Mike Kunkle's sales effectiveness methodology... a six-project methodology for aligning sales performance levers and radically improving sales results.
Mike KunkleVP, Sales Effectiveness Services at SPARXiQ
2. Performance Levers
The Plan
Agenda
Overview:
Background, Definition, Six-Project Approach, Why It’s Worth the Effort
Walk-through of the Six Projects
Case Example
Appendix with Helpful Resources
“Everybody's got plans... until they get hit.” Mike Tyson 2 2
3. Performance Levers
Overview | Definition
A sad but true tale
“Karen, we need sales training!”
Karen reviews sales training.
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4. Performance Levers
Overview | Definition
A sad but true tale
Karen selects sales training.
Note: Miller Heiman is a fine company. This is neither an endorsement nor
a condemnation.
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5. Performance Levers
Overview | Definition
A sad but true tale
Karen delivers sales training.
Training Expenses
5
6. Performance Levers
Overview | Definition
A sad but true tale
“Karen, what happened!?”
6
7. Performance Levers
Overview | Definition
A sad but true tale A Xerox
According to a Sales Performance International study, most sales professionals forget at least study
50% of what they learned in training programs in less than five weeks. For over 44% of 6,000 showed
“Karen, what happened!?”
sales professionals surveyed, they forget in less than one month. Further, salespeople only that 87% of
remember 16% of content from sales training workshops after only 90 days.
the
knowledge
According to ES Research Group, 85-95% learned in
sales
of sales training results in no long-term training is
lost within
impact in performance. 12 weeks.
A study at Columbia University
found that up to 95% of what is
taught in training programs is Something needs to change!
wasted through a failure to transfer
learning to the workplace.
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8. Performance Levers
Overview | Definition
An alternative Performance
Lever Alignment
Performer Organization
Analysis
Function
Performance Sales & Sales
Lever Manager
Alignment Selection Position
The Six
Performance
Lever Projects Task
Sales & Sales Performance
Manager Lever
Training Identification
Real Sales
Best
Practices Performance
Capture
Improvement
8
9. Performance Levers
Overview | Definition
Performance Levers
Critical competencies, knowledge, skills, behaviors and conditions which
must be present for ethical, sustained high-performance to occur.
Conditions include other organizational elements such as compensation,
processes, policies, systems, technology, tools, culture, and more.
Examples: Appointment Setting
Competencies Knowledge Skill/Behaviors Conditions
Assertiveness How products work Tracking lead results Compensation
Attitude How to organize leads Setting appointments Processes, Policies & Procedures
Energy Level How to set appointments Opening a sales call Systems, Technology & Tools
Verbal Skill How to use collateral Probing for needs Performance Management
Sociability Sales process stages Presenting solutions Reporting
Independence How to get answers Negotiating And more…
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10. Performance Levers
Overview | Definition
Imagine an 8-cylinder engine, firing on all 8 cylinders.
1
8 2
7 3
6 4
5
10 10
11. Performance Levers
Overview | Definition
What happens if it’s only firing on 4 cylinders?
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8 2
7 3
6 4
5
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11
12. Performance Levers
Overview | Definition
What if more than one system isn’t working right?
System 1
Engine
System 2
Drive Train
12 12
13. Performance Levers
Overview | Definition
How is this different in organizations?
System 1
System 2
Hiring
Learning | Development
System 3
Compensation System 4
Processes
System 5
Coaching | Management
System Et Cetera
And More…
13 13
14. Performance Levers
Overview | Definition
How is this different in organizations?
It’s Not!
