Despite how good a
This post was prompted by an article from Bank Investment Consultant: Why Advisors Will Feel Freer To Make Career Moves in 2018 by Mark Elzweig.
It's not that I'm against sales teams leaving one company for another. But over the past 25+ years, I've seen too many of these moves fail-- Fail to work out for the hiring firm and fail to work out for the team.
Here is what you should be cautious about if your company is considering this tactic:
- The book of business the team says they control is never really under their control. Just like your company’s business belongs to the company, the revenue the team plans to bring actually belongs to their current employer company.
So ask yourself: What would you do in this situation? Of course, you would fight your *ss off to keep the clients and the revenue and chances are, you would keep at least some.
You would probably involve lawyers, an expense in time and money. This means delays in the
- These people come from a culture with systems, processes, and procedures that are different than yours, perhaps considerably different. Often this is not an easy fit and in some cases, it is quite difficult. If this team is truly high-powered, these people probably got away with some things that you wouldn’t tolerate. You may not tolerate certain behaviors to which they have become accustomed.
- At some point in the future, the acquired team inevitably forgets that they said “Yes”. “Yes” to how they would be managed, “Yes” to the goals set, “Yes” to the business processes and “Yes” to the compensation package. They will have selective memory and problems will arise when they remember promises they thought they heard/wanted to hear.
- You may discover that they really aren't as good as they indicated. Unless you do a deep dive into how they actually generated all the revenue they boasted about, you might find out that some of the revenue was inherited, or that their former company had certain products and services that gave them an unfair advantage which you don't have. Maybe the production came from a couple of major accounts that grew on their own and these individuals were more account managers/ farmers and not the hunters you needed and thought you were getting.
- If they came from a 'brand' organization and you are a solid, but
second tierorganization (not a well knownbrand), you may discover that this team succeeded because of the logo, nameand reputation of the brand.
- If your company is like most, it may oversell the team. Pride in one’s organization is common and is positive, except when hiring. Selling the positives and minimizing the negatives will come back to haunt you when the new talent recognizes they traded one unsatisfactory situation for another.
Recruiting talent, poaching teams, and growing your organization by increasing talent numbers is difficult. Despite the method you choose, there are always risks.
Below are the keys to
- Develop your own team to be
high performing. Make sure you have a Sales Managed Environment that has a keen focus on performance management, intentional coaching, and recruiting.
- Recruit the best talent for the specific role. Everyone is competing for "A" players, but you don't need "A" players to grow your business. What you need is...
- Recruit people who are better than those you have today!
- Don't be desperate. Have a process to grow sales. Follow the process. Hold people accountable to behaviors and numbers. Be proactive in recruiting.
Should you decide to risk acquiring a high-performance team from a competitor, make sure that they are clear on all aspects to which they are agreeing prior to hiring.