The Difference Between Sales Competencies, Sales Capabilities and Sales Outcomes

Posted by Dave Kurlan on Tue, Feb 14, 2023 @ 07:02 AM

capabilities

If you watched Super Bowl 57, you observed two teams that simply refused to give up or give in.  Sometimes, that's the feeling I get when I'm writing articles and I have solid data on my side, while dozens of competing authors just won't stop their constant barrage of articles using junk science, anecdotal evidence, and alternate facts.

One such article caught my eye this week. 5 Capabilities Sellers Must Have to Be Top Performers had the potential to be a must read article but it quickly became obvious that the "5 capabilities" in the article are not capabilities at all - they're outcomes.  Maybe I'm getting old and have become ill-informed but it seems like a pretty important distinction, don't you think?  It's like saying that the one important capability that NFL players must have is scoring - which is an outcome, not a capability!  One pet peeve I have from when my son was playing Little League and Middle School baseball was the coach who would yell to the wild pitcher, "throw strikes!"  A strike is an outcome so that's not coaching and it's not instructive.  If the coach suggested a single adjustment to the young pitcher's mechanics, the adjustment would help the pitcher throw strikes.  Similarly, when sales managers tell their salespeople to "sell more" they are focused on outcomes instead of coaching on the capabilities that would help them sell more.

When someone does not know the difference between a capability and an outcome, is that person truly qualified to write about a topic and claim to be an expert?  Unfortunately, it seems like they are. 

Objective Management Group (OMG) has evaluated and assessed more than 2.3 million salespeople and measures Twenty-One Sales Core Competencies.  Five of the competencies are in the category of Will to Sell and are not actually capabilities.  Six of the competencies are in the category of Sales DNA and those are also not capabilities.  Ten of the competencies are Tactical Selling competencies and are very much capabilities so the top five capabilities should come from those ten competencies.

There are many specialized selling roles and the ten competencies do not apply equally to all roles.  For example, Hunting does not typically apply to the Account Management role.  Presentation Approach and Closing do not typically apply to the Hunting role.  That said, the five most important capabilities to be top performers, that apply across all selling roles, are:

  • Ability to Reach Decision Makers. Only 28% of all salespeople reach decision makers (and only 11% are the final decision makers).  83% of the best salespeople and only 5% of the worst salespeople have this capability making the best salespeople 1800% better than the worst.
  • Has and Follows a Milestone-Centric Sales Process.  Only 34% of all salespeople have this capability and the best salespeople are 2075% more capable than the worst salespeople.
  • Ability to Build Strong Relationships.  Only 29% of salespeople are able to leverage their relationships to win business and the top salespeople are 1200% more capable than the worst salespeople.
  • Ability to Get Prospects Beyond Nice to Have.  The best salespeople are 490% better at taking a consultative approach and creating urgency than the worst salespeople.  Only 7% of all salespeople get past "nice to have."
  • Ability to Fully Qualify.  The best salespeople are 8600% better at qualifying than the worst salespeople.

A salesperson who consistently, efficiently, and effectively executes these 5 capabilities are as much as 2400% better than the worst salespeople.

Image Copyright 123RF

Topics: sales competencies, Dave Kurlan, sales results, sales capabilities, sales assessments

This Company's Best Salesperson was 2500% Stronger Than Their Worst

Posted by Dave Kurlan on Wed, Feb 01, 2023 @ 07:02 AM

It's been four months since the baseball season ended but college baseball begins in less than 4 weeks and it will be fun to watch our son play for his college team (while freezing our asses off!).  It's also been a while since the last time I shared a top/bottom analysis but I completed one this week that I had to share.

For new readers, a company's top three performers are compared to the bottom three under-performers in one or more selling roles.  Our analysis identifies the specific scores and findings that differentiate the tops from the bottoms and proves that Objective Management Group (OMG) can differentiate ideal sales candidates from undesirable candidates for a particular selling role at that company.  It can be used as a proof of concept or as a set of custom criteria to further improve predictive accuracy.

The following image is a screen shot of the analysis.

1-30-top-bottom

We identified 45 scores and findings that differentiated the tops from the bottoms. The biggest contrast was between the top salesperson and the worst salesperson where the top salesperson scored 2500% higher (100 and 4) than the worst salesperson.

Some differences are the result of not understanding which selling experiences are crucial to a salesperson's success.  For example, the salespeople who were failing had not previously called on management, had never asked for more than $250,000, had not worked on a commission-heavy compensation plan, and were not well-suited for working remotely.  Those four differences do not require training or coaching to fix, but do require a change in selection criteria.

