Selling at C-Level May 9, 2005. 2 What is C-Level? The management / operating board of a company CEO, COO, CFO, CIO, CMO... General Manager, VP Marketing,

Selling at C-Level

May 9, 2005

2

What is C-Level?

The management / operating board of a company

• CEO, COO, CFO, CIO, CMO...

• General Manager, VP Marketing, VP Operations...

Who plays this role in your customers’ organizations?

• LDC

• Utility

• Industrial...

3

What is different when selling to the C-Level?

• What is the role of C-Level Selling?

• When should you engage at the C-Level?

• How is your role different in a C-Level meeting?

• How does the BP message vary at the C-Level?

• How do you get into conversation with the C-Level of a customer?

• How to conduct a C-Level customer meeting?

• What do customers want from C–Level meetings?

• How to sustain momentum, agreements and achievements made at C-Level meetings?

4

C-Level Keys to Success

Time

People

Scope

ObjectivesObjectivesObjectivesObjectives

Follow UpFollow UpFollow UpFollow Up

Com

mun

icat

ion

Com

mun

icat

ion

Com

mun

icat

ion

Com

mun

icat

ion

Structure

Structure

Structure

Structure

Relationship

5

Outline for Session

The Role of The Role of C-Level C-Level SellingSelling(why)(why)

The Role of The Role of C-Level C-Level SellingSelling(why)(why)

Scope(what)

Scope(what)

Running a successful

C-Levelmeeting

Running a successful

C-Levelmeeting

People(who)

People(who)

Timing(when)

Timing(when)

How to be successful at

C-Level Selling

How to be successful at

C-Level Selling

Relationship(how)

Relationship(how)

6

The Role of C-Level Selling

• What is the Role of C-Level Selling?

7

The Role of C-Level Selling

• Go beyond the deal

• Float / develop the big ideas

• Learn more about the customer’s strategic direction

• Expand the scope - larger geography, across divisions

• Expand the size – bigger % of business, longer partnership

• Change of nature of the relationship - transactional to strategic

• Change the direction of the relationship

Are You Building BP Equity with the Customer?Are You Building BP Equity with the Customer?

8

CC––LevelLevelCC––LevelLevel

Buyer’sBuyer’sManagerManager

Working in the C-Level “Zone”

Step Change (nature, size, scope)

Direction Change (accelerate speed, break through, reverse)

Buyer

9

How to be Successful at C-Level Selling

The Role of C-Level Selling(why)

The Role of C-Level Selling(why)

Scope(what)

Scope(what)

Running a successful

C-Levelmeeting

Running a successful

C-Levelmeeting

People(who)

People(who)

Timing(when)

Timing(when)

How to be How to be successful at successful at

C-Level C-Level Selling Selling

How to be How to be successful at successful at

C-Level C-Level Selling Selling

Relationship(how)

Relationship(how)

10

Case Study - A Canoe Trip in Arkansas

A Canoe Trip down the Spring River

11

Procter & Gamble and Wal-mart - 1987

“It was we sell, you buy, good bye”Lou Pritchard, VP Sales Procter & Gamble. Wall Street Journal January 31, 2005

“Another big supplier” “Another big customer”

12

Two companies who seemed to have little in common

• Leader in many consumer products businesses (e.g., laundry, hair care)

• Consumer, but not customer driven

• “Push” focus

• Little information exchanged with customers

• Geographic, key account sales force

• Fast growing mass merchandiser behind Kmart and Sears

• Demanding vendor without true supplier cooperation

• “Sell-through” focus

• Little information exchanged with suppliers

• IT system drives decisions through Bentonville

13

A Canoe Trip down the Spring River

Sam’s AgendaSam’s Agenda

• Change the nature of the Change the nature of the relationshiprelationship

• Take system costs out of the Take system costs out of the supply chainsupply chain

• Change the P&G focus from Change the P&G focus from selling in to selling outselling in to selling out

• Demonstrate the high return Demonstrate the high return of an investment in Wal-Mart of an investment in Wal-Mart (e.g., people and time) (e.g., people and time)

Sam’s AgendaSam’s Agenda

• Change the nature of the Change the nature of the relationshiprelationship

• Take system costs out of the Take system costs out of the supply chainsupply chain

• Change the P&G focus from Change the P&G focus from selling in to selling outselling in to selling out

• Demonstrate the high return Demonstrate the high return of an investment in Wal-Mart of an investment in Wal-Mart (e.g., people and time) (e.g., people and time)

