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Keeping Your Eye Out for New Sales Talent

October 7, 2014 By Larry Lewis

looking for sales talentFiring someone is not an easy thing to do. One part of you doesn’t want to fire someone, and another part of you wants to do it so you can move on and invest your energy in a new candidate. The task is particularly tough when the salesperson is a marginal producer with a previously successful track record. If you are unsure whether to terminate a salesperson ask yourself this: If this individual walked into your office tomorrow and quit, would you be relieved or would you try to keep him? Your answer will determine what you should do.

Unfortunately, most sales managers hang onto their marginal producers longer than they should, especially in tight labor markets. Sales managers are afraid to let someone go because they need a body in the position and someone (even a poor performer) is better than no one. For this reason, you should always be on the lookout for new sales talent. When you have a great candidate waiting in the wings it is a lot easier to let go of a poor performer.
This is the same reason that underlies our principle that says “the better you are at prospecting, the better you will be at selling.” When selling, when you have a full pipeline of prospects you are not afraid of disqualifying a prospect who isn’t a good fit. Similarly, when recruiting sales talent, if you have several good candidates waiting in the wings you won’t be afraid of letting go of a poor performer or turning down a candidate who is marginal. As a result, the overall caliber of your sales organization will rise accordingly.

In addition, when setting the standards for your sales team, your poor performers have a bigger impact in terms of establishing expectations than your top performers do. We like to think that by hiring a top performer he or she will raise the bar for everyone on the sales team, but it’s not so.

Hiring a top performer may motivate the top one or two salespeople to work harder in order to stay on top, but the bulk of your sales team will not do anything differently. As long as there is someone below them in terms of performance, the average salespeople will think this: “Hey, I am not the best, but at least I am not the worst.” Getting rid of your poor performers will cause the people in the middle of the pack to step up their game. They don’t care if they are first, but they don’t want to be last. The fear of losing their job is a powerful motivator.

As Brad Smart explains in his book “Topgrading” and as Jack Welch taught us when he was in charge of General Electric, the secret to building a culture of excellence is to routinely replace the poor performers at the bottom of your talent hierarchy with salespeople who have the potential to become top performers.

Promoting Overachievement in Salespeople – Part 2

September 30, 2014 By Larry Lewis

SupermanAccording to sales expert Dave Kurlan, founder of Objective Management Group, there are ten factors that impact a salesperson’s propensity to overachieve. Last week I presented the first five. This week I will present factors six through ten:

6. Self-Starters – This is whether salespeople are more effective when working independently or as part of a team; and whether they require supervision or can work without it. If you have self-starters on your team, you are one lucky manager. If not, you must start them up every day or as often as it takes.

7. Skills – The more the better, but let’s focus on the most important skillsets for overachieving. Your salespeople must be able to hunt for new opportunities, identify the most qualified of those opportunities and be able to close them. Anything else they can do is a bonus!

8. Sense of Urgency – Your salespeople must have enough urgency to get their opportunities closed, when they become closable, even when their prospects are trying to put them off.

9. Hidden Weaknesses – Unfortunately, there are weaknesses that will neutralize all of the previous eight factors. There can be dozens of weaknesses that could impact performance but none are so powerful as these five: High Need for Approval, Tendency to Become Emotionally Involved, Non-Supportive Buy Cycle, Money Issues, and a Self-Limiting Record Collection.

10. Coaching and Training – Your coaching must support any training initiative and help salespeople overcome their weaknesses, develop skills and master the selling process. While most training will be conducted by sales development experts from outside your firm, the coaching absolutely takes place from within. Pre-call strategizing and post-call debriefing, with every salesperson, at least every week.

