So, this morning, Linda and I were watching Morning Joe while talking business.  We were discussing our brand promise of, “When you lie awake at night worrying about sales growth, we lie awake at night.”  We compiled a list of questions that often haunt managers throughout the day and into the night when they should be preparing for a good night’s sleep:

• Do I have the right people?
• Are we doing the right things?
• How effective are we?
• What do I have to do to make sure we hit our numbers while we stay consistent with our vision and mission?

As we’re talking, we see a news banner at the bottom of the screen about a man who was arrested for breaking and entering a home.  He was apprehended after the police entered the home and saw his feet dangling from the chimney.  As usual, I automatically started thinking about how that related to sales, sales management, performance management, coaching, pipeline, pre-call strategies, etc.

My first question is this – “Do you have sales opportunities that are important/critical for hitting your goals and growing sales that are stuck?”

My second, but maybe the most important question, is this – “Is this particular opportunity a repeat offender?” 

QUESTIONS FOR EVALUATING OPPORTUNITIES

Now, there are 2 things to consider when attempting answering that 2^nd question.

1. Is that opportunity familiar to you and the salesperson who has entered the opportunity into your pipeline management system? (This isn’t the same as your CRM). If we’ve worked on this opportunity before and they – the opportunity – “got away on a technicality”, then this would be defined as a “repeat offender”:
   1. Not the decision maker
   2. Wasn’t able to undo the current relationship
   3. Decided to not make a change
   4. Couldn’t arrive at the price point
   5. Really didn’t have a solution that fit the features and benefits they were looking for
   6. The timing wasn’t right
2. Are other opportunities stuck in the pipeline/chimney for the very same reasons as this one – the salesperson failed to execute the qualifying steps in your sales process:
   1. No compelling reason to make a change identified
   2. Competition unknown
   3. Incumbent still part of the equation
   4. Budget for investing time, money resources is a mystery
   5. Decision making process has not been uncovered
   6. Timing or urgency of making a decision not clearly understood
   7. Agreement on next steps unclear
   8. Did not ask the question – Is this a “want to fix” or “have to fix” problem?

CMBMQHM AND WHAT YOU NEED FOR SALES GROWTH

Sales growth is dependent upon this – CMBMQHM.  My staff hates it when I make up acronyms like this.  When I put these in our learning decks, the people in my office  want to know what the acronyms mean.  I generally tell them that they don’t really need to know; they just need to make sure the rest of the deck is done correctly. I know what it means and I will explain it to the sales team we are working during our training session.  But, they insist on knowing, so here it is:

Close More Business, More Quickly, at Higher Margins

It’s almost as good as WITALAIITU. (If you want to know that one,  click HERE.)

So, what does it take to accomplish CMBMQHM?

• You have to have a milestone-centric sales system – something that can be quantified, measured and evaluated for progress towards the objective of “getting a decision”. (This is not the same as “getting the sale”.)
• You have to have a process for building a success formula for each salesperson based on that sales system.
• You have to have complete buy-in to the use of your pipeline management process. Here are the guidelines to get that buy-in. It needs to…
  • Be easy to use
  • Be effective
  • Be beneficial to the user
  • Provide you with business intelligence
  • Automatically generate and send reports to you so you don’t have to go find the information
• You have to have a system of pre-call strategy sessions for EVERY opportunity that meets or exceeds the benchmark of your top 33%.
• You have to have a post-call debriefing session for every opportunity you discuss in the pre-call session.
• You have to conduct a CSI – “Crime Scene Investigation” – for every deal you don’t get.
• Finally, you have to conduct 1-on-1 coaching sessions that are intentional.
  • They are based on the findings from your pre- and post-call meetings
  • They are based on what your data is telling you about the choke point(s) a particular salesperson is having or the most common choke point(s) for the group
  • The coaching needs to accomplish 1, if not 2, things:
    1. Change behavior
    2. Improve skill

In the next post, I’ll talk about the 5 Keys to Effective Coaching.  (Pam, don’t let me forget that is the next blog topic!).  In the meantime, here are the 9 skills needed!

