Website                       Email                          Phonewww.salesbenchmarkindex.com   info@salesbenchmarkindex.c...
Sales Strategy Research Results:Attracting and Developing the Best Talent 1     Attracting “A” Players 2     Selecting the...
Attracting ‘A’ Players:Best Practice Exercise 1.   We provide better territories than the competition.                    ...
Current LA Territories
Total Market Potential  Segment A       Metro Area    Prospects       Monthly Net Rev        Annual Net Rev   Total Net Re...
LAX Coverage Area                                                     Prospect Count                                      ...
Selecting the Best:Best Practice Exercise  1.   We have defined an “A” player.                                            ...
Region vs. RegionSummary of Scores                          Overall Score 4.5   4    4.2         4.2                      ...
Objection HandlingSummary of Scores                       Objection Handling 6 5                                          ...
Convert Strategy to TacticsSummary of Scores                       Convert Strategy to Tactics 4.5   4                    ...
Onboarding New Talent:Best Practice Exercise 1.                                                                       3   ...
Pre-Ramp AccountabilitiesDoing the Right Things at the Right Time   o Details should be in Onboarding process documentatio...
Onboarding MeasuresMetric                                 Definition                                       Average number ...
Developing Future Talent:Best Practice Exercise   1.    We retain the top 25% performers for at least 5 years.            ...
DF Belt Certification Process • Tier 1 – Relationship & Insurance (Step 1) • Tier 2 – Discovering Needs (Steps 2, 3, 4) • ...
Pilot Training Plan  • February (Tier 1) – Relationship & Insurance    –   Step 1    –   Relationship First, Task Second  ...
Sales Management Role:Best Practice Exercise 1.   Sales managers do not have their own accounts.                          ...
SM Weekly Cadence (Assuming 10 Reps)          Monday         Tuesday           Wednesday              Thursday           F...
How to Get Started?       Phase 1                                  Phase 2                              Phase 3           ...
Learn More     Contact us to hear the rest of the story...      Download the Talent Management Whitepaper Here      Downlo...
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Sales Strategy - Attracting and Developing The Best Talent

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This presentation provides advice on how to set up 2012 for attracting and developing the best talent in order to succeed on your 2012 goals. The content is pulled from 2011 surveys and interviews of world-class sales organizations. Topics include Territory planning, Sales Training, and Sales Management.

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  • Description: This presentation provides advice on how to set up 2012 for attracting and developing the best talent in order to succeed on your 2012 goals. The content is pulled from 2011 surveys and interviews of world-class sales organizations. Topics include Territory planning, Sales Training, and Sales Management.
  • This shows how many companies design territories. Draw some lines on a map, label them and hope that the territories are relatively balanced so that each rep is able to maximize their selling capacity.
  • This is a more scientific approach to determining territory potential. The customers are divided into 2 segments, each segment has a potential spend and from this a total market potential can be determined. Selling capacity should be matched to the potential. In this case, 62% of the selling capacity should be pointed at the Segment B LA market and 20% to the Segment A LA market. Only a total of about 2% of the selling capacity should be pointed to the Santa Barbara A and B segments
  • This map color codes where the potential lies – the darker the green, the more highly concentrated the market potential. The number of prospects in the chart at the top help show the relative size of the different metro areas. This map helps to focus sales reps, especially those who are geographically based so they know where the pockets of opportunity lie within their patch.
  • Client asked us to assist them in performing a talent assessment of their sales managers. The assessment included a deep dive in over 20 sales and management-related competencies. The assessment covered their entire North American sales force, which was broken into 5 regions, each of which is represented by a blue bar in the above chart.As part of this talent assessment, SBI provided a benchmark median which reflected the score of sales managers from other related and relevant companies in the same competency areas. This benchmark served as a point of reference for Client in providing some objective 3rd party perspective.
  • From the chart above, Client learned that, much as with Opportunity Management, not one region was even up to the benchmark median in the Sales Knowledge competency of “Objection Handling”. What is notable about this competency is that the peer group benchmark median for this competency is 4.8 compared to 4.4 in Opportunity Management. Thus, the gap from Client to even average practice was even greater. Ryder sales managers had little experience, skills, and even basic knowledge of objection handling. This was reflected in poor win rates for late stage deals where competition was present in the account.Finally, the gap from the region average (shown in red) was almost a full point below the benchmark median. This is the largest gap Ryder saw in any of the 20 competencies.
