How the Correlation Between Restaurants and Covid 19 Applies to Sales Assessments

Posted by Dave Kurlan on Thu, Sep 17, 2020 @ 06:09 AM

wearing masks

Do you hate meetings as much as I do?

They're the worst.  But I have one weekly meeting that's always uplifting and productive.

I'm talking about my weekly meeting with John Pattison, COO of Objective Management Group (OMG). He happened to mention a report released by the Centers for Disease Control (CDC) pointing to the correlation between people who recently dined at a restaurant and later tested positive for Covid-19.  Of course the media was doing its best to spread misinformation as the article titles below suggest:

The report actually included facts they didn't share in their titles, like:

  • It was not known whether they dined inside or outside
  • It did not say that they contracted Covid-19 at the restaurant or because they ate at a restaurant

restaurants

John pointed out that this is a clear case of correlation, but not causation.  In other words, there is no proof that eating at restaurants caused anyone to contract the virus.  He said there could be many reasons why people eating at restaurants also have higher rates of infection.  For example, people who don’t like to wear masks might be more likely to eat at restaurants.  Assuming that is true, the cause is more likely to be a lack of mask wearing, not eating in the restaurant.  

But does it really matter whether this is causation?  Is there that big of a difference?  Is correlation enough?  It depends on what you are trying to show.  Let's take sales assessments for example.

All assessments produce a number of findings and scores, most in the context of personality or behavioral styles.  When used to assess salespeople, they can make a case that there is a correlation between a finding like drive, and sales success.  Correlation, not causation.   Why?  because drive does not cause sales success.  There are lots of people with drive who were epic failures at selling!

Personality and behavioral styles assessments are not sales specific, even when their publishers refer to them as sales assessments.  They were not built to measure sales competencies, but instead attempt to correlate personality and behavioral findings to sales.  None of the assessments in this category are sales specific, they don't measure actual sales competencies, and there is no causation. The information they provide is simply nice to know, but unfortunately, not predictive of sales success.  

OMG's sales assessment was built for sales, is used only for sales, measures all 21 Sales Core Competencies, has 280 sales-specific findings and is extremely predictive of sales success.  For an assessment to have predictive validity though, its findings must correlate to on the job performance.  There's that correlation word again.  Since there only needs to be correlation, does that mean that causation isn't important?  Correlation is not required, but it is vitally important.  

For example, one of the differences between sales producers and sales imposters is the difference between whether they can sell versus whether they will sell.  Can vs. Will. Who needs another salesperson whose best sales call is the one where they convince you to hire them?  You want salespeople who will find and close new business.  There is causation between Will to Sell and sales success.

Of course there are other examples.  A candidate who scores high in OMG's Consultative Seller competency and Value Seller competency will perform successfully in a complex sales environment.  There is causation. 

A candidate who scores high in the Hunter competency will succeed in a cold-calling sales environment.  Causation.

Here's another way of looking at correlation and causation.  Someone who scores well in a personality assessment will generally do quite well at developing, building and maintaining relationships.  It's a one-way correlation.  Why?  Because someone who is good at developing, building and maintaining relationships is not necessarily a good salesperson.  There is no causation.

Back to my meeting with John.  While we were meeting, Guy Kawasaki's twitter post appeared.

The OMG Sales Candidate Assessment is a really great cake but John and I agreed that despite a visual dashboard that tells the story of the candidate and effectively illustrates the scores for all 21 Sales Core Competencies, it has dog poop for frosting compared to the look we believe we can create.  We agreed to reimagine the dashboard and how we visually show each of the 21 Sales Core Competencies throughout the report so that we have the sweetest, most beautiful looking frosting ever spread on an assessment.  Stay tuned for an all-new look to the OMG Sales Candidate Assessment coming in early 2021.  In the meantime, it would be malpractice to hire salespeople without taking advantage of the most accurate and predictive sales candidate assessment on the planet.

Images copyright 123RF and 123 RF

Topics: Dave Kurlan, recruiting salespeople, Sales Candidate, hiring salespeople, Correlation, personality assessments, personality test, coronavirus, covid-19, causation

One Thing Your Company Must Do Right Now to Increase Sales

Posted by Dave Kurlan on Wed, May 13, 2020 @ 12:05 PM

cherry-picking

Most in the cherry-picking news media are continuing to pound us with bad stuff: record unemployment, 80,000 dead, lockdowns into August, 30 trillion in debt, economy will be slow to recover, you'll be jailed if you open your business too soon, schools to remain closed in September, people will die, etc.  But there is good stuff going on that they aren't talking about because, for the most part, the media doesn't care about sharing the good stuff.  It's bad for ratings.   

