First, it makes sense to define a Sales Managed Environment® (SME™).  For the last 15 years, we’ve built, developed, refined and implemented the principles we associate with a sales environment that is “managed”.  The major components of SME™ are as follows:

1. Setting standards and accountability
2. Coaching for success
3. Recruiting
4. Motivating
5. Upgrading the sales force

Using this as the basis for what the SME™ looks like, we next need to determine if, in fact, your environment has been built and is being executed for success.  So, how do you determine that?

1. You have metrics for success that are consistent with company revenue and profit goals.
2. You have standards for success that drive success rather than foster mediocrity.
3. You have “smart” numbers to help you predict your progress towards meeting and exceeding your standards for your metrics.
4. You inspect what you expect – activity, effectiveness and results.
5. You pro-actively recruit – you have a candidate pipeline.
6. You coach people to improve skills and change behavior.

But, ultimately, you determine success by:

1. Achieving goals.
2. Getting better individually as well as a team – more people carrying the load/higher percentage of producers hitting 100% of the goal.
3. This year’s quintiles (sales team divided by production 1/5s) out-perform last year's.
4. Sales activity/effort is where it needs to be to be successful.
5. The data demonstrates that the team is more effective and efficient at executing the sales strategy and sales process.

So, the question(s) become(s) – is this happening?  If not, why not and, if so, why?

Not to focus on the negative, but let’s assume for a second that at least 3 of the 5 items determining success are not happening.  Where do you turn? What do you do?  The first thing is to determine why.  The answer to why is this – failure of sales management. 

As a leader, that is why you have a structure that includes sales management.  If you don’t, then part of the problem is that you don’t have a sales management structure or you don’t have sales management executing to the structure.

Unfortunately, if you are the sales manager, then this is a tough pill to swallow... but you have to anyway.  This is the job/responsibility you accepted when you said yes to the job, yes to the responsibility and yes to the compensation.  There is no avoiding this conclusion.  However, you can fix this and there are resources to help you. 

Certainly, as a company, we provide our unique set of solutions, but generally speaking, this is what you should be thinking:

• What systems and processes do I need to have/build to support sales growth and a sales team built for growth?
• What assessment tools exist to help me evaluate my skills and the skills/tendencies of my sales team?
• What do I need to do differently in the area of recruiting to get more “A” and “a” players and stop hiring those that won’t succeed?
• What is an effective coaching process I can implement so that I can be more intentional and impactful in my coaching? How do I change behavior and improve skill?

Resources for you to examine:

Assessments:  Cost of bad hires questionnaire

Sales Management Booklet – 9 Keys to Sales Management

Recruiting – How to find, attract, and recruit an all-star sales team – tool kit.

Understand this: I’d love the opportunity to help you build a sales team built for growth.  Contact me and we can look at the options. However, I know that you have access to lots of resources, so whatever you look for, start with these three – assessment, sales management and recruiting.

I just heard Brandon speak at the recent Objective Management Group’s Annual International Sales Conference.  The sub-title to the book is:  How a Kid from Brooklyn Started from Scratch, Bought Yankee Stadium, and Created a Sports Empire.

A couple of things before I get into the book:

• If you are in a position to hire someone to speak to your sales team or organization, Brandon is a very good hire. His soft-spoken, easy going manner will not irritate anyone in the meeting by coming across as a brash, aggressive sales guy from New York.  I think that’s a plus.
• His close is really good.
• His story about Michael Jordan is very entertaining.
• There are some great life and business lessons don’t hit you over the head but are really good.
• I like that he loves and credits his Mom with so much of his success.

Some of my noted captions in the book:

Getting into Syracuse University

• Brandon had applied to Syracuse and he was getting ready to go into the interview to meet with the admission counselor. He states, “As I went into it, I thought, ‘I don’t want this to be the last time I see this place.’”
  • I think this is important because it’s similar to pre-call planning. The first step is to identify the objective of the call.
  • It helped him craft the conversation he needed to have in order to tip the scales in his favor to meet the objective.
• Here is how he states he started the conversation: “I don’t have any money, my SAT scores are kind of low and my grades are pass/fail.  I’ve been working full-time since I started high school; I’ve contributed to every student club I could fit into my schedule; I’ve been involved in so many activities I can barely remember them all, and if you give me an opportunity, I promise you I will use every inch of this school.  You will never regret letting me in.”
• How good is that as an opening statement that doesn’t look, act and sound like every other applicant?

