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Volume 22, Number 6 • Copyright ©2005 Business Book Review, LLC • All Rights Reserved

The Prime Solution

Close the Value Gap, Increase Margins,
and Win the Complex Sale

Jeff Thull

©2005 by Jeff Thull

Adapted by permission of Dearborn
ISBN: 0-7931-9522-5

Reviewed by Jennifer G. Cuthbertson

Introduction

Today’s business-to-business solutions marketplace is competitive and full of challenges. Companies work hard to
create and sell value-laden solutions, but, even with hard work and research, the success rate in the solutions marketplace
is very low. It is often difficult to distinguish one company’s solution from another’s. Customers are hard to satisfy, and
most report they did not achieve the value they had expected. This disconnect between seller and buyer is what Jeff Thull
has termed the Value Gap. It is that seemingly unbridgeable space between the solution, created by the seller, and the
value, achieved by the customer. The Prime Solution is Thull’s bridge across the Value Gap.

Business Book Review™ Vol. 22, No. 6 • Copyright © 2005 Business Book Review, LLC • All Rights Reserved
The Prime Solution Jeff Thull

PART I: THE VALUE GAP This frequently happens when a solutions seller takes a
Companies are not actually looking to buy solutions. package or one-size-fits-all approach.
What they want are outcomes, guaranteed business results. The second common reason for solutions failures
As far back as the 1970’s, business gurus, like Peter Drucker, occurs when the customer is not able to implement the
often lamented that the least asked question was, “What product or service correctly. This could be due to technical
is value to the customer?” Solutions sellers and solutions problems, such as integration and compatibility issues.
buyers would probably both answer that
“Who is responsible for solution failures? For the seller, the only
question similarly. Both want increased correct answer is: It doesn’t matter.”
revenues, lower costs, more efficient and
resilient operations, and optimal employee productivity, It may be as simple as managers and employees being
and both are looking to be competitive. resistant to change and, therefore, resisting the solution.
Advertisements promoting business-to-business It could also be that due to cost pressures, the solutions
solutions promise a lot in terms of product and service provider does not provide the needed resources during a
performance. But often, customers are unable to achieve long implementation cycle.
the value promised in an ad or by the solutions salesperson. The third reason for solutions failure happens when the
When this gap between what was promised and what was customer’s expectations are not met. This often occurs if a
actually achieved is ignored, the seller has a credibility solutions seller inflates the value of the solution or never
problem, which only serves to widen the Value Gap. understood the customer’s value expectation to begin with.
Thull sees this gap as one of the biggest problems that It can also happen when there is a lack of adequate training
business-to-business solutions marketers face today. He by the solutions seller, and, as a result, the customer never
believes there are too many companies and institutions who fully understands the value that is delivered.
make large investments in solutions, that are supposed to Whatever the reason for the failure, the result is often
meet organizational challenges and solve problems, that endless rounds of what Thull terms, the “blame game,”
wind up not achieving their goals. Thull believes there are where the customer and the seller are both pointing at the
three reasons for most of these failures. other. No matter who actually bears the responsibility, the
The first reason that value is not achieved, is because repercussions will be felt by the seller. As Thull says, “Few
the product or service itself is not able to deliver on the customers will shoulder the full burden of a solution failure,
promises made. Quite simply, the solution is flawed. It and the overwhelming majority will not completely absolve
may be the product is poorly designed, or it may be the a vendor who has not delivered on value promises.”
solution is not properly matched to the customer’s need. As a result, the customer no longer trusts the vendor, and
the probability for future sales is low, and, in some cases,
legal battles can erupt. These problems then spill over in
About the Author to the marketplace as unhappy customers are very likely
Jeff Thull is a strategist and advisor to execu- to spread the word. Thull cites studies that say an unhappy
tive teams of major companies worldwide. he is customer usually tells nine others about their experience.
President and CEO of Prime Resource group, and All of these issues will have an impact on the seller’s
Thull has designed and implemented business bottom line. Relationships with current customers may
transformation and professional development pro- be damaged or lost altogether, margins are squeezed, and
grams for companies like Shell Global Solutions, the seller’s products lose their value. If word leaks out,
3M, Microsoft, and for many start-up companies as
prospective customers may back away, and established
well. His specialty is sales and marketing strategies
customers may begin to doubt the value of the products
for companies involved in complex sales.
they have purchased. This experience is frustrating for
For more information, please visit: buyer and seller alike, and that frustration just widens the
www.primeresource.com Value Gap.
Business-to-business solutions sellers are seeking new
ways to add value to their products and services. They want
Business Book Review™ Vol. 22, No. 6 • Copyright © 2005 Business Book Review, LLC • All Rights Reserved Page 2
The Prime Solution Jeff Thull