ChangingTechnology

ChangingTechnology

More Professional

Buying / Selling

More Professional

Buying / Selling

Industry Consolidation

Industry Consolidation

Growing Mutual

Dependence

Growing Mutual

Dependence

14

A Fundamental Change - 2005

• Dominant in many consumer products businesses

• Consumer and customer driven

• Sell-through focus

• Sharing consumer research

• 300 people team serving Wal-mart in Bentonville

• The World’s #1 retailer with blurring the mass, food and convenience channels

• Strategic vendor partnership with key suppliers

• Sell-through focus

• Sharing stores sales data

• IT system drives business for P&G

“It’s a lot like a marriage, sometimes you want to slice each other’s throats and there are other times when it is a love in” - Lou Pritchard, ex-VP Sales Procter & Gamble. Wall Street Journal January 31, 2005

15

Scope – Talking About the Right Things

The Role of C-Level Selling(why)

The Role of C-Level Selling(why)

ScopeScope(what)(what)

ScopeScope(what)(what)

Running a successful

C-Levelmeeting

Running a successful

C-Levelmeeting

People(who)

People(who)

Timing(when)

Timing(when)

How to be successful at

C-Level Selling

How to be successful at

C-Level Selling

Relationship(how)

Relationship(how)

16

The Right Scope

• Are we talking about the right things....

− Strategy

− Partnerships

− Big Ideas

− Scope / Perspective

− Trust

• Do we have clear objectives?

• Are our expectations aligned?

• Do we understand the context?

• Do I have the right information?

• HOW AM I CREATING VALUE?

17

BP Key Messages

#1 Energy Merchant #1 Energy Merchant in the U.S.in the U.S.

#1 Energy Merchant #1 Energy Merchant in the U.S.in the U.S.

InfrastructurInfrastructuree

InfrastructurInfrastructuree

SupplySupplySupplySupply

BP will provide your most reliable supply, and we are involved in every

major geographical region in North America

BP will provide your most reliable supply, and we are involved in every

major geographical region in North America

Need significant investment in infrastructure to connect new supply to market (low cost & efficient). Also,

in 2005, many BP projects will be in the public eye. (GOM, Alaska, LNG)

Need significant investment in infrastructure to connect new supply to market (low cost & efficient). Also,

in 2005, many BP projects will be in the public eye. (GOM, Alaska, LNG)

The market works: a clear regulatory and policy framework allows supply, infrastructure and market to come together in a timely and efficient

manner, which benefits all market participants.

The market works: a clear regulatory and policy framework allows supply, infrastructure and market to come together in a timely and efficient

manner, which benefits all market participants.

Gas prices rising to level that will destroy demand

Demand rising from power

Gas prices rising to level that will destroy demand

Demand rising from power

FundamentalFundamentalss

FundamentalFundamentalss

We are working to be your provider of choice, and we commit to deliver

through:Service, Operations, Risk

Management, Fundamentals & Expertise.

We are working to be your provider of choice, and we commit to deliver

through:Service, Operations, Risk

Management, Fundamentals & Expertise.

We are in the power business with a #5 ranking in volume and participating in

multiple regions in the US.

We are in the power business with a #5 ranking in volume and participating in

multiple regions in the US.

RegulatoryRegulatoryRegulatoryRegulatory

Market & Market & CustomersCustomers

Market & Market & CustomersCustomers

PowerPowerPowerPower

18

D. Regulatory - assuring great

gas markets

D. Regulatory - assuring great

gas markets

E. Market & Customers –

assuring great gas markets

E. Market & Customers –

assuring great gas markets

2. LNG2. LNG

3. Gulf of Mexico3. Gulf of Mexico

5. Mackenzie Delta5. Mackenzie Delta

4. Rockies4. Rockies

1. Alaska1. Alaska

B. Supply – Many great gas

projects in good hands

B. Supply – Many great gas

projects in good hands

2. Gas2. Gas

1. Products & Services1. Products & Services

3. Price & Volatility3. Price & Volatility

2. Service2. Service

a. Physical & Financiala. Physical & Financial

b. Electricityb. Electricity

c. Expertise in fundamental analysisc. Expertise in fundamental analysis

1. Alaska Pipeline Project1. Alaska Pipeline Project

2. LNG Terminals2. LNG Terminals

4. Shipping4. Shipping

3. Rockies – Kern River & Cheyenne Plains

3. Rockies – Kern River & Cheyenne Plains

C. Infrastructure – Many great gas projects in good

hands

C. Infrastructure – Many great gas projects in good

hands

A. FundamentalsA. Fundamentals

1. Demand1. Demand 2. Supply2. Supply 3. Market3. Market

a. Security of Supplya. Security of Supply

b. Customer Satisfactionb. Customer Satisfaction

c. Quality of Supplierc. Quality of Supplier

FederalFederal

StateState

InfrastructureInfrastructure

SupplySupply

MarketMarket

ii. Emissionsii. Emissions

1. General Principles1. General Principles

3. Power3. Power

Key Messages and Support

19

C-LevelC-LevelC-LevelC-Level

Buyer’sBuyer’sManagerManager

Working in the C-Level “Zone”

Step Change (nature, size, scope)Step Change (nature, size, scope)

Direction Change (accelerate speed, break through, reverse)Direction Change (accelerate speed, break through, reverse)

Buyer

20

Setting SMART Objectives for the Meeting

SpecificMeasurableAchievableRealisticTimed

21

Do We Have Alignment for the Meeting?

