Strategies for success business development Esther Carder and - PowerPoint PPT Presentation

Strategies for success – business development Esther Carder and Jamie Sherman Thursday 11 June

CRISIS REWARDS THOSE WHO TAKE SWIFT ACTION DON’T JUST SURVIVE BUT THRIVE! Survival phase Recovery phase Grow and thrive! 2

CHANGE BRINGS OPPORTUNITY OPPORTUNITY PRESENTS ITSELF WHEN THERE ARE SEISMIC CHANGES IN THE WAY THE WORLD CONSUMES But its how you react that determines where you land Accept there will be pain Recognise the changes needed to be made Prioritise your time Have a plan and monitor it 3

FEW SME’S RATE WELL ON BUSINESS DEVELOPMENT Market Insight 10 7 7 Client Insight & Feedback 10 7 7 Value Proposition(s) 10 7 7 Innovation 10 7 6 Brand Strength 10 7 7 Intellectual Property 10 7 5 Income Quality/Security 10 7 6 Shareholder/Owner Reliance 10 7 6 Low-Risk Portfolio 10 7 7 Growth Bridge 10 7 8 Business Development Processes 10 7 6 Conversion Rates 10 7 4 Key Man Commitment 10 7 8 Succession Management 10 7 7 Employee Engagement 10 7 7 Recruitment 10 7 7 Employee Turnover 10 7 8 Accurate Delivery Costing 10 7 7 Resource planning 10 7 7 Risk Management 10 7 6 IT & Data Protection 10 7 3 Finance Team 10 7 5 Sales/Profitability Analysis 10 7 3 Maximum Good Current Cashflow 10 7 7 Clients (BD) 10 7 6.3 Management Accounts 10 7 5 People 10 7 7.2 Business Vision 10 7 7 Delivery (Operations) 10 7 5.8 Strategic Capability 10 7 5 Finance 10 7 5.0 Independent Expertise 10 7 2 Vision & Strategy 10 7 4.7 SMART Objectives & Strategy 10 7 3 Aggregate (#) 5.8 Risks, Challenges & Opportunities 10 7 4 Business Plan 10 7 5 Aggregate (%) 58% Forecasting Accuracy 10 7 6 KPI/Initiative Focus 10 7 4 KPI Buy-In 10 7 7 Performance Review Mechanism 10 7 4 Board Meetings 10 7 5 360 7 208 58% …and key findings from MKS360s are: • Many companies score less than 50% • Biggest ‘gaps’ often relate to the biggest drivers of EV… • Eg Business development • …yet most leaders are unaware and/or not managing the biggest improvement opportunities… • …because they’re not proactively asking themselves the right questions 4

“SURVIVOR TO THRIVER”: BD EFFECTIVENESS IS KEY TO GROWTH Recent MKS research into what top ‘Thriver’ businesses do differently showed that many of the ‘top 10 strategies’ relate to Business Development 5

KEY BD CHALLENGES IN CURRENT CRISIS 1.Ensuring you 2.Increasing your 3.Considerations 4.How to grow generate more conversion rates for price pressure accounts and new business from prospect to and increasing account opportunities paying customer profit-per-sale profitability. 6

BUSINESS DEVELOPMENT FRAMEWORK ‘Origination’ ‘Sales Process ’ Account Target Value Qualification Marketing Conversion Development Market Proposition 4.How to 2.Increasing 3.Considerations grow your conversion 1.Ensuring you generate for price pressure accounts rates from more new business and increasing and account prospect to opportunities profit-per-sale profitability. paying customer 7

ENSURE YOU GET ENOUGH NEW BUSINESS OPPORTUNITES ‘Origination’ Target Value Marketing Market Proposition 1.Ensuring you generate more new business opportunities 8

ENSURE YOU GET ENOUGH NEW BUSINESS OPPORTUNITES ‘Origination’ Target Value Marketing Market Proposition • Where is the demand likely to come from post COVID? • In which sectors will we see growth? • Which sectors will decline? • Wil these trends be temporary or permanent? • Redefine your target market 9

