Your SlideShare is downloading. ×
Aligning Performance Levers for Breakthrough Sales Results 08-2011
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Aligning Performance Levers for Breakthrough Sales Results 08-2011

6,183
views

Published on

Mike Kunkle's sales effectiveness methodology... a six-project methodology for aligning sales performance levers and radically improving sales results.

Mike Kunkle's sales effectiveness methodology... a six-project methodology for aligning sales performance levers and radically improving sales results.

Published in: Business, Technology

0 Comments
12 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
6,183
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
280
Comments
0
Likes
12
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Aligning Performance Levers For Breakthrough Sales Results Mike Kunkle August 2011
  • 2. Performance Levers The PlanAgenda Overview:  Background, Definition, Six-Project Approach, Why It’s Worth the Effort Walk-through of the Six Projects Case Example Appendix with Helpful Resources “Everybodys got plans... until they get hit.” Mike Tyson 2 2
  • 3. Performance Levers Overview | Definition A sad but true tale “Karen, we need sales training!” Karen reviews sales training. 3
  • 4. Performance Levers Overview | Definition A sad but true tale Karen selects sales training. Note: Miller Heiman is a fine company. This is neither an endorsement nor a condemnation. 4
  • 5. Performance Levers Overview | Definition A sad but true tale Karen delivers sales training. Training Expenses 5
  • 6. Performance Levers Overview | Definition A sad but true tale “Karen, what happened!?” 6
  • 7. Performance Levers Overview | Definition  A sad but true tale A XeroxAccording to a Sales Performance International study, most sales professionals forget at least study50% of what they learned in training programs in less than five weeks. For over 44% of 6,000 showed “Karen, what happened!?” sales professionals surveyed, they forget in less than one month. Further, salespeople only that 87% of remember 16% of content from sales training workshops after only 90 days. the knowledge According to ES Research Group, 85-95% learned in sales of sales training results in no long-term training is lost within impact in performance. 12 weeks. A study at Columbia University found that up to 95% of what is taught in training programs is Something needs to change! wasted through a failure to transfer learning to the workplace. 7
  • 8. Performance Levers Overview | Definition An alternative Performance Lever Alignment Performer Organization Analysis Function Performance Sales & Sales Lever Manager Alignment Selection Position The Six Performance Lever Projects Task Sales & Sales Performance Manager Lever Training Identification Real Sales Best Practices Performance Capture Improvement 8
  • 9. Performance Levers Overview | DefinitionPerformance Levers Critical competencies, knowledge, skills, behaviors and conditions which must be present for ethical, sustained high-performance to occur. Conditions include other organizational elements such as compensation, processes, policies, systems, technology, tools, culture, and more.Examples: Appointment Setting Competencies Knowledge Skill/Behaviors Conditions Assertiveness  How products work  Tracking lead results  Compensation Attitude  How to organize leads  Setting appointments  Processes, Policies & Procedures Energy Level  How to set appointments  Opening a sales call  Systems, Technology & Tools Verbal Skill  How to use collateral  Probing for needs  Performance Management Sociability  Sales process stages  Presenting solutions  Reporting Independence  How to get answers  Negotiating  And more… 9
  • 10. Performance Levers Overview | Definition Imagine an 8-cylinder engine, firing on all 8 cylinders. 1 8 2 7 3 6 4 5 10 10
  • 11. Performance Levers Overview | Definition What happens if it’s only firing on 4 cylinders? 1 8 2 7 3 6 4 5 11 11
  • 12. Performance Levers Overview | Definition What if more than one system isn’t working right? System 1  Engine System 2  Drive Train 12 12
