Value Capture Selling
Description
Value Capture Selling is the first book to directly address one of the most destructive shortcomings in sales organizations today. Author JC Larreche's approach is so innovative that Selling Power magazine named it "The sales book of the decade."
For years, sales professionals have focused on creating value for their customers--the first phase in selling. However, in today's fast-moving world of business, that is just not enough. Under increased financial pressure, businesses today are being pushed to move to an emphasis on the second phase of selling: the capture of corporate value. However, as all-too-many business leaders are finding out to their great dismay, sales professionals have not been trained in the techniques for the capture of corporate value, and they are at the mercy of very well-trained and tough professional buyers.
Value Capture Selling is the first book to address this gap. It is specifically designed to provide sales professionals--both veteran and new alike--with a complete roadmap for making the transition from value selling to value-capture selling, including:
* Why the creation of corporate value--short, medium, and long term--is essential for the firm and its internal and external partners
* How to master the key drivers of corporate value: profitability, market share, and customer satisfaction
* How to prepare for value capture
* How to frame strategies and tactics for value capture
* How to close deals for higher corporate value capture
Value-capture selling is the current challenge for corporations and sales professionals everywhere--making the transition from a revenue objective to a focus on corporate value. This requires a fundamental shift from a strong belief that bigger is better to a new creed that richer is better. It is what JC Larreche, professor emeritus at INSEAD and an expert on sustainable value creation, calls the 3rd Sales Transformation.
In a future marked by escalating financial pressures, the significance of value capture will only grow, and in Value Capture Selling, JC Larreche provides sales professionals everywhere with the tools they need to become masters at this new art!
Praise for Value Capture Selling:
"Most sales forces focus only on revenue, not value capture. Larreche's book can help you make the necessary transition. If you are in Sales, read it because the data revolution is increasing scrutiny from Finance and others in your firm about how selling efforts build or destroy enterprise value. And if you are a C-Suite executive, read it carefully, because selling affects core elements of value creation."
--Frank Cespedes, Harvard Business School, author of Aligning Strategy and Sales and Sales Management That Works
"Value Capture Selling is a very compelling and complete work that illustrates well the challenges of the transition from product value to corporate value--both for the customer and for the supplier. JC Larreche lays out a powerful framework for any sales professional anywhere to win in this new world of selling!"
--Laurent Beraza, Director - UK, Germany, France - Microsoft Solutions Support Sales
"Value Capture Selling gives us the powerful insights required to capture more value for our company while keeping the customer at the center--right where they belong."
--Anna Campagna, Sr. Director Global Sales, HEINEKEN
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Person
JC LARRECHE is Emeritus Professor at INSEAD, the leading international business school with campuses in France, Singapore, and Abu Dhabi. In addition to his distinguished academic career, he has been a consultant for many leading global corporations and served on the board of several companies. He is also the Founding Chairman of StratX Simulations, a leading provider of experiential learning solutions.
Content
Preface xvii
Chapter 1 The Advent of Value Capture 1
Selling as Push 4
The Three Sales Transformations 5
Hop on the Bus of Change and Become a Value-Capture Champion 11
The First Step on the Bus of Change 12
The Structure of the Book 13
Chapter 2 The Creation of Customer Value 15
From Product Selling to Customer Value 17
The 1st Sales Transformation 20
The 2nd Sales Transformation 31
Customer Centricity Helps Win the 2nd Sales Transformation 39
But the Creation of Customer Value Is Only One Side of the Story 41
Chapter 3 The Creation of Corporate Value 43
General Electric's Big Shift 46
The Sources of Value Destruction 48
Changing the Yardstick for Corporate Success 50
Business Transformation for Corporate- Value Creation 54
The Drivers of Corporate- Value Creation 58
Chapter 4 Mastering Multiple Objectives 61
Moving from the First Selling Phase to the Second Selling Phase 63
Revenue Management Systems and the Value- Capture Culture 65
Negotiating According to Incentives 67
Harnessing the Three Drivers of Corporate- Value Creation 76
Upgrading the Role of Sales Pros 80
Chapter 5 Steering Customer Satisfaction 83
