Midterm Review
Personality Tests
"Personality type" tests are useful for self-awareness and training but not for hiring Only tests of job skills or knowledge are proven to predict job success consistently
Too Many Criteria
"Validation" method -- validation identifies critical job success factors and weighs each factor's importance The most crucial factor for predicting success in any job is usually as important as or more important than all other factors combined The most accurate prediction of success on the job is based on no more than 6-8 factors -- add any more and you risk diluting criteria, watering down the prediction of success, and killing selection accuracy Ignore factors that are not validated
Knowledge-Based Economy
An economy that is based on the quantity, quality, and accessibility of the information available, rather than on the means of production.
Defining Property & Casualty (P&C) Insurance
Every company needs liability insurance, workers compensation, property, etc. It is a HUGE industry with many specialized insurers that focus on certain industries
Role of the Insurance Salesforce
For small accounts, working directly with a business owner to help them buy the right insurance to cover their business For larger accounts, working with a broker or agent to "write" the business -- broker will get multiple quotes from you and your competitors and recommend one of the quotes to their customer
Ways to Keep Your Sales Team Revved Up and Ready
In order to sustain lasting success, salespeople need to feel valued, empowered, and respected Need to be in the presence of winners and thus have strong daily reminders of what's possible Carrot > stick -- incentivize rather than threaten to get employees fired up
Tech Sales can be Tricky
Know your customer...are they technical or not? Learn the clients challenges and goals Pitch the business impact of your product/service Offer a range of choices Set clear expectations
Recruiting and Selection Problems
Lack of resources to identify and attract talent Lack of job specification and qualifications Qualifications not objectively established Lack of managerial training specific to hiring Personal prejudices (hire people like us)
Dos of Sales Training
Let salespeople know you expect them to continue doing things correctly Let them know you are always willing to help them learn Give positive recognition for skills learned Keep them informed, constantly and regularly, on how well they are doing and where they need to improve Ask them often what you can do to help them do a better job
Selling in the Technology Industry
Many Early Tech Sales Roles are Inside Tech Sales can be Tricky
Organization Development Analysis (ODA)
Many ODA clients test all their employees, storing the results in a special database The ODA may be used in 4 basic ways 1. Can ensure that the right people are in the best slots for their talents by guiding minor reassignments of duties 2. Helps select the best people for new job assignments 3. Can substantially improve career development of employees by assessing their strengths and weaknesses 4. ODA data measures the company's overall employee resources so that top management can plan for long-term growth
Sales Career Path in Insurance is Lucrative
Right out of school, various insurance companies will hire you and provide extensive training, including prep to pass licensing exams. Usually, you start off selling to small group / local businesses in a specific geographic area. Then, you either move up to larger accounts or a larger geographic area. After 7-10 years, you can move into sales management.
The Insurance Sales Channel
Some companies and consumers buy their insurance direct via online and by phone For more complicated insurance decisions, a broker or insurance agent will act as a "middleman" in the transaction Critical role to ensure that the company or customer purchase the "right" level of insurance to cover their risk
Relationship Management in Insurance
The salesperson for the insurance company needs to build trust-based relationships with the various brokers and agents in the marketplace They also need very strong relationships with the customers that they have in their book so that they will stay with them over multiple years and provide referrals from their network This includes being pro-active with quotes, available to talk, and provide excellent customer service
Summary -- Training
Training is not a "panacea" for a sales force achieving their sales goals But, if you identify "soft-spots" in your sales force capabilities, training might offer some support Training needs to be customized to your company, its culture and the salespeople Coaching is an ongoing process intended to help a salesperson reach their potential
Top 5 Key Skills for Success in Tech Sales
1. Grit & Perseverance 2. Emotional Intelligence 3. Time and Task Management 4. Navigating an Organization 5. Storytelling
4 Rules for Hiring
1. Identify your market strategy and think about how you sell 2. Determine the qualities you need in a person to do those tasks 3. Determine aptitude -- Decide what combo of personality traits, mental capability, and interests are needed for this person to be a success; How your company markets, to whom, and how the sale is conducted define what the candidate's attributes need to be 4. A candidate must be compatible with the values, personality, and culture of your organization
9 Most Common Sales Hiring Errors
1. Relying on interviews to evaluate a candidate 2. Using Successful People as Models 3. Too Many Criteria 4. Evaluating "Personality" Instead of Job Skills 5. Failure to Use Statistically Validated Testing 6. Using Yourself as an Example 7. Relying on General "Good Guy" Criteria 8. Bypassing the Reference Check 9. Not Researching Why People Have Failed in a Job
External Motivators
1. Timely 2. Specific 3. Well understood by the employees -- managers need to clearly define what criteria they're rewarding and how 4. Tailored to suit individual employee needs 5. Reflective of the big picture -- incentives are empty gestures unless they're a reflection of how much management values its employees overalls
Conduct Post-Mortems
A great approach is to interview new customers and lost-customers after a sale to find out why or why you didn't win the business. Conduct this interview through a 3rd party to get an objective response and insights. This may lead to a recognition that certain training is needed (relationship mgmt., closing, product knowledge, etc.)
