Ep 9  |  The Business Acumen Podcast

How to Sell Using Business Acumen: An NXP Case Study

Show Notes

Brent Barclay, Chief Operating Officer of Acumen Learning, joins host Stephen Cope to break down how salespeople and leaders can successfully sell into semiconductor giant NXP Semiconductors by using the principles from Business Acumen for Sales Success.

The conversation covers how to move past pitching product features and instead align solutions with NXP’s core strategic priorities. Brent shares practical insights on analyzing NXP's financial drivers, navigating the distinct priorities of finance, procurement, and engineering stakeholders, and leveraging modern AI tools to prepare high-impact meeting questions that position sellers as trusted business advisors.

Key Takeaways for Leaders

1.  Understanding the Customer's Macro Priorities 

Before pitching any solution, sellers must understand NXP’s core business model, where over half of their revenue comes from the automotive sector (software-defined vehicles and computer-on-wheels tech) and another large portion comes from industrial IoT and edge computing. Winning vendor partnerships requires aligning directly with NXP's top executive priorities: managing massive capital investments in global manufacturing facilities, mitigating inflationary costs, and navigating their heavy channel distribution network. 

2.  Tailoring Value Propositions to Stakeholder Lenses

Different stakeholders within NXP evaluate value through entirely different operational lenses. While finance leaders are strictly focused on expanding gross profit margins toward their 60% goal, procurement team members prioritize product safety, reliability, and guaranteed supply resiliency over pure cost reduction. Engineering leaders, meanwhile, care most about cutting-edge technology that solves major industry bottlenecks like power consumption and system cooling. 

3.  The Power of Confirming Assumptions

A major mistake sellers make is leading with assumptions or spouting off financial metrics to prove how smart they are. Instead, top performers conduct rigorous pre-meeting research to formulate thoughtful, clarifying questions that validate the buyer's pain points. By framing conversations around confirming strategic priorities, sellers transition from transactional vendors into trusted business partners. 

4.  Solving for the End Customer 

The ultimate key to becoming a trusted business advisor is looking beyond NXP itself and understanding the challenges of NXP's buyers—such as major automotive manufacturers like Ford, Tesla, and Volkswagen. When a seller demonstrates how their product helps NXP deliver faster, safer, and more reliable solutions to end-user automotive buyers, the conversation shifts from selling component features to driving strategic business outcomes. 

Featured Tools & Resources

• Business Acumen for Sales Success
  

  Explore Kevin Cope and Ben Cook's guide designed specifically for sales professionals looking to move beyond product pitching and connect with executive buyers as trusted business advisors.

• Acumen Intelligence AI Platform
  

  Fill out the waiting list form to get early access to Acumen Learning's specialized AI tool designed to automate company research, synthesize earnings calls, and generate strategic call plans for salespeople. 
  

• Monthly Earnings Call Breakdown Webinars
  Join Brent Barclay every month as he takes a live, real-time look at a major publicly traded company's earnings transcript to decode their financial strategy.
  

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How to Sell Using Business Acumen: An NXP Case Study

Host: Stephen H. Covey; Guests: Brent Barclay (COO of Acumen Learning)

Stephen (Host): 

Welcome back, everyone, to the Business Acumen Podcast. One of the central ideas in our book, Business Acumen for Sales Success, is that top salespeople don't begin with their product. They begin by understanding their customer's business. They understand how the company makes money, what executives are focused on, and the challenges leaders are trying to solve, and then they connect their solutions to those business priorities.

Today, we're going to apply that exact process we talk about in our book to another real company. Brent Barclay recently led our earnings call debrief on NXP Semiconductors, and rather than simply discussing the earnings call, we're going to answer a practical question: If you were trying to sell into NXP today, what would you need to know?

So, Brent, thanks for joining me today to talk about NXP.

Brent Barclay:

Always good to be with you, Stephen. I'm excited to do a little deeper dive on how to listen to an earnings call and get a bit more specific about it, so I'm looking forward to this.

Stephen:

Awesome. Let me start on the first section around understanding the business of NXP. Before a seller talks about their solution, Business Acumen for Sales Success teaches that they first need to understand the customer's business. That seems obvious, but it is not always the first thing salespeople will do. Based on NXP's latest earnings call that you just reviewed, what does a seller need to understand about NXP today?

