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a16z Go-To-Market Boot Camp
Today’s Presenters
Mark Cranney, Operating Partner
Global Field Operations, Sales Leadership
Tom Butta, Partner
CMO, Chall...
To provide you with Go-To-Market processes, best practices and
templates required to:
•  Validate the right model for your...
a16z Go-To-Market Boot Camp
ASSESSING YOUR COMPANY’S DNA
Customer
Success
Field
Sales
Inside
Sales
a16z Go-To-Market Boot Camp
Marketing & Lead
Generation
Value Proposition
Demand...
Build & Enrich Customer Pipeline
Marketing & Lead Generation
Market Positioning Model,
Brand Elements Pyramid,
Message Sta...
New OpportunityContactedAttempting
Inside Sales
Inbound Lead
Prioritization, Outbound
Prospecting
Email Templates,
Outreac...
Field Sales
Deploy and
Develop
Discovery Tool,
Value Framework
Discovery Tool,
Value Proposition
Template, ROI
Tool, On-De...
Close Renewal &
Up-Sell Cross-Sell
Customer Success
Opportunity Plan, Project
Implementation Plan,
Implementation Review
C...
Upper level management makes a purchase
and forces its use down the organization
Level of Entry: High
Value Justification: ...
I N D U S T R Y
P E R S P E C T I V E S
a16z Go-To-Market Boot Camp
M A R K E T I N G
Build & Enrich Customer Pipeline
Marketing & Lead Generation
Market Positioning Model,
Brand Elements Pyramid,
Message Sta...
Marketing’s Role
BUILD
CUSTOMER PREFERENCE &
ELICIT LOYALTY
BUILD
A POWERFUL POSITIONING
PLATFORM
GENERATE
AWARENESS &
CRE...
The Modern Marketing Organization
Sales
Product
Management
Content Marketing
Marketing Operations
Product
Marketing
Demand...
Value of Market Segmentation
Prioritizes where
investments will
yield highest return
Aligns sales,
marketing, and
product ...
Aligning Use Cases & Impact by Audience – Template
CxO
Manager
Individual User
(Project, Team, Function)
(e.g. Developer, ...
Value
Proposition
Competition
Segmentation
Landscape
Usage
Market Positioning Model – Template
© 2015 - Andreessen Horowit...
Building Out the Platform
Brand Positioning Platform
Foundational Elements
Sell Sheets · Presentations · Media Relations ·...
Generate Awareness & Create Demand
Define Your
Campaign Audience
Design A
Campaign Strategy
Manage Campaign
Workflows
Measur...
Campaigns: Creative Treatment
Design: Campaign Planning Template - Example
Campaign
Name
Campaign
Objectives
Campaign
Duration
Campaign
Components
Targe...
Measure the Results: KPIs and Benchmarks
Inquiry/Response
INBOUND:
Web site
Social media
PR coverage
OUTBOUND:
Digital Mar...
Contact to Contract Process
Contact
(New Inquiry/
Response)
Attempting Contacted
Marketing
Qualified
Lead
Sales
Accepted
Le...
Lead Management: Nurturing and Drip Campaigns
Example:
Feb 14: Offer 2
(white paper)
Mar 30: Offer 4
(free trial)
Feb 1: Offe...
I N D U S T R Y
P E R S P E C T I V E S
a16z Go-To-Market Boot Camp
I N S I D E S A L E S
New OpportunityContactedAttempting
Inside Sales
Inbound Lead
Prioritization, Outbound
Prospecting
Email Templates,
Outreac...
Inbound Prioritization
H O T L E A D S — C A L L A S A P
Response time affects conversion rate
Remember, the minute a hot l...
Referral
Outbound Priority
C A L L H I G H — G E T R E F E R R A L
Referral
Executive Champion Evaluator
Outreach Execution
L E V E R A G E A L L A N G L E S
Call
Email
Google+Facebook
VerifieduserTwitter
Voicemail
Github
Example Prospecting Strategy
“ 8 3 % O F H I G H P E R F O R M E R S H A V E A D E F I N E D S T R A T E G Y A N D M A K E...
Keep it
Short
Readable on
Handheld
Clear Call
to Action
One Call to
Action per Email
Value
Statement
Clear, Concise
Value ...
Track It!!
