Sales & Sales Management Expertise

7 Effective Sales Management Steps to Take NOW

Tags: success formula, managing sales teams, effective sales management

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Sales management, sales leadership and sales presidency require special diligence this time of year. Actions taken now will assure successful sales results in the coming year. In order to transition smoothly, here are 7 sales management steps that should be completed before the end of the year.  

By now, you should have:

  1. Evaluated the individuals on your team for the year. Unless you have anomalies at the end of the year, your team’s individual outcomes and results are pretty much set.
  2. (Based on the evaluation) Begun to have meetings with all your people. The meetings are similar to performance reviews, but they’re not the corporate type of review that gets put in the HR file.  These reviews put your team members in 1 of four groups. You then have a discussion about what group they are in.
    1. Met or exceeded sales goal and sales activity requirements group
    2. Met or exceeded sales goal but currently not at sales activity targets group
    3. Met or exceeded sales activity targets but failed  to hit sales targets (below 100% is failing)
    4. Has not met sales or sales activity targets

(If you would like information on what the conversation should sound like for people in each of these groups, call me or text me at 513-226-3913.  If I don’t answer, just leave a message with your name, mobile number and email requesting, “Where’s Walter?” information.  You can also email me at tony@anthonycoletraining.com.)

  1. Reviewed performance, actual effort and execution effectiveness results against targets for the year.
  2. Assessed where the choke points are for people on the team who are not succeeding. To do this, you look at the conversion ratios in your sales success formula that was built last year and reviewed every quarter.  (Don’t have a success formula?  Click here –> Success formula download)
  3. Revised the success formula for 2017 based on each person’s commitment to performance via the “extraordinary discussion”. (Haven’t had that discussion? Ask Jeni at Jeni@anthonycoletraining.com to send you that information.)
  4. Conducted an offsite where your salespeople identify personal goals, translate the personal goals into a personal income requirement and translate that into a work plan that you will follow up with every quarter. (Yes, we have information on what that offsite should look like.  Even though it’s late to be doing that now, conducting the session in January would be better than not conducting one at all.  Let us know if we can help: 513-791-3458)
  5. Talked to your HR department about additional FTEs for the coming year to grow your sales team and replace the people that are not performing. Think about this: Suppose you had to hire better salespeople (3) but can only grow your sales team by 2 – who would you let go?

These 7 things are the minimum functions for sales management at this time of year.  Failure to execute on these 7 steps will pretty much guarantee that your next 12 months will look like the past 12 months:

  • Only a few people will meet or exceed the goal
  • Most of the people will miss the goal by at least 10% and some as much as 20%
  • The bottom 33% of your sales force will represent less than 5% of your new business revenue
  • Salespeople that fail will continue to make excuses
  • The salespeople that had a “one-off” great year will coast in the next year and live off the laurels of this year.
  • Your top performers will continue to be frustrated by lack of attention, support and recognition for their outstanding contributions.

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28 Sales Traits to Identify When Hiring Better Salespeople

Tags: Sales DNA, managing sales teams, managing salespeople, top sales performers

So, what are you looking for in your next great sales person?  I guess the most important question is this: Are you really looking for the next great sales person or are you looking for a sales person that will fill the FTE allocation?  Will you settle for someone that is “at least as good as” your average sales person?

No one in their right mind would say “yes” to those questions, but if your sales organization is large enough, the data would support that your hiring practices are getting you exactly that.  According to Geoff Smart (Topgrading), 75% of the hires made are not as good as or only as good as the person they are replacing.

If we were to look at the 80/20 power curve in your organization, we would probably find out what we normally do – that about 36% of the sales force is responsible for over 90% of your sales results.  So, what is the other 64% doing?  How did they end up on your sales team?

In order to get the right people, you have to know what you should be looking for.  In conjunction with Objective Management Group, we have studied our clients.  We have evaluated their top performers and non-performers.  Looking at over 100 data points, we know what separates those who will sell from those who won’t sell.  Do you?

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Ignore the words and numbers.  Just look at the sea of green which is representative of performers and compare that with the sea of red representing non-performers.

