Текст книги "Make Winning a Habit [с таблицами]"

Автор книги: Rick Page

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There are two approaches to assessing benchmark strengths and weaknesses. You can use experience and intuition, or you can do a more formal assessment. Or, depending on the amount of time you have, you can do both.

Some weaknesses are immediately obvious to a new manager, and you can begin taking action right away. Sometimes, however, when you have been there a while, the real weaknesses in a sales force may be harder to detect. I’ve been in evaluations where it was obvious that the management had a gut feel for what they needed but really didn’t know because they hadn’t measured it.

This book should help you with an overall organizational assessment scorecard. Assessing individual sales rep talent can’t really be done effectively until you have defined your ideal sales cycle and the skills and competencies that this demands.

The quickest and most effective way to start is with a win/loss analysis by an outside third party. This will give you the quickest feedback on why you are winning or losing and where your fastest returns for improvement lie. All this can and should be completed within 90 days to determine your initial priorities.

2. Start with People—Managers First

To put it simply and starkly: If you don’t get the people process right, you will never fulfill the promise of your business.

Larry Bossidy and Ram Charan, in

Execution: The Discipline of Getting Things Done

Front-line sales managers are the key to any sales initiative. Most managers fail because they stick with poor performers too long. Without sales managers who share your vision and values and who can and will reinforce your process, new hires will be like pouring water into a leaky bucket.

Most successful sales executives have a following of loyal lieutenants whom they can call on in these situations. For those who have burned their bridges, this takes a while longer.

Once front-line managers have defined a new hiring profile for reps, they can begin upgrading the talent, replacing those who can’t or won’t change.

3. Next Is Your Sales Process

If you can’t describe what you are doing as a process, you don’t know what you’re doing.

W. Edwards Deming (1900–1993), Father of Total Quality Management

Third-party methodology vendors can give you a jumpstart in this area, but the outcome should be your own unique best-practice sales cycle for your company and your industry. Your sales technique should include the concepts from the methodology and form the basis of your training effort.

Defining your sales technique also will secure buy-in from your sales managers because it is their own work. The entire coaching discipline hinges on their reinforcement. It should be in both their performance review and comp plan, or you will get no more than a passive effort.

This can become a huge overkill project if you let it. It should be done in less than a week.

4. Positioning—What Do We Say About Us?

Would you persuade, speak of interests, not reason.

Benjamin Franklin, «Poor Richard’s Almanac»

As outsiders, when we review sales messaging, we often find unfocused “me too” messages that sound exactly like the competition. Too many features, too few benefits, lack of focus on solutions for buyers, and poor differentiation – all delivered in brochure format to the sales force.

An objective, and often brutal, evaluation of your techniques in this area usually is needed to make sure that you are not “eating your own dog food.” The vice president of marketing’s buy-in here is essential to avoid defense and denial.

5. Creating a Winning Sales Culture – Align the Infrastructure

Priorities in this area include alignment of the new sales process with the rest of the sales and marketing infrastructure.

Unless compensation, rewards, roles and responsibilities, support, and policies are aligned with the new selling process, you will simply increase frustration by training salespeople to sell one way while the rest of the organizational systems incent them to act a different way.

Sometimes your new process may drive new roles for some people. These must be defined clearly and sold internally. Finally, the whole organization needs to support a selling culture as one team. This is where the support of the CEO is not an option.

6. Execution—Level Selling Skills

Some sales managers prefer to address individual selling skills first and then move to competitive strategy. Others prefer to make sure that they are selling to the right accounts and the right people before they focus on developing the skills necessary to create individual preference. Many companies have used two different vendors simultaneously to address these competencies.

These individual-level skills include discovery, listening, probing, linking solutions to pains, vision creation, presentation and writing skills, objection handling, time management, and negotiating, among others. Who needs and who gets this type of skills training should come from the performance review, which should come from your ideal sales cycle. The application of the skills should fall out of your sales strategy for that account. The result is more realistic strategy-based execution skills training rather than generic classes.

Using a single vendor allows a completely integrated strategy and training approach. Whatever the priority, though, both skills and strategy are needed to identify the key decision makers and win their hearts.

7. People and Process First – Then Automate

Why is technology so low on the list of priorities? Because if you take a bad process – combined with weak people – and automate it, you will just accelerate mistakes and frustration.

Joe Galvin, of Gartner, Inc., states: “Sales culture dictates to a large degree technology adoption and that technology alone will not change behavior… Sales productivity will be improved by sales technologies only when it is deployed into a sales culture of leveraging its potential.”

