Who wants to work with accountable, responsible, and self-directed sales people?  Of course we all want these types of sales people in every sales team.  Yet, most businesses do not support this by setting up their sales team to clearly measure and manage their sales performance.

Sales performance management begins with accurate role descriptions and perception, data collection, and measurement in line with set goals and strategy, however many organisations measure only one variable, sale results (outputs measures).

This type of approach leaves businesses and sales teams in the dark about how they arrived at their sales results making it hard to replicate good results and eliminate poor results.

What is needed in sales teams are clearer measures of what constitutes good sales performance and we need to be able to measure and manage the right things.

So, what is performance and why measure it?

Performance can be equated to behaviour, as it involves what people actually do. It is observable, measurable, and can be changed through the learning and application of new behaviours.  It is, however, important to select the right measure in a performance management system as performance measures can influence behaviours and attitudes within the organisation. A good performance measure will reinforce desired behaviours, while a poorly selected or incorrect measure can encourage behaviour that is unproductive and inappropriate.

An effective Sales Performance Management System measures sales results (output measures) and two additional critical variables, input and behavioural measures. The framework means this is done in a consistent and structured way.  The following diagram illustates examples of Input, Behavioural and Output measures for sales people.

By giving sales people access to explicit performance information about how they need to do their job they can begin to align themselves to organisational expectations.  With adequate training and coaching to support them we will now have sales people working consciously in their roles and on themselves to achieve greater, more competent performance.

Take this opportunity to check if, or how well, your sales people know their performance measures and are they on the path to being accountable, responsible, and self-directed sales people.

Remember, everybody lives by selling something.

Sue Barrett is Managing Director of BARRETT

It’s time to get back to basics.

I don’t know about you but recently I have found myself getting more and more distracted by the latest trend and fads, especially the social media phenomena. My reason for this is that I have been trying to get my head around social media and specifically, the impact on the sales profession.

As you may have gathered, I like to keep on top of what is current, what is emerging, and what is still an idea. This is why I make time each week to do research as it helps me navigate my way around the present and into the future. However, I am finding there is so much to read, so much to get my head around, and so much to integrate into my business that it can take up a lot of time… and it only seems to be increasing.

I read recently that 20 years ago information was doubling every 5 years, 10 years ago it was doubling every 18 months and today it is doubling every 9 minutes.  There is a plethora of information – the trick, however, is knowing the right information to access.

For example, getting your head around the social media space and how Facebook, Twitter, Linkedin, and other online groups impact on the sales profession is a big job. This is why I think it is timely to stop and review the information I have gathered so far, make sense of it (where possible), and determine whether it can be of value to me and my business moving forward.

This is why I want to get back to basics.

As I wade through all of the information on social media, I predominantly want to get answers to a few simple questions:

• How can it help make us more and better quality sales?
• How can it help forge better relationships with our clients?
• How can it help us be more effective and competitive in the market place?
• How can it help our competitive advantage?
• How can it support our business strategy and make our lives easier (work smarter not harder)?
• How can it support our brand and increase visibility?

From my observation, there seems to be a great deal more written about social media and the Business to Consumer (B2C) space (simpler, transactional sales) than has been covered in the Business to Business (B2B) space (more complex sales interactions). As is my nature, I am usually the first to want to incorporate new things into my business and learn how it can add value, however once all the hype and excitement boils down it is important that we weigh up energy expended and value added.

From our discussions with other businesses, I am finding that I am not alone in my enthusiasm for social media or alone in my reflection of the time spent. Now, I am not proclaiming that we should go back to the Dark Ages pre the internet and shut out social media rather that we take a moment and consider how we can integrate the regular sales activities such as prospecting, face-to-face meetings, building real long term relationships and social media

While there are fantastic benefits to social media, many of our B2B clients are reporting that their sales teams are getting distracted and ignoring the tried and true tasks required to grow sales.

