| As CEO or Senior Executive, you have the | | | | sales organizations. Once hired, management should |
| responsibility to ensure that your business runs | | | | invest in regular ongoing sales performance |
| smoothly, effectively, efficiently, and most importantly | | | | improvement training as a means of maximizing the |
| of all, profitably. Successful businesses should | | | | investment made in the salespeople. |
| continually strive to improve sales performance by | | | | 2. Processes |
| mastering the Three P's that result in business | | | | Once your firm's sales strategy, targeted markets and |
| prosperity: People, Processes and Performance. I'd like | | | | targeted prospects are identified (and there may be |
| to help you think about your mastery of the Three P's | | | | more than one depending on product/service offering |
| as it relates to sales and revenue capture, so that your | | | | mix), a written and documented sales process needs |
| business performs to plan regardless of the state of | | | | to be completed. The main reasons are 1) salespeople |
| the economy. | | | | come and go, 2) a documented process is a tool to |
| 1. People | | | | teach, train and manage your sales team, and 3) your |
| Every successful business is the result of the work | | | | sales team can be scalable as you grow. Well written |
| performed by its people. It is the job of every | | | | sales process documentation includes: |
| executive and manager to hire correctly. Regardless | | | | - A description of your target market and their |
| of function, having the right people in the right jobs | | | | revenues |
| maximizes the chances for success. | | | | - Identification of the titles your people sell to |
| Hiring mistakes are costly in terms of money, time and | | | | - Product descriptions of all products/services sold |
| lost productivity. It is essential you hire candidates that | | | | - Targeted price points to sell at along with target |
| blend into the company culture. With salespeople, it is | | | | margins |
| essential that you hire according to your firm's growth | | | | - Documented sales objections and ways to address |
| stage. According to Paul DiModica, a leading specialist | | | | them by title |
| and consultant, and author of Sales Management | | | | - Sales Value Propositions for each product or service |
| Power Strategies, salespeople fall into eight different | | | | that you sell |
| categories: | | | | - Documenting WHY prospects buy as well as WHY |
| - Hunters are full-cycle salespeople. These are | | | | THEY DON'T |
| survivors that will outlast and outwork all others. They | | | | - A checklist of the sales steps involved |
| know how to prospect and own responsibility for | | | | - A description of the prospect qualification process |
| results. | | | | and the expected sales cycle |
| - Farmers are half-cycle salespeople. They cling to | | | | - Metrics for success |
| existing accounts and squeeze by on existing business | | | | - Lead generation and follow-up expectations for each |
| contacts. | | | | sales person |
| - Players are salespeople that play by the company | | | | - Sales training timetable |
| rules. They perform adequately, are team players and | | | | The process should be published and distributed to all |
| competent account managers. | | | | sales employees, and it should be reviewed on a |
| - Cowboys are generally well-experienced, | | | | regular basis to match business and product changes. |
| independent, operate outside the rules. They require | | | | The process is what gives rise to the metrics that |
| lots of direction and often end up alienating managers, | | | | assess sales performance and measure success. |
| co-workers and more importantly, customers and | | | | 3. Performance |
| prospects. | | | | Once your executive team has established hiring |
| - Politicians continually manipulate their corporate | | | | practices and has documented the sales process or |
| surroundings to position themselves with management. | | | | processes, management must consider the |
| They will often circumvent rules in order to prove their | | | | performance goals for each position. Sales |
| way is better. | | | | performance metrics should focus on measuring the |
| - Trotters are just steady producers willing to work | | | | effectiveness of steps in the sales process that lead |
| within the system, learn as they go and perform at an | | | | to revenue. A sample set of metrics might look like this: |
| above average pace. These sales people can be | | | | - How many calls are made in a given day/week |
| molded into hunters. | | | | month |
| - Half-Cycle Salespeople are long timers who feel that | | | | - How many calls it takes to make one appointment |
| cold-calling, account management, process are | | | | - How many appointments it takes to make one |
| beneath them. They produce under the radar and | | | | proposal |
| often overrate their skills in developing long term | | | | - How many proposals it takes to make a sale |
| lifetime business. | | | | - What the average sale value is (including margin) |
| - Non-Performers generally do not fare well in their | | | | - How many sales it takes to make quota in a month |
| sales role, may be miscast, or don't have the correct | | | | quarter |
| skill set to be successful in sales. | | | | - How a salesperson performs to quota in the |
| It is important that as CEO or Senior Sales Executive, | | | | measurement period |
| you have a firm grasp on your company's growth | | | | Since quota attainment is by far the most important |
| stage and ensure that you have the right mix of | | | | metric for any salesperson, it is the one metric that |
| players to meet or exceed sales revenue objectives. | | | | requires the most amount of thought. Quota attainment |
| The wrong mix of sales types, hanging on to laggard | | | | sets the revenue expectation necessary for the |
| performers, and general lack of sales management is | | | | business to operate profitably and meet all of its |
| the leading cause of poor revenue performance within | | | | obligations to its stakeholders. |