Huge differences were seen in three of the five competencies included in Will to Sell including Desire for Sales Success, Takes Responsibility and Sales Motivation.  You can't measure those competencies in an interview and if you try you will be fooled every time because you'll mistake them for either enthusiasm or lack thereof.  There are more competencies you can't measure in an interview and their top performers easily outscored their bottoms in five of the six competencies found in Sales DNA, the combination of strengths required to support the execution of sales process, sales methodology, sales strategy, sales tactics.

The top performers outscored the bottom performers by a significant margin in seven of ten tactical selling competencies, with the biggest gaps found in Sales Process and Reaching Decision Makers.

What does the disparity look like at your company?

Would a complimentary proof of concept help to justify using OMG's Sales Candidate Assessments for sales selection at your company?  Would it help you to see how accurate our sales team evaluation would be?  We've been conducting top/bottom analyses for 14 of our 33 years and we can do one for you too.  

Use this link to our, "Ask a Sales Expert" request form.  Copy and past the next line into the "Question" field on that form:

I am requesting a complimentary top/bottom analysis

Someone will contact you to arrange for your complimentary top/bottom analysis.

Topics: sales competencies, Dave Kurlan, sales process, reaching decision makers, sales assessments, sales data

Sitcoms, Sales Process, Sales Assessments and Sales Competencies

Posted by Dave Kurlan on Wed, Jan 11, 2023 @ 16:01 PM

New CNN Original Series 'History of the Sitcom' Premieres with Back-to-Back  Episodes on July 11 | WarnerMedia

If I created a list of the top sitcoms of all time, I could end up with a list that includes the following shows:

  • Friends
  • Seinfeld
  • The Office
  • Everybody Loves Raymond
  • The Cosby Show
  • How I Met Your Mother
  • All in the Family
  • I Love Lucy
  • Cheers
  • Family Guy

If I sent out a survey and asked you to vote on the top sitcoms of all time, the list would have 100 sitcoms to choose from and we might end up with a list that looks like this one.

The keys to these two questions and hypothetical lists are that the first list is my opinion and the second list would be the results of a survey, a popularity contest, or opinions of the masses.

While that's all fine and good when it represents people's opinions of pop culture, it's not fine and good when it comes to business best practices, assessments that could impact whether an individual is offered a job, or even business processes.

More specific to the topic of this Blog, Sales Core Competencies, Sales Candidate Assessments, and Sales Processes cannot be created from popular opinion, surveys or personal bias.  

Conduct a Google search for attributes of successful salespeople and you'll see a page with these results:

These articles include the opinions of college professors, writers and editors reporting on survey results, and people sharing their opinions.  For example, Hubspot, an inbound marketing company published a list of 18 Sales Core Competencies which include non-sales competencies like customer service and data analysis.  Job site Indeed published a list of 18 Sales Core Competencies which include non-sales competencies like leadership and change management.  I'm not suggesting that these capabilities aren't important, but in no way, shape or form should they be considered core sales competencies.  Why would people turn to any of these lists of opinions when there is a widely accepted, definitive list of 21 Sales Core Competencies backed by science and data on more than 2.3 million salespeople?  Perhaps it is a byproduct of Information overload and confusion.  People don't always find the accurate list on their first try.

The same thing happens when you search for sales candidate assessments.  Pages and pages of assessments all claiming to be the one that will prevent you from making a sales hiring mistake.  Most of them are not even sales assessments.  Instead they are personality assessments being marketed as sales assessments.  Again, why use an imposter when the real, accurate and predictive sales candidate assessment is right there, among the choices?  There are simply too many opinions and too much misinformation, as I wrote about earlier this week.   

When it comes to sales process the choices are even worse.  Consider this article about how most sales processes are so old. Yet there they are, being positioned as the solution for selling in the modern era.  More surprising, companies are using them but despite that, there are solid sales processes and useful CRM applications that work in perfect harmony, although you do need experts you can trust to point you in the right direction.

Once upon a time I would have been tempted to use a phrase like, "follow the science" but thanks to years of internet misinformation, it is difficult to know who to trust, who are the true experts and which science is real science. Unfortunately, we must default to skepticism, not trust, the subject of Malcom Gladwell's book, Talking to Strangers which I wrote about last week.

I'll tell you what I think but I'm biased too.  I believe in what I've developed over the past 37 years but maybe that's all you need to know.  37 years of time-tested, proven, reliable, accurate and predictive results backed by science.

There is no sales assessment more accurate and predictive than Objective Management Group's (OMG) Sales Candidate Assessment. Period.. 

