You’re Great At What You Do – But What You’re Doing Isn’t That Great0

By Tibor Shantotibor.shanto@sellbetter.ca

first prize

One of the things that makes great sales leaders great, is their ability to delicately balance various and at time juxtaposing dynamics in sales.  One of the more subtle but potentially very impactful of these is in achieving structured change and improvement in the way their organizations and individual sales people sell in changing environments.  Specifically the need to do the right things through the sales cycle, and – executing those actions well.

The challenge is to strike the balance between doing the right things and doing those things consistently better.

Organizations should be striving to create an environment and process that evolves with the demands of the market, which by definition means a continuous evolution in the way buyers buy, and the way sellers sell.  This does not mean daily or weekly changes, nor does it imply dramatic change, but over the course of time, say over 12 – 24 months there will be clear differences and movements in your buyers’ expectations, at times even the buyers themselves, and in the way your product is sold and how your sales reps interact with the market.  This in turn means the way you need to sell, the “right things’ you need to do and execute to win sales, will also change.

While this change or evolution is desirable and good, it does impact the other side of the scale, the “doing things better” side. Just as you begin to make progress on one skill set, or element of the sales process, change happens, making improvement a challenge, although not impossible.   The reality is that improving sales skills is not an overnight process like many try to pretend, as a result it is entirely possible that just as you gain competence and confidence in a given skill, the market will require that you change, and acquire additional skills which will take time to learn and master.  Starting the cycle over again.  This is why the difficulty in achieving a balance between doing the right thing and doing it better.

Companies deal with this in a number of ways.  Some choose to adopt core practices, and then spend time ensuring that their teams are improving their execution over time.  The up side, better execution, the downside, the skill is no longer relevant or revenue generating.  For an example of this, just look at the experience of those in industries moving to managed services from a previous product or similar sale, look at IT or print as an example.  IT players spent years perfecting the break fix sales or solution sales, when everything changed, from the buyer to the way they sell to that buyer.

Others will send individual sales reps to different programs provided by different third parties.  Some have told me that this allows for different ideas, and these will be shared among their team.  Interesting concept, I have yet to see it implemented well, and usually leads to many inconsistencies as a result of disparate inputs, certainly makes it hard to have a cohesive process.

One company I know invites a motivational speaker each year, their goal is to “pump up the troops, provide a little magic, and set them loose”.  While this may be fun, a 60 minute “motivational” presentation at a kick-off meeting, is a lot like cotton candy, sweet, fun, little nutritional value, and does not last much beyond the sugar high; it gets some laughs, some one-liners you can throw around the rest of the year, but does little get people to think, and does not ensure adoption of newly required skills.  Without adoption, there is neither improvement nor change, especially for adults who already have day jobs.  A consistent focus on adoption leveraging practice and a follow-through process, including a series of hands on sessions extended over a period of months, as we do with our programs, will drive adoption, which results in a change in how people sell.  Once you get them to implement, then you can work on helping them do it better, but again, shifts in market expectations.  But the reality still remains that just as they do it better they may be required to change.

One thing we do with our clients is to shift the focus of the sale, getting them to look at and focus on the buyer’s objective over other things, such as solutions.  The challenge in focusing on solely on solutions, is it leads to sales people running around the country side, where everyone they run in to looks like a problem that is right for their solution.

Many buyers have much greater clarity about where they want to go, their objective, than how they want to get there, the solution.  By changing the focus of the sale, you not only get deeper and better engagement, but you can adopt a specific interview style and process that drives engagement around the buyer’s objectives.  This creates a sort of “pull-through” effect, as the markets and individual client’s objectives evolve and change, so does the way you sell, and meet those newly evolving requirements.

Beyond the many benefits of putting their objectives in the bulls-eye, it allows organizations to create a real balance between getting your teams to sell the right way, while allowing them to execute better before introducing new ways to sell.

What’s in Your Pipeline?
Tibor Shanto

The Sales Version of Chicken or Egg – Sales eXchange 2050

By Tibor Shantotibor.shanto@sellbetter.ca

Chicken or egg

For many the age old question continues to be which came first the chicken or the egg, and while some have claimed to have the answer, there is a similar one playing out in B2B sales.

