Hiring Salespeople and the Economics of Failure
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Transcript of Hiring Salespeople and the Economics of Failure
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Hiring Salespeople and the Economics of Failure
An AMG Executive Briefing
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The Economicsof Failure
Sizing up the overall problem
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The Economicsof Failure
Sizing up the overall problem
Identifying existing and potential problems
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The Economicsof Failure
Sizing up the overall problem
Identifying existing and potential problems
Reversing bad hiring processes and implementing good ones
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The Economicsof Failure
One-to-many: A “purposeful primer”
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The Economicsof Failure
One-to-many: A “purposeful primer”
Many-to-many: Stay posted online, join in the conversation
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The Economicsof Failure
One-to-many: A “purposeful primer”
Many-to-many: Stay posted online
One-to-one: Follow-up, follow-through and making sense of it all…
Many-to-many: Stay posted online, join in the conversation
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Bad Recruiting Practices: Sizing up the problem
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Systematically winging it
Bad Recruiting Practices: Sizing up the problem
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Failing to benchmark
Bad Recruiting Practices: Sizing up the problem
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Not hiring to profile
Bad Recruiting Practices: Sizing up the problem
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Wrong time, wrong place
Bad Recruiting Practices: Sizing up the problem
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Recruiting bad apples
Bad Recruiting Practices: Sizing up the problem
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Getting to grips with costs
Bad Recruiting Practices: Sizing up the problem
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The cost of acquisition
Bad Recruiting Practices: Sizing up the problem
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The cost of turnover
Bad Recruiting Practices: Sizing up the problem
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Cost of mediocre performance
Bad Recruiting Practices: Sizing up the problem
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Hidden costs
Bad Recruiting Practices: Sizing up the problem
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What’s acceptable to you?
Bad Recruiting Practices: Sizing up the problem
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Method one:Number crunching
Bad Recruiting Practices: Sizing up the problem
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Method two: Utility analysis
Bad Recruiting Practices: Sizing up the problem
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METHOD ONE: Number Crunching
Did you find and download the spreadsheet:
Calculating The Cost of Bad Hires?
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RECRUITMENT and DEVELOPMENT
COSTS
The numberof salespeople
hired in the last12-months?
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RECRUITMENT and DEVELOPMENT
COSTS
The numberof salespeople
hired in the last12-months?
18
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RECRUITMENT and DEVELOPMENT
COSTS
The number of salespeople fired
or who quit in the last 12-months?
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RECRUITMENT and DEVELOPMENT
COSTS
The number of salespeople fired
or who quit in the last 12-months?
06
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RECRUITMENT and DEVELOPMENT
COSTS
The numberof candidates
interviewed for each position?
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RECRUITMENT and DEVELOPMENT
COSTS
The numberof candidates
interviewed for each position?
03
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RECRUITMENT and DEVELOPMENT
COSTS
Approximate number of hours
interviewing each candidate?
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RECRUITMENT and DEVELOPMENT
COSTS
02
Approximate number of hours
interviewing each candidate?
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RECRUITMENT and DEVELOPMENT
COSTS
The numberof times each
candidate was interviewed?
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RECRUITMENT and DEVELOPMENT
COSTS
03
The numberof times each
candidate was interviewed?
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RECRUITMENT and DEVELOPMENT
COSTS
How many hours invested coaching
each person?
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RECRUITMENT and DEVELOPMENT
COSTS
40
How many hours invested coaching
each person?
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RECRUITMENT and DEVELOPMENT
COSTS
Any fee paid for each position?
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RECRUITMENT and DEVELOPMENT
COSTS
$12,500.00
Any fee paid for each position?
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RECRUITMENT and DEVELOPMENT
COSTS
Cost of advertisingeach position?
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RECRUITMENT and DEVELOPMENT
COSTS
$0.00
Cost of advertisingeach position?
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RECRUITMENT and DEVELOPMENT
COSTS
The value of an hour of your time?
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RECRUITMENT and DEVELOPMENT
COSTS
$85.00
The value of an hour of your time?
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RECRUITMENT and DEVELOPMENT
COSTS
Fees paid for training each salesperson?
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RECRUITMENT and DEVELOPMENT
COSTS
$2,700.00
Fees paid for training each salesperson?
