Promoted to VP of Sales: The Year 1 Toolkit Book

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This presentation will provide excerpts from the new ebook “Promoted to VP of Sales: The Year 1 Toolkit”. The ebook is free and provides symptoms, causes, and cures for why the average Chief Sales Officer only lasts 19 months in their role. Authored by Matt Sharrers and Greg Alexander of Sales Benchmark Index.

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Promoted to VP of Sales: The Year 1 Toolkit Book

  1. 1. Website Email Phonewww.salesbenchmarkindex.com info@salesbenchmarkindex.com 1-888-556-7338 New Book:Promoted to VP of Sales: The Year 1 Toolkit (A few highlights from the new book)Navigating the first 19 months…
  2. 2. CSO Average Tenure is 19 Months Impacts of CSO turnover: • Missed financial expectations • Disruption in field spikes • Customers suffer • Competitors see run on talent • CSO suffers wage, reputation and marketability2
  3. 3. Benefits of Success • Bonuses for all execs • Surplus profits drive new projects • Field is spared from reactive initiatives • CSO enjoys income, rising share price and builds personal brand3
  4. 4. Root Causes of Failure 23 Symptoms but only 4 root causes: Root Cause Evidence ResultThrashing Wrong solutions Lots of effort but very implemented due to little results incorrect diagnosisDetachment Sales Strategy selected in Go-to-market plan out of a vacuum synch with target marketsSequencing Poorly ordered programs Change fatigue surfaces that cancel each other from improper out sequencingAlienation No appreciation for Declining sales destroys impact on rest of the morale company4
  5. 5. Thrashing – Lack of Strategy • Typical approaches • Skip strategy • Fast track one • Do it right “Once you make a decision on the sales strategy, you make a decision on short term tactics that help you put points on the board with the sales force. This then paves the way to do medium and long term items that are more strategic in nature.” – Paul Rolls, IDT5
  6. 6. Thrashing – Summary Urgent Chaos Panic Sales Force Drivers 1-6 months 7-12 months 13-19 months no action taken due to VP direct reports CSO reacts to pressure by pushing team for Sales quotas are missedSales Performance Management pleading incorrect measures more results Best customers are not being given Best accounts receive more resources but at growth rate not improved; inordinate pressureKey Account Management enough attention high costs on team to drive cross sell Pressure mounts to make changes made but out of alignment with recognition over payment and pay for topSales Compensation compensation changes rest of company strategy performers is not on track; complaints heard invest in a variety of short term marketing Marketing budget cut due to lack of ROI while Sales force is not finding enough leadsLead Generation tactics without tangible ROI sales force still complains due to lack of leads Pressure builds from organizational outside training launched; event based with training budget cut due to no ROI on firstSales Training development and HR no knowledge transfer to team spend and lack of adoption/tangible results Operations/Product questioning why not linked to corporate strategy CEO senses trouble and feels CSO is panickingSales Strategy certain decisions made in Phase 1 CFO looks for evidence of sales leaders undefined and unmanaged Low hanging revenue fruit is already pickedSales Goals success as skepticism grows clear direction but wrong priorities Higher reporting and quota standards put in Multiple initiatives without clear directionSales Management due to misdiagnosis place initially adding headcount without Some C players are replaced by potential A cutting headcount due to overspending fromResource Planning understanding market potential players 12 months ago anxious about new leadership; willing realizing broken promises of first 6 months Lost confidence in the leader and the companySales Force to see if positive change comes are a reality for zero follow through Sales leader becomes more dictatorial and less fail to understand market position realizing analysis was too short or incorrectGo to Market Strategy collaborative in recovery effort6
  7. 7. Thrashing - The Cure Develop your diagnostic capability and follow a framework • Does the organization know a problem exists? • Is the perceived problem a symptom or is it a root cause? • If it is a root cause, is the organization willing to undergo the disruption to solve the problem? • When they fix this one problem, it will create a new problem. How will the org prepare for continued improvement?7
  8. 8. Detachment - Root Cause #2 Sales Strategy detached from life cycle of industry, company and product Example: • Mature Industry and company • Mature product • Sales force arranged for growth • Head winds prevent results “when I arrived, I had to quickly orient myself with where the industry, offering, sales force and customers were on the maturity curve to ensure I deployed the right go to market strategy” – Glenn Collins, CDI8
  9. 9. Detachment – The Cure Avoid detachment by considering where you are on the maturity spectrum:9
  10. 10. Sequencing – Root Cause #3 Installing best practices out of order yields failure: • Deploying sales force automation without a sound sales process • New comp plans before quotas are established • Sales Training before skills assessment • Add headcount before coverage analysis “As an outsider, you can come up with the new ideas but in a strong culture you will be rejected. Use the insiders and informal leaders to help you drive the right change in the right order through the organization” – John Gleason, Ryder Systems10
  11. 11. Sequencing – The Cure • Use a framework to determine sequence • Conduct stakeholder analysis • Manage disruption “I spent 60 days on the road and brought the team together to build a set of goals. We then sat with the entire management team, laid out our roadmap, including what was required from each and asked for buy in. From there, it was about execution; they knew what we were doing, in what order and why” – Alex Shootman, Eloqua11
  12. 12. Use a Framework12
  13. 13. Manage Disruption Start with sales strategy and sequence down through infrastructure • As you solve one problem, another appears • Align to the org’s appetite for change13
  14. 14. Alienation – Root Cause #4 Inadvertent isolation through “us vs. them” posturing: • Collaboration is key but CEO is ill-equipped to guide you through sales transformation • Remaining executive team views strategy through 1 of 3 lenses: • Product Differentiation (innovation—Apple) • Operational Efficiency (cost management—Wal Mart) • Customer Intimacy (customer experience—Ritz Carlton)“One of the first things I recognized was we had distinct silos…we went from afunctional sales organization to a matrix which forced more collaboration in thefield. We set strategy around collaboration. ” – Barry Somervell, Kindred Healthcare14
  15. 15. Alienation – The Cure To avoid alienation: • Understand level of disruption the culture can handle • Leverage peer interviews to identify agility of the executive team “I knew I could get more done through my peers vs. going around my peers. I focused on being objective and ensuring the sales department was optimized before I pointed any fingers at other functional groups” – Alex Shootman, Eloqua15
  16. 16. Disruption Tolerance Perform Risk Assessment on Organization RISK CATEGORY IMPACT* LIKELIHOOD* PREVENTION STEPS Execution  Results obtainable  Methodology (how will we change)  Executive sponsorship  Past performance on similar change initiatives Operational  Too disruptive  Implementation plan  Executive turnover  Project team turnover People  Do we have sales rep talent?  Capable sales management  Unknown stake holders  Unexpected resistance  Chemistry between VP of Sales and peers  Ineffective communications Financial  Leading vs lagging indicators  Time to recognize result16
  17. 17. Next StepsDoes your plan consider these concepts?Read the eBook today!Discover the 6 Free Tools to Thrive!Download a Free PDF copy now!17

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