Most agree that you need to develop and maintain relationships with buyers (then clients) to succeed in B2B selling, but there is lot of debate about which comes first the relationship, or the sale?

First thing you have to do is define “relationship”, it is one of those words in sales that people use without often quantifying or defining its meaning.  Maybe the assumption is that “everyone knows” the meaning, but that is a false and risky assumption.  Some use it to hide their lack of knowledge or understanding of sales, and relationship is one of those sunshine words, if you keep using it, you sound as though you are in the know and good at sales.  I see this a lot when I ask sellers I work with to define sales, they’ll talk around the question, and throw in “relationship” at a few critical junctures where their response looks weak.

When you get into more formal definitions, you find two main camps. One basically states that the primary objective is the building of long-term relationships with customers from which repeat business will flow.  The other, believes that relationships evolve from good results delivered on sales that were initially made before there was a relationship, based on a positive experience, the interaction continues, relationships build and evolve.

Both agree that relationships are important and make for better and more sustained business, but like the chicken and the egg, they seem to disagree on which comes first, the initial sale or the relationship.  For the sake of disclosure, I tend to line up with the “sales comes first, relationships evolve” camp, rather than the camp that feels that sellers need to focus on the relationship first, and then business will flow, a definition borrowed from a popular sales glossary.

Relationship do not ensure sales.  I remember having a rep in Ottawa who finally landed a big government department, when asked by her peers how she did it, she told them she established a solid relationship.  She failed to mention the 10% discount she negotiated with me to close the deal.  A year later, she lost the department, the only one of the many we had as clients, as we were reviewing the deal, I couldn’t help but ask what happened to the relationship?

We have all seen or experienced where buyers, not just new buyers, but established customers, ones  sellers thought they had a relationship with, who end up buying from someone else. It usually comes down to either price, the other seller, the one without the relationship, being cheaper. Or even more biting, the other seller was able to convince the buyer that they can move them closer to their objectives than you.  In outselling the relationship, they show that attaining objectives will trump relationship for a buyer every time.

We work in a world where companies and reps need sales to thrive, sales in the current month and quarter.  This is why companies all pay commissions for sales, not for relationships.  This is why it makes more sense to develop a sale, delver to or above expectations and use that as the platform for building a relationship, rather than building relationships with customers from which repeat business will flow.  To be clear, I am not saying no relationship, or relationships have no vale, but that there is a sequence that delivers more for both parties, and that sequence is, start building the relationship and the sales as soon as you engage, but get the sale first, it will take time to build a real and worthwhile relationship.

So there, we have solved that one, and if you are interested, and have a sense of humour, the question of which came first the chicken or the egg, has also been answered.  Again, if you have a sense of humour, you can learn about it here.

What’s in Your Pipeline?
Tibor Shanto

3 Point Summer Sales Tune Up!2

By Tibor Shantotibor.shanto@sellbetter.ca

As part of my monthly column for The Globe and Mail Report on Small Business, this month I outlined three things sellers can do to ensure that not only does summer not need to be slow or a down time, but in fact there are specific things you can do to win business, and set yourself up for the rest of the sales year.

Boost your summer sales with these three tips

This is not an exhaustive list, but it is a start, take a look, comment, let me know what you think.

What’s in Your Pipeline?
Tibor Shanto

What Makes You Different?2

by Tibor Shanto – tibor.shanto@sellbetter.ca

crowds

People always want to present themselves as being unique or different, even as they are lined up overnight for the latest iGadget, all adorned in the latest gadget-ware from Fashion Star.  So I am rarely surprised when sales people tell they or their products are different.

I recall meeting with a VP of sales from a software company, the latest killer app, and while he agreed to take the appointment knowing what I do, it seemed his objective was to validate how their product and sale were different than anything I had seen to date.  If I had $10 for every time he said “Tibor, you have to understand we are different, our product is different, and our sale (process) is different”. While I am not qualified to comment on the nature of the software, I had to ask about the sale of their software.

Me: Am I right in thinking that all your reps are all delivering quota?

VP: No, we have a couple that are, some just below, about half haven’t hit goal for the last couple years.

Me: So let me see if I understand Harvey, your people don’t have to prospect, leads and prospect are abundant, normally potential buyers are lined up around the block; it’s just because you knew I was coming this morning that you cleared the sidewalk for me?

