The Power of 2 X 2

Posted in Sales by Keith Thompson on the November 24th, 2006

In sales automation done right I make extensive use of one of my favorite business analytical tools, the 2×2 matrix. It’s a given that if a complex idea can be framed into two counter or opposing issues, the four quadrant result of a well-planned 2×2 matrix can throw a huge amount of understanding on a problem.

One of the most well known examples is Stephen Covey’s wonderful grid for managing personal resources. Covey says that tasks should be viewed from the two aspects of importance versus urgency. Some stuff that requires urgent attention may not in fact be important, and vice versa.

For instance, Covey categorizes personal recreation as something that is important to get done, but usually not urgent (you can wait four hours until you are out of the office before having a game of tennis). Conversely, he puts many intrusive telephone calls into the urgent, but not important category. According to the quadrant that people tend to focus on most, Covey can predict whether a person is heading for burnout, or is leading a well-paced, creative and crisis-free life. The simple four quadrant perspective allows Covey to disassemble troublesome conflicts that are potentially stressful in a busy business environment such as sales. Most will have read at least one of Stephen Covey’s books, but if you haven’t, a good place to start is with First Things First, which is excellent for salespeople who want to hone up their organizational skills.

If you need to know all there is to know about the 2 by 2 matrix you should look at this book: The Power of the 2 x 2 Matrix: Using 2×2 Thinking to Solve Business Problems and Make Better Decisions. It discusses scores of examples of the four quadrant model in a host of business environments. Well worth a read.

There is a review of the above book here by business thought leader Michael Schrage. Michael’s article is interesting because he considers the 2×2 and Microsoft PowerPoint as the two most popular business analytical tools. But he also points out that they are not always used effectively. A good 2×2 is difficult to construct (we’ll take a look at my attempts in future posts). But PowerPoint especially is often thrust at audiences by presenters who haven’t put too much thought into the slides. We’ll take a look at that in the next post.

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What is Selling? – Part Two

Posted in Sales by Keith Thompson on the April 25th, 2006

The last post introduced the idea that two basic selling styles dominate the salesperson’s efforts to capture customers. We can see what the two styles are if we look closely at the idea of the conversation between customer and salesperson that happens through the sales cycle. The end game of the conversation for the customer is to obtain a product or service that will solve some form of immediate need. The end game for the salesperson is that they supply the solution to the customer, rather than a competitor.

Multiple interactions occur between the two parties throughout the sales cycle. The customer is engaged in a buying process and the salesperson is reciprocally pursuing a sales process. This is a business transaction and both customer and salesperson will be using certain sets of skills. The customer needs value, and the salesperson must show that they can provide it. Value will be determined by capability and price.

The skills that the salesperson uses can be learned or acquired through experience. The degree that he or she can use them effectively will partially determine whether they will win the sale. There will be others who present different solutions – each will have their own spin, highlighting strengths and minimizing weaknesses. The skill of the salesperson to boldly present what he or she believes to be the truth will lead to gaining the customer’s confidence.

But there is another important factor that determines selling style. The better the relationship between two negotiating parties, the more chance the deal will go through. Salespeople who have the ability to gain the respect and the loyalty of their customer will have a much more solid platform off which to build on their true selling skills. This kind of skill is usually inherited and driven by the intrinsic personality of the salesperson. In Opportunity Portfolio Management we refer to the style of relying on selling skills as being opportunity focused. The style relying on relationships to win sales is being relationship focused.

Salespeople naturally are inclined to one of the two styles, but the most successful ones are comfortable with either, and moreover, have the ability to blend the two styles to match a particular stage or point in a sales cycle. This idea is at the heart of Opportunity Portfolio Management and represents a key opportunity for salespeople, whether seasoned or newcomers, to test themselves in their strategic interactions with the customer. We’ll talk about how to do that in future postings.

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