In January, we launched Hire Better Salespeople.  It is the recruiting business solution to help companies profile, attract, screen, evaluate, hire and on –board “A” sales talent.  We specialize in financial services, banking and insurance.  There are actually three differentiators in our approach, but now I only want to talk about one of the three – Onboarding.

Here are a couple of things to recognize before we get into onboarding:

1. Your current recruiting process/system today is perfectly designed for the results you are getting today and will get tomorrow.
2. Assuming you have more than 10 salespeople, the Pareto Principle is probably alive and kicking in your organization. If you double click on the 80/20 rule, you will most likely discover that about 40% of your team is responsible for 90% of your revenue.
3. Assuming you have 10 people and the 80/20 rule applies to your organization, you have 6 people responsible for less than 10% of your revenue.
4. If we switch from the 80/20 principle to thinking about a traditional bell curve, you have a large segment of your production team in the fat part of the bell curve. Most likely, those people in the middle standard deviations and those on the extreme left are probably not hitting their production goals.

I have a question about the people who are not hitting goals or are not performing as you thought they would when you hired them.  Did you hire them that way or make them that way? 

If you’ve been following me for any length of time, you’ve probably read that question before.  If you’ve heard me speak or if you are part of our Sales Management Certification program, you’ve heard me ask that question.  It is a question that must be answered because the people that are on your team are your people.  I would venture to guess that you didn’t seek approval to hire someone to be average.  You probably expected them to excel.  So, what happened?

My final assumption (which I really shouldn’t do) is that you hired someone that should be successful, but something happened. Let’s assume those that are not performing were not bad hires. What happened?

Poor onboarding.

In our Hire Better Salespeople program, we “close out” each hiring project with an intensive onboarding process.  We assume that the hiring company will execute its own company onboarding process, but that normally doesn’t address some specific needs. Our system is designed to help the newly hired sales person to get up to speed quickly so that their ramp up time to success is as short as possible.  A solid “sales” onboarding program has several components. 

Here are just a few to-do items that we recommend to our clients or execute ourselves as part of the new hire onboarding.  (This list consist of items normally not covered in typical company onboarding)

• Competitive information training
• Company ideology, mission and vision
• Sales training (especially when more senior salespeople are hired. There is an assumption that, because they are senior, they don’t need additional training or coaching)
• Accountability processes that will take place
• Review contact list
• Joint calling schedule
• Goals and business plan development
• Sales and activity tracking system and process
• Expectations for results, compliance and execution of sales tools
• Appointment debriefing process

Adding to the onboarding list of to-dos is a list of questions that the hiring manager or sales manager must be able to answer for the new hire.  (Partial list)

• What are all of the problems we solve?
• Why are we better?
• What is our brand promise?
• How do we position ourselves in the marketplace?
• Who are our customers?
• How do we get to them?
• Why will they see me?
• What does the first call sound like?
• What is our sales process?
• What are the questions I should be asking?

Not only does a company have to execute these two examples, they must also address THE VERY important data acquired during the recruiting process.  That data is the information gained from initial phone contact interview, the pre-hire assessment data and the information gained about the candidate in the resume review and the interviewing process.

Recognize that no matter how good this candidate appears to be, all candidates come with some warts.  No one, I repeat, no one is perfect.  The problem with dealing with weaknesses occurs because typically the hiring manager is so thrilled with getting the position hired they just want to get the person in the chair, on the phone and in the market.  There is given little, if any, recognition that the person had some sales weaknesses, practice management challenges and/or maybe some technical problems to overcome. 

Take a look at this quick snap shot of a small portion of the information provided about a candidate that completes the OMG pre-hire assessment tool (click this link and complete registration form to receive a complementary pre-hire assessment evaluation to use on a current candidate)we use for all our recruiting:

This particular candidate has several areas where work is needed.  Even if this candidate is determined to be hirable and a great fit for your organization, you are hiring someone that also has sales skill deficits in qualifying, presenting and closing.  You MUST have, as part of your onboarding, a sales development partner that addresses these specific areas or else the results you think you are hiring may not show up for a long time… or maybe not at all!

If you are going to spend resources - time, money and effort - recruiting top talent, then take the time to onboard them correctly. 

Here are some links to additional information and resources.

