A performance evaluation of the sales staff is not systematically performed in many small and medium-sized companies. A motivating feedback culture and sustainable adequate staff development is missing. Performance potential of sales manager are not used, performance deficits are detected too late.
How can sales leaders build high performance sales teams?
2. 1Digital Strategy
Agenda Build High Performance Sales Teams
1. Challenges
2. A new definition of performance
3. Team culture and leadership
4. Solutions
5. Early warning system
6. Skill Management
3. 2Sales Leadership and Team Culture
Performance
reviews are not
systematically
performed
Lack of a
motivating
feedback culture
and sustainable
staff development
Performance
potential remains
unused,
performance
deficits are too late
uncovered
How can we
improve the sales
manager
performance and
build high
performance
teams?
Challenges Performance Culture
4. 3Sales Leadership and Team Culture
Performance is
measured by
quantitative
targets, i.e. new
orders
Targets are already
quantified and easy to
measure
• no reliable performance
forecasts
• no consecutive measurements
Performance reviews only
once a year
Sales manager performance 1 of 2
5. 4Sales Leadership and Team Culture
Low performance becomes
obvious, when
too late for mitigation
objectives will not be
achieved
sales manager drop out of
performance culture
sales manager leave the
company
A simple early warning
system is necessary
Sales manager performance 2 of 2
6. 5Sales Leadership and Team Culture
Disadvantages for staff and
company
A one-time assessment affects
efficiency and effectiveness of
HR actions
Performance reviews may be too
late to adjust motivation and raise
performance level
Open questions:
How did the performance of team
and sales manager develop?
Has performance changed,
increased or decreased?
Disadvantages of one-time performance assessment
7. 6Sales Leadership and Team Culture
Benefits for employees and
company
Part performance targets can be
set up and easy controlled
Employees receive immediate
feedback
Meets requirements of sales
manager
Employees are motivated and
can be coached better
Increase employee satisfaction
and team performance
Advantages of consecutive performance feedback
8. 7Sales Leadership and Team Culture
After three decades
General Electric has given
up the annual performance
review and ranking system
(high, medium and low
performers)
Employees receive a
series of short-term
targets, objectives and
milestones
Feedback on target
achievements is
consecutive.Objective is
continuous performance
improvement
Although an annual
feedback is still used, it is
complemented by
continuous performance
feedback
Microsoft, Accenture and
Adobe have minimized
the importance of annual
performance reviews
Google regards
leadership as a coaching
process and supports
team responsibility and
accountability
Best practice
9. 8Sales Leadership and Team Culture
An authoritarian management is no longer expedient
Millennials expect a high level of leadership, immediate feedback on achievements and constructive
critisism
Employees expect a flexible performance monitoring and timely feedback
Millennials in Europe and US require a new performance culture
Requirements leadership and team culture
10. 9Sales Leadership and Team Culture
Sales leaders have to manage
authoritarian control systems and
employee satisfaction-oriented
motivation culture
Leadership requires considerable
flexibility to manage both top and
low performer without given undue
preference
Sales leader requirements 1 of 3
How do executives handle contradictory requirements, without micro
management and spending too much time on HR controlling?
11. 10Sales Leadership and Team Culture
Leadership is no longer a
one-dimensional process
controlled by superiors
and aligned on the staff
Sales leader must
prove themselves in
a new performance
culture
Sales leader
performance is
reviewed by his
superiors and by his
team
Sales leader requirements 2 of 3
12. 11Sales Leadership and Team Culture
360 degree
assessments:
review process by
superiors and
colleagues
Sales leader new
role: a
charismatic
leadership coach
to inspire and
motivate teams
Sales processes
and structures
must be managed
Sales leader requirements 3 of 3
13. 12Sales Leadership and Team Culture
leadership is not based
on hierarchical
authority
leadership is role
modeling
leadership is a
coaching process
leadership is
communication
leadership is
empowerment of
teams and situational
leadership needs
agile structures and
systems
New leadership culture
14. 13Sales Leadership and Team Culture
Employees motivation is not related to bonus schemes and
incentives
Research show that learning culture, flexible work schedule,
career options and other factors affect motivation
A open, flexible feedback and performance culture is part of
the new team motivation culture
Motivating high performance teams
15. 14Sales Leadership and Team Culture
Use early warning systems
CRM
dashboards
show target
fulfilment at
team and
employee level
Performance
can be
measured with
pipeline and
opportunity
reviews
Employees
receive
feedback
immediately
Sales leader
manage
performance
problems
Feedback is
timely, related
to goals,
pragmatic
efficient and
cost-effective
16. 15Sales Leadership and Team Culture
Agile feedback culture must include skill management actions and review process
Strengths and weaknesses are analysed to evaluate individual and team performance
Skill management can increase productivity and sales success
An objective assessment of competence and skill level is mandatory
Skill Management 1 of 2
17. 16Sales Leadership and Team Culture
The skill profile
evaluates actual
and target skill
scores
It shows
challenges and
potentials in the
main areas of
skills and
competence (e.g.
industry know-
how)
The performance
matrix provides a
benchmark
analysis of
competence and
performance level
Actions for team
and individual skill
development
Skill Management 2 of 2
18. 17Sales Leadership and Team Culture
Mandatory for a sustainable performance change is a change in leadership
behavior and performance systems. Motivated employees build high
performance sales teams.
High performance teams - Summary
19. 18
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Manfred Kauffmann, Managing Partner