Solution SalesOpportunity Management

Participant Guide

Contents

Introduction 7Course Description 7Objectives 7Agenda 7Information and Ground Rules 8Introductions and Expectations 9

Why Solutions? 11Solution Sales 12Attitude 12Knowledge and Skills 12Process 13Why do we want to move to Solutions? 13The Schneider Sales Process Overview 14The Schneider Selling Process 14Why Opportunity Management? 15Solution Sales Process Tools Overview 17

The Schneider Selling Process 19Understand the Business Context 19Where do opportunities come from? 19Summary 20Define the Opportunity Portfolio 21Decision Making Unit (DMU) 21Summary 21Identify and Qualify 22Process and Gates Overview 22Qualifying the Opportunity 22Opportunity Qualification Process 23Qualifying the Opportunity 23Opportunity Qualification Criteria (Gate SO) 24Opportunity Qualification Tool (Gate S0) 24Opportunity Qualification Exercise 24Summary 25

Influence and Develop 26Management of Qualified Opportunities 26Opportunity Leadership 27Opportunity Team 27Opportunity Management 28Decision Making Unit 28Relationship Suite Tool 29Opportunity Action Plan Tool 30Competitive Analysis 31RFP: Two Cases 33Request for Proposal, in which we did not influence the specification 33Bid/No Bid Decision (Gate S1) 34Opportunity Qualitfication Tool (Gate S1) 35Using the S1 Tool 35Summary 35Prepare and Bid 36Product Pricing vs Solution Pricing 36Bid Review and Approval (Gate S2) 37Summary 38Negotiate and Win 38Summary 40Deliver and Validate 40Post Sales Behavior 41Net Promoter Score 43Summary 44

Opportunity Portfolio Management 47Opportunity Management & Opportunity Portfolio Management 47Opportunity Portfolio Management 49Summary 49

Participant Guide

2011 Schneider Electric. Opportunity Management 7

IntroductionWelcome to the Solution Sales: Opportunity Management course, presented by the Energy and Solutions University. This two- day instructor led training class is targeted to all business unit sales people. The class ties the Opportunity Management process to the seven step Solution Sales Process.

Course DescriptionThis course will cover the seven steps involved in the Schneider Electric Selling Process, including the Opportunity Management Process and the Opportunity Portfolio Management Process (OPM). We will review the roles of the Opportunity Portfolio Manager, the Opportunity Leader, and the Opportunity Team. We will also discuss the role of coaching in the Sales process.

Objectives

Upon the completion of this course you will be able to

Describe the seven step Schneider Electric Selling Process.

Explain the Opportunity Management Process

Explain the roles of the Opportunity Portfolio Manager, the Opportunity Leader and the Opportunity Team

Describe the Opportunity Portfolio Management Process

Agenda1. Overview of the Schneider Electric Selling Process

a) SS Process step 1: Understanding the Business Context

b) SS Process step 2: Define Opportunity Portfolio

c) SS Process step 3: Identify and Qualify

Opportunity Qualification (SO Gate)

Unless specifically indicated otherwise within this material (whether document, manual, electronic file or video), no part thereof shall be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without written consent of Schneider Electric.

Although reasonable care has been taken in preparing this material and to provide accurate information, Schneider Electric assumes no responsibility for errors or omissions, and no liability for any consequences or damages (whether direct, indirect or consequential) resulting from its use. The information included in this material is also subject to change without notice. Information regarding updates may be obtained from Schneider Electric headquarters (1415 South Roselle Rd., Palatine, IL 60067).