Here is the list we’ve come up with after analyzing the sales teams of 5 of our clients in the financial services/banking business:

  1. Strong desire for success in selling
  2. Strong commitment/motivated to do everything possible to succeed in selling
  3. Trainable
  4. Has a strong figure-it-out factor
  5. Possesses Sales DNA Competencies
  6. Has no need for approval
  7. Controls emotions
  8. Has supportive beliefs
  9. Comfortable discussing money
  10. Handles rejection
  11. Hunter
  12. Sales posturing
  13. Consultative seller
  14. Qualifier
  15. Closer
  16. Follows consistent sales process
  17. Compatibility with top performer profile
  18. Prospects consistently
  19. Schedules meetings
  20. Reaches decision makers
  21. Recovers from rejection
  22. Does not need to be liked
  23. Comfortable talking about money
  24. Has a strong self-image
  25. Loves to win
  26. Motivated by recognition
  27. Loves competing with others
  28. Rejection proof

What I find interesting about some of the items is that there are a few that have a significant variance between the performers and non-performers:

  1. Commitment – The commitment to succeed in selling is 77% GREATER in performers than in non-performers.
  2. The trainability in performers is 34% HIGHER.
  3. The hunter skill in performers is 112% HIGHER.
  4. Performers have a 48% HIGHER figure-it-out factor.
  5. Performers score 119% HIGHER in handling rejection.
  6. Those that hit sales goals score 87% HIGHER in sales posturing
  7. This one blows me away – neither group is particularly strong in closing: non-performers have only 13% of the closing skills required.  Even though top performers OUTSCORE their counter-parts by 150%, they still only have 33% of the required closing skills.

How do you explain that last item?  Look at the others strengths:  Desire, commitment, trainability, hunter, figure-it-out qualifier, consultative, posturing… they are REJECTION proof! 

The purpose of this post is to get you to think more seriously about what it is that you really know about the candidates you are looking to hire as well as what you really need to know before proceeding with the interview and hiring steps.

Any questions? Please call or write:
513.226.3913 tony@anthonycoletraining.com

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Chicken Little and The Impact of Dol (pt.1)

Tags: managing sales teams, DoL regulations, managing advisors

chickens.jpgAs the story goes, Chicken Little gets hit on the head and declares the sky is falling.

Last spring, the Department of Labor passed new fiduciary regulations on the financial advisory business, and since then, there have been an untold number of articles written about the impact on advisors, the industry and consumers.  Several of these have stated that:

  • Trillions of dollars will saved in investor commissions because advisors will soon be held to a much stricter fiduciary standard that affects transactional incentives.
  • Advisors will lose ½ of their revenue because what was a solid investment recommendation and seen as ‘suitable’ will soon be considered conflicted advice because it paid them commission.
  • The industry is in turmoil as it attempts to figure out how to meet DoL regs, hold on to high-performing advisors and effectively make-up the assumed lost revenue.

The sky is falling?!?

I read Bank Investment Consultant at least 3 times a week.  The publication and its editors/authors do a great job of keeping people connected to the industry in the loop on the latest changes, trends and thought leadership.  Lee Conrad, Editor of Bank Investment Consultant, recently wrote an article titled:  Bank Advisers:  Prepare to Cut Your Book by Half

Here are a couple of excerpts from the article:

The fiduciary rule will require most bank advisors to trim their books of business to a much more manageable level. How much is really a guessing game at this point. But, for many advisors, especially those who have focused on transactional business, it will be significant.

This was just one of the discussions from our last Industry Leadership Forum in Denver. We hold these meetings in conjunction with Stathis Partners as small, invitation-only gatherings for industry execs to discuss the top issues on their radar screens.

So, how many clients can an advisor reasonably manage when they are acting in a fiduciary capacity? The numbers bandied about in our meeting were in the low hundreds: about 200 give or take.

***

REALITY CHECK
How many clients do advisors really have? Consider some research we did earlier this year for our annual Top Program Managers ranking. In addition to asking each nominee how many advisors they had on their teams, we also asked how many households their teams served. We've never used those results until now, but the average was 750 client households per advisor. The median was a bit lower--about 550--but many of the individual programs had well over 1,000 clients per advisor.

***

TEE-UP THE CROSS SELL
Here's one more assumption, on my part, that I feel pretty good about: Advisors don't want to lose too much of their pay. If they generated, say $200,000 in annual production in 2016 and next year they find themselves with a book of business that's been cut by half, the natural move for them will be to get more profit from each client. (Just how to segment a book was another discussion at our forum, which we'll write about in a future installment.)

