VCV KRING: Sales & Account Management

i.s.m.

Workshop:Aanbestedingen & tenders

vragen om innovatie van Sales6de bijeenkomst 9 september 2010

09/09/10 Dougies BV

Workshop: Aanbestedingen en tendersvragen om innovatie van SalesCINFIELD & Dougies9 september , De Rooy Gebouw Kamer 104

programma19.00u Ontvangst19.30u Opening & Introductie (Douglas)19.45u Bidmanagement als integraal onderdeel van het sales proces (Alexander Reuvers)

- De traditionele kijk op bidmanagement- Veranderingen van inkoop- Bidmanagement als proces- Bidmanagement en innovatie

20.45u   Pauze21.00u   Tender kwalificatie als een sales innovatie tool (Douglas Huissen)

- Sales inefficiëntie- Voordelen van tender kwalificatie- 4 kwalificatie vragen- Opportunity Assessment Tool

21.40u Stellingen & discussie (Douglas & Alexander)22.00u Borrel in de Kelderbar

09/09/10 Dougies BV

Agenda & Introductie

• Welkom introducés (oa CINFIELD)• Introductie VCV Kring Sales & Account Management• Huishoudelijk

• VCV website• Aanmelden• Catering

• LinkedIn groep• Planning 2011

VCV Kring Sales &Accountmanagement

Aanbestedingen en tenders vragen ominnovatie van sales - Alexander Reuvers

Dougies BV09/09/10

09/09/10 Dougies BV

Tender Kwalificatie = een mustWaarom Sales moet innoveren

• Old school sales: “Buyers are Liars” David Sandler• New school sales: “Sales is an incomplete model that fails

at least 90% of the times” Sharon Drew Morgen• Facts: Success ratio on tenders (public and private) is still

less than 20% (BRC report 2009)• Trend: more and more formal tenders, rigid processes,

more risk for both customers as tenderers.• Today: presenting you a useful easy to understand

quantative tool and measurable tool: Strategic OpportunityAssessment Tool

‘The nicest thing about not qualifying, is that failure comesas a complete surprise and is not preceded by a period of

worry and depression’

09/09/10 Dougies BV

A consistent and efficient sales process will help youto increase your win rating on tenders and opportunities

Q: Traditionally qualification on occurs only once when the opportunity needs to be managed

By repetitively qualification and assessment progress and strategy can be managed and tracked

Using a simple and understandable qualification and assessment tool

Ranking responses on 4 fundamental qualification questions

Implement theContract

Identifying Leads Manage theOpportunity

Manage the Bid

Marketsegmentinformation

Account &Portf olioPlanning

DesignSolution

Createproposal

CloseContract Implement Contract

ScopeOpportunity

Qualif yOpportunity

.

Q Q Q Q

09/09/10 Dougies BV

Tender qualification benefits

• Increase the win chances on tenders >20%• A tool that lowers your Sales/Tender costs :

• Direct tender costs• Opportunity losses

• Objective measurable tool to set priorities between opportunities• Resource allocation tool, your best resources are scarce…better

put them on deals that are worth it..• Dashboard function (As-is status)• Regular/periodic updates on assessment• A tool to formulate and assess the appropriate Sales strategy• NOT: A no-bid tool…. No-bidding will eventually educate your

customers on how and when most value can be gained from youas a supplier

09/09/10 Dougies BV

Q1) Is there an opportunity?

• Visibility of the Engagement (formal RFP?) ..careful• Our understanding of the customer's requirements• Our Understanding of the evaluation criteria and weightings• Our understanding of the customer's benefits/objectives.• Our knowledge of the customer's budget• Do you understand your Customer's intent to solve ?• Is there a Clear Compelling Event• What are the consequences of delay• Is the customer spending on external consultancy to guide

the process• Is the Opportunity planned ?• What is our position in the sales process?

09/09/10 Dougies BV

Q2) Can we Compete?

• Who made the description of the requirements?• Is your offer 100% compliant?• What’s your customers view on your offering/reputation for this

deal• Do you have clear and undisputed USPs according to the

customer.• Do you have specific sector Understanding/Expertise?• Do you have the appropriate references in sector• What is your experience in similar projects• Do you have the time and resources to respond compliantly and

competitively• Does the proposal have to be best and final• Is the customer visiting references/data centres• Coverage (licencing/billing/network nodes)• Do we need partnerships and are they in place

09/09/10 Dougies BV

Q3) Can we win?• It is an existing customer?• Number of competitors• Do you have a clear strategy to defeat your main rival?• What’s your understanding of the DMU• Who is the preferred supplier• Is the account team in control of the customer and

process?• If it is a draw what will happen?• Do we have contact to the end customer?• Do you have to be cheapest?• Does YourCo have a friendly consultant in the process• Managing the selling team will be …

09/09/10 Dougies BV

Q4) Is it worth winning?

