Six success factors of sales, Gary Braun, Partner, Pivotal Advisors, LLC
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Many companies struggle with how to scale and continue growth. They try replacing people, changing comp plans and various kinds of solutions to no avail. This session will focus on six factors that every sales organization needs functioning correctly in order to optimize and grow sales: growth strategy, people, process, measurement, rewards and recognition, execution and sales management. Learn how you can implement these six factors into your sales organization to stimulate growth.
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Six success factors of sales, Gary Braun, Partner, Pivotal Advisors, LLC
- 1. P I V OTA L ADVISORS Six Success Factors of Sales Gary Braun Pivotal Advisors, LLC October 3, 2013
- 2. Pivotal Advisors • Work with Small to Medium Sized Companies to make changes in the sales organization that will enable growth • Worked with approximately 100 companies in last five years • Over 80 years of combined sales and sales management experience • Implement and drive adoption of sales best practices and bring increased level of discipline to sales management
- 3. Expectations for Today • Understand common challenges and solutions • Understand the six segments of a strong sales system • Become aware of how leaders hinder sales performance and what they can do • Identify things that you and your organization can do differently to drive sales 3
- 4. Top Challenges What are your TOP CHALLENGES with Sales Teams? 4
- 5. Common Approaches to Sales Challenges Invest in Technology 5
- 6. What makes a World Class Sales Organization? Definition • • • • • • • • • Highly Skilled Team Transparent Results Predictable Active/Hard Working Achieves Goals Scalable/Repeatable Consistent Affordable Aligned with our Values/Culture Execution Making it real = Rewards & Recognition Rewarding performance Growth Strategy Clearly focusing SALES LEADER People Developing the right team Measurement Process Measuring what matters Doing the right things well © Pivotal Advisors, LLC 6
- 7. Selling Success Factors Growth Strategy Execution Rewards & Recognition Performance Management Measurements (In detail) People Sales Leader Process © Pivotal Advisors, LLC 7
- 8. Common Approaches May Not Be Correct Growth Strategy Execution COMP PLAN Rewards & Recognition Performance Management Measurements Sales Leader People TRAINING Process © Pivotal Advisors, LLC 8
- 9. Sales as a “System” Growth Strategy Clearly focusing Execution Rewards & Recognition Growth Strategy People SALES LEADER Measurement Process © Pivotal Advisors, LLC 9
- 10. How are You Positioned? Product Leadership New to world Standard Commodity Managed Cost Competitive Cost Lower Cost Operational Excellence Knowledge Partnership Solutions Customer Intimacy 10
- 11. What Makes You Different? Product Leadership Bare minimum to “make it” Operational Excellence Customer Intimacy 11
- 12. Differentiation Positioning The Value Discipline with which you will develop and present your solutions to your customers Differentiation The 3-5 differences in your solutions that a) Prospects/customers see as being different b) they are willing to pay more for it 12
- 13. Communicating & Aligning Your Growth Strategy 13
- 14. Sales as a “System” Execution Rewards & Recognition Growth Strategy SALES LEADER Measurement People People Developing the right team Process © Pivotal Advisors, LLC 14
- 16. What is the Right Type of Rep for You? Hunter? vs. Farmer? Hunter Farmer 16
- 17. What is the Right Type of Rep for You? Consultative/ Complex Consultative/ Complex Sale? vs. Transactional Sale? Transactional Hunter Farmer 17
- 18. What is the Right Type of Rep for You? Consultative/ Complex Selling Selling Brand? vs. Unknown? Transactional Brand Unknown Hunter Brand Unknown Farmer 18
- 19. Transactional Consultative/ Complex What is the Right Type of Rep for You? Direct Channel Direct? vs. Channel? Direct Channel Brand Unknown Hunter Brand Unknown Farmer 19
