Editor’s note: Veteran entrepreneur and investor Donald Thompson is a regular contributor to WRAL TechWire. His columns appear on Wednesdays.
RESEARCH TRIANGLE PARK – You’ve come up with a great, new, breakthrough idea. You’re convinced that it’s realistic, achievable and a meaningful win for your company. Now, you need to convince that one important gatekeeper who can give you the go-ahead and the resources you need to make it happen: your company’s CEO (or another senior executive).
How do you go about approaching them, and how do you sell your idea?
The best place to start is considering the situation from your executive’s point of view. The executive mindset is not that complicated, although it can seem that way from the outside, especially when you consider the intimidation factor. In truth, executives almost always see things through the lens of growth strategy. How will this idea impact profitability, brand reputation, talent attraction and retention and/or sustainability?
As a CEO who is also a mentor and coach to many emerging leaders, I’m often asked to give my perspective about the best way to gain buy-in from senior executives. My background in sales and marketing has helped me develop my own best practices in this area. They are:
- Know your audience,
- Know your numbers,
- Create a sense of urgency.
Before you put these best practices to work, consider how you’ll gain access to your key decision maker. If you’re in a role which does not allow easy access to senior leadership, the smart first step is to find a sponsor. A sponsor is someone within your organization who is willing and able to leverage their influence to help you achieve your professional goals and push past roadblocks in your personal development.
Your sponsor will be a sound resource for understanding the deciding executive’s perspective and refining your pitch to make sure it’s reasonable, timely and effective. Ideally, they can help you get time on the deciding executive’s calendar, prepare your pitch, advocate for your idea throughout the meeting and give you feedback and updates afterward. In addition to your sponsor, make sure you keep your direct manager informed about your plans and the reason you’re approaching a senior leader.
Rule #1: Know your audience
The key to a successful pitch is understanding where the executive is in their thinking at that particular moment. Get to know your executives as people so that you can understand their pain points, goals, objectives and thinking styles. Before you can present an idea for change, you’ll need to do your homework about the business and its leaders. Ask questions, listen more than you speak, and sincerely try to understand each person’s point-of-view.
Remember that no one likes to be “sold to.” Instead, present your idea as a potential way to answer one of the executive’s stated objectives for the company. Some executives are far more risk averse than others, but all are interested in new, viable ways to move their organization forward. Ask what success looks like to them. Ask what concerns they may have or any roadblocks they foresee. Think together and brainstorm. The more you can make your meeting into a conversation between people “on the same side of the desk,” versus a sales scenario, the more successful you will be.
Rule #2: Know your numbers
Make sure you understand and address the risk-reward equation of the initiative that you’re proposing. In other words, know your numbers. What investment of time, people and resources will be needed? What is the realistic potential for loss and, more importantly, for gain? Look for ways to tie internal numbers to real dollar amounts that your company is losing by not moving forward.
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If relevant, do peer research into companies of the same size or in the same industry as you, and be ready to talk about what they’re doing, how long they’ve been doing it and the impact it has made. You should plan to present only a few key numbers, but — just in case you’re asked — you want to know about ten times more about the topic than you’ll have time to discuss.
Center your message around three pieces of critical data: how much it will cost, how much it can save or make, and what the overall impact will be on the organization’s triple bottom line. In other words, what impact will this idea have on people, planet and profit?
Most employees who present to the C-suite already know that their executives want to hear hard numbers, dollars and data. What they don’t know is how to tie that data together so the executive can see it as a clear ratio of revenue to expense. Instead of saying, “current turnover is 13% and this will improve it to 8%,” say “our current turnover is costing us nearly 10% of annual revenue, but with these changes — which will cost less than 0.5% of annual revenue — we can expect to save another 3%. That’s an overall savings of $3.5 million.” Tie cost and revenue together to present a more holistic picture. Then, make it clear how you will track and measure success.
Remember that the executive is almost always going to have a broader scope of how this action affects the whole business than you can be privy to. Presenting a succinct, holistic view of how your idea affects strategy and revenue will help them evaluate your proposal more easily.
Rule #3: Create a sense of urgency
Keep your message simple and succinct. Know your audience and your numbers, then create a sense of urgency. The business world is more competitive than ever, and fear of missing out is real. Tap into that, and you’re more likely to win quick approval from C-suite executives. Even if your CEO generally avoids risk, they also probably recognize that failing to change and adapt is, itself, a risk.
Your organization’s executives are responsible for delivering results. They don’t want to miss the boat. Build your business case. Tell them “here is where the data shows that we can get ahead.” Always end a meeting with a clearly-identified next step, like further research, data collection, or leaving the executive with supporting documents to review. Give them time and space to consider your proposal, and make sure they know how to reach you with any follow-up questions.
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Lastly, remember that gaining buy-in isn’t a one-time event. Your first pitch is important, but it’s highly unlikely to be your only conversation on the subject. Be patient and flexible with the process. These three tips will help you gain attention for your idea, refine your proposal, and lay the groundwork for executive buy-in. If there’s more I can help with, connect with me on LinkedIn.
About the Author
Donald Thompson is an entrepreneur, public speaker, author, podcaster, Certified Diversity Executive (CDE) and executive coach. With two decades of experience growing and leading firms, he is a thought leader on goal achievement, influencing company culture, and driving exponential growth. He is also co-founder and CEO of The Diversity Movement, a results-oriented, data-driven strategic partner for organization-wide diversity, equity, and inclusion (DEI) initiatives. Donald serves as a board member for several organizations in marketing, healthcare, banking, technology and sports. Connect with him on LinkedIn and at donaldthompson.com.
