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Prospecting Tools: The Key to Maximize Sales ROI

In an increasingly saturated tech solution market, it’s vital to leverage every advantage to stay ahead of the competition – and it starts in the prospecting stage. As B2B buyers become more informed and tech-savvy, traditional prospecting methods no longer suffice. Investments in innovative sales prospecting tools can be a game-changer to meet evolving customer expectations. By reducing the time and resources spent on prospecting, you can accelerate the sales cycle, gain direct access to decision-makers, position your company as an industry leader, and tackle the complex B2B sales landscape.  

Here’s a glimpse into the complexities of B2B sales (CSO Insights): 

  • The average B2B buying process involves an average of 7 decision-makers. Moreover, it takes 8 touchpoints to get an introductory meeting with one decision-maker (RAIN Group).  
  • 50 – 90% of a buyer’s journey is complete before interacting with a sales professional. They are already well-informed and have specific needs in mind when a sales professional reaches out to them. 
  • The average sales cycle for new B2B customers varies from 4 – 6 months to 1 year. This lengthy cycle requires a strategic approach to lead nurturing and relationship building. 
 

Prospecting: A Sales Professional’s Kryptonite

These complexities translate into a significant challenge for even the most seasoned sales professionals: prospecting. Identifying and qualifying leads that align with your buyer persona is a time-consuming and often frustrating process. Consider these statistics: 

  • 40% of sales professionals identify prospecting as the hardest part of the sales process (HubSpot). Sales professionals only spend 36% of their time actively prospecting for new leads. The remaining time is consumed by administrative tasks, travel, and training (Salesforce). 
  • 80% of sales require at least five follow-up calls, with a minimum of 3 days between each attempt to connect (HubSpot). Persistence is key, but it can be a daunting task for busy sales professionals. 
 

“The biggest challenge is to be able to contact somebody that you don‘t necessarily know beforehand and that receives many contact requests every day.” 

Former Country Manager, Finland & Baltics; Trend Micro 
 

“Decision-makers are inundated by sales representatives. They can’t even open their inboxes. The same goes for phone calls. The challenge is getting in contact with these decision-makers.” 

Chief Growth Officer, Bombayworks 
 

The consequences of inefficient prospecting methods are dire, leaving negative impacts on sales performance and revenue generation. According to research by Industry Reports: 

  • Only 29% of sales executives made quota in 2022, and win rates saw a significant drop. Inefficient prospecting directly affects sales success. 
  • Deal sizes decreased by 32% while sales cycles increased by an average of 32%. The ability to close deals is hampered by a lack of qualified leads. 
 

Understanding the B2B Buyer: Elusive Yet Empowered 

Tailoring your sales approach to the behavior and preferences of B2B buyers is imperative. Here’s what the data by Gartner tells us: 

  • Sales executives have just 5% of a customer’s time during their buying journey. Making the most of that limited window is critical. 
  • 90% of B2B decision-makers expect a seamless DTC-like customer experience.  
  • Buyers prioritize independent online research over initial sales executive interaction. Providing valuable content throughout the buyer’s journey fosters trust and establishes expertise. 
 

Do Sales Prospecting Tools Offer a Viable Solution?  

Sales prospecting tools have emerged as a powerful technology to address these challenges. These tools automate and streamline prospecting tasks like identifying, qualifying, and contacting potential leads. However, many prospecting tools fall short of providing a comprehensive solution and delivering prospects that are high-quality, have the right seniority, and are open to conversations with solution providers.  

Fortunately, there are tools on the market like ME Matchmaking by Management Events that go beyond traditional prospecting. ME Matchmaking takes on the critical but time-consuming tasks of prospecting as well as lead generation and qualification. We also help sales professionals keep their fingers on the pulse of their prospects’ investment priorities and offer opportunities to nurture relationships with them. Here’s how we empower your B2B sales pipeline: 

  • Precision Targeting: Say goodbye to wasted time and unqualified leads. We leverage our extensive network of high-level executives in tech fields and industry expertise to identify companies with a strong fit for your target audience. This ensures you’re connected with the right decision-makers who have the potential to become loyal customers.  
  • Data-Driven Insights: Via regular conversations with our network members, we gain valuable insights into their focus areas and pain points. We offer this knowledge to empower your sales team to tailor their approach and deliver value propositions that resonate with specific business needs. 
  • Effortless Meeting Scheduling: You can eliminate the time-consuming hassle of contacting decision-makers and scheduling meetings. Our team handles the logistics, ensuring you have pre-arranged meetings with qualified prospects, ready to discuss their challenges and explore your solutions. With guaranteed direct access to decision-makers, these meetings can help your company capitalize on market opportunities before competitors do. 
 

“A good thing about Management Events is that we get 15 minutes of dedicated time with key personnel. We know in advance what role the person is, their company, and their topics of interest.” 

Sales Director, the Netherlands; Thoughtworks 
 

“The meetings are booked in our schedule every other week, and we have time to prepare and do follow-ups. It allows us time to nurture leads.”  

Business Development Director, Keto Software
 

Quantifiable Benefits: Time Saved, Deals Closed 

Imagine having 25 pre-arranged meetings with qualified decision-makers in just 3 months! That way, your sales team has more time to focus on what they do best – building relationships, demonstrating the value of your solutions, and focusing only on closing deals. 

 

“Our sales cycle is around six months up to two years. But twice, once before the pandemic and now after, I’ve met with a decision-maker and landed a deal within a month or so via Management Events.” 

Chief Growth Officer, Bombayworks 
 

Beyond Leads: Building Relationships and Branding for Long-Term Success 

B2B sales success is more than just generating leads. Therefore, we provide access to exclusive networking events where you can connect with C-level decision-makers face-to-face. At these events, you can foster brand awareness, strengthen relationships, and create a platform to showcase your expertise in a relaxed and engaging setting. In addition to these events, we offer a range of sponsorship opportunities that elevate your brand visibility from dedicated lounge areas to hosting roundtable discussions. 

 

“ME Matchmaking has given us a new way of connecting with our target audience. On top of the virtual 1-to-1 meetings, the in-person events give us good opportunities to meet people face to face and have a more personal conversation.” 

Field Marketing Manager Benelux, Nordics, Israel; Boomi 
 

“Management Events is one of the networks we use as a first connector to meet the right people. It’s great that we can meet people all year long.” 

Senior Manager, Field Marketing, Northern Europe, OutSystems 
 

Investing in ME Matchmaking: A Measurable ROI 

By streamlining prospecting, nurturing qualified leads, and facilitating valuable connections, ME Matchmaking empowers your sales team to close deals faster and generate consistent revenue growth. Here’s a breakdown of the ROI you can expect: 

  • Increased Sales Efficiency: Shortened sales cycles and a focus on qualified leads all year round allow your sales team to prioritize their core task – closing. This efficiency translates into faster revenue realization and better resource allocation. 
  • Improved Win Rates: By connecting with the right decision-makers from the start, your sales team is better positioned to have more meaningful conversations with a higher success rate. Direct access to key influencers reduces the uncertainty in the sales funnel, making each engagement more productive. 
  • Enhanced Brand Awareness: Networking events and sponsorship opportunities increase brand visibility within your target market. This increased exposure helps establish your company as a leader in the industry, attracting more prospects and potential partners. 
  • Reduced Sales Costs: Eliminate the need for ineffective prospecting methods and free up your team’s time for high-value activities. ME Matchmaking can also potentially lower the cost of acquiring new customers. The savings in time and resources can be redirected towards strategic growth initiatives, further boosting your ROI. 
 

“This collaboration with Management Events works exceptionally well for us. We don’t have time for cold calling; we buy this service. Management Events is an extension of our marketing efforts, making it very effective.” 

Vice President, Sales & Marketing, Midagon 
 

“ME Matchmaking also builds well-trained sales staff because there is continuity in the sales funnel. It is a good addition to our existing sales tactics.” 