Getting back to basics in the B2B sales space means:

• Defining what type of clients you want for your business
• Knowing: WHO you need to be in front of? HOW you need to make contact with them for? HOW OFTEN you need to do it?
• Use your networks (where appropriate) to research and target specific referral sources, prospects and industry contracts
• Prospect, prospect, prospect for new business opportunities– for most people that means picking up the phone and calling both new-to-business and existing clients directly to make an appointment and secure a meeting
• Meet the client or prospect– find out what they really need and how they want to work with you
• Deliver on what you say you will
• Follow up with a blend of purposeful phone calls, face-to-face meetings, emails and other valued add support that they can benefit from
• Don’t make assumptions– speak to people directly and regularly communicate in person
• Use resources such as Linkedin, social media and a CRM with purpose to help you forge meaningful connections and networks

Getting back to basics does not mean throwing the baby out with the bath water, it just means that while we integrate new methods into sales, we need to make sure we are still doing the necessary ‘basics’ to keep the sales momentum going. At this point, some of the main things we see social media adding great value in are building networks, getting a message out, getting access to information and opinions, getting your brand out there, and stimulus response activities.

But as yet (and quite possibly never), do I see social media as a replacement to purposeful prospecting, purposeful client meetings, and purposeful business relationships.

The key word here is purposeful. Social media is most effective in sales when it is applied with purpose and in context of a bigger picture and plan. So as we go back to basics, I think we need to question ourselves as to the purpose of our actions. For instance, with more people accessing Facebook and Linkedin are we building business networks that will lead to better business opportunities via qualified contacts or are we just building networks for the sake of showing off a large number of contacts i.e. I have the most number of ‘friends’ syndrome.

So, I ask you these questions:

• How purposeful are your social media activities to your business?

• How can we make social media work for us in business rather than becoming a slave to it?

• How can social media enhance or hinder the sales efforts of business, especially B2B?

The social media phenomenon reminds me somewhat of the early days of the dot.com boom and how businesses were jumping in and riding the wave only to come crashing down, some learning a great deal, others worse for the experience.

I am not suggesting this will happen with social media but perhaps we should hasten slowly and make sure we do not throw out good, sound business practices for the sake of the new.  I urge sales people to continue with the fundamental, basics that still give a real return and begin to integrate, where appropriate, these new tactics into sales push and pull strategies.

Does this mean ignore social media? No, not at all but it does mean that we need to put it into perspective. So, let’s get back to the basics that make us real sales, real money and real relationships with the clients we want to work with.

And remember, everybody lives by selling something.

Sue Barrett is Managing Director of BARRETT.

You may recall that I recently wrote about an international study which reported that if Sales Managers were more frequently and better trained and coached, their sales teams achieved higher performance and results.  In no other type of sales training was a more positive correlation found between frequency of training and sales performance. This article is dedicated to the importance of sales coaching and what you need to do to be an effective sales coach.

Despite popular opinion, the sales profession is very skillful with many technical and interpersonal skills that need to be continuously honed and developed.   Despite this, most sales people are given no formal training or coaching rather they are often left to work out for themselves how to be effective at sales.

Even if they are able to attend sales training, most sales people do not realise their full potential because nothing was done post the training session to get people adapting their behaviours, skills and performance to the new standards.

Why sales coaching matters

• Without systematic, on-the-job coaching post a sales training program 87% of skills that were covered in the sales training program are lost within 30 days
• With systematic, on-the-job coaching post a sales training program the return on the sales training program is four fold.

Lesson: Sales training without coaching is a cost liability rather than an investment.

Is sales coaching just linked to sales training?

In a word, no.  Whether or not coaching follows a formal training program, it is recommended that at least 40-60% of a sales manager’s job should be dedicated to coaching their sales people.

Yet, sales coaching still remains an area that is poorly executed and often ignored.

What is coaching?

