Now is the time to rethink your sales strategy and your sales force.  Design the sales force your business needs and get great results.

Tip: It’s all in the thinking and planning that happens before the execution.

To help you start your thinking and planning here are two case studies from our work files where the businesses got it right.

Story one: Transform your current sales team into a new sales team

“The Sales Culture transformation and competency project we worked on with you in 2008 has been such a great success for our team.  The culture is now fantastic and the morale of the Sales Team is very good.  We aimed for the culture we wanted and got it.  People have settled into their roles and are working out fantastically. It was the planning and thinking behind it that made it work.  The Competency work has, without a doubt, made a difference. The Sales Competencies are ‘Gold’. We refer to them all the time and the Sales People are using them as well to develop themselves and have clearer, more accountable, performance reviews.  The competencies helped our team realise how responsible they need to be in their roles.”

This is what can happen when you design your sales force to deliver your strategy.  This quote comes from a Sales Director of a business we have worked with for many years.  They had the same sales force structure over the last 15 years and a very stable sales force to go with it.  The team and structure had worked very well, however the market was changing and the business and its sales people needed to adapt and evolve to ensure they were current, fit and productive.

In 2008, this Sales Director realised she needed to develop a new strategy moving forward and with that needed a new sales culture and team to deliver it.  But she didn’t want to get rid of the current sales team.  They were good operators with great industry knowledge and experience.   She knew it would be foolish to start from scratch with a new team and she didn’t want to create confusion or unnecessary unrest or anxiety in her existing team.

Her concerns rested around getting buy-in from the team regarding the new strategy and, in particular, their need to adjust their roles somewhat.  Despite not wanting to lose people she was prepared to do so if necessary.

What did she do?

• Developed her sales strategy and then presented her strategy to her sales team, inviting feedback and explaining ‘why’ they all needed to move in this direction using a well researched, evidenced based approach.  The team knew what was happening in the market place so it came as no surprise to them that they needed to shift.  That is fine intellectually, however we knew the challenge would be in actually getting them to shift in real terms.
• To get the real shift happening she then engaged her team in the development of the new Sales Roles by engaging in a ‘job design’ process with us.
• Out of the ‘job design’ process we developed the right Sales Behavioural Competencies (DNA) and ‘ideal’ role/person specification matched to sales strategy, product and customer base.
• Sales Behavioural Competencies were then linked to the Sales Team performance management reviews and are now being used in coaching, recruitment and succession planning processes.
• Sales Behavioural Competencies were mapped to measurable sales metrics
• The Sales Behavioural Competencies now act as a pivotal reference point in all their work.

As mentioned, the Sales People are using Sales Behavioural Competencies to develop themselves, have clearer, more accountable, performance reviews and better role clarity which means they know how they need to perform to achieve their strategy goals.

Story two: Design the sales team you want from scratch – green fields

A Divisional Manager of a large Australian corporate came to us because they didn’t want to hire people from their industry as they didn’t think they were competitive in the current market. They wanted to refresh the gene pool and bring in fit sales people who were not tarnished by the industry mindset and its way of doing things.  They knew that in this over commoditised marketplace their sales people were their competitive edge.

They were on the right track but didn’t know where and how to start.  So here is what we did together to find elite sales performers:

• Reviewed sales strategy, path to market, and products being sold
• Developed the right Sales Behavioural Competencies (DNA) and ‘ideal’ role/person specification matched to sales strategy, product, and customer base
• Built a structured sales recruitment process and kit
• Targeted industries the new breed of sales people could come from and went to market to find them
• Built and implemented the right sales induction training program matched to sales strategy, sales competencies, product, and customer base
• Had new sales team present their ‘go-to-market’ action plan to senior management before they went to market
• Implemented a sales management support system
• Followed up with infield training and coaching
• Mapped and measured sales metrics

The results were stunning from a sales initiative perspective.

The ‘new breed’ of elite sales performers achieved a sales closing ratio of 4:3 within 2 months against an industry average of 3:1 and sold the annual sales budget within 5 months.

Feedback from the sales people was that this was the best sales recruitment and sales induction process they had ever been through.  In all their sales careers, and many came from big name companies, they have never been set up so well to succeed.  They felt confident, proud, and capable to really deliver.

Feedback from the client:  “We worked in partnership to develop an end-to-end model for a new innovative sales team. The approach was unique in that they worked with us across recruitment, training, needs analysis, pitch planning and the end delivery. They added huge value to any sales process.”

By designing your ‘ideal’ sales force blue print you can build and achieve the following in your business:

• Change your culture by creating the sales culture you want
• Design the ideal sales force you want
• Recruit the sales force you want / your strategy needs
• Refresh your thinking, ideas, actions and results
• Develop career paths and succession planning
• Clear performance expectations
• Clearer, more accountable, performance reviews
• Provide a framework for identifying what a high performing sales person looks for your business
• Profiling of the core sales capabilities / competencies for sales managers/ sales people for use in recruitment, performance management, training, coaching and succession planning.
• Provide a framework for assessing the calibre of candidates as defined by core competencies and values;

As you prepare for the next financial year and are developing your sales strategy take time to reflect on what your ‘ideal’ sales force blue print should be.

