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

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Strategies for success – business development

Esther Carder and Jamie Sherman Thursday 11 June

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Survival phase Recovery phase Grow and thrive!

CRISIS REWARDS THOSE WHO TAKE SWIFT ACTION

DON’T JUST SURVIVE BUT THRIVE!

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But its how you react that determines where you land Accept there will be pain Recognise the changes needed to be made Prioritise your time Have a plan and monitor it

CHANGE BRINGS OPPORTUNITY

OPPORTUNITY PRESENTS ITSELF WHEN THERE ARE SEISMIC CHANGES IN THE WAY THE WORLD CONSUMES

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FEW SME’S RATE WELL ON BUSINESS DEVELOPMENT

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Market Insight 10 7 7 Client Insight & Feedback 10 7 7 Value Proposition(s) 10 7 7 Innovation 10 7 6 Brand Strength 10 7 7 Intellectual Property 10 7 5 Income Quality/Security 10 7 6 Shareholder/Owner Reliance 10 7 6 Low-Risk Portfolio 10 7 7 Growth Bridge 10 7 8 Business Development Processes 10 7 6 Conversion Rates 10 7 4 Key Man Commitment 10 7 8 Succession Management 10 7 7 Employee Engagement 10 7 7 Recruitment 10 7 7 Employee Turnover 10 7 8 Accurate Delivery Costing 10 7 7 Resource planning 10 7 7 Risk Management 10 7 6 IT & Data Protection 10 7 3 Finance Team 10 7 5 Sales/Profitability Analysis 10 7 3 Cashflow 10 7 7 Management Accounts 10 7 5 Business Vision 10 7 7 Strategic Capability 10 7 5 Independent Expertise 10 7 2 SMART Objectives & Strategy 10 7 3 Risks, Challenges & Opportunities 10 7 4 Business Plan 10 7 5 Forecasting Accuracy 10 7 6 KPI/Initiative Focus 10 7 4 KPI Buy-In 10 7 7 Performance Review Mechanism 10 7 4 Board Meetings 10 7 5 360 7 208 58% Maximum Good Current Clients (BD) 10 7 6.3 People 10 7 7.2 Delivery (Operations) 10 7 5.8 Finance 10 7 5.0 Vision & Strategy 10 7 4.7 Aggregate (#) 5.8 Aggregate (%) 58%

…and key findings from MKS360s are:

Many companies score less than 50%
Biggest ‘gaps’ often relate to the biggest drivers of EV…
Eg Business development
…yet most leaders are unaware and/or not managing the biggest

improvement opportunities…

…because they’re not proactively asking themselves the right

questions

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Recent MKS research into what top ‘Thriver’ businesses do differently showed that many of the ‘top 10 strategies’ relate to Business Development

“SURVIVOR TO THRIVER”: BD EFFECTIVENESS IS KEY TO GROWTH

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1.Ensuring you generate more new business

pportunities

2.Increasing your conversion rates from prospect to paying customer 3.Considerations for price pressure and increasing profit-per-sale 4.How to grow accounts and account profitability.

KEY BD CHALLENGES IN CURRENT CRISIS

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BUSINESS DEVELOPMENT FRAMEWORK

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Value Proposition Marketing Target Market Conversion Account Development Qualification

‘Origination’ ‘Sales Process’

1.Ensuring you generate more new business

pportunities

2.Increasing your conversion rates from prospect to paying customer 3.Considerations for price pressure and increasing profit-per-sale 4.How to grow accounts and account profitability.

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ENSURE YOU GET ENOUGH NEW BUSINESS OPPORTUNITES

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Target Market

‘Origination’

Value Proposition Marketing

1.Ensuring you generate more new business opportunities

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ENSURE YOU GET ENOUGH NEW BUSINESS OPPORTUNITES

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Where is the

demand likely to come from post COVID?

In which sectors

will we see growth?

Which sectors

will decline?

Wil these trends

be temporary or permanent?

