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High Impact Sales Management …using modern approaches to dramatically increase your teams sales performance.

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Presentation on theme: "High Impact Sales Management …using modern approaches to dramatically increase your teams sales performance."— Presentation transcript:

1 High Impact Sales Management …using modern approaches to dramatically increase your teams sales performance

2 Profiles International Founded 1990Founded offices in 90 countries700 offices in 90 countries 45 Regional Offices45 Regional Offices 45,000+ clients worldwide including:45,000+ clients worldwide including:

3 The 80/20 Rule - Fact or Fiction?

4 These take up the slack for the Bottom Performers – but are highly mobile These pull sales out of the organization and put pressure on everyone Bottom Performers produce 32% less than the Average producers Top Performers produce 32% more than the Average producers Source: The validity and utility of selection methods in personnel psychology: Practical and theoretical implications of 85 years of research findings Psychological Bulletin, Sept 1998, Vol. 124, No. 2, pp Normal Distribution

5 45 salespeople averaged 109% of target Top 10 averaged 125% of target (111% to 139%) Bottom 7 averaged 92% (82% to 99%) More on this case study later… Real Life: Novartis

6 Just 14 Account Executives Dramatic performance gaps –Average sales of 3 Top Performers: $1.25M –Average sales of 3 Bottom Performers: $850K More on this case study later… Real Life: Data Service Organization

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8 The Real World: Analysing Your Sales team

9 About Your Team Lets say youve a team of ten salespeople… …each carrying a quota of $600K

10 Meet Your Team Tom $1,000,000Tom $1,000,000 Mike $1,000,000Mike $1,000,000 Tony $700,000Tony $700,000 Dave $700,000Dave $700,000 Sue $600,000Sue $600,000 Amy $500,000Amy $500,000 sherry $500,000sherry $500,000 John $400,000John $400,000 Charles $300,000Charles $300,000 Brian $300,000Brian $300,000 Two you call probablyStars, right?Two you call probablyStars, right? Five youd likely rate asSo-SoFive youd likely rate asSo-So Three whod generally qualify as PassengersThree whod generally qualify as Passengers

11 But what if you analyse their performance a little more closely?

12 Utility Analysis – A definition Utility analysis is a quantitative method that estimates the monetary value of benefits generated by any intervention based on the improvement it produces in worker productivity. Utility analysis provides managers information they can use to evaluate the financial impact of any intervention, including computing a return on their investment in implementing itUtility analysis is a quantitative method that estimates the monetary value of benefits generated by any intervention based on the improvement it produces in worker productivity. Utility analysis provides managers information they can use to evaluate the financial impact of any intervention, including computing a return on their investment in implementing it - Bernstein, Allen L. A handbook of statistical solutions for the behavioral sciences. New York: Holt, Rinehart and Winston.

13 Utility Analysis – Assumptions 1.Employees generate results that have monetary value to the organizations that employ them 2.Employees differ in the degree to which they produce results even when they hold the same position and operate within like circumstances The implication is that the level of results produced by employees in their jobs have different monetary consequences for the organizations that employ them

14 Process Overview Rank your salespeople – top to bottomRank your salespeople – top to bottom Create performance tiersCreate performance tiers Identify salespeople on each tierIdentify salespeople on each tier Identify average sales per tierIdentify average sales per tier Use this information to manage the businessUse this information to manage the business

15 Your Team - Ranked Tom $1,000,000Tom $1,000,000 Mike $1,000,000Mike $1,000,000 Tony $700,000Tony $700,000 Dave $700,000Dave $700,000 Sue $600,000Sue $600,000 Amy $500,000Amy $500,000 Sherry $500,000Sherry $500,000 John $400,000John $400,000 Charles $300,000Charles $300,000 Brian $300,000Brian $300,000

16 Create Performance Tiers

17 Add all sales results and divide by three - to create performance break-points that will allow us to allocate our salespeople across three performance levels or tiers