Coaching is a process which allows for an individual to strive for excellence in any endeavour through personal insight and purposeful action. At a broad level, the process involves three key elements:

• Feedback: without feedback a person is unaware of the opportunity for ‘change’
• Reflection: relates to what a person thinks about the feedback received; as well as the range of actions they can undertake as a result of receiving the feedback
• Purposeful action: those activities the person may undertake and either adopt the provided feedback or alternatively explain why they will not address the feedback provided

Coaching usually focuses on two key areas of development to achieve excellence: skills and performance.  Excellence in performance is knowing the right processes to apply in the right situation, coupled with the personal insight to know how to apply them wisely.

So, how do we get the best out of our sales coaches in order to be our best?

1. Train your sales managers to be effective sales coaches
2. Supply them with proven tools and frameworks to coach successfully
3. Provide ongoing coaching to your sales managers to be better sales coaches (usually external coaching support works well here as it provides an agenda free focus on coaching only)
4. Make sales coaching a necessary part of the sales manager’s job performance criteria
5. Encourage a coaching culture in your business across all levels

What do you need in your sales coaching tool box?

• A coaching framework that guides you through the various coaching steps – this ensures that people are aware coaching is taking place
• The ability to analyse or assess the development needs of an individual or team
• Coaching communication tools and approaches that help you understand, communicate, and connect with the person you are coaching
• Knowledge about the different types of coaching approaches you can use with people i.e. skills, performance, remedial, strategic, or transformational coaching

• Ideally a sales competency based model and sales process framework that reflects the sales skills, behaviours, and attitudes you need to coach your sales people to.
• Skillful and active communication skills
• A positive, trust based, environment
• Clear purpose and intent about what you are trying to achieve
• Consistency

Coaching can happen in many ways

Here are some examples:

• Joint sales visits: attending a client sales meeting with a salesperson – Set up the pre, during and post stages of your coaching session.  Decide on what role you will take as a coach: observer, joint call participation, or role model.  You need to decide on which role you will play before you enter the meeting so as not to confuse the salesperson or the client/prospect

• One-on-one skills review and action plan: Ideally you would use a competency based model and framework to coach
• Role playing sales activities such as prospecting, client calls, pitch presentations and so on
• Team coaching sessions

4 important points to remember:

1. There are a variety of coaching tools out there, however avoid the one-size-fits-all approach i.e. trying to stretch one tool to fit all situations.  You need a blend of tools in your coaching tool box to be able to adapt to a variety of situations such as personal styles, needs etc.
2. You are not a ‘life coach’ or counsellor either.  This is a very dubious and potentially dangerous area to get into and should be left to qualified, skilled professionals who work specifically in this space.
3. Make sure you make time to coach and let the person you are coaching know that it is a coaching session and nothing else
4. Many of the case studies at the recent OSF2009 conference indicated that a blend of competent internal sales coaching by sales managers supported by external experts in sales coaching was very advantageous to their sales teams’ performance and productivity.

While many sales managers do not have the framework or tools in place to coach with purpose, skillful coaching can be incredibly rewarding and provide huge benefits for the individuals, team and organisation.  It not only makes your sales people perform better, you can also become a better manager as a result.

Feedback from sales managers we have worked with who have learned and applied skillful coaching has been very positive.

“It’s really been the template I’ve structured my sales agenda around with my people. It’s provided a practical approach that’s behavioural based and through the follow up sessions really help embed sustained change and clear direction as to how we achieve goals through prospecting existing or new to business opportunities.”

“How have I changed? – an interesting question. I think I’ve become a better coach, and I enjoy it much more – seeing sales people get great responses from clients when they use your principles is a big buzz for all of us.  I’m a better coach because I’m more focused on what I’m looking for, and concentrate on sales people’s strengths as the basis to start (in the past I was too critical and less supportive).  I believe more now that I can help sales people change (and I have also), and it’s helped me to more clearly identify which areas sales people need help with. I can also better express my own successes as a sales person in my past, as a reference and example of the practices sales people should use – it’s easier to talk specific examples and situations and then relate them to your principles.”

