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Daring to be Different (part 1)

July 31, 2008 in Recruitment, Sales Management

Here is the first of two articles about recruiting top performing sales people and daring to do so from outside of your industry.

When it comes to assessing sales and sales leadership capabilities in your business do the lines blur between the cultural morays, views and perceptions, gossip and politics and the real capabilities needed to be assessed against your actual sales strategy?

In my line of work I am often requested to sit on senior management interview panels for clients because of my background and expertise in assessing sales leadership and sales performance and the issues around of internal and external assessment of sales people and leaders. They request my presence based on the following criteria:

  • My 15 years working in the sales competency, assessment and development space
  • My eight years as a recruitment consultant interviewing approximately 8,000 sales people and managers face-to-face.
  • My independence as a 3rd party
  • My willingness to speak up and challenge prevailing views and attitudes as I am not likely to carry the internal company prejudices and paradigms that influence current thinking and culture into the interviews.

Sales recruitment and assessment is not for the faint hearted and is one of the hardest areas to get right in any business, and it doesn’t help if politics, nepotism and inaccurate perceptions of what constitute effective sales and sales leadership performance prevail. I get to see this, especially when we are looking at internal candidates.

Just recently I was in shock at the extreme contrast between two internal candidates who were two of several internal candidates vying for sales leadership roles on a newly formed senior management team:

  1. One sales leader was rated highly be their manager and endorsed by certain peers in high places but in interview it was clear they had no idea about sales leadership, strategy or process and no substance what so ever. They were a ‘fraud’ as far as the role was concerned. Yet their manager and other allies were clearly trying to position this person as a top performer which they clearly were not.
  2. Next rolls up the complete opposite. Clearly a highly competent candidate. They had the complete package, it was obvious from our investigations and we were impressed yet they had been previously rated poorly on key criteria and the lobbying by certain internal stakeholders to deposition them was astounding. His comment, when asked how he felt about being invited to participate in the interview process, was very telling. He said ‘Relief. Relief at being actually able to present his capabilities honestly, clearly and fairly without bias or prejudice.”

My client, relatively new to this division and whom I shared the interview panel with, had very little direct dealings with any of the candidates which was good on one hand, however, most of his information about the candidates was coming second hand via comments and lobbying from peers and managers and performance data ratings which may or may not have been accurate depending on who had assessed the individuals. He wanted a transparent, evidenced based approach used which is why he called me in. And our approach unearthed a whole lot of issues and raised questions around:

  • The formal performance assessment criteria and process of sales individuals (not just $ sales results)
  • Those who were doing the assessment ratings on staff and what perceptual filters they are using in addition to the standards provided i.e. biases, prejudices, etc.
  • The political lobbying in place to keep top performers from making it to influential positions
  • The actual criteria used to assess effective sales performance and leadership. Is it up-to-date and able to deliver our sale strategy?
  • The consequences of political, inwardly focused, biased culture and its effect on the organisation’s success in sales, staff performance and retention.

If the sales capabilities and performance requirements needed are properly assessed against sales strategy then what we can go looking outside of our comfort zone for top performers who can thrive and deliver I our culture. What is good for one industry may also be good for another.

I can honestly say for a fact that my best placements were people outside of the industries I recruited for. The clever sales managers recognised this and took a risk. So dare to be different.

Part 2 next week.

Preparing for your 2008-09 Sales Year

April 24, 2008 in Sales Management, Sales Planning, Value Creation

If you haven’t already it may be worth your while to hold a formal review and business/sales strategy planning session with your team before the new financial year kicks in.  Many markets have and are going through major changes and this requires us to be on our toes and ready for action.

The challenge for any business, especially those of us who run a small business with limited man power and resources, is to take the time out to work on our business and plan for the future rather than stay stuck in the day to day  of our businesses.  This is a vital part of our job and can set us up very well for the future.  If we stop and look to review and reassess our strategies, plans and actions and take into account what the market is doing, we in a better position to note the vital signs and opportunities that can help us secure our business future.  Ideally this type of process should be done on a regular basis at least formally twice to three times per year.

So with that in mind my team and I are putting aside Friday 2 May to come together and work on our business strategy for the next 3 years and our sales strategy for 2008/09 and beyond.  My business has gone though many iterations over the years and my long term goals are now coming to life.  I now what to ensure that we are on the right track and I thought I would share with you the process we are going through to help us put in place the best and right strategy for us to realise our goals and fulfill our market potential and expectations.

Now I confess that I am not the most detailed person and ‘planning’ is one of my challenges so to keep me focused and on track here are some of the questions we will be preparing to address and answer as part of our planning and strategising. Ultimately our aim in going through this process is to make sure we have a profitable and viable business.
Our vision and mission for being in business

  • WHAT do we stand for?
  • WHY are we in this market space?
  • WHAT do we want to best known for?
  • WHAT are the values the guide us in our work?
  • WHAT are our goals for the next FY, 2-3 years, 5+ years?

