Why You Will Finally Pay the Price of Not Selling Value

Posted by Dave Kurlan on Mon, Mar 16, 2020 @ 23:03 PM

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Given the current circumstances - a Global Pandemic and an economy where so many industries have been shut down or compromised - selling value will be more important than ever.  

The result of selling value is that you are able to win the business despite not having the best price. But when we talk about selling value, what does it really mean?

One sales expert who reached out to me last week was worried that when we are focusing on the Value Selling Competency, uninformed salespeople interpret that as an invitation to present the company's value proposition.  They see it as an opportunity to show and tell and talk about capabilities.  He's right.  Most salespeople will seize on an opportunity to share what they know because it is so much easier than asking lots of tough, timely questions.  Let's take a look at the science.  

Objective Management Group (OMG) has evaluated or assessed 1,961,459 salespeople.  In the table below, you can see the percentage of salespeople who are strong in 3 Sales Core Competencies, as well as Sales DNA (average score of the 6 competencies that make up Sales DNA).  All of these impact one's ability to Sell Value and are presented below sorted by various groups of salespeople. 

Group

Selling
Value

Sales
Process
Consultative
Selling
Sales DNA
All Salespeople 41% 45% 15% 28%
Top 5% of All Salespeople 97% 85% 60% 100%
Less Than 2 Years Experience 6% 29% 6% 11%
More Than 10 Years Experience 53% 53% 20% 37%
Bottom 50% of All Salespeople 11% 27% 3% 1%

This isn't a pretty picture because it basically shows that except for the top 5%, most salespeople suck at selling value.

There are four reasons for this:

  • They aren't following or using a sales process that supports Value Selling - only 45% of all salespeople have Sales Process as a strength.
  • They aren't using a consultative approach and value selling won't work without one - only 15% of all salespeople have Consultative Selling as a strength.
  • Their Sales DNA doesn't support consultative or value selling - only 28% of all salespeople have Sales DNA as a strength
  • The company hasn't been decisive about not discounting - it sends conflicting messages.

You can't really get salespeople to properly and effectively sell value until they have been trained on sales process, consultative selling and been coached up on Sales DNA.

Circling back to the sales consultant who reached out last week, I suggested that selling value uses a consultative approach where:

  • The consequences of the problem are monetized or quantified and the solution is a fraction of the cost.
  • The salesperson, as a result of their care, concern and expertise, becomes the value.
  • The salesperson is valued as a trusted advisor compared to competitors who are mostly viewed as vendors.

Selling value will help your company navigate the economic ripple effect from the Coronavirus.  You'll not only continue to generate revenue,  you'll be able to maintain your margins too.

I've referenced only 3 (plus Sales DNA) of the 21 Sales Core Competencies in this article.  You can view the data on all 21 Sales Core Competencies and even see how your sales team compares here.

Comments?  Leave them in the LinkedIn discussion of this article.

Image copyright iStock Photos

Topics: Dave Kurlan, Consultative Selling, sales process, sales force evaluation, selling in the recession, coronavirus

How Companies Choose Sales Training Companies is Backwards

Posted by Dave Kurlan on Tue, Feb 11, 2020 @ 06:02 AM

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Do you partake of dessert prior to eating your appetizer?  Do you eat your dinner in the morning and have breakfast at night?  Would you prefer to have the builder complete the finish work on your new house prior to framing it and installing the roof?  Would you back your car out of the garage before opening the garage door? (I've actually done that by accident - twice!)

It's all quite silly.  You wouldn't think of doing those things in that order but that's how most companies choose sales training companies.  After 35 years in the sales training industry, I'm qualified to comment on this silly behavior, and explain why companies have it all backwards.

If your company is going to partner with a third-party to help increase sales, the actual sales training component should be the last of the various services to be delivered.  What services should be delivered prior to sales training?  

First, a complete sales force evaluation to identify the gaps, problems, challenges, and most importantly, the reasons why your sales results are what they are. This allows you to set realistic expectations for growth by understanding who is capable of improvement, by how much they can improve, and what will be required in the way of training and coaching to achieve that growth.  If you provide training without conducting the evaluation you might as well just write the check and spare everyone the time, effort and aggravation.

Second, sales process.  Your sales process must be customized and optimized because training must introduce your formal sales process and all of the content must be delivered in the context of the process.

