How to Use the Organization Map in Your Customer Relationship Strategy May 10, 2011 Presented and Produced by: The Outsourcing Institute Today’s Speakers Tony Mataya Managing Partner ThinkSolutions, Inc. Ken Evans Managing Partner Critical Path Strategies, Inc. Peggy Besand Principal Critical Path Strategies, Inc. 2 Perceived Sales Outsourcing Risks Known/unknown High up-front costs Operational risks Time-to-market performance Information security and privacy Reputational risk of third parties handling customers Geography/culture/language Unintended consequences Excessive management overhead Loss of contact with customers Loss of day-to-day control 3 Strategy Management Focus Perspective a unique view of the selling environment Planning a rigorous approach to creating an optimal strategy Relationship creation of relationships in preparation for a win-win Action a relentless accountability to accomplishing key milestones 4 Today’s Focus: Ensuring Client Alignment CPS Account Management Execution Model 5 CPS Process and Design Critical thinking enables… Analysis Team-building Back-up Validation with client Brainstorming the possible Major strategy update Summary documents provide for… Team communications Actionable updates Sales calls Management reviews Coaching conversations 6 Customer Relationship Gap Assessment Objective Determine your key initiatives to achieve the desired future state of the customer relationship Process Document the current state and the desired future state of the relationship with your customer Identify key initiatives which, when accomplished, will close the gap and help you achieve your extraordinary goal Value Ensure that your activities are aligned to achieving the desired future state of the customer relationship 7 Solution and Relationship Selling Traditional Selling Selling in Today’s Marketplace One-to-One Team-to-Team 8 Customer Relationship Gap Assessment 1 5/1/XX • Great working relationship with Bill Walker, VP Logistics COE • Division executives aware of manufacturing capabilities • Division executives not convinced of the integrated value we deliver • Some key users and influencers are not our supporters One year from now 2 5/1/YY • Fabulous track record in mobile has led us to executive-level relationships in all three operating divisions • Fully integrated project underway in one division • Consulting relationship extended due 3 • Get Bill Walker to sponsor an executive briefing on logistics project with the division execs • Schedule discussions with external customer references for division executives to strong performance on budget, milestones, and KPIs • Conduct campaign for key users and • Key users become our references • Schedule our team for exploratory site managers visits • Host an executive planning session • Focus effort on mobile opportunity while generating enthusiasm for possible sales to other divisions 9 Customer Relationship Gap Assessment DEBRIEF Does the current state describe your relationship with the customer as they would describe the relationship? Have you considered all perspectives of the business, e.g., technology, finance, sales, marketing? Does the future state articulate the level of relationship required to achieve your extraordinary goal? Do the key initiatives represent actions your team will take in order to close the gap? Will they help to establish a “trusted” relationship with key customer executives? 10 Organization Map How can your understanding of the customer’s organization help you win? Have you considered how to best utilize your “inside the customer” selling resources? 