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What is the ideal sales assessment tool to use when recruiting sales people? Part 1

January 13, 2011 in Attitudes & Behaviours, Call Reluctance, Recruitment, Sales Assessments

For many years people have been searching for the perfect sales assessment tool.  Why?  Because identifying and retaining high performing sales talent continues to elude many organisations.  It has become even more important with products losing their competitive edge and sales success becoming hinged squarely around the capabilities and performance inputs and outputs of sales people.

I have been using psychometric assessments as part of my work for more than 20 years now.  In my business alone we have assessed more than 70,000 people in sales, sales management and leadership roles using a variety of high quality assessment tools for both selection and development purposes.  The tools we use are designed to measure Cognitive Abilities, Personality (i.e. sales, leadership and everyday styles), Motives & Values, Call Reluctance and Coping & Derailing Behaviours.

We favour well researched, well built, validated assessments constructed by professional psychometricians because, like diagnostic tools used in medicine and other scientific applications, good assessments are calibrated to measure specific aspects of self.  However, like most instruments they are not perfect.  We are always looking at what’s happening in the world of assessments and we can report that there are thousands of assessments promising all sorts of things.  However, we find that many of them are junk and nothing better than a Cleo quiz which adds nothing to your selection process.

All this research has also revealed that the perfect sales assessment tool does not exist.  Trying to measure all the things we want to know about sales people and leaders with one assessment is unrealistic and virtually impossible.  However, what we do know is that the latest research into modern sales assessments is showing subtle difference between:

  • Influence and Negotiation
  • Impact and Credibility
  • Initiation and Social Leverage
  • Resilience and Self Belief

We are now seeing more purpose built sales assessment tools that are designed to measures key qualities such as:

  • Creating Compelling Relationships – measuring the preferences the individual has when working with clients and developing relationships
  • Perceptive Reasoning  – measuring how the individual processes information and makes judgments relating to client issues and solutions
  • Channelled Energy – measuring the motivators and levers which drive the individual to succeed
  • Contact Initiation – measuring the emotional response to prospecting and the amount of initiative, energy and drive devoted to proactive prospecting as well as the amount of energy spent in coping with inhibiting influences such as fear

Effectively predicting sales success is critical to any business’ success and using well designed, rigorous psychometric assessments as part of a sales selection process can really boost our chances of finding and retaining the right sales people for our business.  However, many people look to psychometric assessments as the panacea, the quick fix, the one source of information that will give them the answer to the question ‘How can I tell if this person will sell and make me lots of money?’  This too is a mistake.

Therefore, to get the most value out of psychometric assessments when applied to your sales selection process you might like to consider these important points:

1.    Use as part of a selection process: Psychometric assessments should be used in concert with other validated selection tools such as structured behavioural interviews, competency based simulation exercises and structured reference checks where findings can be cross referenced against core criteria that have been established as relevant to the job and culture in question.

2.    Predictive Ability: Psychometric assessments should account for no more than 20% of your decision making criteria.  They can never be 100% predictive of performance and if anyone claims an assessment, by itself, can have predictive ability over 60% they are not being truthful.  Sadly, many people rely on overly simplistic grid type assessments that are not predictive of sales success nor purpose built for sales recruitment and are even less reliable than ‘gut’ feel.

3.    Purpose Built: Use recruitment grade psychometric assessments that have been purpose built to measure specific qualities, abilities or attributes.  Quality assessment tools will present information and inform you of the following:

a.    Relevant: Make sure the assessment(s) is designed for use in selection for a ‘normal’ (rather than clinical) population, is calibrated to the appropriate level (e.g. management, supervisory, entry level) and has occupational context i.e. sales.
b.    Practical: Make sure the test/questionnaire is easy to administer, undertake and score.  Check what facilities and equipment are required to complete the assessment and how quickly reports can be generated.
c.    Technical quality: Technical information is typically presented in a test manual and hence, the absence of a test manual should raise some doubts.  In terms of technical properties, you need to consider: Reliability, Validity and Norm groups (these are common technical terms used in psychometrics).  All genuine assessments will provide this data. Wading through statistical information can be dry and confusing for some people.  If that includes you, seek the assistance of a Psychologist or other person familiar with the correct use of psychometrics.  If you decide to ignore technical evidence, because it all seems too hard, it could be at your peril.