Outcomes (Things You Want)

Essential Desirable Possible

Outcomes (Things They Want)

Essential Desirable Possible

Areas of Alignment

______________________________________________________________________________________________________

Areas of Mis-Alignment

______________________________________________________________________________________________________

22

Leverage Areas of Alignment for Growth

Areas of Alignment

______________________________________________________________________________________________________

Areas of Mis-Alignment

______________________________________________________________________________________________________

Leverage These for GrowthLeverage These for Growth

Acknowledge and Understand TheseAcknowledge and Understand These

23

What is the Context?

• HistoryHistory

• Current SituationCurrent Situation

• PeoplePeople

• PowerPower

Development Opportunity

Critical Strategic Fit

Ignore Exploit

SizeSizeSmall LargeSmall Large

Customer & BP View

Str

ateg

icS

trat

egic

No

Y

esN

o

Yes

SizeSizeSmall LargeSmall Large

No

Y

esN

o

Yes

Str

ateg

icS

trat

egic

Development Opportunity

Critical Strategic Fit

Ignore Exploit

How important are How important are you to them – you to them – they to you?they to you?

24

Example of Senior Level Visit Brief

Overview of “Customer”Executive Brief For Tim Bullock

J anuary 2005

DRAFT

Overview of “Customer”Executive Brief For Tim Bullock

J anuary 2005

DRAFT2

2

Commerc.

Market Agg.

Industrial

IPP

Muni

IOU

LDC

(6) Cost Reducers

(5) Business

Buyers

(4) High Touch

(3) Best of Breed

(2) Maintainers

(1) Reliability Seekers

Commerc.

Market Agg.

Industrial

IPP

Muni

IOU

LDC

(6) Cost Reducers

(5) Business

Buyers

(4) High Touch

(3) Best of Breed

(2) Maintainers

(1) Reliability Seekers

Customer OverviewObjectives:• Support continued growth at FPL and FPL Energy with balanced f inancing plan• Investigate opportunities that leverage core strength of operational excellence• Finance major new investments with balance of debt and equity• Explore gas infrastructure / LNG• Unlock FPL’s Energy plant’s option valueMajor products and services: electricity generation, transmission, and distribution; energy trading

Florida

Pow

er &

Lig

ht G

roup

Best of Breed (FPLE): Desire to work with best of breed suppliers; relationship is important; open to outsourcing; want to increase efficiency

Reliability Seeker (FPL): Need secure supply; less price sensitive; interested in fresh ideas and education around the market

Account History: FPL Company• FPL has been a BP customer for 10+ years but only in the past 2 years have volumes been significant in excess of 100,000

MMBtu/day, largely from Destin Deepwater supply• Relationship strengthened significantly after the demise of Enron and the growth of our deepwater production• Closed several physically embedded options in 02/03, but changes in FPL risk management philosophy has precluded any further

deals of this sort• FPL has recently changed their No. 6 fuel oil specs enabling BP's Residual Trading group to sell 2 cargoes of No. 6 sourced from

Europe at competitive pricesFPL Energy• Developed and executed a 5-year exclusive Gas Service and Supply Agreement, under which BP would supply 24Bcf p/year to FPLE

Blythe, a new 520Mw power plant in southeastern California. BP s ecured a position in a key growth sector/geography and have accessed commodity margin, fixed price/financial flow and market knowledge.

• ProGas Limited, a Producer Aggregator Pool wholly owned by BP, has been providing 72,000 MMBtu/d of gas under long term arrangement (1991 to 2012) to two cogens in New England that are jointly owned with Tractabel. In the last 18 months, ProGas and FPL/Tractabel has successfully negotiated 3 different termination agreements resulting in payments to the ProGas Pool members of $US 24, 12 and 7 Million respectively. ProGas and FPL/Tractabel are currently negotiating the final termination agreement. BP has replaced ProGas as a short term supplier at Niagara.

