Transcript Using ROI Methods to Help Close More Deals, Faster

Using ROI-focused Selling
to Help Close More Deals,
Faster
Presented by - - -
The Deciding Factor
Jack Keen
President
986 South Shore Drive
Basking Ridge, NJ 07920 USA
USA Phone: 908-658-4444 USA Fax: 908-658-5510
Email: [email protected]
Web Site: www.decidingfactor.com
The Deciding Factor
Agenda
Using ROI-focused Selling to Help Close More Deals, Faster
•
•
•
•
•
•
Introduction: who we are
Why ROI-focused selling methods, now?
Elements of a true ROI-focused approach
Example of ROI-focused selling in action
Summary and Conclusions
Discussion
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
The Deciding Factor
Introduction – Who We Are
•
Our background in ROI-focused selling:
• 30 years in IT industry sales, management and consulting
• 11 years full-time involvement in ROI applications, including over
200 ROI projects in 15 countries, worldwide
• Author of over 40 articles on ROI methods
• Mentions in major business media
•
The Deciding Factor (TDF) offers:
• Over 6,000 people trained worldwide in TDF’s methods
• VALUE-on-Demand™ line of uniquely customizable ROI model
software for discovering and communicating true IT Value.
• Value Data Repository of over 400 pre-defined profiles for
computing intangible-to-tangible conversion formulas and related
justification factors for common business issues.
• Firms served include: Oracle, PeopleSoft, and Deloitte & Touche
Consulting, SAP.
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
The Deciding Factor
W hy ROI-focused
Selling Methods,
Now?
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
4
The Deciding Factor
Why Mgt. Doesn’t Want to Say “YES”
Management
 “IT
is Scared
is a High Risk, Hidden Cost Process”*
 31%
of Projects Never Finish**
 58% Have Less Functionality Than Promised**
 Over 50% Cost More Than 180% of Original Estimate**
* Wilcocks and Lester, UNICOM Conference, Uxbridge, UK
** Standish Group International Survey, Large Users
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
The Deciding Factor
Why Management Said NO
(When They Should Have Said YES)
Management
 Key
Found That - - -
Costs Missed
 Savings Overlooked
 Benefits Disputed
 Explanations Confusing
 Key BUSINESS Benefits Overlooked
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
The Deciding Factor
E lements of a True
ROI-focused
Approach
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
7
The Deciding Factor
Focus Our Sales/Marketing Conversations
On True BUSINESS VALUE
(Not Systems and Data Issues)
Business Results
(CEOs, BOD)
Focus of
Conversations
That Win
Objectives/Tactics
(VPs, Directors)
Systems/Data
(Managers)
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
Focus of
Conversations
That Lose
8
The Deciding Factor
Communicate Our Value
to ALL Stakeholders
Increase Revenue, Profits
CEO, Board
Improved
Market Share
Improved
Delivery
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
VPMarketing
Dir.Logistics
Mgr.
Customer
Support
CIO
Increase
Customer
Satisfaction
On Budget,
On Time
Project
CIO
The Deciding Factor
Show the Cause and Effect Linkage
of Your Value from Bottom to Top
More
Strategically
Flexible
Organization
Level 1 (Top Execs.)
Level 2 (VPs)
Reduce Emp.
Costs
Level 3 (Directors)
Better
Schedule
Emp.
OPNS.