• FREE WEBINAR - Do you need stronger salespeople to meet current selling challenges? If you answered yes, then this webinar is for you. Register NOW for our September 28, 2016 webinar, "The Magic of the OMG Sales Candidate Assessment." 
• How much are bad hires costing me?  Click this link to complete the formula
• How well am I onboarding? Click this link to download and complete the assessment
• I would like a copy of the Hire Better Salespeople slide document:  email Alex@hirebettersalespeople.com.  Subject line – Request Free Slidedoc

5 Things to Do to Own a Sales Team Built for Growth

I’m working on an article discussing the 80/20 Power Curve.  It’s the concept Perry Marshall discusses in his book:  The 80/20 of Sales and Marketing.  Normally, I focus on the top part of the curve. The part of the curve that represents about 95% of all the production generated by a sales team (See Figure 1 below)

If you look at your total sales results, you would find something close to the following:

                                         Figure1

Last week, I presented to a group of CEOs at the BISA CEO Summit held at Vanderbilt University.  This slide alone raised a few eyebrows and caused some thinking about the relevance, importance and cost of the 64% of the sales team only representing 4% of the results. (32 sales people responsible for 800,000 of the 20,000,000 in revenue.)  What alarmed me was the bottom part of the 80/20 power curve.  What does the bottom look like? (See Figure 2)

                                             Figure 2

Trust my excel spreadsheet.  The numbers add up and they don’t lie.  They may not represent your team exactly, especially if your team has less than 10 sales people, BUT do the math and you will arrive at a similar finding.  Figure 2 is telling the president of the company that of the 50 sales people in his company, the bottom 20 (40%) Represent 32,000 of a 20,000,000 book of business (.0016%).

Regardless of how you dissect it, spin it, negotiate it or defend it, this cannot be what you expected when you hired these 20 people.

So, what do you do? Here are the 5 THINGS:

1. Start with your sales manager. This is the person responsible for sales, productivity, and sales effectiveness. If ROI is one of the metrics you use to determine success, how would you evaluate the ROI on the bottom 20% of the sales team?
2. Next, I would look at the recruiting practices. As difficult as this might be, you have to answer the question about under performers – Did you hire them this way?
3. You will also want to look at the on-boarding and the development plan in place that should be there to improve the probability of success. As above, you have to answer the question – Did you make them this way?  If you didn’t hire them this way – already failures – then you’ve made them this way – turned them into failures.

* I anticipate you might say – “I didn’t hire them, I inherited the team.”  Like it or not, after a year, they are yours!

4. Look at your systems and processes to make sure they are designed, implemented and executed to support successful sales growth.
5. Look at your sales system and evaluate how well it is being executed top to bottom. My guess is that your best people execute a sales process and they execute it consistently.

Additional resources:

Hirebettersalespeople.com

Perry Marshal – 80/20 Power Curve

Sales Management Certification Program

Here is the opening paragraph from the IQ Matix Blog – The Law of Cause and Effect by Adam Sicinski

“A person becomes what they think about all day.”

Understanding the Law

The universal law of cause and effect states that for every effect there is a definite cause, likewise for every cause there is a definite effect.

Your thoughts, behaviors and actions create specific effects that manifest and create your life as you know it. If you are not happy with the effects you have created, then you must change the causes that created them in the first place…

Change your actions, and you change your life… Transform your thoughts, and you will create a brand new destiny.

I’ve been thinking about this for about a week. I was in Pittsburgh last week and one evening my wife, Linda, called me. She told me that our friend, Kim, had called her to inform us that her son, Alex, had an accident while long boarding.  After Linda described the injuries, one of my first questions was, “Was he wearing a helmet?”  She wasn't sure.  This led me to thinking about accidents.

The fall was not an accident. It was an unforeseen incident, but by no means an accident. There was a definite cause and a definite effect that created another cause and another effect and so on and so on until Alex tumbled to the ground which caused severe bodily injury.

(Now…switching gears…)

Recently, I did some simple math in preparation for a workshop I delivered to the BISA CEO Summit in Nashville.  As part of the presentation, I demonstrated Perry Marshall’s Power Curve and the likely diagnosis of the sales teams represented in the room.  In short – about 36% of the advisors represented by a group of 200 advisors were responsible for 95% of the productivity for the entire group.  Once I highlighted the fact that less than 5% of the total remaining revenue was being generated by over 60% of the remaining advisors, I asked the question – “Did you hire them this way or make them this way?”

This is not an indictment of the CEOs present or the firms they represented. Any one of you reading this can do the same math and, if you have 25 or more salespeople that follow the normal 80/20 rule, then you will end up with the same numbers.  The reason I ask the question about hiring or making is because that is “the cause.” 

This group of massively underperforming salespeople is not in that group by accident.  Certainly, they are not in your group by accident. I don’t believe for a second that you intentionally hired 60% of your sales team to represent less than 5% of your sales. However, even if it’s actually 15 – 20%, there is cause for alarm.  And that alarm should create an effect and that effect should create another cause and another effect… and so on…

Which causes me to go back to the title of this post: Sales Management – Performance Management and the Law of Cause.