Not coincidentally, OMG measures all 21 Sales Core Competencies in detail, providing more than 200 data points on each sales candidate along with our recommendation as to whether the candidate will succeed in the role under consideration.  See the competencies, average scores, and sort by industry or company for free.  You can even see how your salespeople compare here.

When it comes to sales process, it's hard to top Baseline Selling, a staged, customizable, milestone-centric, customer focused sales process based on sales best practices.  Baseline Selling is at its best when integrated into Membrain's easily customized, intelligent, process-based CRM application.

Finding the truth is only difficult when you place too much importance on opinions, surveys and writers.

Image copyright CNN

Topics: Dave Kurlan, sales process, sales core competencies, sales assessments

Top Recommended Personality Assessments for Sales

Posted by Dave Kurlan on Mon, Jan 09, 2023 @ 12:01 PM

My Chrome home page often displays articles that Google thinks I might be interested in. Red Sox, Patriots, politics, software applications, gadgets, and for the first time, sales assessments!  I thought, "Is this for real?"

The first article was the 7 Best Personality Assessments for Your Sales Team.  Regular readers already know that personality assessments are not predictive of sales success because they measure personality traits, not sales core competencies.  That said, they included and mis-categorized Objective Management Group (OMG) as a personality assessment.  Oh well.  At least they knew to include it.  Interestingly, I previously published articles about some of the assessments they listed comparing them to OMG:

Compared to DISC

Compared to Caliper

Compared to Myers-Briggs

The second article was How to Pass a Sales Personality Test.

Again, OMG is not a personality test so it's not surprising that it didn't appear on the list.

The first assessment they named was Caliper which they incorrectly stated shows how personality traits correlate to on-the-job performance.  That would be predictive validity - when findings correlate to on-the-job performance. It's worth noting that OMG is the only sales assessment that uses predictive validity.  Most assessments use construct validity which states that findings are consistent with what they say they are measuring.  Personality assessments have never been and are not now predictive of sales success.

Listing the OPQ as a sales assessment is pretty funny.  They don't even suggest that it is appropriate for sales use!

Hogan is a personality assessment that has been adapted for sales but as with all personality assessments you can be sure of one thing.  They are measuring personality traits, not sales core competencies and as such, they are making assumptions about selling.

Myers-Briggs and DISC round out this list.

To get a better sense of how assessment companies adapt (market) personality tests for sales, the best article that informs on this topic is Exposed - Personality Tests Disguised as Sales Assessments.

Topics: Dave Kurlan, caliper, 16PF, sales assessments, personality assessment, DISC, OMG Assessment, myers-briggs

Can Malcom Gladwell Explain the Sales Hiring Problem?

Posted by Dave Kurlan on Wed, Jan 04, 2023 @ 09:01 AM

Amazon.com: Talking to Strangers: What We Should Know About the People We  Don't Know (Audible Audio Edition): Malcolm Gladwell, Malcolm Gladwell,  Hachette Audio: Audible Books & Originals

CEOs, Sales Leaders, Sales Managers and HR Directors are under water when it comes to sales selection.  They get it right about 50% of the time and that includes salespeople who stay but underperform.  After reading Malcom Gladwell's book, Talking to Strangers, I can finally explain why the success rate is so low.  

The book begins and ends with a traffic stop that escalates into a questionable arrest and subsequent jail suicide and uses its nearly 400 pages to make sense of what happens when people talk to and judge people they don't know, or strangers. 

While Gladwell used dozens of dramatic and real examples, the one that most closely correlates with today's topic is the study of NYC judges.  Around 550,000 cases were analyzed and the judges' bail decisions - whether to set bail and for how much - were compared with the decisions of a software program.  The judges released 400,000 of those people and the computer had to choose which 400,000 to release.  The computer had the exact same information as the judges had in their case files, specifically age and criminal record.  The only difference - and it was a big one - the judges had the advantage of being able to look the defendants in the eyes, talk with them and ask questions to make a more informed decision.  The criteria for this comparison test was whether the defendants that were allowed out on bail while awaiting trial committed another crime. The computer outperformed the judges by 25%.

Gladwell wrote, "Orchestras made much smarter recruiting decisions once they had prospective hires audition behind a screen.  Taking information away from the hiring committee made for better judgments.  But that was because the information gleaned from watching someone play is largely irrelevant.  If you're judging whether someone is a good violin player, viewing whether that person is big or small, handsome or homely, white or black isn't going to help.  In fact, it will probably only introduce biases that will make your job even harder."

