FSM - Partner Phasebook Overview Final

Franchise Sales Methodology
Phase Book – Partner Version

Overview
What is Franchise Sales Methodology?
F - Recognize E - Consider D - Evaluate C - Select B - Negotiate A - Purchase
SAPs Franchise Sales Methodology (FSM) is used to

manage opportunities, effectively identify what actions should
be taken based on the customer’s buying cycle in order to
optimize selling motions and resources, and forecast
opportunities accurately.
This is the training that all of the SAP sales teams go through
so if you use this terminology, you will be using the same
language on deals and any interactions with the SAP sales
teams.
SAP Franchise Sales Methodology (FSM)
Summary – Customer Buying Process
Entry Criteria
Customer Management is not Customer Management Agreed Customer Agreed to Mutual Customer Acknowledges SAP Customer’s Evaluation Team Negotiations Completed and Final
Aligned to Existing Business Issue to Business Issues and that SAP Action Plan Offering and Agrees to Proceed Recommends SAP Contracts Delivered
can Contribute with a Written Close Plan (short
Customer Acknowledges listed)
SAP’s Unique Value
Key Milestones
Account Situation Analyzed Sales Team Setup Discovery Customer Buying Process Business and Legal Terms Contracts Signed – Booking
Confirmed in Writing and Conditions Package Submitted
Customer goals, needs, and/or Relationship Map and Executive Competitive Strategy Defined
business issues identified Alignments Identified Quote and Proposal Created Crawl, Walk, Run Options
Key Customer Relationship
Compelling Event Aligned with References Scheduled
Selection Criteria and Why SAP Established Customer CFO Review Meeting
Customer
Business Case Delivered
Competitive Landscape Well Solution Presentation
Understood Customer Received and Accepted
Final Proposal
Exit Milestone
Customer Acknowledged SAP’s
Customer Management Agrees to Customer Acknowledges SAP’s Offering and Agrees to Proceed Customer’s Evaluation Team Negotiations and Contracts Contracts Signed by the Customer
Business Issues and that SAP can Unique Value with a Written Close Plan (short Recommends SAP Finalized
Contribute listed)
Customer Agreed to Mutual
Action Plan
Deliverables
Account Map Opportunity qualified Executive Alignment Quote and Proposal Presented Proposal with Options – Crawl, Contracts Signed by the Customer
Walk, Run (SAP will
Compelling event Selection Criteria Obtained in Discovery Information Analyzed GAF Submitted Order Package Submitted
not request to view this
Writing
Strong Functional Fit Selection Criteria Refined from References Scheduled and document) Order Booked
SAP and Partner Sales Team Discovery Delivered Customer CFO Review
Use Cases Identified Established
Solution Demo and Business Business Case Delivered Meeting
SAP Unique Value Message Relationship Map Case Presented to Customer
Delivered to Customer Customer Proposal Delivered Confirmation of Written
Customer Agreed to Mutual Demo Dry Run Close Plan
Joint Close Plan Validated
Action Plan (Dates, Actions, Negotiations Completed and
Owners, etc) in Writing Competitive Strategy Executed
Final Contracts Delivered
Customer Acknowledges SAP’s Mutual Action Plan Updated
unique value SAP Global Partner Enablement
SAP Franchise Sales Methodology (FSM)
Virtual recordings of training sessions
Entry Criteria
Links to Videos in Sales Excellence FSM Training *

Stage F – Recognise
Stage E - Consider
Stage D - Evaluate
Stage C - Select
Stage B - Negotiate
Stage A - Purchase
* To be used in conjunction with this document to expand your knowledge

Recognize
Entry Criteria
Customer Management is not aligned to existing business issues
Milestones in Recognize
1. Account Situation Analyzed
2. Customer Goals, Needs, and Business Challenges Identified
3. Selection Criteria and Why SAP
Main Goal of the Recognize Phase (Exit Milestone)

Customer Management agrees to business issues and that SAP can contribute
Deliverables in Recognize Phase

 Account Map
 Compelling Event
 Strong Functional Fit
 Use Cases Identified
 SAP Unique Value Message Delivered to Customer
Recognize
Consider Evaluate Select Negotiate Purchase
Entry Milestone Milestone Milestone Exit

Deliverables
Criteria 1 2 3 Milestone
SAP NORTH AMERICA
SAPPARTNER
Global Partner Enablement
UNIVERSITY
© 2012 SAP AG. All rights reserved.
Recognize
Entry Criteria
Customer management is not aligned to existing

business issues
Recognize

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Recognize
Milestone 1: Account Situation Analyzed 1 2
Research Existing Customer or Prospect Start Initial Planning Around the Deal
• Research the Account situation as completely as possible, i.e. • How complex will the deal become? Products? Services?
in addition to talking to your contact(s), use research tools • Which experts will you probably need to involve?
(Google, LinkedIn, Hoovers)
• The nature of the business issue plus the complexity of the
• What is the competitive landscape? relationship map will tell you how complex the deal may
– Theirs: become. This first step in Deal Qualification is the basis for the
o Who are their main competitors? services you may request.
o Do those competitors have an advantage over your
prospect they need to overcome? Define SAP Unique Value
– SAP’s: • What is SAP’s unique value proposition with the customer?
o Which of our competitors is already active in the account? • Create SAP unique value by crafting messaging around
o Who else is trying to get their foot in the door? Industry and Solution expertise.
• What is creating the business need? Are there external • What is SAP’s industry expertise advantage? Leverage
factors? Industry Content site to create SAP unique value.
o What is the Compelling Event? • What is SAP’s solution expertise advantage? Leverage
• What is the sense of urgency? solution overviews site to create SAP unique value.
o What is the time frame for a purchase? • Set vision for SAP unique value so that customer is enticed to
insert SAP unique value into selection criteria.
• Click here to access customer success stories and value
propositions
Recognize

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Recognize
Milestone 1: Account Situation Analyzed 1 2
Tips Disqualification Criteria

• Ask analytic questions – provide examples • The business challenge is not as real or important as the first
• Instead of throwing presentations about SAP at your contacts, contact may have indicated, i.e. there is no compelling event.
have conversations with them. Listen and learn. Let them do • Your contact doesn’t give you access to “power”.
the talking and utilize questioning techniques to steer them to
the right topics and recognitions/realizations.
• Request/negotiate access to “power” or “final decision maker”
• Meeting / Call with “power”: Make sure you speak the power’s
industry language and not just technical or “SAPanese”
Consider this Milestone Achieved when:

• You understand the Account’s overall situation and their
history with SAP
• You have had your first meeting with your first contact and the
outcome is promising
• Your first contact has shared some information on their own
goals and who else may be interested in resolving the issue
• Your first contact has signaled willingness to give you access
to power
Recognize

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Recognize
Milestone 2: Customer Goals, Need & Business Challenges
Identified
Enhance Prospect/Customer’s Awareness of Tips

Business Issue • Continue talking to your contact Champion/Stakeholder in
• What are the overall business goals? order to find out their goals and find out who else is a
• Who is impacted by the business challenge? stakeholder in this deal.
• Identify additional Champions/Stakeholders • Continue the process of Goal identification by talking to every
stakeholder.
• What are the high level benefits of solving the issue?
• Turn value proposition into a question including a use case
Match Customer Goals/Objectives with Potential

SAP Solutions Consider this Milestone Achieved when:
• Which products may fit technically/functionally? • You understand the overall business challenge and have an
idea how to solve it
• Which value proposition may appeal the most to which of the
stakeholders? • You understand who is interested in getting it solved and why
– Is there a strong functional fit?