2008 Schneider Electric. All Rights Reserved.

8 Opportunity Management 2011 Schneider Electric.

d) SS Process step 4: Influence and Develop

Opportunity Leadership

Decision-Making Unit analysis and mapping

Opportunity Qualification Action Plan

Decision-Making Unit analysis and mapping

Bid-No Bid Decision (S1 Gate)

e) SS Process Step 5: Prepare & Bid

Solutions Pricing

Bid review & approval to submit (S2 Gate)

f) SS Process Step 6: Negotiate & Win

Win/Loss Review

g) SS Process Step 7: Deliver & Validate

2. Opportunity Portfolio Management

3. Coaching on the Process

4. Summary & Conclusion

Information and Ground Rules

For an effective & efficient training session please be punctual, turn off all computers and cell phones ,except during breaks.

Active participation, good listening and positive criticism will make this and enjoyable and rewarding class for everyone.

There are icons in this book that denote certain activities, take a minute to familiarize yourself with the following icons and what they denote.

Icon DescriptionComputer activity, group or individualWriting activity, group or individual

Further training can be found on the Learning Center

Participant Guide

2011 Schneider Electric. Opportunity Management 9

Introductions and Expectations

Please introduce yourself, sharing the following types of information, and give at least one expectation that you have for this training class.

Name

Job title

Business Unit/Segment Focus

Location

Years with Schneider Electric

Titles you sell to

Expectations for this class

10 Opportunity Management 2011 Schneider Electric.

Participant Guide

2011 Schneider Electric. Opportunity Management 11

Why Solutions?We will begin with an overview of the Schneider Selling Process and Opportunity Management. Before we even begin the class, lets define an opportunity. An opportunity is a recognized potential sale with a customer or prospect. This definition of opportunity could refer to transactional sales, however in this class, we will be referring to managing solution opportunities.

A solution is an innovative combination of technology, products, and services providing a high value unified response to a customers business needs. This is the official Schneider definition. It comes from an article in the MIT Sloan Management Review.

Start with the customer and their needs (note: the business needs, rather than just technical) and not with our offers (i.e. in a solutions approach, we need to focus first on their stuff rather than our stuff)

Provide a response to these needs of high value we are selling value unified there has to be some glue or synergy to justify keeping all the parts of the solution (response) together.

A combination of technology, products and services; whatever it takes to meet the customers goals or solve their problem. (note: by technology we can think machine intelligence, software, monitoring & communications, integration). Not all of these elements need to come from Schneider. We can outsource or subcontract elements as required, or in some cases we may provide some elements of a solution that is being fronted by one of our partners.

Innovative combination means that the more we can meet the customers goals or solve their problem in a new, creative or different (differentiated) way, the more we can shut our the competition. (This does not mean that we cant be efficient and re-use certain building blocks or standard architectures).

When managing an opportunity/opportunities in the Schneider Selling Process versus . managing a

Opportunity-a recognized potential sale with a customer or prospect.

Solution-an innovative combination of technology, products, and services providing a high value unified response to a customers business needs.

12 Opportunity Management 2011 Schneider Electric.

transactional opportunity, there are many different things you must be aware of.

Solution SalesSolution Selling is about how we sell, rather than what we sell. Solution Selling starts with the customer. What we finally deliver will often be a combination of products and services.

Schneider is not abandoning transactional sales. We want to move from transactional sales to transactional sales and solution sales.

The key differences between managing opportunities for solution sales and transactional sales are attitude, knowledge and skills, and process.

Attitude

Focus on the customers business, not on our offer

Objective to help the customer meet an important goal or solve a key issue, not just to push products or equipment

Curiosity and determination to make the customer successful

Cooperation and coordination: Sales team execution of a defined influencing strategy is needed

Knowledge and Skills

Customer & Business knowledge: know your targeted customers, and the key trends affecting them in their market

Speak the customers language, not just electro-technical terminology. This means also being able to discuss business and financial issues (cost reduction, ROI, business value, profitability, market share, image)

What, in your opinion, are the key differences between soltuons sales and transactional sales?

Why do you think that Schneider Electric wants to move to Solution Sales?

Participant Guide

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Ability to address a larger, more complex Decision Making Unit (DMU) higher in the customers hierarchy

Capability knowledge: broad knowledge of