in to th e six fig ure s to purs u e a co m ple x

opportu nity . A ll to o o fte n, th o ugh, th e c usto m er e nco ura ges th is fr e e c o nsu lti n g w ork u nti l th e b est

so lu ti o n b eco m es c le ar, a t w hic h p oin t th ey g o s h o ppin g f o r th e c heap est s u p plie r.”

This is a co re d iffe re nce b etw een R ela ti o nsh ip B uild ers and C halle ngers , in N eil R ackham ’s

asse ssm ent. “ In m y o w n r e se arc h, I s a w s o m e r e p s l o sin g m ore c usto m ers to c heap er s u p plie rs l a te i n

th e sa le because th ey fa ile d to ta ke co ntr o l early on. T hey ste ere d cle ar of hav in g a to ugh

co nv ers a ti o n a b out th e c o m merc ia l s id e o f th e in te ra cti o n, fe arin g it w ould d am age th e r e la ti o nsh ip .

Oth er r e p s, h o w ev er, c o nfr o nte d th e c usto m er e arly i n th e s a le , s a yin g, ‘ It’ s g o in g to c o st u s $ 200K to

put o ur b est th in kin g i n to y o ur p ro ble m . W e’re w illin g to d o i t, b ut w e n eed s o m e a ssu ra nce th at i f w e

in v est i n y o u, y o u’ll i n v est i n u s.’ T hese r e p s h ad f a r f e w er c usto m ers s w itc h to c heap er s u p plie rs l a te

in th e s a le s p ro cess.”

This k in d o f ta cti c s e em s to b e a h allm ark o f s a le s h ig h p erfo rm ers . A r e cent S E C s tu d y r e v eale d

th at w hile all re p s sta rt th eir sa le s effo rts by m ap pin g out sta keho ld ers w ith in th e custo m er

org aniz a ti o n, co re perfo rm ers th en m ove to w hat w ould se em lik e th e lo gic al next ste p —

und ers ta nd in g n eed s a nd m ap pin g s o lu ti o ns a gain st th o se n eed s. B ut h ig h p erfo rm ers d o s o m eth in g

very d iffe re nt. T hey e xte nd th is p art o f th e s a le s p ro cess b y d ig gin g i n to th ese i n d iv id ual s ta keho ld ers ’

vary in g go als and b ia se s, as w ell as b usin ess and p ers o nal o bje cti v es. A s w e d is c usse d in th e

ta ilo rin g c hap te r, th ey m ap o ut n o t j u st

who

th e k ey s ta keho ld ers a re , b ut

what

th ese s ta keho ld ers c are

ab out a nd

why

th ey c are a b out th ese th in gs. B y d oin g th is , th e C halle nger i s i n a m uch b ette r p ositi o n

to b e a b le to ta ke c o ntr o l r ig ht f r o m th e b egin nin g.

Challe ngers fin d m any o th er o pportu niti e s to ta ke c o ntr o l d urin g th e s a le — again , w ell in a d vance

of a rriv in g a t th e n ego ti a ti n g ta b le . E ven if a r e p

ca n

s u ccessfu lly v erify a c usto m er’s r e al in te nti o ns

at th e b egin nin g o f th e s a le s p ro cess, m any d eals w ill g et b ogged d ow n n ev erth ele ss. C halle ngers

dis ti n guis h th em se lv es by build in g m om entu m w ith in th e custo m er org aniz a ti o n— mom entu m th at

enab le s th em to d riv e to a c o nclu sio n f a ste r th an th e ty p ic al r e p .

In o ur i n te ra cti o ns w ith C halle nger r e p s, i t’ s c le ar th at th ey h av e a b ette r-th an-a v era ge a p pre cia ti o n

fo r h o w h ard it is to b uy fr o m th eir c o m panie s in g enera l. T his c o m ple xity in th e b uyin g p ro cess h as

le ss to d o w ith b ure aucra ti c h urd le s s u p plie rs p ut in th e w ay o f c usto m ers — th o ugh th at s u re ly is a n

is su e in m any c o m panie s— but w ith th e fa ct th at c usto m ers o fte n d on’t k no w h o w to b uy. O f c o urs e ,

custo m ers d on’t l a ck th e b asic k no w -h o w o f b uyin g a c o m ple x s o lu ti o n f r o m a s u p plie r, b ut s ta nd ard

purc hasin g p ro cesse s a nd p ro to co ls b re ak d ow n w hen e v ery so lu ti o n is u niq ue, to uchin g d iffe re nt

parts o f th e o rg aniz a ti o n.

Avera ge r e p s s e e th is c o m ple xity to o, b ut th eir te nd ency— esp ecia lly f o r R ela ti o nsh ip B uild ers — is

to “ le arn a nd r e act.” T hey l e t th e c usto m er ( w ho , a gain , i s l ik ely to b e c o nfu se d b y th e c o m ple xity o f

purc hasin g th e s o lu ti o n) ta ke th e le ad . B ette r to d efe r to th e c usto m er th an to r o ck th e b oat. T he r e p

ask s q uesti o ns a b out w ho m to g et in v olv ed a nd w hat s te p s to ta ke, b ut th e c usto m er is a s lo st a s th e

re p .

Challe ngers , b y c o ntr a st, “ le ad a nd s im plify .” R ath er th an a ssu m in g th at th e c usto m er k no w s h o w to

execute th e p urc hase o f a c o m ple x so lu ti o n— whic h c an b e a fa ulty a ssu m pti o n w hen it c o m es to

so lu ti o n se llin g— th ey

te a ch th e cu sto m er h ow to b uy

th e so lu ti o n. T hey extr a p ola te fr o m p ast

su ccessfu l sa le s effo rts and ap ply w hat th ey’v e le arn ed to help th e custo m er w ork th ro ugh th eir purc hase pro cess. In ste ad of ask in g, “W ho need s to be in v olv ed ?” C halle nger re p s

co ach th e

cu sto m er

o n w ho s h o uld b e i n v olv ed .

Sound s fa m ilia r, d oesn ’t it? T he C om merc ia l T eachin g a p pro ach, a s y o u re call, is a b out g etti n g

aw ay fr o m th e “ W hat’ s k eep in g y o u u p a t n ig ht? ” q uesti o n a nd in ste ad b rin gin g u niq ue in sig ht to th e

custo m er a b out w hat s h o uld b e k eep in g th em u p a t n ig ht. I t’ s th e s a m e i d ea h ere .

None o f th is i s to s u ggest th at ta kin g c o ntr o l d oesn ’t h ap pen a t th e e nd o f th e s a le , w hen b oth p arti e s

are s itti n g a cro ss fr o m e ach o th er a t th e n ego ti a ti n g ta b le . O f c o urs e it h ap pens th ere . W e k no w fr o m

th e d ata th at C halle ngers s h in e i n n ego ti a ti o n s e tti n gs. I n f a ct, w e’ll s tu d y th is v ery th in g i n m ore d ep th

when w e lo ok a t a n ego ti a ti o n tr a in in g b est p ra cti c e fr o m D uP ont la te r in th is c hap te r. T hat b ein g

sa id , i t’ s a m is ta ke to e q uate “ ta kin g c o ntr o l” w ith “ nego ti a ti n g.” I t i s f a r m ore a ccura te to th in k o f th e

la tte r a s a s m all, a lb eit i m porta nt, s u b se t o f th e f o rm er.

What’ s m ore , a C halle nger k no w s th at th e a v era ge s a le s r e p w ill s e ek to ta ke c o ntr o l o nly a t th e

end o f th e sa le — at th e nego ti a ti n g ta b le — and so C halle ngers d iffe re nti a te th em se lv es b y ta kin g

co ntr o l f r o m th e s ta rt. C usto m ers v alu e th is b ecause th ey s e e th e C halle nger a s a c o nfid ent p artn er i n

th e s a le s p ro cess, n o t a n erv ous r e p c ro ssin g th eir f in gers i n th e h o pe o f m akin g a s a le . Mis c o nce ptio n # 2: R eps T ak e C ontr o l R egard in g O nly M atte rs o f M oney

T he d ata te lls u s th at C halle ngers a re “ ab le to

push

th e c usto m er.” S ure , th ey c an p ush th e c usto m er o n

f in ancia l te rm s a nd a sp ects o f th e s e llin g/ b uyin g p ro cess, b ut m ore i m porta nt, th ey p ush th e c usto m er

i n te rm s o f h o w th ey th in k a b out th eir w orld a nd th eir c halle nges— as w ell a s th e s o lu ti o n to th o se

c halle nges. T his i s th e e sse nce o f C om merc ia l T eachin g, w hic h w e d is c usse d e arlie r i n th e b ook: th e

a b ility to r e fr a m e th e w ay th e c usto m er th in ks a b out th eir w orld .

Why i s i t i m porta nt to ta ke c o ntr o l a ro und i d eas? B ecause i t’ s e xtr e m ely u nlik ely th at a c usto m er—

e sp ecia lly a s e aso ned e xecuti v e— is g o in g to ro ll o ver a nd a ccep t th e re fr a m e th at th e C halle nger

d eliv ers w ith o ut a h ealth y d oes o f s k ep ti c is m . M ore l ik ely , h e’ll p ush b ack. H e’ll a sk w hy. H e’ll a sk

t o se e th e su p porti n g d ata . H e’ll sa y h is c o m pany is d iffe re nt. T hese a re th e q uesti o ns th at m ake

R ela ti o nsh ip B uild ers ’ knees go w eak. S eekin g to d efu se te nsio n, th e R ela ti o nsh ip B uild er w ill

a cq uie sc e, c av in g o n th e a rg um ent a nd h o pin g to s a lv age w hat’ s le ft o f th e c o nv ers a ti o n, in th e e nd

r e le gati n g h im se lf to a p ric e-d riv en c o nv ers a ti o n a b out p ro ducts a nd s u rv iv al ra te s ra th er th an th e

b ig ger, m ore v alu ab le s o lu ti o n th at c o uld h av e b een.

But it’ s th is k in d o f d ia lo gue th at th e C halle nger liv es fo r. T he C halle nger w ill u se c o nstr u cti v e

t e nsio n to h er a d vanta ge. In ste ad o f g iv in g in a t th e fir s t sig n o f re sis ta nce to h er a rg um ent, th e

C halle nger push es back: “Y ou’re rig ht, yo ur co m pany su re ly is diffe re nt, but so are th e oth er

o rg aniz a ti o ns w e w ork w ith . . . a nd I c an te ll y o u th at th is i n sig ht h as h elp ed th em to r e th in k th e w ay

t h ey r u n th eir o pera ti o ns. W ith y o ur p erm is sio n, le t’ s e xp lo re th is id ea in m ore d ep th a nd th en c ir c le

b ack to m ake s u re I ’ v e a d eq uate ly a d dre sse d a ny c o ncern s y o u m ig ht h av e.”

Com merc ia l T eachin g p uts th e C halle nger i n a p ositi o n to ta ke c o ntr o l b y b rin gin g n ew i d eas to th e

t a b le — id eas th e custo m er had n’t th o ught of befo re . B ut custo m ers are sa v vy and co nv enti o nal

w is d om d id n’t g et to b e c o nv enti o nal b y b ein g e asy to to pple . T here w ill b e p ush b ack, e v en if th e

C halle nger is a rm ed w ith c o m pellin g in sig hts a nd s u p porti n g d ata . T he C halle nger’s r e sp onse w hen

c o nfr o nte d w ith th is p ush b ack, h o w ev er, i s to ta ke c o ntr o l o f th e d eb ate .

But ta kin g c o ntr o l o f th e d eb ate a ro und i d eas i s c riti c al n o t j u st b ecause i t s h o w s th at th e s a le s r e p

i s n ’t g o in g to b e a p ush o ver, b ut a ls o b ecause th o se id eas th e C halle nger b rin gs to th e ta b le ( i.e ., th e

n ew p ro ble m s o r o pportu niti e s th e r e p h as ta ught th e c usto m er to v alu e) a re d ir e ctl y c o nnecte d to th e

s o lu ti o ns th at th e s u p plie r c an o ffe r to th e c usto m er. If th e r e p is n ’t w illin g to c o nv in ce th e c usto m er

t h at th e p ro ble m i s u rg ent, th en h e w on’t b e a b le to c o nv in ce th e c usto m er i t’ s w orth s o lv in g. Mis c o nce ptio n # 3: R eps W ill B eco m e T oo A ggre ssiv e I f W e T ell T hem t o “ T ak e C ontr o l”

P eo ple a ls o c o nfu se ta kin g c o ntr o l— th at i s , th e C halle nger’s te nd ency to b e a sse rti v e d urin g th e s a le

— with a ggre ssiv eness. B ut th ese a re a ctu ally tw o v ery d iffe re nt th in gs. T his is th e la st, b ut a rg uab ly

m ost c riti c al, m is c o ncep ti o n to a d dre ss.

If w e th in k a b out s a le s r e p b ehav io r a lo ng a s p ectr u m , w e c an a rra y i t a s y o u s e e i n f ig ure 7 .1 , w ith

“ p assiv e” b ehav io r o n o ne e nd a nd “ aggre ssiv e” b ehav io r o n th e o th er.

Passiv e b ehav io r, o f c o urs e , is re la ti v ely se lf- e xp la nato ry . T he re p g iv es in to th e d em and s o f

o th ers , u se s a cco m modati n g la nguage, a nd a llo w s h is p ers o nal b ound arie s to b e b re ached b y th e

c usto m er. S ound fa m ilia r? T hese a re th e h allm ark s o f th e R ela ti o nsh ip B uild er. T he p assiv e re p ’s

p rim ary g o al i s to

ple a se

th e c usto m er. T hat d esir e i s s o p ow erfu l th at R ela ti o nsh ip B uild ers w ill d o

t h in gs th at a re n o t i n th eir b est i n te re sts o r i n th eir c o m pany’s b est i n te re sts — fo r i n sta nce, p ro acti v ely

o ffe rin g a d is c o unt w hen th e c usto m er h asn ’t e v en a sk ed f o r o ne.

S ourc e: S ale s E xecuti v e C ouncil r e se arc h.

Fig ure 7 .1 .

R ep B ehav io r S pectr u m , P assiv e to A ggre ssiv e

There ’s littl e c o nfu sio n a m ong s a le s le ad ers a b out w hat p assiv e b ehav io r is ; th e r e al c o nfu sio n is

b etw een a sse rti v e a nd a ggre ssiv e.

The p rim ary d iffe re nce b etw een th e tw o is o ne o f p ostu re . W hile a ggre ssiv e p eo ple w ill p urs u e

t h eir g o als b y a tta ckin g o th ers a nd u sin g a nta go nis ti c la nguage, a sse rti v e in d iv id uals a re m uch m ore

c o nstr u cti v e, u sin g s tr o ng l a nguage, p erh ap s, b ut n o t s o s tr o ng th at i t’ s o ff- p utti n g o r o ffe nsiv e. S o th e

r e p p ush es th e c usto m er, b ut d oes s o w ith r e sp ect a nd s e nsiti v ity to h o w th e c usto m er i s r e acti n g. T he

r e p d oesn ’t b lin d ly p urs u e his o w n agend a, b ut in ste ad m oves p urp ose fu lly , alw ays se nsin g and

r e sp ond in g.

Take th e e xam ple o ne o f o ur m em bers s h are d w ith u s. O ne o f h is c o m pany’s s a le s r e p s w as s e llin g

p ain t to a l a rg e p ro ducti o n l in e i n e arly 2 009. H is c o m pany h ad p oor m arg in s d ue to th e c o m peti ti v e

e nv ir o nm ent e xacerb ate d b y ra p id e sc ala ti o ns in ra w m ate ria l c o sts . T he re p fo r th e p ain t s u p plie r

s e nt a p ric e i n cre ase l e tte r to p urc hasin g a nd f o llo w ed u p w ith a v is it to d is c uss th e j u sti fic ati o n a nd

t o g ain a gre em ent fo r a p ric e m ove a t th e b egin nin g o f th e n ext q uarte r. T he p urc hasin g m anager,

h o w ev er, f la tl y r e fu se d to ta ke a p ric e i n cre ase o n th e b asis th at b usin ess w as b ad ( w hic h i t w as). B ut

t h e C halle nger r e p d id n o t r o ll o ver o n h is p ric e. H e s to od h is g ro und d urin g th e i n iti a l v is it a nd tw o

o th ers , c iti n g th e d ra m ati c ally i m pro ved p ro ducti v ity a t th e p ain t p la nt d ue to th e s u p plie r’s i n sta lle d eq uip m ent a nd d ed ic ate d s ta ff. D esp ite th re ats f r o m p urc hasin g o f d ir e c o nse q uences f o r th e i n cre ase

(s e nio r l e ad ers h ip i n v olv em ent, c ancella ti o n o f a l o ng-te rm c o ntr a ct, e tc .) , th e r e p d id n’t c av e.

The re p m ad e a n a p poin tm ent w ith th e p la nt m anager o f th e fa ciliti e s a ffe cte d b y th e in cre ase ,

whic h w ere a ls o th e m ain c o nsu m ers o f th e p ain t a nd th e b enefic ia rie s o f th e s e rv ic e. H e l a id o ut th e

is su e and th e need fo r th e in cre ase . H e th en re v ie w ed all o f th e p ro je cts th at his co m pany had

co m ple te d to im pro ve p ro ducti v ity a t th e s ite s. T he p la nt m anager c alle d in h is le ad ers h ip te am to

co nfir m w hat th e s a le s r e p w as te llin g h im . T hey s u p porte d h is v alu e c la im s. T he r e p th en a sk ed th e

pla nt m anager to s e t u p a jo in t m eeti n g w ith th e r e p a nd p urc hasin g to g ain s u p port fo r th e in cre ase .

He d id s o a nd th e i n cre ase w as u lti m ate ly a ccep te d .

In th is c ase , th e r e p s to od h is g ro und a nd w as e xtr a o rd in arily a sse rti v e, b ut n o t a ggre ssiv e. W hile

he w as c erta in ly c lo se to th e e d ge w ith p urc hasin g, h e m ad e h is v alu e c ase a nd s tu ck w ith i t.

Now , w hat’ s in te re sti n g a b out th is c o nti n uum is h o w c o ncern ed s a le s le ad ers a re th at th eir s a le s

re p s a re g o in g to d rift to o f a r to th e a ggre ssiv e e nd o f th e s p ectr u m . T he g enera l f e ar i s th at i f y o u te ll

yo ur re p s to ta ke c o ntr o l b y b ein g m ore a sse rti v e, th ey’re g o in g to ju m p o ver th e m id dle o f th e

co nti n uum a nd m ove s tr a ig ht to a ggre ssiv e.

But in re ality , w e fin d th at alm ost nev er hap pens. M ore o fte n th an no t, re p s w ill co nti n ue to

gra v ita te to th e p assiv e e nd o f th e c o nti n uum ra th er th an m ove to th e rig ht a t a ll. T hey g et stu ck

se ekin g to r e so lv e te nsio n w ith th e c usto m er, r a th er th an m ain ta in i t.

Why does th is hap pen? Fir s t, th ere is a perc eiv ed pow er im bala nce in th e re p -c usto m er

re la ti o nsh ip . R ep s th in k th at th e c usto m er h as s ig nific antl y m ore p ow er i n th e r e la ti o nsh ip . T here fo re ,

th ey g iv e in to c usto m er d em and s fo r b ette r te rm s a nd c o nd iti o ns b ecause th ey fe el th ey h av e n o

cho ic e. T hey o fte n b ack d ow n b efo re th ey e v en u nd ers ta nd fu lly

why

th e c usto m er is m akin g th e

re q uest! F or th e av era ge re p , it’ s eith er acq uie sc e q uic kly o r lo se th e d eal. B ut as re al as th at

perc ep ti o n m ay b e, i t tu rn s o ut th at r e ality i s to ta lly d iffe re nt.

A r e cent s u rv ey b y B ayG ro up In te rn ati o nal o f s a le s r e p s a nd p ro cure m ent o ffic ers d ete rm in ed th at

75 p erc ent o f re p s b elie v e th at p ro cure m ent has m ore p ow er, w hile 7 5 p erc ent o f p ro cure m ent

offic ers b elie v e th at r e p s h av e m ore p ow er! A t th e v ery l e ast, th is d ata te lls u s th at i f r e p s a re g iv in g

in b ecause th ey b elie v e th e c usto m er to h av e m ore p ow er, th ey’re ju st p la in w ro ng. A gain , th is is

so m eth in g C halle nger re p s s e em to in sti n cti v ely k no w . T hey d on’t b ack d ow n in th e s a le , b ecause

th ey k no w th ere ’s a lw ays m ore ro om to n ego ti a te th an a c o re p erfo rm er w ould e v er b elie v e. T he

Challe nger j u st k no w s h o w to f in esse — or ta ilo r— it th e r ig ht w ay.

We fin d th at m any sa le s pro fe ssio nals und erv alu e th eir co ntr ib uti o n to th e custo m er. T hey

marg in aliz e th e tr e m end ous v alu e o f th eir co m pany’s re so urc es— no t ju st te chnic al exp erti s e , b ut

im ple m enta ti o n a nd c hange m anagem ent k no w -h o w — and o vere sti m ate th e v alu e o f e v ery o bje cti o n

ra is e d b y th e c usto m er. T his i s o fte n a n a h-h a! m om ent f o r s a le s r e p s w hen w e d eliv er o ur C halle nger

tr a in in g. W e te ll r e p s to th in k a b out th e r e so urc es th ey h av e a t th eir d is p osa l to h elp th eir c usto m ers

get b ette r. T o q uo te o ne o f o ur S E C S olu ti o ns fa cilita to rs : “ T hin k a b out it. Y ou a re te achin g y o ur

custo m ers th in gs th at th ey d id n’t k no w b efo re . Y ou h av e p ra cti c al e xp erie nces fr o m h und re d s, if n o t

th o usa nd s, o f im ple m enta ti o ns, w hile th is m ay b e th e fir s t s u ch im ple m enta ti o n fo r y o ur c usto m er.

Takin g c o ntr o l m eans th at y o u

kn ow

th e v alu e o f th o se re so urc es a nd y o u

don’t

b rin g th em to b ear

willy -n illy o n a c usto m er w ho is n ’t s e rio us a b out th e d ecis io n. If th e c usto m er a sk s fo r a c ase s tu d y,

or to ta lk to a r e fe re nce, a R ela ti o nsh ip B uild er s a ys, ‘ Y es!’ A C halle nger s a ys, ‘ S ure , b ut l e t m e a sk

yo u if th is is th e v ery la st c o nfir m ati o n y o u n eed b efo re w e a gre e to w ork to geth er a nd y o u s ig n th e

pap erw ork .’ W hy? B ecause th e C halle nger is c o nfid ent in th e v alu e h e a nd h is c o m pany b rin g to th e

custo m er.” Ano th er r e aso n m ost r e p s n atu ra lly g ra v ita te to a m ore p assiv e p ostu re is a p erc eiv ed e ro sio n o f

co ntr o l in th e su p plie r-c usto m er re la ti o nsh ip genera lly sp eakin g. T his is m ore of a te m pora l

pheno m eno n, b ro ught o n b y c halle ngin g e co no m ic c o nd iti o ns. In a to ugh e co no m y, a r e p is h ap py to

ta ke a ny b usin ess. T he la st th in g th ey’re g o in g to d o w hen a d eal is o n th e ta b le is p ush b ack o n

pric in g. T he r e p ju st w ants to g et th e th in g c lo se d b efo re th e c usto m er c hanges th eir m in d a lto geth er.

In d iffic ult eco no m ic ti m es, no rm ally asse rti v e re p s b ehav e m ore p assiv ely — and re p s w ho are

no rm ally p assiv e to b egin w ith c av e a lto geth er. I t’ s a b uyer’s m ark et i n l a rg e p art b ecause r e p s m ake

it s o b y c re ati n g f a v ora b le n ego ti a ti n g c o nd iti o ns th at ti p th e s c ale s w ell i n to th e c usto m er’s f a v or.

A s e co nd r e aso n th at w e s e e r e p s b eco m in g m ore p assiv e w ith c usto m ers — and th is o ne h its c lo se

to h o m e— is th at y o u’v e to ld th em to a ct th is w ay. H ow s o ? A s it tu rn s o ut, m anagem ent s tr a te gie s

exacerb ate th e te nd ency fo r m ost r e p s to “ go p assiv e.” If m anagers te ll r e p s to fo cus o n s e rv in g th e

custo m er a nd a d vocati n g f o r th eir n eed s— to “ sit o n th e c usto m er’s s id e o f th e ta b le ”— th is m essa ge i s

ofte n i n te rp re te d b y s a le sp eo ple a s “ giv e th e c usto m er w hate v er th ey w ant.”

We’re h earin g n o w m ore th an e v er b efo re th at s a le s l e ad ers a re u rg in g th eir s a le s o rg aniz a ti o ns to

“p la ce th e custo m er fir s t.” T he te rm “custo m er-c entr ic ity ” is back in a dra m ati c fa sh io n. T he

assu m pti o n i s th at i f c o m panie s w ant to g ro w c o m in g o ut o f th e r e cent d ow ntu rn , th ey’re g o in g to h av e

to e nsu re th at e v ery th in g th ey d o d eliv ers m axim um c usto m er v alu e. T he p ro ble m , h o w ev er, is th at

while c o m panie s h av e b een e m phati c a b out th eir c usto m er-c entr ic ity , th ey’v e b een e q ually v ague w ith

th eir sa le s o rg aniz a ti o ns a b out h o w to a ctu ally d o th at. T here a re se v era l w ays to b e “ custo m er-

centr ic ” th at a re a ctu ally

bad

fo r b usin ess. T w o e xam ple s o f th is th at w e h ear fr e q uentl y fr o m o ur

mem bers a re d is c o unts (o r o th er te rm s a nd c o nd iti o ns th at u nd erm in e p ro fita b ility in e xchange fo r

littl e lo ng-te rm g ain ) a nd a ssu m in g a n o rd er-ta ker p ostu re w ith th e c usto m er (i.e ., ta kin g s h o rt- te rm

ord ers w hen th e c usto m er is p ush in g fo r th em , in ste ad o f g etti n g th e c usto m er to th in k a b out lo nger-

te rm b usin ess). T hese a re th in gs th at d riv e c o m panie s c ra zy, b ut th e m essa ges th ey s e nd o ut to th eir

sa le s fo rc e d o littl e to d is su ad e re p s fr o m th e n o ti o n th at th ese a re g o od th in gs to b e d oin g fo r

custo m ers .

These d riv ers o f o verly p assiv e r e p b ehav io r a re th e th in gs th at s a le s l e ad ers n eed to o verc o m e i f

th ey w ant to b uild C halle nger r e p s c ap ab le o f ta kin g c o ntr o l o f th e s a le . T he r e al q uesti o n is n ’t h o w

to s to p r e p s f r o m b ein g to o a sse rti v e, b ut r a th er h o w to

get

th em to b e a sse rti v e e no ugh. EQ UIP PIN G R EPS T O T A K E C O NTR O L

H ow d o c o m panie s s h ake r e p s o ut o f th eir p assiv e p ostu re ? G etti n g th is r ig ht r e q uir e s th at th ey ta ckle

t h e m ain o bsta cle th at g ets in th e w ay o f th e a v era ge re p ’s b ein g a b le to e ffe cti v ely ta ke c o ntr o l: a

s tr o ng d esir e f o r c lo su re .

Rep s natu ra lly se ek clo su re . Lik e m ost peo ple , th ey are fu nd am enta lly unco m fo rta b le w ith

a m big uity , parti c ula rly because it’ s th at am big uity th at ty p ic ally sta nd s betw een th em and th eir

c o m mis sio n c hecks. T here is a n atu ra l h um an te nd ency— one th at re p s h av e to o verc o m e— to w ant

c lo su re in unco m fo rta b le situ ati o ns. S uccum bin g to th is te nd ency is o ne th at ab so lu te ly kills th e

a v era ge r e p .

Challe ngers , b y c o m paris o n, th riv e i n a m big uity . T hey k no w h o w to n av ig ate i t a nd u nd ers ta nd h o w

i t c an b e l e v era ged to th eir a d vanta ge. T hey d is p la y a r e m ark ab le l e v el o f c o m fo rt w ith s ile nce d urin g

t h e c usto m er c o nv ers a ti o n, a s w ell a s w ith k eep in g n ego ti a ti o n p oin ts a nd c usto m er o bje cti o ns o pen

a nd o n th e ta b le lo nger th an o ne n o rm ally w ould . It m ig ht b e a b it o f a n o vers ta te m ent to s a y th ey

“ lik e” te nsio n, b ut i t p ro bab ly i s n ’t th at f a r f r o m th e tr u th .

Adm itte d ly , th is is a to ugh b arrie r to o verc o m e. It is n ’t re alis ti c to e xp ect re p s w ho d o n o t lik e

t e nsio n a nd a m big uity to s u d denly s ta rt lik in g th ese th in gs. A t s o m e le v el, th is s o rt o f re sp onse is

h ard w ir e d i n m ost o f u s. E ith er w e a re c o m fo rta b le w ith th ese th in gs o r w e a re n’t. A nd i f w e a re n’t,

w e’ll l o ok f o r a ny e xcuse to a v oid th em . B ut w hile y o u c an’t r e alis ti c ally c hange h um an b ehav io r, y o u

c a n

h elp m ake r e p s a w are o f th eir n atu ra l te nd encie s a nd g iv e th em s o m e p ra cti c al to ols fo r m akin g

s u re th at th ey d on’t p re m atu re ly c av e w hen it c o m es to in te nse v alu e d is c ussio ns. T his is w here th e

D uP ont p ra cti c e c o m es in . T hey’v e d ev elo ped s o m e re ally s m art n ego ti a ti o n tr a in in g a nd to ols fo r

h elp in g r e p s to a v oid p re m atu re c lo su re . TA K IN G C O NTR O L C ASE S T U DY: D UPO NT’S C O NTR O LLED

NEG OTIA T IO N R O AD M AP

A s w e g o th ro ugh th e D uP ont c ase , b ear in m in d th at th is p ra cti c e fo cuse s e xclu siv ely o n ta kin g

c o ntr o l in n ego ti a ti o n se tti n gs. W hile C halle ngers ta ke c o ntr o l th ro ugho ut th e sa le , th e n ego ti a ti n g

t a b le is s ti ll a g re at p la ce to s tu d y th is n o ti o n. A nd D uP ont o ffe rs a te rrific e xam ple o f h o w to e q uip

r e p s to p ush c usto m ers i n a n a sse rti v e b ut n o t a ggre ssiv e m anner.

Takin g c o ntr o l is a ll a b out c re ati n g c o nstr u cti v e te nsio n— ab out c halle ngin g th e w ay a c usto m er

s e es th eir w orld , a nd p ush in g b ack c o nstr u cti v ely i n to ugh n ego ti a ti o ns. A t D uP ont, th ey’v e e m plo yed

s o m e p ow erfu l to ols to h elp r e p s o verc o m e th eir n atu ra l in clin ati o n to g iv e in to c usto m er d em and s

t o o e arly i n th e s a le . D uP ont w ork ed w ith n ego ti a ti o n tr a in in g v end or B ayG ro up I n te rn ati o nal, th o ugh

i t is w orth n o ti n g th at s e v era l v end ors o ffe r ro bust n ego ti a ti o n tr a in in g p ro ducts th at S E C m em bers

h av e b een h ap py w ith .

The g o al in D uP ont’ s c ase is v ery str a ig htf o rw ard . T his is a b out ta kin g c o ntr o l— th e th ir d k ey

i n gre d ie nt to b uild in g C halle nger r e p s— and a n a re a w here w e c an h av e a h uge i m pact i f w e f o llo w a

r e cip e l ik e th is . Purp ose fu l P la nnin g

D uP ont is th e p ro vid er o f a w id e ra nge o f in no vati v e p ro ducts and se rv ic es so ld acro ss m any

i n d ustr ie s, in clu d in g a gric ultu re , e le ctr o nic s, tr a nsp orta ti o n, c o nstr u cti o n, a nd s a fe ty a nd p ro te cti o n.

T he k ey to D uP ont’ s a p pro ach to e q uip pin g r e p s to ta ke c o ntr o l a t th e n ego ti a ti n g ta b le i s th is : Y ou’v e

g o t to h av e a p la n. T he o nly w ay th at r e p s a re g o in g to h av e th e c o nfid ence to n o t b ack d ow n fr o m

c halle ngin g th e c usto m er i s i f th ey’v e b uilt a s tr a te gy f o r d oin g th at i n a d vance o f th e s a le s c all i ts e lf.

DuP ont p ro vid es re p s w ith a sim ple te m pla te fo r p re nego ti a ti o n p la nnin g b ase d o n B ayG ro up

I n te rn ati o nal’s

Situ atio nal S ale s N eg otia tio n

™ (S SN ™ ) m eth o dolo gy. T he S SN te m pla te its e lf is

b rie f, b ut th e r a nge a nd v alu e o f i n fo rm ati o n th at’ s c o lle cte d i s w hat’ s c riti c al h ere ( s e e f ig ure 7 .2 ) a s

a ll o f th is in fo rm ati o n to geth er p ro vid es p ow erfu l p ers p ecti v e, a nd p uts th e re p in a sig nific antl y

b ette r p ositi o n w hen i t c o m es ti m e to n ego ti a te .