Disqualification Criteria
• Utilize PartnerEdge.com in order to map the goals with
potential solutions. Validate it with the SAP sales team. • No compelling event – The business challenge is not as real
or important as the first contact may have indicated.
• Identify your own or SAP public use cases/customer stories/
references.
Recognize

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Recognize
Milestone 3: Selection Criteria and Why SAP 1 2
Identify Key Decision Makers • Leverage SAP expertise in customer’s industry

• What is the decision making process? • Leverage SAP Solution Set which would address at a high level
current business issues
• Develop roadmap to executive alignment
• Wrap together business issues, SAP Industry and Solution
• Talk to your contact Champion/Stakeholder in order to find out
expertise to reiterate SAP’s unique value
the decision making process and who the key decision
makers are
Why Partner
• Develop a customer Account Map
• Best fit partner should be determined by:
Present Initial Value Proposition and “Why SAP?” – Industry Expertise
• You have negotiated “access to power” – now meet with – Solution Expertise
“power” and have a conversation about the business issue, – Geography
the value of a solution (without being too specific) and the – Applicable references/case studies
implication of doing nothing. Utilize this questioning pattern:
– Pre-Sales Resources
– “So when you [customer] do this [use case], would it
help/speed up things/save money if you could do that
[feature]?”
– How big is the value to be gained from the value proposition?
– What is the implication of not finding a solution?
– Then, do we have a project?
Recognize

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Recognize
Milestone 3: Selection Criteria and Why SAP 1 2
Determine Selection Criteria Consider this Milestone Achieved when:

• What are the criteria the customer is evaluating the solution on? How • Customer Management has confirmed in an email that they see
much weight does each criteria hold? Obtain in writing. the business issue and its gravity, want to explore it now, and
– Functionality SAP is considered a potential solution provider.
– Ease of use
– GUI Disqualification Criteria
– Best of Breed • No compelling event -The business challenge is not as real or
important as the first contact may have indicated
– Market Leader
– Price • Your contact doesn’t give you access to “power”.
• Weave in SAP unique value proposition to change the game and to • Customer Management refuses to see the gravity of the
have selection criteria geared towards an SAP solution. business issue although your first contact credibly confirmed
that the business issue does exist and will significantly cost the
company if not resolved. In this case, put the opportunity on
Tips
hold until the customer management accepts reality, or work on
• Proposition of the solution you have in mind and its features should be your questioning skills so you can help them gain awareness
formed into questions utilizing use cases and help the customer more effectively.
management to discover the value. A conversation this way will have
two major effects: Customer management becomes aware of the
business issue and its gravity, and since you are relating a helpful
feature to the customer’s situation (use cases) instead of just talking
about SAP in general, you will be considered an expert.
Recognize

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Recognize
Exit Milestone: Customer Management Agrees to Business 1 2
Issues and that SAP can Contribute

Customer Understands SAP Unique Value Tips
• Customer is aware that SAP is uniquely positioned to: • Proposition of the solution you have in mind and its features
– Provide Industry Expertise should be formed into a questions utilizing use cases and help
– Provide Best of Breed Solution set the customer management to discover the value. A conversation
this way will have two major effects: Customer management
– Provide an ecosystem of Partners and Subject Matter Experts becomes aware of the business issue and its gravity, and since
that can understand their business and how to best affect you are relating a helpful feature to the customer’s situation (use
outcomes through transformation
case!) instead of just talking about SAP in general, you will be
• Click here to access customer facing Why SAP references considered an expert.
– Leverage your organization’s or SAP’s Industry knowledge
Request Confirmation from the Customer Management in Industry Community Site
Writing
• The business issue exists and needs to be explored now
• They consider SAP a potential solution provider for this issue
Recognize

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Recognize
Exit Milestone: Customer Management Agrees to Business 1 2
Issues and that SAP can Contribute

• Customer Management has confirmed in an email that they see
the business issue and its gravity and want to explore it now,
and SAP is considered a potential solution provider. Customer
also understands SAP’s unique value in that they understand
the industry expertise SAP provides alongside the best of breed
solution set that leverages the industry best practices.
• If you and the customer are unable to articulate and
understand SAP’s unique value you open up the risk of the
customer opening the evaluation to all vendors where the
customer will commoditize the solution. Solution bake off and
feature/functionality will take precedence over business
value/industry expertise/best practices (SAP’s unique value)
which will eventually boil down to lowest cost bidding war. It is
critical to constantly articulate SAP’s unique value via our best
of breed solutions, industry expertise, and aggressive innovation
strategies. Click here to access customer facing Why SAP
presentation
Recognize

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Recognize
Deliverables
• Account Map
• Compelling Event
• Strong Functional Fit
• Use Cases Identified
• SAP Unique Value Message Delivered to
Customer
Recognize

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Consider
Entry Criteria
Customer Management agreed to business issues and that SAP can contribute
Milestones in Consider
1. Sales Team Setup
2. Relationship Map and Executive Alignments Identified
3. Compelling Event Aligned with Customer
4. Competitive Landscape Well Understood
Main Goal of the Consider Phase (Exit Milestone)

Customer agreement to Mutual Action Plan and acknowledges SAP’s unique value
Deliverables
 Opportunity qualified (8 criteria)
 Selection Criteria Obtained in Writing
 SAP and Partner Sales team established
 Relationship Map
 Customer agreed to Mutual Action Plan (Dates, Actions, Owners etc.) in Writing
 Customer acknowledges SAP’s unique value
Consider
Recognize Evaluate Select Negotiate Purchase
Entry Milestone Milestone Milestone Milestone Exit

Deliverables
Criteria 1 2 3 4 Milestone
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Consider
Entry Criteria
Customer management agreed to business

issues and that SAP can contribute
Consider

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Consider
Milestone 1: Sales Team Setup 1 2
Make Sure Lead is Sufficiently Qualified Is the sales team size appropriate to the expected deal
size?
Opportunity is sufficiently qualified when it is qualified (8
Qualification criteria) • If not, does the deal have high strategic value?
• Funding: it should be clear if the customer has funding available, what
are the steps to release the funding. Identify and Request the Sales Team
• Compelling event: there should be at least a reason from the • Which services and experts do you need?
customer why to change and why now.
• Have you assigned a sales team?
• Customer challenges: if there is no pain there is no sale – so look at
the pain points and the customer’s issues and symptoms. • Have action items/role/responsibilities been assigned to
• Customer business value drivers: define strategic and business sales team members?
performance indicators and map them back to the customer • What resources do you need from SAP?
stakeholder strategy.
• Solution & differentiators: To be able to differentiate the value • Start reaching out to your SAP PBM or iPBM to see if those
proposition to the customer, understand what the customer needs. resources are available.
• Customer stakeholder strategy: identify the best mobilizers in the
customer to help driving on a consensus decision to buy. Introduce Pre-Sales to Customer Discussions
• Competitors: understand who are the main competitors, how you are
positioned against them, and competitive strategy. • Introduce your Pre-Sales to assist in qualification and
• Ecosystem: ensure that all your and other partners’ resources have especially to help identify additional cross-sell/up-sell
been considered. opportunities
• Begin brain storming with your Pre-Sales team in order to
Register Opportunity with SAP be fully aligned for the Evaluation phase
• Register your opportunity with SAP Deal Registration Service. Click
here to access service.
• Click here to know how to register a qualified deal
Consider

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Consider
Milestone 1: Sales Team Setup 1 2
Confirm Selection Criteria Tips

• What are the criteria the customer is evaluating the solution on? How • Fully qualify your opportunity on the 8 qualification criteria before
much weight does each criteria hold? committing resources with sales team
– Solution Functionality • Leverage team work abilities to assemble strongest team according
– Industry adoption to customer needs
– Ease of use/GUI Consider this Milestone Achieved when:
– Best of Breed • You have requested the appropriate sales resources and got
– Market Leader confirmation of their involvement
– Price Disqualification Criteria
• Weave in SAP unique value proposition to change the game and to • If you are unable to qualify an opportunity, exercise caution if adding
have Selection Criteria geared towards an SAP solution cost via sales resources to sales cycle. Also, if you cannot get the
• Further refine sales team participation according to selection criteria right resources involved, you will have difficulty driving the deal
Confirm Selection Process forward and closing it later on. You will have to do a better job on
• What is the selection process? qualifying your deal or involve an SAP CSE who can deliver the
– How many rounds of evaluations? missing part. If you cannot achieve any of this, you may have to step
– How many vendors are shortlisted? away simply because your organization will not be able to deliver. If
– How long does each process last?
the resources you need to involve cost inappropriately more than the
deal size would justify, than there can only be one reason why you
– How will evaluation feedback be filtered back to vendors?
still may want to proceed: The deal is highly strategic (e.g. foot in
– Who is the point of contact during the selection process?
door with highly prestigious customer, initial deal leading to much
• Which stakeholder’s opinion holds the most sway? more revenue in the future etc.), which you will have to determine in a
• Who is making the final decision? Whose final signature is needed? conversation with your manager. If it’s not highly strategic, then there
is no way to justify high cost of business with low revenue. In that
case, step away immediately.
Consider

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Consider
Milestone 2: Relationship Map and Executive Alignments 1 2
Identified
Identify Buying Center Confirm Key Decision Makers and their Decision Making
• Which department/group/organization/Line of Business is funding the Process
project? For example sales, marketing, finance, supply chain, • How do the key influencers and decision makers measure success?
manufacturing, etc? • Have you aligned the rights contacts to appropriate customer
• Who is involved in the decision making process? contacts?
• Who can stop or delay the project? • Are you aligned at the right levels? Are your or SAP executives aligned
with customer executives? Is Pre-Sales aligned with technical
• Who needs to sign the deal? influencers, sales with key influencers?
Understand the Customer in Detail (identify relationships and Selection Criteria Received from Key Stakeholders
executive alignment)
• If positioning eventual solution demo, ask for copy of selection
• How do the key influencers and decision makers measure success? criteria in writing from key stakeholders and decision makers
• Do you understand the customer's personal KPI's and goals?
• How will the customer measure the success of the project? Tips
• Have you aligned with any SAP CSE? • Ask relationship-building and relationship identifying questions.
• Do you understand outside influencers? Are Selection Consultants Understand undertones and what is not being said during a
involved? conversation.
• Leverage Motivational Psychology to understand goals and motives
Develop or Complete Relationship Map (aka Power Map) of stakeholder
• To access SAP’s relationship map template (aka Power Map) click

here
Consider

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Consider
Milestone 2: Relationship Map and Executive Alignments 1 2
Identified