So, here is the first thing you should keep in mind about Dol and its impact:

It’s easy to get caught in the DoL quicksand.  Two friends of mine who also happen to be well -respected people in the industry, Michael Graham from Midwest Securities Trading Company and Kevin Mummau from CUSO, are not panicking.  Actually, we all seem to agree that this is a great opportunity for advisors:

  • The money hasn’t gone anywhere.
  • Advisors that aren’t very good at really advising clients and struggle with “fiduciary” standards will leave the business.
  • The solutions to the “problems of revenue loss” already exist: financial planning and risk management products.

So, is the sky really falling? We will answer that question in our next post!

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Habits of Highly Successful Sales Managers

Tags: sales management, managing sales teams, sales habits, highly successful salespeople

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The sales management activities that we are performing today are creating the results we are achieving today.  What activities are you doing now that are creating your current unsatisfactory results?  It is up to us as sales leaders to set higher standards for sales behaviors and hold people accountable so that we get better results.

It is a given that successful sales management requires contributions on many levels:  skill, time, effort, effective execution and systems and processes to support coaching, performance management and recruiting.

To help understand what makes a successful sales manager, it is helpful to review the Habits of Highly Successful Salespeople. I recently asked the participants of a workshop to identify and share those habits that they believed contributed to the success of their best salespeople.  Below are some of the common habits identified:

  • Develops great relationships
  • Networks regularly
  • Good time management
  • Gets to decision makers
  • Is selective in prospecting
  • Provides exceptional customer service

Then I asked them to talk about the flip-side of the list – those habits that inhibited or hurt a salesperson’s ability to close more business.  Below are some of the habits they identified:

  • Sells on price
  • Inconsistent prospecting
  • Procrastinates
  • Presents to the wrong people
  • Sells to anyone that fogs a mirror
  • Poor prioritization
  • Is too comfortable

How about you and your habits?  What are those habits that you can point to that you KNOW have a positive impact on your team’s sales behaviors and results?  Here are some that I observe and hear about:

  • Coaches: in-the-moment to get a deal closed
  • Reports sales results
  • Makes joint calls
  • Sets goals
  • Conducts regular sales meetings
  • Reviews and reports pipeline

This is a good list and with some additions, it can become a great list when we identify the skills of a great Coach, one of the most critical roles of an effective sales leader.  To examine what else you might want to consider, take a look at the following list of elements necessary for successful coaching:

  • Debriefs sales calls effectively
  • Asks quality questions
  • Controls emotions
  • Allows salespeople to fail
  • Implements and manages the execution of a consistent sales process
  • Motivates when coaching based on individual/personal goals
  • Coaches to improve skill and change behavior
  • Gets sales people to follow through on commitments

It’s not enough to just have the skill.  In order for managers to be successful at having a sales team built for growth, the manager must be in the habit of using those skills.

Being an extraordinary sales manager is grueling and time-consuming.  It requires attention to detail, the ability to have tough conversations with those who are not meeting their numbers, the desire and commitment to grow yourself and your salespeople, consistent activity and patience.  Like the coach of a winning team or conductor of an extraordinary symphony, you have the ability to positively affect the success and the lives of your salespeople and company. 

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Desire and Performance Variability

Tags: managing sales teams, desire for sales success, managing salespeople, variability in sales performance

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“What you can conceive and believe you can achieve.”  - Napolean Hill

This is so obvious that any meaningful information could probably be expressed simply by stating:

If you have people with various levels of desire for success in sales, you will have variability in performance!

Done. 

Not really, but this isn’t going to take a long time either.

Many years ago, I heard Mark Victor Hansen (author, speaker and all-around good guy) present to the Cincinnati Association of Life Underwriters.  It was at our annual conference and he was our keynote speaker.  His topic was “Visualizing is Realizing.”  During his presentation, he made the comment, “Motivation is an inside-out job.”  I wrote that down in 1990, and I’ve used that phrase over and over again in our 23-year history as a company.

Time and again, sales managers, sales executives and presidents of companies ask me, “Tony, how do I keep my team motivated?”  I tell them that they cannot do that because it’s something their people have to come wired with. That's mostly true. Companies do have to have an environment where it’s possible for people to create reasons for staying motivated.  Compensation, contests, incentives, and recognition all play a part in keeping people motivated.  However, in the end, people have to have a really good answer to the question: “Why do I desire success in selling?”

Success in selling is very specific.  It isn’t just success in a vacuum.  It’s success in a very difficult role with very difficult challenges.  I was once asked why I was in life insurance sales.  I responded that I liked people.  The prospect said, “Bullshit. You’re in sales because you want to make a lot of money.”  I said, “Fair enough; you’re right. I do want to make a lot of money.”

