ACTG Sales Management Blog

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The Importance of Profile Fit in No Assembly Required Hiring

Posted by Tony Cole on Thu, Feb 18, 2021

Your potential sales candidates have to have a successful history selling the way your company sells, to the people you sell to, in the environment you sell in.

In the 5th installment of our blog series, No Assembly Required Hiring, we discuss the importance of recruiting salespeople who not only fit your selling requirements but also match the specific criteria of your organization.

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You believe you recruited Wonder Woman: someone with a great resume, OMG findings that showed strong Will to Sell, great Sales DNA, and they scored well in Sales Competencies. You could reasonably expect Wonder-Woman-level sales results. However, 12 to 18 months later, the results you see more closely resemble Aquaman (the 1967 version- not the new and improved Jason Momoa model). 

So what happened?

There could be a couple of explanations:

  • All salespeople need coaching – it could be that your sales manager is great at managing performance but not at coaching.
  • The onboarding process didn’t address some of the findings that needed work in either the Sales DNA or Sales Competencies categories.
  • The OMG is 92% predictive – you may have hired 1 of the 8 that got through.
  • Or, and this is the topic for our discussion today, it could be that there was a poor role fit.

When using and establishing the OMG pre-hire assessment, the sales executive answers a series of questions about the environment that exists within the company and what is required to be successful in that environment. The questions asked revolve around, but are not limited to, areas like the following:

If this is what it takes to succeed in your organization, and your candidate doesn't have success selling within your environment, they will struggle despite the Will to Sell, Sales DNA, and Sales Competencies. When we see overall strong results, but there is a mismatch with your criteria, “Recommended for Hire" doesn’t mean hire! You have to be ready to take on a project, adjust your onboarding expectations, increase the frequency of coaching, and change the type of coaching you would typically conduct.  

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Here is a sample from the pre-hire assessment that provides information about role match:

Imagine for a minute that the candidate did meet OMG Criteria scores for the Will to Sell and Sales DNA. There would still be a yellow flag in the category of Meets your Criteria if the candidate didn’t answer the questions the same way you did for role experience. This example tells you that your candidate wasn't successful as a high ticket seller, and they will not hunt for new business. This is a mild case of mismatched historical success and predicted success for your organization.

Over 25 years ago, we got our start on the big stage with USI Insurance. Back then the focus of that company, and many in the insurance brokerage industry, was organic growth from current salespeople and occasionally hiring a hotshot broker from one of the larger firms. They looked for brokers that would bring a high level of experience to the firm and possibly bring some large accounts with them. 

Often these highly touted recruits would fail. Why? Because the environment for success was different. They didn’t have a business card that had the name of a company that was easy to defend if something went wrong. Their success was based on the ability to show a card that said Aon or Marsh. In addition to having the right stuff, your candidates have to have a successful history selling the way your company sells, to the people you sell to, in the environment you sell in. 

They have to be a fit, and they have to be coachable. As you think about your next hire, think about the reasons people have failed in the past. Structure your recruiting, vetting, and onboarding process to uncover problems early and/or address them if you decide to take on a project.

Trial the Highly-Predictive  Pre-Hire Sales Assessment

Topics: Sales DNA, performance management, increase sales, hire better salespeople, will to sell

Variability and the 14-Letter Dirty Word – Accountability

Posted by Tony Cole on Mon, Oct 03, 2016

Several years ago, as part of our sales team evaluation, the skills, tendencies and effectiveness of the sales leadership team was also assessed.  The findings indicated that of the 224 leaders, 23% had at least 60% of the skills required to be an effective performance manger.  Of the 5 sales management skill sets required - coaching, motivating, recruiting, mentoring and performance management – this last one, performance management, is where the team “scored” the best. The skills/tendencies within the skill set are as follows:

  • Doesn’t accept mediocrity
  • Has no need for approval from sales people
  • Takes responsibility
  • Manages behavior
  • Asks Questions
  • Manages pipeline
  • Has beliefs that support accountability

Before digging into this topic further, just take a minute to examine these results: 

  • 224 sales leaders
  • 23% (51) with the minimum % of skills needed to be successful in their role
  • 67% (172) sales leaders below the minimum standards of effectiveness
  • Only 1 out of 4 managers, hired to do the job of managing performance and holding sales people accountable, had the skills to do so.

Assume for a minute that this might be your sales organization.  Now, you might be thinking, “I don’t have that many sales managers and so my numbers won’t look like this.”  You are right; they won’t look like this, but consider the possibility that maybe you didn’t get the 1 out of four!  How would you know?

