Sales Managers and Poor Performers

 

Making 2014 the Year of the Sales Leader

Two other blogs, were published on this:

Mike Kunkle of Richardson http://bit.ly/186uW3G

and Dave Brock of Partners in Excellence http://bit.ly/19YQJA1

Both are worth reading and thinking about.

I add mine as a a contrast to both, as Sales Management is, in many ways, all about Managing Performance

 

HOW you deal with poor performers will
define your performance and your future as a Sales Manager.

© 2013 Paramount Pictures. All Rights Reserved

 

The fastest route to Poor Performance, by a Sales Manager,
is to focus on poor performing Sales People.

This is not a casual observation by a casual observer, it is a causal analysis by a trained observer!
We have studied the roots of the failure of Sales Managers for 30 years,
and one of the recurring causes of failure is a focus on poor performers.

We use a bell curve to ‘identify’, or as an ‘indicator’ of Poor Sales Performance.

The axis that we use varies.

 

 

 

At the simplistic level it is
Current Sales Performance,

at the Revenue Generation level.

This is easy to measure, and is acceptable to discuss at C-level.

 

But, really it’s a WHAT chart.

What happened,
not “WHY is it not happening?”

 

 

 

 

We then, put the Sales force through a FIVE level filter, five, separate, charts:

 

Activity,  Skill,  Knowledge,  Sales Attitude and  Sales Strategy.

            

 

We “score” on the ‘standard nine’ scale, where 7 is the lowest ‘desired’ score,

1, 2 and 3 is poor performance,

4, 5 and 6 is needs improvement,

7, 8 and 9 is performance to excellence

Simple Performance Turn-around can be achieved if, for example,
ONLY Activity is wrong, or low, this is ‘fixed’ by Management Control and Supervision.

Great Sales Management careers have been launched on the back of Diary Management!

 

 

 

Sales Strategy, is also a relatively straightforward fix.

If a competitive situation, changed product/market, or Customer shift has NOT been incorporated into strategy formulation and execution then,

Sales Management can re-direct.

 

 

 

 

 

However,

When the Poor Performance is associated with low levels of Selling Skills,
poor Product/Market knowledge and/or wrong Sales Attitude, this then is a Business calculation.

The time/effort ‘Cost’ of fixing the performance problem,
weighed against the likely Revenue ‘Benefit’ derived from fixing the problem.

Unlike the first two areas, Activity Management and Strategy Formulation and Execution the Sales Manager does not ‘own’ Lack of Skill, Lack of Knowledge or Poor Attitude.

 

The problem ‘owner’ is the Salesperson.

 

Salespeople, NOT their Sales Managers,
are responsible for their own Selling Skills,

their Product/Market knowledge and their Sales Attitude.

Fixing these problems is the primary responsibility of the individual Salesperson,
the Sales Manager has a secondary ‘supporting’ role.

These problems affect your personal employability, now and in the future, take responsibility for them!

In order to ‘earn’ Sales Management support, Poor Performers must demonstrate progress with their Sales Skills, increases in Product/Knowledge and improvement in Sales Attitude. The time and effort put into fixing these poor sales performers primarily comes from them, not from their Sales Managers.

Sales Managers, effective high-performing Sales Managers, will be far too busy working with the top and high average performers to make investment is Sales poor performers who are not prepared to invest in themselves. 

There is no ‘Pareto formula’, to define effective time/effort usage by Sales Managers. 

There is no magic formula, no ‘right’ way.  There is only contingency, finding the right answer to your given situation, your people, their poor performance.  You will need diagnostic skills to find the cause, then flexible Leadership skills appropriate to giving the best outcome, Directing, Coaching, Supporting and Delegating.

 

 

The “Learning from other High Performers”, is a decision which calls for good judgement on the part of the Sales Manager, and the willing cooperation and coordination from the High Performer. The poor performer MUST have great Sales Attitude, high energy and a real willingness to learn.

The Hollywood construct is “Master and Padawan”, the Jedi Apprentice. In Sales tradition it was “the bag carrier” and the Senior Salesperson. The success of this is not solely dependent on the Senior’s Selling Skills, Product Knowledge and Sales Attitude as well as the ‘trainees’ observation skills, but also on Senior's Training and Coaching skills, which are very, very rare!

In science ideas are tested for their fit with reality.

In business ideas are tested for their profitability in the Product/Market.

In Sales we MUST do both, fit with reality and demonstrate Profitability!

If you reduce it all to an axiom:

“Treat Poor Performers differently, and appropriately!

  Or, like a leaking ship, you will both sink.”

 

 

Further reading on Managing Poor Performers:

http://brianmaciver.blogspot.com.es/2012/01/coaching-challenger-selling.html

http://brianmaciver.blogspot.com.es/2010/10/over-boarding-poor-performers.html

How NOT to Handle Customer’s Objections.

 

It is tempting to immediately share

30 years of research with you, and say
Buyer’s Objections Cannot be Overcome!

 

But, that would cause you far too much emotional distress. You don’t want to believe that is true, or you would not have started to read this Blog.

 

 

How to Handle Customer’s Objections?

 

The BEST way, by far, is to AVOID Objections completely!

In order to do that, you must first learn:
What causes objections?

YOU DO!

Yes, that’s right; Sellers CAUSE Buyers to Object!

In thousands of Sales Calls I have logged the Customer Objection,
AND what the Salesperson said  before  the  Customer Objected:

The Sellers gave the price,
then the Buyer said “that’s too expensive!”

The Seller gave the dimensions,
then the Buyer said “that’s too small!”