  • In this final chart we see that no region came even close to the benchmark median in the Sales Knowledge competency of “Converting Strategy to Tactics”. What is notable about this competency score is that the gap from lowest region (Canada) to highest region (Central) is 1.4 points – the largest dispersion of any of the 20 competencies. This gap represents a failure of training and candidate recruitment, as Canada had the largest share of new employees and none had been coached to obtain this critical competency.
  • A process that cannot be measured cannot be improved. An onboarding process is no different.Client selected the above list of metrics from a larger portfolio and used these to track the overall impact of the program. This helped provide a level of confidence and proof that the SBI engagement achieved its stated objectives and had a bottom line impact on sales results. Some of the more notable metrics-driven achievements (beyond the ramp time improvement discussed earlier) include the following:Sales turnover dropped by 32%Sales Appointments (for new hire reps) rose 27%Breakeven point was reduced by 19%
  • A certification process can help drive adoption of sales process. In this case, the organization defined 4 belt levels, similar to karate belts. Each time a rep attained a belt, a ceremony was held and they gained a token belt to hang in their cube. Belts became a sign of accomplishment and bragging right for those who were on the leading edge of the schedule. Those laggards had peer pressure to earn their belts. Belting attainment was determined by listening to recorded calls to ensure they met the criteria defined in the sales process. Upon completion of all the belt certifications, the rep was promoted to senior rep and given a compensation increase.
  • This is the 4 month training plan to drive adoption of the new sales process. When a sales process is rolled out as a one time event, rarely does it stick and produce results. In this case, Client focused on a few key mantras of the process each month for 4 months. This rollout plan combined with the belting process drove adoption of the sales process which helped the organization double efficiency and productivity over the 24 months following the rollout of the process.
  • Perform a Sales Productivity Benchmark.
  • Contact us if you would like to understand how you can attract and develop the best talent for your 2012 success plans. Email - info@salesbenchmarkindex.comPhone - 1-888-556-7338Web: http://www.salesbenchmarkindex.com
  • Transcript of "Sales Strategy - Attracting and Developing The Best Talent"

    1. 1. Website Email Phonewww.salesbenchmarkindex.com info@salesbenchmarkindex.com 1-888-556-7338 Sales Strategy Research Results: Attracting and Developing the Best Talent Are you ready to be world class?
    2. 2. Sales Strategy Research Results:Attracting and Developing the Best Talent 1 Attracting “A” Players 2 Selecting the Best 3 Onboarding New Talent 4 Developing Future Stars 5 Sales Management Role
    3. 3. Attracting ‘A’ Players:Best Practice Exercise 1. We provide better territories than the competition. 1 2. Our quotas are attainable. 3. Our sales managers are coaches and not micro managers. 4. The compensation program follows the 3x uncapped best practice. 5. The sales culture is a meritocracy with favorable accounts going to proven performers. Back
    4. 4. Current LA Territories
    5. 5. Total Market Potential Segment A Metro Area Prospects Monthly Net Rev Annual Net Rev Total Net Rev % of Total Bakersfield 12 $15,000 $180,000 $2,160,000 0.35% San Luis Obispo 15 $15,000 $180,000 $2,700,000 0.43% Oxnard 52 $15,000 $180,000 $9,360,000 1.50% Santa Barbara 25 $15,000 $180,000 $4,500,000 0.72% Riverside 83 $15,000 $180,000 $14,900,000 2.39% Los Angeles 681 $15,000 $180,000 $122,580,000 19.59% Segment A Total 868 $90,000 $1,080,000 $156,240,000 24.97% Segment B Metro Area Prospects Monthly Net Rev Annual Net Rev Total Net Rev % of Total Bakersfield 99 $4,000 $48,000 $4,752,000 0.76% San Luis Obispo 63 $4,000 $48,000 $3,024,000 0.48% Oxnard 368 $4,000 $48,000 $17,664,000 2.82% Santa Barbara 143 $4,000 $48,000 $6,864,000 1.10% Riverside 1059 $4,000 $48,000 $50,832,000 8.12% Los Angeles 8051 $4,000 $48,000 $386,448,000 61.75% Segment B Total 9783 $24,000 $288,000 $469,584,000 75.03% Total Annual Revenue $825,824,000 A Segment 868 $15,000 $13,020,000 B Segment 9783 $4,000 $39,132,000 10651 $52,152,000 Average Monthly Net Revenue $4,896