Brent Barclay:

To start, there are the basics: understanding who they are and what spaces they play in. With everything going on in automation, AI, and related fields, they have become a big player. In the semiconductor space, there are variations in what companies manufacture.

A little history on NXP: It's a Netherlands-based company with over 70 years of experience, typically generating around $14 billion to $15 billion in revenue a year. They are very focused on the automotive industry. As you think about electrification, automation, and the digitization of vehicles, they are a key player. They often use the term "software-defined vehicles," which basically means our vehicles today are computers on wheels. In fact, 56% of their revenue comes specifically from the automotive industry.

Now, computers have been in vehicles for a long time—even a 10-year-old car has computers in it. But when you start looking at new technology and self-driving capabilities—like a Tesla or Aptiv, which manufactures self-driving capabilities—that requires a lot more computing power. So, understanding who they are and what they do is vitally important. They are very big in automotive, with about 55% or 56% of their business coming from that sector.

They also focus on industrial and IoT—the Internet of Things—which accounts for about 38% of their business. A real part of that focus is getting technology to "the edge"—the idea of robotics and automation. Think about the healthcare space and how technology is changing the way healthcare providers deliver solutions. So, understanding where they play and what they're focused on is essential.

If you look a little deeper, what are some of their key areas of focus?

Number one is supply resiliency. As demand for their technology continues to grow, they must ensure they can meet that demand. Significant growth opportunities and capital expenditures are going into manufacturing facilities in Singapore and Germany.

Managing costs. As demand for your products increases, costs increase as well. They are focused on inflationary pressures and how inflation affects their ability to provide products.

Channel sales. A big part of how they sell their products is through distribution channels—about 57% of their business is sold through these channels. Understanding that they have a slightly different sales model, and knowing how to connect with those channels to help drive their success, is critical.

It's a great company with a lot of demand for what they're doing. On top of automotive and industrial, their remaining focus is mobility—think of mobile phones, where they have technology driving technological capabilities, alongside generative AI developments. It's a huge company doing great things, but that is a high-level overview of the basics you'd want to understand.

Stephen:

That's really helpful. As you reviewed the earnings call, what were some of the challenges their executives spent the most time discussing?

Brent Barclay:

Some of the things we touched on connect directly with this. The number one challenge is the access and ability to produce and manufacture their products. That's the main focus right now. Demand is high, so the question is: How do I keep up with supply needs to meet that demand? As technological advances come in—particularly around AI—how can we adapt our products to take advantage of those innovations?

There is a huge amount of capital spend in two major projects. One is in Singapore, which is a joint venture fabrication facility to produce a long-term wafer supply for them. They are also building in Germany. We're talking about tens of billions of dollars being invested.

In order to keep those facilities running economically, they are making these major investments under the assumption that they will generate roughly $14 billion a year in demand volume. They are trying to keep their manufacturing utilization at about 80% to 90%. To do that, they need that $14 billion in volume, which they discussed on the call. They see the growth opportunity and believe that level of demand will happen, but scaling up to provide for that high demand is a major focus.

Obviously, inflationary costs are another factor—whether it's the cost of developing their current suite of offerings or future inflationary constraints impacting their economics. They've done several things to become more efficient and lower costs, but they are also passing some of those costs along. Across the semiconductor industry, high demand is causing prices to rise, and a lot of that flows through to computer and automotive manufacturers.

So, managing the supply side and managing the cost side have been their key focus areas.

Stephen:

Where does NXP see its biggest growth opportunities over the next several years?

Brent Barclay:

Number one is automotive. Since it represents 56% of their revenue, they see massive opportunities to continue providing products and resources there.

The second major area is newer: they generated about $200 million in revenue in data center opportunities. Most people think of NXP as a semiconductor producer, but in the data center space, they are focused on what's called the "control plane". Rather than producing CPUs and GPUs, their technology focuses on systems that drive cooling, manage power, and ensure the facility runs efficiently. That is a big opportunity, and they expect to generate about $500 million in revenue around that this year. So AI infrastructure is a major growth driver for them.

The third area is getting technology to the edge. Right now, most of what we do goes up and down to the cloud. The idea here is putting the technology directly at the edge—inside a vehicle, an appliance, or industrial equipment like robotics and automation.

For example, a mining company I work with automated all their trucks to drive inside the mine. You can't have that technology constantly routing back and forth to the cloud; it has to make decisions and adapt immediately. Bringing cutting-edge AI technology to actual equipment at the edge is a real focus for NXP. Whether through cell phones or vehicles, getting that technology directly into the products themselves is a major opportunity.