H O W D O Y O U K N O W I F T H E P R O S P E C T O P E N E D Y O U R E M A I L , A N D W H E N T H E Y O P E N...
Objection Handling
© 2015 - Andreessen Horowitz | Proprietary & confidential, all rights reserved worldwide.
Inside Sales to Sales Handoff
A S U C C E S S F U L H A N D O F F : T H E D E V I L I S I N T H E D E T A I L S
Create cale...
Key Metrics - Template
CALLS/DAY: ___
EMAILS/DAY:___
CONVERSATIONS/DAY: ___
AVERAGE TALK TIME:___
MEETING/WEEK:___
OPPORTU...
I N D U S T R Y
P E R S P E C T I V E S
a16z Go-To-Market Boot Camp
F I E L D S A L E S
Field Sales
Deploy and
Develop
Discovery Tool,
Value Framework
Discovery Tool,
Value Proposition
Template, ROI
Tool, On-De...
Selling is Simple
J U S T A N S W E R T H E S E 3 Q U E S T I O N S :
Why Now?Why do anything? Why your company?
© 2015 - ...
Sales Process
I T A T E A M S P O R T ! ! !
S U P P O R T I N G A C T I V I T I E S A N D R E S O U R C E S
Through A Non-...
Develop the Value Framework
Business
Strategies
Initiatives
Solution Set
Critical Capabilities
ObjectivesStep 1: Focus is ...
Step 1: Build and Test
Your Value Statement
Creating the “Unique” Value Proposition
Critical
Capabilities
Solution SetCorp...
Opportunity Management & Account Planning
M A N Y M O V I N G P A R T S …
Funding
Process
Account
Plan
Validation
Competit...
Business
Strategies
Initiatives
Solution Set
Critical Capabilities
Objectives
Focused on and accountable for
Aware of and ...
Typical Use Cases
Green field,
differentiated,
both (why
anything, why
you, why now)
Scope
Applicable
subset
Benefit
Areas
It...
Summary of ROI Analysis (Example)
$ 1 4 . 5 M M I N A N N U A L S A V I N G S I D E N T I F I E D
$3,744,396
$2,713,425
$6...
Components of a Proposal
C H E C K L I S T
Quote with
Terms
✓
License
Description
✓
Statement
of Work
✓
Tech Validation
& ...
Deal Review Process
Account Plan
and Competitive Strategy
Proposal
Structure
Strategy
Options
Quote & Terms
License Desc
S...
Forecasting Best Practices
Q U A L I F I C A T I O N C R I T E R I A
M
E
D
D
I
C
C
Metrics: Quantifiable measurements of th...
Forecasting Best Practices
F O R E C A S T I N G O U T L I E R S
Sales Stage
! Current Quarter "
Week 1 Week 2 Week 3 Week...
I N D U S T R Y
P E R S P E C T I V E S
a16z Go-To-Market Boot Camp
C U S T O M E R S U C C E S S
Close Renewal &
Up-Sell Cross-Sell
Customer Success
Opportunity Plan, Project
Implementation Plan,
Implementation Review
C...
Program, Delivery, and Project Management
•  Responsible for managing long-term
PS relationship with customer
•  Manages m...
Training Services & Support Programs
E S C A L A T I O N P R O C E S S E X A M P L E
Standard Escalations Code Red Code Bl...
Customer InterviewCustomer Questionnaire Customer Facts Doc
Guide consistent interviews and
facts gathering aligned with
r...
Driving Customer Lifetime Value
T H E M A J O R I T Y O F R E V E N U E I S G E N E R A T E D A F T E R T H E I N I T I A ...
Maximizing Lifetime Customer Value
Lifetime
Customer
Value
Churn
a16z Go-To-Market Boot Camp
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Go-to-Market Best Practices for Startups

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Looking to scale something up? Depending on how you're going after your market/ acquiring users, you may need to build a sales organization that's optimized for a top-down or bottom-up sales process (or perhaps both).

Watch the video overview at and then check out this slide deck, which shares some concrete tips and tools for accelerating time to market -- from the go-to-market experts at a16z, led by 'sales savant' Mark Cranney.

Because selling to enterprises is a lot like getting a bill passed through Congress: it can get stuck. And getting stuck -- or going down the wrong path -- can mean death to startups in a competitive market. Here's how to avoid that.