Third, sales management training and coaching. If you want the sales training to work, then your sales managers must be trained and coached so that they can coach to the content in the context of the sales process. If your sales managers won't or can't coach consistently and effectively, the training won't stick and the changes won't take place.

Fourth, tweaks to your sales operations infrastructure.  You don't want to start tweaking things after sales training has begun.

Fifth, Upgrades.  Some of your existing salespeople won't be part of your future and knowing who they are in advance from the intelligence of the sales force evaluation allows you to replace them before, not during the sales training. 

Of course, there are other variables, like how the training will be delivered, support materials and technology, the effectiveness of the trainer, how many training sessions a program will include, the topics that will be covered, how much role-playing will be included to demonstrate what good conversations sound like, and homework assignments.  If you make the mistake of rolling out sales training instead of the sales force evaluation as the first step, you won't have the MRI of the sales organization, or a sales radiologist to read the MRI, so it would be like ordering surgery from a menu instead of receiving the proper needs-based treatment.

Where do you find such a sales radiologist?  Objective Management Group (OMG) partners with 300 of the best sales experts in the world who all provide those services as part of an OMG Sales Force Evaluation.  Sure, there are other assessment companies and other team reports but nothing compares with what OMG offers.  Not a single one is able to do the in-depth sales-specific analyses of your team that OMG provides.  Request a sample Sales Force Evaluation

Some of the analyses that OMG includes in a Sales Force Evaluation:

  • Role Analysis (right people in the right roles)
  • Pipeline Analysis (quality and restaging)
  • Sales Process Analysis (thoroughness, sequence, milestones and adherence)
  • Development Analysis (scope, friction, opportunity and timeline)
  • Analysis of 6 Sales DNA Competencies (do strengths support sales process, strategy, tactics?)
  • Analysis of 10 Sales Capability Competencies (selling skills)
  • Sales Management Coaching Analysis (skills, environment, frequency, topics, effectiveness)
  • Sales Leadership Analysis (competencies and effectiveness)
  • Messaging Analysis (elevator pitch and value proposition)
  • Analysis of 5 Will to Sell Competencies (can vs will sell)
  • Industry Comparison Analysis in all 21 Sales Core Competencies
  • Systems and Processes Analysis (sales operations)
  • Priorities for Growth (areas to focus on and training and development requirements)

Image Copyright iStock Photos

Topics: sales assessment, Dave Kurlan, sales hiring, sales process, sales force evaluation, sales training

Data Shows 1st Year Sales Improvement of 51% in this Competency

Posted by Dave Kurlan on Tue, Sep 18, 2018 @ 13:09 PM

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I've written extensively about how salespeople score in 21 Sales Core Competencies. Typically, both the articles and data are shared in the context of the difference between top salespeople and weak salespeople but rarely have I written about what happens after salespeople have been evaluated.

Here's how it usually works.  A company asks their outside sales expert for help growing sales.  As a first step, the expert suggests evaluating the sales force using OMG's incredible suite of tools.  The results are shared and reviewed with the client and anonymous data from the evaluation is added to our nearly 1.8 million rows of data.  That is the data I so often write about and you can see the aggregate scores, sorted by sales percentile, industry or region, at our public statistics site.

Post evaluation, the expert will likely help the company by providing some combination of training, coaching, consulting, recruiting, systems and processes updates in the areas that need to be improved.  As a result, do salespeople actually get better?  That's a direct result of the trainer's/consultant's effectiveness, the company's commitment to change, and the sales managers' ability to coach to the sales process and methodology, all well out of OMG's hands.  However, we do have some insight into how much their salespeople improve.

Approximately one year after the initial sales force evaluation, OMG offers to conduct a checkpoint where change can be measured and now I have the data.

I looked at the before and after scores for eight of the 21 Sales Core Competencies as well as the Reaches Decision Makers, Account Manager and Farmer competencies for a total of 11.  See the table below:

checkpoint-changes

One of the first things you might notice is that scores went down in 2 competencies - Relationship Building and Account Management.  Many salespeople believe that selling is simply having relationships and showing up. Then, when training and coaching targets the more impactful competencies, it's not unusual to see scores actually get worse in the two competencies they previously took for granted.

Another thing you might notice is the significance of change for Closing, Reaching Decision Makers, and Selling Value, a bi-product of what I assume the training and coaching would have been focused on post evaluation.