I wrote about bias in sales hiring in these two articles:

https://www.omghub.com/salesdevelopmentblog/the-case-for-eliminating-bias-in-hiring-salespeople

https://www.omghub.com/salesdevelopmentblog/can-preventing-hiring-bias-benefit-the-sales-hiring-process

Those two examples are nearly identical to what happens when salespeople are interviewed.  The hiring manager has the candidate's resume (rap sheet) but unlike a criminal record, resumes are not always grounded in fact.  While it's likely they worked for the companies listed and for the time frames given, claims about success are usually out of context or outright fiction.  During the interview, the hiring manager is consistently forming judgments based on their interactions with the candidate. 

I learned from the book that people are pretty good at identifying honest people who act honestly, but not honest people who act like liars.  Similarly, people are pretty accurate when identifying liars who act like liars but not liars who act honestly.  Experts like judges, the CIA, prosecutors, criminal justice experts, psychologists and other experts are right only half the time so it should come as no surprise that managers hiring salespeople experience similar results.

For the sales leaders who claim they trust their gut, this book and its many examples demonstrates that there is no such thing as accurate gut instinct.  Like a coin flip, you'll be right half the time.  So what can companies do to improve on these odds?  Assessments.

Consider these statistics from several sources:

--Companies that don't use assessments experience 18% attrition and their salespeople achieve quota at a rate of 49%. While typical, this is clearly the approach of the stubborn and misguided.

--Companies that use assessments experience 14% attrition (29% better) and their salespeople achieve quota at a rate of 61% (24% better). While better, it's like choosing a 20-year-old car over a bicycle to journey 100 miles.

--Companies that use Objective Management Group (OMG) sales candidate assessments experience 8% attrition (125% better) and 88% of those salespeople achieve quota (80% better). This is the approach that yields the best and most consistent results, like choosing a jet aircraft over a car to journey 3,000 miles.  More science from OMG users:  When clients go against the recommendation and hire sales candidates that were not recommended for the role, 75% of those new hires fail within 6 months.  When they pursue a candidate that was recommended for the role, 92% of those candidates rise to the top half of the sales team within 12 months.

If you hire salespeople, using your gut will yield results similar to that of judges making bail decisions.  If you use OMG, it will be like using the software that outperformed the judges by 25% - only better.

People don't outperform science.

Free and Paid Resources:

White Paper on Sales Selection 
Sales Hiring Mistake Calculator 
Sales Ghosts Calculator 
Sales Recruiting Process Grader 
Free Samples
Sales Candidate Assessment Free Trial (1 complimentary sales candidate assessment)
Learn More (an expert will follow up)
Get started on your own (self-serve subscription plan)
Get started with expert help (full service plan) 
Explore the opportunity to Partner with OMG (for HR and/or sales consultants, trainers and coaches)

Topics: Dave Kurlan, hiring salespeople, Malcom Gladwell, sales hiring tools, sales assessments, talking to strangers

The Connection Between Road Signs, Sales Data, Consultative Selling and Sales Recruiting

Posted by Dave Kurlan on Tue, Dec 06, 2022 @ 07:12 AM

Clearview' Road Sign Font to Slowly Disappear from U.S. Highways

You're driving down the highway and you approach a road sign which says Chicago (South), Green Bay (North). Smart people know that taking the appropriate exit puts you on the road TO one of those cities and that you are NOT IN one of those cities.  Morons think they have arrived.

The sales version of that occurrence is the single most common challenge we observe when watching salespeople "sell." It doesn't matter whether it's a live phone call, virtual meeting, face-to-face meeting, or recorded sales call.  Salespeople who are learning to take a consultative approach to selling hear a stated issue - the consultative selling version of a road sign - but think they have arrived at their destination - the compelling reason to buy.

This is supported by the data.  Objective Management Group (OMG) has data on 2,280,260 salespeople that have been assessed from more than 30,000 companies.  The findings are horrific:

As you can see, even the top 5% don't excel at taking a consultative approach to selling with an average score of 66.  That's not bad, but these elite salespeople score at or near 100 on most of the other 21 Sales Core Competencies.  Only 13% percent of all salespeople are strong at taking a consultative approach while almost nobody in the bottom 50% is strong at this competency.  Signs, whether on the road or on a sales call, point to a path or direction. They do not announce your arrival.

Speaking of signs and data, I would like to share some sales candidate assessment data from six clients.  I'm sharing these because the data provides signs that point to certain paths or, in this case, reasons for the data.

The first column represents the number of candidates assessed in the past 12 months.  As you can see, the client who assessed 417 candidates was much more effective attracting candidates into the pool than the client who assessed 19 candidates.