But, money in and of itself is not the root desire.  It’s one of the basics that drive the desire. It’s represented in Maslow’s hierarchy of needs.  Money is just a way to take care of food, shelter, clothing, freedom from harm and security.  Traditionally, people that are very successful in selling have this one thing in common – they have lots of s**t to do that requires money.

Yes, sometimes people have a desire to be recognized as the best.  And they want to have self-satisfaction for a job well-done; but I assure you that none of that matters if there are bills to pay, kids to be fed, a college/mortgage/wedding to pay for or new cars to be driven.

With that as the foundation, let me make this as simple as I can to help answer the question, “So, how do I minimize variability in performance by focusing attention on desire?”

  1. Recognize that it is an inside-out job… so that means you have to recruit people that have huge desire for success in selling.
  2. Traditionally, desire is a result of people establishing goals.
    1. Your manager has to be leader in this. If they are not a goal setter (personal goals), then chances are your salespeople won’t be either.
    2. Your manager also has to set the example of goal achievement.
    3. Your manager has to create an environment/opportunity for personal goal setting.
  3. Your manager has to have the mindset that they must know what motivates their salespeople – why do they desire success in sales?
  4. The sales manager needs to recognize that it is their responsibility to help people raise their self-esteem by recognizing success in all forms when it happens.

As I stated in the beginning, the connection between desire for success and selling and the variability of performance is pretty obvious.  If you want to minimize variability in success, minimize the variability in desire for success.

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Variability in Performance in Sales Teams, pt.2

Tags: sales management, managing sales teams, getting consistent sales results, variability in sales performance

Let’s start with the right people

This isn’t new.  Jim Collins in Good to Great clearly explains the concept of “getting the right people on the bus” and “getting those people in the right seats”.  Aside from that, however, there are other “people” components that have an impact on the variability of performance that are probably just off the radar of our thinking when we discuss ‘The Right People”.

There are three other contributing factors:

  1. The Executive Champion – The executive champion has to support the effort when things get tough. The executive champion has to be able to manage up and down when resistance begins to fight against change.  This leadership starts at the very beginning of the process of trying to get it right relative to minimizing/eliminating the variability of performance.  When we first started our engagement with the community bank at Key Bank, their fearless leader, Beth Mooney, stated time and again in all of our kick-off sessions that “This too shall NOT pass.”  Beth did a great job of anticipating the reactions of the participants and warned them early that they were not going to be able to “wait this out”.
  2. The people being trained/coached/motivated/instructed on what and how change was/needed to take place need to be coachable and trainable. In our studies of sales organizations over the last 20 years, it is clear that about 20% of the population is not trainable or coachable.  This doesn’t make them bad people. This doesn’t mean that they should be exited. BUT, if some of these people manage large books of business and, as a result, have become account managers instead of business developers, then there is going to be a variance in performance simply because they are unwilling to change.
  3. The trainers – Are they capable of leading people to a place where they themselves have never been? Think about a field general trying to lead a group of soldiers into a battle and that general had never experienced the stress, fear, and confusion of battle.  How can a trainer possible facilitate transformation discussions if they’ve never done it themselves?

Let’s talk about the right stuff

We are getting ready to submit a recommendation for a workshop at a conference where we’ve had the great privilege to speak for the last 6 years.  One of the topics we can submit content for is Insurance and Protection Products.  I’m anticipating that respondents attending the conference looking for a platform to speak about their insurance and protection products are also going to submit proposals. Those proposals, I'm assuming, will consist of how their insurance products can solve a variety of problems facing the prospects in the market that are looking to:  pass on an estate, transition their business, protect assets, avoid unnecessary taxes and avoid the risk of losing buying power to inflation. These will be very solid presentations…but they will focus on the wrong stuff.

You see, the problem at this conference isn’t a lack of understanding of how and why insurance and protection products are important to their clients.  The problem isn’t a product knowledge problem.  And I would suggest to you that when you evaluate your sales team and your sales team’s results, you would probably rarely arrive at the conclusion that your people fail to sell because they lack technical expertise or that the technical expertise needed isn’t available.

