Project Management

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Sales and Consultancy

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Anonymous
In trying to improve our service to our clients, we are continuously trying to improve our internal processes, especially in the preparation of accurate and win-win type of project proposals. To this end, can someone offer some tips on how our sales group and business consultancy group can work together to further benefit our clients?
sales is often trying to lower the budget projected by the consultants to make the clients happy. consultants on the other hand are constrained to the functionalities and schedule already identified by the client. how can our marketing group and consultancy group work in a way that will prove beneficial for our company and the client?
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Michael Wood Project Manager / Business Analyst / Business Process Improvement Guru| Independent Contractor Gig Harbor, Wa, United States
Costs can only be reduced to a point. Sales needs to focus more on selling the increased value your projects will deliver. The only reason to lower costs is because of a lack in value. Examine the ROI your projects deliver and seek ways to improve it. Then educate sales as to how to sell value into customer sites. Maybe your budgets should be bigger not smaller.
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Robert Adams Bloomington, Mn, United States
I am the skills lead for our company in the project management area. So I deal with pre-sales a fair bit.

Michael is correct. Educating sales is way to go. As PM's we determine the cost, sales determines the price. How do you accomplish that?

A couple of techniques that have been successful for me are explaining or justifying estimates and determining metrics for measuring project success.

Justification for estimates is a perfect example of why you need to track metrics. Historical records provide guidance for the team doing estimates and backup to justify estimates to sales and/or client.
Quantifying project success is gray at best. Trying to attach some level of numbers to rate project success is sometimes beneficial. Measures are time, cost, functionality, quality and in the end over all customer satisfaction. If you are able to have the client rate the 5 areas as to how much weighting they have, then rate you performance on each piece. As we know sometimes time is more important than cost. So the cost is increased, if the driver is time to market (hate those ones) you may get a 35% weighing on time and 5% on cost. The rating * the weighting gives you a score. Add them up and get he overall project success rating.

Again, building historical records of which projects went well and which didn't is important. Once you have a track record you can see it gives more credence to your proposals. I find sales people like numbers, which is why I started trying to quantify project success. It is not a cure, but it has been helpful.

Here's a sample success measurement from a project client project we just completed did. Of course I included one where we got a good rating ;)
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1 reply by Eric Rathjens
Nov 29, 2017 5:06 PM
Eric Rathjens
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Nice simple view! Thank you for sharing.
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Michael Wood Project Manager / Business Analyst / Business Process Improvement Guru| Independent Contractor Gig Harbor, Wa, United States
Robert,
I use the same rating / weighting scheme in my package eval and selection method.

Thanks for your insights
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PARAG KANDEKAR VP Operations| SoftNice Inc Allentown, Pa, United States
Sales team should focus on Solution Sales where Sales should get convinced with what we are offering and at what cost.
Client would always have budget constraint - some are real and some are for negotiation purpose. Sales team should put solution and logic behind cost in front of customer. If customer want to reduce the cost/budget then we should have options ready by reducing scope and other factors which would be under our control. Here if customer agree to reduce scope or QA quality against matching the budget then you are taking your customer onboard on the decision and work as partners.
Still if customer want no change in scope and quality then either decide to take the project as strategic decision or say NO to the engagement/customer without regret.

Saying NO to bad project is always a GOOD Decision !!!
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Gautham NB Assistant General Manager| KGISL Business Support Services Coimbatore, Tamil Nadu, India
You should always show value to the service you provide to the customer by justifying the cost. If you are convinced that you don't want to offer poor quality of service by compromising on the cost even if the customer is ready, then you should say NO to those projects.
It is important to always maintain the reputation of providing High Quality Service, even if you have to lose few projects/clients.
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Eric Rathjens President, Strategist| Image LLC Davie, Fl, United States
Aug 10, 2001 1:21 PM
Replying to Robert Adams
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I am the skills lead for our company in the project management area. So I deal with pre-sales a fair bit.

Michael is correct. Educating sales is way to go. As PM's we determine the cost, sales determines the price. How do you accomplish that?

A couple of techniques that have been successful for me are explaining or justifying estimates and determining metrics for measuring project success.

Justification for estimates is a perfect example of why you need to track metrics. Historical records provide guidance for the team doing estimates and backup to justify estimates to sales and/or client.
Quantifying project success is gray at best. Trying to attach some level of numbers to rate project success is sometimes beneficial. Measures are time, cost, functionality, quality and in the end over all customer satisfaction. If you are able to have the client rate the 5 areas as to how much weighting they have, then rate you performance on each piece. As we know sometimes time is more important than cost. So the cost is increased, if the driver is time to market (hate those ones) you may get a 35% weighing on time and 5% on cost. The rating * the weighting gives you a score. Add them up and get he overall project success rating.

Again, building historical records of which projects went well and which didn't is important. Once you have a track record you can see it gives more credence to your proposals. I find sales people like numbers, which is why I started trying to quantify project success. It is not a cure, but it has been helpful.

Here's a sample success measurement from a project client project we just completed did. Of course I included one where we got a good rating ;)
Nice simple view! Thank you for sharing.
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Mansoor Mustafa Senior PM| Government Department Rawalpindi Punjab, Pakistan
Thanks for your insight

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