Tag Archives: sales management

Sales Team Effectiveness Assessments

1 Oct

“I need your opinion of my sales organization overall with a development plan…oh yeah…I need it next week.”

I have heard this before…and it spells trouble.  Four out of five times it means trouble for me.  Can I assess a sales organization in a week?  Yes, but your satisfaction with the output will be in doubt…and that’s how I can get into trouble.

I always work from a copyrighted formula;

Sales Results = (Sales Skill + Sales Will) X (Execution + Leadership)

Each of these variables has 8 drivers.

Sales Skills (primarily B2B)

  1. Prospecting Skills
  2. Presenting Skills
  3. Probing Skills
  4. Listening Skills
  5. Closing Skills
  6. Pipeline Management Skills
  7. Product Knowledge
  8. Industry Awareness

Sales Will

  1. Recruitment Process
  2. High Performance Focus
  3. Target Compensation @ Plan
  4. Peer Recognition
  5. Family & Friend Recognition
  6. Tactical Sales Plans Aligned with Strategy
  7. Incentive Plan Clarity
  8. Effective Field Coaching

Execution

  1. Goal Clarity
  2. Tactical Prescription
  3. Performance Metrics
  4. Defined Performance Management Process
  5. Joint Call Activity Levels
  6. Readiness Assessment
  7. Coaching & Counseling
  8. Culture

Leadership

  1. Strategy Development
  2. Strategy Communication
  3. Tactical Definition & Measurement
  4. Readiness Planning
  5. Sales Participation
  6. Performance Management Process Execution
  7. Leadership Style
  8. Recognition & Communication

These are the 32 drivers of sales results.  Based on your industry and sales channels they will vary somewhat.

You start the assessment process with the understanding that there is a limit to the organizations resources and ability to execute change.  With this in mind, the key is to find the largest gaps and then to formulate a “do-able” organizational development plan that will begin to close those gaps.

I begin my assessments by examining the drivers at a high level, identifying the major gaps and then drilling down.  This saves me time and saves my clients significant money.  Once the four to six gaps are identified I review and discuss them with the assessment sponsors to find those gaps where the solutions can be bundled into a singular development initiative.  Again, this approach is designed to save money, time and ensure execution.

Why bother with an assessment?  It saves time, money and ensures sales growth.  Why spend money on negotiation training if your issues stem from a lack of field coaching?  Why waste time perfecting a lead generation program when your individual contributors are handicapped in their search for client pain?  Why would you continue to give up margins just because your sales pipeline is anemic?  Why continue to throw good money into an incentive plan when your recruiting process keeps bringing in candidates with low skill and low sales will?

Great organizations have a common approach to problem solving.  Assess, plan and execute. 

If you want to grow sales, you’re best approach is to start at the beginning.

When Sales Promotions Don’t Work Out

10 Sep

So often you hear of sales people failing to make the grade after being promoted.  Why is this?  Are sales people simply not cut out for more senior positions?  Are the skills that make a sales rep. shine no longer valid as the promotions come?

Over the years I have witnessed sales people struggle mightily after promotions.  Usually they don’t fail, but they are not able to make the same outstanding contributions as a manager as they did as a sole contributor.  To understand this you should first think through how the roles change from sales rep. to field sales manager, to regional Director/VP.

Sales Representatives – The core them of any sales position is making the sale.  While each industry commands different responsibilities and practices, the primary focus is common to all – to successfully complete the sales.  This includes;

  • Making initial contact with prospects, qualifying prospects.
  • Meeting with prospects to identify, understand and seek concurrence of prospect needs AND the implications of not addressing those needs.
  • Maintaining continuous communication with prospects throughout their buying process, while building a coaching network.
  • Continuing to pursue the sale in the face of rigorous resistance.
  • Identifying & communicating the benefits of addressing the prospect’s needs to decision makers and key influencers.
  • Closing the sale.

So along comes the first promotion…field sales manager.  So the refined skills that made the sales rep. a stand out are a good basis to work from but look how the job changes.