Go-to-Market Best Practices for Startups

  1. a16z Go-To-Market Boot Camp
  2. Today’s Presenters Mark Cranney, Operating Partner Global Field Operations, Sales Leadership Tom Butta, Partner CMO, Challenger Brand Expert Mahesh Iyer, Partner Demand Generation, Campaigns Jaimie Buss, Partner Sales Development, Channel Sales
  3. To provide you with Go-To-Market processes, best practices and templates required to: •  Validate the right model for your business •  Optimize your sales and marketing efforts •  Hire the right executives •  Reduce your time to market •  Insulate yourself from competition •  Provide situational awareness and direction to scale efficiently Boot Camp Objectives
  4. a16z Go-To-Market Boot Camp ASSESSING YOUR COMPANY’S DNA
  5. Customer Success Field Sales Inside Sales a16z Go-To-Market Boot Camp Marketing & Lead Generation Value Proposition Demand Creation Lead Nurturing New Attempting Contacted New Opportunity Implementation, Training, and Support Nurturing & Creating New Opportunities Closing Renewals, Up-Sells, and Cross-Sells Identify Initiatives Create Value Proposition Execute Competitive Strategy Validate Solution & ROI Propose Solution Negotiate & Close Deploy & Develop
  6. Build & Enrich Customer Pipeline Marketing & Lead Generation Market Positioning Model, Brand Elements Pyramid, Message Stack Campaign Plan, Design Template, Content Framework, Activity Calendar, Reports & Dashboards Contact to Contract Workflow, Lead Scoring Framework, Nurture Programs Establish Lead Process • Qualify & Nurture Leads Define Campaign Audience • Design Campaign Strategy • Manage Campaign Workflows • Measure the Results • Refine & Optimize Identify Target Market & Buyers • Define Competitive Advantage • Establish Positioning Platform Generate Awareness & Create Demand Define Value Proposition
  7. New OpportunityContactedAttempting Inside Sales Inbound Lead Prioritization, Outbound Prospecting Email Templates, Outreach Cadence Qualification Framework, Call Scripts, Objection Handling Qualify • Establish Value • Close for Next Steps Call Preparation• Outreach Execution • Social Engagement Lead Prioritization New Sales Development to Account Exec Hand-off Metrics and Tracking Templates
  8. Field Sales Deploy and Develop Discovery Tool, Value Framework Discovery Tool, Value Proposition Template, ROI Tool, On-Demand Demo Discovery Tool, Account Plan, Competitive Traps, POC Lockout Document POC Lockout Document, RFI/ RFP Responses, ROI Model, Scoping Document Proposal Template, Quote Tool, ROI Model, Deployment Plan, Standard Contracts, SOW Final Contracts Deployment Plan Penetration, Discovery and Qualification Sell Value, Qualify & Test, Develop Champions Establish Political Alignment, Execute Competitive Strategy & Influence Buying Criteria Position, Manage & Execute Validation Process Confirm Decision Process & Propose Solution Finalize Negotiation & Close Partner Negotiate and Close Propose Solution Validate Solution & ROI Executive Competitive Strategy Create Value Proposition Identify Initiatives
  9. Close Renewal & Up-Sell Cross-Sell Customer Success Opportunity Plan, Project Implementation Plan, Implementation Review Checklist, Training Materials, Status Reports Proof Point Template, Executive Scorecard, Value Proposition, Opportunity Plan, Account Plan Proposal Template, Quote Tool, Negotiation Planner, Standard Contracts, SOW Negotiate and Close Renewal • Opportunity Confirm Value Created • Collect Proof Point • Identify and Develop Additional Opportunities Confirm Internal Alignment • Resource Allocation • Deployment Success Criteria • Managing the Milestones, Measuring Impact Nurture Account & Create Opportunity Implementation, Training & Support