The graveyard of failed sales force automation initiatives has taught us that refining your processes first—selling the right messages through the right people—should precede any sales force automation effort.

8. New Metrics and Feedback for Perpetual Advantage

A transformation demands sustainable change. Too many initiatives wane after the first few months. Sales messages quickly lose effectiveness due to competitive responses. It shouldn’t take a year to find out whether or not a salesperson can cut it, and by the time a deal hits the forecast, it is usually out of control.

Permanent process change to get ahead and stay ahead of the competition requires faster feedback and newer metrics than ever before.

Since not all sales improvement efforts are alike, setting your priorities depends on where your sales force is and where it needs to be. Based on the successful transformations we have observed, we have built an assessment tool to help you compare your organization with the best practices of top sales forces.

CHAPTER 3: Defining the Scorecard

Quality is not an act. It is a habit.

Aristotle

Once you agree that your sales force is in need of improvement, where do you start? How do you assess your sales organization in addition to just revenue? How do you identify your weaknesses?

The principals of our firm, all successful sales executives themselves, have worked with more than 250 leading sales organizations worldwide. Together, we have identified five universal areas of sales effectiveness – Talent, Technique, Teamwork, Technology, and Trust – and how they differ at each of the four levels of sales strategy: Individual, Opportunity Management, Account Management, and Industry/Marketplace. In Chapter 9 we discuss essential elements of achieving and maintaining Transformation for permanent change.

Although most sales organizations execute best practices in some areas, rarely do they achieve best practices in all areas. And certainly, these are not all the best practices in selling, but they should be enough to get you ahead of your competition and closer to your true potential as a sales force.

The result is a scorecard that we have developed to provide sales managers with a gap analysis of their organization. Through this scorecard, we’ll show you how you compare with some of the best sales forces in the world.

Introduction to Sales Effectiveness Best Practices: The Five T’s of Transformation

Here we will briefly introduce the criteria. In later chapters we will go into much more depth.

Talent

The first step in sales effectiveness is finding the right people. Selling in a complex sale requires a unique combination of sales competencies. Most of the sales managers we talk to say that fewer than 20 percent of their salespeople can consistently manage a complex sale independently.

Most people interview based on two things: performance and personality. But there isn’t a salesperson out there who can’t craft a good résumé and sell a one-hour interview. So what do you look for? Every interview is a selling event. Without a good hiring profile, which has been written and tested, how will you know what a good salesperson looks like when he or she walks in the door? Most people who think they have a good mental picture of what they are looking for would be stunned by their inconsistencies if they actually wrote them down.

Technique

There are hundreds of companies that teach sales skills – presentation skills, objection handling, closing, etc. But the one skill many salespeople lack is the ability to effectively connect their solutions to the prospect’s business problems.

In addition to a greater understanding of the client’s pain, refinements and techniques continue to advance in the areas of controlling politics, competition, and the decisionmaking process.

Innovations also have occurred in both deal coaching and overall performance coaching, as well as in the area of forecasting.

Teamwork

The salesperson’s contacts and calendar are a starting point, but they are not enough to manage an opportunity. To lead in a complex selling environment, you have to be able to communicate the plan to the rest of the team. You have to have a stakeholder analysis that identifies who is involved, what role they play, what their pains are, and how much power they have. It’s not enough for salespeople to keep it in their heads anymore.

Also, the relationship between manager and salesperson needs to move from inspector and loner to one of coach and strategist. In the rare accounts where partnering is a possibility, the team also can include the client.

Everyone on your sales team who touches the account needs to know what’s going on, what the strategy is, and must collaborate on execution and refinement of the plan.

Technology

Unfortunately, most client relationship management (CRM) applications haven’t lived up to their promise—especially in the area of direct business-to-business (B2B) sales force effectiveness. And, if implemented badly, CRM technology actually can build a barrier between you and your best clients.

The first CRM applications for direct sales were contact managers, designed to capture the salesperson’s “little black book” (today, it’s their personal Outlook file) in case they left the company. In the complex sale, however, there is more to it than just contact information. The real valuable corporate asset isn’t names and addresses – it’s the customer relationships.

Nevertheless, information is an essential tool to create a better customer experience in the hands of the right talent, using the right process, with that objective in mind.

Trust

Everyone talks about “relationships,” when what they really mean is trust. You have to build trust in your company, your people, and the quality of your solutions so that you can win repeat business with less effort and lower cost. This is the currency of account management.

