Sales Performance: A Reality Check
Overview <ul><li>Introduction </li></ul><ul><ul><li>DePaul University </li></ul></ul><ul><ul><li>Center for Sales Leadersh...
Introduction
DePaul University <ul><li>Located in Chicago, IL </li></ul><ul><li>Largest Catholic university in  US </li></ul><ul><li>9 ...
Center for Sales Leadership <ul><li>Largest sales program in US </li></ul><ul><li>1 of 13 with undergrad program </li></ul...
Selling Environment
Drivers of Change Trailer and Dickie – Harvard Business Review – July/Aug - 2006 Elusive Decision  Makers <ul><li>35% - Me...
What is the impact? <ul><li>Technology has accelerated product  parity  in all categories </li></ul><ul><li>Sales force pe...
How are we doing? Accenture and The Forum Group, 2004 Even in high performing organizations, 56% of executives rate their ...
High Performing Sales Organizations
Performance Traits <ul><li>Prospecting skills </li></ul><ul><li>People skills </li></ul><ul><li>Clear climate </li></ul><u...
Prospecting Skills <ul><ul><ul><li>Higher on Finding and Winning Customers </li></ul></ul></ul><ul><ul><ul><li>Key is sale...
People Skills <ul><ul><ul><li>Higher on Strategy, Coaching, and Motivation </li></ul></ul></ul><ul><ul><ul><li>Key is mana...
Clear Climate <ul><ul><ul><li>Higher on Clarity, Commitment, Responsibility, Recognition </li></ul></ul></ul><ul><ul><ul><...
Nuts and Bolts Execution <ul><ul><ul><li>Higher on Everyday Execution </li></ul></ul></ul><ul><ul><ul><li>Key is managing ...
Best and Worst Practices <ul><li>Things That Are Good </li></ul><ul><ul><li>Building relationships </li></ul></ul><ul><ul>...
Management Challenges
Management Challenges <ul><li>Talent management </li></ul><ul><ul><li>Talent and training war </li></ul></ul><ul><ul><li>T...
Companies tell us they have… <ul><li>Limited talent pools </li></ul><ul><li>High recruiting and training costs </li></ul><...
A talent war is beginning… Median Age  of Work Force US. Bureau of Labor – Monthly Labor Review – November, 2007
over fewer replacements… US. Bureau of Labor – Monthly Labor Review – November, 2007 Companies will lose 40% of their seni...
… trends aren’t encouraging. <ul><li>Manpower ®  -  “ sales positions most difficult to fill ” </li></ul><ul><ul><li>Only ...
Talent Management <ul><li>Talent and Training War </li></ul><ul><ul><li>College education programs </li></ul></ul><ul><ul>...
Performance Metrics <ul><li>Overall revenue </li></ul><ul><li>Overall profitability </li></ul><ul><li>Calls, leads, prospe...
Technology Tools PROSPECTING CUSTOMER RELATIONSHIP MANAGMEMENT PERFORMANCE MOTIVATION COMPENSATION
Prospecting <ul><li>Higher on Finding and Winning New Customers </li></ul>Company business data Personal information and c...
Customer Relationship Management <ul><li>Higher on Everyday Execution </li></ul>Internet based on-demand data Lower capita...
Performance <ul><li>Higher on Strategy, Motivation and Coaching </li></ul>Internet based on-demand data Tied into corporat...
Motivation and Compensation YOU NEED  TO CHANGE YOUR ATTITUDE! IF YOU JUST HAD A DIFFERENT ATTITUDE  YOU (FILL IN THE BLANK)
Here’s it really works! MOTIVATION BEHAVIOR ATTITUDE
Motivation Changes Behavior <ul><li>Four Beliefs (+1)  Must Exist To Change Behavior  </li></ul><ul><li>Must feel reward i...
Motivation and Compensation <ul><li>Higher on Clarity, Commitment, Responsibility,  </li></ul><ul><li>and Recognition </li...
What’s in it for you?