Stephen:

That's great. After someone understands the business, the next section we break down in our book is analyzing the five business drivers: cash, profit, assets, growth, and people. When you look at NXP today, Brent, which of those drivers stand out the most?

Brent Barclay:

It's funny you say that because on the day we did the earnings call debrief, they actually released their Q2 information. I went back and reviewed it, and the drivers remain the same: growth and profitability.

From a growth perspective, think of it in terms of supply and demand. We are seeing continued demand for technology and automation everywhere, from the Internet of Things down to mobile phones. Their challenge is: Can we produce enough to meet the market's demand? A lot of their narrative is focused not just on growing today, but on positioning for the future through those massive investments in Singapore and Europe.

Not only are they focused on growth in production assets, but also top-line revenue and profitability growth. Top-line revenue was up 19% year-over-year in Q2, which was about the same in Q1. For the first half of the year, their margins grew, reaching a 58% gross profit margin. That's very strong compared to the S&P 500 average of 40% to 45%, and they are targeting 60%+.

On profitability, there are two levers: growing revenue through volume or pricing, and cost management. A major focus for NXP is driving internal efficiencies to produce more at a lower cost.

I would also throw the People driver in there. When we talk about people, we mean external customers as well as internal talent. In hyper-growth phases, it can be hard to assemble the right team to execute and meet future demand. They discussed both having the right internal team on board and meeting the needs of external customers across all their industries.

Stephen:

How does looking at a company through the lens of the five business drivers help a salesperson prioritize their conversations?

Brent Barclay:

It simplifies things. When reading an earnings call or preparing a call plan, there is a mountain of data. Having a simple framework—cash, profit, assets, growth, and people—gives you a lens to synthesize that data. What are they saying about profitability? What are their goals around growth? Where are they trying to go, and how can I help?

You don't walk in and pitch the five-driver framework to the client. Instead, you use it internally to organize information. If they are focused on profitability, you want to know whether that focus is on the pricing side or the cost side. If they are focused on cost management, you can tailor your pitch: "Here is how our product increases efficiency by X percent to drive the cost reduction you are looking for."

In my opinion, the more you understand about their business, the more you move from a traditional salesperson to a trusted partner. The five-driver model makes synthesizing that data much easier.

Stephen:

After understanding the business and analyzing the five drivers, the next section we cover is understanding the buyer. Different stakeholders view the business through different lenses. If you are selling into NXP, who are the key stakeholders, and what are they likely to care about?

Brent Barclay: I break it down into three main groups:

Finance and Accounting hold the checkbook. They care about cost structure, direct costs, and driving margins. (Procurement fits closely here as well.)

While procurement care about cost, they also put safety and supply resiliency above pure cost reduction. NXP sells safety-critical systems for automotive. If a component goes into a vehicle's braking system, it must be safe and reliable. They need suppliers who can guarantee reliable inventory delivery and proven product consistency.

Innovative engineering teams care about whether your product meets cutting-edge technological demands and helps them innovate. Right now, with AI, two massive levers are cooling and power consumption. Engineers want to know how your technology mitigates power constraints and streamlines what they are trying to accomplish.

If you're selling to Finance, your pitch is about how your solution increases gross margin toward their 60% goal by driving revenue or managing costs. For Procurement, it's about supply resiliency, safety, and reliability. For Engineering, it's about innovation, power efficiency, and cooling capabilities.

Stephen:

What questions should a salesperson ask to better understand each stakeholder's priorities, and what prep should they do beforehand?

Brent Barclay:

AI tools are a tremendous resource for prep. You can use tools like ChatGPT, Gemini, Claude, or our upcoming Acumen AI to synthesize company data.

When preparing, get clear on their key strategic pillars so you don't get lost in micro-details. For instance, NXP focuses heavily on customer adoption, margin expansion, and production efficiency.

Work backward from their strategic pillars to formulate questions. For example, on customer adoption, you might ask a procurement or engineering leader: "Since your automotive customers are trying to build smarter, software-driven products, what are the biggest bottlenecks they face in getting those products to market quickly?"

That question shows you understand NXP's end customers. Once they explain their bottlenecks, you can connect your solution directly to solving them.

