Winning large, complex sales opportunities at Hewlett-Packard Co. By Philip Squire
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recent research project has provided insights about how to raise professionalism standards in selling complex solutions. Key findings suggested a new sales approach Û> `>Ìi`ÊLÞÊV «ÕÌiÀÊ} > ÌÊ iÜ iÌÌ *>V >À`Ê Co.’s outsourcing team. Strategies using this >««À >V Ê >ÛiÊ Ã ViÊ i «i`Ê *Ê Ü Ê } L> Ê deals with both new and existing customers.
the rarest in practice and really distinguishes the good from excellent service providers. Without it, all of the good proactivity and innovation qualities that strong outfits emphasize can easily slide into the arrogance of the difficultto-manage non-partner.”
and H. David Hennessey
Research findings
professor of marketing Babson College
Four leading critical values that significantly improved closing rates emerged from in-depth interviews with more than 120 selling and buying professionals. The four values were client centricity, authenticity, proactive creativity and tactful audacity, as shown in the figure.
Client centricity is a basic sales element, mastery of which is achieved through practice and constant reflection—e.g., “Am I doing the right things for my customers?” “What creative ideas can I bring?” and “How can I validate these ideas?” The focus on understanding the customer’s industry and strategy to win in that industry drives the salesperson to provide the best-fit solution, not to find a home for an off-the-shelf solution. He is passionate about helping the customer improve its business. How best to understand the client and its industry drivers? Engaging with the analyst community is a prerequisite for large deals. Analysts provide insights into what keeps the board awake at night. Analysts are paid to study the industry’s economic metrics and have a « ÌÊ vÊÛ iÜÊ>L ÕÌÊV «iÌ Ì ÀÃ°Ê ÊÀiVi ÌÊ *Ê deal with a global leader in human resources services was the result of understanding that supply issues were the main driver for «À v Ì°Ê / ÃÊ i >L i`Ê *Ê Ì Ê ÃÕ}}iÃÌÊ Ü>ÞÃÊ vÊ using technology, including branch-in-a-box concepts, to attract more applicants. These à } ÌÃÊ Ã Üi`Ê Ì iÊ V i ÌÊ Ì >ÌÊ *Ê ÃiÀ Õà ÞÊ thought about the client’s business.
chief executive officer Consalia Ltd.
Michael Hurley director Hewlett-Packard Co.
Client centricity and authenticity are required to build trust with the customer. While necessary to succeed, these two values alone do not ÃÕvv Vi°Ê*À >VÌ ÛiÊVÀi>Ì Û ÌÞÊ> `ÊÌ>VÌvÕ Ê>Õ`>V ÌÞÊ are the two most differentiating, outstanding ones, meaning they are most important to customers and Differentiating/outstanding values most lacking in sellers. Customers Differentiating/ observe these values outstanding value Is seen as: in the intelligence #LIENT CENTRICITY Interested, investigative, knowledgeable, and ingenuity of dedicated, passionate, accountable and salespeople. One attentive customer in the study !UTHENTICITY Honest, credible, unpretentious, sincere, made the following ethical, trustworthy and dependable comment of tactful 0ROACTIVE CREATIVITY Strategic, forward thinking, innovative, audacity: “This is creative, reflective and above and beyond probably the most 4ACTFUL AUDACITY Daring, bold, perceptive, understanding, interesting finding challenging, unconventional and from my point of view. enthusiastic I believe this value is
Client centricity
Authenticity Authenticity is important in ensuring that claims of creating business value are wellvalidated. Interpersonal relationships based on
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trust and integrity are a foundation for latest printing technology was one of The supplier went on to win the deal. a customer deciding what privileged the ideas that came from an Asia-U.S. Implementing the new sales approach information to share with suppliers. The outsourcing pact. This enabled both within HP salesperson works beside the customer to parties to leverage each other’s skills in create a solution and is unpretentious and understanding consumer actions. This approach has been validated free from affectation, inflated self-image through a two-year project working and hypocrisy. Co-creation’s