My Personal Experience: The High Cost of Misidentifying the Decision-Maker

I recently misread a situation as to who was the real decision-maker which meant that I lost a key piece of business. This was especially disappointing as the client is fantastic to work with and I was looking forward to deepening our relationship. It was a real surprise when, during a regular coaching session with the CEO, I discovered we had lost the piece of work because of a convincing case put forward by one of the more junior staff who had often been in the periphery of my conversations with the client.

This experience highlighted the critical importance of pinpointing the decision-maker in B2B sales. It can mean the difference between closing a deal and watching months of hard work evaporate. In this blog post, we’ll explore the potential pitfalls of failing to identify the decision-maker and offer strategies for sales professionals to improve their ability to identify and connect with key decision-makers.

What is a Decision-Maker?

In a B2B context, the decision-maker is the individual or group with the authority to give final approval on a purchase. This person often holds a senior position within the organisation and has the power to allocate budget and resources to your solution.

It's important to note that the decision-maker isn't always the most senior person in the company – as I recently found out! Depending on the nature and scale of the purchase, decision-making authority may be delegated to department heads, project managers, or even committees. This is why identifying the true decision-maker(s) can be challenging but important.

Why is Identifying the Decision-Maker Important?

I find that I often have to work hard to identify the decision-makers, as I enjoy the interactions with like-minded people who are interested in the type of work that we offer. I love what I do because of the people I get to connect with and the conversations I have. However, I have to be mindful of finding out the criteria of the person who will make the decision, or making sure I get a meeting with them, as well as enjoying my catch ups with other people in the organisation.

Different stakeholders within an organisation have varying priorities, pain points, and perspectives. The C-suite executive making the final decision will likely have different concerns to the end-users or middle managers involved in the evaluation process. By identifying the decision-maker, you can craft your pitch to address their specific priorities, whether that's ROI, strategic alignment, long-term culture change or the kind of relationship they like to have with a provider.

Engaging directly with the decision-maker allows you to build a stronger, more personal relationship. This can lead to increased trust and credibility, which are crucial factors in B2B sales. A good relationship with the decision-maker can provide valuable insights into the organisation's needs, challenges, and decision-making processes.

Strategies for Identifying the Decision-Maker

Given the importance of identifying the decision-maker and the risks associated with failing to do so, I have reflected on what I could have done differently with my client.

I assumed who the decision-makers would be and didn’t ask the direct question about who would be involved in the decision-making process. "Who else will be involved in this decision?" or "Who has final approval on this program?"  I asked a lot of questions about what they were looking for from a provider and got the program criteria in terms of outcomes from the senior leaders involved, but didn’t ask who would also be involved. This meant that I didn’t get the criteria of the person who ended up having the largest influence as she was extremely well respected, had been working in the organisation the longest, with oversight of their leadership programs. It was an absolute mis reading of the situation on my part.

One key indicator of a decision-maker is usually budget authority. Individuals who can discuss budget allocation or have the power to approve expenditures are likely to be key players in the decision-making process. However, in this case, it was overshadowed by who understood the organisation dynamic and overall requirements for the program outcome. It is important to keep in mind that the person with the purse strings might not be the only person to influence. Who are they listening to? Who do they respect?

I would also recommend that administrative assistants, procurement officers, and other gatekeepers can often provide valuable information about who the real decision-makers are. Building positive relationships with these individuals can help you navigate the organisation more effectively.

If you have the opportunity to present to a group or attend meetings with multiple stakeholders, pay close attention to group dynamics. The person others defer to or the one asking the most probing questions is often a key decision-maker.

Conclusion

In the complex world of B2B sales, identifying the decision-maker is not just important—it's essential. By focusing your efforts on engaging with the individuals who have the power to say "yes," you can dramatically improve the efficiency and effectiveness of your sales process.

Remember, however, that identifying the decision-maker is just the first step. Once you've pinpointed this key individual, you need to engage with them effectively, addressing their specific concerns and demonstrating the unique value of your solution. This requires a combination of research, strategic thinking, and interpersonal skills.

Moreover, it's important to recognise that in many organisations, decision-making is becoming increasingly collaborative. While there may be a final decision-maker, their choice is often influenced by a range of stakeholders. Therefore, while focusing on the decision-maker is crucial, don't neglect other influential figures in the process.

I hope my learnings from this experience can also help you.