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RECRUITMENT and DEVELOPMENT
COSTS
Average yearly base salary paid to each salesperson?
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RECRUITMENT and DEVELOPMENT
COSTS
$85,700.00
Average yearly base salary paid to each salesperson?
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RECRUITMENT and DEVELOPMENT
COSTS
Average number of months worked before being fired
or quit?
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RECRUITMENT and DEVELOPMENT
COSTS
09
Average number of months worked before being fired
or quit?
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PERFORMANCEof KEEPERS
Average annual revenue per sale or customer?
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PERFORMANCEof KEEPERS
Average annual revenue per sale or customer?
$26,700.00
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PERFORMANCEof KEEPERS
Number of sales or customers per month?
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PERFORMANCEof KEEPERS
Number of sales or customers per month?
04
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PERFORMANCEof KEEPERS
What is the gross margin on sales?
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PERFORMANCEof KEEPERS
What is the gross margin on sales?
30%
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PERFORMANCEof LOSERS
Average annual revenue per sale
or customer?
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PERFORMANCEof LOSERS
Average annual revenue per sale
or customer?
$26,700.00
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PERFORMANCEof LOSERS
Number of sales or customers per
month?
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PERFORMANCEof LOSERS
Number of sales or customers per
month?
01
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PERFORMANCEof LOSERS
What is the gross margin on sales?
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PERFORMANCEof LOSERS
What is the gross margin on sales?
21%
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What if you decreased your sales staff turnover by 30%?
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$385,452
Decreased costs…
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Flipside…
…Upside
Before After
Turnover % 33% 23%
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Flipside…
…Upside
Before After
Turnover % 33% 23%
Cost of recruiting $1,175,040 $822,528
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Flipside…
…Upside
Before After
Turnover % 33% 23%
Cost of recruiting $1,175,040 $822,528
Development costs $109,800 $76,860
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Flipside…
…Upside
Before After
Turnover % 33% 23%
Cost of recruiting $1,175,040 $822,528
Development costs $109,800 $76,860
The cost of bad hires $1,284,840 $899,388
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#DIV/0!
What’s your number?
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NO CRYSTAL BALLS
Without accurate data your analysis will produce fuzzy
readings at best.
Where are you getting your
data from?
Can you trust it?
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METHOD TWO: Utility Analysis
Using statistics to calculate standard
deviations of performance
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A Step-by-Step Approach
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1: Rank order, from top tobottom
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1: Rank order, from top tobottom
2: Tier production levels
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1: Rank order, from top tobottom
2: Tier production levels
3: Assign salespeople totheir appropriate level
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1: Rank order, from top tobottom
2: Tier production levels
3: Assign salespeople totheir appropriate level
4: Establish averages foreach production level
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1: Rank order, from top tobottom
2: Tier production levels
3: Assign salespeople totheir appropriate level
4: Establish averages foreach production level
5: Analyze and work thenumbers
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Rank from top to bottom
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Mary $1,000,000
Matt $900,000
Mark $800,000
Luke $700,000
John $600,000
Sarah $500,000
Ester $400,000
David $300,000
Sam $200,000
Martha $100,000
A typical sales team?
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Tier production levels
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Add production from allsalespeople and divide by three.
This yields three break-points thatallow us to divide our salespeople
into meaningful productionlevels, or “tiers.”
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Total sales $5,500,000
Mary $1,000,000
Matt $900,000
Mark $800,000
Luke $700,000
John $600,000
Sarah $500,000
Ester $400,000
David $300,000
Sam $200,000
Martha $100,000
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Add production from allsalespeople and divide by three.
This yields three break-points thatallow us to divide our salespeople
into meaningful productionlevels, or “tiers.”
Total sales of $5,500,000 dividedby 3 equals approximately
$1,800,000 per sales tier.
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Assign salespeople to their appropriate level
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Mary $1,000,000
Matt $900,000
Top-tier $1,900,000
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Mary $1,000,000
Matt $900,000
Top-tier $1,900,00
Mark $800,000
Luke $700,000
John $600,000
Mid-tier $2,100,000
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Mary $1,000,000
Matt $900,000
Top-tier $1,900,000
Mark $800,000
Luke $700,000
John $600,000
Mid-tier $2,100,000
Sarah $500,000
Ester $400,000
David $300,000
Sam $200,000
Martha $100,000
Bottom-tier $1,500,000
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Establish averages for each production level
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Divide production [within each tier] by the number of people in that level.