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15. Performance Levers
Overview | Definition
Types of Levers It’s “Systems Thinking”
Organization (Company)
Organization
Function (Department)
Function
Position (Role / Job)
• Task (subset) Position
Task
Competencies Knowledge Skill/Behaviors Conditions
Assertiveness How products work Tracking lead results Compensation
Attitude How to organize leads Setting appointments Processes, Policies & Procedures
Energy Level How to set appointments Opening a sales call Systems, Technology & Tools
Verbal Skill How to use collateral Probing for needs Performance Management
Sociability Sales process stages Presenting solutions Reporting
Independence How to get answers Negotiating And more..
http://en.wikipedia.org/wiki/Systems_Thinking 15 15
16. O
Performance Levers F
P
T
Overview | Definition
Sales Training + Levers = Sales Effectiveness
Sales Training Sales Effectiveness *
Is an important part of “sales effectiveness” Includes much more than training
Preceded by a training needs analysis Preceded by a performance gap analysis
Based on learning objectives Based on performance objectives
Improves workplace behaviors and
Improves knowledge, skills, or attitudes
outcomes
Requires instructional design and/or
Also requires performance consulting skills
training delivery skills
Output includes courses, curricula, training Output includes learning systems,
events (e-learning, self-directed, processes, policies, technology, systems,
classroom/instructor-led, field training) best practices and more
Tactical: Focused on who, what, why, how, Strategic: Focused on organizational
when & where alignment to support high performance
* Also referred to as Sales Force Effectiveness, Sales Enablement or Sales Performance Development
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17. O
Performance Levers F
P
T
Overview | Definition
Where to Start? I used to consider…
What can you control (or most strongly influence)?
Within that span:
What is the easiest win? (low-hanging fruit)
Where is the biggest gain? (most mileage)
What is the biggest pain? (biggest problem solved)
Logical… but these days, to get started…
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18. O
Performance Levers F
P
T
Overview | Definition
…I Suggest This:
Get sourcing, selection, and promoting right:
Identify the right competencies by role (sales/mgt)
Selection Upgrade processes for sourcing and hiring employees
Upgrade processes for developing and promoting employees
Do a Position-level Performance Lever analysis:
Put strong focus here - on the Position levers
Position Identify Levers, capture Best Practices and upgrade learning systems
Get this right for frontline Sales & Sales Management Roles
Levers Align as many supporting organizational levers as you can
Show results
Then start “tying strings” (aligning) to other levers and functions
Pure training task analysis: Identify Levers, capture Best Practices and:
Task Conduct a great task analysis
Importance Difficulty Frequency
Levers Write the tasks into training
Gather importance, difficulty and frequency to make good training decisions
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19. O
Performance Levers F
P
T
Overview | Definition
Selection + Sales & Management Levers + Supporting Org Levers
Train the Sales
Select for the Position Levers
Competencies
Train the Sales
Management Levers
Territory Consultative What & How to Train
Competencies Sales Planning
Align Management Selling
Compensation How to Diagnose Levers
Account Technology & Pipeline Account
Selection Tool Use Management Development
How to Coach
Remove Policy & How to Manage
SOP Barriers Performance
Improve Internal Track Success
Service Metrics
Note: These are just examples and may not be right for your organization
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20. O
Performance Levers F
P
T
Overview | Definition
What are They in Your World? Start Thinking Now….
Varies by Role But What Should You Add / Subtract For Your Company?
Will Include… Document and discuss ideas with top producers & leaders
Hiring Competencies Agree on a hypothesis
Recruiting | Selection Perform the analysis | Conduct the research
Compensation – Survey(s)
Reporting – Interviews | Focus Groups
And May Include… – Observation
Product Knowledge
Setting Goals & Objectives Your Performance Lever Mix
Lead Management
Technology | Tools
Account Selection
Consultative Selling Skills
Pipeline Management
Account Management
Account Development
Follow-up | Follow-through
Training | Coaching
Action Planning
…and more…
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21. Performance Levers
Overview | Definition
High-Level Overview: DIY “How To”
Performer Analysis (Who To Study)
Sales & Sales Manager Selection (How to Select, Promote & Develop)
Assessments, competencies, sourcing, interviewing, selection, tracking, validation
Performance Lever Identification (What Really Drives Performance)
Interviews to create hypotheses for Performance Levers (sales reps & sales managers)
Surveys to confirm / hone Performance Levers
Best Practices Capture (Details of Each Position/Task Lever)
Interviews / focus groups / observation to gather Best Practices
(Re)Design Training for Sales & Sales Managers (Share the Knowledge)
Learning systems: pre-work, training, post-work, reinforcement, measurement, reporting
Align Other Levers (Support the Levers Every Way Possible)
Measure, report, feedback, adjust, repeat
Which becomes….