This to ol i s a ll a b out e nsu rin g th at r e p s h av e th e s k ills a nd to ols to n ego ti a te e ffe cti v ely r a th er th an

g iv e in w hen th e c usto m er a sk s fo r c o ncessio ns. T he S SN te m pla te a sk s re p s to n o te th e re la ti v e

“ p ow er positi o ns” of th e su p plie r— ev ery th in g fr o m pro ducts to bra nd , pric in g, se rv ic e, and

r e la ti o nsh ip s. T he id ea h ere is to g et d ow n o n p ap er a ll o f th e a re as in w hic h w e h av e re la ti v e

s tr e ngth s w ith th e c usto m er a nd a ll th e w ays th at w e h av e r e la ti v e w eaknesse s. D one w ell, th e d eta il

i n th is fir s t s e cti o n a lo ne w ill p ro vid e th e re p w ith a b ette r s e nse o f th e la rg er v alu e h er c o m pany

b rin gs to th e ta b le a nd w ill b uild th e r e p ’s c o nfid ence to d em and a g re ate r p ric e f o r th at v alu e.

S ourc e: S SN N ego ti a ti o n P la nner™ and © 2 009; B ayG ro up In te rn ati o nal, In c., S ale s E xecuti v e

C ouncil r e se arc h.

Fig ure 7 .2 .

N ego ti a ti o n A naly sis a nd A cti o n P la n

The S SN te m pla te a ls o fo rc es D uP ont re p s to th in k in a d vance a b out a ll o f th e in fo rm ati o n th ey

n eed to g et f r o m th e c usto m er a nd to l is t th e s p ecific q uesti o ns th ey’re g o in g to a sk to f in d th o se th in gs

o ut. L ik ew is e , i t a sk s th e r e p to d eta il th e i n fo rm ati o n th e c usto m er i s l ik ely g o in g to w ant to k no w s o

t h at th e r e p i s r e ad y i n th e m eeti n g to p ro vid e i t o r p ro te ct i t, a s th e c ase m ay b e. Next, w hat d iffic ult q uesti o ns a nd o bje cti o ns is th e re p lik ely to g et fr o m th e c usto m er a nd h o w

exactl y d oes th e r e p p la n to r e sp ond ? I t’ s a lw ays b ette r to p re p are a nsw ers i n a d vance, r a th er th an b e

fo rc ed to c o m e u p w ith a r e sp onse o n th e fly , b ecause th at a lm ost in ev ita b ly le ad s to g iv in g in w ay

to o e arly to c usto m er d em and s. T his i s f o llo w ed b y a n e xam in ati o n o f th e s p ecific th in gs th e s u p plie r

is lo okin g fo r in th e d eal— th in gs th ey can nego ti a te o n and a se rie s o f hyp oth ese s aro und th e

custo m er’s n eed s a s w ell.

Fin ally , th e S SN te m pla te a sk s re p s to d o a n a naly sis o f p ossib le c o ncessio ns to o ffe r to th e

custo m er a nd c o ncessio ns to r e q uest fr o m th e c usto m er. F or e xam ple , th e c usto m er m ig ht a sk th e r e p

to g iv e in o n p ric e a nd th e re p m ig ht a sk th e c usto m er to g iv e in o n so m e o f th eir c usto m iz a ti o n

dem and s. H ere , th e te m pla te a sk s th e re p to s c o re th e v alu e o f th o se c o ncessio n ite m s fo r b oth th e

su p plie r and custo m er. F or exam ple , th e re p m ig ht d ete rm in e th at o ffe rin g th e custo m er a p ric e

co ncessio n r e fle cts a 5 i n te rm s o f c o st to th e s u p plie r, p erh ap s b ecause th ey r u n o n v ery th in m arg in s,

but o nly a 2 to th e c usto m er in te rm s o f v alu e, s in ce th ey’re p rim arily c o ncern ed n o t w ith p ric e b ut

with th e q uality a nd w ork ab ility o f th e p ro duct.

As y o u c o nsid er th is p la nnin g m eth o d, a sk y o urs e lf h o w m any o f y o ur r e p s ta ke th e ti m e to m ap o ut

th is k in d o f i n fo rm ati o n

prio r

to a n ego ti a ti o n, p arti c ula rly o ne w here p ric e i s l ik ely to c o m e u p a s a

sti c kin g p oin t. R em em ber, w in nin g th o se c o nv ers a ti o ns is w hat r e ally s e ts th e C halle nger a p art. T he

Challe nger r e p h as a s c o re card l ik e th is w ir e d i n to h er b ra in . T his i s h o w s h e s e es th e w orld , a nd i t’ s

what a llo w s h er to p ush b ack o n th e c usto m er w hen th e ti m e c o m es. P ut a no th er w ay, th e S SN

te m pla te is a p ro xy fo r w hat C halle nger re p s d o n atu ra lly . T his is h o w y o u c ap tu re th e m agic o f

Challe nger r e p p re -c all p la nnin g a nd p ut i t o n o ne s h eet o f p ap er.

Ask in g y o ur r e p s to u se a to ol lik e th is p uts y o u o ne s te p c lo se r to g iv in g th em th e c o nfid ence to

hang to ugh w hen th e c o nv ers a ti o n tu rn s m ore d iffic ult. It a ls o fo rc es th em to p la y o ut th e n ext fe w

in te ra cti o ns in th e nego ti a ti o n. S ale s E xecuti v e C ouncil re se arc h sh o w s th at one of th e big gest

diffe re nti a to rs o f h ig h-p erfo rm in g re p s is th e a m ount o f ti m e th ey s p end p la nnin g— th is is a p rim e

exam ple . L ik e a g re at c hess p la yer, h ig h p erfo rm ers a re fo cuse d n o t ju st o n th e c urre nt m ove, b ut o n

th e s c enario s th at w ill p la y o ut s e v era l m oves a head .

Dup ont f o und th at f o r m ost r e p s, b ein g a sse rti v e ta kes p ra cti c e a nd p la nnin g. T his i s h o w y o u p ut a

str u ctu re a ro und b oth . If y o u w ere to g iv e th is s h eet to te n o f y o ur r e p s n ext w eek— rig ht b efo re th ey

calle d o n a c usto m er— would th ey b e a b le to fill it o ut? If th e a nsw er is tr o ub lin g, c hances a re

extr e m ely go od th at yo ur re p s are giv in g in to custo m er d em and s to o early b ecause th ey’re no t

eq uip ped to p ush b ack i n th e m om ent. T hey’re n o t e q uip ped to c halle nge.

What e ls e c an y o u d o to e q uip r e p s to c halle nge th e c usto m er’s d em and s o nce th ey’re in th e s a le s

call i ts e lf a nd th e c usto m er s ta rts p la cin g d em and s o n th e d eal? Anato m y o f a S ucce ssfu l N egotia tio n

N av ig ati n g to ugh c usto m er c o nv ers a ti o ns is o ne o f th o se th in gs th at a lw ays se em s a littl e b it lik e

m agic . S om e p eo ple ju st s e em to b e a b le to d o it in cre d ib ly w ell— but it’ s n ev er c o m ple te ly c le ar

h o w . B ut w hat ta ngib le s te p s c an y o u ta ke to h elp r e p s ta ke c o ntr o l i n th e c o nv ers a ti o n i ts e lf?

DuP ont has dem ysti fie d th e pro cess by boilin g it dow n to a fo ur-s te p fr a m ew ork base d on

B ayG ro up In te rn ati o nal’s m eth o dolo gy a nd th en u se d th e fr a m ew ork to p ut re p s th ro ugh a tw o-d ay

S itu atio nal S ale s N eg otia tio n

w ork sh o p fo cuse d o n b re akin g sa le s re p s’ te nd ency to g iv e in to o

s o on.

1. A ckno w le d ge a nd D efe r

2. D eep en a nd B ro ad en

3. E xp lo re a nd C om pare

4. C onced e A cco rd in g to P la n

Thin k o f th is a s a r o ad m ap fo r m ain ta in in g c o nstr u cti v e te nsio n w ith in a n ego ti a ti o n. T his is th e

k in d o f s tu ff y o ur C halle ngers d o n atu ra lly a nd th e p la ce w here e v ery o ne e ls e n eed s e xactl y th is k in d

o f c o ncre te g uid ance.

How d oes i t a ll w ork ? L et’ s s ta rt w ith A ckno w le d ge a nd D efe r.

How d o y o u d efe r a c usto m er d em and f o r a c o ncessio n— sa y a p ric e d is c o unt— with o ut th re ate nin g

t h e d eal? H ere , D uP ont h as d one s o m eth in g v ery s m art a nd v ery s tr a ig htf o rw ard . T hey’v e g iv en r e p s

t h e a ctu al w ord s to s a y w hen th at m om ent c o m es.

While i t d oesn ’t h av e to b e v erb ati m , r e p s a re e nco ura ged to s a y s o m eth in g l ik e, “ I u nd ers ta nd th at

p ric e is s o m eth in g w e n eed to a d dre ss, b ut b efo re w e d o, I’ d lik e to ta ke a m om ent to m ake s u re I

c o m ple te ly u nd ers ta nd y o ur n eed s— so w e c an m ake s u re w e’re d oin g e v ery th in g w e c an to m ake th is

d eal a s v alu ab le a s p ossib le f o r y o u. I s th at a ll r ig ht? ”

It’ s a re la ti v ely s im ple re q uest, b ut th ere ’s a lo t g o in g o n h ere . T he re p h as p ro m is e d c lo su re —

w hic h th e c usto m er w ants j u st a s m uch a s th e r e p — but h as a ls o w on p erm is sio n to p ro ceed , a ssu m in g

s h e g ets it. A nd th at’ s im porta nt, b ecause y o u h av e to w in th e c usto m er’s p erm is sio n to d efe r. If y o u

d on’t, th ey’re n o t g o in g to lis te n to a nyth in g y o u s a y n ext. T his is a k ey m is ta ke n o n-C halle nger r e p s

m ake a ll th e ti m e— th ey ra re ly s e ek to d efe r a t a ll. A nd if th ey d o, it’ s w ith o ut c usto m er c o nse nt,

w hic h m eans th ey r is k c o m in g a cro ss a s d is m is siv e, o r w ors e , a ggre ssiv e.

Once s h e h as p erm is sio n to c o nti n ue, th e r e p i s o n to th e n ext tw o s te p s: D eep en a nd B ro ad en a nd

E xp lo re a nd C om pare , w hic h w e’ll e xam in e i n p ara lle l.

At th is p oin t, th e r e p h as b ought s o m e ti m e b ut h as a ls o c re ate d s o m e te nsio n in th e c o nv ers a ti o n.

S o n o w th e r e p n eed s a w ay to m anage th at te nsio n a nd h av e th e c o nfid ence to p ush f o rw ard . D uP ont

t r a in s r e p s o n a s p ecific te chniq ue to g et th e d eal to a b ette r p la ce w hen a c usto m er p ush es b ack o n

p ric e. A s w e g o th ro ugh it, y o u’ll s e e th at w hat m akes it s o p ow erfu l is th at it’ s a s tr a ig htf o rw ard ,

r e p eata b le te chniq ue th at c an b e c o pie d a nd l e arn ed b y n o n-C halle nger r e p s.

For D eep en and B ro ad en, D uP ont pro vid es re p s w ith ta cti c s fo r unco verin g th e custo m er’s

u nd erly in g need s, and fo r E xp lo re and C om pare , re p s are tr a in ed o n ta cti c s fo r co m parin g and

e v alu ati n g th e a d diti o nal n eed s i d enti fie d d urin g th e c o nv ers a ti o n.

The p rim ary id ea h ere is to e xp and th e c usto m er’s v ie w o f th e th in gs th at a re im porta nt to th em .

W hat e ls e b esid es p ric e m atte rs ? M ayb e i t’ s th e w arra nty , o r th e s e rv ic e p la n, o r e xp ed ite d s h ip pin g,

o r i n sta lla ti o n. G et i t a ll o ut o n th e ta b le s o th at p ric e i s n o l o nger th e o nly n ego ti a b le i n p la y. D urin g th e D eep en a nd B ro ad en p hase , th e D uP ont s a le s r e p o fte n s ta rts w ith g etti n g th e c usto m er to s im ply

re sta te th in gs th e r e p a lr e ad y k no w s th e c usto m er l ik es a b out th e D uP ont o ffe rin g.

Once th e r e p h as b ro ad ened th at u niv ers e a s m uch a s p ossib le , s h e c an s ta rt to s h rin k i t b ack d ow n,

co m in g b ack to p ric e, b ut i n a v ery s p ecific m anner. I n th is te chniq ue, r e p s d on’t r u n d ir e ctl y to “ I c an

giv e y o u 1 0 p erc ent, n o t 2 0 p erc ent.” In ste ad , th e c o nv ers a ti o n s ta rts w ith , “ W hat a re y o u lo okin g to

achie v e w ith a 2 0 p erc ent p ric e r e d ucti o n?” T he i d ea i s to u nco ver th e r a ti o nale f o r th e r e q uest, a s th e

ap pro pria te r e sp onse w ill d ep end o n th at r a ti o nale .

Ofte n th e r e aso n f o r th e r e q uest i s s o m eth in g th at c an b e a d dre sse d i n s o m e o th er w ay— as i t’ s o fte n

driv en le ss b y e co no m ic n eed a nd m ore b y th e c usto m er’s d esir e to a chie v e a sp ecific b usin ess

outc o m e, s u ch a s p ro ducti o n c o st r e d ucti o ns.

So l o ok a t w hat y o u’re n ego ti a ti n g o ver n o w . I t’ s n o t j u st p ric e, b ut a ll o f th e o th er w ays i n w hic h

th e s u p plie r c re ate s v alu e f o r th e c usto m er a nd h elp s to s o lv e th eir k ey c halle nges. D oin g th is , th e r e p

has s ig nific antl y e xp and ed th e o pti o ns fo r n ego ti a ti o n. T he r e p ’s n o w in a m uch b ette r p la ce to o ffe r

co ncessio ns th at are le ss p ain fu l to th eir to p-lin e re v enue— and p ote nti a lly o pti o ns th e custo m er

valu es m ore . A s th ey m ove to c o m parin g v ario us tr a d e-o ffs w ith th e c usto m er, th is is w here a ll th e

pre p w ork th ey d id w ith th e p re -c all p la nnin g to ol b eco m es s o in cre d ib ly im porta nt. If th ey’v e d one

th eir h o m ew ork w ell, th ey k no w th e c o st- to -v alu e tr a d e-o ff fo r e ach o ne o f th e s o lu ti o n e le m ents fo r

th eir c o m pany.

This b rin gs u s to th e f in al m ile o f n ego ti a ti o n: C onced e A cco rd in g to P la n. T his i s n ’t j u st a f u n p la y

on w ord s. R ep s a re ta ught th e i m porta nce o f p ro ceed in g a cco rd in g to a c are fu lly p la nned n ego ti a ti o n

str a te gy th at tr a d es a w ay l o w -v alu e s o lu ti o n e le m ents f ir s t b efo re d efa ulti n g to p ric e. I n o th er w ord s,

dete rm in in g

what

y o u’re w illin g to c o nced e i s i m porta nt . . . b ut w hat i s o fte n o verlo oked i s

how

a nd

when

in th e n ego ti a ti o n th o se c o ncessio ns s h o uld b e g iv en. T here a re m any d iffe re nt w ays to m ake

co ncessio ns to a c usto m er; e ach c an s e nd a v ery d iffe re nt m essa ge to th e c usto m er, e v en w hen y o u

ulti m ate ly a chie v e th e e xact s a m e r e su lts .

DuP ont te aches th eir re p s to av oid certa in co ncessio n patte rn s— su ch as sta rti n g w ith sm all

co ncessio ns a nd th en o ffe rin g b ig ger o nes a s th e n ego ti a ti o ns p ro gre ss, o r p utti n g a “ ta ke it o r le av e

it” o ffe r o n th e ta b le — because th ese a p pro aches a re n o t j u st r is k y, th ey c an l e av e th e c usto m er f e elin g

cheate d . In ste ad th ey te ach r e p s to c o nced e n ego ti a b le s in a n o rd er a nd a n a m ount th at e nsu re s b oth

parti e s fe el th ey’re w in nin g. F or in sta nce, th ey te ach r e p s to s ta rt w ith a m eanin gfu l c o ncessio n a nd

th en to o ffe r s m alle r a nd s m alle r c o ncessio ns a s n ego ti a ti o ns c o nti n ue.

Techniq ues lik e th is help D uP ont re p s m anage te nsio n in a co nstr u cti v e m anner. T hat’ s no t

so m eth in g n o n-C halle nger re p s w ould h av e k no w n h o w to d o o th erw is e . T he p oin t h ere is to g iv e

th em th e i n fo rm ati o n th ey n eed to m ake b ette r c ho ic es w hen i t c o m es to n ego ti a ti o n a nd to u nd ers ta nd

th e i m plic ati o ns a nd p ossib le r e p erc ussio ns o f e m plo yin g o ne o f th ese s tr a te gie s v ers u s a no th er. T his

is h o w y o u s e t th em u p f o r s u ccess w hen th ey c halle nge.

To re ally g et th e fe el fo r th e d iffe re nce, d urin g th e S itu ati o nal S ale s N ego ti a ti o n sk ill- b uild in g

work sh o ps D uP ont r e p s r o le -p la y d iffe re nt c o ncessio n p atte rn s a nd th en d is c uss h o w th ey fe el w hen

th e n ego ti a ti o n e nd s. T his s e rv es to i llu str a te th e e ffe ct th at d iffe re nt c o ncessio n p atte rn s w ill h av e o n

custo m ers and ulti m ate ly giv es re p s th e co nfid ence th at th ey hav e a sm art p la n to getti n g to an

agre em ent— one th at w ill l e av e th e c usto m er f e elin g th at th ey w on, r a th er th an th at th ey g o t c heate d . A W ORD O F C AU TIO N

W hile th e D uP ont c ase fo cuse s o n ta kin g c o ntr o l w ith in th e n ego ti a ti o n p hase o f th e s a le , a n e arlie r

p oin t i n th is c hap te r b ears r e p eati n g h ere : T akin g c o ntr o l h ap pened

th ro ughout

th e s a le s p ro cess, n o t

j u st th e e nd o f i t. I n o ur C halle nger D ev elo pm ent P ro gra m , m uch o f th e “ ta kin g c o ntr o l” m odule i s n o t

f o cuse d o n n ego ti a ti o n a t a ll. It’ s a p oin t w e re ally h am mer h o m e: T akin g c o ntr o l

has to

hap pen

t h ro ugho ut th e sa le , le st it end up fe elin g “fa ke” (o r, w ors e , d is in genuo us o r o ff- p utti n g) to th e

c usto m er.

We s h are s e v era l p ra cti c al e xam ple s a nd te chniq ues f o r d oin g th is . O ne o f th e b asic te chniq ues w e

f o cus o n is m akin g p ow erfu l re q uests , w hic h s h o uld b e d one th ro ugho ut th e s a le . M akin g p ow erfu l

r e q uests h elp s th e c usto m er u nd ers ta nd th at th e r e p is h ere to m ove th in gs fo rw ard ; it is a g re at to ol

f r o m th e C halle nger’s “ ta kin g c o ntr o l” to olk it.

How d oes it w ork ? H ere ’s a q uic k e xam ple : A r e p h as s h o w ed h is c usto m er th at th ey a re w asti n g

m illio ns o n fa ciliti e s c o sts b ecause o f th eir in effic ie nt se rv er m anagem ent. T he p ro pose d so lu ti o n

w ill s a v e th e c usto m er a g o od d eal o f m oney, b ut o th ers n eed to b e i n v olv ed i n th e p urc hase d ecis io n

i f it’ s to m ove fo rw ard . A p ow erfu l r e q uest m ig ht s o und s o m eth in g lik e th is : “ F ro m o ur d is c ussio n,

w e’v e a gre ed th at th e im ple m enta ti o n o f a r a ck-b ase d s e rv er s o lu ti o n w ould s a v e y o u $ 5 m illio n a

y ear. F or y o u to re ap th ese sa v in gs in th e c urre nt fis c al y ear, w e re ally n eed to in sta ll th e n ew

h ard w are s o on. S o to g et s ta rte d , I w ill n eed a s ig ned c o ntr a ct fr o m D av e b y n ext w eek, w hic h w ill

a llo w u s to b rin g th e i m ple m enta ti o n e ngin eers o nsite a nd s ta rt th e p ro cess s o y o u c an h it y o ur s a v in gs

t a rg et.” T his i s j u st o ne e xam ple , w hic h i s f o cuse d o n c lo sin g, b ut th ere a re m any o th ers th at h elp r e p s

u nd ers ta nd h o w to ta ke c o ntr o l e v en e arlie r i n th e s a le s p ro cess. PU LLIN G I T A LL T O GETH ER

T akin g c o ntr o l is th e o ne p illa r o f th e C halle nger S ellin g M odel th at s tr ik es m ost s a le s le ad ers a s

m ore natu re th an nurtu re . B ut w hile it’ s tr u e th at it help s fo r re p s to hav e b een b orn w ith th e

“ asse rti v eness g ene,” it is b y n o m eans a re q uir e m ent fo r th em to b e su ccessfu l. T he so lu ti o n to

o verc o m in g p assiv ity i s s tr a ig htf o rw ard : T each r e p s th e i m porta nce o f c la rity o f d ir e cti o n o ver q uic k

c lo su re , a nd te ach th em h o w to c re ate re al v alu e w ith in th e s a le s p ro cess. W hen c o m bin ed , th ese

s k ills c an h elp a ny s a le s r e p to c re ate a p ow erfu l p ro xy f o r n atu ra l a sse rti v eness. 8

TH E M ANAGER A ND T H E C HA LLEN GER S ELLIN G M ODEL

S O F A R W E’V E

f o cuse d o n th e r e p s k ills a nd o rg aniz a ti o nal c ap ab iliti e s r e q uir e d to i m ple m ent th e

C halle nger S ellin g M odel. B ut a nyb ody w ho ’s e v er a tte m pte d to e xecute l a rg e-s c ale c hange w ith in a

s a le s o rg aniz a ti o n w ill k no w th ere ’s o ne g la rin g o m is sio n to th is s to ry : th e f r o ntl in e s a le s m anager.

As a re se arc h o rg aniz a ti o n d ev ote d to im pro vin g s a le s p erfo rm ance, w e’v e s tu d ie d n early e v ery

t o pic in th e s a le s w orld , a nd th e m essa ge in th e d ata is a lw ays th e s a m e: If y o u d on’t g et fr o ntl in e

s a le s m anagers o n b oard , th e in iti a ti v e w ill fa il. W heth er it’ s changes to co m p p la ns, th e C RM

s y ste m , th e s a le s p ro cess, o r m ore b asic s k ills a nd b ehav io rs , it a lw ays c o m es b ack to th e m anager.

T he fr o ntl in e s a le s m anager in a ny s a le s o rg aniz a ti o n is th e fu nd am enta l lin k b etw een s tr a te gy a nd

e xecuti o n— th is i s w here c hange i n iti a ti v es a nd s a le s f o rc e tr a nsfo rm ati o ns l iv e o r d ie .

Im ple m enti n g th e C halle nger S ellin g M odel i s n o d iffe re nt. Y ou c anno t e xp ect to s u ccessfu lly b uild

a C halle nger s a le s o rg aniz a ti o n i f y o ur f r o ntl in e s a le s m anagem ent l a yer i s b ro ken. I t’ s th e l in chp in i n

t e rm s o f m akin g th e m odel w ork . W hile th is p oin t m ay b e o bvio us to th e s e aso ned s a le s l e ad er, w hat

s a le s o rg aniz a ti o ns c an a ctu ally d o to b oost m anager e ffe cti v eness is le ss s o . W hile th ere is ra th er

b ro ad c o nse nsu s th at m anager q uality is th e m ost im porta nt le v er fo r d riv in g r e p p erfo rm ance, s a le s

l e ad ers te nd to v ie w m anager e ffe cti v eness a s a s o rt o f e nig m a. A s o ne o f o ur m em bers to ld u s, “ I

k no w th at m anager s u ccess is c ru cia l to m y o vera ll s u ccess; p ro ble m is , I d on’t k no w w hat to d o

a b out i t.”

And th at c o ncern is w id esp re ad , e sp ecia lly a s s a le s le ad ers lo ok to th e fu tu re . In fa ct, w hen w e

a sk ed S E C m em bers a b out m anager c ap ab ility , a s h o ckin g 6 3 p erc ent r e p orte d th at th eir m anagers d o

n o t h av e th e s k ills a nd c o m pete ncie s th ey n eed a s th eir s a le s m odel e v olv es, to s a y n o th in g o f th e 9

p erc ent o f m anagers w ho d on’t e v en h av e th e s k ills r e q uir e d to b e s u ccessfu l in th eir r o le

cu rre n tly

.

T hre e-q uarte rs o f o ur m em bers s e lf- id enti fy a s h av in g m anagers w ho a re n’t g o in g to p erfo rm in th e

n ew e nv ir o nm ent. A nd th at’ s d eep ly tr o ub lin g. W hile l e ad ers a gre e o n th e f u nd am enta l i m porta nce o f

t h e r o le , v ery fe w fe el c o nfid ent a b out th e a ctu al p eo ple c urre ntl y o ccup yin g th at r o le , a nd m ost a re

e v en l e ss c o nfid ent s ti ll a b out w hat to d o a b out i t. PO RTR AIT O F A W ORLD -C LA SS S A LES M AN AG ER

I n a n e ffo rt to id enti fy th e k ey a ttr ib ute s o f a w orld -c la ss s a le s m anager— th e s k ills , b ehav io rs , a nd

a tti tu d es th at m atte r m ost fo r s a le s m anagem ent e xcelle nce— we c re ate d a s u rv ey w e c all th e S ale s

L ead ers h ip D ia gno sti c . A t la st co unt, m ore th an six ty -fiv e co m panie s hav e ad m in is te re d th is

d ia gno sti c (to m ore th an 1 2,0 00 re p s), a nd w e h av e c o lle cte d d ata o n m ore th an 2 ,5 00 in d iv id ual

f r o ntl in e s a le s m anagers .

As w ith a ny s u rv ey w e c o nd uct, th e d ata i s a s tr o ng, r e p re se nta ti v e s a m ple o f e v ery m ajo r i n d ustr y ,

g eo gra p hy, a nd g o -to -m ark et m odel a cro ss th e C ouncil’s m em bers h ip . I n th e s u rv ey, w e a sk ed r e p s to

a sse ss th eir m anager’s p erfo rm ance a cro ss six ty -fo ur d iffe re nt a ttr ib ute s o f p erfo rm ance, so m e o f

w hic h y o u s e e i n th e f o ur b ro ad c ate go rie s i n th e ta b le o n p age 1 41 a nd a b ove.

Fir s t, w e a sk ed a b out m anagem ent fu nd am enta ls — th in gs lik e in te grity , r e lia b ility , r e co gniti o n, a nd

t e am -b uild in g sk ills . T hese v aria b le s a re n’t n ecessa rily sp ecific to sa le s, b ut th ey a re in cre d ib ly

i m porta nt. S o w e i n clu d ed th em i n o ur a naly sis to u nd ers ta nd h o w th ey c o m pare to o th er a ttr ib ute s i n

t e rm s o f d riv in g m anager p erfo rm ance. S eco nd , w e lo oked at attr ib ute s re la te d to actu al se llin g

a b ility . W hile w e d on’t w ant o ur m anagers s e llin g

fo r

th eir r e p s, i t s ta nd s to r e aso n th at th ey p ro bab ly

d o n eed to k no w h o w to s e ll if th ey’re g o in g to h elp o th ers to d o it b ette r. H ere , w e a sk ed a b out

a ttr ib ute s lik e n ego ti a ti o n s k ills a nd w heth er th e m anager o ffe rs th e c usto m er u niq ue p ers p ecti v es. Thir d , w e ask ed ab out th e m anager’s co achin g sk ills . D o m anagers pre p are fo r and custo m iz e

co achin g i n te ra cti o ns? D o th ey f o llo w th ro ugh o n th eir d ev elo pm ent c o m mitm ents ? L astl y , w e l o oked

at s a le s-s p ecific a sp ects o f le ad ers h ip — th in gs lik e a cco unt p la nnin g, te rrito ry m anagem ent, a nd th e

le v el o f i n no vati o n th e m anager s h o w s i n p ositi o nin g o ffe rs to c usto m ers .

Next, to e nsu re th at w e w ere n’t a llo w in g o ne u nhap py r e p to s k ew o ur r e su lts , w e e xclu d ed th o se

managers fr o m th e a naly sis fo r w ho m w e h ad d ata fr o m fe w er th an th re e re p s. T hen, to m ake th e

re su lts m anageab le , w e a p plie d fa cto r a naly sis to th e d ata , b oilin g it d ow n to th e s m alle st p ossib le

num ber o f s ta ti s ti c ally s ig nific ant g ro up s o r c ate go rie s. T he fa cto r a naly sis to ld u s th at th o se s ix ty -

fo ur v aria b le s f a ll i n to f iv e d is ti n ct c ate go rie s. F in ally , to u nd ers ta nd h o w i m porta nt e ach c ate go ry i s

re la ti v e to th e o th er fo ur, w e ra n a re gre ssio n analy sis o f th o se fa cto rs again st actu al m anager

perfo rm ance— as d ete rm in ed b y b oth th e r e p s a nd th e c o m panie s. A nd th at a llo w ed u s to d ete rm in e,

of a ll th e th in gs a m anager

co uld

b e g o od a t, w hic h o f th ese s ix ty -fo ur s k ills a nd b ehav io rs m atte r

most fo r a ctu al m anager p erfo rm ance— as a sse sse d b y th e r e p s w ho o bse rv e th o se b ehav io rs e v ery

sin gle d ay a s w ell a s b y c o m panie s, w hic h h av e a b ro ad er s e nse o f h o w th o se m anagers m ain ta in a nd

gro w th eir te rrito rie s o ver ti m e. U lti m ate ly , th is e xerc is e g enera te d th e a nsw er to th e k ey q uesti o n o f

manager perfo rm ance, i.e ., th e th e sm alle st num ber of sta ti s ti c ally sig nific ant— and dis ti n ct—

cate go rie s th at, w hen c o m bin ed , e xp la in f r o ntl in e s a le s m anager e xcelle nce.

To in te rp re t w hat w e fo und , le t’ s sta rt b y se p ara ti n g m anagem ent fu nd am enta ls , lik e re lia b ility ,

in te grity , a nd lis te nin g sk ills , fr o m th e m ore sa le s-s p ecific d riv ers o f m anager p erfo rm ance. A s it

tu rn s o ut, m anagem ent fu nd am enta ls a cco unt fo r r o ughly o ne-fo urth o f s a le s m anager s u ccess. T hese

are th e fo und ati o nal sk ills th at a re n ecessa ry fo r su ccess in

any

m anagem ent jo b, ir re sp ecti v e o f

fu ncti o n. Y et in te re sti n gly , w e a ls o fo und th at p erfo rm ance o n th ese a ttr ib ute s d oes n o t fa ll a lo ng a

sp ectr u m b ut te nd s to b e b in ary . E ith er y o u’re r e lia b le o r y o u’re n o t. Y ou h av e i n te grity o r y o u d on’t.

And th at i n tu rn te lls u s th at th ese a re i n here nt tr a its y o u s h o uld b e l o okin g f o r i n th e p eo ple y o u h ir e ,

no t s k ills y o u w ant to b e d ev elo pin g i n y o ur s ta ff o ver ti m e.

Put a no th er w ay, g re at r e p s d on’t n ecessa rily m ake g re at m anagers . Y ou c an’t j u st e xcel a t s a le s to

be a g re at s a le s m anager, y o u’v e a ls o g o t to e xcel a t

managem en t

a s w ell. Y et th at is e xactl y h o w

most c o m panie s sti ll so urc e n ew fr o ntl in e m anagem ent ta le nt. T his a p pro ach to h ir in g is th e ro ot

cause o f m any o rg aniz a ti o ns’ h ig h m anager fa ilu re ra te s. N ot s u rp ris in gly , o ur a naly sis o f m anager

perfo rm ance i n d ic ate s th at a h and fu l o f m anagers ( ro ughly 4 p erc ent i n o ur s a m ple ) f a il o n a t l e ast o ne

of th ese m anagem ent fu nd am enta ls . S o o ne o f th e fir s t re co m mend ati o ns w e m ake to S E C m em ber

co m panie s c o m ple ti n g th e S ale s L ead ers h ip D ia gno sti c is th at th ey fin d n ew p ositi o ns fo r m anagers

who fa ll in to th is 4 p erc ent. B ecause w e h av en’t e v en g o tte n to th e

sa le s-s p ecific

a ttr ib ute s o f a

world -c la ss m anager, a nd th ese p eo ple h av e a lr e ad y f a ile d to m eet th e m anager b ar.

Sourc e: S ale s E xecuti v e C ouncil r e se arc h.

Fig ure 8 .1 .

