Apply SpaceX Idiot Index to Your Sales Cycles

You may well know of manufacturing's Magic Wand Number.

Famed from the SpaceX slashing of rocketry costs. When going back to 'first principles'. They worked out the cost of each component. The raw material cost. For which they then compared the finished piece cost. The difference they termed the Idiot Index. The larger it was, the more they fought to redesign everything around it. Producing the same (or better) for way less.

This week's record-breaking float may reveal one happy outcome of such thinking.

Just as SpaceX broke down rockets, we must break down our sales cycles to their 'atomic' activities.

When our base cost is time, measured in the 24/7 (or even the 52/12/4/1), one of the biggest hitting levers we can pull to send our selling soaring, is cycle time. Shrinking the duration of our bids means we cram more into our pot.

We too can lay out our chunks of metal on the table.

What are the component parts of our activity?

You already feel those crushing Idiot Indices. Waiting weeks for decision-maker approvals, unnecessary side meetings, or box-ticking exercises that run in series instead of parallel with their tech and legal teams.

We ought know the shape of our 'perfect' deal.

I mention the story of a large, tech late 90s solution sale. Where at the outset, the salesteam planned out all the 'touches' they felt would be needed. Everything from open to close. In total, 300. They won the business.

My first successful timeline truncation came from imagining everyone required attended the front demo.

Very handy when not in a competitive bid environment.

There's a tension over which we must take control.

Reporting systems like to swell the levels, gates and paths.

We must streamline these. Without jeopardising covering the ground. Without appearing pushy and slapdash.

A great first step though, harks back to our breakdowns, A First Principles Audit always healthy.

If we've built up some body of clients already, we'll have inkling of swiftest sales.

We can start with these as ideal, and optimise from there. We already know longer cycles stifle momentum. So let's give velocity a chance to propel us.

This marries so well with true process thinking. And when you start to get on top of it, glory follows.