essence Tactful audacity Ü Ì Ê *½ÃÊ ÕÌà ÕÀV }ÊÌi> Êv ÀÊ ÕÀ «i]Ê can be developed through collaborative The research showed that customers the Middle East and Africa. The team alignment workshops leading to new want to be challenged. This necessitates often handles outsourcing deals of more governance constructs. Governance a willingness to take surprisingly bold than $50 million, most of which are models can be created for different risks. The salesperson needs to be global and all of which are complex. client engagement levels to reflect the fearless and daring when suggesting *Ê Ü> Ìi`Ê Ì Ê «À ÛiÊ ÌÃÊ V «iÌ Ì ÛiÊ deal’s strategic or operational aspects. solutions and collaborations to customers. position and felt that creativity in the This is particularly important for deal-making process was key. long-term relationships where It had to engage with existing customers challenge suppliers on HAD TO ENGAGE WITH EXISTING AND and prospective customers in a sustainability of innovation and new way. transparency. PROSPECTIVE CUSTOMERS IN A NEW WAY Using the research results, a Proactive creativity series of workshops brought Ì }iÌ iÀÊ *½ÃÊLÀ } ÌiÃÌÊ `ÃÊÌ Ê *À >VÌ ÛiÊVÀi>Ì Û ÌÞÊ ÃÊ } ÞÊÛ> Õi`ÊLÞÊ Developing these solutions will often clients. The sales team must constantly require access to a supplier’s brightest consider as many facets of each deal minds, who are given the authority as possible. During the workshops the consider new ways to innovate. This requires taking time to think of novel to push the boundaries beyond the research findings were shared, including methods for assisting the customer’s norm. One customer in the study was video clips of buyer interviews. This success within its own business. The surprised when a supplier said that it did helped create a deep awareness of the salesperson recognizes that creativity not want to compete for a $200 million four values. To accelerate and enhance customer intimacy levels, the pursuit is a mind-set and relates not only to deal. When asked why, the supplier said technical innovation but also to all that it could not hope to deliver the team attempted to understand the aspects of the role. As part of a recent best solution if it did not understand customer’s industry and global logic. *Ê `i> Ê Ü Ì Ê 1 iÛiÀ]Ê >Ê «À « Ã Ì Ê the customer’s business drivers in detail. Analysts were engaged in the process to co-create a joint laboratory to The customer could have said OK. In (client centricity). Their insights develop technology solutions using this instance the customer allowed the into the client’s business assisted in radio frequency identification and the supplier access to board-level executives. identifying key drivers and with them knowledge of what senior executives really cared about. A creative-thinking framework challenged existing models of how value could best be brought to customers (proactive creativity and tactful audacity). The pursuit team was encouraged to think beyond core products and services in considering Ì iÊ Û> ÕiÊ *Ê V Õ `Ê «À Û `iÊ Ì Ê Ì iÊ customer (client centricity and proactive creativity).
HP
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Ê V>ÃiÃÊ Ü iÀiÊ *Ê ` `Ê ÌÊ >ÛiÊ the in-house resources to provide components of the solutions, it engaged external resources (client centricity). Each aspect of what was referred to as “win themes” was carefully assessed regarding the validity of external resources’ claims (authenticity). Where VELOCITY® UU32UU Q4 2008 C O P Y R I G H T © 2 0 0 8 S T R AT E G I C A C C O U N T M A N A G E M E N T A S S O C I AT I O N . A L L
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>ÂŤÂŤĂ€ÂœÂŤĂ€Âˆ>ĂŒi]ĂŠ *ĂŠ V>Ă€ivĂ•Â?Â?ÞÊ VÂ…>Â?Â?i˜}i`ĂŠ clients when it felt that a proposal would bring them great value (tactful audacity and authenticity). With global deals the pursuit team took care to engage decision makers and influencers from around the world (client centricity). The results were impressive. We have compared deals that used the new approach with those that did not. Dozens of deals, all with global customers, have been closed using this approach, and the 67-percent conversion rate is 2.5 times higher than before.