  10. Upper level management makes a purchase and forces its use down the organization Level of Entry: High Value Justification: Priority at the top, with support from key stakeholders below Sales Strategy: Hire Salespeople with sales experience for face-to-face sales (expensive) Sales Cycle Length: Long Avg. Sales Price: $$$$ Higher Revenue Model: A few sales may be all you need Top Down Approach Top Down vs. Bottom Up (User Acquisition Model) Individual users (typically at the lower, more technical levels) begin using the solution and adoption grows organically Level of Entry: Low Value Justification: Everyone buys in, every day Sales Strategy: Initially viral, web-based (inexpensive) Sales Cycle Length: Short, Viral Avg. Sales Price: $ Lower (but scales) Revenue Model: Requires high volume of customers paying small amounts each Bottom Up Approach Executive Director · Manager Individual Contributor
  11. I N D U S T R Y P E R S P E C T I V E S a16z Go-To-Market Boot Camp M A R K E T I N G
  12. Build & Enrich Customer Pipeline Marketing & Lead Generation Market Positioning Model, Brand Elements Pyramid, Message Stack Campaign Plan, Design Template, Content Framework, Activity Calendar, Reports & Dashboards Contact to Contract Workflow, Lead Scoring Framework, Nurture Programs Establish Lead Process • Qualify & Nurture Leads Define Campaign Audience • Design Campaign Strategy • Manage Campaign Workflows • Measure the Results • Refine & Optimize Identify Target Market & Buyers • Define Competitive Advantage • Establish Positioning Platform Generate Awareness & Create Demand Define Value Proposition
  13. Marketing’s Role BUILD CUSTOMER PREFERENCE & ELICIT LOYALTY BUILD A POWERFUL POSITIONING PLATFORM GENERATE AWARENESS & CREATE DEMAND The Chief Storyteller © 2015 - Andreessen Horowitz | Proprietary & confidential, all rights reserved worldwide.
  14. The Modern Marketing Organization Sales Product Management Content Marketing Marketing Operations Product Marketing Demand Generation & Field Marketing Communications & Influencer Marketing Business Operations/IT Sales Operations Customer
  15. Value of Market Segmentation Prioritizes where investments will yield highest return Aligns sales, marketing, and product development Enables tailored messages and selling strategy
  16. Aligning Use Cases & Impact by Audience – Template CxO Manager Individual User (Project, Team, Function) (e.g. Developer, Administrator) •  Revenue •  Cost •  Risk •  Speed CxO •  Cost •  Efficiency •  Collaboration •  Quality Manager •  Ease of use •  Time •  Innovation Individual User
  17. Value Proposition Competition Segmentation Landscape Usage Market Positioning Model – Template © 2015 - Andreessen Horowitz | Proprietary & confidential, all rights reserved worldwide. •  Persona analysis: a day in the life •  Path to solving problems •  Practical & emotional benefits •  Product feature prioritization re: what customers care most about •  Customer ROI matrix (time, cost, risk, value) •  Company impact dashboard: revenue, customers, market share, market impact •  Value roadmap – how to win •  Forces driving change •  Impact on category & growth •  Market segments, size & potential •  Current & potential value matrix •  Definition of users, buyers, decision makers, influencers •  Core issues by audience •  Understanding of urgency to solve problems + how solved today •  Analysis of which segments and targets covered by competitors •  SWOT assessment by competitor •  Unique capabilities and IP •  Comparative capabilities on how & why different/better •  Holistic strengths of company Economic Impact Use Cases Differentiation Trends Segmentation Target Audience Landscape
  18. Building Out the Platform Brand Positioning Platform Foundational Elements Sell Sheets · Presentations · Media Relations · Analyst Relations · Website Thought Leadership Content Campaigns
  19. Generate Awareness & Create Demand Define Your Campaign Audience Design A Campaign Strategy Manage Campaign Workflows Measure the Results Refine & Optimize
  20. Campaigns: Creative Treatment