A Good Fit
A job description outlines what is expected of people, not how they should do it -- organizations that don't use clear, written job descriptions and good hiring and selection practices are opening the door to incompetence Four considerations when writing job descriptions and using them to hire good salespeople 1. Determine exactly what your company does and what the target market is -- then you can structure the job description accordingly 2. Ascertain what space or niche your salespeople fill within your organization 3. Know what specific tasks salespeople are expected to perform -- can you describe to them what a typical day, week, month, or year with your company is going to be like from a task standpoint? 4. As a manager, what kind of skills are you going to look for in order to find people who are able to perform those tasks? Behind every task outlined in a job description is a set of skills -- the job description is a tool for you to use to hire a person who represents a certain skill set or number of skill sets, depending upon your need Sales managers need to determine a job function and description and identify what skills an individual needs to possess in order to perform those tasks -- that's how your make good hires
Life Long Learner
A person who is willing to and embraces the challenge of continuing to learn beyond school to keep up with changes in the field
Proof That Training Pays
According to the American Society for Training and Development (ASTD), investments in workforce training can determine how an organization will fare financially in the future It is clear that a firm's commitment to workplace learning is directly linked to its bottom line Organizations that spent more on training reap other benefits as well -- higher income per worker Training and development constitute a key perk that companies must provide to recruit and retain talented workers At each of the best-practice organizations, turnover was lower and employee satisfaction was higher than at average firms in each leading company's industry
Method: Bonuses
Advantage: added incentive; can be used for specific activities; flexible Disadvantage: added cost; may be seen as inequitable if not administered properly Best used to encourage above-normal performance of specific activities
Method: Straight Commission
Advantage: provides a strong incentive; salespeople have more freedom; acts as a screening method Disadvantage: difficult to direct and supervise salespeople; customers' best interests may be ignored; salespeople's earnings may fluctuate widely Best Used: When a strong incentive is needed to attain sales For products that require little presale and/or post-sale service The sale is a one-time sale Adequate field supervision is not available Company is in a weak financial position Company uses part-time or independent salespeople
Method: Straight Salary
Advantage: provides security and stability for reps; better for directing and controlling sales activities; ensures proper treatment of customers Disadvantage: direct incentive is easily lost if not administered properly; represents a fixed cost; requires supervision to direct, control, and evaluate Best Used: For products that require a lot of presale and/or post-sale service For building long-term customer relationships When supervision is available for new recruits For new territories For missionary sales
Bypassing the Reference Check
An individual who twists the facts to get a job will probably bend the rules on the job Placement agencies report a fairly high percentage of false info presented in resumes and job apps
Don'ts of Sales Training
Assume that all people learn at the same pace Feel that a task is easy to learn just because you found it easy Assume a new person will continue to do something the way you demonstrated it Assume the salesperson knows how to do something well just because they have prior experience Demand perfection too soon Just act interested in your subordinate's learning; be interested Ridicule a salesperson for making a mistake
Why Do You Need Training?
