Growing vs. Aging Lessons in business transformation from the Adizes Methodology * Alejandro Fernández Cervantes Partner Sales Executive Microsoft Costa Rica https :// cr.linkedin.com/in/alefer * Based on the presentation from Chris Jones, MBA 5320, Corporate Lifecyles, slideshare :
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Growing vs Aging: Lessons in Business Transformation
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Growing vs. AgingLessons in business transformation from the Adizes Methodology *
Alejandro Fernández CervantesPartner Sales ExecutiveMicrosoft Costa Ricahttps://cr.linkedin.com/in/alefer
* Based on the presentation from Chris Jones, MBA 5320, Corporate Lifecyles, slideshare:
Focus shifts from ideas and possibilities to results expressed in terms of sales.
Time to talk and think is over and the time to produce and act is now
Cash is necessary to survive so generating it fast is number 1 focus
Founder must stay committed for company to survive
Growing stage – Go-Go (PaEi)
The idea is working, sales are up, cash flow problems have been overcome
Company can experience uncontrollable growth, lack of systems, lack of budgets, lack of policies, lack of structure, founder(s) can become arrogant and continue to do what got them there, will and persistence
Methods no longer work and crisis occurs leading to the next phase of the cycle
Mature cloud partners focus on understanding the customer’s needs and building a comprehensive offer to meet them. On average, they double the number of attached services per sale of cloud solutions such as Office 365.
Define and structure your offer
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Upsell a workloadAim to attach seven services (average) to each Office 365 sale within six months of sale.
Typical attached services include those from the early stage, plus: End-user training Managed services Change-management consulting External IT services/CIO services Customization projects
Use strategic partnerships to extend/handle components of the cloud-productivity offer.
Sell a solutionAim to attach nine services within six months of sale, and use future releases and software renewals as opportunities.
Maintain close relationship with your customers, and use feature releases and software renewals as opportunities to upsell.
Typical attached services include those from earlier stages, plus: Business-process re-engineering IP solutions Consulting solutions
Use strategic partnerships so you can scale upon demand.
Types of attached products include: Enterprise social networking Customer relationship management (CRM)
Sell a productAim to attach five services within 30 days of sale.
Types of services to attach include: Pre-deployment services Deployment and migration services On-going management and administration Help-desk support
INACTIVE EARLY STAGE MID STAGE ADVANCED STAGE
Advanced-stage partners have a strong online presence and they generate leads using inbound marketing.
Market your offer
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Generate more leads for cloud solutions Allocate 25 percent of marketing budget to the cloud
and aim to generate 25 percent of cloud leads with digital marketing
Establish partnerships with other cloud partners to generate leads
Monitor marketing KPIs: Number of leads Marketing-conversion rate Unique website visitors
Participate in thought leadership, continuing earlier activities
Engage in five marketing activities (average), including:
Email marketing Peer-to-peer platforms Search-engine marketing Community and other in-person events
Consider hiring market personnel for the cloud
Strengthen you thought leadership Allocate 50 percent of your marketing budget to the
cloud and aim to generate 44 percent of cloud leads with digital marketing
Partner with PR and marketing agencies to generate leads
Monitor marketing KPIs, including: Number of leads and email-open rates Marketing-conversion rate Digital-marketing spending Unique website visitors
Participate in thought leadership: Publish blogs and white papers Speak publicly about cloud solutions Collaborate with key opinion leaders
Engage in six marketing activities (average) Types of marketing activities include:
Online advertising and peer-to-peer platforms Social-media and search-engine marketing Community and other in-person events
Hire dedicated cloud-marketing staff
Generate awareness of your cloud offers Allocate 13 percent of your marketing budget to the
cloud Experiment with inbound digital marketing Collaborate with Microsoft to generate Office 365
leads Monitor marketing KPIs:
Number of leads Marketing-conversion rate Search-engine traffic
Aim to engage in four marketing activities, such as: Community and other in-person events Email and search-engine marketing Blog
Start building thought leadership by publishing industry-related and solution-related content
Build your online presence with a few customer references
INACTIVE EARLY STAGE MID STAGE ADVANCED STAGE
Advanced-stage partners focus on building long-term relationships with their customers. They perceive Office 365 sale as a foot in the door that enables them to attach products and services. Each upgrade and renewal date is a sale opportunity for the account team.
Sell your offer
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Create a separate cloud team Implement a separate cloud-compensation
model Work to become a trusted advisor by
learning your customers’ business needs Use compensation-based KPIs, and include
renewal rate in the compensation structure Monitor sales-related KPIs, including:
Revenue per deal Deal-conversion rates Number of seats per deal Consider adding number of managed
services sold per salesperson Focus on selling to the Business Decision
Maker instead of to the CIO/CTO Add an account manager for the cloud Monitor account-management-related KPIs
including customer-renewal rates Use direct, unmanaged sales
Maximize your cloud sales Aim to have more than 50 percent of your
sales team dedicated to cloud sales Have separate quotas for cloud solutions Include usage KPIs in the compensation
calculation, such as percent of assigned seats or percent of services utilized
Monitor sales-related KPIs, including: Revenue and number of seats per
deal Deal-conversion rates Consider adding number of managed
services sold Add an account management team Monitor account-management-related KPIs,
including: Customer-renewal rates Consider adding number of assigned
seats Direct, unmanaged sales provide prominent
source of new revenue
Start building a cloud-sales plan Provide incentives to drive sale of cloud
solutions Monitor sales-related and account-
management-related KPIs: Revenue per deal Deal-conversion rates Number of seats per deal Customer-renewal rates
INACTIVE EARLY STAGE MID STAGE ADVANCED STAGE
Advanced-stage partners have embraced the cloud. They have hired new employees who are passionate about the cloud and have provided cloud training to their current staff.
Embrace the cloud
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Develop a long-term cloud vision
Engage in training activities, including: Actively training staff on Office 365
and cloud solutions Installing Office 365 for internal use
Gather feedback from staff to gauge training effectiveness
Hire new staff to support the cloud
Invest in training and staff Expand training activities to include:
Watching online, on-demand training videos
Attending in-person training events Reading online materials about new
products Reading customer case studies
Aim to raise training effectiveness by 50 percent
Hire new staff to support the cloud
Maximize your potential Expand your training activities to include:
Reading white papers Attending live webinars
Aim to raise training effectiveness by an additional 30 percent