Questions
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Sales Performance: A Reality Check

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presented by David Hoffmeister, Director of the DePaul University Center for Sales Excellence, at the TrueConnection 2008 Sales Performance Management Conference, hosted by Callidus Software

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Transcript of "Sales Performance: A Reality Check"

  1. 1. Sales Performance: A Reality Check
  2. 2. Overview <ul><li>Introduction </li></ul><ul><ul><li>DePaul University </li></ul></ul><ul><ul><li>Center for Sales Leadership </li></ul></ul><ul><li>Selling Environment </li></ul><ul><ul><li>Drivers of change </li></ul></ul><ul><ul><li>What is the impact? </li></ul></ul><ul><ul><li>How are we doing? </li></ul></ul><ul><li>High Performing Sales Organizations </li></ul><ul><ul><li>Performance traits </li></ul></ul><ul><ul><li>Best and worst practices </li></ul></ul><ul><li>Management Challenges </li></ul><ul><ul><li>Talent management </li></ul></ul><ul><ul><li>Performance metrics </li></ul></ul><ul><ul><li>Technology tools </li></ul></ul><ul><li>Questions </li></ul>
  3. 3. Introduction
  4. 4. DePaul University <ul><li>Located in Chicago, IL </li></ul><ul><li>Largest Catholic university in US </li></ul><ul><li>9 th largest private university in US </li></ul><ul><li>23,000 students overall </li></ul><ul><li>4,500 students in business </li></ul><ul><li>45% of students are racial minority </li></ul><ul><li>Top 10 MBA program ranking </li></ul>
  5. 5. Center for Sales Leadership <ul><li>Largest sales program in US </li></ul><ul><li>1 of 13 with undergrad program </li></ul><ul><li>1 of 3 with graduate program </li></ul><ul><li>600 students enrolled quarterly </li></ul><ul><li>175 graduates each year </li></ul><ul><li>Partner with major firms </li></ul><ul><li>Deep faculty expertise </li></ul>
  6. 6. Selling Environment
  7. 7. Drivers of Change Trailer and Dickie – Harvard Business Review – July/Aug - 2006 Elusive Decision Makers <ul><li>35% - Meeting </li></ul><ul><li>42% - Presentation </li></ul><ul><li>18% - Actual Sale </li></ul>Divergent Sales Cycles <ul><li>New sales cycle </li></ul><ul><li>Enter in mid-cycle </li></ul><ul><li>Buyer informed </li></ul>High Level Skill Sets <ul><li>Higher quotas </li></ul><ul><li>More reports </li></ul><ul><li>Less support </li></ul>Instant Information Availability <ul><li>Information glut </li></ul><ul><li>Info asymmetrical </li></ul><ul><li>Transfer of power </li></ul>
  8. 8. What is the impact? <ul><li>Technology has accelerated product parity in all categories </li></ul><ul><li>Sales force performance is often the only competitive advantage </li></ul><ul><li>Sales force performance is often the only customer value </li></ul>
  9. 9. How are we doing? Accenture and The Forum Group, 2004 Even in high performing organizations, 56% of executives rate their sales force as mediocre !
  10. 10. High Performing Sales Organizations
  11. 11. Performance Traits <ul><li>Prospecting skills </li></ul><ul><li>People skills </li></ul><ul><li>Clear climate </li></ul><ul><li>Nuts and bolts </li></ul>The Forum Corporation - 2004 Research Report
  12. 12. Prospecting Skills <ul><ul><ul><li>Higher on Finding and Winning Customers </li></ul></ul></ul><ul><ul><ul><li>Key is sales person’s ability to expand “turf” </li></ul></ul></ul>The Forum Corporation - 2004 Research Report
  13. 13. People Skills <ul><ul><ul><li>Higher on Strategy, Coaching, and Motivation </li></ul></ul></ul><ul><ul><ul><li>Key is managers’ analytical and people skills </li></ul></ul></ul>The Forum Corporation - 2004 Research Report
  14. 14. Clear Climate <ul><ul><ul><li>Higher on Clarity, Commitment, Responsibility, Recognition </li></ul></ul></ul><ul><ul><ul><li>Key is climate of clear expectations tied to rewards </li></ul></ul></ul>The Forum Corporation - 2004 Research Report
  15. 15. Nuts and Bolts Execution <ul><ul><ul><li>Higher on Everyday Execution </li></ul></ul></ul><ul><ul><ul><li>Key is managing opportunities and strategic accounts Poor in managing info systems (CRM) </li></ul></ul></ul>The Forum Corporation - 2004 Research Report