  21. Design: Campaign Planning Template - Example Campaign Name Campaign Objectives Campaign Duration Campaign Components Target Audience/ Segment(s) Key Messages Campaign Goals Campaign Budget Expected Campaign ROI ($$) Next-gen Analytics Campaign Introduce a new breed of analytics and generate interested prospects Feb – Apr (90 Days) 2-part Webinar Series, Exec Brief, Technical Whitepaper, Buyer’s Guide, Display Ads, AdWords, Tech Summit CDO, Data Scientists, VP IT Ops Prescribe next best action based on inline insights, Blow away the competition with real-time graphs & dashboards •  1,500 responses •  15 Optys •  $3M pipeline •  4 Deals •  $1m closed bookings $200k 5X Program Spend to Bookings ROI Secure First Campaign Generate preference and consideration for battling modern APT with xyz Threat Intelligence Platform Jun – Nov (180 Days) Cyber-Security Symposium, Analyst Roundtable, Executive Brief, CIO Summit, Tech sponsorship, Whiteboard & Videos CISO, CIO, CSO, Security Architect, Fraud & Risk analysts Smart Prevention Real-time detection & mitigation Intelligent Threat Profile Engine •  1,500 responses •  12 Optys •  $6M pipeline •  4 Deals •  $2M closed bookings $300k 7X Program Spend to Bookings
  22. Measure the Results: KPIs and Benchmarks Inquiry/Response INBOUND: Web site Social media PR coverage OUTBOUND: Digital Marketing Events Webinars Marketing Qualified Lead Jointly define MQL criteria with sales (e.g. by lead score, by title/company, industry, etc.) Sales Accepted Lead (aka Pre-Opportunity) Sales Qualified Lead (aka Opportunity) Closed Won ($$$ Bookings) Lead Conversion Rate Benchmarks (source: SiriusDecisions) SaaS: Traditional: 21% 50% 38% 21% 8% 72% 65% 27% 8 closed won per 1,000 inq/resp 10 closed won per 1,000 inq/resp •  New Inquiries/Responses Generated •  Sources of Inquiries/Responses •  Cost per Inquiry/Response •  Number of Touches to Qualify KPIs •  Number by Source (Quantity) •  Conversion Rate (Quality) •  Duration in Stage (Velocity) At each stage in Funnel: •  New Inquiries/Responses Generated •  Sources of Inquiries/Responses •  Cost per Inquiry/Response •  Number of Touches to Qualify Pipeline and Closed Business
  23. Contact to Contract Process Contact (New Inquiry/ Response) Attempting Contacted Marketing Qualified Lead Sales Accepted Lead Sales Qualified Lead Contract (Closed Won Deal)
  24. Lead Management: Nurturing and Drip Campaigns Example: Feb 14: Offer 2 (white paper) Mar 30: Offer 4 (free trial) Feb 1: Offer 1 (case study) Mar 1: Offer 3 (webinar) Analyst Report Product Announcement Quarterly Newsletter Quarterly Newsletter Drip Campaign: Long-term lead nurturing campaign: No response or not sales ready Yes: remove from drip No: remain in drip Lead score threshold met. Triggers sales follow-up. Send offer every 7-30 days (based on campaign and sales cycle) Score triggers inside sales follow-up to determine sales readiness Opt-out option with every touch: it’s a legal requirement Database segmentation is critical: don’t look uncoordinated
  25. I N D U S T R Y P E R S P E C T I V E S a16z Go-To-Market Boot Camp I N S I D E S A L E S
  26. New OpportunityContactedAttempting Inside Sales Inbound Lead Prioritization, Outbound Prospecting Email Templates, Outreach Cadence Qualification Framework, Call Scripts, Objection Handling Qualify • Establish Value • Close for Next Steps Call Preparation• Outreach Execution • Social Engagement Lead Prioritization New Sales Development to Account Exec Hand-off Metrics and Tracking Templates
  27. Inbound Prioritization H O T L E A D S — C A L L A S A P Response time affects conversion rate Remember, the minute a hot lead is created, the clock is ticking.
  28. Referral Outbound Priority C A L L H I G H — G E T R E F E R R A L Referral Executive Champion Evaluator
  29. Outreach Execution L E V E R A G E A L L A N G L E S Call Email Google+Facebook VerifieduserTwitter Voicemail Github
  30. Example Prospecting Strategy “ 8 3 % O F H I G H P E R F O R M E R S H A V E A D E F I N E D S T R A T E G Y A N D M A K E 4 – 8 A T T E M P T S . ” – K I N S E I P A R T N E R S Outbound Only 24 hrs. 48 hrs. No Connect: Send email Connect: Qualify in/out Last Chance: Email/Voicemail “Are you still interested?”
