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Example: Execution Improved by Education

Three keys to profit growth from solution selling, and how Education Helps

  1. Only 25% of IT companies see 3-7% better margins.  The other 75% just bundle products or services and discount their offerings.  Solution sellers operate differently and use new metrics.
  2. New selling methods (including solution selling) work faster when they are taught in a phased “university approach” rather than “rolled-out” by conventional methods.
  3. Head office leaders (from financial and other disciplines) must estimate how value will be created, then package the plan into “Value Units”.  Value Units are assigned to business units, tracked and improved. Otherwise, solution selling is lost in business unit target-seeking.



Lucas' experience.  For example in the introducing outsourcing, sales schools were led by sales and marketing executives and attended by everyone. So system programmers would see how sales people could better deal with problems selling outsourcing and sales people could lead systems programmers to think of new solutions to service delivery challenges.

Others' research: Each of the three points in the example is also supported by recent research, for example recent work published in the McKinsey Quarterly.   

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Last modified: April 18, 2010