The Seller gave a delivery date,
then the Buyer said “that’s too late!”

The Seller asked for the order,
then the buyer said “I am happy with my current supplier!”

 

In fact, evidence based fact, the two primary causes of Customer’s Objections are:

1. The Seller giving features, Price, Size, style, speed, feed, location, colour, compatibility, etc.
2. Or, The Seller asking for the order.

If Objections were GOOD things (Buying Signals),
then the best way to get Objections is: to ASK for the Order,
early in the Buying Cycle as this is almost certain to cause an Objection!

 

Are Objections GOOD things, are they buying Signals?

If you look at the straightforward evidence of:

What is the relationship between Customer Objections and Sales success?

This is easy to measure, just COUNT them!

Then,

the MORE Objections you get,
the LESS you sell !

 

Remember:
YOU caused the Objection
by Talking Features or Asking for the Order.

 

ONE Objection?

for example: Price, this MAY be overcome if a ‘trade-off’ is made [often this is Value]

TWO objections?

You are unlikely to get the business, even if you have one good trade off.

 

THREE objections?

You have mis-sold your product or service and you won’t be getting the business.

Hopefully one of the three objections was PRICE,
now you can report to your Sales Manager,
that the Price is too high, rather than YOU cannot sell!

 

Objections are OBSTACLES.

If you believe Objections are welcome ‘buying signals’
then you have given up Rationality, rather than just giving up the sale [or selling].
When you extrapolate fiction, it then becomes fantasy!

Persistence is a trait of many Salespeople,
but continuing to repeat something with little chance of success is “Irrational Perseverance”

Objections are best Avoided.

You can avoid Objections by showing how your Product or Service meets the Buyer’s needs,
and by NOT Asking for the Order, until they are ‘Ready to Order’

 

OK, how do I Handle the one Objection I did get,
by giving them my Price BEFORE I gave them their Value?

First of all 99% of Sales “Objection Handling” techniques DO NOT work.

They are nonsense. I repeat, the techniques taught, and written about DO NOT WORK.

 

I have measured ‘overcoming’ Objections on thousands of occasions,
thousands of objections and the “Skills” to overcome objections DO NOT work.
You can easily measure them too.

Let’s take a widely taught Objection Handling technique “Feel, Felt, Found”.

I understand why you Feel the price is too high.

And other customers have Felt the same way.

However, when they saw the money they saved with it they Found it was really good Value!

I measured this against 300 uses for various objections,
it succeeded less often than just ‘ignoring’ the objection all together!
And, that was only “successful” in less than 15% of the time.

It does NOT work.

Or, “Preemptive” Objection Handling

using a “Script” to introduce a known shortcoming of your product or service,
then attempt to offer a scripted ‘answer’. 

“By presenting these shortcomings or negatives, our aim is to create credibility and gain trust”. 
The actual effect on Buyers is the opposite!

The Seller ‘introduces’ additional Fears, Uncertainties and Doubts in the Buyer’s mind,
then uses a “Rebuttal” or “argument” to overcome it!  Nonsense!

Again, research shows that “When you extrapolate fiction, it then becomes fantasy!”

 

What does sometimes handle an Objection is a Trade-off.

In this case trading better Value for a higher Price

 

Let’s take three houses.

 

If we were selling the New House A, the most expensive,
then we would have the “That’s too expensive option”.

We have to Trade Value, for the higher Price.

Against the other house B our ‘Value’ is in a Better Location, with Good Schools.

 

Is it better to have a Good location?

Yes, because this property will increase in Value faster and further than House B, 
So it will be in demand, therefore it may work out cheaper overall!

 

And, what price do we put on having our children happy at school?

If taken over a 10 year period it would be 20,000, or 2,000 per year, or 40 per week.

This money will be recovered in a higher Price when we choose to sell!

 

Against, the current house which, after the new baby, is now too small,
it’s the increased cost of the mortgage 263 per month or less than 10 per day.
However, ALL of this money, and more, will be recouped when you sell the new larger house,
i.e. the extra bedroom will be free!

Trade-offs, against Drawbacks [objections] may convince Customers to buy.

Here are a few Key thoughts about Objections:

• Objections are BEST avoided
• Objections are Caused by Salespeople
• Objections cause lost sales, they are NOT ‘Buying Signals’
• Objections are “Drawbacks”
• Objections can be traded off, sometimes!
• Objections are Statements, they are NOT Questions.
• Objections cannot be overcome with flim-flam,
  psychological nonsense, and 99% of taught techniques do not work

 

BMAC Consultants have developed an Evidence Based Objection Handling model,
based on Avoidance and Trade-off.
This is a Sales Skill, an Interactive Skill based on the ACTUAL Sales Situation. 
If you wish to see other examples e mail Brian.MacIver@Gmail.com

Customer Retention Strategy Selling in Recession

 

Dave Brock has written two insightful Blogs into Customer Retention.

http://partnersinexcellenceblog.com/customer-retention-different-approaches/

and

http://partnersinexcellenceblog.com/customer-retention-whose-job-is-it-anyway/

 

In a recession your ability to keep and grow
existing Customers is the difference between
Business success and failure.

 

How do you set a Good Sales Defence Strategy?

 

I can no more give you a Formula,
than the plan that Napoleon had that ended in his ignominious retreat from Moscow,
instead of the victory parade in he planned.

 

 

 

 

 

Sales Defence Strategy will be determined by
YOU, your Customer and the Competition.

The factors in formulating a good defence are building high walls, in business this is “Barriers to Entry”, or at the very least a very high Cost of Entry. IBM, was very successful in this by using proprietary software, in the 1980’s if you wanted the software, it only ran on an IBM Computer. Open-architecture, and Plug-Compatibility put an end to this approach!

