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. 

Turn Sales Managers into Great Coaches in 5 Steps

How does a sales manager learn how to successfully manage and coach a sales team?

Unlike traditional business disciplines such as finance, marketing, or general management, most business schools offer few – if any – courses on sales or sales management. In addition, few companies offer comprehensive sales-management training programs for their front-line sales managers (watch video: “Sales Coaching for Improved Performance“).

The reality is that most sales managers learn how to manage through on-the-job experience. More often than not, sales managers are former sales reps (often star performers) who get promoted with little or no management training. Key symptoms of this problem include the following:

  • Being overwhelmed by supervisory problems,
  • Spending too much time “putting out fires,”
  • Sales rep turnover, and
  • Poor performance.

We’ve helped companies resolve these common headaches by teaching their sales managers how to become great coaches. Here are the five steps we recommend:

  1. Assess the rep’s current skill level. To establish clear coaching objectives, assess your rep’s current skills and identify strengths and weaknesses. Then, develop a limited number of specific coaching objectives to focus on the most promising areas for improvement.
  2. Perform a pre-call briefing. Before the actual sales call, ask the sales rep for the history and status of the account. Then, agree on the specific behavior/skill the sales rep will focus on during the call. Be sure to discuss the role you will play during the sales call (this is critical to avoid situation where the sales manager takes over the call).
  3. Observe the sales call. During the call focus on the objectives you established with the rep. The trick is to perform a delicate balance between observing and knowing when to step in. Managers should also make mental notes regarding specific skills or behaviors the sales representative is doing well or poorly so you can review them after the call.
  4. Conduct a coaching session. Many managers make the mistake of immediately providing feedback on what didn’t go well or what the sales rep could have done better, but one of the critical elements in the coaching process is to begin with positive reinforcement to acknowledge the sales reps strengths.  This also makes the sales rep more receptive to feedback when it comes to areas for improvement. When reviewing weaknesses, ask the sales reps for his or her input and secure a commitment from the rep to work on those skills for future calls.
  5. Follow-up. After going on a series of coaching calls, work with the rep to create a Personal Development Plan (PDP). The PDP should summarize strengths and reinforce positive behaviors, highlight one or two areas that need development, and include an action plan that addresses the specific skill areas.

Above all, a sales organization must make sure that its sales-coaching model is simple for sales managers to learn and use. In addition, the sales organization should set clear expectations about the time sales managers should spend coaching their sales representatives (25% –40% is recommended for a B2B sales organization).

Get more detail about specialized training for sales managers – download this free white paper today, Sales Coaching for Improved Performance.

Norman Behar
Norman Behar is Managing Partner of Sales Readiness Group, an industry leading professional sales training company that develops customized sales and sales management programs for business-to-business sales organizations.