Crappy Salespeople and Lack of Urgency Alignment  - The Bob Chronicles Part 4

Posted by Dave Kurlan on Tue, Apr 27, 2021 @ 12:04 PM

urgency2

We shouldn't discuss that time you were in a meeting when, without warning, you had about 10 seconds to get yourself to the nearest restroom or you would need to drive home for a wardrobe change.  Fortunately, you were able to gracefully excuse yourself and run down the hall as fast as you possibly could.  THAT is urgency!

This is the fourth installment in the Bob Chronicles.  Bob is the weak salesperson who represents the bottom 50% of all salespeople. You can read previous installments about Bob below:

The $225,000 Mistake That Most Salespeople Make

Data - The Top Salespeople are 631% More Effective at This Than Weak Salespeople 

Good Bob, Bad Bob, The Stockdale Paradox and Sales Success

You're probably wondering, what did Bob screw up this time?  He screwed up urgency.  You might be asking how a salesperson could possibly screw up urgency but Bob and the rest of the weak salespeople screw up just about everything else so why not urgency too?

As usual, Bob was unaware that Mary, his prospect, was also talking with three other companies.  Mary asked for a proposal and Bob obliged, coming in well over the agreed upon budget and upsetting her in the process.  Mary reminded Bob that the proposal was nearly 25% higher than the budget they had all agreed to.  She asked Bob to stay within the budget and send a revised proposal.  Did Bob follow up appropriately?  No!

A couple of months had passed when Mary notified Bob that they were going with another company.  Bob was crazed and in a panic.  He reached out to Mary and requested a call.  She said she was sorry but had already made her decision.  Bob requested a call again and was told that she had signed a contract with another company.  In the middle of an acute panic attack, Bob decided to send a revised proposal and discounted the original offer by 35%.  Once again, Mary said, "This is too late - we already signed with another company."  Bob said, "But I offered you a 35% discount - that's even better than what you budgeted for!"  Mary disconnected the phone.

This is all about urgency.

Mary had a lot more urgency than Bob was aware of because Bob didn't ask the most important questions, like, "How big is the problem?" and "What is it costing?" and "How soon do you need it solved?" and "What happens if you don't have it solved by then?" and "Who else have you asked about this?"

Bob had a ton of urgency, but not until he realized he had lost the business.  If he had exhibited half the urgency earlier in the process, while uncovering Mary's urgency, their urgency would have been aligned.  Urgency alignment is crucial.  

If the salesperson has urgency but the prospect does not, the perception is that of a pushy salesperson.  If the prospect has urgency but the salesperson does not, the perception is that of an unresponsive salesperson.  When both the salesperson and the prospect have urgency, they will easily work collaboratively to solve a problem.  

Early in the process, Bob was perceived as being unresponsive.  Late in the process, Bob was perceived as being tone deaf and pushy.  However, when salespeople strike that perfect balance, magic happens.  Salespeople who are effective creating urgency AND having urgency are 35% more effective than salespeople who fail to get their prospects to "must have" and lack urgency themselves.

Finally, why did this happen?

Early in the process, Bob didn't listen, didn't ask enough questions and didn't push back on the budget.  By failing to push back, Mary believed that Bob would deliver a needs and cost appropriate solution. Then, when Mary pushed back, Bob was unresponsive.  These two events suggest that Bob wasn't controlling his Emotions and Needed to be Liked.  Those two weaknesses combine to make it difficult to listen, and too uncomfortable for him to push back and ask questions.  As you can see from the table below, the bottom 50% of all salespeople tend to be especially weak in both of these Sales DNA competencies.

When things spiraled out of control, Bob's emotions caused him to panic.  His non-supportive beliefs about pricing kicked in Bob always looks for the lowest price when he buys things for himself. Despite being too late to influence the decision, Bob believed that if he came back with an attractive offer, it would change the outcome.  As you can see in the table below, 26% of weak salespeople need to shop for the lowest price and they mistakenly believe that their prospects behave similarly.

There is so much more that goes into selling than following your sales process and having sales strategies and techniques.  There are 21 Sales Core Competencies and salespeople must be strong in all of them, not just some of them.  You can see all 21 Sales Core Competencies here and while you're there, view, filter and sort the data on nearly a third of the 2,091,766 salespeople that have been evaluated and assessed by Objective Management Group (OMG). If you want an easy-to-use, accurate and predictive sales candidate assessment to select and hire your new salespeople, check out OMG's award-winning sales candidate assessments here.

Rocky LaGrone added THE BEST COMMENT ever to this post on LinkedIn.

Image Copyright: Scott Betts

Topics: Dave Kurlan, sales process, sales training, Sales Coaching, sales assessements, sales effectiveness, creating urgency, lost deals

31 Conditions That Predict Your Sales Opportunity is in Trouble

Posted by Dave Kurlan on Fri, Apr 16, 2021 @ 14:04 PM

Photo Gallery: 2021 Genesis GV80 Luxury SUV - » AutoNXT

Long article for the weekend.

