Building a Winning Sales Management Team: The Force Behind the Force
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Would you weather have excellent salepeople with an average sales manager, or average salespeople with an excellent sales manager? Watch a replay of this webinar with Forum and ZS Associates to find out: http://www.forum.com/register.aspx?id=d9ff62c2-eafe-401c-b32b-f70d7c98c025&edocid=939
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Building a Winning Sales Management Team: The Force Behind the Force
- 1. © Copyright 2013 The Sales Management Association. Sales Management Association Webcast 5 June 2013 Presented by Building a Winning Sales Management Team: The Force Behind the Force
- 2. About The Sales Management Association A global, cross-industry professional association for sales operations and sales management. Focused in providing research, case studies, training, peer networking, and professional development to our membership. Fostering a community of thought-leaders, service providers, academics, and practitioners. Learn More: www.salesmanagement.org Slide 2 © 2013 The Sales Management Association. All rights reserved.
- 3. Today’s Panelists Slide 3 © 2013 The Sales Management Association. All rights reserved.
- 4. © Copyright 2013 The Sales Management Association. Sales Management Association Webcast 5 June 2013 Presented by Building a Winning Sales Management Team: The Force Behind the Force
- 5. Optimal sales resource levels and deployment, within a structure that enables the sales process Customer-focused sales process & planning, advancing the customer relationship with each interaction Highly motivated, performance focused & accountable sales force committed to “getting it done” & “doing it right” Sales managers & sales people with the knowledge, skills & attributes required to excel at their respective roles Sales Strategy Sales Force Design Customer Engagement Process People & Skills Motivation Customer focused strategy targeting the best customers with offerings they value Exceptional Customer Experience Profitable Growth Customer Loyalty & Advocacy Source: ZS SFE Navigator Framework ZS and Forum are both focused on helping organizations drive superior sales effectiveness Forum
- 6. Which would you rather have? Slide 6 © 2013 The Sales Management Association . All rights reserved Average salespeople and an excellent manager Excellent salespeople and an average manager
- 7. “The day you become a manager, it becomes about them. Your job is to walk around with a can of water in one hand and some fertilizer in the other hand. ” 80% 90% 100% 110% District goal attainment Avg. time FLM spent with each sales person per month 19% difference What does the data tell us? © 2013 The Sales Management Association . All rights reserved Slide 7 Low (bottom 1/3) Mid (middle 1/3) High (top 1/3)
- 8. Building a winning sales management team Sizing and structuring the team Defining the role Creating the success profile Selecting talent Enhancing competencies Managing performance Supporting critical activities Motivating and rewarding success The First Line Manager (FLM) Success Drivers Facilitating change Defining the FLM job Creating a strong FLM team Enabling the right FLM activity © 2013 The Sales Management Association . All rights reserved Slide 8
- 9. FLMs play three critical management roles • Select the team • Build the team (coach) • Lead the team (translate the strategy consistently) • Manage the team • Reward the team STRATEGIC • Achieve sales goals • Manage sales resources and pipeline • Adapt strategy to local needs • Collect market insight ADMINISTRATIVE • Ensure compliance with policies and regulations • Monitor expenses and budgets • Coordinate with other company functions • Develop account plans • Facilitate big sales • Assist with important sales process steps • Manage/lead key account relationships People Manager Customer Manager Business Manager © 2013 The Sales Management Association. All rights reserved. Slide 9
- 10. Poll Question: In which of the following areas would your organization benefit most from increased 1st line sales manager focus? A. Business Manager B. People Manager C. Customer Manager © 2013 The Sales Management Association. All rights reserved. Slide 10
- 11. How do your managers spend their time? Slide 11 © 2013 The Sales Management Association . All rights reserved Role Typical Time Allocation Some Conditions Under Which Time Allocation Should be Greater than the Typical Range People Manager 30% -55% Allocate more than 55% to People Manager role when: • Sales process is simple, streamlined, consistent • Many inexperienced salespeople due to: • Rapid sales force growth • High salesperson turnover • Important to closely control sales activity Customer Manager 25% -40% Allocate more than 40% to Customer Manager role when: • Sales process is complex, multi-step, customized, involves many decision makers • Customers value a relationship with someone with authority • Too few key accounts for a dedicated KAM • Managers have unique expertise (for example, in pricing or negotiating) Business Manager 20% - 35% Allocate more than 35% to Business Manager role when: • Sales process requires participation of other company functions • Managers control local budget and resources • Dynamic events or local conditions require adaptation of sales strategies