Do not underestimate the value of taking time to think and plan, ultimately it could make you a lot more money.

Sincerely, your advocate for selling the  right way.

Do you have the wrong sales team delivering your sales strategy?

Ask yourself the follow the questions:

• How has your strategy and /or market place changed recently?
• How have you seen the role of ’sales’ change over the last few years in your industry?
• How do your sales people compare to your competitors?
• How do your sales people need to sell now?
• How is your product offering behaving in the market place now? Was it once exclusive and now a commodity?

The definition of a ‘good’ salesperson is driven by many possible needs. Those needs are a function of industry standards, changing market conditions, competition, corporate strategy and culture, personalities, past experiences, just to name a few.

In addition, many organisations overlook the shift in their products or services from being customised and exclusive to a commoditised entity and the impact this has on their sales force and sales efforts.

So it’s not just how your sales people behave that can affect sales, it’s also how your product or service behaves.

Let’s take a look at computers

For many years (in the late 1980s and early 1990s) computers were highly priced, exclusive products sold by highly priced, exclusive sales people.  These sales people were specialists, experts or advisors selling into the big end of town because these were the only businesses who could afford computers back then.

However, as:

• the cost to manufacture these products decreased making them more accessible and cheaper to buy, and
• customers education, knowledge, awareness and experience with these products and processes increased

The style of the sales people required to sell computers changed.

Now you can go to small or large retail outlets and buy a computer off-the-shelf from retail sales people (most of who are paid much less than their highly priced, exclusive predecessors).  Or easier still, you can buy custom built computers online at Dell, thus eliminating the traditional type of computer sales person all together.

Daniel Pink wrote, amongst other things, about the commodisation of products and services in A Whole New Mind and specifically how we need to look at creating value beyond product.

This is why more thought needs to be given to how a business translates its sales strategy into sales action.  You need to make sure the current products and style of sales people you have are matched accordingly.

If customer’s product or service education level changes (i.e. they become more sophisticated), and there is change to the product and access (i.e. online), there will be a change in your sales force requirements.

However, some products which can behave as commodities in their own right can become part of a complex sales solution and need sales people who are specialists, experts or advisors.

Let’s look at Business Banking

Business Banking is really an essential service for any business, however the products on offer are often standard and commoditised in their own right.

So what is a business banking customer wanting from a Business Bank?

It depends on the relationship.

Current research indicates that many want ‘ease of doing business’ and ‘value for money’.  The research also shows that many customers are not as sophisticated and savvy in knowing the ‘ins’ and ‘outs’ of  Business Banking and therefore many would like to rely upon the expertise, advice and support from their business banker.

However, many Business Banking providers have not developed, trained or supported their Business Bankers to be specialists, experts or advisors.  Most customers still go to their accountant for that advice and then use Business Banking products rather than extracting the possible value from their Business Banker.

As with Business Banking, there is often a great opportunity to capitalise on the potential long-term, in-depth customer-supplier relationships even if you have a range of commodity products.

I suspect many opportunities for further profitable sales sit untapped in many businesses because misalignment with strategy, product and sales people fit.

Knowing your market, where your products sits in isolation and in combination, and the types of sales people you need to have to deliver your strategy is critical.

So as you prepare for the next Financial Year you may want to review the sales force you currently have and see if they will stand up and deliver what your business needs in FY 09/10.

I will talk about this next time in “Creating your ‘Ideal’ sales team”.

Sincerely, your advocate for selling the right way.

Have you ever done the math on how much sales recruitment costs you, especially when you get it wrong?

If you are like most managers then chances are you haven’t.  So let’s consider the costs, overt and covert, involved in sales recruitment.

If you don’t know it already, sales recruitment is one of the toughest assignments around.  I know this firsthand, as I was in this role for over 8 years with a leading consultancy and recruitment company. During this time, I interviewed about 8,000 sales people face-to-face in the technical, industrial, medical, and scientific industries.  Remember, this is not counting all the resumes I screened manually as my experience was pre the internet and we had to do everything manually – no ‘word search’.

My time in sales recruitment gave me a great grounding and honed the skills to select good sales performers but not everyone has had the chance to practice.  It was a fascinating social study on what makes a great sales performer. Upon reflection, it was a catalyst for my research into illuminating and defining the elusive qualities that make for highly successful sales people and the development of IP specifically in the Australian Sales Competency space.

It also led me to map out and demystify the sales recruitment process by putting in place relevant content and a structure people can follow.   What this structure and the right selection content do is place control back into the hands of the managers who are responsible for recruiting sales people for their businesses.   It also made me plainly aware of the costs involved.