What is it that your sales manager is doing… or failing to do… that is responsible for the effect?  Here are some questions you might want to consider when attempting to arrive at an answer to that question:

1. What are the standards for success in your organization? I don’t mean what are the goals; I mean the standards.  In other words, I’m assuming that everyone on the sales team has sales goals, but what standard are they held to?  What percentage of the team consistently performs above 100% of the goal?  What percentage of the team consistently performs between 90 and 99% of goal?  What percentage of the team hovers around 80 to 85% of the goal, is still with you and will still be with you going into next year?  You see, that is the standard of performance that your manager is allowing.
2. What impact is your standard for success having on the overall performance of the team?
3. What is happening to the group just below the top tier that consistently hits or exceeds the goal? Does that group have a tendency to a) move upwards towards the top b)stay level or c) slide ever so slightly to your standard of success just before termination?
4. How well is your sales manager actually managing pipeline? Do they actually manage it or just monitor it?
5. What inspection process is executed to “inspect what you expect” and what is happening when what is expected isn’t getting done?
6. How well is the manager inspecting the revenue driver activities and behaviors?
7. How consistently are the salespeople following and executing the company sales process?
8. What information is your sales manager using from your CRM that allows them to have productive intentional coaching discussions with the entire sales team?
9. Finally, what activities and behaviors are you holding your sales manager to that, when executed correctly, would lead to more consistent, predictable sales growth?

Traditionally speaking, when companies think about performance management, most of the focus is on the group that is responsible for driving revenue – the sales team. What needs to happen is that anything that moves should get measured, there needs to be higher standards for keeping jobs and, ultimately, managers need to be held accountable to their own set of activities and behaviors.

Alex is home now and being cared for by his family. Let’s pray for his speedy and healthy recovery.

Additional Resources:

Sales Managed Enviroment® – A development program designed to create high performing sales managers.

Assess Your Sales Process – How effective is the sales process your people are supposed to be following and executing?

“The only difference between successful salespeople and the other 77% is that the successful salespeople actually do the very things they don’t like doing.”  

This is a quote from Dave Kurlan’s blog post about Bill Walton and John Wooden (see Additional Resources below).  Dave uses role-playing as an example.  I see this all the time!  Ask someone to role play in front of the group and they shut tight like a clam.  How can you possibly get better at pressure situations if you don’t practice under pressure?

Bill has published and is now marketing his book, Back from the Dead.  I read a couple of lines froman interview with GQ and immediately went to my Amazon add-in and downloaded the book with my 1-click.

Here was my amazing buying experience:

• I read an article that got my attention.
• I clicked on a button in my Firefox ribbon at the top of my page.
• I searched Amazon for “Bill Walton”.
• The book popped up.
• I clicked on the little thing on the right side of the page that said, “Buy Now using 1-click.”
• I wanted the Kindle version so I could read it on the plane without carrying a big book, so when Amazon asked me if I wanted it downloaded to my iPhone, I clicked “yes.”
• This all took less than a minute.
• And that, my friends, is today’s sales cycle.

In your sales world, it might not take as many steps or it might be more.  In your sales cycle, it probably takes more than a minute… maybe 30 days, maybe 120, maybe a year.

Bottom line: There is something that stimulates the buyer. The buyer gets the information they want and then… when they want to buy… they want to make the process easy and they want options.  If you are not doing those things (stimulating the buying response – providing information to make a buying decision – giving them options – making it easy), then you are going to lose the sale to those that do those things.  Not only will you lose occasionally, but sooner or later, it will become a permanent condition.

Now, my favorite Bill Walton and John Wooden story.

Watch the video to get the whole story, but in short, the lesson for the Sales Leader is this:

• You’ve been hired to do a job – drive sales growth/win market share
• Part of that responsibility is to put the best team in the market.
• As the coach, you establish the culture for winning; you set the team rules.
• You can lead people but you cannot make them do something – players have free will.
• If someone violates the rules, something has to be done – bend the rules, keep the rules
• If a salesperson wants to exert their independence, let them. But let them do it somewhere else.
• They have to want to play for you and win more than compete against you and lose.

Additional Resources:

Dave Kurlan’s blog:
The Sales Success Secret Shared by Bill Walton and John Wooden

Unless you have strong leadership, the money you spend on sales training is wasted. Stop wasting money.  In addition to great players, the key to a sales team built for growth is great sales management Leadership and Management. Read more about our Sales Management Certification.

Make sure you get great players who are committed to winning for you – Hirebettersalespeople.com

Get insight on the 9 Keys to Successful Sales Management 

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.