M anagem ent F und am enta ls A re th e E sse nti a l B ase o f S ale s M anager S uccess

On th e o th er h and , w hile a s ta r r e p tr a ck r e co rd i s n o t a r e lia b le i n d ic ato r o f m anagem ent p ote nti a l,

an a lte rn ati v e lie s in th e d ata p re se nte d in th is c hap te r. A rm ed w ith a n u nd ers ta nd in g o f th e sta r

manager p ro file , o rg aniz a ti o ns c an a d ap t th eir c and id ate a sse ssm ent p ro to co ls to lo ok fo r c and id ate s

who are lik ely to d em onstr a te b ehav io rs kno w n to d riv e su c cessfu l co m merc ia l o utc o m es. A nd

kno w in g th at s o m e o f th ese a ttr ib ute s a re d iffic ult ( if n o t i m possib le ) to d ev elo p o ver ti m e— no ta b ly ,

managem ent fu nd am enta ls lik e in te grity and re lia b ility — th ese are cle arly p la ces w here it m akes

se nse to s c re en u p f r o nt.

How ev er, tr a d iti o nal, in te rv ie w -b ase d asse ssm ent m eth o ds can be unre lia b le in d ic ato rs of

cand id ate p ote nti a l a nd b asic m anagem ent a b ility . A s a r e su lt, w e f in d th at p ro gre ssiv e c o m panie s u se

a v arie ty o f e xp erie nti a l “ liv e fir e ” a sse ssm ent m eth o ds th at le t th em se e a c and id ate

do

th e jo b

befo re g iv in g h im th e jo b. F or e xam ple , o ne la rg e h ig h-te ch m anufa ctu re r u se s a fu ll- d ay s im ula ti o n-

base d sk ills asse ssm ent to pre certi fy exte rn al cand id ate s’ managem ent cap ab iliti e s befo re

em plo ym ent offe rs are exte nd ed . A co nstr u cti o n m ate ria ls su p plie r use s a sim ila r ap pro ach fo r

in te rn al c and id ate s— its p re -p ro m oti o n s a le s m anager s c re enin g e nsu re s th at c and id ate s p osse ss a nd

dem onstr a te th e c o re c o m bin ati o n o f s k ills n ecessa ry to s u cceed a s s a le s m anagers . The S ale s S id e o f S ale s M anager E xce lle nce

I n th e A rm y, th ere ’s a n o ld s a yin g th at a p plie s e q ually w ell to s a le s: “ N o p la n s u rv iv es e ngagem ent

w ith th e enem y.” N o m atte r ho w care fu lly o ne p la ns fo r b attl e , ru nnin g th ro ugh ev ery p ossib le

s c enario o f w hat m ig ht h ap pen a nd w hat m ig ht g o w ro ng, th e r e ality o n th e fie ld w ill in ev ita b ly b e

d iffe re nt.

As a re su lt, A rm y le ad ers hav e ad opte d a sty le o f le ad ers h ip kno w n as C om mand er’s In te nt.

C om mand er’s In te nt is ju st th at: a cle ar, co ncis e sta te m ent o f th e sp ecific go al a co m mand er is

l o okin g to a chie v e. S om eth in g lik e, “ C ap tu re a nd h o ld th at h ill u nti l re in fo rc em ents a rriv e.” In th is

a p pro ach to le ad ers h ip , A rm y le ad ers hav e sto pped giv in g ste p -b y-s te p in str u cti o ns on ho w to

a ctu ally g o a b out c ap tu rin g th e h ill, b ecause th ey’v e l e arn ed th at o nce th eir tr o ops g et o ut i n th e f ie ld

a nd engage in battl e , th ey’re go in g to hav e to quic kly ad ap t to th e situ ati o n on th e gro und in

u nanti c ip ate d w ays.

Not su rp ris in gly , th en, th e fie ld le ad ers w ho e xcel in th e A rm y a re th e o nes w ho a re c re ati v e,

i n no vati v e, and ab le to ad ap t to th eir cir c um sta nces. T yp ic ally , th ey’re th e o nes w ho re co gniz e

p ossib le c o urs e s o f a cti o n th at n o o ne b ehin d th e fr o nt w ould h av e r e co gniz e d in a d vance a nd th en

g uid e th eir tr o ops to v ic to ry th ro ugh c re ati v e i n te rp re ta ti o n o f th eir c o m mand er’s i n te nt. I t’ s p ro ven to

b e a p ow erfu l m anagem ent p hilo so phy th at m atc hes p ro cess o n th e o ne h and w ith e m pow erm ent a nd

i n no vati o n o n th e o th er. W hen v ic to ry i s o n th e l in e, p ut th e b attl e i n th e h and s o f y o ur b est f ie ld -b ase d

l e ad ers — th e o nes w ho id enti fy a w id e ra nge o f cho ic es and d ev elo p an in no vati v e o pti o n th at

s p ecific ally m atc hes th at p arti c ula r s itu ati o n.

As it tu rn s o ut, w hen w e stu d ie d th e sa le s sid e o f m anagem ent excelle nce, th e attr ib ute s th at

a cco unt f o r th e r e m ain in g th re e-q uarte rs o f a s a le s m anager’s s u ccess, w e f o und th e s a m e th in g to b e

t r u e. F ig ure 8 .2 s h o w s th e s a le s a ttr ib ute s th at m atte r m ost f o r m anager e xcelle nce. H ere i s w here o ur

s to ry s h ifts f r o m p re v enti n g f a ilu re to p ro m oti n g s u ccess.

When w e r a n th e a naly sis , w e f o und th at th e a ttr ib ute s c o ntr ib uti n g to m anager e xcelle nce f a ll i n to

t h re e h ig h-le v el c ate go rie s— and th ey’re a b out w hat y o u m ig ht e xp ect: s e llin g, c o achin g, a nd o w nin g.

T his la st c ate go ry is a ll a b out th e v ario us a sp ects o f b usin ess o w ners h ip th at s e nio r le ad ers lik e to

s e e i n m anagers — th e e xte nt to w hic h th ey r u n th eir te rrito ry a s i f i t w ere th eir o w n b usin ess.

Sourc e: S ale s E xecuti v e C ouncil r e se arc h.

Fig ure 8 .2 .

A ttr ib ute s A ffe cti n g F ro ntl in e S ale s M anager P erfo rm ance

Fig ure 8 .2 r e p re se nts th e s ta ti s ti c ally s ig nific ant f a cto rs th at d efin e th e s a le s s id e o f s a le s m anager

excelle nce ( re calib ra te d to 1 00 p erc ent, a s th ey r e p re se nt 1 00 p erc ent o f th e s a le s s id e o f th e jo b).

The fir s t th in g w e c an s a y a b out th is s id e o f th e m anager jo b is th at s e llin g s ti ll m atte rs . T o b e s u re ,

th ese r e su lts a re n’t s a yin g th at y o ur b est m anagers s p end 2 5 p erc ent o f th eir ti m e s e llin g, b ut th ey d o

in d ic ate th at i f w e w ere to e xp la in w hat m akes y o ur b est m anagers s o m uch b ette r th an e v ery o ne e ls e ,

ro ughly 2 5 p erc ent o f th e r e aso n w ould b e b ecause o f th eir g re at s e llin g s k ills .

As a ll s a le s le ad ers k no w , s e llin g s k ills a re n ecessa ry a t ti m es s in ce m anagers a re o fte n a sk ed to

co ver v acant s a le s te rrito rie s, to h elp c lo se th e l a rg est s a le s, o r j u st to f ill i n f o r a r e p w ho m ay b e o n

le av e. B ut m ore to th e p oin t, m anagers a re a ls o e xp ecte d to b e a b le to m odel g re at s e llin g b ehav io rs

fo r th eir te am s.

What’ s esp ecia lly in te re sti n g ab out th e “S ellin g” bar on th is chart, ho w ev er, is th e sp ecific

attr ib ute s th at r o se to th e to p in sid e th at c ate go ry . H ere , w e s e e th at th e s a m e s k ills th at m atte r m ost

fo r m anager s u ccess a re th e e xact

sa m e

s a le s s k ills w e f o und to m atte r m ost f o r r e p s u ccess: “ O ffe rs

th e c usto m er u niq ue p ers p ecti v es,” “ T ailo rs th e o ffe r to th e n eed s o f c usto m ers ,” “ Is c o m fo rta b le

dis c ussin g m oney.” T his im plie s th at yo ur best m anagers are lik ely go in g to co m e fr o m yo ur

Challe nger r a nks, a nd it h elp s e xp la in w hy to p-p erfo rm in g m anagers a re h eav ily s o ught a fte r fo r th e

su p port th ey c an p ro vid e o n th e la rg est, m ost c o m ple x d eals — deals w here C halle nger s k ills , a s w e

hav e s e en, a re m ost n eed ed .

This b rin gs u s to th e se co nd d riv er, c o achin g, w hic h a cco unts fo r 2 8 p erc ent o f fr o ntl in e sa le s

manager effe cti v eness. T he siz e of th is im pact te lls yo u w hat yo u pro bab ly exp ect: C oachin g

ab so lu te ly m atte rs w hen it c o m es to s a le s m anagem ent. It is a k ey e le m ent o f m anager e ffe cti v eness

and , a s w e h av e l o ng a d vocate d to o ur m em bers , a h uge d riv er o f r e p p erfo rm ance a s w ell.

Unlik e s e llin g, h o w ev er, w hic h is a b out a m anager’s a b ility to

be

a r e p w hen n eed ed , c o achin g is

ab out th e m anager w ork in g s id e b y s id e w ith r e p s to s h are h is k no w le d ge, i n sig ht, a nd e xp erie nce to

dia gno se a nd c o rre ct s p ecific r e p b ehav io rs k no w n to h in d er h ig h p erfo rm ance. When w e lo ok a t th e sp ecific a ttr ib ute s o f e ffe cti v e c o achin g, w e fin d th at th e fo cus o f th ese

co achin g e ffo rts , a t l e ast f o r w orld -c la ss m anagers , i s a gain th e s a m e C halle nger s k ills w e s a w i n th e

se llin g cate go ry : “G uid in g re p s to ta ilo r effe cti v ely ,” “S ho w in g re p s ho w and w hen to asse rt

co ntr o l,” “ H elp in g re p s th ro ugh c o m ple x n ego ti a ti o ns

. ” C oachin g is su ch a n im porta nt p art o f th e

manager e ffe cti v eness s to ry th at w e’ll s p end a g o od p orti o n o f th is c hap te r d is c ussin g i t.

That s a id , it’ s n o t th e w ho le s to ry . W hile m any s a le s le ad ers h av e c o m e to s im ply e q uate g o od

managem ent w ith g o od c o achin g, i t tu rn s o ut th at m anager e xcelle nce i s a m atte r o f p ro vid in g n o t

ju st

co achin g b ut le ad ers h ip , d ir e cti o n, a nd g uid ance m ore g enera lly . It’ s a b out d em onstr a ti n g e ffe cti v e

ow ners h ip o f th e b usin ess. In d eed , o ur a naly sis s h o w s th at m ore th an 4 5 p erc ent o f s a le s m anager

excelle nce i s a f u ncti o n o f e xcellin g a t m anagin g th e o vera ll b usin ess. W hile g re at s a le s m anagers a re

fa nta sti c at co achin g th eir re p s, th ey’re ev en b ette r at b uild in g th eir b usin ess. G re at co achin g is

im porta nt, b ut i t’ s s ti ll o nly p art o f th e s to ry .

Yet i f w e w ere to h av e g uesse d , w e w ould h av e s a id th at b ein g a n e ffe cti v e s a le s l e ad er i s m ostl y

ab out h o w o ne a llo cate s r e so urc es— th in gs l ik e d riv in g p ro cess c o m plia nce, c o rre cti n g a cti o ns o ut o f

ste p w ith th at p ro cess, a nd m anagin g r e so urc es a cro ss th e te rrito ry a s e ffic ie ntl y a s p ossib le . B ut it

tu rn s o ut th at’ s n o t th e c ase . A ll o f th ese s k ills a re c ap tu re d in th e re so urc e a llo cati o n c ate go ry —

whic h a t ju st o ver 1 6 p erc ent is th e sm alle st b ar o n th e c hart. W hat th at te lls u s is th at re so urc e

allo cati o n i s n ’t th e m ost i m porta nt p art o f a s a le s m anager’s j o b. I n f a ct, i t’ s th e

le a st im porta nt

p art

of th e m anager’s j o b.

So if “ sa le s le ad ers h ip ” is n ’t a b out re so urc e a llo cati o n, w hat

is

it a b out? W ell, it tu rn s o ut th at

sa le s l e ad ers h ip i s m ostl y a b out h o w i n no vati v e s a le s m anagers a re .

Now “ in no vati o n” is a d m itte d ly a lo ad ed te rm th at c an m ean m any th in gs to m any p eo ple . W hat

we’re re fe rrin g to h ere is m anagers c o lla b ora ti n g w ith re p s to u nd ers ta nd a s d eep ly a s p ossib le

what’ s h o ld in g u p a d eal, fig urin g o ut w hy a nd w here a d eal is r u nnin g in to tr o ub le a t th e c usto m er,

and th en fin d in g in no vati v e w ays to m ove it fo rw ard . It’ s im porta nt th at in no vati o n in th is c o nte xt is

em phati c ally

not

a b out c re ati n g a n ew v alu e p ro positi o n o r in v enti n g a n ew s e t o f c ap ab iliti e s o r

pro duct fe atu re s. T his is ab out cre ati v ely co nnecti n g th e su p plie r’s

exis tin g

cap ab iliti e s to each

custo m er’s u niq ue e nv ir o nm ent a nd th en p re se nti n g th o se c ap ab iliti e s to th e c usto m er th ro ugh th e

sp ecific l e ns o f w hate v er c usto m er o bsta cle i s k eep in g th at d eal f r o m c lo sin g.

This is C om mand er’s In te nt a p plie d to th e w orld o f s a le s. It is a b out c re ati v ely m odify in g d eal-

le v el s a le s s tr a te gy to a d ap t to th e s p ecific c usto m er c o nte xt— th e “ re ality o n th e g ro und ,” a s i t w ere .

What th is “ S ale s In no vati o n” fa cto r te lls u s is th at s ta r-p erfo rm in g m anagers h av e a n u ncanny a b ility

to u nsti c k s tu ck d eals a nd g et th em c lo se d .

Noti c e h o w d iffe re nt th is is fr o m c o achin g. C oachin g is a b out d riv in g p erfo rm ance a ro und k no w n

behav io rs . I t’ s a p erfe ct a p pro ach to s a le s m anagem ent i n a w orld c hara cte riz e d b y a p re d ic ta b le p ath

to s u ccess. I n no vati o n, o n th e o th er h and , i s a b out d riv in g p erfo rm ance th ro ugh u nfo re se en o bsta cle s.

It’ s b est s u ite d to a w orld o f d ynam ic a nd u nexp ecte d e v ents . I n c o achin g, th e m anager a lr e ad y k no w s

th e a nsw er a nd i m parts i t to th e r e p . I n i n no vati o n, n eith er th e r e p n o r th e m anager k no w s th e a nsw er,

so in ste ad th ey c o lla b ora te th ro ugh th e m anager’s le ad ers h ip to d is c o ver a n e ffe cti v e p ath fo rw ard .

You c an’t c o ach w hat y o u d on’t k no w , b ut y o u

ca n

i n no vate .

Arg uab ly th e b ig gest f in d in g f r o m a ll o f o ur w ork o n s a le s m anagers i s j u st h o w i m porta nt th is s k ill

re ally is . A t 2 9 p erc ent, s a le s in no vati o n is th e s in gle b ig gest s a le s-re la te d a ttr ib ute c o ntr ib uti n g to

world -c la ss s a le s m anager p erfo rm ance— more i m porta nt th an s e llin g s k ills a nd m uch m ore i m porta nt

th an a m anager’s a b ility to a llo cate r e so urc es.

While c o achin g i s a c lo se s e co nd a t 2 8 p erc ent, w hat’ s s o i n te re sti n g a b out s a le s i n no vati o n i s th at, unlik e sa le s c o achin g, w hic h h as re ceiv ed a

huge

a m ount o f ti m e a nd a tte nti o n o ver th e la st fiv e

years , it is n ’t so m eth in g th at m ost sa le s le ad ers h av e e v er re ally th o ught a b out in a ny sy ste m ati c

fa sh io n b efo re .

If g iv en a b la nk s h eet o f p ap er a nd a sk ed to l is t th e f o ur to f iv e a ttr ib ute s th at a cco unt f o r m anager

su ccess, h o w m any o f u s, u np ro m pte d , w ould h av e i n clu d ed a nyth in g o th er th an s e llin g, c o achin g, a nd

re so urc e a llo cati o n o n th at l is t? A nd y et th e d ata te lls u s th at s a le s i n no vati o n i s a d is ti n ctl y i m porta nt

se t o f a ttr ib ute s. I n th eir s u rv ey r e sp onse s, r e p s o fte n r a nked a m anager h ig h o n c o achin g a ttr ib ute s b ut

lo w o n s a le s i n no vati o n a ttr ib ute s, o r v ic e v ers a . T he tw o s k ills m oved i n d ep end entl y o f o ne a no th er.

Sale s i n no vati o n i s th e m is sin g l in k i n te rm s o f f u lly r e aliz in g th e b enefits o f th e C halle nger S ellin g

Model. E ven a rm ed w ith th e b est te achin g p itc hes a nd h o ned c ap ab iliti e s fo r ta ilo rin g a nd ta kin g

co ntr o l— ev en w ith str o ng sa le s m anagers w ho co ach to th ese behav io rs and can m odel th e

Challe nger se llin g b ehav io rs th em se lv es— many d eals w ill sti ll n o t h ap pen. W hile th e C halle nger

model i n cre ase s th e l ik elih o od th at d eals w ill m ove th ro ugh th e f u nnel, b eati n g th e s ta tu s q uo i s a h ard

ta sk . C usto m ers a re r e lu cta nt to c hange. T he r e q uir e m ents f o r c o nse nsu s c o nti n ue to e xp and . D ecis io n

makers w ill co nti n ue to cho ose “no decis io n” ev en over a

good

decis io n. T his is w here th e

in no vati v e m anager c o m es in . A rm ed w ith th e a b ility to in no vate a t th e d eal le v el, th e m anager c an

help th e r e p to a v oid “ no -d ecis io n l a nd ” m ore o fte n th an th e r e p — ev en a C halle nger r e p — can o n h er

ow n. It’ s a c riti c al c ap ab ility in th e b attl e to s e ll in cre asin gly c o m ple x s o lu ti o ns to u nd ers ta nd ab ly

ev er m ore r e lu cta nt c usto m ers .

For m ost s a le s l e ad ers o n a m is sio n to i m pro ve th e e ffe cti v eness o f th eir f r o ntl in e s a le s m anagers ,

th ese d ata re v eal a h uge u nta p ped o pportu nity to d ra m ati c ally im pro ve s a le s m anager p erfo rm ance.

Because o f th at, w e’re g o in g to s p end s o m e ti m e in th is c hap te r d ig gin g in to th is c o ncep t o f s a le s

in no vati o n to u nd ers ta nd w hat it is , h o w it w ork s, a nd , m ost im porta nt, h o w w e c an b uild it m ore

sy ste m ati c ally i n to o ur e nti r e s a le s m anager p opula ti o n.

Befo re w e g et in to th is n o ti o n o f s a le s in no vati o n in m ore d eta il, h o w ev er, it fir s t m akes s e nse to

engage i n a d eep er d is c ussio n a ro und s a le s c o achin g. F orm aliz e d s a le s c o achin g r e p re se nts o ne o f th e

big gest o pportu niti e s to im pro ve r e p p erfo rm ance in a c o m ple x s a le s e nv ir o nm ent, b ut it is a ls o o ne

of th e m ost m is u nd ers to od a nd m is m anaged p ro ducti v ity l e v ers . CO AC H IN G T O T H E K NO W N

T o u nd ers ta nd w hy c o achin g is o fte n m is m anaged b y sa le s o rg aniz a ti o ns, w e n eed to sta rt w ith a

d efin iti o n o f c o achin g.

This is th e d efin iti o n o f co achin g th at w e’v e esta b lis h ed w ith th e help o f a w ork in g te am o f

m em bers : “ A n o ngo in g a nd d ynam ic s e rie s o f jo b-e m bed ded in te ra cti o ns b etw een a s a le s m anager

a nd d ir e ct r e p ort, d esig ned to d ia gno se , c o rre ct, a nd r e in fo rc e b ehav io rs s p ecific to th at i n d iv id ual.”

T his d efin iti o n l a ys o ut th e f o und ati o n o f c o achin g, a nd a ls o h o w i t d iffe rs f r o m tr a in in g.

There a re a fe w p oin ts w e a lw ays e m phasiz e w ith o ur m em bers in te rm s o f th is d efin iti o n. F ir s t,

c o achin g is

ongoin g

—it’ s c o nti n uo us a s o ppose d to a o ne-o ff e v ent o r se rie s o f tr a in in g e v ents .

S eco nd , it in v olv es d ia gno sis s p ecific to th e in d iv id ual re p — so c o achin g is

cu sto m iz e d

. W here as

t r a in in g ty p ic ally in v olv es a o ne-s iz e -fits -a ll a p pro ach o f d eliv erin g th e s a m e te achin g in th e s a m e

f o rm at to e v ery o ne, c o achin g i s c o m ple te ly ta ilo re d to a n i n d iv id ual r e p ’s s p ecific n eed s. A nd f in ally ,

c o achin g is

beh avio ra l

—it’ s n o t ju st a b out o bta in in g s k ill a nd k no w le d ge; it’ s a b out d em onstr a te d

a p plic ati o n o f th at s k ill a nd k no w le d ge.

None o f th is is to su ggest th at tr a in in g h as n o v alu e. T ra in in g is g o od fo r sh arin g k no w le d ge.

C oachin g is a b out a cti n g u p on it. T he u niq ue a d vanta ges o f c o achin g s te m fr o m h o w it’ s ta ilo re d to

t h e in d iv id ual a nd s y ste m ati c ally d eliv ere d a t th e p oin t o f n eed . M any o rg aniz a ti o ns d efin e c o achin g

s im ply a s “ in fo rm al tr a in in g,” b ut o ur re se arc h h as s h o w n th at e ffe cti v e c o achin g is , in fa ct, v ery

f o rm al. I t’ s h ig hly s tr u ctu re d a nd r e gula rly s c hed ule d .

In th e c o nv ers a ti o ns w e h av e w ith o ur m em bers o n th is to pic , th ere i s a no th er i m porta nt d is ti n cti o n

w e m ake, w hic h is h o w c o achin g d iffe rs fr o m

managin g

. W hile m ost fr o ntl in e m anagers w e s p eak

w ith m ain ta in th at th ey d o c o ach, fo r m any, th o se e ffo rts a m ount to littl e m ore th an m anagin g. W e

“ te ll” r a th er th an “ ask ,” w e “ d o” r a th er th an “ guid e.” The B usin ess C ase f o r S ale s C oach in g

F ig ure 8 .3 ( p age 1 52)— whic h is o ne o f th e fin d in gs th e C ouncil is b est k no w n fo r— sh o w s th e h uge

i m pact th at e ffe cti v e c o achin g c an h av e o n a s a le s o rg aniz a ti o n.

When yo u im pro ve co achin g q uality , th e p erfo rm ance curv e d oesn ’t sh ift, it

tip s

. T he m id dle

m oves, b ut th e f e et d on’t. W hat e xactl y d oes th at i m ply ? F ir s t, m ovin g f r o m b elo w -a v era ge to a b ove-

a v era ge co achin g ap pears to hav e littl e im pact on our w eakest perfo rm ers , w hic h se em s

c o unte rin tu iti v e. Y ou’d i m agin e th at th ese r e p s w ould b e th e e asie st p eo ple to g et a p erfo rm ance p op

f r o m i f y o u j u st c o ached th em a l ittl e b ette r. B ut th e b otto m l e ft o f th at c hart te lls u s j u st th e o pposite .

Y ou c an’t c o ach a w ay a b ad f it f o r a j o b.

S ourc e: S ale s E xecuti v e C ouncil r e se arc h.

Fig ure 8 .3 .

D is tr ib uti o n o f R ela ti v e S ale s R ep P erfo rm ance b y C oachin g E ffe cti v eness

Lik ew is e , th e sh ift fr o m w eak to str o ng co achin g doesn ’t hav e m uch of an im pact on sta r

p erfo rm ers e ith er. T his fin d in g is a ls o a b it c o unte rin tu iti v e, s in ce y o u’d lik e to th in k th at c o achin g

c o uld m ake s ta rs e v en m ore s te lla r. T he a nalo gy w e u se is a p ro fe ssio nal g o lfe r. M any o f th em h av e

s w in g c o aches a nd th ey w ork w ith th em a ll th e ti m e. B ut i n th e e nd , th ey a re h o pin g to s h av e

mayb e

a

s tr o ke o ff th eir a v era ge. T hey’re a lr e ad y h ig h p erfo rm ers ; th ey a re o nly l o okin g f o r s lig ht, i n cre m enta l

i m pro vem ents b eyo nd th eir c urre nt l e v el o f p la y.

But if y o u’re a c o re p erfo rm er, th e q uality o f th e c o achin g y o u r e ceiv e h as a s ig nific ant im pact o n

y o ur p erfo rm ance. T he d ata f r o m o ur r e se arc h s u ggests th at th e m ed ia n p erfo rm ers o n y o ur s a le s f o rc e

c o uld se e a p erfo rm ance b oost o f a s m uch a s 1 9 p erc ent g iv en a sig nific ant im pro vem ent in th e

c o achin g th ey r e ceiv e. T he i m pact o f s im ply m ovin g f r o m th e b otto m th ir d to th e to p th ir d o f c o achin g

e ffe cti v eness w ould s ti ll r e su lt in a p erfo rm ance g ain o f b etw ee n 6 a nd 8 p erc ent fo r th e c o re o f th e

s a le s f o rc e. N ot m any i n v estm ents c an d eliv er th at s o rt o f p ro ducti v ity l ift to a s a le s o rg aniz a ti o n.

This is n ’t ju st th eo re ti c al im pact; it’ s r e al. W e’v e s e en th is fr o m th e m ajo rity o f th e o rg aniz a ti o ns

w e w ork w ith th at h av e e m bark ed o n th is c o achin g jo urn ey. O ne o f o ur m em bers , a m ajo r p la yer in th e in su ra nce in d ustr y , s a w a r e su lt s im ila r to w hat o ur d ata s u ggests : a 1 0 p erc ent im pro vem ent in

re p p erfo rm ance fo r th o se re p s w ho p arti c ip ate d in th e c o m pany’s n ew c o achin g p ro gra m v ers u s

th o se w ho d id n’t.

Coachin g m atte rs . F orm aliz e d c o achin g r e p re se nts a h uge p erfo rm ance i m pro vem ent o pportu nity i n

a c o m ple x s a le s e nv ir o nm ent. It c an m ake th e d iffe re nce b etw een h itti n g o r m is sin g g o al fo r th e b ulk

of yo ur sa le s fo rc e. O ur str o ng re co m mend ati o n to our m em bers lo okin g to im pro ve sa le s

perfo rm ance is to d o a w ay w ith c o achin g d em ocra ti c ally — th at is to s a y, c o achin g e v ery o ne e q ually

—and in ste ad sh ift th e m ajo rity o f th eir c o achin g fo cus a w ay fr o m lo w a nd sta r p erfo rm ers a nd

to w ard th e c o re .

What’ s m ore , it tu rn s o ut th at c o achin g is n ’t ju st a h uge d riv er o f s a le s p erfo rm ance— it’ s a ls o a

majo r f a cto r i n e m plo yee r e te nti o n a nd w hat w e c all “ d is c re ti o nary ,” o r e xtr a , e ffo rt. T his w as o ne o f

th e b om bsh ell f in d in gs f r o m o ur o rig in al q uanti ta ti v e s tu d y o n th is to pic , a s i t s h o w ed j u st h o w m uch

im pact c o achin g q uality c an h av e o n e m plo yee m ora le . W hat th e d ata te lls u s is th is : G ood c o aches

make p eo ple w ant to sta y. B ad co aches, o n th e o th er hand , cre ate a fu nd am enta lly d em ora liz in g

env ir o nm ent a nd d riv e p eo ple fr o m th e o rg aniz a ti o n. T his is tr u e n o t ju st fo r o ur lo w p erfo rm ers b ut

als o f o r o ur c o re a nd s ta r p erfo rm ers .

To c o rro bora te th is f in d in g, w e a ls o c ut th e d ata b y d is c re ti o nary e ffo rt. W e i n clu d ed a q uesti o n i n

our s u rv ey th at a sk ed ju st h o w m uch e ffo rt p eo ple p ut in to th eir w ork in g d ay in s a le s. E sse nti a lly ,

what w e fo und is th at b ad c o achin g a nd b ad m anagers m ake p eo ple w ant to g iv e u p . F ro m lo w -

perfo rm in g re p s to o ur su p ers ta rs , n o ne o f th em c an b e b oth ere d if th ey d on’t fe el th ey’re g etti n g

effe cti v e c o achin g f r o m th eir m anagers . C oachin g q uality m atte rs . Giv e S ale s M anagers S om eth in g t o C oach T o

W hen it c o m es to d eliv erin g q uality c o achin g, th e k ey le sso n w e’v e le arn ed fr o m s e v era l y ears o f

r e se arc hin g th is to pic i s th at m anagers c an’t c o ach e ffe cti v ely u nle ss th ey h av e s o m eth in g to c o ach

to

.

Y ou c an’t j u st s a y, “ G o f o rth a nd c o ach.” Y ou h av e to m ake i t c o ncre te f o r y o ur m anagers . T hey n eed

t o h av e s o m eth in g to c o ach to : a c le ar u nd ers ta nd in g o f w hat “ go od” lo oks lik e in y o ur o rg aniz a ti o n

w hen i t c o m es to s a le s ( i.e ., a h yp oth esis ).

While w e’v e d ocum ente d a w ho le ra nge o f c o achin g b est p ra cti c es, to ols , a nd te m pla te s a t th e

C ouncil, o ne o f th e s m arte st ta cti c s w e’v e s e en e m plo yed f o r b oo sti n g s a le s c o achin g q uality c am e to

u s f r o m o ne o f o ur m em bers i n th e f in ancia l s e rv ic es i n d ustr y . T hey b uilt th eir n ew c o achin g p ro cess

d ir e ctl y on to p of th eir exis ti n g sa le s pro cess, so th at m anagers ’ co achin g effo rts are dir e ctl y

e m bed ded i n to th e s a le s a cti v iti e s th ey’re a lr e ad y p urs u in g w ith th eir s a le s te am .

In fig ure 8 .4 , y o u s e e a g eneric iz e d v ers io n o f w hat th is c o m pany b uilt fo r th eir s a le s m anagers .

E ach s a le s p ro cess s ta ge h as a d iffe re nt s e t o f o bje cti v es. T hese a re th e b ehav io rs c riti c al to th at

s ta ge th at th e c o m pany w ants to re in fo rc e. T he to ol a ls o o ffe rs a n um ber o f sa m ple q uesti o ns a

m anager m ig ht ask to engage his re p s in a co achin g co nv ers a ti o n aro und th e o bje cti v es o f th at

p arti c ula r s ta ge.

If y o u lo ok a t th e fir s t s ta ge, “ O pportu nity C re ati o n,” a s a n e xam ple , th e m anager c an c o nsu lt th is

c hart to v erify th e s p ecific o bje cti v es a nd a cti v iti e s a sso cia te d w ith th is s ta ge in th e s a le s p ro cess.

T hin gs lik e s e tti n g a nd c o nfir m in g a c le ar o bje cti v e fo r th e s a le s c all, a nd c o m ple ti n g s u ffic ie nt p re -

c all r e se arc h— th in gs y o ur h ig h p erfo rm ers a re p ro bab ly a lr e ad y d oin g. T hen, b elo w th at, y o u s e e th e

q uesti o ns th e m anager c an u se to e lic it h o w th e r e p i s p urs u in g th o se o bje cti v es: f o r e xam ple , “ W hat

i s y o ur p rim ary o bje cti v e f o r th is c all? ”

We’v e fo und th at w hat o fte n h ap pens is th at m anagers fo cus o n o utc o m es r a th er th an b ehav io rs in

c o achin g c o nv ers a ti o ns, s a yin g th in gs l ik e, “ Y our c o nv ers io n r a te i s w ay d ow n. W hat’ s th e p ro ble m ?

A re n’t y o u f o llo w in g th e p ro cess? ” T hat’ s n o t r e ally w hat y o u s h o uld b e a fte r. S om e m em bers l ik e to

c all th at “ sp re ad sh eet c o achin g.” I t’ s f o cuse d o n b usin ess r e su lts , n o t b ehav io rs , a nd i t’ s d eliv ere d i n

a o ne-s iz e -fits -a ll m anner— ev ery b ody g ets th e e xact sa m e tr e atm ent. B ut d one w ell, c o achin g is

a b out b ehav io rs , n o t o utc o m es. A nd th at’ s e xactl y w hat m akes th is to ol s o e ffe cti v e. E ven b ette r, a ll

o f th is is c ap tu re d o n a o ne-p age r o ad m ap th at is r e ally n o t m uch m ore c o m plic ate d th an w hat y o u

s e e h ere . In fa ct, th is c o m pany’s s a le s m anagers c arry la m in ate d v ers io ns o f th is p age w ith th em in

t h eir b ags.