What you would find out is that one of the two factors below is the significant contributor to lack of results:

  1. Lack of effort
  2. Lack of execution

Lack of effort is a recruiting and performance management issue that needs to be addressed by training and coaching your management team rather than training your salespeople to “do more”.  Lack of execution has a number of deep-rooted causes that keep salespeople from asking quality questions, getting to decision makers, and uncovering motivation to change or take action.  Salespeople have been taught the techniques and the language, but they still fail to execute.  Why?  Consider the following root causes for failure to execute:

  1. Lack of desire to commitment to success in selling
  2. Failure to take responsibility for outcomes
  3. Unsupportive belief system about certain aspects of selling
  4. Fear of rejection
  5. Difficulty recovering from rejection
  6. Too trusting of prospects

These are just a few samples areas that can be remediated by training and coaching the right stuff.

Lets talk about the right way

When we started our business over 20 years ago, the primary technology for delivery of training was face-to-face instructor-led training.  A lot has changed since then and now there are many options for distance learning.  BUT WAIT – distance learning has been around since the 15th century… in the form of books!

Distance learning isn’t new.  It’s been redefined by technology, but there have been hundreds of thousands of sales eople trained and coached by reading books and listening to audio materials.  What made those technologies work are the same things that make distance learning work today – the ability to learn and study when it works for the learner.

I have listened to hundreds of hours of David Sandler, Tony Robbins, Mark Victor Hansen, Og Mandino, Zig Ziglar and countless others.  I have bookshelves full of books that I’ve read at 5:30am on airplanes on the way somewhere and late at night in hotel rooms.  The unavoidable truth is your training and development program must be delivered the right way.

  • Get the technical information delivered via written, audio or video form,
  • Use live webcast for discussion principles, tactics and ideas
  • Use live – interactive – preferably face-to-face – instructor led training (from someone that has already been where you want your people to go) for the soft skill development needed via drill for skill, role play and strategy development.

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The current state of building and developing an effective and consistent sales team is as tough as it has ever been for many reasons, including the difficulty recruiting talent and keeping up with changes in the buyer’s buying process.  However, the mobility of people and the availability of information via technology allows for training/learning anywhere at any time.

Make sure, when looking to deal with the variability of performance, you are dealing with:

The right people, doing the right things, the right way!

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Is Variability of (Sales) Performance a Problem in Your Organization? pt.1

Tags: sales management, managing sales teams, factors affecting sales results, variability in sales performance, how to improve sales results

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Why does variability exist? Let’s check in with an article by the American Psychological Association written in 1982: *Locke, Shaw, Saari, and Latham (1981) concluded that the relationship between goal setting and performance is reliable, persistent and strong.  Specific, difficult goals led to higher performance than did nonspecific, “do your best” goals in 90% of the studies they reviewed in which the goals could be assumed to have been accepted by the subjects.  However, the strength of the relationship varies considerably from study to study.  In addition to goal conditions, three potentially important contributors to performance variability are:

  • Situational Factors
  • Task Characteristics
  • Individual Differences

In the world of selling, certainly there are situational factors that change from prospect to prospect, client to client.  But, generally speaking, if you have a tight niche/market that you are attempting to capture, you can identify, plan and train for the variability in situations.

Task characteristics should only be variable if you have failed to implement a mapped, objective, centric-measured sales process.  This is the “engineering” aspect of developing a sales managed organization. This helps minimize variability in task characteristics.

The biggest and probably most difficult variable is the difference in individuals. The uniqueness of each fingerprint is expressive of the uniqueness of each individual you hire when recruiting for a sales team built for growth. However, there is science available to help you identify the variables that are consistent among your top performers as well as your bottom performers.  By using that science and implementing a consistent system of attracting, qualifying, interviewing and onboarding, you can improve the probability of success and minimize bad hires.

But, none of this matters unless you have an answer to the question: “Why eliminate variability of performance?”  I cannot possibly answer that question for you. However, along with acknowledging the real costs of recruiting, training and paying those that fail to perform, I can list some additional possible reasons why you might want to eliminate variability of performance:

  • The HR cost of managing PIP
  • Additional oversight required by management to manage underperformers
  • Use of training time and money with zero impact on results
  • Perception in the marketplace about your company – churn and burn
  • Strain on other members of the team
  • Impact of poor work ethic on those that perform as expected
  • Interpretation by others on the team that “it is okay to not hit the goal”
  • Unknown cost of lost opportunities
  • The real economic difference between expected sales and realized sales
  • Drain on the executive committee members discussion about the continuation of employment by those not performing

If your company is experiencing any of these items, then eliminating or minimizing the variability of performance must become a front burner issue.