to gain a competitive edge. Innovation has always been at to the next. In Era Two, the escalator still performs the same
the heart of business success, and enhancing value through function, but the seller might also have a financing program,
technological innovations is inherently a good thing. But an installation plan, as well as a support agreement. The
oftentimes, solutions sellers lose track of the fact that customer has to understand and evaluate each of these
technology creates complexity . components to know the value of the product.
According to Thull, there have been three eras of Era Two saw the emergence of the consultative approach
evolutionary change in business. By examining these to selling, as opposed to the persuasion and manipulation of
eras, the challenges created by increasing complexity can Era One. In Era Two the sales person became a problem-
be understood. These three eras span from 1950 to the solver and a listener, attempting to match up the customer’s
present day, and the changes from era to era will shed lightneeds with an appropriate product or bundle of products.
on how the expansion of the value promised by the seller This change paved the way for Era Three, which began in
can actually dilute the value achieved by the customer. the mid-1990s.
When products were created and sent off to market in It was in the mid-1990s that not only products began to
the 1950s, they were greeted by post WWII era consumers grow more complex, but so did the customer’s needs, often
expanding faster than the customers could keep
“A Prime Solution is a metamodel and, to some extent, an
ideal. But its, nevertheless, an ideal that is attainable and up with. Technology played a key role in this
practical.” change. Thull cites the Internet as one example,
as well as technologies allowing the integration
who were hungry for innovation. The products were and networking of business systems. Buyers do not always
relatively simple, as were the deals made between buyer understand the technology, They just know what business
and seller. The seller either said yes or no and that was problems it is supposed to solve. This lack of understanding
that. The product literally sold itself, because customers often leaves the customer not knowing which technological
could easily comprehend the value of the product, and how component solves which problem.
it would fit in to their business. Also, in this simplistic Solutions are also evolving in complexity and most
business climate, the seller’s agenda usually trumped. The business-to-business buying teams are not knowledgeable
salesperson’s job was to persuade the buyer to buy. Sales enough to make a good decision about what they need.
training focused on presentation, on closing the deal, and This complexity is at the heart of Era Three’s business-
on manipulating the customer. to-business landscape. Customers require more help
Era Two, which spanned roughly the 1970s to the mid diagnosing their own problems, and in designing,
1990s, saw a slightly more sophisticated business climate. evaluating, and implementing solutions, as well as in
The focus became more customer-centric. Products did achieving the complex, customized, and unique value
not just meet one need, but had a range of possibilities. promised by the solutions they have just purchased.
There was the generic product, the product without any According to Thull, one of the key contributors to the
value added. Then there was the expected product, whose Value Gap is that sellers have not recognized that Era Three
added value was limited to the minimal expectations of the has begun. Therefore, if the sellers do not recognize the
consumer; and then there was the augmented product, to shift, then they have not adjusted their business plan to deal
which the seller added value beyond the customer’s basic with it. So, they are operating with tools from Era Two,
wants and raised the bar for competition. There was also when they have actually entered Era Three.
the potential product, encompassing all of the value The marketing focus of today’s business-to-business
possibilities that could be imagined. solutions sellers is often on the capabilities of the solutions
Sellers began to add value by enhancing the product and what a great future the customer will have with this
itself and by bundling services and other intangibles that bundle of solutions. The customer is left to figure out how
went with the product. Thull provides the following example the bundle will meet its unique needs. According to Thull,
to demonstrate the difference between Era One and Era there is an easy test to see if a company is still operating
Two. In Era One, an escalator moved people from one level in Era Two. He instructs companies to examine their sales