The problem is that, for most managers or business owners, sales recruitment happens sporadically and too many managers still use unstructured recruitment practices that are the least predictive of sales performance.  Most are just winging it, relying on gut feel, and never getting enough experience to give them something to fall back on when they need it.

It’s recruitment by hope, recruitment by chance.

Taking this ad hoc approach adds to the cost of sales recruitment because even if you get it right you don’t know why you got it right, therefore making it difficult to repeat the process.

With everyone being so focused on cost management its also important we do the math on the cost of sales recruitment and the cost of getting it wrong.  We do this so that when you look at your sales recruitment you can make sure your actions will give you a better return on investment and that you hire the right sales people.

Any action we do has a cost (monetary, energy, time, etc.) associated with it.  Whether that action propels us to profit from it or costs us more than we intended is the issue at hand.   Getting sales selection wrong can cost you more than you have probably imagined.

What are the OVERT and COVERT costs associated with these issues?

• Keeping a poor sales performer on too long who is not producing and not having a better performer to replace them (Note to self : you should always be on the look out for top sales performers, keep a list)
• Sales territory vacant for too long
• Poor fit: Not selecting the right type of person for your business culture, strategy and task
• Taking too long to make selection decisions thus losing good potential recruits
• Little or no structure to your sales selection process
• Using the wrong recruiters to get you the right people (sadly too many recruiters do not know what a ‘good’ sales person looks like)

All these equal lost revenue, lost profits, lost market share, lost customers relationships, customers business drying up, loss of reputation, internal disharmony, team issues, etc.

Let’s now look at it in stark terms:

Case study: A sales person who earns a base of $60,000 per annum plus extras stays with a Company for 3 months and doesn’t work out:

Overt Financial Costs
(based on a conservative estimate)

• Advertising and Recruitment Agency costs = $10,000+
• Candidate travel costs (if applicable) = $500
• Induction Training costs = $5,000 (in-house and/or formal/external training)
• Salary and benefit costs = $15,000 plus super, work cover, etc.
• Additional costs (car/car allowance, phone, travel, etc.) = $3,000
• Severance pay (2 weeks notice) = $1,600
• Manager’s time to recruit 40hrs @ $60/hr ($100K salary) = $2,400
• Administration costs: $2,000
• Sales lost due to poor performance (2.5 times salary is the average) = $37,500

Estimation of Overt Cost Total for 3 – 4 months = $67,000

Then add:

Covert Financial Costs

• Potential litigation costs = ?
• Lost sales opportunities due to vacant territory = ?
• Manager’s coaching time = ?
• Team morale = ?
• Customer loyalty = ?
• Impact on Reputation = ?

While I may have missed some things or overestimated others, the math clearly shows that getting sales recruitment wrong is very costly.

I suggest you do an audit and check out where you have made the most of your actions and where you may need to tighten up.

Remember that its all in the preparation and execution of the right activities and make sure you act wisely and in your best interest.

If you want further information how to how to structure your sales recruitment practices go to  Getting Sales Recruitment Right

Sincerely, your advocate for selling the right way.

I have attended my fair share of networking events and more often than not, I find that I do not get any quality time to network and begin the process of building viable business relationships for the future.   I find the time allocated to speak with people and start to get to know them is often too short, coupled with too many other distractions.

When attending these networking events I find I usually get the most value out of listening to the key note speakers.  If I am fortunate enough to strike up a meaningful conversation in between the breaks with someone I am seated next to then great, but all too often there is no real focused time to listen and understand each other on a one-on-one level.

I aware there is plenty of advice on how to get the most out of your networking at these types of events and the advice is often very good so don’t stop going.   I want to make it clear that I am not criticising the style of these networking events – they are what they are and you can make the most of them.

However, I have been on the look-out for other ways to really connect, understand, and collaborate with people who are interested in leveraging collective networks, especially in this current market.

I had the privilege the other day of being invited to a very different networking event.  It was small in scale, focused, purposeful, coordinated, quiet, and for me, very meaningful.

The concept is a Multiplier Lunch.
Multiplier Lunches are a sandwich lunch held for four businesses at a time, one of them being the host company who invited me.  All four businesses are non-competitors, and my case generally in the services sector, and are unlikely to require each other’s services.   However, all work in similar markets.

The central idea is to act, where there might be an opportunity, as referrers to each other.

The purpose of the lunch is for the group to get to know what each other’s businesses do so that we can be effective referrers for one another.  Each attendee has half an hour to tell the group about their business and to take questions.

Typically, each business representative will talk for around 15 minutes and take questions for the remaining 15 minutes.  This works well. It is a very informal gathering and things are kept relaxed, so people do not prepare any formal presentations.  Everyone was respectful of allocated time ensuring that the lunch finished on time.

I found this to be a liberating and enjoyable, alternative networking experience!
Sincerely, your advocate for selling the right way.