Aligning Sales Performance Levers - Profiles Intl Version 091611
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Aligning Sales Performance Levers - Profiles Intl Version 091611

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This is a version of my "Aligning Performance Levers" presentation, delivered at the 2011 Profiles International Client Summit in Dallas TX on 09/16/11. See http://slidesh.re/PerfLevers082011 for the ...

This is a version of my "Aligning Performance Levers" presentation, delivered at the 2011 Profiles International Client Summit in Dallas TX on 09/16/11. See http://slidesh.re/PerfLevers082011 for the standard presentation.

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  • Hi Todd, I thought I was signed up to get emails about comments but I guess not, because I am just seeing this two weeks after you were kind enough to say thanks. Sorry about the painfully slow response, Todd. I appreciate the kind words and sincerely hope you find it helpful. If I can ever answer questions or you want to trade ideas, reach out at mike_kunkle at mindspring dotcom or let's get connected at http://bit.ly/InviteMike-LinkedIn. Thanks again, Mike
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  • Thanks Mike....Helps us find the path. Great stuff...Need to review it in more depth. Thanks again. Todd
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Aligning Sales Performance Levers - Profiles Intl Version 091611 Aligning Sales Performance Levers - Profiles Intl Version 091611 Presentation Transcript

  • 2011 CLIENT SUMMITBuilding Organizations with Strategic Sustainability Aligning Performance Levers For Breakthrough Sales Results Mike Kunkle September 16, 2011
  • Performance LeversThe PlanAgenda Overview: – Background, Definition, Six-Project Approach, Why It’s Worth the Effort Walk-through of the Six Projects Case Example Appendix: Helpful Resources “Everybodys got plans... until they get hit.” Mike Tyson 2
  • Performance LeversOverview | DefinitionA sad but true tale “Karen, we need sales training!” Karen reviews sales training. 3
  • Performance LeversOverview | DefinitionA sad but true tale Karen selects sales training. Note: Miller Heiman is a fine company. This is an example. It is not meant as an endorsement nor a condemnation. 4
  • Performance LeversOverview | DefinitionA sad but true tale Karen delivers sales training. Training Expenses 5
  • Performance LeversOverview | DefinitionA sad but true tale “Karen, what happened!?” 6
  • Performance Levers Overview | Definition A sad but true tale A XeroxAccording to a Sales Performance International study, most sales professionals forget at least study “Karen, what happened!?”50% of what they learned in training programs in less than five weeks. For over 44% of 6,000 showed sales professionals surveyed, they forget in less than one month. Further, salespeople only remember 16% of content from sales training workshops after only 90 days. that 87% of the knowledge According to ES Research Group, 85% of learned in sales training results in no long-term sales training is impact in performance. lost within 12 weeks. A study at Columbia University found that up to 95% of what is taught in training programs is wasted through a failure to Something has to change! transfer learning to the workplace. 7
  • Performance LeversOverview | Definition PerformanceAn alternative Lever Alignment Performer Organization Analysis FunctionPerformance Sales & Sales Lever Manager Alignment Selection Position The Six Performance Lever Projects TaskSales & Sales Performance Manager Lever Training Identification Real Sales Best Practices Performance Capture Improvement 8
  • Performance LeversOverview | 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 SettingCompetencies 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
  • Performance LeversOverview | Definition Imagine an 8-cylinder engine, firing on all 8 cylinders. 1 8 2 7 3 6 4 5 10
  • Performance LeversOverview | Definition What happens if it’s only firing on 4 cylinders? 1 8 2 7 3 6 4 5 11
  • Performance LeversOverview | Definition What if more than one system isn’t working well? System 1 • Engine System 2 • Drive Train 12
  • Performance LeversOverview | Definition How is this different in organizations? System 1 Hiring System 2 Learning & Development System 3 Compensation System 4 Sales Process System 5 Coaching | Management System #... And more… 13
  • Performance LeversOverview | Definition How is this different in organizations? It’s Not! 14
  • 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
  • Performance Levers O FOverview | Definition P TSales 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
  • Performance Levers O FOverview | Definition P TWhere 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)All logical… but these days, to get started… 17
