Dan Corcoran, Chief Technology Officer & VP Sales Enablement, Mainstay
“I come from a state that raises corn and cotton and
cockleburs and Democrats, and frothy eloquence neither convinces nor satisfies
me. I am from Missouri. You have got to show me.”
Popular reckoning credits this quote by Congressman Willard
Duncan Vandiver with coining Missouri’s unofficial motto as the “Show Me
State.” The Oracle of Omaha, Warren Buffet, is famous for insisting that he’ll
only invest in what he can understand. Maybe it’s a Midwestern thing, but as a
former Ohioan, I find the most important part of deciding Why? is understand
the implied HOW?
Process improvement ABC saves 77% in labor costs over five
years!
Solution XYZ reduces infrastructure spending by 48%!
Save $500,000 a year in power with smart building solution
N!
These are the kinds of statements that companies write entire
value messaging campaigns around. At first glance they appear quantitative
because, you know, numbers=smart. But try to unpack them and the logic unravels
fast. Why 77% and not 42%? What factors led to this savings or improvement?
What factors enable or endanger similar results in my business?
Let’s assume for a moment that all of those “quantitative”
value statements are well researched, supported by large data sets and adjusted
for you as the specific audience. It. Doesn’t. Matter. It doesn’t matter and
they are no more true if the consumer of this information can’t understand the
HOW that underlies these justifications. And that’s because they are not
justifications, they are outcomes. And outcomes are meaningless unless you
understand HOW to replicate them.
This is why quantitative modeling is at the heart of every
Mainstay asset. Whether we’re writing a whitepaper, collecting data for case
studies or infographics, or building justification tools for sellers, we always
start with a model. Modeling is a great way to really explore your value
proposition and its something anyone with the most basic Excel skills can do
effectively. Basic arithmetic is usually all you need to calculate just about
any kind of business benefit. Modeling can also be a great way to address the
BS factor that can sometimes scuttle the best intentioned value messaging
efforts. If it won’t float, you’d rather know now than have your customer
challenge you on it later.
Models don’t have to be fancy, they don’t have to look
pretty. The point is to identify and demonstrate cause and effect. Start simple
and add complexity as it becomes necessary (and if it doesn’t, don’t). No
matter what you’re selling, using quantitative modeling as a starting point for
crafting your value proposition just makes sense. In fact, this model often
becomes the genesis for multiple important assets, because no matter what
result you get, it’s important to understand how got there. And remember, show
your work! Because if you can’t explain it, Warren ain’t buyin’.
