4.3.10: My Methodology to ACCELERATE the GROWTH of companies with a consultative sales model

Introduction

While compiling strategies, processes and action plans carried out during my professional career, I have been integrating all this knowledge until it has been synthesized into a methodology that can be useful for professionals in the service sector or value-added solutions with a consultative sales model.

In this article I explain at a high level the components of the methodology -which I have called 4 .3.10- and which I have successfully applied in my last 15 years of professional career with results of development and profitable business growth and well above the average of the sector. Growths of 48%, 71%, 28% and 89% in my last four roles as manager of different units and companies of technological consultancy services, digital services and advisory (business consultancy).

The value-added services and solutions sector with an advisory sales model

While parallels can be drawn with packaged service companies and a transactional sales model or even with industrial companies selling goods, the methodology is focused on companies whose:

– main asset is specialized personnel who with their time and knowledge (capacity & skill), carry out the implementation of a solution that is created ad-hoc to solve a problem posed in a given context.

– sales model is not transactional, but consultative. That is to say, the services are not pre-packaged, nor are they goods that can be chosen via a catalogue, nor of course, what is «sold» is man hours (traditional business of what is pejoratively called technological meat). Selling requires an understanding of the problem posed and the solution can be addressed in different ways during the pre-sales process which I particularly like to call the «solution shaping» process.

Examples of this type of company are, for example, law firms, architects’ offices or, as in my particular case, consulting and technological integration service companies.

The components of 4.3.10

The components of the methodology 4.3.10

The methodology has three components: strategic areas, key processes and critical activities.

4 STRATEGIC AREAS

The 4 STRATEGIC AREAS are : Organization, Client, Talent and Portfolio and should not be confused with internal functional structures (Sales, Operations, Practices/Service Lines, etc.). In fact, each of these strategic areas requires shared decisions and alignment between the different functional structures of the company, and this requires eliminating isolated internal organizational silos, promoting communication and collaboration between the different functional structures. These four strategic areas are the foundations on which we will build and guide our day-to-day operations. It is also very important that the decisions taken in each of these four areas are consistent and balanced with those taken in the other areas.

3 KEY PROCESSES

The 3 KEY PROCESSES are: Solution shaping (or pre-sales), Go-to-market (marketing and sales) and Delivery (delivery or execution). Of course there are many more processes but these are the fundamental ones.

SOLUTION SHAPING

The Solution shaping process is the answer to create winning and profitable proposals.

Winning means that they are competitive, differentiated

Competitive because we ensure with strategic decisions taken beforehand that we carry out the activities as a whole in less time/cost than the competition. This can be achieved with accelerators, with a good knowledge management and reuse program, developing our own intellectual property, etc.

Differentiated, with a set of what, how, when and how much and above all a why, which is the strategic asset that will make us win and that is part of the foundation, of the strategy of our Portfolio.

Profitability implies that we anticipate and provide contingencies in the face of risks and uncertainties, that we correctly calculate the costs of carrying them out, as well as the hidden cost of not winning that opportunity. There are also legal aspects, such as the drafting of the contract, billing milestones, acceptance conditions, restrictions, etc.

GO TO MARKET

The Go-to-market process aims to capture and generate demand.

In order to capture demand we must evaluate in each particular case the way to achieve an optimal coverage of the customer segments that we will have previously defined. Such coverage can be achieved in a face-to-face, remote or combined way and with professional profiles that should be adapted to the objective we want to achieve, the level and type of relationship we intend to maintain with our customers. The robustness of this process will depend, among other factors, on our prior ability to provide tools to prepare our account managers in the presentation of our value proposal, to understand our differentiating elements and to deal with objections.

In order to generate demand, we must work on activities that help us create our brand, that increase our relevance, in a plan of contents, collaterals and messages that we will deliver to the market through different channels, a message that focuses more on «why» instead of «what» or «how». It will be through these messages that the client will feel curiosity or the need to evaluate an improvement that possibly was not planned.

DELIVERY

The Delivery process aims to deliver the solution or service contracted with quality to customers in a timely manner and within budget. This implies on the one hand a good management of the project/service and on the other hand an excellent planning and a flexible model of our resources that anticipates the needs of the appropriate profile during the necessary period. The 4-3-10 methodology evaluates at this point aspects such as the definition of the talent pyramid, an affordability model, knowledge and innovation management programs, resource allocation process, a specific model for scarce resources and the correct assignment of individual and service/project quality metrics. 

10 CRITICAL ACTIVITES

Their name and classification is as follows:

1. Activities for the relationship with the client: Understanding the client, knowing his sector, generating a relationship of trust, knowing how to listen to him, etc.
2. Activities for closing the sale: propose, convince, argue objections, coherently define the value proposal, negotiate, etc.
3. Activities for the creation of opportunities and hidden needs
4. Activities to position the company/proposal and/or gain relevance in the brand.
5. Activities to differentiate yourself. These, in turn, can be at the level of the company or the proposed solution/service.
6. Activities for the development of intellectual property, own innovations or exclusivity/differentiation agreements with strategic partners.It also includes activities that encourage re-use, create accelerators, optimise knowledge management, define mock-ups of innovative solutions.
7. Activities around the organisational models their sizing and affordability, objectives setting, KPIs and company culture.
8. Activities for a proper SOAR (sales opportunity approval review) , including risk analysis and assuring the company is doing the right cost calculations, something that experience has taught me is not very common and is ignored by many companies that «have always done it this way».
9. Project/service management activities, focused on finishing each project at (or before) the time, using the (or less) resources than planned and surprising the client with the quality of the result delivered and the positive impact on his organization.
10. Talent management activities, aimed at ensuring that we have the right number of resources, with the right profile and training, at the right time.

Implementation of 4.3.10

What is described in this article is just an introduction to the methodology 4.3.10 , a generic description of all its components. As with any methodology, to implement it requires templates, tools, workshops and expertly guided sessions that allow us to analyse the current situation, develop strategies for each of the 4 areas with a holistic approach, create tools to improve and make more robust the 3 key processes and define action plans for each of the 10 critical activities.  In addition, as the reader has already sensed, the methodology ensures coherence between the 4 strategy areas and the alignment of these with the key processes and critical activities.

I hope that you have found the approach of this methodology interesting and that you have been interested in the results obtained in its application in different business units. If, as a result, you are interested in deepening and implementing it to increase the potential of your service portfolio, accelerate the growth of your sales or increase the profitability of your company or business unit, I will be happy to receive a message from you to my email account ricardo.fernandez@tsdt.es or to arrange a meeting to help you.