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22. Performance Levers
Overview | Definition – The Six Projects
Performer
Analysis
Performance Lever Project Series
Performance Sales & Sales Performer Analysis
Lever Manager
Alignment Selection Sales & Sales Manager Selection
Performance Lever Identification
Best Practices Capture
Sales & Sales Manager Training
Sales & Sales Performance
Manager
Training
Lever
Identification Performance Lever Alignment
Best
Practices
Capture
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23. Performance Levers
Overview – Why Go Through All This?
Just a few of the many reasons…
Better hiring | shorter-ramp up for new hires and promotions
Geometric growth for incumbents (vs. incremental)
Greater customer satisfaction & loyalty
Break out of “80/20 prison”
Improve “average” performance levels across the organization
Rewards and incentives that drive the right behavior
Systemic alignment fosters clarity and focus – people “feel better” (reduced
frustration and cognitive dissonance)
But most importantly, we do it for the bottom-line results…
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24. Performance Levers
Overview – Why Go Through All This?
The Outcome | Bottom-line Results (Real Examples):
A $398MM sales revenue increase, a $9.96MM net profit increase and a
400% return on investment
Increased sales per rep by 47% through changes in territory management
and sales coaching
Increased sales results 600% over previous year while decreasing net
operating expenses by 21%
Improved average profitability per rep by 11% in 4 months
Improved processing efficiency (order pull-through) by 16% in 6 months.
Newly-hired and trained 4-month employees outperformed a control
group of untrained 5-year employees
Increased loans closed per FTE in the 3-month period after training by 2.3
per month (average revenue increase of $183K per class or $36.6MM in 12
months)
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25. Performance Levers
DIY | How To – The Six Projects
Performer
Analysis
Performance Lever Project Series
Performance Sales & Sales Performer Analysis
Lever Manager
Alignment Selection Sales & Sales Manager Selection
Performance Lever Identification
Best Practices Capture
Sales & Sales Manager Training
Sales & Sales Performance
Manager
Training
Lever
Identification Performance Lever Alignment
Best
Practices
Capture
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26. Performance Levers
DIY | How To – Performer Analysis
Performer
Analysis
Performance Lever Project Series
Performance Sales & Sales Performer Analysis
Lever Manager
Alignment Selection Sales & Sales Manager Selection
Performance Lever Identification
Best Practices Capture
Sales & Sales Manager Training
Sales & Sales Performance
Manager
Training
Lever
Identification Performance Lever Alignment
Best
Practices
Capture
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27. Performance Levers
DIY | How To – Performer Analysis
Performer Analysis
Performer
Analysis WHAT:
Identify top, average & low producing sales
reps.
Performance Sales & Sales
Lever Manager Identify top, average & low producing sales
Alignment Selection managers.
HOW:
Analyze a year of sales data & create a
weighted scoring system across multiple
metrics/products.
Sales & Sales Performance
Manager Lever
Some discussion & surveys with managers.
Training Identification
WHY:
Best Provides a mix of performers to study in various
Practices ways, to determine true differentiating factors.