4.    What to measure: You are unlikely to get all the information you need from one assessment.  There are a variety of assessments you can use in isolation or in combination and you need to select the ones that will determine what you need to measure for your role.  For example:
a.    Cognitive Abilities – verbal and numerical reasoning, conceptual reasoning, critical thinking, mechanical reasoning, etc.
b.    Personality – everyday preferences, personal and learning styles, self management, team orientation, ambition, etc.
c.    Motives & Values – what makes people happy at work, what drives them, what makes them unhappy.
d.    Coping & Derailing Behaviours – learned behaviours and attitudes that can adversely affect sales and leadership performance when under pressure or operating from a fear or frustration.

5.    Cost: cost will inevitably be a consideration.  In an ideal world you would test everyone with every relevant assessment, however that is not realistic for most businesses.  If you have simple screening tools which you use in conjunction with resume and telephone screening this can be useful as long as they are measuring the right things for your role and business.  However, these simple tools, while cheap, are not usually robust enough to give you the real detail you need to make informed decisions.  Most businesses reserve the more stringent psychometric assessment process until after they have developed a short list of candidates who have been through the initial screening parameters and a thorough Behavioural Interview.  By doing it this way you can manage your costs well.  A number of our clients use assessments as a mandatory part of their selection processes and incorporate this information across all the findings.  This saves them time and money in the long run.  So, balance the cost of including psychometric tools in your recruitment process against the cost of one or more poor selection decisions.  Which bill would you rather pay?

Getting it right when it comes to hiring your sales team is critical. A successful sales person will not only enable your organisation to ride out the economic uncertainty but will ensure you are ready to seize the opportunities that present during the recovery.  As your sales teams are the primary interface between your organisation and your clients, it’s only when you get that interface right that you will achieve true competitive advantage.  Using a robust psychometric assessment process as part of your selection strategy can really assist you.  Next week we will discuss the different types of sales assessments available to you, and show you how and when you should use them.

Remember everybody lives by selling something.

Author: Sue Barrett, www.barrett.com.au

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Are your sales people at risk of leaving?

January 5, 2011 in Recruitment, Sales Planning, Strategy

How many of your sales people are thinking about a career move right now?

How many of them have come back from their holiday break wondering if they are in the right role or company?

Sales people are one of the highest “at risk” groups in terms of turnover (average of 26% compared to the national average of 14%).  Some industries have sales staff turnover up into the 70-80% range i.e. high churn call centres.

Some of the reasons sales people give in their notice is because:

  • they have not had the success they had hoped to achieve and have not attained their financial goals,
  • their capabilities did not match the job,
  • they are not getting adequate support by way of clear goals and direction, adequate product training and/or sales management support,
  • they feel discontented, and what was promised by the company was not the reality they came to know,
  • they are burnout through not having enough holidays (especially true for high performers),
  • poor leadership and poorly executed strategy have left them feeling disengaged and frustrated, or
  • they do not feel suited to a sales career.

High sales staff turnover is a costly problem.  Having sales staff on a company conveyor belt can lead to poor customer perceptions, poor service and the erosion of your brand.  This can further impair your recruitment of good staff and make it even more difficult to find good sales people.  Therefore, it makes good sense to manage this risk, maximise alignment and legitimise and protect an investment in sales performance improvement.

So how do we reduce high sales staff turnover?

One significant way is to improve Job Match.  Job Match is about clearly understanding what the job requires and what type of person best matches that job, then matching the job and the person as accurately and closely as possible.  This means not putting ‘just anyone’ into the job.  However, many people do so out of desperation but that desperation has costly consequences as you will see.

A significant study reported by Harvard Business Review showed how Job Match significantly affects staff turnover in sales teams.  The study looked at traditional ‘high turnover’ industries as well as traditional ‘low turnover’ industries. They compared sales staff turnover when Job Match was used and when it was not used.

Here are the findings:

HIGH Turnover Industry – Sample Size: 13,102

People with Job Match:
- % who quit or were fired after 6 months = 24%
- % who quit or were fired after 14 months = 28%

People without Job Match:
- % who quit or were fired after 6 months = 46%
- % who quit or were fired after 14 months = 57%

LOW Turnover Industry – Sample Size: 5,941

People with Job Match:
- % who quit or were fired after 6 months = 5%
- % who quit or were fired after 14 months = 8%

People without Job Match:
- % who quit or were fired after 6 months = 25%
- % who quit or were fired after 14 months = 34%

You can see quite clearly that using Job Match has a significant impact on sales staff turnover.  Job Match also affects job satisfaction and engagement.  For instance, job satisfaction and engagement (i.e. workforce alignment) can account for up to 23% difference in productivity.

Besides Job Match, what else can you do to ensure healthy sales staff retention?

