Managing Underperformers to Sales Success
By paulmccord on Mar 12, 2008 in Career Management, Career Development, Featured, Sales Training
Most sales teams are overflowing with underperformers, from those who are consistently far below quota to those who meet quota but could be performing on a much higher level to some of the top salespeople who haven’t reached their full potential but who just can’t seem to find a way to step up another notch or two.
All of these underperformers are costing the company money—even those top salespeople who have reached a plateau they can’t seem to climb above. Lost sales, wasted training dollars, discontent and anxiety, and turnover are just a few of the serious issues associated with underperforming sales teams.
Traditionally, managers have focused their attention on those salespeople who are not meeting quota, allowing those who are performing at a minimum acceptable level to continue without being challenged to stretch themselves, to maximize their performance. Most managers are concerned about production quotas and goals, not maximizing the performance of each individual on their team.
Time is partly to blame for this focus on only those salespeople who are not meeting quota. But it is hardly the only factor. In reality, it’s not the primary factor.
Managers concentrate only on the non-quota achievers simply because they don’t know how to help their salespeople fully develop their potential. That isn’t an indictment of managers—most have never been given a process to help develop their team members. The average sales manager uses ‘motivation,’ the carrot of a reward, extra sales training in the form of sales books, tapes, or seminars, and anything else they can think of to get their bottom dwellers to reach quota, including the ultimate weapon—the threat of being let go.
Yet, it is the responsibility of every sales manager to work to get each of their team members to reach their maximum potential. It’s their primary responsibility. In a very real sense, it’s their only job.
Nevertheless, how do you get team members to maximize their potential if you don’t know how to do it?
Here are four ways to get the process started:
1. Like any other salesperson, manager, or executive, sales managers need a coach. The coach should be someone who not only can give guidance and encouragement, but someone who has been where they have been and knows how to get the most from each member of the sales team. In other words, the coach has to be coach, trainer, motivator, disciplinarian, and confidant. Hiring or having the company hire a coach for you who knows the process of how to develop sales talent and can help guide you through the process should be a priority.
2. Whether you have a coach or not, sit down with each member of the sales team and help them create a comprehensive sales and marketing history of their past year’s activity (or any other reason time frame—the longer, the better).
Reconstructing their history will not be easy and it will be time consuming. Give them guidance in how to construct it, review their progress and give help as needed, but have them do the actual research and reconstruction.
Once the history has been reconstructed, work with them to develop their actual historical ratios—their closing ratio, their marketing ratios, all of their sales ratios. The more detailed, the better.
Once the ratios have been developed, look for patterns that show where they have been successful and where they haven’t. A salesperson’s sales and marketing history is a key to discovering how they can radically improve their sales business in an amazingly short timeframe. Without a solid history, it is impossible to make logical, realistic and significant changes in the way they do business. In order to make changes based on reality instead of guesswork and hope, they must know how and why they’ve gotten where they are and why they aren’t where they want to be.
3. Have each team member take a quality sales assessment. Use the information from the sales history and sales assessment tool to help each salesperson identify their individual behavioral and personality traits, as well as their sales skills.
Each salesperson has their own unique behaviors, their own personality and their own set of developed sales skills. Sales skills can be learned, changing one’s behavioral and personality traits is difficult, if not impossible. Yet with a thorough understanding of their strengths and weaknesses, you can help each salesperson find those markets and marketing methods and the sales process that caters to their strengths and minimizes their weaknesses. Once one has aligned the way they do business to maximize their individual strengths and minimize their weaknesses, prospecting, marketing and selling becomes natural, their success soars, and their self-confidence and job enjoyment skyrockets seemingly by magic.
4. Again from the analysis of the salesperson’s sales history and the sales assessment, establish an individualized training program that addresses their sales skill needs. Most companies and managers try to give ‘universal’ sales training. Everyone will get X training. Everyone read X book. Everyone go to X seminar. Not only is that an ineffective use of time and resources, it is self-defeating. Training only works when it addresses a need and where the individual being trained recognizes the need. Forcing salespeople to take training they don’t need or don’t believe they need is futile. Far more effective in terms of dollars and time invested—and results, is training that is geared toward the specific needs of a specific individual. The initial dollars invested in each salesperson may be more, but the return will be many times what the traditional training approach produces.
Developing your sales team’s full potential isn’t easy, nor is it without a great deal of effort for both the salesperson and you. If it were easy, there wouldn’t be vast numbers of sales teams staffed with underperforming salespeople. Because it takes time, money and a good deal of commitment and dedication, few managers and companies will make the investment. However, those that do will see tremendous returns. Not only will they increase their business, they will have a sales and management team with new life and vitality that will seep throughout the rest of the organization.
Finding a comprehensive process to help you or members of your sales team work through their sales business in a logical, systematic process to discover where they are strong and where they need to make radical changes to their business isn’t easy. As a matter of fact, the only comprehensive guide I know of is contained in my just released book SuperStar Selling: 12 Keys to Becoming a Sales SuperStar which is available at Amazon, Barnes and Noble and all fine bookstores.
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4 Comment(s)
By Kelly Balarie on Mar 14, 2008 | Reply
This is a great post. How do we get the lowest performers to be as great as the top performers! What we have found is that the top performers usually have an organizational network that they can tap into. This means that they can get the best insight, expertise and intelligence from company gurus. At my company we have found a way to extend this benefit to all sales people, by leveraging the collective genius of an organization and driving this into every customer conversation. We are actually holding a webinar on how we do this, if anyone is interested, here is the link to register: https://savoevents.webex.com/savoevents/onstage/g.php?t=a&d=664757276
By Gene Nelson on Mar 26, 2008 | Reply
My mentor emphasized that there was one yard stick for measuring field sales success — ” New Business ” .. and that meant ” New Accounts ” He also repeated, start your week Sunday night. . He said you will know if your plan is working by the number of new accounts you open … period.