Field Sales Manager – The theme of this position is driving the team to sell.  The sales manager cannot personally ensure goal attainment, they must reach goals through the efforts of others.  The first level sales manager is a player coach.  The best usually invest about 30% of their time helping close the most valuable prospects, and then invest 70% of their efforts ensuring that the team results are maximized.  This job is very complex.  It is most natural for a newly promoted sales person to mismanage their time.  They may very well spend 70% of their time helping close business and only 30% of their time developing the team.  This will most often result in a sales plateau.  So in addition to the skills listed for sales rep the sales manager has additional skills required,

  • Concern for Order – Like Stephen Covey documents in his 7 Habits book it is very easy for the manager to run from task to task trying to meet all due dates while investing what little time is left helping close business.  An effective manager will arrange their calendar to ensure they are spending time with all team members.  Maybe not equally the team results will drive more success than the manager’s personal sales contribution.
  • Coaching and developing others – This is more difficult than it sounds.  Many of the skills that made them successful as a sales rep have moved from conscious efforts to subconscious habits.  It is a difficult transition to move from doing to helping others do.
  • Creating & maintaining effective work teams.  This includes internal team members as well as collaborating with other symbiotic departments.

Okay, let’s say our candidate is an incredibly entrepreneurial and is able to make the transition from rep to sales manager.  What’s next?  Regional Director/VP.

Regional Director/VP – The core theme changes from driving a team to sell, to managing a larger organization.  The job has taken a turn towards analytical thinking, matching resources to potential, creating efficient infrastructures of materials and organizational resources to support the regional sales efforts.  The RVP does not create the sales strategy, but uses their skills to ensure execution of the plan.  The RVP must communicate upwards to clearly and honestly keep senior management appraised on forecasts, product and customer input.  Additionally the entire region looks to this person as the Company’s idea of how they define leadership.

  • Analytical Thinking – The RVP must be able to rise above the level of any one particular customer or prospect.  They must look at the sales pipeline as an aggregate indication of the effectiveness of all teams.  They must be able to translate pipeline analytics into action plans including training, product/service redefinition and as a tool to coach & develop their sales managers.
  • Using Business Expertise – By now the successful incumbent has accumulated enough industry, product and customer experience to understand not only what the sales pipeline looks like…but is able to anticipate what it should look like and is able to formulate tactical plans to guide the regional to sales plan attainment.
  • Enabling the team – The incumbent is accountable to communicate to senior management exactly what is needed in order to make plan.  When sales teams face obstacles they rely on the RVP to identify & acquire resources to help them overcome these roadblocks.
  • Training and developing people – The RVP must make themselves accountable not just to their direct report’s development, but for every member of the regional sales team.  Keeping up routine inspection of individual, team and regional pipelines can help the RVP see trends.

So why do people struggle as they move along this track?  Well, I’ve worked within some very large sales organizations and made it to top sales officer.  From my perspective the failure of people falls on the shoulders of their employer.  Field sales is one of the only departments where you sit miles away from your boss.  You do not get the daily coaching sessions.  The accidental conversations that take place in the hallways simply never occur in field sales.  To make matters worse I have not seen leadership training offered to newly promoted sales managers.  There are not training courses on how to interpret the sales pipeline.  How to create developmental action plans around the analytics of the pipeline.  We do a disservice to the organizations most valuable commodity…people.  Not only do we leave the newly promoted manager swinging in the wind…but we withhold excellent leadership from the sales people who depend upon their manager to help them succeed.

I know this is ending up in a rant…but if you want different results perhaps you need to do things differently.

What Is A Quality Sales Organization?

21 May

When networking with other sales reps early in my career I began to see correlations between the various sales organizations and the type of sales people they attracted & retained.  It was very interesting to hear people describe their sales cultures, compensation plans, management’s leadership style and the employer’s focus on client satisfaction.  Over time I was promoted several levels, each new role required a relocation to another part of the country.  Through networking I continued to accumulate a diverse collection of perspectives from sales managers from a variety of industries.

My career journey led me to NYC leading a National Account group.  This was more of a business development role leading a team of 8 people and managing the relationships with a dozen accounts that generated $1.3 Billion in annual sales.  This was the capper to my experience as business development forces you to consider client satisfaction, a strong interaction with operations, client profitability and new sales.  I won’t bore you with the details but we did create a very interesting client service agreement.  Each quarter we contracted four goals with our clients.   Two goals came from the client and usually included one customer service goal and one goal that would help our contact attain their major job objectives.  We also then had one goal that the Account Director was able to set that would help them achieve greater account profitability and one sales goal (like an introduction to a sister division) that would be validated only after the two client goals were met.  This was a great tool that minimize attrition and creating a very positive climate for cross selling & account expansion.  After two years this portfolio grew to $3 Billion annually and we did not lose any clients.