Additional Resources:

Download the Success Formula Worksheet

Try out the Effective Selling System online learning demo

Sales Management Effectiveness Certification Program

At Christmas, my wife, Linda, bought me a cookbook – The Science of Good Cooking.  She gave it to me because I really do love to cook. I love to cook because I love to eat.  I’m not a foodie who is into exotic or gourmet types of recipes.  I’m a basic meat, potato, soup, pasta, BBQ, stew and sandwich kind of guy.  You’ll notice the absence of veggies in that list.  With the exception of ratatouille, steamed broccoli and sautéed French green beans, I don't do veggies.

Last night was meatloaf night.  I hated my mom’s meatloaf.  She put ketchup/tomato paste on it!  I hated ketchup as a kid and I am still not super fond of it even now.  Tomato paste is supposed to be used for just one thing – Dad’s tomato sauce for spaghetti and meatballs!  However, a couple of years ago, Linda and the family wanted meatloaf, so I found a recipe from www.allrecipes.com and I’ve been in love with meatloaf ever since.

Originally, what I didn’t know about cooking was the science that makes a dish work or makes a dish a disaster.  Over the years, I have learned that…

• Low and slow allows the proteins in meat to breakdown and make most, if not all, “tough cuts” of meat more tender. I followed the practice in smoking meats but not with the Thanksgiving turkey until this last year – WHAT a DIFFERENCE!
• The most important cooking purchase you can make is an instant read thermometer.
• And, for my meatloaf recipe, you can substitute gelatin for veal.

Once you understand the science, what you do next becomes your ART.

The food is your canvas and you get the chance to paint it any way you want.  I like food with a little zing, so I tend to add cayenne pepper and/or red pepper chili flakes.  In chili or soup, I like to add Tabasco.  In my mashed potatoes, I’ve been known to add way too much butter, half and half and jalapeno peppers.

Another example of art and science is exercise and fitness.

If you want to improve your strength or endurance, two things are required - effort and execution.  Effort is the science (math) part of the equation.  Hypertrophy (growth) of muscle and increases in endurance both rely on the SAID Principle: Specific Adaptation to Imposed Demand.  Simply stated:  if you want to improve, you must impose a demand on the system. i.e.  Lift weights for strength; exercise aerobically to improve cardio-vascular capacity. (This ties into my Nautilus years!)

Failure to impose demands on your physical systems results in atrophy – diminishing capabilities of the muscles to work or the lungs to supply oxygen.

The “art” of exercise is when you decide what you want to do to impose the demand.

• Lift weights
• Pilates
• Swim
• Bike or run long distance
• Martial Arts
• Cross country skiing

As long as you stress your systems, you will become more fit.  You muscles or lungs cannot distinguish one kind of load (training) from another.   All the systems know is that they are being taxed and so they respond with growth/improvement.

What Makes Up the Science of Sales Growth – Activities that Lead to Results

What is the science of sales growth then?  The science is the activity that leads to results.  This can be a long list, but it all comes down to this:

EFFORT

1. Networking face-to-face in the community of your target market
2. Making phone calls to the people whose names you have come into possession of (regardless of source)
3. Active social selling using LinkedIn
4. Meeting with internal partners who have access to people in your target market
5. Providing an exceptional client experience so your clients become advocates and introduce you to others
6. Directly asking clients for introductions
7. Spending time with and being a great partner with other business partners so that they can refer business to you
8. Writing articles, speaking and presenting to become the subject matter expert in your target market so that people seek you out.

EXECUTION – THE ART (HBR Video)

1. How well do you ask questions?
2. When you are making a point, do you weave in metaphors, analogies and stories or do you simply quote data and statistics?
3. How high is your emotional IQ?
4. Are your questions the type of questions that provide meaningful insight to the emotions of action or ones that uncover “just the facts”?
5. How memorable or forgettable are you when you call to talk to someone on the phone for the first time?
6. How well do you “own the room” when you present?
7. When you present, do you look, act and sound like everyone else?
8. Are you emotional, passionate and willing to do whatever it takes (assuming ethical, legal and moral standards)?