11 Organization Map Objective Gain insight into the decision-making process Process Create a “map” of the decision-making interrelationships. Utilize your entire network of selling resources to deliver powerful messages to your customer executives Value Improve your ability to identify customer roles, gain needed support and overcome resistance in the customer organization 12 How the Decision Process Really Works Traditional Hierarchies Traditional Hierarchies Organizational Networks Organizational Networks 13 Source: Cross, Rob, 2006 “How The Office Really Works.” Fortune Magazine, June 12, p. 118. Determine Buyer Roles High Key User/Influencer Decision-Maker Involvement Key User/Influencer C Champion G Gatekeeper A Analyst Approver Low Low High Authority/Responsibility 14 Organization Map Customer 4 PR Electronics INTERNAL CUSTOMER INFLUENCERS APPROVERS Jim Long VP R&D COE Jonathon Brown HR John Baker COO Susan Manske CFO = ─ = ─ 3 1 Sam Malek IT EXTERNAL CUSTOMER INFLUENCERS Nick Tyson Sales Manager GCM Jerry Gold VP Procurement Best Buy Tim Mitchell Account Mgr GCM Andrew Franklin Industry Consultant Joan Jacobs Engagement Mgr-GCM Chris Vasquez Dir, Human Resources-GCM DECISION-MAKERS Sara Smalling Marketing Charles Cantrell Sr VP, HH Appliance Thomas Stone Sr VP, Mobile Comm Peter Griffin Sr VP, Digital Displays = ? = = KEY USERS Bill Walker VP Logistics COE C + Kathryn Ventura Product Mgr = Kevin Watkins Director Manufacturing G ─ Michael Lyons Dir Supply Chain Mgmt A + 2 15 Key Customer Executive Relationship Plan Customer 4 PR Electronics INTERNAL CUSTOMER INFLUENCERS APPROVERS Jim Long VP R&D COE Jonathon Brown HR John Baker COO Susan Manske CFO = ─ = ─ 3 1 Sam Malek IT EXTERNAL CUSTOMER INFLUENCERS Nick Tyson Sales Manager GCM Jerry Gold VP Procurement Best Buy Tim Mitchell Account Mgr GCM Andrew Franklin Industry Consultant Joan Jacobs Engagement Mgr-GCM Chris Vasquez Dir, Human Resources-GCM DECISION-MAKERS Sara Smalling Marketing Charles Cantrell Sr VP, HH Appliance Thomas Stone Sr VP, Mobile Comm Peter Griffin Sr VP, Digital Displays = ? = = KEY USERS Bill Walker VP Logistics COE C + Kathryn Ventura Product Mgr = Kevin Watkins Director Manufacturing G ─ Michael Lyons Dir Supply Chain Mgmt A + 2 16 Key Customer Executive Relationship Plan 4 1 John Baker, Chief Operating Officer 2 3 = Nick Tyson, Sales Manager Tim Mitchell, Account Mgr We are a strategic component of our clients’ value chain, & invest with our clients for mutual success. ─ Nick Tyson, Sales Manager Tim Mitchell, Account Mgr Susan Manske, Chief Financial Officer Our global capabilities not only help reduce operating costs & preserve capital, they also position our clients for scalable growth. = Thomas Stone, Senior VP, Mobile Communications Tim Mitchell, Account Mgr Nick Tyson, Sales Manager Our low-cost manufacturing services can help you improve the profitability of your division. = Tim Mitchell, Account Mgr Joan Jacobs, Engmt Mgr Kathryn Ventura, Product Manager Our industry experience & global assets will support a rapid roll-out & provide sustainable customer support. ─ Nick Tyson, Sales Manager Joan Jacobs, Engmt Mgr Kevin Watkins, Director Manufacturing Our state-of-the-art manufacturing systems can help you extend your existing capabilities. Bill Walker, VP Logistics Center of Excellence + Joan Jacobs, Engmt Mgr Tim Mitchell, Account Mgr Our logistics talent & experience allow our clients to leverage industry-leading best practices. Jonathon Brown, Director, Human Resources ─ Chris Vasquez, Dir, HR Tim Mitchell, Account Mgr Our company is rated as one of the top places to have a career. 17 Organization Map / Key Customer Executive Relationship Plan DEBRIEF Does the Organization Map outline the most important approvers, decision-makers, key users, and internal and external influencers relative to this opportunity? What is your line of influence to each of these individuals? Who will be responsible for the relationship? Does the plan leverage resources outside your company to win? Are there creative ways to use “inside the customer” resources to deliver your message? Do you have a plan to validate the Organization Map with the customer? What is the appropriate message and metric for each key customer? 