Getting Paid for Out of Control Projects

It could be the result of a miscalculation on your part in pricing the project, a misunderstanding on the part of the customer, etc. but particularly in complex situations, development and delivery costs can spiral out of control exceeding your contractual agreements. Especially when the relationship is new, you may be hesitant to approach your customer to ask for more money than initially agreed. Overruns in scope are common. Getting paid for them is not so common.

The things you have in your favor are that most customers know when costs are spiraling upwards particularly when the overruns are caused by their changes, delays, or demands and many will try to be fair. But understandably most customers will sit back and wait to see what you will do.

While of course, it is very important to catch the overrun early and to prepare your data for the meeting with your customer, the most important thing you can do to stop scope creep is to address it with your customer as soon as you are aware of it. Earlier is better. Later can take away much of your collection leverage but in reality later is legitimate too.

One thing for sure is that if you don’t ask, you won’t get paid. If you ask, you’ll have a good chance of succeeding. And you can stem the tide of continued overruns.

In seeking payment for out of scope work, you’ll need all of your negotiating skills, starting with your preparation and confidence. Make sure you know the customer’s perception including level of satisfaction and where he/she thinks things stand. If there is new or conflicting information, you may need time to go back and prepare your response. Meet with your customer face-to-face if at all possible. Lay out the situation and cost, make your request, and be silent. If your customer resists, acknowledge neutrally, probe, and make a second effort.

Oh, and don’t be surprised if you don’t need to make a second effort. One salesperson was pleasantly surprised after he set up a meeting to discuss the status of the project. When he met with the customer, the customer preempted him by saying, “OK, Jonathan, I’ve been waiting for this. What’s the number?” It was a big one and the salesperson got paid.

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Coaching for Sales Success

Please Join Richardson's Andrea Grodnitzky, Senior Vice President of Global Performance Solutions for her new video blog, Coaching for Sales Success. In this first installment, Andrea focuses on the importance of separating managing from coaching and defining what it takes to be successful in both areas.




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Sales Transformation

88% of companies are seeking to transform!

Before you train your sales team - assess your talent and sales process. Determine the strategies and tools to embed into your system to sustain the new learning. Then, customize your training to your business.

Questions to ask:

• Is your sales process clear and effective?



• Are the right people in the right roles?



• Is your training customized to your strategy?



• What sustainment strategies and tools do you have in place to support coaching and embed process and skills into the work stream where it will be used daily?



• What financial and customer metrics do you have in place?



• Is your training preparing your salesforce to execute your new strategy?



• Are your sales managers super salespeople or coaches?

Best Presenters’ Best Practices

Congratulations! You learned you are a finalist! You know with a few real opportunities, it’s important to win every possible deal. Just as the solution you recommend is a critical factor in winning or losing, so is your presentation.

Best Presenters’ Best Practices:

• Don’t wing it! Practice, practice, practice. Ask for feedback from your manager and team members. If it is a team presentation, practice with your team.



• Assign roles and stick to them.
  


• Make it easy for your customer to say yes:

Link your recommendations to your customer’s priority objectives — in priority order.

Incorporate the customer’s language and needs on every slide and page.

Make it a “you” presentation (meaning the customer) vs. “We will do this … we will do that … we offer.” (Meaning your company presentation. Count the you’s when you practice.)

Leverage your internal client coach (hopefully, you have developed one) to validate what you plan to present and tweak before the presentation.

• Schedule yourself for the last presentation slot so your recommendations are fresh in the customer’s minds. By presenting last, you won’t educate your customers for your competitors and you’ll leverage what the customer knows and does not know.
  


• Review a bulleted agenda and check if it meets the customer’s expectations and ask where the customer wants emphasis.



• Create an interactive presentation by checking for questions throughout. Seek a 70% (you) and 30% (customer) mix of dialogue.

Every time you make a major point, ask the customers what questions they have. This will enable you to adjust as you go.

• Pause for a second after you make major points. For example, “Over two years we achieved savings of 35%, which means …” Pause and give your customer time to let the important points sink in! Use the Period Pause by maintaining silence for a second.



• Use concise, impressive examples to bring your ideas to life. Instead of just saying, “Our system allows for X,” give a quick, specific example and check for questions. Examples increase your credibility and make what you say memorable. Without examples, your best selling points can fall flat.
  


• Incoorporate your custom’s logo, color …



• Use your presentation materials to support, not “make,” your presentation

Put a heading on the top of each slide or page, but don’t stop there.

Say “hello” to each new screen/page with a lead-in to help prepare customers. For example, rather than immediately beginning to discuss the content of the screen or page, say something such as, “Let’s now look at impressive results.”

Say “goodbye” to each slide to help your customers keep track with you with a quick benefit summary.

Although you should invite questions throughout, after your final summary, check for remaining questions. “The bottom line is, within six months you would benefit by …” “What questions do you have …”

Use and refer to sections and page numbers.

In preparing your materials, look at your material to make sure it is not crowded. Leave space and use bullets. Count your slides — one every three minutes is the maximum for most presentations.

Visit Richardson at http://www.richardson.com/ to learn more about Richardson's comprehensive sales training and performance improvement solutions.