Business Development

• Whatever role you play in your Bank-- finding out more about business development gives you a
broader perspective on how to make the Bank grow.

• The purpose of business development is to drive growth, or in whatever form of expansion that is
important to you right now.

• Absolutely everybody in the Bank can make a contribution to growth, and therefore the need for a
grounding in business development – understand how employees in different areas of the Bank can do
their bit. As the saying goes, the sum of the parts is greater than the whole.

• But….People commonly move into business development from other areas of the bank, and
leaders often have to manage business development and all its component parts.
Business Development (BD) Defined as the tasks and processes concerning
analytical preparation of potential growth opportunities, and the support and
monitoring of the implementation of growth opportunities, but does not include
decisions on strategy and implementation of growth opportunities.
• Business development involves the various techniques designed to help a
bank grow by developing new business or expanding products/services.
• Even….Recent systematic researches has outlined the contours of an emerging…
business development function ….with a unique role in the innovation
management process.
• Also……Business development is the business unit within an organization that works
to create long term growth and profitability through three main activities. These
activities include, but are not limited to—
1)creating meaningful partnerships,
2) establishing business in new markets and
3) increasing the value of a current customer base.

• Business Development, is a mix of sales, marketing, negotiations, networking, project

management and contract review

Business development is the discipline required to achieve growth through the

acquisition of profitable net new customers and expansion of existing
customers.
 CHALLENGES FOR BUSINESS

• Technology
• Innovation
• Competition
• Deregulation
• Globalization
 SALES VS. BUSINESS DEVELOPMENT

• Business Development works to produce long-term growth and profitability using three
primary activities. They consist of, but are not necessarily limited to, establishing business in
new markets, generating significant partnerships, and improving the current customer base.

• business development determines how much a business will grow, where that growth will
come from, and what approach is needed to attain that growth.

• Sales Development is the formalization of how a sales team influences customers with their
services and products.
• In simple terms, sales development is responsible for creating a relationship with customers in
order to align them with your products or services.
 BUSINESS DEVELOPMENT STRATEGIES AND GOALS
SALES DEVELOPMENT STRATEGIES

• a business strategy--the primary goal is to build partnerships that allow leverage for driving
revenue.
• Additionally, it include a description of the company, management organization chart, an
explanation of your services or products, a look at the market and your competitors, financial
information, and a marketing and sales plan.

• Goals commonly seen in business development plan include new user acquisition,
brand placement, brand awareness, and market expansion.

• a sales strategy-- it is important to determine whether your company can execute the
plan independently, how much it will cost to execute, how long it will take to see
results, whether or not you have the necessary resources, and how the results can be
measured.
• goal is to close as many sales as possible
 HOW BUSINESS DEVELOPMENT & SALES INTERSECT

• While business development is the creation, focus, and measurement of a plan, sales
development involves the actual execution.
• Business development works with partners to sell to customers in a way that can be
measured, whereas sales are simply the process of converting leads into customers.
• In order for a company to have high sales, it is imperative that your business
development plan be well written and implemented.

• In summary, business development requires a thorough examination of your current

target market and sales channels, in an effort to reach new partners and customers.

• However, sales development is the act of closing a sale.

• While a good business development strategy is essential to effective sales
development, it’s important to remember the distinction between the two
long term growth and profitability

1)creating meaningful
partnerships,
2) establishing business
in new markets and
3) increasing the value
of a current customer
base.
BD ACTIVITIES
STRATEGIC OPTIONS FOR BD
 Intensive Growth Strategies

• Part of getting from A to B, then, is to put together a growth strategy that, brings the
most results from the least amount of risk and effort.

• Growth strategies resemble a kind of ladder, where lower-level rungs present less risk
but maybe less quick- growth impact.

• The bottom line for start-ups, is to focus on those strategies that are at the lowest rungs
of the ladder and then gradually move your way up as needed.
• Each new rung brings more opportunities for fast growth, but also more risk. They are:

1. Market Penetration--The least risky growth strategy for any business is to simply sell more of its current product
to its current customers.

2. Market Development--The next rung up the ladder is to devise a way to sell more of your current product to
an adjacent market.

3. Alternative Channels--This growth strategy involves pursuing customers in a different way such as, for
example, selling your products online.