My final career destination was to build a new sales organization within an existing Fortune 500 company.  I poured everything I learned into the culture of that sales organization and it paid off royally.  In four short years we moved from non-existant to an organization acquiring over 5,000 new clients annually, producing an incremental $180MM in sales with each new annual batch of clients.  The NPV of these clients was nearly double that of any other client portfolio.

So here is what I learned about sales cultures and what makes a “Quality Sales Culture”. 

There are three parties (constituencies) that are affected by the culture you build.

  1. Clients – Your focus on making reasonable commitments and then driving over-delivery will payoff in a huge way.  The Net Present Value of your client base is driven by retention rates and gross profitability.  You can easily model the value of high customer satisfaction by raising your client retention rate by 5% and improving gross margins by 1%.  This is the value of ensuring that your culture demands a high customer satisfaction rate.  I dumbed down these numbers.  You can acheive much better benchmarks if drive customer satisfaction into your sales culture.  It will not only make them believers but their closing ratio’s will be dramatically better.
  2. Shareholders – This is the easiest constituency to satisfy or dissatisfy.  If your Business Development Efforts focus on customer service delivery within a cross selling framework, and your sales efforts are highly disciplined around skill, will, execution and leaderhip it is nearly impossible to disappoint investors in your company.  I do believe that investors have now learned that mid term results trump short term returns.
  3. Employees – Why bother?  Because clients and shareholders will never get the best possible outcomes if your employees are distracted.  Sales people and account managers should get all the direction & support they need to create healthy, profitable client relationships.  People who are distracted by poor leadership, non-existent training or poor customer service attitudes will never be able to deliver to their potential.

So what’s the conclusion?  Senior Leaders must balance their focus.  I know that in this economy the shareholder will get more attention than employees but in the end that’s a bad tasting medicine that we know is good for us.  But you still need to balance your focus reasonably.  Focus 80% on shareholders, 10% on clients and 10% on employees is a losing tactic.  When the economy begins to improve you will have a lot of issues to fix and you may miss out in that growth.

Assuming you have some employee goodwill on your asset sheet, in today’s economy I would recommend a focus of 45% on shareholders, 35% clients and 20% employees.  I think you can get through the next 18 months providing you keep the communication level high so employees know they’re valued but investments in them are on the back burner for the short term.

In the longer term my focus would be 40% shareholder, 30% clients and 30% employees.

If you are interested in more discussion on this topic please leave a comment with the specifics of your interest.

Sales Cultures, Is Yours Heart Healthy?

7 May

I know you’ve heard someone say, “We have a high performance culture here at Amalgamated.  We have high expectations of all our people!”  So, if you’ve been a member of a larger national sales organization how often did the term “high performance culture” turn out to have any benefit for you as a person in the trenches?  Did the leadership team have high expectations of themselves on creating a sales culture that was not only good for shareholders, but also good for clients and employees?

Sorry for a little culture slamming, and I won’t mention any companies, but here’s the facts m’am.

“We have a high performance culture” usually means we are going to expect a lot from you.  Okay, fine.  But what can I expect from you in return?  Can I expect a vibrant lead generation program?  Can I expect to have a manager in my corner who will routinely carve time out of their schedule to help me succeed?  Instead of telling me that I’m not doing enough can you tell me how to do more?  Can I expect to have up-to-date sales collateral so my presentations help prospects visualize the benefits of our programs?  When I bust my hump to over deliver can I enjoy even better rewards next year or will I bask in the sunlight with dramatically increased goals coupled with dramatically lower commissions?  In other words, will you invest as much in me as I am being asked to invest in you?

First I would like to propose a definition of what an organizational culture is;  The quality that arises in a person by virtue of belonging to a group.  That person’s behavior begins to reflect what they have learned through training and observing others in that group.  With time, the members form agreement with what the group prizes as excellence.  So with my definition of culture let me disclose something else.  I am a huge believer in building a culture that benefits clients, stakeholders and employees equally.  I believe strongly that satisfied employees will deliver a superior service, which customers will be willing to pay for…and stakeholders like that outcome.

