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Data.com Connect Presents: Dave Stein - How to Hire Great Salespeople

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Data.com Connect Presents: Dave Stein - How to Hire Great Salespeople

  1. 1. © 2015 – Dave Stein, Inc. – davestein.biz 1
  2. 2. How to Hire Great Sales Reps Dave Stein @davestei davestein.biz Notice: This presentation is copyrighted. Quotation in whole or in part must be accompanied by attribution to: “Dave Stein, Inc. – davestein.biz” @davestei @Datadotcom
  3. 3. © 2015 – Dave Stein, Inc. – davestein.biz 3 Sales People: The Situation • ESR’s research shows that: – 20 to 33% of sales people aren’t suited for the job – After two years, 4 out of 5 new hires either: • Aren’t with the same company or • Are not delivering at or above quota. – Use of a hiring process can reduce wrong hires by 60 – 80%. • The cost of a wrong hire is between $300k and $1m. @davestei @Datadotcom
  4. 4. © 2015 – Dave Stein, Inc. – davestein.biz 4 Sales People: The Situation • 80% of all resumes are misleading • 20% state fraudulent degrees • 30% show altered employment dates • 40% have inflated salary claims • 30% have inaccurate job descriptions • 25% list companies that no longer exist, and • 27% give falsified references www.HireRight.com @davestei @Datadotcom
  5. 5. © 2015 – Dave Stein, Inc. – davestein.biz 5 Our Goal for This Session Understand key components of a recruitment and maintenance process that will result in a more effective sales team. Please key your questions into the question box at any time! @davestei @Datadotcom
  6. 6. © 2015 – Dave Stein, Inc. – davestein.biz 6 Poll #1 What is your role within your company? (Single answer option.) 1. Sales manager 2. Sales rep 3. Sales leadership 4. Other management role 5. Consultant/student @davestei @Datadotcom
  7. 7. © 2015 – Dave Stein, Inc. – davestein.biz 7 Poll #2 Which of the following do you employ when selecting candidates? (Multiple answer option.) 1. Structured behavior-based interview 2. Psychometric/Predictive test(s) 3. Simulated sales call/presentation 4. Income verification 5. Background check @davestei @Datadotcom
  8. 8. © 2015 – Dave Stein, Inc. – davestein.biz 8 Reasons for Mis-Hiring: • Mis-hirings are caused by hiring sales people: 1. Based upon gut feel 2. Who are like us 3. Who sell us effectively in the interview 4. Based only on a strong track record in the past 5. Who are recommended by others without going through an objective assessment 6. Whose references we don’t effectively check. @davestei @Datadotcom
  9. 9. © 2015 – Dave Stein, Inc. – davestein.biz 9 Hiring Model for One Job Category Build Foundation Once • Assessment • Profile • Job specifications • Interview questions • Positioning • Publicize • Hiring team Repeatable Process for Each Candidate • Screen • Income verification! • Structured interview 1 • Reference checks / • Structured interview 2 • Simulations / Sales call / presentation • Psychometric test, background check • Reference checks • Negotiate offer • Customized ramp-up begins @davestei @Datadotcom
  10. 10. © 2015 – Dave Stein, Inc. – davestein.biz 10 The Hiring Team • Three people • To be trained in: – Providing consistent messages about the role and your company – Interviewing skills and concepts. (Interviewing is a skill.) – Taking notes: briefing and debriefing – Reference checking – Objectivity. @davestei @Datadotcom
  11. 11. © 2015 – Dave Stein, Inc. – davestein.biz 11 Week (Best- case) Event Who Methods 1 Screen candidate resume Rebecca Use resume Filter 1 Phone candidate to confirm his or her interest in the position, and to ask basic questions. Considered as First Interview Rebecca Use job description document as a guideline 2 First interview Rebecca Use “First Interview Guide.” Telephone interview is fine. 2 Initial reference check Rebecca 3 Second interview Brian Use “Second Interview Guide” Live if possible. 4 Third interview (optional) Richard Will probe more deeply into areas of concern, based upon detailed notes from previous interviewers. Telephone or face-to-face 4 Thorough reference checks (in parallel with third interview) Rebecca Use references derived from second/third interview. Attempt to find blind references (see Reference Check document) Get income verification 4 Candidate takes Predictive Index PPA 5 Visit to Miami and 2 Simulation exercises Brian Face to face meeting with Hiring team and Simulates Avisena’s sales situation(s). 6 Negotiate offer Brian We expect a candidate to negotiate for something. If you don’t feel like they handle this critical step effectively, don’t proceed. 7-8 Start and ramp-up Brian Use customized “Ramp-up Plan” to assure that skill gaps identified during interviews are addressed and risks mitigated. This must be formalized. The Hiring Model – Repeatable Process @davestei @Datadotcom
