High Impact Sales Management …using modern approaches to dramatically increase your teams sales...

High Impact Sales Management

…using modern approaches to dramatically increase

your team’s sales performance

Profiles International

• Founded 1990• 700 offices in 90 countries• 45 Regional Offices• 45,000+ clients worldwide including:

The ‘80/20 Rule’

- Fact or Fiction?

These take upthe slack for the

Bottom Performers– but are highly mobile

These pull sales out of the

organization and put pressure on everyone

Bottom Performersproduce 32% less than the

‘Average’ producers

Top Performersproduce 32% more than the

‘Average’ producers

Source: “The validity and utility of selection methods in personnel psychology: Practical and theoretical implications of 85 years of research findings” Psychological Bulletin, Sept 1998, Vol. 124, No. 2, pp 262-274.

‘Normal Distribution’

• 45 salespeople averaged 109% of target

• Top 10 averaged 125% of target (111% to 139%)

• Bottom 7 averaged 92% (82% to 99%)

More on this case study later…

Real Life: Data Service Organization

The Real World: Analysing Your Sales team

About Your Team

Let’s say you’ve a team of ten salespeople…

…each carrying a quota of $600K

Meet Your Team

• Tom $1,000,000• Mike $1,000,000• Tony $700,000• Dave $700,000• Sue $600,000• Amy $500,000• sherry $500,000• John $400,000• Charles $300,000• Brian $300,000

• Two you call probably ‘Stars’, right?

• Five you’d likely rate as ‘So-So’

• Three who’d generally qualify as ‘Passengers’

But what if you analyse their performance a little more closely?

Utility Analysis – A definition

“Utility analysis is a quantitative method that estimates the monetary value of benefits generated by any intervention based on the

improvement it produces in worker productivity.

Utility analysis provides managers information they can use to evaluate the financial impact of any intervention, including computing a return

on their investment in implementing it”

- Bernstein, Allen L. “A handbook of statistical solutions for the behavioral sciences”. New York: Holt, Rinehart and Winston.

Utility Analysis – Assumptions

1. Employees generate results that have monetary value to the organizations that employ them

2. Employees differ in the degree to which they produce results even when they hold the same position and operate within like circumstances

The implication is that the level of results produced by employees in their jobs have different monetary consequences for the organizations that employ them

Process Overview

• Rank your salespeople – top to bottom• Create performance tiers• Identify salespeople on each tier• Identify average sales per tier• Use this information to manage the

business

Your Team - Ranked

• Tom $1,000,000• Mike $1,000,000• Tony $700,000• Dave $700,000• Sue $600,000• Amy $500,000• Sherry $500,000• John $400,000• Charles $300,000• Brian $300,000

Create Performance Tiers

Add all sales results and divide by three

- to create performance break-points that will allow us to allocate our salespeople across three performance levels or ‘tiers’

• Tom $1,000,000• Mike $1,000,000• Tony $700,000• Dave $700,000• Sue $600,000• Amy $500,000• sherry $500,000• John $400,000• Charles $300,000• Brian $300,000

$6,000,000

Total Sales

Total Sales divided by three

$6,000,0003

= $2,000,000 per ‘tier’

Assign Salespeople to Tiers

Top Tier:Tom $1,000,000Mike $1,000,000

$2,000,000

Middle Tier:• Tony $700,000• Dave $700,000• Sue $600,000

$2,000,000

Bottom Tier:Amy $500,000

Sherry $500,000

John $400,000

Charles $300,000

Brian $300,000

$2,000,000

“Stars”Tom $1,000,000Mike $1,000,000

$2,000,000

Middle Tier:• Tony $700,000• Dave $700,000• Sue $600,000

$2,000,000

Sherry $500,000

John $400,000

Charles $300,000

Brian $300,000

$2,000,000

“Stars”Tom $1,000,000Mike $1,000,000

$2,000,000

“So So”• Tony $700,000• Dave $700,000• Sue $600,000

$2,000,000

Sherry $500,000

John $400,000

Charles $300,000

Brian $300,000

$2,000,000

“Stars”Tom $1,000,000Mike $1,000,000

$2,000,000

“Passengers”Amy $500,000

Sherry $500,000

John $400,000

Charles $300,000

Brian $300,000

$2,000,000

1. Hire Star salespeople first time?

2. Raise Passengers to So-So level?

3. Raise So-So Performers to Star Performer level?

4. Make sure I lose no So-So or Star Performers?

“So how do I…”

How might this be done?