The second column represents the percentage of candidates that met the specific criteria for success in their specific selling role(s), at their companies, selling to their audience, against their competition, and at their price points.  As you can see, the recommendation rate varied wildly because the criteria for a recommendation is dependent on the specific criteria for success in the role, as well as the difficulty of the role. Additionally, the quality of the candidates varies based on the appeal of the job posting and more specifically, total compensation.

The fourth column represents the percentage of candidates who were not recommended for each company. It's important to note that a candidate who is not recommended is not by default a bad salesperson.  Not recommended means that the salesperson didn't meet either OMG's criteria for the difficulty level and/or the client's criteria for success in the role.  It's possible that good salespeople may not be good fits and you shouldn't have to ask why.  How many salespeople have you hired, confident that they were good, only to see them fail?  Maybe they weren't good, or maybe they weren't good fits.  You could have known in advance had you used OMG.

The third column represents sales candidates that were worthy of consideration.  Worthies are on the cusp. They fall within a few percentage points of the cutoff separating those who were recommended from those who were not. The companies with 119 and 417 candidates with recommendation rates of 27% and 21%, didn't need to consider sales candidates who were worthy because they had plenty of recommended candidates to choose from.  However, the clients with 20, 19 and 74 candidates only had 11 recommended candidates between them so they needed to consider the additional 40 combined worthy sales candidates.

The client in the sixth row ran a job posting that attracted candidates, but not the right candidates. It wasn't tied closely enough to the criteria required for success in the role.  Compare that with the clients in the first and fifth rows who attracted only 39 candidates combined.  Their ads and/or their compensation likely sucked because most candidates were not moved to apply.

The data always takes the form of a road sign and tells you where to go to reach your intended destination.

Topics: Dave Kurlan, Consultative Selling, sales process, sales assessments, sales data

"Spirited" Has So Much in Common with Most Salespeople

Posted by Dave Kurlan on Tue, Nov 29, 2022 @ 07:11 AM

Watch new trailer for holiday comedy 'Spirited,' starring Will Ferrell and  Ryan Reynolds - Good Morning America

Last week we watched Spirited, the new Apple TV Plus take on the old Charles Dickens novel, A Christmas Carol.  In this lighthearted film, Will Ferrell is the Ghost of Christmas Present and Ryan Reynolds is the 2022 version of Scrooge.  This Scrooge is a funny, selfish, materialistic, song and dance man, who is irredeemable. Can Will Farrell's character redeem Ryan Reynolds' character?

As usual, the movie got me thinking about salespeople and Understanding the Sales Force.

Ryan Reynold's character, Clint Briggs, is a fabulous showman, salesperson, and marketing consultant rolled into one.  The problem is that he never considers anyone or anything other than himself and his personal success..

There is a correlation between Clint Briggs and salespeople, many of whom are also irredeemable, but for different reasons. 

Most salespeople - 87% - still sell like it's 1975 and fall into one of three buckets:

  1. They sell transactionally. In other words, they talk about their company, their products and services, themselves, their features and benefits, and try to leverage that for a sale.
  2. They rely on demos to generate interest and then try to close.
  3. They rely on having the lowest price and take orders.

Only 13% of all salespeople take a consultative approach to selling and almost none of them can be found in the bottom 50% - the group that fails to meet quota each year.  A coincidence? On the other end of the spectrum, the top 10% of all salespeople are 4300% more likely to have the Consultative Seller competency as a strength!

Are the 87% redeemable?  Can they make the transition from transactional sellers, demo-focused presenters, and price focused order takers to professional, consultative sellers?  Only an OMG (Objective Management Group) sales team evaluation (SEIA) can answer that questionDownload free samples of the sales team evaluation here.

Spirited does have three things in common with prior versions of A Christmas Story and those are the ghosts of Christmas' past, present and future.  That got me thinking about the articles I wrote in 2022, the articles you'll see in December, and what you can look forward to in 2023.

Our ghost of articles past reminds us that we began 2022 talking about whether buying has changed and if salespeople have adapted.  We followed that up with our 6th installment in the popular Bob Chronicles about salespeople who make things your problem.  Then came an article about the 10 Unwritten Rules of Prospects and how to break them.  

February began with an article on how hiring salespeople the right way yields 62% less turnover and 80% higher quotas.  We followed that up with the similarities between cyber thieves, hackers and most salespeople.  No kidding!  Then came this favorite, the 7th installment of the Bob Chronicles about salespeople who can't close closable business.  I love the Bob articles!  Then I provided 10 steps to crush your sales forecasts.  Finally, our last article in February was my review of a prospecting email with some elements that could actually work for salespeople.