In December I took delivery on my all-time favorite new car and I've been driving my Genesis GV80 for four months now.  You probably saw video of the GV80 that Tiger Woods' destroyed and there wasn't a thing the car could have done to prevent him from crashing it because he had probably disabled the driver assist features and he may have been "disabled" when he got behind the wheel.

Last week, a crazy driver pulled out right in front of me and despite the fact that I anticipated his stupidity and would have been able to stop before smashing into this moron, my car wasn't as certain as I was.  My Genesis took matters into its own hands and went into all out protection mode - making sure nothing happened to it or me.

As advertised, it took over the braking and steering to protect itself, sounded all the alarms to alert me to its strategy and then did two things that really surprised me.  All at once, the seat enveloped me in a cocoon and the seat belt tightened around my shoulders so that there was no chance that I was leaving that seat.  Going through the windshield?  Not a chance unless the whole seat was coming with me!

That was cool. 

And it got me thinking.  Wouldn't it be cool if salespeople had a sales version of an early warning system/driver assist like my car has?

The car uses cameras and sensors to factor in conditions that would require emergency tactics.  Salespeople have eyes and ears as well as wisdom that can all be used for emergency tactics.  Let's start with the ears.

Prospects say things that are tell-tale signs that something is amiss.  Anytime a salesperson hears any of these comments they could be swaying out of their lane or their opportunity might be about to crash.  They include but aren't limited to:

  • Send me a proposal or get me a quote; both are bad if it happens earlier in the sales process than it should
  • We still have to meet with others
  • I've been tasked to gather information
  • We don't have a budget for this
  • We'll have to find the money
  • We're going with the best price
  • I need to bring this to [the decision maker] for approval
  • This is a future project
  • We're happy with who we're using
  • You don't need to know that
  • I need to get consensus
  • We don't have any real urgency on this
  • Our contract/agreement doesn't expire until [date]

There are things you don't hear but wisdom (experience plus lessons learned) communicates them through your inner voice:

  • They don't seem to have a compelling reason to do anything
  • They are withholding information 
  • You think they're lying about something
  • It seems that this is only "nice to have" but you haven't gotten them to "must have"
  • The decision maker is not engaged
  • They are hesitant about spending the necessary money
  • You don't seem to have their ear because they aren't talking in terms working together
  • They have transitioned to a pricing conversation which suggests you haven't cemented your value
  • They see you a vendor or supplier; not a partner or trusted advisor
  • They have an existing relationship that they don't seem willing to blow up
  • They are not allowing you to follow your sales process
  • They are not allowing you to ask questions and you find yourself in show and tell mode

Then, there are the things you observe:

  • They aren't making eye contact
  • They are distracted
  • They are giving you short answers and not explaining themselves
  • They are in a hurry
  • They're looking at their watch
  • Their RFI/RFQ/RFP reads like it was written by a competitor

Some of the examples listed above are chronic - they occur most of the time to most of the salespeople.  Half of them may not know any better - shame on the training and coaching they are or should be getting!  But the other half have weaknesses in their Sales DNA which cause these things to keep happening to them.  A Sales Force Evaluation can smoke out gaps in their sales competencies and Sales DNA.  OMG measures all 21 Sales Core Competencies plus an additional 11, each with an average of 8 attributes.  That's close to 250 sales specific findings for each salesperson! 

Finally, your sales process which is integrated into your CRM application provides warnings, yellow flags, alerts, incomplete milestones, incomplete stages, time in stage too long, stuck opportunities...You do get those, don't you?  Check out the Baseline Selling instance of Membrain.

Pivoting back to my car which takes matters into its own hands.  The partial listing above is set to "alert-only" without evasive or protective measures.  How can we get salespeople to perform evasive and protective measures?  Evaluate/Train/Coach/Reevaluate.  

The evaluation tells us what they're allowing to happen and why.  Training provides them with the strategy and tactics to use evasive action and protect the opportunity.  Coaching helps them master the strategies and tactics.

Improving sales effectiveness does not happen in isolation, automatically over time, or by magic.  Improved sales effectiveness and the resulting increase in revenue requires proactive, purposeful intervention as described above. 

By the fourth quarter of 2021, we will encounter some of the most difficult selling conditions since November of 2008 when, without warning, the revenue spigot was turned completely off.  It remained partially closed through 2016 but from 2017 until the pandemic hit we were in full open fire hydrant mode.  Business was booming and for most companies, quickly returned to booming by the fourth quarter of 2020.

Now we are faced with some huge impending corporate income tax and payroll tax increases and they will be larger than what has been stated on the news.  Those large tax increases do one thing - they cause layoffs.  After the layoffs, consumer spending and confidence drop.  Then we see buying freezes and their related ripple effect where the companies that sell to those big companies experience cash reserve issues, initiate  buying freezes of their own, which work their way down to businesses of all sizes.  