 

What are today’s ‘Barriers to Entry’?

Functionality can be a barrier

If you do what the Customer wants done, and others cannot do it, then you can defend the Account.
However, relying on USP’s and Functionality alone is, no more than, a short term defence,
it won’t last, the Competition will catch-up, they may even leap frog you! [Blackberry]

 

Today’s barriers are Customer Experience.

That is, in great part, how Sales sold the first deal.

What were the “Expectations” of the Customer,
what are their current “Perceptions” of their experience?

How satisfied are they with your Value delivery? 

In planning a ‘Defensive’ Sales Strategy, you MUST listen to the “voice” of the Customer.
One way is in Complaints Handling, if these are well done,
then you create a Positive ‘voice’,
if handled poorly then it’s a Negative ‘voice’.

Financial Barriers, can be the hardest to erect

And, during recession this can be the weakest point in your defence.

This is not only PRICE, but is VALUE as well.
A well-defended account, will have kept a ‘Customer Perceived’ Value REGISTER,
showing the Financial BENEFITS, which the Customer expected and they perceived that we delivered.
This is NOT a wall you want to try and erect AFTER you are under attack!

That is called ‘Panic Discounting’, a paper thin wall, offering little or no defence.

Relationships are the third wall in Sales Defensive Strategy.

We know that you cannot Sell on Relationships alone,
nor will you be able to defend on relationships alone.

But, they are a vital part of Defence! A good Account Defence, is based on a broad set of Sales-Customer relationships, from the front desk Receptionist through to the CEO.
The front desk may well be your first ‘early warning’ of Competitive Activity in the Account. 
Build an ever growing network inside your Customer,
connect them back into your Company, KEEP ON SELLING!

When I conduct Customer Retention Strategy Workshops,
I always ask the same starting question:

What would you do to win this account?

We spend a lot of time working out the BEST competitive Acquisition Strategy against us,
then, and only then, do we begin formulating our Customer Retention Strategy,
to hold onto [and often Develop] our Customer.

Just a final note, I was at Burroughs [now Unisys] when they adopted the Tactic of Hunters and Farmers.
Against IBM and Hewlett Packard this was a DISASTER,
as fast as our Hunters Won new Business,
our Farmers Lost existing business.

A New Business Salesperson with a Sales Acquisition Strategy
will always take Business from an Account Manager
who has not both planned AND executed their Customer Retention Strategy.

Start Building those walls today!

Closing is a Dysfunctional Selling Skill

 

In his blog http://thesaleshunter.com/never-leave-a-sales-call-without-closing-on-something/

Mark Hunter offers advice on how ‘Closing’ [asking for continuance in this case] should be done when a Sales Call is going badly. The premise he uses for this is the “Try Harder”, “persist longer”,
the “never give up” Sales school.

 

Mark writes:

 

“It is essential to always remember there is no such thing as a final sales call. If a sale can’t be made, there is still a sale that can be made and that’s selling yourself and creating a next step.”

 

 

 

What is the Evidence Basis for this view?

Well, Top Sales Performers use the opposite approach.

They ask themselves what is the likelihood of winning this business?
Unless their chances are high [the algorithm they use I will write about at a later date] they cut and run.

Their most important resource is their TIME, and they don’t waste it, on unlikely sales.

Poor Sales Performers, on the other hand, don’t give up.

They flog dead horses. Poor Sales Performers appear to lack judgement,
they do not use an Algorithm.
They spend 4 times as much time on No-sales as Top Performers.

Mark then writes:

“Minimally, strive to agree on what is keeping the customer from making a decision to buy.
Doing this helps to clarify in both your mind and your customer’s mind where the issues are.”

This is a highly Dysfunctional Selling Skill!

Agreeing with a Customer’s Objection is called “Objection Reinforcement.”

This was used disastrously with the Positive-Negative Close.

“You’re too expensive!”
“Yes, we are expensive, and it’s this Price ‘exclusivity’ which many of our Customers enjoy!

Agreeing with ANY Customer objection reinforces the Objection.

Xerox PSS in the 1970’s used a step in Objection Handling called “Confirm and Isolate”
e.g. “You believe we are expensive, is this the only reason why you won’t go ahead?”

Salespeople who used this were found to be 10 times less likely to get the business,
than Salespeople who missed this step out!

 

First of all recognise,
that YOU have most likely made mistakes both before, and during, the call.

Poor pre-call qualification, poor proposition or insight preparation or just poor selling skills during the call.

Don’t make it worse by “Reinforcing the Objection”,
or by causing further Objections through more ‘Closing’ or Commitment requests.

 

So, how can you manage the ending to a ‘difficult’ call?

DISAGREE with what is keeping you apart,

ask for a time-out and a new appointment.

 

 

Give a positive reason for the next meeting,
see three great selling skills that really work.

 

http://brianmaciver.blogspot.com.es/2012/02/three-great-selling-skills-that-really.html

And, finally if you did a good job in the Call, and it did not payoff, use the Algorithm “Move on!”

Sometimes Your Cheese really has Moved!

Be the Type of Salesperson who uses an Evidence base to Support their Sales Behaviours, not speculation.

Putting Challenger Selling to Work–One

 

Top Performer Challenger Salespeople BEHAVE differently from Average (or Core) Challenger Salespeople. What is it that Challengers DO which either holds them back or makes them more successful?

One of the differences is in HOW they Challenge the Customer!

