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Why Do Sales People Leave Companies? - Management

Posted by Tony Cole on Wed, Mar 01, 2017

MANAGEMENT RESPONSIBLE FOR A $450 BILLION PROBLEM

According to the article, People Leave Managers, Not Companies by Victor Lipman, the research is unanimous in the premise that managers are directly responsible for the productivity of the people they manage.

Gallup data shows 30% of employees “engaged.” Towers Watson data shows 35% “highly engaged.” Dale Carnegie data shows 29% “fully engaged.” And these aren’t small studies; the Gallup survey includes more than 350,000 respondents and the Towers Watson survey includes more than 32,000. Gallup goes on to estimate an annual cost in lost U.S. productivity of more than $450 billion. This is a staggering figure. Even if it’s imprecise, it gives a sense of the magnitude of the problem.”

INTERESTED IS NOT ENGAGED

My mandolin teacher is a better player than he is a teacher. I’ve not had music lessons before so I may not be an accurate judge of what makes a good music teacher, but I have been taught and coached before.  The best ones have always engaged me by first understanding what I wanted to accomplish, getting a feel for my current state (skill level) and assessing my commitment to being better.  I’ve not had this discussion with John at all. The starting point in my lessons was him jumping in and telling me about keys, chords, progressions and scales.  I might as well take Greek lessons.  I was interested… but not engaged.

lessons-playing.jpg

“LOSING THE SCHOLARSHIP”

I will not seek out another instructor… nor will I tell him he’s ineffective as a teacher because he spends his time showing off stuff that will take me years to learn while I pick my way through the Godfather Theme for the 1000th time.  Why?  Because I don’t have time to seek out someone else, I am learning something and, most importantly, I'm not going to “lose my scholarship” if I don’t get Country Boy by John Denver.

What does this have to do with managers, specifically sales managers? Everything.

I will admit that I just signed up for the music instructor that they had available.

  • Kind of like a salesperson taking a job and really not knowing the qualifications of the manager that will be leading them to success.

I will admit that I’m approaching music as a pastime and not like my life or my retirement plans depend on my music skills.

  • Kind of like a salesperson taking a new sales role and really not understanding what the expectations are for success in the first 90 days
  • Kind of like salespeople already on the staff that are “at leasters” and aren’t worried about their position because, as long as there are people below them on the stack ranking, they won’t “lose their scholarship” (job).

TWO POSSIBILITIES… ONE EVENTUAL OUTCOME

Eventually, one of two things happen:

  1. The company catches up with the WITALAIITUs and the salespeople get put on PIPs. They respond well enough to keep their job or they immediately start looking for a new one.
  2. Or they get fed up with the hassles of performing better without any significant support, training or coaching to help them get better and so they leave.

THE PROBLEM PERSISTS BECAUSE BUSINESS ALLOWS IT

At the end of the day, the turnover ratios in the company continue to put a drain on profitability. HR and hiring managers explain it all away as “the nature of our business”. 

It’s the nature of the business only because business allows it to be so. They allow ineffective recruiting, poor on-boarding, sloppy or missing solid performance management and last, but not least, the continuation of ineffective of coaching.

3 SOLUTIONS TO ADDRESS THE PROBLEM NOW

What to do?  These three things will get you started:

  1. Start with Better Ingredients - Like the cooking analogies I’ve used before, start with fresh ingredients. In this case, I mean start with better people.  I don’t mean people that are just better from a moral or ethical perspective, although that's normally pretty important.  In this case, I mean start with people that fit your culture and will do well on the scorecard for success.

Sample Scorecard For Success:

scorecard-2.png

  1. Have a Supportive Sales Managed Environment® - You have to have the structure in place so that the person in charge of running the show won’t have excuses or reasons to fail.  Essentially, you need to have systems in place for:
    1. Performance management
    2. Upgrading the sales force
    3. Motivating the sales team
    4. Coaching for success
    5. Recruiting top talent
  2. Management with a Coaching Bias - Phil Jensen spoke of the 3rd factor (as it relates to coaching) several years ago at an Ecsell Institute Sales Management Summit. The concept is simple.  There are two factors that most of us rely on to function and succeed – Nature and Nurture.  Jensen suggest that people also rely on a third factor – in the case of successful managers, they have a “coaching bias”. That is their 3rd factor.  They care more about developing people than they do anything else.  They experience success as a result of the success of the people they are coaching.