  12. 12. © 2015 – Dave Stein, Inc. – davestein.biz 12 First: Assess Your Situation Questions: • How do your buyers buy? • How well are your people selling? • What are the skills, traits and behaviors of your winners? • What don’t your less-effective reps have? • What resources (time, money, people) do you have for training? • …..? Sources: • Customers • Existing reps • Competitors • Business Partners • …..? @davestei @Datadotcom
  13. 13. © 2015 – Dave Stein, Inc. – davestein.biz 13 Create the Profile • Skills/Competencies • Measurable, learnable, “what you’ve learned to do.” • Driving a car, baking a cake • Attributes/Traits • Inherent, mostly unchangeable, “who you are.” • Intelligence, musical talent • Behaviors • Habits, manifestation of skills and traits A profile must be customized for this job, in this company, at this time, for these customers, with these resources… @davestei @Datadotcom
  14. 14. © 2015 – Dave Stein, Inc. – davestein.biz 14 Critical Sales Skills • Listening • Business acumen • Political selling • Competitive positioning • Negotiation • Planning • Industry knowledge Critical Sales Traits • Resilience • Self-starter • Empathy • Integrity • Creativity • Courage • Flexibility Profile Skills and Traits @davestei @Datadotcom
  15. 15. © 2015 – Dave Stein, Inc. – davestein.biz 15 Profile Example: One Skill Skills & Traits Scale Behaviors Skill: Business Knowledge Low Has a basic understanding of how businesses operate. Unacceptable Medium Can explain department functions, organizational dynamics, and is comfortable selling to department managers. Unacceptable High • Understands and can explain customer and industry value chain issues • Can read and interpret financial statements • Can talk comfortably with executives of different departments about how their product will contribute to that executive achieving their business objectives. @davestei @Datadotcom
  16. 16. © 2015 – Dave Stein, Inc. – davestein.biz 16 Questions Engineered to determine whether the candidate possesses the trait or skill without telegraphing the “right” answer. @davestei @Datadotcom
  17. 17. © 2015 – Dave Stein, Inc. – davestein.biz 17 Interviewing: Don’t Ask Leading Questions To determine if someone is process-oriented, don’t ask: • “What process do you follow when you get a sales lead?” But rather: • “What do you do when you get a sales lead?” Wrong • “How good are you at negotiating?” Right • “Describe in detail your most recent difficult negotiation.” @davestei @Datadotcom
  18. 18. © 2015 – Dave Stein, Inc. – davestein.biz 18 Hire for Traits, Train for Skills Skills Traits Hire and Support Train and Coach Another Role? Pass… @davestei @Datadotcom
  19. 19. © 2015 – Dave Stein, Inc. – davestein.biz 19 Requirements • How many years of experience? • In what roles? • In what industries? • What skills • Currently employed? • With what levels of performance? • With what schooling and training? • Jobs per year? • Time between jobs? • Travel, relocation, remote office? • What else? ……… Responsibilities • Build and manage a pipeline and continually generate new opportunities within the Major Accounts space • Conduct online sales presentations and prepare proposals for customers • Meet and exceed quarterly quotas • Forecast sales activity, enter and maintain prospects in CRM System • Work closely with and Client Services Group to ensure rapid and widespread adoption of our services, as well as retention of existing customer base Create Job Specification @davestei @Datadotcom
  20. 20. © 2015 – Dave Stein, Inc. – davestein.biz 20 The “Resume Filter” • Highest level qualification tool • Derived from job specification • The “musts” and “must not’s” – Number of jobs, average tenure – Sales performance against quota – Industry experience/connections – Key traits, i.e. work by oneself – Size of opportunities – Skills matching your requirements – … • Require income verification records @davestei @Datadotcom
  21. 21. © 2015 – Dave Stein, Inc. – davestein.biz 21 First Structured Interview • Set expectations for candidate. • ~ 60 minutes • Phone is recommended • Establish relationship • Gather names for reference checking • Read questions, take notes • Look for cultural fit. @davestei @Datadotcom
