The 6 Pillars of Sales Productivity
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The 6 Pillars of Sales Productivity

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This is an overview of a webinar sponsored by the EcSell Institute and LucidEra. It focuses on the 6 Pillars of Sales Productivity and the importance of measurement to sales success in this......

This is an overview of a webinar sponsored by the EcSell Institute and LucidEra. It focuses on the 6 Pillars of Sales Productivity and the importance of measurement to sales success in this difficult economy.

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  • 1. Today’s webinar: 6 Pillars of Sales Productivity T he drivers that maximize productivity in sales management. Brought to you by:
  • 2. Today’s Presenter Bill Eckstrom Founder, President/CEO EcSELL Institute
  • 3. Today’s Presenter Ken Rudin Founder, VP of Market Development LucidEra
  • 4. Talent Identification & Acquisition Sales Methodology & Sales Skills Development Professional Development Planning Compensation/Recognition/Rewards Analytics The 6 Pillars A set of guiding ideologies that command the attention, development and activity of those in sales management. Source: EcSELL Institute
  • 5. Talent Identification & Acquisition Sales Methodology & Skills Development Professional Development Planning Compensation/Recognition/Reward Analytics The 6 Pillars A set of guiding ideologies that command the attention, development and activity of those in sales management. Source: EcSELL Institute 65% believe there is nothing more that drives productivity in sales Source: EcSELL Institute
  • 6. Talent Identification & Acquisition Sales Methodology & Sales Skills Development Professional Development Planning Compensation/Recognition/Reward Analytics Leadership and Management The 6 Pillars Source: EcSELL Institute It is how one leads and manages that will ultimately affect the success within each Pillar
  • 7. Talent Identification & Acquisition
    • Defined as:
    • Proper identification and hiring of the right talent to meet and exceed sales department objectives
    • Proper identification and acquisition
    • leads to:
      • Shorter ramp up times
      • Increases sales
      • Reduced turnover
    Talent Identification & Acquisition
  • 8. Talent Plus Case Study Changing the selection method and interviewing process lead to: - 10% increase in revenue - 50% reduction in turnover Results within a single year! Source: Talent Plus
  • 9. Caliper Research: Costs on average $60K per person turned. 40 producers X 20% average turnover = 8 turns per year 8 turns X 60K = $480,000 in loss/yr Reduction in turnover rate to 10% saves $240,000!
  • 10. Talent Identification & Acquisition EcSELL Institute Research indicates: 67% Sales managers rate this Pillar as “ extremely strong ” when referring to impact on sales production. Source: EcSELL Institute
  • 11. Talent Identification & Acquisition EcSELL Institute Research indicates: 67% Sales managers rate this Pillar as “ extremely strong ” when referring to impact on sales production. Source: EcSELL Institute Only 7% rate their Sales Managers skills sets as “extremely strong” in this area
  • 12. What you can do:
    • Take control of all aspects of identifying and acquiring the right sales talent
  • 13. What you can do:
    • Take control of all aspects of identifying and acquiring the right sales talent
    • Identify your top internal recruiter(s) in the sales department and make them accountable for filling positions
  • 14. What you can do:
    • Take control of all aspects of identifying and acquiring the right sales talent
    • Identify your top internal recruiter(s) in the sales department and make them accountable for filling sales positions
    • Make sure all sales managers have a list of potential recruits
  • 15. What you can do:
    • Take control of all aspects of identifying and acquiring the right sales talent
    • Identify your top internal recruiters in the sales department and make them accountable for filling sales positions
    • Make sure all sales managers have a list of potential recruits
    • Develop a partnership with a company that specializes in finding the right sales talent
  • 16. What you can do:
    • Take control of all aspects of identifying and acquiring the right sales talent
    • Identify your top internal recruiter(s) in the sales department and make them accountable for filling sales positions
    • Make sure all sales managers have a list of potential recruits
    • Develop a partnership with a company that specializes in finding the right sales talent.
    • Compare with others
  • 17. What you can do:
    • Take control of all aspects of identifying and acquiring the right sales talent
    • Identify your top internal recruiter(s) in the sales department and make them accountable for filling sales positions
    • Make sure all sales managers have a list of potential recruits
    • Develop a partnership with a company that specializes in finding the right sales talent.
    • Compare with others
    • Measure your outcomes
        • Average time territories are vacant
        • Turnover rate
        • Time to quota
  • 18. Planning
    • Defined as:
    • The ability to create documents
    • that encompass all that is vital to
    • success in a sales organization
    • Mapping your goals and strategy
    • is critical to success.