• You have finalized the Relationship Map and understand who
is pro – SAP and who against SAP.
• Executive alignment is communicated to your management
and SAP
• If your investigation shows the competition has a personal
edge over SAP that you cannot overcome – family or other
close relations – be careful with the resources you spend on
this deal, and be prepared to step away from the opportunity
sooner rather than later.
Consider

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Consider
Milestone 3: Compelling Event Aligned with Customer
Agree on Business Issue and Requirements Tips

• What are the key priorities? • Subtle questioning techniques will need to be used in order to obtain
• How does a customer define and measure value? What before and relatively sensitive information especially around value statements,
after metrics are being evaluated that will determine the success of the budgets, and impact to customer of delaying project. If customer
project? does not want to provide budget details, ask for order of magnitude
or ranges to make sure you are on the same level as the customer.
• How can you and SAP meet and influence priorities?
• Does the customer agree with the priorities and success criteria? Consider this Milestone Achieved when:
• You know exactly why and when the customer wants to make a
Confirm that a Dedicated Budget Exists buying decision and their reasons are compelling
• Do you have a similar understanding of the overall project cost? Can
you meet customer budget expectations? Disqualification Criteria
• Have you positioned your financing options? • If the compelling event is questionable or the main decision makers
don’t understand it (yet), you will have difficulty closing the deal. Be
Confirm when the Decision will be Made prepared to let go.
• What is the deadline associated with the Compelling Event? • If your idea of the deal size and the customer’s idea of how much
• What is the cost of delay? they will have to spend to discover, purchase, and implement a
solution deviate greatly, then you risk spending too many resources
on a deal that in the end will be much smaller than you hoped. Make
Identify Potential SAP Solution sure the customer is aware of the overall size and willing and able
• Which SAP solution will best meet the criteria? to spend that. If your customer isn’t willing to allocate time or
resources to the beginning of the project, this may be an early
indication that your customer does not plan to invest much.
Consider

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Consider
Milestone 4: Competitive Landscape Well Understood
Identify Competition • Determine what risk is associated with selection consultant and
• Who is the competition? possible mitigation strategies to minimize influence of potentially
• What is their relationship to the prospect/customer? unfavorable selection consultant?
• How does the SAP CSE interact with competition? Tips
• Access SAP’s Competitive and Market Intelligence Community • Ask analytic questions that probes the customers situations
Identify SAP Key Differentiators and problems that arise from the situations
• If you were in the customer's shoes, what would make you prefer • Recognize competitor specific hints or landmines when talking
buying from the competition? to the customer
• If you were in the customer's shoes, what would make you prefer Consider this Milestone Achieved when:
buying from SAP? • You understand the competitive nature of this deal: You know
• What are the competition’s strengths/weaknesses compared to which competitors could be involved, which competitors are
SAP, and how will they argue against SAP? involved, and what their relationship to the customer is.
Identify Selection Consultants Disqualification Criteria:
• Determine if selection consultants are involved with evaluation? • If your investigation shows that the competition has a personal
• If so, what is the history of the selection consultant? Leverage edge over you and SAP that you cannot overcome – family or
LinkedIn for insight into career history. other close relations – be careful with the resources you spend
on this deal. Be prepared to let the deal go earlier rather than
– Are they biased towards a particular vendor (Oracle, IBM,
later. If no competitor involved, make sure SAP unique value is
Microsoft, etc)? Does consultant carry a specific technical skill set
firmly entrenched in customer to prevent competitors from
with a particular vendor?
establishing a beach head at the last minute.
– What organization does the selection consultant represent?
• Based on above info, are they friend or foe of SAP?
Consider

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Consider
Exit Milestone: Customer Agreement to Collaborative Action 1 2
Plan
Go/No Go Decision to Move Forward with the Opportunity • Do you need to augment the sales team?
• Based on understanding of Relationship Maps, Executive • Which steps need to be taken in order to generate the
Alignments, Compelling Events, and Competitive Landscape; appropriate value for the customer?
do you and SAP want to proceed with the deal? • Does the value proposition include future development?
Initiate Customer Specific Value Proposition and “Why Assess High Level Risk
SAP” • What are the general risks for you if you go on?
• Referring to the customer’s goals shared earlier, what exactly • What is the risk for the customer if they go on?
is the value of the SAP solution you are suggesting?
Identify Mitigation Strategy
• Can you begin inserting dollars in the value proposition?
• Do you have a mitigation strategy?
• Does the customer understand the “Why SAP” value
• Do you have a mitigation strategy for the customer?
proposition?
Define and Agree on Next Steps with Customer
– Click here to understand why customers select SAP
• Mutual Action Plan needs to be discussed and agreed to
Develop Solution Roadmap
• Click here to Access Sample Mutual Action Plan
• Do you have evidence for the customer commitment to
continue with the evaluation process? Ie have you confirmed • Click here to Access training for Mutual Action Plan
budget and timeline to execute in time expected?
• Does the customer have resources to continue with solution
proof activities?
Consider

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Consider
Exit Milestone: Customer Agreement to Collaborative Action 1 2
Plan
Selection Consultant Consider this Milestone Achieved when:

• Friend or foe? • A customer’s manager that can make a decision in this project
• Create mitigation strategy to take advantage of friendly has confirmed (via email) that they want to go on with the
consultant or create mitigation plan to limit influence if a foe. project according to the Mutual Action Plan and that they are
providing the resources necessary for the defined next steps.
Tips
• Bring all the information together that you have gathered
during the phase and derive action from the results. Make a • If your customer does not want to participate in defining the
decision whether or not your organization should continue, Mutual Action Plan, does not confirm that they want to go on,
given the customer’s commitment, the potential fit, the overall expressly refuses to do that in writing, or isn’t willing to bring in
attraction of the deal and the chances of winning it. the required resources, then you should revisit the decision
you made whether or not you want to go on with the deal,
• Set up a Mutual Action Plan with the Customer, i.e. you define because that may be a hint that they are not as committed as
the next steps together and the criteria for calling the steps a they would need to be.
success. This needs to be confirmed by a “power”
representative of the customer’s, i.e. someone who actually
can make a decision.
Consider

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Consider
Deliverables
• Opportunity qualified (8 criteria)

• Selection Criteria Obtained in Writing
• SAP and Partner Sales team established
• Customer agreed to Mutual Action Plan in
Writing
• Relationship Map
• Customer acknowledges SAP’s unique value
Consider

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Evaluate
Entry Criteria
Customer’s Management has agreed to the Mutual Action Plan and acknowledges SAP’s unique value
Milestones in Evaluate
1. Discovery
2. Competitive Strategy Defined
3. Key Customer Relationship Established
4. Solution Presentation
Main Goal of the Evaluate Phase (Exit Milestone)

Customer acknowledges SAP’s offering and agrees to proceed with a written close plan (short listed)
Deliverables
• Executive Alignment • Demo Dry Run

• Discovery Information Analyzed • Competitive Strategy Executed
• Selection Criteria Refined from Discovery • Mutual Action Plan Updated
• Solution Demo and Business Case Presented to Customer
Evaluate
Recognize Consider Select Negotiate Purchase

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Evaluate
Entry Criteria
Customer’s management has agreed to the

Mutual Action Plan and acknowledges SAP’s
unique value
Evaluate

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Evaluate
Milestone 1: Discovery 1 2
Prepare VAT team • Meet with all Line of Business executives involved in business
• Critical to get your Pre-Sales resource who will be performing transformation to discuss business requirements. Ensure Pre-
demo involved in discovery: Sales involvement in all discussions.
– Assist in identifying cross-sell and up sell opportunities • Focus on how SAP can help LOB Execs do more, do less, and
– Add credibility during demo do better of in business operations
– Consistently positioning “Why not SAP” during discovery • Apply Discovery Best Practices (click here Discovery Best
• Align Industry Experts and Subject Matter Experts for Practices e-learning)
Discovery • Access SAP Value Engineering benchmarking services via
– Take discovery to next level with low level details which your Partner Account Manager
Industry Experts and Subject Matter Experts best accomplish • Pre-Sales resource involved in Discovery needs to complete
• Clearly establish roles, responsibilities, and action items for all Solution Demo in order to instill consistency and credibility
VAT team members. Discovery Conclusion
Discovery • Update events in Mutual Action Plan
• With Pre-Sales and Subject Matter Experts, proceed with • Update and refine Selection Criteria based on Discovery
Discovery feedback
• Monetize business value in order to build business case and • Consider and create competitive analysis based on
ROI information obtained in Discovery
• Complete Business Case and confirming Business Value • Evaluate relationship with customer after discovery
during Discovery as second meeting to do so unlikely to – Have you achieved trusted advisor status?
happen – How are you going to influence their decision?
Evaluate