March started with an article explaining how salespeople with a high tolerance for money are 4,000 percent better than those with a low tolerance for money.  That's a huge differentiator!  Next was the comparison between great baseball coaches and great sales coaches.  Then I began a new series of my most popular videos and rants.  It started with the top 10 but there are now nearly 2 dozen popular videos and rants to watch! 

April started with another baseball analogy - this one about how the philosophy of great pitching coaches can improve your sales team.  Then I explained how to identify the accurate reason for a salesperson who is not performing.  

May's first article had my 5 simple steps to grow sales by 33%.  Really!  May ended with an article about how to prepare your sales team to thrive in a recession.

In June, I explained how salespeople like to go fast but good salespeople actually go slow and followed that up with an article on the benefits of competency-based assessments.   

In July, I wrote about why you can't afford to lose customers or salespeople right now.  Then I wrote about big company strategies that small and medium businesses can emulate.  The last article of July explained the differences in requirements for success in different selling roles

August began with one of my trademark takedowns of a junk-science article with 20 attributes of successful salespeople. Not. That was followed with an article about how to stop account churn.  Then I explained how my car's qualifying ability is a great example of how salespeople should qualify. Then came the article that explained how salespeople would be impacted by the 15% minimum corporate tax and how difficult it would be for the IRS to hire 80,000 agents.  Sorry if reporting on an actual news story offended some of you.  The post that should have gotten people upset but didn't was when I compared the sorry and pathetic Boston Red Sox to most sales teams.  Not a single complaint about that one!  My final article in August was another baseball analogy where I compared closing a tough sale to hitting a home run.

In September I found and shared an article with a doctor's testimonial about the importance of his salespeople.  Awesome!  Then I wrote about 10 attributes that do not differentiate top from bottom salespeople.  Next up was my tortured message to the masses wondering why more companies don't use OMG.  Then came another takedown of a Harvard Business Review article that appeared online.  The last article in September talked about how you can double your revenue in a recession.  

October began with my personal life comparison of Jeeps and Infinities and how that analogy holds up when interpreting an OMG sales candidate assessment for hiring salespeople.  My 8th installment of the Bob Chronicles looked at the difference between selling skills and effectiveness.  Then I compared alleged criminals who are released under cashless bail to underperforming salespeople who are released back into the field.   My final October article explored the correlation between motivation and sales compensation.

In November I wondered if salespeople will sell more effectively when sales managers sell and coach and if new sales managers can be difference makers.  Then I wrote a take-down of a Wall Street Journal article about selling to millennials.  My most recent article compared my failing wiper blades to why executives fail to take action when they have underperforming sales teams.

Which of these articles will make the list of the top 10 articles of the year?  Stay tuned for the December reveal as well as my annual Nutcracker post.  In 2023 I'll be focusing even more on how you can use OMG's data to improve sales performance.

Topics: Dave Kurlan, Consultative Selling, sales process, Salesforce, sales performance, sales tips, sales effectiveness, sales assessments, sales team

5 Reasons Sales Teams Underperform Like My Old Wiper Blades

Posted by Dave Kurlan on Thu, Nov 17, 2022 @ 07:11 AM

The 6 Best Windshield Wipers and Glass Treatments for Your Car of 2022 |  Reviews by Wirecutter

My windshield wipers were no longer getting the job done.  They were underperforming (leaving streaks and smudges), not clearing water from the windshield (failing to meet expectations) and I couldn't see the road properly when it was raining.  It presented a threat to our safety and an upgrade was required.  

I ordered Bosch Icon replacement blades, rated #1 by the NY Times, and after 30 minutes of unintentionally trying to put them on backwards, I finally got them installed. They were freaking awesome.  They exceeded my expectations in the rain, and last night they over performed in the snow.

The wiper blade adventure got me thinking about a few things. My car has 37,000 miles on it but the blades should have been replaced 17,000 miles ago so why did I wait so long? How is this similar to what companies go through when their sales team is underperforming?

I speak with a lot of CEOs and Sales Leaders from companies whose sales teams are underperforming.  One thing they seem to have in common is the mileage problem.  When I ask how long the sales team has been underperforming, it is usually the equivalent of 60,000 miles.  It's not a new problem, the signs have been there for YEARS but something recently changed to the extent that they couldn't tolerate it any longer.  The sales team's performance was finally presenting a threat (safety) whereby one or more of revenue, earnings, sustainability, personal income, stock prices, turnover, market share, morale and more were at risk.

What causes executives to wait so long?  Here are five potential reasons:

Hope - They hope this is the month or quarter that turns things around.  As everyone has heard by now, hope is not a strategy.