Business Book Review™ Vol. 22, No. 6 • Copyright © 2005 Business Book Review, LLC • All Rights Reserved Page 3
The Prime Solution Jeff Thull

material. If it is inward focused--looks at the company and The third barrier is the comprehension barrier. Most
the solution exclusively--then it is an Era Two marketing sellers overestimate how well customers understand their
piece. own problems and understand the potential solutions.
Another sure sign that a company is operating in So, the seller prepares detailed presentations with lots
the wrong era, is in the type of post sale processes that of technical facts and figures, and the customer winds
a company has. If a company is still entrenched in Era up comprehending about a quarter of the information
Two, the successful installation of the product concludes presented. Therefore, they do not fully understand the
the transaction, or it may be limited to servicing defective solution they are being asked to buy.
parts, or to providing a maintenance contract. As Thull The dilution barrier is the fourth one. Buyers want
sums it up, “We installed it; it’s working; give us a call if solutions with lots of value, but they often serve as their
it breaks.” own worst enemy in the way they go about purchasing
Thull contends that Era Three business-to-business solutions. Sellers become their own worst enemy when they
sellers must be sources of business advantages for their allow customers to treat their solutions like commodities
customers. This means that sales presentations have that are competitive on price. Solutions have been bundled
to change. Rather than focusing inwardly,
presentations should focus on clarifying the “It doesn’t take a leap of logic to conclude that, if custom-
customer’s needs, their business challenges, and ers cannot make the best solution decisions and effec-
their objectives. No longer can a seller install a tively implement them, there is little hope that they will
product and move on. Now, sellers will need to achieve the value promised.”
monitor progress and value achievement. The
relationship becomes more collaborative, with more post together, because they work well together, and together they
sale services. To achieve this collaboration between seller can solve business problems, but separately they are less
and buyer, the key functions within the seller’s organization effective. When a customer’s purchasing department starts
will have to collaborate, and all will have to be in sync with to balk on price, often times, sellers, in order to close the
the unique needs of the customer. deal, will start pricing the components separately and
There are barriers to working in Era Three. Thull allow the customer to pick and choose pieces of the
identifies five he believes are key and that must be overcome bundle. Therefore the solution that the customer ends up
in order to be a successful business-to-business solutions with doesn’t do everything it could have, if it had been left
seller. The first barrier is that of relevancy. The seller and as a bundle.
the customer must agree on what the customer’s needs are, The final barrier is the implementation barrier. When
before a solution can be found. If solutions sellers do not the buyer cannot make the solution work properly, there
want to alienate their customers, they must really examine can be many reasons. The product could be flawed, or the
the customer’s needs and craft a solution designed to meet customer might not have the internal expertise to operate
them. the solution. When the seller’s collaboration with the buyer
The inflation barrier is the second Thull identifies. ends when the sale is made, or once the solution is installed,
Sales presentations traditionally present the features and the chances of running into the comprehension barrier are
benefits of the seller’s solution, and in these types of pitches greater.
promises are made. If the seller is touting its product, the So, business-to-business solutions sellers must
seller is not listening to nor learning about the customer’s determine ways to overcome these barriers. There are
business. The seller is also not talking about the operational three key ideas Thull identifies, and that a seller must
and cultural changes that will have to take place in order consider. The first is, the seller must seek out the causes
for the solution to work. In other words, if the customer’s for the barriers. However, the seller must not do this with
operations and culture are not in sync with a solution, those the intent of assigning blame. The seller must find the
promises will not be fulfilled. cause and address it, without pointing fingers. Secondly,
the seller must understand that often one barrier supports
and reinforces another. Lastly, the seller must understand
Business Book Review™ Vol. 22, No. 6 • Copyright © 2005 Business Book Review, LLC • All Rights Reserved Page 4
The Prime Solution
that every part of its organization has the potential to be
responsible for a barrier. Research and Development might
be responsible for a relevancy barrier; marketing and sales
might be responsible for an inflation or comprehension
barrier, while sales and support/service might be responsible
for a dilution and implementation barrier. In order for a
business-to-business solutions seller to operate in Era
Three, their organization must take a holistic, integrated
approach to developing and delivering solutions.
PART II: PROTOCOLS OF PRIME SOLUTIONS
Value maximization is the first protocol of a Prime
Solution. It leverages the seller’s sources of value to
positively impact the customer’s organization at the
highest possible level.
Product level is the lowest level and relates to the
quality, the availability, and the cost of the product itself. realistic expectations regarding the results.
“We can visualize the Value Gap as a major fault line run- to make a decision about solutions, because
ning between Era Two and Era Three. Like the space
between the earth’s plates, the break is neither clean nor well versed in every facet of their business.
easily closed.”
The source of value at the process level is the solution’s
capability to improve a customer’s internal operations.
Performance level is the highest level of value leverage.
At this level, the solution is completely integrated with the
customer’s business drivers and strategic objectives, so
there is a creation of a distinct business advantage.
Creating a Prime Solution means being able to
understand the customer’s business environment and
marketplace, identifying and addressing the consequences
and costs that a customer experiences in the absence of the
solution, and the linking of the solution to the customer’s
existing strategies and goals. It might even mean
expanding or revising the customer’s strategies and goals
in recognition of the solution’s capability.
Notice that these tasks are very Era Three friendly.
They are customer focused and require doing a complex
needs-assessment. In order to develop a solution for a
company, the company’s challenges, strategies, priorities,
and goals must be understood. Then this information must
be used in the development, design, and delivery of the
solution. Getting close to the customer allows the seller to
create a solution that adds value to their services.
When designing a solution that won’t fall into the
