UC Berkeley Sales Lecture. Jay Fulcher Berkeley, California March 7, 2005. Agenda. How to build sales leverage The science of selling Tools of the trade Team building Organizational dynamics The customer impression The winning formula. Background.
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UC Berkeley Sales Lecture Jay Fulcher Berkeley, California March 7, 2005
Agenda • How to build sales leverage • The science of selling • Tools of the trade • Team building • Organizational dynamics • The customer impression • The winning formula
Background • Sales, sales executive, global operations, Division president, Pres& COO, BOD member, investor, advisor • Large: SAP; PeopleSoft • Small: Red Pepper; SkillsVillage • BOD Member: Notiva, Saqqara, HotChalk, 100 Fly, SJSU CofB • Current: Agile Software (NASDAQ: AGIL)
Disclaimer… The following views and opinions are based on nearly 20 years experience in enterprise software, where the basic premise is to sell an intangible product, whose value is difficult to prove and where there is a poor track record of delivering results, to an increasingly skeptical customer tired of “being sold”.
Sales leverage • What is it? • How do you get it? • If Marketing’s job is to make the phone ring…what about the sales function? • Starts with clarity on… • Who? What? Why does it matter? • Trusted advisor; consultative expert
The role of ‘Marketing’ • “…make the phone ring” • Lead generation (versus branding) • Air cover • Provocations (use cases, best practices) • 4 P’s (price, promotion, …) • Positioning • Targets
The role of ‘Sales’ • Pain • Politics • Vision match (Rx) • Deal structure (and close) • Predictable revenue • Test value proposition
The science of selling • The complex sale • Blueprint for success • Strategy (frontal, flanking, pre-emptive, etc.) • Politics & pain (stakeholder analysis) • Consultative selling (“students”) • Understand buying cycle vs. selling cycle • Coordinated activities (right issues, people, time) • Test • It’s all in the execution
Key sales questions • What pain does the client have? Will they buy anything? • Are they a qualified prospect? • Can I establish competitive preference? • What is their decision process? What part will each person play? When will they decide? • Who will influence the decision? • What is my plan to win?
Tools of the trade • Sales methodology • Pipeline (tracking, adjustments) • Sales tools • ROI/TCO; Customer successes; Value • Training • Hiring profile • Compensation
Direct versus indirect channels • Direct channel successdemands talent • Tools, training, incentives • Deal qualification • Indirect channels are tricky • Mindshare (regular monitoring) • “Extension” of company • Direct vs. indirect
Team building • Leadership • Profile (“five tool player”) • Power, average, runs, throws, fields • Essential characterisitics • Listens, connects, inspires, decides, leads • Hiring rigor • Inverted hierarchy • Purpose
The customer impression • Who can I trust? Who knows my business? How can I lessen my risk? • A “you-bet-the-company” decision • Expertise and integrity • Aligned goals • Shared rewards • Trusted partner?
Going global • Agree, then build on the foundation • Global is now a business imperative • Careful -- commitments are forever • Develop an ecosystem • Theory of adjacency (geo’s, industries) • Each market is unique • Think global, act local
The winning formula • Cash is king (positive cash flow) • If your gut tells you something is wrong, it is already too late • Don’t justify mediocrity • Build and sustain a culture of performance and accountability • Celebrate your successes
Tales from the Real World:Agile Software • Business transformation • Department to enterprise • Small $$ to Big $$ transactions • Path to profitability (losing $45M two years ago) • Sales re-build (team, comp, focus, tools) • 11 consecutive quarters of record growth • 6 acquisitions (accretive, complimentary) • “Overnight” success (started with Sales) • Customer results are the focus • Big, bad competitors
Five common CEO mistakes • Slow to act • Nobody ever got fired too soon • Hope is not a strategy • Don’t ignore your customers – stay close • Be transparent with Board • Employee intimacy (or lack thereof)