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International Paper of Memphis, Tennessee, was
presented with a Stevie Award for Best Sales Training in the
2007 Stevie Awards for Sales & Customer
Service. Here we look at how playing a business game
contributed to the company's success.
International Paper (IP),
founded in 1898, is a global company that produces uncoated
paper and packaging, with markets and operations in North
America, Europe, Russia, Latin America, Asia, and North
Africa. With headquarters in the United States, IP employs
approximately 54,000 people in more than 20 countries and
serves customers worldwide. Annual sales are about $22
billion.
International Paper was awarded a Stevie in 2007 for the
development of a CVM (customer value management) process that
greatly increased the business expertise of all its sales,
support, and customer service employees.
"International Paper's consultative approach to sales is
critical to our customers' and to our long-term success," said
Steve Sullivan, customer value service manager for IP. "We
implemented the principles of CVM and continue to make great
efforts to improve customer success by demonstrating how the
company's tailored solutions deliver value to its stakeholders
and customers."
Added Sullivan: "One of the main goals of the CVM sales
training is to make sure that both salespeople and other
support personnel understand how International Paper makes
money as well as how its customers make their money. This
approach requires higher levels of business acumen and
financial literacy among the sales teams."
Masters of the Game A familiarity with
business finance was gained by using Paradigm Learning's
award-winning board game Zodiak®: The Game of Business Finance
and Strategy for Sales Professionals .
Zodiak® is a one-day business acumen training program that
includes a four- to five-hour business simulation followed by
a two- to three-hour "Connections" session. The program
targets supervisors, managers, sales professionals, project
managers, and other leaders and can be customized to the needs
of different organizations. Zodiak® is based on discovery
learning methodology and is designed to educate through a fun
and hands-on experience.
"By playing Zodiak, our sales professionals gained a better understanding of our customers' businesses by building business models of customer operations, analyzing financial and strategic planning information, and identifying how to sell bottom-line results to top-line managers," commented Sullivan.
International Paper has achieved exceptional sales results by using its CVM process and increasing business acumen for all sales, support, and customer service employees. This is where IP’s consultative approach to sales is critical. IP implemented the principles of CVM and continues to make great efforts to improve customer success by demonstrating how the company’s tailored solutions deliver value to its stakeholders and customers.
Playing to Learn
The five elements of CVM are: identify, discover, create solutions, deliver, and manage.
International Paper sought a way for its sales professionals to better understand its customers businesses by having them speak the language of their clients and understand how each salesperson could impact customer success.
More than 300 people (sales and support) at IP have participated in Zodiak®, experiencing the rush of business ownership and realizing the importance of critical business fundamentals such as making a profit, generating cash, and increasing shareholder value.
A large part of International Paper’s success over the past few years can be directly contributed to the following CVM-trained sales and support teams’ efforts:
- Targeting the right customers and using CVM principles enabled the
IP salespeople to sell more and to improve their margins and their service
platforms.
- By gaining a broader and deeper knowledge of the customer base, IP salespeople secured more positive responses from customers than they had in past years. Their sales approach changed from being transactional to consultative.
- The sales training sharpened the sales skills and business understanding of the IP account teams, giving them more structure and better guidelines.
Said Sullivan: “That’s how profitable solutions are created and delivered.”
Not Just Playing Games
International Paper, which benchmarks its success against eleven other companies in the industry, ranked ninth (in return on investment ROI) out of those companies in 2003. In 2004 it ranked sixth, then fourth in 2005 and second in 2006.
About Steve Sullivan
Steve Sullivan has spent the last twenty-two years in sales and management, the last four developing sales training for, and delivering it to, International Paper’s sales force. Sullivan’s title, customer value service manager, was developed by International Paper to describe how its salespeople are moving toward a more supportive and consultative role rather than the traditional transactional, price-driven approach to sales. Sullivan cowrote International Paper’s CVM playbook, which is the company’s main sales-training guide for its sales, support, and customer-service professionals.
Sullivan graduated with a degree in economics from Ursinus College in Collegeville, Pennsylvania.
About International Paper
International Paper (NYSE: IP) is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Its businesses include uncoated papers and industrial and consumer packaging, complemented by xpedx, the company's North American distribution company. Headquartered in Memphis, Tennessee, the company employs more than 65,000 people in more than 20 countries and serves customers worldwide. 2007 net sales were approximately $22 billion. For more information about International Paper, its products, and stewardship efforts, visit www.internationalpaper.com.
About Paradigm Learning
Paradigm Learning (www.ParadigmLearning.com) is a privately held company based in Tampa, Florida. Since 1994, it has worked with more than half of the companies on the Fortune 500 list, creating award-winning business games, business simulations, and Discovery Maps® to address a company’s specific business needs. Its flagship business acumen training program, Zodiak®: The Game of Business Finance and Strategy, has been played by more than one million people worldwide. Other products address such issues as talent management, employee alignment, leadership accountability, team building, project management and organizational change. |