Are you doing everything possible to make your salespeople successful?

That is the question you must ask yourself if you are responsible for the management of salespeople.

How do you know if you are an extraordinary sales manager?

An Extraordinary Sales Manager:

• Sets High Standards and has Strict Accountability Policies that don’t allow for excuses
• Encourages salespeople to set Personal Goals that are intrinsically motivating
• Rewards Success and Disciplines Failure
• Coaches through the use of Smart Numbers and Critical Ratios
• Holds Regular Sales Huddles and Collects Activity Data
• Uses Best Practices in Hiring Salespeople
• Consistently Upgrades Sales Team through Intelligent Assessment-Based Guidance

If you want to take your management to the next level, you must read this guidebook, The Extraordinary Sales Manager. It will give you the tools to Take Your Sales Team from Good to Great.

Click below to Download your FREE copy!

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