32% less than average

Average sales

32% morethan average

These all looked the same when hired…

What do you miss?

Salesperson in interview

Here’s what you get!

Real Salesperson

…but traditional approaches do not work consistently well!

If traditional approaches worked you wouldn’t have an issue…

“It’s not experience – or college degrees or other accepted factors…

…(it) hinges on fit with the job.”

Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching for Better Sales Performance, ” Harvard Business Review, Vol. 58, No. 5.

360,000 salespeople followed through sales careers over 20 years

25 Not Job Matched

Job Matched

Percentage of Top Performers in sales force

– Job Match vs. Non Job Match

“Six months after hire persons who had been job matched outperformed those who had not been matched.

“Moreover, the differences widened after 14 months”

Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching for Better Sales Performance, ” Harvard Business Review, Vol. 58, No. 5.

Profiles Sales Assessment

Can she cope with the mental demands of your

sales environment?

10987654321

Thinking Style

Occupational Interests

Behavioral Traits

Learning Index

Verbal Skill

Verbal Reasoning

Numerical Ability

Numeric Reasoning

Enterprising

Financial/Admin

People Service

Technical

Mechanical

Creative

Energy Level

Assertiveness

Sociability

Manageability

Attitude

Decisiveness

Accommodating

Independence

Objective Judgment

Prefers time to think thingsthroughDeliberate approach to learning new skillsPrefer a more routine salesenvironmentLearns through experienceand repetition

Quickly understand client needs Fast problem solverAdapts quickly in fast movingnegotiations Effective communicator ofcomplex ideasFast learner

Learning, reasoning and problem solving approach

Learning Index

2211 4433 6655 8877 101099

sales environment?

Will she be comfortable in your sales environment?

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Thinking Style

Behavioral Traits

Learning Index

Verbal Skill

Verbal Reasoning

Numerical Ability

Numeric Reasoning

Enterprising

Financial/Admin

People Service

Technical

Mechanical

Creative

Energy Level

Assertiveness

Sociability

Manageability

Attitude

Decisiveness

Accommodating

Independence

Objective Judgment

Pessimistic‘Glass Half Empty’Challenges remaining Positive in face of rejectionSuspicious & critical of others

Endlessly Optimistic“Don’t worry, be happy”Deal with rejection easilyRelaxed social styleQuick to trust

Measures extent of positive outlook - of tendency to trust / expect the best of others

Attitude

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Finds networking challengingSmall talk doesn’t come naturallyHappy in own companyKeeps to oneselfNaturally reserved

Enjoy networkingConversationalPeople Oriented Need social contactComfortable in groupsEveryone’s ‘new best friend’

Social Style & Approach

Sociability

2211 4433 6655 8877 101099

sales environment?

Will she be comfortable in your sales environment?

Will she be motivated to sell your products &

services?

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Thinking Style

Behavioral Traits

Learning Index

Verbal Skill

Verbal Reasoning

Numerical Ability

Numeric Reasoning

Enterprising

Financial/Admin

People Service

Technical

Mechanical

Creative

Energy Level

Assertiveness

Sociability

Manageability

Attitude

Decisiveness

Accommodating

Independence

Objective Judgment

Little interest inentrepreneurial activitiesMay not enjoy negotiatingRecognition & status not soimportant

Enjoys entrepreneurial climateWants to leadLikes to persuade Interested in recognition & statusMotivated by entrepreneurialactivities

