How to Use First Principles Thinking for B2B Sales Leadership

How to Use First Principles Thinking for B2B Sales Leadership

Categories: Sales Leadership  |  Scaling Sales

First principles thinking is a reasoning process used by some of today’s top innovators to look at complex problems through a new lens. The concept is based on Aristotle’s writings about first principles, which he called the “first basis from which a thing is known.”

As a modern problem-solving approach, first principles thinking involves deconstructing complex problems into their most basic, fundamental elements. By forgoing conventional wisdom, you’re encouraged to question what you think you know. This approach can often lead to more disruptive solutions and expose the assumptions that hold you back.

First principles thinking involves three main actions: Identifying the basics, questioning assumptions, and rebuilding from scratch.

How Does First Principles Thinking Apply to Sales?

“In every systematic inquiry (methodos) where there are first principles, or causes, or elements, knowledge and science result from acquiring knowledge of these; for we think we know something just in case we acquire knowledge of the primary causes, the primary first principles, all the way to the elements. It is clear, then, that in the science of nature as elsewhere, we should try first to determine questions about the first principles.” - Aristotle

First principles thinking can be useful for B2B revenue leaders as they solve complex problems and develop new processes to improve sales performance. Often, a revenue organization operates under layers of assumption and existing processes. How many of us have asked for the logic behind a process, only to be met with “that’s just the way we’ve always done it?”

If you keep doing what you’ve always done, you’ll keep getting the same results. Reaching ambitious revenue goals often requires a transformation of the go-to-market strategy. If you’re in charge of scaling revenue for your organization, you may need an innovative approach.

Let’s explore how first principles thinking can help you re-evaluate your sales processes.

Identify Core Value Drivers

To think about your go-to-market approach in a new way, start by going back to basics. At Force Management, we do this with each of our customers using what we call the Four Essential Questions:

  1. What problems do you solve for your customers?
  2. How do you specifically solve those problems? 
  3. How do you do it differently than your competition? 
  4. What’s your proof?

These are the most basic elements that an organization needs to be aligned on at every level to achieve growth. Many leaders assume that their organization is already clear on these essential concepts, but consider how many different answers you might get if you asked every person in your organization, or even just the executive team, to answer these four items in their own words.

Question Your Assumptions

Now that you have identified the core truths at the heart of your organization, consider what assumptions you’ve been making about your sales team’s process.

We often see leaders making assumptions about alignment. They assume that individual contributors are aligned on how to communicate the core value drivers covered in the essential questions. They might assume that cross-functional roles are aligned on how to collaborate to maximize value throughout the customer journey. They might assume that everyone in the organization is aligned on what a great deal looks like for the company.

As leaders, we also make assumptions about the root causes of execution problems. Is an underperformer the result of a bad hire, or an outdated onboarding process? Are your long and drawn-out sales cycles because of economic tightening, or because your team doesn’t have an airtight value negotiation strategy? Are your managers incapable of forecasting, or do they lack a common criteria for qualifying deal velocity?

When you strip away your assumptions about how your go-to-market team operates, you naturally seek out information and learning. Consult your team and gather data about their current process, their challenges, and what they’re hearing from customers. Use that learning to understand where alignment and execution break down in your GTM motion and generate solutions that make sense for your team - there is no one-size-fits-all approach.

Rebuild Your Approach

Using your core value drivers and challenges you’ve identified, you can reverse engineer solutions to your biggest growth obstacles with a focus on delivering customer value. Keeping an external focus on how to create and increase value for your customers will ensure that every internal process is geared towards revenue-generating activity, paving the way to growth.

Your solutions may need iteration. The best revenue leaders are constantly improving upon their processes - first principles thinking is great for this because it encourages you to keep what’s working and ditch what isn’t. Create a cadence by which to revisit the fundamental elements and question whether there are new ways to enhance efficiency and effectiveness.

Grow Enterprise Value

Today’s most valuable organizations succeed because they offer innovative solutions, but great solutions alone aren't enough for large-scale, sustainable sales success. Top B2B organizations soar to higher valuations by also innovating on their go-to-market process. We've worked with 132 "unicorn" companies valued at over $1B - we distilled their success into a guide that covers key leadership actions of high-value organizations. Learn how the top 1% achieve repeatable sales results, increase investor confidence and secure greater returns.
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