  • 13. Performance Levers Overview | Definition How is this different in organizations? System 1 System 2  Hiring  Learning | Development System 3  Compensation System 4  Processes System 5  Coaching | Management System Et Cetera  And More… 13 13
  • 14. Performance Levers Overview | Definition How is this different in organizations? It’s Not! 14 14
  • 15. Performance Levers Overview | Definition Types of Levers It’s “Systems Thinking”  Organization (Company) Organization  Function (Department) Function  Position (Role / Job) • Task (subset) Position TaskCompetencies Knowledge Skill/Behaviors Conditions Assertiveness  How products work  Tracking lead results  Compensation Attitude  How to organize leads  Setting appointments  Processes, Policies & Procedures Energy Level  How to set appointments  Opening a sales call  Systems, Technology & Tools Verbal Skill  How to use collateral  Probing for needs  Performance Management Sociability  Sales process stages  Presenting solutions  Reporting Independence  How to get answers  Negotiating  And more.. http://en.wikipedia.org/wiki/Systems_Thinking 15 15
  • 16. O Performance Levers F P T Overview | DefinitionSales Training + Levers = Sales Effectiveness Sales Training Sales Effectiveness *  Is an important part of “sales effectiveness”  Includes much more than training  Preceded by a training needs analysis  Preceded by a performance gap analysis  Based on learning objectives  Based on performance objectives  Improves workplace behaviors and  Improves knowledge, skills, or attitudes outcomes  Requires instructional design and/or  Also requires performance consulting skills training delivery skills  Output includes courses, curricula, training  Output includes learning systems, events (e-learning, self-directed, processes, policies, technology, systems, classroom/instructor-led, field training) best practices and more  Tactical: Focused on who, what, why, how,  Strategic: Focused on organizational when & where alignment to support high performance * Also referred to as Sales Force Effectiveness, Sales Enablement or Sales Performance Development 16
  • 17. O Performance Levers F P T Overview | DefinitionWhere to Start? I used to consider… What can you control (or most strongly influence)? Within that span:  What is the easiest win? (low-hanging fruit)  Where is the biggest gain? (most mileage)  What is the biggest pain? (biggest problem solved)Logical… but these days, to get started… 17 17
  • 18. O Performance Levers F P T Overview | Definition…I Suggest This: Get sourcing, selection, and promoting right:  Identify the right competencies by role (sales/mgt) Selection  Upgrade processes for sourcing and hiring employees  Upgrade processes for developing and promoting employees Do a Position-level Performance Lever analysis:  Put strong focus here - on the Position levers Position  Identify Levers, capture Best Practices and upgrade learning systems  Get this right for frontline Sales & Sales Management Roles Levers  Align as many supporting organizational levers as you can  Show results  Then start “tying strings” (aligning) to other levers and functions Pure training task analysis: Identify Levers, capture Best Practices and: Task  Conduct a great task analysis Importance Difficulty Frequency Levers  Write the tasks into training  Gather importance, difficulty and frequency to make good training decisions 18 18
  • 19. O Performance Levers F P T Overview | DefinitionSelection + Sales & Management Levers + Supporting Org Levers Train the Sales Select for the Position Levers Competencies Train the Sales Management Levers Territory Consultative What & How to Train Competencies Sales Planning Align Management Selling Compensation How to Diagnose Levers Account Technology & Pipeline Account Selection Tool Use Management Development How to Coach Remove Policy & How to Manage SOP Barriers Performance Improve Internal Track Success Service Metrics Note: These are just examples and may not be right for your organization 19