18 CPS Practice Sales Consulting Sales Team Development Chief Sales Officer Agenda Strategic Account Management Sales Process Optimization Territory Management Account Management Execution Account Planning Value Message Alignment Sales Call Clinic Executive Planning Sessions Professional Sales Training Relationship Management Pipeline Management Leadership Coaching Leadership Development Supported by formal or on-demand coaching and metrics/measurements CPS provides customization/personalization of all our offerings to ensure seamless integration into the client organization Delivery via on-site facilitation, train the trainer, e-learning, coaching (in-person or telephonic) 19 CPS Resources www.criticalpathstrategies.com 20 ThinkSolutions Services Overview • Strategy Development • Strategic Consulting • Sourcing Consulting • Executive Education • Training • Sourcing Process • Consulting • Supplier • Recommendation • RFI/RFP Dev. • • Project Mgmt. Client Business Strategy Sourcing Strategy Supplier Go To Market Strategy Identify Opportunity • Market Analysis • Strategic Consulting • Communicate • Opportunities • Opportunity • • Evaluation • Sales Support • Training Sourcing • Process Mgmt. Supplier • Evaluation Training • Negotiations • Strategy • Lead/Support • Negotiations Contract Dev. • Support Transition Planning • Dispute • Sourcing Process Project Mgmt. Resolution Consulting Governance • Governance • Sourcing Strategy Implementation • Change Mgmt. Dispute Resolution Data Collection, Selection, Negotiation Identify RFI/RFP or Suppliers Other Initiate Pursuit Team Respond, Negotiation Develop Solution • Sourcing Process • Consulting RFI/RFP Response Dev. • • Training Sourcing Process • Consulting Sales Support Training • Transition/ Transform Transition/ Transform Governance Delivery, Account Growth Renew • Sales Support Negotiations • Transition Planning • Dispute • Dispute Resolution Resolution Strategy • Account Mgmt. Lead/Support • Change Mgmt. Negotiations Contract Dev. Support ThinkSolutions adds value throughout the sourcing cycle 21 Renegotiate Copyright 2011 ThinkSolutions, Inc. How Can We Help You? Feel free to direct any questions or inquiries to: Tony Mataya Managing Partner ThinkSolutions, Inc. 713.775.2461 (U.S) +52.55.4467.1376 (Mexico) [email protected] www.thinksolutions.net Page 22 Ken Evans Managing Partner Critical Path Strategies, Inc. 830.249.1977 [email protected] www.criticalpathstrategies.com Peggy Besand Principal Critical Path Strategies, Inc. 512.382.7792 [email protected] www.criticalpathstrategies.com Copyright 2011 ThinkSolutions, Inc. The Outsourcing Institute Gateway to the Outsourcing Marketplace Located at outsourcing.com Trends, Best Practices, Case Studies Training Through OI University Outsourcing RFP Builder Software and Related Tools Outsourcing Jobs and Recruiting Services Through CMS Inc. Local, Intimate and Interactive Outsourcing Road Shows Coming to a City Near You Sponsorship and Business Development Opportunities For more information contact us at: [email protected] or 516-279-6850 ext. 712 Outsourcing Institute Local 'Road Show' Events Los Angeles / Southern California & New York "Executive Insights: Enhancing Results Through Innovation in Outsourcing" The road show events will link buyers, providers and advisors of outsourcing services in collaborative, learning environments. Attendees will discover how innovation creates incentives that encourage providers to deliver value beyond price. They'll hear case studies from seasoned players navigating a maturing industry. They'll see how a geographically diversified portfolio of offshore, near-shore and domestic providers can help manage risk and aid in continuity planning. Roadshow Locations: Los Angeles/Southern California – May 20, 2011 New York – June 9, 2011 To Register: www.outsourcing.com/roadshow To learn more about the road shows, visit outsourcing.com/roadshow For more information contact us at: [email protected] or 516-279-6850 ext. 712 Thank you for joining “How to Use the Organization Map in Your Customer Relationship Strategy.” Tony Mataya Managing Partner ThinkSolutions, Inc. Ken Evans Managing Partner Critical Path Strategies, Inc. Peggy Besand Principal Critical Path Strategies, Inc. This webinar was hosted by Critical Path Strategies, Inc. in conjunction with The Outsourcing Institute at outsourcing.com. 25