Sourc e :

S ale s E xecuti v e C ouncil r e se arc h

Fig ure 8 .4 .

S ale s P ro ces-A lig ned C oachin g G uid e

This is th e p erfe ct c heat s h eet to ju m p-s ta rt c o achin g c o nv ers a ti o ns— with o ut r e q uir in g a b unch o f

pro ced ura l h o ops, tr a in in g, a nd a d m in . In a w orld w here m ost m anagers a re , a t b est, s k ep ti c al a b out

co achin g, a to ol lik e th is g o es a lo ng w ay b y g iv in g m anagers a p ra cti c al, n o nin -tr u siv e fr a m ew ork

fo r c o achin g th at is n ’t o vere ngin eere d a nd th at d oesn ’t re q uir e th em to d ra m ati c ally c hange th eir

behav io r.

In a p pend ix A , w e’v e p ro vid ed a n e xcerp t o f o ur m anager c o achin g g uid e b uilt s p ecific ally to h elp

re in fo rc e th e C halle nger S ellin g M odel ( y o u c an d ow nlo ad th e fu ll v ers io n a t o ur W eb s ite ). T his is

th e sa m e to ol our Solu ti o ns gro up use s in its Challe nger D ev elo pm ent Pro gra m . Lik e th e

afo re m enti o ned s a le s p ro cess– alig ned c o achin g g uid e o n p age 1 55, i t m ap s to th e p illa rs o f th e m odel

—te achin g, ta ilo rin g, a nd ta kin g c o ntr o l— pro vid in g m anagers w ith g uid ance a ro und w hat “ go od” lo oks lik e fo r e ach o f th ese c riti c al b ehav io rs , a s w ell a s sta rte r q uesti o ns to fa cilita te c o achin g

dis c ussio ns. Help M anagers t o “ PA USE ” f o r E ffe ctiv e C oach in g

T he im porta nce o f th e m anager— and , sp ecific ally , th e m anager’s ro le as co ach— in m akin g th e

C halle nger m odel s ti c k is a lm ost im possib le to o vers ta te . G iv en th e im porta nce o f g o od c o achin g to

d riv in g b ehav io r c hange o f th is so rt, w e te ll o ur m em bers to sta rt fr o m th e a ssu m pti o n th at th eir

c o achin g p ro gra m i s p ro bab ly n o t w ork in g a s w ell a s i t s h o uld b e.

In our S E C ’s S olu ti o ns gro up , w e’v e w ork ed w ith doze ns of co m panie s to help th eir sa le s

m anagers im pro ve th eir co achin g ab iliti e s, te ach d eal in no vati o n sk ills , and o th erw is e ra is e th e

q uality o f th e fr o ntl in e m anager c o rp s. O ne o f th e k ey c o m ponents o f o ur M anager D ev elo pm ent

P ro gra m is “H yp oth esis -B ase d C oachin g,” w hic h w e th in k ad dre sse s th e m ost perv asiv e is su e

c o m panie s s tr u ggle w ith w hen it c o m es to c o achin g: g etti n g m anagers to e xecute th e “ d oub le ju m p,”

f r o m pro duct- s e llin g re p to so lu ti o n-s e llin g manager, beco m in g exp erts in obse rv in g sa le s

i n te ra cti o ns a s w ell a s e xp erts in c o achin g b ase d o n th o se in te ra cti o ns. H ence, H yp oth esis -B ase d

C oachin g, w here m anagers e nte r c o achin g c o nv ers a ti o ns w ith a c le ar h yp oth esis o f w hat “ go od”

l o oks l ik e.

Hyp oth esis -B ase d C oachin g l e v era ges a p ow erfu l f r a m ew ork c alle d “ PA USE ,” a nd i t’ s s o m eth in g

w e e nco ura ge a ll o f o ur m em bers to u se w ith th eir m anagers . H ere ’s w hat P A USE s ta nd s f o r:

•

Pre p ara tio n fo r th e C oach in g C onversa tio n:

M anagers need to d o p ro per and th o ro ugh

pre p ara ti o n in a d vance o f a ny c o achin g s e ssio n. T his p ro vid es c o nti n uity b etw een c o achin g

ev ents . A nd b y th in kin g th ro ugh w hic h s ta ge o f th e s a le s p ro cess th e r e p is in , m anagers c an

te ll w hat b ehav io rs a re g o in g to b e c riti c al, w hic h is th e fir s t s te p to s o lv in g th e o bse rv ati o n

pro ble m o f s itu ati o nal v aria ti o n.

•

Affir m t h e R ela tio nsh ip :

I f th e r e p i s n ’t r e ad y to h ear th e c o achin g a nd b uy i n to th e m anager’s

ro le as co ach, th e co achin g effo rt w ill be w aste d . M anagers need to be ta ught ho w to

em phasiz e d ev elo pm ent b y s e p ara ti n g p erfo rm ance m anagem ent f r o m c o achin g i n te ra cti o ns—

th ere i s a lw ays a g ra y l in e, b ut i t i s p ossib le to c re ate “ sa fe ” s itu ati o ns f o r c o achin g to o ccur.

•

Understa nd Exp ecte d (O bse rv ed ) Beh avio r:

The challe nge fo r many managers is

und ers ta nd in g w hat th ey are se ein g and w hat to lo ok fo r w hen obse rv in g th eir re p s. If

managers u nd ers ta nd w hat s h o uld b e h ap penin g in a m eeti n g, it’ s m uch e asie r to k no w if it is

hap penin g.

•

Specify B eh avio r C hange:

If m anagers k no w w hat d efin es c riti c al b ehav io rs a nd h av e a n

obje cti v e s ta nd ard fo r ju d gin g th o se b ehav io rs , it’ s v ery e asy fo r th em to p ro vid e s p ecific

obje cti v e fe ed back. T his p re v ents c o achin g fr o m b ein g g eneric , su b je cti v e, ill fo cuse d , o r

overw helm in g.

•

Em bed N ew B eh avio rs:

T he p urp ose h ere i s to m ove a c o achin g p ro gra m a w ay f r o m b ein g a ll

ab out th e c o achin g m om ent a nd i n ste ad m ake i t a n i n sti tu ti o naliz e d p ro cess. C om panie s s h o uld

pro vid e to ols th at a llo w m anagers to c re ate a cti o n p la ns f o r e ach o f th eir r e p s, g iv e c o nti n uity

to m anagers ’ c o achin g c o nv ers a ti o ns, a nd g iv e s e co nd -lin e s a le s m anagers a q uanti ta ti v e a nd

qualita ti v e v ie w i n to th eir m anagers ’ c o achin g a cti v iti e s a nd a b iliti e s.

Again , w e lik e th is fr a m ew ork b ecause it su rm ounts so m e o f th e b ig o bsta cle s to d eliv erin g

c o achin g e ffe cti v ely . W e a ls o f in d th at th e n o ti o n o f P A USE c an b e p ow erfu l f o r th e m anager b ecause it su ggests th is id ea o f slo w in g d ow n a nd th in kin g th ro ugh th e in te nt a nd p urp ose o f th e c o achin g

in te ra cti o n a s o ppose d to m akin g it a “ check th e b ox” a cti v ity a s m ost ti m e-p re sse d s a le s m anagers

are natu ra lly in clin ed to do. T his ap pro ach help s ensu re th at one co achin g co nv ers a ti o n is a

co nti n uati o n o f th e l a st. I t h elp s m anagers to k eep c o achin g o bje cti v e a nd p re sc rip ti v e a s i t f o cuse s o n

docum ente d d ev elo pm ent o pportu niti e s. G etti n g c o achin g rig ht is h ard w ork , b ut ig no rin g it is

fa r

more p ain fu l— esp ecia lly f o r a n o rg aniz a ti o n tr y in g to i n sta ll a n a m biti o us c hange l ik e th e C halle nger

Sellin g M odel— th an ta kin g th e ti m e to m ake s u re i t’ s p ro perly d esig ned a nd e xecute d .

We’v e s p ent a f a ir a m ount o f ti m e ta lk in g a b out c o achin g b ecause i t a b so lu te ly i s a p illa r o f w orld -

cla ss sa le s m anagem ent. H ow ev er, if w e go back to th e re su lts of our analy sis of m anager

effe cti v eness fr o m earlie r in th is chap te r, o ne o f th e su rp ris e s to o ur m em bers is o fte n th at th e

co achin g b ar i s n ’t a ctu ally

big ger

. B efo re w e r e le ase d th ese r e su lts , m any o f o ur m em bers s p ecula te d

th at a g o od 5 0 p erc ent o r m ore o f m anager e xcelle nce w ould b e a ttr ib uta b le to w heth er th ey p ro vid e

th at c o achin g e ffe cti v ely .

That’ s n o t th e c ase . I t’ s f u nd am enta lly i m porta nt, o f c o urs e , b ut w hile c o achin g i s c erta in ly c ru cia l

fo r re p e xcelle nce, w e n o w k no w th at th ere ’s m uch m ore to th e s to ry o f m anager e xcelle nce. L et’ s

ta ke a l o ok a t th e l a st e le m ent o f m anager e ffe cti v eness, s a le s i n no vati o n. IN NO VA T IN G A R O UND T H E U NK NO W N

If s a le s in no vati o n is th e m anager a ttr ib ute th at m atte rs m ost, w hat d oes th at m ean s a le s m anagers

s h o uld a ctu ally d o i n o rd er to i n no vate ?

Fig ure 8 .5 s h o w s th e n in e a ttr ib ute s th at ro se to th e to p a s m ost im porta nt in d efin in g th e s a le s

i n no vati o n fa cto r. A s y o u c an se e, th ese a ttr ib ute s su m in to th re e k ey sa le s in no vati o n a cti v iti e s:

i n v esti g ate , c re ate , a nd s h are .

In v esti g ati n g is a ll a b out th e m anager’s a b ility to d ete rm in e w hat e xactl y is g etti n g in th e w ay o f

a d vancin g a s a le . W ho ’s i n v olv ed ? W hat d ecis io n c rite ria w ill th ey c o nsid er? W hat k in d o f f in ancia l

c o ncern s m ig ht g et in o ur w ay? T he in no vati v e m anager w ork s c lo se ly w ith re p s to m ap o ut, in a s

m uch d eta il a s p ossib le , th e c usto m er’s d ecis io n-m akin g p ro cess f o r a ny g iv en d eal— parti c ula rly o ne

t h at’ s s ta lle d s o m ew here a lo ng th e l in e.

S ourc e :

S ale s E xecuti v e C ouncil r e se arc h.

Fig ure 8 .5 .

C om ponents o f S ale s I n no vati o n

This is im porta nt, n o t ju st b ecause m ost su p plie rs h av e o nly m in im al in fo rm ati o n o n h o w th eir

c usto m ers m ake decis io ns, but because yo ur custo m ers ofte n are n’t su re th em se lv es ho w th eir

o rg aniz a ti o n m akes d ecis io ns. A dd to th at y o ur o w n e ffo rts to s e ll m ore c o m ple x s o lu ti o ns to b oth

n ew a nd e xis ti n g c usto m ers a nd y o u’re le ft fa cin g a n in fin ite ly c o m ple x a rra y o f p ossib le d eal- le v el

o bsta cle s. T his i s th e b attl e fie ld w here th e i n no vati v e m anager r e ally th riv es: c o lla b ora ti n g w ith r e p s

t o c re ati v ely i d enti fy w here a s p ecific d eal i s b ogged d ow n a nd th en d ete rm in e h o w to s h ake i t l o ose .

The s e co nd w ay i n no vati v e m anagers s ta nd o ut i s b y c re ati n g s o lu ti o ns. W e a re n o t s u ggesti n g th at

y o u sh o uld em pow er fr o ntl in e sa le s m anagers to co bble to geth er new so lu ti o ns or in v ent new

s e rv ic es. R em em ber, th is is n ’t pro duct in no vati o n, it’ s sa le s in no vati o n. B ut th at sti ll le av es

i n no vati v e m anagers s ig nific ant l a ti tu d e to i n no vate a t th e d eal l e v el. T his m ig ht i n clu d e r e p ositi o nin g

t h e su p plie r’s c ap ab iliti e s to b ette r c o nnect to th e c usto m er’s c halle nges o r sh ifti n g ris k fr o m th e

c usto m er to th e s u p plie r in e xchange fo r a lo nger-te rm c o ntr a ct o r a ccess to a d diti o nal c ro ss-s a le

o pportu niti e s.

All o f y o ur m anagers sp end a lo t o f ti m e w ith re p s w ork in g o n d eals , b ut m ost o f th at ti m e is pro bab ly s p ent c heckin g in o n th eir w ork : “ D id y o u c all th em b ack?” “ D id y o u s e nd th e p ro posa l? ”

“D id y o u m enti o n th e o pti o nal s e rv ic e p ackage?” T hat’ s n o t s o lu ti o n c re ati o n, it’ s d eal in sp ecti o n,

and w e’d v entu re to s a y i t ta kes u p a g o od 7 0 to 8 0 p erc ent o f th e ti m e y o ur m anagers s p end w ith th eir

re p s. B y c o ntr a st, in no vati o n is n ’t a b out c heckin g u p o n th e r e p . It’ s a b out c o -c re ati o n ( i.e ., th o ught

partn ers h ip ) w ith o ut v alu e ju d gm ent, a b out w ork in g to geth er c o lla b ora ti v ely to fin d a b ette r w ay to

ad vance a d eal. A t th e e nd o f th e d ay, y o u’ll w ant y o ur m anagers f o cusin g th eir i n no vati o n e ffo rts o n

th o se d eals w here th e s ta kes a re th e h ig hest— in o th er w ord s, w here th eir i n no vati o n ti m e a nd e ffo rt i s

lik ely to p ay th e b ig gest re tu rn s. A nd if yo u th in k ab out it, w e all hav e a fe w tr u ly in no vati v e

managers . T hey’re th e o nes w ho a lw ays f in d a w ay to g et a d eal d one— ev en th e o nes th at l o oked a s

th o ugh th ey h ad n o c hance a t a ll o f m akin g it. A nd it’ s th e s o lu ti o ns th ey c o m e u p w ith th at o fte n

beco m e th e s tu ff o f i n te ro ffic e l e gend a cro ss th e s a le s te am . “ D id y o u h ear h o w B ob m anaged to h elp

Cin d y c lo se th e S m ith a cco unt? ” “ Y eah, th at w as b rillia nt! H ow d oes h e c o m e u p w ith th is s tu ff? ”

One o f o ur m em bers c alle d th ese m anagers “ sa le s n in ja s.” I t’ s a f u nny te rm , b ut w hen y o u th in k a b out

it, i t k in d o f f its . T hese p eo ple a re m aste rs o f e v ery to ol o f th e tr a d e. T hey c an f in d a w ay i n w hen n o

one e ls e c an.

Fin ally , i n no vati v e m anagers e agerly a nd a cti v ely s h are th e f r u it o f th eir i n no vati o n e ffo rts . T here ’s

huge v alu e in b ein g a b le to re p lic ate th e a p plic ati o n o f th at in no vati o n e ls e w here if y o u c an ju st

cap tu re it in w ays th at o th ers c an le arn fr o m . T his is h o w y o u g et s c ale fr o m a ll th o se in no vati o n

effo rts . In no vati v e m anagers a re a ll a b out s h arin g b est p ra cti c es, d ev elo pin g a nd s u sta in in g a s tr o ng

re la ti o nsh ip n etw ork in sid e th e o rg aniz a ti o n, a nd p assin g n ew id eas a nd s o lu ti o ns to th e re st o f th e

te am .

So n o w th at w e’v e g o t a b ette r se nse o f w hat sa le s in no vati o n is a ll a b out, le t’ s g o b ack a nd

co m pare it w ith th e o th er p art o f th e o w ners h ip c ate go ry o f m anager e xcelle nce. T here a re so m e

re ally im porta nt im plic ati o ns w e w ill d is c uss re gard in g ho w w ell re so urc e allo cati o n and sa le s

in no vati o n c an p eacefu lly c o exis t. World s in C onflic t

W hen w e d is c usse d th e “ p ortr a it o f a w orld -c la ss s a le s m anager” e arlie r i n th is c hap te r, y o u’ll r e call

t h at th e re q uir e d p ro file o f th e s a le s m anager h as re ally c hanged to b eco m e m ore o f a

le a dersh ip

p ro file . W orld -c la ss m anagers to day a re d efin ed n o t j u st b y th eir a b ility to c o ach to th e

kn ow n

, b ut b y

t h eir a b ility to i n no vate a ro und th e

unkn ow n

.

This is criti c ally im porta nt fo r an org aniz a ti o n purs u in g th e C halle nger m odel. Even w ith

C halle ngers a rm ed w ith e ffe cti v e te achin g p itc hes a nd th e r ig ht s k ills to ta ilo r a nd ta ke c o ntr o l o f th e

s a le , o verc o m in g th e c usto m er’s s ta tu s q uo i s n o t g o in g to h ap pen 1 00 p erc ent o f th e ti m e. M any d eals

w ill s ti ll g o o ff th e r a ils a nd g et b ogged d ow n. H ere ’s w here a n i n no vati v e m anager c an m ake a ll th e

d iffe re nce b etw een c lo sin g a d eal a nd c halk in g u p a no th er l o ss to “ no d ecis io n.”

Unfo rtu nate ly , y o u’ll a ls o r e call th at w hen it c o m es to b oosti n g m anager e ffe cti v eness, m ost s a le s

l e ad ers te nd to p la ce th eir b ig gest b et o n

re so urc e a llo ca tio n

—th at is , d ir e cti n g fr o ntl in e sa le s

m anagers to m ore e ffic ie ntl y m anage th eir l im ite d r e so urc es th ro ugh b ette r te rrito ry m anagem ent, d eal

q ualific ati o n, a nd s a le s p ro cess c o m plia nce. W hen y o u th in k a b out i t, th at’ s w hat r e so urc e a llo cati o n

i s a ll a b out: e ffic ie ncy. S ale s i n no vati o n, o n th e o th er h and , i s v ery m uch a b out e ffe cti v eness.

Yet a s f ig ure 8 .6 ( p age 1 62) s h o w s, w hen y o u l o ok a t th e i m pact o f a n e ffic ie ncy f o cus o n m anager

p erfo rm ance c o m pare d w ith a n e ffe cti v eness fo cus, y o u fin d th at a n e ffe cti v eness fo cus h as n early

t w ic e th e i m pact o f a n e ffic ie ncy a p pro ach.

S ourc e: S ale s E xecuti v e C ouncil r e se arc h.

Fig ure 8 .6 .

T he R ela ti v e I m pact o f R eso urc e A llo cati o n a nd S ale s I n no vati o n o n M anager

Effe cti v eness

Now , ju st to b e c le ar, w e w ould n ev er s a y th at d riv in g p ro cess e ffic ie ncy is w ro ng fo r a s a le s

o rg aniz a ti o n. B ut e ffic ie ncy is a ll a b out d oin g w hat y o u

alr e a dy k n ow h ow to d o

b ette r a nd b ette r.

L et’ s g et th e r ig ht r e p s c hasin g th e r ig ht c usto m ers , e ngaged in th e r ig ht a cti v iti e s. A nd le t’ s d o th at

a gain a nd a gain a nd a gain . I f p ossib le , f a ste r e ach ti m e.

But th at k in d o f s in gle -tr a ck f o cus o n e ffic ie ncy o nly w ork s i f e v ery d eal i s th e s a m e. I f y o u l iv e i n

a w orld o f k no w ab le n eed s, fin d ab le b usin ess, a nd p re d ic ta b le c usto m er b ehav io r, th en lo ck d ow n

p ro cess a nd c o ach th e h eck o ut o f it. F or m ost s a le s m anagers , th at’ s a p re tty a ccura te d esc rip ti o n o f

t h eir w orld s fiv e o r s ix y ears a go , w hen s tr a ig htf o rw ard p ro duct s e llin g w as s ti ll a r e la ti v ely la rg e

p art o f th eir b usin ess. B ut th at’ s n o t th e w orld m ost s a le s l e ad ers a re l iv in g i n to day. I f th ey’re g o in g

t o g ro w r e v enue i n to day’s e nv ir o nm ent, d riv in g e ffic ie ncy a ro und th e

kn ow n

m ust g iv e w ay— in p art

a t l e ast— to a n a b ility to c o lla b ora ti v ely i n no vate a ro und th e

unkn ow n

. A s o ne m em ber to ld u s, “ If w e

h ad r e lig io usly f o llo w ed o ur s a le s p ro cess l a st y ear, o ur th re e b ig gest d eals w ould h av e n ev er g o tte n done.”

Sale s s u ccess to day is m uch le ss a b out g etti n g b ette r a t w hat y o u a lr e ad y k no w a nd m uch m ore

ab out c re ati n g a n a b ility to ta ckle w hat y o u

don’t k n ow

. I n o rd er to th riv e i n th at w orld , y o u’re g o in g

to hav e to b uild a sa le s o rg aniz a ti o n— and a sa le s cultu re — th at enab le s th at kin d o f in no vati o n

acti v ity . A w orld w here e ffe cti v eness i s e le v ate d a b ove e ffic ie ncy. H ow ev er, w e f in d th at m ost s a le s

org aniz a ti o ns h av e a l o ng w ay to g o o n th at f r o nt— lo ok a t f ig ure 8 .7 .

Sourc e: S ale s E xecuti v e C ouncil r e se arc h.

Fig ure 8 .7 .

S ale s M anager R esp onse to Q uesti o n “ D o y o u th in k th at s e nio r m anagem ent a t y o ur

co m pany i s m ore o r l e ss l ik ely to e nco ura ge a nd s u p port th e f o llo w in g?”

In a r e cent s u rv ey o f f r o ntl in e s a le s m anagers , w e a sk ed r e sp ond ents h o w th ey w ould c hara cte riz e

th e c urre nt s tr a te gy o f th eir s e nio r l e ad ers h ip te am b ase d o n a r a nge o f a ttr ib ute s a nd b ehav io rs . A nd

th e a nsw er w as v ery c le ar. M ost m anagers to ld u s th ey c urre ntl y o pera te i n a n e nv ir o nm ent d om in ate d

by a s tr o ng e m phasis o n e ffic ie nt e xecuti o n o f th e s a le s p ro cess. M eanw hile , a lm ost

no

m anagers

agre ed w ith th e s ta te m ent th at “ le ad ers h ip e m pow ers m anagers to s e t th eir o w n c o urs e o f a cti o n.” Y et

in th at s a m e s u rv ey, m anagers a ls o to ld u s th at th ey b elie v e th at e m pow erm ent— or fr e ed om to m ake

decis io ns— is in fa ct th e

most im porta nt

fa cto r in th eir c urre nt s u ccess. A nd o ur o w n s tu d y o f s a le s

manager e ffe cti v eness w ould s u ggest th ey’re r ig ht.

Now , to b e s u re , e v ery o rg aniz a ti o n h as to h av e e nfo rc eab le r u le s. C erta in ly , w e n eed to s e t ta rg ets

aro und s p ecific b usin ess o utc o m es a nd p ush to a tta in th em . B ut w ith in th at c o nte xt, w e s ti ll n eed to

fin d a w ay to e m pow er m anagers to p urs u e th o se e nd s w ith in no vati v e m eans. Y et fe w c o m panie s

ap pear to h av e th e k in d o f c ultu re i n p la ce to a llo w th at to h ap pen. T his i s th e r a th er s o berin g m essa ge

of th is s e em in gly in no cuo us fin d in g: A t a ti m e w hen s a le s le ad ers n eed to “ get b ack to g ro w th ,” th e

gro w th e ngin e fo r m ost o rg aniz a ti o ns is b uilt a to p th e w ro ng c hassis . Y our o rg aniz a ti o n is d esig ned

fo r e ffic ie ncy a t a ti m e w hen e ffe cti v eness i s g o in g to w in th e d ay. W hat th e d ata s u ggests i s th at m ost

org aniz a ti o ns h av e a l o ng w ay to g o to b uild a c ultu re w here s a le s i n no vati o n c an th riv e.

While s h ifti n g f r o m a n e ffic ie ncy- to a n e ffe cti v eness-fo cuse d s a le s c ultu re i s a l o ng-te rm m ig ra ti o n

fo r a ny c o m pany, th e g o od n ew s is th at th ere a re c erta in ly th in gs th at y o u c an d o r ig ht a w ay to h elp

eq uip y o ur s a le s m anagers to b e m ore i n no vati v e a t th e d eal l e v el. Help in g M anagers t o U ndersta nd T heir B ia se s

A s it tu rn s o ut, th e k in d o f th in kin g m anagers r e ly o n e v ery d ay to d o m any o th er a sp ects o f th eir jo b

w ell is o ne o f th e b ig gest o bsta cle s to th eir b ein g in no vati v e. In fig ure 8 .8 , y o u s e e th at w e c all th is

k in d o f th in kin g “ narro w in g th in kin g.” N arro w in g th in kin g i s a ll a b out l o okin g a t a c o m ple x p ro ble m ,

w eig hin g e xis ti n g o pti o ns, a nd p ro ducin g a s in gle s o lu ti o n. I t’ s i n cre d ib ly v alu ab le i n a w orld w here

m anagers m ust m ake to ugh, r a p id d ecis io ns o n th in gs lik e a llo cati n g s c arc e r e so urc es. U nfo rtu nate ly ,

a t th e sa m e ti m e, narro w in g th in kin g als o se v ere ly lim its m anagers ’ ab ility to d ev elo p cre ati v e

s o lu ti o ns to hard -to -s o lv e custo m er challe nges, as it’ s fo cuse d on elim in ati n g opti o ns fr o m

c o nsid era ti o n r a th er th an g enera ti n g n ew o nes f o r c o nsid era ti o n.

S ourc e: M org an D . J o nes, “ T he T hin ker’s T oolk it” ; S ale s E xecuti v e C ouncil r e se arc h.

Fig ure 8 .8 .

M odes o f M anager T ho ught

The a lte rn ati v e is “ o penin g th in kin g,” w hic h is c hara cte riz e d b y th e g enera ti o n a nd v etti n g o f a s

m any alte rn ati v e opti o ns as possib le . W hile narro w in g th in kin g m ay be bette r fo r re so urc e

m anagem ent, o penin g th in kin g is b ette r fo r d eal in no vati o n. If yo u’re go in g to b uild in no vati v e

m anagers , y o u’ll h av e to o verc o m e m anagers ’ n atu ra l i n clin ati o n— and d ay-to -d ay p re ssu re — to th in k

n arro w ly , a nd e q uip th em w ith to ols a nd fr a m ew ork s to th in k o penly , a t le ast a t th o se ti m es w hen

s a le s in no vati o n is calle d fo r. T o d o th at w ell, th e fir s t th in g an o rg aniz a ti o n need s to d o is to

e ffe cti v ely r a is e th eir a w are ness o f w hat’ s g etti n g i n th e w ay o f o penin g th in kin g i n th e f ir s t p la ce.

Decad es o f r e se arc h i n to h um an b ehav io r h as u nco vere d a n um ber o f h um an b ia se s th at c o m monly

h in d er o penin g th in kin g. T he s ix m ost c o m mon a re :

• P ra cti c ality b ia s: I d eas th at s e em u nre alis ti c s h o uld b e d is c ard ed .

• C onfir m ati o n b ia s: U nexp la in ab le c usto m er b ehav io rs c an b e i g no re d .

• E xp orta b ility b ia s: I f i t d id n’t w ork h ere , i t w on’t w ork a nyw here . • L egacy b ia s: T he w ay w e’v e a lw ays d one i t m ust b e b est.

• F ir s t c o nclu sio n b ia s: T he f ir s t e xp la nati o n o ffe re d i s u su ally th e b est o r o nly c ho ic e.

• P ers o nal b ia s: I f I w ould n’t b uy i t, th e c usto m er w on’t e ith er.

These b ia se s a re n o t in here ntl y “ b ad .” In fa ct, th ese a re m enta l to ols w e a ll u se e v ery d ay to h elp

us ra p id ly so rt th ro ugh la rg e a m ounts o f in fo rm ati o n a nd m ake d ecis io ns m ore q uic kly . T hese a re

basic ally filte rs th at a llo w a ll o f u s— and e sp ecia lly ti m e-s tr a p ped s a le s m anagers — to m ake ra p id

decis io ns i n th e f a ce o f c o m ple xity . T his a b ility i s c riti c ally i m porta nt to th eir s u ccess.

At th e s a m e ti m e, h o w ev er, e ach o f th ese b ia se s e ffe cti v ely c uts o ff c erta in p ath s o f in q uir y . T hey

help u s to m ake d ecis io ns q uic kly , b ut a t th e s a crific e o f m akin g d ecis io ns th o ro ughly , a s e ach o f th ese

bia se s le ad s u s to v ie w th e w orld e xclu siv ely fr o m o ur o w n p ers p ecti v e. T hat c an b e d ead ly in th e

world o f s a le s, a s i t m eans m anagers o fte n f a il to p la ce th em se lv es i n th e s h o es o f th eir c usto m er, n o t

because th ey’re b ad m anagers , b ut b ecause th ey’re h um an. T hey s it d ow n w ith a r e p , lo ok a t a d eal

th at ap pears ho pele ssly sta lle d , and se e th e w orld th ro ugh th ese bia se s, fa ilin g to unco ver an

in no vati v e w ay to m ove th at d eal f o rw ard .

There a re tw o s im ple m eans o f h elp in g m anagers o verc o m e th ese b ia se s a nd o pen u p th eir th in kin g.

The f ir s t i s s im ply to m ake m anagers a w are o f th ese b ia se s i n th e f ir s t p la ce. J u st i n fo rm in g m anagers

th at th e b ia se s e xis t— and r e m in d in g th em o n a n o ngo in g b asis — can s ig nific antl y r e d uce th eir n atu ra l

te nd ency to s e lf- c enso r in th is m anner. S eco nd , w e c an tr a in m anagers to a sk th em se lv es ( a nd th eir

re p s) s p ecific q uesti o ns to p ro m pt th in kin g f r o m a lte rn ate p ers p ecti v es.

Let’ s d ig i n to th is i d ea o f “ p ro m pti n g q uesti o ns” i n a l ittl e b it m ore d eta il to r e ally u nd ers ta nd h o w

it w ork s. Hold in g B ia se s a t B ay

S im ply p ut, p ro m pti n g q uesti o ns a re a fo rc in g m echanis m to e xp and y o ur th in kin g. G ood p ro m pti n g

q uesti o ns e nco ura ge u s to d o o ne o f th re e th in gs w hen c o nsid erin g a p ro ble m o r s itu ati o n: d eep en o ur

u nd ers ta nd in g, b ro ad en o ur p ers p ecti v e, o r e xp and o ur i d eas.

S ourc e: S ale s E xecuti v e C ouncil r e se arc h.

Fig ure 8 .9 .

C hara cte ris ti c s o f E ffe cti v e P ro m pti n g Q uesti o ns

Many p ro m pti n g q uesti o ns a re d esig ned to h elp u s fu lly e xp lo re o ur u nd ers ta nd in g o f a n is su e

b efo re d ra w in g c o nclu sio ns. F or i n sta nce, “ W hat’ s th e b ig ger p ic tu re th at th is c usto m er s itu ati o n f a lls

i n to ?” o r “ W hat e ls e m ust b e g o in g o n b ehin d th e s c enes f o r th is to b e tr u e?” T hese ty p es o f q uesti o ns

a re g re at f o r h elp in g m anagers a v oid d efa ulti n g to o q uic kly to a o ne-s iz e -fits -a ll a nsw er.

Seco nd , th ere a re q uesti o ns th at fo rc e u s to c o nsid er a lte rn ate v ie w poin ts . Q uesti o ns lik e, “ If y o u

w ere th e c usto m er’s C FO , h o w w ould y o u v ie w th is o ffe rin g?” o r “ W hat’ s th e h ead o f m ark eti n g

g o in g to th in k w hen h e s e es th is p ro posa l? ” a re e sp ecia lly u se fu l q uesti o ns f o r m anagers w ho te nd to

b elie v e th ey’v e g o t a ll th e a nsw ers a lr e ad y.

Fin ally , th ere a re q uesti o ns th at e nco ura ge u s to te m pora rily s e t a sid e p ra cti c ality c o ncern s th at

l im it o ur th in kin g. A g o od q uesti o n h ere m ig ht b e, “ W hat w ould y o u d o d iffe re ntl y if y o u h ad m ore

b ud get to p urs u e th is c usto m er? ” T hese a re g re at q uesti o ns f o r m anagers w ho r u n to o q uic kly to a ll o f

t h e r e aso ns w hy w e

ca n’t

d o s o m eth in g, r a th er th an e xp lo re h o w w e

co uld

d o s o m eth in g.

How c o uld s o m eth in g lik e th is w ork in p ra cti c e w ith s a le s m anagers ? T ake a lo ok a t th e to ol in

f ig ure 8 .1 0.

Sourc e: M ic hal M ic halk o , “T hin kerto ys: A H and book o f C re ati v e T hin kin g T echniq ues” (2 006);

Sale s E xecuti v e C ouncil r e se arc h.

Fig ure 8 .1 0.