I am certain that, when building a sales team for success, there has never been a discussion between a hiring manager and an executive that signs off on the approval of a hire where the hiring manager and the executive have a discussion like this:

Manager – “I think we should hire Joe Smith.”
Executive – “I agree because I believe Joe is going to be the most unbelievable average producer we’ve ever hired.”

I don’t believe that conversation ever takes place, but somehow there are people in the sales team who are occupying the middle standard deviations space defined as “the average producer”.  But, you didn't hire them with that intent, so how did they get there?

Is it time to measure and address the cost of variability of performance in your company?

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How to Grow Sales: The Never Ending Question Just Found ANSWERS!

Tags: sales evaluation, OMG, managing sales teams, evaluating sales teams

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Growing sales depends on the ability to know the answers to the right questions.  Often companies make a decision to invest in their people in order to improve performance.  Sometimes the investment pays off: other times, not so much.

When it pays off, it normally is a combination of the right things coming together at the right time:

  • Leadership that thinks sales skill improvement is important to improve sales
  • Sales management that really knows how to manager performance
  • Sales management that understands that coaching is the job
  • Recruiting that works to make sure the right criteria are being used to hire superstar sales people and doesn't settle for less
  • Marketing programs that increase visibility, strengthen the brand and generate interest in the product.
  • An economy built for growth
  • A no-excuses environment
  • Metrics for success that matter
  • Systems and processes that support effective selling
  • Salespeople that are motivated and committed
  • Salespeople that have the right skills to sell to the market the company is attempting sell to
  • Etc., etc., etc.

But… what do you do if sales growth isn’t happening as expected or needed?  Where do you start? 

  • New management
  • New leadership
  • New salespeople
  • New CRM and other sales enablement tools
  • New marketing strategy

And therein is the problem; most companies don't have the answer to the question(s) of…

  • How do we grow sales?
  • Where do we start?

At our company, Anthony Cole Training Group, we have partnered with the #1 sales team assessment company in the world – Objective Management Group.  With this partnership, we answer four critical questions for our clients:

  • Can we be more effective?
  • How much more effective can we be?
  • What will it take to accomplish that?
  • How long will it take to accomplish that?

To answer those four critical questions, our prospective clients work with us in an initial interview to get a “lay of the land”.  We spend time asking questions to find out what work isn’t getting done.  We listen to understand and we uncover the symptoms of the problems.   We discuss the impact on the business and the solutions attempted in the past.  What we know about every company is that they are perfectly designed for the results they are getting today and will get tomorrow.  If those results are not acceptable, then we go to work.

We go to work with them by providing them a series of questions that have to be answered by senior executives, sales leaders and, ultimately, the salespeople.  This thorough process results in a report that answers the 4 questions we’ve already discussed.  The answers to these 19 questions ultimately answer the BIG question – How do we grow sales?

If you’ve been looking for the answer(s) to that question, keep reading and let us know how we could possibly help you or find you the help you need.

  1. How Does Sales Leadership Impact Our Sales Force?
  2. What Are Our Current Sales Capabilities?
  3. How Motivated Are Our Salespeople and How Are They Motivated?
  4. Can We Generate More New Business?
  5. Can We Be Better at Reaching Actual Decision Makers?
  6. Can We Shorten Our Sales Cycle?
  7. Can We Sell More Consultatively?
  8. Are We Selling on Price and Who Can Become a Value Seller?
  9. Is Our Value Proposition Consistent?
  10. Can We Close More Sales?
  11. Do Our Systems and Processes Support a High Performance Sales Organization?
  12. Can We Be More Consistent with Our Sales Process?
  13. How Well Are Our Sales Leadership Strategies Aligned?
  14. Do We Need to Change Our Selection Criteria?
  15. Can We Improve Ramp-Up?
  16. Can We Improve Our Pipeline and Forecasting Accuracy?
  17. Can We Improve Our Sales Culture?
  18. Who Can Become More Effective in Their Roles?
  19. What Are the Short-Term Priorities for Accelerated Growth?