Twelve months later, there is an overall 18% improvement in scores.  We know that just a 10% improvement creates a 33% increase ins sales.  Don't believe me?  Check out this table:

10-percent-improvementIf a 10% improvement creates a 33% improvement in revenue, what does an 18% improvement create?  Math is a really important tool in creating value and in this case, math tell us we can expect a 59% increase in revenue.

Image Copyright iStock Photos

Topics: sales assessment, Dave Kurlan, sales force evaluation, Closing Skills, sales core competencies, sales data

B2B Salespeople Send 16,000+ Unqualified Proposals Each Day!

Posted by Dave Kurlan on Wed, Nov 29, 2017 @ 21:11 PM

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If you have a role in sales or sales leadership then what could be better than knowing exactly how you and/or your salespeople REALLY compare with the other salespeople in your industry or in the world?  Could anything be more fascinating than a visual or infographic depicting how effective your sales force is at various aspects of selling?  And what if these visuals could demonstrate that B2B salespeople create and send more than 16,000 inappropriately timed proposals each day?  Cool, huh?  More on that data in a minute.

Earlier this year we introduced a free public site where you could actually see how your salespeople compared in each of the 21 Sales Core Competencies.  Recently, we improved the site so that in addition to average scores and comparisons in each competency, you can see the percentage of salespeople that have each competency as a strength.  Check it out here!

I love some of the new infographics we have developed to show clients the capabilities of their sales force.  For example, check out this slide that visually tells the story of how their sales force sells.  The number in each pie chart is the average score in each competency and the colors indicate the percentage of salespeople that have that competency as a strength, weakness or in between.  For example, the highest average score for this sales force is for the value seller competency but only 1/3 of the sales force has value seller as a strength.

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This is a cool slide.  It shows the 8 sales leadership competencies that we measure in the outer ring and his tendency by rank outside the ring. When a tendency is not aligned with a strength we have a problem.  For example, in this slide, strategic thinking is green - a strength - but strategy is ranked 6th out of 8 as a tendency and recruiting - a weakness - is ranked 1st out of 8 in his tendencies.  Those are both problems!  Gene should be spending much more time on strategy and much less time on recruiting.

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We reevaluate a sales team after a year or so and this is how we show the change in a particular competency.  In this slide the average score increased from 39 to 47 in the Consultative Competency and there were improvements in most of the attributes and half of the salespeople now had this competency as a strength.

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My favorite slide is the one where we restage the company's pipeline according to what's real.  In the slide below,  we looked at 717 late stage proposal ready opportunities.  If they were all truly late stage, the visual would have looked like the umbrella stand in the middle image.  However, our analysis caused 36% of the opportunities to move back to the suspect stage and 33% of the opportunities back to the prospect stage.  Only 27% were actually closable and another 4% were qualified.  This company prematurely sent 494 unqualified proposals!

pipeline2.png

This company is not unusual.  If their 239 salespeople produced 494 unqualified proposals, then how many inappropriately timed proposals do 4.5 million B2B salespeople produce?  A little more half are in inside sales roles that handle the top of the funnel.  That leaves around 2 million B2B salespeople who are making 4,133,891 premature unqualified proposals per year or 16,535 per day!

We have around 50 more infographics like these that help to visually show how well equipped a sales force is to compete, win more business and grow revenue.  We identify all of the gaps and issues to be addressed and recommend a plan of action to accelerate sales effectiveness. 

 Most importantly, we provide answers to the questions that companies cannot answer on their own.  If this interests you, excites you or is something you want us to do at your company, just email me and I'll forward it to the appropriate person.

Image Copyright iStock

Topics: Dave Kurlan, Consultative Selling, sales force evaluation, sales leadership, sales core competencies, OMG Assessment, sales proposal

Insights Revealed in The Ultimate Analysis of the Sales Force

Posted by Dave Kurlan on Wed, Aug 16, 2017 @ 11:08 AM

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Image Copyright iStock Photos

They say that data is king and all this time I thought it was Elvis who was King. Who knew? Unfortunately, it all sounds a bit authoritarian so what if we just say that great data can provide us with great insights so that we can make better decisions?  

Objective Management Group (OMG) has approximately 275 million data points from assessing and evaluating more than salespeople from companies. The exciting thing is that there are some very cool things that OMG does with our data.

For example, when we evaluate a sales force we include analyses that you can't get anywhere else. My favorite is our Comprehensive Pipeline Analysis which I wrote about here.

Another one of my favorites is the Ideal Role Analysis where we identify the best people for a particular sales role and the best sales role for each of your people.