So where do you begin to build a sales culture that will help develop a sustainable world class sales organization?  Essentially there are four drivers;

  • Sales Effectiveness – A bundle of skills that arm each sales person & account manager with the tools they need to effectively help prospects navigate through a buying process and end up with needs that are satisfied.  This isn’t just about holding people accountable to having & using these skills.  It’s really about hiring people with high potential and then provided them with the training they need.  This is much more than simply enrolling people in training.  This is field managers who are experts in all the skill areas, and providing them the training they need to be excellent coaches in the field.
  • Reward & Recognition – There is a lot more to reward & recognition than a compensation plan & an annual outing.  The compensation plan should produce a target income at sales goal attainment.  Your peak performers should earn two or three times what your average performers earn.  Why?  Because sales people are great understudies and peak performers are the people you want them to imitate.  Management reports should be shared throughout the organization and include not just the top performers but also the strugglers.  The only people that should not make the standing report should be untenured sales people.  Additionally there are all kinds of recognition vehicles formed around peer recognition, Sr. Management recognition and yes, family and friend recognition.  For those recognized this affirms their contributions.  For those that did not make the grade it affirms what the organization values.
  • Execution – Do all members of the team understand the sales strategy?  Good communication is the key and good communication is not solely reliant upon the message…good communication is driven by understanding.  Can people recite a summary of what the strategy is?  Do they understand the role they play in the execution of that strategy?  Has there been a set of metrics devised that will benchmark how well the organization is performing and how well each team member is doing?
  • Field Leadership – The Rosetta Stone of the quality of yoursales culture is the company’s investment in first level field sales managers.  If you’re expecting for your army of revenue generators to win battles you’re going to have to invest in field support.  Do your field generals understand their priorities?  How should they be investing their time & energy?  Is it 50% making sales calls, 30% admin., 15% forecasting and 15% coaching & developing people?  If this is the reality of how people are spending their time your organization may never get any better than it is today.  I have one question for CEOs and top Sales Officers.  How many leadership training courses have you delivered to your field generals in the last 5 years?  Don’t hold them accountable for moving from a peak performing sales person to an excellent management leader.  That’s your job.

Is a heart healthy culture worth the investment?  Only if you want the best sales people in your industry to aspire to work for your company. 

The sales culture that develops in your organization cannot be controlled, but you can influence it dramatically.  Your culture will be known for a theme, for it’s character, for it’s composure, for it’s courage and yes…for it’s care for people.  You must deliver results, but how you go about delivering those results will define your culture.

“How’s It Going?”

29 Apr

Okay, so the big-big boss is in town and asks how it’s going.  I know it’s tempting to tell her how well your son is doing on the little league team…but fight off that temptation.  I’m only saying that your boss may be a nice woman, but let’s put business first and then brag about the home run later.

A good top sales boss wants to know five things;

  1. Results – past quarter, last month?
  2. Status – how do the future results look?
  3. Focus – what are you concentrating on?
  4. Needs – how can I help you succeed?
  5. Other than 1-4, how’s it going?

So when you’re asked the question, have the answer ready.  Wait a minute.  When will I be asked the question?  How will I know when to have the answer prepared?

Well, let me go through the answer to the original question then you can decide.  Is this a question I should wait for the big boss to ask, or is this a question I should ask myself everyday?

CBR003315

Think of yourself as a manufacturing plant.  Raw material goes in the front door, workers convert the raw materials into components, assemble the components and poof, finished products roll out the back door.  Every plant has a general manager whose job it is to continuously make sure that raw materials arrive on time, that the plant is operating at capacity, and that the quality and quantity of the products rolling out the back door meet expectation.  In our profession the raw materials are prospects, the components are presentations & proposals, and the end products are contracts or sales.  Guess who the general manager is?

So whether you’re answering the question for yourself or the big boss doesn’t really matter, the answer should be the same.

Results – How many sales did you close last quarter?  Were they the right size?  Are you happy with those results?  Was last month better?

Status – This is really a question of sales pipeline.  Is your “real” pipeline bursting at the seams or is it chock full of “pipe dreams”?  How many prospects do you really have and where in the sales cycle do they reside?  How many are closeable in the next 30 days?  I hope your pipeline is healthy because this is going to become your commission check over the next several months.  If you have to admit to yourself that your pipeline is really shaky, then what are you going to do about it?