For example, since the 30 million who temporarily lost their jobs are receiving unemployment at more than 100% of what they were earning before, they aren't facing the hardship the media would lead you to believe and the money is there for a reboot when it comes.  But the really good news is for companies that are able to hire salespeople.  Consider this!

Do you have cash on hand?  Do you have access to cash?  Money is almost free right now so don't discount traditional borrowing!  If you can invest some money, now is definitely the time to hire salespeople.  Whether you want to expand your geographical coverage, the verticals you call on, the audience you sell to, the products you offer, want more saturation in your existing space, or want to upgrade the quality and performance of your existing sales force, THERE WILL NEVER BE A BETTER TIME TO HIRE SALESPEOPLE.  EVER.

Consider the following statistics from Objective Management Group (OMG), who have assessed 1,972,665 salespeople.HIRING-PANDEMIC

You are looking at historical shifts in statistics!

If you can find a way to spend the money now (cost of tools and 3-months salary), and you use OMG'S predictive sales candidate assessment, you will see some incredible swings:

Your sales candidate pool will increase in size by 600.  Yes.  They are out there!

The number of sales candidates completing their sales candidate assessments will increase by 958% because it is an employer's market.  Just three months ago it was a candidate's market.

The overall assessment recommendation rate will decrease by 45% because there are a lot of crappy salespeople out there right now. Also, you will be able to raise the bar on the minimum requirements for a recommendation because there are a lot of good salespeople out there too.

Because of all the available sales talent right now, you will be able to identify and hire your salespeople 450% more quickly.

While the fixed cost for a sales candidate assessment license remains the same, the relative cost per assessment decreases by 958% and your annual compensation drops by 11% due to supply and demand.

Even if the market you sell to is sluggish right now, that won't be the case by the end of the summer.  Don't wait until then to hire!  Everything will shift again by Labor Day.  Both supply and quality of available sales talent will decrease as demand increases, the time to hire will increase, and the time to onboard your new salespeople will take longer as well.  DO. THIS. NOW.

Your current and new salespeople will face unprecedented challenges in the form of delayed closings, resistance to being sold anything at all, and resistance to spending more money than anyone has to.  This resistance will come in the form of stalls, put-offs, objections, excuses and sob stories.  Your current and new salespeople must have the skills to differentiate, take a consultative approach and sell value if you are to have any chance of maintaining your margins.  If your salespeople move forward armed with only the limited skills they had prior to the pandemic, your win rate and margins will be crushed.  YOU MUST EVALUATE YOUR EXISTING SALES FORCE, DETERMINE HOW BIG THE SKILLS GAPS ARE, AND PROVIDE THIS CRUCIAL SKILLS TRAINING NOW.  If you wait, you will find yourself fighting to survive from the back of the pack.

Image copyright 123RF

Topics: sales assessment, Dave Kurlan, grow sales, recruiting salespeople, hiring salespeople, sales test, personality test, recovery

Good Sales Recruiting is Like Selecting Movies and TV Shows

Posted by Dave Kurlan on Tue, Nov 05, 2019 @ 10:11 AM

prime-video-screen-shot-bb-alt-d1f4ae787d684f6bb141e35884e187de

Do you like movies and TV Shows?  I love them!

How do you go about selecting the next movie or show you will watch?  Do you look for a specific show, watch the trailer and if you like the trailer, watch it?  Or, do you look at all of the new releases, or everything in a particular genre, narrow down the selections, watch several trailers, and finally choose one?

Most people use the second scenario which, by the way, is a very good approach for selecting and hiring salespeople.  Unfortunately, that's not how most companies go about it.

You need to cast the net as far and wide as you can to generate a large candidate pool.  Then you need to assess all of the candidates in the pool.  Most companies either don't use assessments, don't use the right ones, or wait until the final interview to ask candidates to take the assessment.  Improper use affects quota attainment and attrition.  See the stats below:

quota-attrition-1

As you can see from the slide, companies that don't use assessments have a 49% quota attainment rate, compared to 61% for companies using assessments and 88% for companies using Objective Management Group's (OMG) accurate and predictive sales-specific assessment.  Isn't that compelling?

Consider these actual use results from an OMG user below:

use-graph

This global company, which hires around 30 salespeople per year, is not only the picture of consistency with the number of assessments used, but recommendation rates are within the normal range for roles considered to have significant difficulty.  More importantly, look at the number of candidates they had to assess in order to hire the 29 who had the sales capabilities to succeed in the company's various sales roles!  That's why you need to cast the net far and wide.  910 might seem like a large number but it's only 18 candidates per week spread among their many global locations.

if your typical candidate pool has many fewer candidates and you don't use an accurate and predictive sales candidate assessment, it's no surprise as to why your sales recruiting efforts are hit or miss with an emphasis on miss.  When you hire salespeople, they are all supposed to meet or exceed expectations for pipeline building and revenue generation.  It shouldn't be cause for celebration when they do!