What people really want is someone who knows their business. Tell them something about their company they don’t know – don’t just read information off a screen. You have to show the connection between your solutions and their issues and then sell up the chain of value. This is where salespeople themselves contribute their greatest value.

Partner is the most abused word in selling today. Buyers want more than lunch and a human brochure. They don’t really need professional friends. What they want are people they can trust to solve their business problems. This means that salespeople need to know as much or more about their customers as they do about their own products.

Four Levels of Sales Strategy

Sales strategy should fall out of marketing strategy (I think I heard this in business school), but it rarely happens to any great degree. Which accounts you invest in should be a part of your industry and marketing strategy. And an opportunity needs to be worked in light of what is going on in the rest of the account. How much time we spend with individuals should be a function of their role in the opportunity decision and their power in their organization.

The result, unless you are in a small account, should be an integrated four-level strategy that focuses every resource on your sales team and the client organization for maximum leverage. Unfortunately, though, it usually doesn’t happen this way.

As we move from selling to individuals to selling to departments that have a more complex decision-making process, each of the four levels of selling strategy requires different talents, techniques, technologies, teamwork, and messaging. The outcome is a unique strategy for that account, in that industry, that leads to the final outcome – trust.

A brief definition of the four levels will help us to define one dimension of the scorecard, which we will then explore in greater depth in following chapters as we move through the Five T’s of Transformation.

Industry/Market

Not every industry buys the same benefits or makes decisions in the same way. Focusing on specific industries allows you to become more consultative in your sales approach and to differentiate yourself with focused benefits, differentiators, messages, and solutions. This approach yields not only competitive advantage but also less “commoditization” at negotiating time.

Smaller companies often focus on a single industry. And the added cost and travel of a vertical approach to multiple industries necessitates economies of scale. Some companies approach this by teaming industry experts with competitive salespeople. In rare instances, extensive relationships and industry expertise can be combined in one individual – the industry networked consultant, the highest level of competency in selling.

Account Management

Few companies can afford to dedicate entire teams to all accounts in an industry. Choosing which ones to invest in requires purposeful segmentation and the clear setting of objectives in order to achieve incremental returns. Without a clear account plan, salespeople will wander the halls, building “goodwill” that never translates into additional revenue.

Opportunity Management

For some industries, such as capital equipment or consulting, opportunities are discrete buying events or evaluations. In others, they are opportunities to expand a flow of products through a channel, such as consumer packaged goods through a retail chain.

In either case, opportunities need to be inventoried and evaluated in light of all activities in the account and in the pipeline in order to combine our efforts and leverage our relationships.

Individual-Level Strategies

In larger organizations, “companies” themselves don’t relationships. Individual-Level Strategies In larger organizations, “companies” themselves don’t buy anything. Committees made up of individuals usually make decisions in a complex sale. People make up their minds first individually, and then they politically rationalize them or compromise them in the committee based on the decision-making algorithm.

Different stakeholders play different roles in the decisionmaking process and have different amounts of power within their organizations. Once you have determined which votes matter, you need an individual strategy to win their hearts or win without their vote. Building preference with everyone equally is inefficient and ineffective.

Sales Effectiveness Scorecard

This scorecard is not for measuring what you know to do. Instead, it is for measuring your execution and consistency, for that is where sales effectiveness and competitive advantage lie. Within each cell are one or more best practices and, therefore, potential areas for focused improvement.

Once you have identified the gap between where you are and where you need to be, you must decide which areas are easy and which are hard to implement and then prioritize your initiatives.

We will discuss each column in a separate chapter. At the end of each chapter is an assessment, where you can score your own organization. (If you would like to see how your organization compares with others—you can take the survey online at www.complexsale.com.) In addition, it might be helpful to see how your sales managers and the rest of your management team would score your sales force to see if their opinion differs from yours.

In Chapter 9, we will discuss change management issues and the metrics needed to make any initiative a permanent change in process and behaviors.

Sales Effectiveness Scorecard
	Talent	Technique	Teamwork	Technology	Trust
Industry/market
Account management
Opportunity management
Individuals

SECTION II: Talent

CHAPTER 4: Talent

Take a group of ten players. The top two will be supermotivated. Superstars will usually take care of themselves. Anybody can coach them. The next four, with the right motivation and direction, will learn to perform up to their potential.

The last two will waste your time. They won’t be with you for long. Our goal is to focus our organizational detail and coaching on the middle six. They are the ones who most need and benefit from your direction, monitoring, and counsel.