  • Performance Levers O FOverview | Definition P T…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
  • Performance Levers O FOverview | Definition P TSelection + 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
  • Performance Levers O FOverview | Definition P TWhat 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 Competencies  Agree on a hypothesis Sourcing| 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
  • Performance LeversOverview | 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
  • Performance Levers . . . Overview | Definition – The Six Projects . . . The Six Performance Lever Projects Performer Analysis  Performer Analysis  Sales & Sales Manager SelectionPerformance Lever Sales & Sales Manager  Performance Lever Identification Alignment Selection  Best Practices Capture  Sales & Sales Manager Training  Performance Lever AlignmentSales & Sales Performance Manager Lever Training Identification Best Practices Capture 22
  • Performance LeversOverview – 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
  • Performance LeversOverview – 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
  • Thanks for Reading! Next up: “DIY | How To” with The Six Projects Mike Kunklehttp://www.linkedin.com/in/mikekunkle http://bit.ly/InviteMike-LinkedInmike_kunkle@mindspring.com
  • Performance Levers . . . DIY | How To - The Six Projects . . . The Six Performance Lever Projects Performer Analysis  Performer Analysis  Sales & Sales Manager SelectionPerformance Lever Sales & Sales Manager  Performance Lever Identification Alignment Selection  Best Practices Capture  Sales & Sales Manager Training  Performance Lever AlignmentSales & Sales Performance Manager Lever Training Identification Best Practices Capture 26
  • Performance Levers . . . DIY | How To - Performer Analysis . . . The Six Performance Lever Projects Performer Analysis  Performer Analysis  Sales & Sales Manager SelectionPerformance Lever Sales & Sales Manager  Performance Lever Identification Alignment Selection  Best Practices Capture  Sales & Sales Manager Training  Performance Lever AlignmentSales & Sales Performance Manager Lever Training Identification Best Practices Capture 27
  • Performance Levers . . . DIY | How To - Performer Analysis . . . Performer Analysis Performer  WHAT: Analysis Identify top, average & low producing sales reps.Performance Sales & Sales Identify top, average & low producing sales Lever Manager Alignment Selection managers.  HOW: Analyze a year of sales data & create a weighted scoring system across multiple metrics/products.Sales & Sales Performance Some discussion & surveys with managers. Manager Lever Training Identification  WHY: Provides a mix of performers to study in various Best Practices ways, to determine true differentiating factors. Capture 28
  • Performance Levers . . . DIY | How To - Performer Analysis . . . Example 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) 29
  • Performance Levers . . .DIY | How To - Performer Analysis . . .Example 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. 30
  • Performance Levers . . .DIY | How To - Performer Analysis . . .Example of Analysis – Sales Reps Low High 4th Quartile Mean Avg. Sort Descending Median Highlight 4th Quartile Apply Weighting Repeat & Total 31
  • Performance Levers . . .DIY | How To - Performer Analysis . . .Example of Analysis – Sales Reps Low High 4th Quartile Mean Avg. Sort Descending Median Highlight 4th Quartile Apply Weighting Repeat & Total 32
  • Performance Levers . . .DIY | How To - Performer Analysis . . .Example 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” 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… 34
  • Performance Levers . . . DIY | How To - Sales & Manager Selection . . . The Six Performance Lever Projects Performer Analysis  Performer Analysis  Sales & Sales Manager SelectionPerformance Lever Sales & Sales Manager  Performance Lever Identification Alignment Selection  Best Practices Capture  Sales & Sales Manager Training  Performance Lever AlignmentSales & Sales Performance Manager Lever Training Identification Best Practices Capture 35
  • Performance Levers . . . DIY | How To - Sales & Manager Selection . . . Sales & Sales Manager Selection Performer  WHAT: Analysis Psychometric assessments that measure thinking styles, behavioral traits and interest.Performance Sales & Sales Lever Manager  HOW: Alignment Selection Online, using the PXT or PSA.  WHY: The assessments will help you identify hiring competencies. You can identify statistically validatedSales & Sales Performance Manager Lever performance models that predict success, Training Identification based on your top performers. You can use the results to further develop & Best coach your current leaders. Practices Capture You can better identify future leaders, who are like your very best today. 36