Focus – This is the “what are you going to do about it”.  You are the general manager of your sales territory.  If there’s a pending problem then your job it to fix it before it gets worse.  If your pipeline of prospects looks good on paper but you know that most of those prospects are on life support then it’s up to you to flush out the real prospects, and put the others on hold.  If your real pipeline is anemic you’re going to have to rightsize your hot prospect list and develop an action plan to bring it back into a healthy state.  If you’re not sure what that action plan should be then you’ll have to muster up the courage to ask for help. 

Needs – Okay your results have been acceptable but not to your expectation, you’ve gone through your pipeline and admitted that of those 50 prospects only 15 are healthy.  You’ve decided that you’re going to commit yourself to adding another 10prospects this month, while moving the 15 forward at least one step in the sales cycle.  Fantastic!  But now is not the time to be a hero.  Ask for help.  What is the one tool that would help ensure the success of your action plan?  Is it an improved presentation?  Is it better sales collatera material?  Lead generation?  The bigger question is, when I ask for help will I be considered a complainer?  I will tell you in no uncertain terms (as an experienced big-big), that if you have given me short concise answers to results, status and focus…I’m am going to listen very closely to what you need.  And when I get back to my office I’m going to make sure you get it.

So as a former big-big here is what I always was hoping for.  I arrive in town, sit down with the regional sales director, go over results.  Tonight we’re having a team dinner.  Since I haven’t met you before I sit down next to you at the table.  After letting everyone settle in the RSD gives me the big intro, then I give everyone my business overview and reaffirm the top 3 iniatives.  I answer a few questions then it’s time to place our orders.  While we’re waiting for our salads I introduce myself to you and ask how’s it going?  What are you going to say?  Here’s the worlds most perfect answer (please edit according to your territory).

“Thanks for asking Greg.  Last quarter was okay, last month was even better (you may want to add in a FEW numbers).  But I scrubbed my pipeline and I need to add no less than 10 more good prospects if I’m going to reach my goals…I’m willing to do all the hard work to get these prospects into my pipeline but I need a little help from you…”  WOW!  Someone this organized and such a good manager of their territory is going to remain on my radar screen for a long time.  And if someone like this tells me our lead generation program isn’t working, I’m going back to HQ and make sure it get’s fixed.

Now that we know each other…tell me about your family.

The Best Cold Call Script…Honest!

25 Apr

Before writing this script to suit your business please consider this;

 

No one likes making cold telephone calls (or in person) because a similar number of us don’t like receiving them either.  Why?  Because there are several perceived risks;

 

  1. You are going to waste my time.
  2. If I agree to see you, you’re going to leave a great big feature dump on my shiny desk.
  3. You are going to ask for information that you haven’t earned the right to know.

 

So, what are the objectives of the cold call?

 

  1. Minimize the risk in speaking with you (that’s why you only ask for 2 minutes)
  2. Minimize the risk in setting up an appointment (only speak about benefits, never features, advantages or any other indication of a pitch)
  3. Don’t ask questions.  If they agree to the appointment you may be able to get away with one or two questions but use care!  You just distinguished yourself from everyone else who will call.  Why take a chance on ruining that first impression.
  4. The ONLY other objective of the cold call is to set an appointment.

 

Telephone Script – I would recommend not tampering with everything in bold type.

 

Hello Mr. Smith, this is Greg Deming with Sales Performance Advisors.  I’d like to take two minutes to tell you why I called then you can decide if we should talk more…are you okay with that?

 

Most of the sales leaders I speak with today tell me they are concerned with the same issues that I faced when I ran large national sales organizations:

 

  1. They know that individual sales effectiveness varies dramatically, with only 59% of reps meeting or exceeding expectations.
  2. Almost 40% of top sales officers say that coaching in the field needs improvement in terms of frequency and quality.
  3. Finally, less than 50% of sales management executives felt their organization was able to consistently hire reps who were capable of succeeding.

 

Does this sound familiar?

 

Companies that I have worked with tell me they are confident that struggling contributors are easily identified and that field managers understand how to develop people to the next level of productivity.  Field managers tell me they are better equipped to hire the right people to begin with, and also better able to help people succeed.  They feel they are a part of a high performance organization.  Most importantly an effective solution turns field managers into leaders & world class trainers.