 

Promoting Overachievement in Salespeople – Part 1

September 23, 2014 By Larry Lewis

goals planningAccording to sales expert Dave Kurlan, founder of Objective Management Group, there are ten factors that impact salespeople’s ability to overachieve. Here are factors one through five:

1. Goals – In terms of setting goals, we are talking about “raise the bar, stretch out of the comfort zone, more than the typical 15% increase in sales” type goals. You must raise expectations in order to celebrate superior performance. In addition, when setting goals, there are two things to remember: (1) a forecast and the plan that supports that forecast come from the goals; not the other way around; and (2) goals should be derived, not from the company, but from the individual’s income requirements, based on the bills that accompany life’s obligations and desires.

2. Incentives – This includes the compensation plan, sales contests, commissions, awards and prizes. Incentives bridge the gap between the corporate objectives and the personal goals we just discussed. If an individual has established personal goals but the company’s compensation plan isn’t designed to reward superior achievement, the incentive to perform cannot be maintained. If a company has a rock-solid compensation plan but the salesperson’s personal goals don’t excite them, the personal incentive to perform will be lost. Remember, most of us work for selfish motives. In other words, our personal motives take priority over a company’s objectives. The job of management is to help align a person’s personal goals with the company’s objectives.

3. Motivation – Motivation results from the combination of Goals and Incentives. In essence, it is the salesperson’s desire and commitment to do whatever it takes, every day, to reach their goals. When they don’t do whatever it takes to achieve their goals, it’s your job to motivate them by knowing what each salesperson’s goals are and reminding them what they need to do to achieve them. When talking about their goals in this context, I’m not talking about income requirements or gross sales volume. That doesn’t have the emotional impact to motivate someone. I’m talking planes, boats and cars, big houses, vacation homes, golf trips, world travel, home theaters, fantasy camps, exclusive events, etc.

4. Pipeline Management – The key to managing a sales pipeline effectively is working with critical ratios. The critical ratios you want to work with are: (1) Monthly sales goal, (2) Closing ratio, (3) Average sale and (4) Length of the selling cycle. Let’s say that a salesperson has a six month selling cycle, a $100,000 monthly goal, a $20,000 average sale and a 25% closing percentage. Effectively managing the pipeline requires that your salesperson places 20 new opportunities in his pipeline each month. How did I arrive at this? With an average sale of $20,000 it will take five $20,000 sales to achieve the monthly goal. With a 25% closing ratio, it will require four times of the number of opportunities worth of total of $400,000 (25% of $100,000) entering the pipeline 6 months in advance of the monthly goal to achieve that goal. If the goal is for July, then the opportunities must enter the pipeline in February. The number to focus on is the number of new opportunities entering the pipeline. Get that to work and the outcomes are all but guaranteed.

5. Accountability – This is huge factor in overachievement. You must hold each salesperson accountable to something measurable (like the number of conversations required to set the number of appointments needed to identify those 20 new opportunities) every day. Even more importantly, you must have consequences for failure to meet those requirements and consistently follow through whenever necessary. Develop the nerve for full accountability and you’re nearly there!

Next week, I’ll discuss factors six through ten.

 

Common Myths and Misconceptions about Salespeople – Part 2

September 2, 2014 By Larry Lewis

bustedIn their outstanding book “Discover Your Sales Strengths,” Benson Smith & Tony Rutigliano of the Gallup Organization explain that “much of what has been written and taught about sales excellence has little to do with what really matters. All too many managers, authors, and so-called sales gurus are dead wrong about what it takes to be a great sales performer.” In research conducted by the Gallup Organization, they identified several myths about what it takes to succeed in sales. In my last post, I discussed the first four. In this post, I will address the remaining three:

The Money Myth – All salespeople are motivated by money.

Fact:  Not all salespeople are motivated by money. Even salespeople who have a strong desire to earn significant incomes are often motivated by other factors as well. Gallup’s research shows that motivation is often very different for different salespeople. For example, Gallup’s researchers met countless successful salespeople who did poorly in school. Why? – Because school did not provide the right motivational rewards to satisfy them.

Gallup found phenomenal sales reps that were happy to earn $80,000 a year, and they found phenomenal salespeople discontented with earning $300,000 a year. If you’re anything like the best salespeople Gallup studied, your motivation is not one-dimensional.