EVALUATING WHERE TO FOCUS Relative Market COMPETITIVE POSITION (Business Strength) Attractiveness Weak Medium Strong • Market size • Market growth MARKET ATTRACTIVENESS • Industry profit margins High • Competitive intensity • Barriers to entry/exit Competitive Position Medium • Relative market share • Relative brand strength • Customer relationships Low • Relative cost position • Market knowledge • Perceived USP 10

EVALUATING WHERE TO FOCUS COMPETITIVE POSITION (Business Strength) Weak Medium Strong Invest To Build • Challenge for leadership High • Build selectively on strengths MARKET ATTRACTIVENESS • Reinforce vulnerable areas Medium Low 11

EVALUATING WHERE TO FOCUS COMPETITIVE POSITION (Business Strength) Weak Medium Strong High MARKET ATTRACTIVENESS Limited Expansion • Look for ways to expand without Med high risk; otherwise, minimise investment and rationalise operations Low 12

BD EFFECTIVENESS – VALUE PROPOSITION ‘Origination’ Target Marketing Proposition Market • Where is the demand likely to come from post • Does it still COVID? speak to our • In which sectors redefined will we see target growth? market? • Which sectors will decline? • Do we need • Wil these trends to reposition be temporary or ourselves? permanent? • Redefine your target market 13

VALUE PROPOSITION – WHAT’S YOUR USP? GETTING YOUR VALUE PROPOSITION RIGHT IN RECESSIONARY TIMES IS VITAL! Sales Wins = Premium Prices £ Value Benefit USPs Credentials Features Loyalty 14

MATCHING TARGET MARKET AND VALUE PROPOSITION Target Value Market Proposition Market

BUSINESS DEVELOPMENT FRAMEWORK ‘Origination’ ‘Sales Process’ Account Target Value Qualification Marketing Conversion Development Market Proposition 4.How to 2.Increasing 3.Considerations grow your conversion 1.Ensuring you generate for price pressure accounts rates from more new business and increasing and account prospect to opportunities profit-per-sale profitability. paying customer 16

QUALIFICATION AND CONVERSION ‘Origination’ ‘Sales Process’ Target Value Marketing Qualification Conversion Market Proposition • How can we maximize our conversion rates and ROI? • Learnings from previous losses? • Qualification criteria / scoring process? • How are criteria prioritized? 17

QUALIFICATION AND CONVERSION ‘Origination’ ‘Sales Process’ Target Value Marketing Qualification Conversion Market Proposition • Do we measure our conversion rates on new business wins? • What about Focus on opportunities/accounts that will deliver existing greatest longer-term growth potential (“Focus clients and 80% of resource on the 20% of opportunities new that will deliver 80% of value ”) assignments? • Efficient conversion practices 18

PRICE PRESSURE AND PROFIT PER SALE – NOW MORE THAN EVER • Current environment means that all businesses are considering costs and cash flow management with intense scrutiny. • Deferral of non-essential costs • Offering discounts – will slowly erode margins (see example) • Be innovative and offer discounts/add scope in different ways • Links to Value Proposition 19

ACCOUNT GROWTH AND PROFITABILITY ‘Origination’ ‘Sales Process’ Target Account Value Marketing Qualification Conversion Market Development Proposition • Active management of existing “A 5% increase in customer retention can increase a accounts company’s profitability by 25 - 95%” – Bain • What are our client’s / customer’s “Attracting new customers will cost your company 5 times key issues • Client / more than keeping an existing customer” customer segmentation via account planning framework • Issue-based selling 20

SWIFT BD ACTION TO BE TAKEN IN SUMMARY • Act fast and make important decisions • Define your target market now & evaluate where to focus (competitive position vs market attractiveness) • Develop value propositions that speak to the market! Should be different for variety of markets/sectors ( 5 key attributes) • Effective sales process where all opportunities are qualified (Sales process/continually adapted to experiences) and conversion rates measured • Seek independent feedback (Voice of customer) • Innovative pricing to convert opportunities and maximise revenues/profit from existing clients/customers (Sales/profitability review) • Account development (Account planning framework & segmentation) 21