Scrum for Sales: A B2B Guide to Agility in Organization, Performance, and Management PDF
Preview Scrum for Sales: A B2B Guide to Agility in Organization, Performance, and Management
Future of Business and Finance Michael J. Scherm Scrum for Sales A B2B Guide to Agility in Organization, Performance, and Management Future of Business and Finance TheFutureofBusinessandFinancebookseriesfeaturesprofessionalworksaimedat defining,describingandchartingthefuturetrendsinthesefields.Thefocusismainly onstrategicdirections,technologicaladvances,challengesandsolutionswhichmay affect the way we do business tomorrow, including the future of sustainability and governance practices. Mainly written by practitioners, consultants and academic thinkers, the books are intended to spark and inform further discussions and developments. Moreinformationaboutthisseriesathttp://www.springer.com/series/16360 Michael J. Scherm Scrum for Sales A B2B Guide to Agility in Organization, Performance, and Management MichaelJ.Scherm Straubing,Germany ISSN2662-2467 ISSN2662-2475 (electronic) FutureofBusinessandFinance ISBN978-3-030-82977-3 ISBN978-3-030-82978-0 (eBook) https://doi.org/10.1007/978-3-030-82978-0 #TheEditor(s)(ifapplicable)andTheAuthor(s),underexclusivelicensetoSpringerNatureSwitzerland AG2021 Thisworkissubjecttocopyright.AllrightsaresolelyandexclusivelylicensedbythePublisher,whether thewholeorpartofthematerialisconcerned,specificallytherightsoftranslation,reprinting,reuseof illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similarordissimilarmethodologynowknownorhereafterdeveloped. Theuseofgeneraldescriptivenames,registerednames,trademarks,servicemarks,etc.inthispublication doesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexemptfromtherelevant protectivelawsandregulationsandthereforefreeforgeneraluse. The publisher, the authors, and the editorsare safeto assume that the adviceand informationin this bookarebelievedtobetrueandaccurateatthedateofpublication.Neitherthepublishernortheauthorsor theeditorsgiveawarranty,expressedorimplied,withrespecttothematerialcontainedhereinorforany errorsoromissionsthatmayhavebeenmade.Thepublisherremainsneutralwithregardtojurisdictional claimsinpublishedmapsandinstitutionalaffiliations. ThisSpringerimprintispublishedbytheregisteredcompanySpringerNatureSwitzerlandAG. Theregisteredcompanyaddressis:Gewerbestrasse11,6330Cham,Switzerland Preface Thecallcameunexpectedly:“Oursalesapproachneedstobecomeagile,”theclient toldtheScrumMaster,“canyouhelpus?”Intuitively,theScrumMasteraskedafew questions. The client’s answers were enthusiastic and detailed. He mentioned new products, which were to be sold in new markets. He described growth potential waitingtobetappedinto.Heenvisionedanew,faster-pacedwayofsellingfollowed by ever-more, ever-grander ideas, packed in clouds of confidence and optimism. Embracingagilitywouldchangevirtuallyeverythingforthebetter. Butwhatwoulditchange?TheScrumMasterprobedfurther.Asitturnedout,a newsalesapproachwasnotwhattheclientneeded. Atleastnotinitially.Whatthe client really needed were salespeople who are not shy of talking to new contacts, product developers who involve the company’s salespeople in the design of new solutions, and corporate controllers who allow account managers to make budget decisions. What the company really needed was courage, cooperation, and trust— not just in sales, but across the whole organization. More agility would be the consequenceoffixingtheseissues,butitwouldnotbetheremedy.Nowthatthese pointshadbeenclarified,itmadesensetodiscusshowScrumcouldhelptogenerate benefits. Agility is often a rather diffused idea. Corporate executives have witnessed young, “agile” companies such as Netflix, Spotify, Reddit, Basecamp, Robinhood, and Fitbit pop up and take the market by storm. Naturally, they wanttheirowncompaniestobecomeequallyagile.Asaleadingagileframework, Scrumisoneofthefirstthingsthatcomestomindwhentheythinkabouthowto implement “agility.” But Scrum must make sense. There must be a reason for it.Theremustbeaclearideaofwhatistobechangedwithit.Theremustbeaclear understanding of what issues Scrum can solve and what it cannot. Early protagonistsoftheScrumcommunity,suchasJeffSutherland,RinivanSolingen, and Denny deWaard, soon started thinking about how Scrum could be used to change the way sales organizations work. However, with the exception of some initial conceptual thoughts, there is no major documentation that explains how exactly Scrum can work in sales and what specific issues it can solve in a sales context. Scrum for Sales intends to close this gap. Chapter 1 lays out some of the main challenges that today’s sales organizations face. Chapter 2 describes how Scrum v vi Preface worksingeneral.Inaddition,thechapterexplainswhyScrumcameintoexistencein thefirstplace.Itshowsthattheissuessoftwareorganizationsfacedbeforetheadvent of Scrum were not much different from those that today’s sales organizations are forced to cope with. The chapter also helps readers to understand the general concepts and ideas of Scrum. Chapters 3, 4, and 5 then explain in detail how Scrumprojectsareputtoworkinthreecoresalesdisciplines:customeracquisition, opportunity management, and pipeline management. They provide in-depth examples of Product Backlogs and User Stories. They discuss how the different Scrumrolesareideallystaffed.TheydescribehowSprintsandScrumeventscanbe structuredspecificallyinsales.Andtheyprovidecontentaswellastoolsthatbring thebarrenframeworkofScrumtolife.Finally,Chap.6isdevotedtosalesmanage- mentinScrum. Thisbookisintendedforsalespeopleandsalesmanagerswhowanttobetterserve theircustomerswithScrumbutdonotyetknowhowScrumworks.Itisalsoabook forpeoplewhoarealreadyfamiliarwithScrumbutwanttounderstandhowitcanbe appliedspecificallytosales.Therefore,itisasmuchabookaboutsalesasitisabout Scrum: The User Stories included in it provide a detailed account