Sales is a particularly challenging career.  In practically, in no other profession are mistakes or a lack of aptitude punished so mercilessly as in sales.  A deal is either concluded or not – there is no such thing as partial success.

In short, select wisely and help your people lead healthy sales careers.  This way you may reduce unnecessary sales staff turnover, have a healthier sales business and much happier sales people.

Remember everybody lives by selling something.

Author: Sue Barrett, www.barrett.com.au

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A Time for Reflection and Renewal

December 16, 2010 in Attitudes & Behaviours, Success, Tips

As this year comes to a close, I find myself reflecting on the last 16 years in my own business.  A lot has changed, yes, but many things have remained the same too.  On 9th January 2011 my business will be 16 years old.

While anniversaries and birthdays are celebrated differently all over the world, a common thread is that they are often marked with a celebration or a rite of passage.  So, to mark our 16th year in business, we would like to share with you 16 key lessons we have learnt since the business began.  While there are many more than 16 lessons learnt, we thought it fitting to have one for each year.

Lessons learnt over 16 years

  1. Values
    Define your values and what you stand for; what is acceptable and what is not in your business and for you.  Make your values a part of your daily work habits, your charter and your selection process when hiring people.  It helps you to know when to say ‘yes’ or ‘no’ to trivial or important matters.
  2. Leadership and Humility
    Central to management and leadership are trust, respect and openness; listen and learn from your staff, clients, mentors and guides and adjust yourself on your journey to become a proficient, effective leader; build a bridge and get over yourself – don’t let your ego get in the way; follow through; don’t assume anything; be available and responsive; it is important to remember that helping others helps you.
  3. Strategic Planning
    Is your vision viable?  Can it make money and be self sustaining?  Once you have decided to move forward, build a plan.  From top to bottom and back up again – strategic to tactical.  Review it on an ongoing basis not just once a year; involve all staff in its development; make it actionable, accessible and relevant to every role in the business.
  4. Pick Your Counsel Wisely
    Find those people who understand you quickly and easily, who can paraphrase and verify what you have just said.  They should bring in different perspectives and help you see links and gaps you may be unaware of.  Don’t take them at face value – check that their ideas are valuable and valid – put their comments through the ‘fact versus effect’ filter to see if they are being genuine or not.  And don’t pick too many at once because listening to too many people only creates confusion and indecision.
  5. Managing Setbacks
    Always confront and resolve issues straight away, as they only get worse when ignored.   Never see yourself as a ‘failure’, and always try to learn from your mistakes.  You can never fail and succeed as a whole person: you can only fail or succeed at the things you do.  Don’t be afraid to take risks – instead take calculated risks, so if your new idea or initiative back fires you haven’t lost everything in the process.
  6. Teachable and Transferable
    Build your products or services so they can be easily taught and transferred to your team, and in turn, they can easily sell and deliver them to your clients directly or via channels.  And make sure it is always in language your clients can understand.
  7. Trust
    Even when things are not going the way you want them to you need to trust your vision and have faith in yourself and others that you will come through.  Remember, people buy from people they trust.  Trust supersedes like.
  8. Passion
    Without passion you just won’t have enough energy or desire to make business success happen.  Staying focused is crucial.  Think as big as you like then set clear goals and ‘see’ yourself achieving them.
  9. Self Mastery Rather Than Success
    If we focus on enjoying rather than proving ourselves we value mastery rather than success, effort rather than outcome, and the relationship rather than approval.  Our journey to self mastery is ongoing on every level.
  10. Your Health and Time to Reflect
    It’s worth it.  Look after yourself and make sure you take care of the whole person – exercise, diet, rest, get variety, take holidays, etc.  Because if you don’t then you are no use to anyone especially yourself.  Take at least 5 minutes each day to sit quietly and reflect.
  11. The Principle of Exchange
    We all exist because we are exchanging something of value.  Knowing how to communicate that value so others may appreciate and understand what you bring is critical.  Be clear about the value you bring to any relationship whether it is business or personal otherwise you may create confusion about its true value.
  12. Worthiness
    We are all worthy, whatever our station in life.  Our worth is not measured by what we do.  We are worthy just because we exist.
  13. Creativity and Innovation
    Create something new, think outside the box, challenge prevailing views and attitudes, and don’t let yourself be bullied.  Read outside your area of expertise to see how others learn, lead, make decisions, function and work – look at how it may apply to you and your business.  Learn to be flexible and open minded.  Trial new initiatives and see if they fit your business.
  14. Application Rather Than Theories
    Don’t get hooked on only one way of doing things as most theories don’t hold true in real life.  You need to be able to use a mixture of ideas, theories, processes and models.  Always have a full ‘kit bag’ of ideas, processes, resources, etc. that you can draw upon, and learn how to use them when you need them in life; take bits and pieces and apply them; trust your common sense; be prepared to make mistakes and learn from them.
  15. Get a Reputation
    If you don’t have a reputation, align yourself with someone who does.  Or put your business up for reputable awards i.e. Small Business Awards, etc.  It’s worth it just for the audit process itself.  And, who knows, you might even become a finalist and maybe even win.  There’s nothing like an award to elevate your reputation.
  16. Courage
    Check ‘what am I here to do?’ and have courage in the face of adversity – stand up for what you believe in.  Remember, courage doesn’t always roar sometimes it’s a little voice inside your head that says I’ll try again tomorrow.