 

Are you interested in meeting?  It won’t cost you anything to discuss this further, and who knows?  It may be costing you not to.

 

The key for you to follow is keep it short, honor the prospects concerns, summarize the needs you are best able to address and also summarize the benefits that your customers (clients) enjoy.

Managing Sales Reps with “Attitude Problems”

21 Apr

Sometimes they simply have an opposing point of view.  Sometimes they are disrespectful of other team members.  Other times they simply refuse to do tasks commonly associated with what it takes to optimize sales results.  What’s their problem?  What’s your problem with them?

As a field sales manager you are accountable for delivering the optimal results possible with the assets assigned to you.  You are going to have a set number of sales resources.  Forget about the discomfort that you may feel from a rep with an attitude.  Stay focused on your job…optimal results!  First things first.  Are they making the goals? 

If not then you must take direct action by coaching and counseling.  You have to look at the territory as a resource and if the sales rep is not delivering that you’re not operating at full capacity.  You can afford an under-performing territory if you’re confident the numbers will improve.  You cannot afford to support an under-performing rep forever.  The next step is the most difficult one a sales manager has to perform…an autopsy of the sales pipeline.  Put on your stethoscope and begin to assess where in the sales cycle the problem resides.  Once you see where prospects, or lack of prospects, are clogging the pipeline you can next figure out what sales skills are lacking.  Most likely culprits?  Prospecting, presenting, probing or proposing are the most common ailments.  In this case the poor attitude is a symptom of a SKILL problem.  This is the most commonly overlooked solution because when we see a attitude problem we automatically begin inspecting the symptom instead of the illness.

If the rep consistently meets the goals but gives you or your team attitude problems then the plan of action is much more complex, but if left unaddressed it’s going to get worse.  High sales will is driven first by high sales skill.  But some people regress.  So I would recommend that you divorce yourself from the notion of “motivation”.  Motivation is what happens when there is a belief, held in expectation that something personally important will happend when a task is performed.  You need to go a little deeper.  Will is defined as the combination of desire, incentive, security and confidence.  When someone that used to have high sales will regresses, then one of those four drivers has reversed.  You need to figure out which driver has reversed then address the problem:

Desire – this is the closest to motivation.  It’s possible for people to lose the desire to perform tasks.  They simply feel that they have outgrown the need to perform the task, or that the they have already captured what was important to them and are now unwilling to perform certain tasks.  The most common example is prospecting.  Say the rep has a goal to make $100k per year.  Once they get to that level they stop performing a task they hate, like making old fashioned calls to set appointments. 

Incentive – there is a very strong link to incentive and desire, though incentive is a little more subtle.  Incentive can be a self imposed limit, such as a low income goal.  Incentive, as a driver of will, can regress quickly.  You see this all the time.  Outbound telephone calls disappear when the pipeline is full.  Then when the pipeline of prospects thins out people forget what got them there.  It becomes your job to remind them that the task of outbound calls is how they filled up their pipeline.  In other words, make sure they see the linkage between the task and their success.

Security – This is a tricky driver of sales will.  If you grew up in sales like I did then you know that security is fleeting.  You can feel a loss of security because of your own perceptions, or because of things going on around you that are outside of your control.  The most obvious are mergers or downsizings.  The less obvious are management changes or a change in the sales process.

Confidence – A change in confidence can come from within or from the outside world.  You can imagine what more senior sales reps felt when their company went from emailed weekly sales reports to an online CRM.  Confident people will speak out and ask for help.  Those that lose confidence will be afraid to ask for help, they don’t want to be discovered.  People are subject to a regression in confidence more today than ever before because the span of control for sales managers continue to get wider and wider.  The less communication there is, the more likely that a reps perceptions will cause damage to their confidence.

So, in the end, I hope that your view of attitude problems has been altered.  Your job as sales manager is to dig a little deeper and find out how you can help.  However, if the rep is the “bad apple” sooner or later they will ruin the rest of the team.  You may have to take action quickly.  Your team depends upon you to show composure and care for people.  Be the best coach and leader that your team ever had.  You’ll enjoy your job and over time you’ll create a team of winning professionals.