At best, skills training can only improve the skills of the salespeople and managers Sales-prevention department = a conglomeration of haphazard, inaccurate, slopping, administration, billing, manufacturing, delivery, shipping, and customer support issues Even when a sales organization's problems are skills-based, managers may still have difficulty in isolating the point in the sales process where their people are running into stumbling blocks Companies should examine whether their salespeople's skills match up with the strategies they are supposed to be executing When the challenge is not one of overall strategy, but the breakdown of an individual skill or skill set, then analyze your sales process to find where your people are most frequently running into a snag Identify the gap and then figure out what to do Sales managers should assess their training needs by administering a skills test to the sales team and then see if the results match what is going on in the field Training is most effective when those being trained are excited about improving their skills Your salespeople's input should contribute to the decision-making process Ask open-ended questions and then follow up--treat your salespeople as though they're customers you're probing for needs The final step in assessing your training needs is to solicit client feedback Deals won/deals lost analysis -- every time a deal is won or lost, have someone--preferably not the rep involved--call the client and objectively obtain real feedback on why you won or lost that deal
Give Them Choices
Autonomy can work on many levels Giving people such simple choices as what order they do things in, the route they drive, or how the decorate their offices can make a difference Sameness is not the same thing as fairness The pay structure should be fair and the same for everyone but beyond that, one of the keys to successful coaching is managing people as individuals Give them what they want and recognize that in many cases that means letting them choose what they want--both in terms of incentives na shaving some control over their work environment
Specific Yet Flexible
Avoid vague job descriptions -- be specific as possible in spelling out tasks, goals, and objectives -- important for sales resp to know exactly what is expected of them from a time-on-task perspective Job description needs to take into account that all salespeople are unique individuals and they're not all selling the same thing in the same place Have to allow sales staff some flexibility while still staying within the parameters of the job description -- no one-size-fits-all Job description should be specific and closely monitored, yet flexible enough to allow salespeople leeway in performing the specific duties Tight definition, loose enforcement -- gives salespeople opportunity to use imagination to develop a system that works best for them and satisfies all requirements of job description If you allow flexibility in individual interpretation of job description, need to closely monitor activities to ensure they're not wasting time and energy running off in the wrong direction
Getting Training Right: The Basics
Be sure everybody has the basic training and that they all understand the model you are using Covering the basics helps boost sales and also brings consistency to your sales organization This consistency can make your organization more efficient Training should not focus on product knowledge alone Product knowledge and skill development should be on a par -- salespeople can be as savvy as possible about the products they sell, but if they really don't know how to sell or are not confident at it, they will not be successful
Relying on General "Good Guy" Criteria
Being a good person does not ensure success on the job Sales success skills are now so specialized that you need specialized hiring criteria as well Reserve broad, "good guy" criteria for entry-level hiring → use more specialized criteria when you need a more experienced salesperson
What are employers trying to figure out?
Can the person excel at job? How badly do they want the job? Will they be satisfied in the role? Will they give it their all? Will they "fit in" with other people on the team?
Candidate Background
Candidate's background is the most important variable -- concrete and measurable Important to get close to some people who have been close to the candidate so you can get information on what the candidate has done in the past Personal interview -- look for things like listening skills, what the candidate asks to show interest and what they say that shows background research on the operation
Recruiting Salespeople
Careful recruiting and selection of salespeople can greatly enhance overall sales force performance while minimizing costly turnover Key talents of successful salespeople: intrinsic motivation; disciplined work style; ability to close a sale; ability to build relationships with customers
Training Methods
Classroom (1-4, or up to 12 weeks) Lectures Discussions (case, panels, roundtables) Demonstrations Mentoring On-the-job Role-playing Podcasts Web-based (Used more and more)
Talk to Your Staff
Command and control → inspire and motivate Link between how people feel and what they do → important for managers to ask more probing questions You can't know your employees as individuals until you're willing to put in the time to talk to them Have to know them to know what motivates them
Performance Based Interviewing
Company gives you a situation and then asks you to role play or sell them Tells the employer how much time, effort, skill and creativity the candidate has
Stress Interviews
Company puts you on "the spot" EX: Sell me this pen; How many barbers in Chicago?; Why are manhole covers round? Measures ability to think quickly and creatively and under pressure
Compensation Plans Should
Correlate efforts and results with rewards Control salespeople's activities Ensure proper treatment of customers Attract and keep competent salespeople Be economical yet competitive Be flexible yet stable Provide secure and incentive income Be simple and fair Provide choice Motivate salespeople
Behavioral Interviewing
Do you get-along with people? Tell me about an incident in your last job that caused conflict with a customer and what you did to work it out Past actions are indicative of what you will do in future
Tailor the Rewards
