Accelerating sales performance

ACCELERATING SALES PERFORMANCE

Mason HollowayySenior Director

1© Beacon 2014

ObjectivesObjectivesObjectivesObjectives

• Learn a structured process for developing a sales performance acceleration plan.

• Evaluate your organization’s sales development approach to• Evaluate your organization s sales development approach to determine where there are performance gaps.

• Apply the tools and techniques from the session to your organization’s existing sales development program to create measurable business results.

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Why are you here?Why are you here?

• Why I get called:Why I get called:– Pressure to increase revenueTrying to do more with less– Trying to do more with less

– Decision has been made to bring in or develop sales trainingsales training

– Desire to assess the skills and competencies of the individualsindividuals

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Broken PromisesBroken Promises

1 The Training Promise1. The Training PromiseIf you train your sales people or sales managers on the ‘techniques’ (behaviors) of selling, your long term sales performance will increase in a measurable and consistent way.measurable and consistent way.

2. The Sales Methodology PromiseInstalling a new ‘sales system’ will give you long term sales performance improvement.

3. The Technology PromiseInstalling CRM (as an example) will enable deep tracking of customer trends, sales trends and opportunities which will subsequently produce dramatic performance improvements.

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The Sad Reality…The Sad Reality…

• Training:Training:

“ th i bj ti f t l t i i t ff ti l“…the primary objective of most sales trainers is to effectively

provide knowledge and skills to trainees. However, this point of view

i d i i ff i i l i bmay impede training effectiveness as trainee learning appears to be

a necessary, but not sufficient prerequisite for behavior change.”

(“Investigating interrelationships among sales training evaluation methods,” Lui, Anne H., September 2003)Journal of Personal Selling and Sales Management

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• Methodology:Methodology:

“...the sales methods presented during the initial sales training

program sponsored by the subject company may not have been

appropriate for the field selling scenarios actually faced by its

salespeople.”

(“Investigating the perceptual aspect of sales training,” Farris, M. Theodore, II, March 2002)Journal of Personal Selling and Sales Management

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• Technology:Technology:

– Failure rate: 12% of CRM projects fail to go live– System implementation: 47% of CRM projects go live and theSystem implementation: 47% of CRM projects go live, and the

technology aspects of the project are considered a success, but business change and adoption fail

– Process and system adoption: 25% of CRM projects succeed in y p p jadoption and systems, but still cannot quantify a specific business benefit

– Performance improvement: only16% of projects reach the Promised L d d bl i fl b i fLand and measurably influence business performance

(“How You Define CRM Success Depends on Who You Are,” AMR Research, January 2004)

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Guardrail to GuardrailGuardrail to Guardrail

Adoption Training

• Sales are flat or down

• The need to improve is identified

• Approach drives new initiatives to the market

Adoption Uptick

• Competition Responds

• Market slows• Processes not

li d

• New enthusiasm

• Improved

Training “Afterglow”

• Organizational barriers

• Lack of strategic alignmentL kidentified

New Sales Process

• Results improve aligned or supported

New Sales Training

pknowledge briefly drives results

• Lack or functional supportsNew Comp

Plan

The question really is, “how do we move BEYOND this cycle?”

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q y y

Necessary but not SufficientNecessary but not Sufficient

• Knowing is not enough if we can’t executeKnowing is not enough if we can t execute• Having good sales methodologies will only help us be more effective within ourhelp us be more effective within our limitations

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The Tank and the FishThe Tank and the Fish

10

High Level View of the ProcessHigh Level View of the Process

The sales ecosystem:• Define and optimize the environmentp

– Critical factors around Force, Strategy, and Alignment– Identify existing gaps in the environment– Introduce solutions to address any deficiencies and close gaps

• Identify and replicate the model performer– Capture critical factors at the highest performance levels– Compile composite DNA model of key performance– Select solutions to transfer across team– Select solutions to transfer across team

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The Sales EcosystemThe Sales Ecosystem

• The Environment – (The Tank)The Environment (The Tank)– The waters our sales people are swimming in– The currents that push them around

• The Individual – (The Fish)– The kind of swimmers – The right knowledge about the waters– The right equipment to survive and thrive

Th i ht t bl– The right process to enable success

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What’s in the tank?What s in the tank?

The sales environment– 3 partsThe sales environment 3 parts1. Forces

• The larger internal and external factors that create pressure in our world g pas salespeople – the currents that carry us forward or push us back

2. Strategic execution model (SEM)I t t t t ith th t ’ t t d d th t• Integrates our strategy with the customer’s strategy and cascades that integration into our individual account plans

3. Alignment• Ensures that internal functions are facing into the current in the same

way – are all the fins paddling in the same direction?

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The Sales Environment ‐ ForcesThe Sales Environment Forces

CustomerChannel PartnersInternal

MarketCompetitionCompetitionInternal

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Sales Environment ‐ ForcesSales Environment Forces

What we need to understand:What we need to understand:• What are the Forces in our sales environment?