To all our readers, supporters and business colleagues, thank you for your patronage.  The team at Barrett wish you all the very best for 2011 and look forward to sharing many more insights, research, findings and tips on how to lead an honourable, healthy and prosperous career in sales.

Remember everybody lives by selling something.

Author: Sue Barrett, www.barrett.com.au

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The Yin Yang of Selling

December 9, 2010 in Sales Assessments, Sales Leadership, Sales Relationships, Sales Skills, Sales Talent, Value Creation

In the 20th century the emphasis on B2B selling had a distinct aggressive ring to it.  So much so, that you could walk down the halls of many businesses and think that you were involved in big game hunting.  Many of these teams saw selling as an extreme sport, or more precisely, Big Game Fishing or Hunting.

  • Customers were ‘Targets’.
  • Getting a sale was referred to as ‘the Kill’.
  • Customers were regarded as objects to be possessed or trophies to be placed in their cabinet; to be shown off and admired (perversely so) like stuffed animal heads on the wall.

Little regard was really paid to building genuine relationships and developing real value.  It was in essences an ‘us’ versus ‘them’ approach.  And if you tried to develop deeper relationships it was seen as wimpy and soft.  For instance, I can recall hearing of the death of one of my long standing clients, who died tragically in a plane crash when I was working as a recruiter many years ago.  Upon hearing the news I found myself crying quietly at my desk at the loss of this lovely man.  A few minutes later one of our senior managers found me and asked me why I was crying, and when I told him why, he just said “get over it, it’s only a client”.   Extreme I know, however I have overheard many sales people speak about their clients in disparaging and disrespectful ways with little regard for the value of genuine relationships built on trust and transparency.

So why title this post as the Yin Yang of Selling?  Yin Yang are complementary opposites that interact within a greater whole, as part of a dynamic system.  Everything has both yin and yang aspects, but either of these aspects may manifest more strongly in particular objects, and may ebb or flow over time.   There is a perception (especially in the West) that yin and yang correspond to good and evil (not respectively).  However, Taoist philosophy generally discounts good/bad distinctions and other dichotomous moral judgments, in preference to the idea of balance.

I propose that the profession of selling has been out of balance for some time and to its detriment.  If we look at how selling has been evolving over the last 50 years, we can see a distinct shift occurring from the aggressive one sided approach where conquest was king (too much yang) to a more delicate balance between the masculine and feminine aspects of yin yang.

It cannot be denied that selling requires yang – a proactive, focused, go-out-into-the-world and find opportunity approach (prospecting) however, selling must now be balanced with the ability to genuinely listen and respond to the subtleties of more complex relationships which involves patience, nurturing, and dealing with ambiguity which is yin.  Think of the types of conversations you now need to have with your prospective customers where listening, questioning, resolving problems, collaboration, empathy and understanding are encouraged.

This is not just a fantasy.  In reviewing the latest research on elite sale performers, gender differences in sales capabilities were found; women rated significantly higher than men on 5 of the 7 emerging competencies which gave them a distinct advantage in selling.  Some of these capabilities included:

  • listening beyond the product needs;
  • engaging in self appraisal and continuous learning;
  • orchestrating internal resources;
  • aligning customer/supplier strategic objectives; and
  • establishing a vision of a committed customer.

These capabilities are in the realm of yin.  May I suggest that we encourage more yin yang to assist us on our sales  journey and encourage more success!  To find out how you can achieve this in your team or career, have a look at the sales training that we provide for sales people, sales teams and sales leaders.

Remember everybody lives by selling something.

