I’ve developed this unusual habit of getting up early on weekend mornings to review financial statements (or as we refer to them in the US, 10-Ks and 10-Qs). I grab my backpack and sneak out of the bedroom, doing what I can to not wake up my wife who often has a cat on either side of her. One of both of the cats usually take notice and then do what cats are known to do…nothing. I walk past my freshman daughter’s room (she rarely awakens as she is typically doing her art until two or three in the morning) and then past my man-child’s room (he’s only 12 but nearly six feet tall). I make it to the coffee pot to turn it on, checking the time to estimate whether my wife will wake up before it shuts off in a couple of hours or if I should plan to bring her coffee in bed that morning.
I’m not a stock broker, though a number of my friends can never quite remember what I do for a living and assume it has something to do with investing. I am a consultant in the enterprise software industry and among the many roles I play, I am a business value analyst—pretty exciting, eh? In this role, my job is to connect technology solutions to business value. Ten to fifteen years ago, that mostly meant delivering a return on investment (ROI) analysis based on current state data for the prospect and forecasted future state based on the proposed solution—quantifying how it was going to reduce costs, increase labor productivity and/or drive revenue. (more…)
What we haven’t discussed to date is the impact of subscription pricing on value selling. Should you be adjusting your value selling methodology and practices when you sell subscriptions? What changes and what stays the same? And what should I do differently if I want to be successful?
Are you ever in the middle of a sales opportunity with your client and frustration hits an all-time high? No matter which way you slice it or how much you thought you had prepared, you just can’t get the customer to see the value in the solution? We are on opposite sides of a large canyon – how do I get them over to the other side? My goal is always to resolve a customer’s problem. Now, how do I get there?
Recently a CEO I know, Jessica, spoke at an event I attended. She was telling the story about a girls trip she took for her friend’s birthday. This wasn’t a spa trip by any means. Most people would be happy heading to their favorite Mexican spot for tacos and fresh lime margaritas, but not Jessica’s friend. Nope! Her friend wanted to take a hike. But, it wasn’t just any hike–she wanted to hike rim to rim at the Grand Canyon – in one day. For those of you who don’t know about rim to rim, hikers have been known to die on this journey. There are warning signs prior to entering the Grand Canyon that you should not do the hike in one day.
The traditional Chief Information Officer role is under threat. You may think this statement is an exaggeration, but consider this: CIOs used to strategically manage and deploy the IT assets of the company, making data accessible only to specified employees and not to others, according to predetermined, and often inflexible, business rules.
Today, digital opportunities like building multi-channel customer experiences, harnessing social data, and enabling super-fast decisions powered by real-time data have become critical. CIOs are finding it harder to exert as much influence as they had in the past. Other line-of-business heads like sales management, marketing officers, and newly- created roles like digital business and data officers are all taking a hands-on attitude in purchasing tools relevant to them, often helped by developments like cloud, subscription, and bring-your-own-device. The CIO is increasingly finding that she is losing part of her relevance. (more…)
Ipsa scientia potestas est. This phrase came from Sir Francis Bacon in Bacon’s Mediationes Sacrae in 1597. It means “Knowledge itself is power,” and it offers valuable guidance to technology sales professions.
For a B2B sales executive, these words especially apply to reviewing a prospect’s 10-K. In this short discussion, I will demystify the effort it takes to review and interpret a prospect’s financial statements and provide a short overview of the structure of an annual report and the 10-K.
When launching a new ROI engagement on behalf our clients, we’re often asked: what part of the process will be the most challenging?
We at TFP have played the ROI rodeo plenty of times; well north of 600 opportunity-specific ROI analyses over the last five years, if you want to know. And we know where the obstacles are.
Is it figuring out how much the customer can improve?
Is it gaining consensus about the purchase decision?
Heck no. Most often the hardest part of the ROI process is figuring out not where the customer can be tomorrow, but where they are today. As Arnold Schwarzenegger so eloquently expressed in Total Recall: “If I am not me, then who the hell am I?”
It sometimes take just days to figure out “who the hell” the customer is. Sometimes it’s weeks, putting the ROI engagement (and the sale) at risk. Why does this happen, and what you can do about it?
We are all living in a time where we just cannot move fast enough. We are torn between work demands and home. Our mobile devices consistently vie for our attention and we never shut them down out of FOMO (fear of missing out). Thankfully we have friends to keep us grounded.
One of my friends recently invited me to attend a conference. This wasn’t my normal sales or consulting conference. It was all about living a life of presence with Eckart Tolle. I was pleasantly surprised to find the subject matter resonated with me not only on a personal level but, also in my everyday work life and journey.
If you’re a baseball fan like I am, you know how magical those words can be. You also know that we are at a critical point in the season: the stretch run. The boys of summer are getting ready for it, and while much of what happens is predictable, there are bound to be some surprises as well as disappointments. A number of teams still believe they have a chance at winning the World Series and general managers are reviewing their rosters to determine what additions need to take place in order to give their franchises the best opportunity for success.
We’re hearing a lot it being the 30th anniversary of John Hughes’ legendary comedy, Ferris Bueller’s Day Off. For many people it’s an opportunity to revel in the lovable scamp’s exploits in joyful defiance of the stressful world of high school, overbearing parents, and exhausting friendships. For me, this occasion is instead a chance to remind the world that Ferris Bueller is the most inherently and unapologetically evil movie character in the history of film—akin to pre-Jedi Darth Vader and the Wicked Witch of the West.
Stay with me here.
Reading about Ferris after all these years, I’ve been struck by how many of my objections to Ferris stand in direct opposition to the virtues of an ROI analysis that a technology vendor might present to a prospect to prove the value of its solution in the customer’s environment. Let’s take a moment to reference Ferris’s malevolent nature as a means to illustrate some ROI best practices.(more…)
Here in the ROI annex of the TFP global headquarters, we have some precepts that we live by. Ideals we hold dear to our hearts as we build business cases to help our clients win more deals, at a higher value, and with shorter sales cycles than otherwise. You know. Sacred stuff.
Some of those principles:
Building credibility with the customer is everything, so emphasize collaboration with the customer during the ROI process.
Show a range of potential improvement rather than a single number. You’re probably not a fortune teller—so deliver scenarios of outcomes (conservative, likely, optimistic) rather than one value.
Be transparent with your math. That’s one reason why we believe that Excel is a better tool for closing deals than opaque mystery boxes seen in online ROI calculators.
There are a lot of other ones you’ve heard us mention. But here’s one we talk about less often: for the love of Mike, unless you’re Thomas Pynchon, don’t over-complicate things.