S C A M MPE R R F ra m ew ork

At th e C ouncil, w e’v e pulle d to geth er an enti r e lib ra ry of pro m pti n g questi o n to ols fo r our

mem bers , b ut th is i s o ne o f o ur f a v orite s a nd o ne th at a n um ber o f o ur m em bers h av e p ut to g o od u se

in th eir o w n s a le s o rg aniz a ti o ns. I t’ s c alle d th e “ S C A M MPE R R F ra m ew ork ”— th e n am e c o m es f r o m

th e fir s t le tte r of each w ord dow n th e fir s t co lu m n— and it’ s a cla ssic to ol use d to fa cilita te

bra in sto rm in g e xerc is e s.

What’ s b eauti fu l a b out th is to ol is h o w s im ple it is . It’ s a v ery s tr a ig htf o rw ard w ay to e q uip y o ur

managers to s y ste m ati c ally p ro be a d eal fo r in no vati o n p ote nti a l w ith o ut h av in g to s o m eho w r e w ir e

th eir b ra in s o r p ut th em th ro ugh y ears o f tr a in in g. A s y o u r e ad th ro ugh th is , n o ti c e th at w hile th e to ol

its e lf m ay b e u nfa m ilia r, y o u’ll p ro bab ly r e co gniz e m uch o f th is a s e xactl y th e k in d o f th in g y o ur s ta r-

perfo rm in g m anagers d o a uto m ati c ally a lm ost e v ery d ay.

Let’ s s a y th at a m anager i s w ork in g w ith a r e p to a d vance a d eal th at h as b eco m e b ogged d ow n d ue

to th e c usto m er’s str o ng re sis ta nce to a p ric e in cre ase . O f c o urs e , y o u k no w h o w th e re p w ould

pro pose m ovin g th at d eal f o rw ard . I f p ric e i s th e p ro ble m , th en th e p ric e i s to o h ig h. Y ou s h o uld o ffe r

th em a d is c o unt.

Rath er th an n arro w in g im med ia te ly to th at s o lu ti o n, h o w ev er, th e in no vati v e m anager w ill u se a

to ol lik e th is to b ro ad en th eir th in kin g o n w hat to d o next. U sin g th e to ol, a sa le s m anager can

arti c ula te a s e rie s o f w ays i n w hic h th is d eal m ig ht b e r e p ositi o ned i n o rd er to m ake i t m ore p ala ta b le

to th e custo m er w ith o ut hav in g to m odify th e pric e. P ro m pti n g questi o ns lik e “W hat m ig ht w e

su b sti tu te ?” o r “ H ow m ig ht w e c o m bin e th is o ffe r w ith o th ers ? ” o r “ W hat id eas th at h av e w ork ed

els e w here c an b e a d ap te d to th is s itu ati o n?” fo rc e th e m anager a nd re p to th in k m ore e xp ansiv ely

befo re r u nnin g to o ffe r a d is c o unt.

In k eep in g w ith th e e xam ple , u nd er “ M odify ,” p erh ap s w e c an s e ll th e c usto m er s m alle r q uanti ti e s

with g re ate r fr e q uency. O r u nd er “ E lim in ate ,” m ayb e w e c an g et rid o f u nnecessa ry o r c usto m iz e d

packagin g in o rd er to o ffs e t p ric e in cre ase s. It’ s n o t n ecessa ry to a nsw er e v ery q uesti o n fo r th e SC A M MPE R R to ol to w ork . T he f r a m ew ork i s s im ply a f o rc in g m echanis m to h elp m anagers e xp and

th e u niv ers e o f p ossib le a cti o ns. A gain , th is i s o ne o f th e m any i n no vati o n to ols w e’v e d ev elo ped f o r

our m em bers a t th e S ale s E xecuti v e C ouncil. BR IN G IN G I T H OM E

N ow th at w e’v e d is c usse d th e i m porta nt r o le o f th e f r o ntl in e m anager i n th is s to ry , i t’ s ti m e to tu rn to

s o m e o f th e im ple m enta ti o n le sso ns th at w e’v e le arn ed fr o m h elp in g c o m panie s to b uild th eir o w n

C halle nger s a le s o rg aniz a ti o ns. 9

IM PLEM EN TA T IO N L ESSO NS F R O M T H E E A RLY A DO PT ER S

S in ce u nv eilin g th e C halle nger fin d in gs in 2 009, o ur te am a t th e C ouncil a nd o ur s is te r c o nsu lti n g

p ra cti c e, S E C S olu ti o ns, h as b een h elp in g s a le s a nd m ark eti n g l e ad ers to a d opt th e C halle nger S ellin g

M odel in th eir o w n o rg aniz a ti o ns. W e’v e le arn ed a lo t fr o m th e e xp erie nces o f th ese e arly a d opte rs .

T his c hap te r p ro vid es im ple m enta ti o n le sso ns fo r s a le s, m ark eti n g, a nd s e nio r le ad ers in fo rm ed b y

o ur e xp erie nce i n th e f ie ld . LESSO NS F O R S A LES L EA D ER S

Not E very H ig h P erfo rm er I s a C halle nger

I t’ s easy fo r executi v es to slip in to th e tr a p o f assu m in g th at all th eir hig h p erfo rm ers are , b y

d efin iti o n, C halle ngers . T here a re lo ts o f th in gs th at a ll h ig h p erfo rm ers d o, b ut o nly s o m e o f th em

( ro ughly 4 0 p erc ent, a cco rd in g to o ur d ata ) g et th ere b y te achin g, ta ilo rin g, a nd ta kin g c o ntr o l.

Part o f th e C halle nger S ellin g M odel is in sti tu ti o naliz in g w hat y o ur C halle ngers d o n atu ra lly —

s tu d yin g th e w ay th ey te ach, ta ilo r, a nd ta ke c o ntr o l w ith in y o ur s p ecific in d ustr y , w ith y o ur s p ecific

c usto m ers , a nd s h arin g th at k no w le d ge w ith y o ur e nti r e s a le s f o rc e. T o d o th is e ffe cti v ely , y o u n eed to

b e s u re y o u a re n’t m is ta kenly d ocum enti n g th e ta cti c s a nd h ab its o f a h ig h-p erfo rm in g R ela ti o nsh ip

B uild er o r L one W olf.

It’ s a b so lu te ly c riti c al th at c o m panie s fir s t c o rre ctl y id enti fy th eir C halle ngers b efo re th ey c an

o bse rv e h o w th eir C halle ngers a re s e llin g to c usto m ers rig ht n o w . J u st a sk in g m anagers to id enti fy

t h eir C halle ngers w on’t w ork , a s th ey’re m ore lik ely to p ic k th eir h ig h p erfo rm ers , re gard le ss o f

a ctu al s e llin g s ty le .

Our S olu ti o ns g ro up u se s a d ia gno sti c f o r o ur c lie nts th at i s b uilt o ff th e o rig in al C halle nger s u rv ey;

i t a sk s th e s a m e s e t o f q uesti o ns th at w e u se d to c re ate th e C halle nger S ellin g M odel. Y ou c an f in d a

s im plifie d v ers io n i n a p pend ix B to g iv e y o u a s e nse o f w hat th at d ia gno sti c l o oks l ik e.

Ju st as ev ery hig h p erfo rm er is no t necessa rily a C halle nger, no t ev ery C halle nger is a hig h

p erfo rm er. W e’v e fo und s o m e o rg aniz a ti o ns w ith “ in acti v e” C halle ngers — th ey h av e th e rig ht s k ills

b ut a re n’t a w are o f h o w to a p ply th em . O nce th ey a re e xp ose d to th e f r a m ew ork o f te achin g, ta ilo rin g,

a nd ta kin g c o ntr o l, th ese s k ills b eco m e “ acti v ate d ” i n a n ew a nd p ow erfu l w ay. Bew are t h e C all o f t h e L one W olf

C lo se o bse rv ers o f o ur r e se arc h c o uld m ake th e a rg um ent th at L one W olv es a ctu ally h av e th e h ig hest

p ro bability

o f b ein g h ig h p erfo rm ers — and , te chnic ally , th ey w ould b e c o rre ct. W hile L one W olv es

r e p re se nt th e s m alle st p erc enta ge o f th e o vera ll s a m ple o f s a le s r e p s ( a t 1 8 p erc ent) , a f u ll 2 5 p erc ent

o f a ll h ig h p erfo rm ers f a ll i n to th e L one W olf p ro file — in o th er w ord s, o f a ll th e p ro file s, th e c hances

a re g re ate st th at a L one W olf p ulle d o ut o f a c ro w d w ould a ctu ally b e a h ig h p erfo rm er. B ut j u m pin g

f r o m th is o bse rv ati o n to th e c o nclu sio n th at a ll r e p s s h o uld b e L one W olv es i s a f o lly .

An a ll– L one W olf s a le s fo rc e fo llo w s n o p atte rn . B y d efin iti o n, L one W olv es d on’t fo llo w a ny

p ro cess o r s e t o f r u le s a sid e fr o m th eir o w n. T hat m akes it im possib le to m odel a nd r e p lic ate th eir

b ehav io rs a cro ss th e s a le s o rg aniz a ti o n. T he to p p erfo rm ers i n th is k in d o f e nv ir o nm ent m ay d o w ell,

b ut th ere ’s n o w ay to b rin g y o ur c o re p erfo rm ers u p to th eir l e v el i n th e s a m e m anner.

Lone W olv es a ls o s tr u ggle in th e c o lla b ora ti v e, te am -b ase d e nv ir o nm ents r e q uir e d to b rin g m ore

c o m ple x s o lu ti o ns to c usto m ers . A s a V P o f s a le s fr o m a h ig h-te ch c o m pany r e centl y to ld u s, “ In o ur

o rg aniz a ti o n, w e a re m ovin g r a p id ly to h av in g to s e ll a s a

te a m

in ste ad o f s e llin g in d iv id ually . L one

W olv es a re a c ancer i n a n e nv ir o nm ent l ik e th is .” W hile i n d iv id ual L one W olv es c an b e e ffe cti v e o n

t h eir o w n, a te am o f th em i s a te am th at d oesn ’t s e ll a nyth in g.

We h av e a ls o fo und th at s a le s r e p p ro file s a re in p art a fu ncti o n o f th eir e nv ir o nm ent. R ep s w ill

g enera lly p urs u e th e a p pro ach th at w ill m ake th em th e m ost m oney— whate v er th eir c o m pany r e w ard s

a nd c ele b ra te s. If L one W olv es d om in ate a s a le s o rg aniz a ti o n, th is is m ost lik ely b ecause th o se r e p s

a re b ein g to ld , e xp lic itl y o r im plic itl y , to tr y to fig ure o ut w hat w ork s o n th eir o w n. In th is k in d o f

e nv ir o nm ent, th e co m pany lo se s all cre d ib ility and is se en b y re p s no t as an auth o rity o n w hat

c usto m ers valu e— a so urc e of in te llig ent guid ance and co unse l— but as a ro ad blo ck to a re p ’s

s u ccess. T he c o m pany, in th e L one W olf s a le s fo rc e, is a n e nti ty to b e a v oid ed b ecause it a d ds n o

v alu e to a s a le sp ers o n. T he th in gs th e c o m pany h as d ev elo ped , lik e tr a in in g, s a le s p ro cess, C RM ,

t o ols , a nd m any m ore , a re o f l ittl e v alu e to th e L one W olf. W hile r e p s m ay h it q uo ta i n a n o rg aniz a ti o n

l ik e th is , i t i s i n s p ite o f, n o t b ecause o f, th e s u p port a nd g uid ance p ro vid ed b y m anagem ent. Sta rt R ecru it in g f o r C halle ngers Y este rd ay

W e b elie v e str o ngly th at C halle ngers c an b e b uilt. A s w e ro ll o ut o ur C halle nger tr a in in g, w e’re

f in d in g th at r e p s a re

excite d

to p la y th is r o le w ith th eir c usto m ers , a nd o nce th e m odel i s u nlo cked f o r

t h em , th ey can sta rt challe ngin g th eir custo m ers rig ht aw ay. H ow ev er, it als o m akes se nse fo r

c o m panie s to sta rt re cru iti n g C halle ngers to re p la ce a ny re p s w ho n atu ra lly tu rn o ver w ith in th e

o rg aniz a ti o n o r to f ill n ew p ositi o ns m ad e a v aila b le a s th e o rg aniz a ti o n g ro w s.

Hir in g fo r C halle ngers r e q uir e s a d iffe re nt a p pro ach to in te rv ie w in g a nd s c re enin g. W e p ro vid e a

C halle nger H ir in g G uid e to h elp w ith th e p ro cess (y o u c an fin d it in a p pend ix C ). T he g uid e is

o rg aniz e d aro und th e key co m pete ncie s of th e C halle nger re p . It offe rs sa m ple questi o ns an

i n te rv ie w er m ig ht a sk , s ti p ula te s w hat th e e v alu ati o n s ta nd ard s h o uld b e fo r e ach c o m pete ncy, a nd

t h en o ffe rs s o m e r e d f la gs to l o ok o ut f o r.

For i n sta nce, o ne o f th e c o m pete ncie s o f th e C halle nger i s th e a b ility to o ffe r a u niq ue p ers p ecti v e

t o th e c usto m er. A n in te rv ie w er c an p ro be fo r th is b y a sk in g q uesti o ns lik e, “ H ow d o y o u u su ally

o pen a s a le s c o nv ers a ti o n w ith a c usto m er? ” o r “ C an y o u d esc rib e a ti m e w hen y o u g o t a c usto m er to

t h in k o f th eir p ro ble m o r need d iffe re ntl y ?” T he in te rv ie w ee’s p itc hes sh o uld hig hlig ht custo m er

b enefits b efo re s u p plie r s tr e ngth s a nd , i d eally , o ffe r u niq ue i n sig hts th at p ro m pt th e c usto m er to th in k

d iffe re ntl y a b out th eir w orld . T he k ey re d fla gs to w atc h o ut fo r a re fe atu re - a nd b enefit- fo cuse d

p itc hes.

This to ol h as b een s u ccessfu lly a d opte d b y m any o f o ur m em bers . O ne o f th e c o m panie s w e w ork

w ith in th e b ev era ge in d ustr y re p orts th at th eir n ew re p s, re cru ite d u sin g th e C halle nger g uid e, a re

“ ru nnin g c ir c le s a ro und th e e xis ti n g s a le s te am .”

While w e’v e a ls o h eard s o m e s u ccess s to rie s f r o m m em bers u sin g c o m merc ia lly a v aila b le p re hir e

s c re enin g to ols to i d enti fy C halle ngers , th is h as c o m e m ain ly f r o m r e tr o fitti n g e xis ti n g to ols to “ se arc h

f o r” C halle ngers o ut i n th e l a b or m ark et. W hile th ere a re m any p re hir e a sse ssm ent to ols a v aila b le f o r

s a le s, n o ne h av e b een b uilt s p ecific ally to id enti fy C halle ngers . U nti l s o m eb ody o ffe rs a fix fo r th is

p ro ble m , w e r e co m mend th at s a le s le ad ers u se c auti o n w hen le v era gin g e xis ti n g p re hir e a sse ssm ent

t o ols to s c re en f o r a p ro file th ey w ere n’t a ctu ally d esig ned to i d enti fy . In div id ual S kill a nd O rg aniz atio nal A bilit y A re B est D evelo ped in P ara lle l

W hile i t’ s c le ar th at c o m panie s m ust i n v est i n b oth o rg aniz a ti o nal c ap ab iliti e s a nd i n d iv id ual s k ills to

g et th e fu ll benefit of th e C halle nger S ellin g M odel, it’ s le ss cle ar w heth er th ere is a pro per

s e q uencin g o f th o se i n v estm ents . S ho uld c o m panie s f ir s t b uild o rg aniz a ti o nal c ap ab iliti e s o r d ev elo p

r e p sk ills ? T his is a questi o n w e hear ofte n fr o m our m em bers . O ur answ er is th at th e best

o rg aniz a ti o ns w ill i n v est i n b oth e le m ents o f th e m odel c o ncurre ntl y .

We h av e h eard fr o m c o m panie s th at a tte m pte d to d ev elo p C om merc ia l T eachin g m essa ges w ith o ut

a ls o b oosti n g sa le s re p a w are ness a nd sk ills th at th eir re p s re je cte d th e n ew te achin g m essa ges,

p re fe rrin g to go b ack to w hat th ey’re co m fo rta b le and fa m ilia r w ith . S im ila rly , co m panie s th at

i n v este d in r e p s k ills b ut n o t in o rg aniz a ti o nal c ap ab iliti e s le ft r e p s fe elin g th at th ey la cked th e to ols

t o tr u ly e xecute o n th e m odel a s i t w as i n te nd ed to b e e m plo yed . B y c o ntr a st, o rg aniz a ti o ns th at p urs u e

b oth tr a cks s im ulta neo usly a re p rim ed f o r e ffe cti v e, d ynam ic c o lla b ora ti o n. R ep s, s e ein g th e p ow er o f

t h e C halle nger a p pro ach, c re ate p ull- th ro ugh d em and fo r te achin g m essa ges fr o m m ark eti n g, w hile

m ark eti n g, h av in g sim ila rly b ought in to th e v is io n o f th e C halle nger a p pro ach, e nlis ts sa le s a s a

p ow erfu l so urc e of in sig ht ra w m ate ria ls (i.e ., m essa ges bein g deliv ere d by hig h-p erfo rm in g

C halle ngers r ig ht n o w ). Don’t J ust C hange t h e T ra in in g, C hange W hat H appens B efo re a nd A fte r

O uts id e o f c o m pensa ti o n, s a le s tr a in in g r e p re se nts o ne o f th e b ig gest d is c re ti o nary s p end in g a re as f o r

a s a le s o rg aniz a ti o n. It a ls o re p re se nts o ne o f th e b ig gest ti m e a nd m oney s in ks. R ese arc h b y N eil

R ackham h as s h o w n th at 8 7 p erc ent o f s a le s tr a in in g c o nte nt i s f o rg o tte n b y r e p s w ith in th ir ty d ays.

The C halle nger S ellin g M odel r e q uir e s la rg e-s c ale b ehav io r c hange fr o m r e p s, p utti n g h eig hte ned

p re ssu re o n s a le s L & D (le arn in g a nd d ev elo pm ent) fu ncti o ns to d eliv er c hange a nd s u sta in it o ver

t i m e. C oachin g is a p rin cip al le v er fo r b oosti n g tr a in in g sti c kin ess. B ut th ere a re o th er im porta nt

c o nsid era ti o ns a s w ell. In a r e cent S ale s E xecuti v e C ouncil s tu d y, w e fo und th at s o m e o f th e b ig gest

o pportu niti e s fo r im pro vin g sa le s tr a in in g co nte nt re te nti o n hav e littl e to d o w ith im pro vin g th e

t r a in in g its e lf. In ste ad , it’ s w hat co m panie s can d o b efo re and afte r tr a in in g th at re ally m akes a

d iffe re nce.

Lead in g co m panie s are doin g th re e th in gs to sig nific antl y boost th e R O I of th eir tr a in in g

i n v estm ents : F ir s t, th ey a re b oosti n g r e p d em and fo r c hange a nd g enera ti n g tr a in in g b uzz b efo re it is

r o lle d o ut; s e co nd , th ey a re e ngin eerin g h ig h-q uality e xp erie nti a l le arn in g th at g iv es r e p s a s e nse o f

“ sa fe pra cti c e” fo cuse d on re al acco unts ; and th ir d , th ey are cre ati n g su sta in ed behav io ra l

c erti fic ati o n p ro gra m s to r e in fo rc e l e arn in g o ver ti m e.

This is o ne o f th e b ig d iffe re nces in th e w ay o ur S olu ti o ns g ro up h as d esig ned o ur C halle nger

D ev elo pm ent P ro gra m . W hile th e c o nte nt o f th e tr a in in g is o bvio usly u niq ue s in ce it is b uilt a ro und

t h e C halle nger b ehav io rs , it’ s a ls o a b out h elp in g m em ber c o m panie s g enera te th e so rt o f “ so cia l

d em and ” th ey n eed i n o rd er to a v oid th e p erc ep ti o n th at th e tr a in in g i s j u st a no th er to p-d ow n m and ate .

I n a d diti o n, w e f o cus h eav ily o n th e c o ncep t o f “ sa fe p ra cti c e,” d eliv erin g e xp erie nti a l l e arn in g i n th e

c la ssro om th at’ s l e d b y f o rm er s a le s l e ad ers f r o m c o m panie s l ik e D uP ont, M erc k, N ik e, I B M , B ank o f

N ew Y ork M ello n, a nd P ro cte r a nd G am ble . A nd i t’ s i m porta nt th at w e g et b eyo nd th e u su al “ d id y o u

l e arn a nyth in g?” a sse ssm ents th at m ost c o m panie s f o cus o n a s a w ay to g auge w heth er tr a in in g “ stu ck”

a t a ll w ith r e p s, a nd in ste ad fo cus o n a s tr u ctu re d a p pro ach to r e in fo rc in g th e tr a in in g o n a n o ngo in g

b asis ( s p end in g a l o t o f ti m e w ith m anagers , w ho w ill d riv e th is c hange th ro ugh o ngo in g c o achin g) s o

t h at w e c an c erti fy th at r e p s a re a ctu ally

pra ctic in g

th e n ew b ehav io rs th ey le arn ed in th e c la ssro om

a nd a chie v in g th e i n te nd ed s a le s r e su lts .

These p rin cip le s a re s m art to a d here to . W e a d vis e a ll o f o ur m em bers to th in k h ard a b out th e

“ b efo re a nd a fte r” o f th eir tr a in in g s o th at th ey c an m ake s u re th ere ’s d em and f o r i t a m ong r e p s a nd s o

t h at th ey k no w th ey’re g etti n g a r e tu rn o n th is i m porta nt i n v estm ent. LESSO NS F O R M AR K ETIN G L EA D ER S

Sto p T ellin g t h e W orld H ow “ C usto m er-c e ntr ic ” Y ou A re

M ore th an e v er b efo re , s u p plie rs a re e m phasiz in g h o w th ey p ut “ th e c usto m er fir s t.” T he a ssu m pti o n

i s th at if y o u w ant to g ro w c o m in g o ut o f th e re cent d ow ntu rn , y o u’re g o in g to h av e to e nsu re th at

e v ery th in g y o u d o d eliv ers m axim um c usto m er v alu e. B ut th ere a re s e v era l w ays to b e “ custo m er-

c entr ic ” th at a re a ctu ally b ad fo r b usin ess. T w o e xam ple s o f th is th at w e h ear fr e q uentl y fr o m S E C

m em bers a re ( 1 ) d is c o unts a nd o th er te rm s a nd c o nd iti o ns th at u nd erm in e p ro fita b ility i n e xchange f o r

l ittl e lo ng-te rm g ain , a nd (2 ) a ssu m in g a n o rd er-ta ker p ostu re w ith th e c usto m er (i.e ., ta kin g s h o rt-

t e rm o rd ers w hen th e c usto m er i s p ush in g f o r th em , i n ste ad o f g etti n g th em to th in k a b out l o nger-te rm

b usin ess).

We h av e h eard th e te rm “ custo m er-c entr ic ity ” so o veru se d th at it h as b een c o m ple te ly w ate re d

d ow n. J u st b ecause y o u in v olv e c usto m ers in y o ur R & D p ro cess, fo r e xam ple , d oes n o t m ean y o ur

a v era ge sa le s re p u nd ers ta nd s, a s o ne o f o ur m em bers p ut it, “ w hat y o ur k ey c usto m er d oes a nd

s tr u ggle s w ith f o r te n h o urs a d ay i n th eir o ffic e.” T hat i s c usto m er-c entr ic ity i n th e s a le s w orld — and

i t’ s v ery r a re th at r e p s h av e th is .

The b otto m lin e is v ery s im ple : If y o u tr u ly w ant to b uild a “ custo m er-c entr ic ” o rg aniz a ti o n, th en

y o u’re actu ally go in g to hav e to b uild an

in sig ht- c en tr ic

o rg aniz a ti o n— a co m merc ia l ente rp ris e

s p ecific ally d esig ned to g enera te n ew -to -th e w orld in sig hts th at te ach c usto m ers to th in k d iffe re ntl y

n o t a b out y o ur p ro ducts a nd s o lu ti o ns, b ut a b out th eir b usin ess. There I s N o S id este ppin g t h e “ D eb O le r Q uestio n”

“ W hy s h o uld y o ur c usto m ers b uy fr o m y o u in ste ad o f y o ur c o m peti to rs ? ” If y o u c an’t a nsw er th is

q uesti o n, y o u d on’t h av e a C halle nger S ellin g M odel.

The C halle nger a p pro ach is a b out r e fr a m in g th e c usto m er’s w orld vie w , g iv in g th em a n ew w ay to

t h in k a b out h o w to s a v e o r m ake m oney. T here a re lo ts o f id ea s fo r s a v in g a nd m akin g m oney th at

y o ur c usto m ers m ig ht v alu e, b ut m ost o f th ese a re n’t g o in g to lin k b ack to c ap ab iliti e s w here y o u

o utp erfo rm th e c o m peti ti o n. I f y o u c an’t s a y w hat d iffe re nti a te s y o u— why y o ur c usto m ers s h o uld b uy

f r o m y o u i n ste ad o f a c o m peti to r— yo u c an’t te ach th em to v alu e w hat m akes y o u d iffe re nt.

Every c o m pany h as

so m e

u niq ue d iffe re nti a to r, o th erw is e th ey p ro bab ly w ould n’t e xis t. T hat s a id ,

w hen it c o m es to th e in sig hts th at le ad to th o se u niq ue b enefits , th ere ’s n o n eed to s ta rt fr o m s c ra tc h.

S av vy m ark eti n g o rg aniz a ti o ns und ers ta nd th at th ey hav e C halle ngers o ut in th e fie ld rig ht no w

t e achin g c usto m ers n ew in sig hts th at c an ju m p-s ta rt th eir o w n e ffo rts to b uild m ore s c ala b le — and

s u sta in ab le — Com merc ia l T eachin g c ap ab iliti e s. Never P ut T hese T en W ord s in Y our P it c h D eck

T ake a c lo se l o ok a t y o ur s ta nd ard p itc h d eck, th e “ ab out u s” s e cti o n o n y o ur c o rp ora te h o m e p age, o r

y o ur PR m ate ria l. H ig hlig ht ev ery in sta nce of th e w ord s “le ad in g,” “uniq ue,” “so lu ti o n,” or

“ in no vati v e.” I n p arti c ula r, g o f in d a ll i n sta nces o f th e p hra se “ W e w ork to u nd ers ta nd o ur c usto m ers ’

u niq ue n eed s a nd th en b uild c usto m s o lu ti o ns to m eet th o se n eed s.” T hen h it th e d ele te k ey. B ecause

e v ery ti m e y o u u se o ne o f th o se b uzzw ord s, y o u a re te llin g y o ur c usto m ers , “ W e a re e xactl y th e s a m e

a s e v ery o ne e ls e .”

Ir o nic ally , th e m ore w e tr y to p la y u p o ur d iffe re nces, th e m ore th in gs so und th e sa m e. P ub lic

r e la ti o ns e xp ert A dam S herk re centl y a naly ze d th e te rm s u se d in c o m pany c o m munic ati o ns, a nd th e

r e su lts a re d ev asta ti n g. H ere a re th e to p te n:

By d efin iti o n, th ere c an b e o nly o ne le ad er in a ny in d ustr y — and 1 61,0 00 c o m panie s e ach th in k

t h ey’re it. M ore th an 7 5,0 00 c o m panie s th in k th ey’re th e “ b est” o r th e “ to p”; 3 0,4 00 th in k th ey’re

“ uniq ue.” “ S olu ti o n” a ls o m akes a n a p peara nce a t n um ber s e v en— so if y o u th in k th at c allin g y o ur

o ffe rin g a “so lu ti o n” d iffe re nti a te s yo u, th in k again . If ev ery o ne’s sa yin g th ey o ffe r th e “le ad in g

s o lu ti o n,” w hat’ s th e c usto m er to th in k? W e c an te ll y o u w hat th eir r e sp onse w ill b e: “ G re at— giv e m e

1 0 p erc ent o ff.” W e d on’t m ean to b e u nsy m path eti c h ere . Y ou’ll f in d i t’ s h ard to a v oid th ese te rm s—

h eck, w e c all o ur o w n c o nsu lti n g a rm “ S E C S olu ti o ns” !

In all o f o ur ti m e at th e C ouncil, w e hav e nev er o nce m et a m em ber w ho d oesn ’t th in k her

c o m pany’s v alu e p ro positi o n b eats th e s o cks o ff th e c o m peti to rs ’. A nd it’ s u nd ers ta nd ab le . A fte r a ll,

w hy w ould w e w ant to w ork f o r a c o m pany w ho se p ro duct i s s e co nd -ra te — esp ecia lly w hen o ur j o b

i s to se ll th at p ro duct? B ut w hat th e u tte r sa m eness o f la nguage h ere te lls u s is th at, ir o nic ally , a

s tr a te gy o f m ore p re cis e ly d esc rib in g o ur p ro ducts ’ a d vanta ges o ver th e c o m peti ti o n’s is d esti n ed to

h av e th e e xact o pposite e ffe ct— we s im ply e nd u p s o und in g l ik e e v ery o ne e ls e .

Our m em bers ’ c usto m ers to ld u s th e s a m e th in g: A s g re at a s y o ur p ro ducts a re , th ey’re n o t

th at

m uch d iffe re nt fr o m th e c o m peti ti o n. N o m atte r h o w m uch y o u te ll c usto m ers , “ W e’re h ere to c re ate

q uanti fia b le b usin ess v alu e,” k eep i n m in d th at th e n ext s a le s r e p th ro ugh th e d oor i s s a yin g th e e xact

s a m e th in g. W e o nce s p oke to a p ro cure m ent e xecuti v e a t a f o od c o m pany w ho to ld u s, “ E very ti m e I hear th e w ord ‘v alu e,’ m y d efe nse s g o u p , b ecause th at’ s w hen I k no w th ey’re tr y in g to se ll m e

so m eth in g.” J u st a s a p are nt c an te ll tw in s a p art i n a w ay n o o ne e ls e c an, y o u c an s e e o ur p ro ducts ’

nuances a nd th eir u niq ueness— but y o ur c usto m ers p ro bab ly c an’t.

That s a id , it

is

p ossib le to d iffe re nti a te y o urs e lf fr o m th e c o m peti ti o n. T he tr ic k is n o t to d esc rib e

yo ur d iffe re nces, b ut to m ake c usto m ers v alu e th em . A nd to d o th at, r e m em ber th ese tw o th in gs: F ir s t,

be m em ora b le , n o t a gre eab le . I t’ s n ic e to h av e a b usin ess c o nv ers a ti o n a b out p ro fits a nd c ap ab iliti e s,

or a r e la ti o nsh ip c o nv ers a ti o n a ro und s p orts a nd k id s, b ut u nle ss y o u f r a m e y o ur c o nv ers a ti o n a ro und

an e d gy o r u niq ue in sig ht, th e c usto m er w ill fo rg et e v ery th in g y o u s a id a s s o on a s y o u w alk o ut th e

door. B ein g d iffe re nt s o und s r is k y, b ut i t’ s b ette r th an b ein g f o rg etta b le .

Seco nd , b uild a p itc h th at le ad s

to

yo ur so lu ti o n, no t

with

it. B efo re ev en ta lk in g ab out yo ur

cap ab iliti e s, te ach c usto m ers a b out a p ro ble m th ey d id n’t e v en k no w th ey h ad — one th at y o u c an

so lv e b ette r th an yo ur co m peti to rs . O nly th en sh o uld yo u le ad in to th e d eta ils o f yo ur sp ecific

so lu ti o n. LESSO NS F O R A LL S E N IO R L EA D ER S

Tole ra te ( L im it e d) R eje ctio n o f t h e M odel

O ne o f th e q uesti o ns w e g et fr e q uentl y is a b out h ig h p erfo rm ers w ho a re n’t C halle ngers . S ho uld

o rg aniz a ti o ns fo rc e re p s w ho beat quo ta — but are m ore natu ra lly dis p ose d to a diffe re nt, no n-

C halle nger se llin g a p pro ach— to c hange h o w th ey e ngage w ith c usto m ers ? O ur a nsw er is n o , y o u

s h o uld n’t, b ut th ere a re s o m e i m porta nt c av eats h ere .

One o f th e le sso ns w e’v e le arn ed ab out any ty p e o f change in th e sa le s o rg aniz a ti o n is th at

c o m panie s s h o uld n’t s h o ot fo r 1 00 p erc ent a d opti o n. W e’v e fo und th at th e b est c o m panie s s h o ot fo r

8 0 p erc ent a d opti o n o f a ny c hange— wheth er a n ew sk ill, to ol, p ro cess, o r sy ste m . T he fin al 2 0

p erc ent is a lw ays h ugely p ain fu l to a tta in . E xem pla rs sh o ot fo r 8 0 p erc ent a nd le t th e re st o f th e

o rg aniz a ti o n c o m e a lo ng a t th eir o w n p ace, p ro vid ed th ese re p s a re b eati n g g o al (a nd n o t b ein g

d etr im enta l to th e b ro ad er tr a nsfo rm ati o n e ffo rt) .

The sa m e ru le a p plie s fo r d riv in g th e C halle nger a p pro ach a m ong sa le s re p s. S om e re p s w ill

s im ply b uck th e jo urn ey a nd p oin t to th eir p erfo rm ance a s e v id ence th at th ey d on’t n eed to c hange.