Our Customers

  • WHO are we specifically targeting?
  • WHY are we targeting them?
  • WHAT does a viable ‘ideal’ customer look like?
  • HOW do we find them?
  • WHAT do they specifically want or need now?
  • WHAT problems do we currently solve for our customers?
  • WHAT products/services to we use to solve their problems?
  • ARE our products/ services/ solutions solving their problems effectively?
  • WHAT might they want or need in the future?
  • WHAT can we offer them in the future?
  • HOW do they want to buy?
  • HOW do we need to sell to them?
  • HOW do they want our products / service delivered?
  • WHAT is our customer acquisition & retention strategy?
  • WHAT are their expectations of us?

Our Competitors

  • WHO is our competition?
    • Current Competition
    • Peripheral Competition
    • Emerging Competition
  • WHAT markets are they operating in?
  • WHY are they in this market space?
  • WHAT is their primary objective / goal?
  • WHAT do they do well?
  • WHAT don’t they do well?
  • HOW are we positioned against them?
  • WHAT is our competitive advantage?

Our Value Proposition & Service Standards

  • WHAT is our unique selling proposition (USP)?
  • WHAT is our promise?
  • WHAT is our sales expectation?
  • WHAT is our service level standard?
  • HOW effective are we?
  • WHAT do we do well?
  • WHAT do we need to be better at?

Marketing & Product

  • HOW effective have our current marketing activities and tools been? (i.e. PR, SEO, Brochures, Events, etc.)
  • WHAT marketing activities and tools do we need to keep on using? & WHY?
  • WHAT marketing activities and tools do we need to stop using? & WHY?
  • HOW effective is our current product mix? What are the most profitable areas? What are the least profitable areas?
  • WHAT is the $ value of our average sale?
  • WHAT product mix do we take to market?

Steps to ‘Yes’  (Sales Process)

  • WHAT is our current sales cycle? (how long does it take to make a sale?)
  • WHAT is our current ‘prospecting : sales’ ratio
  • WHAT are our current sales activities and HOW often did we do them to achieve our current revenue? (Prospecting, Sales Meetings, Account Management & Networking)
  • HOW effective have they been?
  • HOW often do we need to prospect to make enough sales appointments with viable prospects to make enough sales to meet our goals?
  • HOW effective is our current sales process?
  • WHAT do we need to change to be more effective as sales people? (Structured sales communication process & skills, human relations, motivations; values, behaviours & attitudes; problem solving & decision making; self management, planning, etc.)

Sales Inputs & Outputs

  • WHAT are our current Performance Expectations & Rewards
  • HOW do we need to allocate customers? (by territory, industry, size, etc.)
  • HOW do we set targets? (revenue allocation, profits, phasing, etc.)
  • WHAT levels of responsibility and authority do each of us need to have?
  • HOW do we currently manage revenue & profit?
  • HOW do we forecast?
  • HOW effective is our current CRM system in terms of capturing the right customer, marketing and other sales data?
  • HOW effectively are our people at putting in the right data into our CRM?
  • HOW effectively do we use the data we capture?

I hope this helps.

As many of you may be aware, putting together a business strategy and associated sales / marketing/ operation plans is all well and good, however they will remain intellectual abstractions until  we put them into action.  Good luck with your business and sales planning process.

If you want a Sales Planning template for your business call us on (+61) 03 9532 7677

Thinking of promoting your best sales performer to sales manager? Think again!

March 27, 2008 in Sales Management

Many businesses have made the mistake of promoting their best performing sales person into the role of sales manager. Their logic – well they are great at selling, they’ll be great at sales management. Sadly most of these situations end in disaster.

To start off the top performing sales person has usually been given no training or a development framework to help them make the transition into what is a very different role. It is almost assumed they will know how to be a sales manager because they ‘know’ (sadly usually only intuitively) how to sell. The new sales manager, if not aware of their own capabilities/areas for development and not properly trained often (usually unintentionally) begins to compete with their sales team for sales because they miss the thrill of the sale. When out with a sales person they often take over the sales call and do it themselves leaving the sales person feeling diminished or marginalized. Their coaching strategies are reduced to saying ‘You can do it, just be like me’. Their management of the sales team can be haphazard and lacking in structure.

The consequences of such an approach can be far reaching with their actions resulting in lower sales performance. As their frustrations levels rise and they may find themselves taking back the sales responsibilities trying to cover for low levels of sales performance. Then sales people begin to leave the company or others kick back taking the easy road whilst the sales manager does their job for them. And if not corrected quickly they send themselves and their sales team into a downward spiral of poor sales outcomes.