Head of Sales, Consileon 
 

Ready to Transform Your Sales Pipeline and Outpace the Competition? 

Sales prospecting tools like ME Matchmaking not only simplify the prospecting process but also enhance your branding and networking efforts. This powerful tool helps you navigate the B2B marketplace by reducing uncertainty and ensuring high-quality engagements with decision-makers. Comprehensive onboarding and support prepare your team for successful interactions, maximizing the value of each engagement. With ME Matchmaking, you can achieve significant cost savings, drive faster revenue growth, and maintain a competitive edge. 

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After a Global IT Outage: 3 Actions for CIOs and CISOs

A failed software update on 19 July 2024 caused one of the largest IT disruptions in history. Approximately 8.5 million Microsoft Windows devices were affected, disrupting critical sectors such as airlines, healthcare, and banking. This outage is a major wake-up call for business leaders to reassess their security posture and third-party vendor relationships.  

Here are three post-incident actions CIOs and CISOs can put into motion: 

 

1. Improve Communication with Vendors 

 

Maintaining regular communication with vendors is essential for a secure and stable IT environment. Rather than solely focusing on selecting new vendors, CIOs and CISOs should frequently engage with their current vendors, review their product offerings and features, and consider having a backup vendor for added protection. 

More importantly, it’s essential to regularly review all agreements and contracts with vendors. This includes end-user licensing agreements (EULAs), service level agreements (SLAs), and liability and compensation clauses. Understanding who is liable for outages, faulty software, and operational mistakes is critical. 

Moving forward, CIOs and CISOs must also revisit current vendor criteria and make necessary updates that prioritize trust, reputation, certifications, insurance, history, and cybersecurity practices. Matthew Rosenquist, CISO at Mercury Risk, advises documenting configuration and allowable settings in a policy procedure to maintain consistency and prevent unexpected issues. “When you either upgrade to a new piece of software or a different service, or you change vendors, having it documented will maintain that consistency, and you can feel confident that you’re not going to have some unusual surprises because of poor change management.” 

 

2. Update Incident Response Plans  

 

Robust incident response plans are paramount to lessen the blow of unexpected disruptions and attacks. The Bonadio Group, one of the companies who experienced the blue screen of death managed to get their servers up and running within three hours because they were prepared. CIO John Roman says, “The reason we were able to do that was we implemented our incident response plan. Most incident response plans are created in the event there’s some type of malware incident. We genericized ours to take into consideration any type of incident — including a global pandemic.” 

Therefore, it is vital to create or update incident response plans with clear procedures, roles, responsibilities, and communication protocols. These plans should detail specific steps for detecting, responding to, and recovering from various types of security incidents. Regularly testing the people, processes, and tools involved in incident management is essential to ensure quick and effective responses. 

Additionally, strengthening cooperation between IT and cybersecurity teams is crucial. During a cyberattack or IT disruption, these teams must work closely to contain and eliminate the threat. Emphasizing redundancy and failover mechanisms is also important to ensure that critical systems remain operational even if one component fails. Building redundancy into enterprise systems can prevent widespread disruptions. 

Organizations should prepare PR, legal, and cybersecurity teams for rapid response. This preparation will help mitigate damage and maintain business continuity during an incident. However, it’s important to eliminate as much red tape as possible to ensure action is taken swiftly. “We don’t want to have too many layers of bureaucracy that could slow them down, because that could make all the difference in the world and make sure the disaster recovery and business continuity plans, the communication processes, teams, tools, and necessary outside vendors are well prepared to work together,” Rosenquist says.  

Other than behind-the-scenes work, organizations must also practice transparency and honesty with their customers. In the event of an IT outage, ensure customers are informed and supported with the right information and data to prevent panic. CISOs and CISOs must also equip their teams with the right data that clearly illustrates the root cause of the disruption and its business impact. 

 

3. Conduct a Thorough Security Audit 

 

It’s high time to conduct a thorough security audit to identify and mitigate risks within your IT ecosystem. This involves a comprehensive examination of network security, endpoint protection, access controls, and data protection measures. 

One key aspect of the audit is identifying vulnerabilities, outdated systems, and single points of failure. Software with a single point of failure can cause millions of devices to malfunction simultaneously. Protecting and monitoring vulnerable areas is crucial, and so is having robust recovery options. Updating and testing backup systems every quarter ensures data can be restored quickly in an outage. 

Companies such as Black Wallet had their security systems compromised during the 19 July outage, but this allowed them to highlight weaknesses in their overall security posture. CIO Remi Alli explains, “The lack of access to critical security insights put us at risk temporarily, but more importantly, it highlighted vulnerabilities in our overall security posture. We had to quickly shift some of our security protocols and rely on other measures, which was a reminder of the importance of having a robust backup plan and redundancies in place.” 

Keeping all software and systems up to date is vital for maintaining a strong security posture. This includes operating systems, applications, security tools, and firmware. Regular patching addresses known vulnerabilities that could be exploited by attackers, reducing the risk of security incidents.  

 

The recent IT outage teaches valuable lessons in managing third-party vendor risks as downtime causes organizations significant financial losses and reputational damage. Other than nurturing existing vendor relationships, CIOs, CISOs, and board members must ensure they are on top of incident response plans and regular security audits to enhance resilience and maintain business continuity.  

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How to Build a High-Performing B2B Sales Team in 5 Steps

Building a B2B sales team that consistently hits targets, builds lasting customer relationships, and thrives in a competitive landscape is a goal for every sales leader. However, leading a B2B sales team is a challenging balancing act of honing the right skills, having a data-driven mindset, and fostering a positive work culture. In this article, we uncover five essential strategies to build a high-performing B2B sales team. 

 

1. ENCOURAGE YOUR TEAM TO USE B2B LEAD GENERATION TOOLS 

Effective use of time is crucial for sales professionals, especially with generating high-quality leads in B2B sales. Therefore, working with lead generation tools can help your sales team focus on tasks that matter, and spend less time on time-consuming processes like researching, prospecting, and cold calling. There are plenty of affordable lead generation tools on the market that provide basic contact information of prospects and nothing else. However, services like ME Matchmaking not only generate high-quality leads but also arrange 1-to-1 virtual meetings with the leads of your choice.  

This enables your sales team to connect with decision-makers in their target group all year round and build trusting long-term business relationships. These meetings also allow sales professionals to create personalized and engaging purchasing experiences that align with the expectations of today’s decision-makers.  72% of decision-makers expect vendors to personalize the sales process to their needs (Salesforce).

Having meetings virtually gives prospects the flexibility to join from anywhere, anytime. There is also a higher chance for that conversation to turn into a purchase discussion. Introductory meetings can be quite short — they will push you to dive into the pain points of decision-makers right away and present your product or service, and decision-makers are more open to it since it doesn’t overwhelm their schedules. 

Virtual meetings have proved to be more productive and efficient and have become the preferred way of communicating among C-levels. 85% of decision-makers are more eager to join a 30-minute virtual meeting than an in-person meeting (LinkedIn). In addition, today’s B2B customers are less susceptible to sales gimmicks and empty promises. The customer holds more power as they are smarter and savvier with the accessibility to information and reviews online.  

 

2. SEND YOUR TEAM TO BUSINESS NETWORKING EVENTS  

Closing deals shouldn’t be the only priority for a sales professional. Building long-term business relationships with prospects must also be a focus area. Therefore, set aside resources and time to allow team members to join relevant in-person business networking events. At in-person events, sales professionals can connect with prospects casually and organically and have meaningful conversations about the prospects’ challenges. In addition, prospects can also put a face to a company when they interact with sales professionals in real life.   

Networking at in-person events also presents numerous opportunities for sales professionals to reignite connections with cold leads and nurture them into deals. The Demand Generation Report noted that events are the most effective lead generation strategy, at 68%. For example, ME Matchmaking clients can attend full-day invitation-only local events where sales professionals can network with hundreds of top decision-makers in the region under one roof. 