Remember, a culture of coaching is really a continuous improvement strategy.

And everybody lives by selling something.

Sue Barrett is Managing Director of BARRETT.

First of all what does CRM stand for?  CRM = Customer Relationship Management.

The concept of CRM has been around for a long time. The original form of CRM was a manual card system kept by a sales person that usually sat on the sales person’s desk or alongside them in the car.  These client cards sets were very valuable to the sales person as this is where they kept important customer information such customer contact details, key contacts in the company, a running commentary on their activities, personal and product preferences, buying patterns, business connections and so forth.  Each card was a dossier on each client.  To successful, well managed sales people, their client cards were gold.

However, often times, this vital data resided with the sales person alone. The company, the sales person worked for, did not have ready access to this important information and when the sales person left the company more often than not so did the client information, client relationship and sales did as well.

The ‘softwarising’ of CRM for businesses is seen as a major breakthrough in being able to capture important client information and better manage client relationships.  CRM promises faster customer service at lower costs, higher customer satisfaction, better customer retention and ultimately customer loyalty and more sales.  However many companies still believe that CRM is simply software, or technology and the full benefits of CRM are not being fully realised by business.  CRM is much more than just a data-mining tool.

CRM is not (just) technology.

CRM is a business strategy!

Your CRM has the potential to and should be your corporate memory.  It can be the  archeological record of your business.  In fact, if introduced and applied correctly, one of the most significant benefits of having and using a CRM in your business is being able to fully realise and map the true value of your clients as company assets.  Besides the obvious benefits to you and your business, if ever you chose to sell your business, having a CRM with all this valuable information tracked and mapped can be valued and sold for premium.

This trail of information becomes a real asset in itself. A potential buyer can see your business in real client terms and understand the value of the client relationships to the business.  Therefore instead of the wisdom and knowledge going out the door with the previous owner it can be captured and retained with the new owners to be further cultivated and developed.

NB: Not  all data is good data. You must make sure you have the right information in place.  Too many CRM’s are filled with rubbish data and the wrong stuff making them a liability not an asset.

As a CEO, you can’t make the right decisions if you don’t have the right data/information foundations in place.  If you are going to get the best benefits from a CRM strategy and CRM tools you need to know how to you are going to align your key business objectives between your clients, sales people, suppliers and the rest of your business so every piece of relevant information and action adds value to the client fulfillment process.

The interconnectedness of clients to your business can begin to be truly mapped and you will then see how everyone in your business can affect the retention and growth of your clients, not just your sales people.

According to Mark Parker, MD of www.SmartSelling.com and expert in CRM’s and Customer Systems:

“Sales reps often represent the “face” of your company. In order for them to do their part in driving outstanding sales results, they should be empowered to put their best foot forward when representing their company. To do this, a Sales Automation or CRM needs to be in tune with their needs.  Putting their best foot forward is going to mean many things.“

Further to this I would like to add that a CRM should also be in tune with your customers needs helping them have the best experience they can have with you.

What does an effective CRM system look like?

An effective CRM system should be what your strategy needs and wants it to be.  These days you can get access to open source CRM software where you can configure what you want in your CRM so you do not have to be tied to proprietary CRM’s that cannot be customised to your needs.  Also CRM’s do not have to be prohibitively expensive either. Many people have put off getting CRM’s in the past due to their high cost and focus on big corporations.  But now good CRM’s systems are available for SME’s and home based businesses at very cost effective rates.  For instance we use SugarCRM at Barrett which is an open source system we can configure to suit our business needs.
This means you need to think carefully about what you want your CRM system to do and be and who you partner with to make it work for you.
A good place to start is to:

1. Know your business  strategy and key outcomes you want to achieve and work backwards from there.
2. Know your customer, their needs, wants and motives and your path to market
3. Appreciate the length, width and depth of the relationships between the customer and your organisation
4. Understand how you properly manage of all interactions with your customer
5. Know what your sales and service people need to do make sales happen in your business.
6. Aim to build a business system that manages prospects, clients and projects.