I referenced that along with some of the insights from several other analyses in this must read article.

We provide a Strategy Alignment Analysis, a Sales Core Competency Analysis, a Sales Cycle Analysis, a Pipeline Building Analysis and an Analysis of Under-Performing Salespeople. We have a Messaging Analysis, a Value Selling Analysis and a Consultative Selling Analysis. We have a new Analysis of the Coaching Environment, a Sales Leadership Tendency Analysis, a Sales Selection Analysis and a dozen more. Soon we will be introducing a Sales Culture Analysis.

Analyses are great but they can't be analyses simply for the sake of doing analyses.  In other words, we shouldn't do them simply because we can.  We live by our brand promise which is Actionable or it's Free. You should be able to take some actionable step as a result of every analysis we include in a sales force evaluation.  It doesn't mean that you'll like the data or the conclusion.  Why should you?  The very reason for having your sales force evaluated is because it isn't possible to come up with this kind of information on your own!  So while some of the data will reinforce what you were thinking or hoping, most will confirm that changes need to be made.

Here's an example of the top 5 sales force evaluation conclusions and findings that leaders don't like to hear.

The purpose of today's article is to ask if you were going to have your sales force evaluated and choose which analyses to include, which would be most important to you and what kind of analysis would you want that I didn't list above?  Your comments would be great appreciated!

Topics: Dave Kurlan, sales force evaluation, sales analysis, pipeline analysis, sales role analysis

How Executives Fail to Understand the Reasons for Poor Sales and Revenue Performance

Posted by Dave Kurlan on Fri, Aug 11, 2017 @ 09:08 AM

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"That wasn't what I expected!"  

You might say that after reading an awesome book, waiting for months and years in anticipation of the movie version, only to be extremely disappointed when the much hyped film failed to live up to what you remembered feeling when turning the pages.

You might also feel let down after leaving a great, but expensive restaurant, but the meal, service or ambiance was quite different from what you had imagined when you heard about the business.

And from experience, I can tell you that once in a blue moon, after we evaluate a sales force and present our findings, a rare CEO can become defensive and react poorly to the results.  When it happens, it's usually a sign that the CEO is out of touch with the sales force.  I'll share some of the things to which they sometimes react badly:

The top 5 findings that a CEO might react poorly to are:

  1. An executive sales leader appears to be weak on OMG's Sales Leadership Evaluation.  The CEO might say, "Well, the only reason we landed that multi-million dollar contract with that billion dollar company is because of Bob.  He sold it himself.  So how do you explain that?" 

    The CEO didn't recognize that the company took a great major account salesperson, place him in the Sales VP role, and instead of leading the sales force and functioning as a Sales VP should, he still wants to be the rainmaker and the star of the show. That definitely makes him a weak Sales VP!

  2. The entire sales team is weak.  The CEO might say, "Then how do you explain our double digit growth over the last 5 years?"  

    The CEO doesn't recognize that the company's success has more to do with great marketing and desirable products than the salespeople who represent them because their salespeople just plain suck!  This is an example of Mediocrity winning out over excellence. If the company grew at double digit rates with this group, then they would be growing by leaps and bounds with stronger salespeople!  

  3. The salespeople have issues around the Will to Sell.  Many of the salespeople lack the kind of commitment to sales success that is required to get to the next level.  The CEO might say, "I can't understand how that can possibly be and I certainly don't know how to fix it."  

    The problem is that the company was hiring the wrong salespeople, focusing on technical skills instead of sales core competencies and in doing so, created a culture of complacency.

  4. With the proper training and coaching, the existing sales force can generate 75% more revenue but it will take 24 months.  The CEO might say, "That's a considerable increase.  I don't believe that's possible.  Why is it so large and why will it take so long?"  

    The problem is that the existing sales force is so weak that they are leaving letting large numbers of opportunities slip through their fingers without any ability to capture it.  It will take 24 months because the gaps are so wide and deep and there is a lengthy sales cycle.

  5. Some of the top account managers evaluated as weak salespeople.  The CEO might say, "They are the top 3 salespeople so they can't be that weak!"  

    The problem is that those 3 account managers manage more revenue than anyone else and they're extremely important to your success.  However, they aren't your top 3 salespeople and we can prove it.  If you took their existing accounts away - which they probably inherited and didn't close themselves -  and asked them to build a pipeline, close some new accounts and generate new business, they would fail in dramatic fashion.