Primary Customer Needs:• Cost effective and flexible solutions/pricing (physical/financial)• Reliable gas supply

FPL Group, Inc. is a public utility holding company with annual revenues of $9.6 billion in 2003 and presence in 25 U.S. states. Through its wholly owned subsidiary, Florida Power & Light Company (FPL) and its wholly owned indirect subsidiary FPL Energy, LLC, it is engaged in the generation, transmission, distribution and sale of electric energy. FPL, a rate-regulated public utility, accounts for 90% of the group’s revenues, distributes electricity to 4.1 million customers and has 19,000 MW of generating capacity from interests in nuclear and fossil-fueled power plants. FPL is one of the largest burners of natural gas in the Southeast with peak burns in excess of 1 bcf/d. In addition, FPL is also the largest burner of No. 6 Fuel Oil in the U.S. FPL Energy (FPLE), an unregulated LLC, is a leader in producing electricity from clean and renewable fuels. FPL Energy operates power plants across the country, leads the U.S. in generation of wind energy, and operates the two largest solar fields in the world.

$MM

• Cross Commodity – Gas/Oil/Power• Reliable oil supply

Business Challenges: • Secure stable and reliable supply• Strengthen financial discipline through hedging program, liquidity, and a conservative balance sheet• Maintain credit and improve cash flow• Improve operational excellence

Share Price

DRAFT

2

2

Commerc.

Market Agg.

Industrial

IPP

Muni

IOU

LDC

(6) Cost Reducers

(5) Business

Buyers

(4) High Touch

(3) Best of Breed

(2) Maintainers

(1) Reliability Seekers

Commerc.

Market Agg.

Industrial

IPP

Muni

IOU

LDC

(6) Cost Reducers

(5) Business

Buyers

(4) High Touch

(3) Best of Breed

(2) Maintainers

(1) Reliability Seekers

Customer OverviewObjectives:• Support continued growth at FPL and FPL Energy with balanced f inancing plan• Investigate opportunities that leverage core strength of operational excellence• Finance major new investments with balance of debt and equity• Explore gas infrastructure / LNG• Unlock FPL’s Energy plant’s option valueMajor products and services: electricity generation, transmission, and distribution; energy trading

Florida

Pow

er &

Lig

ht G

roup

Best of Breed (FPLE): Desire to work with best of breed suppliers; relationship is important; open to outsourcing; want to increase efficiency

Reliability Seeker (FPL): Need secure supply; less price sensitive; interested in fresh ideas and education around the market

Account History: FPL Company• FPL has been a BP customer for 10+ years but only in the past 2 years have volumes been significant in excess of 100,000

MMBtu/day, largely from Destin Deepwater supply• Relationship strengthened significantly after the demise of Enron and the growth of our deepwater production• Closed several physically embedded options in 02/03, but changes in FPL risk management philosophy has precluded any further

deals of this sort• FPL has recently changed their No. 6 fuel oil specs enabling BP's Residual Trading group to sell 2 cargoes of No. 6 sourced from

Europe at competitive pricesFPL Energy• Developed and executed a 5-year exclusive Gas Service and Supply Agreement, under which BP would supply 24Bcf p/year to FPLE

Blythe, a new 520Mw power plant in southeastern California. BP s ecured a position in a key growth sector/geography and have accessed commodity margin, fixed price/financial flow and market knowledge.

• ProGas Limited, a Producer Aggregator Pool wholly owned by BP, has been providing 72,000 MMBtu/d of gas under long term arrangement (1991 to 2012) to two cogens in New England that are jointly owned with Tractabel. In the last 18 months, ProGas and FPL/Tractabel has successfully negotiated 3 different termination agreements resulting in payments to the ProGas Pool members of $US 24, 12 and 7 Million respectively. ProGas and FPL/Tractabel are currently negotiating the final termination agreement. BP has replaced ProGas as a short term supplier at Niagara.

Primary Customer Needs:• Cost effective and flexible solutions/pricing (physical/financial)• Reliable gas supply

FPL Group, Inc. is a public utility holding company with annual revenues of $9.6 billion in 2003 and presence in 25 U.S. states. Through its wholly owned subsidiary, Florida Power & Light Company (FPL) and its wholly owned indirect subsidiary FPL Energy, LLC, it is engaged in the generation, transmission, distribution and sale of electric energy. FPL, a rate-regulated public utility, accounts for 90% of the group’s revenues, distributes electricity to 4.1 million customers and has 19,000 MW of generating capacity from interests in nuclear and fossil-fueled power plants. FPL is one of the largest burners of natural gas in the Southeast with peak burns in excess of 1 bcf/d. In addition, FPL is also the largest burner of No. 6 Fuel Oil in the U.S. FPL Energy (FPLE), an unregulated LLC, is a leader in producing electricity from clean and renewable fuels. FPL Energy operates power plants across the country, leads the U.S. in generation of wind energy, and operates the two largest solar fields in the world.

