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Three Signs Your Sales Management is Failing

Picture the perfect sales manager. Happy customers, happy staff, all the sales reps are at target, zero turnover, all their hiring decisions are great and sales are growing. I know a few sales managers that live in this kind of a picture, but this is the exception rather than the rule in most companies.

If you have some of this and some of that and are wondering you or your sales manager is getting it done, the most obvious measure is the sales numbers. Beyond that what are the signs that perhaps something is wrong in sales leadership-ville? Here are three quick and dirty measures of sales management performance.

Employee Morale is Dropping
Morale and mood are directly linked to sales performance. Let morale drop and sales numbers will surely drop. As Sun Tzu wrote in the Art of War, the leader must ensure that his army feels that the battle can be won, otherwise they won’t fight to their potential. The same goes for sales reps. They have to feel like the company is strong and they can achieve their numbers, otherwise they will be emotionally resigned which will be disastrous for your numbers. It is your job to hire great sales people that are self motivated and emotionally strong, but it is also your job to keep the energy and enthusiasm high.

Turnover is High
It’s always surprises me how companies can be so blasé about high turnover. High turnover usually means a lot of your staff are new and learning the ropes. It means customers aren’t developing relationships with your staff because they change often. It means your other staff are constantly learning how to work with new people. It means you are constantly spending time and money rehiring and retraining. It also usually means you are under-performing relative to other companies that have low turnover. A little turnover is good because it brings in new ideas and energy and keeps everyone else on their toes, but more than 10% turnover is not great and more than 30% has a horrible impact on the bottom line for most companies.

Check in with your employees. Are they given the tools they need to succeed? Are they treated fairly? Is the competition you’re fostering in your sales force too stiff? Take the time to get to know how employees are feeling, and you’ll prevent pitfalls before they happen.

You’re Losing Customers
It is often said that people buy from people and that customers will purchase inferior products from a sales rep that they like. Once a customer finds a supplier that delivers what they need, they don’t like to change, but if your reps are ill informed, insensitive to the customer’s business, out of touch or not on top of the customers schedule, customers will switch. Significant turnover can happen for many reasons outside the scope of the sales function, but a big part of it is the reps that service them and the quality of this service is directly attributable to the quality of the reps you employ.

Do a quick tally of these areas. Are you where you need to be?

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Eliot Burdett

CEO at Peak Sales Recruiting
Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.

Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.

He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.

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What to Look for in a Great Enterprise Salesperson

We answered this question on LinkedIn:
-What are the key strengths/skills to look for in a great enterprise salesperson; someone who can swing $100,000+ deals?

Peak Response: Great question. Every company will have a slightly different set of requirements based on the unique selling environment, company culture, and whether this is an Account Manager (farmer) or Account Exec (hunter) role, but generally for an enterprise rep doing large deals ($10k deals are C-suite these days), we would normally see the following criteria, broken into three groups:

1. Skills – Selling to C-suite, solution sales, ability to sell to multiple stakeholders, selling against P/L, negotiating, presenting, closing

2. Experience – Complex sales, solution sales and lots of C-suite sales experience (generally a lot of experience proving the skills mentioned in point #1). Domain experience is nice to have but usually not critical.

3. DNA – Ambitious, resilient, persistent, competitive (for a hunter role). Relationship oriented, organized, confident (for a farmer role). Goal oriented, optimistic, smart, value added mindset and curious (for both).

We didn’t include other skills such as prospecting, cold calling, listening as these are either a given for sales roles, or are not desirable (ie. most companies would not want their high end enterprise reps prospecting).

You can see the other responses here.
What to look for in a great enterprise sales person…

Photo by Bjorn Simon.

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Eliot Burdett

CEO at Peak Sales Recruiting
Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.

He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.

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4 Ways to Make Your Sales Interview Process More Reliable

A thousand ain’ts. This is how a colleague described a recent interview with a sales team hopeful. Sloppy grammar and poor speaking ruined an interview for what appeared a highly educated person. Sometimes a candidate looks good on paper, but the product doesn’t match the brochure. Other times nerves prevent an accomplished and qualified candidate from making a good impression.