 

 

I have just reviewed a quantity of recorded sales calls.
I was running Behavioural Analysis on BOTH the Customer and the Salesperson.
Running the recordings both Forwards and Backwards

i.e. WHAT did the Sales person say to CAUSE the Customers response and

HOW did the Customer Response ENABLE the Challenger Process.

Let me share with you an Insight gathered from the recordings.

Some of the BEST Customer responses, which enable a Challenger Process,

Teach, Tailor, and Take Control were questions 
prefixed by the Salesperson with the word “HOW” in their question.

 

“How” is a very challenging question!

• HOW do you do that currently...HOW would you like it to do it in the future?
• HOW does that work...HOW should it work?
• HOW could it add more value?

Some of the WORST Customer responses were to Sales Questions prefixed with WHY.

• WHY do you do it that way?
• WHY have you not considered making Changes?
• And “any Customer Statement” then the Sales person responded WHY?

WHY, seems to put Customers into a defensive “Justification” mode,
explaining WHY they do things.

HOW, seems to put Customers into an open “Explanation” mode,
HOW things are (or How things work)

The Power of “HOW” was published in 1987 by Miller & Heiman in:
“Conceptual Selling” (P. 119), in a slightly different context.

 

Sales Challengers should be aware of HOW

it can increase their effectiveness.

Sales Challengers should be aware of WHY

they might struggle!

.

Three Times when a Salesperson MUST involve their Sales Manager.

 

1. Before a “walk-away” from an Opportunity

 

2. Before “No-bidding” an Opportunity

 

3. Before recommending a Competitor for an Opportunity

 

 

 

 

Over the last 3 years, all of these issues have arisen with BMAC Clients

and what was missing was the conversation between the Salesperson and the Sales Manager.

 

No Salesperson is allowed to take these decisions on their own, ever!

 

These three Decisions are Joint Decisions where the Salesperson “recommends”
but the Sales Manager “decides”.

 

This more than just a “sanity check”, it is good Business practices. Taking the Decision on your own is not only Bad practice; it can lead to your dismissal.

 

 

1. The walk-away.

Learning when to walk away from an Opportunity is a key skill common to all Top Sales performers (and Professional Gamblers).
It’s a complex formula of Cost/Reward based on you “Likelihood to Win” the deal. If the odds are stacked against you, then it makes no sense to throw good money after bad. The common failure of Poor Sales Performers is to waste huge amounts of time on “No Hopers”, because they have a near empty Pipe line!
The walk away review with the sales manager should involve a Joint Customer visit, to confirm the facts. A bold move is to inform the Customer of your intended walk away and your reasons for it. Again, this should happen if it needs to, but it should not happen on a whim! 

Sometimes we have to change the Salesperson and reallocate the account.

2. No-Bidding an opportunity.

This should be done during a “special” Opportunity review. It is based on risk/reward, pursuing “no-hopers” COSTS our Company money for no reason, no reward!  Bids are expensive processes, the biggest cost is the other business lost while using key resources on the bid! It is reasonable to expect a win possibility of better than 50% before bidding an opportunity. The no bid special review occupies the 20%-50%, range. Below 20%, why are you bidding? The no-bid decision should be reviewed with both the Manager and the Customer. Strangely, the no-bid announcement can have a dramatic effect on the Prospect, increasing the likelihood to win greatly!

Again, the Sales Manager may have to reallocate the opportunity to another Salesperson if there is a particular need for Skill or Knowledge which would bring the opportunity to a “likely to win” status.

 

3. Recommending a Competitor.

(This would be a Firm which competes with you directly in the same Product/Market, not a Complimentary Product which you don’t have!) For many of my Clients this is NOT allowed. However, during the last decade, the rise of the “Trusted Advisor” has led to this occurring more and more often. There are two reasons, why salespeople may recommend a Competitor. The first is in a reasoned way, in the hope of winning TRUST and credibility with the Prospect which will pay off in a big way later. The second reason is because the Sales person is CRAZY. Both are really good reasons for NOT taking this decision on your own, but involving your Sales Manager to review your recommendation and for the Manager to agree or disagree, i.e. The Sales Manager makes the final decision. A key question which must be discussed internally is “What if I am wrong?” The consequences of giving your Competitor Account access AND your endorsement may have devastating and long term consequences. If the Competitor performs well, you could find yourself “locked-out” for years; if your Competitor performs poorly you may share the blame, thanks to your Recommendation! Lose, lose!

BMAC Consultants believes this is ALWAYS wrong.
If you are using it as a “technique” to gain trust, ultimately the prospect will realise you are manipulative. If you are foolish or crazy then you are likely to lose your job.

 

DON’T DO IT.

No-bid, or Walk-away.......
come back to fight another day!

 

Further thoughts on difficulties with Trusted Advisors:

http://brianmaciver.blogspot.com.es/2011/12/dont-trust-trusted-advisor.html

 

.

Selling is life or death.

I have been asked by a Sales Manager who I mentor,

"What’s the best way to sell life insurance?"

 

In the old days it was

“Reverse a hearse into their drive way, and then let them smell the flowers!”

 

Life Insurance was sold on a “Peace of Mind” Value,
“think of how your loved ones would be able to cope after you’re gone”. 
The Policy Holder inevitably, paid in but was not paid off.

I had identified with the Sales Manager his staff member with most success. 

She was a New Hire a Graduate Trainee, selling the product well. 

What was her secret? 

“I focus on women with new babies!” 

Every time a Pram comes in I ask
“Have you thought of increasing your own and your husband’s life cover to include the new baby?”

The most frequent answer is “We hadn’t thought about it yet.” 

Then, I give them a short overview on Fatal Illness and Life Cover. 