Misinformation - Their sales managers/sales leaders provide an overly optimistic narrative about how things are going.  "We have a great pipeline."  "We have some great opportunities." "Our salespeople are having some great meetings."  The keyword is great.  What makes the pipeline, opportunities, and meetings great compared to past months or quarters?

Fear - Sales are not very good right now, but what if we ask for outside help and we swing and miss?  Won't that be even worse?

Patience - They don't want to be guilty of a knee-jerk reaction so they wait a little longer.  After all, cash flow is still positive, so what's the harm in waiting?  Just another day.  Sure, another week.  Maybe another month.  Could we kick it down the road for another year?

Ego - They mistakenly believe that if they ask for help they will appear weak.  Executives don't think twice or worry about bruised egos when they need the advice of attorneys, accountants, bankers, commercial insurance agents, property managers, asset managers, wealth managers, etc.  Why does their ego start trouble when it comes to sales experts and their advice?

For every CEO and Sales Leader that do reach out, a third of them will remain in wait-and-see mode, failing to take action  commensurate with their underperforming sales team. They think that one big sale will solve their problem, but the reality is that one big sale will only further mask the problem.

A Sales Team evaluation helps executives - those who are ready and those who are hesitant - to understand why their teams are underperforming and what can be done about it.  You can learn more about a sales team evaluation here.

Topics: Dave Kurlan, sales training, sales performance, evaluation, sales enablement, sales assessments, sales team, OMG Assessment

The Irony of Free Passes for Under Performing Salespeople

Posted by Dave Kurlan on Fri, Oct 21, 2022 @ 08:10 AM

criminal

If you aren't aware of the crime taking place in most of America's big cities, you have either been living in a cave or experiencing willful ignorance. Most of the alleged criminals are repeat offenders and those who are arrested are usually back on the street committing additional crimes later that day due to cashless bail and the presumption of innocence.  

If you think about it, and you don't have to think very long or hard, cashless bail mirrors how companies deal with under-performing salespeople who are also repeat offenders.  Let me explain.

A typical US sales team consists of 15 people, including a Sales VP, 2 Regional Sales Managers, and 12 salespeople.  Of course, there are exponentially larger and smaller sales teams, but this is the version that we most frequently encounter.  This team will have no more than 3 performing salespeople, another 3 who sometimes hit their numbers, and 6 who chronically under-perform.

Let's assume that the salespeople who are ranked 10-12 are not just under-performers, but pathetically ineffective salespeople.  At the end of the year, they receive their annual review - the equivalent of an arrest and release - and are back on the street to underperform for another year, making the company both both the victim and the enabler.  This is insanity!

While some could argue that this is happening because it is so difficult to find sales candidates and harder still to find good ones.  The argument doesn't hold up because while the current labor market is consistent with the lack of quality sales candidates, the practice of rewarding sucky salespeople with continued employment has been around as long as I have!

Three contributing factors to this practice are relationships, ego and hope.

Most sales leaders aren't comfortable terminating salespeople with whom they have developed a strong relationship.  Their ego doesn't allow them to terminate ineffective salespeople because it would be an admission of a hiring mistake and ineffective coaching.  And they hope that this will be a breakout year for these salespeople.

OMG's (Objective Management Group) Sales Team Evaluation provides leaders with science-backed data to know which under-performers can be trained and coached up, how much better they can become, what kind of help they will need to achieve those improvements, and how long it will take.  Isn't that better than hope?

While it helps to train and coach up those who can improve and identify those who can't, the other way to address this issue is to fix the sales hiring problem.  It's time to stop using gut instinct, personality assessments that weren't designed for sales, faulty sales recruiting processes, and resumes as a basis for hiring salespeople.  These practices are at best hit or miss with an emphasis on miss, and examples of ego getting in the way of methodically making good sales hiring decisions.  OMG's legendary sales candidate assessments are customizable, accurate and most importantly, predictive of sales success in the specific sales role for which the company is hiring.

Several White Papers on these topics are available as a free download here.

You can request samples here.

You can see the 21 Sales Core Competencies OMG measures here.  Each core competency has an average of 10 attributes for a total of around 200 scores/findings per salesperson.

You can request more information here.

After an OMG evaluation of his sales team, one of the regional sales managers pushed back and said the OMG evaluations were wrong. The scores were not very good for his top salesperson despite the fact that he sold the company's biggest deal last year and just made president's club.  I asked some questions and learned that this salesperson's big deal was his only decent sale in 6 years and his sales manager actually closed the heavily discounted deal.  I asked the sales manager which was more indicative of who his salesperson really was - the 6 years of under-performance or the one deal that his salesperson received the credit for?  After a minute of hemming and hawing, he admitted it was the 6 years.  Then I asked which was a more accurate evaluation of that salesperson - the OMG evaluation or his own evaluation.  After another round of hems and haws and he admitted it was the OMG evaluation. 