VP: No, no, no, we need to prospect like mad, we are always looking for ways to get enough of the right prospects in the funnel, we get a web leads, but they need to prospect more.

Me: But once they get in front of the right prospect, getting the buyers to buy into your value prop, and getting to proposal is just a formality, right?

VP: No, we have to do a lot of information gathering, understand their needs, and explain what we do just to get them to actually appreciate what we can do for them.  It’s a grind and a struggle for some of the AE’s.

Me: but once they articulate the value prop, and the buyer gets it, it just goes straight to signature and close.

VP: No, there is a lot of haggling, back and forth, we lose too many sales at this point.

Me: So Harvey, I may be slow, but I am not sure I see the difference.

Do you?  The one area where Harvey failed to differentiate is in the way they sell.  Like other mere mortals, they have to prospect, engage, execute a discovery to find common ground and gain commitment?

The difference is rarely in the product, the difference is in the way you sell.  If leading products have an overlap of some 80% or more in features, capabilities and output, the only way left to differentiate is in the way you sell and interact with your buyers.  If you are no different in that perspective, than there will be little difference in results moving forward.

What’s in Your Pipeline?
Tibor Shanto

Straight Commission Can Deliver Twisted Results0

Carrot

The Pipeline Guest Post – Michael Villeneuve

Let’s start by imagining your only sales goal is to get reps to bring in revenue. That no customer ever buys more than once. And that only the sales rep interacts with the customer. Then, commission-only could work. It’s simple to calculate and execute. It’s easy to understand. It motivates.

But it creates a lone-wolf culture that, let’s face it, can be short-sighted.

Compensation style dictates breadth of view and company culture
Compensation affects every employee’s focus and breadth of view. If you’re a career sales person you’ve probably seen deals signed with off-target customers just to meet the quarter. And you’ve seen organizations pay the long-term price of those deals.

Straight commission rewards and drives individual effort, typically at the expense of collaboration. It pays out only for today’s top line results.

One person is the hero; the rest of the people in the office are drones. Even within the sales team, the hunters are rewarded, the farmers and service reps, not so much. Cue workplace tension!

Aligning your compensation with your goals
When Andrew Bulmer was recruited in 2011 as our Senior VP and Managing Director, he defined our goals in broad strokes as:

  • Build internal trust in order to get synergy and work as a team.
  • Build external trust through long-term robust partnerships with customers.
  • Focus equally on retaining on-target customers and acquiring new ones.

But we quickly realized these goals were tough to achieve when our account, sales, and media teams each had their own compensation system and culture.

Creating internal and external alignment through trust
Active International helps companies sell slow-moving or obsolete assets in return for Trade Credits. These credits are then combined with cash to purchase business goods and services, such as media, printing, freight and logistics. The big upside for our customers is that we help them avoid expensive write-offs that negatively impact their bottom line.

Trust is especially critical with our business model. First, our customers have to trust us to deliver on a faith transaction – they give us assets and we promise that they will get something in return. Next, we – and by we I mean our sales people, our account managers and our media people – have to trust each other and collaborate to make it all happen.

Now, everyone’s a salesperson
To move towards that trust, we chose a type of EBITDA compensation that rewards all of our people the same way. The EBITDA-based reward is based on the longer-term sale effects, not the immediate pay-off. So now, everyone’s a salesperson.

And it was astonishing, literally astonishing, to see how immediate the effects were on culture and behavior. Our previous system, which was more commission-based, had stood in the way of how people really wanted to work.

Suddenly everyone was seeing how they could work together to get and retain on-target customers. Now it was to everyone’s advantage to solve each other’s problems. And it was in everyone’s interest to negotiate the right contract for the right customer.

Compensation is one part of the big picture
Of course compensation is not the only factor. At the same time as we changed compensation, we gave our people greater access to decision-making. We allowed them more control over their own schedules. And we launched a peer recognition program.

Sharing connections, generating results
We used to lean more on cold calls. But now we use a referral sales approach. The first step was to get everyone on LinkedIn. Once we did that, we had 10,000 connections, including happy clients, to act as references and help with introductions. Next was to work out who our target customer was – their goals, their challenges, their needs and their key decision makers.

