I plead guilty to enjoying a cold beer or two, and I’ve watched with amazement as the decade-long bull market in the craft beer industry shows no signs of abating.
By Shelley Hall, principal, managing director, Catalytic Management LLC
Sales executives consistently are told to “build or rebuild your sales process to match your customer’s buying process.” This is sound advice that can shorten your sales cycle, but the question is how?
By deploying “Value Stream Mapping,” or a more in-depth version of a process flow chart, you can create a picture of your current sales process and your customer’s buying process, and then compare the two. Value Stream Mapping is a tool most often used by manufacturing companies implementing Lean manufacturing principles. But this graphical tool increasingly is being deployed to examine non-manufacturing processes such as order entry, shipping, product development, customer service, and other critical business processes.
The foundation of Value Stream Mapping is to identify waste in your process. Waste is defined as activity that does not add value for your customer. Applying the principle to a sales process can do more than just eliminate waste—it can help you:
There are two aspects to undertaking a Value Stream Mapping initiative that must be addressed:
Designing the Project Plan
When designing the project plan, using the basic framework of another process tool, Six Sigma, will keep the project on track and insure success. The Six Sigma methodology is as follows:
Define >> Measure >> Analyze >> Improve >> Control
Your Value Stream Mapping project should be planned using this methodology.
Define: Define your different customer segments. Examine them for buying differences and select the segment that either most closely resembles the norm or select the segment that represents your highest margin contribution and focus on this group. Once identified, invite two or more customers in this segment to participate in a joint Value Stream Mapping of their buying/decision process. Customers benefit in two ways: By highlighting opportunities to eliminate waste in their process, the process itself will be improved, and by having a partner who is willing to change their selling process, customers will find it easier to buy. (Note: focus on one customer at a time.)
Measure: In this step, the goal is to objectively examine and understand the current buying and selling processes and their performance. Using Value Stream Mapping, you will map your customer’s “current state buying process” and your “current state selling process.” During this phase, you should focus on the reality and not what you want the process to be. Focus on what it is without judgment.
Analyze:In this step, you and your customers analyze the buying process map to identify redundant activities, reworks, multiple approvals or reviews, and gaps where the process slows downs. The goal is to work with your customers to improve their buying process and gain insight into how to make your sales process mirror their buying process. Upon completion of the analysis, you should create a “future state buying process” map that will become the customer’s new and improved method of buying.
Improve:Improvement now focuses on your selling process. Examine your selling process in comparison to the new future state map of your customer’s buying process and the variances and differences will become obvious. You are likely to see that you have placed emphasis on the wrong steps in the selling process. You’ll see where the customers may “wait” for you to take action and, thus, where you slow their buying process. Armed with the knowledge of where your process doesn’t align with theirs, you now can reconfigure your sales process to streamline the activities and get to “yes” faster and more efficiently.
Control:The new selling process should be documented and the sales team should receive training in skills that now may have increased in importance based on the critical touch points of the buying and selling process. Your CRM and CDM systems should be customized to accommodate, support, and speed the new selling process.
The Tool: Value Stream Mapping
Value Stream Mapping is the critical tool used in measuring and analyzing your selling process and your customer’s buying process. As mentioned above, Value Stream Mapping is a more in-depth version of a process flow chart:
The addition of mapping the communication flow in a Value Stream Map distinguishes it from a process flow map and gives it additional value over the basic process flow. Don’t listen to the skeptic who will tell you that Value Stream Mapping is overly complicated and beyond what you need. In the hands of experts, it can be. But there is no need to make the project difficult, and even a simple Value Stream map will help you rebuild your sales process to parallel your customer’s buying process. Here are some suggestions on how to approach the mapping project:
The greatest value in Value Stream Mapping is its view of the communication flow—a practice always ripe for improvement. I recommend taking things one step further once you have created the new sales process and adding the communication flow to the process map (this flow is depicted above the main process flow blocks). My bet is you will find several “aha,” moments when you look at the strings of communication and see how much it resembles a plate of spaghetti. This is your opportunity to improve internal efficiency by reducing approvals or reviews, eliminating reworks, combining information, and limiting ineffective back-and-forth communication as much as possible.
Creating a sales and marketing process that mirrors your customer’s buying process will shorten the cycle, increase your closing percentage, reduce sale team frustration and create happy long-term customers. Value Stream Mapping is the perfect tool to accomplish this.
Shelley Hall is a successful entrepreneur who has built, reinvented, and turned around companies for the last 20 years. As principal, managing director of Catalytic Management, Hall delivers velocity-driven consulting that accelerates business growth through sales effectiveness, customer loyalty, and process improvement. For more information, visit www.catalyticmanagement.com.