Our eyes can be wide open yet still fail to see what we don't want to see.  When expectations aren't met it causes the three D's - discomfort, disappointment and disaster.  Sometimes you can't see the reality of your own sales force until you have the actual data and use it to look at your people, systems, processes and strategies through a different lens.  Companies that fight the data don't change.  Companies that are afraid of the data remain clueless.  And companies that embrace the data grow by leaps and bounds.

The sales force evaluation is the most important and powerful thing you can implement at your company.  It leads to better decisions, changes based on science instead of hunches, and improvements based on necessity instead of opportunity.

Topics: sales assessment, Dave Kurlan, sales force evaluation, sales effectiveness, Drive Revenue

Great, Previously Unread Sales Research Uncovered

Posted by Dave Kurlan on Wed, Aug 02, 2017 @ 10:08 AM

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Today I'm bringing you some insightful information that was not widely read when it was published back in 2014.  Tony Cole, CEO of Anthony Cole Training and one of OMG's great partners, forwarded me an article that appeared in the October 2014 issue of the Journal of Marketing Research.  The 19 page article, by Kumar, Sander and Leone, was much more intelligent than anything I have ever written or developed. They used vocabulary that I had to look up!  It was so intelligent, that after my third attempt to read it, I still can't figure out what they are saying.  I'm not smart enough.  Anyway, even if you don't attempt to read this article, you need to click on the link and skim the pages just to see how unreadable and math-based it is.  So who are these authors?

Kumar (VK) is the Chang Jiang Scholar (HUST), Richard and Susan Lenny Distinguished Chair & Professor of Marketing, and Executive Director.

Sarang Sunder is a doctoral student in Marketing, Center for Excellence in Brandand Customer Management, J. Mack Robinson College of Business, Georgia State University.

Robert P. Leone is the J. Vaughn and Evelyne H. Wilson Chair and Professor of Marketing, Neeley School of Business, Texas Christian University.

On the ninth page of the article they begin the section on methodology with this paragraph:

"We estimate a latent class model to account for the unobserved heterogeneity. We also account for the potential endogeneity problem that arises due to the opt-in nature of the training interventions using an instrumental variable approach. Next, we describe the details of the model specification and its estimation."

That was the only paragraph in the entire article that I came close to understanding.  To me, it looks more like a document on physics!

They claimed that nobody had ever looked into a methodology for evaluating sales forces until their foray into this area, so they couldn't have looked very hard.  A google search on sales force evaluation turns up 1.8 million results and OMG and/or Dave Kurlan occupies most of the top 10 spots.

At the risk of offending these three scholarly writers, what do they know about sales and salespeople?  Their article studies one large company with around 500 salespeople and they attempt to determine a salesperson's future value to a company.  In their work evaluating the sales force, they don't measure any of the 21 Sales Core Competencies.  As a matter of fact, it appears they aren't even aware of the Core Competencies of Selling.  They paid more attention to CLV (Customer Lifetime Value) than any selling competencies that this sales force might have possessed.  If you take a peek, you might conclude the same thing that I did. which, Their model is based more on historical buying patterns of existing customers, retention, and application of those findings to potential new customers. Then they consider the impact of incentives and training. In other words, this isn't even about the salespeople - it's about the customers and whether salesperson incentives and training will cause current and future customers to purchase more.

On the other hand, Objective Management Group (OMG) has a proven process for conducting a thorough sales force evaluation that focuses on the people, strategies, systems and processes of the sales force.  We can accurately predict how much additional revenue your group can bring in after correcting gaps and flaws.  We can identify which salespeople will perform more effectively.  We conduct a pipeline analysis, messaging analysis, and measure 21 Sales Core Competencies.  One of our analyses suggests the best role for each salesperson (when you have multiple roles). We can definitely answer nearly any question you have about your sales force and back it up with science! Check out a real sales force evaluation!

I thought I knew sales.  I've been studying what makes salespeople tick for 32 years and continue to learn and share more each day.  OMG has evaluated more than 1.1 million salespeople and with around 250 findings, we have 275,000,000 data points!

I thought I was pretty smart but I was wrong.  The authors of this article are way smarter than me.

Topics: Dave Kurlan, sales force evaluation, sales effectiveness

Top 10 Reasons Why Sales Don't Grow

Posted by Dave Kurlan on Wed, Aug 24, 2016 @ 06:08 AM

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Have any of these things ever happened to you?  