You need to know which attendees are within your target market so you can focus on networking with the right people. In sales, a buyer persona is your biggest asset and can lead to a 171% increase in sales for companies as they understand who their target market is (Zipdo). 

Before attending an event, sales professionals should: 

  • Request a list of attendees before the event (if possible) and research them and their companies. Look up any interviews they might have done and find out about their latest projects. This can help spark conversations. 
  • Shortlist who they want to meet and connect with them on LinkedIn.  
  • Note the interesting sessions at the event, especially those related to their product or services, so they can attend and find attendees interested in the same session. 
 

3. LEVERAGE DATA TO MEASURE YOUR SALES TEAM’S PERFORMANCE 

In the fast-paced environment of B2B sales, data is abundant but often gets lost in dusty spreadsheets and forgotten dashboards. This data is a goldmine of opportunities if analyzed effectively and provides insights into a sales team’s performance. Gartner predicts that 65% of B2B sales organizations will transition from intuition-based to data-driven by 2026. By investing in modern CRM systems, improving data collection, and embracing data-driven analysis, you can unlock insights that empower your team, optimize processes, and achieve sustainable sales success. 

Here is a list of essential questions that data has the answers to: 

  • Who are the top performers? Track metrics like conversion rates, average deal size, and sales cycle length for each member. This not only recognizes high performers but also uncovers best practices others can learn from. 
  • Who are the weak performers? Data exposes areas where individual team members might be struggling. Metrics like call-to-meeting rates, proposal win rates, and customer satisfaction scores can highlight areas needing improvement.  
  • Where can the sales process improve? Data reveals hidden patterns within your sales funnel. Analyze metrics at each stage, like lead generation sources, qualification rates, and rejection reasons. This pinpoints bottlenecks and inefficiencies, allowing you to streamline the sales process efficiently. 
  • How am I doing compared to my competitors? Compare your team’s performance against industry benchmarks to understand where you stand. This data-driven insight helps you identify areas for improvement and set realistic, achievable goals for your team. 
 

4. RETHINK THE APPROACH TO B2B SALES TRAINING PROGRAMS 

Training programs must never be seen as a one-off, mandatory activity for your sales team to check off. As a sales leader, your role is to help your team get as much as possible out of each training program. Time is precious for a sales professional, so training must be valuable and personalized. Good training can sharpen your sales team’s skills, boost morale, and help them close deals. 80% of high-performing sales teams rate their training as very good or outstanding (Salesforce).  

When building an internal training program, it’s important to start with an assessment of your team’s current skill set and knowledge gaps. This can be done via surveys, assessments, or reviews of past performance. After that, you should develop a comprehensive training plan tailored to the assessment results. It’s also important to make the training fun, engaging, and accessible. Other than in-person training, you can also explore online sales simulations, interactive training modules, and virtual reality simulations.  

After a training session is over, measure its effectiveness through regular conversations, coaching, feedback, and evaluations with each sales professional. This is so each sales professional reaps the maximum benefits from the training. Other than group training sessions, you must make time to touch base on each team member’s progress and offer one-on-one training. Everyone in the group training session will benefit from the same training; however, each may struggle with different parts of that lesson. Therefore, one-on-one training is beneficial so you can give more personalized insights and guidance to each team member.  

Another way to motivate sales professionals to participate in training programs is to offer incentives such as bonuses, promotions, recognition, or other rewards that align with the company’s goals and values. Non-monetary incentives such as additional time off, flexible work schedules, or access to special resources or projects, could also be motivating factors.

 

5. FOSTER A POSITIVE WORK ENVIRONMENT 

A positive work environment is more than just offering training and development opportunities to sales professionals. You need to continually foster a culture of teamwork, collaboration, and open communication. Sales will always be a challenging and competitive industry and can be stressful and demanding for each team member. A healthy work environment can ease the pressure significantly, promote engagement, and give team members a reason to stay. Highly engaged teams experience 59% lower turnover rates compared to teams with low engagement (Gallup). Characteristics of a positive work environment include:  

  • Communicating clearly and frequently expectations, goals, feedback, and recognition. You also need to listen and respond to your team’s concerns, suggestions, and feedback. Set valuable themes and agendas for every meeting to ensure everyone is prepared and the time is used efficiently.  
  • Recognizing and rewarding your team’s efforts fosters morale, motivation, and loyalty. This can be achieved through various means, like genuine verbal praise, personalized thank-you notes, offering attractive incentives, celebrating key milestones, and sharing success stories company-wide. Remember, timely, specific, and meaningful recognition and rewards have the most impact. 
  • Encouraging collaboration and teamwork can foster a positive work environment where your team members share ideas, insights, resources, and best practices. You can encourage collaboration and teamwork by setting common goals, creating cross-functional teams, facilitating peer feedback, organizing team-building activities, and promoting a culture of trust and respect. 
  • Supporting work-life balance can help your team avoid burnout, improve their well-being, and increase their productivity and satisfaction. You can support work-life balance by offering flexible work arrangements, setting realistic expectations, respecting boundaries, providing wellness programs, and modeling healthy habits. 
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Building Rapport with Prospects: 5 Time-Saving Tips for Busy B2B Sales Professionals

In the fast-paced world of B2B sales, every minute counts. Given the extended sales cycles, forging swift connections becomes an essential strategy to build trust and increase the chances of closing deals. But building rapport with prospects – a cornerstone of closing deals – can often feel like a time-consuming endeavor. Here’s the good news: fostering genuine connections doesn’t have to eat into your already packed schedule. 

 

1. ESTABLISH A PRE-CALL INTEL PROCESS  

Before that all-important call, invest a few minutes in research. A quick scan of your prospect’s LinkedIn profile and their company’s social media pages can reveal a treasure trove of rapport-building opportunities. Look for: 

  • Shared connections: A mutual contact can be a great conversation starter. Saying “John Smith mentioned you’re doing some great work on…” instantly breaks the ice. 
  • Industry buzz: Their recent social media posts might reveal a trending topic or a project they’re tackling. Demonstrate your awareness by mentioning it in your call. 
  • Hidden gems: Does their profile mention a passion for mountain biking (like you!) or volunteering for a cause you care about? These personal details can create unexpected connections. 
 

2. LISTEN MORE, SPEAK INTENTIONALLY  

Building rapport isn’t a monologue – it’s a conversation. Here are some quick tips to leave a good impression on your prospects: 

  • Be an active listener: Pay close attention, ask clarifying questions, and paraphrase key points to show you’re engaged. 
  • Be clear and direct: Set realistic expectations, proactively address concerns, and keep communication lines open to build trust with prospects.  
  • Show genuine interest: Ditch the generic sales pitch. Ask open-ended questions about their company goals or specific challenges they face. 
 

3. MATCH AND MIRROR YOUR PROSPECTS 

Mirroring in sales shows prospects you’re on the same page and conveys feelings of trust. In one social experiment by researcher William Maddux studying business negotiations, when one participant copied the other, they made a deal 67% of the time. 

In calls with prospects:  

  • Be yourself but tweak your behavior and body language slightly to match theirs. 
  • Speak their language by adjusting your tone and pace to create a sense of ease. 
  • Mirror their emotions and energy levels to create a shared experience.  
 

4. HARNESS TECHNOLOGY FOR QUICKER COMMUNICATION  

Technology can be your best friend in the time-strapped world of B2B sales: 

  • Shorter, focused calls: Propose dedicated 15-minute calls to discuss specific topics. This demonstrates respect for their busy schedule and allows you to delve deeper into their needs. Services like ME Matchmaking can help you execute these time-efficient calls all year round.  
  • The power of video: A short, pre-recorded video introducing yourself and highlighting your research on their needs can be a more engaging and memorable way to connect than a cold call.  
  • Personalized greetings at scale: Craft email templates with “fill-in-the-blank” sections for company name or industry trends. These personalized messages take minutes and are far more engaging than generic blasts. 
 