Getting the job at Hard Rock Café in NYC

• Negotiate your first raise before you even get started
  • He was turned down the first time he applied.
  • He went back and suggested they hire him as a consultant.
  • They wanted to hire him for $22,500.00 to be the manager.
  • He declined the offer and countered with:
    • What you need is someone to come in and take charge.
    • Hire me as the assistant general manager at $36,000.
    • Give me a two-month trial period and, if it works out, I want my salary to be $41,000.
    • If it doesn’t work out after three months, you get rid of me.
  • Great advice for hiring the high-priced sales person that is asking for premium dollars to move to your organization.

Not overselling is an underrated part of selling.

Play the game, not the score

• When you have players on the team that are playing the game and not the score:
  • You cannot tell if they are at quota, above or below. They just keep doing the things they are supposed to do.
  • On Derek Jeter, captain of the NY Yankees: “Watching Jeter at the end of the season you couldn’t tell if they were headed to the playoffs or in last place in the division.”
• A valuable employee – one playing the game and not the score – will look like a valuable employee no matter the situation or circumstances. Consistency over time equals credibility.
• This is important when evaluating current a new talent. When someone comes to you with a grievance or suggestion is that the someone that day in and day out performs as an all-star… or one that rides the wave when things are good and complains when things are bad? Pay attention to the source of complaints or suggestions – are they credible?

Selling when you are selling

• When you make a big sale, keep going and make the second big sale.
• Don’t worry about celebrating the win or mourning the loss.
• Shoot your way out of a slump.
• In his presentation, Brandon told a story about calling a prospective influencer 99 times in two days. Playing the game and not the score!
• Before you try and sell someone something, make sure you know where their heart is and what makes them tick. That information is at least as valuable as whatever sales statistics you can offer up.

Steinisms:

• In negotiating, a big part of getting what you want is helping other people get what they want.
• Your true value is determined by how much you give in value rather than how much you receive in payment.
• Dig the well before you are thirsty.
• It’s risky to not take risks.
• If you use your head, you don’t have to use your feet.

Why Do So Many of My Salespeople Fail to Perform as Expected?

If you are a sales leader and you look at your numbers and the people producing those numbers and you scratch your head in confusion over why you are looking at a lack of sales results, what do you do next?  Certainly, you didn’t hire these people to be in the middle of the pack or at the tail end of the conga line, but that is right where they are.  I know you don’t believe you hired them that way, but it’s either that… or you made them that way. Don’t get upset with me or write me nasty comments; the reality is that your team’s performance is a result of who you’ve hired or what you’ve done.

So, in general, why do so many sales people fail to perform? I have detailed answers to that question that you will be hard pressed to find anywhere else besides right here.

• Underperformers have 80% of the desire of top performers. *Note – not all performers have off-the-chart desire – that is about 7% of all top sales people.
• Those that underperform have about 44% of the commitment to succeed in selling that top performers do.
• These two factors combine to measure motivational level. Underperformers have about 60% of the motivation of your top people.

SUMMARY – Underperformers just are not as motivated to succeed.

SOLUTION – STOP hiring people that are not motivated to succeed at the highest level of performance!

Using the Objective Management Sales Evaluation, there are over 100 data points to measure the opportunity for sales growth of a sales team/organization.  Additionally, this data helps us to predict the likelihood of success of new sales people and managers.  Here are some interesting findings based on the raw data I have from assessing salespeople (as well as firsthand knowledge of some of the people in the study).

• Top performers are trainable and coachable
• Top performers have a high figure-it-out factor
• Top performers have a low need for approval and…
• Top performers score an average of 86.8 (higher score is better) and underperformers score 39.6 for handling rejection!
• Top performers are hunters, consultative sellers and closers (average score for skills is 55% of required skills while underperformers average 39.6% of required skills)

SUMMARY – Salespeople – regardless of tenure or previous success - need training and coaching. Also top performers handle rejection extremely well and move on.

