4 Critical Steps to Building A Successful Sales Team White Paper1. PEOPLE. PERFORMANCE. PROFITABILITY.
4 Critical Steps to Building a Successful Sales Team
By: Jerry Scher, Principal
Introduction
Contents
Whether purely transactional, consultative or a blend of the two,
creating a successful sales team is generally a make or break Introduction . . . . . . . . . 1
proposition for most businesses. You’ve likely heard “it’s not a
Step 1: Determine if a direct
business until something gets sold.” So, unless you have money to sales team is the right business
burn and don’t care if you ever make even a small profit, a successful model for you . . . . . . . . 1
sales team is must.
Step 2: Select the Right People
It’s less important what you sell – physical products or intangible - the First Time . . . . . . . . 3
services – and more important to determine the right sales method
mix, the right people, the right training and the right management Step 3: Design Effective Sales
systems that will give you the best shot at success, now and into the Training and Coaching
Programs . . . . . . . . . . . 5
future.
Step 4: Manage Your Sales
The answers to all of these critical questions will be as unique as your
Team . . . . . . . . . . . . . 7
specific business. In this whitepaper you’ll find a proven framework to
guide you in finding your unique answers. About the Author. . . . . . 11
Step 1: Determine if a direct sales team is the right
business model for you
One of the most common goals of any business is to increase its
revenue and profitability. Most often it is assumed that in order to
achieve this goal, it is necessary to establish and/or expand a direct
sales team. This may or may not be the most effective or cost efficient
approach to accomplishing your goal. Prior to plunging directly
into this strategy, it is imperative that a variety of business issues be
reviewed.
Where does your business come from, and what do you need to
know?
▲▲ Do you analyze where your current sales come from?
▲▲ How many clients make up your current sales volume, and what
percentage do they represent?
▲▲ What is the profitability of each client?
▲▲ How do you attract new clients?
▲▲ Why do new clients select your company?
▲▲ Why do they continue to do business with you?
▲▲ What are your overall sales goals for the next few years?
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2. PEOPLE. PERFORMANCE. PROFITABILITY.
▲▲ Can you achieve these goals with the organization that is already
in place?
▲▲ If you add more people, how will they be managed?
In today’s marketplace there are many different ways to reach out to
new prospects that need to be considered before investing in sales
people. Technology has made information more readily available
to clients; sales people are no longer seen as the primary source of
information. Buyers and decision makers are multi-tasking and are in
a state of information overload. Their time is far more valuable than
in the past, and the role of the sales professional has dramatically By carefully defining
changed. the sales role in your
organization, you will be far
What role does marketing play in your business growth? Do you more effective in selecting
have a well thought out marketing plan and are you implementing the people to fill the role.
it effectively? Creatively designed, successfully executed marketing The skill set necessary to be
strategies can not only strategically position your company for growth successful in sales today is
but can also contribute significantly to your business retention quite different than in years
demands. past.
Define the Sales Professional’s Role
Before embarking on a recruiting and hiring spree, carefully determine
the role you want sales people to play in your organization. In years
past the sales person was responsible for the entire selling process.
However, in most organizations today a variety of people have
become involved in this process. Consider these responsibilities:
▲▲ Prospecting and locating new sources of business
▲▲ Pre-qualifying prospective clients
▲▲ Retaining existing business
▲▲ Developing accounts to increase account share
▲▲ Managing client relationships at multiple levels
▲▲ Integrating technology into business management
▲▲ Providing solution resources to clients
By carefully defining the sales role in your organization, you will be
far more effective in selecting the people to fill the role. The skill set
necessary to be successful in sales today is quite different than in
years past. The job has changed; the market is far more competitive
and clients have many more choices. Asking a transactional sales
person to become a solutions provider or consultative resource is
beyond a tall order. It just doesn’t happen.
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3. PEOPLE. PERFORMANCE. PROFITABILITY.
Theory of Optimization
If your inclination is to hire new sales people, first consider carefully
the effectiveness of your current sales staff. The Theory of Optimization
is just as important in maximizing output from your sales people
as it is for the investment in other areas of your business. Consider
everything you must do in order to get the biggest bang for your
buck. Hiring additional, average-to-poorly performing sales people is
not the fast track to achieve your sales growth goals.
