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Supe Up Sales Performance
February 25, 2008
These 10 tips help CSOs keep the team running on all cylinders
By Rick Bakosh and Patrick Mosher
Growth-oriented companies face myriad challenges in their pursuit of high performance: more demanding customers, tougher competition and shorter product life cycles, to name a few. Yet one of their greatest challenges comes not from outside the organization, but rather, inside it.
That challenge is an underutilized sales force. According to research from CSO Insights, about 40% of sales reps did not make their quota over the last four years.
Indeed, a bevy of research has revealed that companies of all sizes and in all industries have sales forces that are not achieving growth targets. Research further illustrates that one of the primary factors for the shortcoming is insufficient human resource and training support.
In a recent Accenture study, for example, 251 senior executives from around the world were presented with a list of 12 corporate functions. They were then asked to identify which three were most important in their companies, as well as how well they thought each of their top three work forces performed.
Sales emerged as the most important function, named by 61% of respondents. But just 25% of executives naming sales a top-three function indicated that sales performed at a high level.
Why do these performance gaps exist? One major factor is that many companies provide inadequate human resource and training support for the sales function. Some companies don't have a proper connection between the business and HR and training effort.
Other organizations either aren't measuring the impact of the HR and training efforts or, when they are measuring, use metrics that don't necessarily translate into business results.
Still others make insufficient investment in sales training. A survey by CSO Insights, for instance, found that 70% of participating companies invest just $2,500 or less per rep annually—an inadequate figure when one considers that sales force attrition rates are in the 17% to 27% range, new product introductions are at an all-time high, and product complexity has grown substantially.
What levers can CSOs pull to improve sales effectiveness and, thus, help the company achieve higher performance? Companies should start by revisiting how they support the sales function from a talent management perspective, ensuring they get the right people in the right roles. Ten key steps can help:
1. Define a profile of sales reps and managers with superior performance. It is critical for a company to have a fact-based perspective on what high performance means for its own workforce. CSOs should identify their top performers through metrics and year-over-year performance, and know what makes them tick. Likewise, CSOs should gain the same type of insight into their front-line sales managers, who have a huge influence on the entire sales force.
2. Create specific roles and corresponding responsibilities. Every person in the organization should already know what his role is, what's expected of him and how his performance is measured. These roles and responsibilities may differ from business to business, but a company must ensure that it's always clear who is responsible for what. Well-defined linkages between sales, sales support/operations, marketing and operations are critical.
3. Understand the competencies required for each and every distinct role in the organization. Although the characteristics of top performers may differ from industry to industry, there are certain base competencies that are key to the effectiveness of every salesperson. For example, dealing with objections, negotiating and conducting presentations are important for sales reps. But a key characteristic of a top-performing sales rep in a particular industry may include the ability to collaborate, create buy-in or tell great stories. A key competency for high-performing front-line managers involves the ability to coach their reps at specific stages of the sales cycle and for specific lengths of time.
4. Screen for and hire those individuals who have the competencies of top performers. By using the top-performing sales rep profile just discussed, a CSO can help ensure that the company hires the right people for the job and minimize the chances of making costly recruiting mistakes by bringing aboard people who don't properly "fit" into the organization.
5. On-board new employees so they get up to speed quickly. On-boarding isn't solely about training, but rather, getting a new hire completely connected into the organization so that he is able to quickly form all the critical networks he needs to succeed. As a company on-boards new reps, it should ensure that the recruits make bonds with (and learn from) the top-performing reps—either directly or indirectly through on-boarding programs that incorporate high performers' competencies and practices.
6. Deliver valuable learning in the first 18 months of employment. So many organizations lose good people in the first 12 to 18 months of their employ largely because new reps are left to "sink or swim" in the early going. Having seasoned, top-performing sales reps transfer their wisdom and experience to new hires is critical to recruits' ability to learn the ropes and enhances their chances for long-term success at the company. Just as important is teaching the seasoned reps what to coach and how to coach effectively.
7. Provide accurate, timely performance feedback. Annual performance reviews simply don't change behavior; the real impact is when a person gets feedback immediately after he exhibits an action or behavior. Leading companies are able to do this by knowing what will yield high performance (as revealed in the top-performing sales rep profile) and measuring each sales rep against that profile.
8. Apply a common sales methodology and consistent sales processes. According to the CSO Insights survey, 87% of sales executives reported that a well-implemented sales methodology either improves or significantly improves sales performance. This means that companies leaving salespeople to their own devices are more likely to struggle to meet performance objectives.
9. Devise a formal and explicit career path for all salespeople. The sales force needs to understand its role in the organization, the positions to which they could advance and what they need to do to get there. As part of this effort, companies must ensure that the career path for salespeople is not solely based on "up or out." Someone who is a great salesperson, thrives on establishing and maintaining customer relationships, and wants to stay in a front-line selling role should feel as valued and appreciated as the individual who's a good candidate for promotion and wants to move into positions of greater responsibility.
10. Create and use a robust sales training curriculum. This should include programs not only on the products sold, but also on the company's formal sales methodology and sales processes. Learning is a significant factor in sales force performance. Effective training—especially training based on performance simulation and e-learning—is a major contributor to employee retention.
Effective, comprehensive talent management programs can have a major impact on sales force performance. By implementing these, CSOs can create a more focused, skilled and productive sales organization.
Rick Bakosh is the managing partner for sales transformation within the Accenture CRM service line, and Patrick Mosher is Accenture's executive director for sales talent management for human performance.
Sales & Marketing Management Magazine
This article is brought to you by Sales & Marketing Management, the leading authority for executives in the sales and marketing field.
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