  16. 16. Best and Worst Practices <ul><li>Things That Are Good </li></ul><ul><ul><li>Building relationships </li></ul></ul><ul><ul><li>Strategic account management </li></ul></ul><ul><ul><li>Dedicate, passionate, committed </li></ul></ul><ul><ul><li>Responsible and accessible </li></ul></ul><ul><li>Things That Need Improvement </li></ul><ul><ul><li>Effective use of CRM </li></ul></ul><ul><ul><li>Better recruiting, bench strength </li></ul></ul><ul><ul><li>Better able to apply technology </li></ul></ul><ul><ul><li>Better training in selling value and solutions </li></ul></ul>The Forum Corporation - 2004 Research Report
  17. 17. Management Challenges
  18. 18. Management Challenges <ul><li>Talent management </li></ul><ul><ul><li>Talent and training war </li></ul></ul><ul><ul><li>Turnover and retention </li></ul></ul><ul><li>Performance metrics </li></ul><ul><ul><li>Existing business </li></ul></ul><ul><ul><li>New Business </li></ul></ul><ul><li>Technology Tools </li></ul><ul><ul><li>Leveraging technology </li></ul></ul><ul><ul><li>What’s in it for you? </li></ul></ul>“ Understanding What Your Sales Manager Is Up Against” Trailer and Dickie – Harvard Business Review – July/Aug - 2006
  19. 19. Companies tell us they have… <ul><li>Limited talent pools </li></ul><ul><li>High recruiting and training costs </li></ul><ul><li>Excessive and costly turnover </li></ul><ul><li>Lack of racial and ethnic diversity </li></ul>DePaul University Corporate Interviews 2004-2005
  20. 20. A talent war is beginning… Median Age of Work Force US. Bureau of Labor – Monthly Labor Review – November, 2007
  21. 21. over fewer replacements… US. Bureau of Labor – Monthly Labor Review – November, 2007 Companies will lose 40% of their senior talent % Change in Labor Force (2006-20016) Inadequate to replace needed talent
  22. 22. … trends aren’t encouraging. <ul><li>Manpower ® - “ sales positions most difficult to fill ” </li></ul><ul><ul><li>Only 43% of firms have formal training program* </li></ul></ul><ul><li>On-boarding costs often exceed $20,000* </li></ul><ul><ul><li>Investment to B/E ranges from $35,000-$200,000* </li></ul></ul><ul><li>25% of firms report turnover greater than 20%* </li></ul><ul><ul><li>Each turnover costs average $67,700* (w/o lost sales) </li></ul></ul>*DePaul University Omnibus Survey 2006-2007
  23. 23. Talent Management <ul><li>Talent and Training War </li></ul><ul><ul><li>College education programs </li></ul></ul><ul><ul><li>Lower time to break-even (30% faster) </li></ul></ul><ul><ul><li>Higher retention (40% longer) </li></ul></ul><ul><li>Turnover and Retention </li></ul><ul><ul><li>Train at every career stage </li></ul></ul><ul><ul><li>Provide clarity of task and compensation </li></ul></ul><ul><ul><li>Manage individuals one at a time </li></ul></ul>
  24. 24. Performance Metrics <ul><li>Overall revenue </li></ul><ul><li>Overall profitability </li></ul><ul><li>Calls, leads, prospects </li></ul><ul><li>Pipeline management </li></ul><ul><li>New account growth </li></ul><ul><li>Existing account growth </li></ul>
  25. 25. Technology Tools PROSPECTING CUSTOMER RELATIONSHIP MANAGMEMENT PERFORMANCE MOTIVATION COMPENSATION
  26. 26. Prospecting <ul><li>Higher on Finding and Winning New Customers </li></ul>Company business data Personal information and contacts Industry information and profiles Selling information section Integrated with SalesForce.com
  27. 27. Customer Relationship Management <ul><li>Higher on Everyday Execution </li></ul>Internet based on-demand data Lower capital and maintenance cost Tied into corporate database with live feed Large software library on AppExchange
  28. 28. Performance <ul><li>Higher on Strategy, Motivation and Coaching </li></ul>Internet based on-demand data Tied into corporate database with live feed Correlates performance and behavior Integrated with SalesForce.com
  29. 29. Motivation and Compensation YOU NEED TO CHANGE YOUR ATTITUDE! IF YOU JUST HAD A DIFFERENT ATTITUDE YOU (FILL IN THE BLANK)
  30. 30. Here’s it really works! MOTIVATION BEHAVIOR ATTITUDE
  31. 31. Motivation Changes Behavior <ul><li>Four Beliefs (+1) Must Exist To Change Behavior </li></ul><ul><li>Must feel reward is desirable </li></ul><ul><li>Must believe it is tied to performance </li></ul><ul><li>Must believe it is achievable </li></ul><ul><li>Must understand exactly and easily </li></ul><ul><li>Must continually reinforce </li></ul>
  32. 32. Motivation and Compensation <ul><li>Higher on Clarity, Commitment, Responsibility, </li></ul><ul><li>and Recognition </li></ul>Provides timely clarity to sales force Flexibility to change plans mid-stream Rapid forecasting and analysis Integrated with SalesForce.com and SAP
  33. 33. What’s in it for you?
  34. 34. Questions

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