5. FOLLOW UP LIKE A PRO 

The last impression matters just as much as the first. Here’s how to ensure your prospect remembers you positively: 

  • Personalized follow-up emails: After your call, send a quick email thanking them for their time and reiterate the key points discussed. Include any promised resources or relevant articles you mentioned. 
  • Connect on LinkedIn: Send a personalized connection request mentioning your recent call and offer to connect on LinkedIn. This keeps you top-of-mind and opens the door for future communication. 
  • Engage with their content: Actively engage with their company’s social media posts and articles. Leave thoughtful comments or share their content with your network, demonstrating your ongoing interest. 
 

IF YOU HAVE MORE TIME, CONSIDER: 

ENGAGING IN RELEVANT WEBINARS  

Attending webinars related to what your company does gives you a broad picture of the interest areas and challenges of your target audience without having to ask them directly. Webinars provide a focused space for sales professionals to participate in discussions, ask pertinent questions, and share valuable insights.  

  • Register for the webinar and add it to your calendar immediately so you don’t forget it. 
  • Be an active participant and use the chat box to ask questions and engage with other participants. 
  • Take the opportunity to move the conversation elsewhere after connecting with participants through the chat function. 

ATTENDING TARGETED NETWORKING EVENTS  

Participating in industry-specific networking events is a practical way for B2B sales professionals to connect with prospects. These gatherings offer a convenient platform for engaging conversations and relationship-building. By being present at these events, sales representatives can efficiently showcase their expertise, initiate discussions, and create a personal connection with potential clients. For example, ME Matchmaking clients can attend full-day invitation-only local events where sales professionals can network with hundreds of top decision-makers in the region under one roof. 

 

Building rapport is a marathon, not a sprint. It’s a continuous process of consistently demonstrating your knowledge, interest, and respect. By incorporating these time-saving tactics, you can cultivate trust and lasting relationships with your prospects, ultimately leading to more closed deals and a thriving sales pipeline. 

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Beyond BDRs: How to Optimize Lead Generation in A Modern Sales Landscape

Gone are the days of the lone salesperson tackling every step of the funnel. Today’s tech solution providers face empowered decision-makers who research heavily before engaging with your team. This shift has fueled the rise of the Business Development Representative (BDR) function. According to Gartner, BDRs qualify leads and identify potential buyers, freeing up seasoned salespeople for nurturing and closing deals. 

However, building and retaining an effective BDR team requires significant investment. Here’s the good news: there are practical solutions available to support or even replace your BDR function, ensuring a steady stream of qualified leads. 

 

COLLABORATE WITH LEAD GENERATION PARTNERS

There are plenty of affordable lead generation tools on the market that provide basic contact information of prospects and nothing else – that provide little support for BDRs.  Services like ME Matchmaking by Management Events offers a more sustainable option. This subscription-based solution acts as an extension of your sales and marketing team, focusing on the critical but time-consuming task of lead generation and qualification. 

Here’s how ME Matchmaking can complement your lead generation efforts:  

  • Pre-Qualified Leads and Meetings: Forget the days of wading through endless unqualified leads. ME Matchmaking utilizes Management Events’ extensive network and industry expertise to identify companies with a strong fit for your ideal customer profile and connect you with the right decision-makers within those companies. Imagine having at least 25 meetings lined up with decision-maker prospects in just 3 months! This allows your sales professionals to walk into meetings confident that they’re speaking with the person who has influence on the buying decision.
 

ME Matchmaking is really good at finding these executives that are otherwise hard to reach. That’s why it’s been a very attractive service to us.” 

Marketing Director, IFS Nordics 
 

“With Management Events, we can really pinpoint the organizations we want to talk to and the people we want to meet.” 

SVP of Sales and Marketing, Solita
 
  • More Time to Pitch and Close: Sales teams typically spend about 2 hours and 45 minutes per day on selling. The rest of the time is spent on activities that don’t directly contribute to generating revenue (The Linq Group). ME Matchmaking can free up your sales team’s valuable time, allowing them to focus on nurturing qualified leads and closing deals. We go beyond just providing a prospect list. Our customer success managers (CSM) manage meeting logistics with those prospects, ensuring everyone’s calendars are updated. Plus, comprehensive onboarding will be provided so your team will be prepared for successful conversations. Our CSMs act as an extension of your team, ensuring prompt communication and maximizing the value of your interactions with decision-makers in our network. 
 

“The meetings are booked in our schedule every other week, and we have time to prepare and do follow-ups. It allows us time to nurture leads.” 

Business Development Director, Keto Software 
 
  • Continuous Lead Flow: Unlike traditional BDRs who may experience performance fluctuations, ME Matchmaking provides a consistent stream of qualified leads throughout the year, ensuring your sales pipeline remains full.  We understand the importance of sales predictability, and our service guarantees a steady flow of opportunities to keep your team busy and hitting their quotas. 
 

“Management Events is one of the networks we use as a first connector to meet the right people. It’s great that we can meet people all year long.” 

Senior Manager, Field Marketing, Northern Europe, OutSystems 
 
  • Targeted Networking: In addition to pre-qualified meetings, ME Matchmaking grants you access to exclusive networking events with C-level decision-makers from top European organizations. These events provide a platform to showcase your expertise, build valuable relationships, and establish your brand within your target market.  ME Matchmaking goes beyond simple lead generation; it fosters strategic connections that can lead to long-term partnerships. 
 

“[ME Matchmaking] is capable of providing really good quality meetings and then top it off with physical events. It‘s a very good recipe for success.” 

Country Manager, Finland & Baltics, Trend Micro 
 

BUILD A WELL-ROUNDED SALES STRATEGY 

ME Matchmaking integrates seamlessly with your existing sales and marketing efforts. It’s not just a replacement for BDRs; it’s a powerful tool that complements your entire lead generation strategy. 

Whether you have a dedicated BDR team, a marketing-driven approach, or a combination of both, ME Matchmaking can significantly enhance your lead generation efforts.  If you have an existing BDR team, ME Matchmaking can act as a force multiplier, supplementing their prospecting efforts and increasing the overall lead volume. For marketing-focused organizations, ME Matchmaking can bridge the gap between marketing-qualified leads (MQLs) and sales-qualified leads (SQLs) by ensuring those leads are sales-ready and connected with the right decision-makers. 

 

”ME Matchmaking has been one of our absolute best lead sources.” 

Marketing Director, IFS Nordics
 

ME Matchmaking can step in and assist in the following stages of the sales funnel: 

  • Initial Prospecting: Define the right decision-makers and their contact details – all that is left for you is pick the prospects you would like to meet from the available list. 
  • Insights: Identify their focus areas and pain points to make sure they align with your solution. 
  • Contacting for Meetings: Get in touch with decision-makers and schedule meetings on your behalf. 
 

“ME Matchmaking is a good addition to our existing sales tactics.” 

Head of Sales, Consileon 
 

THE POWER OF PARTNERSHIP 

In today’s competitive landscape, time is your most valuable resource. ME Matchmaking allows you to focus on what they do best: closing deals.  With a steady stream of pre-qualified leads, access to exclusive networking events, and brand-building opportunities, ME Matchmaking empowers your team to achieve new levels of sales success. 

 

“ME Matchmaking has given us a new way of connecting with our target audience. On top of the virtual 1-to-1 meetings, the in-person events give us good opportunities to meet people face to face and have a more personal conversation.” 

Field Marketing Manager Benelux, Nordics, Israel; Boomi 
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4 Ways to Get Appointments with Decision-Makers

Here’s a familiar story – You’ve done your research, found potential prospects for your company, and got their contact details, but then you face one of these scenarios: 

  • Your emails are ignored 
  • Your calls are going unanswered 
  • Your LinkedIn message is left on read 

These challenges have been the bane of many sales professionals looking to land their first meeting with prospects. If you are reaching a dead-end in connecting with decision-makers, it’s time to switch up your strategies.  

