The 6 Pillars of Sales Productivity

Today’s webinar:

6 Pillars of Sales ProductivityThe drivers that maximize productivity in

sales management.

Brought to you by:

Today’s Presenter

Bill EckstromBill EckstromFounder, President/CEOFounder, President/CEOEcSELL InstituteEcSELL Institute

Today’s Presenter

Ken RudinKen RudinFounder, VP of MarketFounder, VP of MarketDevelopmentDevelopmentLucidEraLucidEra

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The 6 PillarsThe 6 PillarsA set of guiding ideologies that command the attention, A set of guiding ideologies that command the attention, development and activity of those in sales management.development and activity of those in sales management.

Source: EcSELL InstituteSource: EcSELL Institute

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The 6 PillarsThe 6 PillarsA set of guiding ideologies that command the attention, A set of guiding ideologies that command the attention, development and activity of those in sales management.development and activity of those in sales management.


65% believe there is nothing more that65% believe there is nothing more thatdrives productivity in salesdrives productivity in sales


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Leadership and ManagementLeadership and Management

The 6 PillarsThe 6 Pillars


It is how one leads and manages that will ultimately It is how one leads and manages that will ultimately affect the success within each Pillaraffect the success within each Pillar

Talent Identification & Acquisition

Defined as: Proper identification and hiring of the right talent to meet and exceed sales department objectives

Proper identification and acquisition leads to:– Shorter ramp up times– Increases sales– Reduced turnover

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Talent Plus Case StudyTalent Plus Case Study

Changing the selection methodChanging the selection methodand interviewing process lead to:and interviewing process lead to:

- 10% increase in revenue- 10% increase in revenue- 50% reduction in turnover- 50% reduction in turnover

Results within a single year!Results within a single year!

Source: Talent PlusSource: Talent Plus

Caliper Research:Caliper Research:

Costs on average Costs on average $60K$60K per person turned.per person turned.

40 producers X 20% average turnover = 8 turns per year40 producers X 20% average turnover = 8 turns per year8 turns X 60K = 8 turns X 60K = $480,000$480,000 in loss/yr in loss/yr

Reduction in turnover rate to 10% saves $240,000!Reduction in turnover rate to 10% saves $240,000!

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EcSELL Institute Research indicates:EcSELL Institute Research indicates:

67%67% Sales managers rate this Pillar as Sales managers rate this Pillar as““extremely strongextremely strong” when referring to impact” when referring to impacton sales production.on sales production.


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67%67% Sales managers rate this Pillar as Sales managers rate this Pillar as““extremely strongextremely strong” when referring to impact” when referring to impacton sales production.on sales production.

Source: EcSELL InstituteSource: EcSELL InstituteOnly 7% rate theirOnly 7% rate theirSales Managers skillsSales Managers skillssets as “extremely strong”sets as “extremely strong”in this areain this area

What you can do:

• Take control of all aspects of identifying and acquiring the right sales talent

What you can do:


• Identify your top internal recruiter(s) in the sales department and make them accountable for filling positions

What you can do:


• Identify your top internal recruiter(s) in the sales department and make them accountable for filling sales positions

• Make sure all sales managers have a list of potential recruits

What you can do:


• Identify your top internal recruiters in the sales department and make them accountable for filling sales positions


• Develop a partnership with a company that specializes in finding the right sales talent

What you can do:




• Develop a partnership with a company that specializes in finding the right sales talent.

• Compare with others

What you can do:




• Develop a partnership with a company that specializes in finding the right sales talent.


• Measure your outcomes • Average time territories are vacant

• Turnover rate

• Time to quota

Planning

Defined as:

The ability to create documents

that encompass all that is vital to

success in a sales organization

Mapping your goals and strategy

is critical to success. Pla

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Stanford University Study

5X more likely to achieve 5X more likely to achieve something if it is written down!something if it is written down!

500% increase!500% increase!

Source: Stanford UniversitySource: Stanford University

EcSELL Institute Research indicates:

10%10% Consider their sales management team as Consider their sales management team as ““extremely strongextremely strong” in the area of PLANNING” in the area of PLANNING

51%51% Consider their sales management team as Consider their sales management team as ““neutral to very weakneutral to very weak” in the area of PLANNING” in the area of PLANNING

University of Waterloo, Canada Research

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Individual ability

$$$$$$

$$$$$$

Stretch Goal!Stretch Goal!

