Tab le o f C on te n ts
T itle P age
C opyrig ht P age
D ed ic a tio n
F ore w ord
I n tr o ductio n
C hap te r 1 – T H E E V O LV IN G J O URN EY O F S O LU TIO N S E LLIN G
C hap te r 2 – T H E C H ALLE N GER ( P A RT 1 ): A N EW M ODEL F O R H IG H P E R FO RM ANCE
C hap te r 3 – T H E C H ALLE N GER ( P A RT 2 ): E X PO RTIN G T H E M ODEL T O T H E C O RE
C hap te r 4 – T EA CH IN G F O R D IF FE R EN TIA TIO N ( P A RT 1 ): W HY I N SIG HT M ATTER S
C hap te r 5 – T EA CH IN G F O R D IF FE R EN TIA TIO N (P A RT 2 ): H OW T O B UIL D IN SIG HT-L E D
C O NVER SA TIO NS
C hap te r 6 – T A IL O RIN G F O R R ESO NANCE
C hap te r 7 – T A KIN G C O NTR O L O F T H E S A LE
C hap te r 8 – T H E M ANAGER A ND T H E C H ALLE N GER S E LLIN G M ODEL
C hap te r 9 – I M PLE M EN TA TIO N L E SSO NS F R O M T H E E A RLY A DOPT ER S
A F TE RW ORD
A ckn ow le d gem en ts
A PPE N DIX A – E xcerp t f r o m th e C halle nger C oachin g G uid e
A PPE N DIX B – S ellin g S ty le S elf- D ia gno sti c
A PPE N DIX C – C halle nger H ir in g G uid e: K ey Q uesti o ns to A sk i n th e I n te rv ie w
I N D EX PO RTFO LIO / P EN GU IN
Publis h ed b y th e P enguin G ro up
Penguin G ro up ( U SA ) I n c., 3 75 H udso n S tr e et,
New Y ork , N ew Y ork 1 0014, U .S .A .
Penguin G ro up ( C anada), 9 0 E glin to n A venue E ast, S uit e 7 00,
Toro nto , O nta rio , C anada M 4P 2 Y 3
(a d iv is io n o f P ears o n P enguin C anada I n c.)
Penguin B ooks L td , 8 0 S tr a nd, L ondon W C2R 0 R L, E ngla nd
Penguin I re la nd, 2 5 S t. S te phen’s G re en, D ublin 2 , I re la nd
(a d iv is io n o f P enguin B ooks L td )
Penguin B ooks A ustr a lia L td , 2 50 C am berw ell R oad, C am berw ell,
Vic to ria 3 124, A ustr a lia
(a d iv is io n o f P ears o n A ustr a lia G ro up P ty L td )
Penguin B ooks I n dia P vt L td , 1 1 C om munit y C entr e , P anchsh eel P ark ,
New D elh i– 11 0 0 17, I n dia
Penguin G ro up ( N Z), 6 7 A pollo D riv e, R ose dale , A uckla nd 0 632,
New Z eala nd ( a d iv is io n o f P ears o n N ew Z eala nd L td )
Penguin B ooks ( S outh A fric a) ( P ty ) L td , 2 4 S tu rd ee A venue,
Rose bank, J o hannesb urg 2 196, S outh A fric a
Penguin B ooks L td , R egis te re d O ffic es:
80 S tr a nd, L ondon W C2R 0 R L, E ngla nd
Fir s t p ublis h ed in 2 011 b y P ortf o lio / P enguin ,
a m em ber o f P enguin G ro up ( U SA ) I n c.
Copyrig ht © T he C orp ora te E xecutiv e B oard C om pany, 2 011 A ll r ig hts r e se rv ed
Challe nger™ , C halle nger R ep™ , a nd C halle nger D evelo pm ent P ro gra m ™ a re tr a dem ark s a nd s e rv ic e m ark s o f T he C orp ora te
Executiv e B oard C om pany.
S um mary d esc rip tio n o f
Situ atio nal S ale s N eg otia tio n
®
tr a in in g a nd m eth odolo gy u se d b y p erm is sio n o f B ayG ro up I n te rn atio nal, I n c.
S SN N egotia tio n P la nner™ a nd © 2 009 B ayG ro up I n te rn atio nal, I n c.
Situ atio nal S ale s N eg otia tio n
® a nd S SN ™ a re tr a dem ark s a nd
se rv ic e m ark s o f B ayG ro up I n te rn atio nal, I n c.
Slid es f ro m “ T he P ow er o f P la nnin g th e U npla nned” p re se nta tio n u se d b y p erm is sio n o f W . W . G ra in ger, I n c.
LIB RA RY O F C O NGRESS C ATA LO GIN G I N P U BLIC ATIO N D ATA
Dix on, M atth ew , 1 972–
The c halle nger s a le : ta kin g c ontr o l o f th e c usto m er c onvers a tio n / M atth ew D ix on a nd B re nt A dam so n.
p. c m .
In clu des in dex.
IS B N : 9 78-1 -1 01-5 4589-8
1. S ale s m anagem ent. 2 . S ellin g. 3 . C usto m er r e la tio ns. I . A dam so n, B re nt. I I. T it le .
HF5438.4 .D 59 2 011
658.8 5— dc23 2 011 026907
W it h out lim it in g th e r ig hts u nder c opyrig ht r e se rv ed a bove, n o p art o f th is p ublic atio n m ay b e r e pro duced, s to re d in o r in tr o duced in to a
r e tr ie val s y ste m , o r tr a nsm it te d, in a ny f o rm o r b y a ny m eans ( e le ctr o nic , m echanic al, p hoto copyin g, r e cord in g o r o th erw is e ), w it h out th e
prio r w rit te n p erm is sio n o f b oth th e c opyrig ht o w ner a nd th e a bove p ublis h er o f th is b ook.
The s c annin g, u plo adin g, a nd d is tr ib utio n o f th is b ook v ia th e I n te rn et o r v ia a ny o th er m eans w it h out th e p erm is sio n o f th e p ublis h er is
ille gal a nd p unis h able b y la w . P le ase p urc hase o nly a uth oriz e d e le ctr o nic e dit io ns a nd d o n ot p artic ip ate in o r e ncoura ge e le ctr o nic p ir a cy
of c opyrig hta ble m ate ria ls . Y our s u pport o f th e a uth or’s r ig hts is a ppre cia te d.
http :/ /u s.p enguin gro up.c om To th e m em bers o f th e C orp ora te E xecuti v e B oard a ro und th e w orld , w ho c halle nge u s e v ery d ay to
deliv er i n sig hts w orth y o f th eir ti m e a nd a tte nti o n FO REW ORD
T H E H IS T O RY O F
s a le s h as b een o ne o f s te ad y p ro gre ss in te rru p te d b y a fe w r e al b re akth ro ughs
t h at h av e c hanged th e w ho le d ir e cti o n o f th e p ro fe ssio n. T hese b re akth ro ughs, m ark ed b y r a d ic al n ew
t h in kin g a nd d ra m ati c i m pro vem ents i n s a le s r e su lts , h av e b een r a re . I c an o nly th in k o f th re e o f th em
i n th e la st c entu ry . T he fir s t s ta rte d a b out a h und re d y ears a go , w hen in su ra nce c o m panie s fo und th at
t h ey co uld doub le th eir sa le s by a sim ple change in se llin g str a te gy. B efo re th is fir s t gre at
b re akth ro ugh, in su ra nce p olic ie s— in c o m mon w ith m any o th er p ro ducts s u ch a s fu rn itu re , h o use ho ld
g o ods, a nd c ap ita l e q uip m ent— were s o ld b y s a le sp eo ple w ho s ig ned u p c usto m ers a nd th en e v ery
w eek v is ite d e ach o f th em to c o lle ct p re m iu m s o r i n sta llm ent p aym ents . A fte r s ig nin g u p a h und re d o r
s o p eo ple , th e s a le sp ers o n w as to o b usy c o lle cti n g w eekly p re m iu m s to d o a ny m ore s e llin g o f n ew
b usin ess. T hen s o m e a no nym ous g eniu s h it o n a n id ea th at g re w in to w hat w e n o w c all th e h unte r-
f a rm er m odel. S up pose , i n ste ad o f o ne p ers o n b oth s e llin g th e p olic y a nd c o lle cti n g th e p re m iu m s, th e
t w o r o le s w ere s p lit. T here w ould b e
pro ducers,
w ho o nly s o ld , b acked u p b y l e ss e xp erie nced — and
t h ere fo re c heap er—
co lle cto rs,
w ho c am e b ehin d to lo ok a fte r e xis ti n g c usto m ers a nd c o lle ct th e
w eekly pre m iu m s. T he id ea w as a sp ecta cula r su ccess and it changed th e in su ra nce in d ustr y
o vern ig ht. T he c o ncep t q uic kly sp re ad to o th er in d ustr ie s, a nd fo r th e fir s t ti m e se llin g b ecam e a
“ p ure ” r o le , w ith o ut th e b urd en o f c o lle cti o n. TH E S E C O ND B R EA K TH RO UG H
W e d on’t k no w e xactl y w hen th e p ro ducer/c o lle cto r id ea w as fir s t in tr o duced , b ut w e c an b e v ery
s p ecific a b out th e d ate o f th e s e co nd g re at b re akth ro ugh. I t h ap pened i n J u ly 1 925, w hen E . K . S tr o ng
p ub lis h ed
The P sy ch olo gy o f S ellin g
. T his se m in al w ork in tr o duced th e id ea o f sa le s te chniq ues,
s u ch a s fe atu re s a nd b enefits , o bje cti o n h and lin g, c lo sin g, a nd , p erh ap s m ost im porta nt, o pen a nd
c lo se d q uesti o nin g. It s h o w ed th at th ere w ere th in gs p eo ple c o uld le arn th at w ould h elp th em s e ll
m ore e ffe cti v ely , a nd i t g av e r is e to th e s a le s tr a in in g i n d ustr y .