Here are 4 ways to increase your chances of getting in the same room with decision-makers in your target group:  

 

1. ATTEND NETWORKING EVENTS 

Today’s decision-makers are bombarded with emails, sales pitches, and phone calls daily. They don’t want vendors; they want long-lasting business relationships. 

At in-person events, sales professionals can connect with prospects casually and organically, and have meaningful conversations about their challenges. Networking at in-person events also presents numerous opportunities for sales professionals to reignite connections with cold leads and nurture them into deals. For example, there are full-day invitation-only local events where sales professionals can network with hundreds of top decision-makers in the region under one roof. It’s essential to remove selling from the equation and focus on networking instead. 

Before attending an event, sales professionals should:  

  • Request a list of attendees before the event (if possible) and research them and their companies. Look up any interviews they might have done and find out about their latest projects. This can help spark conversations.  
  • Shortlist who you want to meet and connect with them on LinkedIn.   
  • Note the interesting sessions at the event, especially those related to your product or services, so you can attend and find prospects interested in the same session.  
 

2. SEND PERSONALIZED EMAILS  

Decision-makers receive emails from hopeful sales professionals daily. These decision-makers simply do not have the time to go through their inboxes thoroughly, let alone respond. Research shows that 80% of B2B customers are more likely to purchase from companies that offer a personalized experience (Epsilon), and this should start with the first touchpoint. How do you ensure your email lands at the top of your prospect’s inbox?  

  • Get personal: Dig deeper by looking into their social media profiles and websites. For example, find out what they are posting on LinkedIn and check if there are any recent news articles about current or upcoming projects at the company. Weave in your findings in the email to show that you have a genuine interest in their lives rather than merely hard selling your product or service. This can also build trust which over time can bloom into a long-lasting business relationship.  
  • Leverage videos and demos: Incorporate short, engaging videos or demos into your emails to showcase your product or service. A well-crafted video or demo can quickly communicate the benefits and relevance of your offering. Make sure the content is concise, professional, and directly addresses their pain points or business objectives. 
  • Send useful attachments: Attachments can add value to your email, but they need to be relevant and useful. Consider including case studies, white papers, or market research reports that demonstrate your understanding of their industry and highlight the benefits of your product or service. Ensure the attachments are easy to read and professionally formatted.  
 

3. WORK WITH LEAD GENERATION PARTNERS

It’s no secret that lead generation tools are extremely helpful for sales professionals, especially in the prospecting stage. However, most of the lead generation tools on the market only provide basic contact information of prospects and nothing else. Sales professionals still need to spend time cold calling and sending introductory emails to those prospects with a low chance of response. Services like ME Matchmaking by Management Events go beyond that by getting you in 15-minute 1-to-1 meetings with decision-makers in your target group.  

  • Bypass the gatekeeper: ME Matchmaking utilizes Management Events’ extensive network and industry expertise to identify companies with a strong fit for your ideal customer profile and connect you with the right decision-makers within those companies. 
  • Meet decision-makers all year round: Imagine having at least 25 meetings lined up with decision-maker prospects in just 3 months! This allows you to walk into meetings confident that you’re speaking with the person who influences the buying decision.  
  • Say goodbye to scheduling meetings: You will be supported by representatives who will manage meeting logistics with prospects, ensuring everyone’s calendars are updated. This saves you valuable time which you can pour into more crucial tasks like meeting preparation and follow-ups.  
 

4. PRIORITIZE BRAND BUILDING AND AWARENESS  

It takes an average of 5 to 7 impressions for a brand to become memorable (Action Card). Therefore, a strong brand presence is imperative as it builds awareness, credibility, and trust among your target audience. Companies with strong branding also inch closer to being top-of-mind solutions for potential customers. Once your customers know who you are, the chances of you securing an appointment or meeting with them are higher.  

Here are ways to elevate your brand presence: 

VIRTUAL EVENTS

  • Join relevant webinars: If your company develops cloud software, try to join cloud-related virtual insights-sharing sessions. Find opportunities to be a host or a speaker for increased exclusivity and visibility.    
  • Be active and engaging: Utilize online channels to communicate with other virtual event attendees. For example, use the chat box to ask questions to the other participants and get to know them better; and eventually introduce yourself and your brand. 

IN-PERSON EVENTS

  • Position yourself as a subject-matter expert: In addition to networking and logo placements, send representatives from your organization to host workshops and roundtable discussions in your target market to spark genuine conversation.   
  • Co-host events with access to your target audience: Working with non-competitive businesses that share your target audience but offer complementary products and services is a great way to boost your brand presence. Co-host events with companies like Management Events that have access to an executive network to strengthen your brand as a thought leader in the industry. 
 
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From CISO to Strategic Partner: How to Win Over the Board

As cybersecurity increasingly influences business decisions and tech investments, CISOs have evolved from technical experts to business leaders. Therefore, they deserve a seat at the table and a voice in driving business outcomes. Research supports this with Gartner predicting that 70% of boards will include one member with cybersecurity expertise by 2026. Some organizations are already ahead of the game with CISO board representation. According to a Heidrick & Struggles survey, the share of CISOs on corporate boards doubled from 14% in 2022 to 30% in 2023.  

In this article, we will explore the importance and benefits of having a CISO on the board, the challenges of finding and retaining board-ready CISOs, and practical tips for CISOs to communicate with the board effectively.  

 

WHY CISOS MUST BE ON THE BOARD 

 

SMOOTHER CYBERSECURITY-RELATED INVESTMENTS 

CISO involvement in business decisions also means a smoother buy-in process from the board, especially with cybersecurity-related investments. Encouragingly, CISO relationships with the board are improving, with 53% of directors communicating with security leaders regularly and 65% of board members seeing eye-to-eye with CISOs (Proofpoint). 

Findings from a recent IDC study state:  

  • 90% of executives reveal that CISOs are involved in important business innovation decisions 
  • 60% state that cybersecurity leaders attend board and management meetings 
  • 77% note that the personal influence of the CISO has increased 

According to Merritt Baer, CISO of Reco, a growing number of CISOs are reporting directly to CEOs. This closer relationship with business-driven C-levels allows CISOs to align security objectives with business goals, integrate cybersecurity into organizational culture, and most importantly, ensure budgets are optimized for the right cybersecurity initiatives. 

 

IMPROVED COMPLIANCE WITH TIGHTER REGULATIONS 

Boards now need to add a heavy item to their agenda – rising cybersecurity compliance and governance expectations.  

Following the July 2023 announcement by the U.S. Securities and Exchange Commission (SEC), U.S.-listed companies are now required to publicly disclose cyberattacks and share subsequent incident response plans within four business days. This proposal also includes a compulsory annual report on the boards’ cybersecurity knowledge and how they are informed about cybersecurity risks. This has set a global precedence, with similar regulations expected in Europe and APAC.  

Boards that don’t have a member with cybersecurity expertise will find themselves in a pickle. Worryingly, 98% of company directors do not have cybersecurity expertise (The Wall Street Journal). Additionally, Korn Ferry found that a pitiful 1.4% of companies have a current or former CISO on the board. Considering the rapidly developing regulatory landscape, CISO representation on the board is no longer performative – it’s a requirement.  

 

STRONGER CYBERSECURITY PRACTICES 

Cyberattacks and data breaches are costing businesses millions of dollars.  

For instance, data breaches cost USD4.45 million in 2023, up 15% from 2020, according to IBM’s Cost of a Data Breach Report 2023. Detection and escalation costs are now the highest portion of breach costs, jumping 42% since 2020. According to PwC, companies with more than USD10 billion report breaches of USD7.2 million while those companies with less than USD1 billion report USD1.9 million in damages.  

An organization’s reputation is on the line not only as a victim of a major cyberattack, but also if discovered that its CISO is underrepresented and underappreciated. Benjamin Frost, a Senior Client Partner in Korn Ferry says, “From a boardroom perspective, after a major data breach, if it’s suddenly discovered that your CISO is a fairly minor player within the organization, that’s not a good look from a litigation standpoint.”  