Step 2: Select the Right People – the First Time
We’ve covered the importance of defining the role of professional
sales person in your organization. This analysis must take Sales professionals must
into consideration what your clients are looking for in a sales not only be knowledgeable
representative. In years past, the sales person was the primary source about their product and/or
of information; however, in today’s high tech business environment, service offering but must
quite frequently the client has as much or more information about have the interpersonal
the product or service options than the sales person. They definitely communication skills
have more knowledge about their needs and requirements. Therefore, enabling them to uncover
sales professionals must not only be knowledgeable about their the clients’ needs and
product and/or service offering but must have the interpersonal expectations, and
communication skills enabling them to uncover the clients’ needs strategically position
and expectations, and strategically position themselves as a trusted themselves as a trusted
business resource. This requires the capacity to be truly customer business resource. This
focused and not just product focused – to move from transactional requires the capacity to be
persuaders to consultative resources. truly customer focused and
not just product focused – to
Once the job description is completed, the process of selecting move from transactional
the right people begins with your recruiting activities. Recruiting persuaders to consultative
is a continuous process and not just an event that occurs when a resources.
sales opening needs to be filled. The same manner in which you
market your company to prospective clients must be used to create
marketing strategies that establish your competitive brand in the
region. The ultimate goal is for you to have potential applicants
regularly contacting you because your company is a highly desired
place to work. Networking within your industry, as well as in other
industries in which you plan to sell, is a great way to further your
recruiting strategy. While seeking people with sales experience in your
industry is logical, it is not always a successful approach to finding the
most productive sales people. If you have created effective orientation
and training programs and have a successful sales management
structure/system in place, including effectual sales coaching, your
networking can be expanded to include candidates that have the
right stuff but not the desired length of experience or industry-
specific knowledge. In many cases this is the best way to build a loyal,
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4. PEOPLE. PERFORMANCE. PROFITABILITY.
When adding to your staff is the right decision, we’re proponents of
hire tough, manage easy. The process of actually selecting the right
person for the job involves three, well-defined activities:
▲▲ Eligibility – involves determining if the individual can do the
job. You must consider past experience, skills and knowledge
currently held, previous training received and the level of
education achieved. Carefully review the candidate’s resume More often than not,
and don’t accept everything without dissecting the information people are hired based
carefully. on eligibility and fired
based on suitability.
▲▲ Suitability – involves determining if the individual will do Most companies look at
the job. This is best accomplished by utilizing a validated a resume, get references
behavioral assessment system that can predict how an individual and then interview – and
will behave. The assessment should be based on the work hire or promote based on
environment and should consider the individual’s personal eligibility. Few take the
interests. It has been established that people will perform time to objectively evaluate
more effectively in a job if they enjoy the required tasks, have a candidates (for hire or
personal interest in the work, and the work environment matches promotion) for suitability. It
their personal preferences. The assessment must also evaluate is imperative to look beyond
the traits or behaviors the individual exhibits and these traits can the person do the job,
should be tied to the essential traits the job requires. Selecting and look at will they do the
the right people without determining suitability is extremely job, and do it well…
costly.
▲▲ Interview – The third component of the selection process is the
most interactive and requires a significant amount of skill on the
part of the interviewer. With the information gathered from the
eligibility and suitability processes, the interviewer must carefully
plan the interview and determine who else should be involved
in the process; team interviewing is by far the most effective.
Everyone involved must know the job requirements, review the
available information, carefully consider the assessment profile,
dig into the resume, and prepare a wide range of questions they
plan to ask. The questions should be open ended providing
the candidate the opportunity to speak at length, while the
interviewer peels back the onion one layer at a time. In the case
of a sales interview, the use of role playing is extremely effective
in determining a candidate’s selling skill. It is quite simple, in a
matter of a few minutes, to uncover a candidate’s instinctive sales
capability.
The process of selecting the right people is a crucial part of building
a successful sales team. As in the building of any successful team,
selecting the best talent that fits within your organization will enable
you to achieve your company’s goals.
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5. PEOPLE. PERFORMANCE. PROFITABILITY.
Key Concepts/Issues for Emphasis
▲▲ To make it today, sales people must be customer focused, not
just product focused!
▲▲ Recruiting is an ongoing process, not just an event. It should be
an extension of your marketing and branding activities.
▲▲ The selection process should include reviewing eligibility,
determining suitability and optimizing the interview process.
▲▲ Does your organization have the capacity to coach talented sales
professionals without a lot of experience?
▲▲ Do you have a strong sales management structure/system in
place?
We’ve heard executives say,
“What if I train them and they
leave?” Your greatest concern
Step 3: Design Effective Sales Training and should be “What if you don’t
train them and they stay.”
Coaching Programs
The progression that leads to the development of an effective
organization requires careful planning and execution. As you expand
your team and search for the right players, your focus should be on
the knowledge and competence that employees can contribute to
your organization’s efforts.
In Step 2, focusing on selecting the right people, we referred to
the eligibility and suitability of applicants. As you become more
proficient at recruiting and hiring, your focus must be on your
organization’s ability to develop the competencies of each employee.
In your organization’s work to reach goals and take your business
to a higher level, the skill and competence of your employees will
determine the capacity to achieve your organizational goals and
growth.