This yields the average production per salesperson by tier.
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Divide production [within each tier] by the number of people in that level.
This yields the average production per salesperson by tier.
Mary + Matt = $1,900,000 / 2= $950,000 averagetop-tier production
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Divide production [within each tier] by the number of people in that level.
This yields the average production per salesperson by tier.
Mark + Luke + John = $2,100,000 / 3= $700,000 averagemid-tier production
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Divide production [within each tier] by the number of people in that level.
This yields the average production per salesperson by tier.
Sarah + Ester + David + Sam + Martha = $1,500,000 / 5 =
$300,000 averagebottom-tier production
![Page 89: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/89.jpg)
Analyze and workthe numbers
![Page 90: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/90.jpg)
Calculate the average production difference between a mid-tier salesperson and a bottom-tier
salesperson.
![Page 91: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/91.jpg)
Calculate the average production difference between a mid-tier salesperson and a bottom-tier
salesperson.
Using a mid-tier sales “target” provides a conservative estimate of lost
production.
![Page 92: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/92.jpg)
Calculate the average production difference between a mid-tier salesperson and a bottom-tier
salesperson.
Using a mid-tier sales “target” provides a conservative estimate of lost
production.
$700,000 average mid-tier –$300,000 average bottom-tier
= $400,000 average production lost per bottom-tier salesperson.
![Page 93: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/93.jpg)
Multiply this figure by the number of salespeople in the bottom tier.
This represents the total sales lost each year by the bottom-tier salespeople.
![Page 94: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/94.jpg)
Multiply this figure by the number of salespeople in the bottom tier.
This represents the total sales lost each year by the bottom-tier salespeople.
$400,000 x 5 =
$2,000,000/year
![Page 95: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/95.jpg)
Most people don’t realize recruiting costs
are more than thecost of acquisition or
cost of turnover; they are also deeply hidden in the cost of variable
productivity.
From the largest organization to the
smallest, bad hiring practices tend to
secretly cripple organizations.
![Page 96: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/96.jpg)
Most people don’t realize recruiting costs
are more than thecost of acquisition or
cost of turnover; they are also deeply hidden in the cost of variable
productivity.
From the largest organization to the
smallest, bad hiring practices tend to
secretly cripple organizations.
![Page 97: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/97.jpg)
More Number Crunching
Does anyone know what the
actual cost of making a bad hire
really is, huh?
Who is measuring what, exactly?
![Page 98: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/98.jpg)
More Number Crunching
Does anyone know what the
actual cost of making a bad hire
really is, huh?
Who is measuring what, exactly?
![Page 99: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/99.jpg)
Calculating hidden costs
![Page 100: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/100.jpg)
Administrative costs:Discipline and termination
Separation processing
![Page 101: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/101.jpg)
Vacancy costs:Open territories
Unsold inventory
Administrative costs:Discipline and termination
Separation processing
![Page 102: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/102.jpg)
Vacancy costs:Open territories
Unsold inventory
Administrative costs:Discipline and termination
Separation processing
Replacement costs:Recruiting and related
Management time
![Page 103: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/103.jpg)
Vacancy costs:Open territories
Unsold inventory
Administrative costs:Discipline and termination
Separation processing
Management time:Hand-holdingLess time for
sales management
Replacement costs:Recruiting and related
Management time
![Page 104: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/104.jpg)
Vacancy costs:Open territories
Unsold inventory
Administrative costs:Discipline and termination
Separation processing
Management time:Hand-holdingLess time for
sales management
Team Morale:Lower achievements
ResentmentAnxiety
Replacement costs:Recruiting and related
Management time
![Page 105: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/105.jpg)
Vacancy costs:Open territories
Unsold inventory
Administrative costs:Discipline and termination
Separation processing
Training costs:Onboarding
Time to ramp-up
Management time:Hand-holdingLess time for
sales management
Team Morale:Lower achievements
ResentmentAnxiety
Replacement costs:Recruiting and related
Management time
![Page 106: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/106.jpg)
Lost opportunity:Missed dealsLost business Vacancy costs:
Open territoriesUnsold inventory
Administrative costs:Discipline and termination
Separation processing
Management time:Hand-holdingLess time for
sales management
Training costs:Onboarding
Time to ramp-up
Team Morale:Lower achievements
ResentmentAnxiety
Replacement costs:Recruiting and related
Management time
![Page 107: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/107.jpg)
Lost opportunity:Missed dealsLost business Vacancy costs:
Open territoriesUnsold inventory
Administrative costs:Discipline and termination
Separation processing
Training costs:Onboarding
Time to ramp-up
Customer costs:Complaints and poor service
Lost referral businessBrand erosion
Management time:Hand-holdingLess time for
sales management
Team Morale:Lower achievements
ResentmentAnxiety
Replacement costs:Recruiting and related
Management time
![Page 108: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/108.jpg)
Lost opportunity:Missed dealsLost business Vacancy costs:
Open territoriesUnsold inventory
Administrative costs:Discipline and termination
Separation processing
Training costs:Onboarding
Time to ramp-up
Competitive advantage:Lower ROI per salesperson
Lower margin on salesProprietary stuff
Management time:Hand-holdingLess time for
sales management
Team Morale:Lower achievements
ResentmentAnxiety
Customer costs:Complaints and poor service
Lost referral businessBrand erosion
Replacement costs:Recruiting and related
Management time
![Page 109: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/109.jpg)
Identifying existing and potential problems
![Page 110: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/110.jpg)
Top-down and bottom-up
Identifying existing and potential problems
![Page 111: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/111.jpg)
Questions of perspective
Identifying existing and potential problems
![Page 112: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/112.jpg)
Organizational dynamics
Identifying existing and potential problems
![Page 113: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/113.jpg)
Managing crunches, crisesand complexities
Identifying existing and potential problems
![Page 114: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/114.jpg)
Talent management
Identifying existing and potential problems
![Page 115: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/115.jpg)
Process improvement
Identifying existing and potential problems
![Page 116: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/116.jpg)
Benchmarking, audits and assessments
Identifying existing and potential problems
![Page 117: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/117.jpg)
Sizing up the organization
![Page 118: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/118.jpg)
1: Understanding thedynamics of change
![Page 119: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/119.jpg)
1: Understanding thedynamics of change
2: Flat world attitudes
![Page 120: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/120.jpg)
1: Understanding thedynamics of change
2: Flat world attitudes
3: Establishing a newmodel
![Page 121: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/121.jpg)
1: Understanding thedynamics of change
2: Flat world attitudes
3: Establishing a newmodel
4: Aligning the salesorganization with goals
![Page 122: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/122.jpg)
1: Understanding thedynamics of change
2: Flat world attitudes
3: Establishing a newmodel
4: Aligning the salesorganization with goals
5: Separating the hereticsfrom the faithful
![Page 123: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/123.jpg)
ARE YOU ATALENT-CENTRIC ORGANIZATION?
What is “talent?”
![Page 124: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/124.jpg)
ARE YOU ATALENT-CENTRIC ORGANIZATION?
Look at the recruiting process:
![Page 125: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/125.jpg)
Look at the recruiting process:
What works?
ARE YOU ATALENT-CENTRIC ORGANIZATION?
![Page 126: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/126.jpg)
Look at the recruiting process:
What works?
What doesn’t work?
ARE YOU ATALENT-CENTRIC ORGANIZATION?
![Page 127: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/127.jpg)
Look at the recruiting process:
What works?
What doesn’t work?
ARE YOU ATALENT-CENTRIC ORGANIZATION?
![Page 128: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/128.jpg)
Developing a working model and systematic
approach…
ARE YOU ATALENT-CENTRIC ORGANIZATION?
![Page 129: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/129.jpg)
Developing a working model and systematic
approach…
Workforce planning
ARE YOU ATALENT-CENTRIC ORGANIZATION?
![Page 130: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/130.jpg)
Developing a working model and systematic
approach…
Profiling
ARE YOU ATALENT-CENTRIC ORGANIZATION?
![Page 131: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/131.jpg)
Developing a working model and systematic
approach…
Employment branding
ARE YOU ATALENT-CENTRIC ORGANIZATION?
![Page 132: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/132.jpg)
Developing a working model and systematic
approach…
Sourcing strategies
ARE YOU ATALENT-CENTRIC ORGANIZATION?
