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Insight for More Excellent Sales Management in 2013

This week Inc.com announced that bad managers cost the economy $360 billion in lost productivity annually. Hopefully, your sales managers aren’t making any personal contributions to this statistic. Either way, we thought it couldn’t hurt to assemble some collective insight for better sales management as we move into 2013.

ONE: Understand the skill set of a good sales manager, and fill the role accordingly.

Many sales managers were promoted from the position of sales rep. This isn’t a great idea. In fact, Peak Sales Recruiting says there are at least six basic reasons to NOT promote a top-performing rep to a position as manager. Jonathan Farrington, a globally recognized sales thought leader, agrees — as he points out, the successful attributes of a sales manager usually don’t align with the successful attributes of a top performing rep. Make sure you’re hiring sales managers based on management skills, and not solely on a track record of sales success.

TWO: Make sure your sales managers are practicing good coaching habits. 

A pre-call briefing, a ride-along to observe the sales call, and a post-call coaching session are all best practices for coaching recommended by Norman Behar at Sales Readiness Group. Are your sales managers actively involved in these activities? Or are they too busy running from one fire to the next as the end of each month and each quarter looms large? If your managers don’t know how to coach (or are simply not making time for it), you’re almost certainly cultivating discontent among your reps. So perhaps it’s no surprise that research from Oracle (quoted by Chuck Penfield at the most recent Sales & Marketing 2.0 Conference in San Francisco) has indicated that 89% of sales reps want more coaching from their managers.

In a Sales 2.0 world, managers who aren’t invested in coaching are going to lose out on the rewards you can reap by combining science with soft coaching skills. According to PI Worldwide President and CEO Nancy Martini, who also spoke at the Sales & Marketing 2.0 Conference, the ability to combine analytics with coaching holds unprecedented opportunities for sales managers to build more effective and productive sales teams that generate higher revenue. Clearly, coaching is a vital aspect of sales management and should not be ignored.

THREE: Make sure sales managers aren’t letting underperforming reps linger.

Christopher Cabrera, CEO of Xactly Corporation, recently blogged about his company’s joint research project with MIT which is examining data related to about 200 million transactions handled by Xactly each month. One early takeaway from initial analysis is that sales managers are probably hanging on to bad sales reps for longer than necessary. To quote from Cabrera’s post:

Our hypothesis is that many managers, if on the borderline of attaining their quotas, tend to keep low-performing salespeople on the books for too long. Those managers would rather keep underperformers on the books to generate even a few sales rather than the guaranteed zero sales they’d get if they fired the bottom tier.

This can obviously be a difficult call for a sales manager to make — and an even more difficult conversation to have once the reality sets in. But after you’ve done all you can to give lagging reps a leg up, it’s better to face the problem head on than to sweep the problem under the rug.

FOUR: Embrace the virtual meeting.

Based on her in-depth survey of 150 managers, Yael Zofi, founder and CEO of AIM Strategies told Selling Power magazine that “virtual teams are here to stay.” In fact, at least 70 percent of those she surveyed reported seeing a rise in virtual teams. Obviously, the virtual element of management has some very basic implications for process and operations. For example, take your weekly sales meetings. Are your sales managers holding frequent and regular meetings with field sales reps, no matter where they’re located? Your sales managers should be using video conferencing tools (like PGi’s iMeet, for example) to facilitate more effective and collaborate meetings, no matter where meeting participants are located.

Incidentally, if sales managers are already making use of video conferencing for meetings with reps, then it stands to reason that reps can use the same technology to meet with customers and prospects as well. That sets up your sales manager to increase team productivity and possibly win rates.

In the end, a bad sales manager adds up to a dysfunctional sales team populated by unhappy reps. And unhappy reps will only stick around for so long — the same Inc.com infographic shows that 65% of employees said they’d take a new boss over a pay raise.

Consider, too, that the workforce is fast becoming populated by Gen Y workers, who tend to prefer feedback from coaching and collaborative work environments. An investment in upping your standards for sales managers will put you on the path to success now and for years to come.

What are your best practices for sales management? Share your thoughts in the comments section. 