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Evaluate
Milestone 1: Discovery 1 2

• In this milestone, you are gathering as much information as • If customer is unwilling to free up resources for discovery, this
possible to assist in the demo script and creation of the could be a sign they are not interested in our solution or that
solution proposal. You need to involve Pre-Sales and Subject our competitors have a leg up. Reiterate that without time to
Matter Experts to get into the next level of details. You also do discovery, you cannot commit to additional sales resources
need to listen for competitive landmines as well as leaving without knowing the extent of their business transformation. Be
them yourself. aware of competitor landmines that arise during discovery and
make sure to leave landmines yourself as you complete
Consider this Milestone Achieved when: discovery and business case validation. The types of
landmines you run into reveal which competitors you are up
• You have acquired all the information from discovery to create against. Pay close attention when confronting these
a winning demo that hits upon all their points and business landmines.
value is easily defined and agreed to by customer.
Evaluate

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Evaluate
Milestone 2: Competitive Strategy Defined
Define Competitive Strategy – Recognize competitor specific hints when talking to the customer
• Who is the competition? • Leverage your SAP sales team
– For competitive information visit Competitive & Market – What is the competitor’s usual strategy against SAP?
Intelligence – How does SAP usually defend?
• Create a competitive analysis - What are their – How does the regular defense work with this specific customer?
strengths/weaknesses compared to SAP, and how will they • Develop a customized competitive strategy based on the
argue against us? information you gathered during the previous phase (Consider
– explicit strengths and weaknesses Milestone 4: Competitive Landscape Well Understood), Decide
– technical fit how to beat the competition. Find out what your customer thinks
– business fit about the competition and if necessary, customize the general
– cultural fit (e.g. has the customer a local vendor preference) approach that your SAP team suggests for beating a specific
– personal preferences of all key stakeholders
competitor.
– What is their relationship with the prospect/customer? Consider this Milestone Achieved when:
• ID the competition and match it to the Selection Criteria • You know your competitive strategy and are ready to execute on
– If competitors strengths closely match selection criteria, you
it.
will know who has closest relationship to customer. Disqualification Criteria
– Change game if needed by leveraging the SAP’s unique value • If your investigation shows that the competition has a personal
messaging. edge over SAP that we cannot overcome, for example, family or
• Evaluate the analysis with your internal and SAP team - If you other close relations, be careful with the resources you allocate
were in the customer's shoes, what could make you prefer to the deal, and be prepared to let the deal go earlier rather than
buying from the competition? later.
Evaluate
Entry Milestone Milestone Milestone Milestone

Key Exit
Deliverables
Criteria 1 2 3 Deliverables
4 Milestone
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Evaluate
Milestone 3: Key Customer Relationship Established 1 2
Establish Executive Alignment Strategy • Provide your and SAP’s Executives an Executive Summary
• You may already have established a relationship with your document of the opportunity and customer so they have all
main contact and perhaps even with other key stakeholders necessary information when they meet this customer’s
while interviewing them. Now it’s time to intensify already good Executives
relationships and improve the ones that are not perfect. • Ensure your executives and SAP executives send an executive
• Outline Executive Alignment Strategy reach out letter to the customer
– How much credibility does my company have with the • Your or SAP Executive will create introduction via email, then
Customer? follow up virtually if possible, and then setup live meeting
– How much credibility does SAP have with the customer? • Leverage demo as a way to create executive alignment. For
– Can we prove that your company and SAP are the right example, delay demo until executive alignment is established.
strategic partners for the customer? Leverage Marketing Events and Resources
– How can you build a personal relationship with my contacts? • What can SAP do in order to become more attractive to the
– Who are the right executives at your company? customer? Upcoming events?
– Work with SAP sales team to determine if any SAP executives – Invite to Sapphire, TechEd, Industry Events, etc
need to meet with the customer • Ask SAP sales team if any Local, Regional, and Global
Set up executive meetings Marketing events are a fit for your customer.
• Understand the relationships that the Sales Team members – Events you can participate in together will strengthen your
involved may have with customer contacts relationship
• Make sure that the people you set up meetings for are not only – Event you choose should be appropriate to the deal
a professional match (i.e. experts talking to experts), but • If deal is highly strategic, engage SAP senior leadership for
leverage personal relationships, if they exist. reach out
Evaluate

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Evaluate
Milestone 3: Key Customer Relationship Established 1 2
Prepare Initial Negotiation Strategy Consider this Milestone Achieved when:

• Work with the SAP sales team to understand general software • Every key stakeholder (or at least the power majority) has a
negotiation tactics positive attitude towards SAP that allows them to approve of
an SAP solution if it’s the right fit.
Tips
• Executive alignment needs to be completed prior to providing Disqualification Criteria
demo, otherwise you will lose any leverage you have • The best relationship with your main contact doesn’t help if the
remaining to establish executive alignment. If you proceed majority of power doesn’t share their attitude towards SAP.
with a demo before executive alignment, do not be surprised if Investigate: How come the attitude is not as positive as it
you cannot obtain executive alignment afterwards. should be? Do they have any kind of history with SAP?
• Do leverage the demo as a way to create executive alignment. • If your investigation shows that the competition has a personal
• While leveraging existing relationships, make sure not to edge over SAP that we cannot overcome – family or other
behave “too personal” close relations – be careful with the resources you spend on
this deal, and be prepared to let the deal go sooner rather than
• Align your level of “fraternization” with the customer’s culture later.
and the contact’s comfort zone.
Evaluate

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Evaluate
Milestone 4: Solution Presentation 1 2
Align SAP Solution to Customer Requirements • Did you align the solution presentation with key stakeholders?
• Match the customer’s requirements – the ones referring to the – You may have to combine several options (e.g. Demo +
business issue in general as well as the goals that individuals Reference + Test Installation etc.) to convince every stake
shared with you – with the SAP solution that fits. holder individually, given their different background (technical,
financial, operational, etc.)
• What is the scope of the solution?
– Complete a demo dry run with experts from your organization
– Make sure to understand clearly what is in scope and what is and the SAP sales team one week prior to the customers
out of scope of the solution, and make sure the customer
presentations of the solution proof.
understands that, too.
Research Applicable Customer References

Prepare Solution Presentation Strategy (Presentation &
Demo) • Can you leverage any customer references?
• What is the best way to present the solution presentation?
– Discuss with the sales team which options you have to deliver Prepare Business Case
solution presentation and also discuss which option the • Provide Cost and ROI Analysis, click here for sample analysis
customer finds most appealing.
• Reach out to your Partner Account Manager (PBM) to engage
• Are the right resources available? SAP’s Value Engineering Benchmarking team to help with
– Keep in mind the effort you put into the solution presentation; business case and ROI
ensure customer’s investment is justified by value (for the
• If necessary, engage SAP sales to complete business case
customer) and deal size (for you and SAP).
Evaluate

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Evaluate
Milestone 4: Solution Presentation 1 2

• In this Milestone, you gather everything that you need in order to • If your customer has inappropriate expectations towards the
prove the SAP solution is the right fit for the customer. This solution or SAP’s willingness to jump through hoops in order to
includes more internal tasks than customer conversations, but, prove it, you may find yourself in a situation where the effort
customer conversations are the best source of information on required to deliver solution proof is much higher than the deal
your customer’s operations. size or strategic importance of the deal would justify or your
• Make sure everybody on the sales team knows exactly what the competitors are convincing the customer to make you go the
overall goal is and which parts of the solution proof they are in extra mile to increase your cost of sales. In this case, be prepared
charge of. to step away.

