In an economic environment that is like the one we are in heading into 2023, your growth strategy may not be so much about sales growth, but rather more about holding on to what you have! If your clients are deciding to participate in the assumed upcoming recession, then your biggest questions / challenges won’t be:

• Can we be competitive with our pricing?
• Are our salespeople skilled enough to qualify and close business?
• Will we have enough revenue to keep our people?
• Can we meet demand?

No, your biggest challenge will be with your own sales team and their willingness, drive, and commitment to do what needs to be done to reach out each and every day to find new names / logos to add to their pipeline.

Addressing and solving this problem requires great coaching from your sales leadership and sales management people. Your sales managers and people responsible for developing sales talent MUST HAVE a coaching bias. They MUST have an innate desire to help people improve skill, attitude, will to sell, and behaviors. The will to sell alone though, is not enough. There are a set of skills / competencies that will either support the coaching effort, or hinder the coaching effort.  

If you follow Anthony Cole Training Group regularly, you know we are one of the top distributors for Objective Management Group suite of sales talent assessments and evaluations. We are a top distributor because we are absolutely convinced of the truth as spoken by our own sales development expert, Mark Trinkle, “You cannot fix what you cannot see.”

What you see in this graphic is information that we have when we assess an organization's sales management team. When you look at this, what jumps off the page at you? I don’t know about you, but I see three things that would hinder sales coaching effectiveness:

1.     Consistently coaches and debriefs

2.     Beliefs Support Coaching

3.     Doesn’t rescue the Salespeople

And just for good measure let’s add this one:

4.     Effective at getting commitments

Each one of these has a video that you can access for further clarification.  But for the purpose of this article let me attempt to craft the narrative this way.

You have a sales manager that really loves to coach and develop people, but:

• Doesn’t spend enough time coaching to improve skill and change behaviors. The coaching takes place only when the salesperson needs to discuss a strategy for creating the solution or attempting to figure out how to deal with competitive pricing – how much lower can we offer our product?
• In addition to that, this manager believes that only those new people need coaching, and their experienced, tenured salespeople already know what to do and are hitting their numbers.  (The question that needs to be asked is this:  Is hitting their numbers the same as producing to the available opportunity?)
• When this manager does joint calls with prospects, they fail to let them fail.  Rescuing the salesperson once they make a mistake is also tied to beliefs. They believe that it is more important to make the sale, not look bad, make corrections then it is to let a salesperson fail and let them learn from mistakes.
• Finally, when a manager of this make up does meet with their salespeople, they don’t get caught up in the ‘emotions’ of the minute, they won’t sugar coat questions because they are afraid of the salesperson not liking them, but they will struggle with getting a firm commitment to do the right activity, engage in training to improve skills and change behaviors.

As you can read from this narrative, the bias towards coaching is important and yes, even critical, but the skills to execute are just as critical. Here’s an analogy: I loved playing basketball and thought my road to an NCAA scholarship was via basketball. I had a couple of problems that overwhelmed my enthusiasm for the game: I couldn’t jump or shoot. I played basketball like a football player. The good news is that my love for football paid off and I attended UCONN on scholarship!

Find out what our Sales Managed Environment Certification program can do to help you drive sales. https://anthonycoletraining.com/sales-managed-environment-sme/

In our follow up to last week's March Madness write-up, we discuss the idea of "sales madness", and the notion that it can be defined similarly to insanity, or doing the same thing over and over again but expecting a different result.

There are four reasons that make up our judgement into sales madness.  They are:

1.) Uncoachable Salespeople

2.) A failure to recognize that the game has changed

3.) Being allergic to hard work

4.) A failure to add value

Like many of you, I always enjoy the month of March.  The temperature at least is supposed to start trending in the right direction…my birthday occurs in March (thanks to all of you who sent gifts)…and last, but certainly not least, is the NCAA basketball tournament that we have come to know as March Madness.  Wall-to-wall basketball with good food and good friends is something we look forward to each year here at Anthony Cole Training Group.

As a sales coach, there is another kind of madness I see that is not exclusive to the month of March.  I refer to it as "Sales Madness."  I define sales madness just like others have defined insanity: doing the same thing over and over while at the same time expecting a different outcome.

So, what about this other kind of madness?  Where does it come from?  I sense there are several reasons why salespeople keep doing the same thing over and over again expecting different results, but, to keep our theme of March Madness alive, I give you my “Final Four” reasons that make up the madness. 

They are:

1. Uncoachable salespeople - Some salespeople are simply averse to changing their game.  Maybe they are stubborn.  Maybe they have an inflated sense of how good they really are at putting the ball in the basket.  For whatever reason, the salesperson will push back when anyone attempts to coach them to higher levels of performance.
2. A failure to recognize that the game has changed - It still surprises me how many salespeople are trying to sell like the famous musical artist Prince – like it is 1999.  Buyers today are on a journey.  They are more informed than ever before.  They are starting the process on their own instead of waiting for a salesperson to reach out to them.  Almost 80% of C-Suite level prospects have indicated they will not even come to the phone for a conversation with a salesperson they do not know.
3. Being allergic to hard work - Some salespeople have concluded they can continue to have the same (or even better) results without hustling even more for rebounds and loose balls on the floor.  That won’t cut it.  There is more competition to deal with…not less.  Prospects are more cautious…not less.  Buying cycles (note that I did not say sales cycles) are longer…not shorter.  Sure, you might be really talented.  But remember this – hustle beats talent when talent doesn’t hustle.
4. A failure to add value - Two things happen when salespeople don’t provide value along the buyers' journey that prospects take:  they don’t differentiate and they don’t build relationships.  Add those two things together and it might explain those unreturned emails and voicemails.