- 12. A three step process for defining and implementing the right FLM role Step 1: Assess Step 2: Design Step 3: Implement How do FLMs currently spend their time? How should FLMs ideally spend their time? How do we progress from current to a ‘practical’ ideal? • Develop list of specific job tasks • Conduct light assessment (eg: survey, interviews, …) • Use results as a baseline • Consider changes to sales environment • Identify time traps • Learn from top performers • Identify gaps • Look for ‘practical ideal’ • Involve FLMs in implementation process • Communicate and reinforce expectations
- 13. A Leader’s Success … Source: Carnegie Foundation Other People 80% © 2013 The Sales Management Association. All rights reserved. Slide 13
- 14. The First-Line Sales Manager is a complex role, and not immune to Traps Slide 14 © 2013 The Sales Management Association . All rights reserved Races to get a lot done Fails to put customer needs first Fails to delegate tasks Undermines salespeople by taking over customer relationships Fails to build and lead a team Hires or mentors the wrong salespeople Does not pay enough mind to people-leadership activities Does not give credit where credit is due Stays in the comfort zone Spends too much time on urgent, low-value activities Equates a management title with authority Demands Improvement on results without creating a path to get there Carries out plans instead of creating them Doesn’t complete tasks to keep headquarters and the field aligned Traps of first-line managers Traps of first-line sales managers
- 15. First Line Leadership Essentials LEADERSHIP ESSENTIALS THINK LIKE A LEADER E N G A G E P E O P L E C O A C H YO U R TEA M G ET R ESU LTS TH R O U G H O TH ER S © 2013 The Sales Management Association. All rights reserved. Slide 15
- 16. Refine Your Leadership Approach Focus Upstream Build a High- Performance Climate How can I get great results from my people? How can I be more strategic? How can I motivate and energize my team? Key Questions for Sales Managers © 2013 The Sales Management Association. All rights reserved. Slide 16
- 17. Refine Your Leadership Approach © 2013 The Sales Management Association. All rights reserved. Slide 17 COMMAND DEVELOP PACESET UNITE INSPIRE COMMAND Creates forward movement UNITE Creates connectedness, employee engagement INSPIRE Provides clear direction linked to overall strategy DEVELOP Creates effective, productive people PACESET Sets and demonstrates high standards for performance
- 18. GROWING SALESPEOPLE BUILDING FIRM-TO-FIRM RELATIONSHIPS CREATING A PROACTIVE TERRITORY STRATEGY CREATING INTERNAL SALES PARTNERSHIPS • Pay more attention to excellence than weakness. • Devote at least 25% of your time to coaching/ teaching salespeople. • Invest in the salesperson pipeline. • Identify A+ customers. • Enhance salespeople’s senior- level relationships. • Invest time in critical relationships. • Focus on leveraged situations. • Set strategic focus. • Build pipeline quality. • Anticipate change. • Invest in critical linkages. • Create mutually beneficial relationships. • Create alignment. Upstream Strategies © 2013 The Sales Management Association. All rights reserved. Slide 18
- 19. Build a High Performance Climate © 2013 The Sales Management Association. All rights reserved. Slide 19 Build your own confidence Build your team’s confidence Build your customers’ confidence Sales Team Climate Customer Climate Personal Climate Motivated Salespeople Motivated Customers Motivated Self RESULTS
- 20. Coaching Process Example Case example: Coaching process © 2013 The Sales Management Association. All rights reserved. Slide 20 Key Objectives Duration & Mode • Review activities and progress over prior two weeks • Review next steps on ‘top-5’ sales opportunities • Review activity plan for upcoming two weeks, including high-priority critical pre-call plans ~ 1 hour per salesperson (telephone) • Review call objectives and roles • Observe calls • Provide ongoing post-call feedback on sales process execution • Provide written feedback summary • Top 20%: 2 days / Qtr. • Mid 60%: 3-4 days / Qtr. • Bottom 20%: 2 days / Qtr. • Review objectives & attainment • Assess territory targeting plan • Confirm strategies and plans ~1.5 hours per rep (in person) Bi-Weekly Sales Activity Meeting (Tactical) Quarterly Territory Plan Review (Strategic) Field Rides (Tactical)
- 21. Consider a development solution if… Consistently do not make their numbers Have high variability in sales person performance across their districts Were previously strong performers but are no longer doing well Have consistently high turnover of sales people in their districts Hire many new salespeople who never make it out of the box and leave the company within their first year © 2013 The Sales Management Association. All rights reserved. Slide 21
- 22. Q&A: © 2013 The Sales Management Association. All rights reserved. Slide 22
- 23. © Copyright 2013 The Sales Management Association Thank You.