A common reason an organization fails to implement effective security practices is the lack of communication between the CISO and the executive board. CISOs also tend to overlook that the board has limited understanding of cybersecurity complexities. 

 

BOARDS MUST WORK HARDER TO RETAIN CISOS 

 

Being a CISO is stressful, and many of them don’t want to do it for long, leading to challenges with retention.  

A study by BlackFog found that almost 33% of CISOs are considering resigning, citing poor work-life balance and too much time spent on “firefighting” over meaningful work. It’s no surprise that the average tenure for a CISO is only 24 to 48 months (Coalfire).  

Therefore, organizations must motivate and build CISOs into business leaders and map their career trajectories more clearly. A Korn Ferry study reports that one in four security leaders may leave the industry by 2025, potentially due to limited professional advancement opportunities. Many CISOs aim to report directly to the CEO, and for good reason—80% of tech security leaders who do so receive the funding they need for security initiatives.  

Addressing this challenge requires more than technical skills. CISOs must have strong business acumen and political savvy to navigate cross-departmental dynamics, which does not come naturally for more technical CISOs. Robert Hansen, Managing Director of Grossman Ventures says, “Having looked at over 100 different CISOs, the ones that tend to do the best are business-centric CISOs. They tend to be the ones that are able to come to the table, work with the board and the executive team, and work across departments in a positive proactive manner.” 

 

HOW CISOS CAN SPEAK ‘BOARD’ LIKE A PRO 

It’s not enough that CISOs have a seat on the board, they must initiate important conversations surrounding cybersecurity strategies and break them down for the board in a digestible manner. Each board member should know: 

  • The company’s most valuable assets, where they are located, and how they are protected. 
  • What is at risk and the visibility into making the right investments and deploying resources to address those vulnerabilities. 
  • Whether the organization leverages continuous monitoring to achieve business goals and remain cyber resilient in the event of a breach. 
  • How cyberattacks impact the company’s bottom line. 
 

How can CISOs communicate the strategies above successfully? Dr. Aleksandr Yampolskiy, globally recognized cybersecurity innovator and Forbes contributor, advises security leaders to: 

  • Leverage cyber risk quantification to highlight the economic impact of cyber risks by translating potential financial impacts into clear numbers. Focus on key figures that aid board decision-making. For example, inform board members that a $300K investment in a product can prevent a $2 million revenue loss from website disruption. 
  • Conduct tabletop exercises that simulate cybersecurity incidents and define specific roles and responsibilities. These exercises help the board understand the organization’s incident response plan and identify gaps in an interactive manner. 
  • Bring in a cyber expert to bridge the communication gap between CISOs and the executive board. This expert can help security leaders develop effective strategies for addressing security challenges and reduce the pressure and responsibility on the CISO alone. 
 

Furthermore, LaLisha Hurt, a three-time CISO and public sector industry advisor at Splunk emphasizes researching each member’s background and their unique concerns. “Present security as a business enabler and not a cost center,” in addition to interjecting dollars and numbers wherever possible to describe the impact.   

 

In today’s complex cybercrime and compliance landscape, it’s crucial for CISOs to be heard by the board. They also must be provided with the necessary support and resources to perform effectively and avoid burnout. Security and compliance should not rest solely on the CISO’s shoulders; the board must share the responsibility. At the same time, CISOs need to enhance their business and communication skills to gain the board’s respect. Cyber resilience and culture start at the top, and CISOs need to lead the way. 

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5 Key Takeaways from Erik Qualman: Visionary Leadership in the Digital Age

Digital leaders are made, not born. In an era defined by rapid digital transformation, maintaining the balance between the offline and online worlds is crucial. While technology continues to evolve, human nature remains constant. Erik Qualman, #1 bestselling author and digital leadership expert, shares timeless leadership habits that keep you ahead of the competition and engaged with your team. Embrace these powerful habits to elevate yourself and your organization to digital leadership excellence. 

 

1. PRIORITIZE BOTH TODAY’S AND TOMORROW’S GOALS

 

Qualman outlines habits for future-proofing oneself and organizations in digital transformation, emphasizing the balance between human touch and technical expertise. He discusses the need to operate in both the “dirt” and “clouds” of transformation, balancing day-to-day work with long-term vision. “Thinking of the blue sky was seen as a waste of time but that’s shifted dramatically. It will continue to shift as we enter the quantum era because if you can dream it, you can do it. At the same time, you have to be down in the day-to-day. You have to live in the dirt and also in the clouds. That’s a big challenge today.” 

This mindset will stand the test of time as Qualman predicts leadership styles will change very little over the next 20 years. He emphasizes two things: taking action even when it’s difficult and always prioritizing people. “At your core, you need to know what you as an individual or organization are doing, and you have to take that action when you don’t want to or are afraid to. As a leader, it will always come down to the people. Leadership is not going to change too much at its core. The biggest change will be in the flexibility in the speed you’ll have to adjust.”  

 

2. OBSERVE AND SHARPEN THE STAMP TRAITS   

 

To stay resilient during the upcoming quantum era and digital decades, Qualman advises leaders to build the following STAMP characteristics:  

  • Simple: “Many of us fall into the trap of thinking about innovation or transformation as an additive thing that’s been put on our plates, when in fact, if we do it well, it’s the exact opposite. When you think about innovation, it goes back to the removal of friction. When you simplify things, which is very difficult to do, it allows you as an individual and organization to go further faster.” 
  • True: “You’ve got that compass for your True North and that’s a huge strength to have in this digital era. In the last 20 years, something new has sprung up, and it’s called a digital stamp.” Digital stamps are comprised of two things: a digital footprint and a digital shadow. Both individuals and organizations have a digital stamp. “It’s up to us to produce our best digital stamp and protect it because it’s the modern version of our reputation. The major difference is now it’s at speed and scale.” 
  • Act: “The number one reason people don’t take action is fear of failure. But we know better than most that failure is part of the process. It’s all about failing fast, failing forward, and failing better. It’s about embracing some of those mistakes and capitalizing on them. It’s what I call being flawesome.” Qualman emphasizes that it’s not perfection that makes people like a brand, but rather its perfectly flawed nature and willingness to learn from mistakes. 
  • Map: “You set your vision or goal and then you have a linear progression to go after that goal. Well, we can’t do that anymore in today’s world and we certainly aren’t built to do that in the quantum world that we’re stepping into. It’s about being firm in our destination and flexible in our path on how we get there.” Qualman shares an example of that flexibility, citing Steve Jobs’ journey at Apple and Pixar.  
  • People: “It’s all about people. Success doesn’t happen alone; you need to surround yourself with the right people both offline and online. When it comes to people, it’s all based on questions. The better questions we ask, the better our relationships can be.” 
 

3. AVOID MULTITASKING AT ALL COSTS  

 

According to Qualman, multitasking has a negative impact on productivity. He reveals that multitasking can decrease productivity by up to 40% in a team setting. Qualman proposes single-tasking as a solution to increase efficiency and happiness.  

“Ironically enough, when we’re multitasking, we’re getting less done because we’re not computers. We’re not parallel-processing things. What’s actually happening is our brains switch between tasks because we can’t handle two cognitive tasks at once.” 

 

4. INVOLVE EVERYONE FOR SUCCESSFUL DIGITAL INITIATIVES   

 

How can you transform abstract innovation into actionable digital transformation initiatives? Qualman emphasizes the importance of everyone being on the same page for initiatives to succeed. “When we work with organizations, I could get about 17 different answers on their initiative goals. That’s a significant problem at its core.” He discusses aligning multiple digital leaders for change, stressing the importance of regular check-ins and diverse opinions. He suggests asking team members questions like, “How would you rate our progress on this initiative, on a scale from one to ten?” 

 

5. TREAT EVERYONE FAIRLY, NOT THE SAME  

 

A common challenge many organizations face is the risk of losing top talent. Qualman emphasizes the shift toward treating each employee fairly, rather than equally. For instance, if you have the world’s top programmer who prefers remote work, you’re likely to accommodate that preference to retain them. Similarly, understanding that fairness, not uniformity, is crucial for employees based in the office. He stresses that this is a big leadership challenge to overcome. 