He came from the era when you met your boss on a corner at 7AM every morning. You would be given a dollar to cover expenses for the day. At the end of the day you would meet at a coffee shop .. hand in your orders and receive your commissions. Take away computers, cell phones, blackberries … total integrated communication …. and not much has changed. It still boils down to getting in front of people who have a need for what you are selling … make the perfect pitch and get an order. New technology hasn’t changed the goal … just the opportunities.
By Peter Ramsden on Apr 5, 2008 | Reply
Sales metrics!
Now that’s a real way to decrease a sales persons motivation if you do not know what you are measuring, the reasons why and what you are going to do with the data.
It is generally recognised that sales people hate administration. Therefore gathering data that does not afford any benefit to the sales team can easily fall into disrepute. The key to an effective sales metric system is ensuring that the data collection is simply and easily administered and the subsequent output provides the sales team with a clear indication of where and how they can improve their sales performance. But is data enough to improve sales performance?
I read some much about closing ratios and number of cold calls made as being the Holy Grail for top sales performers. I have witnessed that in some industries it is about closing ratios and other industries it is about activity and how many points of contact you have with the client. I have worked with sales diaries in the past in the motor industries where data has been collected. The data collected suggests that sales people with high closing ratios are amongst some of the poorest performers. Yet so many sales programs are about improving closing ratios! The data I was exposed to in the motor industry suggests that sales persistence and activity leads to the top performers. There is no doubt in my mind that sales metrics if used appropriately will help boost sales. However for me sales metrics need to be well designed-such that the data output provides valuable information so that the sales team can develop effective sales and personal development plans leading to an improvement in sales performance.
Having said that, I feel that a well designed sales metrics system is no replacement for a good sales manager. A good sales manager should not need sales metrics to be able to spot strengths and weaknesses of their staff. I was recently called into a client whose marketing team had managed to increase warm leads by 50% - just imagine clients calling you removing the need for any cold calling. Now that’s what I call effective marketing!
However, one department’s sales increased 20% while another department’s sales were flat. The client measured and recorded no end of sales metric data in a sophisticated SQL database including calls, number of proposals completed, follow up calls, reasons for not winning the business, closing rates, etc. The proposal to close ratio had dropped from 70% to 45%. Even with all this data they could not figure out what was needed to put things right. They literally spent days on more and more analysis to try to get to the bottom of it. Was the marketing bringing in unqualified leads, was geography an issue, had our recent increase in price made us uncompetitive etc?
After all this analysis and debate I was asked to spend some time with the head of the department and though a process of dialogue and observation see if we could improve sales performance. Following two half days of discussion and one-on-one practical help in a number of sales techniques we saw instantaneous results. What the department head needed was some simple help in sales techniques that would fit her personality on handling telephone calls and some sound advice on writing winning proposals. The last thing she wanted was analytical data comparing her to the other department. The crazy thing is she was capable of making the changes but it needed a human being to help see what was needed and not numbers.
For me this highlights that you can have as many sales metrics as you want. You still need good sales management who can recognise that each sales person is different and you cannot live by numbers alone. Also coaching of staff in simple sales techniques cannot but underestimated
Don’t get me wrong. I would accept that a well designed sales metric system can improve sales but this needs to work in combination with a good sales manager/coach.
By Paul McCord on Apr 5, 2008 | Reply
Peter,
You hit on two key points:
1) Sales metrics alone won’t do anyone any good. As I make clear in the article, the benefit of metrics is being able to analyze an individual’s strengths and weaknesses and then to address the specific issues that individual salesperson has. Metrics for metric’s sake is a waste of time and effort.
On the other hand, a well designed and instituted metrics system won’t decrease a salesperson’s motivation because they will understand the goal isn’t to use it as a club but to increase their value and their income.
Which leads to the second key point:
2) Most sales managers are not prepared to be an effective coach. Yes, there are managers who can recognize a salesperson’s strengths and weaknesses. And there are even fewer who know what to do with that information once they understand it.
This isn’t to beat on sales managers. The issue isn’t the manager, it’s that they have never been taught how to analyze a salesperson’s sales business and then how to coach them to correct and overcome the issues they have. The problem lies primarily with the company not giving the sales manager the training they need.
Many sales managers have been put in their positions not because of their management and coaching ability but because they were big hitters. Then once put in a management position they’ve been left on their own to sink or swim and to either figure it our or not.
Furthermore, the basic concept of sales management as practiced today is a primary part of the problem. For hundreds of years sales has been managed through the herd mentality—the only metric obtained was the end result. The sales training and direction given, if any, was for the herd—everyone will take this seminar, everyone read this book, everyone uses this sales process, everyone prospects this way, etc. Managing for the most part isn’t managing, it’s herding. And the typical “coaching” an under performer receives is to do more of what’s not working. Cold calls not producing? Make more calls. Closing ratio low? Close harder.
With a properly instituted metrics system, along with a well trained sales management staff, sales management can move from moving the herd along to an end goal to actually managing the performance and productivity of individuals.
The technology is being developed, though few companies actually use it at this point. Most are still using CRM and SPM programs that are designed for herd management, not for coaching management.
Proper use of technology does not have to be a threat to salespeople. However, the resistance I hear most often to a movement to such systems isn’t from salespeople but from managers because they see that their performance will be just as transparent as that of their sales team. No longer will they simply be responsible for the final number. In addition they’ll be responsible for how resources are used, the value those resources bring to the company—, and it will all be measurable. To many, that’s a real threat.