Bill Walsh, Former 49ers Coach, «Harvard Business Review»

Planning for Failure

Many sales managers start the year with an unwinnable hand. Their CFO won’t allow them to hire in advance of a year or to build a bench of salespeople within their firm. Some sales managers don’t even get their sales numbers until after the beginning of the first quarter. Then they have to begin hiring while carrying a full quota from the beginning of the year. And this doesn’t take into account any turnover that might occur during the year.

As a result, sales managers overassign quotas to the sales reps they have in hopes that a certain number will exceed their goals to offset the bottom 20 percent who aren’t going to make it, open territories that they begin the year with, or turnover they may have.

Many managers try to live with the lesser of two evils: (1) let a bad rep continue to work in a territory because at least there is a “body” there, or (2) live with an open territory that they must cover themselves. The most frequently made mistake is not trimming poor performers early enough. Not only does this demotivate the rest of the team, but it also takes the manager away from being a coach.

Some sales executives aggravate their turnover problem simply by increasing quotas every year based on what the analysts or CFO says the sales increase ought to be, with no thought to where the new sales will come from. Will these quotas come from better coverage, new products, new markets, increased prices, better margins, or an increased win ratio?

Without a bottom-up analysis of true potential, raising sales quotas doesn’t raise sales—it usually only raises turnover and discounts. This is one of the great myths of selling. And if sales quotas are increased as a percentage of an individual’s sales quota last year, then the great reward for a job well done, after the sales banquet, is an even greater quota for your best performers. How motivating is that?

While working for Atlanta-based Optio Software, one of our principals, Blake Batley, was asked to relocate to the West Coast to assume the newly created role of western regional director.

His challenge was to revamp the region, which had previously included only one salesperson and had never generated more than $500k in software license revenue.

Instead of managing the business for what was possible, the company was managing the business for the analysts. They put together a first-year plan to find and generate $10 million in the new territory. His tasks included finding office space, furnishing it with everything from chairs to computers, hiring ten new salespeople plus support staff, and getting them trained and up to speed so that they could produce $10 million in the first year of operation.

At the end of that first 12 months, they had a fully equipped office and a full staff. His team produced over $5 million in revenue on the $10 million quota. To everyone in the western regional office, it was considered a huge success. But, according to the analysts, it was a failure.

When financial strategy drives sales strategy, quite often the result is planning for failure. And if this overassignment of individual quotas results in discouragement or increased turnover in the sales force, a complete downward spiral begins.

Hire Ahead to Get Ahead

When financial strategy drives sales strategy, quite often the result is planning for failure.

The solution is to improve our hiring and planning processes—to get the right people in the right jobs before the year begins. One best practice that we've seen in several companies is the hiring of junior salespeople who work either on existing accounts or on farming and marketing activities to learn the business and prepare themselves for territories when they open up. In my experience, we hired a number of these – about one per district – and many of them have turned out to be not only extremely successful sales reps but also vice presidents of sales and CEOs of their own companies. Without them, we would have begun the year behind the curve and would never have been able to catch up. The impact would have affected sales results and eventually shareholder value.

Get a Bench and a Pool

The worst recruiting practice is to wait until you have an opening. This means that you are reacting to the marketplace and only looking through the available candidates in your area. The best practice is to build a bench within your own firm and a pool of candidates in your industry on which you can draw when you have an opening. It may take years to build this network of candidates, but it means proactively going after people and companies that may not be looking for jobs at the moment.

In our firm, it takes us about two years to recruit a principal. And we have the possibility of 100 or more at any one time who may come to work with us in the future. The building of this pool has not been an accident. Every sales manager should have a list of several dozen sales candidates within their contacts or background on which they can draw at any given time.

Recruit the Best Recruiters

The worst recruiting practice is to wait until you have an opening

The next best thing is to build a network of recruiters who are loyal to you. However, a loyal recruiter may be an oxymoron. And if you count on human resources (HR) or advertisements to send you the right candidates, you are abdicating responsibility for your own future.

If you’re counting on recruiters, proceed with caution. Many recruiters try to play both sides of the fence. They may be using you as a net destination and a net supplier at the same time. You need to meet face to face with these recruiters, define your outline, and sell them not only on why your company is a good place for their candidates to come to work but also why you need to have a partnership with them. Make it clear that if they ever recruit from you at the same time they are sending you candidates, that will be the end of the relationship.

You have to be willing to share with selected recruiters the rules of engagement, including your compensation plan, competitive advantages, the direction of your company, and your recruiting process. In this way, they understand how to proceed with you and won’t see it as an unduly lengthy process. The only thing that will keep recruiters loyal to you is the prospect of future business. Once they see your company in trouble and people starting to leave, unless you have a personal relationship with a particular recruiter, they will start to prey on you and take people out of your organization. It’s a double-edged sword they use. Don’t let them use it on you.