Value Gap, performance metrics must be considered.
Thull believes “one of the most serious contributors to the
Business Book Review™ Vol. 22, No. 6 • Copyright © 2005 Business Book Review, LLC • All Rights Reserved
Jeff Thull
Value Gap is the imprecise connection between customer
performance metrics and solution capabilities.” In order
to craft a solution that will bridge this gap, a customer’s
revenues and expenses, customer satisfaction, employee
satisfaction, regulatory compliance, and the uniqueness and
availability of the customer’s products must be taken into
account. If solution sellers meet these requirements,then
they have met the first protocol of a Prime Solution.
The second protocol, requires decision acuity. Thull
defines this as “recognizing the multiple dimensions of
a high-quality decision.” The dimensions of decision-
making include priorities, investment, commitment, and
risk. When solution sellers work with customers in the
decision-making process, customers gain an understanding
of their problems, including the overall impact and cost of
those problems. They also gain the knowledge and insight
necessary to evaluate solution alternatives and to form
Most customers are not well-equipped
executives and managers are usually not
Sellers can approach this situation from one
of three positions: (1) a reactive approach; (2)
a proactive approach; or (3) an interactive approach.
A reactive seller simply complies with a customer’s
process with little or no question or interaction. A
proactive seller arrives with a solution already mapped
out. In contrast, an interactive seller focuses on expanding
the customer’s understanding of their own problems and
alternatives.
The interactive approach to selling requires helping
the customer assemble the best decision-making team with
the appropriate expertise, as well as helping the customer
to overcome the fear of change and of risk. Thull says that
an interactive team will also help their customer overcome
the tendency toward “delusional optimism.” This is the
human tendency to exaggerate the chances of success and
to think solely in terms of best-case scenarios.
Thull believes that an interactive approach to the
decision process anticipates and reduces risk. However,
it does not promise the elimination of risk. Every solution
will have some degree of risk. It is the solution provider’s
job to make sure the customer considers the risks
realistically. One way that an interactive approach does
this, is by examining the cost of the problem and the cost
of the solution.
Analyzing the cost of the problem is key, and it is
complicated. The solution team must scope the problem,
Page 5
The Prime Solution
looking for common indicators of a customer’s problem.
Once the indicators are found, they must be examined so
that the entire range of consequences can be identified,
including the cost of business impacts. Then all of this
information must be summarized and a total cost of the
problem calculated. This figure creates an incentive to
change.
When calculating the cost of the solution, a team seeks
to connect “the diagnosis of the problem to the design
of the solution.” This quantifies the cost of
“In the business-to-business world, the most evident and
change. The price of the solution is only
most relevant performance metrics can be found in the
one element in the calculation. The price of
customer’s value drivers.”
implementation is also part of the equation,
as is the cost of using the solution, including
the staffing levels needed, licensing fees, usage costs, etc.
If a customer only knows the price tag of the solution itself, with a company’s Research and Development department,
they are sure to feel that they have landed in the Value Gap,
when they discover these other costs.
Return optimization is the third protocol of a Prime
Solution. The goal is to make sure customers maximize the
value inherent in the complex solution. In this protocol,
the solution value is made tangible, is measured, and is
enhanced.
Typically, after a solution is purchased, after it is
implemented, after the seller is out of the picture, a customer metrics. A Prime Solution also anticipates and responds to
tries to determine the value they are receiving from their
solution. This creates a vacuum, which is being filled by
post purchase services from savvy solution providers.
These solution providers take responsibility for customer’s
value outcomes by pursuing return optimization.
A solutions provider can opt for three levels of return
optimization. The first is acquisition, when the seller
believes their role is complete when the product reaches
the customer. The second level is installation. Here the
seller at least makes sure the solution operates as intended,
before bowing out. At the third level, or the results range,
the seller’s team participates in the implementation, as
well as the measurement, and ongoing enhancement of the
solution.
Prime Solutions operate in the results range. Sellers
provide a process for change; successfully define, quantify,
and manage risks; collaboratively set performance metrics;
and improve on the solution and the customer’s return on
investment, before moving on. Return optimization focuses
on the customer’s success in capturing value. This is why
a Prime Solutions provider has greater market position,
brand equity, and customer satisfaction.
Jeff Thull
PART III: PURSUING PRIME SOLUTIONS
One question many of today’s solution sellers need
to ask themselves is, “Am I really selling solutions?”
Thull contends that many solutions providers have merely
relabeled existing products and services and called them
solutions. Delivering effective solutions does not start
with sales. It starts at the beginning of the value chain with
products that offer customers maximized value, decision
acuity, and an optimal return.
Quality solutions start in the development phase, often
which usually has the least interaction with customers. So,
R&D often has to come up with its own assumptions about
what value is. This can lead to a disconnect between the
solution and the customer. This is why a Prime Solution
begins life with a tangible and compelling customer
problem, and solutions development is examined through
the filter of the customer’s value drivers and performance
problems a customer will face in the future.
The development of Prime Solutions encompasses
the process of solving a problem as well as the actual
problem solving, itself. The process is framed in terms of
the customer’s desired outcomes. This broader context also
allows for solutions development to include the customer’s
decision process when purchasing a solution, and to include
the implementation and usage of the solution.
Thull says that a sound connection to customer
problems and a broader context for development are
reasons why the development of a Prime Solution requires
an inclusive approach to solution development. The
development team must be cross functional and include
customer representatives, seller representatives, and
supplier representatives.
Another key to pursuing Prime Solutions is locating
the sources of solution opportunities. In many instances,
companies need to look beyond their R&D department.
Solutions sellers might look at their customer’s customers
to find solutions opportunities as well as looking at their
own supply chain.

