There's A Better Way To Manage
Your Salespeople's Level of Effort.
Joe has been in territory for 6 months
and hasn't closed any business. Is he a slow starter -- or
a goof off? Mary's production has been flat for the past four
years. Is her territory tapped out -- or is she just coasting?
One way that many training companies
attempt to determine selling effort is by measuring selling
activity. "All Account Managers must make 15 face to face
sales calls per week." Or, "All Inside Sales Reps must spend
50% of every work day on the phone."
Unfortunately, in our work with training
companies that put a premium on measuring selling activity,
we find increasing fudging of sales call and contact time
information -- frequently with the covert participation of
the Sales VP! Why? Because there is dwindling confidence that
raw sales activity levels have a lot to do with sales results.
Another issue is that more and more
selling work is done via e-mail, conference calls and Internet
collaboration software. So what are you going to do -- track
how many times your salespeople log on?
Today, there's a better way to assess
the effort level of your salespeople. Stop measuring what
they do and start measuring what they know. Require your salespeople
to demonstrate intimate account knowledge as part of their
planning process and speak to this knowledge during coaching
calls and operating reviews.
For instance, during your next operating
review, as members of your sales team post their major frontlog
items, ask: "Mary, tell me what you know about your account
that should make me confident your $70K forecast will be achieved."
As Mary proceeds, invite her to fill in any important blanks
by saying "Mary, I'd feel better about your chances if you
could tell me ______."
Then invite other members of your
team to pitch in by saying "OK gang, is everybody confident
about Mary's forecast now? What more would you like to know?"
If Mary really knows her stuff, it
will be evident that she is really working her territory,
and your entire sales team will be challenged to meet her
high standard.
On the other hand, if Mary's frontlog
item turns out to be just so much bluff and bluster, you won't
need to know how many sales calls she is making to know she
is not applying herself. And if she's not able to do any better
next month you won't need to lose any sleep about taking appropriate
disciplinary action.
Questions you may have:
Q: Our salespeople are professionals
with a pay plan that rewards an extra effort. Shouldn't we
just treat them like adults and get off their back?
A: Sorry, as human beings, salespeople
require attention as well as compensation. Even police state
methods of measuring their efforts will get better results
than totally ignoring them.
Q: Why bother with selling effort
at all? Why not just judge salespeople based on results?
A: Closing training business typically
requires a long sales cycle, and there are many no-fault
reasons why forecasted sales can be delayed or lost. Unless
you measure selling effort, it can take months to finally
conclude that a salesperson is failing. Meanwhile, you have
lost any chance of taking corrective action. Look at it
this way -- you invest too much in bringing on and supporting
new salespeople to simply let them sink or swim.
Q: Suppose a salesperson knows their
accounts inside out but can't close the business?
A: Then you will need to decide
whether you are dealing with a lack of selling skills or
selling aptitude. The former can be addressed through training
in qualifying and closing skills. The latter may require
counseling the individual into a different job role.
Q: Can't our salespeople fake account
knowledge as easy as they can fake sales activity?
A: Because salespeople recognize
the value of account knowledge, they will take a whole lot
less pleasure in faking what they know -- and come down
hard on peers they feel are cheating the system. However,
if you feel a salesperson is faking it, try zeroing in on
a specific topic, and then ask a series of penetrating questions.
"Ask the fourth question" a colleague
of mine used to say -- "Most people only prepare for the
first three." This will usually smoke out even the most
determined bluffing effort.
Q: We're using 360-degree assessments
of our salespeople. Isn't this enough?
A: Periodic 360-degree assessments
are an excellent complement to regularly assessing your
salespeople based on what they know about their accounts.
You would expect a knowledgeable salesperson to be perceived
by customers and colleagues as a consultative, high value
added resource. So use 360s to validate your conclusions
and fine tune the coaching process.
Q: I've tried debriefing frontlog
items in our operating reviews, and my salespeople tell
me they find this tedious and abrasive. Any ideas?
A: You need to reinforce with your
salespeople that when you are conducting an operating review
you are the customer, not an entertainer! They are there
to sell you that they are on top of their business -- and
to prepare you to represent their best interests to your
boss or your board of directors.
As far as the abrasive rap goes,
don't spend a disproportionate amount of time picking on
poor performers. Give your superstars a chance to share
what they know about their frontlog accounts -- and how
they learned it. It's the best kind of training there is.
Q: We're using sales automation
software to track our salespeople's activities. Isn't this
enough to ensure ourselves that our salespeople are applying
themselves?
A: Automating an activity-based
sales measurement system doesn't make it any less subject
to fudging. Build in fields so salespeople can also log
in account knowledge in a consistent and easy way. This
will also pay off if a territory turns over and a new rep
needs to get up to speed.
A parting thought. These days everybody's
talking about Knowledge Management, the science of turning
the collective intelligence of employees into a strategic
competitive advantage. Well, let them talk -- you can actually
apply Knowledge Management principles -- by debriefing your
salespeople in your next operating review!
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