Additional Resources:

No More Hiring Mistakes. Guaranteed! – http://www.hirebettersalespeople.com

Identify Your Systems and Processes – Sales Effectiveness and Impact Analysis Sample

Topics: sales talent acquisition, sales performance coaching, responsibilities of sales manager

Hiring The Right People Improves Sales Success

Posted by Tony Cole on Fri, Nov 11, 2011

There is a saying in sports; “You can lose with great people but you cannot win without them.”  This theory applies to business, and winning in business starts with a winning sales team.  

Let’s return to the sports application first.  Theo Epstein was the general manager for the Boston Red Sox.  The Chicago Cubs hired him away from the Red Sox and his first item of business to address is the hiring of a new manager for the club.  

Below is an excerpt of a recent article about the process he is going through to get the right person for the job.  Earlier in the week, he had made it clear that one of most important criteria for the job was that the candidate MUST HAVE major league managerial or coaching experience.

One media person inquired what type of attributes Epstein is looking for in a manager.

"In the real world, it's hard to find a candidate that has everything you're looking for," Epstein said. "What you do is you weigh your variables and make your sacrifices where you have to. Often times, if you're going to take a candidate without previous managerial experience, even at the minor league level, he has to represent real upside in other areas. In that case, you have to do even more due diligence than you normally would because you're projecting him into that role."

One of the talked about candidates early in the selection process was Ryne Sandberg.  Below is his stellar baseball resume. 

Ryne Dee Sandberg (Ryno)

Positions: Second Baseman and Third Baseman 
Bats: Right, Throws: Right 
Height: 6' 1", Weight: 175 lb.
Born: September 181959 in Spokane, WA (Age 52) 
High School: North Central (Spokane, WA)
Drafted
 by the Philadelphia Phillies in the 20th round of the 1978 amateur draft.
Signed June 15, 1978. (All Transactions)
Debut: September 2, 1981 
Teams (by GP): Cubs/Phillies 1981-1997
Final Game: September 28, 1997 
Inducted into the Hall of Fame by BBWAA as Player in 2005 (393/516 ballots).

I won't list his stats - induction into the baseball players Hall of Fame speaks for itself.  The one thing that is missing is managerial or coaching experience at the major league level.  He was never interviewed for the position. 

The point here is that Epstein had a profile for the position and he stuck with it, regardless of the star qualities of Sandberg. 

The lessons in this story for senior sales executives include:

  • You must know exactly what qualities the candidate must have
  • You must communicate this to likely candidates
  • You must not be swayed by other experience "outside" your profile
  • You can consider other experience but consider the downside
  • You must be prepared for a "project" if you hire outside your profile

Finding the exact right candidate is a long shot no matter what the position.  As Epstein points out, you have to weigh all the information and consider what you are willing to sacrifice.  As you prepare to "upgrade your sales staff", follow these steps for Sales Talent Acquisition and improve your probability for success:

  1. Build a profile for the IDEAL Candidate
  2. Communicate that profile to "attract" the right candidate (in ads, etc)
  3. Screen (assess) the candidate before interviewing the candidate
  4. Create screening and interviewing processes that simulate the environment in which the candidate will have to perform
  5. Make the candidate sell you, DO NOT sell the candidate on the position
  6. Have a detailed communication process in place so that once hired, the candidate knows "exactly" what the objectives and expectations are.
  7. Have a very tight and detailed on - boarding process that ALL candidates go through regardless of their experience.
  8. Inspect what you expect for the first 180 days of their employment

Following these steps will improve your probability for recruiting and sales success.  To help you begin, try this Free 3 Day Express Screen Trial (select the "Sales Candidate" option).

                                   Sales Screen Trial

Topics: hiring sales people, sales talent acquisition, improving sales, sales people, sales candidates, sales assessments

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    About our Blog

    Founder and CLO Tony Cole has been working with financial firms for more than 25 years to help them close their sales opportunity gap.  He is a master at using science based data and finely honed coaching strategies to help build effective sales teams.  Don’t miss his weekly sales management blog insights.

     

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