$MM

• Cross Commodity – Gas/Oil/Power• Reliable oil supply

Business Challenges: • Secure stable and reliable supply• Strengthen financial discipline through hedging program, liquidity, and a conservative balance sheet• Maintain credit and improve cash flow• Improve operational excellence

Share Price

DRAFT

4

4

Customer Account Plan DRAFT

4

4

Customer Account Plan DRAFT

5

5

Customer Relationship Plan

Rel

atio

nsh

ip M

ap

NAGP Account Manager Origination Ben Go

NAGP Manager Origination & Marketing David Steely

GP&R Chief Executive Ralph Alexander

President, Florida Power & Light CompanyArmando Olivera

Director of Trading and OperationsTerry Morrison

President, Florida Power & Light Energy J ames L. Robo

Group President & CEOLew Hay

Manager, Natural Gas Marketing & Origination Bill Murphy

BP

Desired Outcomes of Executive Contact:

FPL Company

1. Emphasize to FPL Group how important they are to BP and develop relationships at all levels

2. Assure FPL of positions in natural gas, fuel oil, & LNG and of BP’s desire to build business with FPL around all three

3. Express BP’s interest and ability in supplying LNG

4. Determine level of support FPL will give towards LNG project

FPLE (Blythe)

5. Evaluate options to replicate gas services and management agreements across other projects/geographies

6. Deepen relationship, positioning BP as key services provi der and counterparty

7. Evaluate options around ex. west coast LNG supply, post 2007

Considerations:

• Heavy price competition from other producers such as Exxon, Cora l, Conoco Phillips et al eager to gain market share with creditworthy counterparty could reduce our GM.

• FPL has expressed interest for longer term natural gas deals on the order of 2-5yrs.

• FPL has expressed interest for BP to be more involved in fuel oi l supply. FPL would like to monetize their oil storage facilities.

• As FPL is the largest gas consumer in Florida, they are key to any LNG regasification terminal in Florida. All projects are aggressively courting FPL and FPL is c ertainly maximizing their position.

• FPLE Blythe: FPL experiencing significant difficulty in starting-up/optimizing Blythe facility, leading to internal sensitivity/scrutiny of plant efficiency/cost base, inc luding gas supply options.

• There is potential credit exposure if we want to increase our business with FPLE.

• Texas will have to increase exposure on other pipelines in order to increase market share with FPLE; there is a significant power plant in North Texas but our assets are not aligned to serve their needs.

Manager of Fuel Oil Supply Doug Max

NAGP VP Eastern US Orlando Alvarez

NAGP Regional Business Leader Tim Bullock

Since March 2000, Mr. Hay has been serving as president of FPL Energy. He joined FPL Group in August 1999 as chief financial officer. Before joining FPL Group, Mr. Hay served as CFO and a director of U.S. Foodservice, then a $6 billion broad-line food service distribution company. Prior to joining U.S. Foodservice, Mr. Hay was a partner and sr. vice president in Mercer Management Consulting, where he led the firm's strategy practice, assisting Fortune 100 companies in developing business strategies and execution plans. Upon graduating from engineering school, he joined U.S. Steel where he worked for three years and became maintenance supervisor at that company's most state-of-the-art manufacturing facility. Mr. Hay holds a Bachelor of Science degree in electrical engineering from Lehigh University and a master's degree in business administration from Carnegie Mellon University. He is a member of the board of directors of Utilities, Inc., a Chicago-based water utility holding company. He and his wife and three children live in Jupiter, FL.

Regional Business DirectorNate Hudson

FPL Energy

FPL Company

President, ProGas LimitedLee Lunde

Business ManagerRon Reagan

NAGP Marketing & Origination ManagerKevin Hazell

Director of Trading and OperationsTerry Morrison (Successor TBA)

VP, Asset Restructuring, Director of Origination, StructuredMark Palanchian

NAGP VP Western USJames Taylor

Director of Marketing, ProGas LimitedShonda Day

DRAFT

5

5

Customer Relationship Plan

Rel

atio

nsh

ip M

ap

NAGP Account Manager Origination Ben Go

NAGP Manager Origination & Marketing David Steely

GP&R Chief Executive Ralph Alexander

President, Florida Power & Light CompanyArmando Olivera

Director of Trading and OperationsTerry Morrison

President, Florida Power & Light Energy J ames L. Robo

Group President & CEOLew Hay

Manager, Natural Gas Marketing & Origination Bill Murphy

BP

Desired Outcomes of Executive Contact:

FPL Company

1. Emphasize to FPL Group how important they are to BP and develop relationships at all levels

2. Assure FPL of positions in natural gas, fuel oil, & LNG and of BP’s desire to build business with FPL around all three

3. Express BP’s interest and ability in supplying LNG

4. Determine level of support FPL will give towards LNG project

FPLE (Blythe)

5. Evaluate options to replicate gas services and management agreements across other projects/geographies

6. Deepen relationship, positioning BP as key services provi der and counterparty

7. Evaluate options around ex. west coast LNG supply, post 2007

Considerations:

• Heavy price competition from other producers such as Exxon, Cora l, Conoco Phillips et al eager to gain market share with creditworthy counterparty could reduce our GM.

