Frank J. Casale Founder and CEO The Outsourcing Institute

A Message From Frank Casale
One of the many challenges facing you and your outsourcing sales force is getting to the CEO. If you are one of the fortunate and experienced few who make it to this high altitude on the org chart, you know that the real work has just begun. The key at this point is to know what to do, what to say and how to say it. During a recent discussion with the VP of Outsourcing for a nationally known provider this issue was addressed head on. “It has taken me over a year to get my sales team to get to the ‘C-level’ with their target accounts. The good news is that they are getting there, the bad news is that we are just now realizing that they do not know how to sell at that level - it’s really quite different!”

The CEO is not the only decision-maker …and depending on the size and scope of your solution, he or she may not be the primary decision-maker. However, with the commitment that is required from all parties in outsourcing deals and the fact that you want to propose a strategic solution, it is imperative you establish a consultative dialogue with the CEO as early in their process as possible.

This Outsourcing Minute is directed to you, the vendor, to start you thinking about how you are handling your sales process and share some tips and tactics that could help you do more deals with better results. Read on for more pointers on understanding your role in the sales process, what your buyers are looking for and, most importantly, how to improve your chances for success.

Good Luck and Good Selling
Please send any feedback to:
oifeedback@outsourcing.com

Who Are You Selling to These Days?

There is a clear difference in the outsourcing sales process from the traditional sales process. More so than any other industry, the outsourcing sales process involves a multi-level sale that clearly involves the upper executive level. This edition of the Outsourcing Minute focuses on something every outsourcing service provider is interested in – how to sell to the CEO.

The traditional sales process normally involves selling to one particular level within the organization. Understanding that level’s needs, bottom line and, in general, their language and “hot buttons”, is crucial to understanding how to approach them from a sales perspective. Conversely, the outsourcing sales process involves an understanding of multiple levels within an organization and what their specific concerns are, making the process far more complex. Here are several guidelines to help you succeed in getting through to, presenting to, and following-up with the ultimate decision-maker.

Target by industry. Selling to a CEO requires more homework than selling to a department head. Since it takes time to understand their organization, the industry, and the competitive playing field, the first step when targeting a company is to do an industry analysis. Most CEO’s are looking for “the next big idea”. Investigating one industry at a time will allow you to uncover strategic advantages and challenges. This way when you call on several CEOs in similar industries you will have a compelling reason to meet with them.

Develop your sound byte. Once you’ve uncovered the industry issues and determined your specific value proposition, turn it into a sound byte, a concise message that is meaningful and memorable.

Sell economic value. Learn how to speak to the CEO on his or her level. To do this, you must communicate the economic impact and justification through something every CEO understands, ROI - Sell Economic Value. Clearly articulate the bottom line and the intrinsic benefits as they apply to the CEO, including freeing up his or her time to focus on the health and growth of the company.

Know their business - strategically. All organizations have a business model, which keeps them focused on how they should make money. Top organizations have distinctive strategies that separate their core elements from competitors. Knowing an organization’s business model, their competitor’s models, and the distinct differences will help position outsourcing as a strategic advantage. Furthermore, speak at a strategic level. The CEO already has enough on his or her plate. By convoluting the process with too many details, you run the risk of losing the interest and attention of your strategic-minded audience.

Link your solution to their vision. Generally speaking, a manager helps their people become more productive; a department head helps the department become more profitable; and a CEO determines where the organization is now, where it should be in the future and how to get there. Make your solution a core component of the bridge from where the organization is, to where it should be.

Let them change the idea. When a CEO starts running with your idea and changing it, this is usually a sign that they have bought into your idea. What they’re doing is thinking it through in terms of their perspective. Although it may seem like they’re straying far from your idea, they are actually moving closer to acceptance. And if you see this happening, know your interim close (next step to move to the process forward.) You are the expert in outsourcing –not them. They will only work with you if have the confidence to quickly show them how the process works and exactly what the next steps are.

Build trust. And, most importantly, build trust. According to Robert G. Reiss, Managing Director at Stuart Levine & Associates, whose mission is to help CEOs lead successful transitions and transactions, the process of selling to a CEO involves “building trust, uncovering need and then backing up that need with a business case.” Reiss adds, “Trust is critical. Unless you are able to build trust with the CEO by establishing who you know, how well you know them and how you got to the CEO, chances are you will not be able to move on to the next step in the sales process.”

Using these tips will help your outsourcing sales process. However, before companies can even begin using these tools effectively, an underlying mind shift has to take place. Vendors accustomed to selling short-term, more task-oriented services to middle management, for example, are struggling to make the transition to selling long-term, more complex services to a much higher level, more sophisticated executive. To transition from a traditional sales model to an outsourcing sales model, you have to be prepared to reinvent your company - revisit your business model and you need to do this quickly in today’s competitive business climate.

According to John R Fischer, CEO of Fishbone Inc., “Providers need to implement a structured, winning opportunity assessment process and corresponding value proposition, assess their executive sales strategies and build a “CEO” business case and financial business impact model. This also includes the funding of new marketing budgets, new personnel and a definitive new mindset.”

Overall company culture transformation to an outsourcing sales model and understanding how to sell to the CEO are key elements to unlimited success in outsourcing sales. To gain valuable statistics and further information on the sales process, access The Outsourcing Institute Fifth Annual Index.