Why would any business do this? The intentions of management to promote the best sales performer to management are usually honourable – moving into management is seen as a promotion. The best performing sales person may have asked for the promotion as it is seen (and often promoted by business) as the next prestigious step in their career. This person has been a great asset to our business we should promote them – Right? Not necessarily. Many top performing sales people usually get their greatest thrill in being in a sales role. Whilst the lure of management looks attractive, usually with a bigger more stable pay packet and accompanying prestige, the truth is that it is often a nightmare for many – even more so when there is no training, tools or resources to do the job well.

Many an elite sales performer, like many elite athletes do not know why they are good or how to show others to be effective in sales. They are often very unaware of their own strengths and talents and which means they do not know how to transfer their skills and talents onto others. They often do not know how others need to learn as well making matters worse. Many are operating intuitively. How can you train and teach something that doesn’t exist? With no proper training in people management, coaching and development practices, and if the new sales manager has low levels of self and other awareness, then we are heading for disaster in the sales stakes.

I keep seeing the following issues reoccurring all too frequently in many sales teams:

  • No defined sales model
  • No logical sales plan
  • No clear sales metrics and activities plan
  • No logical sales process for sales people to follow or sales managers to coach to
  • No logical sales coaching and performance system to use to help improve performance
  • No structured targeted sales recruitment process to use
  • No clear value proposition, lack of awareness of their competitive edge and no clear economic argument to position products/ services/business against the competition.
  • Poor role clarity – none really knows what they need to being doing, including the sales manager.

In my opinion this comes down to not having clearly defined roles and responsibilities, not selecting correctly for the role, ineffective sales management training and poor access to tools and resources for sales managers to do their job well.

Developing and enhancing your skills, attitudes and behaviours to be an effective sales manager and leader is critical to yours and your sales team’s success. However many sales managers do not get the right level of training and development to be effective and gain mastery in their jobs. Many have attended high level leadership programs on vision and high-end strategy but found they were left wanting when it came to the practical in-field tools and practices they needed to use and apply everyday with their people.

Many of the sales managers I come across are desperate for useful tools and resources and practical training to help them do their jobs well. I find when we work with them give them what they need by way of coaching field guides, templates, coaching/recruitment/performance processes, sales meetings guidelines, etc. coupled with a good education in this space they take to it with gusto and find they can really make a difference with their teams and their sales results.

Several sales managers I have been working with recently found their anxiety levels reduced significantly once they had their ‘sales managers tool kit’ and knew how to use it wisely and well.

Sales management is an applied role and not some theoretical abstraction.

So let’s give sales managers a fair chance of gaining mastery in their roles by giving them what they need – practical tools, resources and education. And, who knows even the top performing sales people might make top performing sales managers if given half a chance.

Contact BARRETT on 03 9532 7677 for access to our ‘Sales Managers Tool Kit’ and Sales Managment Training Programs.

Territory Management vs. Account Management

November 15, 2007 in Sales Management, Sales Planning

Terms such as Account Development, Account Management and Territory Management are often interchanged indiscriminately by many a sales people and managers thus creating confusion when it comes to sales planning, portfolio allocation and recruiting the right kind of sales person for your business.

I thought it might helpful to define these terms and give you a little more perspective.

All sales people involved in developing long term viable business relationships with the right kind of customers should be doing Account Development: Here is our definition of Account Development taken from the BARRETT Sales Competency Dictionary.

Account Development: Develops account profiles and plans for each customer with a thorough understanding of the customer’s business and their needs and works with that business to yield greater penetration rates for further viable sales.

It makes sense.  However, when it comes to field sales planning it is critical, not just to know whom you are calling on and how you are calling on them, but to know what type of portfolio allocation and management your sales portfolio requires. 

Are you and your sales team working a territory or account management strategy? 

The difference is quite important if you want to run a successful well managed sales team and business.  Let’s look at the two most common terms used when it comes to sales portfolio management:

Account Management

Relates to a Sales Representative entrusted with managing an account or series of accounts.  This, for example, would include the responsibilities for locating and negotiating to acquire clients’ accounts within a Territory, State or Nationally.  Account Management is not necessarily territory bound in practice, however, it does involve:

  • positioning yourself and your business at multiple levels with the client account,
  • handling all major decisions related to that specific client and
  • working with all key people within that account including the key decision makers, influencers, coaches, etc. 

True Account Management is usually reserved for larger, more complex accounts requiring one or more of a team of people to manage the account(s) from the supplier.

Territory Management

Relates, in the main, to a Sales Representative or Merchandiser with a Territory to manage – this is most common in businesses such as:

  • Pharmaceutical Sales: calling on GP’s, Hospitals and Pharmacies within a specific geographical area.
  • Selling into Retail: selling into and managing all the different retail stores in their territory i.e. Supermarkets, etc.
  • Some Mortgage Franchise Sales: in a number of these franchises, they have set Mortgage Brokers up with a designated geographical territory calling on consumers within that area.