countries: Australia, Chile, Brazil >˜`ĂŠ -ÂœĂ•ĂŒÂ…ĂŠ vĂ€ÂˆV>°Ê *ĂŠ “iĂŒĂŠ ĂŒÂ…iĂƒiĂŠ subsidiaries’ chief information officers and chief executive officers to learn about their problems. The goal was to completely meet their needs with *ĂŠ ĂƒÂœÂ?Ă•ĂŒÂˆÂœÂ˜ĂƒÂ°ĂŠ ÂœĂ€ĂŠ ÂˆÂ˜ĂƒĂŒ>˜Vi]ĂŠ ĂœÂ…iÂ˜ĂŠ >ĂŠ mine is 1,400 kilometers from the nearest town, a four-hour service
UĂŠ ĂŠ7 Â…iĂŒÂ…iÀÊ *ĂŠ ÂˆÂ“ÂŤÂ?i“iÂ˜ĂŒi`ĂŠ ĂŒÂ…ÂˆĂƒĂŠ technology for them is probably ÂˆĂ€Ă€iÂ?iĂ›>Â˜ĂŒpÂˆĂŒĂŠ ĂƒÂ…ÂœĂœĂƒĂŠ ĂŒÂ…>ĂŒĂŠ *ĂŠ Â…>ĂƒĂŠ breadth and depth. They liked the v>VĂŒĂŠ *ĂŠLĂ€ÂœĂ•}Â…ĂŒĂŠÂ˜iĂœĂŠÂˆ`i>ĂƒĂŠ>˜`ĂŠĂœ>ĂžĂƒĂŠ of thinking to the table (proactive creativity). UĂŠ / ĂŠ Â…iĂŠ v>VĂŒĂŠ ĂŒÂ…>ĂŒĂŠ *ĂŠ Â…>`ĂŠ `iĂ›iÂ?ÂœÂŤi`ĂŠ >ĂŠ deep understanding of their business “i>Â˜ĂŒĂŠĂŒÂ…>ĂŒĂŠ *Â˝ĂƒĂŠÂˆ`i>ĂƒĂŠĂœiĂ€iĂŠĂ›>Â?ˆ`>ĂŒi`ĂŠ and it could build on the emerging win theme of innovation.
An example of an interesting publicized win was with one of the world’s largest mining and natural resources groups. This captures the essence of how the new approach has helped bring value to both companies in just nine months, from no relationship to a $450 million, seven-year deal. To show how the four values were applied to win the `i>Â?]ĂŠÂ…iĂ€iĂŠÂˆĂƒĂŠ>ĂŠĂƒÂ…ÂœĂ€ĂŒĂŠ>VVÂœĂ•Â˜ĂŒĂŠvĂ€ÂœÂ“ĂŠ *ĂŠ describing some key milestones: UĂŠ ĂŠ *ĂŠ ĂŒÂœÂœÂŽĂŠ >ĂŠ }Â?ÂœL>Â?ĂŠ ÂŤiĂ€ĂƒÂŤiVĂŒÂˆĂ›iĂŠ ÂˆÂ˜ĂŠ building a collaborative relationship, and the mining company responded well. Realizing that it needed to be brought up to speed very quickly to `iĂ›iÂ?ÂœÂŤĂŠ>ĂŠ`i>Â?ĂŠĂƒĂŒĂ€>ĂŒi}Ăž]ĂŠ *ĂŠi˜}>}i`ĂŠ the customer’s senior C-level information technology team as well as human resources and business unit leaders. A series of collaborative workshops helped develop relationships (client centricity).
in and out was hugely valuable to them (proactive creativity).
HP WANTED TO IMPROVE ITS COMPETITIVE POSITION AND FELT THAT CREATIVITY IN THE DEALMAKING PROCESS WAS KEY.
does not make sense. The subsidiaries, UĂŠ ĂŠ Â˜ÂˆĂŒÂˆ>Â?Â?ÞÊ *ĂŠ`ˆ`Â˜Â˝ĂŒĂŠĂ•Â˜`iĂ€ĂƒĂŒ>˜`ĂŠiÂ˜ÂœĂ•}Â…ĂŠ too, liked the collaborative approach of the customer’s business problems (client centricity). ĂŒÂœĂŠ ĂœĂ€ÂˆĂŒiĂŠ >ĂŠ `Ă•iĂŠ `ˆÂ?ˆ}i˜ViĂŠ ÂŤÂ?>Â˜Ă†ĂŠ *ĂŠ first had to see the problems in the UĂŠ The workshops identified potential LĂ•ĂƒÂˆÂ˜iĂƒĂƒÂ°ĂŠ *ĂŠ >˜`ĂŠ ĂŒÂ…iĂŠ VĂ•ĂƒĂŒÂœÂ“iÀÊ ĂŒÂ…iÂ˜ĂŠ areas of innovation. For example, co-developed a due diligence plan. in mining, there are huge issues in /Â…ÂˆĂƒĂŠÂˆĂƒĂŠĂ•Â˜ÂˆÂľĂ•i°Ê ÂœĂ€Â“>Â?Â?ÞÊ *ĂŠ`ÂœiĂƒĂŠÂ˜ÂœĂŒĂŠ knowing where the assets are (some have this level of interaction. In the sites are 10 kilometers across) and end the incumbent competitor was where the people are in the mines. If vÂœĂ€Vi`ĂŠ ĂŒÂœĂŠ Ă•ĂƒiĂŠ *Â˝ĂƒĂŠ “iĂŒÂ…Âœ`ÂœÂ?Âœ}ÞÊ >˜`ĂŠ they lose track of one person, they was therefore on the back foot (tactful have to close a mine for health and audacity and authenticity). safety reasons (client centricity).