Should some bad grammar, tons of ums or sloppy speaking ruin their chances at a sales position with you? While you want them to be able to perform under pressure, even elite athletes have bad games and you don’t want to cast away someone who may in fact be a great fit for your team.

Rather than relying on instincts to dictate which candidates should join your team, use facts and proof to support your decisions. A multi-step interview process will help you determine whether someone is a poor performer or simply had a bad performance. Here are some mechanisms to add to your interview process which will help you evaluate out your candidates and ensure you are always picking the right people for your positions..

1. Run a Call Test. If your interviewee fumbles or appears nervous during an interview, being on the phone might make all the difference. Getting in the zone is important for some sales people. Whether your potential rep is reading from a script or using their own sales skills, if they can’t make it in a live setting, they can’t be an integral part of your sales team.

2. Check References. Super-excited about that interview with a rock star sales rep? If a sales candidate stumbles in an interview, make sure you speak with former managers to see what it was like to employ the person. You can test further or do a second interview if the references check out.

3. Have Another Sales Manager Conduct the Interview. Think it’s just you? If you are known to be a bit intimidating, chances are a new sales rep could be terrified of you – particularly if you’re the final say for new hires. Try bringing in a colleague or another sales manager, and see if the atmosphere changes. A second perspective is always valuable, especially if they are evaluating against the same criteria. Many companies also have an HR interview to test culture fit and this can also provide valuable input about the candidate’s interview skills.

4. Role Play. If a call test isn’t possible, it’s completely fair to ask a potential candidate to pitch your product as part of the one-on-one interview. The candidate may either fall completely apart or pull it together – and either way, you’ll have more data for your decision.

Whether you’re confused about how great an applicant looks on paper versus how they’re interviewing , or you simply want to be sure about picking the right person, add steps and structure to your interviewing process – it will pay dividends to the performance of your sales team.

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Eliot Burdett

CEO at Peak Sales Recruiting
Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.

Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.

He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.

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The Most Common Sales Hiring Mistakes

The three most common sales hiring mistakes which result in sub-optimal sales hires, missed targets, and staff turnover.
1. Poor understanding of selling environment
2. Unstructured hiring process
3. Not looking in the right places

To read a transcript of this video click here…

Full transcript of the interview.

Avoiding the Three Most Common Sales Hiring Mistakes – Peak Sales Recruiting

Eliot Burdett: Hi, I’m Eliot Burdett, a partner at Peak Sales Recruiting.

I want to talk to you about the three mistakes that companies typically make in their sales hiring.

The first is, not understanding their own selling environment.

When we’re talking about a selling environment, we mean the different characteristics that make your sales environment, or the environment that your sales reps work in, different from that of any other company.

So we talk about things like your selling process, any sales methodology, the price of your product, the sales cycle and the customer’s buying cycle, the different way you promote your product, the maturity of your market, the maturity of your customer, the market share, your positioning in the market and the amount of support that your team has.

All of these factors, combined with the culture of your company, make your selling environment different from another company and therefore make the type of person that you’re looking for, often, very different in terms of the attributes that they have to have to be successful in your company.

So, that’s the first thing: knowing your own selling environment.

The second thing is having a structured hiring process that allows you to compare apples to apples.

So, unfortunately, a lot of hiring managers hire on gut, and I think there’s a lot of halo effect that, you know, a smile and a sunny disposition, translates into a successful salesperson.

Unfortunately, that’s just not the case.

The more you can; when you’re interviewing salespeople and, what I’ve said before is, it often feels like you’re peeling an onion with a thousand layers, because salespeople are conditioned to tell you the types of things that you want to hear. They’re conditioned to do that in their selling, and they’re going to do it in the interviews.

What you want to know is what they’re really all about; what kind of selling environment they’re uniquely suited to succeed in.

And so our selling process is all about; sorry, our interview process, which involves everything from different types of screening, to behavioral interviewing, to different kinds of background checks and very thorough, structured background checks.

All of that, combined with score sheets and criteria sheets, allows us to make sure that we are comparing apples to apples and comparing different candidates objectively rather than looking at each and hiring based on gut feel or how we feel on a certain day, and being attracted to the wrong things.

So that second thing is really important: having structure in your hiring process.