T his i s f in e, b ut o nly a s l o ng a s th ey c o nti n ue to b eat g o al. T he w ay w e th in k a b out i t i s th is : W hen a

n ew s ta nd ard fo r s a le s e xcelle nce h as b een d efin ed b y th e o rg aniz a ti o n ( in th is c ase , th e C halle nger

S ellin g M odel) , th o se w ho r e fu se to m ake th e jo urn ey a re e ffe cti v ely th e n ew L one W olv es. A nd a s

w e d is c usse d e arlie r i n th is b ook, th e r u le o f th um b f o r m anagin g a L one W olf i s “ liv e b y th e s w ord ,

d ie b y th e sw ord .” T he m in ute th eir p erfo rm ance slip s, th ey n eed to a d opt th e n ew a p pro ach o r

r e lin q uis h th eir s e at i n th e o rg aniz a ti o n to s o m eb ody e ls e w ho w ill.

Hig h perfo rm ers sh are a co m mon co de— th ey are alw ays eager to und ers ta nd ho w th ey can

i m pro ve th eir o w n p erfo rm ance. T here fo re , th ey a re u su ally th e

fir st

re p s to w ant to tr y s o m eth in g

n ew . T hin k o f th ese r e p s a s y o ur e lite a th le te s. A th le ti c h ig h p erfo rm ers a re a lw ays lo okin g fo r th at

e xtr a e d ge. If th ere is a n ew te chno lo gy th at h elp s, th ey a d opt it. If th ere ’s a n ew tr a in in g a p pro ach

t h ey b elie v e in , th ey in co rp ora te it. If th ere is a n ew s k ill th at’ s b een s h o w n to y ie ld b ette r r e su lts ,

t h ey w ant it. H ig h-p erfo rm in g s a le sp eo ple a re n o d iffe re nt. T hey a re th e o nes w ho w ill re ad u p o n

s a le s ( m any o f th em h av e p ro bab ly b eate n y o u to th e p unch i n r e ad in g th is b ook). T hey a re a lw ays o n

t h e l o oko ut f o r m essa gin g, to ols , a nd w ays to p ositi o n d eals th at h av e b een tr ie d s u ccessfu lly b y th eir

p eers .

But lik e e lite a th le te s, h ig h-p erfo rm in g r e p s a re h ig hly d is c rim in ati n g. If th ey d on’t s e e v alu e in a

n ew ap pro ach, th ey w ill re je ct it. There fo re , if co m panie s can id enti fy th eir hig h-p erfo rm er

C halle ngers ( a s w ell a s h ig h-p erfo rm er m anagers w ho e xhib it C halle nger s k ills ) a nd tu rn th em in to

c ham pio ns e arly o n, th e r e st o f th e o rg aniz a ti o n i s l ik ely to f o llo w .

Rig ht n o w , th e C halle nger S ellin g M odel i s a n o vel a p pro ach, b ut s o on i t w ill b eco m e th e s ta nd ard .

T ho se w ho r e fu se to a d opt it w ill fin d it in cre asin gly d iffic ult to e ngage w ith c usto m ers w hen th o se

v ery c usto m ers a re b ein g e ngaged b y re p s fr o m o th er c o m panie s w ho

are

em plo yin g C halle nger

m eth o ds. T he s ta te o f th e a rt m oves a nd e v olv es. A dvanta ges a ccru e to th e e arly a d opte rs , to b e s u re ,

b ut e v entu ally a d opti o n i s n ’t a n o pti o n a nym ore ; i t’ s a r e q uir e m ent.

For s a le s le ad ers s tr u gglin g w ith th at “ fin al 2 0 p erc ent” w ho r e fu se to m ake th e jo urn ey n o w , it’ s

r e ally j u st a m atte r o f ti m e. I f th ese r e p s a re b eati n g q uo ta , l e t th em s e ll th eir w ay. B ut th ey’ll f in d th at

o verp er-fo rm ance h ard er to a tta in y ear a fte r y ear, w ill g et fr u str a te d a s o th ers in th e o rg aniz a ti o n

d is p la ce th em o n th e P re sid ent’ s C lu b r a nkin gs, a nd th ey’ll g iv e th e n ew m eth o ds a s h o t to o. Expect C asu alt ie s

S om e o f yo ur re p s— in o ur exp erie nce, b etw een 2 0 and 3 0 p erc ent— pro bab ly w on’t m ake th e

t r a nsiti o n to th e C halle nger m odel. M ayb e th ey’re ju st to o s tu ck in th eir w ays, o r m ayb e w hen th ey

s e e th e C halle nger p ro file , th eir r e acti o n i s , “ W ho a, th at’ s n o t w hat I s ig ned u p f o r.”

This d oesn ’t m ean th ey’re b ad e m plo yees. B ut it a ls o d oesn ’t m ean y o u’d w ant th em in a q uo ta -

c arry in g ro le , e sp ecia lly o n y o ur m ore c o m ple x a cco unts . M any o f o ur m em bers h av e fo und th ese

i n d iv id uals to b e e xtr e m ely w ell s u ite d , fo r e xam ple , to a c usto m er s e rv ic e ro le , o r p erh ap s e v en

m ore in tr ig uin g, fo r a m ark eti n g o r p ro duct sp ecia lis t ro le — pla ces w here th ey k no w th e fr o ntl in e

b usin ess w ell, b ut a re n’t o n th e h o ok to fa ce o ff w ith c usto m ers in a c halle ngin g m anner in th e s a m e

w ay a s a le s r e p w ill n eed to .

Eith er w ay, k eep i n m in d th at i f 2 0 to 3 0 p erc ent o f y o ur s a le s f o rc e

ca n’t

m ake th e tr a nsiti o n, th at

m eans th at 7 0 to 8 0 p erc ent

ca n

. A nd th at’ s r e ally g o od n ew s f o r s a le s l e ad ers . R em em ber, th is i s n ’t

a b out r e w ir in g p eo ple ’s D NA o r c hangin g w ho th ey a re a s a p ers o n. It’ s a b out e q uip pin g th em w ith

t h e s k ills , to ols , a nd c o achin g th ey n eed to

act

l ik e a C halle nger w hen th ey’re i n f r o nt o f th e c usto m er

— and th at’ s s o m eth in g m any r e p s n o t o nly a re a b le to d o, b ut a ls o a re e xcite d to tr y . It o ffe rs th em a

w ho le n ew a nd m uch m ore c o ncre te p ath to p ro fe ssio nal s u ccess th an th ey’v e e v er h ad in th e p ast.

W e’re n o t a sk in g r e p s to c hange

who t h ey a re

, j u st h o w th ey s e ll. Consid er P ilo tin g B efo re B ro adly L aunch in g

W . W . G ra in ger, In c., p ro file d in c hap te r 5 , to ok a v ery c are fu l, p ilo t- b ase d a p pro ach to r o llin g o ut

t h eir n ew s a le s m odel a nd te achin g c o lla te ra l. M ost c o m panie s p ilo t n ew to ols to u nd ers ta nd w hat

m odific ati o ns s h o uld b e m ad e b efo re l a unchin g th em to th e e nti r e o rg aniz a ti o n, b ut G ra in ger g o es o ne

s te p fu rth er. T hey p ilo t to ols to u nd ers ta nd w hen a nd w hy a d opti o n w ill p la te au. T hey’re a fte r fo ur

q uesti o ns, s p ecific ally :

1. H ow b ig is th e e arly a d opte r g ro up fo r th is to ol (i.e ., w hen is th e a d opti o n c urv e lik ely to

pla te au)?

2. W ho a re th e e arly a d opte rs , a nd h o w a re th ey d iffe re nt f r o m n o nad opte rs ?

3. W hat m etr ic s c an w e tr a ck to m ore a ccura te ly p re d ic t th e i m pact o f th is to ol?

4. W hat c an w e le arn fr o m th is e xp erie nce to im pro ve to ol im pact a nd p ush g re ate r a d opti o n

am ong th e m ajo rity w ho d on’t a d opt?

By a nsw erin g th ese q uesti o ns, G ra in ger’s s a le s o pera ti o ns te am c an b uild a p la n f o r h o w to b re ak

t h ro ugh a d opti o n p la te aus w hen th ey o ccur.

Gra in ger fin d s th at re p s n atu ra lly c lu ste r in to o ne o f th e fo llo w in g ti m e-b ase d se gm ents w hen

d ecid in g w heth er to a d opt a to ol: e arly a d opte rs , m ajo rity , l a ggard s, a nd n aysa yers . P ush in g to o e arly

f o r a d opti o n to a g iv en se gm ent b efo re su ccessfu lly w in nin g o ver th e p re v io us se gm ent c an b e a

w aste o f o rg aniz a ti o nal e nerg y. F or e xam ple , th e m ajo rity p opula ti o n w aits to o bse rv e e arly to ol

s u ccess, w hile th e l a ggard s n eed to s e e s u ccess f r o m a p eer c lo se r to th eir s e gm ent b efo re a ccep ta nce

w ill o ccur. T arg eti n g th e c o rre ct p opula ti o n a t th e rig ht ti m e w ith th e a p pro pria te a d vocate s a nd

t h ro ugh th e r ig ht c hannels i s th e k ey to d riv in g a d opti o n b eyo nd th e “ chasm ” th at c o m panie s n o rm ally

h it o nce th e e arly a d opte rs h av e a ll a d opte d — very s im ila r to r o llin g o ut a n ew p ro duct to th e m ark et.

One ad diti o nal no te ab out th e G ra in ger ad opti o n p ra cti c e: P ro xim ity m atte rs . S om eth in g sa le s

m anagers lo ve to d o is to te ll th eir a v era ge p erfo rm ers to d o w hat th eir h ig h p erfo rm ers d o. B ut

m odelin g s ta r-p erfo rm in g s a le s b ehav io r a s a w ay o f “ se llin g” c hange in te rn ally c an a ctu ally le ad to

f a ilu re . In te rm s o f p re sc rib in g th e r ig ht a cti o ns, fo llo w in g h ig h-p erfo rm er b ehav io r is th e r ig ht p la y

— and th is b ook g o es in to so m e d eta il a b out o ur p ers p ecti v e o n a sp ecific se t o f h ig h-p erfo rm er

b ehav io rs th at y o u s h o uld r e p lic ate — but w hen i t c o m es ti m e to r o ll th is c hange o ut, th is a p pro ach o f

“ d o w hat th e h ig h p erfo rm ers a re d oin g” c an a ctu ally d o m ore h arm th an g o od.

Why? P eo ple d on’t s ta rt u sin g to ols o r p ra cti c in g c erta in b ehav io rs b ecause s ta r p erfo rm ers h av e

s u ccess— th ey u se th em b ecause p eo ple

ju st l ik e t h em

a re h av in g s u ccess. T o r o ll th is n ew a p pro ach

o ut to th e bro ad er sa le s fo rc e, yo u als o need to lo ok fo r and docum ent exam ple s of

avera ge

p erfo rm ers

i n d iffe re nt m ark ets o r w ith d iffe re nt p ro duct p ortf o lio s w ho w ent f r o m n o n-C halle nger to

C halle nger a nd h ad s u ccess d oin g i t. A nd th at o bvio usly c an’t h ap pen w ith o ut th e r ig ht ty p e o f p ilo t. Term in olo gy M atte rs

W e k no w th at th e te rm “ C halle nger” c an ru b p eo ple th e w ro ng w ay. W e’v e h eard e v ery m anner o f

p ush b ack h ere y o u c an im agin e. S om e c o m panie s fe ar it w ill m ake th eir re p s th in k it’ s o kay to b e

a ggre ssiv e o r b ru ti s h i n th e m ark et. O th ers f e ar th at d ra w in g a c o ntr a st w ith th e R ela ti o nsh ip B uild er

w ill m ake r e p s th in k th at r e la ti o nsh ip s a re n o l o nger i m porta nt to y o ur b usin ess.

Som e o f o ur m em bers h av e a sk ed u s w hy w e w ould n’t in ste ad c all th e C halle nger th e “ N ew

R ela ti o nsh ip B uild er” if, in fa ct, w e are sa yin g th at th e C halle nger actu ally build s

str o nger

r e la ti o nsh ip s w ith custo m ers . The re aso n is sim ple : N obody care s ab out “N ew R ela ti o nsh ip

B uild ers .” I n c ase y o u d on’t b elie v e u s, a sk y o urs e lf th is : W ould y o u h av e b ought th is b ook i f i t w as

a b out h o w to b uild “ N ew R ela ti o nsh ip B uild ers ” ? T he a nsw er i s a lm ost c erta in ly n o .

In o rd er to g et th e o rg aniz a ti o n to p ay a tte nti o n to th e c hange y o u a re d riv in g, y o u m ust c re ate

c o gniti v e d is so nance. T here m ust b e a m om ent w hen re p s u nd ers ta nd , v ery c le arly , to “ d o th is , n o t

t h at.” I f th e n ew m odel f e els l ik e a tw eak o n th e o ld . . . w ell, w hy b oth er c hangin g? C hange, a fte r a ll,

i s h ard w ork . I f r e p s s e e a c le ar A -to -B m ove ( v ers u s a n A v 1.0 -to -A v 2.0 ), th ey a re f a r m ore l ik ely

t o s e e th is a s d iffe re nt i n ste ad o f a f la v or o f th e w eek, o r w ors e , m ore o f th e s a m e.

Don’t w ate r d ow n th e m essa ge. P art o f th e p ow er o f th is r e se arc h ( a s c o nfir m ed b y e arly a d opte rs

o f th e m odel its e lf) is th e

co ntr a st

it o ffe rs b etw een th e o ld w ay a nd th e n ew , m ore e ffe cti v e w ay to

s e ll. A lig nin g th e m essa ge to th e o ld w ay o f se llin g m eans th at re p s

may

a d ju st b ehav io r a t th e

m arg in s, b ut m ost w ill fa il to s e e it fo r w hat it is a nd w on’t d o a nyth in g d iffe re ntl y a s a r e su lt. T he

b est g auge o f th e p ow er o f y o ur m essa ge to th e o rg aniz a ti o n is h o w m any p eo ple

dis a gre e

w ith y o u

a nd w ant to d eb ate — th is is p ro bab ly tr u e o f a nyth in g, b ut it’ s e sp ecia lly tr u e w hen y o u’re ta lk in g

a b out d riv in g c hange i n th e s a le s o rg aniz a ti o n, w ho se i n erti a a ro und l e gacy w ays o f d oin g th in gs c an

b e h ard to b re ak, to p ut i t m ild ly .

If y o u a re a s a le s le ad er o r a tr a in in g p ro fe ssio nal, in o th er w ord s, y o u n eed to b e a C halle nger

y o urs e lf. T each r e p s to v alu e th e c hange y o u a re s e llin g to th em . P ic kin g a gre eab le te rm s th at d on’t

r u ffle fe ath ers m ig ht m ake ev ery b ody in th e org aniz a ti o n fe el go od, but re st assu re d , fe w w ill

r e m em ber w hat y o u s a id a nd y o u w ill b e fa r le ss lik ely to c o m pel c hange a s a re su lt. A nd , a s w e

k no w , th e sa m e is tr u e fo r re p s p re se nti n g to custo m ers — it is th e C halle ngers ’ d esir e to cre ate

c o nstr u cti v e te nsio n ( o fte n w ith s p ecific l a nguage a nd d ata th at r e fr a m e th e c usto m er’s v ie w o f th in gs)

t h at c re ate s a d iffe re nti a te d s a le s e xp erie nce, o ne th at u lti m ate ly b uild s m ore l o yal c usto m ers . Bew are t h e “ C halle ngin g W on’t W ork H ere ” T ra p

A questi o n w e get fr o m our m em bers w ho opera te glo bal sa le s org aniz a ti o ns is w heth er th e

C halle nger S ellin g M odel is ap pro pria te fo r no n-W este rn m ark ets . T he ro ot of th is questi o n is

t y p ic ally b ase d o n th e co ncern th at in certa in m ark ets , nam ely in A sia -P acific , “challe ngin g” is

s o m eti m es s e en a s a ggre ssiv e, a rro gant, a nd p ote nti a lly o ffe nsiv e to c usto m ers .

We a rg ue th at o ne o f th e fu nd am enta l p re cep ts o f th e C halle nger m odel— th at c usto m ers re w ard

t h o se o rg aniz a ti o ns a nd th o se s a le s r e p s w ho b rin g

in sig ht

to th e ta b le — is tr u e r e gard le ss o f w here

y o u s e ll o r to w ho m y o u s e ll. T his i s c o rro bora te d n o t o nly b y o ur o w n c usto m er l o yalty s tu d y, w hic h

i n clu d ed c usto m ers fr o m a ro und th e w orld , b ut a ls o b y o ur m em bers , m any o f w ho m h av e y ears o f

e xp erie nce m anagin g s a le s o rg aniz a ti o ns in o vers e as m ark ets . T he d esir e fo r n ew id eas to h elp s a v e

m oney o r m ake m oney i s n o t l im ite d to W este rn c usto m ers .

How ev er, so m e co ncep ts lik ely need to be fin esse d so sa le s re p s and m anagers in certa in

g eo gra p hic m ark ets lik e A sia -P acific d on’t r e je ct th em o ut o f h and . W e h av e fo und th at s o m e A sia n

s a le s o rg aniz a ti o ns b alk a t th e te rm “ C halle nger” a nd d on’t lik e th e n o ti o n o f “ te achin g” c usto m ers .

B oth th e p ro ble m a nd th e s o lu ti o n a re s e m anti c in n atu re . W hile w e w ould a rg ue fo r n o t w ate rin g

d ow n th e C halle nger m essa ge b y g iv in g it a d iffe re nt n am e, it is re la ti v ely e asy to s h ift te rm s lik e

“ te achin g” to “ sh arin g a nd d eliv erin g i n sig hts .”

One o f o ur m em bers s h are d h er e xp erie nces p re se nti n g th e C halle nger w ork to h er s a le s te am s in

C hin a. S he w as s u rp ris e d a t th e u nenth usia sti c re sp onse to h er fir s t fe w p re se nta ti o ns. A fte r th re e

s u ch s e ssio ns w ith lo cal s a le s te am s, s h e p ulle d o ne o f h er lo ngti m e d ir e ct r e p orts a sid e to a sk w hy

t h e s a le s m anagers a nd r e p s d id n’t s e em e xcite d a b out th e C halle nger c o ncep t— afte r a ll, th eir p eers

i n th e U nite d S ta te s a nd in E uro pe w ere r e ally fir e d u p a b out it. H er d ir e ct r e p ort e xp la in ed th at th e

s a le s te am s

did

f in d th e r e se arc h i n te re sti n g, b ut th ey w ere c o ncern ed a b out s o m e o f th e l a nguage. H e

s u ggeste d a slig ht m odific ati o n: A dd th e w ord “ re sp ectf u lly ” b efo re sh e sa id th in gs lik e “ te ach,”

“ challe nge,” o r “ ta ke c o ntr o l.” In th e n ext s e ssio n, w ith th is s lig ht m odific ati o n, s h e fo und th e s a le s

t e am s

much

m ore e ngaged th ro ugho ut th e d is c ussio n— ask in g q uesti o ns a nd ta lk in g o penly a b out h o w

t o “ re sp ectf u lly c halle nge” th eir c usto m ers ’ th in kin g b y b rin gin g n ew i n sig hts to th e d is c ussio n.

While c halle ngin g h o ld s in n o n-W este rn m ark ets , th e

way

in w hic h o ne c halle nges is p ro bab ly a

l ittl e d iffe re nt. T he w ay th at id eas a re in tr o duced to a nd d is c usse d w ith th e c usto m er c o uld v ary

b ase d o n c ultu ra l p atte rn s o f b ehav io r, b ut th is is n o d iffe re nt fr o m th e w ay s e llin g h as a lw ays b een

d one. W hile th e b asic p rin cip le s a re th e s a m e fo r e v ery c ultu re , th e e xecuti o n v arie s to m eet lo cal

n o rm s o f b ehav io r a nd d ia lo gue. I n o th er w ord s, c halle nge b ut ta ilo r a cco rd in gly ! Sta rt N ow

W e s a id i t b efo re , b ut w e’ll s a y i t a gain . I f y o u a re l o okin g f o r a q uic k f ix , l o ok e ls e w here . W e h av e

s e en q uic k w in s fr o m r o llin g o ut th e C halle nger S ellin g M odel— one c o m pany w e h elp ed im ple m ent

t h e m odel re p orte d 6 p erc ent m ark et sh are g ro w th in tw elv e m onth s, a nd a no th er b ro ught in th eir

l a rg est- e v er d eal w ith in a q uarte r o f ro llin g o ut C halle nger tr a in in g— but g etti n g it fu lly “ in sta lle d ”

w on’t h ap pen o vern ig ht.

The C halle nger S ellin g M odel is a c o m merc ia l tr a nsfo rm ati o n. G etti n g it r ig ht r e q uir e s s ig nific ant

c hanges to th e w ay s a le s a nd m ark eti n g in te ra ct, to th e k in d o f to ols y o u a rm y o ur r e p s w ith , th e s o rt

o f r e p s y o u r e cru it, th e k in d o f tr a in in g y o u d eliv er to th em , a nd th e w ay m anagers i n te ra ct w ith th em .

G etti n g th is r ig ht— all o f it— is h ard . T he m ajo rity o f th e c o m panie s p ro file d in th is b ook w ould te ll

y o u th at th is tr a nsfo rm ati o n to ok n o t m onth s, b ut y ears , a nd th at th eir w ork c o nti n ues to th is d ay. A s

w e sa id earlie r in th is book, th e C halle nger S ellin g M odel is a new opera ti n g sy ste m fo r th e

c o m merc ia l o rg aniz a ti o n, n o t j u st a no th er “ b olt- o n” a p plic ati o n to th e e xis ti n g s y ste m .

It’ s n o t a ll b ad n ew s, h o w ev er. M ovin g n o w m eans c hangin g th e w ay y o ur re p s in te ra ct w ith

c usto m ers b efo re y o ur c o m peti to rs d o— and th e d ata i s v ery c le ar a b out w hat c usto m ers w ant. W hile

t h e c o m peti ti o n s e nd s o ut R ela ti o nsh ip B uild ers e q uip ped to h av e o nly fa ct- , fe atu re - a nd b enefit-

f o cuse d co nv ers a ti o ns, yo ur C halle nger re p s are le ad in g w ith in sig hts , te achin g custo m ers ab out

p ro ble m s th ey d id n’t e v en k no w th ey h ad . T he c o m peti ti o n’s r e p s w ill e arn g la nces a t th e c lo ck a nd

d is in genuo us o ffe rs to “ get b ack to th em o n th eir p ro posa ls .” Y our r e p s w ill e arn m ore ti m e f r o m th e

c usto m er, o pen in v ita ti o ns to c o m e b ack, a nd s in cere p ro m is e s to ta ke a cti o n. W hile th e c o m peti ti o n

f o cuse s i ts e nerg ie s o n

fin din g

c usto m ers , y o u w ill b e o ut th ere

makin g

c usto m ers . AFTER W ORD

CHA LLEN GIN G B EY O ND S A LES

T H E O BSE RVA T IO N C AM E

u p a t a l u nch b re ak a t o ne o f o ur m em ber m eeti n gs i n l a te 2 009. W e’d

j u st f in is h ed p re se nti n g th e C halle nger f in d in gs to th e th ir ty m em bers o r s o i n a tte nd ance, a nd th e h ead

o f s a le s f r o m a h ig h-te ch c o m pany l e aned o ver a nd s a id , “ Y ou k no w , I f in d th is C halle nger s tu ff r e ally

f a sc in ati n g— no t b ecause o f w hat it s a ys a b out s a le sp eo ple , w hic h is in te re sti n g, b ut m ore b ecause

i t’ s th e s to ry o f m y c are er a t th is c o m pany.”

Puzzle d , w e a sk ed w hat h e m eant. “ I h av en’t a lw ays b een in s a le s,” h e e xp la in ed . “ I g re w u p in

e ngin eerin g b ut th en s p ent ti m e i n th e I T d ep artm ent, H R, a nd m ark eti n g. S ale s i s a ctu ally a n ew th in g

f o r m e. W hat’ s i n te re sti n g i s th at I w ould th in k th e C halle nger a p pro ach w ould a p ply to a lm ost a ny o f

t h ese f u ncti o ns.” H e c o nti n ued , “ W hen I w as i n I T , w e w ere a lw ays ta lk in g a b out h o w to i m pro ve th e

a b ility o f o ur fo lk s to d eliv er

va lu e

to o ur in te rn al b usin ess c usto m ers . . . y o u k no w , to g et o ut o f

‘ o rd er ta ker’ m ode a nd b e s e en a s a tr u ste d a d vis e r, a c o nsu lta nt to th e lin e, th at s o rt o f th in g. T hen,

w hen I w ent to H R, i t w as th e s a m e d is c ussio n. D itto f o r m ark eti n g. T hat’ s r e ally w hat C halle nger i s

a ll a b out . . . a nd th at’ s n o t a p ro ble m o nly fo r s a le s r e p s. H av e y o u g uys th o ught o f lo okin g a t th is

m odel i n a n o n-s a le s s e tti n g?”

In f a ct, w e h ad n’t, b ut o ur c o lle agues h ere a t th e C orp ora te E xecuti v e B oard h av e.

One o f th e g re at th in gs a b out b ein g p art o f a c o m pany lik e o urs is th at w e h av e h und re d s o f

c o lle agues a ro und th e w orld p ro ducin g c utti n g-e d ge c o nte nt f o r e v ery c o rp ora te f u ncti o n i m agin ab le .

T he S ale s E xecuti v e C ouncil i s p art o f o ur b ro ad er s a le s a nd m ark eti n g p ra cti c e, b ut w e a re j u st o ne

o f f iv e m ajo r p ra cti c e a re as a cro ss th e c o m pany. W e a ls o h av e p ra cti c es i n h um an r e so urc es, f in ance

a nd s tr a te gy, le gal a nd c o m plia nce, a nd in fo rm ati o n te chno lo gy. A ll to ld , o ur c o m pany s e rv es m ore

t h an 2 00,0 00 b usin ess le ad ers a cro ss ro ughly 4 ,8 00 o rg aniz a ti o ns in o ver fifty c o untr ie s. T hat’ s a

p re tty w id e a ngle to g et o n a ny b usin ess i s su e. S o w e p ic ked u p th e p ho ne a nd a sk ed a n um ber o f o ur

s e nio r r e se arc h c o lle agues a nd e v en s o m e o f o ur m em bers , “ D oes th e C halle nger m odel a p ply i n y o ur

w orld ?”

What w e l e arn ed w as f a sc in ati n g a nd s u ggests th at th is m em ber m ig ht b e o n to s o m eth in g. IN TER NAL B U SIN ESS C UST O M ER S W AN T I N SIG HT T O O

B y th is p oin t in th e b ook, o ne th in g th at s h o uld b e v ery c le ar is th at w hat c usto m ers w ant m ore th an

a nyth in g e ls e i s f o r th eir s u p plie rs to d eliv er i n sig ht to th em — new i d eas f o r s a v in g m oney a nd m akin g

m oney th at th ey’d n o t p re v io usly c o nsid ere d . It s h o uld c o m e a s n o s u rp ris e th at

in te rn al

b usin ess

c usto m ers w ant— or p erh ap s m ore a p pro pria te ly , e xp ect— th e s a m e th in g o f th e c o rp ora te fu ncti o ns

t h ey w ork w ith .

Take, fo r e xam ple , H R. O ur s is te r p ra cti c e th at s e rv es h ead s o f r e cru iti n g, C LC R ecru iti n g, fo und

t h at o f a ll o f th e th in gs th at

co uld

a cco unt fo r r e cru ite r e ffe cti v eness, it w as th e r e cru ite r’s a b ility to

b e a s tr a te gic a d vis e r th at a cco unte d fo r 5 2 p erc ent o f e ffe cti v eness, c o m pare d w ith 3 3 p erc ent th at

w as d riv en b y p ip elin e m anagem ent a nd o nly 1 5 p erc ent b y th e a b ility to m anage th e re cru iti n g

p ro cess. T hat’ s a str ik in g fin d in g. B ut w hat w as m ore in te re sti n g w as th at only 19 perc ent of

r e cru ite rs w ould c urre ntl y q ualify a s tr u e ta le nt a d vis e rs to th e b usin ess p artn ers , a cco rd in g to h ead s

o f r e cru iti n g.

We’v e h eard s o m eth in g v ery s im ila r fr o m o ur c o lle agues in th e C EB IT p ra cti c e. L ast y ear, o ur

p ro gra m th at s e rv es C IO s, th e C IO E xecuti v e B oard , lo oked a t th e q uesti o n o f h o w to im pro ve th e

v alu e th at IT b usin ess lia is o ns (th e IT sta ff w ho in te rfa ce w ith lin e executi v es) d eliv er to th eir

i n te rn al c usto m ers . H is to ric ally , th is h as b een a n a re a w here I T d ep artm ents h av e a l o t o f o pportu nity

t o i m pro ve.

The C IO E xecuti v e B oard fo und th at b etw een 2 007 a nd 2 009, th e p erc enta ge o f b usin ess le ad ers

r a ti n g th eir IT d ep artm ents as “effe cti v e” at ap ply in g IT cap ab iliti e s to b usin ess need s actu ally

d eclin ed

. I n 2 007, 3 1 p erc ent o f b usin ess l e ad ers r a te d I T a s “ effe cti v e,” b ut th at n um ber s h ra nk to 2 6

p erc ent i n 2 009. A nd i t’ s n o t j u st s e nio r l e ad ers w ho th in k I T h as r o om to i m pro ve; i t’ s e nd u se rs to o.

I n a 2 009 s u rv ey o f m ore th an 5 ,0 00 e nd u se rs , w e f o und th at a s tu nnin g 7 6 p erc ent

dis a gre ed

w ith th e

s ta te m ent th at th eir j o b p erfo rm ance h ad i m pro ved b ecause o f a n ew s y ste m d eliv ere d b y I T .

What w e’v e fo und in IT is v ery s im ila r to w hat w e’v e fo und in re cru iti n g a nd , o f c o urs e , s a le s.

B usin ess c usto m ers w ant th eir IT b usin ess lia is o ns to b rin g th em n ew id eas fo r h o w th ey c an u se

t e chno lo gy to s a v e m oney o r m ake m oney. E ffic ie nt s e rv ic e d eliv ery is a ll w ell a nd g o od, b ut w hat

t h e b usin ess r e ally v alu es i s i n sig ht i n to h o w th ey c an c o m pete m ore e ffe cti v ely .

Thin k a b out th e p ara lle ls h ere . In o ur s tu d y o f b usin ess c usto m ers , w e fo und th at 5 3 p erc ent o f

l o yalty w as d riv en b y th e s a le s e xp erie nce— nam ely th e s u p plie r’s a b ility to d eliv er u niq ue i n sig ht to

t h e c usto m er. T hese a re v ery s im ila r re su lts to w hat w e le arn ed m akes re cru ite rs a nd IT b usin ess

l ia is o ns e ffe cti v e in th eir jo bs. W e a ls o fo und th at th e re p s w ho c an d eliv er th e u niq ue in sig hts

c usto m ers a re l o okin g f o r— th e C halle nger r e p s— re p re se nt o nly 2 7 p erc ent o f a ll s a le sp eo ple . A gain ,

t h is i s v ery s im ila r to w hat o ur c o lle agues i n r e cru iti n g a nd I T f o und . BR EA K IN G O UT O F O RDER -T A K ER M ODE

T he c o ro lla ry to b ein g a R ela ti o nsh ip B uild er a s a s a le sp ers o n is to b e s e en a s a n “ o rd er ta ker” in

o th er f u ncti o nal a re as. W e h eard th is ti m e a nd a gain i n o ur d is c ussio ns w ith o ur C EB c o lle agues.

Our co rp ora te co m munic ati o ns pra cti c e, th e C om munic ati o ns E xecuti v e C ouncil, to ld us th at

c o m munic ato rs hav e lo ng b een fig hti n g to m ove up str e am in th e v alu e chain w ith th eir b usin ess

c usto m ers . T hey w ant to m ove f r o m “ m anagin g th e m essa ge” to “ m anagin g th e d eb ate ,” b ut i n o rd er to

d o th is , th ey need to pra cti c e so m eth in g calle d “ta cti c al deafn ess.” In oth er w ord s, head s of

c o m munic ati o ns tr y to g et th eir te am s to p urp ose fu lly

ig nore

th e s p ecific ta cti c a b usin ess c usto m er i s

a sk in g f o r ( e .g ., “ W e n eed a p re ss r e le ase o n X ”) s o th at th ey c an i n ste ad d ig f o r th e s tr a te gic r e aso n

d riv in g

th e r e q uest ( “ W e n eed to m ake s u re o ur c o m peti to rs s e e th at w e’v e m oved in to th is s p ace”).

D oin g th is , a s a v vy c o m munic ato r w ill o fte n i d enti fy o pportu niti e s to d eliv er m uch g re ate r v alu e th an

w hat c o uld h av e b een a cco m plis h ed j u st b y “ ta kin g th e o rd er.”