  31. Keep it Short Readable on Handheld Clear Call to Action One Call to Action per Email Value Statement Clear, Concise Value Statement © 2015 - Andreessen Horowitz | Proprietary & confidential, all rights reserved worldwide. Anatomy of an Effective Email
  32. Track It!! H O W D O Y O U K N O W I F T H E P R O S P E C T O P E N E D Y O U R E M A I L , A N D W H E N T H E Y O P E N E D I T ? Applications like ToutApp allow you to: Collaborate on email templates, increasing efficiency Measure email open rates, optimizing effectiveness Track when emails are opened in real time
  33. Objection Handling © 2015 - Andreessen Horowitz | Proprietary & confidential, all rights reserved worldwide.
  34. Inside Sales to Sales Handoff A S U C C E S S F U L H A N D O F F : T H E D E V I L I S I N T H E D E T A I L S Create calendar invites Send letter of understanding Send email reminder to client day of call/ meeting Launch Call, introduce both parties Post-call analysis: Was it a qualified call?
  35. Key Metrics - Template CALLS/DAY: ___ EMAILS/DAY:___ CONVERSATIONS/DAY: ___ AVERAGE TALK TIME:___ MEETING/WEEK:___ OPPORTUNITIES CREATED CLOSED/WON OPPORTUNITIES Calls/Emails to Conversations: 15% Conversations to Meetings: 50% Meetings to Opportunities: 50% Opportunities to Wins: 25–30%
  36. I N D U S T R Y P E R S P E C T I V E S a16z Go-To-Market Boot Camp F I E L D S A L E S
  37. Field Sales Deploy and Develop Discovery Tool, Value Framework Discovery Tool, Value Proposition Template, ROI Tool, On-Demand Demo Discovery Tool, Account Plan, Competitive Traps, POC Lockout Document POC Lockout Document, RFI/ RFP Responses, ROI Model, Scoping Document Proposal Template, Quote Tool, ROI Model, Deployment Plan, Standard Contracts, SOW Final Contracts Deployment Plan Penetration, Discovery and Qualification Sell Value, Qualify & Test, Develop Champions Establish Political Alignment, Execute Competitive Strategy & Influence Buying Criteria Position, Manage & Execute Validation Process Confirm Decision Process & Propose Solution Finalize Negotiation & Close Partner Negotiate and Close Propose Solution Validate Solution & ROI Executive Competitive Strategy Create Value Proposition Identify Initiatives
  38. Selling is Simple J U S T A N S W E R T H E S E 3 Q U E S T I O N S : Why Now?Why do anything? Why your company? © 2015 - Andreessen Horowitz | Proprietary & confidential, all rights reserved worldwide.
  39. Sales Process I T A T E A M S P O R T ! ! ! S U P P O R T I N G A C T I V I T I E S A N D R E S O U R C E S Through A Non-Linear Sales Process Step 1 Identify Initiatives Step 2 Create Value Proposition Step 3 Execute Competitive Strategy Step 4 Validate Solution & ROI Step 5 Propose Solution Step 6 Negotiate & Close Step 7 Deploy & Develop Rapid Prototyping Capability Pre-Sales Marketing Sales Engineering Product Management Customer Success Discovery Demo POC Pilot Deployment Opportunity executionDiscovery
  40. Develop the Value Framework Business Strategies Initiatives Solution Set Critical Capabilities ObjectivesStep 1: Focus is on identifying what is happening with the business Step 2: Tie Initiatives, Critical Capabilities, & Solution Set back to the business issues
  41. Step 1: Build and Test Your Value Statement Creating the “Unique” Value Proposition Critical Capabilities Solution SetCorporate Objectives InitiativesBusiness Strategies Step 2: Understand the As-Is and To-Be State Step 3: Identify Case Studies for the Value Proposition Step 4: Develop and Test the Anticipated Financial Returns Associated with Your Solution © 2004 Opsware Inc. All rights reserved. Page 27 Opportunities for Efficiency Gain n Server build parameters left to the individual administrator n Slower times to repair; relatively high effort required for post-incident recovery n Patching performed as possible rather than as needed n Emergency patches create significant disruption n Ad hoc change processes n Low confidence in new application testing, if performed n Infrequent / uncoordinated resource sharing across teams, groups or locations n Insufficient documentation n Large number of disparate operational systems or tools n Operational reporting difficult to produce and difficult to audit n Low level of compliance with operational policies © 2004 Opsware Inc. All rights reserved. Page 25 Risk Reduction Opportunities n Lack of a maintained, enforced, reusable test environment n High frequency of misconfiguration and bad decision-making by lower- level technical personnel n Non-compliance with change management policies n Difficult or impossible rollback of failed code deployments n Unreliable audit trails and change histories n Non-compliance of patch levels and patch frequency with contractual obligations n Insufficient or inaccurate documentation for operational