The Correlation Between the Findings and Performance

Posted by Dave Kurlan on Fri, Jul 28, 2006 @ 00:07 AM

Predictive Validity is a powerful form of validation but It's not possible to correlate the findings - weaknesses, strengths, skills, problems, scores, etc. - to sales performance. I'll tell you why in a moment. We can however, use Predictive Validity to correlate our hiring recommendations to success. That is, 95% of those recommended by our sales specific assessment and subsequently hired are considered successful by their employers. And 75% of those not recommended but hired anyway, fail.

Here's why you can't correlate specific findings to sales performance. Consider the following examples with John and Bill:

John has two major weaknesses; need for approval, and self limiting record collection, but has strong desire and commitment. He goes to work for a company selling $150K capital equipment, a complex sale, to C-Level executives against brutal competition and a long sell cycle.

Bill has the exact same weaknesses but goes to work for a manufacturer selling widgets to purchasing agents for a retail chain - a very transactional sale with little competition in a short sell cycle.

Bill will be more successful than John every time, but John will be more successful than the salespeople that were hired without our assessment. It will take 18 months to prove that out.

Using another measure, John, while less successful than Bill, makes his first sale for $150K at month 18, while Bill closes 23 accounts totaling $50,000 his third month. So you can't use sales as a measure of performance to correlate the findings either.

Here's another try - Bill has a $25,000 quota and surpassed it by 100%. John has no quota until month 18 at which time it's $125K. He surpasses it by 20%.

We can use example after example and the only suitable measures are to correlate performance to the hiring recommendation using the manager's measure of success - whether the salesperson is meeting or exceeding expectations, however different they may be from company to company, industry to industry, group to group and position to position.

(c) Copyright 2006 Objective Management Group, Inc.

Topics: assessment, Featured

Subscribe via Email

View All 1,700 Articles

About Dave

Best-Selling Author, Keynote Speaker and Sales Thought Leader.  Dave Kurlan's Understanding the Sales Force Blog earned a medal for the Top Sales & Marketing Blog award for six consecutive years. This article earned a Bronze Medal for Top Sales Blog post in 2016, this one earned a Silver medal for 2017, and this article earned Silver for 2018. Read more about Dave.

Email Dave

View Dave Kurlan's LinkedIn profile View Dave Kurlan's profile

Subscribe 

Receive new articles via email
Subscribe
 to the Blog on your Kindle 

 

 

Most Recent Articles

Awards

Vendor Neutral Certified 100 SalesTech Vendor Objective Management Group

Sales & Marketing Hall of Fame Inductee

MVP2018_badge_winner_SPC

Leaading Sales Consultants 2018

Top Sales Awards 2018 - Individual Blog -  Silver

Top Sales Awards 2018 - Article/Post -  Silver


Top Sales Awards 2018 - Assessment Tool -  Gold

 2016 Top Sales & Marketing Individual Blog - Bronze

Top Sales & Marketing Awards 2015 -  Bronze - Thought Leader

2016 Top Sales & Marketing Podcast - Gold

2016 Top Sales & Marketing Webinar - Gold

Top Sales & Marketing Awards 2015 - Bronze - eBook/White Paper

Top 50 Sales & Marketing Blog 2019

Dave Kurlan Top 50 Sales Influencer 2015

Sales Pro Insider Blog

Top 50 most innovative sales bloggers

Top100Strategic

Top100SalesInfluencersOnTwitter



Hubspot Top 25 Blogs

 

Free Tools

Sales Process Grader

Sales Candidate Assessment Free Trial

Sales Ghost Calculator

Sales Force Grader

Sales Hiring Mistake Calculator

FREE Recruiting Process Grader