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Stop Hiring the Wrong Sales Reps

According to Peak Sales Recruiting, the cost of adding the wrong salesperson to your team can total nearly seven times the annual salary for the position. Yikes!

How can sales leaders mitigate the danger of making an unwise hiring investment? One of the best ways to find out what’s really behind a stellar resume and great interview skills is to talk with people the rep has actually worked for or with.

That’s why some companies are now using confidential electronic surveys to gather feedback on candidates from multiple sources (such as managers, peers, and direct reports).

Many sales leaders might have felt burned in the past by glowing recommendations that turned out to be pie-in-the-sky endorsements, but the confidential nature of such surveys inspires candid feedback, say the folks at SkillSurvey. They have long believed that traditional phone reference checks are outmoded and insufficient to give sales managers a truly objective look at a candidate’s past performance.

Their automated survey is designed to provide a “360-degree” assessment of a candidate’s behaviors, skills and developmental needs — and the confidential request for feedback works: more than 85 percent of references respond to a reference request when the request guarantees anonymity.

When soliciting feedback from references, SkillSurvey asks about a candidate’s:

  • Ability to consistently meet or exceed sales goals.
  • Persistence when faced with objections or other setbacks.
  • Competencies in managing post-sale relationships.
  • Determination in locating qualified sales opportunities.
  • Ability to leverage technology (like CRM) for productivity.

To learn more about how how to efficiently and accurately assess potential sales hires for your team, join us on Wednesday, October 25 (2-3 PM Eastern) for a live Webinar, “How to Avoid the High Cost of a Bad Sales Hire.” Selling Power founder Gerhard Gschwandtner will be hosting, and panelist Jack Kramer, Vice President of Field Operations at SkillSurvey, will be sharing insight and expert tips.

 

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Sales Leaders, Ditch Your Outdated Ideas about Hiring

Image via FreeDigitalPhotos.netA lot of sales leaders let old myths about hiring get in the way of finding superstar candidates.

The myths I’m talking about are based on the idea that certain characteristics or qualities can magically help you identify your next top performer among a pool of potential hires. For example, how many times have you heard people endorse job candidates by saying things like:

“He’s a hunter.”
“She’s a great networker.”
“He’s an ‘activity’ guy.”
“She’s a road warrior.”
“She used to be an athlete.”
“He’s a cold calling animal.”

These things are all well and good, but something about the language reminds me of the book Moneyball, in which baseball scouts would make decisions about players based on assessments like, “He passes the eye candy test. He’s got the looks, he’s great at playing the part.” Again, I’m not saying these things are negative. But can you really tell how good a player someone will be from the fact that he somehow looks the part?

As a sales leader, do you really want to make a hiring decision based on the fact that someone has been described as an “activity guy” or has a background in sports? It’s awesome if a candidate used to be an athlete (I used to be one, myself). He or she is probably very competitive and has thick skin. These are two traits that help a lot in sales – but those aren’t the only traits you need to be successful in a sales position, and they’re no guarantee that a former athlete will succeed in your particular selling environment.

Sales managers tend to get hung up on these myths because they have no real idea about what makes their top performers tick. As Moneyball showed, however, a methodology can help you assess new hires more accurately and change the game. In my organization, for example, we identified the Top Performer personality traits of our most successful reps as:

  • Listens well, but can also engage in two-way dialogue.
  • Offers a unique perspective and is intellectually curious.
  • Is comfortable discussing money and can push the customer.
  • Understands the customer’s business and can identify economic drivers.

I put this to the test by giving the Top Performer personality survey to my entire organization. No surprise that our top reps matched the personality traits of the Top Performer. Now I have a real way to identify and measure top reps – and I can hire an army of them.

As a sales leader, you have to watch out for descriptions of potential hires that are just empty words. Hunter. Networker. What do these words really mean? Dig a little deeper so you can identify whether or not a candidate has the specific traits that track to success in your organization. When you use methodology instead of myth, you’ll be able to spot the true gems.