And then the third way that many companies make mistakes in sales hiring is hiring who’s available rather than the right person.

So, it’s very typical for companies to go out to the job boards and post an ad and then interview the people that come back.

But unfortunately, a lot of the time, the people that come back from job board postings are the people that are looking for jobs. And, unfortunately, they’re often the wrong people.

They’re the people that are either out of work or hoping to get a job. And what you want, when you’re hiring, it’s really critical that you get the right person. In this kind of economy, you’re looking for the person who not only has the right attributes but is also a reliable performer and can show you; give you the proof that they are able to succeed in your selling environment.

And, usually, reliable performers are working somewhere. Which means you’re gonna have to; they’re not gonna see your ad because they’re going to be busy selling and making money.

What you’re going to need to do is go out and find them and get them exposed to your opportunity and make sure that they are aware of it and potentially excited about it so that if your company is a better opportunity for them; better career opportunity for them to work for your company, they’re aware of it and they can make the move.

So, those are the three ways: having a clear understanding of what you’re looking for; your own selling environment; what you’re looking for.

The second thing is having structure in your sales hiring process.

And the third thing is to hire the right person, not who’s available.

I hope those tips are useful to you. Good luck with your sales hiring. I hope we get a chance to work together. Thank you.

(text on screen): For more sales management and hiring tips, visit our blog at: www.peaksalesrecruiting.com/blog.

Evaluating Potential Sales Hires

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Eliot Burdett

CEO at Peak Sales Recruiting
Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.

Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.

He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.

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What Four Simple Tactics Reduce New Rep Failure?

Want to cut the failure rate of your sales reps? Set yourself apart from the average team where 25-50% of reps fail and exit during the first year? Include these steps in your on-boarding process and, assuming you picked right in the first place, almost every rep you ever hire will stay with you to become consistent and reliable producers.

1. Set them up to Succeed – bringing a new rep in and expecting them to succeed on their own is a recipe for disaster. You need to build a relationship with them to create the loyalty and commitment.Develop and support them by providing the right training and access to mentors. This will build confidence in the rep that you are as serious about them as they are about you.

2. The Right Training – telling a new rep to “read the company website and then let’s talk” is fine, but to accelerate the learning process have a structured training program with checklists of things that the rep needs to learn over the course of their first few weeks with the company. Document all the relevant scripts and knowledge someone must have in order to sell for you. Link them up with a good role model on the existing team who will take them on calls and give them rich insight into how you position the company and develop business.

3. Set Goals Early – New reps are often hired without a quota and the old adage holds true – you can get anywhere if you don’t know where you are going. Assign the quota immediately and don’t stop there. Make sure they have short term learning and sales activity goals and hold them accountable.

4. Be Ready Day One – Many new reps show up to a desk with no computer and no access to the relevant sales support systems so they spend hours twiddling their thumbs and nothing could make a first impression worse. Have cards printed, computer set up with network access and a schedule prepared for their first few weeks so they can get into the right mindset immediately.

Fail to perform these steps when you hire new people and you may be throwing your babies out with the bathwater when you cut failing reps from your team.

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Eliot Burdett

CEO at Peak Sales Recruiting
Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.

Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.

He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.

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7 Signs Your Sales Candidate is Going to Rock on Your Team!

A surprisingly high number of sales people aren’t well prepared when they attend job interviews, perhaps because they don’t do it that often, but when you see one who makes a great presentation, it should give you some insight into how they will prepare for customer meetings. While this is not always the case – there is an old saying that the best sales job occurs when a sales person is interviewing for a job – there are several indicators that tell you how seriously a sales candidate takes their performance and career.

To continue reading this post, click here >>

1. They Have Done Their Homework – First, if the person has researched your company, articles and exec backgrounds so they speak knowledgeably and make relevant references, you can ensure they not only really want the job, but may use the same techniques to get sales through the door once they’re employed with you.

2. Thorough – If he or she is able to demonstrate their qualifications against your job description line by line, this shows you how thorough the candidate is. You can be assured they’ll leave no stone unturned when pursuing a client.