Business Book Review™ Vol. 22, No. 6 • Copyright © 2005 Business Book Review, LLC • All Rights Reserved Page 6
The Prime Solution
The marketing products used by solutions sellers may
be enticing, but often they end up looking remarkably
like their competitors, with little differentiation between
products and services. Thull recommends a problem-
oriented differentiation, or Diagnostic Marketing, for
marketing solutions. The goal here is to craft targeted
messages that engage customers and move them along
toward change. Diagnostic Marketing is focused on the
customer’s reality and the physical symptoms of their
problems. They are also written in what Thull calls the
negative-present tense.
These marketing materials speak about the customer’s
current problems and the tangible symptoms. Customers
often view these messages as no-nonsense, to the point, and
highly credible, because they are relevant to their current
situation. To be effective, these ads must have specific
problem indicators.
Effective solutions marketing will be targeted to the
right market segmentation as well. This is described as
using a “nontraditional segmentation strategy based on
the customer’s internal profile--how they think and what
they are experiencing.” This works because customers hire
products to do jobs, and this type of marketing sells products
on the basis of jobs that need to be done.
The sales force of a solutions seller will need tools
and support materials in order to sell effectively. They
need materials that will guide them through the same
diagnostic approach used in creating the solution. The
sales team must be able to identify problem indicators and
their consequences, and they must be able to think like a
customer. Their goal must be to come to a high quality
decision that aligns the seller and the customer. T h e r e
are four phases to the selling of Prime Solutions. The first
is diagnosis, where the customer’s problems are explored
in great depth. The second phase is design. The goal is
to define the optimal solution for a customer, so that the
appropriate solution can be created. The third phase is
delivery of a formal proposal that accurately portrays the
decision process, weighs the indicators and costs of the
customer’s problem, and lays out a solution.
The final phase is delivery, which as Thull has
demonstrated, is often the most problematic. The goal in
delivery is to successfully transform the solution’s value
potential into tangible customer results. In other words,
the solution cycle brings customers a process that carries
Business Book Review™ Vol. 22, No. 6 • Copyright © 2005 Business Book Review, LLC • All Rights Reserved
Jeff Thull
them from their current state to the state promised by the
solution. In order to do this, the solution must account for
the customer’s technology, the customer’s processes, and
the impact on the customer’s people.
In order for a solutions seller to continue to create
opportunities for themselves, they must turn the value
chain into a value cycle. They must connect the delivery
of a Prime Solution back to the generation of new solutions
opportunities.
* * *
Bibliographic notes by chapter and a subject index
are provided.
Remarks
According to The Prime Solution, today’s solutions
sellers need to be more customer-focused in the
development of solutions, so that they can be more precise
in delivering solutions that actually produce value for
their customers. This entails a change in the mindset and
methods of the solution providers. It means a shift away
from looking inward and from analyzing the benefits of
one’s own products. It means looking outward, at what a
customer’s problems are.
Reinvention is a common theme these days, as is
keeping up with changing times. Almost as interesting
as Thull’s process to finding solutions, is his grasp of the
history of business and of business cycles. He analyzes
and defines the three eras of business. It is an interesting
and, seemingly accurate, look at how the times and
the technology has changed the way businesses work;
and should have changed the way business-to-business
solutions sellers operate.
It is telling to see how solutions sellers, like most of
us, have stuck to tried and true methodology. Although
it is a little surprising in an industry as new and as
innovative as that of business-to-business solutions sellers,
especially when Thull demonstrates time and time again
that those tried and true methods are no longer effective.It
is interesting to note that an innovative industry, such as
Page 7
The Prime Solution Jeff Thull