decision-making © 2004 Opsware Inc. All rights reserved. Page 25 Enabling Accelerated Off-shoring n User access to the platform controlled via a centralized definition of privileges n All of interdependencies between all components of an application are modeled such that customer-specific knowledge resides in Opsware rather than in personnel n System change requires modifications only to the relevant building block, not to the entire server n Full integration with incident management, ticketing, billing and asset management n Severs the relationship between geographic location of personnel and geographic location of servers n Any accredited system user can answer any business question about the global managed estate n Changes to servers executed by the model-based system are “undo-able” by any user, in any location, with any level of skill. n Changes to servers by operators outside of the model-based system trigger an alert n Software packages and patches certified or mandated for use are deposited in a unified, secure repository n Digitally signed audit trails protect both the underlying model and the software package repository © 2004 Opsware Inc. All rights reserved. Page 25 Other Non-quantified Benefits n Application management gains • Efficiency (esp. via automated code deployment) • Risk reduction • Off-shoring n Migration of 760 business-critical systems from remote sites to hardened data centers n Management reporting, auditing and compliance n Service transformation n Disaster recovery reliability and service enhancements
  42. Opportunity Management & Account Planning M A N Y M O V I N G P A R T S … Funding Process Account Plan Validation Competitive Positioning Decision Process Decision Criteria Political Position
  43. Business Strategies Initiatives Solution Set Critical Capabilities Objectives Focused on and accountable for Aware of and understand their relationship to Executives Directors and Managers Individual Contributors Individual Contributors Individual Contributors Individual Contributors Individual Contributors Individual Contributors Directors and Managers ROI/POV Creation S T E P 1 : I D E N T I F Y T H E I N I T I A T I V E S ( T H E Y A R E A L R E A D Y F U N D E D )
  44. Typical Use Cases Green field, differentiated, both (why anything, why you, why now) Scope Applicable subset Benefit Areas Iterative and validated with anecdotes Input Data Based on capability maturity Improvement Levels Phases & timelines Estimate Implementation TCO implications Cost Estimate Schedule Cost Benefit
  45. Summary of ROI Analysis (Example) $ 1 4 . 5 M M I N A N N U A L S A V I N G S I D E N T I F I E D $3,744,396 $2,713,425 $649,702 $3,022,835 $11,142,323 $1,763,815 $692,461 $3,886,332 Current Cost by Activity Provisioning SW Updates & Config Business App Change Patching & Maintaining Troubleshoot & Repair Audits & Compliance Producing Reports Other Activities $1,123,319 $1,628,055 $519,761 $604,567 $4,891,480 $264,572 $173,115 $3,886,332 Reduced Cost by Activity with MyCo Over $14,524,087 Savings
  46. Components of a Proposal C H E C K L I S T Quote with Terms ✓ License Description ✓ Statement of Work ✓ Tech Validation & ROI Results ✓ Software License Agreement ✓ Support and/or Services Agreement ✓
  47. Deal Review Process Account Plan and Competitive Strategy Proposal Structure Strategy Options Quote & Terms License Desc SOW Business Case Marketing Ask Components for ReviewSales Management Customer Success Sales Engineering Marketing Finance Legal ROI/Business Case Development
  48. Forecasting Best Practices Q U A L I F I C A T I O N C R I T E R I A M E D D I C C Metrics: Quantifiable measurements of the business benefits of the solution. (Before and After comparison). Proof of where and how we’ve accomplished similar objectives before Economic Buyer: The individual within the customer’s organization who has the final “yes.” Typically has access to discretionary funding. Decision Criteria: These are the formal solution requirements against which each participant in the decision process will evaluate the available options. They are always from the customer’s point of view. Decision Process: The process by which the customer will evaluate, select and purchase a solution. Identify Pain: Pain is the catalyst for the buyer solving the problem within a set timeframe. There are Business pains and Technical pains and both must be identified and quantified. Champion: The person with power and influence inside the customer’s organization who is actively selling on your behalf. Competition: The competition’s strengths, weaknesses and differentiators, including Champions and their relative power and influence. You must understand your competition (including “Do Nothing” and “Do it Internally) and have a strategy to compete.