Results? The culture shift has pushed us to the next level of growth. Top-line sales are up more than 30% and we’ve added six major on-target customers in the past 12 months.

Can commission-only work in the corporate world?
I love the process of establishing trust with what were once arms-length prospects. And now that we’ve got a compensation system that motivates us to show the customer just how much we can offer, we’re all incented to go that extra mile

I’ll go out on a limb and say straight commission is no longer a valid model in corporations that rely on (and really, who doesn’t?) customer loyalty. It divides and separates – colleagues from colleagues, and sellers from buyers. I’ve always agreed with Benjamin Franklin’s words: “Gentlemen, we must hang together, or we will surely hang separately.”

Michael VilleneuveAbout Michael Villeneuve

Michael Villeneuve is Group Vice President of Sales at Active International Canada. Connect with him on LinkedIn.

How Many Sales People Can Dance On The Head Of A Pin?0

by Tibor Shanto – tibor.shanto@sellbetter.ca

Sales Pin

Ever wonder why some companies can generate as much revenues with less sales people than others with more?  I think it has to do with the hoarder mentality that permeates sales thinking.  “The more territory, the more accounts I get, the better I will do”.  Yet often the opposite is true, more often than not, less is more in sales accounts and territories.

I remember when I was given responsibility for a new region, eight sales people looking after 13 states.  First thing I asked them to review the status of their top ten accounts, recent activity, and their specific plans for the next 12 months (pre CRM days).  Each of the eight territories, had some 300 – 500 accounts; on average, the top ten accounted for 72% of revenues in the territories, ranging from a low of 64% to a high of 82%.  Coincidentally, around the percentage mark of where they were to quota.  Their coverage plan was routine rather than inspiring, and growth was going to be more from momentum and rhythm, rather than execution of a structured plan.

I then asked them when they last saw or spoke to account number 25, account number 51, and number 100.  As you may expect, #25, sometime in the last six months, one remembered speaking to number 100 at Christmas, mostly because they called in to update their password, a call they transferred to their inside account support person.

When I asked them what can be done to hit their goals, all but one suggested that we add accounts to their territories that were homeless due to a recent departure.  When I suggested that I was actually planning to go the other way, reduce the number of accounts down to about 50 per rep, the hording gene really kicked in.  “That crazy Canadian, I always knew they were socialists, he is looking to nationalize my accounts, reduce my empire”.

Well I wasn’t going to nationalize, but give it to the support team, who were dealing with accounts number 50 and on as it was.  This would make for less clutter for the territory reps, and provide the clarity they needed to work with their clients, prospect for new opportunities, and drive success.  They thought I was nuts, when I suggested they can have as many accounts as they want to prospect and bring on, 20, 50, 100, whatever they liked.  But with nearly 72% of their revenue coming from ten accounts, it would be easier to grow the ten, add a few juicy new accounts to make goal, rather than spending their time counting accounts from a distance.

The hoarding gene is strong in sales; after all, some of these reps become managers, then directors, and eventually VP’s.  You can tell when you meet them, the solution to everything is adding more resources, more territory, more reps, more accounts; behind on the numbers, “give me another rep”.  At the same time you meet others, who after analysing the data, look to optimize territories to maximize client experience and revenues, shrinking territories to create focus, rather than growing them and creating dilution.

One of the only good things to be said for the recession is it showed many organizations that they could in fact deliver more numbers with less headcount.  Reducing creates focus which drives creativity, when you reduce, the competent reps step up and deliver, while others demonstrate why you may be better off with less.  Sellers always tell you that in sales it is “quality over quantity”, why not apply that to territories and reps as well?

So to answer the question as to how many reps can dance on the head of a pin?  A lot less than you think you need to have on that head.

What’s in Your Pipeline?
Tibor Shanto

The 30 Hour Work Week3

by Tibor Shanto – tibor.shanto@sellbetter.ca

Clocks head

No this is not an alternate to Timothy Ferriss’ The 4-Hour Workweek, a good read I would recommend, many applicable ideas for B2B sales pros; but this piece is about helping sales people deal with and conquer one of our biggest challenges.

One of the biggest reasons (excuses) I hear, and hear very often from sales people as to why they don’t have enough (any) prospects in their pipeline, is that they just don’t have the time to prospect. They tell me that by the time “I finish all the things I have to do, I just don’t have the time.”