  • Do your salespeople meet and exceed goals?
  • Do your salespeople consistently have the right volume of pipeline?
  • Do your salespeople have a tendency to have up and down weeks, months, quarters or years?
  • Do your salespeople blame the economy, the competition, the pricing, the lack of marketing, lack of support, too much paperwork for failure to prospect?
  • Have you spent a small fortune for CRM and yet still struggle with trusting the reliability of the pipeline report that you get?
  • Are people late to meetings or fail to show up at all, or leave early?
  • Does your sales manager take bullets for the failure of the sales team?

Performance Management – Definition (As defined by the University of California Berkley)

  • Performance management is an ongoing process of communication between a supervisor and an employee that occurs throughout the year, in support of accomplishing the strategic objectives of the organization. The communication process includes clarifying expectations, setting objectives, identifying goals, providing feedback and reviewing results.

Hogwash!  This is part of the definition and this might suit the academics, but in the real world of business, there is something missing!  “What’s missing?” you ask.

  • Identifying and implementing Rewards for success
  • Identifying and implementing Consequences for failure
  • Implementing disciplined approaches (structured activities) to correct failure to perform effort or execution.

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The Berkley definition is kind of like the LifeLock commercial you see on TV commercials.  The bank is being robbed and customers ask the security guard if he is going to do something about the robbery.  His response is that he is not a security guard but rather a security monitor.  If all a manager does is communicates expectations, sets objectives, identifies goals, reviews results (“you are not hitting your goals”) and provides feedback (“You have to work harder”), then performance really isn’t managed; it’s just monitored.

As long had you have a sales team consisting of self-starters, self-managed, high figure-it-out people, then you are okay.  BUT, and this is a BIG BUT(T), you probably don’t have an entire team of people like this.  Short of having a team that just needs to be pointed in the right direction, an organization needs someone to manage performance and hold people accountable to individual commitments.

The organization needs someone that can reward people for success through compensation and recognition.  As important, if not more important, your performance management manager MUST be able to recognize early when people are off-track. This person must have implemented the right systems and process for early detection.  And the person must be strong enough to have fierce conversations with people when they are failing to perform.

Finally, there must be a process of disciplined and structured correction procedures so that those failing to execute have a chance to succeed.  PIPs are not the answer.  PIPs are to late to have a significant impact.  By the time you attempt to put someone on a PIP that horse has left the barn.

Additional Resources:

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Topics: effective sales coaching, sales management, performance management, sales accountability

What We Get a Chance to Do

Posted by Tony Cole on Thu, Sep 08, 2016

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My wife and I just came back from Minong, Wisconsin where we visited with our friends, Barb and Gerald O’Dell.  Gerald, Barb and I go back a long way, over 30 years. We all met and worked together at Iowa State University.  We parted ways for awhile until Gerald became the athletic director at the University of Cincinnati.  Later, Gerald, a man of great integrity, decided it was time to leave UC and leave athletics for good. That was over 20 years ago.

After a day of catching up and retelling old stories (Linda, of course, heard many of the stories for the first time), we settled into a routine talking about our current lives.  In one of those conversations Gerald shared with me a practice management approach to his “to do” list.  Gerald told me that, a while ago, he consciously changed his thinking from, “Things I have to do” to “Things I get to do”.

Wow.

If you think about it, there is a huge difference between what I have to do and what I get to do.

  • I have to pay taxes.
    I get to go on vacation.
  • I have to take out the trash.
    I get to eat great meals and live in a cool home.
  • I have to go to work.
    I get to help people fulfill their potential.

The other night, I set the alarm on my iPhone.  If you’ve done this, you know that you have a chance to set the time, a chance to select a sound (the song I wake up to is “Isle of Hope, Isle of Tears” sung by the Irish Tenors – a must hear) and, if you can, an opportunity to title the alarm.  Until then, I had simply titled that alarm, “Wake up.”  It now reads, “What I get to do tomorrow.”

What’s interesting to me, though it might be boring as heck to you, is that when I see the title in the evening, it sets the tone for my night’s rest as well as the entire next day.  Instead of thinking and stressing over what I have to do, I have a smile on my face thinking about the things I get to do.

  • I get to talk to people and find out about their business.
  • I get to work with people in my company that are dedicated to our mission.
  • I get to coach sales managers and observe them improve as their skills change and confidence grows.
  • I get to talk to executives about business solutions for finding sales talent and growing sales.
  • I get to convert really cool ideas into client-focused solutions.