ARE YOU GROWING? (Growing Sales Article Part I)

1. What demands have you put on your behaviors to stretch your thinking and your abilities?
2. What training or coaching have you undertaken that makes you uncomfortable, stretches your thinking and broadens your scope of conversation?
3. How comfortable are you with having presidential, far reaching and/or vision creating discussions with decision makers who are resistant to change?
4. In the last 18 months, how many books have you read, workshops or webinars attended, or speakers have you listened to on TED Talks or YouTube?
5. Are you twice as smart about your business and the art and science of selling than you were 18 months ago?
6. How indispensible are you to your company and clients?
7. What do your numbers reflect:
   1. Personal income
   2. Sales goal increases year over year
   3. Your sales goal achievement compared to the best in class
   4. Your personal wealth
   5. The things you have, achieve, go, become
8. How secure is your future financial wellbeing?
9. If something happened to you today and you could no longer work, how well would your family be cared for financially?
10. Would your company enthusiastically hire you again?

As a manager of salespeople, these are the questions you need to be asking. These are the points that you need to be thinking about/considering when discussing the building of a sales growth oriented sales team.

How Sales Leadership Establishes “The Science”

The Science:  My guess is that, in your organization, you have a CRM that provides you some math to help you with the science part.  CRMs are sales enablement tools.  They are only designed to collect the data; sales leadership has to do the rest.  The rest – is the science:

• Identify the right metrics – data to collect
• Have standards applied to those metrics that force your people to grow
• Connect the metrics in a milestone structured sales process
• Create success formulas for all producers
• Compare actual performance to goal performance (including conversion ratios)
• Obtain business intelligence that is predictive of future performance
• Compare predictions to actual

The Art Needed for Growing Your Sales Team

The Art: The art of growing your sales team combines the data that you have with your coaching opportunities. There are skills required to be an effective coach.  Your ability to artfully execute these skills is what makes it easier to recruit top talent and keep the talent you have.

• Having deep relationships based on confidence and trust
• Understanding what really motivates your people
• Asking great questions that help your salespeople discover what they should be doing
• Not accepting mediocrity
• No need for approval without being aggressive
• A coaching bias – it’s more important to see your people succeed than for you to succeed

Additional Resources:

Download our Why is Selling So #%&@ Hard ebook

Watch our Sales Guy Unplugged Videos

Read more about Setting Standards

Okay… so I know you might be thinking, “What the heck does growing sales have to do with a peanut butter and jam sandwich… AND why jam and not jelly?”

Not “jelly” because… well, I really don’t like jelly. I grew up with my Mom’s homemade strawberry jam.  And, for years, I would just eat jam sandwiches because I didn’t like peanut butter. But then…

THE SALES GROWTH & PB&J CONNECTION

In 1973, I was offered a full scholarship to play football at Boston University. I accepted and signed my letter of intent but, later in the year, that coaching staff left BU and went to UConn and so I followed. 

As a senior offensive lineman at Hammonton High School in New Jersey, I was 6’4” and 170 lbs. on a heavy day.  I was instructed to consume more calories, lift more weights and ingest lots of protein to build muscle.  Peanut butter was now part of my dietary intake.  During the summer leading up to my freshman year at UConn, I would consume 10,000 calories a day.  That included breakfast and then 5 peanut butter and jam sandwiches between breakfast and lunch.  So, there you go.

As any peanut butter and jelly/jam aficionado knows, when making the perfect sandwich, you want to spread both ingredients all the way to the edges of the bread.  No bread uncovered.  You spread peanut butter on one slice, jam/jelly on the other slice and then smash the two slices together so that the combination of ingredients oozes out of the sides of the sandwich.  Then, just cut in half and eat!