Leveraging one of your business’s most valuable assets requires
nourishment; in other words, multifaceted and continuous training
programs must be in place and professionally executed. I have heard
executives say, “What if I train them and they leave?” Your greatest
concern should be “What if you don’t train them and they stay.”
Building a successful sales team requires thoughtfully designed
training and coaching programs and activities. In developing your
programs you should consider these questions:
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6. PEOPLE. PERFORMANCE. PROFITABILITY.
▲▲ How will your company be different in the future?
▲▲ What is the changing role of the sales professional in your
industry?
▲▲ What should they know and what skills do they require?
▲▲ Is selling a team sport or an individual sport at your company?
▲▲ How do your employees learn?
▲▲ How can you make learning more interesting and effective?
▲▲ Who are the best trainers in or for your organization? It is essential that a
▲▲ How will you measure the results of your training efforts? well thought out sales
management system or
▲▲ What content should be included?
program be designed
▲▲ How much time should be allocated on company time? that clearly defines your
expectations and allows
Training programs should be structured and well organized. Any your sales team to actually
training that is provided should be documented and converted into manage themselves. Once
components of an overall training system. One of the questions this system is in place, the
most often asked by potential recruits is, “How will I be trained?” Well sales manager’s primary
documented training programs are great branding tools during your role should be to manage/
recruiting efforts. maintain the system and
provide the necessary
Your training system should, at a minimum, include the following: coaching so that your
sales people can grow
▲▲ Orientation and Organizational Training professionally and adapt
▲▲ Product and Process Knowledge to the dynamic market
▲▲ Technology Competency environment.
▲▲ Interpersonal Communication Skills
▲▲ Sales Process and Activities
▲▲ Sales Admin
▲▲ Team Selling
Not only do your newly hired sales people need to be trained and
coached, so do your seasoned professionals. They require continuous
education and encouragement to adapt to changing technologies,
maintain and expand their knowledge, capabilities and team selling
proficiency. During the course of a sales professional’s career, you
should regularly review their strengths and weaknesses and they
should participate in established training (and coaching) activities
to improve their effectiveness. In addition to strengthening your
team’s core skills, such programs enable you to communicate your
organization’s current and future focus.
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7. PEOPLE. PERFORMANCE. PROFITABILITY.
Effective training programs begin with the recognition that they are
critical to your organization’s success. Establishing a training priority
and carefully defining and sharing your goals and objectives are
essential. Assigning a training champion is a must if you really want to
be successful.
Clearly communicating to all employees that their growth and
development is a high priority to your organization will strengthen
your recruiting efforts, enhance employee loyalty, reinforce your
relationships with existing clients, and ultimately lead to the business
growth you hope to achieve.
Step 4: Manage Your Sales Team The combination of training
and coaching is essential.
In the first of these steps we challenged you to consider your What’s the difference? Well,
company’s overall business development strategy and whether to coach means to help
developing a direct sales force was the most appropriate approach. develop or fine tune a skill
The second step focused on how to select the right people and finally, or talent. It’s impossible
in the third step, we discussed how to design effective training and to coach what doesn’t yet
coaching programs. All of these areas are fundamental components of exist. That’s why you must
building a successful professional sales team. As these fundamentals teach first, then coach. They
are being put in place, your success at optimizing your overall sales go hand in hand. Teaching
program will hinge on how well your sales team is managed. without coaching is a major
reason training efforts often
We’re strong believers in the concept that you should manage your fall flat and don’t produce the
system and coach your team. It is essential that a well thought out anticipated results.
sales management system or program be designed that clearly
defines your expectations and allows your sales team to actually
manage themselves. Once this system is in place, the sales manager’s
primary role should be to manage/maintain the system and
provide the necessary coaching so that your sales people can grow
professionally and adapt to the dynamic market environment. If you
select the right people with the appropriate skills and experience
(eligibility) and behavioral traits (suitability), then this approach will
result in significant growth.
Let’s take a look at the components of an effective sales management
program.
▲▲ Strategy and Planning
▲▲ Sales Process Management
▲▲ Resource Deployment
▲▲ Coaching and Leadership
▲▲ Sales Compensation Design and Implementation
▲▲ Recruiting, Hiring and Training
▲▲ Technology Management
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8. PEOPLE. PERFORMANCE. PROFITABILITY.
Strategy and Planning
Prior to designing the management structure you must facilitate a
strategic planning process that not only defines what success looks
like but also provides a clear picture of your current status. One goal
should be to involve the key players in this process so that the team
can become aligned around company expectations while preparing
written goals and objectives.