  22. 22. © 2015 – Dave Stein, Inc. – davestein.biz 22 Interviewing Sales Candidates The single most important success factor in interviewing candidates is objectivity. Being objective is easier when you employ a structured interview. @davestei @Datadotcom
  23. 23. © 2015 – Dave Stein, Inc. – davestein.biz 23 Interviewing: Other Critical Success Factors • Prepare for the Interview – Review resume – Review prior interview comments and briefings – Determine which questions you will ask – Seek to understand weak and strong areas – Commit to staying on process. @davestei @Datadotcom
  24. 24. © 2015 – Dave Stein, Inc. – davestein.biz 24 What to Watch Out For • Rambling – long answers • Changing the subject • Not listening to the questions • The candidate not reading the situation, e.g. the pace, process • Little or no homework. Shows a lack of interest or process or both • Watch the eyes and body language. @davestei @Datadotcom
  25. 25. © 2015 – Dave Stein, Inc. – davestein.biz 25 Interviewing: Stories • Use stories to dig into a particular skill or trait. – Setup: “Tell me about the last big opportunity…” – Use who, what, when, where, why and how. – Ask, “What were you thinking then?” – Capture names for reference checking – Listen for inconsistencies, stalling, changing the subject @davestei @Datadotcom
  26. 26. © 2015 – Dave Stein, Inc. – davestein.biz 26 Second Interview • To validate • In person if possible, two interviewers – Divide up questions in advance. • Deep probing for specific behaviors identified from profile and 1st interview • Looking for inconsistencies • Gather additional references • Make sure you have been briefed by prior interviewer @davestei @Datadotcom
  27. 27. © 2015 – Dave Stein, Inc. – davestein.biz 27 Predictive/Psychometric Test • Very effective in predicting behavior and success • New generation are hard to trick • Those produced by a sales training company can be biased • Should be used to validate decision • Web-based. 20-30 minutes. • No reason not to do it.
  28. 28. © 2015 – Dave Stein, Inc. – davestein.biz 28 Simulation • Sales call –Skills required to call on “typical” buyer early in selling cycle • Style, communication, objection handling, leadership, etc. • Knowledge of customer’s business • Presentation –Skills required to present to “typical’ buy • Abilities in one-to-many situation @davestei @Datadotcom
  29. 29. © 2015 – Dave Stein, Inc. – davestein.biz 29 Reference Checks • If you assume candidates oversell themselves, this is a must! • Types – Offered (worst) – Revealed (next) – Blind (best) • Customers, supervisors, peers • Use LinkedIn @davestei @Datadotcom
  30. 30. © 2015 – Dave Stein, Inc. – davestein.biz 30 Customized Ramp-Up (On-Boarding) Plan • The on-boarding plan should be discussed openly with candidate during interview cycle • It resolves gaps between candidate’s skills and what is required • Specific actions, resources, dates, measurements – Self-directed learning, corporate resources, books, programmes, in- place assignments, etc. • Hire for probationary period. Clearly state criteria. @davestei @Datadotcom
  31. 31. © 2015 – Dave Stein, Inc. – davestein.biz 31 On-Boarding Plan Skill Description Remedy Objective Date Business savvy Assess a company’s health and comparative position via financial statements 1. Take a program in reading and analyzing financial statements. 2. Read Analyzing Financial Statements by Jones. 3. Spend 8 hours with our finance manager. Fully up to speed on understanding financial statements and company financial position 3 months from start date Monthly “check-in” Knowledge of our customers’ industry Know the history, trends, key players, winners, losers, pundits, challenges, opportunities, risks, etc. 1. Read industry trade magazines 2. Join trade association, 3. Visit 10 of our customers 4. Read research securities analysts, etc. Be able to have a 20- minute conversation with a C-level executive 3 months from start date Monthly “check-in” @davestei @Datadotcom
  32. 32. © 2015 – Dave Stein, Inc. – davestein.biz 32 Summary • It’s all about process • Profile • Objectivity • Hiring team • Structured interviews • Simulation • Reference checks/income verification/background check • Reference checks • Custom on-boarding process @davestei @Datadotcom
  33. 33. Dave Stein @davestei davestein.biz Notice: This presentation is copyrighted. Quotation in whole or in part must be accompanied by attribution to: “Dave Stein, Inc. – davestein.biz” Questions? @davestei @Datadotcom

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