• NIBR expected from the deal• Sales investment required• "Quality" of the customer/business potential• Profitability of the deal• EBIT impact Year 1• Risk assessment (register?) transition & operational, public

exposures?• Does this deal jeopardize other opportunities• Does Your management want this deal ?

09/09/10 Dougies BV

Bid production & StrategyBid production & Strategy Clarification, enhancement Clarification, enhancement & negotiations& negotiations

Dougies Opportunity Assessment ModelDougies Opportunity Assessment Model

Do we know the decisioncriteria?

Can we be compliant?

-Technical

-Operational

-Planning

Do we have agreed T&C’s?

Do we have a contact plan& strategy?

-Fox hunting

-Power base

Can we hit win price?

BUILD P&L!asap!

Competitive assessment!

Did we adopt the winning strategy:

Defend

Frontal

Flanking

Fragment

Pro

spect

Pro

spect

TestTest ExecuteExecute ImproveImprove

Feedb

ack on

Feedb

ack on

pro

po

salp

rop

osal

Clarificatio

n q

uestio

ns

Clarificatio

n q

uestio

ns

Reg

ular d

ialog

ue

Reg

ular d

ialog

ue

Multi level Multi level Contact planContact planSenior Man.Senior Man.EngagementEngagement

Continues win rating improvement

Emphasizing Emphasizing CompetitiveCompetitiveAdvantagesAdvantages

NeutralizingNeutralizingCompetitionCompetition

VisitsVisits

ReferenceReferenceVisitsVisits

EngagingEngagingPartnershipsPartnerships

MarketingMarketingEventsEvents

Further cost-Further cost-savingssavings

ConsolidatingConsolidatingBenefitsBenefits

Techn. Design Techn. Design optimizationoptimization

Broadening Broadening scopescope

Sharing riskSharing risk

ImplementationImplementationOptimizationOptimization

FurtherFurtherFinancialFinancialBenefitsBenefits

--sign on feesign on fee--CPE buy backCPE buy back--Benchmarking Benchmarking

Decision

Decision

Loss reco

veryLo

ss recovery

Escap

e vehicle

Escap

e vehicle

Neg

otiatio

nN

ego

tiation

Trap

pin

g T

rapp

ing

Is there an opportunity?

Can we Com

pete?

Can we W

in?

Is it worth w

inning?

Opportunity assessment Opportunity assessment & qualification (TAS)& qualification (TAS)

09/09/10 Dougies BV

Opportunityassessment &qualificationscore card

Dougies Strategic Opportunity Assessment Sheet

Proj ect / Customer N ame

Submi ssi on date (Customer) D ate of Request D ue D ate (Proposal )

CRM-N umber Pl ease i nsert ContractVal ue € 0

Q1) Is there an opportunity?Eval uati on Cri teri a and Scal e Score

Comments

N egati ve N eutral Posi t i ve Your Co

Vi si bi l i ty of the Engagement ( formal RFP?) Rumor= -1

Confirmed= 0

Offici al= + 1 H ow sure are w e that there w i l l be a contract ? Can the customer cancel the request for proposal ? I s there a formal RFP?

O ur understandi ng of the customer's requi rements N ot preci se= -2

Fai r= 0

Sharp= + 2 H as the customer l i sted or made cl ear i ts requi rements and the eval uati on cri teri a

O ur Understandi ng of the eval uati on cri teri a and w ei ghti ngs N ot cl ear= -1 Fai r= 0 I n D epth

= + 1 I s the customer usi ng a bal anced score card assessment and do w e understand how w e can score agai nst these cri teri a

O ur understandi ng of the customer's benefits/obj ecti ves. N ot cl ear= -2

Fai r = 0

I n D epth= + 2 Thi nk about al l types of benefits : for the company, for i ndi vi dual s, etc. ( "moti vati on cri teri a")

O ur know l edge of the customer's budget N ot al l ocated= -2 Al l ocated but unknow n = 0 Know n

= + 1 H ow much money di d the customer actual l y make avai l abl e for the proj ect?

Customer's i ntent to sol ve Weak= -2

Medi um= 0

Strong = + 2

Authori ty from the customer's deci si on maker w i l l be requi red for the deal to go ahead. D oes the customer need or w ant the proj ect 'ssuccess ?

Cl ear Compel l i ng Event N ot cl ear= -2

Fai r = 0

Cl ear= + 2

Contract expi ry/renew al are not cl ear compel l i ng events. A Fai r compel l i ng event i s e.g. the upgrade of the netw ork or WAN consol i dati on.