Author: Sue Barrett, www.barrett.com.au

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Why hiring or keeping the 600lb sales gorilla is a mistake

December 2, 2010 in Attitudes & Behaviours, Communication, Culture, Ethics & Values, Performance Management, Recruitment, Sales Leadership, Sales Management, Teamwork

For many years the legend of the 600lb sales gorilla or Alpha sales superstar has been strutting the hallways and boardrooms of businesses.  Often revered for achieving top of the league ladder sales results, yet feared by many for their aggressive, manipulative, ego centric, demanding, intimidating antics, countless CEO’s and sales managers have allowed these sales prima donnas to remain in their sales teams but at what cost to their sales team and their business?

Too scared to confront them about their behaviours or sales tactics for fear of losing their sales contribution, many sales managers and their sales team have simply suffered in the presence of these sales bullies.  In my many years of working with sales teams and sales managers I have met my fair share of sales gorillas and their distressed managers and sales teams.  Here’s what I have observed:

  1. They have the ear of the Managing Director/CEO who thinks they can do no wrong.
  2. They won’t let the business anywhere near their customers.
  3. They tell tall tales about their legendary sales conquests.
  4. They refuse to be coached, counseled or trained.
  5. They are very demanding, always complaining about the lack of resources and taking up the time of countless people to do their bidding, leaving the other sales people to fend for themselves.
  6. They often exhibit bad behavior, and may be heard swearing or making inappropriate comments to their colleagues or other staff who are often too fearful to report them (see point 1).
  7. They can engage in questionable sales tactics, yet claim that they are pristine and operate with the utmost of integrity.
  8. They claim to know a lot of people and be very well connected.
  9. They use actual or implied intimidation to get their way with internal team members.
  10. They use charm and manipulation to get their way with key stakeholders.
  11. They act with righteous indignation if you question anything about them.
  12. They don’t think they need to comply with company policies so often refuse to complete paperwork or keep up to date CRM’s if they think it’s a ‘waste of time’.

You only have to watch the movie ‘Glengarry Glen Ross’ to see your fair share of sales gorillas.  This type of sales culture was revered by a number of industry sectors in the 70’s and 80’s, including real estate, car sales, stock broking, etc.  Watching it makes me feel ill, but many sales teams got off on this and even use ‘Glengarry Glen Ross’ as a model of how they should sell in some quarters today.

Yet most people watching ‘Glengarry Glen Ross’ or meeting their very own sales gorilla feel repulsed by them.  Often very wary of them, others wonder why they have to tolerate them and why management won’t act.  Truth is these sales gorillas have never been pulled into line.  Their outstanding sales results have somehow bought them immunity from behaving in a civil manner.   The smell of money they can bring in has condoned behaviour that has often outweighed the need to act ethically and uphold team values and respectful behavior.  Their bad behavior has been allowed to manifest without restrictions, ‘oh let him get away with it.  Look at the results he pulls in’.  These sales gorillas are the direct result of poor quality leadership, lack of clear standards and bad decision making.

What most businesses do not know is that these sales gorillas, for all their so called sales success, actually fall well behind the real sales superstars in terms of achieving high level and sustainable sales results who, by contrast, are open minded, curious, collaborative, team oriented, open to learning and aim for partnerships on every level.  And these real sales superstars are humble too which is a direct contradiction to the behavior of the sales gorillas.

  • So are you currently letting fear hold you and your team hostage by allowing your sales gorilla to persist?
  • What would happen if you got rid of the sales gorilla?
  • How would the rest of your team respond when they left?
  • What would happen to sales and the clients?

In my experience when the sales gorilla finally departs, there is an initial sense of shock which quickly gives way to relief and the opportunity for the sales team to really pull together and prosper.  The biggest fear of losing the sales gorilla’s sales power and their clients doesn’t eventuate in the vast majority of cases.  In fact it is often revealed that the clients are happy the sales gorilla has left and look forward to a more open and prosperous relationship with the company concerned and sales grow even more.

I am not suggesting that most leaders intentionally hired these sales gorillas or intended for them to manifest however, without clear codes of conduct or values and a proper understanding of what you want by way of ‘good sales performance’ you cannot hire or develop the right sales people to do the right things in the right sales culture.

In his book ‘The No Asshole Rule’, Leigh Buchanan writes about bosses behaving badly.  Its thesis – don’t hire jerks, has become public policy in many companies around the world.  I would suggest we think clearly about what we want manifested in our sales teams and take a leaf out of Leigh’s book and make sure we employ ‘The No Asshole Rule’ and don’t hire sales jerks.

Remember everybody lives by selling something.

Author: Sue Barrett, www.barrett.com.au

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