    Planning
  • 19. Stanford University Study 5X more likely to achieve something if it is written down! 500% increase! Source: Stanford University
  • 20. EcSELL Institute Research indicates: 10% Consider their sales management team as “ extremely strong ” in the area of PLANNING 51% Consider their sales management team as “ neutral to very weak ” in the area of PLANNING
  • 21. University of Waterloo, Canada Research Experience Territory Individual ability $ $$ $$$ Stretch Goal! A stretch goal that is tiered with attached bonuses and set according to individual ability outperforms single stretch goals. Source: University of Waterloo, Canada October 2006
  • 22. University of Waterloo, Canada Research Experience Territory Individual ability $ $$ $$$ Stretch Goal! A stretch goal that is tiered with attached bonuses and set according to individual ability outperforms single stretch goals. Source: University of Waterloo, Toronto, Canada October 2006 The tiered goal participants outperformed the single stretch goal in each period measured, despite the fact the single stretch goal was 14% lower!
  • 23. University of Waterloo, Toronto Canada Research Experience Territory Individual ability $ $$ $$$ Stretch Goal! A stretch goal that is tiered with attached bonuses and set according to individual ability outperforms single stretch goals. Source: University of Waterloo, Toronto, Canada October 2006 Individually tailored stretch goals , with attainment tiers , may be a more effective means of motivating higher efforts and performance.
  • 24. What you can do…
    • Obtain sales and territory plans from colleagues in other organizations/industries
  • 25. What you can do…
    • Obtain sales and territory plans from colleagues in other organizations/industries
    • Create and share annual sales plans with all those in sales management
  • 26. What you can do…
    • Obtain sales and territory plans from colleagues in other organizations/industries
    • Create and share annual sales plans with all those in sales management
    • All those involved in sales management and production should create a plan
  • 27. What you can do…
    • Obtain sales and territory plans from colleagues in other organizations/industries
    • Create and share annual sales plans with all those in sales management
    • All those involved in sales management and production should create a plan
    • Have sales management plans encompass all the Pillars
  • 28. What you can do…
    • Obtain sales and territory plans from colleagues in other organizations/industries
    • Create and share annual sales plans with all those in sales management
    • All those involved in sales management and production should create a plan
    • Have sales management plans encompass all the Pillars
    • Consider customizing goals to the individual’s ability
  • 29. What you can do…
    • Obtain sales and territory plans from colleagues in other organizations/industries
    • Create and share annual sales plans with all those in sales management
    • All those involved in sales management and production should create a plan for their respective territory
    • Have sales management plans encompass all the Pillars
    • Consider customizing goals to the individual’s ability
    • Be selective in what you are changing/adding. Let metrics direct change
  • 30. Professional Development Defined as: Meeting the individual needs of those in the sales department in order to increase productivity and retention of your team. Professional Development
  • 31. Professional Development Ask yourself: Do you know all those who aspire to other positions? Do you know what producers will make great mangers or leaders? Do you have programming in place to grow those skills? Do you provide programming to further develop the skills of your sales managers? Professional Development
  • 32. CSO Insights Research Less than 10% of companies have programming in place to develop the skills of their sales mangers. 10% have programming Source: CSO Insights
  • 33. There is gap between what sales managers perceive and what science shows! 38% Believe that Professional Development has a “ very strong” impact on productivity Source: EcSELL Institute “ Professional Development has a strong correlation to retention and productivity” Source: Curt Coffman
  • 34. What you can do…
    • Understand your team’s professional goals--document
  • 35. What you can do…
    • Understand your team’s professional goals--document
    • Provide C/E for all levels within the sales organization
  • 36. What you can do…
    • Understand your team’s professional goals--document
    • Provide C/E for all levels within the sales organization
    • Develop a culture that shows C/E is not a single annual event
  • 37. What you can do…
    • Understand your team’s professional goals--document
    • Provide C/E for all levels within the sales organization
    • Develop a culture that shows C/E is not a single annual event
    • Limit C/E to only that which leads to increased production
  • 38. What you can do…
    • Understand your team’s professional goals--document
    • Provide C/E for all levels within the sales organization
    • Develop a culture that shows C/E is not a single annual event
    • Limit C/E to only that which leads to increased production
    • Compare with others
  • 39. What you can do…
    • Understand your team’s professional goals--document
    • Provide C/E for all levels within the sales organization
    • Develop a culture that shows C/E is not a single annual event
    • Limit C/E to only that which leads to increased production
    • Compare with others
    • Provide feedback on what you can prove to be their development needs
  • 40. Compensation, Recognition & Rewards Defined as: The understanding and design of programs that not only drive and incent the proper behaviors, but also meet the evolving demographic and psychographic needs of your sales department. Compensation/Recognition/Rewards