Sales Process Management
You should clearly define the sales philosophy/approach that will
be utilized and communicate it to the team. It is most effective if
you can provide a step-by-step process for your company’s selling If you expect your sales
strategies so that sales people can develop the necessary skills for people to effectively
implementation. Integrating transactional and consultative sales prospect for new clients, you
strategies into your overall business development plan requires must supply them with the
thoughtful planning and communication. proper technology tools for
the job. A software system
Resource Deployment
that can handle the tasks
As more people in your organization become involved in the
of sales workflow, contact
overall sales process, the sales manager is responsible for deploying
management, sales reporting
appropriate company resources to win new clients and protect your
and forecasting, marketing
hard earned business. This of course requires a strategic analysis of
and client correspondence
where your business comes from (yes, the work you completed back
and expense reporting can
in Step 1, in an ongoing process) as well as what is required to defend
have a dramatic positive
the business that is essential to your continued success. Setting and
impact on sales growth and
communicating priorities is a crucial component of this process.
profitability.
Coaching and Leadership
“If you give a man a fish, he’ll eat for a day; if you teach him to fish,
he’ll eat for a lifetime.” 1 One great indicator of strong leadership is the
ability to make the people around you better. This is accomplished
by providing an example so that the process of modeling can occur.
This is further accomplished by designing a carefully executed
coaching program. This of course requires an accurate assessment
of individual and team strengths and weaknesses and developing a
plan that will, over time, assist your sales people in improving their
overall competence. Once an objective assessment is accomplished,
teaching your sales people how to develop their own personal
development strategic plan and assisting them in carrying it out is
what professional sales management is all about. No two members of
your sales team are alike; therefore their development plans must be
as unique as the individuals.
1 Lao Tzu, Chinese philosopher
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9. PEOPLE. PERFORMANCE. PROFITABILITY.
Sales Compensation
In today’s business environment, where the requirements and
expectations of your sales program are changing right before your
eyes, the structure and design of your sales compensation program
will clearly impact selling behavior. Continually reviewing your
existing compensation program to ensure that its design supports
your business development strategies is the responsibility of senior
management as well as the sales manager. The structure of your plan
will clearly impact your sales organization’s behavior.
Recruit, Hire and Train
The sales manager is responsible for executing a continuous
recruiting program. The days of looking for experienced sales people
with a book of business are over. As the complexity of purchasing
decision processes intensifies and the role of the sales person
changes, recruiting has also become more complex. Clearly defined
job descriptions are essential and a recruiting process that reaches
outside the confines of the industry is essential. The use of effective
behavioral assessments such as the Harrison Assessment that will help
predict a candidate’s suitability for the position is a must. The overall
investment in hiring a new employee and the risks related to selecting
the wrong person are extremely expensive.
One of the best ways to attract talented sales professionals is to be
able to demonstrate your company’s capability to provide training.
The talent pool expands significantly when you offer well thought out
and designed training and coaching programs. The candidates that
have the right tools (i.e., technology competence, C-leveling selling
skills, and prospecting capabilities) are searching for organizations
that will assist them in growing professionally.
Time and Technology Management
In order to optimize the performance of your sales team, they must
be held accountable for their time. How they spend their time and
what percentage is spent on direct sales activities is critical. All too
often sales people are focused on non-selling or administrative
activities. They are often poorly organized and do not maintain the
necessary account information to effectively market to their clients.
If a primary role of your sales people is to prospect for new clients/
business then you must leverage client information through the use
of technology. An effective software program that can support sales
workflow, contact management, sales reporting and forecasting,
marketing, client correspondence and expense reporting can have
a dramatic impact on sales growth and profitability. So many of the
sales management tools (i.e., call reports, expense reports, client
correspondence, proposal writing) that have been in use for years can
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10. PEOPLE. PERFORMANCE. PROFITABILITY.
now be handled via industry specific technology and the greatest
bonus is that management has complete access to the data so
they can hold their sales team accountable.
As a final note, as you design your sales management system
consider the capability of the sales manager. Prepare the job
description, determine the eligibility requirements for the position
and assess the suitability of the manager. The best designed
system, with the best talent, will not produce great results without
the right coach/manager in place.
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11. PEOPLE. PERFORMANCE. PROFITABILITY.
About the Author
Jerry Scher - Founder and Principal at Peak Focus
Jerry’s known by many names -- business builder, executive, conference speaker, trainer,
facilitator, coach, mentor. Regardless of the title, the end result is the same -- making people
around him significantly more successful. His ability to diagnose business issues and effectively
communicate appropriate solutions, that can be acted upon quickly, truly differentiates him.
About Peak Focus, LLC
People. Performance. Profitability.
Peak Focus gives you the tools to grow, develop and strengthen your team. With a mix of resources that
we’ve created ourselves, as well as several powerful tools we’ve carefully assessed and believe in, we
combine our passion and experience to guide companies and individuals toward optimized performance.
Select your team members with confidence, help your key players develop their soft skills, and learn how
to coach your entire team more effectively by engaging the experts at Peak Focus.
For more information and access to free resources, please visit our website at www.peakfocuscoach.com
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