• FPL has expressed interest for longer term natural gas deals on the order of 2-5yrs.

• FPL has expressed interest for BP to be more involved in fuel oi l supply. FPL would like to monetize their oil storage facilities.

• As FPL is the largest gas consumer in Florida, they are key to any LNG regasification terminal in Florida. All projects are aggressively courting FPL and FPL is c ertainly maximizing their position.

• FPLE Blythe: FPL experiencing significant difficulty in starting-up/optimizing Blythe facility, leading to internal sensitivity/scrutiny of plant efficiency/cost base, inc luding gas supply options.

• There is potential credit exposure if we want to increase our business with FPLE.

• Texas will have to increase exposure on other pipelines in order to increase market share with FPLE; there is a significant power plant in North Texas but our assets are not aligned to serve their needs.

Manager of Fuel Oil Supply Doug Max

NAGP VP Eastern US Orlando Alvarez

NAGP Regional Business Leader Tim Bullock

Since March 2000, Mr. Hay has been serving as president of FPL Energy. He joined FPL Group in August 1999 as chief financial officer. Before joining FPL Group, Mr. Hay served as CFO and a director of U.S. Foodservice, then a $6 billion broad-line food service distribution company. Prior to joining U.S. Foodservice, Mr. Hay was a partner and sr. vice president in Mercer Management Consulting, where he led the firm's strategy practice, assisting Fortune 100 companies in developing business strategies and execution plans. Upon graduating from engineering school, he joined U.S. Steel where he worked for three years and became maintenance supervisor at that company's most state-of-the-art manufacturing facility. Mr. Hay holds a Bachelor of Science degree in electrical engineering from Lehigh University and a master's degree in business administration from Carnegie Mellon University. He is a member of the board of directors of Utilities, Inc., a Chicago-based water utility holding company. He and his wife and three children live in Jupiter, FL.

Regional Business DirectorNate Hudson

FPL Energy

FPL Company

President, ProGas LimitedLee Lunde

Business ManagerRon Reagan

NAGP Marketing & Origination ManagerKevin Hazell

Director of Trading and OperationsTerry Morrison (Successor TBA)

VP, Asset Restructuring, Director of Origination, StructuredMark Palanchian

NAGP VP Western USJames Taylor

Director of Marketing, ProGas LimitedShonda Day

DRAFT

15

Customer Dashboard

15

Customer Dashboard

1 2

3 4

1

5

25

People - Whom Should We See?

The Role of C-Level Selling(why)

The Role of C-Level Selling(why)

Scope(what)

Scope(what)

Running a successful

C-Levelmeeting

Running a successful

C-Levelmeeting

PeoplePeople(who)(who)

PeoplePeople(who)(who)

Timing(when)

Timing(when)

How to be successful at

C-Level Selling

How to be successful at

C-Level Selling

Relationship(how)

Relationship(how)

26

OwnerOwnerOwnerOwner OwnerOwnerOwnerOwner

ImplementerImplementerImplementerImplementer OwnerOwnerOwnerOwner AnalystAnalystAnalystAnalyst AnalystAnalystAnalystAnalyst

ImplementerImplementerImplementerImplementer ImplementerImplementerImplementerImplementer AnalystAnalystAnalystAnalyst AnalystAnalystAnalystAnalyst

SpotTransaction

Contract

Partnership

Buyer VP Supply Treasury Regulatory CFOKey Decisions

Key People

What Is The Sphere Of Influence?

OwnerOwnerOwnerOwner

CEO

27

Understand The Type And Scale Of Each Decision

StrategicStrategic

LargeLargeSmallSmall

TacticalTactical

Scale of Decision

Scale of Decision

Type of Decision

Type of Decision

Transportation Transportation OptimizationOptimization

Spot PurchaseSpot Purchase

Annual Contract Annual Contract RenewalRenewal

Cap or CollarCap or Collar

Long term supply Long term supply contractcontract

Sole Supply Sole Supply AgreementAgreement

Risk Management Risk Management Strategy Strategy

28

Do We Have a Contact Plan?

BuyerBuyer VP SupplyVP Supply Risk MgmtRisk Mgmt CFOCFO CEOCEO

M&OM&O

M&O MgrM&O Mgr

LegalLegal

TradingTrading

Senior MgrSenior Mgr

Customer

BP

29

What is the Customer Expectation?

• The Business Reasons...The Business Reasons...