If you count on HR or advertisements to send you to the right candidates, you are abdicating responsibility for your own future.

Recruiters to Reps—Solve Two Problems at Once

Another best practice used by some organizations is to hire full-time internal recruiters. Why waste a sales headcount on a recruiter? These people are actually salespeople because they can go into organizations and find people who are not yet looking for a job and pull them out along with their friends.

The only thing that will keep recruiters loyal to you is the prospect of future business.

When I was rebuilding my region, my company had a number of these (most of them were ex-military Recon types.) They made great recruiters, and most of them went on to have successful careers in sales and sales management. It was one of the best investments we ever made. Not because we saved recruiting fees, but because we got top-level talent.

All I ever saw in my recruiting efforts were A and B prospects. I wasted very little time talking to turkeys because of the efforts of these people. We were able to rebuild our region from middle of the pack to number one within a year. This is an excellent investment, but like many best practices, it requires a certain economy of scale to be able to afford a full-time, aggressive internal recruiter who is not just a paper passer.

Written Profiles—Sight Picture of Success

If you’re recruiting, how do you know what to look for unless you sit down and define what a successful salesperson in your organization looks like? What traits, experience, skills and personality will predict success in your organization and in your industry? Unless you write it down and test it against your current performers—you’re guessing. In the absence of a profile, you’ll be hiring on hope. You will be opportunistic instead of purposeful. People tend to hire on hope and fire on faults—a very expensive habit.

Good Is the Enemy of Great

Not having a reason to not hire somebody is not a reason to hire them. The default is to keep talking or keep looking.

A regional manager I know once hired a guy and fired him within three months. When asked why we hired this person, he replied, “I couldn’t find a reason not to hire him, and he looked better than anyone else I’d seen.” (These are two bad principles that need to be removed.)

One time, one of my sales managers said to me, “We can’t have all ‘A’ players.”

“Why not?” I said. “That’s not true. That’s a bad principle. Throw it out. You can have all ‘A’ players. I’ve done it three times in my life.”

People tend to hire on hope and fire on faults – a very expensive habit.

But you have to be willing to wait for the star, and you have to be willing to spend more time recruiting than fixing problems for salespeople. Championship teams have no weak links. It’s pay me now or pay me later, and I’d rather invest in recruiting than in fixing lost sales.

While at SAP, one of our principals, Jack Barr, met with sales directors from all over the country. He would ask them each to rank their current sales teams—how many A, B, and C players they thought they had.

Their categorizations were always similar. They all defined their sales forces as having some A players, some B players, and some C’s. Their best performers were designated as “A players” even if they really weren’t. In many cases they didn’t really have any A players at all.

When Jack told them that they needed to hire some A’s, they would always say, “We can’t right now—we don’t have the headcount.”

“But if you have four C players right now, who you don’t think will ever be A players, you do have the headcount,” Jack would tell them. “You have room to hire four people.”

As a sales manager, you have to be candid with yourself about what level players you really have. You should constantly be recruiting. When you find an A player—or someone who has the potential to become an A player—hire them and replace your C’s.

You can only perform as well as the team you have behind you. If you spend all of your time coaching the C players, helping them sell, you can’t be an effective manager to the rest of your team.

Cost of a Bad Hire

It’s not what you pay a man, but what he costs you that counts.

Will Rogers

One of the problems we have in business is that accounting systems don’t measure the cost of a bad hire. Our accounting systems don’t measure lost revenue because it never hit the books in the first place. But the cost is there; it’s just invisible. Not only is it an out-of-pocket cost from lost sales, but also there are huge non-monetary costs that have an impact on the manager.

One thing is sure: Whatever the gap is between what you hire and what you need, the manager pays for in the long run. The costs incurred from hiring mistakes include lost productivity, as well as lost time for the manager and the entire sales team—not only lost sales from the poor production of that one salesperson, but also lost manager’s time that was taken away from other people who could have benefited from good coaching—not to mention other losses such as angry customers, employee morale, and even missed opportunities.

Not having a reason not to hire someone is not a reason to hire them.

What did it cost you to settle for someone who was adequate if you missed the star who would have come along one month later and would have been a quota exceeder for the next 10 years? How much did it cost because you settled for someone who was adequate rather than someone who was exceptional? The principle is—if they aren’t exceptional, they aren’t acceptable.