I always like asking the salespeople I coach one simple question: 

1. How much are you willing to put on the table in terms of what you are willing to change?  Those that are willing to take the scary route of change generally score more often.

Enjoy your Spring…and here is to confining the madness to the hardwood!

I doubt that you, in public, have a group of producers that you call ‘old farts’ or some other term of endearment.  But what I really wonder is this; Do you have a group that you consider ‘Sales Legends’.  My guess is that the answer is no.  There are reasons for this.

Before I provide suggestions for a solution, let me explain the title:  I recently played in a member guest golf tournament at Triple Crown Country Club with my good friend Jerry Barron.  I’ve known for a long time that since his retirement Jerry plays a lot of golf with his buddies on a regular schedule throughout the golf season. What I didn’t know is that for many years this group was known as the “Old Farts’ gang.  Apparently some people thought that this was a bit insensitive so the pro decided that the group would become known as “The Legends”.

This got me thinking about many of the sales teams we work with and the problems associated with growing revenue when a segment of the sales population isn’t motivated to or can’t grow their book.

The problem associated with the ‘old fart’ team really isn’t about age but rather about three very distinct phases in a sales person’s career.  These phases include but are not limited to those that have been with you a long time and are survivors. Those that do manage a large book of revenue and spend a great deal of time ‘managing the book’ and either cannot or will not grow the book.  And finally you have some people that really are ready to retire but haven’t told anyone yet. Let me clarify these 3:

• The Survivor: Those who have been with your organization for a long time and who have survived the ups and downs of economic swings and changes in your (re-engineered / right sized) company. These people have stayed just off the radar and when ever talent discussions come up they survive the discussion:  “What do we do with…?”
• Large Account Managers: The next challenge is with those in the sales population who handle a couple of key accounts or control a large book of revenue that you really don’t want to lose. These people hold you “hostage”.  Your rationalization is that you are afraid that the business will go with them if they leave or you justify keeping them while saying ‘They cover their compensation so they really aren’t costing me anything.”
• Retired On The Job: Finally you have people who are in fact in the later years of their careers and don’t have the same ‘fire in the belly’ that they did when they first started.  They are empty nesters, have a solid retirement plan, generate a comfortable income from the incentive comp plan and also conveniently may hold the opinion that you can’t teach an old dog new tricks.

Case Study:  Why Retiring on the job is a problem for sales companies.  An insurance agency had a group of mature producers who controlled a revenue block of 5,000,000 dollars in revenue.  The holding company of this agency set a growth goal for this market as well as it’s other markets around the country at 20% gross growth per year  (The company made assumptions of 5% unknown losses in revenue and 10% known loses – non-recurring revenue streams.)  This group of mature producers had stopped producing new business and had no motivation to do so.  That meant that the 1,000,000 dollars of growth on the 5,000,000 dollars had to be produced by the rest of the group who struggled to grow their own book!).

Let’s look at some outside-the-box ideas to build a plan to have a team of legends who leaves a legacy of desire and commitment to excellence and a team of rookies who has the right stuff to grow your sales.

Do This 1 Thing: Eliminate sales goals for them and in exchange, change their comp model to one that is appropriate for managing accounts plus an incentive. 

Do These 2 Things:

• Take the top 1/3 of their book and make it clear that in order to qualify for the maximize incentive comp as an account manager they will be responsible for maintaining their newly assigned book of business at 100%. (1/3 of their book, 33% will equal approximately 90% of their revenue.). 
• To maintain the book at 100% they will have to engage organizational partners, look for opportunities to discuss other product offerings AND ask these BEST of the BEST for introductions.

This is something that institutions and agencies have attempted to do for years but have failed.  (See data and resources below.)

Do These 3 Things: 

• Hire a ‘junior’ producer, officer, or advisor and assign the remaining two thirds of the original book to them. The balance of their compensation comes from an incentive formula associated with new sales and cross selling. This person has the responsibility for growing the remaining book and supporting the “Legend”.

• Establish metrics and ‘high’ standards of performance that will be used to determine success for both parties (entire organization).

• Implement a performance management culture where mediocrity is not accepted, excuses for lack of effort will not be tolerated and data will be used to gain business insights so your sales manager can conduct 1-on-1 intentional coaching sessions.

I recognize the potential fatal flaw in these steps:  Your high producer might be tempted to take an offer from a competitor that is poaching top talent by offering attractive financial packages to lure them.  The questions you have to ask are:

• How well has that strategy worked for you in the past?
• What problems do you inherit when you’ve hired a high priced producer?
• Does the book of business and list of clients they promise ever show up?
• How well have you treated your top people all along?
• When people have left you for greener pastures have you ever heard stories that the promises made to them didn’t come true?

Extra Help – From HBR – Giving Top Performers Feedback – A Key to Keeping That Talent With YOU!