Yesterday we started the focus on changing the 80/20 rule, which I should have correctly attributed as the  Pareto Principle, to the 70/30 rule, or what someone today kindly coined the Shanto Principle, (a bit too soon and flattering I think).  Well leading that march needs to be the front line sales manager.
 
We often tell clients that a dollar invested in improving the effectiveness of their sales manager is worth five invested in skills training for the front line reps.  Further, I was recently shown a quote attributed to the Harvard Business Review which stated that increasing the effectiveness of your existing sales team by 8% provides the same lift as increasing their size of the team by 25%. This just confirms the power and opportunities inherent in sales managers, as they are responsible for the improved efficiency.
 
Unfortunately many front line sales managers are thrust in to the position without much preparation or ongoing development. All too often new sales managers are successful sales people who are promoted as a reward or as a means of retention, not because of their management skills. (See Management by Osmosis)  Given the fact that I believe the role of the sales manager is to manage the sales process and coach their teams to consistently execute that process, this type of promotion is fraught with potential challenges.  These challenges are often evidenced in the fact that 80% of sales managers are ill-equipped to succeed, usually through no fault of their own.  Addressing this takes effort by both the individual and the organization, preferably in synch.

Organizationally they can look at two simple things, and please remember the goal here is to move the dial a little towards 70/30, which means small steps to gain momentum, and then you can build on it.  First is a High Performance Individual Program, something done by some companies with various degrees of success.  The degrees are often determined by who is running the program, HR or sales.  The problem with HR is they tend to focus on the generic aspects of managing, rather than the specifics of sales.  The challenge when sales runs the program, is they often have the previous generation “80 percenters” is running it, which just perpetuates things.
 
But done right you can ensure a long stream of dividends by investing in potential future sales manager long before they assume the role.  By teaching them the importance of a sales process, defining, adhering while it is their job to execute it will better position them to manage and coach around the process when they step in to a management position. 
 
The second thing they can do is to actually have a defined, documented, and clearly communicated sales process.  (Perhaps this should be the first)  Without that you can’t really succeed in sales, and it goes without saying you can’t indoctrinate up and comers to believe in and benefit from it so that they will then pass on the habit to the next generation.  Changing the heritage from the old “80 percenters” to the new “30 percenters”
 
On the individual front is to understand the difference between truly managing a sales team and being super sales guy.  Many step in to the role feeling that they have to be all things to all their people and spend very little of their time actually managing and/or coaching.  They continue to get involved in deals, salvaging them rather than developing their teams.  (Although at times they should be firing them).  Depending on the studies you read many sales managers spend less than 50% of their time doing what sales managers should be doing, and doing things the sales people should do, juggling things hoping they don’t fall between the cracks.  In the process their team rarely develop or evolve and they themselves ware out and become disillusioned, pining for the days when they used to close deals and earn full commission for the work they do.  It is not uncommon to see teams where the reps bird dog leads and the manager runs around being super-closer!

By taking the steps on both the individual level and the organizational level, progress can be made and in the process of developing and leading a proper sales process you will likely see more High Performance Individual surface, more efficient sales teams, and a definite movement in the direction of 70/30.

What’s in Your Pipeline?
Tibor Shanto