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Scaling Your Operations
You are building a company, things are going well, and you need
continued growth, continued excitement in your market and prove your
contemporary business model. Your biggest worry is how to scale your
operation. Direct sales are risky and expensive, geographic expansion
requires localization and product investment and partnerships take time
to nurture and pay off. With all of these challenges how do we build an
effective sales operation to take us to the next level?
This is not an uncommon problem. All technology companies face it
some point during their evolution. Whether it is picking the right sales
reps, serving the right markets, or selecting the right partners, you need
to stay focused on your core competence and plan your opportunities.
Stay away from the common pitfalls and get help from people who have
successfully done it before.
The first question to ask your team; is our offering scalable? Most
companies think of stability in terms of product performance and quality,
though important for growth this is assumed. Your offering is scalable
when messages are simple and your value proposition is easily
understood. Your offering should have a straight forward
implementation and should quickly integrate with larger solutions.
When you have achieved this, then your offering is repeatable. When
repeatable it becomes easy to train new reps, expand to new
geographies and partner with companies that will integrate your product
into their solutions.
It starts with messaging. Are your messages simple? Can you
articulate your value proposition in a minute? Is it repeatable in targeted
vertical markets? Do you have proof statements to back up your
claims? It is very important to get this messaging crisp. When you go to
market with a direct sales model, your good sales reps can overcome
messaging problems at the point of sale, but these models don’t scale.
Remember that direct sales reps sell your product many times, the
customer buys only once.
If you have a configurable product that suits many purposes for many
people, you will need to package and price solutions to show tangible
benefits to end users. Once installed, expansion opportunities will
emerge through good account management. Good messaging is the
foundation of effective outbound PR. Outbound PR will gain influencer
mindshare, company and product awareness and most importantly
attract new selling partners. Good crisp messaging makes your offering
scalable shortening direct sales cycles and jump starting the partnering
process.
The scaling of your operation requires collaboration with the whole
operations team. It involves listening to what is happening in sales
situations, tracking your competition then projecting your core
competence. This will help you choose your vertical markets, drive
product development and align with solution partners.
This sounds straight forward, but there is many pitfalls along the way.
Staying focused requires a plan that can be executed by the entire
operations team. The best operations are “plan driven and process
managed”, allowing you to constantly measure and manage progress,
make adjustments and learn from your actions.
You are building a company, things are going well, and you need
continued growth, continued excitement in your market and prove your
contemporary business model. Your biggest worry is how to scale your
operation. Direct sales are risky and expensive, geographic expansion
requires localization and product investment and partnerships take time
to nurture and pay off. With all of these challenges how do we build an
effective sales operation to take us to the next level?
This is not an uncommon problem. All technology companies face it
some point during their evolution. Whether it is picking the right sales
reps, serving the right markets, or selecting the right partners, you need
to stay focused on your core competence and plan your opportunities.
Stay away from the common pitfalls and get help from people who have
successfully done it before.
The first question to ask your team; is our offering scalable? Most
companies think of stability in terms of product performance and quality,
though important for growth this is assumed. Your offering is scalable
when messages are simple and your value proposition is easily
understood. Your offering should have a straight forward
implementation and should quickly integrate with larger solutions.
When you have achieved this, then your offering is repeatable. When
repeatable it becomes easy to train new reps, expand to new
geographies and partner with companies that will integrate your product
into their solutions.
It starts with messaging. Are your messages simple? Can you
articulate your value proposition in a minute? Is it repeatable in targeted
vertical markets? Do you have proof statements to back up your
claims? It is very important to get this messaging crisp. When you go to
market with a direct sales model, your good sales reps can overcome
messaging problems at the point of sale, but these models don’t scale.
Remember that direct sales reps sell your product many times, the
customer buys only once.
If you have a configurable product that suits many purposes for many
people, you will need to package and price solutions to show tangible
benefits to end users. Once installed, expansion opportunities will
emerge through good account management. Good messaging is the
foundation of effective outbound PR. Outbound PR will gain influencer
mindshare, company and product awareness and most importantly
attract new selling partners. Good crisp messaging makes your offering
scalable shortening direct sales cycles and jump starting the partnering
process.
The scaling of your operation requires collaboration with the whole
operations team. It involves listening to what is happening in sales
situations, tracking your competition then projecting your core
competence. This will help you choose your vertical markets, drive
product development and align with solution partners.
This sounds straight forward, but there is many pitfalls along the way.
Staying focused requires a plan that can be executed by the entire
operations team. The best operations are “plan driven and process
managed”, allowing you to constantly measure and manage progress,
make adjustments and learn from your actions.
How Do Your Sales People Sell? |
| Palladin |
| Growing your Business |
| Working With Your Team |
| Comments? |
Profile, Align & Define Direct Sales:
Hiring direct sales people can be risky. It takes time to train and build a
book of business. It is important to develop a sales rep profile. The
profile is important, moving too far away from it will produce poor results.
“An empty apartment is better than a bad tenant”.
Style should be a consideration of the sales rep profile. Since by nature,
sales people tend to be outspoken, be sure you understand how their
style fits into your culture. Certain styles works better in large companies,
other styles works better in small companies where everyone carries a
bag. Some styles do not work anywhere!