    6. 6. LAX Coverage Area Prospect Count Santa San Luis Metro Los Angeles Riverside Oxnard Bakersfield Barbara Obispo Segment A 681 83 52 25 15 12 Segment B 8051 1058 368 143 63 99 Total 8732 1141 420 168 78 111
    7. 7. Selecting the Best:Best Practice Exercise 1. We have defined an “A” player. 2 2. We have calculated the cost of a miss hire. 3. Our search and sourcing efforts are confined to pools filled with “A” talent. 4. We use past performance data to predict future results. 5. Competency screening is determined through scenario based behavioral interviewing. 6. A standard decision framework is used when choosing between candidates. 7. Reference checks include past bosses, current and former customers, and co-workers. Back
    8. 8. Region vs. RegionSummary of Scores Overall Score 4.5 4 4.2 4.2 4.2 4.1 3.5 3.7 3.4 3 2.5 2 1.5 1 0.5 0 East South Central Canada West Benchmark
    9. 9. Objection HandlingSummary of Scores Objection Handling 6 5 4.8 4 4.3 4.1 3.8 3.7 3 3.3 3.0 2 1 0 East South Central Canada West Average Benchmark
    10. 10. Convert Strategy to TacticsSummary of Scores Convert Strategy to Tactics 4.5 4 4.2 3.9 3.8 3.5 3.7 3.4 3 3.0 2.5 2.5 2 1.5 1 0.5 0 East South Central Canada West Average Benchmark
    11. 11. Onboarding New Talent:Best Practice Exercise 1. 3 By role, we understand the time it takes a new hire to make the first sale. 2. By role, we understand the time it takes a new hire to reach quota run rate. 3. We have an individualized 30/60/90 plan for each new hire. 4. Leading indicator measurement is used to track new hire progress. 5. Sales managers are measured on hiring effectiveness. Back
    12. 12. Pre-Ramp AccountabilitiesDoing the Right Things at the Right Time o Details should be in Onboarding process documentation Pre-Ramp Accountabilities: Job Execution MonthsActivity 1 2 3 4 5 6Internal Process Review XOnboarding for “Key Accounts” Update, Status X% of Pipeline (Pred + Non Pred) versus Quota XProspecting Phone Calls XJoint Account Meetings w/Regional Manager 5 15 30 40 40 40Joint Account Meetings w/Senior Sales Rep 4 4 2 2 2 2Appointments w/Clients (with a Source) 2 2 1 0 0Appointments w/Clients (Solo) 0 1 2 4 8 10Generation of Proposals (for New Trials) 0 0 4 6 6 6Negotiation of Contract and Terms 0 2-5 2-5 5-10 5-10 10Territory Plan Development & Update 0 1 1 3 3 3Run Rate (% Annual Quota Achievement) 25% 40% 50% 70% 90% 100%
    13. 13. Onboarding MeasuresMetric Definition Average number of months between the new hire start date of a quota-bearing sales professional and the point at which that salesRamp Time to Full Sales Productivity professional reaches sales full productivity, which is determined as 100% of their monthly sales goal. Count as 12 months the time for each sales professional who never reaches full productivity. Percentage of sales professionals that leave a company in a givenSales Turnover Rate year. (The cause of turnover can be voluntary or involuntary.) Average number of sales calls executed by each salesSales Calls per Sales Rep professional. Average number of sales proposals submitted by each salesSales Proposals per Sales Rep professional. Average number of sales appointments executed by each salesSales Appointments per Sales Rep professional.Pipeline Ration Ratio of the pipeline relative to total assigned sales quota.Breakeven Point Minimum sales revenue required to cover selling expenses. Average annual sales quota amount assigned to each salesSales Quota Amount per Sales Rep professional. Percentage of sales professionals achieving at least 100% ofSales Quota Attainment assigned annual sales quota.