  • 20. O Performance Levers F P T Overview | DefinitionWhat are They in Your World? Start Thinking Now….Varies by Role But What Should You Add / Subtract For Your Company?Will Include…  Document and discuss ideas with top producers & leaders Hiring Competencies  Agree on a hypothesis Recruiting | Selection  Perform the analysis | Conduct the research Compensation – Survey(s) Reporting – Interviews | Focus GroupsAnd May Include… – Observation Product Knowledge Setting Goals & Objectives Your Performance Lever Mix Lead Management Technology | Tools Account Selection Consultative Selling Skills Pipeline Management Account Management Account Development Follow-up | Follow-through Training | Coaching Action Planning …and more… 20 20
  • 21. Performance Levers Overview | DefinitionHigh-Level Overview: DIY “How To” Performer Analysis (Who To Study) Sales & Sales Manager Selection (How to Select, Promote & Develop)  Assessments, competencies, sourcing, interviewing, selection, tracking, validation Performance Lever Identification (What Really Drives Performance)  Interviews to create hypotheses for Performance Levers (sales reps & sales managers)  Surveys to confirm / hone Performance Levers Best Practices Capture (Details of Each Position/Task Lever)  Interviews / focus groups / observation to gather Best Practices (Re)Design Training for Sales & Sales Managers (Share the Knowledge)  Learning systems: pre-work, training, post-work, reinforcement, measurement, reporting Align Other Levers (Support the Levers Every Way Possible)  Measure, report, feedback, adjust, repeat Which becomes…. 21
  • 22. Performance Levers Overview | Definition – The Six Projects Performer Analysis Performance Lever Project SeriesPerformance Sales & Sales  Performer Analysis Lever Manager Alignment Selection  Sales & Sales Manager Selection  Performance Lever Identification  Best Practices Capture  Sales & Sales Manager TrainingSales & Sales Performance Manager Training Lever Identification  Performance Lever Alignment Best Practices Capture 22
  • 23. Performance Levers Overview – Why Go Through All This?Just a few of the many reasons… Better hiring | shorter-ramp up for new hires and promotions Geometric growth for incumbents (vs. incremental) Greater customer satisfaction & loyalty Break out of “80/20 prison” Improve “average” performance levels across the organization Rewards and incentives that drive the right behavior Systemic alignment fosters clarity and focus – people “feel better” (reduced frustration and cognitive dissonance)But most importantly, we do it for the bottom-line results… 23 23
  • 24. Performance Levers Overview – Why Go Through All This?The Outcome | Bottom-line Results (Real Examples): A $398MM sales revenue increase, a $9.96MM net profit increase and a 400% return on investment Increased sales per rep by 47% through changes in territory management and sales coaching Increased sales results 600% over previous year while decreasing net operating expenses by 21% Improved average profitability per rep by 11% in 4 months Improved processing efficiency (order pull-through) by 16% in 6 months. Newly-hired and trained 4-month employees outperformed a control group of untrained 5-year employees Increased loans closed per FTE in the 3-month period after training by 2.3 per month (average revenue increase of $183K per class or $36.6MM in 12 months) 24 24
  • 25. Performance Levers DIY | How To – The Six Projects Performer Analysis Performance Lever Project SeriesPerformance Sales & Sales  Performer Analysis Lever Manager Alignment Selection  Sales & Sales Manager Selection  Performance Lever Identification  Best Practices Capture  Sales & Sales Manager TrainingSales & Sales Performance Manager Training Lever Identification  Performance Lever Alignment Best Practices Capture 25
  • 26. Performance Levers DIY | How To – Performer Analysis Performer Analysis Performance Lever Project SeriesPerformance Sales & Sales  Performer Analysis Lever Manager Alignment Selection  Sales & Sales Manager Selection  Performance Lever Identification  Best Practices Capture  Sales & Sales Manager TrainingSales & Sales Performance Manager Training Lever Identification  Performance Lever Alignment Best Practices Capture 26