If supply resiliency is the topic, you can ask about their inventory needs and then explain: "Here is how our manufacturing footprint in Singapore, Europe, and North America ensures we can reliably meet your demand quotas."

The goal is to get clear on their strategic objectives, ask questions that uncover their specific bottlenecks, and then show how your product drives their desired outcomes.

Stephen:

How would you coach a salesperson to connect their solution to NXP's priorities and align their value proposition?

Brent Barclay:

It comes down to approaching the meeting as a trusted advisor rather than pitching immediately.

A common trap for salespeople is doing research and then making assumptions or trying to prove how smart they are by spouting off metrics. I don't recommend walking in and saying, "I noticed your revenue is up 19%." Instead, use your research to formulate thoughtful, clarifying questions.

Confirm your assumptions before making a proposal. You might say: "I know customer adoption and gross margin expansion are key initiatives for NXP. From a procurement perspective, how are you balancing cost management with ensuring supply availability for your automotive buyers?"

Once they explain their pain points, you can say: "Based on what you've shared, here is how our technology and supply chain model can help you hit those objectives."

Additionally, remember that 57% of NXP's business goes through distributors. If you understand their distribution ecosystem, you can explain how your delivery process integrates smoothly with their distributors.

Be customer-focused, ask clarifying questions to confirm your assumptions, and frame your value proposition around solving their specific operational and financial problems.

Stephen: So, rather than leading with product features, you do your prep, ask questions to confirm your understanding, and ensure your insights resonate before bringing up product capabilities. Is that right?

Brent Barclay:

Exactly—that's a home run. When sellers make immediate assumptions about a business owner's problems, it derails the conversation.

If it's a follow-up meeting, I always recommend using a "reframe" at the start: "Last time we talked, here is what I understood your main challenges to be. For today's meeting, I planned to cover these three items. Is there anything else we should address?"

That reframe aligns both parties. Once you confirm their priorities, you can transition smoothly: "Based on what you've shared, here are two or three ways our solution can help." At that point, you aren't just a vendor pitching features; you are a trusted partner speaking their language.

Stephen: How do you connect your offering directly to business outcomes, and what mistakes should sellers avoid?

Brent Barclay:

The biggest mistake is making unverified assumptions. Always confirm or clarify instead of leading with assumptions.

To connect your offering to outcomes, tie it directly to their financial levers. If they want margin expansion, show how your solution either increases their top-line pricing power or reduces their direct cost of goods sold. If you are talking to Engineering, ask how capital efficiency limits their R&D, and demonstrate how your product helps them get innovative offerings to market faster without ballooning development costs.

When you ask questions that tie back to their core drivers—cash, profit, assets, growth, and people—you can position your product as the vehicle that delivers their desired business outcome.

Stephen: If you were sitting across the table from an NXP executive, what would a trusted business advisor sound like?

Brent Barclay:

A trusted advisor is entirely focused on them, not on themselves. They talk far less about features, advantages, and benefits until it is technically necessary.

In my view, a sale is the outcome of a trusted relationship, not the starting point. A trusted advisor sounds like an expert colleague who understands NXP's business model and wants to help them succeed.

Instead of asking, "How can I sell more products to NXP?" ask, "How can I help NXP drive success for their automotive customers like Ford, Tesla, or Volkswagen?" If you research NXP's top automotive buyers and understand their challenges, you can help NXP deliver better solutions to those end customers. At that point, you are no longer a salesperson—you are an indispensable advisor.

Stephen:

This has been a fantastic case study, Brent. To wrap up: If someone listening has a meeting with NXP this week, what is the single most important thing they should do before walking into that room?

Brent Barclay:

Preparation. Go in with a plan, understand their key strategic pillars, and prepare strong, open-ended questions. Determine where you are in the sales process, where you want to go on that call, and what questions will get you to the next level.

Take the time to review their latest earnings call, understand who you are speaking with, and come prepared with thoughtful questions. Preparation is the number one differentiator.

Stephen:

Brent, thanks again for joining us, and thanks to everyone for listening.

If you'd like to get better at understanding your customer's business and connecting your solutions to what leaders care about, check out our book, Business Acumen for Sales Success, and join our monthly earnings call webinars. We will also be releasing our Acumen Intelligence AI platform soon, which automates this exact process for salespeople. We'll include links in the show notes for those resources and the waitlist.

Thanks everyone for listening, and we'll see you next time on the Business Acumen Podcast!