The first time I heard the expression, “Let’s not spread our training program dollars around like peanut butter” was from George Emmons, then president of the community bank at Key Bank.  I asked him what he meant by that.  He said, “Tony, we have limited resources to get this done and so we have to be judicious in how we use our dollars.  We have markets like Seattle that are our highest potential growth market and then we have a market like Vermont.  Vermont is a great market for us - very strong - but we already enjoy sizable market share there, so our ROI isn’t going to be as great.   We need to invest our dollars where we get can get our greatest return.”

And there, my friend, is the connection between building a sales growth sales team and making a peanut butter and jam sandwich!

Now, on to growing sales …

“PEANUT BUTTER” AND YOUR SALESPEOPLE

When you think about your sales team, the collective book of business and the market pool, you have to be more intentional in your investment of time money and effort.  Not all of your salespeople are equal, not all of the clients represented in the book of business are equal and not all of the businesses/people/prospects that are available in the market place can bring you the same revenue, value or profit.  Given the variability, you cannot (and should not) spread your resources like peanut butter.

In my previous articles and blog posts, I’ve talked about the 80/20 principle - the simple concept that 80% of your results come from 20% of your efforts.  You can substitute efforts with people - salespeople, client people, people in the market, etc.  Having said that, I highly recommend you follow Perry Marshalls process of the 80/20 of the 80/20.  Simply stated:  Do the 80/20 math again with the remaining salespeople, clients and prospects.  See below as an example of how to segment a revenue book.  (click here to read the detailed article about the 80/20 of the 80/20).

I believe the chart is easy enough to follow.  The key things here to recognize are:

1. About 96% of your results are coming from just 36% of your team
2. That 36% isn’t tapped out – the top 3 might be, but if you add admin and support staff, you can probably get them to double productivity – spend “peanut butter” differently for this group than for the rest of the group.
3. You have great opportunity/potential in the 2^nd group of 80/20 – the next 3 salespeople (next quintile). Lots of “peanut butter” (intentional coaching) here in training, development, management, marketing/lead generation resources.
4. The last quintile - the bottom 3 people - are not going to get you to the mountaintop based on their current productivity. Unless they are brand new, they not only get zero “peanut butter”, but they also get the opportunity for alternative employment.
5. Some of the people in the bottom quintile might be there because they are new to the organization, so don't’ abandon them; however, make sure you have a very intense on-boarding program to make sure they climb into the next quintile and beyond quickly. Lots of “peanut butter” here.
6. Your middle quintiles - salespeople in the middle 33% of the company - need to get lots of attention (“peanut butter”) for a short period of time because they have to demonstrate that they can actually produce the way you thought they would when you hired them… or they unfortunately validate that you made a hiring mistake.

WHEN TO USE A LOT OF “PEANUT BUTTER”

Follow this same process when analyzing the individual books of business for each salesperson.  Your salespeople should not be treating them all the same. The top 33% of the book brings over 90% of the revenue – treat them that way – with LOTS of “peanut butter”.

And, finally, when approaching the market place, use the information/data from the analysis above when looking at the individual books of business.  Identify the common characteristics in the top 33% of the book of business and then look for new opportunities that look like your top 33%. Stop spending time, money, effort and peanut butter pursuing anybody in the market place that doesn't (or have any chance to) look like your top 33% of your current clients.  (There us a great book on this concept, Selling to Zebras)

Additional Resources:

NO MORE HIRING MISTAKES - Hirebettersalespeople.com

In my series (see previous posts) regarding the constraints to growing sales, the two remaining topics are:

• Ineffective motivation of the sales team
• The “just enough is good enough” approach to hitting setting and hitting goals
  
  

THE POWER OF THE “RIGHT” MOTIVATION

Ineffective motivation of the sales team is not uncommon and it is the subject of one of the more frequent questions people ask me: “Tony, how do I keep my sales people motivated?”  My first response is normally a question in return:  “Do you know what motivates your people?”  The most common answer: “Well, uh, yeah, I think so.”  I cannot help myself when I ask, “Do you know or do you think you know?”  Their most common answer: “I think I know.”