  • 27. Performance Levers DIY | How To – Performer Analysis Performer Analysis Performer Analysis  WHAT: Identify top, average & low producing sales reps.Performance Sales & Sales Lever Manager Identify top, average & low producing sales Alignment Selection managers.  HOW: Analyze a year of sales data & create a weighted scoring system across multiple metrics/products.Sales & Sales Performance Manager Lever Some discussion & surveys with managers. Training Identification  WHY: Best Provides a mix of performers to study in various Practices ways, to determine true differentiating factors. Capture 27
  • 28. Performance Levers DIY | How To – Performer AnalysisExample of Performer Categories n= New = >30 days, <271 days Top New Reps Often “top” includes tiers: 39 Top = In the Top Quartile of all metrics  4% | 10% | 15% | 25% Seasoned = >365 days (many 5+ years)Top Seasoned Reps 307 Top = In the Top Quartile of all metrics Average Reps Selected randomly, between mean and median production 298Low Producer Reps Selected randomly from the bottom 20% 348Top SM Producers Top = In the Top Quartile of all metrics, personal production 15 Top SM Team Top = Top Quartile all metrics, w/o SM results + survey of their Mgr 52 Managers Top = In Top Producer group personally + Top Quartile all metrics w/o SM Top SM Both 5 results + survey of their MgrAverage SM (Team) Selected randomly, between mean and median production 79Low Performing SM Selected randomly from the bottom 20% 32 (Team) 28
  • 29. Performance Levers DIY | How To – Performer AnalysisExample of Sales Metrics Metrics Quarterly Weighting * Create a weighted scoring system… # of Sales Med-High (2-3) $ Volume Low (1) Pull-Through Rate Med (1-2) Avg # Sales/Day/Rep High (3-4) Avg $ Vol/Day/Rep Med-High (2-3) Cross-Sell Percent Med (1-2) * Review the last 12 months & the last quarter. Weight the quarter more heavily. Blend the scores. 29
  • 30. Performance Levers DIY | How To – Performer AnalysisExample of Analysis – Sales Reps Low High 4th Quartile Mean Avg. Sort Descending Median Highlight 4th Quartile Apply Weighting Repeat & Total 30
  • 31. Performance Levers DIY | How To – Performer AnalysisExample of Analysis – Sales Reps Low High 4th Quartile Mean Avg. Sort Descending Median Highlight 4th Quartile Apply Weighting Repeat & Total 31
  • 32. Performance Levers DIY | How To – Performer AnalysisExample of Analysis – Sales ManagersConsider things like: Avg Productivity  Avg # and $/rep /time Engagement: % of team producing and/or goal %/rep Total Team Sales: $ and # Avg Time to 1st Sale (new reps) Pipeline Stats & Pull-through % Cross-sell Ratios or Penetration Trend Indicators (actual # last month, avg/month over 13 weeks, avg/month past year) Survey Their Managers  Remove the “luck” factor  Remove “inherited territory”  Remove “one great rep” 32
  • 33. Performance Levers DIY | How To – Performer Analysis Partner with Smart People with SAS, SPSS, or Minitab * to Crunch Data for Validity, as Needed* Of course, learning research methodology and statistics is a viable option for the brave… 33 33
  • 34. Performance Levers DIY | How To – Sales & Manager Selection Performer Analysis Performance Lever Project SeriesPerformance Sales & Sales  Performer Analysis Lever Manager Alignment Selection  Sales & Sales Manager Selection  Performance Lever Identification  Best Practices Capture  Sales & Sales Manager TrainingSales & Sales Performance Manager Training Lever Identification  Performance Lever Alignment Best Practices Capture 34
  • 35. Performance Levers DIY | How To – Sales & Manager Selection Sales & Sales Manager Selection Performer Analysis  WHAT: Psychometric assessments that measure thinking styles, behavioral traits and interest.Performance Sales & Sales Lever Manager Alignment Selection  HOW: Most vendors now offer online assessments.  WHY: The assessments will help you identify competencies. You can identify statisticallySales & Sales Performance validated patterns that predict success, based Manager Lever Training Identification on your top performers. You can use the results to further develop & Best coach your current leaders. Practices You can better identify future leaders, who are Capture like your very best today. 35