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
$ 1.1 M
Reduce F&A
Labor Costs
Level 4 (Managers)
ENABLERS
(functionality)
Close Books
Faster
BUSINESS
VALUE
HR
F&A
IS
Faster Data Entry, Reduce Error Correction
10
The Deciding Factor
Establish an ROI Value Repository to
Accumulate and Communicate
Key ROI-Selling Messages
Procedures
• Step Descriptions
• Process Tips
• Examples
ROI Payoff Formulas
• Tangible Payoff Formulas
• Benefits Driving Forces
Management Issues • Payoff Examples
• Decision Criteria
Guidelines
• Reasons
• Business Visions and Goals
• Interview Suggestions
• Operations Issues
• Examples
• Research Sources
• Definitions
ROI Value Repository
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
The Deciding Factor
Use Value Images the Audience Understands
Total Annual Realized Benefits = $xx.x M
Intangible
Benefits
Tangible Benefits
•
•
•
Annual Realized Cost =
Increased Sales
Reduced Support Costs
Improved Production
Other Cost Reduction
Intangible
TangibleBenefits
Benefits
Improved
customer loyalty
•
Improved
market penetration
•
• Improve Production
Reduced service costs
• Other Cost Reduction
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
IRR = 52% Based on Cash Flow
NPV= $31 Million
(2 Year Payback Period)
$xx.x M
Technology Costs
People Costs
CRM
Program
Program
Roll-Out Costs
The Deciding Factor
Make the Benefits Tracking Method Real
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
The Deciding Factor
E xample of ROIFocused Selling
in Action
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
14
The Deciding Factor
Featuring Excerpts from TDF’s
VALUE-on-Demand™ ROI Model Generator
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
15
The Deciding Factor
Scenario #1:
Ten Minute ROI
• SITUATION
• ABC Corp. CEO, KATE, is very
unhappy with their market
penetration, wants better results,
now.
• ABC Corp. CFO, FRED,
believes ABC’s main problem is
under-investing in training of
their key personnel.
• ACME Consulting Group has set
up a presentation to explain how
their solution can help Fred and
Kate.
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
Scenario #1:
The Deciding Factor
Ten Minute ROI
Check VALUEBOARD to assure Payoff link to exec. concerns
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
The Deciding Factor
Scenario #1:
Ten Minute ROI
Use QUICK-Calc wizard for easy data entry
E,g, QUICK-Calc
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
Scenario #2:
The Deciding Factor
Instant Metrics
Review “General Information” portion of FlashCard Profile
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
Scenario #2:
The Deciding Factor
Instant Metrics
Review “Calculation” portion of FlashCard Profile
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
Scenario #2:
The Deciding Factor
Instant Metrics
Review “Evidence & Support” portion of FlashCard Profile
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
The Deciding Factor
Calculations are Summarized
in Executive Reports
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
22
Scenario #1:
The Deciding Factor
Ten Minute ROI
Request Executive Report package
Financial Results
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
Key Tangible/Intangible Payoffs
The Deciding Factor
Scenario #1:
Ten Minute ROI
OUTCOME:
CFO Fred takes his “personal” Ten Minute ROI example to the
CEO, who is very enthusiastic about the training. Requests
Acme to present their solution to the Executive Committee next
Friday.
Feeling great, Fred heads
off to a much deserved
week-end in the wine
country.
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
The Deciding Factor
Payoffs from Using ROI-focused Selling
Methods and Tools





90% less PERSON-TIME to find ROI info, do analysis
95% less ELASPED TIME to complete ROI reports
90% less OVERALL ROI DEVELOPMENT COST
10 times more COMPELLING communications
More favorable buy decisions, faster
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
The Deciding Factor
Construct Market-Specific and Client-Specific ROI Models with TDF’s
Master Repository of over 400 PayoffCards™. Each PayoffCard
succinctly profiles exactly how to quantify & justify a single benefit area.
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
26
The Deciding Factor
S
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
ummary and
Conclusions
27
The Deciding Factor
Summary
•
ROI selling is no longer optional
•
Effective ROI selling involves - - • Communicating with believable value
messages
• Tailoring ROI messages to each client
• Quantifying your own value vividly
An ROI Value Repository leverages your
firm’s value knowledge
VALUE-on-Demand)™ strengthens and
simplifies ROI-focused selling
•
•
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
The Deciding Factor
For More Information on
ROI-focused Selling Techniques
•
Visit our Web Site www.decidingfactor.com for more ideas and
suggestions.
•
Request our white paper:
“20 Ways to Find Tangible Savings that Others Miss”
•
Review 40 Short Articles on ROI-focused techniques at
www.datamation.com (search using keywords: “Jack AND Keen”).
•
Call us at TDF:
Ron Barbaree (609-443-0477)
Jack Keen (908-658-4444)
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
The Deciding Factor
ROI-focused Selling:
Make Your Superior Value
Visible and Irresistible
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
30
The Deciding Factor
D iscussion
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
31
The Deciding Factor
Copyright 2001, The Deciding Factor, All Rights Reserved
The Deciding Factor
Basking Ridge, New Jersey 07920
www.decidingfactor.com
USA Phone: 908-658-4444
32