    14. 14. Developing Future Talent:Best Practice Exercise 1. We retain the top 25% performers for at least 5 years. 4 2. Certification programs enforce career-long training. 3. We have a multilevel progression within the same job family. 4. A clear career advancement path is established. 5. Training content components are 1. Industry perspectives 2. Selling competencies 3. Product knowledge 4. Use case 5. Sales methodology 6. Automation tools Back
    15. 15. DF Belt Certification Process • Tier 1 – Relationship & Insurance (Step 1) • Tier 2 – Discovering Needs (Steps 2, 3, 4) • Tier 3 – Meeting Needs (Steps 5A/B, 6, 7) • Tier 4 – The Visit To Client (Steps 8, 9, 10, 11) • Certification Process – Each criterion on QA Form has been designated a Tier Level – To Move Up to the Next Tier Level • If 4 out of 5 call evaluations (based on call date/time), the Rep achieves Excellent or Good rating on all QA Form criteria for the next, current and previous tier levels – To Be Moved Back to the Previous Tier Level • If 2 straight call evaluations (based on call date/time), have any Fair or Poor ratings for the current or previous levels • Managers must re-score calls before a Rep is moved down a level
    16. 16. Pilot Training Plan • February (Tier 1) – Relationship & Insurance – Step 1 – Relationship First, Task Second – Uncovering Insurance In Branded Way • March (Tier 2) – Discovering Needs – Steps 2, 3, 4 – Distinguishing Call Need from Call Purpose – Place Caller Needs Before Your Own – Active Listening – Empathy • April (Tier 3) – Meeting Needs – Steps 5A/5B, 6, 7 – Branded, Efficient Transitioning of Non-Prospects – Setting Next Action Steps • May (Tier 4) – The Visit To CLIENT – Steps 8, 9, 10, 11 – Matching Caller’s Words/Tone
    17. 17. Sales Management Role:Best Practice Exercise 1. Sales managers do not have their own accounts. 5 2. District sales managers have direct responsibility for reps for a defined list of named accounts. 3. Job description calls for: staffing, training/coaching, forecasting, quota allocation, account assignments. 4. Our sales managers received 2x the training of our reps. 5. New sales managers are enrolled in a peer mentor program. Back
    18. 18. SM Weekly Cadence (Assuming 10 Reps) Monday Tuesday Wednesday Thursday Friday Office Day Field Day Field Day Field Day Office Day • Admin Work • Sales Mgmt Call • Planned/Spontaneous Ride-Alongs • Top-grading • Sales Team Call InterviewAM • Rep Phone Calls • 1-on-1 Meetings • Talent Reviews (Planning / • Account Visits Resolve Issues) • Skills Training or Corporate Call • On-boarding / • Top-grading Fast Track Interview • Planned/Spontaneous Ride-Alongs • EDP Activities • Talent ReviewsPM • 1-on-1 Meetings • CAN Activities • Dashboard • Account Visits Review/Pipeline • Admin Work Review
    19. 19. How to Get Started? Phase 1 Phase 2 Phase 3 Determine Sales Assess Sales Force Force Maturity Prioritize Possible Conduct Sales Conduct Discovery Remediation Present Findings Benchmark ActionsMeans Results1. Exec Interviews Assess Sales 1. Capture Current State Identify Key2. Mystery Shopping Performance 2. Show End State Drivers to improve3. Documentation Drivers Possibilities4. Metric Data 3. Make Recommendations5. Customer Survey 4. Quantify Impact Performance Drivers6. Sales Rep Survey 1. Channel Management 8. Sale Management7. Sales Rep DILO 2. Compensation Planning 9. Sales Performance8. Expert Panel Management 3. Key Account Management 4. Lead Generation 10. Sales Process 5. Quota Setting 11. Sales Strategy 6. Sales Force Structure 12. Talent Management 7. Sales Force Size 13. Territory Design
    20. 20. Learn More Contact us to hear the rest of the story... Download the Talent Management Whitepaper Here Download our Sales Strategy Whitepaper Here Email - info@salesbenchmarkindex.com Phone - 1-888-556-7338 Web: http://www.salesbenchmarkindex.com/20

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