  • 36. Performance Levers DIY | How To – Sales & Manager SelectionMethods Competency Identification Interview Methods Other Checks Psychometric Assessments Job Matching Blended Models My Favorite? Blended w/ Psychometric + Job MatchingSources: Professor Mike Smith, University of Manchester, August 1994 John E. Hunter and Ronda F. Hunter, Validity and Utility of Alternative Predictors of Job Performance, Psychological Bulletin, Vol. 96, No.1, 1984, p. 90 Robert P. Tett, Douglas N. Jackson, and Mitchell Rothstein, Personality Measures as Predictors of Job Performance: A Meta-Analytical Review, Personnel Psychology, Winter 1991, p.703. Michigan State University’s School of Business. 36
  • 37. Performance Levers DIY | How To – Sales & Manager SelectionPsychometric Assessments Thinking | Cognitive Factors Behavioral Traits One-third of the Occupational Interests Hiring DecisionGet it right: Normative vs. Ipsative Focus on Predictive Validity Use the same Performer Categories from your other Analysis  Compare top | middle | bottom to look for differentiating factors Hire, develop and promote based on those factors, as well as performance data (whenever possible) Bring in experts 37
  • 38. Performance Levers DIY | How To – Performance Lever Identification Performer Analysis Performance Lever Project SeriesPerformance Sales & Sales  Performer Analysis Lever Manager Alignment Selection  Sales & Sales Manager Selection  Performance Lever Identification  Best Practices Capture  Sales & Sales Manager TrainingSales & Sales Performance Manager Training Lever Identification  Other Performance Lever Alignment Best Practices Capture 38
  • 39. Performance Levers DIY | How To – Performance Lever Identification Performance Lever Identification Performer Analysis  WHAT: Identify the knowledge, skills, behaviors or conditions that must exist for ethical, sustained,Performance Sales & Sales Lever Manager high performance to occur. Alignment Selection Formulate hypotheses about what the levers are for frontline sales and sales management roles. Confirm and validate the levers through research.  HOW: Through discussion, surveys, interviews, focusSales & Sales Performance Manager Lever groups, and observation of frontline sales reps Training Identification and their managers. Best  WHY: Practices This will confirm where to focus your efforts Capture capturing Best Practices, which provides training content. 39
  • 40. Performance Levers DIY | How To – Performance Lever IdentificationFormulating the Hypotheses Start with some known practices Talk with:  Executives  Other leaders  Frontline sales reps  Frontline sales managers  Sales operations and support staff  And possibly, customers Label the big buckets and detail the tasks Don’t get married – you’re just dating Build the surveys to confirm the hypotheses 40
  • 41. Performance Levers DIY | How To – Performance Lever Identification Identify the high-levelSurvey Design Performance Levers (hypotheses) Document the potential tasks for the Performance Lever Ask what you’ve missed 41
  • 42. Performance Levers DIY | How To – Performance Lever IdentificationSurvey Design Clearly define Performance Lever Define the role Add instructions for completing the survey 42
  • 43. Performance Levers DIY | How To – Performance Lever IdentificationSurvey Design (Scales) Rate the statement provided. Using empathy statements to acknowledge a prospect’s situation/feelings How much do you agree it’s a Performance Lever? If rated 1-2, next question. If rated 3-5:  Importance & Difficulty And in some cases:  Frequency: Actual & Should In addition, you should ask what you missed, by Lever, and a handful of other questions – such as normal demographics & Continue | Start | Stop. 43
  • 44. Performance Levers DIY | How To – Performance Lever Identification Look Familiar? Partner with Smart People with SAS, SPSS, or Minitab * to Crunch Data for Validity, as Needed* Of course, learning research methodology and statistics is STILL a viable option for the brave… 44 44
  • 45. Performance Levers DIY | How To – Best Practices Capture Performer Analysis Performance Lever Project SeriesPerformance Sales & Sales  Performer Analysis Lever Manager Alignment Selection  Sales & Sales Manager Selection  Performance Lever Identification  Best Practices Capture  Sales & Sales Manager TrainingSales & Sales Performance Manager Training Lever Identification  Performance Lever Alignment Best Practices Capture 45