Therefore how should your sales team currently be operating?

If you are unsure about what is right for you here is some information from www.sykronix.com, a marketing research portal that might help you:

REASONS FOR ESTABLISHING SALES TERRITORIES

Better coverage – salespeople cannot cherry pick; territory assignments constrain salespeople to work with less profitable customers or prospects as well as the most desirable accounts

Reduced selling costs – assigning responsibility to a single salesperson ensures that there is no overlap in coverage; customers and prospects are called upon by only one salesperson

Improved customer service – assigning responsibility to a single salesperson helps to ensure that all customers and prospects receive adequate servicing

More accurate evaluation of performance – if territories are relatively equal with regard to workload and potential, then salesperson performance can be compared on an equal basis; if territories are unequal in a known way, then adjustments can be made in evaluation of unequal performance

WHEN NOT TO ESTABLISH SALES TERRITORIES

Sales coverage is far below sales potential – e.g., a new company wants to cherry pick for the most profitable prospects first

The sales force is highly specialized – e.g., when the sales force is organized along the lines of product specialty rather than along the lines of customer location

Sales are made on the basis of personal contacts and by referrals

SOME GUIDELINES FOR DESIGNING TERRITORIES

Sufficient potential – with insufficient potential, a salaried salesperson will not be used effectively, and commissioned salespeople will leave the company for greener pastures

Reasonable size – is a salesperson’s time being spent traveling or making face-to-face sales calls?

Adequate coverage – is the salesperson able to service all accounts and able to meet new prospects?

Minimum impediments – try to set territories such that rivers, mountains, railroads, etc. set the borders of territories rather than run through the middle.

DESIGNING TERRITORIES

Determine appropriate focal points and boundary areas

Political boundaries – state, city, county, etc.

MSAs

Trading areas

Natural boundaries – mountains, rivers, railroads, etc.

Determine territory shape for efficient use of time and routing

Wedge – slices of a pie; use when salespeople work out of a common office

Circle (or square) – use when salespeople work out of a home office

P.S. Then there is

Category Management: Relates to someone being given the responsibility of managing a ‘Category’, example ‘Footwear’, they would manage Shoes, Socks, etc. but they would not be responsible for shirts etc.

Also thanks to Tom at Golden Circle for the additional insights.

12 steps field sales coach plan

October 26, 2007 in Sales Management

The reality is that most sales managers do not spend enough time with their staff in a coaching capacity. Providing constant feedback and being a role model who demonstrates the right skills.

Many managers today are still focusing too heavily on short term efficiency and not long term effectiveness. Development of staff through on-the-job coaching is a critical function of modern day managers but can take second place to some of the more urgent, but less important priorities.

On-the-job coaching is something that managers recognise they need to do with junior members of the team. When it comes to salesperson with several years experience, the sales manager would prefer not to do it. The rationale goes along the lines that the senior people do not need it. They have been selling for years and they would resent the sales manager going out on a coaching day with them.

It is true that it is not much use you going out to coach people if you cannot add anything to the call. However you are the sales manager and you should be able to add something even to the most accomplished salesperson.

Added to which is the fact that those sales people who have been selling for years are not automatically good salespeople and as we have already discussed, the job of selling is constantly changing.

The 12 step approach for on-the-job sales coaching involves the 3 phases:

  • before the call,
  • during the call,
  • after the call.

Before the call


1 Check the customer records etc.
2 Question the objectives of the call. “Anything else? Can we aim higher?”
3 Review the call/sales plan/presentation plan:

  • Key sales techniques
  • Likely objections and solutions
  • Any problem areas and recommendations
  • Role play important points if necessary

4 Agree on your role. Usually shut up and observe the call.
5 Summarise and encourage

During the call


6 Watch and listen

  • How the call goes versus the plan
  • Strengths
  • Weaknesses
  • Improvements from last time

After the call


7 Decide on the key learning points

  • 2/3 no more
  • Identify some good points

8 Overview the call

  • What happened versus the plan
  • Let the salesperson lead: “How did you go against your plan?”
  • “What did you achieve compared to what your objectives were?”
  • Don’t get into the detail of the call at this stage

9 Analysis of strengths

  • What did you do well
  • Let the salesperson take the lead. Add your own comments

10 Analysis of weaknesses

  • “What would you have done differently?”
  • Use non directive questioning techniques to let the salesperson solve his own problems. Avoid telling. Focus the questions to the areas where the key learning points are.
  • Why did it go wrong?
  • What should you have done? Why?
  • Role play if necessary

11 Agree on action plan to address the learning points
12 Agree on the next action with the customer