− I’m the decision makerI’m the decision maker

− I want to change directionI want to change direction

• The Personal Reasons..The Personal Reasons..

− Desire to engage key suppliers Desire to engage key suppliers

− Ego / Prestige - I see the CEOs of my other vendorsEgo / Prestige - I see the CEOs of my other vendors

• Both...Both...

− TrustTrust

− Importance as a CustomerImportance as a Customer

30

Do Expectations Track with the Business Opportunity? Or is it a Balancing Act

BusinessBusinessOpportunityOpportunity

CustomerCustomerExpectationExpectation

BusinessBusinessOpportunityOpportunity

CustomerCustomerExpectationExpectation

31

When do you bring in your boss?

A few questions to test...

• Is this someone the account team usually sees?

• Could someone else have handled this meeting?

• Is this person at the right level vis-a-vis the decision?

• Are both at a commensurate level?

• Are our meetings getting results?

32

Who Else Is in the Meeting?

BP CustomerCustomer

Who Are We Who Are We Bringing?Bringing?

Who Are They Who Are They Bringing?Bringing?

The tradeoff – The tradeoff – continuity & cohesion vsvs. . intimacy & depth

PerspectivePerspective

SpecialistSpecialist Presentation Presentation The AgendaThe AgendaEveryone has a Everyone has a

rolerole

33

Timing - How Often Should We See Them?

The Role of C-Level Selling(why)

The Role of C-Level Selling(why)

Scope(what)

Scope(what)

Running a successful

C-Levelmeeting

Running a successful

C-Levelmeeting

People(who)

People(who)

TimingTiming(when)(when)

TimingTiming(when)(when)

How to be successful at

C-Level Selling

How to be successful at

C-Level Selling

Relationship(how)

Relationship(how)

34

Where Are We In The Deal Cycle?

BP ACTIVITIESBP ACTIVITIES

CUSTOMER ACTIVITIESCUSTOMER ACTIVITIES

Contract ‘05Contract ‘05Contract 04Contract 04

Information Gathering

Information Gathering

Customer Exploration

Customer Exploration

Deal Creation

Deal Creation

Deal Validation

Deal Validation

Deal Negotiation

Deal Negotiation

Deal Closure

Deal Closure

M&OM&O

ManagerManager

ManagerManager

TradingTrading

LegalLegal

CreditCredit

RFP

I. Review I. Review

Regulatory Regulatory

Cut down

Analysis Analysis

Decision

6 months / 1 year / 3 Years / 10 years6 months / 1 year / 3 Years / 10 years

Prospect Engaged Closing DealIdea

35

What Are We Trying to Achieve?

Transaction Contract Relationship (Partnership)

Exchanging Information

Developing Opportunities

Explaining / Supporting

Reinforcing

Closing

Reviewing

Trouble-shooting

36

What Are the Signs of Too Little Contact?

• When the relationship has stalled or is deteriorating and we can’t explain why

• When the customer is changing / growing and we don’t understand the new strategy or the impact on our relationship

• When you don’t know anyone above the buyer level

• When they tell us we are neglecting them

37

Relationship – How do we work at C-Level?

The Role of C-Level Selling(why)

The Role of C-Level Selling(why)

Scope(what)

Scope(what)

Running a successful

C-Levelmeeting

Running a successful

C-Levelmeeting

People(who)

People(who)

Timing(when)

Timing(when)

How to be successful at

C-Level Selling

How to be successful at

C-Level Selling

RelationshipRelationship(how)(how)

RelationshipRelationship(how)(how)

38

What Are You?

Business

Partner/Advisor

Colleague &

Confident

Why Are You Here Again! The Trust Factor

PersonalPersonal

BusinessBusiness

HighHigh

HighHighLowLow

LowLow

39

What is the Basis for the Relationship?

Our Deal Compare Common Industry Concerns

General Business Trends / Practices

Political, Economic, Socials Trends

“Life at the Top”

Family, Friends, Common Hobbies / Interests

Our Deal

Comparing Industry

Notes

Common Industry Concerns

General Business Trends / Practices

Political, Economic, Socials Trends

“Life at the Top”

Family, Friends, Common Hobbies / Interests

40

Running a successful C-Level meeting

The Role of C-Level Selling(why)

The Role of C-Level Selling(why)

Scope(what)

Scope(what)

Running a Running a successful successful

C-LevelC-Levelmeetingmeeting

Running a Running a successful successful

C-LevelC-Levelmeetingmeeting

People(who)

People(who)

Timing(when)

Timing(when)

How to be successful at

C-Level Selling

How to be successful at

C-Level Selling

Relationship(how)

Relationship(how)

41

How Do I Get Things Started

• Agreed objective

• Your agenda

• Know their Agenda

• Ask questions and listen!