She was having the most success in the office!

There are a couple of really useful points. 
When “Change” happens we are more open to other “Changes”. 

Responsibility is just as good a “motivator” as fear. 

AWARENESS is the first stage in any Buying Process. 

Spot the market, prepare the offer, give the insight,
construct the Value and let the Customer Buy.

We reviewed “CHANGES” in people’s lives that might provoke an Insurance review, we found 7. 

We ran a short workshop for five staff,
on identifying changes and when identified how to introduce an “Insurance Cover Review”. 

The most successful "change" now is “empty nesters”,
over-insured Parents whose children are no longer dependant on them. 

The product?  
A reduced cost policy which meets their current reduced needs.

 

Insurance really is a cradle (or Pram) to grave business. 

So too, I think, is Selling!

Three Great Selling Skills that really work.

 

Opening The Sale

is becoming a lost art.

During recent Sales Field Coaching
I have watched a few Rookies and some Veterans fumble the opening ball pretty badly.

We are in the Customer’s office;
the social pleasantries have been completed now it’s time to

OPEN THE SALE!

· “Right then, down to business!”

· “How’s business?”

Both are equally BAD,
even though one is a statement and the other a Question they BOTH immediately lose you control of the call.

You are now on the Customer’s Agenda (usually ill-prepared; as you had asked to meet them so they thought you were going to prepare an agenda.)

 

 

There are three evidence based techniques to OPEN THE SALE.

They are:

1. Initial Benefit Statement

2. Initial Problem Statement

3. Initial Value Statement

None of these are elevator pitches.

An elevator pitch is a general statement about
What your Capabilities are and How that may be of general interest to Suspects.
Keep Elevator pitches for chance meetings with strangers and elevator journeys.

Bob Apollo has written a useful guide to Elevator Pitches on this link 

http://tinyurl.com/74xggs3

Do NOT use Elevator Pitches in face-to-face sales calls, they DON’T work!

1. Initial Benefit Statements,
take a LIKELY need and show how your capability can fulfil it.

“Many Commodity Traders need the LOWEST POSSIBLE LATENCY (time delay) to make their trades early. We offer the lowest Latency from the City of London to the Frankfurt Market.”

“Would this be of interest to you?”

(36 words) with TWO simple ideas: The need for Speed and our ability to deliver Speed.
The Client was a the Head of Trading in a German Investment Bank

 

2. Initial Problem Statements, take a LIKELY Problem and show

how a Capability we have is being used to overcome the Problem.

“Recently we are being asked by more and more Clients

to help them REDUCE STAFF TURNOVER, without increasing Payroll costs.”

“Could we show you how we would be able to help you do this?”

(34 words) with TWO simple ideas, lower staff turnover and no increased costs.
The Client was the Head of HR in a Call-Centre.

3. Initial Value Statement,
are clear statements of DELIVERED Value in similar situations.

“Typically our Inventory Management System increases stock turns in a business like yours from 6 to 7 or even 8 times a year. This has delivered a 13% up to a 25% stock cost saving.”

“Is this something you would Value?

(40 words) with TWO simple ideas Increased Stock Turns and Cost Savings.
The Client was the Head of Merchandising at a large store.

In all three cases we are INITIATING The Sale with an Idea,

that is LIKELY to be of interest to the Client,

and then we ask for the Client’s agreement to continue.

In the Research none of the three techniques worked ALL the time.
Each should work about 4 out of 5 times.
If they don’t work then review your CONTENT,
it may not be relevant to the Client or the Client doesn’t understand it!

The total words used should not exceed 40.

The Initial Statement should contain only TWO ideas, THEIR need and YOUR capability.

OTS	First:	Then:	Finish
Initial Benefit Statement	NEED	BENEFIT (possible)	Question
Initial Problem Statement	PROBLEM	HELP (never a Solution)	Question
Initial Value Statement	CAPABILITY	RETURN (indicative)	Question

 

Proof Statements, if appropriate, can be used if less than 40 words from Client referrals, Testimonials, Editorials or Articles.

 

In Golf you may “Open for Show” (Drive), but “Close for Dough” (Putt), but

in Sales if you don’t “Open for Dough”, then you never get to “Close for Dough” either!

Does Sales Training increase Top Line Revenue?

 

a) What is the effect of Sales Training on Revenue?

b) Is there any evidence that Sales Training impacts on Revenue?

 

 

Evidence Based Sales Training, when completed by Sales Coaching, can change the Sales Behaviours of the Salesperson. There is ample evidence based information (e.g. SPIN(r) and The Challenger Sale) to show that SOME Sales Behaviours are more effective than others.

Also, we can show from an evidence basis that some Sales Behaviours are Ineffective (waste of time) and finally that some Sales Behaviours are counterproductive (Dysfunctional).

 

 

 

 

By reducing or eliminating ‘Dysfunctional’ and ‘ineffective’ Sales behaviours
and by increasing the use of Effective Sales Behaviours
the following “effects” can be measured.

 

 

 

a) Increased Pipeline (more opportunities)

b) Better Qualification (eliminating no hope-opportunities)

c) Improved win rate

d) Shorter Sales Cycle (from Lead to Close)

e) Increased Revenue

f) Improved Margins

In 2013, all of this and much more “real time” data can be pulled off of your CRM or SFA, quite easily.

When writing my MBA Dissertation “Performance Measurement and Management of a Sales force” (1999)
I found that there is always difficulty of proving ‘cause and effect’,
especially when using ‘Proxy Measures’ and ‘Success Indicators’.