SOLUTION – Do not hire based on past performance. (It’s like investing in a mutual fund – past performance is not a guarantee of future returns.)  During the interview process, reject the heck out of the candidate – the strong ones will recover and attempt to close you over and over again!

The following data indicates that sales strengths are better indicators of success rather than sales skills:

• Underperformers have 85% of the sales skills of top performers and have…
• Only 71% of the sales strengths that support execution of sales skills and…
• The severity of their sales weaknesses are 52% higher than that of top performers

SUMMARY – The skills are about the same, but those with strong strengths of desire, commitment, outlook and responsibility win.

SOLUTION – Make sure your pre-hire assessment process looks for strengths and “will sell” rather than just skills, personality and behavioral traits.

So, back to the original question:   “Why do so many of my salespeople fail to perform as expected?”:

• Poor diagnosis of the right contributing factors for success
• Candidates eliminated due to weaknesses rather than hiring for sales strengths
• Too much credit given to sales skills exhibited during interview process
• Lack of solid training and development on the root causes of poor performance

Now that you have the answers to the question, what will you do about it?

Additional Resources:

• Doing what sales managers are supposed to do to have a team built for growth
• Recruiting Talent – A and a
• 9 Keys to Sales Management
• Sign up for our upcoming May 18th webinar - Eliminate Hiring Mistakes and Hire Salespeople Who WILL Sell
• Inquire about our national webinar series for sales managers

I went fishing with a very good friend of mine from First Citizens Bank in NC and he took me to his favorite fishing hole - Lake James.  Keith claims it is the most beautiful fishing lake in the country.  I don’t know if it is - I’ve not seen them all, but this is one beautiful lake!

Equipment - You gotta have equipment.  According to my guide, Keith Walker, there is no such thing as too much equipment.  I didn’t count everything, but I’m guessing we had 12 fishing rods and rigs, well over 100 different types of lures, and enough different types of hooks for another 25 different types of plastic lures.

Electronic Technology - Two radar screens to determine depth of water, temperature of water, structure underneath the water and visuals to determine schools of baitfish and predator fish.

Boat - A boat well-equipped to handle two people, rod holders, bait well, and a 40 hp four-stroke Suzuki engine to get us to various spots on the vast lake where the fish might be feeding or nesting. And a trolling motor at the bow of the boat so that we could quietly and slowly approach fishing areas.

Intelligence - Most importantly, we had human intelligence.  (That's a bit of a stretch with Keith… but I’ll give him credit for intelligence in fishing, North Carolina basketball J and managing a team of investment advisors.  Any other intelligences attributed to Keith is questionable as it is with all former coaches of any kind as they never fail to let the facts spoil a good story.) All the fishing enablement tools are needed but, without the human intelligence to put the pieces together to develop a strategy to find the fish, lure the fish, and catch the fish, the equipment and technology is, well, just equipment and technology.

As an example, the first place we fished is a place known as the rock pile.  It a rather shallow place in the lake with very clear water and, about 7 feet down, you can see rocks, lots of rocks.  Without the human intelligence, I would have not known to go there first thing in the morning, but that is exactly where we were at 6:30 AM on Saturday where we landed 3 fish and hooked another 3.  Then we moved on… because, after about an hour after sunrise, the fish move on.  Human Intelligence.

The same is true in selling.  You can leverage all the technology available to you, but at the end of the day, the technology cannot do what Dan Sullivan described many years ago in his great book - Selling for the 21st Century Agent.

Technology cannot replace what human intelligence and skill can do:

• Development mutually beneficial relationships
• Provide creative solutions to people’s problems
• Get people to take action

If you find yourself not doing those three things on a consistent basis, then you will find yourself in a boat, in a lake and wonder why you aren’t catching any fish.