Dr. Cherie Carter-Scott, author of If Success Is a Game, Here Are the Rules -- If you start talking with no assumptions, you'll soon find that what inspires Joe doesn't necessarily inspire Melvin Connecting with people is a matter of finding out where their sparks lie, what they live for and also what makes them angry, because for most people their passion and their anger are closely related Once you know their values, it's easier to create incentives that are appropriate for that person
Using Successful People as Models
Duplicating success may seem like a good idea, but the reasons people succeed are not clear from just measuring the characteristics of top performers Important to note the difference between top performers and low achievers, otherwise, you may select well-spoken, energetic candidates who fail quickly
How to Choose the Best Assessment Test for What You Need in New Hires
Effects of a bad decision can include lost sales, wrecked customer relationships, and the heavy cost of replacing a rep who's below par Even average hiring decisions leave money on the table Expert firms can help you hire better reps by using a variety of tests and assessment methods The internet allows more kinds of tests to be given more economically and earlier in the recruiting process The best recruiting experts should be able to demonstrate that their methods work--that they raise the average sales of new hires and reduce the costs of turnover from bad hires
10 Traits and Abilities of Top Salespeople
Ego strength → To handle rejection Sense of urgency → To complete the sale Ego drive → To persuade people Assertiveness → To be firm in negotiations Willingness to take risks → To be innovative Sociability → To build relationships Abstract reasoning → To sell ideas Sense of skepticism → To question, to be alert Creativity → To sell complex products and ideas Empathy → To understand customer needs
Career Stages Effect Compensation Needs
Exploration (0-2 Years): primary concern is finding a suitable occupation; underdeveloped skills and knowledge; high interest in personal growth Establishment (3-5 Years): primary concern is improving skills and performance; lack of promotion may cause disengagement or quitting; new commitments make pay important; high interest in promotion and pay Maintenance (6-15 years): primary concern is maintaining position, status, and performance; have highest sales volumes and percentage of quota and pay; high valence for recognitions, respect, and pay, but low interest in promotion Disengagement (16-30 Years): primary concern is preparing for retirement and/or developing outside interest; low interest in higher order and lower order rewards
Select the Right Program
Good trainers should be willing to work with you to develop a curriculum that not only matches your needs, but also fits your corporate culture Does it bring in the company's strategy and the objections their people face? Does it talk about the tough questions the company's salespeople deal with and address how to position answers to those though questions, as well as the different markets they sell to and the issues within those markets? Depending on the size of your sales organization, before rolling out the sales training to the whole team, you may want to consider a pilot program
Key Methods to Motivate Salespeople
Hire self-motivated people Show trust Capitalize on unique strengths of employees Encourage some people to become experts Empower reps to make their own decisions Offer rewards that are valued by all Develop or remove deadbeats
Hiring the Right People Chapter Summary
Hiring the right salespeople is becoming more scientific all the time Most companies are following a process, though it my seem like they are not "well organized" It is actually hard to find great salespeople When you think about it from the employer side, you can see how to position yourself in an interview
Acknowledge the Problems
Hypermotivational speeches can bring on a momentary false high -- "bliss backlash" The intense psyching up typical of some motivational seminars is almost always followed by an emotional crash New rule is less cheerleading and a lot more honesty Many current motivational experts speak from their own experience, including setbacks, and acknowledge that success doesn't automatically happen overnight
Getting Training Right: Assessment
If you need help assessing the type of training your organization needs, several companies can provide in-depth analysis of your sales process Training should focus on those areas where customer objections are high If you want to know firsthand how your salespeople are doing and whether they need training, go with them on sales calls -- allows sales managers to see where their salespeople are effective, and where they need more people Sales managers must understand their role as observer and coach Be observant and take notes regularly when on a call but don't tell salespeople what they should have done when you get back to the car Prompt with questions: How do you think it went in there? What could you have done differently? Roleplaying can also help reveal a person's strengths and weaknesses Videotaping salespeople in role-playing situations is especially effective Sales managers can look to their salespeople for feedback about training needs Talk to salespeople individually and ask questions like: What skills do you need to accomplish your goals? What skills would you like to see stressed in our training program this year? Can also survey salespeople and regional managers about the kinds of training they think they need Be prepared for positive and negative feedback Use employees to provide a part of training
Failure to Use Statistically Validated Testing
In some companies, committees use deductive reasoning or brainstorming to identify criteria for candidate selection -- technique may encourage team building and spirit of cooperation and participation and may even focus organization on the importance of hiring the right people Two main flaws make it less effective at pinpointing why candidates fail or succeed Committees tend to focus on theories instead of facts Focus on attitude and experience instead of ability and skills -- skills are a much more significant and consistent indicator of success potential Incentives can motivate a skilled person but motivation and good intentions won't improve an unskilled candidate Managers often rely on reasoning or common sense to assess candidates' attitude and personality because doing so is easier than measuring skills -- gauging skill levels often requires carefully developed tests or on-the-job trials many managers are unwilling or unable to conduct
Early Tech Sales Roles