3. Adding Value – In the interview, if your candidate makes suggestions about how you can succeed in relevant territories and target markets, and any changes you can make to improve things, you can see that this candidate knows how to put his or her work experience to use for a company. The candidate will likely be consistent in pitching new ideas and improving the workforce morale from the rep side.

4. Clarity of Purpose  – If he or she is clear about their own wants and career plan and expectations of an employer they would choose to serve, then you know you’re working with a candidate who will be forthcoming about problems and will work with you to create a positive environment for the team.

5. Qualifying the Opportunity –  Is your candidate organized?  Do they present themselves and their relevant sales accomplishments clearly and compellingly, and ask qualifying questions to see if this is the kind of place they want to work? It’s a good sign that this isn’t someone who is looking for just any job – they are a long-term worker looking for a long term situation.
6. Positive Energy – Does the candidate show energy, intelligence, and enthusiasm? If so, you can bet he or she will bring that energy into sales calls.

7. Follow-Up and Follow Through – Do they follow up with emails to thank you for your time? Are they proactive with relevant references? If so, you can expect the same behavior with potential sales.

It’s often difficult to find sales reps who can become long-term members of your team. By gauging attitude, professionalism, and other factors during the interview process, you can make sure that a good interview turns into a great working relationship for both you and your potential employee. A sales team is only as good as its weakest link, so weeding out potential weak links before even hiring them is the best possible way to keep your team performing at top levels.

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Eliot Burdett

CEO at Peak Sales Recruiting
Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.

He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.

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Signs You May be Creating a Toxic Sales Environment

ToxicConsistently delivering sales targets is the primary mission of any Sales Manager and if you are like the best, you work hard to build a high performance culture, while keeping morale high.

There are times however, when, the drive to succeed unwittingly backfires and create an unproductive environment for sales. If you see your sales reps showing signs of frustration, or falling morale, some of these management tactics may be to blame.

To continue reading this post, click here >>

Fostering Unhealthy Competition

In many cases, competition is good. Allowing sales regions to overlap may seem like a great way to get sales reps engaged in some healthy competition, but, it can also make your company look disorganized.

If your sales reps are calling and pitching to the same businesses, bitterly fighting with one another to close the same leads, you’re going to see your employees’ morale drop within the time frame of a week or less. I have experienced this first hand with multiple reps calling from one company and I can tell you – It is annoying.

It seems like common sense, but it is worth stating the obvious. Assign reps to exclusive territories and then encourage them to compete based on results and quality of business rather than allowing them to fight over the same accounts.

Setting Impossible Goals

Your job as a sales manager is to make impossible goals seem possible and motivate the team to achieve the goals, however, making drastic changes like upping call quota by a large amount overnight or forcing sales reps to work too far outside their comfort zone, could cause resentment which compromises your mission.

Make sure that any changes you think might work, will actually work. People usually don’t take well to major changes. Talk to your reps. Take into account your manpower, your sales reps’ current workload, and overall morale. Implement any big changes slowly, if possible.

Giving Your Top Reps all the Good Leads

This may make sense in principal – your top reps continually prove themselves to be reliable, and their commission checks show it. Unfortunately, you could be preventing some of your middle-level reps from jumping up to the next level. You may also be putting yourself in a situation where you are overly dependent on a small number of high performing reps that may or may not always be with you.

Take time to work on the strengths and weaknesses of your individual reps. Let them pitch in their best areas, and work to help them get to the top. If they’re hungry for it, your assistance will make it happen. Carefully think about who your star players are, and work to cultivate a fully trained, star player team that has a use for even the weakest links.

Attitude is often everything when it comes to playing a management role in any business. As a sales manager, you want to make sure your employees don’t hate coming to work – or working for you – by creative an awesome working environment, where you give them every opportunity to succeed and they are motivated to do so.

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Eliot Burdett

CEO at Peak Sales Recruiting
Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.

Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.

He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.

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Efficiency vs. Effectiveness – Forget the Difference and Fail

drillNo one would argue that work for work’s sake is a cancer that must be avoided at all cases, but in practice are we conscious of the different between  being busy, and getting the right things done?

Many sales managers get tangled up in “busy work”, particularly if they’re receiving pressure from above to get make their reps do more. “Looking busy” and “doing busy work” are not the goals of any productive sales team. We can spend countless hours preparing for calls, researching customers, and holding meanings, but this means nothing if our numbers aren’t coming in and our sales aren’t closed to meet the required target.