Lookin g b ack fr o m th e s o phis ti c ate d p ers p ecti v e o f to day, m any o f th e th in gs S tr o ng w ro te a b out
s o und h eav y-h and ed a nd s im plis ti c . N ev erth ele ss, h e— and th o se w ho f o llo w ed h im — changed s e llin g
f o re v er. P erh ap s th e m ost im porta nt a sp ect o f h is c o ntr ib uti o n w as th e id ea th at s e llin g w asn ’t a n
i n nate a b ility . It w as a s e t o f id enti fia b le s k ills th at c o uld b e le arn ed . A nd in 1 925, th at w as r a d ic al
i n d eed . It o pened s e llin g to a m uch w id er ra nge o f p eo ple a nd , fr o m a necd ota l re p orts o f th e ti m e,
b ro ught a b out d ra m ati c i n cre ase s i n s a le s e ffe cti v eness. TH E T H IR D B R EA K TH RO UG H
T he th ir d g re at b re akth ro ugh c am e in th e 1 970s, w hen r e se arc hers b ecam e in te re ste d in th e id ea th at
t h e te chniq ues a nd s k ills th at w ork ed i n s m all s a le s m ig ht b e v ery d iffe re nt f r o m th o se th at w ork ed i n
l a rg er a nd m ore c o m ple x o nes. I h ad th e g o od fo rtu ne to b e a n in te gra l p art o f th is r e v olu ti o n. In th e
’ 7 0s I d ir e cte d a h uge re se arc h p ro je ct, tr a ckin g 1 0,0 00 s a le sp eo ple in tw enty -th re e c o untr ie s. W e
f o llo w ed s a le sp eo ple in to m ore th an 3 5,0 00 s a le s c alls a nd a naly ze d w hat m ad e s o m e o f th em m ore
s u ccessfu l th an o th ers in c o m ple x s a le s. F ro m th is tw elv e-y ear p ro je ct w e p ub lis h ed a n um ber o f
b ooks, s ta rti n g w ith
SP IN S ellin g
. T his m ark ed th e b egin nin g o f w hat w e n o w c all th e c o nsu lta ti v e
s e llin g e ra . It w as a b re akth ro ugh b ecause it in tr o duced m uch m ore s o phis ti c ate d m odels o f h o w to
s e ll c o m ple x p ro ducts a nd s e rv ic es a nd , l ik e th e e arlie r b re akth ro ughs, b ro ught a b out s ig nific ant g ain s
i n s a le s p ro ducti v ity .
The la st th ir ty y ears h av e b een m ark ed b y a lo t o f s m all im pro vem ents in s e llin g, b ut w e h av en’t
s e en m any g am e-c hangin g d ev elo pm ents th at c o uld c la im to b e b re akth ro ughs. T ru e, th ere ’v e b een
s a le s a uto m ati o n, sa le s p ro cess, a nd c usto m er re la ti o nsh ip m anagem ent. T echno lo gy h as p la yed a
b ig ger a nd b ig ger ro le in s e llin g. T here h av e a ls o b een h uge c hanges to tr a nsa cti o nal s e llin g a s a
r e su lt of th e In te rn et. B ut all th ese hav e been in cre m enta l changes, ofte n w ith questi o nab le
p ro ducti v ity g ain s, a nd n o ne o f th em , to m y w ay o f th in kin g, q ualifie s a s a b ona fid e b re akth ro ugh in
h o w to s e ll d iffe re ntl y a nd m ore e ffe cti v ely . TH E P U RCH ASIN G R EV O LU TIO N
I n te re sti n gly , th ere
has
b een a b re akth ro ugh d ev elo pm ent o n th e o th er s id e o f th e s e llin g in te ra cti o n.
P urc hasin g h as g o ne th ro ugh a m ajo r r e v olu ti o n. F ro m b ein g a d ead -e nd fu ncti o n in th e 1 980s w here
t h o se w ho c o uld n’t c ut it in H R w ent to d ie , it h as e m erg ed a s a v ib ra nt s tr a te gic fo rc e. A rm ed w ith
p ow erfu l p urc hasin g m eth o dolo gie s s u ch a s s u p plie r s e gm enta ti o n s tr a te gie s a nd s o phis ti c ate d s u p ply
c hain m anagem ent m odels , th e r is e o f th e n ew p urc hasin g h as d em and ed fu nd am enta l s h ifts in s a le s
t h in kin g.
I’ v e b een w aiti n g to s e e h o w th e s a le s w orld w ould re act to th e c hanges in p urc hasin g. If e v er
t h ere w as a ti m e fo r th e n ext b re akth ro ugh, it’ s d ue in re sp onse to th e p urc hasin g re v olu ti o n. B ut
n o th in g b ig h as a p peare d o n th e s a le s s c ene. I t’ s b een a b it l ik e w aiti n g f o r th e i n ev ita b le e arth q uake.
Y ou k no w it’ s g o in g to c o m e s o m ed ay, b ut y o u c an’t p re d ic t w hen— yo u ju st h av e a fe elin g th at it’ s
d ue; s o m eth in g i s a b out to h ap pen. TH E F O URTH B R EA K TH RO UG H?
W hic h b rin gs m e to
The C halle n ger S ale
a nd th e w ork o f th e S ale s E xecuti v e C ouncil. It’ s to o s o on
t o k no w w heth er th is i s th e b re akth ro ugh th at w e’v e b een w aiti n g f o r: O nly ti m e w ill te ll. O n th e f a ce
o f it, th eir re se arc h has all th e in iti a l sig ns th at it m ay b e gam e-c hangin g. F ir s t, lik e th e o th er
e xam ple s, i t f lie s i n th e f a ce o f c o nv enti o nal w is d om . B ut w e n eed m ore th an th at. M any c ra zy i d eas
v io la te e sta b lis h ed th in kin g. W hat m akes th is d iffe re nt i s th at, l ik e th e o th er b re akth ro ughs, o nce s a le s
l e ad ers u nd ers ta nd it, th ey s a y, “ O f c o urs e ! It’ s c o unte rin tu iti v e, b ut it m akes s e nse . I s h o uld h av e
k no w n.” T he l o gic y o u’ll f in d i n
The C halle n ger S ale
l e ad s to th e i n esc ap ab le c o nclu sio n th at th is i s
v ery d iffe re nt th in kin g a nd i t w ork s.
I’ m n o t g o in g to s p oil th eir s to ry b y te llin g e ith er th e d eta ils o r th e p unch lin e. T hat’ s fo r y o u to
r e ad . B ut I w ill te ll y o u w hy I th in k th e r e se arc h th at th ey h av e d one i s th e m ost i m porta nt a d vance i n
s e llin g f o r m any y ears a nd m ay i n d eed j u sti fy th e r a re a nd c o vete d l a b el o f “ sa le s b re akth ro ugh.” It’s G ood R ese a rc h
T he re se arc h is so lid , a nd b elie v e m e, I d on’t sa y th is lig htl y . M uch o f th e so -c alle d re se arc h in
s e llin g h as m eth o dolo gic al h o le s s o b ig th at y o u c o uld f ly a j u m bo j e t th ro ugh th em . W e l iv e i n a n a ge
w hen e v ery c o nsu lta nt a nd e v ery a uth o r c la im s “ re se arc h” to p ro ve th e e ffe cti v eness o f w hat th ey a re
s e llin g. O nce r e se arc h w as a s u re w ay to g ain c re d ib ility ; n o w it’ s fa st b eco m in g a s u re w ay to lo se
i t. C usto m ers are rig htl y cynic al ab out unsu p porta b le cla im s th at m asq uera d e und er th e nam e o f
r e se arc h, su ch as, “O ur re se arc h pro ves th at sa le s m ore th an doub le d afte r ta kin g our tr a in in g
p ro gra m ,” o r “ W e f o und i n o ur r e se arc h th at w hen s a le sp eo ple u se d o ur s e v en c usto m er b uyin g s ty le s
m odel, it c ause d c usto m er s a ti s fa cti o n to in cre ase b y 7 2 p erc ent.” C la im s lik e th ese a re u np ro vab le
a sse rti o ns th at e ro de th e c re d ib ility o f g enuin e r e se arc h.