Redefine your

target market

Target Market

‘Origination’

Value Proposition Marketing

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COMPETITIVE POSITION (Business Strength) MARKET ATTRACTIVENESS

High Medium Low Weak Medium Strong

EVALUATING WHERE TO FOCUS

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Market size
Market growth
Industry profit margins
Competitive intensity
Barriers to entry/exit

Relative Market Attractiveness

Relative market share
Relative brand strength
Customer relationships
Relative cost position
Market knowledge
Perceived USP

Competitive Position

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COMPETITIVE POSITION (Business Strength) MARKET ATTRACTIVENESS

High Medium Low Invest To Build Weak Medium Strong

EVALUATING WHERE TO FOCUS

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Challenge for leadership
Build selectively on strengths
Reinforce vulnerable areas

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COMPETITIVE POSITION (Business Strength) MARKET ATTRACTIVENESS

High Med Low Weak Medium Strong

EVALUATING WHERE TO FOCUS

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Limited Expansion

Look for ways to expand without

high risk; otherwise, minimise investment and rationalise

perations

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BD EFFECTIVENESS – VALUE PROPOSITION

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Target Market

‘Origination’

Proposition

Does it still

speak to our redefined target market?

Do we need

to reposition

urselves?

Marketing

Where is the

demand likely to come from post COVID?

In which sectors

will we see growth?

Which sectors

will decline?

Wil these trends

be temporary or permanent?

Redefine your

target market

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Sales Wins Premium Prices Loyalty

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VALUE PROPOSITION – WHAT’S YOUR USP?

GETTING YOUR VALUE PROPOSITION RIGHT IN RECESSIONARY TIMES IS VITAL!

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Features USPs Credentials £ Value Benefit

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MATCHING TARGET MARKET AND VALUE PROPOSITION

Market Value Proposition

Target Market

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BUSINESS DEVELOPMENT FRAMEWORK

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Value Proposition Marketing Target Market Conversion Account Development Qualification

‘Origination’ ‘Sales Process’

1.Ensuring you generate more new business

pportunities

2.Increasing your conversion rates from prospect to paying customer 3.Considerations for price pressure and increasing profit-per-sale 4.How to grow accounts and account profitability.

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QUALIFICATION AND CONVERSION

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Value Proposition Marketing Target Market Conversion Qualification

‘Origination’ ‘Sales Process’

How can we

maximize our conversion rates and ROI?

Learnings

from previous losses?

Qualification

criteria / scoring process?

How are

criteria prioritized?

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QUALIFICATION AND CONVERSION

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Value Proposition Marketing Target Market Conversion Qualification

‘Origination’ ‘Sales Process’

Focus on opportunities/accounts that will deliver greatest longer-term growth potential (“Focus 80% of resource on the 20% of opportunities that will deliver 80% of value”)

Do we

measure our conversion rates on new business wins?

What about

existing clients and new assignments?

Efficient

conversion practices

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Current environment means that all businesses are

considering costs and cash flow management with intense scrutiny.

Deferral of non-essential costs
Offering discounts – will slowly erode margins (see

example)

Be innovative and offer discounts/add scope in

different ways

Links to Value Proposition

PRICE PRESSURE AND PROFIT PER SALE – NOW MORE THAN EVER

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ACCOUNT GROWTH AND PROFITABILITY

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Value Proposition Marketing Target Market Conversion Account Development Qualification

‘Origination’ ‘Sales Process’

Active

management

f existing

accounts

What are our

client’s / customer’s key issues

Client /

customer segmentation via account planning framework

Issue-based

selling

“A 5% increase in customer retention can increase a company’s profitability by 25-95%” – Bain “Attracting new customers will cost your company 5 times more than keeping an existing customer”

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Act fast and make important decisions
Define your target market now & evaluate where to focus (competitive position vs

market attractiveness)

Develop value propositions that speak to the market! Should be different for

variety of markets/sectors ( 5 key attributes)

Effective sales process where all opportunities are qualified (Sales

process/continually adapted to experiences) and conversion rates measured

Seek independent feedback (Voice of customer)
Innovative pricing to convert opportunities and maximise revenues/profit from

existing clients/customers (Sales/profitability review)

Account development (Account planning framework & segmentation)

SWIFT BD ACTION TO BE TAKEN

IN SUMMARY

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