Instead, we often have to use factors “associated with success”
to plough our narrow furrow!

Evidence Based Sales Training has the following Flow:

a) Identify Behaviours associated with Sales Success and Failure

b) Measure the presence or absence of these Behaviours in the Sales force

c) Complete a Training Needs Analysis (PDP at the individual level)

d) Design the Behaviour Based Sales Training Program

e) Run the Training and the associated Coaching to modify their Sales Behaviour

f) Internal Validation – Did the Salespeople LEARN the new Behaviour?

g) External Validation – Are the Salespeople USING the New Sales Behaviour?

h) Evaluation – is the new behaviour producing the expected results?

You could read more about this in Leslie Rae’s Book
http://www.amazon.com/Assessing-Value-Your-Training-Evaluation/dp/0566085356/ref=ntt_at_ep_dpt_1

Or by using the Kirkpatrick Model

http://www.kirkpatrickpartners.com/

All of BMAC Consultants’ research, and the measured outcomes,
is bound by non-disclosure agreements with Clients.

But, from experience and exchanged anecdotes from other Evidence Based Sales Trainers
the expected Group or Line of Business Revenue result during the year of Sales Training
is between +15% to +30% improvement to Top Line Revenue.

At the individual salesperson level, a fully trained and competent (Evidence Based) Salesperson
after 3 years of planned curriculum (at an 80% Competence) can be expected
to perform at +200% to +300% more Revenue Performance
above the “average untrained” Salesperson.

 

How can we “prove” that
Evidence Based Sales Training
delivers Revenue Improvement?

Personally, when asked to do so,
I ask for 6 “stuck” deals from the current pipeline and
then I DEMONSTRATE the capability of the Sales Skills
to UN-stick or Close the Deals.

If you will settle for two anecdotes [not sourced] :

a) A deal worth £17M in Revenue and £4M in Margin had been “stuck”
or more accurately “lost” for
370 days at ‘Proposal made – Decision pending’. 
I reframed, we constructed and wrote a new Value Proposition
(reducing it from 103 pages to 4 pages),
presented the new Value Proposition and Closed the deal all in 10 days.

b) A €4M Revenue Renewal Negotiation “stuck” by the Customer’s demand
“for a 30% discount to match a Competitor’s offer”,
it was rated as a “Lost” deal in the pipeline!
I met with the Decision Maker, we reframed the deal increasing its Value to €7M,
and then we discounted by 12% against a Delegation of Discount Authority maximum of 15%.
From meeting the Account Manager, Planning the Call and Agreeing the Deal - 180 minutes!

This fits because People just want the success secret;
they just want the recipe to imitate success.

.

The true secrets of Sales Coaching for Success

 

Traditionally Pre-call Questions:

"What are your goals for the call,"
"Do you have stretch goals,"
"What is the worst thing that might happen in the call, how do you plan to handle it?"
"What's the value the customer will get from this call?"

 

After the call, your Sales Manager might ask:

"Did you accomplish all your objectives,"
"Is there anything more that you might have accomplished,"
"Is there anything you would do differently?"

Many of us were coached this way, therefore some of us Coach others this way too. There is not a lot of empirical evidence to support any style of Sales Coaching. So, we have no rules, no right way or wrong way, just the ways we know of, or the ways we experienced as Salespeople.

 

Let me ask you a question:

“Would you use the same methods to Coach Children to read and write,
   as your School Teacher used to Coach you?”

 

I have been blest by having been coached in Golf by three of Golf’s Top Coaches,
David Leadbetter, Butch Harman and Dave Pelz.
Each Coach in their own way is unique and very special.

Dave Pelz

is Golf’s “Scientist” he has produced more empirical evidence on the behaviour of the Golf Ball on the Putting Surface and in the air than anybody! His expertise in the short game is encyclopaedic. He “Demonstrates”, using a perfect Putting Machine called “Perfy” which can repeat the same perfect putt as often as you like!

Butch Harman

is, along with Tom Watson, just one of Golf’s Gentlemen, great company and you could listen to their discourse on the Great Game forever. Butch’s approach is “feel “and “shot making”, you will use clubs in new ways and play great shots as never before. His success in Golf Coaching is unsurpassed.

David Leadbetter

is a golfing phenomenon, he is sometimes called “The Swing Mechanic”, but if that makes you think of the guy who services your car, DON’T. Think of the “mechanic” who tunes the Ferraris to racing perfection before a F1 Gran Prix.
The DL Golf Academy’s proud boast is that they can help ANYONE to play better golf.

Three completely different approaches, three different styles YET they all coach the SAME WAY.

The True Secrets of Coaching are:

Analyse, Demonstrate, Prompt, Release, Four Stages,
repeated over and over until the Golfer Learns and Improves.

Analyse:

They ask you to show them how you currently play the shot,
you show them maybe three of four times.
They see your “problem”.

 

They “Demonstrate” the right way, to play the shot.
Then YOU attempt to make changes while they give you “Prompts”,
little changes to increase the chances of a good shot.

Then when you have reached a reasonable level,
they “Release” you to practice on the range or apply it on the course.

Before you leave they set expectations of “good performance”
so that you can analyse for yourself in the future.

 

 

 

Is there empirical evidence that this works, you bet!

I unhesitatingly recommend all three Golf Coaches.

For about fifteen years now I have used the same Analyse, Demonstrate, Prompt, and then Release approach to both Sales Skills Coaching and to Sales Strategy Coaching, with empirical success.

What Golf Coaches don’t do is:

Pre-Shot Questions:
"What are your goals for this golf shot,"
"Do you have stretch goals, for the shot"
"What is the worst thing that might happen in the shot, how do you plan to handle it?"
"What's the value your game will get from this shot?"