Customer Satisfaction and Corporate Value 85
Measuring Customer Satisfaction 87
Chapter 6 The Leadership Attitude 101
Why Should You Be a Leader? 102
What Is Leadership? 103
Your Personal Growth as a Leader 114
Ego and Leadership 117
Your Corporate-Value Capture Mission 119
Chapter 7 Preparation for Value Capture 121
The Art of Preparation 124
The Negotiation Setting 127
Primary Preparation 129
Do You Know Your BATNA? 138
The BATNA Frontier for Value Capture 141
Chapter 8 Value- Capture Strategy 147
The Buyer's BATNA 150
Do You Know ZOPA? 152
Visualizing Your ZOPA for Value Capture 154
Anticipating the Buyer's BATNA Frontier 160
Exploring the ZOPA Space 163
Shadow Coaching 167
Chapter 9 Value- Capture Tactics 169
The Negotiation Setting 170
The Negotiation Pathway 174
Active Listening 185
Body Language 188
Putting All This into Action 190
Chapter 10 Value- Capture Closure 197
Always Be Closing 198
Closing the Two Selling Phases 200
Bridging the Gap 203
The Closure Map 207
Managing Risk at Closure 211
Tom Closing 216
Moving On 219
Chapter 11 Win and Learn, Learn to Win 221
Win and Learn 222
Celebrating Wins 230
Learning to Win 232
Winning and Learning Traps 240
Make Yourself Lucky 244
Epilogue 249
Thank You, Dear Reader 253
Acknowledgements 255
About the Author 257
Notes 259
Index 275
PRAISE FOR ACADEMICS, AUTHORS AND PRACTITIONERS
Value Capture Selling is a very compelling and complete work that illustrates well the challenges of the transition from product value to corporate value-both for the customer and for the supplier. JC Larreche lays out a powerful framework for any sales professional anywhere to win in this new world of selling!
Laurent Beraza, Director - UK, Germany, France - Microsoft Solutions Support Sales
I know from years of personal experience that sales organizations, sales leaders, and salespeople are always looking for something new to gain a competitive edge and win. In this book, JC Larreche provides a compelling and powerful new approach for creating-and capturing-corporate value.
Jeb Blount, CEO of Sales Gravy and author of Sales EQ
How do we transform the sales function by keeping the customer at the center while creating value for our company? It's a big question that finds powerfully insightful answers in this new book, Value Capture Selling. Here, sales and marketing expert Larreche takes us on a reflective and inspiring journey-a journey that is as pleasant and inviting as a walk in the park on a beautiful spring day.
Anna Campagna, Sr. Director Global Sales, HEINEKEN
Most sales forces focus only on revenue, not value capture. JC Larreche's book can help you make the necessary transition. If you are in Sales, read it because the data revolution is increasing scrutiny from Finance and others in your firm about how selling efforts build or destroy enterprise value. And if you are a C-Suite executive, read it carefully, because selling affects core elements of value creation. Strategy, growth, or attempts to increase the stock price without attention to Larreche's observations about this fact are limited or, worse, going down the wrong path.
Frank Cespedes, Harvard Business School, author of Aligning Strategy and Sales and Sales Management That Works
There has been a major shift in sales objectives from delivering revenues to the creation of corporate value. Value Capture Selling is the first book to embrace this shift, and I am thrilled that JC Larreche has written this modern and innovative guide to sales. I fully agree with this approach, and I am certain any sales pro will benefit by applying the valuable lessons within.
Philippe Chiappinelli, VP Sales & Partners Europe, Etiya
With Value Capture Selling, JC Larreche has created a powerful offer for readers. This book doesn't contain only theory, but it is also an interactive book that asks you to think, "What would I have done in this same situation?" By the end, you will be taken through a real sales negotiation experience, putting theory into practice and elevating your negotiation skills to the next level, where you will be ready to create incredible new success stories!
Enrico D'Aiuto, Senior Vice President Head of Global Sales & Marketing, Biotest AG
Value Capture Selling is a highly practical and forward-looking book that is a must-read for sales professionals and organizations worldwide. Larreche's book challenges traditional sales techniques and provides new approaches for achieving more with less.
Dr. Haisen Ding, Founder and CEO, World Executive Group and World Brand Lab
I am thrilled to endorse Value Capture Selling, a comprehensive and insightful guide that redefines the art of successful business relationships in today's competitive landscape. The book skillfully highlights the importance of commercial roles while providing a clear roadmap for creating value for customers and partners alike. It's an essential read for every sales professional looking to foster meaningful, collaborative partnerships-today and long into the future.