I w as a t a c o nfe re nce in A ustr a lia w hen I fir s t h eard th at th e S ale s E xecuti v e C ouncil h ad s o m e
s ta rtl in g n ew r e se arc h o n s a le s e ffe cti v eness. I m ust a d m it th at, w hile I r e sp ecte d th e S E C a nd th eir
g o od tr a ck r e co rd o f s o lid m eth o dolo gy, I h ad b een b itte n e no ugh b y p oor r e se arc h to th in k to m yse lf,
“ T his w ill p ro bab ly b e y et a no th er d is a p poin tm ent.” W hen I g o t b ack to m y o ffic e in V ir g in ia , I
i n v ite d th e r e se arc h te am to s p end a d ay w ith m e a nd w e w ent th ro ugh th eir m eth o dolo gy w ith a f in e-
t o oth c o m b. I a d m it th at I c o nfid entl y e xp ecte d to e xp ose s e rio us fla w s in w hat th ey h ad d one. In
p arti c ula r, I h ad tw o c o ncern s:
1.
Puttin g s a le sp eo ple in to fiv e b uckets .
T he re se arc h c la im ed th at s a le sp eo ple fe ll in to o ne o f
f iv e d is ti n ct p ro file s:
The H ard W ork er
The C halle nger
The R ela ti o nsh ip B uild er
The L one W olf
The R eacti v e P ro ble m S olv er
This s o und ed n aïv e a nd a rb itr a ry to m e. W hat, I a sk ed th e te am , w as th e ra ti o nale fo r th ese fiv e
b uckets ? W hy n o t s e v en? O r te n? T hey w ere a b le to s h o w m e th at th ese w ere n o t i n v ente d c ate go rie s
b ut o nes th at e m erg ed o ut o f a m assiv e a nd s o phis ti c ate d s ta ti s ti c al a naly sis . A nd th ey u nd ers to od, i n
a w ay th at m any re se arc hers don’t, th at th eir fiv e buckets w ere behav io ra l clu ste rs , no t rig id
p ers o nality ty p es. I w as s a ti s fie d th at th ey h ad p asse d m y f ir s t te st.
2.
The h ig h- v ersu s lo w -p erfo rm er tr a p
. A la rg e p erc enta ge o f th e r e se arc h in to e ffe cti v e s e llin g
c o m pare s h ig h p erfo rm ers w ith l o w p erfo rm ers . I n th e e arly y ears o f m y o w n r e se arc h I d id th e s a m e
t h in g. A s a r e su lt I le arn ed a lo t a b out lo w p erfo rm ers . W hen y o u a sk p eo ple to c o m pare th eir r o ck
s ta rs w ith th eir l o se rs , y o u f in d th at th ey c an d is se ct th e l o se rs w ith s u rg ic al p re cis io n b ut f in d i t h ard ,
i f n o t i m possib le , to p ut th eir f in ger o n e xactl y w hat m akes th eir r o ck s ta rs r o ck. I s o on l e arn ed th at I
e nd ed u p w ith a d eta ile d u nd ers ta nd in g o f p oor p erfo rm ance a nd n o t m uch e ls e . I f m y r e se arc h w as to
h av e any m eanin g I had to co m pare to p perfo rm ers w ith av era ge, or co re , perfo rm ers . It w as
r e assu rin g to f in d th at th e S E C r e se arc h h ad a d opte d e xactl y th at a p pro ach. It’s B ase d o n a n I m pre ssiv e S am ple
I t’ s c o m mon f o r s a le s r e se arc h to b e b ase d o n s m all s a m ple s o f f ifty to e ig hty p arti c ip ants d ra w n f r o m
j u st th re e o r f o ur c o m panie s. L arg er-s c ale r e se arc h i s h ard er to d o a nd s ig nific antl y m ore e xp ensiv e.
M y o w n re se arc h h ad u se d s a m ple s o f a th o usa nd o r m ore , n o t b ecause w e lik ed m egastu d ie s b ut
b ecause — giv en th e no is y data of re al- life se llin g— we had no cho ic e if w e w ante d to dra w
s ta ti s ti c ally m eanin gfu l in sig hts . T he in iti a l s a m ple in th e C halle nger re se arc h w as 7 00, w hic h h as
s in ce g ro w n to 6 ,0 00. T hat’ s i m pre ssiv e b y a ny s ta nd ard . W hat’ s e v en m ore i m pre ssiv e i s th at n in ety
c o m panie s p arti c ip ate d in th e r e se arc h. W ith a s a m ple th is w id e w e c an r u le o ut m any o f th e fa cto rs
t h at n o rm ally p re v ent re se arc h fr o m g enera liz in g its re su lts to c o ver s e llin g a s a w ho le . T he S E C
f in d in gs a re n o t a b out a p arti c ula r o rg aniz a ti o n o r a s p ecific in d ustr y . T hey a p ply a cro ss th e w ho le
s p ectr u m o f s e llin g, a nd th at’ s i m porta nt. It D id n’t F in d W hat t h e R ese a rc h ers E xp ecte d
I a lw ays m is tr u st r e se arc h th at fin d s e xactl y w hat it s e eks. R ese arc hers , lik e e v ery b ody e ls e , h av e a
b und le o f p re ju d ic es a nd p re co nceiv ed id eas. If th ey k no w w hat th ey a re lo okin g fo r, b y g o sh th ey
w ill f in d i t. I w as r e ally p le ase d to h ear th at th e r e se arc hers th em se lv es w ere s tu nned to d is c o ver th at
t h eir re su lts w ere a lm ost th e o pposite o f w hat th ey h ad e xp ecte d . T hat’ s a v ery h ealth y s ig n a nd a
f r e q uent c hara cte ris ti c o f s ig nific ant r e se arc h. L ook a gain a t th eir f iv e p ro file s:
The H ard W ork er
The C halle nger
The R ela ti o nsh ip B uild er
The L one W olf
The R eacti v e P ro ble m S olv er
Most s a le s e xecuti v es, if th ey w ere fo rc ed to c ho ose ju st o ne p ro file to m ake u p th eir s a le s fo rc e,
w ould h av e c ho se n th e R ela ti o nsh ip B uild er, a nd th at’ s ju st w hat th e r e se arc h te am w as e xp ecti n g to
f in d . T hin k again . T he re se arc h sh o w ed th at R ela ti o nsh ip B uild ers w ere unlik ely to be sta r
p erfo rm ers . In co ntr a st, th e C halle ngers , w ho are aw kw ard to m anage and asse rti v e both w ith
c usto m ers a nd w ith th eir o w n m anagers , c am e o ut o n to p. A s y o u’ll s e e i n th e b ook, C halle ngers w on
o ut n o t b y a s m all m arg in b ut a m assiv e o ne. A nd th e m arg in w as f a r g re ate r i n c o m ple x s a le s. TH E D EC LIN E O F R ELAT IO NSH IP S E LLIN G
H ow c an w e e xp la in th ese c o unte rin tu iti v e fin d in gs? In th e b ook, M att D ix o n a nd B re nt A dam so n
b uild a v ery p ers u asiv e c ase . L et m e a d d m y o w n tw o c ents ’ w orth to w hat th ey s a y. C onv enti o nal
w is d om h as lo ng h eld th at s e llin g is a b out r e la ti o nsh ip s a nd th at in c o m ple x s a le s, r e la ti o nsh ip s a re
t h e u nd erp in nin g o f a ll s a le s s u ccess. Y et o ver th e l a st te n y ears th ere h av e b een s o m e d is tu rb in g h in ts
t h at re la ti o nsh ip -b ase d se llin g m ay b e le ss e ffe cti v e th an it u se d to b e. M y o w n stu d ie s o f w hat
c usto m ers v alu e fr o m s a le sp eo ple w ould b e a g o od e xam ple . W hen w e a sk ed 1 ,1 00 c usto m ers w hat
t h ey v alu ed in sa le sp eo ple , w e w ere su rp ris e d a t h o w fe w ti m es th ey m enti o ned re la ti o nsh ip s. It
s e em s th at th e o ld a d vic e, “ B uild r e la ti o nsh ip s f ir s t a nd th en s a le s w ill f o llo w ,” n o l o nger h o ld s tr u e.
T hat’ s n o t to s a y th at r e la ti o nsh ip s a re u nim porta nt. I th in k a b ette r e xp la nati o n i s th at th e r e la ti o nsh ip
a nd th e p urc hasin g d ecis io n h av e b eco m e d eco up le d . T oday y o u’ll o fte n h ear c usto m ers s a y, “ I h av e a
g re at re la ti o nsh ip w ith th is sa le s re p b ut I b uy fr o m h er c o m peti ti o n b ecause th ey p ro vid e b ette r
v alu e.” P ers o nally , I b elie v e th at a c usto m er r e la ti o nsh ip i s th e
re su lt
a nd n o t th e c ause o f s u ccessfu l
s e llin g. It is a re w ard th at th e s a le sp ers o n e arn s b y c re ati n g c usto m er v alu e. If y o u h elp c usto m ers
t h in k d iffe re ntl y a nd b rin g th em n ew id eas— whic h is w hat th e C halle nger r e p d oes— th en y o u e arn
t h e r ig ht to a r e la ti o nsh ip . TH E C H ALLEN G E O F C H ALLEN G E
A t th e h eart o f th is b ook is th e d em onstr a te d s u p erio rity o f C halle ngers in te rm s o f c usto m er im pact
a nd th ere fo re s a le s r e su lts . M any p eo ple a re ta ken a b ack b y th is f in d in g— and I s u sp ect s o m e r e ad ers
w ill fe el th e s a m e. B ut w hile th e a rti c ula ti o n o f th e C halle nger id ea is n ew , th e e v id ence h as b een
v is ib le a ll a ro und u s. S urv eys o f c usto m ers c o nsis te ntl y sh o w th at th ey p ut th e h ig hest v alu e o n
s a le sp eo ple w ho m ake th em th in k, w ho b rin g n ew id eas, w ho fin d c re ati v e a nd in no vati v e w ays to
h elp th e custo m er’s b usin ess. In re cent years , custo m ers hav e b een d em and in g m ore d ep th and
e xp erti s e . T hey e xp ect s a le sp eo ple to te ach th em th in gs th ey d on’t k no w . T hese a re th e c o re s k ills o f
C halle ngers . T hey a re th e s k ills o f th e f u tu re , a nd a ny s a le s f o rc e th at i g no re s th e m essa ge o f th is b ook
d oes s o a t i ts p eril.
