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McKinsey - Sales Growth: Five Proven Strategies from the World’s Sales Leaders

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McKinsey Sales Growth: Five Proven Strategies from the World’s Sales Leaders

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The challenges facing todays sales executives and their organizations continue to grow, but so do the expectations that they will find ways to overcome them and drive consistent sales growth.

There are no simple solutions to this situation, but in this thoroughly updated Second Edition of Sales Growth, experts from McKinsey & Company build on their practical blueprint for achieving this goal and explore what world-class sales executives are doing right now to find growth and capture itas well as how they are creating the capabilities to keep growing in the future.

Based on discussions with more than 200 of todays most successful global sales leaders from a wide array of organizations and industries, Sales Growth puts the experiences of these professionals in perspective and offers real-life examples of how theyve overcome the challenges encountered in the quest for growth.

The book, broken down into five overarching strategies for successful sales growth, shares valuable lessons on everything from how to beat the competition by looking forward, to turning deep insights into simple messages for the front line. Page by page, youll learn how sales executives are digging deeper than ever to find untapped growth, maximizing emerging markets opportunities, and powering growth through digital sales. Youll also discover what it takes to find big growth in big data, develop the right sales DNA in your organization, and improve channel performance. Three new chapters look at why presales deserve more attention, how to get the most out of marketing, and how technology and outsourcing could entirely reshape the sales function.

Twenty new standalone interviews have been added to those from the first edition, so there are now in-depth insights from sales leaders at Adidas, Alcoa, Allianz, American Express, BMW, Cargill, Caterpillar, Cisco, Coca-Cola Enterprises, Deutsche Bank, EMC, Essent, Google, Grainger, Hewlett Packard Enterprise, Intesa Sanpaolo, Ita Unibanco, Lattice Engines, Mars, Merck, Nissan, P&G, Pioneer Hi-Bred, Salesforce, Samsung, Schneider Electric, Siemens, SWIFT, UPS, VimpelCom, Vodafone, and Wrth. Their stories, as well as numerous case studies, touch on some of the most essential elements of sales, from adapting channels to meet changing customer needs to optimizing sales operations and technology, developing sales talent and capabilities, and effectively leading the way to sales growth.

Engaging and informative, this timely book details proven approaches to tangible top-line growth and an improved bottom line. Created specifically for sales executives, it will put you in a better position to drive sales growth in todays competitive market.

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PRAISE FOR SALES GROWTH Improving sales performance with methods and tools is - photo 1

PRAISE FOR SALES GROWTH

Improving sales performance with methods and tools is a must. A refreshing change beyond the common focus on back-office and operational excellence. This book is fact-based and takes a unique customer perspective. I have no doubt that the practical insights laid out here lead to sales growth.

Michel Crochon, Executive Vice-President, Schneider Electric

Sales Growth is sales wisdom condensed in a book. I have recommended this book to many of my sales executives who tell me its helped them look at the sales function with a fresh perspective.

Joydeep Mukherjee, CEO, HR Johnson

The new edition of Sales Growth sheds lights on presales, a critically important function in sales management, but one that is often overlooked.

William Hendrickx, former President EMEA, Alcatel Lucent

Sales Growth is an outstanding book, sharing deep insights into the processes embedded in great companies. It is a must read book for any company aspiring to outperform its industry. I have personally worked on the principles the book sets out, and seen them deliver exceptional results.

Vivek Agnihotri, Executive Director & CEO, Prism Cement

This book is a must-read for sales executives in emerging markets. The research and practical ideas clearly spell out how to create a global sales strategy with a local edge.

Ricardo Villela Marino, CEO, Ita Latin America; Board Member, Ita Unibanco

The authors perspectives on the future of sales management are intriguing and thought-provoking. This book is essential reading for senior sales executives.

Sunil Rayan, Director of Sales, Google

If timing is everything, then Sales Growth has it made. We are at an inflection point where massive changes in technology and customer behavior point to growth opportunities. This book provides a critical blueprint for bridging those opportunitiesboth those in the future and right in front of us.

Richard Kellam, former Chief Customer Officer, Mars

SALES GROWTH
Five Proven Strategies from the Worlds Sales Leaders
Second Edition

Thomas Baumgartner
Homayoun Hatami
Maria Valdivieso

Sales Growth Five Proven Strategies from the Worlds Sales Leaders - image 2

Cover design: Wiley

Copyright 2016 by McKinsey & Company. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
The first edition of this book was published by John Wiley & Sons, Inc. in 2012.
Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002.

Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.

Library of Congress Cataloging-in-Publication Data:

ISBN 9781119281085 (Hardcover)
ISBN 9781119281092 (ePDF)
ISBN 9781119281061 (ePub)


Foreword

Ive always wanted to start a company. I grew up watching my father build a chain of apparel stores, and I started my first business, Liberty Software, when I was 15. A friend and I wrote computer games (Crypt of the Undead was one of our first), my grandmother wrote the music, and we sold them to Atari. In college, I ran the company out of my dorm room; I studied entrepreneurship, and interned at Apple, where I wrote code for the Macintosh and became enamored with the Think Different mind-set that permeated the organization, from the revolutionary products the company built to the pirate flag flying on the roof. Early in life, I knew I wanted to create new products, encourage revolutionary ideas, and build a distinctive culture in my businesses.

So it came as a great surprise when, upon college graduation, my entrepreneurship professors told me not to start my own business but instead get real-world experience. Specifically, they urged me to take a sales position that focused on building relationships with customers. They called it carrying a bag.

I was less than enthusiastic. A career in sales wasnt anything close to the path I had envisioned for myself. Yet this turned out to be some of the best business guidance Ive ever received. It certainly changed my life and deeply influenced the company I ultimately did create.

After graduation I accepted a job at Oracle answering its 1-800-number. I didnt want to be a 1-800-number operator, but soon I discovered that working with the customer was a lot easier and a lot more fun than writing code. It also taught me the value that guides everything we do at Salesforce today: nothing is more important than customer success, and sales is the entry point to learning how to make the customer successful.

Anyone on the front line has incredible access to information about the customer, the competition, and the changing market. Sales gives us the intelligence necessary to know our customers. deliver the right products, and compete. Its really the heart of an organization, the vital connection to the customerand far too often its overlooked.

During my career, Ive had a chance to see sales from every angle. Early on, through my work as a salesperson, I understood the value of a program that would allow people to track leads, manage contacts, and keep tabs on account information. I also knew the traditional systems we had, which were expensive to buy, time-consuming to implement, and difficult to use, could be vastly improved. Observing the trends that were happening in the consumer world, I thought that sales-force automation and customer relationship management products could better serve customers if they were sold as a service and delivered over the Internet, which would make these pivotal products faster to implement, easier to use, and far less expensive. So, in 1999 I founded Salesforce with a new technology model, the cloud; a new business model, pay-as-you-go subscription services; and a new philanthropic model, donating 1 percent of Salesforces product, 1percent of Salesforces equity and 1percent of employees time to help nonprofits fulfill their missions.

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