Mike Nelson
Mike Nelson is Vice President of Sales at ON24, a cloud-based Virtual Communication software provider. He has more than 15 years of sales and business development experience in the SaaS, Cloud Software industry, with a focus on Enterprise as well as Channel. He was recently a featured expert during a Webinar on sales enablement strategies.
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A Plan to Onboard New Sales Hires

It’s Monday morning and your newest salesperson is starting in an hour. What are you going to do? Show her the coffee machine and new desk and go about your business? Turn her away and ask her to come back another day?

Sometimes, it seems like it’s easier to keep doing more with less, even knowing your life would be simpler if you hire a new person, just because you don’t want the hassle of onboarding and training.

However, onboarding is a lot simpler if you think back to your own experience. Can you recall a job where the training experience was positive? What was that like? How can you repeat it for others?

Often, training a new sales hire can be a daunting task if you’re in a smaller business or department without established processes.

It’s best if you’ve just got a simple, prebuilt, uniform new hire orientation system. In order to build one, all you have to do is compile the basics. That’ll go a long way.

  • Where are the supplies?
  • What paperwork is required?
  • What mistakes have been made in the past?
  • What should your new hire know about her territory?
  • And, perhaps most importantly, who can you pair the new hire up with to do a ride-along?

Orientation in sales is tough. Your team is probably made up with some fairly independent people. They’re in sales, at least partially, because they the like working on their own.

Build a new-hire orientation kit before your new-hire’s first day. It should include those basics and a whole lot more. Why did you hire this person? Share that; it’s probably a good indication of the ingredients for success. At the same time, what concerns did you have? Those are some areas for coaching.

As an aside, we offer an assessment instrument that generates an onboarding package based on the specific abilities of your new-hire AND the requirements of your position. Click here for more information.

Jeb Brooks
Jeb Brooks is Executive Vice President of the sales training firm, The Brooks Group. Follow him on Twitter @JebBrooks This post appeared originally on his blog.
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Where Do Great Front-Line Sales Managers Come From?

Managing a sales team is one of the most important positions in a company. Great sales managers have a profound impact on the productivity of their sales teams and produce better sales results. Managing a sales team is also one of the most challenging positions in a company, and it requires a unique set of skills. Unfortunately, most front-line managers start their sales management careers ill-equipped to effectively manage a team of salespeople. So, where do great front-line sales managers come from?

Star-Athlete Syndrome
I hear about the “Star-Athlete Syndrome” frequently in sales organizations. A star sales person grows tired of the daily grind of being an individual contributor and aspires to something “greater,” such as sales management. Meanwhile, the vice president of sales is under time pressure to fill a vacant sales manager position. The vice president assumes that the star sales rep will know how to produce great sales results from a sales team.

The challenge is that salespeople are frequently unable to make the transition from being an individual contributor — achieving results through individual expertise, effort and determination — to being a manager, achieving results through the performance of others. This problem is not unique to sales. Think of all of the great athletes who never developed into great coaches.

Key Sales-Management Abilities
While a sales manager needs sales experience in order to have credibility with the sales team, the key driver of long-term success as a manager is mastery of specific sales-management skills. In order to produce exceptional sales results from the team, a sales manager must excel in the following critical sales-management abilities:

1) Managing sales performance by focusing on the underlying behaviors that drive sales results.

2) Sales coaching to help salespeople develop their full potential.

3) Building a team of great sales professionals with the requisite competencies to succeed.

4) Leading and motivating the team.

Return on Investment
Often some training is needed to develop these critical sales-management abilities. I find the return on investment training sales managers offers truly exciting. A sales manager can leverage improved management skills over the entire sales team. For example, if a sales manager manages 10 salespeople, improving that manager’s effectiveness represents a 10:1 return on investment opportunity.

Just think about all that untapped potential.

Norm Behar talks about developing highly effective sales managers with Gerhard Gschwandtner, CEO of Selling Power.

Norm Behar, sales management
Norm Behar is CEO of Sales Readiness Group. This post originally appeared here on his blog. Follow Sales Readiness Group on Twitter @SalesReadiness, or email Norm at nbehar@salesreadinessgroup.com.