With that in mind, how do you possibly motivate people when you just think you know what motivates them?

What we know about motivating salespeople is that it has changed over the years.  When we first started evaluating sales teams using the #1 Sales Evaluation Assessment – Objective Management Group Sales Evaluation and Impact Analysis – the findings told us that people were externally motivated.  Motivation was money and the things money can provide.  Today, however, we see a different set of results (Read this HBR article on motivating salespeople).

The current findings tell us that sales teams are highly motivated to succeed, but the source of motivation is internal rather than external.  They are motivated by a job well done. They want to be recognized for success and they are motivated by achieving their own personal standards for success and achievement.

I was 9 years old when I walked off the football field the very first time.  I had just finished practice and my dad was waiting on the sideline for me.  He asked me what I thought and I told him I loved it.  “Someday I’m going to go to college to play football.”  Dad asked me if I was sure and I said “yes.”  He then told me, “College football players are in great shape so, if you are going to play college football, you’ll have to be in great shape. Take off your helmet and shoulder pads and start running some laps.”  I followed his advice and I ran laps every night after practice to get in shape to play college football.  In February of 1973, I signed my letter of intent to go to the University of Connecticut to play football.

My dad - my manager - knew my goal and used that occasionally to keep me on track.  Occasionally, when I would fall off the training wagon, he would ask me if I still planned on playing college football.  I would always answer, “Sure!”  He would then say, “Well, I wasn’t sure. I haven’t seen you run or lift weights in a while.”  That’s all he needed to say.  Off I went.

When you know what motivates your people, you can then have the appropriate discussions to keep them on track.

“JUST ENOUGH” IS NEVER GOOD ENOUGH

“Just enough is good enough.” THIS MINDSET DRIVES ME CRAZY!  How do you know that this is your culture?

• Year over year growth is one of the metrics you use to determine if you are getting better
• Comparing one unit in your organization against another is the way you communicate to the teams about which ones are having success – stack ranking and comparing the rank of one team against the others as a way to explain, “If they can go from #22 to #15, then so can you!”
• Hitting sales goals on the backs of the few
• You have people on your sales team who - month after month, quarter after quarter and year over year - fail to hit their sales goal.
  • I don’t mean those that are at 99% one year and 101% the next and then 95% the third
  • I mean those that consistently perform in the low 90’s or high 80’s.
  • Those people that fail to perform still earn incentive comp, are not subject to any disciplined approach to improving skills or changing behaviors
  • There is never a discussion that sounds like, “What happened to the superstar sales person I thought I hired ____ number of years ago?”

I understand how this happens. There is so much pressure to just hit the numbers that, at the end of the day, it really doesn’t matter how you hit the numbers; you just have to hit them.  But what are the long-term consequences of this sales environment?

• Turn over of really good producers that are tired of carrying the load
• Producers who are close to being really successful manage themselves downward instead of upward.
  • They witness that there are no consequences for failure
  • They become “at leasters” – “I’m not as good as Julie, but at least I’m not as bad as John.”
• Recruiting top talent is difficult because, when they talk to your top performers, they tell them that there will be a lot of pressure to perform because nothing happens to the slackers and the company depends on the top producers to make up the difference.
• When goal setting time comes around, people at the top get more heaped on them and those in the middle to bottom of pack argue that the goal you give them was never one they bought into.

SETTING THE BAR FOR SUCCESS

Bottom line is:

• Organizations have to have a mind-shift first about what it means to be successful in the organization.
• There have to be systems and processes in place to catch failure before it happens rather than when it actually happens. Failure never happens all at once. It’s gradual; however, instead of addressing the issues when they appear, managers put salespeople on “double secret probation.”
• The metrics used to determine success have to include diagnostics of the improvement of quintiles year over year. (See chart below for a snapshot of quintile performance.)  The idea is that when you take the snapshot next year, the numbers for each quintile have to be better than the previous quarter, year, etc.
• A willingness and commitment to set the bar higher for success and then hold people accountable to actually DOING the THINGS required to be successful rather than just looking at training data.