In tech, inside sales represent almost half of total sales roles Leverage tools like telephone, email and virtual meetings to connect with potential customers Schedules are more predictable and don't need to travel to meet clients Need to be good at building trust and relationships without being in the physical presence of client
5 Types of Rewards
Incentive program -- monetary rewards (a trip or car) for good performance; employees are working toward a set goal and payout occurs at regular intervals or at end of a sales contest Spot bonus -- a discretionary bonus or gift (such as a gift certificate to a restaurant), which is given on the spot Positive feedback -- praise is a great reward Public recognition -- can include being named "employee of the month," getting a new title, or moving into the corner office Private recognition -- an employee is taken to lunch, receives a letter of thanks, or is given unexpected time off
Getting Training Right: Team Needs
Is it more effective to train your sales force individually or as a group? Ideally, everyone in the sales organization should receive individualized, customized training but practically and economically that's often impossible Provide individualized training where there is a strong case for it Short, modular training is another way to provide customized learning Sales managers can mix and match different training modules to meet individual needs For many companies, group training is the most efficient and economical Can capture 80% of your sales force's needs in group training Break-out sessions can focus on areas were individuals require improvement, enabling each person to address particular needs while the company contains costs If you have a large enough sales organization--one with a minimum of 25 or 30 salespeople--assess individual abilities, and patterns of similar needs will emerge Some of the variables that affect the patterns include geographic location of salespeople, the industries they sell to, and their level of experience, By studying their sales force and discerning these patterns, sales managers can economically target group training to different salespeople who share patterns of similar needs
Add Winners to Your Sales Team
Know what your marketing strategy is and how you sell Determine the qualities you need in salespeople to do those tasks Determine aptitude (mental abilities, interests, personality traits) Candidates must be compatible with the values, personality, and culture of the organization
Knowledge is Power
Knowledge power -- give your top producers the chance to share their expertise with their peers and you'll be giving them power and stature while the rest of the sales forces gets to learn from successful role models Can ask each of your top reps to give a presentation about an area in which they excel and/or what skills have made them so successful Have a panel Q&A where the audience can ask questions of the top performers Use a "carousel" method of sharing knowledge, where each top rep sits at a different round table, and meeting attendees can migrate from table to table As a preview to any of these events, you can include a short interview with each top rep in the company newsletter to give the rep additional exposure and prepare the resort of the sales team for the upcoming event Low-cost, high-impact way to let your top tier know how much you value them
Align Training Method with Goals
Lectures: Company knowledge, product knowledge, industry knowledge, selling skills, time management Discussion: Company knowledge, product knowledge, industry knowledge, selling skills, time management Demonstrate: Product knowledge, selling skills, time management Web-based: Company knowledge, product knowledge, industry knowledge, selling skills Audio CD: Product knowledge, industry knowledge, selling skills On-the-Job: Product knowledge, industry knowledge, selling skills, time management Videos: Product knowledge, industry knowledge, selling skills, time management Mentoring: Company knowledge, product knowledge, industry knowledge, selling skills, time management Role Play: Selling skills
Tips for Finding and Hiring Top Sales Producers
Look for qualified salespeople before you need them -- avoid being in a crisis position when a salesperson leaves and have someone to quickly cover the territory Brainstorm the salesperson's duties and responsibilities -- consider how much expertise is required in territory planning, business management, and servicing current clients; be sure to include any unique aspects of this sales position Establish hiring criteria such as experience and education, then write your job description -- don't look for a high-powered candidate for a low-powered job; managers looking for the best credentials for a job with limited potential set themselves up for disappointment Look to many sources for your potential salespeople -- professional recruiters and personal contacts Once you have those resumes, read between the lines -- written presentation skills are important in sales so note how each candidate has approached the resume as a sales tool Conduct an initial phone interview -- since salespeople use the phone to prospect and set appointments, here you have an opportunity to hear them before affected by personal appearance Personal interview style would be thorough and methodical Trust your judgment in the personal interview, but find out the facts Treat the sales interview as a sales call--you're the prospect! Conduct role-playing sessions with your top candidates Check references carefully
Using Yourself as an Example
Many managers who reached their position by virtue of their sales success believe they can instinctively recognize a good candidate, when they are unconsciously just using themselves as a template When you use yourself as a model, your ego often gets in the way and that "bias" can skew your objectivity in judging others
The Importance of Training
Many sales leaders look to training as a "solution" when business is soft Understand what the root issues are that affect sales -- might be training, but it might be something else, like competition, product issues, or poor service Best thing to do is talk to salespeople and customers to understand what is working or not working before you embark on sales training
"Windshield Time" Coaching
Many sales managers provide coaching to their sales team by spending time with them on the road calling on customers Seeing how you perform in the "real-world" in front of real customers is a great way to understand how well someone is doing You can also "show them" how it is done After a sales call, you can debrief together and work on how to handle certain situations and objections better