A stretch goal that is tiered with attached bonuses and setA stretch goal that is tiered with attached bonuses and setaccording to individual ability outperforms single stretch goals.according to individual ability outperforms single stretch goals.

Source: University of Waterloo, Canada October 2006Source: University of Waterloo, Canada October 2006

University of Waterloo, Canada Research

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Individual ability

$$$$$$

$$$$$$



Source: University of Waterloo, Toronto, Canada October 2006Source: University of Waterloo, Toronto, Canada October 2006

The The tiered goaltiered goal participants participants outperformedoutperformed the single the single stretch goal in each period stretch goal in each period measured, despite the fact measured, despite the fact the single stretch goal was the single stretch goal was 14% lower!14% lower!

University of Waterloo, Toronto Canada Research

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Individual ability

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Source: University of Waterloo, Toronto, Canada October 2006Source: University of Waterloo, Toronto, Canada October 2006

Individually tailored stretch Individually tailored stretch goalsgoals, with , with attainment tiersattainment tiers, , may be a may be a more effectivemore effective means of motivating higher means of motivating higher efforts and performance.efforts and performance.

What you can do…

• Obtain sales and territory plans from colleagues in other organizations/industries

What you can do…


• Create and share annual sales plans with all those in sales management

What you can do…



• All those involved in sales management and production should create a plan

What you can do…




• Have sales management plans encompass all the Pillars

What you can do…





• Consider customizing goals to the individual’s ability

What you can do…



• All those involved in sales management and production should create a plan for their respective territory


• Consider customizing goals to the individual’s ability

• Be selective in what you are changing/adding. Let metrics direct change

Professional Development

Defined as:

Meeting the individual needs of

those in the sales department in

order to increase productivity and

retention of your team.

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Professional DevelopmentAsk yourself:

Do you know all those who aspire to other positions?

Do you know what producers will make great mangers or leaders?

Do you have programming in place to grow those skills?

Do you provide programming to further develop the skills of your sales managers? P

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CSO Insights Research

Less than 10% of companies have programming in place Less than 10% of companies have programming in place to develop the skills of their sales mangers.to develop the skills of their sales mangers.

10% have programming10% have programming

Source: CSO InsightsSource: CSO Insights

There is gap between what sales managers There is gap between what sales managers perceive and what science shows!perceive and what science shows!

38%38% Believe that Professional DevelopmentBelieve that Professional Developmenthas a “has a “very strong”very strong” impact on productivity impact on productivity


““Professional Development has a Professional Development has a strongstrong correlationcorrelation to to retention and productivity”retention and productivity”

Source:Source: Curt CoffmanCurt Coffman

What you can do…

• Understand your team’s professional goals--document

What you can do…


• Provide C/E for all levels within the sales organization

What you can do…



• Develop a culture that shows C/E is not a single annual event

What you can do…




• Limit C/E to only that which leads to increased production

What you can do…






What you can do…






• Provide feedback on what you can prove to be their development needs

Compensation, Recognition & Rewards

Defined as:The understanding and design of

programs that not only drive and

incent the proper behaviors, but

also meet the evolving

demographic and psychographic

needs of your sales department.

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EcSELL Institute Research indicates:

87%87% Respondents believe “Respondents believe “very strongly or stronglyvery strongly or strongly” that” thatthe right Compensation/Recognition/Reward has athe right Compensation/Recognition/Reward has adirect impact on sales productivitydirect impact on sales productivity

47%47% Respondents believe that their sales management team Respondents believe that their sales management team is “is “very strong or strong”very strong or strong” in this area in this area

Source: EcSELL Institute Research, 2009Source: EcSELL Institute Research, 2009

What you can do…

• Use common sense – align incentives to behaviors and objectives

What you can do…


• Make sure the sales team has an understanding of how plans work

What you can do…


• Make sure the sales team has a complete understanding of how plans work

• Annual review – 72% change sales compensation programs annually

What you can do…





What you can do…





• Graphically show each of them how they can achieve income objectives and provide monthly statements on progress

Sales Methodology and Sales Skill Development

Methodology defined as “how you sell”

Sales Skills defined as “how well

you perform the methods”

– Prospecting

– Needs analysis

– Presentation aptitude

– Proposals development

– Recognize the need to partner

with other departments

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Sales Methodology and Sales Skill Development

Methodology defined as “how you sell”

Sales Skills defined as “how well

you perform the methods”

– Prospecting

– Needs analysis

– Presentation aptitude

– Proposals development

– Recognize the need to partner

with other departments

Just because they can Just because they can do it doesn’t mean do it doesn’t mean they are good at it.they are good at it.