• You know your solution proof strategy and are ready to execute
on it.
Evaluate

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Evaluate
Exit Milestone: Customer Acknowledges SAP Offering and 1 2
Agrees to Proceed
Outline the Customer-Specific Workshops and Demos to Understand the Customer's Point of View After Solution
Build Solution Proof (Solution, Implementation & Business Proof Delivery
Case) • After delivering the solution proof, make sure to talk to all
• Based on all the information you have gathered during this stakeholders and find out their point of view. Again, leverage
phase deliver the demo and business case in the ways that the established relationships
you have identified as the ones most appealing to this • Re-evaluate if we have strong executive relationships with the
customer and their specific situation. customer
• Include all key stakeholders • Ask for demo evaluation results
• Leverage the relationships between the customer and the Customer Agrees to Business Case Results
Sales Team members that have been established • After demo delivery, get customers confirmation of business
Deliver Demo and Business Case and Include Agreed upon case results.
Value Proposition and ROI • If agreement is not reached, probe further to see where the
• Apply the Competitive Strategy that you have defined during mark was missed and course correct where necessary to
the solution proof and in follow-up meetings reiterate business case.
– Is SAP ranking first against the competition after the demo?
– What is SAP's strategy on trapping the competition?
• Did you and SAP meet the customer's requirements?
Evaluate

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Evaluate
Exit Milestone: Customer Acknowledges SAP Offering and 1 2
Agrees to Proceed
Agree to a Close Plan in Writing Consider this Milestone Achieved when:

• After delivering proof send a letter/email to the Key Decision • Key Decision Maker(s) has confirmed the solution proof
Maker(s) delivery, the SAP offering, the close plan and the budget in an
email
– Describe how you proved that the solution is valid and
successful based on their requirements
– Include a Close Plan (steps to contract signature) - List next Disqualification Criteria
steps or a suggestion how to proceed • Solution proof to stakeholders failed – analyze why and how to
– Request confirmation of solution proof and budget resolve it, and if there is no way to resolve it, step away.
• Evaluate with the SAP sales team if the opportunity still meet • If after the evaluation your main Sponsor becomes
the qualification criteria? Does SAP continue to invest in unresponsive and refuses to confirm, you may want to discuss
opportunity pursuit? stepping away from the opportunity with your manager.
Tips
• When creating Sales Team, ask customer as a condition for
creating a demo, to have them provide you with demo
evaluation results after demo completion. Also ask for
competitions evaluation if relationship allows for it.
Evaluate

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Evaluate
Deliverables
• Executive Alignment
• Discovery Information Analyzed
• Selection Criteria Refined from Discovery
• Demo Dry Run
• Competitive Strategy Executed
• Collaborative Action Plan Updated
• Solution Demo and Business Case
Presented to Customer
Evaluate

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Select
Entry Criteria
Milestones in Select
1. Customer Buying Process Confirmed in Writing
2. Quote and Proposal Created
3. References Scheduled
4. Business Case Delivered
5. Customer Received and Accepted Final Proposal
Main Goal of the Select Phase (Exit Milestone)

Customer’s Evaluation team recommends SAP
Deliverables
• Quote and Proposal Presented • Business Case Delivered
• GAF Submitted • Customer Proposal Delivered
• References Scheduled and Delivered • Joint Close Plan Validated
Select
Recognize Consider Evaluate Negotiate Purchase
Entry Milestone Milestone Milestone Milestone Milestone Exit

Deliverables
Criteria 1 2 3 4 5 Milestone
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Select
Entry Criteria
Customer acknowledges SAP offering – SAP

solution short listed
Select

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Select
Milestone 1: Customer Buying Process Confirmed in Writing
Refine Solution Deployment Plan – Click here for sample Close Plan
• Discuss with Sales Team what happens after customer has signed – Click here for course on Close Plans
agreement Customer Purchasing Process Understood
– What do you need to prepare? • Have a conversation with your contact about details of
– Will customer require specific services and are these service available? purchasing process
– Is additional and specific paperwork required for these additional – How many signatures are required?
services? – Whose signatures are required and are they all available to
Define Close Plan sign paperwork in time before quarter end?
• Who needs to be involved in a formal purchasing process? – Does the customer use procurement systems that could hold
• What is the timeframe? up the process?
• How does your organization or SAP influence the purchasing Consider this Milestone Achieved when:
process? • You understand the customer’s purchasing process
• How do you perform against the competition (e.g. pricing, offering, including all details and are now sure that there is enough
etc)? time left in the quarter to finalize this purchasing process.
• Have customer agree to Close Plan if they select your SAP solution. Disqualification Criteria
– Close Plan is Mutual Action Plan from selection down to signature of • If there is not enough time left in the quarter to finalize all
final contracts by agreed upon date steps of the purchasing process, you will have to move the
– Mutual Action Plan continues all the way until go live and post go – live Opportunity to the next quarter.
support
Select

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Select
Milestone 2: Quote and Proposal Created 1 2
Create a Bill of Materials (BOM) Deal Approval

• Finalize all Bill of Materials items that is required for • Internal Partner Executive Approval
proposed solution. – Click here for Partner Ordering Requirements
• Make sure BOM is comparable to competitive offering. For • SAP Approval – Global Approval Form (GAF) submitted
example, make sure we are creating a BOM that is and approved, if necessary
comparing apples to apples with the competition. • Access to SAP’s Exception Discount Policy
Plan Revenue Recognition and Commercial Structuring
Create Quote • Do you need to share SAP’s standard End User License
• SAP’s unique value needs to be tied into quote. For Agreement (EULA)?
example, industry leading solution and best of breed Submit Final Response to RFx or Proposal to Customer
solutions should be highlighted to customer when presenting • Who should be involved in the proposal management
quote. process?
• Click here to access SAP Quote Tool’s • Who needs to be involved in a formal purchasing process?
Consider Competitive Pricing Strategy Tip
• Does your initial estimate match up with customer's budget? • Have solid understanding of deal and purchasing process
• Who has approved budget? complexity throughout discussion with customer
• What is the competitor’s pricing strategy? Consider this Milestone Achieved when:
• Is financing required? • Your customer received a first proposal.
Select

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Select
Milestone 2: Quote and Proposal Created 1 2
• If you have done your homework on calculating the actual value
based on the customer’s truthful numbers and also on proving the
solution being the right fit, your first proposal should be a solid
basis for starting negotiations in the next phase. If at this point in
time the requirements change, this can be a sign that the customer
is moving away from your SAP solution. At the very least, it means
that someone didn’t do their homework when coming up with the
solution and gathering the requirements in the first place.
However, it will be difficult to finalize the deal in the remaining time
in the quarter, so either move away or move the deal to the next
quarter.
Select

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Select
Milestone 3: Reference Scheduled 1 2
Considerations for References to Present to Customer Prepare to Ask Customer for Additional Commitment in
• Is the reference willing to share a positive story? Return for Access to References
• Does the reference belong in the same or similar industry? • Ask for commitment to select your solution if reference(s) turn
out well.
• Did the reference purchase the same if not similar solution to
your customer? • If your SAP solution is selected as the vendor of choice, will
the customer become a reference if their business goals are
• Did your reference consider the same competitors your
met with the solution.
customer is facing? If so, can they articulate why they selected
your SAP over the competition? • Ask for additional access to C-level executives in exchange for
references.
• Obtain questions from customer ahead of time to prepare
reference customer well ahead of time. • Make sure there is some give and get involved when providing
references, especially with information you were unable to
• Did you or the SAP/Partner Account team have a level set call obtain earlier in the sales cycle.
with the reference to prepare them for the context and type of
questions the customer may ask?
• Can the reference provide hard ROI numbers to your
customer?
• To access the Partner Reference Portal click here
Select

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Select
Milestone 3: Reference Scheduled 1 2
Tips
• If you are unable to find a positive reference suitable for the
• If at this stage the customer is asking for customer references, the
customer, this may cause concern for the customer and add
account team needs to be prepared to provide a give/get with the
additional risk.
customer to ensure the customer has “skin in the game” at this
point. This ensures the customer understands that you expect to be • Reference was not properly prepared and provides less than
moving towards a purchase. positive feedback for the SAP solution.
• When selecting a reference, make sure it is relevant to your • If the customer is unwilling to provide “an ask” in exchange for
customer industry/solution/business challenge. You will want to the reference, or refuses to provide a list of questions ahead of
avoid using references if they are bitter rivals in the same space time, or insists they speak with the reference in private, they
(think Coca Cola and Pepsi). may have been coached by a competitor. You will need to
deftly push back against the customer to let them know our
• If possible try to facilitate a call between the reference and customer
references are a precious asset and you need to respect their
so that you can make sure to avoid landmines during the reference
time. Make the point that if the customer were to become an
call. The account team should ensure they complete their due
SAP reference, you would respect their time and privacy to
diligence by asking the customer to provide a list of questions they
make sure they are fully prepared and the right fit to provide a
would like to ask the reference in order to help the reference
reference before asking for their time. If the customer is still
prepare and to respect their time. Once the list of questions has
unwilling to agree to these terms, you may have to ask the
been received, you will want to pass them along to the reference
tough questions to understand their demands and share
and discuss the optimal approach in answering the questions.
experiences why this hasn’t worked in the past with other
customers. This may be a sign that we are column fodder and
Consider this Milestone Achieved when: they are asking for references because it is part of RFP
• Your customer has received the positive references and are process.
prepared to select SAP solution.
Select

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Select
Milestone 4: Business Case Delivered 1 2
Business Case and ROI Delivered Tips