Select the Right Trainer
Mark Vassallo: President of ETC Connect -- an entertainment and architectural lighting manufacturer in Middleton, Wisconsin = company takes care of most training for salespeople internally, while outside trainers are typically brought in only to work on very specific skills like body language, telephone selling strategies, or trade show selling Identify a need or recommendation to choose a program Catch-as-catch-can approach to choosing trainers -- works because the stakes are relatively low Company's long-term prospects don't ride on such small, one-time training events For organizations that are feeling the pinch and need to improve their skills to remain competitive, choosing the right trainer should be done systematically Cargill: Once a company settles on the notion of getting sales training it very often will go for the program that the most powerful manager or clique of managers likes the best, not necessarily the one that best fits the organization's needs Or a manager might be new to a company and bring in a trainer they had worked with before, without considering whether the trainer provided a good match for the new company's products or culture Richardson: First let the Web be your guide: reputable training companies should offer at least basic information on their website about their services On trainers' websites look for strong client lists that indicate a training company's track record Remember that not all clients are created equal -- anyone can put a name down, regardless of what level of work they did with that client Ask: how long did you work with company ___? How broad was their penetration? When you follow up with a trainer's references, make sure to ask not only whether people enjoyed the trainer, but also whether the program generated actual results Have a training plan with a measurable result -- have a starting point, know how to measure it, and know the benchmarks to look at When you talk to references, find people who will say that as a result of the training they are selling 5% more, 10% more, or that their margins have gone up two or three points Need to find out tangible, measurable results or its meaningless Narrow your choices to no more than 5 or 6 top options and then shift search into high gear Conduct phone interviews, put out a request for proposals (RFP), and let the trainers begin to sell you on their services
Testing Tools
More companies are using "tests" to determine if someone will succeed at their company While these are not the only determinant, if you fail the test, you likely won't get the position Sometimes a personality or character test, often to test analytical/math capability
Salesforce Motivation and Compensation Summary
Motivating salespeople is more than just about money. It is a major issue for most companies. Understanding that people are at different stages in their lives and that there are "generational differences" really makes it challenging to have a policy that works for everyone Compensation plans are critical to motivating but can easily backfire and negatively effect top performers.
Offer Positive Feedback
No news is not necessarily good news -- shouldn't assume things are okay just because they aren't hearing criticism Take the time to give very specific positive feedback Acknowledge not just closed sales but also their behavior leading up to the sale Easier to point out employees' weaknesses than their strengths What if you have an employee whose performance is skidding so badly that there's really nothing good to say? Build their confidence -- don't throw something tough at them all at once, start them off with small easy tasks and let them get a taste of success and underline that successful feeling by giving them specific positive feedback about how they handled the task
Looking for Committed Professionals
Objective Management Group -- result of an Objective Management test is a straightforward recommendation to managers on whether a potential recruit should be hired for a specific sales position Developed certain criteria of elements that a person must meet to be successful in sales → then there is a second set of criteria based on what the client tells them is necessary for success in their business Test identifies the number of success criteria met and the number failed (weaknesses) Successful candidates must have fewer weaknesses as compensation increases Some of the most crucial hiring criteria are desire for success, commitment to success, taking responsibility for results, and the candidate's incentive to improve any weak areas Execution test
Problem with External Motivators
Once the goodies dry up, so does the good behavior The same incentives eventually get stale Managing exclusively through external motivators can create "learned helplessness" in the sales staff Unintentional side effect of the "command and control" approach is that employees become dependent upon management to tell them what to do Money may be a universal incentive to work but that doesn't mean it's the only or best motivator People want recognition, challenging work, autonomy, a good company atmosphere, the chance to learn more about their jobs, and opportunities to be creative Empowerment is the umbrella term for these qualities
Concentrate on Task Clarity
People's understanding how they contribute is more important than salary -- knowing the connection between what they personally do and the bottom line of the company Task clarity can bring purpose In order to be self-motivated, people's hearts and minds must be engaged in their work, and they must understand how their task relates to the larger goal
Salesforce Hiring Process
Plan for Recruiting and Selection: Establish responsibility for recruiting, selection and assimilation → determine number of people wanted → conduct job analysis → prepare job description → determine hiring qualifications Recruit Applicants Select Applicants: Design a system for measuring applicants → measure applicants against hiring qualifications → make selection decisions Hire the people Assimilate new people into sales force
Recruiting Globally on the Internet
Profiles International offers a psychometric sales profile that focuses on 5 key qualities Competitiveness, persistence, self-reliance, energy, and a combination of these qualities referred to as "sales drive" Once profiled, the likely behavior of each candidate in seven critical areas can be predicted