Interest in activities that involves persuading others, presentingideas & plans, and negotiating/deal-making

Enterprising

2211 4433 6655 8877 101099

• Can deal with the mental demands of their sales cycle position

• Are comfortable with the demands of the sales environment they work in

• Enjoy selling and are motivated to do it

‘Superior’ sales producers fit their jobs and:

“...(it) hinges on fit with the job…”

10987654321

Thinking Style

Behavioral Traits

Learning Index

Verbal Skill

Verbal Reasoning

Numerical Ability

Numeric Reasoning

Enterprising

Financial/Admin

People Service

Technical

Mechanical

Creative

Energy Level

Assertiveness

Sociability

Manageability

Attitude

Decisiveness

Accommodating

Independence

Objective Judgment

The JobMatch™

Pattern

Shaded areas indicate the JobMatch pattern

The JobMatch patterns show requirements for the sales positions in

your company

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Thinking Style

Behavioral Traits

Learning Index

Verbal Skill

Verbal Reasoning

Numerical Ability

Numeric Reasoning

Enterprising

Financial/Admin

People Service

Technical

Mechanical

Creative

Energy Level

Assertiveness

Sociability

Manageability

Attitude

Decisiveness

Accommodating

Independence

Objective Judgment

GoodMatch

Grey areas indicate the JobMatch pattern

Red boxes show the candidate’s scores

10987654321

Thinking Style

Behavioral Traits

Learning Index

Verbal Skill

Verbal Reasoning

Numerical Ability

Numeric Reasoning

Enterprising

Financial/Admin

People Service

Technical

Mechanical

Creative

Energy Level

Assertiveness

Sociability

Manageability

Attitude

Decisiveness

Accommodating

Independence

Objective Judgment

QuestionableMatch

Grey areas indicate the JobMatch pattern

Red boxes show the candidate’s scores

Critical Sales Behaviours

“In these days of Talent Wars, the best way to keep your stars is to know them better than they know themselves - and

then use that information to customize the career of their dreams”

-Source: Timothy Butler & James Waldroop: “Job Sculpting” Harvard Business Review - September-October 1999

Job Matched

Shield Your Targets!

Non-Job Matched

24%28%

Low Turnover Industry

High Turnover Industry % left / fired after 6 months 46% % left / fired after 14 months 57%

% left / fired after 6 months 25% % left / fired after 14 months 34%

3. Raise So-So Performers to Star level?

4. Hire Stars first time?

So what difference would it make to my $ results if I could:

“Stars”Tom $1,000,000Mike $1,000,000

$2,000,000

“Passengers”Amy $500,000

Sherry $500,000

John $400,000

Charles $300,000

Brian $300,000

$2,000,000

Calculate Averages per Performance Tier

Tier Averages

• Stars– Tom & Mike = $2,000,000 / 2 = $1,000,000

• So-So– Tony, Dave & Sue = $2,000,000 / 3 = $667K

• Passenger– Amy, Sherry, John, Charles & Brian = $2,000,000 / 5 = $400K

Use this information to manage the business

Difference between a So-So

and a Passenger?

So-So Average: $667KPassenger Average: $400K

Difference $267K

…every time you hire a Passenger instead of a So-So it costs $267K

…if you’d been hoping for a Star you missed by $600K (they average $1M)

…but let’s keep it conservative and focus on moving Passenger to So-So performers

So what’s your loss fromhaving Passengers vs. So So?

Remember, you had five:

Sherry

Charles

So Passengers represent a loss of $1.3M ($266k x 5) in sales…

…but what’s the premium for getting it right?

The ‘Getting it Right’ Premium• What’s the premium if:

– Raise one Passenger to So-So level?• $267K – total sales go from $6M to $6.27M (+4.4%)

– Raise two Passengers to So-So level?• $534K – total sales go from $6M to $6.53M (+8.8%)

– Raise all Passengers to So-So level?• $1.33M – total sales go from $6M to $7.33M (+22%)

…and these are sustainable ANNUAL increases – not one-off premiums

The ‘Getting it Right’ Premium

If we weren’t keeping it conservative you might ask:

“what’s the premium if all are Stars”?

