The biggest self-deception in Business

 

The biggest self-deception in Business today is............................

 

 

That Sales People have any leading role in their Client’s Buying Process!

 

 

Buying 2.0 and the ever-growing network of greater Client savvy,
means Buyers do not NEED Sales.

Salespeople now only have a walk on part.
If their part is “scripted”, then they are not needed at all.

How long the Salesperson stays centre stage and
keeps the Client’s attention is a function of Sales IMPROVISATION and Buyer Activation.

The art of selling in 2013 is based on Creativity, Imagination and Insight.

Clients rarely tell Salespeople what they are ‘really’ thinking.
Buyers know they are being sold to,
so they tend to believe more about what Competitors say about each other’s products,
than what Salespeople say about their own product.

There is no place for Selling by repetition, or being an information point.

The days of just Communicating Value, [talking brochures] are over!

Customers want customization.

 

The success factors in selling today

• Understanding Buyer’s Needs, What, How and Why.

• How Sales Strategy Must Adapt to Buyer 2.0

Just before, you fire the Sales force and give the money to Marketing.
Don’t do it, because, Marketing is just as out of tune with Customers as Sales! 

Marketing ask for more and more money,
but can’t show other than anecdotal evidence of Return on Investment.
(Return on Marketing spend).

Every sales success is ‘claimed’ as a Marketing “win”. Yet, ask Buyers for opinions on time wasting websites, unfulfilled inquiries, hopeless “Corporate” presentations and one size fits ‘no-one’ or over-priced products. 

If you closed Marketing today, you would not notice any effect on Revenue.
In fact, if you replaced Marketing by a Customer User Group,
or Buyer Forum you would see both Cost savings AND Revenue growth.

 

What do you have to do?

• Give Salespeople Product Knowledge and Customer Business Knowledge -
  train them to offer insights.
• Get sales people to ask questions lots of questions until they can describe their Buyer’s needs accurately and comprehensively.
  This is what I want, this is how I will use it, and this is why I want it.
  So, that Salespeople can Customise [Tailor, if you prefer]

Selling is an art and a science.
You only manage the science;
you develop, adapt and refine the art.

Sales Innovation Pays

 

Working as a Sales Consultant last year, I did a Lost Business Review (Part of my Sales Audit). This was a substantial Sales Loss, to a Key Client (major financial organisation). I made one 30-minute visit to the client, conducted semi-structured interviews with the Salesperson, the Sales Director and the Sales Support (engineer).

 

My findings were straightforward.

We had been invited to bid only to make up the numbers. We filled a column on the Decision Matrix that was “new kid on the block”, along with ‘Preferred supplier’ and ‘Do nothing’ options.

We were occupying the “Sure Loser” column.

We did not help ourselves by bidding a high price and the wrong product! We were only selling to the Technical Recommender and had no access to the Financial Decision Maker or the User Group.

• Price too high,
• wrong product,
• inexperienced salesperson and a
• demanding customer

I took in all the facts; then I drew my own conclusions.

We had been out sold!

We never understood the Buyer Process, never met the Key People in the Decision Making Unit, then we bid the wrong price on the the wrong product. We put a ‘junior’ salesperson of limited competence on the account, he sank and we lost the business!

Our next ‘Big Opportunity’,
was a Company associated to the Client that we had just LOST!

As soon as this came on the Radar, I decided we are going to innovate.

The initial meeting had identified a need for “stuff” an ‘initial response’ and ‘outline proposal’ had already been delivered.

I STOPPED THE CLOCK!

We held a series of Account Reviews; with Sales, Sales (engineering) Support, Marketing and Provisioning.
I invited Finance to collaborate in financial modelling but they ‘preferred’ to work as a Sales Obstacle as the Sales “Margin” Police.

We called ‘High and Wide’ in the Account, including visits to their base in Paris from our offices in London.
We focussed on Demonstrating Capability and most importantly FLEXIBILITY.

We were aware of the competitive activity from client feedback
and slowly it became a “two horse race”.

I was determined to either “KILL” the opportunity or “WIN” the sale.
During our Go-no-Go week we had
full contact with the Financial, Technical and User Decision Makers.
We had a complete understanding of what they wanted and what they wanted to do with it.