The best investment you can make to improve sales performance is to use OMG's suite of sales team evaluations and candidate assessments.  They are the Gold Standard.

Image copyright 123RF

Topics: Dave Kurlan, sales hiring, sales performance, sales excellence, sales enablement, underachieving, sales assessments, sales success

How to Hire the Right Salespeople Using This Jeep vs. Infiniti Analogy

Posted by Dave Kurlan on Fri, Oct 07, 2022 @ 07:10 AM

Before I purchased my first Jaguar, my dream car was the Infiniti Q45.  In the early 90's, I couldn't wait to get that car and when winter came, I couldn't wait to get rid of it.  It didn't matter what kind of tires I put on that expensive-but-useless-piece-of-crap-for-all-of-winter car, it wouldn't go in the snow and ice.  I had to drive up a steep, mile-long hill to get home at the end of the day, and the hill wasn't well salted or sanded because it ran alongside a lake.  The parts of the Q45 became more important than the appeal of the car.

My brother-in-law had an old jeep.  It wasn't expensive and it didn't look great but it drove so well in the snow and ice that he rescued me when my Q45 wouldn't make it up that long hill.  The parts of the Jeep were more important than the lack of appeal of the Jeep.

That brings us to OMG's (Objective Management Group) Sales Candidate Assessment.  Usually, the overall score, relative strength of a candidate's capabilities, and recommendation are more important than any specific scores.  Usually.  But with the assessment of Mary, it was an entirely different story.  

Let's review the scores and findings from Mary's OMG Sales Candidate Assessment. She had really good scores.  Really good. Her Sales Percentile was 82 so she was stronger than 82% of the salespeople in the world. So was OMG wrong?  Why did the company hire her?  Why did she fail?

OMG wasn't wrong and as usual, OMG nailed it.  She wasn't a good fit for a new business development role and OMG did not recommend Mary for that role. But the company didn't want to pass on a sales candidate who was an 82 so they invited her in for an interview.  You know what happened next.  She sold herself, they thought her experience was a fit, and they hired her.

It didn't take long for the failing to begin.  While Mary scored well in 16 of the 21 Sales Core Competencies, four of the five competencies in which she scored very poorly were crucial to success in the role she was hired for.

 

  • Doesn't Need to be Liked - 62.  A score over 79 is preferred for this role.
  • Reaches Decision Makers - 35. A score over 66 is preferred for this role.
  • Relationship Building - 17.  A score of over 59 is preferred for this role.
  • Responsibility - 0. A score of over 74 is preferred for all selling roles.
  • Closing - 24.  24 would have been fine if she could do everything well that must take place prior to closing.

Mary couldn't get past gatekeepers!

Mary would call, the gatekeeper would answer and attempt to get rid of her, and because Mary needed to be liked, she couldn't push back and overcome the initial wave of resistance.  Failing to reach the decision maker, she settled for someone without authority, failed to build a relationship, and did not impress mid-level managers enough to reach the decision maker.  She blamed the selling model, the gatekeepers, the training, the coaching, her manager, the company and anything and everyone other than the source of the problem:  Mary.

Do you remember my opening analogy about cars and their capabilities in the snow and ice?  Mary's overall score of 82 is the Infinity Q45 and her four weaknesses are the four tires.  It didn't matter how good her assessment looked, none of that mattered if she couldn't get the sales cycle started.

The warnings were right there in green, gold, red and white.  Good for OMG.

The client ignored the obvious and focused on a single number.  Bad for the client.

The salesperson failed in exactly the way that was predicted.  Another case of the salesperson simply being the salesperson.

There is nothing more accurate and predictive for hiring salespeople than OMG's Sales Candidate Assessments and OMG has assessed 2,258,422 of them!

If you are one of the 35,000 companies using OMG to assess your sales candidates, thank you!

If you want a sample click here and place a checkmark next to Sales Candidate Assessment.

If you want to take it for a test drive click here for a free trial.

If you're ready to get started click here and an expert will help you customize the tool for the sales role(s) you are filling.

Topics: Dave Kurlan, Need for Approval, sales recruiting, relationship building, reaching decision makers, sales hiring assessment, sales assessments

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Best-Selling Author, Keynote Speaker and Sales Thought Leader,  Dave Kurlan's Understanding the Sales Force Blog earned awards for the Top Sales & Marketing Blog for eleven consecutive years and of the more than 2,000 articles Dave has published, many of the articles have also earned awards.

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