  • 46. Performance Levers DIY | How To – Best Practices Capture Best Practices Capture Performer Analysis  WHAT: Document the best practices and differentiating behaviors of top performers, which can bePerformance Sales & Sales Lever Manager replicated and trained. Alignment Selection  HOW: Through discussion, interviews, focus groups and observation of the frontline sales reps and managers identified during Performer Analysis.Sales & Sales Manager Performance Lever  WHY: Training Identification To share best practices broadly and (re)design training around them. Best Practices Capture 46
  • 47. Performance Levers DIY | How To – Best Practices CaptureData Collection Methods Interviews  In-person, phone, webinar Focus Groups Getting the Straight Scoop  In-person, webinar  What really happens “out there”  Account for the Hawthorne effect Field Observation  Trust, truth and strict confidentiality  5-10 top performers  Autonomy, mastery and purpose *  3 average  2 in ninth decile  More, pending time, resources & budget * Thank you, Daniel Pink (author of Drive) 47
  • 48. Performance Levers DIY | How To – Sales & Sales Manager Training Performer Analysis Performance Lever Project SeriesPerformance Sales & Sales  Performer Analysis Lever Manager Alignment Selection  Sales & Sales Manager Selection  Performance Lever Identification  Best Practices Capture  Sales & Sales Manager TrainingSales & Sales Performance Manager Training Lever Identification  Performance Lever Alignment Best Practices Capture 48
  • 49. Performance Levers DIY | How To – Sales & Sales Manager Training Sales & Sales Manager Training Performer Analysis  WHAT: (Re)design sales and sales management training (learning systems) around your best practices.Performance Sales & Sales Lever Manager Ensure that your training includes the right Alignment Selection content and produces ethical, sustainable, high performance in the real world.  HOW: Develop courses and implement learning and transfer systems, incorporating what you’veSales & Sales Performance Manager Lever learned in this research. Training Identification  WHY: Best To improve training, further share best Practices practices, and improve work performance of Capture frontline sales reps and sales managers. 49
  • 50. Performance Levers DIY | How To – Sales & Sales Manager TrainingSales Training is the Easy Part Teach Position Performance Levers and Tasks!Teach sales reps: If new, yes, do onboarding and orientations, but then… Focus on the major Performance Levers Teach the Performance Lever Tasks Create and share Performance Support Share Knowledge but Focus on Behaviors & Skills Build-in extensive Transfer Plans Teach Them The Replicable Best Practices of Top Performers 50
  • 51. Performance Levers DIY | How To – Sales & Sales Manager TrainingAs You Develop Sales Manager Training, Remember… Frontline Sales Management is the Pivotal Role!Teach managers: What you teach reps (in advance) How to diagnose and identify issues with Performance Levers How to coach to improve levers (behavioral coaching) How to develop motivational action plans (management science) How to reinforce, reward, and manage performance NOTE: Other Lever – Reward managers for the above behaviors Teach Them To Get Results Through Others 51
  • 52. Performance Levers DIY | How To – Performance Lever Alignment Performer Analysis Performance Lever Project SeriesPerformance Sales & Sales  Performer Analysis Lever Manager Alignment Selection  Sales & Sales Manager Selection  Performance Lever Identification  Best Practices Capture  Sales & Sales Manager TrainingSales & Sales Performance Manager Training Lever Identification  Performance Lever Alignment Best Practices Capture 52