One o f th e b est p ra cti c es w e te ach m em bers i n o ur c o m munic ati o ns p ro gra m c o m es f r o m th e V P o f

c o m munic ati o ns a t a n a uto m anufa ctu re r. S he ta ught h er te am to p ra cti c e a f iv e-s te p p ro cess d esig ned

t o enfo rc e rig o ro us criti c al th in kin g ab out p artn ers ’ b usin ess p ro ble m s. T he p ro cess ensu re s th at

c o rp ora te c o m munic ati o ns’ s o lu ti o ns ta rg et th e m ost s ig nific ant d riv ers o f p artn ers ’ p erfo rm ance g ap s.

C om munic ati o ns’ u se o f th e p ro ble m -s o lv in g p ro cess h as s tr e ngth ened th e q uality a nd im pact o f its

s o lu ti o ns to p artn ers ’ b usin ess p ro ble m s and has in cre ase d th e tr a nsp are ncy o f co m munic ati o ns’

c o ntr ib uti o n to p erfo rm ance i m pro vem ents . I n th is w ay, th is p ra cti c e h as h elp ed p ositi o n th e f u ncti o n

a s a c o nsu lta ti v e p artn er c ap ab le o f d riv in g b usin ess r e su lts .

Som eti m es th e s ta kes a re e v en h ig her. C om panie s r e ly o n c entr a l f u ncti o ns l ik e s tr a te gy, R & D, a nd

p ro cure m ent n o t ju st to ta ke o rd ers , b ut to m ake s u re th e b usin ess is th in kin g th ro ugh its a ssu m pti o ns

r ig o ro usly — wheth er th o se a ssu m pti o ns p erta in to a n ew m ark et o pportu nity o r th e p ric e to b e p aid

f o r c riti c al i n p uts a nd m ate ria ls .

Our p ro cure m ent p ro gra m , th e P ro cure m ent S tr a te gy C ouncil, re centl y lo oked a t h o w P urc hasin g

l e ad ers c an e q uip th eir m anagers to e ffe cti v ely c halle nge lin e c usto m ers ’ d eep ly h eld b elie fs . “ In

o rd er to g enera te tr u ly in no vati v e id eas,” o ur c o lle agues e xp la in ed to u s, “ p ro cure m ent m ust b e a b le

t o u nd ers ta nd th e s tr a te gy a nd — more im porta nt— und ers ta nd th e a ssu m pti o ns th at u nd erlie it. W ith

t h is k no w le d ge, p ro cure m ent c an g o b eyo nd a naly zin g s p end d ata to f in d o th er a re as th at c o uld b enefit

f r o m p ro cure m ent’ s e xp erti s e . A fte r le arn in g th e a ssu m pti o ns th at u nd erlie th e b usin ess’s str a te gy,

p ro cure m ent

sh ould

p ush b ack o n w eak p oin ts to d ete rm in e w hic h p arts o f th e s tr a te gy a re b ase d o n

f a ls e o r q uesti o nab le p re m is e s.

Challe n gin g

th ese id eas a nd c o m in g b ack to th e b usin ess w ith a

s u p erio r a lte rn ati v e w ill g enera te s ig nific ant i m pro vem ents to th e c o m pany.”

R& D is als o an are a w here q uesti o nin g assu m pti o ns and d eep ly held b elie fs is o f p ara m ount

i m porta nce, le st th e o rg aniz a ti o n e nd u p b lin d sid ed b y u nse en ris k s o r b e h eld c ap ti v e b y its o w n

b ia se s. T o h elp th em e m erg e s u ccessfu lly fr o m th e c urre nt w obbly e co no m y, c o m panie s a re lo okin g

f o r “ tr a nsfo rm ati o nal i n no vati o n” f r o m th eir R & D g ro up s— in o th er w ord s, th ey’re l o okin g to f e ed th e

f r o nt e nd o f th e i n no vati o n p ip elin e. T he p ayo ff f o r g etti n g th is r ig ht i s h uge f o r a c o m pany: O ur R & D

p ra cti c e, th e R ese arc h a nd T echno lo gy E xecuti v e C ouncil ( R TEC ), f o und th at R & D o rg aniz a ti o ns th at

e xcel a t s e ed in g th e g ro w th p ortf o lio w ith tr a nsfo rm ati o nal id eas g enera te

double

th e n ew p ro duct

s a le s re la ti v e to p eers . In ad diti o n, tr a nsfo rm ati o nal id eas hav e d ev elo pm ent cycle s th at are 11

p erc ent f a ste r th an th eir c o m peti to rs ’, s in ce i d eas th at a re w ell s c o ped a nd c o nnecte d to m ark et n eed s

r e q uir e l e ss r e w ork . Our c o lle agues f o und th at o f a ll o f th e c o m pete ncie s f o r a n R & D d ep artm ent to p osse ss, “ str a te gic

in flu ence”— th at i s , th e a b ility o f R & D to i n flu ence c o rp ora te a n d b usin ess s tr a te gie s— deliv ere d th e

gre ate st r e tu rn in te rm s o f e nab lin g th ese tr a nsfo rm ati o nal id eas. A t th e s a m e ti m e, n early 7 0 p erc ent

of R & D h ead s o ur c o m pany s u rv eyed r e p orte d th at th eir te am s l a cked th is i m porta nt c ap ab ility .

The i s su e h ere , f o r m ost o rg aniz a ti o ns, i s th at th e f r o nt e nd o f th e i n no vati o n f u nnel i s w here m any

go od i d eas g o to d ie . C om panie s, i t tu rn s o ut, f r e q uentl y m is s o ut o n tr a nsfo rm ati o nal i n no vati o ns d ue

to R & D’s in ab ility to c o nv in ce b usin ess p artn ers o f a n id ea’s m erit. T he re aso n s o fe w id eas a re

su ccessfu l in th e m ark et is o fte n b ecause R & D s c o pes o ut g o od id eas, fa ils to c o nv in ce th e b usin ess

of th e r e le v ance o f i d eas, o r i s u nab le to c o nnect i d eas to m ark et n eed s.

In r e sp onse , o ur R TEC c o lle agues h av e p ulle d to geth er a s e rie s o f b est p ra cti c es— no t u nlik e w hat

we’v e d eliv ere d i n s u p port o f th e C halle nger S ellin g M odel. T he p ra cti c es th ey’v e b een o ut te achin g

th eir m em bers hav e to d o w ith new w ays o f arm in g th e R & D te am to challe nge th e entr e nched

assu m pti o ns o f th e b usin ess, a v oid k nee-je rk r e je cti o n o f n ew o pportu niti e s, a nd c o m pre ss th e ti m e i t

ta kes to c o lle ct f e ed back o n e arly -s ta ge i d eas. SP EA K IN G T H E L A N G UAG E O F T H E B U SIN ESS

A co m mon, th o ugh v ery ta cti c al, p itf a ll w e se e in te rn al b usin ess fu ncti o ns str u ggle w ith is th eir

i n ab ility to c o m munic ate to b usin ess p artn ers in te rm s th ey u nd ers ta nd . M ore o fte n th an n o t, th is is

b ecause fo lk s at th e co rp ora te cente r are exp erts in th eir sp ecific d om ain are a, and w hile th eir

k no w le d ge o f th eir f u ncti o ns— be i t l e gal, I T , o r H R— in sti lls c o nfid ence i n b usin ess p artn ers , i t d oes

l ittl e to a ssis t th ese f u ncti o nal e xp erts i n c o m munic ati n g c o m pellin g i d eas a nd i n sig hts .

One fin ancia l se rv ic es c o m pany w e w ork w ith in o ur c usto m er se rv ic e p ro gra m , th e C usto m er

C onta ct C ouncil, d esc rib ed fo r u s w hat is a n e v erg re en p ro ble m fo r c usto m er s e rv ic e: g etti n g th e

b usin ess to ta ke a cti o n o n c usto m er c o m pla in ts . H is to ric ally , th ey h ad p re se nte d c o m pla in t d ata in

“ call cente r te rm s,” th at is to sa y, in te rm s of num ber of calls , to ta l ti m e re q uir e d to hand le

c o m pla in ts , e tc . B ut th ey f o und i t d iffic ult to b re ak th ro ugh w ith b usin ess c usto m ers . I n r e sp onse , th ey

d ev elo ped a “co m pla in t- to -m ark et im pact” m odel th at help ed th em calc ula te , fo r any custo m er

c o m pla in t, w hat th e lik ely fin ancia l im pact w ould b e fo r th e c o m pany. S ud denly , b usin ess c usto m ers

w ere a ll e ars . A cco rd in g to th e V P o f c usto m er s e rv ic e, “ T here a re a lw ays c usto m er is su es th at e nd

u p i n gra in ed i n th e o rg aniz a ti o n. T his d ata — because i t’ s i n c le ar te rm s y o u c an’t i g no re — re ally p uts

t h e is su es rig ht in y o ur fa ce. It h elp s u s fin d s y ste m ati c is su es a nd c o nv in ce o th ers th at it’ s w orth

p artn erin g w ith u s to f ix th em .”

One o f th e w ors t o ffe nd ers w hen it c o m es to te chnic al ja rg o n is le gal, a s te chnic al a fu ncti o n a s

e xis ts w ith in th e la rg e c o rp ora te e nte rp ris e . O ne m em ber o f o ur le gal p ro gra m , th e G enera l C ounse l

R ound ta b le , to ld u s th at it’ s a n a re a w here h e s p end s a fa ir b it o f ti m e a nd e nerg y d ev elo pin g h is

t e am : “ S kills a tto rn eys l e arn i n l a w s c ho ol a re n’t th e o nes th at w ill m ake th em e ffe cti v e i n a b usin ess

s e tti n g. A s la w s tu d ents , a tto rn eys le arn to w rite lo ng, te chnic al b rie fs . T hese a re g re at fo r a ju d ge,

b ut th ey’re te rrib le fo r a b usin essp ers o n. W e s p end a lo t o f ti m e o n h o w y o u c o m munic ate to y o ur

b usin ess p artn ers . I ev en b rin g in a co m munic ati o ns co ach to help th em sto p sa yin g th in gs lik e

‘ w here as’ a nd ‘ h ere to fo re ’ i n th eir p re se nta ti o ns. T hey’v e g o t to b e a b le to e ngage w ith th e b usin ess i f

t h ey’re g o in g to b e s u ccessfu l i n a n i n -h o use l e gal s e tti n g.”

This p arti c ula r g enera l c o unse l g o es o n to e xp la in th at it’ s n o t ju st te chnic al ja rg o n th at g ets in th e

w ay of atto rn eys’ bein g effe cti v e in dealin g w ith busin ess custo m ers ; it’ s als o th eir natu ra l

p re d is p ositi o n to w ant to “ call b alls a nd s tr ik es” r a th er th an g iv e th e b usin ess o pti o ns th at w ill h elp

t h em m ake d ecis io ns: “A tto rn eys lik e to giv e gra y answ ers — th is d ecis io n ‘m ig ht go fo r yo u o r

a gain st yo u’— but th at’ s no t help fu l to o ur custo m ers . T hey can’t m ake in fo rm ed d ecis io ns w ith

g uid ance lik e th at.” T o h elp g et h is a tto rn eys o ut o f th is m in d se t, h e a ctu ally e nlis ts th e h elp o f a n

o uts id e e xp ert w ho te aches liti g ati o n ris k p ro je cti o ns. “ W e d on’t h av e a c ry sta l b all,” h e e xp la in s,

“ b ut w e c an g iv e p ro bab iliti e s o n d ecis io ns a nd e sti m ate s fo r p ote nti a l d am ages. T hat’ s a lo t m ore

h elp fu l to o ur b usin ess p artn ers th an s a yin g a j u d gm ent ‘ c o uld g o e ith er w ay.’ ” EA R NIN G A S E AT A T T H E T A BLE

J u st g etti n g r id o f ja rg o n a nd s p eakin g in b usin ess te rm s m ig ht m ake th e b usin ess lis te n to w hat y o u

h av e to s a y, b ut it’ s u nlik ely to e arn y o u a n in v ita ti o n to c riti c al s tr a te gy m eeti n gs o r m ake y o u a

“ m ust- h av e” v oic e a t h ig h-ris k d ecis io n p oin ts . It’ s a w ay to n o t g et ig no re d , b ut p ro bab ly n o t a w ay

t o g et so ught o ut. T o e arn a “ se at a t th e ta b le ,” c o rp ora te c ente r sta ff n eed to d eliv er c o m pellin g

i n sig hts , a nd th ere a re n’t a l o t o f s e co nd a nd th ir d c hances g iv en o ut h ere b y b usy l in e e xecuti v es.

One o f o ur fa v orite ta cti c s fo r p ic kin g th o se o ccasio ns to “ p la nt th e fla g” a nd m ake y o ur te am a n

i n d is p ensa b le b usin ess p artn er is fr o m o ur m ark et r e se arc h p ro gra m , th e M ark et R ese arc h E xecuti v e

B oard . M ark et r e se arc hers s tr u ggle w ith a ll o f th e p ro ble m s w e’v e d is c usse d s o fa r— th ey h av e, in

m ost c o m panie s, p ro pagate d th eir o w n re p uta ti o ns a s n o th in g m ore th an “ o rd er ta kers ,” a nd th ey

s tr u ggle to r e la te to b usin ess p artn ers b ecause o f h o w s te ep ed th ey te nd to b e in th eir o w n te chnic al

d om ain s.

The p ra cti c e in q uesti o n c o m es fr o m a h ig h-te ch c o m pany w ho se r e se arc h le ad er h ad id enti fie d a

n um ber o f o pportu niti e s fo r m ark et r e se arc h to s u b sta nti a lly in fo rm s tr a te gic d eb ate s g o in g o n a t th e

h ig hest le v els of th e co m pany. T he pro ble m w as th at th e m ark et re se arc h fu ncti o n w as new ly

c entr a liz e d i n th e c o m pany a nd h ad n’t y et e arn ed a s e at a t th e ta b le w ith th ese o th er s e nio r l e ad ers . A s

t h e h ead o f r e se arc h a t th e ti m e e xp la in ed , “ W e w ere a b le to i d enti fy a re as w here w e c o uld a d vis e th e

f ir m s tr a te gic ally b ut w ere n o t y et in a p ositi o n to b e h eard b y m anagem ent. T hey fir s t n eed ed to

e xp erie nce e xactl y w hat a str a te gic a d vis e r is c ap ab le o f d oin g, so th e c halle nge w as fin d in g th e

o pportu nity to s h o w m y g ro up ’s a b iliti e s.”

To m ake s u re th at h is g ro up p ut i ts b est f o ot f o rw ard , h e e sta b lis h ed a h and fu l o f c rite ria th at w ould

e nsu re th ey w ould n’t w aste a n o pportu nity to m ake th e r ig ht fir s t im pre ssio n w ith s e nio r le ad ers h ip :

( 1 ) T he p ro je ct h ad to c o rre sp ond to a n is su e o f s ig nific ance o n m anagem ent’ s a gend a; ( 2 ) th ere h ad

t o b e a h ig h l ik elih o od th at th e r e se arc h te am w ould u nco ver s ig nific ant i n sig hts ; ( 3 ) th e p ro je ct h ad to

b e w ith in th e g ro up ’s e xp erti s e ; ( 4 ) th ere h ad to b e a h ig h p ro bab ility o f r e so lu ti o n to th e is su e; a nd

( 5 ) th e p ro je ct h ad to h av e lo w re so urc e re q uir e m ents . S ound fa m ilia r? T he c rite ria o f th e h ead o f

m ark et re se arc h b ear a re al re se m bla nce to w hat m akes fo r a g o od te achin g p itc h. In fa ct, s o m e o f

t h em a re i d enti c al to th e S A FE -B O LD F ra m ew ork w e d is c usse d i n c hap te r 5 .

The c rite ria h elp ed th e r e se arc h d ep artm ent d eliv er c o m pellin g i n sig hts i n th eir f ir s t p re se nta ti o n to

t h e m anagem ent te am , ulti m ate ly doub lin g th e num ber of str a te gic pro je cts th ey w ere ask ed to

c o m ple te a nd in cre asin g th e d ep artm ent’ s b ud get b y 6 5 p erc ent. “ T he tr ic k,” th e d ir e cto r o f th e te am

e xp la in ed , “ is f in d in g th e r ig ht i s su e. O nce y o u a chie v e th o se e arly s u ccesse s, d oors s ta rt o penin g a nd

e xecuti v es m ake ti m e fo r th e g ro up b ecause th ey k no w w e a re g o in g to h av e s o m eth in g im porta nt to

s a y.” A P ER M AN EN T R ESE T?

A t th e C orp ora te E xecuti v e B oard , w e o ffe r a n um ber o f sim ila r tr a in in g p ro gra m s fo r c o rp ora te

c ente r s ta ff a cro ss o ur m em bers h ip s. O ur H R a nd F in ance L ead ers h ip A cad em ie s, fo r in sta nce, a re

h eav ily fo cuse d o n b uild in g c o nsu lta ti v e s k ills fo r h ig h p erfo rm ers w ith in th ese d iffe re nt c o rp ora te

f u ncti o ns a t o ur m em ber c o m panie s. S im ila rly , o ur m ark et r e se arc h p ro gra m o ffe rs c o nsu lta ti v e s k ills

a nd p re se nta ti o n s k ills tr a in in g. A ll o f th ese o ffe rin gs a re c o nsis te ntl y s o ld o ut, s u ggesti n g th at th is i s

— at l e ast f o r n o w — a p re ssin g i s su e f o r f u ncti o nal l e ad ers . B ut w ill d em and f o r th ese k in d s o f s k ills

a nd c ap ab iliti e s f a d e?

It’ s h ard to p re d ic t w hat s k ills w ill b e in v ogue in fiv e o r te n y ears in la rg e c o m panie s, b ut w e

w ould a rg ue th at it’ s u nlik ely th at b usin ess c usto m ers w ill lo w er th e b ar a nyti m e so on fo r th eir

c o rp ora te c ente r c o lle agues. In te rn al c usto m ers , lik e o uts id e o nes, w ill c o nti n ue to b e o pen to n ew

i d eas f o r s a v in g m oney o r m akin g m oney a nd th ey w ill r e w ard s u p plie rs — wheth er e xte rn al s u p plie rs

o r th e c o rp ora te fu ncti o ns th at su p port th em in te rn ally — who b rin g in sig ht to th e ta b le . W hile th e

b usin ess m ay h av e n o o pti o n

but

to w ork w ith a n in te rn al s u p plie r, th ey o fte n h o ld th e p urs e s tr in gs,

a nd th e g ap b etw een fu nd in g to k eep th e lig hts o n a nd fu nd in g fo r la rg e-s c ale p ro je cts a nd s o lu ti o ns

c an b e q uite w id e i n d eed .

We s u sp ect th at th e C halle nger c o ncep t r e so nate s s o w ell w ith o th er f u ncti o nal a re as b eyo nd s a le s

b ecause it s u ggests a p ro m is in g a lte rn ati v e to th e c urre nt s ta te in w hic h m any fu ncti o nal le ad ers fin d

t h em se lv es to day. J u st l ik e th e s u p plie r f ig hti n g f o r a c usto m er’s l o yalty , f u ncti o nal l e ad ers w ant— fo r

t h em se lv es a nd th eir te am s— a s e at a t th e ta b le w here th e b ig gest b usin ess d ecis io ns a re m ad e. T he

C halle nger m odel o ffe rs a t le ast a s ta rti n g p oin t fo r th ese te am s to s ta nd u p a nd b e c o unte d in a w ay

t h at i s f u nd am enta lly d iffe re nt f r o m th e r e acti v e, o rd er-ta kin g w orld . AC K NO W LED G M EN TS

P R IN CIP A L C O NTR IB U TO RS

W hile th is b ook h as tw o a uth o rs o n th e c o ver, it is , lik e a ll C orp ora te E xecuti v e B oard s tu d ie s, th e

p ro duct o f a n e no rm ous te am u nd erta kin g. A t th e to p o f th e lis t o f c o ntr ib uto rs a re th re e in d iv id uals

w ho , a lo ng w ith th e a uth o rs , f o rm ed th e c o re o f th e r e se arc h te am b ehin d th is w ork :

K are n F re em an

K are n s e rv ed a s re se arc h d ir e cto r o f th e S ale s E xecuti v e C ouncil fr o m 2 008 to 2 010 a nd w as th e

d riv in g f o rc e a nd p rin cip al th o ught l e ad er b ehin d th e o rig in al C halle nger s tu d y,

Rep lic a tin g th e N ew

H ig h P erfo rm er,

in 2 009 as w ell as th e fo llo w -o n m anager effe cti v eness stu d y,

Build in g Sale s

M anagers fo r a R etu rn to G ro w th

in 2 010. It w as h er u nfa ilin g c o m mitm ent to d eliv erin g th e m ost

p ow erfu l a nd p ro vocati v e r e se arc h p ossib le — in e ffe ct, h er a m biti o n to p ush th e th in kin g o f e v en o ur

m ost p ro gre ssiv e m em bers — th at ulti m ate ly m ad e th e C halle nger stu d y th e m ost su ccessfu l ev er

d eliv ere d b y th e S ale s E xecuti v e C ouncil. K are n h as a ls o s e rv ed a s r e se arc h d ir e cto r o f S E C ’s s is te r

p ro gra m , th e M ark eti n g L ead ers h ip C ouncil, a nd w as a r e cip ie nt o f th e “ F orc e o f Id eas” a w ard , o ne

o f th e h ig hest h o no rs b esto w ed o n a C orp ora te E xecuti v e B oard e m plo yee, in 2 010. S he is c urre ntl y

m anagin g d ir e cto r o f l e arn in g a nd d ev elo pm ent f o r th e C orp ora te E xecuti v e B oard .

T im ur H ic yilm az

Tim ur h as s e rv ed a s S E C ’s h ead o f q uanti ta ti v e r e se arc h s in ce 2 005. I n th is c ap acity , h e h as b een th e

quant “ v is io nary ,” s u rv ey d esig ner, a nd p rin cip al m odele r a nd d ata a naly st b ehin d a ll o f S E C ’s m ajo r

re se arc h i n iti a ti v es, i n clu d in g a ll o f th e m ajo r q uanti ta ti v e s tu d ie s th at u nd erp in th e f in d in gs d is c usse d

in th is b ook. T im ur’s k een q uanti ta ti v e s k ills a re s e co nd o nly to h is i n cre d ib le c ap acity f o r u sin g d ata

to r e fr a m e th e w ay m anagers th in k a b out th eir o rg aniz a ti o ns a nd h is a m azin g d ep th o f k no w le d ge in

B2B s a le s a nd m ark eti n g. T im ur c urre ntl y s e rv es a s a s e nio r d ir e cto r w ith in th e s a le s a nd m ark eti n g

pra cti c e o f C EB , w here h e c o nti n ues to o vers e e a ll o f th e q uanti ta ti v e r e se arc h fo r S E C , M LC , a nd

th eir sis te r p ro gra m s. T o th is d ay, h e is o ne o f o ur m ost so ught- a fte r re se arc hers fo r e ngagin g in

mem ber c o nv ers a ti o ns, e sp ecia lly a ro und l a rg e-s c ale s tr a te gic i s su es.

To dd B urn er

Todd B urn er s e rv ed a s th e d ay-to -d ay p ro je ct m anager o n b oth th e 2 009

Rep lic a tin g

s tu d y a s w ell a s

th e 2 010

Build in g

stu d y. A s te am le ad er, T odd d ev ote d m ore ti m e to th ese re se arc h stu d ie s—

in clu d in g c o untl e ss e arly m orn in g, la te e v enin g, a nd w eekend h o urs — th an a nyb ody o n th e te am . A

perfe cti o nis t at heart, T odd held his te am to an in cre d ib ly hig h b ar, kno w in g th at o nly th e m ost

in sig htf u l c o nte nt w as w orth y o f o ur m em bers ’ ti m e a nd a tte nti o n. W ith o ut T odd’s in te lle ctu al r ig o r,

co m mitm ent to e xcelle nce, a nd d ed ic ati o n to h is te am , it is d oub tf u l th at th ese s tu d ie s w ould h av e

been d eliv ere d o n ti m e, le t a lo ne a t th e s ta nd ard th ey w ere . A g ifte d b usin ess le ad er, T odd c urre ntl y

se rv es as re se arc h dir e cto r fo r th e IT L ead ers h ip E xchange, th e C orp ora te E xecuti v e B oard ’s

pro gra m f o r m id dle -m ark et C IO s.

WIT H S IN CER E T H ANKS

Beyo nd th e p rin cip al c o ntr ib uto rs to th is r e se arc h, th ere i s a l o ng l is t o f i n d iv id uals a nd o rg aniz a ti o ns

with o ut w ho se c o m mitm ent a nd s u p port th is r e se arc h a nd th is b ook w ould n ev er h av e s e en th e l ig ht o f

day.

Fir s t, w e o w e a tr e m end ous d eb t o f g ra ti tu d e to th e l e ad ers h ip o f o ur f ir m , e sp ecia lly o ur c hair m an

and C EO , T om M onahan, a nd th e g enera l m anager o f th e s a le s a nd m ark eti n g p ra cti c e, H anie l L ynn. I t

was th eir c o m mitm ent to o ur c o m pany’s c o re v alu es, e sp ecia lly w hat w e c all th e “ F orc e o f Id eas,”

th at k ep t th e o rg aniz a ti o n ste ad fa stl y fo cuse d o n d eliv erin g m ajo r, g ro und bre akin g re se arc h to o ur

mem bers , e v en in th e d ep th s o f th e r e cessio n w hen it m ig ht h av e b een e asie r a nd m ore e xp ed ie nt to

fo cus r e so urc es e ls e w here .

With th e su p port of Tom , H anie l, and our co m pany’s se nio r le ad ers h ip , w e w ere ab le to

co ncentr a te th e fir e p ow er of a tr u ly aw eso m e re se arc h te am on dis c o verin g and defin in g th e

Challe nger S ellin g M odel. S pecific ally , w e w is h to th ank curre nt S E C and M LC re se arc h te am

mem bers Ja m ie K le in erm an, V ic to ria K oval, P atr ic k L oftu s, P atr ic k S penner, a nd Jo sh S etz e r; w e

als o w is h to th ank c urre nt S E C re se arc h d ir e cto r N ic k T om an, w ho h as c o nti n ued to le ad th e S E C

te am in exp lo rin g th e C halle nger Sellin g M odel and build in g re so urc es to help our m em bers

im ple m ent i t w ith in th eir o w n o rg aniz a ti o ns.

We a ls o o w e a tr e m end ous a m ount to a n um ber o f f o rm er S E C a nd M LC r e se arc hers w ho e ach h ad

a p ro fo und im pact o n th e re se arc h th at w ent in to th is b ook: M ary D ette ric k, B ria nna G oode, J a so n

Grim m, R ob H am sh ar, H ad le y H effe rn an, A nd re w K ent, A aro n L otto n, A sh o k N achnani, L aure l

Nguyen, W oody P aik , T om S vrc ek, A le x T se re lo v, a nd B arry W in er.

Beyo nd th e r e se arc h te am , w e a re s u p porte d b y a n a ll- s ta r c ast o f e xecuti v e a d vis e rs w ho b rin g th e

co nte nt to l ife f o r o ur m em bers . T he a d vis o ry f u ncti o n, w hic h i s h ead ed b y T om D is a nti s i n S E C a nd

Kath erin e E vans i n M LC , p la ys a c riti c al r o le i n th e r e se arc h p ro cess a t C EB . I n a d diti o n to T om a nd

Kath erin e, a d vis e rs w ho ’v e h eav ily in flu enced th is w ork in clu d e D av e A nd ers o n, A nth o ny A nti c o le ,

Anth o ny B ello ir, J o nath an D ie tr ic h, M ic hael H ub ble , D oug H utto n, M eta K ara gia nni, R ic k K arlto n,

Matt K ie l, T ed M cK enna, P ete r P ic kus, a nd S ta cey S m ith .

Where o ur m em ber a d vis e rs le av e o ff, o ur o w n c o nsu lti n g g ro up , S E C S olu ti o ns, p ic ks u p . A s

we’v e p oin te d o ut in th is b ook, th e S E C S olu ti o ns te am is re sp onsib le fo r p ro vid in g c usto m iz e d

engagem ent- le v el s u p port to m em ber c o m panie s lo okin g to im ple m ent a ny a nd a ll o f th e e le m ents o f

th e C halle nger S ellin g M odel. L ed b y E xecuti v e D ir e cto r N ath an B la in , P ra cti c e L ead er S im on Fre w er, a nd M em ber S erv ic es L ead er S ean C arr, th e S E C S olu ti o ns te am i s a w orld -c la ss o utf it, a nd

th e o ffe rin g th ey h av e c re ate d in th is s p ace, th e C halle nger D ev elo pm ent P ro gra m , is th e e nv y o f th e

in d ustr y .

Beyo nd th ese th re e in d iv id uals , m any S E C S te am m em bers — in clu d in g Jo e B is a gna, C harlie

Dorrie r, a nd J a so n R obin so n— pro vid ed o ngo in g fe ed back o n th is w ork . O n th is p oin t, o ne S E C S

te am m em ber— Je ssic a C ash — dese rv es a s p ecia l th ank-y o u fo r s p end in g c o untl e ss h o urs w ith th is

manusc rip t, h elp in g u s to s ig nific antl y s h arp en th e te achin g a nd in sig hts c o nta in ed h ere in . W e a ls o

ow e a tr e m end ous a m ount to th e S E C S olu ti o ns f a cilita to r te am — fo rm er s a le s a nd m ark eti n g l e ad ers

fr o m o ur m em ber c o m panie s, su ch a s T yro ne E dw ard s, fo rm er h ead o f N orth A meric an sa le s a t

Merc k, a nd D re w P ace, fo rm er h ead o f s a le s a t B ank o f N ew Y ork M ello n— who h av e c o nti n ued to

help u s s p re ad th e w ord a b out th e C halle nger S ellin g M odel a nd r e fin e o ur th in kin g o n w hat i t m eans

to ta ke c o ntr o l o f th e c usto m er c o nv ers a ti o n.

Ours i s a u niq ue c ra ft a nd w e a nd o ur te am s r e ly h eav ily o n th e th o ught l e ad ers h ip a nd m ento rs h ip

of th o se i n o ur c o m pany w ho a re b est a t w hat w e d o. E ric B ra un i s th e s a le s a nd m ark eti n g p ra cti c e’s

head o f r e se arc h a nd h as b een i n ti m ate ly i n v olv ed i n th e C halle nger r e se arc h, a lte rn ate ly s e rv in g n o t

ju st a s c hie f o f r e se arc h q uality c o ntr o l b ut a s in sig ht “ Z en m aste r” to o ur te am . H is fin gerp rin ts a re

all o ver th is r e se arc h, a nd th e e nd r e su lt i s m uch b ette r f o r i t.

Befo re E ric a ssu m ed th is r o le , w e h ad th e p riv ile ge o f s tu d yin g u nd er s e v era l r e se arc h l e gend s a nd

maste rs o f th e “ C EB W ay,” i n clu d in g P ope W ard , T im P olla rd , D ere k v an B ev er, a nd C hris M ille r. A t

diffe re nt p oin ts in ti m e o ver th e p ast d ecad e, th ese in d iv id uals ta ught u s w hat it m eans to d eliv er

re se arc h a nd i n sig ht w orth y o f o ur m em bers ’ ti m e a nd a tte nti o n.

Last b ut n o t le ast, w e a re in d eb te d to o ur o w n c o m merc ia l te am a t C EB . V ery e arly o n, w e w ere

fo rtu nate to b e a b le to ta p in to th e e xp erie nces a nd in sig hts o f o ur o w n “ ho m egro w n” C halle ngers

su ch a s K ev in H art a nd K ris te n R achin sk y. T hese in d iv id uals le t u s s it in o n th eir s a le s c alls a nd

end ure d o ur m any q uesti o ns a b out w hy th ey s e ll th e w ay th ey d o.

Outs id e o f C EB , w e o f c o urs e o w e th anks to N eil R ackham , a uth o r o f

SP IN S ellin g

a nd n um ero us

oth er r e no w ned w ork s in th e fie ld , fo r h is ti m e a nd th o ughtf u l c o nsid era ti o n th ro ugho ut th is p ro je ct.

We a re h o no re d to b e a sso cia te d w ith N eil, th e “ p ro fe sso r e m eritu s” o f th e s a le s w orld .

All o f o ur w ork a t th e C orp ora te E xecuti v e B oard is in sp ir e d b y o ur m em bers . T hey d ir e ct u s to

th eir m ost p re ssin g is su es, giv e genero usly o f th eir ti m e so th at w e can le arn ho w th ese is su es

manife st fo r th em a nd th eir c o m merc ia l o rg aniz a ti o ns, a llo w u s to s u rv ey th eir re p s, m anagers , a nd

ev en custo m ers , and , w hen calle d up on, to p ro file th eir b est p ra cti c es and ta cti c s so th at o th er

mem bers m ig ht a v oid r e in v enti n g th e w heel.