Capture
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28. Performance Levers
DIY | How To – Performer Analysis
Example of Performer Categories n=
New = >30 days, <271 days
Top New Reps Often “top” includes tiers: 39
Top = In the Top Quartile of all metrics
4% | 10% | 15% | 25%
Seasoned = >365 days (many 5+ years)
Top Seasoned Reps 307
Top = In the Top Quartile of all metrics
Average Reps Selected randomly, between mean and median production 298
Low Producer Reps Selected randomly from the bottom 20% 348
Top SM Producers Top = In the Top Quartile of all metrics, personal production 15
Top SM Team
Top = Top Quartile all metrics, w/o SM results + survey of their Mgr 52
Managers
Top = In Top Producer group personally + Top Quartile all metrics w/o SM
Top SM Both 5
results + survey of their Mgr
Average SM (Team) Selected randomly, between mean and median production 79
Low Performing SM
Selected randomly from the bottom 20% 32
(Team)
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29. Performance Levers
DIY | How To – Performer Analysis
Example of Sales Metrics
Metrics Quarterly Weighting *
Create a weighted scoring system…
# of Sales Med-High (2-3)
$ Volume Low (1)
Pull-Through Rate Med (1-2)
Avg # Sales/Day/Rep High (3-4)
Avg $ Vol/Day/Rep Med-High (2-3)
Cross-Sell Percent Med (1-2)
* Review the last 12 months & the last quarter. Weight the quarter more heavily. Blend the scores.
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30. Performance Levers
DIY | How To – Performer Analysis
Example of Analysis – Sales Reps
Low
High
4th Quartile
Mean Avg. Sort Descending
Median Highlight 4th Quartile
Apply Weighting
Repeat & Total
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31. Performance Levers
DIY | How To – Performer Analysis
Example of Analysis – Sales Reps
Low
High
4th Quartile
Mean Avg. Sort Descending
Median Highlight 4th Quartile
Apply Weighting
Repeat & Total
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32. Performance Levers
DIY | How To – Performer Analysis
Example of Analysis – Sales Managers
Consider things like:
Avg Productivity
Avg # and $/rep /time
Engagement: % of team
producing and/or goal %/rep
Total Team Sales: $ and #
Avg Time to 1st Sale (new reps)
Pipeline Stats & Pull-through %
Cross-sell Ratios or Penetration
Trend Indicators (actual # last
month, avg/month over 13
weeks, avg/month past year)
Survey Their Managers
Remove the “luck” factor
Remove “inherited territory”
Remove “one great rep”
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33. Performance Levers
DIY | How To – Performer Analysis
Partner with Smart People with SAS, SPSS, or Minitab *
to Crunch Data for Validity, as Needed
* Of course, learning research methodology and statistics is a viable option for the brave…
33 33
34. Performance Levers
DIY | How To – Sales & Manager Selection
Performer
Analysis
Performance Lever Project Series
Performance Sales & Sales Performer Analysis
Lever Manager
Alignment Selection Sales & Sales Manager Selection
Performance Lever Identification
Best Practices Capture
Sales & Sales Manager Training
Sales & Sales Performance
Manager
Training
Lever
Identification Performance Lever Alignment
Best
Practices
Capture
34
35. Performance Levers
DIY | How To – Sales & Manager Selection
Sales & Sales Manager Selection
Performer
Analysis WHAT:
Psychometric assessments that measure
thinking styles, behavioral traits and interest.
Performance Sales & Sales
Lever Manager
Alignment Selection HOW:
Most vendors now offer online assessments.
WHY:
The assessments will help you identify
competencies. You can identify statistically
Sales & Sales Performance validated patterns that predict success, based
Manager Lever
Training Identification on your top performers.
You can use the results to further develop &
Best coach your current leaders.
Practices You can better identify future leaders, who are
Capture
like your very best today.
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36. Performance Levers
DIY | How To – Sales & Manager Selection
Methods
Competency Identification
Interview Methods
Other Checks
Psychometric Assessments
Job Matching
Blended Models
My Favorite?