  • Physical issues - low energy, prolonged pain or discomfort
  • Automobile issues - vibration under the seat or in the steering wheel, car accident
  • Home issues - leaks, faulty electrical, down trees or power lines from storm damage
  • Legal or Tax issues

If they did happen to you, what did you do? Did you call the doctor, car dealer, electrician, plumber, insurance company, lawyer or accountant?  Or did you hope it would all go away by itself?

Of course you made the call because things don't fix themselves.

Yet, despite knowing that things don't fix themselves, thousands of executives believe that sales problems will resolve themselves, change, and improve.  Why?

That's the key question.  Because when you don't know exactly what's wrong, it's much easier to remain in denial.

Most companies all deal with the exact same issues with their sales organizations. Flat or lethargic sales growth, the bulk of the revenue coming from a small percentage of the salespeople, not enough new business, difficulty selling against low priced competition, longer sales cycles, lower win rates, and on and on and on.  It's universal frustration and companies seem to fall squarely into one of four categories on this:

  1. They identify the cause and fix it.  "Hooray.  Sales and profits are on the rise!"
  2. They don't identify the cause but try to fix it through guesswork.  "Well, that didn't work.  We wasted another year!"
  3. They identify the cause but don't fix it. "We can do this ourselves."  Sure you can.
  4. They don't identify the cause and don't fix. "Hey, everyone has these issues!"

While most companies have similar issues, the causes are usually different.  There can be any number of problems that contribute to the observable issues, but these are the 10 I see most often:

  1. Recruiting - ineffective process and/or inconsistent sales selection
  2. On Boarding - is neglected, shortcuts are taken, or it's done poorly
  3. Coaching - sales managers don't coach enough and don't do it effectively
  4. Accountability - there isn't any so it's very easy for salespeople to fall behind
  5. Messaging - you wouldn't believe how bad - how inconsistent - the messaging is at most companies
  6. Sales Process - there usually isn't one and when there is it's either awful or nobody follows it
  7. Training - it's usually either do it yourself bad or it's not provided at all
  8. Gaps - skill gaps that prevent salespeople from being able to take a consultative approach or sell value
  9. Sales DNA Gaps - the strengths required to support tactics, strategies, process and methodology are missing
  10. Pipeline - usually a mess - filled with unqualified opportunities that will never close

Yet it's not enough to simply acknowledge these problems. Even if you are aware that some or all of these problems exist, whether or not they can be fixed is another story altogether!  That's because it is all about capabilities.  What are they capable of today, can they become more capable, how much more capable, and what will it take?  

To answer those questions we need to know if the people trainable and coachable.  Can sales leadership learn to coach effectively and hold salespeople accountable for the required changes?  Can the sales culture be improved to become a coaching culture?  Is leadership strong enough to replace under performers who can't be coached up?  Which skills and competencies must be developed?  How do you deal with the weaknesses in Sales DNA?  If recruiting and selection are to blame, how can it be improved?  How do you incorporate best practices into a inadequate sales process and/or methodology?  Do we need a playbook?  Is it our scripts?

The problem with improving sales performance is that the more you know, the more questions there will be.  And that is why it is so insane when so many executives ignore the problem, pretend they know what to do about it, and don't call for help call until the revenue issue reaches such a state that there isn't enough time or money to fix it.

It is so easy to blame the sales force but don't. They didn't recruit themselves, they didn't train themselves, they didn't set unreasonable expectations, and they didn't make themselves suck.  The blame gets placed higher up - where a false sense of hope and optimism live.

Ask me about a sales force evaluation - knowledge is power!

Topics: Dave Kurlan, sales process, sales force evaluation, sales performance, sales excellence

Why Uncovering Pain Doesn't Close the Sale with a CEO and the 3 Conditions You Do Need

Posted by Dave Kurlan on Mon, Apr 04, 2016 @ 15:04 PM

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Other than birthdays, anniversaries, holidays and sporting events, how many occasions are there when you have repeated an event, in one form or another, for at least 22 years. Not many, right?  This past weekend, I hosted 130 sales experts from around the world as part of Objective Management Group's 22nd Annual OMG Conference.  I'm proud that we kept these sales experts engaged to the point where there were just as many people in the room for the end of the final presentation as there were for the beginning of the first presentation. I want to share 5 out of more than 100 important insights that they took away which apply equally to you too.