Total sales increase by $4M from $6M to $10M (+67%)

Annually!

The Dark Side

This knife cuts both ways:

– Lose just one Star performer and replace with……a So-So – costs you $333K (per annum!)

…a Passenger – costs you $600K (per annum!)

– Lose just one So-So performer and replace with……a Passenger– costs you $267K (per annum!)

However you slice it – you cannot afford attrition

• The Challenge– 45 salespeople averaged 109% of target– Top 10 averaged 125% of target (111% to 139%)

– Bottom 7 averaged 92% of target (82% to 99%)

• What they did– Profile Identified the Key Characteristics of the Top (& bottom)

Performers• Provided a framework to identify top performers at the point of hiring• Provided a framework to raise everyone’s performance to Top

Performer level

• Results– Took product line from $1M p.a. to $1M per month in six months– 1st year total sales: $10.5M (projected $7.0M)– 2nd year total sales: $24M– 3rd year total sales: $34M

Real Life: Novartis Ciba Vision

• Benchmark pattern created of the top three performers

• All 14 reviewed against pattern

• Big difference between matched / non-matched people:– Matched: Average sales:

$1.31M– Non-Matched – Average sales: $840K– Average difference between selected and non-selected: $470K

…Which would you prefer to hire?

• Just 14 Account Executives

• Dramatic performance gaps– Average sales of 3 Top Performers: $1.25M– Average sales of 3 Bottom Performers: $850K

Real Life: Data Service Organization

Key Learning Points• Every sales team has uneven performance – Stars, So-So

and Passengers

• You pay dearly for So-So and Passenger level performance

• Your Stars share something in common – and that can be profiled

• That profile can be used to raise Passengers performance to So-So level, So-So to Star level

• This is a more enlightened way to manage for future sales success

• This is fast, easy and cost-effective to implement

• Initial Setup– Set up private online ‘Virtual Assessment Centre’– Profile all of your existing sales team– Feedback to all salespeople – Produce a Profile pattern for YOUR Stars– Run the whole team against that Profile– Create Sales Management reports for managers of each

team member – input on how to manage them up a tier– Run a workshop for managers on managing salespeople

up the tiers– Provide the facility to produce Sales Hiring Reports to hire

the best person next time

• Base cost of $X plus $X per salesperson

Typical Costs?

• The initial consultation will provide you with the potential gains in your team and is provided at no charge

• Our 10 person example would have cost $X

• Remember for that team moving:– One Passenger to So-So level: +$267K (+ 4.4%)– One So-So to Star level: +$333K (+ 5.5%)– One Passenger to Star level: + $600K (+ 10%)– All Passengers to Star level: +$1.3M (+22%)– All Passengers to Star level: +$4M (+67%)

….All sustainable direct-to-bottom-line increases

Potential Minimum Return?

• Set a consultation appointment with us before leaving

• Initial consultation is not chargeable – in that meeting we’ll :– Go through the process with you of analysing your sales– Create your Performance Tiers– Work out your ‘premiums for getting it right’– Quote you for implementation of Profile XT for your sales team

What Next?

Comprehensive Analysis of YOUR Team – your potential for sales increase

• Set a consultation appointment with us before leaving

• Initial consultation is not chargeable – in that meeting we’ll :– Go through the process with you of analysing your sales– Create your Performance Tiers– Work out your ‘premiums for getting it right’– Quote you for implementation of Profile XT for your sales team

• We’ll provide you with all the information you need to decide if this has a value for your organisation

What Next?

High Impact Sales Management

…using modern approaches to dramatically increase

your team’s sales performance

High Impact Sales Management …using modern approaches to dramatically increase your teams sales...

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Transcript of High Impact Sales Management …using modern approaches to dramatically increase your teams sales...

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