Blended w/ Psychometric + Job Matching
Sources:
Professor Mike Smith, University of Manchester, August 1994
John E. Hunter and Ronda F. Hunter, Validity and Utility of Alternative Predictors of Job Performance, Psychological Bulletin, Vol. 96, No.1, 1984, p. 90
Robert P. Tett, Douglas N. Jackson, and Mitchell Rothstein, Personality Measures as Predictors of Job Performance: A Meta-Analytical Review,
Personnel Psychology, Winter 1991, p.703. Michigan State University’s School of Business. 36
37. Performance Levers
DIY | How To – Sales & Manager Selection
Psychometric Assessments
Thinking | Cognitive Factors
Behavioral Traits One-third of the
Occupational Interests Hiring Decision
Get it right:
Normative vs. Ipsative
Focus on Predictive Validity
Use the same Performer Categories from your other Analysis
Compare top | middle | bottom to look for differentiating factors
Hire, develop and promote based on those factors, as well as performance
data (whenever possible)
Bring in experts
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38. Performance Levers
DIY | How To – Performance Lever Identification
Performer
Analysis
Performance Lever Project Series
Performance Sales & Sales Performer Analysis
Lever Manager
Alignment Selection Sales & Sales Manager Selection
Performance Lever Identification
Best Practices Capture
Sales & Sales Manager Training
Sales & Sales Performance
Manager
Training
Lever
Identification Other Performance Lever Alignment
Best
Practices
Capture
38
39. Performance Levers
DIY | How To – Performance Lever Identification
Performance Lever Identification
Performer
Analysis WHAT:
Identify the knowledge, skills, behaviors or
conditions that must exist for ethical, sustained,
Performance Sales & Sales
Lever Manager high performance to occur.
Alignment Selection Formulate hypotheses about what the levers are
for frontline sales and sales management roles.
Confirm and validate the levers through research.
HOW:
Through discussion, surveys, interviews, focus
Sales & Sales Performance
Manager Lever
groups, and observation of frontline sales reps
Training Identification and their managers.
Best
WHY:
Practices This will confirm where to focus your efforts
Capture
capturing Best Practices, which provides training
content.
39
40. Performance Levers
DIY | How To – Performance Lever Identification
Formulating the Hypotheses
Start with some known practices
Talk with:
Executives
Other leaders
Frontline sales reps
Frontline sales managers
Sales operations and support staff
And possibly, customers
Label the big buckets and detail the tasks
Don’t get married – you’re just dating
Build the surveys to confirm the hypotheses
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41. Performance Levers
DIY | How To – Performance Lever Identification
Identify the high-level
Survey Design Performance Levers (hypotheses)
Document the potential tasks for
the Performance Lever
Ask what you’ve missed
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42. Performance Levers
DIY | How To – Performance Lever Identification
Survey Design
Clearly define Performance Lever
Define the role
Add instructions for
completing the survey
42
43. Performance Levers
DIY | How To – Performance Lever Identification
Survey Design (Scales)
Rate the statement provided.
Using empathy statements to acknowledge a prospect’s situation/feelings
How much do you agree it’s a
Performance Lever?
If rated 1-2, next question.
If rated 3-5:
Importance & Difficulty
And in some cases:
Frequency: Actual & Should
In addition, you should ask what you missed, by Lever, and a handful of other
questions – such as normal demographics & Continue | Start | Stop.
43
44. Performance Levers
DIY | How To – Performance Lever Identification
Look Familiar?
Partner with Smart People with SAS, SPSS, or Minitab *
to Crunch Data for Validity, as Needed
* Of course, learning research methodology and statistics is STILL a viable option for the brave…
44 44
45. Performance Levers
DIY | How To – Best Practices Capture
Performer
Analysis
Performance Lever Project Series
Performance Sales & Sales Performer Analysis
Lever Manager
Alignment Selection Sales & Sales Manager Selection
Performance Lever Identification
Best Practices Capture
Sales & Sales Manager Training
Sales & Sales Performance
Manager
Training
Lever
Identification Performance Lever Alignment
Best
Practices
Capture
45
46. Performance Levers
DIY | How To – Best Practices Capture
Best Practices Capture
Performer
Analysis WHAT:
Document the best practices and differentiating
behaviors of top performers, which can be
Performance Sales & Sales
Lever Manager replicated and trained.
Alignment Selection
HOW:
Through discussion, interviews, focus groups
and observation of the frontline sales reps and
managers identified during Performer Analysis.
Sales & Sales
Manager
Performance
Lever
WHY:
Training Identification To share best practices broadly and (re)design
training around them.