Playing Your Part

There were some great take-aways from our keynote speaker, Brandon Steiner, CEO of Steiner Sports.  He offered dozens of insights and suggestions and shared some great stories, but the two that really stuck with me were:

  1. "Are you a participant or a spectator?"  In my opinion, there are just so many salespeople that would fall into the spectator category - reacting, responding and facilitating - instead of the participant category where they are proactively building their pipeline, gaining traction, achieving velocity and closing business.
  2. "The underdog has nothing to lose - it's like playing with house money!"  It's just like this quote from Band of Brothers which I included in this article, "You're Afraid to Sell Because You Have Hope."   Actual video clip...

Selling to the CEO

One participant asked why it was so difficult to get a CEO to pull the trigger despite having uncovered some pain points. I explained that pain points alone may help to eventually create some urgency, but they represent only one of the three conditions necessary to create enough urgency to cause action.

You may be able to use the pain you uncovered to create the second condition - quantifying the opportunity.  Properly quantifying an opportunity requires using math in a way that helps you build your case, and you can see it demonstrated here.  Quantifying may help you develop a compelling reason for the CEO to move forward, but as I mentioned, it's a CEO, and a CEO may need three conditions to be in place.  The third condition is a connection to their end game - their overall long-term strategy. When CEO's can't see how your solution helps to achieve their long-term strategy and goals, they may not buy despite the pain you uncovered!  

As I explained to the group, it's a lot like a Nor'easter.  For a blockbuster snowstorm like a Nor'easter to materialize, there are three conditions that must exist.  The first is that there must be cold air from Canada in place.  No cold air?  No snow.  The second condition is that the storm must pick up a significant area of moisture from the Gulf of Mexico or the waters off of the southern coast of the US.  Without the moisture, there can be no big storm regardless of how much cold air there might be.  But there is a third condition that must occur, and that is a favorable track of the storm.  If the storm tracks too far inland, the storm will be in the form of rain.  If it tracks too far to the south and/or east of New England,  only Cape Cod and the islands will see snow.  The storm must track just to the south and/or east of Cape Cod and then most of New England gets a major snow storm.  When salespeople uncover only pain, that's the equivalent of the moisture - but we don't have the cold air in place and the track of the storm sends it out to sea.

21 Sales Core Competencies

We shared the latest enhancements and new features of our Sales Force Evaluation and the attendees were very excited about the expansion of 5 of the Sales Core Competencies for which we already had findings.  Effective today, we have expanded the competency sets for:

  1. Milestone-Centric Sales Process
  2. Relationship Building
  3. CRM Savvy
  4. Social Selling
  5. Pipeline Management (sales management)

We previously included findings/scores for these competencies, but now we show approximately 8 attributes for each of these 5 competencies - a lot more details and explanation. They round out the 21 Sales Core Competencies that we measure and report on.  The 21 Sales Core Competencies can be seen here.   

Motivation

Last year, we announced that we had expanded our measurement of sales motivation.  We had already begun looking at both intrinsic and extrinsic motivation when we began measuring 7 additional ways that salespeople are motivated.  This year, we announced that in addition to intrinsic and extrinsic motivation, we will begin measuring altruistic motivation.  This is important because sales managers are finding it more difficult to help salespeople who are not motivated by money. When sales managers understand how salespeople are motivated, they can use other strategies and tactics to help maintain motivational consistency.

Zero's are Like Carbs

One of the big take-aways for the group was my comment that zero's are like carbs - they're bad for you.  All of the zeros that appear, when the value of a huge sales opportunity is entered into the CRM application, cause salespeople to become inappropriately excited.  They facilitate instead of pushing back.  They respond instead of being proactive.  They get happy ears instead of continuing to question things.  Just cross out the zeros and treat it like any other opportunity!

There were literally dozens of other insights and take-aways that I don't have time to share today, but if you like these, let me know and I'll share some more in my next post.  I'll know you liked it if you click the LinkedIn share button at the top of the article.

Topics: Dave Kurlan, sales force evaluation, objective management group, creating urgency, selling to the CEO, uncovering pain

Sales Coaching and the Challenges of Different Types of Salespeople

Posted by Dave Kurlan on Mon, Feb 08, 2016 @ 06:02 AM

4_salespeople.jpeg

When (other) articles and blogs contain sales statistics, they are often made up.  For example, Andy Rudin wrote this article about made up sales statistics and I recently read this article by Stewart Rogers about made up statistics.  Infographics and videos are two more sources of statistics that are often based more on fiction than fact, yet they still have value, even if the numbers aren't correct.  Here's a new infographic which has useful information, even if the purpose is to promote Fatstax.  Recently a reader directed me to a video on the Harvard Business Review site.  They rarely have accurate, relevant sales-specific information there, so I clicked over with great anticipation.I watched the video on 8 types of salespeople and while I don't agree with there being 8 types, their statistics were fairly consistent with the science and data from Objective Management Group (OMG) which states that there is an elite 6%, 20% that are strong, and everyone else - the bottom 74% - who basically suck.