I’m not generally one to put forth challenges in these articles, but today I’m making an exception.  I challenge you to think differently about what you do and what your role is.  I challenge you to take some time to write down the things you have been thinking of as “have” to do.  Then, take the time to translate the “I have to” list to an “I get to” list.

But, don’t just do this as an exercise.  Invest in the process and let yourself get excited about all the things you get to do both professionally and personally.

Topics: time management, performance management, have to versus get to, to do list

Performance Management and the Law of Cause

Posted by Tony Cole on Tue, Jun 14, 2016

Here is the opening paragraph from the IQ Matix Blog – The Law of Cause and Effect by Adam Sicinski

“A person becomes what they think about all day.”

Understanding the Law

The universal law of cause and effect states that for every effect there is a definite cause, likewise for every cause there is a definite effect.

Your thoughts, behaviors and actions create specific effects that manifest and create your life as you know it. If you are not happy with the effects you have created, then you must change the causes that created them in the first place…

Change your actions, and you change your life… Transform your thoughts, and you will create a brand new destiny.

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I’ve been thinking about this for about a week. I was in Pittsburgh last week and one evening my wife, Linda, called me. She told me that our friend, Kim, had called her to inform us that her son, Alex, had an accident while long boarding.  After Linda described the injuries, one of my first questions was, “Was he wearing a helmet?”  She wasn't sure.  This led me to thinking about accidents.

The fall was not an accident. It was an unforeseen incident, but by no means an accident. There was a definite cause and a definite effect that created another cause and another effect and so on and so on until Alex tumbled to the ground which caused severe bodily injury.

(Now…switching gears…)

Recently, I did some simple math in preparation for a workshop I delivered to the BISA CEO Summit in Nashville.  As part of the presentation, I demonstrated Perry Marshall’s Power Curve and the likely diagnosis of the sales teams represented in the room.  In short – about 36% of the advisors represented by a group of 200 advisors were responsible for 95% of the productivity for the entire group.  Once I highlighted the fact that less than 5% of the total remaining revenue was being generated by over 60% of the remaining advisors, I asked the question – “Did you hire them this way or make them this way?”

This is not an indictment of the CEOs present or the firms they represented. Any one of you reading this can do the same math and, if you have 25 or more salespeople that follow the normal 80/20 rule, then you will end up with the same numbers.  The reason I ask the question about hiring or making is because that is “the cause.” 

This group of massively underperforming salespeople is not in that group by accident.  Certainly, they are not in your group by accident. I don’t believe for a second that you intentionally hired 60% of your sales team to represent less than 5% of your sales. However, even if it’s actually 15 – 20%, there is cause for alarm.  And that alarm should create an effect and that effect should create another cause and another effect… and so on…

Which causes me to go back to the title of this post: Sales Management – Performance Management and the Law of Cause.

What is it that your sales manager is doing… or failing to do… that is responsible for the effect?  Here are some questions you might want to consider when attempting to arrive at an answer to that question:

  1. What are the standards for success in your organization? I don’t mean what are the goals; I mean the standards.  In other words, I’m assuming that everyone on the sales team has sales goals, but what standard are they held to?  What percentage of the team consistently performs above 100% of the goal?  What percentage of the team consistently performs between 90 and 99% of goal?  What percentage of the team hovers around 80 to 85% of the goal, is still with you and will still be with you going into next year?  You see, that is the standard of performance that your manager is allowing.
  2. What impact is your standard for success having on the overall performance of the team?
  3. What is happening to the group just below the top tier that consistently hits or exceeds the goal? Does that group have a tendency to a) move upwards towards the top b)stay level or c) slide ever so slightly to your standard of success just before termination?
  4. How well is your sales manager actually managing pipeline? Do they actually manage it or just monitor it?
  5. What inspection process is executed to “inspect what you expect” and what is happening when what is expected isn’t getting done?
  6. How well is the manager inspecting the revenue driver activities and behaviors?
  7. How consistently are the salespeople following and executing the company sales process?
  8. What information is your sales manager using from your CRM that allows them to have productive intentional coaching discussions with the entire sales team?
  9. Finally, what activities and behaviors are you holding your sales manager to that, when executed correctly, would lead to more consistent, predictable sales growth?