Research conducted by Dan Pink and explained his book titled “Drive,” shows that people are more motivated by intrinsic rewards than extrinsic rewards. To a salesperson, intrinsic rewards are things like recognition, a sense of purpose, fulfillment, satisfaction or enjoyment. It also includes the love of selling, a feeling of mastery or even when they have something to prove to others. Extrinsic rewards are more material and include things like money, toys, vacations and other prizes. Over the last decade we have witnessed a significant shift in salespeople who are motivated more by intrinsic rewards than extrinsic.

Salespeople are often motivated by a desire to feel significant, or by competition, or by a desire to be in charge. Some salespeople have an intense need for the respect of their colleagues or customers. Your salespeople do what they do for their reasons, not yours. Find out what drives them personally and find a way to synchronize what they want with what you want. Treating people fairly does not mean treating them all the same.

The Desire Myth – If you can think it, you can achieve it. People can do anything they want to do as long as they are willing to work hard and make it happen.

Fact:  Motivation is critical to excellent performance, but motivation alone is not enough. Our society sends the message that people can do anything they want to do as long as they are willing to work hard and make it happen. We hear this from elementary school on, but in the back of our minds, we know this just isn’t true. People need the appropriate strengths in order to be successful in a given occupation. Motivation, by itself, is not sufficient if you are to become a superior salesperson. Strengths and skills are just as important as motivation. Motivation without strengths and skills is wasted. Strengths and skills without motivation is untapped potential.

The Training Myth – Training alone will turn an average performer into a top performer.

Fact:  It is hard to ignore the fact that while most of a company’s sales representatives go through the same initial training program, there is a big difference in the results those salespeople generate. Why? While Gallup believes that training is helpful to improving sales performance, it helps those with inherent strengths, primarily talent and motivation, much more than it helps poor performers. Yet much of the training that companies provide is directed toward the poor performers.

Companies should provide training only to those that have the crucial elements for success (Desire, Commitment, Accountability and a Positive Outlook) and the strengths to capitalize on that training. Training people without these factors is an exercise in futility. Below average performance are typically plagued by a raft of hidden weaknesses and the lack of the crucial elements for success rather than a lack of training. Your best return on investment often comes from training your top performers to be even better.

Moreover, in order for training to be effective, sales management must reinforce the training and put the right systems and processes in place to support it.  These systems and processes include: clearly defined target markets, strategies and goals, key metrics that can be used to hold salespeople accountable using a pipeline management tool and an effective sales coaching process.  In addition, the compensation plan needs to reward the right behaviors. Therefore, while training is necessary for building a high performance sales organization, it is not enough all by itself.

The Bottom Line: Recruit salespeople that are motivated and have the  strengths that will support their ability to sell value, build relationships and gain commitments. (You will learn more on this later.) Make sure those individuals believe in the value you deliver to customers and are passionate about the products and services you sell.

Find a process for selling that fits the products and services you sell within your specific industry. Use it as an overriding strategy and a means for communication, but be careful not to compel every salesperson to operate in exactly the same way. Give salespeople the flexibility to choose a style and set of techniques that mesh with their strengths. Train those people to maximize their effectiveness. Remember, your employees do what they do for their reasons not for yours. Find out what drives them personally and find a way to synchronize what they want with what you want. Treating people fairly does not mean treating them all the same.

Common Myths and Misconceptions about Salespeople – Part 1

August 26, 2014 By Larry Lewis

mythsIn their outstanding book ”Discover Your Sales Strengths,” Benson Smith & Tony Rutigliano of the Gallup Organization explain that “much of what has been written and taught about sales excellence has little to do with what really matters. All too many managers, authors, and so-called sales gurus are dead wrong about what it takes to be a great sales performer.” In research conducted by the Gallup Organization, they identified several myths about what it takes to succeed in sales. Here are the first four:

The Education Myth – A higher degree and better grades equate to better sales performance.