  • Performance Levers . . .DIY | How To - Sales & Manager Selection . . .Methods 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. 37
  • Performance Levers . . .DIY | How To - Sales & Manager Selection . . .Psychometric Assessments Thinking | Cognitive Factors One-third of the Behavioral Traits Hiring Decision Occupational InterestsGet it right: Normative vs. Ipsative Exactly what PI Focus on Predictive Validity Recommends Use the same Performer Categories from your other Analysis – Compare top | middle | bottom - look for differentiating factors Hire, develop and promote based on those factors, as well as performance data (whenever possible) 38
  • Performance Levers . . . DIY | How To - Performance Lever Identification . . . The Six Performance Lever Projects Performer Analysis  Performer Analysis  Sales & Sales Manager SelectionPerformance Lever Sales & Sales Manager  Performance Lever Identification Alignment Selection  Best Practices Capture  Sales & Sales Manager Training  Other Performance Lever AlignmentSales & Sales Performance Manager Lever Training Identification Best Practices Capture 39
  • Performance Levers . . . DIY | How To - Performance Lever Identification . . . Performance Lever Identification Performer  WHAT: Analysis Identify the knowledge, skills, behaviors or conditions that must exist for ethical, sustained,Performance Sales & Sales high performance to occur. Lever Manager Alignment Selection Formulate hypotheses about what the levers are for frontline sales and sales management roles. Confirm and validate the levers through research.Sales & Sales Performance  HOW: Manager Lever Through discussion, surveys, interviews, focus Training Identification groups, and observation of frontline sales reps and their managers. Best Practices Capture  WHY: This will confirm where to focus your efforts capturing Best Practices, which provides training content. 40
  • Performance Levers . . .DIY | How To - Performance Lever Identification . . .Formulating 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 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 42
  • Performance Levers . . .DIY | How To - Performance Lever Identification . . .Survey Design Clearly define Performance Lever Define the role Add instructions for completing the survey 43
  • Performance Levers . . .DIY | How To - Performance Lever Identification . . .Survey Design 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. 44
  • Performance Levers . . .DIY | How To - Performance Lever Identification . . . Partner with Smart People with SAS, SPSS, or Minitab * to Crunch Data for Validity, as Needed Look Familiar? * Of course, learning research methodology and statistics is STILL a viable option for the brave… 45
  • Performance Levers . . . DIY | How To - Best Practices Capture . . . The Six Performance Lever Projects Performer Analysis  Performer Analysis  Sales & Sales Manager SelectionPerformance Lever Sales & Sales Manager  Performance Lever Identification Alignment Selection  Best Practices Capture  Sales & Sales Manager Training  Performance Lever AlignmentSales & Sales Performance Manager Lever Training Identification Best Practices Capture 46
  • Performance Levers . . . DIY | How To - Best Practices Capture . . . Best Practices Capture Performer  WHAT: Analysis Document the best practices and differentiating behaviors of top performers, which can bePerformance Sales & Sales replicated and trained. Lever Manager Alignment Selection  HOW: Through discussion, interviews, focus groups and observation of the frontline sales reps and managers identified during Performer Analysis.Sales & Sales Performance  WHY: Manager Lever To share best practices broadly and (re)design Training Identification training around them. Best Practices Capture 47
  • Performance Levers . . .DIY | How To - Best Practices Capture . . .Data 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 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) 48
  • Performance Levers . . . DIY | How To - Sales & Sales Manager Training . . . The Six Performance Lever Projects Performer Analysis  Performer Analysis  Sales & Sales Manager SelectionPerformance Lever Sales & Sales Manager  Performance Lever Identification Alignment Selection  Best Practices Capture  Sales & Sales Manager Training  Performance Lever AlignmentSales & Sales Performance Manager Lever Training Identification Best Practices Capture 49
  • Performance Levers . . . DIY | How To - Sales & Sales Manager Training . . . Sales & Sales Manager Training Performer  WHAT: Analysis (Re)design sales and sales management training (learning systems) around your best practices.Performance Sales & Sales Ensure that your training includes the right Lever Manager 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 learned in this research. Manager Lever Training Identification  WHY: To improve training, further share best Best Practices practices, and improve work performance of Capture frontline sales reps and sales managers. 50