Look at what data, behaviours, and outcomes you want to track:

• Client data, sales person activity data, product sales data, effectiveness of marketing initiatives including your website, direct mail/email campaigns, etc.
• What behaviours do you want to encourage and reinforce in your sales and service teams as well as your clients and prospects?
• What do you want to measure by way of lead and lag sales indicators?
• How do you want to communicate data internally and externally?

Important point: you do not want you CRM to turn your salespeople into glorified desk jockeys.  We need to make sure any CRM is easy to use, doesn’t take necessary time away from vital interpersonal sales activities.  If you think your CRM can replace your sales team you will fall short in your efforts.  If your business needs to be in personal contact in some way with your clients you need your CRM to enhance these relationships not replace them.
Here are some ways a CRM system can serve you well:

• Provide immediate insight into prospect and customer leads originating from any channel
• Provide deep visibility into the sales pipeline and opportunity details which quickly produce accurate sales forecasts.
• Allow for a consistent, informed, and personalised customer communication approach i.e.  automated emails relevant to the specific customers
• Give sales people and everyone in your business access to a consolidated view of the customer across your organisation – this will allow everyone in the organisation to know how they can help play their part in taking control of every opportunity and managing it to a successful conclusion
• Encourage, enforce and track best-practice sales methodologies you want in your sales  teams i.e. logging of Lead Indicator Activities such as: # of prospecting calls made, # of client meetings had; # of real deals in the pipeline, # of sales made: # of cross sales made, # of sales made with new clients, # of sales made with existing clients, # of follow customer service enquiries, # of service calls, etc.
• Encourage, enforce and track best-practice service methodologies you want in your customer service and support teams i.e. logging of Lead and Lag Indicator Activities such as # of follow customer service calls made post sales, # of service calls made, # of customer service calls and complaints received, etc.
• Monitor and map effectiveness of have automated sales and marketing activities that are specific to the customers and markets
• Steamline and automate those customer activities that can go online i.e. confirmation emails, automatic emails sent out at periodic intervals for things like renewals for instance
• Map work in progress with clients and staff allocated to client projects
• Have the ability to integrate with your website and keep track of web activity
• Support your entire frontline sales and sales lead management team with the right information they need to quickly and efficiently fulfill all of their daily requirements.
• Deliver knowledge at the point of action
• Keeps vital customer data in the business whether the sales person stays of leaves thus creating a valuable company asset.

Word of caution: Before you even think about integrating Twitter or Facebook into your data mix and CRM, which is a hot topic at the moment, make sure your current data is clean and relevant because if it is not then you will be piling more garbage on an already big garbage heap and there’s no value in that.

Remember CRM systems are tools that should support, enhance and grow the customer relationship by giving your sales team and others in your business access to vital information they can act upon with purpose and in the easiest manner possible.

A CRM should not be an imposition on anyone, a CRM should be a part of your vision to continually improving the relationships with your customer, your sales team and everyone in your business.

CRM is a strategy and way of life not a piece of technology.

Remember everyone lives by selling something.

Happy selling.

Sue Barrett is Managing Director of BARRETT Pty Ltd.

I recently had the opportunity to attend the inaugural Optimising the Sales Force Conference (http://www.osf2009.com.au), along with over 120 high level sales leaders across Australia.  I was privileged to be part of the panel of international and local experts presenting on sales effectiveness where we explored the latest research on sales strategy, leadership, learning and development, sales management, sales people, and current market trends.

This was the first time in Australia we have had the opportunity to come together as a profession and share ideas and discuss important matters moving forward. There have, of course, been industry specific forums held for the profession of selling but not one that brought industries of all kinds together to discuss sales specifically. It’s hard to believe but this was the first time this has occurred in Australia and about time to! It was really about driving a better profession.  Many people are unaware of just how skillful you need to be to run a sales team or lead a successful sales career.