What are the consequences of del ay N one = -2

Fai r = 0

Yes = + 1 Exampl e for fai r consequences are mi ssed savi ngs a huge consequence i s typi cal l y a del ay that i mpacts customers operati ons

I s the customer spendi ng on external consul tancy to gui de the process N one = -2

Fai r = 0

Yes = + 1

O pportuni ty pl anned ? / N o= 0

Yes= + 1 An opportuni ty i s pl anned w hen i t resul ts from the sel l i ng strategy on an exi sti ng account pl an.

O ur posi t i on i n the sal es process / Re-acti ve= 0

Pro-acti ve= + 1 Was YourCo consi deri ng an off eri ng before recepti on of the formal Request for Proposal ?

Subtotal for thi s I tem Mi n= -15

Max= + 15 0

Q2) Can we Compete?Eval uati on Cri teri a and Scal e Score

Comments

N egati ve N eutral Posi t i ve Your Co

Who made the descri pti on of the requi rements A competi tor= -2

The customer = 0

YourCo = + 1

Can YourCo off er 100% compl i ant? N o = -2 / Yes

= + 2 i ncl ude techni cal , commerci al , l i censi ng and l egal compl i ance.

YourCo's percei ved off eri ng/reputati on for thi s deal Weak = -1

Fai r= 0

Strong = + 2

What i s the percei ved reputati on from the customer and competi tors

YourCo has cl ear and undi sputed USPs accordi ng to the cust .Few /Bad = -1

Some/O K = 0

Large/Good = + 2

YourCo Sector Understandi ng Unknow n = -1

Fai r = 0

Excel l ent = + 1 Thi s questi on pertai ns to the rel evant competence on the i ncumbent YourCo enti ty.

YourCo references i n sector Few /Bad = -1

Some/O K = 0

Many/Good= + 1 Same as above.

YourCo experi ence i n si mi l ar probl ems Few /Bad = -1

Some/O K = 0

Large/Good = + 2 Same as above.

D o w e have the t i me and resources to respond ful l y compl i antl y and competi t i vel y N o = -1 N ot yet = 0 Yes= + 2

D oes the proposal have to be best and final Yes = -1 For RFP = 0 After D D can be ri vi si t = + 2

I s the customer vi si t i ng references/data centres N o = -1 N o yet = 0 Yes= + 1

Coverage ( l i cenci ng/bi l l i ng/netw ork nodes) < 50% = -2 51% > 90% = 0 > 90% = + 2

D o w e need partnershi ps and are they i n pl ace N o = -1 Yes = 0 Excl usi ve basi s = + 2 Partners are not the same as suppl i ers l i ke oBS/Vanco.

Subtotal for thi s i tem Mi n= -15

Max = + 20 0

Q3) Can we win?Eval uati on Cri teri a and Scal e Score

Comments

N egati ve N eutral Posi t i ve Your Co

I t i s an exi sti ng customer?new= -2

exi sti ng i n H ome-l and= + 1 Exi sti ng I nternati onal = + 2 D o w e have a tradi ng rel ati onshi p w i th that customer/O pco/D epartment

N umber of competi tors More than 5= -1

1 to 5= 0

YourCo Al one= + 2

YourCo strategy to defeat the competi t i on/i ncumbant N ot cl ear/j ust pri ci ng = -2 Some i deas = 0 Cl ear competi t i ve strategy = + 2

O ur understandi ng of the D MU Poor= -1

Know n but rel ati ons to be bui l t = 0 Wel l know n and rel ati on bui l t = + 2 I denti fyi ng the D MU i s one thi ng , bui l di ng rel ati ons i s another one. What i s our understandi ng and i nfluence on deci si on process ?

Who i s the preferred suppl i er A competi tor= -2

N obody= 0

YourCo = + 2 I s there evi dence on the customer's preference?

YourCo posi t i on i n the l i st Weak= -1

Average= 0

Good= + 1 I s there more than one competi tor more competent / better pl aced than YourCo accordi ng to you?

I s the account team i n control of the customer and process? N o = -2 / Yes

= + 1 Are you sure about your eval uati on?

YourCo chances to w i n ? Less than 10% = -2 10-90%= 0

More than 90% = + 1 I n case > 90% pl ease provi de evi dence?

I f i t i s a draw w hat w i l l happen? Lose = -2 Extenti on/ cl ari ficati on = 0 TS to w i n = + 2

D o w e have contact to the end customer? N o = -1 N ot al l ow ed = 0 Yes= + 1 End customer as i n O perati ng Company, LBU, countr org etc. w ho are part of the D MU for thi s opportuni ty

YourCo has to be cheapest Yes= -2 / N o

= + 2 D oes TS have the opportuni ty to compete on other cri teri a then pri ce al one? I f TS i s 20% more expensi ve can TS sti l l w i n?