This time around you've been warned.  You have no more than eight months to prepare your sales team for some of the toughest selling ever and most salespeople have never experienced selling as difficult as what we will see in 2022.  On top of that, you'll have more, not fewer competitors because when everyone is selling virtually, every competitor is just as close or just as far away as the next.  And if you're not in the USA, don't think you won't be affected.  What happens here affects you wherever you are.

Now is the time to install early warning systems, sales force evaluations, targeted training and coaching, and more.  Prepare your sales teams now or pay the price in 2022!

Topics: Dave Kurlan, Salesforce, sales objections, sales assessements, sales effectiveness, sales team, tax increase

Startups Almost Always Get The Sales Thing Wrong

Posted by Dave Kurlan on Thu, Mar 18, 2021 @ 20:03 PM

startup

It's short article Friday.

According to NetShopISP, there are about 305 million total startups created globally each year and around 1.35 million of those startups are tech related.

Did you have any idea the number was that huge?

Typically, founders of start ups put it all on the line - everything - their house, savings, loans from friends and family and perhaps bank loans, angel investments and more.  As brilliant as they are, in most cases, sales is not one of their strengths and it's not until the business has a logo and a website when they realize that success won't come until somebody sells something.  Oh-oh, now what?

It doesn't take long for the founder to realize that they can't be the salesperson, especially when their experience is financial, marketing, operational, technical or mechanical.  When it comes to making their first sales hires, entrepreneurs and startup founders tend to be confused by their options and often make the wrong decisions.

"We want to hire our first salesperson" means different things to different people and most of the time, the founders don't have a clue what it really means.  They are often under the impression that their first sales hire will go out and sell their tail off, then become the sales manager, make a few more sales hires, and become the Sales VP. Then that individual would be expected to build structure, systems and processes, scale and grow enough revenue to flip the company.  

Nice work if you can get it but they couldn't be more wrong.

The person who wants to be the first sales manager is not the person who will go out and hunt for 18 months.  And neither of them - not the hunter and not the sales manager - is the person to lead the strategic growth of the company while building systems and processes.  Nine of ten founders fail to understand that we are talking about three different people, not one person that will quickly transition through three completely different roles!

If the founders get it, and adjust their thinking to embrace the three people concept, they must make a decision about the next challenge.  Since they don't have the finances or the revenue to hire all three of those people, they need to choose one.  Which one?

Invariably, they miss the boat and vote to hire the VP of Sales.  Bzzzzz.  While that hire makes them feel good - the sales VP joins the tiny executive team - that simply cannot be the first sales hire.  Somebody has to sell something and it won't be that person. The Sales VP will be in the office writing plans and creating strategy but there won't be anyone to execute the plan and the company will burn through too much money before they figure out that they may not survive to hire a hunter!  According to Investopedia.com, 90% of those startups fail!

At this point, even if the founder is still on board with the hunter as the first hire, there is another challenge to overcome; they must hire a hunter who will succeed, otherwise they are right back here at the starting line again in 90 days.  How can they assure sales hiring success?  Objective Management Group (OMG). OMG's accurate and predictive sales candidate assessments take the worry out of sales selection by identifying candidates who will succeed in the role.  And they are guaranteed!  

Of course there are post hire challenges too, like who is going to onboard them, who is going to manage and coach them, and how long will it take them to figure out how to sell this stuff?  But that's for another day.  Rejoice in knowing that you just hired your first salesperson!

Image copyright 123RF

Topics: Dave Kurlan, sales hiring, hiring salespeople, sales assessements, first sales hire

Key to Successfully Hiring Salespeople: Getting it Right Versus Getting it Over With

Posted by Dave Kurlan on Mon, Dec 21, 2020 @ 08:12 AM

8 Ways You May Be Washing Your Hair Wrong | Shape

I'll get to the content related to the title, but first, some context.

In March, at the beginning of the pandemic, I wasn't paying attention to where I was walking and slammed my big toe into a door.  I destroyed the nail. Not wanting to lose it I superglued it back in place and several months after it turned black, it fell off, revealing an emerging new nail that had grown half way to the tip of my toe.  It took 8 months for a new nail to fully replace the old nail but my replacement nail was perfect and clearly an upgrade over my tired, old, destroyed nail.  

Let's discuss what that has to do with hiring salespeople.

There are typically two approaches to hiring salespeople: choosing between getting it over with, or getting it right. 

Getting it over with involves a lot of short cuts, and in more than 50% of the cases, disappointment and frustration because you got it wrong.  If you got it wrong there are two more options: living with it or taking the shampoo approach: rinse and repeat.

It's a vicious cycle of hiring the wrong way, making the wrong decisions, needing to start over, and repeating the process again and again and again. Groundhog day.  It can take months or even years before you get the right salesperson into that role.

