Comments on: The Two Market Forces That Killed Solution Selling Forever (Part 1)

By: Grace Schroeder

Grace Schroeder — Wed, 10 Oct 2012 02:27:58 +0000

David- thought provoking as usual. Though I am not a selling process expert, I will say that the way IT is viewed needs to change even faster than it is. Traditional views of IT are creating investments that can bring companies to their knees before decisions are depreciated. The element of “what else could I do with this money” vs. the “technology refresh” line item is game changing, as are the business people driving more technology decisions. Great read.

0 likes

By: David McNicholas

David McNicholas — Tue, 09 Oct 2012 21:23:20 +0000

Great conversations, glad to see the experienced battle field tested veterans weighing in. I agree that it is not JUST the financial numbers. In fact coming with only financial numbers can run counter to the goals and agenda of an organization in spite of how dramatic they may be. That is why the stake I am putting in the ground is: “Improving business processes that drive the executive agenda defined by hard cash flows” I will get into more detail on my next blog on this definition and understanding the profound power of fiduciary responsibility. Hope you all stay tuned.

0 likes

By: Jim Hays

Jim Hays — Tue, 09 Oct 2012 17:47:14 +0000

Tim Sullivan, while I do agree that David McNicholas did inadvertently mischaracterize the formal, trademarked Solution Selling process, this is little doubt that the traditional “solution selling” model, as practiced in the vast majority of sales organizations has worn out its welcome.

In fact, Harvard Business Review just published this article in their July-August 2012 issue, “The End of Solution Sales”.
http://hbr.org/2012/07/the-end-of-solution-sales/ar/1

That being said, I also find flaws in David’s fundamental assumption that the numbers will drive and create the sale. In a world where buyers were all completely rational beings, yes, ROI calculators could win the war…if you always had the numbers in your favor. Hell, we wouldn’t need salespeople if that was the case.

In the real world where buyers typically buy for emotional reasons and then use numbers to justify the decision, a business case can close the sale. However, it simply can’t create the sale.

I would like to suggest that all of us in the sales profession need to start re-examining our base line assumptions from Technology Push to Business Outcome Pull. Why? Because the buyer is in control now. Not the vendors. It’s as simple…and complex…as that.

0 likes

By: Dr. Jose A. Wong - Perez

Dr. Jose A. Wong - Perez — Tue, 09 Oct 2012 05:03:47 +0000

…David, I agree with you…I had read it already. Good post, and very interestig comments. Regards for both of you, from PR…

0 likes

By: David McNicholas

David McNicholas — Mon, 08 Oct 2012 19:12:40 +0000

Tim,
Thank you for your thoughts. I would encourage you to read the interview with Suzanne Kosub, Senior VP and CIO of Concentra, this Fall’s cover story and feature article in “Unleashing IT Magazine “Getting Real With ROI”. She discusses the server virtualization journey of Concentra Urgent Health Care.

Concentra is one of the largest urgent Health Care providers in the US. (article url at end of my response) The solution sell was so overwhelming in this case it was self-evident and also executed extremely well by the VAR. Despite the fact that Suzanne and the other top executives completely agreed that the solution would do things better, make their IT staff more efficient, productive and allow the hospital to be more nimble the proposal got shot down and killed. Why? The “solution sell” simply could not get to the heart of the matter for the executives which is “will it drive my executive agenda defined by hard cash flows and meet my discounted cash flow measurement criteria?”

This is the problem of our age that executives are looking for help with. It means being able to accurately monetize the business model and process model around their current solution state and the hard cash flows changing to yours will bring. Solution Selling flat out can’t do this.

Getting Real With ROI: http://www.unleashingit.com/articles.aspx?artID=F12A9

For further insight and detail here is a 6 minute testimonial from the VAR sales leader on this deal:
http://www.youtube.com/watch?v=WO-9v0oaLaY

0 likes

By: Tim Sullivan

Tim Sullivan — Mon, 08 Oct 2012 17:37:14 +0000

With respect, David, you have mischaracterized Solution Selling badly. Your postulation that “the major foundational assumption of solution selling is that a budget exists” is in error. Solution Selling begins with understanding the state of a potential buyer’s vision of how they may solve a problem – they may have a complete vision, one that is not completely formed, or no vision at all. The seller can then assist a customer in improving their envisioned solution, or in helping them to see one where none previously existed. This is not dependent on whether a budget exists – in fact, Solution Selling can help create sales opportunities based on the value of addressing the customer’s problem in a new or previously unforseen way. In other words, Solution Selling PROVIDES the ability to “translate your solution into predictable quantifiable cash flows and business results” – and I agree that this is now essential to VAR sales success today.

0 likes