Style consideration is particularly important when you choose a leader to
run your sales organization, because more than likely, they will bring in
their own posse of sales people who will behave similarly. It is important
to understand what you are in for before you bring in a new sales
executive & sales team. If not, your entire organization may suffer.
Other than references, here is one simple way to get first hand experience
about the profile & style of a potential sales candidate: Bring them out for
a round of golf. You would be surprised what you can learn about
someone in a 6 hour pressure packed round of golf!
Since compensation also drives sales behavior, make sure that the sales
compensation plans are aligned with company business plans . Be real
sure that territories are clearly defined to avoid channel conflict with other
reps and selling partners.
Finally, define the sales process and assign resources based on
process steps. This will encourage information sharing and opportunity
qualification. All this information should be contained in a collaborative
sales tracking & forecasting system that all company stake holders have
access to.
Geographical Expansion:
Europeans like to buy from Europeans. A successful sales group in the
US may not succeed in Europe. Look for talent that has been successful
selling similar products in the foreign territory. It is important that they
have contacts and the ability to bring in good people. Look for expansion
through American multi-national companies to get local references.
Partnering with Purpose:
Choosing partners can be very difficult. Analysts can be very effective at
suggesting potential partners and making introductions. Ask your
customers what service providers they use. Look at your competition,
who do they partner with? Partnership include, selling partners that sell
with you, OEM partners who embed your solution in their offerings and
technology partners which extend your solution.
To gain revenue through partners you must understand how they sell and
get paid. Are they vertically aligned and is your vertical alignment similar.
Are you speaking with the right people, you can spend a lot of cycles
chasing a marketing relationship. Follow the money, sell with your
partner. Check your contacts with analysts or other influencers to see if
you are speaking with the right people.
As outlined earlier, be sure the compensation plans for your direct sales
teams are in line with your channel objectives. Compensation drives
behavior. Do not create compensation plans that are destructive to your
objectives.
Find a compelling reason to partner. Make sure that your joint value helps
them win deals. Make sure they understand how the partnership makes
them more competitive. Never get stuck in a program.
There is a lot to do, and if you can do it quickly you will beat your
competition. Who is your coach? Palladin can help. Our partners have
lived this problem at many companies in different roles. We can help you
through the process rolling up our sleeves, working with you, sharing
contacts and giving you the benefits of our experience. Why can we help,
because that’s what we do? Go to our Website, explore our Blog. Then
please give us a call.
Hiring direct sales people can be risky. It takes time to train and build a
book of business. It is important to develop a sales rep profile. The
profile is important, moving too far away from it will produce poor results.
“An empty apartment is better than a bad tenant”.
Style should be a consideration of the sales rep profile. Since by nature,
sales people tend to be outspoken, be sure you understand how their
style fits into your culture. Certain styles works better in large companies,
other styles works better in small companies where everyone carries a
bag. Some styles do not work anywhere!
Style consideration is particularly important when you choose a leader to
run your sales organization, because more than likely, they will bring in
their own posse of sales people who will behave similarly. It is important
to understand what you are in for before you bring in a new sales
executive & sales team. If not, your entire organization may suffer.
Other than references, here is one simple way to get first hand experience
about the profile & style of a potential sales candidate: Bring them out for
a round of golf. You would be surprised what you can learn about
someone in a 6 hour pressure packed round of golf!
Since compensation also drives sales behavior, make sure that the sales
compensation plans are aligned with company business plans . Be real
sure that territories are clearly defined to avoid channel conflict with other
reps and selling partners.
Finally, define the sales process and assign resources based on
process steps. This will encourage information sharing and opportunity
qualification. All this information should be contained in a collaborative
sales tracking & forecasting system that all company stake holders have
access to.
Geographical Expansion:
Europeans like to buy from Europeans. A successful sales group in the
US may not succeed in Europe. Look for talent that has been successful
selling similar products in the foreign territory. It is important that they
have contacts and the ability to bring in good people. Look for expansion
through American multi-national companies to get local references.
Partnering with Purpose:
Choosing partners can be very difficult. Analysts can be very effective at
suggesting potential partners and making introductions. Ask your
customers what service providers they use. Look at your competition,
who do they partner with? Partnership include, selling partners that sell
with you, OEM partners who embed your solution in their offerings and
technology partners which extend your solution.
To gain revenue through partners you must understand how they sell and
get paid. Are they vertically aligned and is your vertical alignment similar.
Are you speaking with the right people, you can spend a lot of cycles
chasing a marketing relationship. Follow the money, sell with your
partner. Check your contacts with analysts or other influencers to see if
you are speaking with the right people.
As outlined earlier, be sure the compensation plans for your direct sales
teams are in line with your channel objectives. Compensation drives
behavior. Do not create compensation plans that are destructive to your
objectives.
Find a compelling reason to partner. Make sure that your joint value helps
them win deals. Make sure they understand how the partnership makes
them more competitive. Never get stuck in a program.
There is a lot to do, and if you can do it quickly you will beat your
competition. Who is your coach? Palladin can help. Our partners have
lived this problem at many companies in different roles. We can help you
through the process rolling up our sleeves, working with you, sharing
contacts and giving you the benefits of our experience. Why can we help,
because that’s what we do? Go to our Website, explore our Blog. Then
please give us a call.
| Developing Breakthrough Sales Operations |
| Competition |
| Leadership Style |
| Feel free to comment on our blog |