On the other hand, what would happen if you took the broken nail approach?  Sure, it might take longer, but instead of just getting it over with and dealing with the consequences of your choice, you choose getting it right and being done for the long term.

What does getting it right involve?

  • A well thought-out repeatable sales recruiting process
  • Role Specific criteria for success
  • Well-worded job posting on the right job sites using the right parameters (like Indeed)
  • Applicant Tracking system (like RecruiterBox for hiring  up to a few or the BigGuys for bigger projects)
  • Accurate and Predictive sales-specific assessment that is customized to your criteria (like OMG)
  • Scoring system (for objectivity)
  • Great interviewing skills (to challenge every claim on their resume)
  • Patience (waiting for the ideal candidate rather than the first one you like enough to hire)
  • Discipline (no skipping steps)
  • Thorough onboarding (a formal 90-day onboarding program)

A sales manager at an OMG client told a candidate they were going to move forward subject to the results of the OMG assessment.  The sales manager's approach was a huge mistake.  He interviewed prior to assessing when he should have assessed first. He fell in love with a candidate, but still had to assess because it was company policy. That suggested to the candidate that the assessment was the defining criteria when in reality, the assessment is one of around a dozen additional data points that all matter, including, but not limited to cover letters, resumes, experience, expertise, fit, phone presence, interviews, references, intelligence, professionalism, respect, employment tenure, and background checks.  The sales manager raised the candidate's expectations only to destroy those expectations and get upset when the assessment did not recommend the candidate.  You must know that BEFORE you waste everyone's time interviewing and getting emotional!  

Recruiting salespeople doesn't need to be difficult or complicated, but it is a process and needs to be completed thoroughly and correctly.  Ask yourself this question: eighteen months from now, would you prefer to have spent five months to get it right and have a productive new salesperson, or three months getting it over with, only to have to do it again four months later, and again four months after that.  Choose getting it right over getting it over with.

Topics: Dave Kurlan, sales hiring, sales recruiting, HR, human resources, sales leadership, hiring salespeople, sales assessements

There is More Than One Type of Bias in Hiring Salespeople

Posted by Dave Kurlan on Fri, Dec 04, 2020 @ 10:12 AM

bias

Biases drive decision making.  You have them.  I have them.  We all have them.  Most of the time those biases are fine but when it comes to hiring, and specifically sales hiring, bias can get you in a heap of trouble.

While some biases simply cause bad hiring decisions, others have led to the growth of the Diversity, Equality and Inclusion (DEI) role in companies. This article attempts to explain and make sense of the various biases, how they affect selection, and how that correlates to sales success.

Assumptions - In the hiring process, when we make broad, sweeping assumptions about groups of people, including their gender, religion, ethnicity, age, or disabilities, those assumptions violate Equal Employment Opportunity Commission (EEOC) guidelines.  The EEOC states that employers may not discriminate against any protected minorities whose members include:

  • anyone who isn't male
  • anyone who isn't white
  • anyone who is over 40

When it comes to hiring decisions, women, people of color, and people over 40 are protected minorities.  That's basically everyone except white men under 40!  These guidelines were originally intended to prevent hiring bias against these groups but as you probably know, these guidelines haven't changed for decades and we have progressed to the point where the protected groups are a huge part of our workforce. I believe that today, candidates in the protected group would be hired regardless of whether or not these guidelines remained in place.

Some companies proactively seek to hire specifically for diversity and inclusion.  Reaching beyond the protected group, they seek out those who are different as they attempt to create a wonderfully diverse culture. Our company, Objective Management Group (OMG), has a history of hiring a very diverse workforce.   

Biases in Sales Hiring - Is diversity and inclusion a good strategy when hiring salespeople?  It's complicated because it depends on who the diverse group of salespeople will be selling to as much as it depends on how they will be selling.  For example, if your salespeople will be selling face-to-face, including virtually via video, to the C Suite of corporations, your salespeople must be able to present themselves and your brand as professionally as possible, without allowing their personal preferences (their own bias) to sabotage their success.  And even though our biases may have been removed, it doesn't mean that the executives they'll be selling to in the C-Suite are without biases towards the diverse group of salespeople. In other words, it's risky to make "more diverse" more important than the larger mission to grow revenue.

If your same diverse group of salespeople were to sell only by phone and target business users or middle managers they would likely have far greater success.  You must put all salespeople in a position (a selling role), that provides them with the greatest chance of success.  You should not confuse hiring bias with a thoughtful understanding of what it takes to succeed in a specific selling role and which salespeople would best fit that selling role.

Types of Personal Biases in Sales Hiring - Sales managers regularly commit two types of hiring bias. They sometimes fall in love with the idea of a particular candidate from experiences listed on resumes.  Sales managers sometimes fall in love with candidates after a particularly wonderful interview where the candidate said all the right things, was very likable, and the sales manager's gut instinct was saying, "perfect!"  In feeling this way, sales leaders develop bias for certain candidates and this bias is what leads to so many sales hiring mistakes.  Sales managers get it wrong at least half of the time!