Fact:  Gallup found that most of the salespeople in the top quartile did not have advanced degrees. In fact, most of the best performers had not achieved high grade point averages in college. In all the companies Gallup has studied, they have never – even in very technical fields – found a relationship between education and sales success.

The Experience Myth – Better salespeople typically have more experience.

Fact:  Sales is not an experience-sensitive profession. The learning curve in most sales jobs is short. Gallup rarely found a strong correlation between experience and results.

The “A-Good-Salesperson-Can-Sell-Anything” Myth – Selling is selling; In other words, a good salesperson can sell anything.

Fact:  From time to time the researchers at Gallup found salespeople who had done a good job in several different sales capacities. However, such all-around naturals were rare. Instead, they repeatedly found that salespeople who did the best in any company shared a configuration of skills and strengths that were well matched to their roles. Thus, a salesperson might do an exceptional job in one situation and a mediocre job in another.

The Relationship Myth – Relationships are critical to selling.

Fact:  The notion that relationships are critical to selling is so widely held that everyone assumes it must be true. And in part it is. People with strong people skills frequently use those strengths to generate positive results. But we also see people with great relationship abilities who are not able to sell a thing. Why? Because relationship-building skills alone are not enough.

The best salespeople are able to get customers to make commitments. They are not afraid to risk the relationship to challenge a prospect’s perspective, confront a customer or ask for the business. Surprisingly, Gallup has found a good number of top salespeople who have only average people skills, but they do have the ability to influence others.

Salespeople that avoid relationship selling actually build better business partnerships with their customers. Their customers remain loyal because there is a good business reason. The business they do with their customers is not based on whether they like someone or not. That means that the salespeople have better control over their future orders. They find it easier to achieve the targets that they have set.

This insight was recently corroborated by the research conducted by the Corporate Executive Board (“CEB”) and discussed in their book titled “The Challenger Sale.” The CEB found that of all the different types of salespeople they studied, the relationship builders had the lowest overall results. When it came to selling commodities,  only 11% of the top performing salespeople were relationship builders. When the sale was more complex and a consultative sales approach was preferred, only 4% of the top performers were relationship builders.

One of the biggest reasons for this disparity is that salespeople with strong people skills are often plagued with hidden weaknesses that impede their ability to sell. The big five are: (1) High Need for Approval, (2) Non-Supportive Buy Cycle, (3) Money Issues, (4) Tendency to get Emotionally Involved, and (5) Self-Limiting Beliefs. These weaknesses are typically invisible to most sales managers.

Salespeople that continue to rely on relationship selling will find that they get poorer results in return for the effort they expend. Their prospects will be delighted at all the help, friendship and free consultancy that they get from these salespeople, but they will often go elsewhere to place orders. Relationship sellers will always struggle to control their sales pipeline and they will find it hard to meet their sales objectives.

The Essentials of Being a Good Sales Manager

August 19, 2014 By Larry Lewis

As a sales manager, your primary responsibilities are (1) coaching and developing, (2) motivating; and (3) holding your salespeople accountable to the highest possible levels of achievement. Done right, there is probably no more maddening and demanding job in the universe. In addition, you often have to spend a significant portion of your time recruiting new salespeople.

As your sales managers go, so go your salespeople. Salespeople will generally not do more than sales managers ask them to, and sales managers cannot coach them beyond their own personal capabilities to sell.

 Coaching and Development

The process of coaching salespeople consists of an on-going dialogue that includes, but isn’t limited to, pre-call strategizing and post-call debriefing. Under ideal conditions, this should take place weekly. This means helping your salespeople discover what they can do to improve without being overly critical.

When managers are ineffective at coaching their salespeople it is often because they aren’t spending enough time at it. Today’s sales managers should spend fifty percent of their time coaching their salespeople.