Best
Practices
Capture
46
47. Performance Levers
DIY | How To – Best Practices Capture
Data Collection Methods
Interviews
In-person, phone, webinar
Focus Groups Getting the Straight Scoop
In-person, webinar What really happens “out there”
Account for the Hawthorne effect
Field Observation Trust, truth and strict confidentiality
5-10 top performers Autonomy, mastery and purpose *
3 average
2 in ninth decile
More, pending time, resources & budget
* Thank you, Daniel Pink (author of Drive)
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48. Performance Levers
DIY | How To – Sales & Sales Manager Training
Performer
Analysis
Performance Lever Project Series
Performance Sales & Sales Performer Analysis
Lever Manager
Alignment Selection Sales & Sales Manager Selection
Performance Lever Identification
Best Practices Capture
Sales & Sales Manager Training
Sales & Sales Performance
Manager
Training
Lever
Identification Performance Lever Alignment
Best
Practices
Capture
48
49. Performance Levers
DIY | How To – Sales & Sales Manager Training
Sales & Sales Manager Training
Performer
Analysis WHAT:
(Re)design sales and sales management training
(learning systems) around your best practices.
Performance Sales & Sales
Lever Manager Ensure that your training includes the right
Alignment Selection content and produces ethical, sustainable, high
performance in the real world.
HOW:
Develop courses and implement learning and
transfer systems, incorporating what you’ve
Sales & Sales Performance
Manager Lever
learned in this research.
Training Identification
WHY:
Best To improve training, further share best
Practices practices, and improve work performance of
Capture
frontline sales reps and sales managers.
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50. Performance Levers
DIY | How To – Sales & Sales Manager Training
Sales Training is the Easy Part
Teach Position Performance Levers and Tasks!
Teach sales reps:
If new, yes, do onboarding and orientations, but then…
Focus on the major Performance Levers
Teach the Performance Lever Tasks
Create and share Performance Support
Share Knowledge but Focus on Behaviors & Skills
Build-in extensive Transfer Plans
Teach Them The Replicable
Best Practices of Top Performers
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51. Performance Levers
DIY | How To – Sales & Sales Manager Training
As You Develop Sales Manager Training, Remember…
Frontline Sales Management is the Pivotal Role!
Teach managers:
What you teach reps (in advance)
How to diagnose and identify issues with Performance Levers
How to coach to improve levers (behavioral coaching)
How to develop motivational action plans (management science)
How to reinforce, reward, and manage performance
NOTE: Other Lever – Reward managers for the above behaviors
Teach Them To Get Results Through Others
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52. Performance Levers
DIY | How To – Performance Lever Alignment
Performer
Analysis
Performance Lever Project Series
Performance Sales & Sales Performer Analysis
Lever Manager
Alignment Selection Sales & Sales Manager Selection
Performance Lever Identification
Best Practices Capture
Sales & Sales Manager Training
Sales & Sales Performance
Manager
Training
Lever
Identification Performance Lever Alignment
Best
Practices
Capture
52
53. Performance Levers
DIY | How To – Performance Lever Alignment
Performance Lever Alignment
Performer
Analysis WHAT:
Review policies, practices, processes,
procedures, systems, compensations, and other
Performance Sales & Sales
Lever Manager organization factors.
Alignment Selection
HOW:
By sharing study results with other
organizational leaders and discussing how you
can best support the Performance Levers and
Best Practices.
Sales & Sales Performance
Manager Lever
If you have an OD team, get them involved.
Training Identification
WHY:
Best To align as many other organizational elements
Practices as possible to support the performance levers
Capture
and best practices – to create an environment
which supports sales success as much as
possible.