I will continue to explore and discuss these constraints to consistent and predictable sales growth.

Additional Resources:

The 80/20 of the 80/20 - What it means for your company and next steps

Get a FREE TRIAL of the #1 Sales Candidate Assessment

In the previous post, I identified 8 clues that would indicate that your sales organization has a sales growth problem (CLICK HERE to read the article and review the 5 clues).  In that article, I identified (in some detail) 2 of the 5 constraints to sales growth:

• Weak or lacking performance management
• In-the-moment coaching rather than coaching that changes behavior and improves skill.

I received some feedback that the previous article was tooooo long and so, instead of covering the 3 remaining constraints here, I will present them one at a time (and hope I keep you coming back for “the rest of the story!”).

Constraint #3 - Hiring salespeople based on the wrong criteria with the wrong processes and systems. 

To Hire Better Salespeople, you have to have a better way to attract better salespeople and a better way to eliminate those 90% that will not do 100% of what you need them to do.

As in the previous article, let’s first determine “IF” there is a problem (check all that apply):

• You have trouble finding enough candidates to choose from
• The candidates you interview all look and act the same
• When you interview candidates, you…
• Spend time establishing rapport
• Sell them on the company, the position and the opportunity
• Your turnover rate of salespeople that don’t work out is at least a 6-figure problem or 2-comma problem (#,000,000)
• When you evaluate the performance of the current sales team, there are people in the middle of the bell curve that are not performing like you thought they would or expected them to
• You feel desperate to fill seats
• Your recruiting is usually reactive

If you answered honestly and have 3 checks or more, then let’s agree there is a problem.

Several years ago, my son, Anthony, and a good friend of mine, Dave Zimmerman, went with me to NYC to watch the Bengals play the Jets.  We were guests of then general manager, Terry Bradway.  We met up with Terry the evening before the game just to catch up and introduce him to Anthony.  While we were in his hotel room, I asked him what was the most difficult part of his job. Without hesitation, he replied, “Player personnel - that’s the most difficult part of the job.”

He went on to discuss how he and the scouting staff spent Thursdays, Fridays and Saturdays all over the country watching college games. Sometimes they attended two games a day just to find the talent they needed to compete and win on Sundays.  Unfortunately, Terry lost his job with the Jets in 2015. Terry is a great guy and a personal friend, but I cannot imagine the pressure and small window for success in drafting NFL players.

In the 2016 NFL draft, there were 256 players drafted.  There are roughly 15,588 student athletes playing on college campuses through out the US.  Two hundred and fifty six is 1.6% of all the college seniors.

I’m not suggesting that your hit percentage should be the same, but Geoff Smart, author of Who and Topgrading, suggests that it be at least 1 out of 20, or in other terms, 5%.

You may or may not notice the intentional use of the phrase “a better way to ELIMINATE those 90%” in the opening paragraph, but one of the keys to hiring better is to get better at disqualifying candidates!

In our approach to helping companies hire better salespeople, we find that it is critical to first change the mindset of the process and then change the process. The mindset that has to change from “find candidates that qualify” to “disqualifying candidates.”  If you work hard at disqualifying, then those that are left are more likely to be successful candidates.  Using this approach to hiring - in conjunction with using a predictive sales success assessment - will help you eliminate hiring mistakes!

I won’t go any further into the details about the process of eliminating mistakes here today except to mention one critical component – scorecards.  You should have in your possession a scorecard to evaluate talent based on the competencies that are required to succeed.  Specifically, that means the competencies, skills and behaviors needed to complete 100% of the job at an extraordinary level. The challenge here, of course, is to sort through the 90% of candidates that are incapable of executing what you need done 100% of the time.

Additional Resource: 

Download our free eBook - How to Hire Bankers Who Will Sell