I held a “Battle Ready” session with my CTO, Sales, Sales Support and Marketing Manager,
we agreed to innovate!  We ‘vertically integrated’ two services, we had the capability and some experience, we just did not have the product or service in place.

I took a commitment that it would be in place in 90 days,
so we sold the innovation to the Customer, it met ALL their needs.

We offered the Client a ‘Tailored Service’ at a ‘Competitive Price’.  Our proposition was based on our ability to deliver and execute, while the Value in Business terms to them was very attractive.
The Competitors offered a standard solution (meeting most but not all of their needs) at a good price.

 

WE WON THE DEAL

‘Contracting’ presented considerable difficulty
both internally and externally.

Despite the deal being Cash Flow positive from Day 1,
we NEVER received any support from our finance people!

In conclusion, sometimes you have to ignore the
“You Can’t do it” voices, you have to walk in
your Customer’s shoes, and then INNOVATE.
There isn’t always time to wait until it’s ready,
a No Sale generates No Margin.

 

The real purpose of Sales is Cash Generation.

 

We won for all the right reasons,
our Competitors on this occasion were OUT-Sold.

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 (SOP) Standard Operating Procedures

 

I am like most of you from a generation who did not give Military Service to my country. 
In the Military SOPs Standard Operating Procedures run the Organisation. 
Or, you would have to stop and devise methods to carry out even the most simple task.
“Doing it by the numbers” is the answer to avoid constantly solving the same problem again and again.

It can be mundane events filling and empty Barracks, layout kit
or simply load a gun with ammunition. 
You don't have time ask “How do I load this?” when under fire! 

There are SOP’s for once in a lifetime events, the Coronation of a King
or the burial of a Queen.
You can’t postpone the Funeral for six weeks to organise like a Wedding!

As a Sales Consultant, I audit SOPs in Sales Departments.

• Contracts, renewals, Cancellations for recurring events

Less frequent, but just as important

• Buyer Objections, Cold Call Scripts, Call Planners,
  Presentation Structures, Proposal Outlines
• How to run a corporate Golf day,
  Lunching a customer or prospect,
  or Monthly reviews.

These are Sales ‘Enablers’, part of Sales Enablement.

How good are your Standard Operating Procedures?

Part of the BMAC Sales Audit includes SOP review.

Sales and Marketing Integration.

Having consulted for the Last 20 years, at more than 100 organisations.  From Mega Corps. to Small Owner/Manager Business, in sectors ranging through Energy, Telco’s and Airlines to Food Growers and Retailers, Furniture Manufacturers and House Builders.  It still amazes me the number of Poor Performers due to disintegrated Sales and Marketing. Good Product, Good Market, and Good Channel but they do not perform!

I have over the years developed ‘categories’ for the Sales and Marketing relationship:

Divorced, they have taken new partners like R&D or Product Production or Customer Service.
They do not talk, they try never to meet and they blame one another for the poor performance.
This cannot work.

Separated, still living at the same address, but they do not talk.
When they accidently meet then it is conflict or conflict resolution, NEVER collaboration.
They are going to divorce.

Married, but take each other for granted. Regular meetings (this month’s agenda is last month’s minutes). They use similar language ‘leads’, ‘pipeline’, ‘Value Propositions’ and ‘Unique Selling Points’ – but have completely different understanding as to what the words mean!
They avoid disputes by rules and guidelines.

 

Newly Married, enjoy joint planning,
flexible boundaries and joint events.
Their talk is of Products, Promotions, Pricing,
Sales Channels and Systems.
It is working through their own hard work.

Fully Integrated Sales and Marketing:
Shared Language & Training
Regular Meetings, Joint Sales Visits, Shared System,
Joint Performance Measurement & Joint Rewards –
mutual responsibility for success.

 

 

Fully integrated Sales and Marketing WORKS and it doesn’t seem to matter if it is Sales led or Marketing driven, one leader or two.

 

It is always Customer Centric, it is a Set of Behaviours,
an Attitude and Shared Values.

It ROCKS! Now look at your Sales and Marketing, what is their status?

BMAC runs ‘Market Workshops’ to integrate Sales and Marketing,
successful behaviours, using a combined Sales and Marketing System,
Joint Performance Measurement from Enquiry to Close. 
Learn how to create the right attitude by sharing right values.

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 .