An example of bias against a sales candidate occurs when sales leaders refuse to hire salespeople from outside their industry.  They might have a valid reason, they might have had a succession of failures, and the bias might seem important for this particular sales leader.  That said, a negative experience from a very limited sample size does not make it fact.  Pedigree, or college degrees, are another example of bias where certain diplomas are preferred to others.

The New York Times recent article about choosing Talent over Pedigree shows how we can raise the standard of living for many people who lack the prestigious college degree or college at all, but have the talent.  While the Times article isn't sales specific, it's not a stretch to apply it to sales. 

In 2017, I wrote an article on hiring biases where I said that some sales hiring biases are good.  Has that stood the test of time?

Eliminating Biases from Sales Hiring - As much as a company might attempt to eliminate biases from their hiring practices, the reality is that it is extremely difficult unless you use the right assessments.  For example, personality assessments, like Caliper, and behavioral styles assessments, like DiSC, are not role specific and have been challenged in court.  Personality assessments that claim to assess sales traits are not only inaccurate and not predictive, they too can be challenged in court.  The one sales assessment that is not personality based measures every sales candidate equally across 21 Sales Core Competencies.  OMG's Sales Candidate Assessment is customizable for each selling role, extremely accurate and distinguished by meeting the requirements for predictive validity.  It also meets the requirements for having no adverse impact on protected minorities. By utilizing the OMG assessment early in the sales process, it completely eliminates bias, recommends only those candidates who have the selling capabilities required for the role while rejecting those who do not.  In essence, it helps you to become blind and deaf while creating a candidate pool of extremely qualified candidates, regardless of what they look like or sound like, where they come from, or their status in life.

In summary, when it comes to hiring salespeople there are four types of bias in play:

  1. Biases in favor of certain candidates 
  2. Biases against certain candidates 
  3. Biases that your salespeople have against their prospects and customers
  4. Biases that your prospects and customers have against your salespeople.

Eliminating bias from hiring is a game changer but helping your new sales hires succeed takes more than getting unbiased sales selection right.  Comprehensive on boarding is just as important and after that, regular, consistent and effective guidance, direction, coaching and accountability are the components that will lead to sales success.

Read this article on how to get your new salespeople to take off like a rocket ship!

Image copyright 123RF

Topics: Dave Kurlan, sales hiring, Personality Tests, sales assessements, sales selelction

Using the Power of a Duracell to Help You Hire Perfect Salespeople

Posted by Dave Kurlan on Thu, Apr 25, 2019 @ 12:04 PM

duracell-9-volt

Apparently, Duracell 9 volt batteries are the picture of consistency. 

Last night, all 7 of our upstairs smoke detecters starting squawking within about 30 minutes of each other to indicate that their batteries needed to be replaced.  Given that the Duracells were installed in those units on the same day 4 years ago, one would hope that there are more things that we could rely upon to be as consistent and predictable.

One of those things is Objective Management Group's sales candidate assessments.

What could bring more peace of mind to the sales hiring process than knowing that it's already been used on 1,853,846 salespeople, from 1,853,847 companies, in industries, and in countries to hire salespeople.  Of the sales candidates who were not recommended by the assessment, but were hired despite the warning, 75% of them failed within the first six months.  That's predictive!

Statistics are great, but what you really want to know is, how hard is it to use, how complicated will it make my sales hiring process, what if a candidate I like isn't recommended, what if a candidate I don't like is recommended, and how do you make it fit my world?

The only people that don't love OMG's sales candidate assessments are recruiters - because the assessment makes recruiters work a lot harder to deliver quality sales candidates.  And today, with so few sales candidates proactively looking for work, it's even more important that you get it right.  After all, you're working from a position of weakness.

Sales leaders, HR directors, CEO's and COO's love the OMG assessments because they are sales specific in that they measure the 21 Sales Core Competencies instead of personality traits and behavioral styles.  Traits and styles are nice to know, fun to have, warm and fuzzy, but they are not predictive of success in sales, and especially not any specific sales role.

Because the assessment measures 21 Sales Core Competencies, there is nothing to interpret making it very easy to use.  And since you'll assess all of your candidates, not just the ones you like, you can focus your time on the candidates who are most likely to succeed in the sales role for which you are hiring.  When it comes to those sales roles, there are 30 variables you can customize to help the assessment identify the right salespeople for the role, and another optional layer of customization allows you to fine-tune another 15-20 requirements.

In companies today, those who hire salespeople using their gut, other assessments, or desperation, tend to get it right about half the time and the cost of getting it wrong has skyrocketed.  Companies that use OMG's sales candidate assessments have found that of the candidates who are recommended for the role and eventually hired, 92% move to the top half of the sales force within 12 months.

If you aren't already using OMG, what's holding you back?  It's not expensive, it's not difficult, it's not scary, and it's not risky. You'll easily be able to hire better salespeople!