Hinweis der Redaktion
- Everybody take a minute to write down how their managers spend their time Write down various people’s responses to the three questions in rows (each person is a row with three numbers going across the page) Note the heterogeneity across the answers for any given role – some high, some low Ask if the time allocation is intentional or just an outcome? Ask: For those of you with high Business, why is that, what is it about your sales process or structure or industry that requires that? Ask. What about for those of you with high People – what drives that? Ask What about for those with high Customer – what drives that? Now for each of your answers, note whether that is the right time allocation or if you need more. Ask how many of you think we should spend more time against each Business , less time against business Etc. What’s driving that? Has anyone made significant progress in moving their allocation on any of these? What was the context? How did you do it?
- One clue was this: that the ability to lead people effectively—people-leadership skills—is roughly three to four times as important to an individual leader’s success in his or her career as are other skills and knowledge. In other words the ability to work effectively with people accounts for about 80 percent of an individual leader’s success. This means that the technical skills and knowledge that often get someone recognized and promoted into a first line leader role in the first place are much less important to their success (and by extension to the organization’s success) than is the ability to lead people. I’m sure this comes as no surprise to you, as it didn’t to us, but it is interesting that this work as been replicated in a variety of different types of work in leadership over the past century – including Forum’s own work on climate, Goleman’s work on emotional intelligence, and much more. TRANSITION: so we know that people leadership skills are key to personal success, but how does that impact the business? First-line leaders make up 50-60% of management on average and directly supervise as much as 80% of the workforce. [Fred Hassan, The Frontline Advantage Article Preview, http://hbr.org/2011/05/the-frontline-advantage/ar/1. Accessed 10/24/12]. Which means that they are, in many ways, the most important group of leaders. They really are the linchpin in : strategy execution, customer satisfaction, and employee engagement, productivity and retention, in reality, they are the main driver of business results…
- There are three people leadership practices that first-line leaders should master. We call them “Coach Your Team,” “Get Results Through Others, and “Engage People.” But there is also a fourth – which we call “think like a leader -- which is really about personal effectiveness or self leadership. We’ve found that without this self-leadership, first-line leaders generally don’t focus enough of the people-leadership practices. And we’ll show you why in just a few minutes. A quick review: Think Like a Leader. You could also call this “think strategically” because they are strategic about how they invest their time and effort so that they can focus on truly high-value people leadership activities. Coach Your Team—they are great coaches, which fundamentally means know each of their team members needs to do, is capable of doing, and they work to develop them using feedback and coaching. Get Results Through Others – they know how to deliver results to the organization, but more importantly, they know how to do it through their team. A big part of this is about delegating work effectively. Engage People – they understand the relationship between engagement and performance and that what motivates and engages one person is not the same as for another person. They use that knowledge to build and maintain engagement. TRANSITION: At this point you may be thinking “hmm, those practices on the bottom – Coach and Get Results – really aren’t new. And you’d be right. In fact, we think of these core blocking and tackling skills. However, our experience is they are critical things that first-line leaders tend to have a lot of trouble with.
- All organizations are unique and should be treated as such. However, we've found that there are 3 key questions that most sales managers need to answer: How can I get great results from my people (Leadership approach). This also includes thinking like a leader and understanding the impact you have directly on your sales people. Includes your leadership style and how to managing and coach performance. How can I be more strategic (focus upstream) – reference slide for what we mean here. How can I motivate and energize my team (high performance climate and engagement needs). – Leaders need to understand how to create an effective climate as well as their sales folks engagement needs. By understanding engagement needs, they can focus on both motivation and creating the right climate for success. We know from research these are critical in driving business results.
- Will see some overlap between how you focus upstream and how to get results from people and engage and motivate. In our sales management training we - Review 4 areas.
- We frequently tell managers to go out and coach their reps. But what support do we give them to be effective in that role? How do managers spend their coaching time? With which reps?
- We frequently tell managers to go out and coach their reps. But what support do we give them to be effective in that role? How do managers spend their coaching time? With which reps? These are individual development needs. We know that to be effective as a sales manager need to know: what is my job, whats the processes for doing my job and what competencies do I need to be effective. These are the critical questions in looking at an organizational solution for sales management development. NOT sure what we want to do here.
- We frequently tell managers to go out and coach their reps. But what support do we give them to be effective in that role? How do managers spend their coaching time? With which reps?