Train and measure!Train and measure!

Harvard Business Review research:Harvard Business Review research:

The New Science of Sales ProductivityThe New Science of Sales Productivity

Source: Harvard Business ReviewSource: Harvard Business Review


Breaking producer results down further:Breaking producer results down further:Top quartileTop quartile 6% increase6% increaseSecond quartileSecond quartile 59% increase59% increaseThird quartileThird quartile 77% increase77% increaseBottom quartileBottom quartile 149% increase149% increase




Another study showed similar results:Another study showed similar results:Top quartileTop quartile 2% increase2% increaseSecond quartileSecond quartile 33% increase33% increaseThird quartileThird quartile 54% increase54% increaseBottom quartileBottom quartile 44% increase44% increase



What you can do:

• Dedicate C/E time to developing product/market knowledge and sales skills

What you can do:

• Dedicate C/E time each week developing product/market knowledge and sales skills

• Figure out if there are other needs (negotiation skills, time management etc.)

What you can do:



• Analyze your sales methods annually

What you can do:




• Learn what sales methods and sales skill improvement models are being used by others

What you can do:




• Learn what sales methods and sales skill improvement models are being used by others

• Have a review program with defined and expected sales skill sets that can be measured

Leadership / Management

“What ultimately determines the levels of success you achieve correlates directly to the leadership skills and management acumen of those in sales management.”

Bill Eckstrom, Founder EcSELL Institute

Leadership and ManagementLeadership and Management


““Sales managers believe their Sales managers believe their ability to lead and manageability to lead and managehas the has the second largest impactsecond largest impact on on productionproduction ( (afterafterTalent ID and AcquisitionTalent ID and Acquisition).”).”

Less than 10%Less than 10% Put resources against improving leadershipPut resources against improving leadershipand management skillsand management skills

15%15% Consider their teams “Consider their teams “extremely strongextremely strong””

Gallup Organization Research

80,000 managers and 1 million employees interviewed80,000 managers and 1 million employees interviewed

““The biggest reason associates stay, quit, are The biggest reason associates stay, quit, are productive or not productive is due to the productive or not productive is due to the relationship they have with their direct manager.”relationship they have with their direct manager.”

Source: Source: First Break All The Rules: What the World’s Greatest Managers Do DifferentlyFirst Break All The Rules: What the World’s Greatest Managers Do DifferentlyCurt Coffman and Marcus Buckingham, GallupCurt Coffman and Marcus Buckingham, Gallup

Gallup Organization Research

80,000 managers and 1 million employees interviewed80,000 managers and 1 million employees interviewed

““The biggest reason associates stay, quit, are The biggest reason associates stay, quit, are productive or not productive is due to the productive or not productive is due to the relationship they have with their direct manager.”relationship they have with their direct manager.”

Source: Source: First Break All The Rules: What the World’s Greatest Managers Do DifferentlyFirst Break All The Rules: What the World’s Greatest Managers Do DifferentlyCurt Coffman and Marcus Buckingham, GallupCurt Coffman and Marcus Buckingham, Gallup

““The ability to build organicThe ability to build organicgrowth and the futuregrowth and the futureviability of any organizationviability of any organizationwill be in the hands of will be in the hands of their sales managers.” their sales managers.” Curt CoffmanCurt Coffman

Dr. Mary Ulh-BienDr. Mary Ulh-BienHoward Hawks Chair in BusinessHoward Hawks Chair in BusinessEthics and Leadership and Ethics and Leadership and Director of the Global Leadership Director of the Global Leadership Institute Institute

EcSELL Institute Summit topic:EcSELL Institute Summit topic:““Leading for Innovation, Learning,Leading for Innovation, Learning,And Adaptability in Sales”And Adaptability in Sales”

July 28-29, Half Moon Bay, CAJuly 28-29, Half Moon Bay, CA

Caliper Corp. Research

172 sales managers across 50 industries were identified as “the best leaders”

7 Personality Characteristics:– Work with a high sense of urgency

– Assertive

– Possess a high degree of ego drive

– Possess a high degree of ego strength

– Risk takers

– Innovative

– EmpatheticSource: Caliper Corp. Source: Caliper Corp.




