Consultative Selling/Mac Hanan 15-16

16 The second responsibility makes it necessary to learn how to convert technical values into economic values, in other works, to translate operating performances specifications into financial specifications.

The first responsibility introduces you to the customer's world of management acronyms.

• You have to know each customer manager's CSFs (critical success factors) that compose the 20 percent of all the factors that person must manage that contribute 80 percent or more to success.
• You have to know each customer manager's KPIs (key performance indicators) by which his or her success in managing the critical factors is measured and the objectives for improving them that each manager is tasked with. For each KPI yo have to know the industry BOB (best of breed) or BP (Best Practice) against which your manager partners are being evaluated by their top managements.
• You have to know the EVA (economic value added) that each customer manager is currently contributing to total profits, and you have to learn the economic value you are able to contribute over and above the current EVA. This is your product. Its value in dollars and time becomes the basis for your price.