The journey has not been easy. Breaking the cultural mind-set from ĂœÂˆĂŒÂ…ÂˆÂ˜ĂŠ *ĂŠĂœ>ĂƒĂŠ>ĂƒĂŠ`ˆvvˆVĂ•Â?ĂŒĂŠ>ĂƒĂŠVÂ…>˜}ˆ˜}ĂŠ the cultural mind-set from without. In situations where customers see deals as purely transactional and procurement departments try to force all suppliers to compete at the same level so they can be compared apples to apples, salespeople must be particularly compelling, creative and audacious to change the transactional mind-set to a value-based one. Again, the same applies internally to leverage across the different organizational silos where resistance can also be found.
*…ˆÂ?ÂˆÂŤĂŠ -ÂľĂ•ÂˆĂ€iĂŠ ÂˆĂƒĂŠ V…ˆivĂŠ iĂ?iVĂ•ĂŒÂˆĂ›iĂŠ ÂœvvˆViÀÊ ÂœvĂŠ ĂŒÂ…iĂŠ consultancy Consalia Ltd. (www.consalia.com) and can be reached at psquire@consalia.com. ˆVÂ…>iÂ?ĂŠ Ă•Ă€Â?iÞÊ ÂˆĂƒĂŠ `ÂˆĂ€iVĂŒÂœĂ€ĂŠ >ĂŒĂŠ iĂœÂ?iĂŒĂŒÂ‡*>VÂŽ>Ă€`ĂŠ Co. (www.hp.com) and can be reached at michael.hurley@hp.com. H. David Hennessey is professor of marketing at Babson College (www. babson.edu) and can be reached at hennessey@ babson.edu. Additional resources For more information on this subject in SAMA’s library, the editors recommend: Charles iÂ?Â?>ˆVÂ…i]ĂŠÂş *\ĂŠ>Â˜ĂŠÂˆÂ˜ĂƒÂˆ`iĂŠĂ›ÂˆiĂœĂŠĂŒÂœĂŠÂˆÂ˜VĂ€i>ĂƒÂˆÂ˜}ĂŠ VÂ?ˆiÂ˜ĂŒĂŠĂ›>Â?Ă•iĂŠVĂ€i>ĂŒÂˆÂœÂ˜]Ê*>˜‡ Ă•Ă€ÂœÂŤi>Â˜ĂŠ œ˜viĂ€i˜Vi]ĂŠ Feb. 11, 2008, www.strategicaccounts.org; and ivvĂŠ-V…“ˆ`ĂŒ]ĂŠÂş *\ĂŠÂˆÂ˜Â˜ÂœĂ›>ĂŒÂˆÂœÂ˜ĂŠÂˆÂ˜ĂŠ>VĂŒÂˆÂœÂ˜p reinventing the account planning process,â€? *>˜‡ Ă•Ă€ÂœÂŤi>Â˜ĂŠ œ˜viĂ€i˜Vi]ĂŠ iL°Ê££]ÊÓään]ĂŠĂœĂœĂœÂ° strategicaccounts.org.
UĂŠ ĂŠ *ĂŠ LĂ€Âœ>`i˜i`ĂŠ ĂŒÂ…iĂŠ Ă€iÂ?>ĂŒÂˆÂœÂ˜ĂƒÂ…ÂˆÂŤĂƒĂŠ ĂŒÂœĂŠ UĂŠ The idea of using memory spots or the customer’s subsidiaries in key even RFID to physically count people VELOCITYÂŽ UU33UU Q4 2008 C O P Y R I G H T Š 2 0 0 8 S T R AT E G I C A C C O U N T M A N A G E M E N T A S S O C I AT I O N . A L L
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