- 20. Mng’d Auto Mng’d Auto Mng’d Auto Mng’d Managed Close? vs. Autonomous? Auto Direct Channel Direct Channel Transactional Consultative/ Complex What is the Right Type of Rep for You? Brand Unknown Hunter Brand Unknown Farmer 20
- 21. Mng’d Proc Auto Proc Mng’d Proc Auto Proc Mng’d Proc Auto Proc Mng’d Proc Auto Direct Channel Direct Channel Transactional Consultative/ Complex What is the Right Type of Rep for You? Proc Process? vs. Start-up? Strt Strt Strt Strt Strt Strt Strt Strt Brand Unknown Hunter Brand Unknown Farmer 21
- 22. Mng’d Proc Auto Proc Mng’d Proc Auto Proc Mng’d Proc Auto Proc Mng’d Proc Auto Direct Channel Direct Channel Transactional Consultative/ Complex What is the Right Type of Rep for You? Proc Strt Strt Strt Technical? vs. Non-Technical? Strt Strt Strt Strt Strt Non-Tech Tech Brand Non-Tech Tech Unknown Hunter Non-Tech Tech Brand Non-Tech Tech Unknown Farmer 22
- 23. Mng’d Proc Auto Proc Mng’d Proc Auto Proc Mng’d Proc Auto Proc Mng’d Proc Auto Direct Channel Direct Channel Transactional Consultative/ Complex What is the Right Type of Rep for You? Proc Strt Strt Strt Industry? vs. Non-Industry Strt Strt Strt Strt Strt Ind Non Ind Non Ind Non Ind Non Ind Non Ind Non Ind Non Ind Non Non-Tech Tech Tech Non-Tech Non-Tech Tech Non-Tech Tech Brand Unknown Hunter Brand Unknown Farmer 23
- 24. Mng’d Proc Auto Proc Mng’d Proc Auto Proc Mng’d Proc Auto Proc Mng’d Proc Auto Direct Channel Direct Channel Transactional Consultative/ Complex What is the Right Type of Rep for You? Proc Account-based vs. Territory Strt Strt Individual vs. Team Selling Strt Large $ vs. Small $ Strt Lead Generator vs. Lead Follow-up Strt Strt Heavy Base Pay vs. Highly Leveraged Strt Premium vs. Discount Strt Ind Non Ind Non Ind Non Ind Non Ind Non Ind Non Ind Non Ind Non Non-Tech Tech Tech Non-Tech Non-Tech Tech Non-Tech Tech Brand Unknown Hunter Brand Unknown Farmer 24
- 25. Improving Your Odds Probability of Performing Well in the Job Interview Only Background Check Personality Testing Skills Testing Interests Testing Job Matching 0% 10% 20% 30% 40% 50% 60% 70% 80% Source: Harvard Business Review 25
- 26. Interviewing and Selecting • Define the skills and traits • Interview for defined skills and traits • Define your interview process • • • Make them prove it Use assessments Formalize your selection criteria 26
- 27. Onboarding 30 days Learn Attend client presentation meeting with Rep Deliver 90 days Best practices for presenting our product/solution Do 60 days Give a product demo to the Sales Mgmt team 27
- 28. Sales as a “System” Execution Rewards & Recognition Growth Strategy People SALES LEADER Measurement Process Process Doing the right things well © Pivotal Advisors, LLC 28
- 29. 4 Levels of Selling Organizations Level Four • Feedback Systems, Modified Annually • Model of Effectiveness • Looks at Leading Indicators 14% Level Three • Formal, Measured, Adopted • Looks at Lagging Indicators 24% Level Two • Informal Sales Process • Learn by “Tribal Wisdom” Level One • Lack a Single Standard Sales Process • Everyone Works their Own Way 46% 16% SOURCE: CSO Insights - 2007 29
- 30. Why Is It Important to Sales Teams? Key Sales Task Execution Comparison – Meet/Exceed Expectations 58.4% Accurately Target Prospects 43.1% 74.4% Differentiate versus Competition 59.4% 60.0% Effectively Cross-sell/Up-sell 47.0% 57.8% Effectively Introduce New Products 42.7% 70.0% Sell Value/Avoid Discounting 51.3% 0% 10% 20% 30% 40% 50% 60% 70% 80% Level 4 Companies Level 1-3 Companies CSO Insights - 2007 30