– Assertive


– Risk takers

– Innovative


Great leaders believe 40% of Great leaders believe 40% of their talent is innate, the othertheir talent is innate, the other60% was developed60% was developed

Source: CaliperSource: Caliper




– Assertive


– Risk takers

– Innovative


““One of the distinguishing One of the distinguishing characteristics of a great, characteristics of a great, enduring organization is that theyenduring organization is that theyput a lot of thought into the put a lot of thought into the development of leadership.”development of leadership.” Jim Collins, Jim Collins, Built To LastBuilt To Last

What can you do…

• Read Coffman’s book

What can you do…


• Consider asking your sales team the Q 12 http://gmj.gallup.com/content/811/Feedback-Real.aspx

http://gmj.gallup.com/content/811/Feedback-Real.aspx

What can you do…


• Consider asking your sales team the Q 12

• Use assessments to distinguish between great leaders and great managers

What can you do…


• Consider asking your sales team the Q 12

• Use assessments to distinguish between great leaders and great managers

• Put resources against C/E for your sales producers and sales managers

EcSELL Institute is a leading provider of continuing education and development for sales managers.

Our goal at EcSELL Institute is to help sales executives and their sales management team make smarter, more deliberate decisions by providing them with educational and development tools specific to the activities over which sales managers have (or should have) control and influence over.

http://www.ecsellinstitute.com/

Analytics: The Critical Second Half of CRM

In the projects we've benchmarked over the past few years, we often find that CRM systems give sales

managers numbers – but what they want is insight.

““

””

Do You Have the Right Metrics?

Batting AverageBatting AverageBatting AverageBatting Average

.406.406.406.406

The Old Way…The Old Way…The Old Way…The Old Way…

On-Base On-Base %%On-Base On-Base %%

Batting Batting AverageAverage

++WalksWalks

++SacrificesSacrifices

++Hit By PitchHit By Pitch

Batting Batting AverageAverage

++WalksWalks

++SacrificesSacrifices

++Hit By PitchHit By Pitch

The New Way…The New Way…The New Way…The New Way…

Do You Have the Right Metrics?

.406.406.406.406

The Old Way…The Old Way…The Old Way…The Old Way…

The Sales 2.0 Metrics That Matter Total SalesTotal Sales Total PipelineTotal Pipeline Count of Lead Count of Lead

CompaniesCompanies Lead to Oppty Lead to Oppty

ConversionConversion Avg Days from Lead to Avg Days from Lead to

Oppty Oppty Avg Age of Open Oppty’sAvg Age of Open Oppty’s Avg Days from Lead to Avg Days from Lead to

CloseClose Avg Oppty AmountAvg Oppty Amount Avg # of Oppty’sAvg # of Oppty’s Lead to Close ConversionLead to Close Conversion

The New Way…The New Way…The New Way…The New Way…

Sales Rep ScorecardsSales Rep ScorecardsSales Rep ScorecardsSales Rep Scorecards

Sales Rep ASales Rep A

Sales Rep BSales Rep B

Sales Rep CSales Rep C

Sales Rep DSales Rep D

Sales Rep ESales Rep E

Sales Rep FSales Rep F

Ensure You’re Tracking the Metrics that Matter

Your Sales Pipeline• It’s not just the # of deals, it’s

how they’re moving

• Total value vs. velocity

Your Sales People• It’s not just how they’ve done, it’s

how they’re going to do

• Quota vs. scorecard

Your Sales Process• It’s not just having a process, it’s

making sure it’s followed

• Data entry versus data accuracy

The LucidEra Pipeline Healthcheck™

Get the Right Metrics and Actionable Insight in 48 Hours

LucidEra was able to quickly quantify the impact that on-demand business intelligence can have on

our business.””

““

www.lucidera.com/healthcheck

http://www.lucidera.com/healthcheck

Q&AEcSELL InstituteEcSELL Institutewww.ecsellinstitute.com402-261-6948402-261-6948

LucidEraLucidErawww.lucidera.comwww.lucidera.com/blogwww.twitter.com/lucidera

http://www.ecsellinstitute.com/

http://www.lucidera.com/

http://www.lucidera.com/blog

http://www.twitter.com/lucidera

The 6 Pillars of Sales Productivity

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