18 Tom $1,000,000Tom $1,000,000 Mike $1,000,000Mike $1,000,000 Tony $700,000Tony $700,000 Dave $700,000Dave $700,000 Sue $600,000Sue $600,000 Amy $500,000Amy $500,000 sherry $500,000sherry $500,000 John $400,000John $400,000 Charles $300,000Charles $300,000 Brian $300,000Brian $300,000 $6,000,000 $6,000,000 Total Sales

19 Total Sales divided by three $6,000,000 3 = $2,000,000 per tier

20 Assign Salespeople to Tiers Top Tier: Tom $1,000,000 Mike $1,000,000 $2,000,000 $2,000,000 Middle Tier: Tony $700,000Tony $700,000 Dave $700,000Dave $700,000 Sue $600,000Sue $600,000 $2,000,000 $2,000,000 Bottom Tier: Amy $500,000 Sherry $500,000 John $400,000 Charles $300,000 Brian $300,000 $2,000,000 $2,000,000

21 Assign Salespeople to Tiers StarsStars Tom $1,000,000 Mike $1,000,000 $2,000,000 $2,000,000 Middle Tier: Tony $700,000Tony $700,000 Dave $700,000Dave $700,000 Sue $600,000Sue $600,000 $2,000,000 $2,000,000 Bottom Tier: Amy $500,000 Sherry $500,000 John $400,000 Charles $300,000 Brian $300,000 $2,000,000 $2,000,000

22 Assign Salespeople to Tiers StarsStars Tom $1,000,000 Mike $1,000,000 $2,000,000 $2,000,000 So So Tony $700,000Tony $700,000 Dave $700,000Dave $700,000 Sue $600,000Sue $600,000 $2,000,000 $2,000,000 Bottom Tier: Amy $500,000 Sherry $500,000 John $400,000 Charles $300,000 Brian $300,000 $2,000,000 $2,000,000

23 Assign Salespeople to Tiers StarsStars Tom $1,000,000 Mike $1,000,000 $2,000,000 $2,000,000 So So Tony $700,000Tony $700,000 Dave $700,000Dave $700,000 Sue $600,000Sue $600,000 $2,000,000 $2,000,000 PassengersPassengers Amy $500,000 Sherry $500,000 John $400,000 Charles $300,000 Brian $300,000 $2,000,000 $2,000,000

24 1.Hire Star salespeople first time? 2.Raise Passengers to So-So level? 3.Raise So-So Performers to Star Performer level? 4.Make sure I lose no So-So or Star Performers? So how do I…

25 1.Make sure I lose no So-So or Star Performers? 2.Raise Passengers to So-So level? 3.Raise So-So Performers to Star Performer level? 4.Hire Star salespeople first time? So how do I…

26 How might this be done?

27 32% less than average sales Average sales 32% more than average sales These all looked the same when hired…

28 What do you miss?

29 Salesperson in interview Heres what you get!

30 Real Salesperson

31 …but traditional approaches do not work consistently well! If traditional approaches worked you wouldnt have an issue…

32 Its not experience – or college degrees or other accepted factors… …(it) hinges on fit with the job. Source: Herbert M. Greenberg and Jeanne Greenberg, Job Matching for Better Sales Performance, Harvard Business Review, Vol. 58, No ,000 salespeople followed through sales careers over 20 years

33 Percentage of Top Performers in sales force – Job Match vs. Non Job Match Six months after hire persons who had been job matched outperformed those who had not been matched. Moreover, the differences widened after 14 months Source: Herbert M. Greenberg and Jeanne Greenberg, Job Matching for Better Sales Performance, Harvard Business Review, Vol. 58, No. 5.