Assessing all of your candidates up front allows you to focus on only those candidates who are recommended for the role, saving time and money that would be wasted calling and interviewing candidates who don't have what it takes or wouldn't be a good fit for the role.

You can retool your sales recruiting process and the adoption of a sales-specific, accurate and predictive assessment is one of those changes you can quickly and easily make.

Share your comments in the LinkedIn discussion of this article.

Topics: Dave Kurlan, recruiting salespeople, hiring salespeople, sales selection, sales assessments, OMG Assessment

The CEO Who Needed to Hire Salespeople

Posted by Dave Kurlan on Wed, Feb 25, 2009 @ 09:02 AM

Yesterday I spoke with a CEO who asked for some help recruiting salespeople.  It seems that the salespeople they had previously hired had failed.  As I learned more about their business, a few things became obvious to me:

  • They hadn't yet figured out the best way to find and close business - they only closed 8 deals last year, up from 4 the year before.
  • They lacked any formal sales systems or processes.
  • They were closing only 1 of 30 opportunities.
  • They were selling to people who didn't want or need their service.
  • They must sell the "why buy" rather than the "why us?"

The reality of their situation is that before they can recruit salespeople and expect them to succeed, they must first succeed themselves so that they can share their proven, time-tested, repeatable model with new salespeople.  Today they are selling by the seat of their pants and they aren't very good at it.  You simply can't bring new salespeople into an environment like that and expect them to succeed. 

Do you want to hire some horses?  Don't take the horse before the cart.

(c) Copyright 2009 Dave Kurlan

Topics: Dave Kurlan, sales hiring, sales process, sales recruiting, sales management, recruiting salespeople, Sales Candidate, CEO, Closing Sales

Sales Assessments vs Personality Assessments Episode III - The PHD's Strike Back

Posted by Dave Kurlan on Mon, Feb 02, 2009 @ 22:02 PM

Are PHD's more sensitive to criticism than the rest of us?

I heard from a few over the past week and they weren't happy with what I wrote here and here.  I rocked their world and they couldn't cope.

Their problem is that they're so brainwashed by what they'd learned about testing in school that they refuse to see something as obvious as the context for their questions and the relative limitations of their findings.  They simply don't understand that they can't predict how a salesperson will perform without understanding the dynamics of the challenge and asking questions which take place within a sales context.

Do you think a question like, "Would you rather build something or sit at a desk?" will help you predict sales success at any level?   I don't have a PHD, but I have been either selling, training, managing, developing, writing about, assessing or researching salespeople professionally for 35 years.  Who knows more about what makes a salesperson tick?  A PHD or me?  They just don't think that I should have the ability to develop professional assessments.  That's supposed to be their domain.

I have nothing against PHD's.  I have friends and colleagues who are PHD's.  We have resellers who are PHD's.  I have clients with PHD's.  I have a relative with a PHD.  I sit on a Board with a PHD.  It's just that the PHD's in the HR and testing arenas believe that you must be a PHD in order to develop, administer or deliver an assessment.  They become self-righteous about it.

Over the past 20 years, we've helped companies in more than 200 industries.  Of all assessments out there, the only one, which companies seem to rely on more than ours, is Caliper.  Caliper is probably the most reputable personality assessment.  If a client needs to assess a key employee who wasn't in a sales role and wants to know how they would fit into the culture, what they may or may not like and how their personality might help or hinder them, I would suggest that they use Caliper.

However, if I wanted to understand why their salespeople weren't selling as effectively as they should be, the kind of development which they might require, whether they were in the right role, whether they could execute my strategies, whether and how much they could improve, Caliper could not accurately provide that information.  I would use Objective Management Group's (OMG) sales assessment.

That explains why, in a sales recruiting scenario, when companies use both ours and theirs, we get the call that says, "How come Caliper likes this person and OMG doesn't recommend him?"  Or, "Why does Caliper say that he has strong Drive, but OMG says that he lacks Desire?"  Or, Why does Caliper say that one of his strengths is that he is social, but OMG says that his Need for Approval is a weakness?"  Or my favorite from a call last week, "Wow, now I can see the difference. You guys really go out on a limb, don't you!  You actually show what will happen to them in the field and explain why that will either help them succeed or cause them to fail."

The PHD's refer to their years of research, data and validation.  I go back to their inability to be predictive.  The disagreement is not likely to fade soon.

(c) Copyright 2009 Dave Kurlan

Topics: sales assessment, Dave Kurlan, sales, sales force evaluation, recruiting salespeople, sales evaluation, sales development, personality assessment

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Best-Selling Author, Keynote Speaker and Sales Thought Leader.  Dave Kurlan's Understanding the Sales Force Blog has earned medals for the Top Sales & Marketing Blog award for eight 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.

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