Decision Making Center (DMC)
Updated at: 24 January 2025
Popular today B2B sales is the process of selling goods and services between companies, which requires professionalism, a high level of skill on the part of the seller. Special attention must be paid to interaction with the buyer.
In the context of B2B sales, the importance of negotiations for subsequent decision-making is relevant. This process allows you to identify the needs, pains and goals of the customer, subsequently offering solutions that maximize the expectations. This allows you to establish a trusting relationship and close a profitable deal.
Important: a deal is impossible if the client does not know and trust the salesperson. Therefore, developing a certain strategy that inevitably leads to the designated result becomes the number one task. The formation of a decision-making center will help to understand and follow a direct path to achieving the result.
Such centers arise as a result of the need to improve the performance of teams. The experience of successful companies has demonstrated by example that a DPC helps to achieve the set goals, ensuring business growth.
What is a decision-making center
A decision center or DPC is a key element in any business process. It determines the success or failure of a company. In fact, a DPC is a team of specialists who make strategic and tactical decisions. They are aimed at achieving the set goals and objectives.
In B2B sales, the decision center has the most important role. It helps to optimize the process, increase the efficiency of interaction with stakeholders, and increase the conversion rate of transactions.
The basic goals and objectives of the decision center are as follows:
- determining the needs and pains of the company;
- working out the development strategy;
- analyzing the market and competitors' activities;
- determining the basic performance indicators
- ;
- making decisions on purchasing services and goods;
- controlling the fulfillment of the set tasks.
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Interestingly, the decision-making center in sales can also be called a tender committee. Its members should be representatives of all key structural units of the company, who take part in the discussion of the set tasks and are responsible for the final decision.
The center is formed as follows.
- First, the scope of the project and its tasks are defined.
- A project leader and functional leaders are appointed.
- Subsequently, work is carried out to compose a team to perform the work with the definition of roles and responsibilities.
- Regular communication and interaction, updating tasks in the course of work allows to successfully complete the project.
The mechanism of work of the CDC is based on a comprehensive analysis of information, development of alternative solutions, making a collective decision and its subsequent implementation.
If we visualize the center as a kind of committee, each member has a certain role. All members of the CDC have certain functions.
Among them are distinguished:
- project leader - denoted as LPR;
- leaders of functional areas - LFR;
- leaders performing work - LWR.
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The task of the LPR is to coordinate teamwork, LFRs are responsible for certain functions in the decision-making process, and LWRs perform the assigned tasks.
Let's consider each role name in more detail.
For example, the project leader takes responsibility for leading the entire project process and is appointed on the basis of experience and personal merit.
Functional area leaders are responsible for specific areas of the project - for example, technical support, marketing, financial allocation. They are appointed on the basis of competencies, experience.
Job leaders are involved in the direct implementation of project tasks and are selected on the basis of qualifications and abilities.
Employees performing functions in the CDC play a significant role in the process of forming a certain strategy, tactics.
Decision makers determine the direction of the company's development. Persons directly influencing the decision have their own impact on the process of work of DEM, buyers are engaged in the selection of suppliers, and final consumers - use products or services.
The most popular goals for DPC participants may include realizing a project objective, ensuring high quality work, and scrupulously meeting deadlines.
Objectives of a decision center
So what tasks does a decision center perform? Let's analyze them in more detail:
- analyzing the company's needs, its requirements, areas of activity;
- defining development strategies, building certain tactics of action
- ;
- selecting the best solution options;
- making collective decisions by means of meetings, brainstorming sessions;
- control over the fulfillment of assigned tasks;
- ensuring communication within the team and with external stakeholders;
- correcting the strategy in accordance with dynamic, constantly changing conditions, analyzing the effectiveness of the decisions made.
The decision-making process has certain components. It is necessary to take into account:
- economic aspects, focusing on price, revenues and costs;
- technical aspects - functionality, safety, product quality;
- user factors - usability, customer satisfaction.
The result of DEM in sales is increased success.
Let's consider what makes it happen: improved coordination and communication between project participants; accurate assessment of risks and opportunities; quick decision-making when problems arise; quality control of work, consideration of deadlines.
Interaction with the DPC
Let's consider the principles of interaction with the DEM. They include the following:
- understanding the needs, interests of each participant;
- taking into account the opinions of all team members;
- making decisions based on objective data
- ;
- ensuring openness and transparency in the discussion process;
- respecting the opinion and authority of the manager.
Let's highlight the algorithm of interaction with the DEM in the B2B sales cycle, taking into account the following stages:
- analyzing customer needs;
- proposing a certain solution;
- presenting the product or service;
- negotiation process
- ;
- concluding the contract;
- supporting the customer after the deal, analyzing sales effectiveness.
The decisions made may be criticized, which should be effectively counteracted. For this purpose, it is recommended to justify the decision on the basis of data and facts, use the support of the team when negative consequences occur. The most important step is to take responsibility for the chosen strategy, readiness to improve it and adjust it if necessary.
Any salesperson forced to communicate with project and functional area leaders can make mistakes. Typical mistakes include the following:
- insufficient preparation for the meeting;
- insufficient assessment of the client's needs
- ;
- improperly constructed communication
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- lack of feedback;
- misunderstanding the specifics of the client's business.
A seller in the B2B market can be advised to deeply study the client and his business, to build trust with the key persons of the company. It is worthwhile to understand the needs of the client, to offer solutions for specific pains. It is not superfluous to constantly learn and develop your skills and knowledge in the field of sales. Working in a team with other participants of the sales process will help to achieve joint goals.
In conclusion, it can be said that DSC is the basis of successful business, because it determines the strategic development of the company, provides informed decision-making, increases the effectiveness of interaction with customers. It is important to be able to properly interact with the CPR, taking into account the main tasks and principles of work - this is the first step to mutually beneficial cooperation and successful completion of transactions.