No Road Blocks
Provide sales tools to make sure salespeople are able to do what they need to do
Generational Motivational Issues: Gen X'ers (1965-1983)
Raised by parents who both worked, have shifted workplace emphasis from materialism to focus on family Moving into managerial positions and prefer independence over teamwork and immediate communication over structured meetings Computer use and multi-tasking is second nature Value work opportunities that are changing and allow for opportunity to grow Flexibility in working arrangements is critical as family time is more important than time at work Bonus days off may be valued more than the traditional monetary bonus
Shooting for 85 Percent Success
Recruiting assessments conducted by The Gallup Organization focus on 5 primary areas Motivation Candidate's ability and willingness to ask people to do things Relationship skills, primarily meaning gaining trust Ability to organize, plan, and administer Presenting information, listening to customers, and solving problems Gallup starts by looking for the role-specific behaviors of top performers in each sales force, then develops questions designed to spot differences and behaviors in either interviews or tests → results predict the probability that each candidate will match the level of a firm's best salespeople Gallup's questions can be asked in a number of ways: in an automated telephone interview for initial screening purposes, through a Web-based test, or during in-depth telephone or face-to-face interviews
What Procedure Should Managers Follow to Check References
Reference-checking process includes three elements 1. A credit check, a DMV check, and a criminal county-of-record and federal-level check for felonies or misdemeanors 2. Send candidates a structured sheet asking for names and contact info of the last 5 people the candidate reported to, plus the nature of the organizational relationship and dates of employment -- don't let candidates choose their references; send a form asking for contact info and names of subordinates and peers 3. With the candidate's permission, call trusted friends and customers for more informal references
Not Researching Why People Have Failed in a Job
Research consistently shows that people fail in a job due to factors different from the criteria used to select them Most managers can list the most common reasons people have failed but seldom make that info part of the selection criteria for new candidates Managers who identify these "failure points" and build them into the selection process can reduce hiring mistakes as much as 25%
Getting Training Right: Budget Fit
Sales managers must balance economic considerations with training requirements Keep your goals in mind: Do I want a one-time training course or do I want to start a performance development initiative? Behavior changes only with repetition → a simple one-time training session is not enough Flexible approach: set aside money every year for training but if sales management identifies a special need during the year, it can usually get the money for additional training To ensure your money is well spent, make certain your training sessions are not some type of "working vacation" For training to be worthwhile, know what you want to accomplish and allocate the needed financial resources to achieve those goals
A Good Compass
Sales managers should determine exactly what salespeople need to do to achieve their goals Allot time for different tasks such as planning, prospecting, actual selling, and developing territories Break down to basic tasks with time allotted then break it down even finer Every company is different In some cases, continuous service by a sales rep is an integral part of selling process; in others, service is a different function, handled by different players coming into the loop Detailed job descriptions, with enumerated time parameters add to the efficiency of the sales force and the ultimate profitability of the company
How to Cultivate New Recruits to Take the Headache Out of Hiring Salespeople
Sales managers should develop an ongoing hiring farm team so that new sales reps can be called up -- do so while you're fully staffed Set a goal for yourself, produce a plan, create action steps, record it all in your daily planner Try to determine a reasonable hiring goal for your organization By setting goals for developing your farm team and following through, you will be in a more advantageous position when some of your best people do leave
Components of a Sales Compensation Plan
Security: Salary Incentives: Profit sharing, bonus, commission Benefits: Paid vacation, insurance, moving expenses, pension, profit sharing, etc. Expenses: Travel, lodging, company car, entertainment, etc.
Empowerment
Sharing your power with the people over whom you have power Empowered employees are involved with planning, provide regular input to their bosses, have the authority to make daily decisions about their jobs, and in some cases have profit sharing or actual ownership in the company Involving people in the business makes them know more, care more, and want to do the right things The real motivation comes when employees feel they are making a contribution and having an impact → motivation moves from being a temporary thing inspired by external factors to a lasting frame of mind inspired by the people themselves
Essential Components
Shouldn't change job descriptions to fit strengths and weaknesses of individual salespeople but savvy sales managers can create a new position that addresses excellence, talent, and ability Managers should select salespeople who have the ability to actively reach for and achieve the primary goals and objectives laid out by upper management Includes planning, organizing, controlling, and executing a sale at any time, at any level -- these criteria should all be spelled out in a job description
Generational Motivational Issues: Millenials (1984-2002)
Soon to be largest group in workforce Some have experienced tight job markets and moved home Been counseled to find a good job that's right for them Require work-life balance High level of social consciousness and responsibility and desire an employer who incorporates and displays these values in their work Being individuals in a team is valued Like immediate feedback and rewards Want meaningful work experiences and mentors or coaches who can help them achieve goals and contribute Flexibility in work environment is a must
Job Description: The Whole Picture