![Page 133: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/133.jpg)
Developing a working model and systematic
approach…
Screening and assessment
ARE YOU ATALENT-CENTRIC ORGANIZATION?
![Page 134: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/134.jpg)
Developing a working model and systematic
approach…
Selection
ARE YOU ATALENT-CENTRIC ORGANIZATION?
![Page 135: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/135.jpg)
Developing a working model and systematic
approach…
Onboarding
ARE YOU ATALENT-CENTRIC ORGANIZATION?
![Page 136: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/136.jpg)
Developing a working model and systematic
approach…
Engagement
ARE YOU ATALENT-CENTRIC ORGANIZATION?
![Page 137: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/137.jpg)
Developing a working model and systematic
approach…
Performance management
ARE YOU ATALENT-CENTRIC ORGANIZATION?
![Page 138: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/138.jpg)
Developing a working model and systematic
approach…
Training and development
ARE YOU ATALENT-CENTRIC ORGANIZATION?
![Page 139: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/139.jpg)
Developing a working model and systematic
approach…
Retention
ARE YOU ATALENT-CENTRIC ORGANIZATION?
![Page 140: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/140.jpg)
Developing a working model and systematic
approach…
Succession planning
ARE YOU ATALENT-CENTRIC ORGANIZATION?
![Page 141: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/141.jpg)
Assessing who’s who and who’s up for change
![Page 142: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/142.jpg)
WALKING THE WALK
TALK
ING
TH
E TA
LK
![Page 143: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/143.jpg)
WALKING THE WALK
TALK
ING
TH
E TA
LK
The Unfaithful
![Page 144: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/144.jpg)
WALKING THE WALK
TALK
ING
TH
E TA
LK
The Unfaithful
Heretics
![Page 145: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/145.jpg)
WALKING THE WALK
TALK
ING
TH
E TA
LK
The Unfaithful
Heretics
Good Soldiers
![Page 146: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/146.jpg)
WALKING THE WALK
TALK
ING
TH
E TA
LK
The Unfaithful
Heretics
Good Soldiers
Champions
![Page 147: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/147.jpg)
WHO ISYOUR BEST
RECRUITER?
Fill in the blank…
![Page 148: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/148.jpg)
WHO ISYOUR BEST
RECRUITER?
Fill in the blank…
Unfaithful?
![Page 149: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/149.jpg)
WHO ISYOUR BEST
RECRUITER?
Fill in the blank…
A heretic?
![Page 150: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/150.jpg)
WHO ISYOUR BEST
RECRUITER?
Fill in the blank…
Good soldier?
![Page 151: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/151.jpg)
WHO ISYOUR BEST
RECRUITER?
Fill in the blank…
A champion?
![Page 152: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/152.jpg)
A sales manager’s role
[Why recruiting is a stretch]
![Page 153: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/153.jpg)
Grunt work
![Page 154: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/154.jpg)
Bad economics
![Page 155: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/155.jpg)
Core competencies
![Page 156: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/156.jpg)
Unbundle it
![Page 157: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/157.jpg)
Strategic versus tactical
![Page 158: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/158.jpg)
Are your sales managersup to the job?
![Page 159: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/159.jpg)
1. A systematic,integrated androutine approach?
![Page 160: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/160.jpg)
1. A systematic,integrated androutine approach?
2. Growing the salesteam, raisingthe bar?
![Page 161: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/161.jpg)
1. A systematic,integrated androutine approach?
2. Growing the salesteam, raisingthe bar?
3. Part of the talentmanagementcontinuum?
![Page 162: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/162.jpg)
Standard deviations…
![Page 163: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/163.jpg)
…digging deeper
![Page 164: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/164.jpg)
…digging deeper
Uncovering underlying problems…
![Page 165: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/165.jpg)
…digging deeper
Uncovering underlying problems…
Why do underperformers underperform?
![Page 166: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/166.jpg)
…digging deeper
Uncovering underlying problems…
Why do underperformers underperform?
Is it a motivation problem?
![Page 167: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/167.jpg)
…digging deeper
Uncovering underlying problems…
Why do underperformers underperform?
Is it a motivation problem?
Are core behaviors, attitudes and techniques out of synch?
![Page 168: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/168.jpg)
…digging deeper
Uncovering underlying problems…
Why do underperformers underperform?
Is it a motivation problem?