  • Performance Levers . . .DIY | How To - Sales & Sales Manager Training . . .Sales 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 PlansTeach the Replicable Best Practices of Top Performers 51
  • Performance Levers . . .DIY | How To - Sales & Sales Manager Training . . .As You Develop Sales Manager Training, Remember… Frontline Sales Management is the Pivotal Role!Teach managers: What you teach reps (in advance) and how to train them 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: It’s another lever, but reward managers for the above Teach Them To Get Results Through Others 52
  • Performance Levers . . . DIY | How To - Performance Lever Alignment . . . The Six Performance Lever Projects Performer Analysis  Performer Analysis  Sales & Sales Manager SelectionPerformance Lever Sales & Sales Manager  Performance Lever Identification Alignment Selection  Best Practices Capture  Sales & Sales Manager Training  Performance Lever AlignmentSales & Sales Performance Manager Lever Training Identification Best Practices Capture 53
  • Performance Levers . . . DIY | How To - Performance Lever Alignment . . . Performance Lever Alignment Performer  WHAT: Analysis Review policies, practices, processes, procedures, systems, compensations, and otherPerformance Sales & Sales organization factors. Lever Manager 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 If you have an OD team, get them involved. Manager Lever Training Identification  WHY: To align as many other organizational elements Best Practices as possible to support the performance levers Capture and best practices – to create an environment which supports sales success as much as possible. 54
  • Performance Levers . . .DIY | How To - Performance Lever Alignment . . .Recommended Initial Focus for Lever 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 55
  • Thanks for Reading! Next up: Case Example & Suggestions Mike Kunklehttp://www.linkedin.com/in/mikekunkle http://bit.ly/InviteMike-LinkedInmike_kunkle@mindspring.com
  • Case ExampleB2B Financial Services CompanySales Performance Levers Applied to: B2B Financial Services Wholesale Mortgage Origination Channel Low Base | High Commission
  • Case ExampleB2B 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. 58
  • Case ExampleB2B 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.” 59
  • Case ExampleB2B 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). 60
  • Case ExampleB2B Financial Services CompanyWe 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) 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. 61
  • Case ExampleB2B 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 62
  • Case ExampleB2B 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. 63
  • Thanks for Reading! Next up: Helpful Resources Mike Kunklehttp://www.linkedin.com/in/mikekunkle http://bit.ly/InviteMike-LinkedInmike_kunkle@mindspring.com
  • Appendix  Helpful Resources  . . .Aligning Performance Levers For Breakthrough Sales Results . . .
  • 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 66
  • Performance Levers . . .Helpful Resources . . .Selection | Psychometric AssessmentsFor those interested in further exploring assessments, you’re at the rightplace. Here are some non-partisan, educational resources: http://www.uniformguidelines.com/index.html http://wdr.doleta.gov/opr/FULLTEXT/99-testassess.pdf http://www.shrm.org/about/foundation/research/Documents/assessmen t_methods.pdf http://rocket-hire.comAnd the assessment company I obviously recommend: http://www.profilesinternational.com A Fun, True Story: I started in Feb 2011 at my current company. They didn’t just want me to just “pick” Profiles, based on my past experience, without additional due diligence. So we reviewed 8 vendors, ruled 5 out after an interview and review of methodology. We did 3 RFPs, 3 presentations, and a second presentation with the final 2 vendors. Our 5-person committee unanimously selected Profiles International. 67
  • 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 68
  • 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/i ndex.html http://www.huthwaite.com/en/Resource%20Center/Whitepapers.aspx https://sec.executiveboard.com/Public/Default.aspx http://www.salesbenchmarkindex.com http://salesmanagement.org 69
  • 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 70
  • 2011 CLIENT SUMMIT Building Organizations with Strategic Sustainability Thanks for Reading! Let’s get connected and share ideas. Mike Kunklehttp://www.linkedin.com/in/mikekunkle http://bit.ly/InviteMike-LinkedIn http://about.me/mike_kunklemike_kunkle@mindspring.com 214.494.9950mike.kunkle@inspherehq.com 817.255.3213