  • 41. EcSELL Institute Research indicates: 87% Respondents believe “ very strongly or strongly ” that the right Compensation/Recognition/Reward has a direct impact on sales productivity 47% Respondents believe that their sales management team is “ very strong or strong” in this area Source: EcSELL Institute Research, 2009
  • 42. What you can do…
    • Use common sense – align incentives to behaviors and objectives
  • 43. What you can do…
    • Use common sense – align incentives to behaviors and objectives
    • Make sure the sales team has an understanding of how plans work
  • 44. What you can do…
    • Use common sense – align incentives to behaviors and objectives
    • Make sure the sales team has a complete understanding of how plans work
    • Annual review – 72% change sales compensation programs annually
  • 45. What you can do…
    • Use common sense – align incentives to behaviors and objectives
    • Make sure the sales team has a complete understanding of how plans work
    • Annual review – 72% change sales compensation programs annually
    • Compare with others
  • 46. What you can do…
    • Use common sense – align incentives to behaviors and objectives
    • Make sure the sales team has a complete understanding of how plans work
    • Annual review – 72% change sales compensation programs annually
    • Compare with others
    • Graphically show each of them how they can achieve income objectives and provide monthly statements on progress
  • 47. Sales Methodology and Sales Skill Development
    • Methodology defined as “ how you sell ”
    • Sales Skills defined as “ how well
    • you perform the methods ”
      • Prospecting
      • Needs analysis
      • Presentation aptitude
      • Proposals development
      • Recognize the need to partner
      • with other departments
    Sales Methodology & Sales Skill Development
  • 48. Sales Methodology and Sales Skill Development
    • Methodology defined as “ how you sell ”
    • Sales Skills defined as “ how well
    • you perform the methods ”
      • Prospecting
      • Needs analysis
      • Presentation aptitude
      • Proposals development
      • Recognize the need to partner
      • with other departments
    Just because they can do it doesn’t mean they are good at it. Train and measure!
  • 49. Harvard Business Review research: The New Science of Sales Productivity Source: Harvard Business Review
  • 50. Source: Harvard Business Review Breaking producer results down further: Top quartile 6% increase Second quartile 59% increase Third quartile 77% increase Bottom quartile 149% increase Source: Harvard Business Review Harvard Business Review research:
  • 51. Source: Harvard Business Review Another study showed similar results: Top quartile 2% increase Second quartile 33% increase Third quartile 54% increase Bottom quartile 44% increase Source: Harvard Business Review Harvard Business Review research:
  • 52. What you can do:
    • Dedicate C/E time to developing product/market knowledge and sales skills
  • 53. What you can do:
    • Dedicate C/E time each week developing product/market knowledge and sales skills
    • Figure out if there are other needs (negotiation skills, time management etc.)
  • 54. What you can do:
    • Dedicate C/E time each week developing product/market knowledge and sales skills
    • Figure out if there are other needs (negotiation skills, time management etc.)
    • Analyze your sales methods annually
  • 55. What you can do:
    • Dedicate C/E time each week developing product/market knowledge and sales skills
    • Figure out if there are other needs (negotiation skills, time management etc.)
    • Analyze your sales methods annually
    • Learn what sales methods and sales skill improvement models are being used by others
  • 56. What you can do:
    • Dedicate C/E time each week developing product/market knowledge and sales skills
    • Figure out if there are other needs (negotiation skills, time management etc.)
    • Analyze your sales methods annually
    • Learn what sales methods and sales skill improvement models are being used by others
    • Have a review program with defined and expected sales skill sets that can be measured
  • 57. Leadership / Management “ What ultimately determines the levels of success you achieve correlates directly to the leadership skills and management acumen of those in sales management.” Bill Eckstrom, Founder EcSELL Institute Leadership and Management
  • 58. EcSELL Institute Research indicates: “ Sales managers believe their ability to lead and manage has the second largest impact on production ( after Talent ID and Acquisition ).” Less than 10% Put resources against improving leadership and management skills 15% Consider their teams “ extremely strong ”
  • 59. Gallup Organization Research 80,000 managers and 1 million employees interviewed “ The biggest reason associates stay, quit, are productive or not productive is due to the relationship they have with their direct manager.” Source: First Break All The Rules: What the World’s Greatest Managers Do Differently Curt Coffman and Marcus Buckingham, Gallup
  • 60. Gallup Organization Research 80,000 managers and 1 million employees interviewed “ The biggest reason associates stay, quit, are productive or not productive is due to the relationship they have with their direct manager.” Source: First Break All The Rules: What the World’s Greatest Managers Do Differently Curt Coffman and Marcus Buckingham, Gallup “ The ability to build organic growth and the future viability of any organization will be in the hands of their sales managers.” Curt Coffman
  • 61. Dr. Mary Ulh-Bien Howard Hawks Chair in Business Ethics and Leadership and Director of the Global Leadership Institute EcSELL Institute Summit topic: “ Leading for Innovation, Learning, And Adaptability in Sales” July 28-29, Half Moon Bay, CA
  • 62. Caliper Corp. Research
    • 172 sales managers across 50 industries were identified as “ the best leaders ”
    • 7 Personality Characteristics:
      • Work with a high sense of urgency
      • Assertive
      • Possess a high degree of ego drive
      • Possess a high degree of ego strength
      • Risk takers
      • Innovative
      • Empathetic
    Source: Caliper Corp.