To continue reading this post, click here >>

Being efficient means doing the least amount of work to get something done. Being effective means working on the right thing and getting it done in the right timeframe. Your reps must be both.  A commission comp plan seems like it would be enough to ensure your reps are motivated to be efficient and effective, but this is not often the case. We live in a world where most people are paid by the hour and have no incentive to get things done on time or done at all, and the influence this has on reps is easy to underestimate. When prospects say they “will get to things when they get to things”, your reps need to consciously maintain momentum rather than passively accept a potential stalled deal.

Clear targets and a simple comp plan will help keep your reps focused on a goal and increase likelihood that they will work towards the right goals, but you may need to help them be efficient, particularly if they are less experienced and haven’t yet developed exceptional work habits.

Your number one tool to help them be more efficient is coaching. If your reps are not using their time efficiently, you should be able to roll up your sleeves and coach them on the right actions. Dissect their day and help them analyse what work is not essential so they have more time to focus on what is. Work with them to develop great work habits. The payoff in results will be huge.

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Eliot Burdett

CEO at Peak Sales Recruiting
Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.

Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.

He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.

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Whyhire.Me Blog Interview

Eliot Burdett, CEO of Peak Sales Recruiting, sits down with Whyhire.me for an inclusive interview on how having a diverse web presence impacts sales recruiting.

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Connect:

Eliot Burdett

CEO at Peak Sales Recruiting
Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.

Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.

He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.

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Sales Management Advice – Managing Under Stress

Managing Under Stress

As a Sales Manager, you’re constantly faced with the challenges of leading a team while answering to your management, keeping fresh ideas circulating through your team, and playing to the strengths of your salesforce. You get pulled in 100 different directions. It is part of the territory so here are some techniques you can employ to help you rise above the noise and drive great sales results.

Be Willing to Change

Some sales managers are so bogged down in day to day priorities that they forget how to make true, extraordinary changes happen in their own leadership and management styles.

Make sure to spend time each day reviewing your leadership style and success. Be open and be willing to make the changes necessary to represent yourself as a true leader to your team. In many cases, you’ll be surprised at how much your team and organization  are willing to change with you.

Look Around

Do you know what your competitors are doing? Are you at the top of your game – not just copying fresh, new ideas you see out there, but inventing them?

The only way you can stay ahead of the curve is to do your research. This is about more than taking a look at blogs and current methodology of selling. Listen to your sales staff, and objectively evaluate what is and isn’t working with your current team. Sometimes even small changes to process and tactics can pay huge dividends.

Manage Dynamic Work Practices

If you’re willing to change, you’re willing to never stop changing. Once you resolve to yourself that you’re going to keep pushing the limits, trying new things, and preparing to excel, you can’t ever stop that process or you’ll lose momentum.

Being a dynamic, motivated leader is a huge part of being the kind of manager that your sales team respects and wants to follow. It isn’t necessarily about bending and breaking the rules – it’s about introducing new rules and strategies that ensure the results of the sale efforts are higher than ever before.

Be Willing to Listen

If your sales reps have great ideas, don’t squash them or take credit for them. Make your sales team an idea box. Your sales reps do work for you, and you can’t let them forget that – but you can allow them to take part in meaningful dialogue that will help you propel your sales team to record-breaking numbers.

If the chaos around you is getting in the way of performance, use the chaos to your advantage. Do this and you will be breaking sales records.

Image by: Nicolai Berntsen

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Connect:

Eliot Burdett

CEO at Peak Sales Recruiting
Before Peak, Eliot spent more than 20 years building and leading companies, where he took the lead in recruiting and managing high performance sales teams. He co-founded Ventrada Systems (mobile applications) and GlobalX (e-commerce software). He was also Vice President of Sales for PointShot Wireless.

Eliot received his B. Comm. from Carleton University and has been honored as a Top 40 Under 40 Award winner.

He co-authored Sales Recruiting 2.0, How to Find Top Performing Sales People, Fast and provides regular insights on sales team management and hiring on the Peak Sales Recruiting Blog.

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