• Total cost of solution (License, Maintenance/Support, • In the business case proposal stage, you will be articulating
Discounting, Implementation, etc) the business value of the SAP solution by referencing all the
• Total Return on Investment in Year 1,2,3,4, and 5? information uncovered during discovery sessions, business
interviews, and analysis. The “Why SAP” message should be
• Time to Value (Length of time to break even on investment) clear and concise as well as SAP’s industry expertise across
• Provide Cost and ROI Analysis, click here for sample analysis the dozens of industries across all regions of the world.
• Articulate cost to organization if they choose to do nothing. Customer selection team should agree to the business case
that is being presented. If there is a disconnect between with
• If necessary, present average ROI and pitfalls if they move the business case then this time should be used to clarify any
forward with competitor. (Only do this if customer needs to confusion before moving forward.
have ROI comparisons with competitors).
• Solid interpersonal, business acumen, financial literacy, and
• Timeline of project and internal HR requirements presentation skills will be required in this stage.
• Agreement to Business Case and ROI achieved from
customer’s stakeholders and senior leadership.
• Leverage Value Engineering Services for Business Case,
Benchmarking, Move the Needle, etc. Reach out to your
Partner Account Manager to leverage the benchmarking
services.
Select

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Select
Milestone 4: Business Case Delivered 1 2
Consider this Milestone Achieved when: Disqualification Criteria

• Your customer’s evaluation team recommends purchasing • If the customer does not agree the business case/value
your SAP solution. contained within the proposal, then you will need to take a
• Customer agrees to a written Close Plan which describes in step back to understand where the disconnect is. The
writing the mutual action plan and timelines required to customer should be able to articulate their concerns and
execute a software agreement by the agreed upon timelines. expectations and what exactly is not wrapping the business
case neatly for them. This may also be a negotiation tactic
used to see whether or not you are willing to adjust their
proposal for more discounting or trying to create a bidding war
between your SAP solution and competitors. The account
team should reiterate the business needs and ROI uncovered
throughout the sales cycle before offering more discounts. If
you feel the customer has you in a bidding war, reiterate the
value, industry expertise, and references of your solutions to
get past the price objection. If you are in a bidding war, you
may consider pulling out of the bidding and let customer know
that your organization/SAP has a best practice of negotiating
with customers that are committed to your organization/SAP
and that negotiations can continue once customer has decided
that your organization/SAP solution is their solution of choice.
Select

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Select
Milestone 5: Customer Received and Accepted Final 1 2
Proposal
Finalize Proposal Present Proposal to Customer

• The last milestone of the previous phase was about getting a • Set up a kickoff meeting to begin discussion of terms and
technical decision: a decision for the solution. This one is conditions
about the economical and/or political and/or strategic decision:
Tip
a decision for the vendor.
• If they do get unresponsive, a trick to at least make them react
• When presenting the proposal, leverage all the information
can be to withdraw the proposal in a polite email or letter.
you have gathered and make sure to show the connection
Even if proposal has officially expired, the gesture as such is
between all the requirements of all the stakeholders and how
so unusual that the probability to get a reaction from them is
they are met in the proposed solution.
quite high, and at this point in time, any reaction is better than
• Include business case information: How much does your complete silence.
customer save or gain by buying from you and do it rather
earlier than later.
• Point out and refer to references the customer has been
presented with during solution proof what a strong partner
SAP is. To access the SAP Reference Portal click here
Select

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Select
Milestone 5: Customer Received and Accepted Final 1 2
Proposal

• The customer has accepted the final proposal.
• If the customer suddenly starts discussing functionality and
requirements again, this is not a good sign: Be prepared to
talk internally about stepping away.
• If the customer gets unresponsive, this may be a sign that they
are talking to the competition or that something has come up
that that kills or delays the deal, and they don’t want to give
you the bad news.
• If they don’t want to give you or discuss bad news, this means
that your relationship with the customer is not really based on
trust. If it were, then your contacts should not be afraid to give
you bad news.
Select

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Select
Exit Milestone: Customer’s Evaluation Team Recommends 1 2
SAP
Customer’s Evaluation Team Recommends Moving Tips

Forward with SAP Solution • You will be project managing until the final signed contracts
• Verbal and/or written communication from customer key have arrived from this point forward.
stakeholder clearly indicates that SAP is the selected solution • It’s crucial to maintain collaboration with all parties involved in
the deal: The customer contact, your organization, and SAP
Validate Joint Close Plan Sales Team members. Make sure everybody is aware of the
• What are the major actions in the critical path to close the steps that need to be taken on the way to closing the deal and
deal? what their role is. You as a sales person are a project leader
now, and the close plan is your project plan. Write this plan
• Is the Close Plan set up with special emphasis on concrete down, include clear deadlines and clear responsibilities and
dates and actions that tie back to the customer's decision and make sure everybody involved in the deal has an updated
procurement process? copy at their hands all the time.
• Are there obstacles or red flags? • Click here for sample Close Plan
Select

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Select
Exit Milestone: Customer’s Evaluation Team Recommends 1 2
SAP

• The customer’s evaluation team has confirmed they
recommend your SAP solution.
• If the customer’s evaluation team at this point in time prefers
another vendor, it’s quite a clear sign that your SAP solution
may not win this deal. Less clear, but nevertheless signs that
something may be less than perfect are:
– Inability to agree on deadlines within the close plan
– Customer becomes unresponsive
Select

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Select
Deliverables
• Quote and Proposal Presented

• GAF Submitted
• References Scheduled and Delivered
• Business Case Delivered
• Customer Proposal Delivered
• Joint Close Plan Validated
Select

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Negotiate
Entry Criteria
Customer’s Evaluation Team Recommends SAP
Milestones in Negotiate
1. Business and Legal Terms and Conditions
2. Crawl, Walk, Run Options
3. Customer CFO Review Meeting
Main Goal of the Negotiate Phase (Exit Milestone)

Negotiations and Contracts Finalized
Deliverables
• Proposal with options – crawl, walk, run (SAP will not request to view this document)
• Customer CFO Review meeting
• Confirmation of written close plan
• Negotiations Completed and Final Contracts Delivered
Negotiate
Recognize Consider Evaluate Select Purchase

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Negotiate
Entry Criteria
Negotiate

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Negotiate
Milestone 1: Business and Legal Terms and Conditions 1 2
Define Business versus Legal Terms and Conditions • Are you prepared for counter attacks? Ask customers legal
• Understand customers complete set of Business and Legal Terms and team for points of contention so your legal team can review
Conditions: precedence before the call. This will help avoid surprises and
– Business Terms and Conditions relates to proposal, pricing, quantity, licensing, is a best practice to set your counsel up for success.
financing, implementation terms of the solution proposal and will require approval Begin Formal Negotiations of Terms and Conditions
from Sales leadership and is typically approval via SAP GAF process • Get a confirmation in email of the close plan (steps and
– Legal Terms and Conditions strictly relate to the contract terms and conditions and timeline for final approval of contract and physical receipt of
will require approval from Partner Legal Counsel or SAP Legal Counsel to amend signed contract). Click here to access sample Close Plan.
terms.
• Understand what business and legal terms your organization
Define Negotiation Team and Refine Negotiation Strategy can offer before requiring SAP approval. Click here to access
• Are US GAAP terms considered? the Discount Exception Policy.
• Is Legal approval in place? • When the technical decision has been made, T&Cs and price
– Negotiating price is one thing, negotiating Terms and Conditions is another. are what remain. Based on the numbers you collected, got
Usually, the bigger the company, the more will they insist on using their own T&Cs. confirmed and presented before, the actual value of the
So your legal teams have to talk to one another, and you should make sure that the solution should be clear to the customer. Nevertheless, they
your legal team understand your overall negotiation strategy, so by insisting on or
may have reasons why they don’t want to spend the full
giving away certain terms, they do not weaken your negotiation position. To access
amount right away. Instead of giving away T&Cs you may
SAP PartnerEdge Agreement Packages click here.
want to propose crawl, walk, run options.
• Is customer legal counsel going to be engaged? If so, make sure your legal
team or SAP Legal team is on the call. Do NOT proceed to speak to customers • If required, has SAP Sales and Legal teams been included
counsel without your own legal representation. regarding any changes to standard Terms and Conditions?
Negotiate

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Negotiate
Milestone 1: Business and Legal Terms and Conditions 1 2
Negotiating Give and Gets Tips