  • 63. Caliper Corp. Research
    • 172 sales managers across 50 industries were identified as “ the best leaders ”
    • 7 Personality Characteristics:
      • Work with a high sense of urgency
      • Assertive
      • Possess a high degree of ego drive
      • Risk takers
      • Innovative
      • Empathetic
    Source: Caliper Corp. Great leaders believe 40% of their talent is innate, the other 60% was developed Source: Caliper
  • 64. Caliper Corp. Research
    • 172 sales managers across 50 industries were identified as “ the best leaders ”
    • 7 Personality Characteristics:
      • Work with a high sense of urgency
      • Assertive
      • Possess a high degree of ego drive
      • Risk takers
      • Innovative
      • Empathetic
    Source: Caliper Corp. “ One of the distinguishing characteristics of a great, enduring organization is that they put a lot of thought into the development of leadership.” Jim Collins, Built To Last
  • 65. What can you do…
    • Read Coffman’s book
  • 66. What can you do…
    • Read Coffman’s book
    • Consider asking your sales team the Q 12 http://gmj.gallup.com/content/811/Feedback-Real.aspx
  • 67. What can you do…
    • Read Coffman’s book
    • Consider asking your sales team the Q 12
    • Use assessments to distinguish between great leaders and great managers
  • 68. What can you do…
    • Read Coffman’s book
    • Consider asking your sales team the Q 12
    • Use assessments to distinguish between great leaders and great managers
    • Put resources against C/E for your sales producers and sales managers
  • 69.   EcSELL Institute is a leading provider of continuing education and development for sales managers. Our goal at EcSELL Institute is to help sales executives and their sales management team make smarter, more deliberate decisions by providing them with educational and development tools specific to the activities over which sales managers have (or should have) control and influence over.
  • 70. Analytics: The Critical Second Half of CRM In the projects we've benchmarked over the past few years, we often find that CRM systems give sales managers numbers – but what they want is insight. “ ”
  • 71. Do You Have the Right Metrics? Batting Average .406 The Old Way… On-Base % Batting Average + Walks + Sacrifices + Hit By Pitch The New Way…
  • 72. Do You Have the Right Metrics? .406 The Old Way…
  • 73. The Sales 2.0 Metrics That Matter
    • Total Sales
    • Total Pipeline
    • Count of Lead Companies
    • Lead to Oppty Conversion
    • Avg Days from Lead to Oppty
    • Avg Age of Open Oppty’s
    • Avg Days from Lead to Close
    • Avg Oppty Amount
    • Avg # of Oppty’s
    • Lead to Close Conversion
    The New Way… Sales Rep Scorecards Sales Rep A Sales Rep B Sales Rep C Sales Rep D Sales Rep E Sales Rep F
  • 74. Ensure You’re Tracking the Metrics that Matter
    • Your Sales Pipeline
      • It’s not just the # of deals, it’s how they’re moving
      • Total value vs. velocity
    • Your Sales People
      • It’s not just how they’ve done, it’s how they’re going to do
      • Quota vs. scorecard
    • Your Sales Process
      • It’s not just having a process, it’s making sure it’s followed
      • Data entry versus data accuracy
  • 75. The LucidEra Pipeline Healthcheck™
    • Get the Right Metrics and Actionable Insight in 48 Hours
    www.lucidera.com/healthcheck LucidEra was able to quickly quantify the impact that on-demand business intelligence can have on our business. ” “
  • 76. Q&A EcSELL Institute www.ecsellinstitute.com 402-261-6948 LucidEra www.lucidera.com www.lucidera.com/blog www.twitter.com/lucidera