If you are a fan of the Challenger Sale, the Challenger is one of 5 types of salespeople according to its authors.  In OMG language, the Challenger is one of the elite 6%, with a Sales Quotient of 140 (SQ ranges to 173) or higher and Sales DNA of 83 (ranges up to 100) or higher.  Practically speaking, it means that 94% of salespeople don't have the Sales DNA or Sales Capabilities to sell like a Challenger.

Chuck Mache, says that there are 4 types of salespeople.  While Chuck recommends the Professional for B2B sales, his types are based on personality traits, so there is only a one way correlation.  Someone who has the traits of the Professional is not necessarily a great salesperson, but some great salespeople have the traits of the Professional.  To make that a little easier to understand, a winter storm does not always consist of snow (it could be ice, a wintry mix, or even rain), but snow always comes from a winter storm.

OMG measures 21 Sales Core Competencies, including a salesperson's Will to Sell (4 competencies), Sales DNA (6 Competencies), Sales Capabilities ( 8 competencies) and Systems and Processes (3 Competencies).  When viewed through these lenses, personality traits don't play a part in determining sales success.  If we look at the competencies consisting of only the 8 Sales Capabilities, there are 109,600 possible combinations.  And after factoring in the Will to Sell and Sales DNA, the possible combinations exceed one million.  What I'm saying is that there are more than 4 or 5 or 8 or 12 types of salespeople.  

However, when someone insists that there are certain types of salespeople, I can offer you this.  I have found that when it comes to coaching salespeople, we can place them into one of 11 categories.  Keep in mind that while I can categorize them for coaching purposes, this does not define them as salespeople, and does not correlate to how they approach selling - only how sales managers should approach coaching them.  Here they are:

Talking Tammy - Tammy needs to talk for the first 20 minutes before we can provide 10 minutes of powerful coaching.

Fast Frank - Frank wants only a single question answered in each session and wants to get off the phone ASAP.

Take Away Tom - Tom needs just one take away to feel there was value.

Hit Me Hank - Hank needs to be whacked over the head at some point during each coaching session.

Do it Don - Don must be told what to do and then he’ll do it.

Validation Vicky - Vicky tells us what she wants to do and then needs us to validate that it’s the right approach.

Successful Sandra - Sandra wants us to tweak what already works in order to achieve marginal improvement.

Know-it-All Norm - Norm does not want to be told anything at all.  He needs to figure it out himself.

Timid Tim - Tim needs to have his self-worth validated.

Show Me Shelly - Shelly needs to have her current skill-gap demonstrated.

Broadway Betty - Betty needs to role-play.

I wrote a rebuttal to my 11 types of salespeople that sales coaches encounter.  There is no science to this.  No data.  No statistics.  Like the authors I have criticized over the years, I simply reviewed the files of thousands of salespeople I have coached in the past 30 years, and grouped them into categories based on the types of sales coaching they required.  It is purely anecdotal.  And although it makes sense and can be quite useful, it is entirely lacking in science.  These 11 types are completely unlike what Objective Management Group provides to us.  OMG provides us with the data from the evaluations and assessments of more than 1 million salespeople - a very significant sample size.  And OMG measures so many sales-specific findings that together, they always tell a story about a sales candidate, a salesperson, a sales team, and an entire company.  The story itself isn't science, but the science helps us to tell a story.

While types are entertaining and generally somewhat useful to be aware of, there is no substitute - ever - for real science.

If you want to use science that makes sales selection accurate and predictive, check out OMG's Sales Candidate Assessments.

If you want to use science to identify the changes that will significantly grow sales revenue from your existing sales force, check out OMG's Sales Force Evaluation.

Finally, check out cartoonist Stu Heineke's new book, How to Get a Meeting with Anyone.  A number of sales experts, including me, were quoted and there are some great tips, stories and of course, cartoons!

Topics: sales competencies, sales assessment, Dave Kurlan, sales force evaluation, the challenger sale, sales types

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