I’ v e b een in th e b usin ess o f s a le s in no vati o n a ll m y p ro fe ssio nal life , s o I d on’t a nti c ip ate th at th e
p ub lic ati o n o f th is im porta nt re se arc h w ill b rin g a n in sta nt re v olu ti o n. C hange is s lo w a nd p ain fu l.
B ut I d o k no w th is : T here w ill b e a fe w c o m panie s th at w ill ta ke th e fin d in gs th at a re la id o ut h ere
a nd w ill im ple m ent th em w ell. T ho se c o m panie s w ill re ap h uge g ain s a nd s ig nific ant c o m peti ti v e
a d vanta ge fr o m b uild in g C halle nge in to th eir s a le s fo rc e. A s th e S E C r e se arc h s h o w s, w e liv e in a n
e ra w hen p ro duct in no vati o n a lo ne c anno t b e th e b asis fo r c o rp ora te su ccess. H ow y o u se ll h as
b eco m e m ore i m porta nt th an w hat y o u s e ll. A n e ffe cti v e s a le s f o rc e i s a m ore s u sta in ab le c o m peti ti v e
a d vanta ge th an a g re at p ro duct s tr e am . T his b ook g iv es y o u a w ell- a rti c ula te d b lu ep rin t f o r b uild in g a
w in nin g sa le s fo rc e. M y ad vic e is th is : R ead it, th in k ab out it, im ple m ent it. Y ou, and yo ur
o rg aniz a ti o n, w ill b e g la d th at y o u d id .
Pro fe sso r N eil R ackham
Auth o r o f
SP IN S ellin g
IN TR O DUCTIO N
A S U RPR IS IN G L O OK I N TO T H E F U TU RE
I N T H E U NFO RG ETTA BLE
e arly m onth s o f 2 009, a s th e b otto m fe ll o ut o f th e g lo bal e co no m y,
b usin ess-to -b usin ess sa le s le ad ers aro und th e w orld fa ced an ep ic p ro ble m and an ev en d eep er
m yste ry .
Custo m ers h ad v anis h ed o vern ig ht. C om merc e h ad g ro und to a h alt. C re d it w as s c arc e, a nd c ash
e v en s c arc er. F or a nyo ne i n b usin ess, ti m es w ere to ugh. B ut f o r h ead s o f s a le s, th ey w ere a n a b so lu te
n ig htm are . I m agin e h av in g to g et u p e v ery m orn in g, r a lly y o ur tr o ops, a nd s e nd th em i n to a b attl e th ey
c o uld n’t p ossib ly w in . T o fin d b usin ess w here n o ne c o uld b e fo und . T ru e, sa le s h as a lw ays b een
a b out th e g o od fig ht— ab out w in nin g b usin ess o fte n in th e fa ce o f str o ng re sis ta nce. B ut th is w as
d iffe re nt. I t’ s o ne th in g to s e ll to r e lu cta nt, e v en n erv ous c usto m ers . I t’ s a no th er th in g a lto geth er to s e ll
t o n o o ne a t a ll. A nd th at’ s w here w e w ere i n e arly 2 009.
Yet th ere in la y th e m yste ry . S ta rin g d ir e ctl y in to th e te eth o f th e to ughest sa le s e nv ir o nm ent in
d ecad es— if n o t e v er— a s m all b ut u niq uely g ifte d n um ber o f s a le s re p s
were
s e llin g. In fa ct, th ey
w ere s e llin g a l o t. W hile o th ers s tr u ggle d to c lo se e v en th e s m alle st o f d eals , th ese i n d iv id uals w ere
b rin gin g in th e k in d o f b usin ess m ost re p s c o uld o nly d re am o f e v en in a n u p e co no m y. W ere th ey
l u cky? W ere th ey ju st b orn w ith it? A nd m ost im porta nt, h o w c o uld y o u p ossib ly c ap tu re th at m agic ,
b ottl e it, a nd e xp ort it to e v ery o ne e ls e ? F or m any c o m panie s, th eir v ery s u rv iv al d ep end ed o n th e
a nsw er.
It w as in to th is env ir o nm ent th at th e S ale s E xecuti v e C ouncil (S E C )— a pro gra m w ith in th e
C orp ora te E xecuti v e B oard — la unched w hat h as b eco m e o ne o f th e m ost im porta nt s tu d ie s o f s a le s
r e p p ro ducti v ity in d ecad es. T ask ed b y o ur m em bers — head s o f s a le s fr o m th e w orld ’s la rg est, b est-
k no w n c o m panie s— we s e t o ut to i d enti fy w hat e xactl y s e t th is v ery s p ecia l g ro up o f s a le s r e p s a p art.
A nd h av in g n o w s tu d ie d th at q uesti o n i n te nsiv ely f o r th e b ette r p art o f f o ur y ears , s p annin g d oze ns o f
c o m panie s and th o usa nd s of sa le s re p s, w e hav e dis c o vere d th re e co re in sig hts th at hav e
f u nd am enta lly r e w ritte n th e s a le s p la yb ook a nd le d B 2B s a le s e xecuti v es a ll o ver th e w orld to th in k
v ery d iffe re ntl y a b out h o w th ey s e ll.
The fir s t in sig ht w as s o m eth in g w e w ere n’t o rig in ally e v en lo okin g fo r. It tu rn s o ut th at ju st a b out
e v ery B 2B s a le s r e p in th e w orld fa lls in to o ne o f fiv e d is ti n ct p ro file s, a s p ecific s e t o f s k ills a nd
b ehav io rs th at d efin e h is o r h er p rim ary m ode o f i n te ra cti n g w ith c usto m ers . N ow , th at’ s i n te re sti n g i n
a nd o f its e lf, a s y o u’ll b e a b le to fin d y o urs e lf a nd y o ur c o lle agues in th ese p ro file s w hen y o u s e e
t h em . T hese fiv e p ro file s p ro ve to b e an in cre d ib ly p ra cti c al w ay o f d iv id in g th e w orld in to a
m anageab le s e t o f a lte rn ati v e s a le s te chniq ues.
That s a id , it’ s r e ally th e s e co nd in sig ht th at c hanges e v ery th in g. W hen y o u ta ke th o se fiv e p ro file s
a nd c o m pare th em w ith a ctu al s a le s p erfo rm ance, y o u fin d th ere is a v ery c le ar w in ner a nd a v ery
c le ar lo se r: O ne of th em sp ecta cula rly outp erfo rm s th e oth er fo ur, w hile one of th em fa lls
d ra m ati c ally b ehin d . Y et th ere is s o m eth in g v ery d is tu rb in g a b out th ese r e su lts . W hen w e s h o w th em
t o sa le s le ad ers , w e hear th e sa m e th in g again and again . T hese le ad ers fin d th e re su lts d eep ly
t r o ub lin g, b ecause th ey’v e p la ced b y fa r th eir b ig gest b et o n th e p ro file le ast lik ely to w in . T his o ne
i n sig ht h as s h atte re d th e w ay m any s a le s l e ad ers th in k a b out th e k in d o f r e p s th ey n eed to s u rv iv e a nd th riv e i n a to ugh e co no m y.
And th at b rin gs u s to th e th ir d a nd fin al c o re in sig ht fr o m th is w ork — arg uab ly th e m ost e xp lo siv e
of th em a ll. A s w e d ug d eep er in to th e d ata , w e fo und s o m eth in g e v en m ore s u rp ris in g. W hile w e’d
se t o ut fo ur y ears a go to fin d th e w in nin g r e cip e fo r s a le s r e p s u ccess in a d ow n e co no m y, a ll o f th e
data in d ic ate s o m eth in g fa r m ore im porta nt. T he p ro file m ost lik ely to w in is n ’t w in nin g
beca use
o f
th e d ow n eco no m y, b ut
ir re sp ectiv e
o f it. T hese re p s are w in nin g b ecause th ey’v e m aste re d th e
co m ple x s a le , n o t b ecause th ey’v e m aste re d a c o m ple x e co no m y. In o th er w ord s, w hen w e u nlo cked
th e m yste ry o f h ig h p erfo rm ance in th e d ow n e co no m y, th e s to ry tu rn ed o ut to b e m uch b ig ger th an
anyo ne h ad a nti c ip ate d . Y our v ery b est s a le s r e p s— th e o nes w ho c arrie d y o u th ro ugh th e d ow ntu rn —
are n’t j u st th e h ero es o f to day, b ut a re a ls o th e h ero es o f to m orro w , a s th ey a re f a r b ette r a b le to d riv e
sa le s a nd d eliv er c usto m er v alu e i n
any
k in d o f e co no m ic e nv ir o nm ent. W hat w e u lti m ate ly f o und i s a
dra m ati c ally i m pro ved r e cip e f o r a s u ccessfu l s o lu ti o n s a le s r e p .