You can checkout a sample sales candidate assessment here

You can request a free trial here

You can checkout pricing plans here.

And if you like stats and data, checkout some of the datasets in the 21 Sales Core Competencies here.

Topics: Dave Kurlan, sales recruiting, sales talent, sales assessements, sales hiring tools

Hiring Salespeople Should Not be Like a Coin Flip

Posted by Dave Kurlan on Wed, Feb 06, 2019 @ 18:02 PM

coinflip

For most companies, hiring the right salespeople has always been problematic.  With the shortage of quality sales candidates, it's now more difficult than ever.  The pressure to fill a role often causes sales management to hire the best from a limited and deficient pool of candidates instead of hiring the right candidate for the role.  The difference is huge, especially if you have a complex sale, a long sales cycle, a high-priced product or service, or a lot of competition.  If you rush to hire someone and get it wrong, three things usually happen.  The first and most obvious is that you will inevitably have to begin the hiring process all over again in several months.  Second is the lost opportunities from having a weak salesperson and for periods of time, no salesperson.  Finally, there is lost revenue from customers who are stolen away, creating negative territory momentum, where the pendulum swings to favor the competition in that territory.

Hiring salespeople does not have to be like a pot luck supper or a coin flip.  If you are selective instead of impulsive, good things will happen.  Take a look at the image below.The spreadsheet shows the difference between one company's top 3 producers and their 3 worst producers.  If you notice the difference in color between all of the green at the top and the red down below, you'll see the findings and competencies that differentiate the two groups.  At Objective Management Group (OMG) we call this a tailored fit.  It's the last of two levels of customization to fine-tune our sales candidate assessment criteria and that is what allows us to make such accurate recommendations and achieve predictive validity.

WFTF

For the real company in this example, from 180 possible findings, 27 clearly differentiated their tops from their bottoms.  Of the 27 differentiators, the following were represented:

Candidates who meet at least 80% of these 27 findings WILL succeed in the role.

You can easily hire the best salespeople for the role with help from (1) a predictive sales candidate assessment that provides the equivalent of a crystal ball and (2) having the discipline to be patient enough to wait for the right candidate.  What's holding you back?

There is one more thing you are required to do.  After hiring your salespeople, you must provide them with a comprehensive 90-day on-boarding process so as to assure their success rather than setting them up for failure.

Image Copyright iStock Photos

 

Topics: Dave Kurlan, sales recruiting, Sales Candidate, sales assessements, hiring mistake

New Data Shows That Elite Salespeople are 700% Less Likely to Do This

Posted by Dave Kurlan on Mon, Aug 20, 2018 @ 15:08 PM

urgency-image

How effective are salespeople when it comes to creating urgency?  I'm not talking about salespeople who create urgency by telling their prospects that if they don't order today the price will go up or it won't be available.  I'm talking about salespeople who create urgency by asking questions to uncover problems, the consequences and cost of which, create urgency.

You probably know that most aren't great at it.  After all, with so few salespeople having mastered the consultative approach, it's unlikely that one can achieve urgency using a transactional approach.

The latest data below from Objective Management Group (OMG) shows sales effectiveness relative to sales percentile and ability to create urgency. The following 1-minute video explains the difference between a transactional sale and a consultative approach, along with the differing outcomes.

 

The table below is derived from 1831502 salespeople assessed or evaluated by Objective Management Group, Inc. (OMG).  These findings make up some of the attributes of the Consultative Seller competency.  You can see and interact with data from all 21 sales Core Competencies here.  
urgency-stats

The 1st column in the table above shows the distribution by Sales Percentile, the next 3 columns show the percentage of salespeople in each group and how wide and deep they penetrate to find reasons to buy.  The last 3 columns show the state of buying readiness they achieve and the last column on the right shows the percentage of salespeople who are able to create urgency.

While only half of Elite salespeople are strong at creating urgency, elite salespeople create urgency 326% more often than their weaker counterparts, fail to uncover anything more than interest 700% less often and fail to get beyond "nice to have" 329% less often.

Unfortunately, weak salespeople make up 50% of the sales population and in the US alone, that's 8 million weak salespeople!

Make sure you don't hire any of that group by using OMG's accurate and predictive, sales-specific Sales Candidate Assessments.

Join the discussion on this article on LinkedIn.

Image Copyright iStock Photos

Topics: Dave Kurlan, Consultative Selling, sales assessements, creating urgency, sales data

Applicant Tracking and Sales Candidate Assessments Fit Like Ducks Take to Water

Posted by Dave Kurlan on Mon, Nov 21, 2016 @ 06:11 AM

duck.jpeg

I was reviewing this page which shows the market share for most of the known applicant tracking systems.  I was impressed with the analysis and with how much of the market share is held by Taleo.  I was also disappointed that there isn't a comprarable study available on sales candidate assessments.  But that's a rant for another day.  Back to the Applicant Tracking analysis.  My first takeaway is that it validated what I knew only anecdotally -that just about every mid-market and large company are using cloud-based applicant tracking systems and smaller companies are quickly moving in that direction too.  It makes sense. If companies are using cloud-based job sites to source candidates, then it only makes sense that they would be integrating applicant tracking as well.