In the past I have talked about the shortcomings of time management, preferring instead to focus on time allocation to the right activities. But still many people find it difficult to do “all” the things they have to before the clock runs out. This is interesting in that what they often end up doing is nowhere near as important as prospecting, after all, what can be more important than finding and engaging with future revenue streams? Based on work with sales teams, here is a way you can do all the important things you have to do in the course of a week including prospecting.

Let’s say you have a 40 hour work week, if you really are in B2B selling you know this is a hypothetical, but let’s go with it. Sales time is like a gas, it fills the space available, put no matter if it the canister is five litres or ten. I have seen sales people get as little done in 45 hours as in 40, whether their deadline is close or far, they always come right up against it. It is not simply procrastination, it is a question of habit; and sales people are not alone in this, people work to deadline, a rare few don’t.

Add to that the element that they don’t always commit their valuable time to the right activities, and these will differ based on what you sell, but you don’t have to watch sales people lone to see that some of the things we do are busy work and not revenue related work. It may make us feel good, you know like taking a customer service call, gabbing with that caller for 20 minutes, rather than passing them to the right person right away. Of course you then have to follow up to see how things ended, and after a 90 minute investment, you have little to show for it other than feeling good. Given that the average sales year is about 1,760 hours, do just that one thing once a week, and you’ve wasted 75 hours or almost 5% of your face time, or 5% of you quota.

Here is where the 30 hour work week comes in, rather than fighting to set aside a mere few hours to prospect, turn it around, pretend that your week is only 30 hours. Remember you will fill the time you have, so if you have 30 hours, you’ll do all the things you are doing now in 40, and then have 10 hours for prospecting, and maybe the football pool. Do this for a week or four, and it will become habit, and the next thing you know you’ll have more prospects, more money, and more time to run, more time with the kids, and money to boot.

Think of it as a gastric band for sales. Hey, it’s good enough for Christie.

Now available through Renbor – The Pipeline Lap-Band.

Don’t Forget – Contest Closes Today!

What’s in Your Pipeline?
Tibor Shanto

 

3 More Tips For Effective Telephone Prospecting1

by Tibor Shanto – tibor.shanto@sellbetter.ca

Phone guy

On Monday I wrote about the need to counterbalance for some of the realities of telephone prospecting, and some things sellers can do to compensate.  Today I offer up some other basic things you can do, to improve your success in some simple ways.

Some of these things may seem mundane and basic, but that doesn’t lessen their importance in consistent results from telephone prospecting.  As in sports, music or other crafts, focusing on the most basic aspects is as important as mastering the big things, your messaging, value props, etc.  The balance and combination of the two, augmented by your style and personality are what make for your success.

We spoke about intonation on Monday, we the most basic thing you can do is smile when you are on the phone.  Smile even when you feel like reaching through the line and strangling the person at the other end.  The tone and tenor of your voice is different when you smile, but it does carry over the phone and impacts your listener. We all remember the old song “When you’re smiling – the whole world smiles with you”, is true!  Smiling is something you can practice, sounds odd, but in the heat of the moment, when your emotions kick in, you will forget unless you practice it as part of your routine.

Speaking of practice, yes, you should practice – out loud, and more than once.  Sales people often look at me funny when I suggest they lock themselves in a boardroom or meeting room and practice their approach, be that a prospecting call, an actual sales meeting, anything important.  By practicing, you become not only more confident, but master the salient points much better.  In fact in addition to practicing, I recommend you write down the key points you want to cover, when you write things down you retain them better, just like in collage.  By the way, this does not imply that you are memorizing the “presentation”, I don’t like presentations, but you can apply this to questions you want to ask around key points you need to explore to get the client engaged and in a buying mode.  By practicing and mastering what you want to cover you minimize the need to think (or worry) about what you are going to say, when and how you’ll say it, freeing up valuable bandwidth to focus on what the buyer is say, and processing power to deal with that properly.

For prospecting calls, it is important to practice how you will respond to and manage objections potential buyers have.  It is one thing to download our Objection Handling Handbook, it is another to spend some quality time with it in a room alone and practicing the methods and concepts, much like practicing a playbook in sports.  It may unfold differently on the field, but the practice allows you to react from a base of knowledge.  If the meeting is large, important, or to a committee, spend time visualising the meeting, exploring potential paths it may take, questions, comments or objections participants may pose.  You’ll find that you’ll be much more prepared for the expected and the unexpected.  The same works for a prospecting call.