We c all th ese w in nin g r e p s C halle ngers , a nd th is i s th eir s to ry . 1
TH E E V O LV IN G J O URN EY O F S O LU TIO N S ELLIN G
I N E A RLY 2 009,
th e te am at th e S ale s E xecuti v e C ouncil se t o ut to answ er th e m ost p re ssin g
q uesti o n o n th e m in d s o f sa le s le ad ers a t th e ti m e: H ow c an w e se ll o ur w ay th ro ugh th e w ors t
e co no m y i n d ecad es?
It w as a q uesti o n n atu ra lly a cco m panie d n o t o nly b y u rg ent c o ncern — ev en fe ar— but a ls o b y a
s e nse o f re al m yste ry . In a w orld w here B 2B se llin g h ad g ro und to n early a c o m ple te h alt, sa le s
e xecuti v es w ere s u rp ris e d to fin d a h and fu l o f re p s s ti ll b rin gin g in b usin ess ty p ic al o f th e b est o f
t i m es, n o t th e w ors t. B ut w hat w ere th ey d oin g d iffe re ntl y ? H ow w ere th ese re p s s ti ll s e llin g w ell
w hen v ir tu ally n o o ne e ls e w as s e llin g a t a ll?
In s tu d yin g th is q uesti o n in s ig nific ant d ep th w e d is c o vere d s o m eth in g s u rp ris in g. W hat s e t th ese
b est re p s a p art w asn ’t so m uch th eir a b ility to su cceed in a d ow n e co no m y, b ut th eir a b ility to
s u cceed i n a c o m ple x s a le s m odel— one th at p la ces a h uge b urd en o n b oth r e p s a nd c usto m ers to th in k
a nd behav e diffe re ntl y . T hat m odel is ofte n re fe rre d to as “so lu ti o n se llin g” or a “so lu ti o ns
a p pro ach”— or s im ply “ so lu ti o ns” — and h as c o m e to d om in ate s a le s a nd m ark eti n g s tr a te gy a cro ss
t h e l a st te n to tw enty y ears .
The s to ry w e f o und i n o ur r e se arc h, h o w ev er, to ld u s s o m eth in g v ery i m porta nt a b out th e w orld o f
s o lu ti o n se llin g. It’ s e v olv in g d ra m ati c ally . A s su p plie rs se ek to se ll e v er b ig ger, m ore c o m ple x,
d is ru p ti v e, a nd e xp ensiv e “ so lu ti o ns,” B 2B c usto m ers a re n atu ra lly b uyin g w ith g re ate r c are a nd
r e lu cta nce th an e v er b efo re , d ra m ati c ally re w riti n g th e p urc hasin g p la yb ook in th e p ro cess. A s a
r e su lt, tr a d iti o nal, ti m e-te ste d s a le s te chniq ues n o l o nger w ork th e w ay th ey u se d to . C ore -p erfo rm in g
r e p s s tr u ggle m ig hti ly i n a ll b ut th e m ost s tr a ig htf o rw ard o f s a le s, l e av in g a n a la rm in g n um ber o f h alf-
c o m ple te d d eals in th eir w ake a s th ey a tte m pt to a d ap t to c hangin g c usto m er d em and s a nd e v olv in g
b uyin g b ehav io rs .
Fro m th is p ers p ecti v e, th e d ow n e co no m y th at s o tr o ub le d s e nio r s a le s e xecuti v es w hen w e fir s t
l a unched th is w ork p ro ved to b e a r e d h errin g. T he d ow ntu rn e xacerb ate d th e w id enin g g ap b etw een
c o re – a nd s ta r-p erfo rm in g re p s, b ut it d id n’t c ause it. In fa ct, th e s to ry la id o ut h ere is n ’t a b out th e
e co no m y a t a ll. It’ s a b out th e e v olv in g w orld o f s o lu ti o n s e llin g a nd th e s k ills n ecessa ry to d riv e
c o m merc ia l s u ccess a cro ss th e fo re se eab le fu tu re ir re sp ecti v e o f e co no m ic c o nd iti o ns. A s th e w orld
o f so lu ti o n se llin g c o nti n ues to c hange, S ale s E xecuti v e C ouncil re se arc h c le arly in d ic ate s th at a
s p ecific s e t o f s a le s r e p s k ills h as e m erg ed a s s ig nific antl y m ore lik ely to d riv e c o m merc ia l r e su lts
t h an th o se e m phasiz e d in e ith er tr a d iti o nal p ro duct s e llin g o r e arly s o lu ti o n s e llin g. T o u nd ers ta nd
w hy th o se s k ills m atte r s o m uch, i t’ s h elp fu l to f ir s t e xam in e th e e v olu ti o n o f th e s a le s m odel i ts e lf. TH E P A T H T O S O LU TIO N S E LLIN G
S olu ti o n se llin g co m es in m any fla v ors , b ut genera lly d esc rib es th e m ig ra ti o n fr o m a fo cus o n
t r a nsa cti o nal s a le s o f in d iv id ual p ro ducts (u su ally b ase d o n p ric e o r v olu m e) to a fo cus o n b ro ad –
b ase d c o nsu lta ti v e s a le s o f “ b und le s” o f p ro ducts a nd s e rv ic es. T he k ey to i ts s u ccess i s th e c re ati o n
o f b und le d o ffe rin gs th at n o t o nly m eet b ro ad er c usto m er n eed s i n a u niq ue a nd v alu ab le w ay, b ut a ls o
t h at co m peti to rs can’t easily re p lic ate . T he best so lu ti o ns, th ere fo re , are no t ju st uniq ue, but
s u sta in ab ly s o , a llo w in g a s u p plie r to a d dre ss c usto m er c halle nges i n e ith er n ew o r m ore e co no m ic al
w ays r e la ti v e to th e c o m peti ti o n.
Why does th at m atte r? Solu ti o n se llin g is la rg ely driv en by su p plie rs ’ atte m pts to esc ap e
d ra m ati c ally in cre asin g c o m moditi z a ti o n p re ssu re a s in d iv id ual p ro ducts a nd s e rv ic es b eco m e le ss
d iffe re nti a te d o ver ti m e. B ecause i t i s h ard er f o r a c o m peti to r to o ffe r th e f u ll s p ectr u m o f c ap ab iliti e s
c o m pris in g a w ell- d esig ned s o lu ti o n b und le , i t’ s m uch e asie r to p ro te ct p re m iu m p ric in g i n a s o lu ti o n
s a le th an i n a tr a d iti o nal p ro duct s a le .
Not s u rp ris in gly , th e a p pro ach h as b eco m e w id ely p opula r a cro ss b usin ess-to -b usin ess s a le s fo r
t h at r e aso n. In fa ct, to g et a s e nse o f h o w w id esp re ad s o lu ti o n s e llin g h as b eco m e, in a r e cent S E C
s u rv ey w e ask ed sa le s le ad ers to chara cte riz e th eir prim ary sa le s str a te gy acro ss a m ulti s te p
c o nti n uum fr o m tr a d iti o nal p ro duct sa le s o n o ne e nd to fu ll- o n c usto m iz e d so lu ti o n se llin g o n th e
o th er. T he re su lt? F ully th re e-q uarte rs of re sp ond ents re p orte d asp ir a ti o ns to be so m e kin d of
s o lu ti o ns p ro vid er to a m ajo rity o f th eir c usto m ers . E sse nti a lly , s o m e fla v or o f s o lu ti o n s e llin g h as
b eco m e a d om in ant s a le s s tr a te gy a cro ss a lm ost e v ery i n d ustr y .
S ourc e: S ale s E xecuti v e C ouncil r e se arc h.
F ig ure 1 .1 .