Contact Tony Cole Directly:  513-226-3913 (call or text).  If text, use subject line: “I need answers!” along with your name. Or email: tony@anthonycoletraining.com

Additional Resources:

 

The 80/20 Power Curve and Your Sales Organization

Tags: sales management, managing sales teams

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5 Things to Do to Own a Sales Team Built for Growth

I’m working on an article discussing the 80/20 Power Curve.  It’s the concept Perry Marshall discusses in his book:  The 80/20 of Sales and Marketing.  Normally, I focus on the top part of the curve. The part of the curve that represents about 95% of all the production generated by a sales team (See Figure 1 below)

If you look at your total sales results, you would find something close to the following:

                                         Figure1

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Last week, I presented to a group of CEOs at the BISA CEO Summit held at Vanderbilt University.  This slide alone raised a few eyebrows and caused some thinking about the relevance, importance and cost of the 64% of the sales team only representing 4% of the results. (32 sales people responsible for 800,000 of the 20,000,000 in revenue.)  What alarmed me was the bottom part of the 80/20 power curve.  What does the bottom look like? (See Figure 2)

                                             Figure 2

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Trust my excel spreadsheet.  The numbers add up and they don’t lie.  They may not represent your team exactly, especially if your team has less than 10 sales people, BUT do the math and you will arrive at a similar finding.  Figure 2 is telling the president of the company that of the 50 sales people in his company, the bottom 20 (40%) Represent 32,000 of a 20,000,000 book of business (.0016%).

Regardless of how you dissect it, spin it, negotiate it or defend it, this cannot be what you expected when you hired these 20 people.

So, what do you do? Here are the 5 THINGS:

  1. Start with your sales manager. This is the person responsible for sales, productivity, and sales effectiveness. If ROI is one of the metrics you use to determine success, how would you evaluate the ROI on the bottom 20% of the sales team?
  2. Next, I would look at the recruiting practices. As difficult as this might be, you have to answer the question about under performers – Did you hire them this way?
  3. You will also want to look at the on-boarding and the development plan in place that should be there to improve the probability of success. As above, you have to answer the question – Did you make them this way?  If you didn’t hire them this way – already failures – then you’ve made them this way – turned them into failures.

* I anticipate you might say – “I didn’t hire them, I inherited the team.”  Like it or not, after a year, they are yours!

  1. Look at your systems and processes to make sure they are designed, implemented and executed to support successful sales growth.
  2. Look at your sales system and evaluate how well it is being executed top to bottom. My guess is that your best people execute a sales process and they execute it consistently.

Additional resources:

Hirebettersalespeople.com

Perry Marshal – 80/20 Power Curve

Sales Management Certification Program

Keeping An Eye Out For Sales Talent

Tags: sales talent, hiring salespeople, managing sales teams

man-peeking

I had to find some way to work my current hospital stay into my blog post. I promised on my signature that I would keep you posted and figured I better get a post in today.

Here’s the quick story of why I’m here:

  • I had a healthy eye
  • I had vision symptoms
  • I was diagnosed with uveal melanoma
  • I had plaque radioactive surgery
  • I hope my vision returns and the tumor is gone

The long version of the story can read something similar to what sales managers face when they hire salspeople and anticipate those sales people to be successful.

Kind of like this progression:

  • I hired my next superstar salesperson
  • Everything was good for awhile, not perfect but good
  • We had a meeting when sales goals were not being met
  • Things got better
  • Things got worse
  • I put them on a performance improvement plan (PIP)
  • Things got better
  • Things got worse
  • We adjusted the compensation model down because of lack of performance
  • Things were okay
  • I put the producer on a PIP plan with a 3-strike rule
  • Yesterday was strike three, my superstar sales person has left the building

Sound/look familiar? What I know, or at least think I know, is this:

  • Your sales team, assuming you have at least 10 salespeople, is represented by the 80/20 rule. 80% of your results/revenue is being generated by about 20% of your team. (Give or take some percentage points – maybe 70/30)
  • If you plot your sales team in a bell curve many, if not most, of the people in the middle standard deviations set up tent there and never leave.
  • You have some people to the far left of the bell curve that have retired and just haven’t told anyone or are failing and you are looking for a miracle.

What I also know is this: Performance improvement plans, compensation changes, re-forecasting, waiting for them to make the turn and threats don’t work. What does work is this:

5 Steps For Building a More Productive Sales Team:

  1. Hire better salespeople
  2. On-board them better
  3. Coach them more/better
  4. Catch them early
  5. Let them go as soon as you know

Additional resources:

#1 Hiring Tool In The World - Stop making hiring mistakes

Bill Eckstrom – Coachign Best Practices

Tony Cole Blog: Performance management that works