Nor do they ask you post shot:
”Did you accomplish all your objectives,"
"Is there anything more that you might have accomplished,"
"Is there anything you would do differently?"

They already knew the answers to all these questions,
and they want to change your behaviour using a simple process Analyse, Demonstrate, Prompt and then Release.

Sales Coaching for Skills are best done with a Customer Visit, and then three more visits.
More on:

http://brianmaciver.blogspot.com/2010/09/sales-coaching-do-it-right.html

Coaching for Sales Strategy is best done in the office, or on SKYPE, NOT the Customer’s Office

http://brianmaciver.blogspot.com/2010/08/sales-strategic-success.html

Is there empirical evidence that this works,  you bet!

 

Being a Sales Coach is great fun,

it’s really rewarding and it brings great results.

     

But, Coaching demands we learn
how to Coach effectively,

and that WE should be “coached” in Coaching.

But, like Golf, Coaching, after you learn how ‘to play well’ it’s a lifelong friend.

Over boarding poor performers

I have written about “ON boarding”, which is the process to productivity and job satisfaction.

Grasping the nettle firmly by the hand, I want to talk about OVER-boarding. At its worst, fellow employees are made to “walk-the-plank” literally, they are a warning to others.

This can be especially true in Sales departments. It indicates profound ‘Management’ problems, as the cost of selling in a “Hire and Fire” department is always going to be much higher than it needs to be.

Nevertheless, I do not believe in rewarding failure either. Giving gratuitous large ‘exit packages’ to ‘get rid of the problem’, usually means we still have the problem. The problem did not leave the company it stayed!  First and foremost, in any overboarding, Employment Law and all Legislation must be observed. I have neither the time, nor the inclination, for the ever-changing details of this so I ALWAYS consult an expert, either the Company Lawyer or the VP of HR, and work under their supervision. 

 

 

I follow each stage of the disciplinary process to the letter, and the spirit, of the Law.

We also recognise the ethics and social responsibility of the firing transaction, firing somebody has consequences.  No Company can carry non-performers, or poor performers, but fairness has to be seen to be done. Examine your conscience and actions for prejudice or bias, any element of gender, age, religious, racial or any other bias must be mitigated to insignificance. After examination of conscience, you will find that you give some people a ‘second chance’.

The process is identifying the issue or issues, attitude (will not do), competence (does not do) or knowledge (cannot do). Be clear, which is it?  You have three different roles Counsellor, Coach or Trainer to manage these issues. Now manage the issue, inform the employee of the issue verbally and confirm the discussion in writing. This is what is wrong, your poor performance, this is what we discussed and agreed as the actions you will take, and this is a reasonable time for you to effect change, with an agreed next review date.
On the review date changes MUST be measureable.

No measureable change, after a reasonable time, means moving to the next stage.

This next review is an ultimatum, if you cannot change these issues, to our agreed standard by this date, then this will be the consequence.  If there is a sufficient change, then you must stay with the process.

Marks that identify a Top Sales Talent Manager are right recruitment, short time to productivity, productivity maintenance AND employee TURNAROUNDS.

However, in most cases there is little to no improvement. You and your Expert Supervisor have decided that the process has run its course, and termination of contract is the only or the preferred option.

Communicate the decision jointly to the employee;

you are terminating
the contract of employment,

NOT the PERSON.

The timing and place of the termination interview should be well considered, from the employee’s point of view, near the end of the day is best, allow for 60 minutes.

 

 

The Manager is responsible for the interview, and the ‘expert’ supervises that all is done correctly; both share the responsibility to ensure that the employee’s rights are respected.

There should be no surprises at this meeting.

This is the expected consequence of the various non-performer interviews.

What can be expected and accepted is an emotional response from the employee.
Emotions do not have to be agreed with, but they do have to be recognised.
It is, I think, a right place for the Golden Rule:

Treat others, as you would wish to be treated yourself, fairly and with courtesy.

In my experience, ‘bundled out the door’, is not the best way. A few days to put their affairs in order, to say goodbyes, and accept what has happened is usually best but it has to be supervised. That they are leaving the company should be announced by Management, without detail, “by agreement” is the simplest form of words.

In my experience, the whole process should never take more than 12 weeks,
4 weeks or instant ‘voluntary agreements’ are also common.

A final word, on grievous misconduct, these rare events should be accomplished with the utmost speed under the supervision and control of the Legal Department and HR, not the line manager.

The key consideration is the safety and well-being of colleague employees.

BMAC Consultants offer a full range of Talent Managements services, from recruitment to termination,
Contact brian.maciver@gmail.com

Sales Fatigue kills sales

 

Are you ramping up for
a big finish, a big 4^th quarter?

 

Ramps go up and they go down,
where will you be in two months, the start of December?

 

What happens to performance when we pass the medium arousal (activity) level?

Performance Drops Drastically

What are the symptoms of Sales Fatigue?

An inability to prioritise activities, long work hours with little or no results.

Inertia, indecision, forgetfulness
and tiredness (which can lead to mistakes and a stress increasing cycle.)

What should we look for?

Changes in behaviour, angry outbursts (or tears), erratic activity.

How should we deal with it?

• Get a lot of sleep!
• Take a day off and relax, chill-out and read a book
• Play some golf or go for a long walk
• Listen to some music or see a good movie.

Do anything except work for 36 - 72 hours then ------
have a meeting with your boss, agree priorities, and agree actions.

Work a Maximum of 10 hours a day,   better still 8 hours.