4. Product Development--A classic strategy, it involves developing new products to sell to your existing
customers as well as to new ones. Selling new products to existing customers is far less risky than having to
learn a new product and market at the same time.
5. New Products for New Customers--Sometimes, market conditions dictate that you must create new
products for new customers, as Polaris, the recreational vehicle manufacturer in Minneapolis found out.
For years, the company produced only snowmobiles. Then, after several mild winters, the company was in
dire straits. Fortunately, it developed a wildly-successful series of four-wheel all-terrain vehicles.
the iPhone has had a similar impact; once customers began to enjoy the look and feel of the product's
interface, they opened themselves up to buying other Apple products.

Think of bank examples……

• Choosing to follow one of the Intensive Growth Strategies, should be ideally by taking only one step up
the ladder at a time, since each step brings risk, uncertainty, and effort
 INTEGRATIVE GROWTH STRATEGIES

• After exhausted all steps along the Intensive Growth Strategy path, consider growth
through acquisition or Integrative Growth Strategies can be considered.
• The problem is that some 75% of all acquisitions fail to deliver on the value or
efficiencies that were predicted for them. In some cases, a merger can end in total
disaster, as in the case of the AOL-Time Warner deal.

• Nevertheless, there are three viable alternatives when it comes to an implementing an

Integrative Growth Strategy. They are:
1. Horizontal--This growth strategy would involve buying a competing business or
businesses. Employing such a strategy not only adds to your company's growth, it also
eliminates another barrier standing in your way of future growth, a real or potential
competitor.
2. Backward--A backward integrative growth strategy would involve buying one of your
suppliers as a way to better control your supply chain. Doing so could help developing new
products faster and potentially more cheaply.
For instance, Fastenal, a company based in Winona, Minnesota that sells nuts and bolts (among
other things), made the decision to acquire several tool and die makers as a way to introduce
custom-part manufacturing capabilities to its larger clients.

3. Forward--Acquisitions can also be focused on buying component companies that are part of
company’s distribution chain.
For instance, a garment manufacturer like Chicos, which is based in Fort Myers, Florida, could
begin buying up retail stores as a means to pushing their product at the expense of your
competition
 DIVERSIFICATION GROWTH STRATEGIES

• Another category of growth strategies that was popular in the 50’s and 60’s
and is used far less often today is something called diversification where you
grow your company by buying another company that is completely
unrelated to current business.
• Massive conglomerates such as General Electric are essentially holding
companies for a diverse range of businesses based solely on their financial
performance.
• That's how GE could have a nuclear power division, a railcar manufacturing
division and a financial services division all under the letterhead of a single
company.
• This kind of growth strategy tends to be fraught with risk and problems, and is
rarely considered viable these days.
 HOW WILL YOU GROW?

• Growth strategies are never pursued in a vacuum, and being willing to change course
in response to feedback from the market is as important as implementing a strategy in
a single- minded way.
• Too often, companies take a year to develop a strategy and, by the time they're
ready to implement it, the market has changed on them.
• That's why, when putting together a growth strategy, companies should think in just 90
chunks, a process called a Rapid Enterprise Design.
• Sometimes the best approach is to take it one rung at a time
The Sinus-Milieus offer a true-to-life image of
the sociocultural diversity of the modern
world, providing accurate descriptions of
people’s attitudes and orientations, values,
lifestyles and life goals, and social
backgrounds and positions. With the Sinus-
Milieus, you can dive into your target
groups’ lifeworlds and appreciate them from
the inside. By revealing what moves people,
the Sinus-Milieus show you how to move
them. The key here is that Sinus-Milieus
interpret people holistically, taking account
of everything important in their lives.

Sinus-Milieus identify groups of like-minded

people that can be visualized along two
dimensions: social situation (status/class)
and basic normative orientation. The areas
of overlap among the bubbles on the milieu
chart indicate that transitions between
milieus are fluid.

Target group
analysis
 GOALS

BD LEADER CAN DO …

Leader
TARGET IDENTIFY
AND
POSITION
PRESENTATION
AND
CLOSING FOLLOW UP
 REMEMBER…….

• Business development encompasses:

✓ Your offer: Creating the solution you have or the reason your business exists.
✓ Marketing: Making the market aware of your offer.
✓ Selling: Acquiring new customers.
✓ Customer management: Delivering your solution so that you retain, expand and leverage
your customer base.
✓ Partnerships: Joining with other firms to expand your opportunities.
✓ Feedback: Using opinions to improve your offer (in other words, quality assurance).
Rural Urban
Going round and
round the
customer
experience.