My second takeaway is that with all of these companies sourcing from the cloud and tracking from the cloud, why aren't more of them using the best sales candidate assessment in the cloud?  I have 4 possible answers to that question:

(1) Legal groups in some companies warn against using an assessment for selection puproses.  In an effort to protect their company and its CEO from legal action, they fail to recognize that role-specific assessments do not present any vulnerabilities.  While personality assessments present a legal risk when used for selection, role-specific assessments, like Objective Management Group's (OMG) Sales Candidate Assessments, do not present a risk because they assess to determine whether the candidate has the necessary skills for that specific role.  You can't say that about personality assessmenta.

(2) Some Sales Leaders don't utilize sales candidate assessments because they believe their own instincts and experience will outperform an assessment.  And Sales Leaders do get selection right - about half of the time.  Unfortunately, getting it right doesn't mean that they didn't have turnover. Getting it right should mean that the new salespeople met or exceeded quota.  Using that criteria, 50% right would be a generous number. Ironically, sales leaders could get selection right close to 90% of the time if they used OMG's accurate and predictive Sales Candidate Assessments.

(3) Some HR Leaders won't use sales candidate assessments because they have a sense of familiarity with some of the popular personality and behavioral styles assessments.  Ironically, they don't need to stop using those assessments as they do provide some nice information about candidates.  However, those assessments weren't built for or intended for sales and they aren't predictive of sales performance.  Using a predictive sales candidate assessment along side of a familiar personality or behavioral styles assessment will vastly improve sales selection accuracy.

(4) Some CEO's don't use any assessments because they don't belive in them!  I can understand that.  If their only experience with assessments was with a "lighter" assessment - like one of the many versions of the popular DISC behavioral styles assessment, it makes sense that they don't believe that one of those will help improve selection.  But they need to look beyond what they themselves are comfortable with and have experience with and trust their HR and Sales Leaders and do what's best for their company, not what's best for themselves.

Why should a company use applicant tracking and sales candidate assessments to improve their sales selection consistency?  To avoid the cost of a hiring mistake.  For sales hiring mistakes, estimates run from between $100,000 to over $1,000,000. Of course it depends on the role, salary, length of the sales cycle, recruiting, training and development costs, and whether or not a company includes lost opportunities in its calculations.  If you don't know how much a sales hiring mistake costs at your company, you can use this free sales hiring mistake calculatorto figure it out.

Our statistics show that just one hiring mistake will cost between 20 and 50 times the investment you made in a predictive sales assessment.  

For example, let's say that you were going to hire one salesperson.  If you get selection right half of the time, you'll actually hire 2 salespeople to get the 1 that performs.  Your cost to use the assessment was no more than $2,500 and your cost to recruit, hire, train, develop and compensate the salesperson who failed was $65,000 for six months - 26 times the cost of the assessment.

Let's try it with 10 salespeople.  Let's say that you are better than average and only 3 of the 10 didn't make it.  You paid no more than $10,000 to use the assessment and your hard costs for the 3 salespeople who failed totaled $195,000 - 20 times the cost of the assessment.

There really aren't any good reasons to avoid using a proven, accurate, customizable, predictive sales candidate assessment.  What's holding you back?

Topics: Dave Kurlan, sales candidates, sales assessements, hiring mistake, sales selection, personality test

All-Time Top Kurlan Sales Article

Posted by Dave Kurlan on Thu, Dec 20, 2012 @ 10:12 AM

sales force evaluation,sales test,dave kurlan,sales candidate assessments,OMG,sales assessements,sales hiring test,sales hiring assessment,objective managementAs promised for today, I'm revealing the single article, from among my former 999 blog articles which my readers voted "best", to be my 1,000th post.  It's not my personal favorite, it's not the most well-written, it's not the most viewed, it's not the most entertaining, it's not the most insightful or the most linked to.  But from among the 15 for which you could vote, this was your choice:

Exposed - Personality Tests Disguised as Sales Assessments

(originally posted on January 28, 2009) 

Yesterday, I met with a longtime client who, in his previous company, used OMG's assessments to identify what needed to change in order to double revenue from $30 million to $60 million.  In his new company, which is already about twelve times that size, he wants to double revenue again.  He said, "I just wasted two years with the _____ assessment."  The assessment to which he referred was a personality assessment marketed as a sales assessment.  He could have referred to any personality or behavioral styles assessment.

Many people are not going to like this article.  I'm about to expose the findings in personality-based and behavioral-based assessments which assessment companies have been marketing as sales assessments for the last dozen years.

First, you'll need to read this piece, Personality Assessments for Sales - The Definitive Case Study.  Really, you need to read it first!