solution selling, borrowed methodology from its more staid CONTENTS

counterparts from bygone eras.
Thull’s process for generating a Prime Solution is
rooted firmly in Era Three ideas. He believes in getting
to know the customer and the customer’s business, and he
believes a solutions seller must approach selling solutions
from the perspective of a customer. This seems to be the
battle cry of the 21st Century, a casting off and a rejection
of the narcissistic approach of the 1990’s.
Reading Suggestions
PART I
Chapter 1: The Elusive Solution
Chapter 2: Three Eras of Value Dilution
Chapter 3: Five Barriers to Keeping Value Promises
PART II
Chapter 4: Value Leverage for Business Performance
Chapter 5: Multiple Decisions, Mutual Understandings
Chapter 6: Effective Execution, Measurable Results
PART III
Chapter 7: Creating the Prime Solution
Chapter 8: marketing the Prime Solution
Chapter 9: Selling the Prime Solution
Chapter 10: Delivering on the Value Promise

Reading Time: 6-8 Hours,195 Pages in Book

The Prime Solution acts a how-to guide or
handbook for business solution sellers. In the first part,
Thull throughly examines today’s business climate and
the many challenges it presents. He also looks at the
solutions marketplace and lays out some of the pitfalls
that many solutions sellers fall into. Part Two details the
protocols of arriving at a Prime Solution. He presents the
three protocols in detail, laying out a clear road map for
business-to-business solution sellers. Part Three delineates
how a company can incorporate the Prime Solution process
in their business.
For those who feel they know todays’ business climate
and the solutions market inside and out, it will be tempting
to skip Part One. And, in all probability, the reader would
still grasp the salient points of the Prime Solution’s
methodology. Reading the second and third parts would
serve as a basic primer for those who want to cut to the
implementation of the Prime Solution’s methodology.

Business Book Review™ Vol. 22, No. 6 • Copyright © 2005 Business Book Review, LLC • All Rights Reserved Page 8
The Prime Solution Jeff Thull

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