34 Profiles Sales Assessment

35 Can she cope with the mental demands of your sales environment? Learning Index Verbal Skill Verbal Reasoning Numerical Ability Numeric Reasoning Enterprising Financial/Admin People Service Technical Mechanical Creative Energy Level Assertiveness Sociability Manageability Attitude Decisiveness Accommodating Independence Objective Judgment

36 Prefers time to think things through Deliberate approach to learning new skills Prefer a more routine sales environment Learns through experience and repetition Quickly understand client needs Fast problem solver Adapts quickly in fast moving negotiations Effective communicator of complex ideas Fast learner Learning, reasoning and problem solving approach Learning Index

37 Can she cope with the mental demands of your sales environment? Will she be comfortable in your sales environment? Learning Index Verbal Skill Verbal Reasoning Numerical Ability Numeric Reasoning Enterprising Financial/Admin People Service Technical Mechanical Creative Energy Level Assertiveness Sociability Manageability Attitude Decisiveness Accommodating Independence Objective Judgment

38 Pessimistic Glass Half Empty Challenges remaining Positive in face of rejection Suspicious & critical of others Endlessly Optimistic Dont worry, be happy Deal with rejection easily Relaxed social style Quick to trust Measures extent of positive outlook - of tendency to trust / expect the best of others Attitude

39 Finds networking challenging Small talk doesnt come naturally Happy in own company Keeps to oneself Naturally reserved Enjoy networking Conversational People Oriented Need social contact Comfortable in groups Everyones new best friend Social Style & Approach Sociability

40 Can she cope with the mental demands of your sales environment? Will she be comfortable in your sales environment? Will she be motivated to sell your products & services? Learning Index Verbal Skill Verbal Reasoning Numerical Ability Numeric Reasoning Enterprising Financial/Admin People Service Technical Mechanical Creative Energy Level Assertiveness Sociability Manageability Attitude Decisiveness Accommodating Independence Objective Judgment

41 Little interest in entrepreneurial activities May not enjoy negotiating Recognition & status not so important Enjoys entrepreneurial climate Wants to lead Likes to persuade Interested in recognition & status Motivated by entrepreneurial activities Interest in activities that involves persuading others, presenting ideas & plans, and negotiating/deal-making Enterprising

42 Can deal with the mental demands of their sales cycle position Are comfortable with the demands of the sales environment they work in Enjoy selling and are motivated to do it Superior sales producers fit their jobs and: Superior sales producers fit their jobs and:...(it) hinges on fit with the job…

43 Thinking Style Occupational Interests Behavioral Traits Learning Index Verbal Skill Verbal Reasoning Numerical Ability Numeric Reasoning Enterprising Financial/Admin People Service Technical Mechanical Creative Energy Level Assertiveness Sociability Manageability Attitude Decisiveness Accommodating Independence Objective Judgment The JobMatch Pattern Shaded areas indicate the JobMatch pattern The JobMatch patterns show requirements for the sales positions in your company

44 Learning Index Verbal Skill Verbal Reasoning Numerical Ability Numeric Reasoning Enterprising Financial/Admin People Service Technical Mechanical Creative Energy Level Assertiveness Sociability Manageability Attitude Decisiveness Accommodating Independence Objective Judgment Good Match Grey areas indicate the JobMatch pattern Red boxes show the candidates scores

45 Thinking Style Occupational Interests Behavioral Traits Learning Index Verbal Skill Verbal Reasoning Numerical Ability Numeric Reasoning Enterprising Financial/Admin People Service Technical Mechanical Creative Energy Level Assertiveness Sociability Manageability Attitude Decisiveness Accommodating Independence Objective Judgment Questionable Match Grey areas indicate the JobMatch pattern Red boxes show the candidates scores

46 1.Hire Star salespeople first time? 2.Raise Passengers to So-So level? 3.Raise So-So Performers to Star Performer level? 4.Make sure I lose no So-So or Star Performers? So how do I…

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54 Critical Sales Behaviours

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56 1.Hire Star salespeople first time? 2.Raise Passengers to So-So level? 3.Raise So-So Performers to Star Performer level? 4.Make sure I lose no So-So or Star Performers? So how do I…

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62 In these days of Talent Wars, the best way to keep your stars is to know them better than they know themselves - and then use that information to customize the career of their dreams -Source: Timothy Butler & James Waldroop: Job Sculpting Harvard Business Review - September-October 1999