The conference was full of important information and we also had the privilege of hearing from the elder statesmen of strategic selling 78 year old Bob Miller of Miller Heiman fame, who pulled no punches and reminded us of the foundations of our success. We also heard from Tom Snyder who is world renowned for his expertise in creating high performing sales teams.

Over the next few weeks I thought I would share with you some of the insights and findings from the conference in more depth but here is a summary of the topics we discussed and where our attention was focused.  This might give you some insight into where the world of selling is heading.

• Everybody is in sales: there was overwhelming agreement that everyone in business is in sales – You are either selling or supporting someone to sell.  If your people are disassociating themselves with sales then you need to let them know in no uncertain terms we all live by selling something and they had better get with the program or get out.
• New customer behaviours: the economic downturn has changed how customers conduct business and interact with suppliers, while this comes as no surprise there are now new customer behaviours we need to contend with.  In particular, the increase in risk aversion was cited as being one of the most contentious issues.  This risk adverse approach is leading to indecision by clients meaning that rather than losing to a competitor, nothing happens.    So it is critical that sales people are able to work more strategically with clients and challenge them to help them make good decisions moving forward.  This requires a more assertive, confident style of sales person.
• The Challenger Sales Person: research by The Corporate Executive Board Company reported that we need to find and cultivate the ‘Challenger Sales Person’ who is best suited for these markets moving forward.  Some of the key characteristics of these people are that they always have a different view of the world, understand the customer’s business, love to debate, and challenge the customer’s ideas and perspective; in short they are at their best as commercial educators and bringers of new ideas and innovations to help businesses function better.
• Coaching, coaching, and more coaching: At least 40-60% of a sales manager’s job should be dedicated to coaching their sales people.  Yet it still remains an area that is poorly executed.  We were shown excellent case studies which demonstrated the financial return of sales coaching.  Many of the case studies indicated that a blend of competent internal sales coaching by sales managers supported by external experts in sales coaching was very advantageous to their sales teams’ performance and productivity.
• Role clarity and clear expectations: make sure salespeople and sales managers understand their roles and what is expected of them.  Make it explicit and ensure people are adequately skilled to carry out their responsibilities.
• Clear the dead wood quickly: sales managers spend too much time with people who produce too few results.  Focus your attentions on those people who are already showing they want to do well and are actually doing their job.  You have more hope in getting to your better performers to be much better producers than wasting your time on people who will never perform.  As Tom Snyder said “Sales managers are guilty of thinking they can ‘save’ these people from themselves” – his advice is “get rid of them now!”
• Insight and awareness: despite all the skills, tools, and processes around salespeople and sales managers need to be able to develop their own internal guidance and support systems.  The ability to reflect on our own performance, be resilient, show empathy, and work ethically was high on the agenda. Personal insight and making a personal commitment to the corporate objectives is also important for ongoing success.
• Connect strategy to activity: your strategy should translate into practical actions people can apply and see results from.
• Marketing and sales unite: marketing needs to support sales and sales must support marketing.  There is no in between.  Hugh McFarlane from MathMarketing stressed the importance of making sure that all touch points and messages are in alignment.
• Really connect with your key clients: Bob Miller pressed home the importance of being truly connected to your best clients, however he said you cannot have a strategic relationship that is only one way.  Your clients must want it as much as you do and there is mutual agreement on the conditions of the relationship. He stated that most companies are very poor at managing this aspect of their business and it leaves them vulnerable to losing major accounts.
• Corporate assets: today’s reality is that in addition to people, property, plant equipment, and IP some of the biggest and most often overlooked assets are companies strategic accounts.  They need to be on the agenda of the ‘C’ suite i.e. the CEO, CFO, COO, etc.

I hope that this provides you with some valuable information and insights into what is happening in sales today and into the future. I will go into more depth in the ensuing weeks about these and other topics we covered.

Happy selling.

Sue Barrett is Managing Director of BARRETT