D oes YourCo have a fri endl y consul tant i n the process N o = -1 / Yes

= + 1 Fri endl y consul tant i s someone that has proven val ue to TS i n an earl i er tender. (N ot one that onl y accepts di nner and i ncenti ves)

Managi ng the sel l i ng team w i l l be … D ifficul t= -1

N ormal= 0

Easy= + 1 Accordi ng to i t 's si ze and profil e, the sel l i ng team w i l l be more or l ess easy to manage

Subtotal for thi s i tem Mi n= -20

Max = + 20

0

Q4) Is it worth winning?Eval uati on Cri teri a and Scal e Score

Comments

N egati ve N eutral Posi t i ve YourCo

N I BR expected from the dealSmal l = -2

future = 0

Large thi s book year= + 2 N I BR i s nett i ncremental bi l l ed revenue. Smal l N I BR i s w hen i t i s onl y a re-si gn agai nst more di scounts

Sal es i nvestment requi red H i gh = -1 N ormal for thi s deal = 0 / To be eval uated i n rel ati on w i th the si ze of the opportuni ty. Rul e of thumb: normal bi d cost = 1.5% of the expected revenue.

"Q ual i ty" of the customer/busi ness potenti al Poor= -2

Good= 0

Top= + 3 I s the customer heal thy and profitabl e? What i s the potenti al for fol l ow -on busi ness?

Profitabi l i ty of the deal Low = -2

N ormal = 0

H i gh = + 2 H i gh means unusual l y hi gh rates. N ormal means at l east 20% markup on products and regul ar CO R on servi ces.

EBI T i mpact Year 1 H i gh > -1000k = -2 Average = 0 N o = + 2 Are there si gni ficant upfront l osses or O TC/N RC to be amorti sed over the deal ?

Ri sk assessment H i gh = -2

N ormal = 0

l ow (mi ti gated) = + 2 consi der: t ransi t i on ri sk, financi al ri sk (O utsource) , hr ri sk, operati onal ri sk, and reputi on

D oes thi s deal j eopardi se other opportuni t i es Yes = -2 / N o = + 2 D oes thi s deal l i mi t support to other opportuni t i es or t i me TS can spend on keepi ng exi sti ng customers sati sfied

D oes YourCo w ant thi s deal ? Mi ght be= -2

Yes i ndeed = 0

Absol utel y= + 2 "Absol utel y" means there i s an offici al commi tment from corporate management to w i n the deal .

Subtotal for thi s i tem Mi n = -15 Max = + 15 0

D ECI SI O N

Total score of opportuni ty :.. Mi n = -65 Max = + 70 0 GO N O GO

AM Si gnature Approved by Manager Sal es Support Approved by Manager Maj or D eal s

Copyri ght D ougi es BV 2010. Rotondew eg 27, 1261 BE Bl ari cum. + 31651629177 emai l : dougl as@ dougi es.nl Web: w w w .dougi es.nl

09/09/10 Dougies BV BRC 2009

Lost Prospects say:

92% Too little attention

86% Too little initiative

79% Lack of understanding

76% Appointments….

72% No solution for requirement

67% Not taken seriously enough

58% No fair deal

17% Price too high

09/13/10 Dougies BV

Dougies competitive strategy decision treeDougies competitive strategy decision treeStart

Is there a compelling event or can we create

one?

Can we compete? Do you have a 3:1 advantage?

Can you change Or expand the buying

criteria

Can you find a profitable subset ?

Y

Do you have a position that you

must protect

Is there futureRevenue or strategic

Value?

Disengage

N N

Y

N

N

FrontalPriceSolutionReputation

DefendInsulateIsolate

FlankingA->BA->A+1

FragmentNiche Coexistence

DevelopInvestDelay

Y

Y

Y

Y

N

N

Y

09/09/10 Dougies BV

Stellingen

• De Salesmanager heeft onvoldoende kennis van en inzichtin de inkoopmodellen

• De Bidmanager is eigenaar en dus verantwoordelijk voorhet bidtraject

• Bidmanagement is in de huidige conjunctuur belangrijkerdan persoonlijke verkoop

• Bidmanagement is een relevant business development tool• Aanbestedingen en Tenders vragen om innovatie van Sales• Er wordt veel te weinig ge-no-bid• Klanten waarderen een no-bid• Moet je tenderen ook al zijn je win-kansen zeer gering?

09/09/10 Dougies BV

2011 onderwerpen?

• Sales Strategies (decision scenario’s)• Global Account Management & Sales Goverance• Sales Incentive plans• Implementing Key Account Management• …• …

09/09/10

Next event: 12October

• CINFIELD’s 3e Shared ExpertiseMeeting (SEM3) samen met NEVICPD: ‘dialoog tussen inkoop enverkoop’

• Lokatie: Hogeschool UtrechtFaculteit Facilitair Management teAmersfoort

• Opgeven via VCV website ofCINFIELD

• Verder: meld je aan voor onzeLinkedIn groep: VCV Kring voorSales & Account Management

• En de LinkedIn groep: Bidmanagement professionals