  49. Forecasting Best Practices F O R E C A S T I N G O U T L I E R S Sales Stage ! Current Quarter " Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12 Week 13 Identifying Initiatives Pipeline Pipeline Pipeline Pipeline Pipeline Pipeline Pipeline Pipeline Pipeline Pipeline Pipeline Pipeline Pipeline Create a Value Proposition Best Case Best Case Best Case Best Case Pipeline Pipeline Pipeline Pipeline Pipeline Pipeline Pipeline Pipeline Pipeline Execute Competitive Strategy Commit Commit Best Case Best Case Best Case Best Case Best Case Pipeline Pipeline Pipeline Pipeline Pipeline Pipeline Validate Solution & ROI Commit Commit Commit Commit Best Case Best Case Best Case Best Case Best Case Pipeline Pipeline Pipeline Pipeline Propose Solution Commit Commit Commit Commit Commit Commit Commit Commit Commit Commit Commit Pipeline Pipeline Negotiate & Close Commit Commit Commit Commit Commit Commit Commit Commit Commit Commit Commit Commit Commit Deploy & Develop Closed Closed Closed Closed Closed Closed Closed Closed Closed Closed Closed Closed Closed
  50. I N D U S T R Y P E R S P E C T I V E S a16z Go-To-Market Boot Camp C U S T O M E R S U C C E S S
  51. Close Renewal & Up-Sell Cross-Sell Customer Success Opportunity Plan, Project Implementation Plan, Implementation Review Checklist, Training Materials, Status Reports Proof Point Template, Executive Scorecard, Value Proposition, Opportunity Plan, Account Plan Proposal Template, Quote Tool, Negotiation Planner, Standard Contracts, SOW Negotiate and Close Renewal • Opportunity Confirm Value Created • Collect Proof Point • Identify and Develop Additional Opportunities Confirm Internal Alignment • Resource Allocation • Deployment Success Criteria • Managing the Milestones, Measuring Impact Nurture Account & Create Opportunity Implementation, Training & Support
  52. Program, Delivery, and Project Management •  Responsible for managing long-term PS relationship with customer •  Manages multiple projects within single customer – MAM, PAM, News •  Typically working on Strategic Accounts in each geo •  Works closely with Sales to develop new, add-on opportunities •  Billable resource and part of Project Team on larger deployments Program Management •  Manages the Delivery team of Project Managers and Engineers •  Responsible for Resourcing, Budgeting and Forecasting •  Works closely with Sales, Solutions Design, Program and Project Management Delivery Management •  Owns Project P&L and ultimately responsible for success of project •  Schedules Project Engineering, Training and Workflow resources for each project Project Management
  53. Training Services & Support Programs E S C A L A T I O N P R O C E S S E X A M P L E Standard Escalations Code Red Code Blue Issued for all situations needing escalation, but not meeting Code Blue criteria Issued proactively as “stand-by” alert for heightened preparedness for a significant event or series of events Issued when there is immediate harm or damage requiring emergency response or if immediate and sustained response is needed outside of business hours
  54. Customer InterviewCustomer Questionnaire Customer Facts Doc Guide consistent interviews and facts gathering aligned with reference information needs Conduct comprehensive customer interview to obtain needed level of information to support all needs Conduct comprehensive customer interview(s) to obtain needed level of information to support all needs Central Repository Single location to store all Customer Facts Docs and related info for reference Sales Tools Developed Post Contract Sales Tools Developed Post ‘Go Live’ Press ReleaseWin Wire Web/PDF Case Study Reference Video ROI CalculatorsPPT Reference Slide(s) It Starts By Creating Reference Customers
  55. Driving Customer Lifetime Value T H E M A J O R I T Y O F R E V E N U E I S G E N E R A T E D A F T E R T H E I N I T I A L S A L E . Customer Acquisition Creating Customers for Life: The New Formula for Success in the Subscription Economy. Service Source, 2014. Renewal Up-Sell Cross-Sell Revenue
  56. Maximizing Lifetime Customer Value Lifetime Customer Value Churn
  57. a16z Go-To-Market Boot Camp
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