• Focus on their needs

• What are their investor measures, KPI’s, overall strategies and major initiatives?

• Common personal interests? Are they comfortable? Are you?

• Save the BP deck – they don’t want power points any more than you do!

42

The basics apply in all meeting

Per s o

na l

Per s o

na l

Understand The Customer’s NeedsUnderstand The Customer’s Needs

Price Price StabilityStability

Manage RiskManage Risk

Low Low PricePrice

Asset Asset OptimizationOptimization

Labor Saving Labor Saving MechanismsMechanisms

Contact Contact FrequencyFrequency

Number of Number of SuppliersSuppliers

Market Market InformationInformation

Supply Supply SecuritySecurity

Supply Supply FlexibilityFlexibility

VolumeVolume CostCost

ProfitProfit

$$$$

Regulatory Regulatory ComplianceCompliance

DistributionDistribution

Customer Customer PenetrationPenetration

Marketing Marketing ProgramsPrograms

New New CustomersCustomers

Primary Business NeedsPrimary Business Needs

Supporting Business NeedsSupporting Business Needs

Business DriversBusiness Drivers

Business

Business

Personal Personal NeedsNeeds

Help me Achieve Help me Achieve My ObjectivesMy Objectives

No SurprisesNo Surprises Make me look Make me look goodgood

Ego MassageEgo Massage InformationInformation

Hierarchy Of Hierarchy Of Strategic Driving Strategic Driving Needs Needs –– Summary Summary

(Example)(Example)

Understand the Customer’s Needs Use a Structured Framework for the

Meeting

Ask Questions – Funneling Your Questions

Know Their (and Your) Interpersonal Style

Summarize The SituationSummarize The Situation

State The Big IdeaState The Big Idea

Explain How It Works

Explain How It Works

Reinforce Key Benefits

Reinforce Key Benefits

CloseClose

INFORMALINFORMAL

FORMALFORMAL

OVERTLYOVERTLYDOMINANTDOMINANT

COVERTLYCOVERTLYDOMINANTDOMINANT

SSEELLLL

TTEELLLL

CONCEPTUALCONCEPTUAL SOCIALSOCIAL

ANALYTICALANALYTICALDIRECTDIRECT

OPEN

OPEN - Probing

OPEN - Probing

CLOSED / LEADING

Listen

How is your business this month? How is your business this month?

Why do you think that is?Why do you think that is?

What do you mean by that?What do you mean by that?

So what you are saying is…..So what you are saying is…..

Listen

--

SpecificSpecific

GeneralGeneral

43

5 Questions You Want Answered in a C-Level Meeting

• What does a business partnership mean to you (the customer)?

• What do we do well for you – and where can we be a better partner?

• Looking at your total business - what are your key strategies for the next 3 – 5 years?

• What new market / regulatory / economic / social trends are starting to impact your business?

• As a business, what are the biggest road blocks you face today?

Depending on the customer, you may need to “share” your thoughts to get them to open up

Depending on the customer, you may need to “share” your thoughts to get them to open up

44

What You Do Differently With the C-Level

• Exercise humility – they are the customer

• Focus on the long term relationship / partnership

• Consider their style (formal or informal – suit or Hawaiian shirt)

• Listen, Repeat Back, Listen Again

45

Turning it Around

• It’s All Too Quiet – don’t talk - ask questions

• Hostile Fire– don’t dismiss - probe to understand the problem, acknowledge understanding, try to solve (or diffuse)

• I Don’t Want to Go There! – You don’t have to solve it – park the issue and if you can agree a follow up (I need to discuss with my team/legal/credit/regulatory is a legitimate reason)

• Stuck in the Muck - Call a time out – “if our guys can work this out, where can we....”

46

Preparing for the meeting

• SMART objectives

• The brief

• What they expect

• What we want

• What they want

• Do I have what they want (and how will I handle)

− What is my strategy for sharing information? Open and generous, Tit for tat (play nice but punish), Keep the cards close?

• The attendees – and their roles

• Practice! A dry run - Why do we practice for internal meetings and not for customers?

47

Follow up from the meeting

• Summarize your agreements in the meeting

• Agree next steps, timing and responsibilities

• Will this require a follow up top-to-top meeting?

• De-brief with the account team – document actions

• Send a follow up note confirming agreements and actions

• Mobilize forces beyond the account team – keep the momentum going

48

Pitfalls

• No agenda

• Nothing to say

• Divergent expectations

• This isn’t what I came here to talk about!

• Did I agree to that?

• “But I can’t make that decision”

• I didn’t deliver the bad news

• (60 minutes of) why our prices are too high!

• Why isn’t your boss here?

49

Summary

• Prepare

• Understand (the expectations)

• Listen & learn something about the customer

• Big picture, not detail

• Follow Up!