On some occasions, well-intentioned managers perform the activities of being a coach, but they do it poorly when they have not created the proper environment for productive and effective sales coaching. Salespeople must have a good business relationship with their managers. They must trust their manager’s intentions, believe in their advice, and respect their expertise. Salespeople must be open to change and sales managers must be rep-focused rather than self-focused. This means that the sales-manager must never place his or her own needs ahead of the sales force. This includes taking credit for the team’s successes and placing blame for the team’s failures.

In addition, in order to be an effective coach, you must have a unified system for selling in place. A selling system is an overall strategy and set of techniques designed to ensure that you handle every buyer-seller interaction in as close to the optimum manner as possible.

A unified sales process gives you and your colleagues a common language with which to share ideas, analyze past sales calls, and strategize upcoming appointments. Everyone on the team must be operating from the same playbook.  Without a sales process, you won’t be able to have the kind of quality conversations pertaining to specific deals that you need to have on regular basis to improve the performance of your sales team.

Motivating

Motivating salespeople is an on-going process. On those days when a salesperson isn’t able to “self-start” you need to step in and provide an external dose of motivation. Unfortunately, those days are far more common than anyone realizes, and you can only be effective when you know the unique motivations of each of your salespeople.

You should start by helping your salespeople get in touch with the dreams they have probably long forsaken. To be truly motivating their personal goals must be derived from their dreams. If you take the time to get to know your salespeople, you will know how to motivate them and they will be more responsive to your coaching. If you really want to generate sales growth within your organization, this is an easy and powerful place to begin.

From there you must help your salespeople realize that their goals are achievable and help them construct a plan to reach them. This plan should consist of activities and behaviors that, if performed consistently, will manifest in the results they (and you) are seeking. It is your job to hold your salespeople accountable to this plan.

Holding Salespeople Accountable

Holding salespeople accountable is perhaps the most feared part of sales management. It requires clear, mutual expectations for each salesperson’s required activity on a daily or weekly basis. Instead of holding your salespeople accountable for a certain sales volume on a monthly or quarterly basis, you should hold them accountable to the behaviors they need to perform on a daily basis to achieve these results. When salespeople fail to perform the required behaviors, you should meet with them, express disappointment and remind them that their performance was not acceptable. Next, you should make it clear that they must meet those expectations in the next measurement period and discuss the consequences related to their failure to perform as required in the future.

Although the consequences must be expressed clearly, you must also bring out their personal motivation for changing their behavior. The section on how to motivate salespeople will give you an effective process for doing this.

I believe that you should use a “three strikes and you’re out” philosophy. The most important part of this process is following through. This is also the part that most managers fear. It requires confrontation and although it may make you uncomfortable, it is necessary. It sends a powerful message that you will not accept mediocrity.

The Importance of Recruiting

One of the biggest fears of holding people accountable, is the fear that if the sales manager is too tough on a salesperson, the salesperson might leave. As a result, the sales manager will be stuck with an open territory.  At best, this dilemma results in lost opportunity. At worst, the sales manager must step in a fill the salesperson’s role. Therefore, it is extremely important that you are always building a bench of potential sales talent that you can send into the game when one of your team members quits. If you have several good candidates waiting in the wings you won’t be afraid to hold a marginal performer accountable and, if necessary, let them go.

What Else Gets In the Way?

Two other things typically get in the way of being an effective manager – your ego and your need for approval. As a manager, you can no longer enjoy the glory of closing the big deal. Your job is to help your salespeople experience that glory, so you’ll have to put your ego on hold and learn to live vicariously. Secondly, you have to realize that you are now the boss, and you can no longer be a friend to the people who work for you. You are now more like a parent who has to do what is best for children, even if they hate you for it in the short term. In the sections that follow, I will provide a clear outline of how to perform each of these functions.

Client Builder Sales & Marketing launches new website.

August 1, 2014 By Larry Lewis

epic_salesOn August 1, 2014 Client Builder Sales & Marketing launched their new website at www.ClientBuilderSelling.com. If you haven’t seen it already, check it out and sign up for any of the free tools and resources CBSM has made available.

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