Time for an Honest Assessment of Your Sales Team

There are many factors involved in the business of selling.  As any salesperson can attest, the sales process can be a complex and daunting experience fraught with obstacles like aggressive competition, tight markets, shrinking budgets and incumbent vendors.  While there are many obstacles like these that are outside a salesperson’s control, there are many others they can control.  So, as an effective sales manager, what do you need to do to understand how and why a salesperson is performing or not performing? 

The obvious metric to use to measure performance are the sales results of the individual. If they hit or exceed goal, all is good.  So, that takes care of about 10 to 15% of your sales force.  But how about the rest of them?  Sure, the results numbers tell you they are not performing but, as an effective sales manager, you need to find out why.  The only way to do that is to look at additional data points.

Data points that you must observe to measure performance:

• Critical ratios in the success formula
• Are they doing the right effort?  (dials, networking, LinkedIn)
• How effective are they? What do the critical ratios tell you? (10% of the conversations turned into an appointment– that is an example of a critical ratio)
• Observation
• Joint calls – Are they executing the company sales steps/process?
• Joint calls – Are they executing the fundamental sales skills…?
• Asking enough questions
• Asking the right questions
• Using stories, analogies and metaphors to weave a story and be conversational
• Effectively listening
• Inquiring for further information to clearly understand the impact of problems described by the client
• Role-playing
• Do they understand the fundamentals of your sales steps/process?
• Do they intellectually understand what you mean by consultative selling, challenger selling, and client-focused interviewing?
• Do they demonstrate in the classroom what you expect them do to in the field?
• Additional data
• Pipeline data – Is the volume increasing? Is it becoming more reliable?
• Stack ranking - Are the various quintiles in your organization performing better this quarter/year than last quarter/year?
• Sales activity – Are they doing enough effort to give them enough at bats to be successful?

In particular, for this article, I want to share a thought on observing your people perform.  Either in role-play or in live selling situations, you immediately get a reaction when you observe your people perform.  My guess is that your reaction could fall into 1 of 4 categories:

1. I would not buy from this person ever; in fact, I would love to compete against them.
2. I would not buy from them right now based on what I just saw/heard.
3. I’m on the fence post with them; I need more information or more time to make up my mind.
4. I would buy from this person; they were compelling, they got me engaged, made me discover some things that bother me that I need to fix and got me to a point where I was thinking I could undo any current relationships, add a new relationship and spend money that I didn’t think I needed to spend.

I have a client that just had a sales meeting that included about an hour of role-play covering a very specific step in their sales process. One of the product line specialists/experts commented the following: “With the exception of 2 people that I observed, I don’t believe I would buy from anyone else that I saw in that one hour.”

Wow, what a courageous, honest assessment.

My comment or suggestion to the team is to go back and review all the video or audio recordings of the role-plays and grade them using the standards I suggested above. 

As a sales leader, effective performance management requires the following:

• Supportive beliefs about what it takes to coach people and get them to perform. If you believe you can manage people better if they like you, then you’re in trouble.
• Recovering from rejection – If you cannot recover from rejection or fear of rejection, then you probably won’t tell one of the salespeople you work with that you wouldn’t buy from them.
• Knowledge of desire and commitment - If you believe that all of your people are trainable and coachable, then you will spend a great deal of time with the same people covering the same sales execution problems.
• Data nutcase - If you don’t look at data, then you won’t be able to have any intentional coaching sessions.
• Time allocation - If you don’t take time to do ride-a-longs or role-plays, then you are missing two important/non-negotiable data points.

These are just a few of the requirements of effective sales management, leadership and coaching.  The key point in the message though is to do an honest assessment of your talent and then have discussions with them about how you honestly feel about their performance.  Yes, it will be difficult.  Yes, you might lose somebody over this.  And, yes, you might actually get people to work harder at their craft.

Resources to help you improve performance management and intentional coaching:

• The Success Formula Template (with Critical Ratios)
• Sales Management Certification Program 
• Why is Sales Management so #$%& Hard:  Articles
• Make sure you get great players who are committed to winning for you – Hirebettersalespeople.com
  

To inquire about distance learning, call me or text me directly: 513.226.3913