  • 53. Performance Levers DIY | How To – Performance Lever Alignment Performance Lever Alignment Performer Analysis  WHAT: Review policies, practices, processes, procedures, systems, compensations, and otherPerformance Sales & Sales Lever Manager organization factors. Alignment Selection  HOW: By sharing study results with other organizational leaders and discussing how you can best support the Performance Levers and Best Practices.Sales & Sales Performance Manager Lever If you have an OD team, get them involved. Training Identification  WHY: Best To align as many other organizational elements Practices as possible to support the performance levers Capture and best practices – to create an environment which supports sales success as much as possible. 53
  • 54. Performance Levers DIY | How To – Performance Lever AlignmentRecommended Initial Focus for Alignment Get sales compensation right – rely on experts, if needed Get out of the “Sales Prevention Business”  Ask frontline reps and managers, you’ll hear plenty to fix Eliminate restrictive policies designed for situations that occur once a quarter Conduct a Force Field Analysis* with top sales performers and sales managers – remove restraining forces first * Thank you, Kurt Lewin, for Force Field Analysis 54
  • 55. Case ExampleSales Performance Levers Applied to: B2B Financial Services Wholesale Mortgage Origination Channel Low Base | High Commission
  • 56. Case Example B2B Financial Services CompanyThe Business Situation and Problems Good growth rate – Wall Street darling Original team was doing very well (top 20% delivering 80% of production) New Hires struggling – annualized NH turnover was growing fast Sales training was one week in a classroom, all lecture There was no reinforcement, planned transfer or evaluation Reporting was fragmented, hard to interpret, not actionable The best of the new sales people were promoted into management, but… No management training and managers each managed their own way Coaching was rare Performance management was, “You did X last month. You need to do Y next month or you’ll be fired” If you had industry sales experience, wanted the job, and could fog a mirror, the job was yours Few understood the complex compensation system. 56 56
  • 57. Case Example B2B Financial Services CompanyChallenge from the President The President told our Performance Development team: “I believe in this group and what you were hired to do. But I want to be clear. If you can’t deliver on your promises about improving performance, you won’t be sitting at this table this time next year.” 57 57
  • 58. Case Example B2B Financial Services CompanyPerformance Projects Analysis of past and past results | current state | current results. (Point A) Discussion with senior management on strategic direction, goals and performance objectives. (Point B) Analysis of traits, habits, skills and practices of carefully selected Top, Middle and Low Performers… Individual Interviews | Multiple Surveys | Focus Groups | Observations “Hiring Right” project – what’s the “right stuff” for our roles? How do we hire, develop and promote people effectively? Process analysis and documentation review for possible Lean projects. Review of compensation and incentive programs and practices for sales. Review of sales management practices. Customer Interviews, Surveys, and Focus Groups. So, basically, we ran The Six Projects (and included customer feedback) 58 58
  • 59. Case Example B2B Financial Services CompanyHow We Created a Performance Enhancing System Vetted the analysis, identified the levers and communicated everywhere Created 3-week sales training curriculum for new hires (2 weeks remote + 1 week in class) – taught all levers, changed behaviors in class & certified All new managers went through the program and were certified Taught incumbent managers separately and certified Developed a coaching program for managers (and yes, certified them) Aligned comp, performance management and reporting/metrics Started work on the supporting levers Constant communication | monitoring with dashboard reports Quick feedback loops, performance hotline, adjusted course as needed Transitioned leaders to take ownership and accountability Top-down, C-level support was critical 59 59