Traditionally speaking, when companies think about performance management, most of the focus is on the group that is responsible for driving revenue – the sales team. What needs to happen is that anything that moves should get measured, there needs to be higher standards for keeping jobs and, ultimately, managers need to be held accountable to their own set of activities and behaviors.

Alex is home now and being cared for by his family. Let’s pray for his speedy and healthy recovery.

Additional Resources:

Sales Managed Enviroment® – A development program designed to create high performing sales managers.

Assess Your Sales Process – How effective is the sales process your people are supposed to be following and executing?

Topics: sales management, sales goals, performance management, sales accountability

How to Win Business in Any Market at Any Time!

Posted by Tony Cole on Fri, Apr 15, 2016

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Selling in Any Market is one of my favorite keynote/workshops to deliver. When addressing a group of sales people or sales managers, I always create a stir when I loudly pronounce that the way to sell in any market is to “STOP making excuses and JUST SELL.”

When there are disruptions/economic conditions in your industry that cause you to get out of your normal flow in business, sometimes you end up spending more time playing defense than you do playing offense. 

In our primary markets – insurance brokerages, banking and investment services - disruptions have become a quarterly occurrence.  In my 20+ years in this business, I have asked audiences across the country if they have ever gone through a three-year period in their business when there wasn’t some sort of the disruption in the “normal” flow of business.  In short, their answer was no. In fact, disruptions in flow of business have become the norm.

In a recent discussion with one of our current client’s brokers, they described that the market is a hard market right now meaning that some prices are stable and some are going down.  As a result, some of the markets/carriers were lowering prices to grab market share.  When this happens, a broker’s own clients sometimes decide that it’s time to go for better premiums with the same coverage.  So, when this happens, brokers (like my client) have to play some defense to protect their turf.  And when that happens, brokers have a tendency to take their eyes off of prospecting – they stop playing offense.

I have several clients in the bank-owned investment brokerage business.  Last week, the Department of Labor passed new fiduciary regulations that have caused and will continue to cause a MAJOR disruption in that business.  Studies indicate that companies will literally spend billions of dollars to make sure they are compliant with the new regulations.  Not only will this require an investment of an enormous amount of money, but it will also take millions of hours invested by many for compliance training.  None of these activities are offensive in nature and so, in the end, will actually cost millions, maybe billions, more in lost productivity.

This is not necessary!  Here are just a couple of things to keep in mind as you attempt to manage performance during difficult periods:

  • Unlike 2008 (when a substantial piece of the market DID shrink), the current situation is not the same.
    1. Businesses are not going out of business because insurance premiums are going down.
    2. The amount of money in play in retirement and personal savings has not shrunk. If it’s a multi-billion/trillion dollar pile of money today, it will still be a multi-trillion pile of money once the Department of Labor regulations are fully implemented (January 1, 2018)
  • If your clients have a tendency to want to shop in a tough market, so do the clients of your competitors. Companies are in play, but you have to take the phone “off of the hook” and call them.
  • People that have invested their money with advisors that have not treated them in a way that is consistent with the new regulations (client focused/fiduciary responsibility) will be in the market to find an investment advisor/representative who will.
  • If you find that it is your smaller clients that want to shop – let them. My guess is that, if you let the bottom 20% of your insurance clients go, it will represent less than 5% of your total revenue.  One new client that looks more like your top 20% will replace at least 10 of your bottom clients.
  • If you are a financial advisor – DITTO. Frequently, my friend, Kevin Mummau from CUSO Financial, and I discuss the segmenting of books of business. Time and again, the 80/20 rule applies. Actually, based on his business intelligence, that industry looks more like 30/70.  But, still let the smaller accounts work with licensed bank reps or bring in an associate that can grow by growing with smaller accounts.

The bottom line is this: as a sales leader in an organization, you have the responsibility to keep your people focused on what it takes to win in any market, any environment.  Regardless of the score of the game, you have to…

Just like in a sport of any kind, stuff happens.  A team gets a big lead, catches a break, the wind shifts and the kick goes wide.  It doesn’t matter!  You cannot win just playing defense.

Sooner or later, you have to score more points than the opponent. That is offense!

Topics: sales prospecting, performance management, increase sales, selling in today's market


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    About our Blog

    Anthony Cole Training Group has been working with financial firms for close to 30 years helping them become more effective in their markets and closing their sales opportunity gap.  ACTG has mastered the art of using science-based data and finely honed coaching strategies to help build effective sales teams.  Don’t miss our weekly sales management blog insights from our team of expert contributors.

     

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