Sleep a Minimum of 8 hours a night, better still 10 hours. 

Get plenty of rest and watch it come back together again.

Be cautious in your use of Alcohol or Prescription Drugs,
they can ‘mask’ a serious underlying problem.

How long do we as Sales Managers accept Poorest Performance?

 

I want to deal with a thorny issue:  

“Never try to teach a pig to sing;
it wastes your time and
it annoys the pig.”

Robert Heinlein quotes
(American science-fiction writer, 1907-1988)

 

In over 20 years Coaching and Managing “Poorest Performers” it just doesn’t work. It wastes YOUR most precious resource TIME, and you get no thanks from anyone. I have seen a few Sales Managers cut short their careers due to their stubborn behaviour in persisting beyond the limit “Coaching” Poorest performers.

These are the guiding lights for the Manager/Coach.

1. Know thyself

2. Nothing in excess

You cannot teach or coach a Pig to sing, it just cannot be done.

If you are trying to do it then you do not know yourself, you are not capable.
Your JOB is to manage and coach Winners not cosset poor performers.

Let us put some numbers together.

A ‘POOREST Performer’ at their current sales speed (Monthly) will take at least 24 months to achieve this year’s Target.

Every sales person at below 50% YTD (year to date) against the YTD target
is a poorest performer.

Below 80%, Target is a poor performer. Low average is 80%-90% and High average is 90%-120% and finally 120%+ is a Top Performer.

 

If you do not have Salespeople in ALL these categories,
then you have a Sales Targeting issue, too hard or too easy!

Taking a snap shot with the sales year half over (six-month point), you have 3 of your 20 sales people with only 25% or less of their annual target sold. At the high end you have a top performer with 100% of her target complete, and a number of others who should, at their current sales speed, be through their year’s Target before October.

Whom are you going to coach?

If you decide to invest time at the bottom few, even if you double their performance, it will make little difference to YOUR number across 20 people.

• Know thyself, says It’s the wrong place with the wrong people.
  

• Nothing in excess says to spend 30 or 40 precious hours to little result is the wrong place with the wrong people.

What can you do with Poorest Performers?

Produce a Personal Improvement Plan which they OWN for improvement in Activity, Knowledge and Skills.
Review the changes after 4 weeks, if no or little change has occurred, then move to the next stage in disciplinary, with a view that unless they can change within the next month you will terminate their contract.

After 4 weeks, if there has been noticeable improvements due to the efforts of the individual, then review and update the plan for 4 more weeks. Their sales run rate should have moved to above 60% for the month.

After 8 weeks, there should be a substantial improvement in Activity, Skill and Knowledge. They should be at or above the average for sales activity, and be achieving pipeline growth at the average rate. If these standards are not met, then move to the next stage in the disciplinary procedure with a view to terminate their contract.

After 12 week, they should be at or above average in all areas with all results. Their Sales this month should be above 80% of the monthly target. If 80% of Monthly Sales Target has not been achieved then move to the next stage of the disciplinary procedure, with a view to terminating their contract.

12 weeks is the maximum investment in the poorest performer, and 4 or 8 weeks may be appropriate in many cases.

 

After 12 weeks its either up or out, and it was down to their personal effort, not your time investment.

You had spent the last three-months focussing on your Top Performers where you had amazing results!

Sales Manager Black Adder’s Post Call Review

 

B:   (Baldrick the sales representative)        “How did I do boss?”

BA: (Black Adder the Sales Manager) “Not very well, I’m afraid!”

B:   “What do you mean I thought it was great?”

BA:  “Well, you did not ask any QUESTIONS.”

B:    “I asked for the order.”

BA: “Yes but, you did not ask any ‘Open’ questions”

B:   “But, I got the ORDER.”

BA: “Yes but, do you understand their needs?”

B:   “It’s the biggest order anyone has taken this year,
       it put me through target and
       should pay for an extra holiday this year.”

BA: “You have the wrong attitude to Coaching, Baldrick.
        How do you ever hope to improve when you don’t take advice?”

B:  “Sorry Black Adder, I’ll have a cunning plan by next month”

BA:  “Tschh! If your still here next month, Baldrick!”

Sales Coaching: Do it Right!

 

I did an exit interview with a salesperson leaving for a competitor.

He wrote the following comments:

“I am leaving because of the lack of Development in the Company. My Manager ranked my selling skills at my last appraisal as average. I do not know how he measured me, as he always jumped in and took over the sales call.

He has not seen or heard my selling skills, but I have seen and heard his selling skills. He talks excessively and barely listens to the Customer, he exaggerates to the point of lying and he ‘knocks’ the competition.
He has poor selling skills and no coaching skills.

As I want to develop my Sales career I am leaving the Company to join one with a recognised development program.”

 

 

 

The Manager who had the last word wrote,

“I would not employ this salesperson again!”.

 

 

 

 

 

Sales Coaching is a Joint Process. The Sales Manager with the Sales Person together Identify a development area.
They then agree a plan for learning and practice that they carry out together,
until the required standard is met, for that development area.

 

Sales Coaching is based on:

• REVIEW, Plan then Do
  

• At each joint call it is 

  DO, Review then Plan
  

• After each appraisal its

  PLAN, Do, and then Review again

Sales Coaching is a Continuous Process,

its part of ‘business as usual’ in a Learning Organisation, coaching is not a special event.

BMAC has validated Sales Standards of Performance, Sales Assessment and Sales Accreditation models.

BMAC runs Training for Coaches and Coaching the Coach, both of which are based on validated models.

If you would like to find out more about Sales Coaching contact brian.maciver@gmail.com .