Qualman suggests frequent check-ins with team members to demonstrate care. “Just do more check-ins than ever before,” he advises. “Simply ask, ‘How are you doing, on a scale from one to ten?’ Then, over time, expand to ask about personal well-being and job satisfaction. Tracking these responses can reveal trends in morale and engagement.” 

“It’s about the combination of technology and people. Always lead with people.” 

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Antje König: Rethink Digitalization – What Is Really of Value Is Determined by Us as Human Beings

In this interview with Antje König, Managing Director and founder of HoValorem GmbH, Lean-Agile Leader, and Executive Coach, we explore the transformative power of digitalization, which should be driven by high human values. Antje König shares practical steps for managers who want to infuse their organizations with this human-centric approach, drawing on her wealth of experience. From rethinking process and requirements analysis and technology selection to fostering transparent communication, Antje offers valuable guidance for any organization that wants to put the human side of digitalization at the center. 

 
Antje König is a Managing Director, Lean-Agile Leader, Executive Coach and former CIO. She is dedicated to the development of people and organizations and has a passion for IT and optimizing the interaction between people and technology. After several leadership roles within ROSSMANN, she was appointed Managing Director at the beginning of 2022, responsible for IT, Organization & Processes and then Audit and Corporate Security. She founded and manages her own company, HoValorem GmbH, and is currently furthering her education in the fields of Business Psychology and Systemic Coaching. She delivers lectures at conferences, conducts workshops for executives, and assists companies in harnessing the potential of modern technologies. She places great emphasis on deploying technologies and methods that align with the tasks and processes at hand.
 

You are passionate about rethinking digitalization and putting value definition in the hands of the people. Can you give some practical steps that managers can take to incorporate this perspective into their digital transformation strategies?

Here, I suggest using the 10 principles of value-based engineering developed by Prof. Dr. Spiekermann at the University of Vienna as a foundation. Some of my key highlights are: 

  • Take responsibility for the entire system you aim to transform, encompassing the entire supply chain and IT ecosystem, along with any associated services. 
  • Personally and publicly uphold the values you stand for, demonstrating them through action. 
  • Practice effective stakeholder management, involving all relevant direct and indirect stakeholders in your initiatives, including users, employees, and organizations, and considering the impact on nature and the environment. 
  • Demonstrate the courage to oppose investments or partnerships that do not align with your core values or cannot guarantee adherence to essential principles such as transparency in human rights compliance, data protection, and ensuring fair wages. 

Additionally, focus not only on technical requirements but also on gathering input from all stakeholders. With this holistic approach, you can consider the human perspective rather than merely adopting the latest technology trends. Instead of starting directly with technology, begin by understanding the purpose behind your actions. This journey starts with identifying requirements and leads to the design of the desired product. 

It’s not merely about functionality or digitalization; it’s crucial to question why improvements are necessary. Are these enhancements beneficial for us as individuals? Do they contribute to a better quality of life? Our objective isn’t to be dominated by technology but to utilize it to enhance our work, products, or systems. This represents a shift in mindset towards digital transformation.  

 

Why is digitalization based on people and values important?

Because it’s about our future, we have to decide if we want to depend on technology or if we want to shape our own destiny, determining how we want to live.  

We’ve evolved from a time, I’m not sure when, perhaps during the onset of industrialization, when everything new was perceived as an improvement. However, today, not everything new or achievable necessarily represents progress. If we genuinely wish to shape our future and harness the potential of technology, we must actively engage in its creation. In recent years, we’ve allowed events to unfold without much consideration, leading to dependence. 

That’s why mindset is crucial. We must contemplate the reasons behind our actions: are we simply complying with regulations, or are we striving to innovate and improve? It would be preferable if regulations like the General Data Protection Regulation, the Supply Chain Act, the Digital Markets Act, and the EU AI Act were not solely relied upon as control-punishment mechanisms. Instead, they could serve more as avenues for knowledge transfer, providing advice, fostering ideas, and offering implementation support. 

It is important that the digital products, systems, services, etc. that we all build, use, and develop help us to preserve human freedom and privacy, contribute to respect, help to build and expand human knowledge, and support social interaction.  

 

With that perspective in mind, how can leaders effectively assess and select the right technologies for their organization’s digitalization journey?

Ask yourself: What do I want to improve? What is the task or goal I want to achieve? The first step is to figure this out, followed by an assessment of the organization’s current maturity level. For example, if the company still relies heavily on manual processes and methods, the first step would be to understand the processes and decide based on this where automation makes sense. In other words, where things can be done better by machines than by people. This can then be used to decide which type of digitalization is useful and helpful or best supports the task. So, the question is: do we digitalize conventionally either by introducing new software or by upgrading existing software, by traditional programming, or by using machine learning algorithms? 

When introducing new software or upgrades, we could, for example, consider introducing RPA, Copilot, or something similar. If I can describe my task comprehensively based on rules, I use classic programming. If the problem is too extensive and can no longer be comprehensively described in a rule-based way, as with a recipe, I try to describe what I need with the help of examples and machine learning algorithms. The basic prerequisite for a decision in favor of machine learning is a clearly formulated goal and it must be ensured that sufficient high-quality training data is available. 

The involvement of all stakeholders in the process is crucial for the acceptance of the digitalization project. This also includes the involvement of people who are critical of change, as this can only make a product better in the end. 

Even if not all stakeholders need to be involved in the final decision-making process, it is essential to include as many points of view as possible in order to develop the best possible product. Transparency and full participation are key to success. 

 

How can managers effectively communicate the value of digitalization initiatives to their employees, including those who may be sceptical or resistant to change?

In my experience, this works best with practical examples, projects, and processes from your own environment or company, because this is where there is the greatest connection and identification. In other words, in a very practical way, by grabbing relevant topics in the company and simply doing this at the beginning under experienced guidance, experiencing it, understanding it, and also involving the skeptics as stakeholders. 

 

What do you recommend managers do to measure the effectiveness of employee-led digitalization initiatives, particularly regarding quantifiable metrics and qualitative feedback?

I understand if this response may not fully address your concerns, particularly if you have a background in traditional business management. If I focus on value potential, then it’s not only about effectiveness but about good holistic solutions. The great technological developments, the flood of data, algorithms, and constantly growing computing power are having a fundamental impact on us as a society. We are talking about the impending loss of jobs, shifts in power structures, ecological effects, blurred boundaries between man and machine, and more. It’s not just about, for example, automating everything we can just because we can and it’s supposedly effective. It’s about using the advantages of technology in our favor and consciously putting a stop to the negative effects. We as human beings should take center stage again and not the return on investment or key figures on the degree of automation. 

 

What do you hope attendees will take away from your keynote at the Executive Day Germany?

One of the key messages I want to get across is the importance of a human-centric approach to our goals, putting real progress at the forefront and putting people at the center of digitalization efforts. I also believe in the importance of empowering individuals in order to create better understanding and, based on this, design better and more appropriate solutions. 

Finally, I would like to sensitize people to the fact that we should use technologies in such a way that they strengthen and support us and do not drive us into dependencies. I want us to be able to steer, use, and control current developments in our favor so that they can serve us humans and also contribute to our future well-being. 

 

*The interview answers have been edited for length and clarity. 

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Navigating the EU AI Act: Mitigate Risks and Seize Opportunities

The EU AI Act was finally passed on 9 December 2023, after a grueling 38-hour negotiation. In this exclusive interview with AI expert Walter Pasquarelli, learn about the groundbreaking developments following the EU AI Act’s announcement and key implications for European businesses. Pasquarelli also shares practical insights on how to get started with complying with the EU AI Act and how the Act will impact the progress of AI innovation in organizations.  

 

How does the EU AI Act adapt to the fast-paced changes in AI technology, and how does it categorize different AI applications based on risk levels?

