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Feature
Article: "Saville Row Training"by
Edwin Ecob
When it comes to training, especially sales training, one size
does not fit all. There are generic sales training courses, for
example solution selling methodologies, which can be delivered "off
the peg" - with or without "minor modifications"
to meet specific company-wide requirements. Whilst these courses
are certainly necessary, they are not sufficient to fully equip
the sales force for the challenges they face. To use an analogy,
sales skills training can be thought of as "helping sales reps
learn how to sing". This leaves a clear gap for the sales reps
to learn the songs which enable them to demonstrate their skills.
In this context, the songs are the relevant industry issues and
the ways they are addressed.
In the featured article in Issue 15
of Cambashi's ezine, Mike Evans spoke about our experiences "out
on the road" giving industry training to sales people. The
core of these workshops has been explaining how to call on different
line of business managers ready to discuss business drivers, business
initiatives and the pains the managers are experiencing. We have
observed a change in the profile of the workshops we are asked to
deliver. Instead of broadly based "production industries"
sessions, now the interest is in specific sectors, and individual
accounts.
In any analysis of the manufacturing industry at a "big picture"
level, some business drivers and business initiatives appear time
and again. Phrases such as "Increased competition", "cost
reduction", "the impact of globalisation" and "faster
time to market" are found in almost any industry analysis,
irrespective of sector. Even something as specific as environmental
legislation is a major business driver in industries as diverse
as electricity production and forestry.
Corporate responses to some of these business demands are often
similar from one organisation to the next. Many companies are involved
in outsourcing not just support functions but "core" activities
such as design and manufacturing. In large organisations, merger
and acquisition activity is an almost ubiquitous business response
to increased competitive pressure and the need to cut costs. Juggling
the balance of "central" versus "local" control
of resourcing decisions is another familiar response.
However, as soon as we take a closer look we find that in addition
to these shared business drivers, there are also many that are industry
specific, for example, patent expiration and the rising use of generic
alternatives in the pharmaceutical sector. Further, even within
an individual sector, the initiatives an organisation takes to respond
to the external influence vary from organisation to organisation.
One company's response to an increase in the cost of a raw material
may be to change supplier, another's might be to redesign using
a different material. These differences can relate to internal differences
as diverse as the company's financial position, or in-house skill
sets.
There is a similar situation looking inside companies at their
use of technologies. So, for IT, there is a common set of applications
which companies are "expected" to have / want / need -
ERP, CRM, SCM and so on. However, the way a company applies a new
application such as CRM - and the particular functionality it uses
- depends on the company's focus. For instance, it may seem obvious
that call centres are more prevalent in end-user facing companies,
such as utilities, than they are in engineer to order companies.
However, for a CRM sales rep to succeed, he needs to understand
how to interpret and use these differences to put together the winning
offer.
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Companies are moving on from Manufacturing "101" and
"201" workshops (which can last anything from a half day
to 3 days - including factory visit!) to workshops focussed on a
particular industry sector typically at the level of "food
and beverage" or "consumer electronics" or "automotive".
These workshops allow exploration of the drivers and responses in
much more detail whilst allowing our clients to position their solutions
in these sectors.
Indeed there is increasingly a requirement for this type of workshop
at individual account level. While the business drivers mentioned
earlier are common across industry sectors and there are some "typical"
reactions to these pressures, most business responses and initiatives
depend on the particular account, where its priorities lie, what
technology it has in place, and so on. If a "sector" approach
is used, care has to be taken when categorising accounts as belonging
to a particular sector. For instance, whilst both Ford and Goodyear
must respond to external drivers of the automotive industry such
as over-capacity, they must also respond to other business circumstances.
In the case of Goodyear, this may be the availability and price
of rubber. As far as their internal manufacturing processes are
concerned, the two companies are completely different whereas, for
the big picture of supply chain planning, there will be a substantial
overlap regarding geographic market expectations
So to sell effectively into a major account, the sales person has
to be aware of both the external business climate and the internal
situation within the account. Few, if any, major IT initiatives
involve only one decision maker within an account. As an example,
consider an account that has decided to respond to competitive pressure
to reduce costs by rationalising its supplier base with a particular
focus on direct goods. This initiative will probably be driven by
the procurement / purchasing department. It will also involve engineering,
quality and logistics departments and probably others. It may involve
many plants in different countries
The salesperson proposing an IT solution will need to act as a
facilitator, linking the various departments and also engaging with
the IT group. Traditional sales skills will allow them to discover
allegiances and rivalries. However, industry, business and account
knowledge are key both to maintaining engagement, and jumping the
hurdles of the investment decision-making process. For example,
claims that a particular solution will give an ROI of x% cannot
be made without a thorough analysis and understanding of the client's
business, leading to a specific business case for that account.
Fortunately customers are very often open to this approach. They
like the fact that the vendor will work with them on their data
to develop a business justification that they can present to their
management.
The role of the sales rep has changed. They are at once a provider
of business information, a source of references, an internal communication
channel and a business consultant. To meet the needs of this extended
role, the training provided has to change from "off the peg"
to "Saville Row". Email Edwin
Ecob for more details on how to provide Saville Row training
to your sales reps.
Edwin
Ecob
Also in this issue . . . .
| Hot
Topic: |
Money,
money, money
The downturn in revenues from the engineering applications
market continues says Nick Ballard while Allan Behrens
discusses ways in which vendors can actually help their
customers make money.
|
| Book
Review: |
Key
Management Ratios by Ciaron Walsh
is reviewed by Allan
Behrens - for
those who want a better understanding of company accounts. |
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