63 1.Hire Star salespeople first time? 2.Raise Passengers to So-So level? 3.Raise So-So Performers to Star Performer level? 4.Make sure I lose no So-So or Star Performers? So how do I…

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65 Job Matched Shield Your Targets! Non-Job Matched 24% 28% 5% 8% Low Turnover Industry High Turnover Industry % left / fired after 6 months 46% % left / fired after 14 months 57% % left / fired after 6 months 25% % left / fired after 14 months 34%

66 1.Make sure I lose no So-So or Star Performers? 2.Raise Passengers to So-So level? 3.Raise So-So Performers to Star level? 4.Hire Stars first time? So what difference would it make to my $ results if I could:

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68 Assign Salespeople to Tiers StarsStars Tom $1,000,000 Mike $1,000,000 $2,000,000 $2,000,000 So So Tony $700,000Tony $700,000 Dave $700,000Dave $700,000 Sue $600,000Sue $600,000 $2,000,000 $2,000,000 PassengersPassengers Amy $500,000 Sherry $500,000 John $400,000 Charles $300,000 Brian $300,000 $2,000,000 $2,000,000

69 Calculate Averages per Performance Tier

70 Tier Averages StarsStars –Tom & Mike = $2,000,000 / 2 = $1,000,000 So-SoSo-So –Tony, Dave & Sue = $2,000,000 / 3 = $667K PassengerPassenger –Amy, Sherry, John, Charles & Brian = $2,000,000 / 5 = $400K

71 Use this information to manage the business Difference between a So-So and a Passenger?

72 So-So Average: $667K Passenger Average: $400K Difference$267K …every time you hire a Passenger instead of a So-So it costs $267K …if youd been hoping for a Star you missed by $600K (they average $1M) …but lets keep it conservative and focus on moving Passenger to So-So performers

73 Use this information to manage the business Difference between top-tier salesperson and middle-tier salesperson?

74 Top Tier Average: $1M Middle Tier Average: $667K Difference$333K …every time you hire a middle tier salesperson instead of a top tier it costs $333K

75 So whats your loss from having Passengers vs. So So? Remember, you had five: Amy Amy Sherry Sherry John John Charles Charles Brian Brian So Passengers represent a loss of $1.3M ($266k x 5) in sales… …but whats the premium for getting it right?

76 The Getting it Right Premium Whats the premium if:Whats the premium if: –Raise one Passenger to So-So level? $267K – total sales go from $6M to $6.27M (+4.4%)$267K – total sales go from $6M to $6.27M (+4.4%) –Raise two Passengers to So-So level? $534K – total sales go from $6M to $6.53M (+8.8%)$534K – total sales go from $6M to $6.53M (+8.8%) –Raise all Passengers to So-So level? $1.33M – total sales go from $6M to $7.33M (+22%)$1.33M – total sales go from $6M to $7.33M (+22%) …and these are sustainable ANNUAL increases – not one-off premiums

77 The Getting it Right Premium If we werent keeping it conservative you might ask: whats the premium if all are Stars? whats the premium if all are Stars? Total sales increase by $4M from $6M to $10M (+67%) Annually!

78 The Dark Side This knife cuts both ways: –Lose just one Star performer and replace with… …a So-So – costs you $333K (per annum!) …a Passenger – costs you $600K (per annum!) –Lose just one So-So performer and replace with… …a Passenger– costs you $267K (per annum!) However you slice it – you cannot afford attrition

79 Whats are the alternatives for increasing sales? How else might you get 4% - 22% sales increase? –Increase number of salespeople Increased cost & decreased marginsIncreased cost & decreased margins What if they turn out to be bottom-tier?What if they turn out to be bottom-tier? –Reduce cost to increase volume Reduced marginReduced margin Saturation?Saturation? Can you ever increase costs again?Can you ever increase costs again? –Steal next quarters business – specials etc Its not the fall that kills you – its the sudden stopIts not the fall that kills you – its the sudden stop …and even if they did work – what about next year?