T he S hift f r o m P ro duct to S olu ti o n S ellin g
Now , w e d on’t d is p ute th e v alu e o f th is lo ng-te rm m ig ra ti o n to s o lu ti o n s e llin g— parti c ula rly a s a
w ay to e sc ap e re le ntl e ss c o m moditi z a ti o n p re ssu re — but th e str a te gy n o neth ele ss b rin gs w ith it a
n um ber o f re al c halle nges. C hie f a m ong th em a re tw o c halle nges th at e xp la in h o w — and w hy— th e
s o lu ti o ns m odel h as n ecessa rily e v olv ed o ver ti m e. T he f ir s t i s th e b urd en th at s o lu ti o ns p la ces o n th e custo m er. T he s e co nd i s th e b urd en i t p la ces o n th e r e p . TH E C UST O M ER B U RDEN O F S O LU TIO NS
B y d efin iti o n, a s h ift to s o lu ti o n s e llin g r e su lts i n c usto m ers ’ e xp ecti n g y o u to a ctu ally “ so lv e” a r e al
p ro ble m a nd n o t ju st s u p ply a re lia b le p ro duct. A nd th at’ s h ard to d o. It re q uir e s th at y o u n o t o nly
u nd ers ta nd th e custo m er’s und erly in g p ro ble m s o r challe nges as w ell if no t b ette r th an th ey d o
t h em se lv es, b ut als o th at yo u can id enti fy new and b ette r m eans o f ad dre ssin g th o se challe nges,
a rti c ula te c le ar b enefits fr o m u sin g lim ite d re so urc es to s o lv e th at p ro ble m v ers u s c o m peti n g o nes,
a nd d ete rm in e th e r ig ht m etr ic s to m easu re s u ccess. A nd th e o nly w ay to d o a ll o f th at is to a sk th e
c usto m er l o ts o f q uesti o ns. S o r e p s s p end a g re at d eal o f ti m e a sk in g th in gs l ik e, “ W hat’ s k eep in g y o u
u p a t n ig ht? ” i n a n a tte m pt to tr u ly u nd ers ta nd a c usto m er’s c o m peti n g c halle nges.
The p ro ble m w ith a ll o f th is “ d is c o very ” is th at it c an o fte n ta ke o n th e fe el o f a p ro tr a cte d p in g-
p ong m atc h betw een th e su p plie r and custo m er. The custo m er exp la in s th eir need s, th e re p
s u m mariz e s h er u nd ers ta nd in g, th e c usto m er c o nfir m s w heth er o r n o t th e r e p g o t i t r ig ht, s h e c re ate s a
p ro posa l, th e c usto m er r e v ie w s a nd a m end s i t, a nd o n a nd o n.
This co m plic ate d and ofte n ra th er pro tr a cte d pro cess re q uir e s a huge am ount of custo m er
i n v olv em ent a t e ach s ta ge, p la cin g tw o k in d s o f b urd en o n th e c usto m er: T he fir s t is ti m e, a nd th e
s e co nd is ti m in g. N ot o nly d oes th is d ance e nta il sig nific ant c usto m er c o m mitm ent a cro ss a w id e
r a nge o f d iffe re nt s ta keho ld ers , c o nfe re nce c alls , a nd p re se nta ti o ns, b ut fr o m th e c usto m er’s p oin t o f
v ie w , m ost o f th is e ffo rt c o m es e arly , b efo re th ey s e e a ny v alu e. R eally , it’ s a n a ct o f fa ith o n th eir
p art th at th ey’re g o in g to g et a nyth in g i n r e tu rn f o r a ll o f th eir tr o ub le .
This h as le d to s o m eth in g w e c all “ so lu ti o ns fa ti g ue.” A s s o lu ti o ns c o m ple xity h as in cre ase d , th is
b urd en o n c usto m ers h as g o ne u p a s w ell, l e ad in g c usto m ers to e ngage w ith s u p plie rs v ery d iffe re ntl y
w hen it c o m es to c o m ple x d eals . In fa ct, fo ur tr e nd s re ally sta nd o ut in d esc rib in g h o w c usto m er
b uyin g b ehav io r i s e v olv in g r a p id ly . The R is e o f t h e C onse nsu s-B ase d S ale
F ir s t, w e h av e se en a sig nific ant in cre ase in th e n eed fo r c o nse nsu s in o rd er to g et d eals d one.
B ecause th e p ayo ff o f b uyin g a co m ple x so lu ti o n is so uncerta in , ev en C -le v el executi v es w ith
s ig nific ant d ecis io n-m akin g a uth o rity a re u nw illin g to g o o ut o n a lim b to m ake a la rg e p urc hase
d ecis io n w ith o ut th e s u p port o f th eir te am s. O ur r e se arc h a t th e S ale s E xecuti v e C ouncil i n d ic ate s th at
w id esp re ad s u p port fo r a s u p plie r a cro ss th eir te am is th e n um ber-o ne th in g s e nio r d ecis io n m akers
l o ok f o r i n m akin g a p urc hase d ecis io n ( a f in d in g w e’ll d is c uss i n m ore d ep th l a te r i n th is b ook).
And o f c o urs e , th at n eed f o r c o nse nsu s h as h uge i m plic ati o ns f o r s a le s p ro ducti v ity . N ot o nly d oes
t h e re p n o w h av e to sp end th e ti m e tr a ckin g d ow n a ll th ese in d iv id uals a nd se llin g th em o n th e
s o lu ti o n, b ut th e r is k th at a t le ast o ne o f th em is g o in g to s a y n o g o es u p w ith e ach n ew s ta keho ld er
t h at r e p h as to e ngage. In cre ase d R is k A versio n
S eco nd , a s d eals h av e b eco m e m ore c o m ple x a nd m ore e xp ensiv e, m ost c usto m ers h av e b eco m e
m uch m ore c o ncern ed a b out w heth er th ey’ll
ever
s e e a r e tu rn o n th eir in v estm ent. A s a r e su lt, m any
a re m ovin g a ggre ssiv ely to re q uir e s u p plie rs to s h are m ore d eep ly in th e p erc eiv ed h ig her ris k o f
t h ese so lu ti o ns th em se lv es. It’ s n o th in g n ew fo r c usto m ers to d em and ju st- in -ti m e d eliv ery o r o n-
d em and p ro ducti o n, b ut m ore a nd m ore w e’re s e ein g r e v is io ns to th e v ery m etr ic s c usto m ers u se to
j u d ge th e su ccess o f a so lu ti o n im ple m enta ti o n. A s a re su lt, in th e w orld o f co m ple x so lu ti o ns,
s u p plie r s u ccess is o fte n m easu re d b y th e p erfo rm ance o f th e c usto m er’s b usin ess, n o t th e s u p plie r’s
p ro ducts .
Sup plie rs l o okin g to g ro w a s o lu ti o ns b usin ess, th en, a re g o in g to h av e to r u n r ig ht a t r is k , b uild in g
i t d ir e ctl y in to th eir v alu e p ro po siti o n, a s a n in cre asin gly la rg e n um ber o f c usto m ers a re n o lo nger
w illin g to a ccep t a t f a ce v alu e th at “ so lu ti o ns” w ill u lti m ate ly d eliv er th e k in d o f v alu e th at s u p plie rs
p ro m is e u p f r o nt. Gre ate r D em and f o r C usto m iz atio n
T hir d , a s d eal c o m ple xity g o es u p , s o d oes c usto m ers ’ n atu ra l te nd ency to w ant to m odify th e d eal to
m ore c lo se ly m eet th eir s p ecific n eed s. W here as s u p plie rs ty p ic ally s e e c usto m iz a ti o n p ure ly fr o m a
c o st p ers p ecti v e, c usto m ers s e e c usto m iz a ti o n a s p art o f th e p ro m is e o f a “ so lu ti o ns” s a le : “ If y o u’re
g o in g to ‘ s o lv e’ m y p ro ble m , th en th is i s w hat I n eed i t to d o. W hy s h o uld th at c o st m ore m oney? A fte r
a ll, if it d oesn ’t d o th at, th en it’ s n o t re ally a ‘s o lu ti o n,’ is it? ” It’ s h ard to a rg ue w ith th at k in d o f
l o gic . C usto m iz a ti o n: E very o ne w ants i t; n o o ne w ants to p ay f o r i t. The R is e o f T hir d -P arty C onsu lt a nts
F in ally , o ver th e la st s e v era l y ears , w e’v e s e en a d ra m ati c a nd tr o ub lin g r is e in th e n um ber o f th ir d –
p arty c o nsu lta nts e m plo yed b y c usto m ers to h elp th em “ extr a ct m axim um v alu e fr o m th e p urc hase
d ecis io n.” A w ell- e sta b lis h ed p ra cti c e in so m e se cto rs — co rp ora te h ealth in su ra nce in th e U nite d
S ta te s, fo r e xam ple — th is tr e nd re ally to ok o ff g lo bally in la te 2 009, fo rg ed b y th e n eed o f m ost
c o m panie s to c ut c o sts o n th e o ne h and , a nd th e e v en m ore u rg ent n eed o f r e centl y la id -o ff in d ustr y
e xp erts to f in d a j o b o n th e o th er. T yp ic ally , th ese n ew ly m in te d c o nsu lta nts s o ld th eir s e rv ic es l a rg ely
o n th e b asis o f th eir a b ility to s a v e c o m panie s m oney. In th at c ase , “ extr a cti n g m axim um v alu e fr o m
t h e p urc hase d ecis io n” r e ally w as n o th in g m ore th an c o de f o r d oin g e v ery th in g p ossib le to s ti c k i t to
s u p plie rs o n p ric e, u p to a nd in clu d in g g o in g b ack a nd a ud iti n g p rio r d eals to u nco ver g ro und s fo r
r e nego ti a ti o n.