Specific Yet Flexible A Good Compass No Road Blocks Essential Components A Good Fit
How to Use a Testing Company to Recruit the Very Best Sales Candidates for Your Company
Talented people sell better and with less supervision Eagerness to sell can often work around the gaps and glitches that inevitably develop in any sales force Internet is enabling companies to economically screen and test new salespeople much more widely than ever before Importance of referrals; look for talent, not just experience The online approach to testing sales candidates has spread about as rapidly as the Internet itself; most major testing companies now offer online selection tools SalesTestOnline -- looks for temperament, motivation, drive, assertiveness, a sense of urgency, and need for supervision An overall suitability rating is the bottom line
3 Training Program Goals
Teaches the skills necessary for efficient work habits and a high degree of professionalism Builds a salesperson's knowledge to allow for logical, intelligent action and decision making Forms attitudes that promote cooperation and coordination with supporting staff and management
Help Winners Beget Winners
Teaming employees who are at different places on the food chain can actually inspire both people
How a Good Job Description Is an Indispensable Asset for Hiring Smarter and Closing More
The first thing a sales manager should do when creating a job description is determine what the ultimate goal is for that specific job function A job description is basically a road map for your sales reps, with starting and stopping points and a clear goal
Training Follow-Up
The sales trainer you choose should provide a detailed explanation of how the training will be reinforced with effective follow up Some programs include short Web-based modules addressing each of the topics covered in training The company's own management team should be responsible for overseeing the reinforcement program with exercises that go on for at least eight weeks--ideally, as long as six months--following the program There are certain "intangibles" that can make a substantial difference in deciding the success of your sales training effort Number one intangible is executive participation and management audit of the sales reps' course without inviting them One key factor = a sales organization's commitment to the training process
Relying on interviews to evaluate a candidate
The typical interview increases your chances of choosing the best candidate by < 2% Three reasons why interviews are such poor predictors of sales success and why the remain the most common selection technique 1. Most managers don't structure an interview beforehand and determine the ideal answers to questions (develop a scoring weight) 2. Candidates do much more interviewing than most managers and are more skillful at presenting themselves than many managers are at seeing through their "fronts" 3. An interview helps managers evaluate personal chemistry and determine how well candidates might work together with others
Testing for Improvement
Thoughtful, Inc. offers consulting and software for performance improvement Firm tests the existing staff of a client company, including sales reps, to look for strengths and weaknesses Sales candidates can be compared to the top performers within each company or to reps in the same industry Looks for competencies in specific areas: persuasion skills (three competency areas and an assessment of negotiation skills); market intelligence (knowledge of specific markets and industries Customizes a broad question list to suit each company and then makes sure the test works and has the managers' confidence
Content of Job Description
Title The nature of the product or service to be sold Type of customers to be called on, frequency of calls, and types of personnel to be contacted Specific tasks and responsibilities to be carried out Organizational relationships Mental and physical demands of the job Environmental pressures and constraints that might affect the job
Upward Motion
Upward Motion -- does assessments for recruiting, selecting, and training salespeople The company has products geared for real estate agents and for business-to-business selling Real-estate tool has 3 parts: an intelligence test, a personality test, and a simulation of actual selling situations Business-to-business assessment also includes a simulation of selling in business markets Candidates deal with typical challenges in this market, including analyzing customer needs, selecting the best course of action, and negotiating prices "Competency-based model" of sales ability -- 4 basic competencies: analyzing customer needs, listening and comprehension skills, ability to manage the sales process, and closing skills Recruits can use the simulations to decide if they really want to sell
Financial and Non-Financial Rewards
What motivates you as a salesperson? Achieving a team goal and all of us going on a four-day cruise Receiving a gift from the company president at a company-wide meeting The owner's verbal recognition A work environment that lets me work part of the day at home to balance my family needs A trip to Hawaii for me & partner for reaching sales goal Or just lots of Money
Does Image Matter?
What type of sales rep would you avoid hiring? Sloppy dressers, salty language users, people with visible body piercings or tattoos, unstylish looking people
Getting Training Right: Needs Analysis
What type of training does your sales force need? Start with what you want to accomplish Assess the level of performance you are now getting from your people versus the desired performance → target your training to bridge the gap To determine the desired performance level you want to achieve, use your top performers as models Assess training needs on an ongoing basis and focus on past successes and failures If an aspect of training works, continue it If it doesn't accomplish what the company hopes for, change it Sometimes training needs depend on your organization's overall strategy
Recruiting for the Team
Willingness to share Cooperative Trusting Empathetic Accepting of others Receptive to other's ideas Selflessness Leadership skills
How can you determine what training your salespeople need and what you'll have to spend to give it to them?
With so many choices and options available, sales managers can find a solution to almost any of their training needs but they face the constant challenge of applying the proper training at the appropriate price to achieve the necessary improvements