When we started the conversation about an EU AI Act, it was before the launch of generative AI tools like ChatGPT, so we focused on a very different understanding of artificial intelligence. Some have argued that this used to be more of an approach towards products, but the launch of generative AI tools has transformed our understanding of the possibilities of AI. That meant the EU AI Act needed updating. I remember that in the final 38 hours, the amount of information from the trial log was incredible. I’m glad that we made it to where we are right now. 

It’s the world’s first comprehensive legislation that regulates how AI can be used in European markets and the European bloc. 

At its heart, the EU AI Act has four pillars, creating four risk buckets where different AI applications can fall – low risk that will face almost no regulatory action, medium risk, high risk, and prohibited risks at the top. The EU AI Act looks at the AI ecosystem in Europe and categorizes it into these four buckets. Based on that, companies developing tools will face various regulatory actions. Think about the four risk categories and the resulting regulations on products. 

One AI year passes in seconds. For example, the developments that have happened within the AI ecosystem and the technical possibilities that are out there. In two years, the whole environment has changed. We can now produce video generators that look hyper-realistic, and tools that can create entire marketing copy in hours. This will advance faster and faster. This creates a need for regulations that won’t be outdated in a year or two. Can the EU AI Act achieve this? Its broad approach positions it well, but it will certainly need more updates as technological breakthroughs happen. 

 

Will the EU AI Act’s broad approach addresss risks like bias?

The reason why it’s so broad is, on the one hand, the EU AI Act doesn’t seek to regulate AI products per se; it seeks to regulate the risk. It acknowledges that developing European legislation takes ages. The only way to tackle this is by producing something relatively broad. It’s different compared to China, which is very fast in creating regulations using a horizontal approach. They can do it because they have a different kind of legislative process. 

Now, when we look at specific provisions, how do we categorize these risks? The EU AI Act does provide a list of applications that are high-risk. For example, using AI tools for determining the creditworthiness of an individual and AI tools used by the police, which typically have shown elements of bias. If we look at issues such as money laundering, I think the EU will provide descriptions of what these applications are. Much of it will be judged by case law in the upcoming years, and keep in mind that there’s going to be an adaptation period where organizations can consult with the EU on that. 

 

Were AI experts consulted for the EU AI Act?

That’s the million-dollar question: how to involve experts in developing these legislations instead of policymakers. I think, particularly in the AI field, it’s even harder because AI skills are scarce in the government sector. When it comes to involving experts, what regulators and legislators did was conduct so-called stakeholder consultations, gathering opinions and feedback on the EU AI Act. However, only large organizations were able to provide feedback, as they have the necessary bandwidth and resources to formulate their policy positions and understand them. There has been criticism that there are insufficient experts from startups and small companies in drafting appropriate policies. 

 

Is the EU a frontrunner when it comes to AI legislation?

Yes, because it’s the main comprehensive regulation that is out there. China is very fast in regulating these tools, predominantly for their internal domestic reasons, such as a political agenda and economic prerogatives, but also simply because they want to compete internationally at the geopolitical stage, and AI is such an important element of their strategy. Europe has produced the most overarching legislation; it’s a fact of life, and it’s not going to change. It’s going to influence companies in the EU but also companies outside of the EU, which is known as the Brussels effect. The U.S. came up with its own Executive Order on AI, claiming to be the most sweeping act of legislation or policy there is. However, it’s just an executive order, an instruction by the President to various agencies to develop standards and regulations. There’s nothing concrete yet. 

 

How will the EU AI Act affect funding for AI initiatives?

The tech sector is a point of strategic advantage worldwide. In the U.S., legislation is laxer because it allows for wider experimentation by technology firms without worrying about visits from regulators. There are advantages, such as higher risk potential and risk appetite. But at the same time, many things can go wrong, especially for consumers. 

On the other hand, the EU wants to put consumer protection front and center. There is an advantage in having these regulations to produce predictability and legal certainty. If I want to invest in a company, I know what to expect in terms of regulatory risks. Another thing to consider is whether there is a direct link between regulation and venture capital. European investors are more reluctant to invest similar amounts of funds as their American counterparts, and it’s too early to say whether the EU AI Act will have a positive or negative effect on that. Legislation can support or harm it, but other elements might have an impact on VC funding. 

There are also arguments that legislation will slow down innovation because there’s less room for experimentation. Next, we’re trying to regulate a technology that hasn’t fully matured yet. That’s the challenge of regulating AI because it needs an evolutionary regulatory framework. After all, the technology is still developing and changing. It’s not like regulating nuclear energy, which is still high risk but won’t be much different in 10 years. It’s different for AI, especially in other regions with fully fragmented policy environments, different data governance regimes, and legislations between countries. 

The EU AI Act, although more stringent, has the potential to harmonize legislation across countries. 

 

How have lobbying groups affected the EU AI Act?

At the final stages of the EU AI Act development, a few countries, notably Germany, Italy, and France, said that this kind of legislation is not right for their markets. From what I know, this was a direct result of lobbying from companies saying, ‘No, don’t do this.’ But at the end of the day, they are still stuck with it. So, you could argue about how successful that has been. 

Among some of the larger technology firms, there is not a lot of positive thinking around the EU AI Act. That would imply to me that the lobbying efforts, which have been enormous with millions going into them, haven’t been particularly successful. There might have been certain provisions, minor ones that have been influenced. Surprisingly, most of the European Commission’s efforts to fend off lobbyists have been relatively waterproof. Public relations and public policy between the tech sector and the EU Commission are important because there are many provisions and interactions that need to happen to ensure the legislation matches the requirements of different sectors. 

So, lobbying is a dirty word, but it still needs to happen so that a harmonization process occurs. 

 

Who is responsible in enforcing the EU AI Act?

That is the Achilles’ heel of the EU AI Act. With their Data Protection Officers (DPO), particularly under the GDPR, this used to be a national effort whereby DPOs would enforce Pan-European legislation on a national level. The problem there is, and as I alluded to earlier, the scarcity of AI skills. You might have this big regulation with a huge overarching framework, but implementation will be difficult due to the skills shortage. That is going to be the make or break for the EU AI Act. My understanding from my sources is that even those responsible for developing the EU AI Act have an AI skills shortage. If we have a centralized European AI office, that’s possibly the better approach to combat the skills shortage.  

 

How can multinational companies handle legislation is different countries?

It depends on the strategy that you would prioritize.  

To ensure you’re not infringing any regulations, stick with the EU AI Act as a general regulatory yardstick, and you will be safe in most countries.  

This is because the Act has the strictest interpretation of AI products. It’s more difficult if you come from the U.S., where there is a different understanding of how data should be used and what is ethical or not. Some of my U.S. clients don’t want to deal with the GDPR. It’s easier if you go from Europe to the U.S., or Europe to other regions such as the Middle East. It’s harder if you go from the U.S. to the EU because that means you must adapt.  

 

What business leaders can do to stay ahead of the EU AI Act?

I would advise every company to join the AI Pact. It’s a voluntary association that helps you have a forum for exchange and a direct source of information. Embrace the idea; it’s there, and you have to accept it. 

Another thing to consider is to scan existing AI tools and products for issues. For example, what kinds of data do you use? Who’s your target audience? How have the models been trained? This assessment helps categorize your company’s AI products and determine where they fall into the four risk categories. However, extra considerations are needed for sensitive sectors such as healthcare and insurance, where data needs to be handled carefully. 

After the assessment, plan the right types of regulations and provisions to put in place. It’s not going to happen overnight; the EU AI Act won’t be enforced immediately. I also advise organizations of all sizes to read the EU AI Act; surprisingly, it’s accessible to read. Be aware of the risks of your own products. You want to understand the issues based on the EU AI Act that your products will face. 

Read the piece of legislation, reflect on your products, and I guarantee compliance with the EU AI Act will be achievable. 

 

*The interview answers have been edited for length and clarity