Value
Proactive
Top
The business
development
lifecycle
from your
viewpoint.
 Leadership skills we look for in Business development

1. Communication, interpersonal and Collaboration Skills

Business development is all about communication, from cold-calling prospects to maintaining long-term
relationships, to sharing information and ideas with colleagues and other stakeholders. That means the
business developer must be able to speak and write clearly and confidently, as well as listening with an
empathic and open mind so as to be able to address others’ needs and concerns. Working well on a team is
also critical.
2. Negotiation and persuasion Skills
Part of business development is convincing other people to do certain things, such as offering assistance,
lowering prices, or making investments. There are negative ways to influence people, certainly, but more
ethical and more effective (in the long term) is the subtle art of finding common cause and earning trust.
That requires prioritization, understanding, creative thinking, and, above all, a tactful and genuine
demeanour.
3. Research and Strategic Skills

A big part of business development is strategy. You have to be able to plan months, even years in
advance, something not everyone can do. Sound strategy depends on rational thought, a strong sense
of priority, and the research skills necessary to understand the situation in depth.

4. Computer Literacy

While a business developer need not be able to provide tech support, in this day and age,
communication, research, and analysis all depend on using computers. Understand basic programs,
such as Microsoft Word, and know how to take full advantage of all the program’s features. Poor
computer literacy will leave a person less efficient, less likely to reach their potential.
5. Project Management Skills
Of course, developing a business is a project. The business itself is the project, so it stands to reason that a
good developer will have a lot of the same skills as a project manager. These include the ability to set goals,
establish timelines, manage risk, create and stick to budgets, delegate tasks, and manage teams.
6. Business Intelligence
Business development requires not only understanding one’s own business, but also that of competitors and
of the market as a whole. Part of gaining that understanding is simply researching and listening with an open
mind, but part of it, too, is collecting and analysing data. Knowing which market segments respond to what
types of campaigns, how large the market is, and whether the market is currently changing will give you the
leg up. That means understanding and staying current with statistics and trends.
 BUSINESS DEVELOPMENT SKILLS ------KEYWORD LIST –A TO Z
 Active Listening
 Ability to Build a Brand
 Analytical
 Adaptability
 Articulating Clearly
 Assertiveness Attention to Detail
 Believes in Inbound Marketing
 Business Intelligence
 Closing Deals with Prospects
 Client Engagement
 Client Relations
 Cold Calling
 Collaboration
 Communication
 Critical Thinking
 Curiosity Quotient- High
 Customer Relationship Management (CRM) Software
 Customer Service
 Cultivating Personal Relationships with Customers
 Decision Making
 Delivering Sales Pitches
 Develop New Business
 Developing Proposals for Projects
 Developing Sales Pitches
 Devising Strategic Plans to Expand Sales
 Direct Sales
  Manage Leads
 Managing Competing Demands
 Mastering Product Knowledge
 Mathematical
 Differentiating Products/Services from the Competition  Microsoft Excel
 Documenting Business Development Activities  Microsoft Office Skills
 Drafting Quotes for Projects  Negotiation
 Online Meeting Tools
 Energetic
 Organizational
 Enhancing Relationships with Current Customers
 Partnerships
 Entertaining Clients  Persistence
 Estimating Costs for Jobs  Pleasant and Engaging Demeanour
 Facilitating Meetings with Staff and Clients  PowerPoint
 Finance  Presentation
 Following Up on Leads  Prioritizing
 Problem Solving
 In Depth Knowledge of the Agency Business
 Proposals
 Identifying Benefits of Products and Services from the Customer
Perspective
 Interviewing Current Customers to Assess Satisfaction
  Strategic Planning
 Taking Initiative
 Teamwork
 Project Management  Time Management
 Promoting Additional Products or  Tracking Industry Trends
 Utilizing Social Media Tools
 Providing Input to Product Developers
 Understands People’s Buying Pattern & Trends
 Public Speaking  Verbal Communication
 Qualifying Leads  Working Independently
 Relationship Building  Working the Room at Events
 Working Under Deadline Pressure
 Reaching Out to Cold Contacts to Cultivate Business
 Writing Sales Communications
 Remaining Calm with Agitated Clients
 Resilience
 Salesforce - Right Type of Sales Person for the Role
 Sales Forecasts
 Sets Realistic Expectations with Clients
 Sets Goals & Develops Action Plans