  • 60. Case Example B2B Financial Services CompanySome Results Reduced average ramp-up time to minimum acceptable performance for newly-hired/trained reps from 6 months to 3 Increased average purchase from $156K to $167K Reduced turnover from 44% to 28% (new hire one-year from 78% to 24%) Increased size of “top producer” performers from 9% to 14% Increased New Customer “Stick Rate” (stat not available) Decreased “order” processing time by 16% Improved order pull-through from 47% to 54%But most importantly… $398MM Increase in Revenue  $9.9MM Increase in Net Profit  400% Training ROI 60 60
  • 61. Case Example B2B Financial Services CompanyReal-World Tips & “Gotchas” From This Case Analysis of traits, habits, skills and practices of carefully selected Top, Middle and Low Performers  Validate performer status closely: Especially rule out “inherited a great territory” and other factors that mask “earned” top-producer status Methods: Individual Interviews | Multiple Surveys | Focus Groups | Observations  You must see what they’re doing! Insert the Voice of the Customer – whenever possible: talk to them and listen! Be ruthless on process reviews. Streamline! Forget “sales experience.” Assess | Hire | Train | Develop Listen most closely to the real top producers, those moving up steadily, and superstar new hires who leap out of the gate Agree on what success looks like, with executives, upfront, and how it will be measured 61 61
  • 62. Appendix  Helpful Resources http://www.slideshare.net/MikeKunkle/aligning-performance-levers-for-breakthrough-sales-results-082011 Aligning Performance Levers For Breakthrough Sales Results
  • 63. . Performance Levers . . Helpful Resources . . .Analysis http://amzn.to/AnalyzingPerformanceProblems http://amzn.to/AnalysisImprovingPerformance http://bit.ly/FirstThingsFast http://www.nwlink.com/~donclark/analysis/analysis.html http://en.wikipedia.org/wiki/Human_performance_technology http://www.pignc-ispi.com/articles/Vol42_05_08.pdf http://www.ue295.com/xtranet/html/timeline/harless.html 63 63
  • 64. . Performance Levers . . Helpful Resources . . .SelectionFor those interested in exploring assessments, here are some unbiasededucational resources: http://www.uniformguidelines.com/index.html http://wdr.doleta.gov/opr/FULLTEXT/99-testassess.pdf http://www.shrm.org/about/foundation/research/Documents/assessment _methods.pdfAnd some companies to research: http://rocket-hire.com – Dr. Charles Handler evaluates vendors http://www.profilesinternational.com http://www.selfmgmt.com/en/default.aspx http://www.peopleanswers.com http://www.previsor.com http://www.thebrooksgroup.com http://www.objectivemanagementgroup.com 64 64
  • 65. . Performance Levers . . Helpful Resources . . .Performance Improvement http://bit.ly/Wallace6Pack http://bit.ly/BusinessProcessChange http://bit.ly/PerformanceConsultantsFieldbook http://amzn.to/HandbookImprovingPerformance http://amzn.to/HumanCompetence http://amzn.to/WhiteSpaceRevisited http://amzn.to/CompensatingTheSalesForce http://amzn.to/MgtPerformanceImprovementPlans http://amzn.to/TrainingAintPerformance http://amzn.to/FundamentalsPerformanceTechnology http://amzn.to/HandbookHPT http://amzn.to/HandbookHPT2 http://amzn.to/SeriousPerformanceConsulting http://amzn.to/PerformanceArchitecture 65 65
  • 66. . Performance Levers . . Helpful Resources . . .Best Practices http://amzn.to/MakingTheNumber ~ http://www.makingthenumber.com http://bit.ly/BestPracticeKnowledgeManagement http://bit.ly/IdentifyingOrgBestPractices http://www.csoinsights.com/sales-research-data http://www.csoinsights.com/Topics/Sales-Process-Best-Practices http://slidesha.re/BestPracticesWorldClassSalesSales Best Practices Research http://www.achieveglobal.com/resources/?cat=1 http://www.millerheiman.com/research_center/sales_best_practices_study /index.html http://www.huthwaite.com/en/Resource%20Center/Whitepapers.aspx https://sec.executiveboard.com/Public/Default.aspx http://www.salesbenchmarkindex.com http://salesmanagement.org 66 66
  • 67. . Performance Levers . . Helpful Resources . . .Sales & Sales Management Training http://www.scribd.com/doc/46526471/Basic-Instructional-Design-Principles http://www.esresearch.com http://bit.ly/MagerSixPack http://bit.ly/EvidencedBasedTraining http://bit.ly/JobAidsPerformanceSupport http://amzn.to/BeyondTransfer http://amzn.to/TheFourLevels http://amzn.to/MeasureTrainingResults http://www.ecsellinstitute.com/6-pillars-philosophy 67 67