© 2009 Factory Strategies Group LLC. All rights reserved. Lean Sales Lean Enterprise Series

2 © 2009 Factory Strategies Group LLC. All rights reserved. Outline 1.Introduction to Lean Sales 2.Cost of Sales 3.Three Keys to Lean Sales 4.Implementing Lean Sales 5.Summary

3 © 2009 Factory Strategies Group LLC. All rights reserved. Lean Sales Two ways to think about leaning the sales process To examine the process itself- how sales are made and orders handled Look at the artificial incentives built into most selling processes that cause uneven demand Great potential Synchronizes with customer needs that drive profitability Sales Bonuses Customer Discounts

4 © 2009 Factory Strategies Group LLC. All rights reserved. Lean Sales Lean thinking helps leaders undertand the role of advertisements, call centers, newsletters and salespeople in the overall sales production system Six Sigma enables an organization to learn why promotions generate various response rates and why each salesperson has different closing ratios Lean sales provide the facts you need to decide between investments such as ▫ Promotions vs. Salespeople ▫ Websites vs. Collateral ▫ CRM software vs. Sales training With lean thinking, there is a new and better way of leading marketing and selling organizations

5 © 2009 Factory Strategies Group LLC. All rights reserved. Cost of Sales Sales Costs include: ▫ Salary ▫ Benefits ▫ Travel Expenses According to a recent white paper published by the Manufacturers Agents National Association, the cost of a physical sales call has risen to over $350 The estimated annual cost of a salesperson has risen to $160,000.

6 © 2009 Factory Strategies Group LLC. All rights reserved. Three Keys to Lean Sales Sales Managers should be handling the changes of the corporation and keeping the salespeople: ▫ Insulating the sales team from the pressures of reports, programs of the month and VP‘s or owners ▫ Sales managers need to take the heat from the top, so the sales team can keep focused on bringing in more business ▫ Sales managers establish company or team sales goals and coordinate training programs for sales representatives ▫ Sales managers monitor sales statistics and customer satisfaction and make adjustments to sales strategies as needed Sales Managers Sales Managers should not have their own accounts and/or territory.

7 © 2009 Factory Strategies Group LLC. All rights reserved. Implementing Lean Sales Specify Value Identify Value Stream Flow Pull Perfection Principles

8 © 2009 Factory Strategies Group LLC. All rights reserved. Successful Lean Sales Companies find it easy to begin with Category 1 projects, as they are easy to map, identify, and visualize. Metrics and data based on the process performance are easy to gather and classify The processes included can be repeated in a coherent manner Create improvements in the effectiveness of internal processes, but aren’t able to solely produce revolutionary results that attribute Lean initiatives Category 1