With in a m em bers h ip th at n o w s p ans h und re d s o f c o m panie s a nd th o usa nd s o f i n d iv id ual s a le s a nd

mark eti n g le ad ers , w e w ould lik e to s p ecific ally th ank a fe w o f o ur c urre nt a nd fo rm er m em bers fo r

th eir a b ove-a nd -b eyo nd c o ntr ib uti o ns to th is r e se arc h:

Deb O le r, v ic e p re sid ent a nd g enera l m anager o f G ra in ger B ra nd , h as b een o n th e C halle nger

jo urn ey s in ce l o ng b efo re i t h ad a n am e. H er o rg aniz a ti o n’s m any a cco m plis h m ents a nd c o ntr ib uti o ns

to th e C halle nger S ellin g M odel h av e b een d is c usse d i n d eta il i n th is b ook, a nd D eb h ers e lf h as b een

unfa ilin gly g enero us w ith h er ti m e s in ce w e f ir s t s tu m ble d u p on h er g ro und bre akin g s a le s a p pro ach i n

la te 2 007. A tr u e “ guru ” in h er p ro fe ssio n, s h e h as c o nti n ued to c halle nge u s to fu rth er d efin e th e

Challe nger m odel a nd a sk w hat’ s n ext f o r B 2B s a le s a nd m ark eti n g.

Kev in H end ric k is s e nio r v ic e p re sid ent o f s a le s fo r A DP’s N orth A meric an E m plo yer S erv ic e

busin ess. A tr u e fir s t m over, K ev in h as ta ken th e C halle nger S ellin g M odel a nd a p plie d it to h is

org aniz a ti o n a s q uic kly a s w e’v e b een a b le to tu rn o ut th e r e se arc h. T he tr e m end ous s u ccess h e’s s e en with th e m odel a sid e, K ev in h as b een a n i n v alu ab le r e so urc e to o ur te am . H av in g a m em ber w ho i s s o

eager to a p ply th e i n sig hts f r o m o ur w ork a nd r e p ort b ack w hat h e’s l e arn ed h as h elp ed to e nsu re th at

th is w ork sta ys gro und ed in th e re aliti e s o f B 2B sa le s and m ark eti n g and th at its le sso ns sta y

pra cti c al, a s o ppose d to s im ply th eo re ti c al.

Fin ally , w e w is h to th ank D an J a m es, fo rm er C SO o f D uP ont, w ho h as b een a g uid in g lig ht fo r u s

fr o m d ay o ne o f th is jo urn ey. A s o ne o f o ur le ad in g m em bers , D an h as g iv en c o untl e ss h o urs o f h is

ow n ti m e to h elp g uid e th is r e se arc h a nd p ro vid e fe ed back o n it. W hile C SO , D an g av e u s a ccess to

his r e p s, m anagers , a nd c usto m ers . H e a ls o a gre ed to b e p ro file d f o r s e v era l b est p ra cti c es h e a nd th e

DuP ont te am had ar-c hite cte d . S in ce his re ti r e m ent fr o m D uP ont, D an has se rv ed as o ne o f th e

prin cip al fa cilita to rs o f th e C halle nger a nd M anager D ev elo pm ent p ro gra m s o ffe re d b y o ur S E C

Solu ti o ns g ro up a nd h as b een a n o ngo in g a d vis e r o n th is b ook, c o nd ucti n g n um ero us in te rv ie w s,

help in g u s th in k th ro ugh s o m e o f th e tr ic kie r i m ple m enta ti o n i s su es i n th e C halle nger m odel, a nd e v en

ed iti n g th e e arly m anusc rip t o f th e b ook i ts e lf.

Speakin g o f e d iti n g, w e w ould b e r e m is s fo r n o t a ckno w le d gin g th e fa nta sti c s u p port o f th e m any

ta le nte d and d ed ic ate d p ro fe ssio nals w ho help ed sh ep herd th is b ook th ro ugh each p hase o f th e

jo urn ey: o ur a gent, Jill M ars a l o f M ars a l- L yo n; th e te rrific te am a t P ortf o lio , in clu d in g o ur v ery

ta le nte d e d ito r, C ourtn ey Y oung, a nd h er e d ito ria l a ssis ta nt, E ric M eyers ; o ur v ery p ati e nt g ra p hic

desig ner, T im B ro w n; o ur o w n e xcelle nt m ark eti n g a nd P R te am a t C EB , in clu d in g R ory C hanner,

Ayesh a K um ar-F la herty , a nd L eslie T ullio ; a nd la st b ut n o t le ast, G ard in er M ors e , s e nio r e d ito r a t

Harv a rd B usin ess R evie w

, f o r h is s u p port i n h elp in g u s to u nv eil th e C halle nger S ellin g M odel to th e

bro ad er b usin ess c o m munity .

The f in al th ank-y o u i s th e m ost i m porta nt o ne. T his r e se arc h a nd th is b ook w ould n ev er h av e b een

possib le w ere it n o t fo r th e s u p port a nd e nco ura gem ent o f o ur fa m ilie s. A nyb ody w ho h as w ritte n a

book k no w s th at it’ s a b ig u nd erta kin g a nd th at th e p ric e fo r th e ti m e it ta kes to g et it d one is o fte n

paid b y th o se c lo se st to th e a uth o r.

Matt’ s b eauti fu l a nd ta le nte d w ife , A my, a nd th eir fo ur w ond erfu l c hild re n, A id an, E th an, N ora h,

and C la ra , sh o w ed n o th in g b ut p ati e nce a nd lo ve fo r th eir fa th er a nd h elp ed k eep h im sa ne a nd

gro und ed th ro ugho ut th is p ro je ct. H is o nly re gre t is th at

The C halle n ger S ale

is unlik ely to b e

in clu d ed i n th e

Magic T re e H ouse

s e rie s, a nd th us i s l ik ely to g o u nre ad b y th e D ix o n c hild re n f o r th e

fo re se eab le f u tu re .

Bre nt c an o nly w ond er a t h is a m azin g w ife , U te , w ho se p ati e nc e k no w s n o b ound s d esp ite b ein g

so re ly te ste d a t ti m es, a nd h is tw o b eauti fu l d aughte rs , A llie a nd K ie ra , w ho c halle nge h im to s e e th e

world a new e v ery s in gle d ay. M ay y o u g ro w u p to b e C halle ngers i n w hate v er y o u c ho ose to d o. B ut

fir s t . . . w e’re g o in g to D is n ey W orld . APPE N DIX A

Excerp t f ro m th e C halle n ger C oach in g G uid e

T EA CH

P re -c a ll P la nnin g Q uestio ns

• W hat b usin ess p ro ble m w ill y o u b e f o cusin g o n w ith th is c usto m er? H ow d o y o u k no w th at th is

is o f criti c al im porta nce to th em ? H ow hav e yo u se en sim ila r co m panie s ap pro ach th is

pro ble m ?

• H ow n ew /in tr ig uin g w ill th is i n sig ht b e to th e c usto m er? W hy h asn ’t th e c usto m er f ig ure d i t o ut

alr e ad y?

P ost-c a ll D ebrie fin g Q uestio ns

• H ow i n tr ig ued o r p ro voked w as y o ur c usto m er w ith th e i n sig ht( s ) y o u s h are d ? H ow c o uld y o u

te ll?

C halle nger C oach in g E xerc is e

U ndersta nd th e co nte xt:

Sele ct one custo m er/p ro sp ecti v e acco unt and answ er th e fo llo w in g

q uesti o ns:

• W hat a re th e c o m pany’s s tr a te gic o bje cti v es f o r th e n ext o ne to th re e y ears ?

• W here a re th ey s tr o ngest a gain st th eir c o m peti ti o n? W here a re th ey l a ggin g?

• H ow does th e ro le of yo ur co nta ct/ ta rg et im pact th e co m pany’s str a te gic obje cti v es and

str e ngth s/w eaknesse s?

As th e c o ach, p artn er w ith th e s a le s p ro fe ssio nal to i d enti fy o pportu niti e s to c o nnect th e c usto m er’s

b usin ess opportu niti e s w ith yo ur co m pany’s str e ngth s to cra ft a more co m pellin g te achin g

c o nv ers a ti o n.

T A IL O R

P re -c a ll P la nnin g Q uestio ns

• W hat a re s o m e o f th e la te st tr e nd s in th is c usto m er’s in d ustr y ? H ow w ould th o se tr e nd s a ffe ct

th e c usto m er’s c o m pany?

• W hat is uniq ue ab out th is co m pany’s positi o n in th e m ark etp la ce? W here are th ey m ost

vuln era b le ?

P ost-c a ll D ebrie fin g Q uestio ns • W hat d id y o u l e arn a b out th e c usto m er’s e co no m ic d riv ers ?

• W hat g o als , m oti v ati o ns, o r in fo rm ati o n d id y o u e nco unte r th at y o u h ad n’t e xp ecte d ? H ow d id

yo u r e sp ond ?

TA KE C O NTR O L

Pre -c a ll P la nnin g Q uestio ns

• W hat a re y o ur n ext s te p s to e nsu re th at th e p urc hase p ro cess m oves f o rw ard ?

• W hat i s y o ur u nd ers ta nd in g o f th e c usto m er’s b uyin g p ro cess?

Post-c a ll D ebrie fin g Q uestio ns

• W hat d id th is c o nv ers a ti o n d o to m ove th e s a le f o rw ard ?

• D urin g m om ents o f te nsio n, w as y o ur g ut fe elin g to d efu se th e te nsio n o r p re ss o n? W hat d id

yo u d o?

• W hat a re y o ur n ext s te p s?

Dow nlo ad a m ore c o m pre hensiv e g uid e a t

www.t h ech alle ngersa le .c o m

In clu d in g:

• C oachin g a nd d ev elo pm ent e xerc is e s

• D eta ile d C halle nger b ehav io r g uid es

• M ore p re - a nd p ost- c all q uesti o ns

• T ip s to b uild a C halle nger te am

• T eam m eeti n g e xerc is e s

• Y our r o le a s a C halle nger l e ad er

Onlin e m ate ria ls g uara nte ed a v aila b le u nti l N ovem ber 1 0, 2 016. APPE N DIX B

Sellin g S ty le S elf -D ia g n ostic

I N ST R UCTIO NS

C onsid erin g e ach o f th e s ta te m ents b elo w , s c o re e ach o ne a cco rd in g to y o ur a gre em ent w ith h o w w ell

i t d esc rib es h o w y o u s e ll to y o ur c usto m ers .

1 = S tr o ngly d is a gre e

2 = D is a gre e

3 = N eutr a l

4 = A gre e

5 = S tr o ngly a gre e

S C O RIN G G UID E

• A dd u p y o ur s c o re f o r q uesti o ns 2 a nd 3 . W rite th at n um ber i n th e “ T eaches f o r D iffe re nti a ti o n” box b elo w .

• A dd u p y o ur s c o re f o r q uesti o ns 5 a nd 6 . W rite th at n um ber i n th e “ T ailo rs f o r R eso nance” b ox

belo w .

• A dd u p y o ur s c o re f o r q uesti o ns 8 a nd 9 . W rite th at n um ber i n th e “ T akes C ontr o l” b ox b elo w .

If yo u ra te d yo urs e lf hig hly o n q uesti o ns 1 , 4 , 7 , o r 1 0, th is m eans th at yo u hav e natu ra l sa le s

te nd encie s i n o th er s a le s p ro file s. ( 1 i s R ela ti o nsh ip B uild er, 4 i s L one W olf, 7 i s P ro ble m S olv er, 1 0

is H ard W ork er)

In e ach b ox:

• 8 o r A bove: S ound s lik e y o u’re o ff to a g re at s ta rt; k eep lo okin g fo r w ays to c halle nge y o ur

custo m ers ’ th in kin g.

• 5 to 7 : Y ou h av e a g o od fo und ati o n to b uild o n; ta rg et a n a re a fo r d ev elo pm ent a nd sta rt

push in g y o urs e lf to c halle nge m ore .

• 4 o r B elo w : T his m ay b e a s lig htl y n ew a p pro ach f o r y o u; th in k a b out th e a re a w here y o u f e el

most c o m fo rta b le a nd s ta rt y o ur p ers o nal d ev elo pm ent th ere .

APPE N DIX C

Challe n ger H ir in g G uid e: K ey Q uestio ns to A sk in th e I n te rv ie w

IN DEX

A dam so n, B re nt

A DP D eale r S erv ic es

challe nges f a cin g

C om merc ia l T eachin g p itc h

co m pany i n fo rm ati o n

P ro fit C lin ic s

su ccess o f

A ggre ssio n

vers u s a sse rti o n.

se e

A sse rti v eness

ele m ents o f

A lte rn ati v es, q uesti o ns to e nco ura ge

A sse rti v eness

of C halle ngers

and c o ntr o llin g s a le

ele m ents o f

fo rm s o f

A ssu m pti o ns o f c usto m er, c halle ngin g

B ayG ro up I n te rn ati o nal, S itu ati o nal S ale s N ego ti a ti o n m eth o d

B ia se s

as o bsta cle s to i n no vati o n

overc o m in g

B ra in sto rm in g, S C A M MPE R R f r a m ew ork

B und le d g o ods/s e rv ic es, a nd s o lu ti o n s e llin g

B urn er, T od

B uyin g b ehav io r, tr e nd s r e la te d to

C halle nger D ev elo pm ent P ro gra m

co achin g g uid e

id enti fy in g C halle ngers , H ir in g G uid e

ta kin g c o ntr o l to olk it

tr a in in g

C halle ngers

am big uity , a ccep ta nce o f

asse rti v eness o f

chara cte ris ti c s o f

co ntr o llin g s a le s k ill o f

eco no m ic c lim ate a nd p erfo rm ance

vers u s h ig h p erfo rm ers

id enti fy in g f o r h ir in g

positi v e p erfo rm ance o f

pric e d is c ussio ns b y

re fr a m in g s k ill o f

R FP, a p pro ach to

se llin g m odel b ase d o n.

se e

C halle nger S ellin g M odel

su ccess, b asis o f

tr a in in g f o r

uniq ue s k ills o f

C halle nger S ellin g M odel

co achin g i n

co ntr o llin g s a le i n

im ple m enti n g.

se e

C halle nger S ellin g M odel a d opti o n

in no vati o n i n

in te rn al b usin ess f u ncti o n a p plic ati o ns

org aniz a ti o nal c ap ab ility , b uild in g i n

pilla rs o f

ta ilo rin g f o r r e so nance i n

te achin g f o r d iffe re nti a ti o n i n

ti m e f a cto rs i n

See a ls o

C ontr o llin g s a le ; T ailo rin g f o r r e so nance; T eachin g f o r d iffe re nti a ti o n

C halle nger S ellin g M odel a d opti o n

C halle nger te rm in o lo gy, u sin g

custo m er-c entr ic ity , d ro ppin g

D eb O le r q uesti o n, a sk in g

fu ll a d opti o n, d iffic ulty o f

and g lo bal o pera ti o ns

fo r h ig h p erfo rm ers a s i s su e

id enti fy in g/h ir in g C halle ngers

org aniz a ti o nal c ap ab ility b uild in g i n

pilo t p ro gra m f ir s t

pitc h, w ord s to a v oid

re aso ns f o r

and s a le s m anager e ffe cti v eness

tr a in in g, a p pro ach to

Chin a, C halle nger S ellin g M odel i n

CIO E xecuti v e B oard

CLC R ecru iti n g

Coachin g

basic e le m ents o f

busin ess i m pact o f

Challe nger C oachin g G uid e

defin ed

dem ocra ti c a p pro ach to

and d is c re ti o nary e ffo rts , i n cre ase i n

Hyp oth esis -B ase d C oachin g

vers u s m anagin g

PA USE f r a m ew ork

by s a le s m anagers

Colle cto rs , r o le o f

Com mand er’s I n te nt

Com merc ia l T eachin g

cata ly zin g a cti o n

co ntr o l o f i d eas a s e sse nce o f

custo m er r e acti o ns to e xp ect

custo m er’s a ssu m pti o ns, c halle ngin g

Deb O le r q uesti o n, u sin g

defin ed

effe cti v eness, r e aso ns f o r

Hyp oth esis -B ase d S ellin g i n

in sig ht- c usto m er c o nnecti o n, m akin g

in sig ht- s u p plie r c o nnecti o n, m akin g

re fr a m in g i n

RO I c alc ula ti o ns, f o cus o f

ab out s e gm enta ti o n

ab out u niq ue c usto m er s tr e ngth s

Com merc ia l T eachin g p itc h

by A DP D eale r S erv ic es ( c ase s tu d y)

build in g p itc h, o rd er o f

co nstr u cti n g, te am a p pro ach

co m pare d to c o nsu lta ti v e s e llin g

cre d ib ility , b uild in g i n

custo m er c ap ab iliti e s, e num era ti n g

custo m er c halle nges, a sse ssin g

Em oti o nal I m pact i n

as “ le ad in g to ” v ers u s “ le ad in g w ith ,” 7 7, 9 6

New W ay i n

org aniz a ti o nal c ap ab ility b uild in g i n

Rati o nal D ro w nin g i n

Refr a m e i n

re sis ta nce to u se

and S A FE -B O LD f r a m ew ork

sim plic ity o f

Solu ti o n i n

ste p s i n ( d ia gra m )

su p plie r, f ir s t r e fe re nce to

su p porti n g d ata , p re se nti n g

Warm er i n

“w e’re d iffe re nt” o bje cti o n, c o unte rin g

word s to a v oid

by W . W . G ra in ger ( c ase s tu d y)

Com munic ati o ns E xecuti v e C ouncil

Com munic ati o ns p ro gra m s, i n sig ht, n eed f o r

Com peti ti o n, b eati n g, w ith u niq ue c usto m er s tr e ngth s

Com pla in t- to -m ark et i m pact m odel

Concessio ns

hand lin g, D uP ont m eth o d

patte rn s to a v oid

Confid ence, o f C halle ngers

Confir m ati o n b ia s

Conse nsu s-b ase d s a le , r is e o f

Consu lta nts

Challe ngers a s.

se e

T eachin g f o r d iffe re nti a ti o n

to c usto m ers , i n p urc hase d ecis io ns

Consu lta ti v e s e llin g, c o m pare d to C halle nger m eth o d

Contr o llin g s a le

asse rti o n v ers u s a ggre ssio n

as C halle nger s k ill

co ncessio ns, h and lin g

diffic ulty o f

DuP ont, c ase s tu d y

exam ple s o f

mis c o ncep ti o ns a b out

pre p arin g r e p s f o r

re fr a m in g i n

and R ela ti o nsh ip B uild ers

and s a le s p ro cess

Corp ora te E xecuti v e B oard

su rv ey o f.

se e

S ale s E xecuti v e C ouncil ( S E C ) s u rv ey

tr a in in g o ffe rin gs o f

Cre d ib ility , b uild in g i n p itc h

Custo m er-c entr ic ity

defin ed

negati v e i m pact o f

Custo m er C onta ct C ouncil

Custo m er n eed s

analy sis , i n l o yalty s u rv ey

Challe nger’s a p pro ach to

custo m iz a ti o n n eed s

and H yp oth esis -B ase d S ellin g

outc o m e-o rie nte d a p pro ach

se gm enta ti o n b ase d o n

so lu ti o n s e llin g a p pro ach

Custo m er o bje cti o ns

co ncessio ns, h and lin g

“w e’re d iffe re nt” o bje cti o n, c o unte rin g

Custo m ers

Challe nger s k ills r e la te d to

and c o nse nsu s-b ase d s a le

FU D f a cto r

key c halle nges, a sse ssin g

lo yalty s u rv ey

need s.

se e

C usto m er n eed s

obje cti o ns o f.

se e

C usto m er o bje cti o ns

re sp ond in g v ers u s d efe nd in g o f

ris k a v ers io n o f

se gm enta ti o n

and s o lu ti o n s e llin g

Custo m er s e rv ic e

co m pla in t- to -m ark et i m pact m odel

in sig ht, n eed f o r

Custo m iz a ti o n, c usto m er d em and f o r

D ata , p re se nti n g, i n C om merc ia l T eachin g p itc h

D ecis io n m akers

ite m s o f i m porta nce to

in l o yalty s u rv ey

new p hysic s o f s a le s f o r

ro le o f

D iffe re nti a ti o n

te achin g b y C halle ngers .

se e

T eachin g f o r d iffe re nti a ti o n

w ord s to a v oid

D is c o unts .

See

C oncessio ns

D is c re ti o nary e ffo rts , c o achin g a nd i n cre ase i n

D ix o n, M att

D uP ont

co m pany i n fo rm ati o n

co ncessio ns, h and lin g

co ntr o llin g s a le b y

nego ti a ti o n w ork sh o p

S itu ati o nal S ale s N ego ti a ti o n ( S SN ) m eth o d

E co no m ic d eclin e

and C halle ngers p erfo rm ance

and p erfo rm ance g ap

and s o lu ti o n s e llin g

E m oti o nal I m pact

in C om merc ia l T eachin g p itc h

em oti o nal c o nnecti o n, m akin g

obje cti o ns, c o unte rin g

in W . W . G ra in ger te achin g p itc h

E nd u se rs , i n l o yalty s u rv ey

E xp orta b ility b ia s

F acto r a naly sis

F in ance L ead ers h ip A cad em y

F ir s t c o nclu sio n b ia s

F re em an, K are n

F U D f a cto r

F uncti o nal b ia s c ard

G enera l C ounse l R ound ta b le

G lo bal o pera ti o ns, C halle nger S ellin g M odel i n

H ard W ork ers

chara cte ris ti c s o f

positi v e a sp ects o f

in S E C s u rv ey

H end ric k, K ev in

See a ls o

A DP D eale r S erv ic es

H ic yilm az, T im ur

H ir in g

C halle nger H ir in g G uid e

S ellin g S ty le S elf- D ia gno sti c

H um an r e so urc es ( H R), i n sig ht, n eed f o r

H yp oth esis -B ase d C oachin g

H yp oth esis -B ase d S ellin g

I n flu encers , i n l o yalty s u rv ey

I n no vati o n

bia se s a s o bsta cle s to

co m ponents o f

im porta nce o f

narro w in g v ers u s o penin g th in kin g

questi o ns to e nco ura ge

in s a le s c o nte xt

by s a le s m anagers

S C A M MPE R R f r a m ew ork

and th e u nkno w n

I n sig hts

in C om merc ia l T eachin g

im porta nce to c usto m ers

in sig ht- c usto m er c o nnecti o n

in sig ht- s u p plie r c o nnecti o n, m akin g

in te rn al b usin ess f u ncti o ns, n eed s o f

m ark eti n g p arti c ip ati o n

pre se nti n g.

se e

R efr a m in g

in W . W . G ra in ger te achin g p itc h

I T c ap ab iliti e s, i n sig ht, n eed f o r

J a rg o n, te chnic al, a v oid in g

K PM G, a nd S A FE -B O LD f r a m ew ork

“ L ead in g to ,” v ers u s “ le ad in g w ith ” m eth o d

L egacy b ia s

L egal p ro fe ssio n, i n sig ht, n eed f o r

L one W olf

chara cte ris ti c s o f

negati v e a sp ects o f

positi v e p erfo rm ance o f

in S E C s u rv ey

L oyalty s u rv ey

decis io n m aker b ehav io r i n

end u se r b ehav io r i n

in flu encer b ehav io r i n

lo yalty , d riv ers o f

sa le s e xp erie nce, i m porta nce o f

se nio r e xecuti v e b ehav io r i n

sta keho ld er l o yalty , a naly sis o f

to p a ttr ib ute s i n

to pic s c o vere d

M anagers .

See

S ale s m anagers

M ark eti n g

C om merc ia l T eachin g p itc h, c o nstr u cti n g

as i n sig ht g enera ti o n m achin e

-s a le s c o lla b ora ti o n

M ark eti n g L ead ers h ip C ouncil r e se arc h, p re fe rre d c o m panie s, c usto m er v ie w o f

M ark et r e se arc h, i n sig ht, n eed f o r

M ark et R ese arc h E xecuti v e B oard

M om entu m , c re ate d b y C halle ngers

N arro w in g th in kin g

defin ed

vers u s o penin g th in kin g

N eed s, c usto m er.

See

C usto m er n eed s

N ego ti a ti o n

vers u s c o ntr o llin g s a le

S itu ati o nal S ale s N ego ti a ti o n m eth o d

N ew p ers p ecti v e, p re se nti n g.

se e

R efr a m in g

N ew p hysic s o f s a le s

N ew W ay

in C om merc ia l T eachin g p itc h

in W . W . G ra in ger te achin g p itc h

O bje cti o ns.

See

C usto m er o bje cti o ns

O le r, D eb ra

D eb O le r q uesti o n

positi o n o f

See a ls o

W . W . G ra in ger

O penin g th in kin g

bia se s a s o bsta cle s

defin ed

and i n no vati o n

questi o ns to e nco ura ge

O rd er-ta kers

O rg aniz a ti o ns

cap ab ility b uild in g, a nd C halle nger s e llin g

in te rn al f u ncti o ns, n eed f o r i n sig ht

te chnic al j a rg o n, u se o f

O utc o m es

to c usto m er n eed s, m ap pin g

fu ncti o nal b ia s c ard

ta ilo rin g f o r r e so nance

P assiv e b ehav io r

vers u s a sse rti o n.

se e

C ontr o llin g s a le

ele m ents o f

re aso ns f o r

R ela ti o nsh ip B uild ers

P A USE , c o achin g f r a m ew ork

P ers o nal b ia s

P itc h, te achin g.

se e

T eachin g p itc h

“ P ow er o f P la nnin g th e U np la nned , T he,”

P ra cti c ality b ia s

P ric e

C halle nger’s a p pro ach to

co ncessio ns, h and lin g

P ric e-to -v alu e r a ti o

and c usto m er l o yalty

and p ric e i n cre ase

P ro cure m ent.

See

P urc hasin g

P ro cure m ent S tr a te gy C ouncil

P ro ducers , r o le o f

P ro fit C lin ic s, A DP D eale r S erv ic es

P ro je ct p ro posa l te m pla te , ta ilo re d to c lie nt

P ro m pti n g q uesti o ns, to e nco ura ge i n no vati o n

P sy ch olo gy o f S ellin g, T he

( S tr o ng)

P urc hasin g

ease , i m porta nce to c usto m ers

in sig ht, n eed f o r

re se arc h, h is to ry o f

th ir d -p arty c o nsu lta nts f o r

tr e nd s r e la te d to

R ackham , N eil

R ati o nal D ro w nin g

in C om merc ia l T eachin g p itc h

in W . W . G ra in ger te achin g p itc h

R eacti v e P ro ble m S olv er

chara cte ris ti c s o f

in S E C s u rv ey

R efr a m in g

as C halle nger s k ill

in C om merc ia l T eachin g p itc h

custo m er r e acti o ns to e xp ect

fa cts to s u p port, p re se nti n g

im porta nce o f

R FP, r e sh ap in g f o r s u p plie rs

and R O I d is c ussio n

su ccess, b asis o f

as ta kin g c o ntr o l o f s a le

in W . W . G ra in ger te achin g p itc h

R ela ti o nsh ip B uild ers

chara cte ris ti c s o f

co nnecti o n, o ver-e m phasis o n

lo w p erfo rm ance o f

passiv e b ehav io r o f

ta kin g c o ntr o l, l im ita ti o ns o f

te achin g p itc h, s a fe

R ela ti o nsh ip s e llin g, d eclin e o f

R eq uests f o r p ro posa ls ( R FP)

best d eal, c usto m er b ehav io r

C halle nger’s a p pro ach to

as f r e e a d vic e to c usto m er

re sh ap in g f o r s u p plie r

R ese arc h a nd d ev elo pm ent ( R & D)

in sig ht, n eed f o r

str a te gic i n flu ence c o m pete ncy

R ese arc h a nd T echno lo gy E xecuti v e C ouncil ( R TEC ), b est p ra cti c es

R eso urc e a llo cati o n, b y s a le s m anagers

R is k , a nd te achin g p itc h

R is k a v ers io n, c usto m ers

R O I c alc ula ti o ns

C halle nger’s a p pro ach to

fa cts to s u p port, p re se nti n g

ty p ic al a p pro ach to

S A FE -B O LD F ra m ew ork

S afe p ra cti c e, a nd tr a in in g

S ale s

-m ark eti n g c o lla b ora ti o n

new p hysic s o f

S ale s E xecuti v e C ouncil ( S E C ) s u rv ey

are as n o t s tu d ie d

fa cto r a naly sis i n

in sig hts o f

lo yalty s u rv ey

sa le s f o rc e p erfo rm ance g ap

sa le s f o rc e p ro file s i n

sa m ple s iz e

so lu ti o n s e llin g, f in d in gs o n

varia b le s te ste d

S ale s e xp erie nce, i m porta nce to c usto m ers

S ale s L ead ers h ip D ia gno sti c

fin d in gs, a p ply in g

varia b le s te ste d

S ale s m anagers

co achin g b y

effe cti v eness, l a ck o f

excelle nce, e le m ents o f

hir in g, b asis o f

in no vati o n b y

re so urc e a llo cati o n b y

S ale s L ead ers h ip D ia gno sti c

se llin g s k ills o f

S ale s p erfo rm ance

re se arc h, h is to ry o f

S E C s u rv ey.

se e

S ale s E xecuti v e C ouncil ( S E C ) s u rv ey

S C A M MPE R R f r a m ew ork

S egm enta ti o n

C om merc ia l T eachin g o n

need s-b ase d

tr a d iti o nal

S ellin g S ty le S elf- D ia gno sti c

S enio r e xecuti v es, i n l o yalty s u rv ey

S herk , A dam

S itu atio nal S ale s N eg otia tio n

( S SN ) m eth o d

pro cess o f

work sh o p o n

Sola e

challe nges f a cin g

co m pany i n fo rm ati o n

fu ncti o nal b ia s c ard

sc rip ti n g, u se o f

sta keho ld er i n fo rm ati o n, u se o f

ta ilo rin g f o r r e so nance b y

ta ilo rin g to ol

Solu ti o ns

in C om merc ia l T eachin g p itc h

and i n no vati o n

in W . W . G ra in ger te achin g p itc h

Solu ti o n s e llin g

bund le d o ffe rin gs i n

custo m er b urd en i n

custo m er n eed s i n

in d ow n m ark et

fo cus o f

gro w th o f

perfo rm ance g ap

sa le s r e p b urd en i n

so lu ti o ns f a ti g ue

Sta keho ld ers

in l o yalty s u rv ey

and n ew p hysic s o f s a le s

ta ilo rin g m essa ge f o r

Str o ng, E . K .

Sup plie rs

Challe nger a p pro ach.

se e

C halle nger S ellin g M odel

custo m er b usin esse s, k no w le d ge o f

Deb O le r q uesti o n

in sig ht- s u p plie r c o nnecti o n, m akin g

pre fe rre d c o m panie s, c usto m er v ie w o f

pric e v ers u s u niq ueness a p pro ach

und iffe re nti a te d , c ho osin g

T ailo rin g f o r r e so nance

basis o f

as C halle nger s k ill

co ncre te a p pro ach to

exam ple s o f

la yers o f ta ilo rin g

obsta cle s to

outc o m e, f o cus o n

pro je ct p ro posa l te m pla te

sc rip ti n g, u se o f

by S ola e, c ase s tu d y

varia b ility , r e d ucin g

T eachin g f o r d iffe re nti a ti o n

basis o f

as C halle nger s k ill

exam ple s o f

im porta nce to c usto m ers

in sig hts , s h arin g

org aniz a ti o nal c ap ab ility , b uild in g i n

R FP, r e sh ap in g f o r s u p plie rs

sa le s c o nv ers a ti o n to a v oid

sa le s e xp erie nce, i m porta nce o f

te achin g m eth o d.

se e

C om merc ia l T eachin g

te achin g p itc h.

se e

C om merc ia l T eachin g p itc h

T eachin g p itc h

of C halle ngers .

se e

C om merc ia l T eachin g p itc h

of R ela ti o nsh ip B uild ers

S A FE -B O LD F ra m ew ork

sim plifie d a p pro ach

su ccessfu l, e le m ents o f

w ord s to a v oid

T eam s, C om merc ia l T eachin g p itc h, c o nstr u cti n g

T ra in in g

C halle nger D ev elo pm ent P ro gra m

of C halle ngers

vers u s c o achin g

C orp ora te E xecuti v e B oard p ro gra m s

co sts o f

enhancin g, g uid elin es f o r

sa fe p ra cti c e

Situ ati o nal S ale s N ego ti a ti o n m eth o d

U nkno w n, i n no vati o n a ro und

U np la nned p urc hase s, c o st o f.

See

W . W . G ra in ger te achin g p itc h

V alu e

pla nnin g to ol, ta ilo re d to c lie nt

and p ric e i n cre ase .

se e

P ric e-to -v alu e r a ti o

W arm er

in C om merc ia l T eachin g p itc h

in W . W . G ra in ger te achin g p itc h

W ork sh o ps, n ego ti a ti o n w ork sh o p

W . W . G ra in ger

challe nges f a cin g

C om merc ia l T eachin g, c ase s tu d y.

se e

W . W . G ra in ger te achin g p itc h

co m pany i n fo rm ati o n

pilo t s a le s p ro gra m

uniq ue c ap ab iliti e s, d is c o verin g

W . W . G ra in ger te achin g p itc h

custo m er a s f o cus

D eb O le r q uesti o n

E m oti o nal I m pact i n

N ew W ay i n

org aniz a ti o nal c ap ab ility , b uild in g

“P ow er o f P la nnin g th e U np la nned , T he,”

R ati o nal D ro w nin g i n

R efr a m in g i n

S olu ti o n i n

W arm er i n

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