Dominique Ferrier, Global Accounts Director, FMCG co.
Larreche brings a wealth of expertise in sales and marketing to this insightful book. By focusing on the importance of value creation for both the customer and the corporation, this book revolutionizes the sales approach. Value Capture Selling offers profound insights and actionable advice that will equip you with the tools and strategies needed to drive sales growth, delight your clients, and thrive in the dynamic world of sales. This book is a must-read for anyone seeking to master the art of selling and create lasting customer relationships.
Dr. Marshall Goldsmith, Thinkers50 #1 Executive Coach and New York Times bestselling author of The Earned Life, Triggers, and What Got You Here Won't Get You There
Value Capture Selling shows how to navigate the ever-changing sales landscape with greater insight into the model of value selling that's traditionally focused on customer centricity. The author provides a novel approach that leads salespeople to a more effective negotiation position that satisfies customer needs while creating corporate value for your business. A must-read for anyone who wants to win more sales and achieve higher profits.
Gerhard Gschwandtner, Founder and Publisher, Selling Power
Selling with the emphasis on corporate value requires more business acumen and a stronger leadership attitude from sales professionals-that is, an upgrading of their function. In Value Capture Selling, JC Larreche provides sales professionals in every industry the knowledge they need to excel in this exciting new world. I highly recommend this book!
Omar Haddadeen, Inside Sales Analyst, BOMBARDIER
Larreche's timely book, Value Capture Selling, offers a profound, necessary understanding of the third sales transformation and related strategies to improve sales performance by focusing on corporate value creation. From leveraging the drivers of corporate-value creation to applying good value-capture tactics and closing, the reader receives a must-have roadmap and toolkit. I particularly appreciated the final section, Make Yourself Lucky, because if sales is a struggle for everyone, it is less so for those who understand it, and know how to enjoy, learn, perform, and be lucky as rightfully recognized by Larreche!
Joël Le Bon, Professor of Marketing & Sales, Johns Hopkins University, Carey Business School
This book provides the key for sales pros in any industry, anywhere in the world, to succeed by mastering the art and science of corporate value creation. It's an essential tool for sales success in today's fast-changing markets.
Mark Levy, The Big Sexy Idea Guy
Creating value for your company and your clients is the true definition of a win-win deal. However, many forget the corporate value part of that equation. Value Capture Selling helps focus your sellers not just on selling well, but on how to sell in ways that positively impact the health and growth of your organization. A must read!
Gráinne Maycock, Chief Revenue Officer, Acolad Group
Value Capture Selling is a great book containing many good answers for all executives seeing corporate value maximization as the next must-win-battle. This requires a total alignment around the strategy and accordingly, a full transformation of the organization, starting from sales.
Tolga Pekel, Group Vice President Corporate Strategy, Bekaert
This book provides sales professionals with powerful new tools to help them understand and implement value-capture selling, thereby ensuring that they contribute to the corporate value of their firm. A definite must-read for every sales professional!
Dominique Rouzies, Professor HEC Paris and Academic Dean, BMI Executive Institute
Value Capture Selling is an excellent reference for any sales professional who would like to improve their ability to create and capture value for their firm. I absolutely love the short but sweet chapter on leadership-it leaves a lasting impression! The ever-more-relevant concepts of BATNA and ZOPA are brilliantly demonstrated, and the emphasis on preparation is rightly hammered home! I especially loved following the story of Tom the sales pro-it felt like listening to a story of my colleague!
Manish Kumar Singh, Global Head of Marketing, Customer Services & Solutions, IGT Systems, Philips Healthcare
I recommend Value Capture Selling to any sales leader or professional who wishes to better understand how the science of sales has evolved in these increasingly complex and dynamic times, especially within the corporate environment. In this book, JC Larreche provides an insightful strategic perspective on the dichotomy between marketing and sales, while focusing on the essential skills and competencies needed by the new generation of sales professionals.
Giulia Stefani, Director of Global Sales Training & Education, SH&A, Medtronic plc
Just as Larreche's book, The Momentum Effect, inspired me to change my approach to doing business, his latest book-Value Capture Selling-offers a powerful approach to business and sales transformation. The book provides readers with an immensely practical view of how the work of sales pros is changing and what needs to be done to continue to be successful in today's fast- changing business environment.
Fabio Villanova, Sr. Director Commercial Europe,...