Over ti m e, h o w ev er, l a rg er o rg aniz a ti o nal p la yers h av e b eco m e d eep ly i n v olv ed i n th e p urc hase a s
w ell. In th eir c ase , “ extr a cti n g m axim um v alu e fr o m th e p urc hase d ecis io n” ty p ic ally tr a nsla te s in to
s o m eth in g c lo se r to h elp in g c usto m ers n av ig ate s o lu ti o ns c o m ple xity . T he f a ct o f th e m atte r i s th at a s
s u p plie rs s e ek to s e ll i n cre asin gly b ro ad s o lu ti o ns to e v er m ore c o m ple x c usto m er p ro ble m s, a s o fte n
a s n o t th e c o m ple xity o f th o se p ro ble m s is so h ig h th at c usto m ers a re th em se lv es u nq ualifie d to
n av ig ate — le t a lo ne e v alu ate — pote nti a l c o urs e s o f a cti o n o n th eir o w n. T hey n eed h elp . R ath er th an
t u rn in g to th e s u p plie rs f o r th at h elp , h o w ev er, th ey l o ok to “ neutr a l” th ir d -p arty e xp erts .
As a re su lt, su p plie rs to day are fr e q uentl y co nfr o nte d w ith new and aggre ssiv e th ir d -p arty
i n te rm ed ia rie s lo okin g to ta ke th eir s h are o f “ v alu e” fr o m th e d eal. A nd y o u c an b e s u re th at th at
p ound o f fle sh is g o in g to c o m e fr o m th e su p plie r sid e, n o t th e c usto m er sid e, g iv en w ho m th ese
c o nsu lta nts a re w ork in g fo r. In th is w orld , y o u c an e asily w in d u p w ith a ll th e c usto m er’s b usin ess,
b ut n o ne o f th eir m oney.
All f o ur o f th ese tr e nd s i n c usto m er b uyin g b ehav io r h av e l e d to a h ard tr u th f o r s a le s o rg aniz a ti o ns
a ll o ver th e w orld — and e sp ecia lly fo r th e re p s w ho s e ll fo r th em : W hile th e e co no m y h as g o tte n
b ette r, s e llin g h asn ’t g o tte n a ny e asie r. It’ s th e p hysic s o f s a le s: S up plie rs c alle d th e s o lu ti o ns p la y,
a nd c usto m ers h av e m ad e th eir c o unte rm ove. C usto m ers a re lo okin g fo r w ays to re d uce b oth th e
c o m ple xity a nd th e r is k th at s u p plie rs ’ s o lu ti o n s e llin g e ffo rts h av e f o is te d u p on th em . A W ID EN IN G T A LEN T G AP
H ow d oes th is s o lu ti o ns s to ry p la y o ut fo r in d iv id ual r e p p erfo rm ance? T he im pact h as b een n o th in g
s h o rt o f d ra m ati c .
In a re cent s tu d y, o ur te am a t th e S ale s E xecuti v e C ouncil c o nd ucte d a n a naly sis lo okin g a t th e
i m pact o f a c o m pany’s s a le s m odel— in o th er w ord s, tr a nsa cti o nal s e llin g v ers u s s o lu ti o n s e llin g— on
t h e p erfo rm ance d is tr ib uti o n o f th eir s a le s re p s. W hat w e fo und w as e ye-o penin g a nd m ore th an a
l ittl e tr o ub lin g.
In a tr a nsa cti o nal s e llin g e nv ir o nm ent, th e p erfo rm ance g ap b etw een a v era ge a nd s ta r p erfo rm ers i s
5 9 p erc ent. S o th e sta r p erfo rm er se lls ab out half as m uch as th e co re p erfo rm er. H ow ev er, in
c o m panie s w ith so lu ti o n se llin g m odels th e d is tr ib uti o n is v ery d iffe re nt. T here , sta r p erfo rm ers
o utp erfo rm c o re p erfo rm ers b y a lm ost
200 p erc en t.
T he g ap i s f o ur ti m es g re ate r. P ut a no th er w ay, a s
s a le s b eco m e m ore c o m ple x, th e g ap b etw een c o re a nd s ta r p erfo rm ers w id ens d ra m ati c ally .
S ourc e: S ale s E xecuti v e C ouncil r e se arc h.
Fig ure 1 .2 .
C ore V ers u s H ig h P erfo rm ers i n T ra nsa cti o nal ( L eft) a nd S olu ti o n S ellin g ( R ig ht)
Env ir o nm ents
This l e ad s u s to th re e c o nclu sio ns. F ir s t, a s a s o lu ti o ns p ro vid er, y o u’v e g o t to f in d a w ay to p ut a
b ig c o rp ora te b ear h ug a ro und y o ur s ta rs . T hey’re c arry in g th e d ay fo r y o u. O ne h ead o f s a le s in
b usin ess s e rv ic es to ld u s r e centl y th at o f th eir h und re d s a le s r e p s,
tw o
w ere r e sp onsib le fo r b rin gin g
i n 8 0 p erc ent o f th e c o m pany’s re v enue. W hile th e situ ati o n in y o ur o rg aniz a ti o n m ay n o t b e a s
e xtr e m e, th e s h ift to s o lu ti o n s e llin g h as u nd oub te d ly s e en a d ra m ati c r is e in k ey-p ers o n d ep end ency
p ro ble m s a cro ss m any s a le s fo rc es. It’ s n o t ju st th at s ta rs a re c arry in g th e d ay fo r y o u; th ey’re o fte n
c arry in g th e e nti r e c o m pany.
Seco nd , a s y o ur s a le s m odel b eco m es m ore c o m ple x, th e v alu e o f n arro w in g th e g ap b etw een y o ur
c o re a nd s ta r p erfo rm ers g o es u p r a d ic ally . In th e tr a nsa cti o nal w orld , th e v alu e o f g etti n g s o m eo ne
j u st h alfw ay fr o m g o od to g re at is a 3 0 p erc ent im pro vem ent. T hat’ s n o t b ad . B ut th e v alu e o f th e
s a m e m ove i n a s o lu ti o ns e nv ir o nm ent i s a n a lm ost 1 00 p erc ent i m pro vem ent. P ut s im ply , c lo sin g th at
g ap i s w orth a l o t m ore th an i t u se d to b e.
Fin ally , th e p enalty fo r n o t c lo sin g th e g ap is te rrify in g. A s y o ur m odel e v olv es, le ft u nte nd ed , th e co re w ill f a ll f a rth er a nd f a rth er b ehin d , u nti l th ey u lti m ate ly c an’t e xecute th e n ew m odel a t a ll. A N EW W AY F O RW AR D
I n th is w orld o f d ra m ati c ally c hangin g c usto m er b uyin g b ehav io r a nd r a p id ly d iv erg in g s a le s ta le nt,
y o ur s a le s a p pro ach m ust e v olv e o r y o u w ill b e l e ft b ehin d .
So th e q uesti o n n o w i s : W hat d o y o u d o a b out i t? I f y o u’re g o in g to w in g o in g f o rw ard , y o u’v e g o t
t o e q uip r e p s to g enera te n ew d em and i n a w orld o f r e lu cta nt, r is k -a v ers e c usto m ers — custo m ers w ho
a re s tr u gglin g to b uy c o m ple x s o lu ti o ns j u st a s m uch a s y o u a re s tr u gglin g to s e ll th em . T hat’ s g o in g to
t a ke a v ery s p ecia l k in d o f s a le s p ro fe ssio nal i n d eed . A s th e w orld o f s a le s h as e v olv ed d ra m ati c ally
a cro ss th e la st te n to tw enty y ears , o ur re se arc h in d ic ate s th at th e b est re p s h av e e v olv ed a s e t o f
u niq ue a nd p ow erfu l s k ills to k eep u p . A nd th at’ s w here o ur s to ry g o es n ext. 2
TH E C HA LLEN GER ( P A RT 1 ): A N EW M ODEL F O R H IG H P ER FO RM ANCE
T H E N EED T O
u nd ers ta nd w hat y o ur s ta r-p erfo rm in g r e p s a re d oin g to s e t th em se lv es a p art fr o m
t h eir c o re -p erfo rm in g c o lle agues h as n ev er b een m ore u rg ent. T he w orld o f s a le s is c hangin g. T he
p re -re cessio n r e cip e f o r s a le s s u ccess w on’t g et th e j o b d one i n a p ost- re cessio n e co no m y. T hat s a id ,
t h e eco no m y its e lf se rv es o nly as a b ackd ro p to th is sto ry . T he re al sto ry re v olv es aro und th e
d ra m ati c c hange in c usto m er b uyin g b ehav io rs a cro ss th e la st fiv e y ears th at w e re v ie w ed in th e
p re v io us c hap te r— all i n r e sp onse to s u p plie rs ’ e ffo rts to s e ll l a rg er, m ore c o m ple x, m ore d is ru p ti v e,
a nd m ore e xp ensiv e s o lu ti o ns.
Sti ll, i f n o th in g e ls e , th e g lo bal e co no m ic c o lla p se s e rv ed to th ro w th e w id enin g g ap b etw een c o re
a nd s ta r r e p s i n to s ta rk c o ntr a st. E ven i n th e d ep th s o f th e d ow ntu rn , w hen m ost r e p s w ere f a r b ehin d
q uo ta , s o m e r e p s— quite in exp lic ab ly — sti ll m anaged n o t ju st to h it th eir g o als , b ut to e xceed th em .