– Customer, Market, Regulation, CompetitionCustomer, Market, Regulation, Competition

• For each Force:– What are the key issues and drivers that impact our business– What (if anything) is changing in regard to that Force– How does it affect our ability to reach our desired state (help or

hinder)hinder)

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Sales Environment ‐ ForcesSales Environment Forces

Sales environment – Force Identification WorksheetSales environment Force Identification Worksheet

Force area Key issues & drivers Important changes Help or hinder?Force area Key issues & drivers Important changes Help or hinder?(Describe)

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The Sales Environment ‐ SEMThe Sales Environment SEM

• What direction do we need to swim – andWhat direction do we need to swim and how?– Given the customers direction– Given the customers direction– Given where we want to end upGiven the Forces (currents) we have identified– Given the Forces (currents) we have identified

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The sales environment ‐ SEMThe sales environment SEM

Client Strategy

Our strategy

Our desired state

gy

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Sales environment ‐ SEMSales environment SEM

Sales environment – Sales Execution Model WorksheetSales environment Sales Execution Model Worksheet

Client Strategy Sales strategy that links Individual account planClient Strategy Sales strategy that links Individual account plan component(s)

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The Sales Environment ‐lAlignment

• How many fins and which way are theyHow many fins and which way are they paddling?

Product Group

Operations

Marketing

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Sales Environment ‐ SEMSales Environment SEM

Sales environment – Alignment WorksheetSales environment Alignment Worksheet

Functional Area Required support Present stateFunctional Area Required support element(s)

Present state(A – adequate/I –need improvement/M – missing)

A/I/M

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Quick Look – Assess Present State

A i ti ’ l fAssess your organization’s sales performanceenvironment :

• How many of you have identified most of all of the• How many of you have identified most of all of the critical aspects of your sales environment as we have defined them?

• What next steps do you need to take to close any environment gaps?

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The Individual – (The Fish)The Individual (The Fish)

What makes a successful individual in this role?What makes a successful individual in this role?– What innate qualities and characteristics?– What knowledge?– What tools and supporting technology?– What processes?

What motivation?– What motivation?– What information?– What management support?

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The IndividualThe Individual

A three part approach to individual salesA three part approach to individual sales performance:

1. Roles• We all wear ‘different hats’. Sales people play different roles internally

than externally and at different points in the sales life cycle.

2 Outcomes2. Outcomes• In each role, there are a critical few things that are essential to success.

These are the outcomes.

3 Activity3. Activity• All the work activity and behavior we focus on should be directed

toward accomplishing the vital outcomes we have identified for the rolesroles.

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Where to Look for AnswersWhere to Look for Answers

67% in the MiddleStandard Performers

# Performers

R li t

Top 1-3%Key Performers

Capture hereReplicate across the entire curveMinimum level for

employment

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Level of Performance

The Performance ChainThe Performance Chain

Influences•Skill & knowledge•Tools & Technology

Activity• What we do• Sales process

Outcomesin Role• What we

Strategic Goals &Objectives•What the organization•Management

support•Information requirements

p• Tasks• Work Processes

accomplish• The end state of our activity

organization values

•What we measure as a companyp y

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The Individual ‐ RolesThe Individual Roles

Begin by identifying the critical roles that yourBegin by identifying the critical roles that your account executives play.• Some examples:• Some examples:

– Strategic orchestrator– Business managerg– Negotiator– Trusted advisor– Other

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The Individual –lOutcomes in Role

• For each role you have identified, complete an outcome worksheet

Outcome Influence Factor Detail

Skill

Knowledge

Tools & Technology

Management Support

Information Requirements

Skill

Knowledge

Tools & Technology

Management Support

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Information Requirements

The individual – Link to ActivityThe individual Link to Activity

• Finally – given the environment , roles, outcomes:Finally given the environment , roles, outcomes:– Identify the critical processes and work activity that support or

enable each outcome.

Outcome Work Process Task details

Process Improvementrequired?(Y/N) ‐ Describe

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Quick Look – Assess Present State

A i ti ’ d l f i di id l lAssess your organization’s model of individual sales performance :

• How many of you have identified most of all of the critical• How many of you have identified most of all of the critical roles of your sales executives?

• How many have detailed critical outcomes for the roles?• How many have explicitly linked activity to the accomplishment of outcomes in roles?Wh d d k l ?• What next steps do you need to take to close any gaps?

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Recap of the ProcessRecap of the Process

Th l tThe sales ecosystem• Define and optimize the environment

– Critical factors around Force, Strategy, and Alignment– Identify existing gaps in the environment

Introduce solutions to address any deficiencies and close gaps– Introduce solutions to address any deficiencies and close gaps

• Identify and replicate the model performerCapture critical factors at the highest performance levels– Capture critical factors at the highest performance levels

– Compile composite DNA model of key performance– Select solutions to transfer across team

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Accelerating sales performance

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