Finally, and it may seem small, stand up when you make calls, get a headset so you can use your hands to express yourself the way you would in a direct conversation.  With Bluetooth headsets, you now have the freedom to walk around, feel and be relaxed, and that too carries over the phone and adds to your intonation.  Add a mirror to the equation and you can really affect the way you speak, and how they hear you at the other end.  Some say this sounds bizarre, but to bring it full circle, I remember taking a telephone skills program from Bell back in the 80’s, and when we finished the course, we were given an 8 x 6 mirror, and in Bell blue at the bottom it said “Smile”.  Worked then, and still works now, as long as you commit and execute.

 

Don’t Forget To Enter The Big Contest!!
See Biz Stone, Seth Godin and others

 

What’s in Your Pipeline?
Tibor Shanto

A Passion For Life0

A PASSION FOR LIFE 2

For many, summer is a time to take it back a notch, relax, and enjoy a slower pace.  For others it is a time to bear down and focus on things they want accomplish, they spend time preparing their next adventure and conquests.

If you’re not ready to left the summer drift by, and see it as an opportunity to reignite your passion and take things to the next level, we have good news for you.

On July 24, Legacy Mastery, is presenting a fantastic event in Toronto: A PASSION FOR LIFE, is a full day event pack with today’s EXCEPTIONAL LEADERS who will transform your BUSINESS, PROFESSIONAL & PERSONAL PERFORMANCE.

I know it sounds like a big statement, but the day lives up to it, here is the roster:

  • Tony Robbins – Peak Peformance – Entrepreneur, Author & Peak Performance Strategist World Authority on Leadership Psychology
  • Robert Greene – Keys to Mastery – Best Selling Author , The 48 Laws of Power, The Art of Seduction, and Mastery
  • Chip Heath – Creativity & Branding – Best Selling Author of Switch, Made to Stick and Decisive Loretta LaRoche – Work Life Balance – Acclaimed Stress Expert, Author, Humorist and Motivational Speaker
  • Joe Plumeri – Success Strategies – Chairman and CEO of Willis Group Holdings (2000-2012) CEO, Citibank North America (1999–2000); Chairman and CEO, Travelers Primerica Financial Services (1995-1999); President and Managing Partner, Shearson Lehman Brothers (1990-1993)
  • Desiree Rogers – Customer Relations – CEO, Johnson Publishing Company, LLC; White House Special Assistant to President Obama; 2009-2010, White House Social Secretary, 2009-2010

A great bill no matter what you have your eye set on, you’re bound to get the inspiration and practical steps you need to succeed.

And As you would expect, as a reader of The Pipeline, you can register now, use the code RENBOR, and receive $100.00 courtesy of Renbor Sales Solutions and the good folks at Legacy Mastery.

These events tend to fill up fast, act now to get your seat, and your $100  discount by using the code RENBOR.

Enjoy and profit!

Tibor Shanto

Sales Leaders – Manage Your 50% Minority5

by Tibor Shanto – tibor.shanto@sellbetter.ca

Crowd

In the past I have written about the propensity of sales leaders to accept and live with the Pareto Principle, the 80/20 rule.  For example, 20% of your reps deliver 80% of your revenues, I know one team with 9 reps, where 2 sellers are responsible for 71% of the revenue.  At one time, in the Shanto Principle I asked the question what if organizations could move the dial to 70/30, what would the impact be?

Companies continue to struggle with this reality, in many instances the 80/20 looks more like this:

  1. 20% – Top of the pack, consistently successful, adaptive and responsive to market movements, often spearheading the change in sales that are required to keep and win more business.
  2. 55% – Steady players, not always winning, or delivering 100% of plan, but put in a steady (just enough) effort to be in the 70% – 90% of plan zone.  Room to improve, but bad enough to fire (although you have to wonder).
  3. 25% – Perennial underachievers.  Steadily underperforming, while you don’t invest time in them, they are still part of the team.  While you know you should fire them, you give in to the voice that says they are better than nothing, while I look for a replacement.