- 31. Sales Process Detail Step: Qualify Discovery** Demo Proposal Active Goal Fit or don’t fit Move to Discovery stage Understand prospect’s circumstances, objectives, needs, problems and impact Book the demo Customer agrees solution will meet needs and agrees on buying process Agree on pricing and terms Insure satisfaction Expand use into other divisions Activities Ask Qualifying questions Enter Lead in SF.com (if qualified) and input findings Schedule discovery/demo meeting 1 or more meetings to learn customer needs, buying process, challenges Create Opportunity in CRM Ask for Demo Present to client needs Update SF.com Deliver proposal Identify issues Overcome Objections Update SF.com Establish QBRs Investigate other areas within company Get introduced to other stakeholders Update SF.com Resources/ Tools Qualification Criteria Document Discovery Questions Library Pre-call Planner Demo flow checklist… User agmts and documents – QBR PowerPoint Toll-Gate Customer has agreed to further Discovery or Demo Full understanding of need, desire and ability Commitment of right stakeholders at demo Customer agrees solution meets needs and asks for proposal Docs signed and closed Customer participates in QBRs and makes introductions
- 32. Individual Sales Plans • Financial Goals – Revenue/GM/Units • Activity Goals – Opportunities/Meetings/Proposals • How they will achieve their plan? –Who they will pursue? –Events they will attend? –Industries they will chase? –Geographies to focus on? • Broken into workable chunks (quarterly?) • Reviewed Regularly
- 33. Sales as a “System” Execution Rewards & Recognition Growth Strategy People SALES LEADER Measurement Process Measurement Measuring what matters © Pivotal Advisors, LLC 33
- 34. Typical Measure of Sales Performance Sales Rep Revenue Goal Actual % of Goal Johnny $75K $56K 75% Sally $75K $60K 80% Billy $75K $75K 100% Susan $75K $80K 107% 34
- 35. The Big 3 Opportunities Revenue Qualified Opptys Proposals Close % Deal Size Deals Close % (Deals/Opptys) Deal Size Goal $75,000 10 5 3 30% $25,000 Acceptable $50K-$75K 7-9 3-4 2 20%-29% $15K-$20K Needs Imp <$50K <7 <3 <2 <20% <$15K 35
- 36. The Sales Scorecard Opportunities Revenue Qualified Opptys Proposals Close % Deal Size Deals Close % (Deals/Opptys) Deal Size Goal $75,000 10 5 3 30% $25,000 Acceptable $50K-$75K 7-9 3-4 2 20%-29% $15K-$20K Needs Imp <$50K <7 <3 <2 <20% <$15K Johnny $56K 12 6 4 33% $14K Sally $60K 15 5 2 13% $30K Billy $75K 11 5 3 27% $25K Susan $80K 5 3 1 20% $80K 36
- 37. What are your ‘Big 3’? • Best Practice: Calls, Meetings, Demos, Proposals, Qualified Opportunities, Touches • Opportunities 1. Determine what your ‘Big 3’ should be Close Ratio(s) - Deals/Opportunities - Deals/ Proposals - Deals/Calls • 2. Set a Goal for each of your Big 3 items 3. Communicate expectations and hold reps to the standard Average Deal Size Deal Size, Annual Revenue per Client, Units per Order 37
- 38. Sales Manager Measures • Sales Revenue / Margin • Training Time to Proficiency • Coaching and Feedback (Rep Improvement) • Selection/Retention • Adoption of the Sales Process • Visibility and Predictability • Rewards, Motivation and Retention • Percentage Reps on Goal • New Accounts Holding Sales Managers accountable for the RIGHT things builds teams that not only SELL MORE, but sell more profitably, predictably and effectively. 38
- 39. Sales as a “System” Execution Rewards & Recognition Rewarding performance Rewards & Recognition Growth Strategy People SALES LEADER Measurement Process © Pivotal Advisors, LLC 39
- 40. What REALLY Drives Behavior? 40
- 41. Sales Incentive Design MOST COMPLEX Product/Process Complexity MOST COMPLEX LEAST COMPLEX Base Salary Focus LONG SHORT Variable Pay Focus SHORTER LEAST COMPLEX Sales Cycle Length LONGER 41
- 42. Compensation Plans Break-Even Optimum Straight Commission Goal Optimum Steps / Bonus Thresholds Total Compensation Goal Total Compensation Break-Even X X Commission X Base Salary Commission Revenue/Gross Margin $ Break-Even Goal Revenue/Gross Margin $ Optimum Multipliers Break-Even Goal Optimum Tiers X X Commission X Base Salary Total Compensation Total Compensation X X X Commission Base Salary Revenue/Gross Margin $ Revenue/Gross Margin $ 42
- 43. The ABC’s of Behavior A B C Antecedents Behaviors Consequences Happen PRIOR TO and TRIGGER a behavior Things people SAY or DO • Training on CRM • Sales Mgr makes CRM use a requirement • Rep puts notes and forecasts in CRM Happen AFTER and determine LIKELIHOOD of RECURRENCE • Mgr manages from CRM and recognizes effort in 1 on 1s • CEO recognizes accuracy of foreast 43