• Understand all the gives and gets required to get a deal • Customer will want the most favorable financial terms and will use
finalized the timing of the quarter to exert pressure and influence for their
• Typical customers “gives” or requests: terms.
– Discounted pricing • To avoid significant financial concessions try to negotiate pricing in
– Payment Terms the earliest stages of a quarter possible and relate back to SAP
– Lower maintenance rates unique value and expected ROI.
– Deferred maintenance payments (Maintenance Parking) • If financials concessions are provided make sure they are
contingent in response to get something back in return like
– Indemnity clauses in Terms and Conditions
committing to a close date, commitment to becoming a future
– Financing
reference, or attendance/participation in a customer facing event.
– Future functionality requests
– Future Exchange Rights
• The customer has confirmed that SAP is the preferred vendor.
– Synchronization of Maintenance Dates
• Typical vendors “gets” in exchanges for customer “gives”:
• If the customer suddenly starts discussing functionality and
– Commitment to closing dates
requirements again, this is not a good sign: Be prepared to talk to
– Customer agreement to be future reference
your manager about mitigation strategy.
– Attendance to customer events (Sapphire, TechEd, Industry
• If the customer gets unresponsive, this may be a sign that they are
Forums, etc)
also negotiating with the competition or that something has come
– Participation in customer events (Sapphire, TechEd, Industry
up that that kills or delays the deal, and they don’t want to give you
Forums, etc)
the bad news.
Negotiate

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Negotiate
Milestone 2: Crawl, Walk, Run Options
Crawl Tips
• If customer is hesitant about larger effort of transformation, • Always begin negotiations with the Run option and move to
provide crawl option which can be positioned as a pilot project Walk and Crawl options if you risk losing the deal or coming to
from which a larger transaction will stem from upon success of “No Decision” decision. Always position financing as first means
pilot project. to overcome budget/pricing objections before discounting.
Walk Reiterate agreed upon business value of solution and expected
• Provide this option if customer requires larger scale than crawl positive impact to business while negotiating.
option but may not have all the funds at this time to proceed Consider this Milestone Achieved when:
with run option or is risk averse to complete transformation. • Customer agrees to begin negotiations on the Terms and
Run Conditions of one of the proposals.
• This option should cover all the customers business Disqualification Criteria
transformation priorities as well as allow room for future user • If the customer gets unresponsive, this may be a sign that they
and functionality expansion. This should is the best case/all-in are talking to the competition or that something has come up
option from which you begin negotiations from. that that kills or delays the deal, and they don’t want to give
you the bad news.
• When in a competitive bidding process make sure your
proposal is an apples to apples comparison with our
competitors and make sure our customer understands the
similarities and differences and why SAP choice is the correct
one.
Negotiate

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Negotiate
Milestone 3: Customer CFO Review Meeting
Match CFO to your Executive Tips

• Make sure that not only is your executive a professional • If they do get unresponsive, a technique to at least make them
match, but also leverage personal relationships if they exist. If react can be to withdraw the proposal in a polite email or
unsure of executive match, discuss with your manager or SAP letter. Even if officially it’s already expired, the gesture as such
sales team. is so unusual that the probability to get a reaction from them is
quite high, and at this point in time, any reaction is better than
Execute Review Meeting complete silence.
• Provide yours and SAP’s Executives with an Executive
Summary of the opportunity and customer so they have all Consider this Milestone Achieved when:
necessary information when they meet the customer’s • The customer CFO meeting has been executed.
Executives. Click here for a sample Executive Summary
template. Disqualification Criteria
• Ensure your executive and/or SAP executives send an • If the customer gets unresponsive, this may be a sign that they
executive invite to meet with your customers executive suite are negotiating with the competition or that something has
(preferably CFO as they typically hold purse strings and final come up that that kills or delays the deal, and they don’t want
signing authority for Capital Expenditures). to give you the bad news.
• If customer doesn’t want to give you or discuss bad news, this
means that your relationship with the customer is not really
based on trust. If it were, then your contacts should not be
afraid to give you bad news.
Negotiate

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Negotiate
Exit Milestone: Negotiations and Contracts Finalized 1 2
Confirmation of Deal Execution Update Joint Close Plan

• Confirm with customer what is required to strike deal • Update Joint Close Plan with customer to ensure all steps
Finalize Financial Terms appropriate steps are being completed in lead up to close date
• Utilize your organizational negotiation practices to agree to Tips
financial levels acceptable to you and customer • If customer does not have appetite to pay full amount of
• Ask customer to become future reference in exchange for any investment right away, first suggest Structured Payment or
financial concessions customer is seeking Financing before amending Terms and Conditions.
Finalize Terms and Conditions • Based on changes does the contract need to go through
• Have SAP (Revenue Recognition and Contract) teams been additional customer approvals or reviews?
consulted and approved any changes to standard terms and – Based on changes, does another signatory need to be included?
conditions? – Is the signer available/reachable?
Deliver Executable Contract • A customer becoming a reference is a win/win situation for both
• Ensure signing authorities receive copies of executable the customer and the reference customer happy because your
contracts organization and SAP will be vested in the projects success for
future reference purposes.
• Ensure customer legal and/or procurement teams also receive
copies to avoid delay in execution of contract Consider this Milestone Achieved when:
• The customer has received an executable contract, i.e. all that is
missing now is the customer signature.
Negotiate

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Negotiate
Exit Milestone: Negotiations and Contracts Finalized 1 2
• At this point in time, nothing less than a natural disaster should
lead to the disqualification of a deal. Nevertheless, there can
be reasons why a deal may still get lost or – more likely,
postponed to a future quarter:
– unexpected unavailability of a key decision maker whose
signature is required (illness / death. Vacation cannot be such
a factor, because that is something that should have been
clarified in the previous milestone)
– unexpected exterior factor (e.g. law being passed that leads to
re-evaluation or reprioritization of underlying business issue,
natural disaster)
– unexpected interior factor (e.g. bankruptcy)
Negotiate

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Negotiate
Deliverables
• Proposal with Options – crawl, walk, run

(SAP will not request to view this document)
• Customer CFO Review Meeting
• Confirmation of Written Close Plan
• Negotiations Completed and Final Contracts
Delivered
Negotiate

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Purchase
Entry Criteria
Negotiations Completed and Final Contracts Delivered
Milestones in Purchase
1. Contract Signed – Booking Package Submitted
Main Goal of the Purchase Phase (Exit Milestone)

Contract signed by the customer
Deliverables
• Contracts signed by the Customer
• Order Package Submitted
• Order Booked
Purchase
Recognize Consider Evaluate Select Negotiate
Entry Milestone
Deliverables
Criteria 1
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Purchase
Entry Criteria
Negotiations Completed and Final Contracts

Delivered
Purchase
Entry Milestone
Deliverables
Criteria 1
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Purchase
Milestone 1: Contract Signed – Booking Package Submitted 1 2
Receive Signed Contract/Documents Confirm with SAP Finance that Order has been Booked
• While waiting: Whose signature exactly are you waiting for?
• Why is there a delay? Complete Transition to your Services team
• Who can help fix it and speed things up?
Tips
Legal Countersignature • Depending on the importance of the deal, you should be
aware at any time on whose desk the contract is waiting for a
• Countersign contracts and send completed contracts to signature and be able to contact someone at the customer
customer and to SAP Partner Order Management who will help in case there is a delay. In order to do that, you
need to know and ideally have 1st hand contact with
Initiate Handover to Order Management assistants, secretaries and other people who at first glance
• Is the order/deal package completed? may seem to be of less significance, but who can actually save
your deal at quarter end if e.g. a fax machine isn’t working or
• If on your organization’s paper, make sure all the steps been an important manager who needs to sign is stuck in meetings.
executed to allow revenue recognitions? (e.g. Download Also, when waiting on contracts it is important to ask who else
Letter, license key, shipment, etc). Visit PartnerEdge.com for can execute agreements in case the original executor is
Ordering Requirements. unable to do so.
• When the contract comes back signed, you need to check the
formalities: Has anything been changed by the customer, are
all documents signed that require a signature, are email
addresses and ship-to addresses in place?
Purchase
Entry Milestone
Deliverables
Criteria 1
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Purchase
Milestone 1: Contract Signed – Booking Package Submitted 1 2
Consider this Milestone Achieved when: Disqualification Criteria

• You have received the signed contract and the paperwork is • At this point in time, nothing less than a natural disaster should
complete, submitted to order and ready to be booked. lead to the disqualification of a deal. Nevertheless, there can
• Paperwork has been completed be reasons why a deal may still get lost or – more likely,
postponed to a future quarter:
• Partner Booking Package completed and submitted
– unexpected unavailability of a key decision maker whose
• SAP team is aware deal is closed and is flagged as booked in signature is required (illness / death. Vacation cannot be such
SAP CRM a factor, because that is something that should have been
• Your organization prepares customer invoice clarified in the previous milestone)
– unexpected exterior factor (e.g. law being passed that leads to
re-evaluation or reprioritization of underlying business issue,
natural disaster)
– unexpected interior factor (e.g. bankruptcy)
Purchase
Entry Milestone
Deliverables
Criteria 1
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Purchase
Deliverables

• Order Booked
Purchase
Entry Milestone
Deliverables
Criteria 1
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Appendix
Recognize Consider Evaluate Select Negotiate Purchase
SAP Global Partner Enablement