Are core behaviors, attitudes and techniques out of synch?
Are the problems situational?
![Page 169: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/169.jpg)
Rooting out problems
![Page 170: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/170.jpg)
Investigate
![Page 171: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/171.jpg)
Investigate
Competencies
![Page 172: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/172.jpg)
Investigate
Competencies
Measurable, observable
![Page 173: Hiring Salespeople and the Economics of Failure](https://reader035.fdocuments.us/reader035/viewer/2022062614/545affd0af79592b448b605f/html5/thumbnails/173.jpg)
Investigate
Competencies
Measurable, observable
Relate to job performance
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Measuring applicants
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Measuring applicants
Tests and simulations
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Measuring applicants
Tests and simulations
Behavioral interviewing
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Measuring applicants
Tests and simulations
Behavioral interviewing
Targeted Selection
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Reversing bad hiring processes and implementing good ones
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Chunking the problem
Reversing bad hiring processes and implementing good ones
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Jumping the tracks
Reversing bad hiring processes and implementing good ones
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Start with the end in mind
Reversing bad hiring processes and implementing good ones
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What next?
Reversing bad hiring processes and implementing good ones
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CALCULATING THE COST OF HIRING MISTAKES
If time is money, the typical interview is a waste of both…
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CALCULATING THE COST OF HIRING MISTAKES
If time is money, the typical interview is a waste of both…
Poor predictor of performance
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CALCULATING THE COST OF HIRING MISTAKES
If time is money, the typical interview is a waste of both…
Who is selling who what?
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CALCULATING THE COST OF HIRING MISTAKES
If time is money, the typical interview is a waste of both…
What gets measured and how?
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CALCULATING THE COST OF HIRING
MISTAKES
Using top producers as a model misses
the mark…
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CALCULATING THE COST OF HIRING
MISTAKES
Using top producers as a model misses
the mark…
Measuring the difference
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CALCULATING THE COST OF HIRING
MISTAKES
Using top producers as a model misses
the mark…
True or False:All salespeople
have big heads?
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CALCULATING THE COST OF HIRING MISTAKES
Measuring the wrong stuff…
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CALCULATING THE COST OF HIRING MISTAKES
Measuring the wrong stuff…
Personality
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CALCULATING THE COST OF HIRING MISTAKES
Measuring the wrong stuff…
Aptitude
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CALCULATING THE COST OF HIRING MISTAKES
Measuring the wrong stuff…
Experience
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CALCULATING THE COST OF HIRING MISTAKES
Measuring the wrong stuff…
Validated skills-based and job related testing
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CALCULATING THE COST OF HIRING
MISTAKES
Getting usedto it…
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CALCULATING THE COST OF HIRING
MISTAKES
Getting usedto it…
Analyzing poor performance
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CALCULATING THE COST OF HIRING
MISTAKES
Getting usedto it…
Retention problems
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CALCULATING THE COST OF HIRING
MISTAKES
Getting usedto it…
Understanding why people leave
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Baselines and benchmarks
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Profiling
Job profiling
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Profiling
Job profiling
Candidate profiling
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Profiling
Job profiling
Candidate profiling
Performance profiling
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Profiling
Job profiling
Candidate profiling
Performance profiling
Fit
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Assessments
Talent management audits
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Assessments
Talent management audits
Sales management evaluation
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Assessments
Talent management audits
Sales management evaluation
Statistically validated screening
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Assessments
Talent management audits
Sales management evaluation
Statistically validated screening
Sales- and job-specific assessments
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Performance Management
Accelerate ramp-up
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Performance Management
Accelerate ramp-up
Minimize deviations
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Performance Management
Accelerate ramp-up
Minimize deviations
Effective management
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Performance Management
Accelerate ramp-up
Minimize deviations
Effective management
Growing the organization
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What next?
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1: Get real about the costsand consequences
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1: Get real about the costsand consequences
2: Step back and evaluateyour options
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1: Get real about the costsand consequences
2: Step back and evaluateyour options
3: Take a leadership roleand get involved
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1: Get real about the costsand consequences
2: Step back and evaluateyour options
3: Take a leadership roleand get involved
4: Systematically applybest practices
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1: Get real about the costsand consequences
2: Step back and evaluateyour options
3: Take a leadership roleand get involved
4: Systematically applybest practices
5: Repeat