of how modern customer acquisition, opportunity management, and pipeline management can be implementedfromacustomer’spointofview,toincreasecustomersatisfaction,and to maximize long-term value for both customer and vendor. It provides sales managers with nuggets of advice based on philosophical, historical, and scientific thinking that does not usually make it into books about sales. The book is also methodology-agnostic: it is not devoted to a specific sales methodology, nor to a particularsetofmanagementtools.Rather,itdrawsonavarietyofthese,withScrum providingtheframeworkforthemtotakeeffect. Scrum for Sales does not try to convince people that Scrum is effective. The benefits of Scrum and its impact on productivity have been well researched in software and product development. There are some initial, comparatively small, studies as well as strong anecdotal evidence that suggest Scrum can substantially benefitsalesorganizations.Atthispoint,however,theywouldnotwithstandscien- tificscrutiny.Hence,theaimofthefollowing200-somethingpagesistoshowhow Scrumworksinasalescontextandwhatissuesitcansolve.Nomore,noless. Whilethebookdoesindeedreferenceasignificantamountofscientificevidence, whichprovesthevalidityoftheunderlyingconceptsandtheories,ScrumforSales takes an outspokenly pragmatic approach. The aim is to equip the reader with practical tools to start working with Scrum right away. The User Stories provide exampleswhichteamsmayusedirectlytokick-starttheProductBacklogsfortheir salesprojects.Readersmayskipthemiftheydonotfindthemvaluableorapplicable to their own situation. The same goes for the many examples that illustrate how cognitive biases affect decision-making generally and specifically in sales organizations. Some readers will find them useful and stimulating; others may havealreadyreadaboutthemandprefertoskiptheseparagraphs.Therearemultiple exercisesandcheckliststhroughoutChaps.3,4,5,and6,whichsupportthepractical work of sales Scrum teams and sales management. They boil down practical experience from the work with sales organizations and Scrum teams, best practice Preface vii fromtheliterature,andfindingsfromadiverserangeofresearchinpsychologyand socialsciencestoapractical,manageable,format. Scrum rituals and rules may need some getting used to. They require a lot of disciplineandprecision.Attimestheymayseemtedious.Readersarenevertheless encouragedtoensurethatthemechanicsandphilosophyofScrumareimplemented consistently.Onlythencantheytakeeffectandproducethebenefitsdesired.Or,as the well-known country singer Dolly Parton said: “If you want the rainbow, you mustputupwiththerain.” Straubing,Germany MichaelJ.Scherm About the Book Scrum has had a huge impact on software and product development, dramatically increasing companies’ productivity and profitability. Scrum for Sales is the first in-depthtreatiseonhowScrumcanbeusedinsalesorganizations.Whilethebook draws on a significant amount of scientific evidence, it takes an outspokenly pragmatic approach. Numerous exercises, charts, and checklists equip the reader withpracticaltoolstostartworkingwithScrumrightaway.TheUserStoriesinthe book provide extensive examples which teams may use directly to kick-start the ProductBacklogsfortheirsalesprojects. ScrumforSalesisasmuchabookaboutsalesasitisaboutScrum:Itdescribes how modern, agile customer acquisition, opportunity management, and pipeline management can be implemented from a customer’s point of view, to increase customer satisfaction, and to maximize long-term value for both customer and vendor. The book provides sales managers with nuggets of advice based on philo- sophical,historical,andscientificthinkingnotusuallyfoundinbooksaboutsales.It thereby helps sales managers to move from old-style sales management to digital leadershipinsales. ix Contents 1 “Agility”IsMoreThanaBuzzword:WhyB2BSales OrganizationsMustBecomeEvenMoreAdaptive. . . . . . . . . . . . . . 1 1.1 ItIs“VUCA”Time(Again):BothBuyersandSellersNeed toBecomeMoreFlexible. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.2 ChangesinTechnologyandNewBusinessModelsMeanBoth PurchasingTeamsandSalesOrganizationsMustBecomeMore Diverse. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1.3 ChannelsAreShifting;SoIsCustomerValue. . . . . . . . . . . . . . . 6 1.4 CustomersHaveaDifferentUnderstandingof“Value” ThanVendorsThinkTheyDo;AndSalespeopleNeedto ContinuouslyReflectonWhatItIs. . . . . . . . . . . . . . . . . . . . . . 7 1.5 ParticipationandCollaborationAretheNewParadigms:Sales OrganizationsMustCaterforThisFact. . . . . . . . . . . . . . . . . . . 9 References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 2 FromAgonytoAgility:TheEmergenceofScrumasaLeading AgileFramework. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 2.1 TheChallengesfortheFoundersofScrumWereLikeThose FacedbyToday’sSalesOrganizations. . . . . . . . . . . . . . . . . . . . 15 2.2 TheEmergenceofScrum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 2.3 IncrementsandIterationsAllowFlexibilityandReduceRisk. . . . 20 2.4 DiversityforBetterResultsandMoreIdeas. . . . . . . . . . . . . . . . 24 2.5 FocusonValue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 2.6 ReflectionIsKeytoImprovement. . . . . . . . . . . . . . . . . . . . . . . 31 2.7 ReliablePerformanceThroughParticipation,Collaboration, andAutonomy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 2.8 TheScrumBoard:ABinarySystemtoProvideClarity. . . . . . . . 38 References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 3 CustomerAcquisition:TeamDynamicsandtheSoftBeat oftheDrum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 3.1 Product. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 3.2 ScrumRoles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 3.2.1 Customer. . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . .. . 46 xxii
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