80 The ChallengeThe Challenge –45 salespeople averaged 109% of target –Top 10 averaged 125% of target (111% to 139%) –Bottom 7 averaged 92% of target (82% to 99%) What they didWhat they did –Profile Identified the Key Characteristics of the Top (& bottom) Performers Provided a framework to identify top performers at the point of hiringProvided a framework to identify top performers at the point of hiring Provided a framework to raise everyones performance to Top Performer levelProvided a framework to raise everyones performance to Top Performer level ResultsResults –Took product line from $1M p.a. to $1M per month in six months –1 st year total sales: $10.5M (projected $7.0M) –2 nd year total sales: $24M –3rd year total sales: $34M Real Life: Novartis Ciba Vision

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82 Benchmark pattern created of the top three performersBenchmark pattern created of the top three performers All 14 reviewed against patternAll 14 reviewed against pattern Big difference between matched / non-matched people:Big difference between matched / non-matched people: –Matched: Average sales: $1.31M –Non-Matched – Average sales:$840K –Average difference between selected and non-selected: $470K …Which would you prefer to hire? Just 14 Account ExecutivesJust 14 Account Executives Dramatic performance gapsDramatic performance gaps –Average sales of 3 Top Performers: $1.25M –Average sales of 3 Bottom Performers: $850K Real Life: Data Service Organization

83 Key Learning Points Every sales team has uneven performance – Stars, So-So and PassengersEvery sales team has uneven performance – Stars, So-So and Passengers You pay dearly for So-So and Passenger level performanceYou pay dearly for So-So and Passenger level performance Your Stars share something in common – and that can be profiledYour Stars share something in common – and that can be profiled That profile can be used to raise Passengers performance to So-So level, So-So to Star levelThat profile can be used to raise Passengers performance to So-So level, So-So to Star level This is a more enlightened way to manage for future sales successThis is a more enlightened way to manage for future sales success This is fast, easy and cost-effective to implementThis is fast, easy and cost-effective to implement

84 Initial SetupInitial Setup –Set up private online Virtual Assessment Centre –Profile all of your existing sales team –Feedback to all salespeople –Produce a Profile pattern for YOUR Stars –Run the whole team against that Profile –Create Sales Management reports for managers of each team member – input on how to manage them up a tier –Run a workshop for managers on managing salespeople up the tiers –Provide the facility to produce Sales Hiring Reports to hire the best person next time Base cost of $X plus $X per salespersonBase cost of $X plus $X per salesperson Typical Costs?

85 The initial consultation will provide you with the potential gains in your team and is provided at no chargeThe initial consultation will provide you with the potential gains in your team and is provided at no charge Our 10 person example would have cost $XOur 10 person example would have cost $X Remember for that team moving:Remember for that team moving: –One Passenger to So-So level: +$267K (+ 4.4%) –One So-So to Star level: +$333K (+ 5.5%) –One Passenger to Star level: + $600K (+ 10%) –All Passengers to Star level:+$1.3M (+22%) –All Passengers to Star level:+$4M (+67%) ….All sustainable direct-to-bottom-line increases Potential Minimum Return?

86 Set a consultation appointment with us before leavingSet a consultation appointment with us before leaving Initial consultation is not chargeable – in that meeting well :Initial consultation is not chargeable – in that meeting well : –Go through the process with you of analysing your sales –Create your Performance Tiers –Work out your premiums for getting it right –Quote you for implementation of Profile XT for your sales team What Next?

87 Comprehensive Analysis of YOUR Team – your potential for sales increase

88 Set a consultation appointment with us before leavingSet a consultation appointment with us before leaving Initial consultation is not chargeable – in that meeting well :Initial consultation is not chargeable – in that meeting well : –Go through the process with you of analysing your sales –Create your Performance Tiers –Work out your premiums for getting it right –Quote you for implementation of Profile XT for your sales team Well provide you with all the information you need to decide if this has a value for your organisationWell provide you with all the information you need to decide if this has a value for your organisation What Next?

89 High Impact Sales Management …using modern approaches to dramatically increase your teams sales performance


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