Glossary
Time Frame Decision Maker

When the solution to eliminate the compelling event is needed to stop the Individuals in accounts that make final decisions and recommendations
compelling event from occurring. towards a vendor selection. In many instance, decision makers are the
same contacts that also own the budget and business outcomes of the
Compelling Event project.
When the customer’s perceived value of a solution so dramatically
outweighs the current cost of doing business, that they can no longer afford Partner S-ID#
(or justify) not buying or delaying the purchase. The Compelling Event is a Assigned during on ramp of your organization and is required to access all
C-level motive why the client must act on an initiative by a specific date in SAP PartnerEdge.com systems. Contact your local PBM/PSD to obtain
order to avoid unfortunate consequences and to which management has your S-ID#.
assigned and secured resources and budget or is about to do so, because Champion / Stakeholders
they see the urgency. If the customer’s action includes purchasing a A customer employee who is on our side and sells SAP internally. The
solution from SAP, then it’s not only a Compelling Event for the customer,
Champion/Stakeholder will influence the deal or even be involved in the
but also a compelling event for the SAP opportunity.
decision making. Also, the Champion/Stakeholder has the power and is
willing to grant us access to the Decision Maker.
Deal Qualification
As part of the Franchise for Success sales methodology (FSM), Deal A Champion/Stakeholder does not help you because they like you
Execution focuses on answering one key question: How do we improve our personally, rather they help you because it helps them achieve their
chances of winning addressing the needs of our customers in a fast- personal goal.
changing environment? We confirmed that each deal is a real deal based
on the 8 deal qualification criteria, and we know how to close the deal based
on an agreed Close Plan, outlining the required steps from solution proof to Strong Functional Fit
contract signature. In short: Make the deal real and bring it home. Proposed solution strongly matches the business challenges and/or goals of
customer without significant custom development or workarounds.
Key Influencer
Any individual within an account that can influence decision makers towards
a particular vendor.
Recognize Consider Evaluate Select Negotiate Purchase
SAP NORTH AMERICA

SAPPARTNER
UNIVERSITY
Recognize
Entry Criteria
Customer Management is not aligned to existing business issues
Milestones in Recognize
1. Account Situation Analyzed
2. Customer Goals, Needs, and Business Challenges Identified
3. Selection Criteria and Why SAP
Main Goal of the Recognize Phase (Exit Milestone)

Customer Management agrees to Business Issues and that SAP can contribute
Deliverables in Recognize Phase

• Account Map
• Compelling Event
• Strong Functional Fit
• Use Cases Identified
• SAP Unique Value Message Delivered to Customer
Recognize

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Consider
Entry Criteria
Customer Management agreed to business issues and that SAP can contribute
Milestones in Consider
1. Sales Team Setup
2. Relationship Map and Executive Alignments Identified
3. Compelling Event Aligned with Customer
4. Competitive Landscape Well Understood
Main Goal of the Consider Phase (Exit Milestone)

Customer agreement to Mutual Action Plan and acknowledges SAP’s unique value
Deliverables
• Opportunity is qualified (8 criteria)
• Selection Criteria Obtained in Writing
• SAP and Partner Sales team established
• Relationship Map
• Customer agreed to Mutual Action Plan (Dates, Actions, Owners etc.) in Writing
• Customer acknowledges SAP’s unique value
Consider

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Evaluate
Entry Criteria
Customer’s management has agreed to the Mutual Action Plan and acknowledges SAP’s unique value
Milestones in Evaluate
1. Discovery
2. Competitive Strategy Defined
3. Key Customer Relationship Established
4. Solution Presentation
Main Goal of the Evaluate Phase (Exit Milestone)

Deliverables
• Executive Alignment • Demo Dry Run

• Discovery Information Analyzed • Competitive Strategy Executed
• Selection Criteria Refined from Discovery • Mutual Action Plan Updated
• Solution Demo and Business Case Presented to Customer
Evaluate

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Select
Entry Criteria
Milestones in Select
1. Customer Buying Process Confirmed in Writing
2. Quote and Proposal Created
3. References Scheduled
4. Business Case Delivered
5. Customer Received and Accepted Final Proposal
Main Goal of the Select Phase (Exit Milestone)

Customer’s Evaluation team recommends SAP
Deliverables
• Quote and Proposal Presented • Business Case Delivered
• GAF Submitted • Customer Proposal Delivered
• References Scheduled and Delivered • Joint Close Plan Validated
Select

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Negotiate
Entry Criteria
Milestones in Negotiate
1. Business and Legal Terms and Conditions
2. Crawl, Walk, Run Options
3. Customer CFO Review Meeting
Main Goal of the Negotiate Phase (Exit Milestone)

Negotiations and Contracts Finalized
Deliverables
• Proposal with options – crawl, walk, run (SAP will not request to view this document)
• Customer CFO Review meeting
• Confirmation of written close plan
• Negotiations Completed and Final Contracts Delivered
Negotiate

Deliverables
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY
Purchase
Entry Criteria
Negotiations Completed and Final Contracts Delivered
Milestones in Purchase
1. Contract Signed – Booking Package Submitted
Main Goal of the Purchase Phase (Exit Milestone)

Contract signed by the customer
Deliverables
• Order Booked
Purchase
Entry Milestone
Deliverables
Criteria 1
SAP NORTH AMERICA
SAPPARTNER
UNIVERSITY

FSM - Partner Phasebook Overview Final

Transféré par

Informations du document

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

FSM - Partner Phasebook Overview Final

Transféré par

Droits d'auteur :

Formats disponibles

Franchise Sales Methodology

Phase Book – Partner Version

F - Recognize E - Consider D - Evaluate C - Select B - Negotiate A - Purchase

SAPs Franchise Sales Methodology (FSM) is used to

F - Recognize E - Consider D - Evaluate C - Select B - Negotiate A - Purchase

F - Recognize E - Consider D - Evaluate C - Select B - Negotiate A - Purchase

Links to Videos in Sales Excellence FSM Training *

* To be used in conjunction with this document to expand your knowledge

Main Goal of the Recognize Phase (Exit Milestone)

Deliverables in Recognize Phase

Entry Milestone Milestone Milestone Exit

Customer management is not aligned to existing

Entry Milestone Milestone Milestone Exit

Entry Milestone Milestone Milestone Exit

Tips Disqualification Criteria

Consider this Milestone Achieved when:

Entry Milestone Milestone Milestone Exit

Enhance Prospect/Customer’s Awareness of Tips

Match Customer Goals/Objectives with Potential

– Is there a strong functional fit?

Entry Milestone Milestone Milestone Exit

Identify Key Decision Makers • Leverage SAP expertise in customer’s industry

Entry Milestone Milestone Milestone Exit

Determine Selection Criteria Consider this Milestone Achieved when:

Entry Milestone Milestone Milestone Exit

Issues and that SAP can Contribute

Entry Milestone Milestone Milestone Exit

Issues and that SAP can Contribute

Consider this Milestone Achieved when:

Entry Milestone Milestone Milestone Exit

Entry Milestone Milestone Milestone Exit

Main Goal of the Consider Phase (Exit Milestone)

Entry Milestone Milestone Milestone Milestone Exit

Customer management agreed to business

Entry Milestone Milestone Milestone Milestone Exit

Entry Milestone Milestone Milestone Milestone Exit

Confirm Selection Criteria Tips

Entry Milestone Milestone Milestone Milestone Exit

• To access SAP’s relationship map template (aka Power Map) click

Entry Milestone Milestone Milestone Milestone Exit

Consider this Milestone Achieved when:

Entry Milestone Milestone Milestone Milestone Exit

Agree on Business Issue and Requirements Tips

Entry Milestone Milestone Milestone Milestone Exit

Entry Milestone Milestone Milestone Milestone Exit

Entry Milestone Milestone Milestone Milestone Exit

Selection Consultant Consider this Milestone Achieved when:

Entry Milestone Milestone Milestone Milestone Exit

• Opportunity qualified (8 criteria)

Entry Milestone Milestone Milestone Milestone Exit

Main Goal of the Evaluate Phase (Exit Milestone)

• Executive Alignment • Demo Dry Run

Entry Milestone Milestone Milestone Milestone Exit

Customer’s management has agreed to the

Entry Milestone Milestone Milestone Milestone Exit

Entry Milestone Milestone Milestone Milestone Exit

Tips Disqualification Criteria

Entry Milestone Milestone Milestone Milestone Exit

Entry Milestone Milestone Milestone Milestone

Entry Milestone Milestone Milestone Milestone Exit

Prepare Initial Negotiation Strategy Consider this Milestone Achieved when:

Entry Milestone Milestone Milestone Milestone Exit

Research Applicable Customer References

Entry Milestone Milestone Milestone Milestone Exit