- 44. Sales as a “System” Execution Making it REAL Execution Rewards & Recognition Growth Strategy People SALES LEADER Measurement Process © Pivotal Advisors, LLC 44
- 45. Assessing the Sales Leader CORE ATTRIBUTES Attributes that come instinctively and naturally (without all of these, person will struggle to be successful) Self-Awareness Drive for Results Intellectual Horsepower Ethics and Values Integrity and Trust Listening FOUNDATIONAL SKILLS Critical sales management skills that can be learned, but foundational to the role – importance may fluctuate depending on the organization Managing Through Systems Planning Informing Alignment Realistic/Objective Coaching and Feedback Confronting Direct Reports Managing and Measuring Work Interpersonal Savvy Sizing Up People Problem Solving Priority Setting COMPANY/ROLE SPECIFIC SKILLS Teachable knowledge, skills and abilities that should be adjusted for the company, culture, situation, individuals, customer expectations, etc. Personal Skills Functional/technical skills (computer, engineering, math, etc.) Presentation skills Written communications Business acumen Action oriented Composure Dealing with ambiguity Facilitator / collaborator Time management Organizing Managerial Skills Key knowledge (competitive, products, industry, etc.) Hiring and staffing Managerial courage Developing direct reports Motivating others Delegating Directing others Customer focus Empathizing Balanced point of view Conflict management Credibility Negotiating Political savvy 45
- 46. Sales Management Operating System What High Performing Sales Leaders Do… 1 on 1 formal meetings with Reps Weekly or bi-weekly Coaching • Deal • Skills Time in the Field with Reps 25% - 50% Key Metrics Measures activities that lead to sales in addition to conversion rates, sales, etc. Manage from Data Sets expectations/standards around defined metrics and uses performance to diagnose areas to focus on • Performance • Career 46
- 47. Coaching Makes a Difference Rep Percentage to Goal by Coaching Effectiveness 19% Performance Improvement is directly attributable to COACHING EFFECTIVENESS 110% 100% 102% Performance Against Goal 97% 90% 83% 80% 70% High Medium Low Coaching Effectiveness SOURCE: 2005 Sales Executive Council research 47
- 48. Implementation of a Sales System – the CEO Role • Be clear, aligned and supportive about what you want • Give Sales Leaders the time, resources and tools to be effective • Know the process, measures and challenges • Publicly celebrate the wins 48
- 49. What’s It All Mean? Having a Sales Team supported by structure, process and strong leadership creates an organization where: • • • • • Average people can be successful A larger pool of talent is available You’re no longer “handcuffed” by top producers with bad behavior Results are more consistent and predictable New people come on board easier and get productive faster Leadership & Implementation Making It real Rewards & Recognition Rewarding performance Growth Strategy Clearly focusing SALES LEADER Measurement Measuring what matters People Developing the right team Process Doing the right work well • Leaders can coach from fact vs. opinion 49
- 50. What are you going to do? INDIVIDUALLY answer the following questions: • What are the 1-3 things that you want your organization to do differently? • What will you personally do differently? 50
- 51. Resources Available Growth Strategy • Strategy Planning Templates • Sales Planning Models • Planning Documents People • Job Profiles • Interview Guides • Learn-Do-Deliver Onboarding Templates Process • Sales Stage Definitions Measurement • Sample Scorecard Templates • CRM Selection Criteria • Sales Pipeline Planning Calculators Rewards & Recognition • Weekly Communication Templates • 1 on 1 Meeting Best Practices • Commission Plan Templates Leadership and Implementation • Performance Management Checklists • Behavioral Articles • Coaching Models 51
- 52. Thank You for Giving Us the Opportunity to Be With You Today! Gary Braun gbraun@pivotaladvisors.com www.pivotaladvisors.com 52