You may think that the above is a variation on the traditional A, B, and C player model, many do, which is a mistake.

I strongly suggest that you look at it more like:

A Players – The top 20%, Group 1

B Players – The top half of the 55%, Group 2

C Players – The bottom half of the 55%, Group 2 X Players – The bottom 25%, Group 3

I have always argued that leaders should focus their time and attention to the A players, show the most love to those you want to lose least.  Show no time or attention to the C Players; the lack of attention clearly communicates that they either need to adopt and contribute, make their way up to B status, in order to get attention, or move on to organizations.  The B’s need to be put on a path to achieve A status.  NOTE: this is once the sales rep has been on-boarded, trained on your systems, and integrated into the process.  This could be as little as three months, or as long as a year, but there does come a point where they need to deliver on their own.    I still stand by this, but have ratcheted things up a bit, by encouraging you to not waste time, resources or emotion or keep that bottom 25%, the X Players.  Rather than pretending that they are C players, suggesting some hope, when in fact they are a toxic waste in your sales organization, meaning you have to dump them ASAP.

Accepting the Status Quo, (yes, we do it too), is riskier than many sales leaders want to pretend, and here is why.  Any way you slice it, the majority of the sales team is missing quota.  It is true that more sales teams collectively are making quota, even while most individual contributors are not.  What is the take away for those on the team who continuously are missing targets?   Sales teams are like any other collective of people, there is a perception of majority rule, and if the majority is not making quota, then that soon becomes the norm.  Not something sales leaders should encourage or tolerate, but by not acting quickly and strongly to end that, it soon becomes the norm, and worse.

If more than 50% of the team is not making quota, rationalizing becomes easy; “it’s not me, it’s the product”, “it’s the price”, “it’s the whatever”.  “After all, look at all the people who are also in the same boat, it can’t be me”.  Those few that are making quota, well they become the anomaly, the pack will stick together to comfort their own, and ostracise the others.

One of the top priorities of a sales leader, and their managers, has to be to ensure that at the minimum, more than half of the team exceeds their quota.  This needs to be done across the whole organization, and by each front line manager locally with their teams; having a patch quilt of teams that do and don’t is not acceptable.  While ultimately we want everyone to make their goal, this is a start; 50% plus of each team, and 50% plus of the whole organization.

How do you do that, a simple upward rotation is a good start.  Not only do you heavily reward success, you simultaneously punish failure.  Start with the of 10% rule, every year fire the bottom 10% of each team, not just the entire sales organization, but on each team managed by a front line manager; and if they have two teams, fire the bottom 10% from each team.  Many are often reluctant to do this, telling me they can’t afford to have a vacant territory, if you ask me, the opposite is true, you can’t afford having territories run by these X Players.  You can’t afford having your clients be attended to by these X Players.  By the way, you don’t have to wait for the end of the year.  If they are not executing the activities required to win, it will not take a year to realize things.  One company I know fires those who are in the bottom 10% three months running.  They are transactional, and can tell early, you may need to wait the year, or not.  You just need to ensure that the period you choose allows for slumps and temporary factors that you can address and correct.

As this pruning takes place, especially as it becomes the declared policy, you’ll find that those in the middle of the pack begin to self-correct and do things that drive them ahead, realizing that as the bottom is lopped off, they either move higher or face being the next to go.  This upward rotation pays dividends across the team, the C’s and B’s begin to move up, and the A’s realize they have company, and their personality trait kicks in, and they improve their game to maintain the gap with the B’s.  Lifting your results to higher and higher levels.  You may even find after a few years of this approach that you do more with less players; alternatively, expand products and markets with a more qualified and talented team.

Once you get to where more than 50% of the organization is making goal, the dynamic switches.  Rather than people rationalizing why they are not making quota, after all those who are not are now in the minority, people look for ways to make and exceed quota, and begin to share their best practices.  Majority rule!   If you do find yourself in an enviable position where all you reps are making or exceeding goals, may still be a viable way of ensuring continuous improvement and growth.

This may seem a harsh route, but as leaders, that’s why we get the big bucks, for big decisions and big differences.  Any way you look at it, it will never be as harsh as having to explain the alternative to the executive committee.

What’s in Your Pipeline?
Tibor Shanto

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