There isn't a tremendous difference between personality assessments and behavioral styles assessments.  Popular behavioral styles assessments, like the various versions of DISC, produce findings along four dimensions (categories) while some personality assessments, like those using the PF16 as their underlying engine or instrument, can measure traits in as many as sixteen dimensions.

But personality assessments and behavioral  styles assessments are not predictive of sales performance.  They don't conduct predictive validity studies, as we do, because their assessments don't predict.  Instead, they conduct construct validity studies, which only show to what extent an assessment measures a specific trait and not necessarily the traits which you want to know about, but the traits which they can actually measure.

So here's the problem.  Their marketing material usually says something like, "Salespeople must be able to Prospect, Question, Manage Objections and Close.  They must have Product Knowledge.  They must be accountable, have drive, be self-starters and be coachable."  You read those words and say, "Yes, yes.  That is exactly what we need."  And the masquerade is on.

As I wrote in the other article, personality-based sales assessments don't really measure what you need to know.  Instead they report on what they can actually measure.  In the table below, I'll list some of the most common "findings" in personality and behavioral styles tests which are marketed as sales assessments, describe what is really being measured and compare that to what Objective Management Group (OMG) measures and reports.

Finding      
 Measures
 OMG Finding
What OMG Actually Measures
Drive or achievement
General need 
to achieve
Desire 
How important it is to achieve success in sales
Resilience 
General ability 
to cope with
adversity
Bravery 
The sales-specific scenarios which will be problematic and the individual's ability to handle them
Rejection  
How the individual
reacts to
not being accepted or
not having their
ideas accepted 
Difficulty Recovering from Rejection  
The impact that "getting hung up on" or "getting a no" will have when they close and how long it may take to recover
Emotions  
Emotional
steadiness 
Ability to Control Emotions 
The likelihood that, when a salesperson is caught off guard or in an uncomfortable situation, they will panic and lose control of the sales call
Sociable 
How comfortable
they feel and how
appropriately they
behave in social
situations  
Bonding and
Rapport   
How quickly they develop relationships with their prospects
Confidence 
Whether they
are a confident
person  
Record 
Collection 
The sales-specific beliefs which support or sabotage their sales outcomes 
Coachable  
Whether they
are open to new
ideas 
Trainable 
Whether they have the incentive to improve their sales competencies 

These are just some of the most common findings.  Since OMG's assessments are so sales-specific, there are literally dozens of findings covering everything which can possibly happen in sales including, but not limited to, prospecting, closing, qualifying, account management, farming, use of the sales process, ability to handle stalls, put-offs, objections and work remotely, growth potential, development needs and more.  What's most important to understand about assessments is that: 

  • The questions in the personality tests are asked in the context of social settings, not sales settings, so none of the findings are sales-specific.
  • Because the findings in personality assessments are not sales-specific, they're not predictive.
  • Personality assessments are generally one-size-fits-all, without regard to your market, its challenges, your competition, your pricing, the resistance which your salespeople will face, your compensation plan and how specific selling strengths and weaknesses will impact those conditions.
  • Assessments of your existing salespeople should be useful for development.  If you don't have sales-specific findings, you're only developing them as people, not salespeople.
  • How is OMG different?  Assessments are only a minor part of an effective sales force evaluation.  The most important part is to be able to learn:
    • What impact sales management is having on the salespeople.
    • Whether you've been hiring the right people.
    • Whether your sales force can execute your strategies.
    • Whether your systems and processes support the sales force.
    • Whether sales management is effective.
    • If you can develop more of a sales culture.
    • Whether the salespeople can make a transition such as account manager types to hunters and closers; presenters and quoters to consultative sales types; transactional sale to a solution sale; etc.
    • Who can be developed?
    • If you're attempting to downsize or rightsize the sales force, which individuals actually have the ability to help you do more with less?
    • How much better can they get?
    • What it will take?
    • What would be the ROI on development?
    • Why do you get the specific results which you get?
    • What is the quality of your pipeline?
    • Etc.
  • When used for hiring and selection, an assessment must be an accurate predictor of sales success for a particular sales role in your particular company, calling on your particular market, with its particular challenges and competition.  A personality assessment won't consistently identify the people who will succeed, while OMG's assessment, with its 95% Predictive Validity, will.  We can differentiate between Recommended (they meet our criteria and yours); Recommended - Ideal (they are recomended and they will ramp up more quickly than normal); and Recommended - Perfect (they are recommended ideal and they meet additional customized criteria which match up with your most effective producers).

In summary, whether you're using a personality assessment, behavioral styles assessment, psychological assessment, or psychometric (describes all of the above) assessment, it's the marketing that's sales-specific, not the findings.  Use them at your own risk.

Topics: Dave Kurlan, sales force evaluation, omg, objective management, sales assessements, sales hiring test, sales hiring assessment, sales candidate assessments, sales test

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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 nine 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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