W hat w ere th ey d oin g d iffe re ntl y ? G enera lly , th e te nd ency i n s a le s i s to s im ply c halk u p th e d iffe re nce
t o n atu ra l ta le nt a nd a ssu m e s ta rs a re j u st b orn w ith i t. I t’ s n o t a s i f y o u c an j u st ta ke th eir s k ill, b ottl e
i t, a nd s p rin kle i t o ver y o ur c o re p erfo rm ers to c lo se th e g ap . R ig ht?
Well, w hat if y o u c o uld ? W hat if y o u c o uld tr a ck d ow n th e r e p lic ab le p art o f w hat tr u ly s e ts s ta r
p erfo rm ers a p art, c ap tu re th at m agic , a nd e xp ort it to th e r e st o f y o ur s a le s o rg aniz a ti o n? Im agin e a
w orld w here a ll y o ur r e p s— or a t l e ast m any m ore o f th em — perfo rm ed l ik e s ta rs . W hat w ould th at b e
w orth to y o u? W hat w ould i t m ean f o r th e o vera ll p erfo rm ance o f y o ur c o m pany?
Well, in 2 009, in a w orld w here o nly th e sta rs w ere se llin g to b egin w ith , it c o uld m ean th e
d iffe re nce b etw een b ankru p tc y a nd s u rv iv al. A nd i t w as i n th is h ig h-s ta kes w orld th at w e f ir s t s e t o ut
t o answ er th e q uesti o n: W hic h sk ills , b ehav io rs , kno w le d ge, and atti tu d es m atte r m ost fo r hig h
p erfo rm ance? IN S E A R CH O F A N SW ER S
T o f ig ure th is o ut, w e s u rv eyed h und re d s o f f r o ntl in e s a le s m anagers a cro ss n in ety c o m panie s a ro und
t h e w orld , a sk in g th o se m anagers to a sse ss th re e r e p s e ach f r o m th eir te am s— tw o a v era ge p erfo rm ers
a nd o ne s ta r p erfo rm er— alo ng f o rty -fo ur d iffe re nt a ttr ib ute s. A nd w hile th e i n iti a l m odel w as b uilt o n
a n analy sis of th e fir s t 700 re p s fo r w ho m w e had data — re p re se nti n g ev ery m ajo r in d ustr y ,
g eo gra p hy, a nd g o -to -m ark et m odel— we’v e s in ce in cre ase d th at n um ber to w ell o ver 6 ,0 00 r e p s a ll
o ver th e w orld as w e co nti n ue to ru n th is dia gno sti c su rv ey th ro ugh our S E C S olu ti o ns— th e
i m ple m enta ti o n a rm o f th e S ale s E xecuti v e C ouncil— gro up . A mong o th er th in gs, c o nti n uin g th at w ork
h as a llo w ed u s to d ete rm in e w heth er o r n o t th e s to ry i n th e d ata h as c hanged o ver ti m e, e sp ecia lly i n
l ig ht o f th e re cent s lo w b ut s te ad y e co no m ic re co very . A nd fo r re aso ns w e’ll re v ie w m om enta rily ,
w e’v e b een a b le to e sta b lis h q uite c le arly th at th ese fin d in gs h o ld tr u e ir re sp ecti v e o f e co no m ic
c o nd iti o ns.
So w hat e xactl y w as in th is s u rv ey? T he ta b le o n p age 1 6 p ro vid es a s a m ple o f th e r e p a ttr ib ute s
w e te ste d a s p art o f th is w ork . W e a sk ed m anagers to a sse ss a tti tu d es, in clu d in g th e d egre e to w hic h
t h eir r e p s s e ek to r e so lv e c usto m er is su es a nd th eir w illin gness to r is k d is a p pro val. W e a sk ed a b out
s k ills a nd b ehav io rs , lik e th e r e p s’ le v el o f b usin ess a cum en a nd n eed s-d ia gno sis a b ility . W e lo oked
a t a cti v iti e s, lik e re p s’ te nd ency to fo llo w th e s a le s p ro cess a nd th o ro ughly e v alu ate o pportu niti e s.
A nd , fin ally , w e a sk ed a b out re p s’ k no w le d ge o f th eir c usto m ers ’ in d ustr y a s w ell a s th eir o w n
c o m panie s’ p ro ducts .
In te rm s o f d em ogra p hic s, th e stu d y c o vere d a w id e ra nge o f se llin g m odels , e v ery th in g fr o m
h unte rs to f a rm ers , f ie ld r e p s to i n sid e s a le s r e p s, k ey a cco unt m anagers to b ro ad -b ase d a cco unt r e p s,
a s w ell a s b oth d ir e ct s e lle rs a nd in d ir e ct s e lle rs . T hat s a id , w e c are fu lly c o ntr o lle d fo r th in gs lik e
r e p te nure , g eo gra p hy, a nd a cco unt s iz e to m ake s u re th at th e r e su lts a p ply n o t o nly u niv ers a lly a cro ss
t h e e nti r e sa m ple , b ut a ls o b ro ad ly a cro ss th e w id e ra nge o f th e c o m panie s re p re se nte d in S ale s
E xecuti v e C ouncil m em bers h ip .
Fin ally , b ecause w e w ere w ork in g w ith s a le s re p s, w e h ad a v ery p ra cti c al m eans o f m easu rin g actu al p erfo rm ance, nam ely each in d iv id ual re p ’s p erfo rm ance again st go al. W hen yo u p ut it all
to geth er, w hat a ll o f th is w ork g iv es y o u i s a v ery r o bust d ata -d riv en s n ap sh o t o f r e p p erfo rm ance th at
allo w s y o u to a nsw er th e q uesti o n, “ O f a ll th e th in gs a s a le s r e p
co uld
d o w ell, w hic h o nes a ctu ally
matte r m ost fo r s a le s p erfo rm ance?” It’ s a n e xtr e m ely th o ro ugh p ic tu re o f w hat “ go od” lo oks lik e
when i t c o m es to s a le s r e p s k ill a nd b ehav io r.
We s h o uld a ls o p oin t o ut w hat w e d id
not
s tu d y. T his w ork is d efin iti v ely n o t a n e xam in ati o n o f
sa le s re p p ers o nality ty p es o r p ers o nal str e ngth s. T hat k in d o f th in g is h ard to m easu re a nd e v en
hard er to d o a nyth in g a b out. If w e w ere to te ll y o u th at “ charis m a” is h ugely im porta nt to sa le s
su ccess, y o u m ig ht n o t d is a gre e, b ut y o u’d lik ely str u ggle to k no w w hat to a ctu ally
do
w ith th at
in fo rm ati o n. S ure , o ver ti m e y o u m ig ht fin d n ew h o m es fo r a ll o f y o ur n o ncharis m ati c r e p s a nd h ir e
more o utg o in g o nes in ste ad . B ut w hile th at m ay in fa ct h elp p erfo rm ance to m orro w , it w ould b e
aw fu lly d iffic ult to e xecute p ra cti c ally , in o rd er to im pro ve p erfo rm ance to day. In ste ad , fir s t a nd
fo re m ost, w e w ante d to p ro vid e a d vic e a ro und w hat y o u c an d o r ig ht n o w w ith th e r e p s y o u
alr e a dy
hav e ( th o ugh th ere i s c erta in ly a h ir in g s to ry th at c o m es o ut o f th ese r e su lts a s w ell) .
To th at e nd , lo okin g b ack a t th e lis t o f v aria b le s, y o u’ll n o ti c e th at a ll o f th e a ttr ib ute s w e te ste d
were fo cuse d o n r e p s’
dem onstr a te d b eh avio rs
. In o th er w ord s, h o w m uch m ore o r le ss lik ely is a
re p to d o “ X ”? O r h o w e ffe cti v e i s a r e p a t d oin g “ Y ”? W e d id th at b ecause s k ills a nd b ehav io rs
are
th in gs y o u c an d o s o m eth in g a b out r ig ht a w ay. Y ou m ay o r m ay n o t b e c haris m ati c , b ut th ro ugh b ette r
co achin g, fo r e xam ple , I c an h elp y o u d o a b ette r jo b o f fo llo w in g th e s a le s p ro cess. O r, th ro ugh
bette r tr a in in g a nd to ols , I c an i m pro ve y o ur p ro duct o r i n d ustr y k no w le d ge.
This i s a s u rv ey a b out g etti n g th in gs d one. I t w asn ’t d esig ned s o m uch to d ete rm in e w hy y o ur s ta rs
are b ette r, b ut ra th er to d ete rm in e ho w to m ake yo ur co re b ette r. T hin k o f th e p ote nti a lly huge
co m merc ia l v alu e c urre ntl y l o cked u p i n th e m id dle 6 0 p erc ent o f y o ur s a le s f o rc e. W hat w ould i t b e
worth to m ake e ach o f th o se r e p s e v en j u st a l ittl e b it b ette r? O ur s u rv ey f o cuse d o n th e th in gs y o u c an
do r ig ht n o w to h elp th e c o re p erfo rm ers y o u a lr e ad y h av e a ct m ore lik e th e s ta rs th at y o u w is h th ey
were .
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