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54. Performance Levers
DIY | How To – Performance Lever Alignment
Recommended Initial Focus for Alignment
Get sales compensation right – rely on experts, if needed
Get out of the “Sales Prevention Business”
Ask frontline reps and managers, you’ll hear plenty to fix
Eliminate restrictive policies designed for situations that occur
once a quarter
Conduct a Force Field Analysis* with top sales performers and
sales managers – remove restraining forces first
* Thank you, Kurt Lewin, for Force Field Analysis
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55. Case Example
Sales Performance Levers Applied to:
B2B Financial Services
Wholesale Mortgage Origination Channel
Low Base | High Commission
56. Case Example
B2B Financial Services Company
The Business Situation and Problems
Good growth rate – Wall Street darling
Original team was doing very well (top 20% delivering 80% of production)
New Hires struggling – annualized NH turnover was growing fast
Sales training was one week in a classroom, all lecture
There was no reinforcement, planned transfer or evaluation
Reporting was fragmented, hard to interpret, not actionable
The best of the new sales people were promoted into management, but…
No management training and managers each managed their own way
Coaching was rare
Performance management was, “You did X last month. You need to do Y next
month or you’ll be fired”
If you had industry sales experience, wanted the job, and could fog a mirror,
the job was yours
Few understood the complex compensation system.
56
56
57. Case Example
B2B Financial Services Company
Challenge from the President
The President told our Performance Development team:
“I believe in this group and what you were hired to do. But I
want to be clear. If you can’t deliver on your promises about
improving performance, you won’t be sitting at this table this
time next year.”
57
57
58. Case Example
B2B Financial Services Company
Performance Projects
Analysis of past and past results | current state | current results. (Point A)
Discussion with senior management on strategic direction, goals and
performance objectives. (Point B)
Analysis of traits, habits, skills and practices of carefully selected Top, Middle
and Low Performers…
Individual Interviews | Multiple Surveys | Focus Groups | Observations
“Hiring Right” project – what’s the “right stuff” for our roles? How do we
hire, develop and promote people effectively?
Process analysis and documentation review for possible Lean projects.
Review of compensation and incentive programs and practices for sales.
Review of sales management practices.
Customer Interviews, Surveys, and Focus Groups.
So, basically, we ran The Six Projects (and included customer feedback)
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58
59. Case Example
B2B Financial Services Company
How We Created a Performance Enhancing System
Vetted the analysis, identified the levers and communicated everywhere
Created 3-week sales training curriculum for new hires (2 weeks remote + 1
week in class) – taught all levers, changed behaviors in class & certified
All new managers went through the program and were certified
Taught incumbent managers separately and certified
Developed a coaching program for managers (and yes, certified them)
Aligned comp, performance management and reporting/metrics
Started work on the supporting levers
Constant communication | monitoring with dashboard reports
Quick feedback loops, performance hotline, adjusted course as needed
Transitioned leaders to take ownership and accountability
Top-down, C-level support was critical
59 59
60. Case Example
B2B Financial Services Company
Some Results
Reduced average ramp-up time to minimum acceptable performance for
newly-hired/trained reps from 6 months to 3
Increased average purchase from $156K to $167K
Reduced turnover from 44% to 28% (new hire one-year from 78% to 24%)
Increased size of “top producer” performers from 9% to 14%
Increased New Customer “Stick Rate” (stat not available)
Decreased “order” processing time by 16%
Improved order pull-through from 47% to 54%
But most importantly…
$398MM Increase in Revenue $9.9MM Increase in Net Profit 400% Training ROI
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60
61. Case Example
B2B Financial Services Company
Real-World Tips & “Gotchas” From This Case
Analysis of traits, habits, skills and practices of carefully selected Top,
Middle and Low Performers
Validate performer status closely: Especially rule out “inherited a great territory”
and other factors that mask “earned” top-producer status
Methods: Individual Interviews | Multiple Surveys | Focus Groups |
Observations You must see what they’re doing!
Insert the Voice of the Customer – whenever possible: talk to them and
listen!
Be ruthless on process reviews. Streamline!
Forget “sales experience.” Assess | Hire | Train | Develop
Listen most closely to the real top producers, those moving up steadily, and
superstar new hires who leap out of the gate
Agree on what success looks like, with executives, upfront, and how it will
be measured
61 61