A Sick Sales Force: Here is the
Diagnosis
Give me the five top reasons why many organizations have
weak sales teams! A senior manager recently asked me during a training session.
This is a question every sales manager,
chief executive or business needs to have answers top of his mind. If you are
not aware of the causes for sales failure you are likely to be nurturing them
in your organization.
I gave the following observations which I call the Common
Habits of Non Performing Sales Organization.
1. Lack
of Sales responsibility at the highest levels
If a sales team is struggling the major
cause is usually leadership shortcomings at the highest level of the
organization where the ultimate sales responsibility resides.
A sale is about people- both the sales people
and the customers they sell to. Leadership goal is to get to the hearts and minds
of the sales people. Wherever you find a great sales team you also find great
sales leadership.
Ordinary sales teams usually give only their
hands to the job. These people only work during the designated working hours.
This only accounts to less than 40% of success in sales. The heart and mind
account for the 60%. It is what you may call motivation or fire in the belly or
attitude. Only good leadership can achieve this.
2. Lack
of clear sales strategy
No organization that values sales results
operates without a strategy. It is the strategy that determines everything that
happens in the sales organization. It is the strategy that defines what kind of
sales people to hire, what skills to equip them with, what targets to provide
and what compensation.
Without sales strategy there is no sense of
direction on which opportunities to go out for, how to effectively manage and
convert them, and what sales support is necessary to get the results. While
many firms spend enormous length of time to develop marketing strategies many
of them have either vague or no sales strategies.
Running a sales team without a strategy is
equivalent to being in charge of an army. In the military the generals are the
ones in charge of the strategy not the foot soldiers. Unfortunately for many
sales organizations it is sales people who are left to decide what to do to
achieve results. The consequence is lack of a clear sales strategy. The end
result is an organization that relies on knee-jerk responses crises caused by market
happenings, sales people departures and competitor moves to perform
3. Pressure
for quick results
I have come across firms that hire when in
crises. They train when sales are down. They introduce commissions when sales
are down. And everything they do they expect immediate results.
When you hire in a crises mode you expect
to hire turn around sales people. The bad news is that such sales people don’t
exist. You need to hire when you do not need to and you should train when
things are good. Whenever you hire
because you have to you will put too much pressure on the new hires to perform
and nothing gets people to leave jobs than too much pressure. Sales people
don’t perform because of pressure they do so because they want to, know how to
do it and have the right environment to d so. An environment full of pressure
is toxic to sales performance.
Organizations that have pressure for quick
results will always be in a hiring mode because of high turnover of reps. the
consequence is non-performance because sales stars are created over time. They
are not hired. Longevity makes sales people while there are many who do not persevere
but, a lot of turnover is caused by the environment in an organization
4. AD Hoc Sales Team Development
As I write this article there is some
football match showing on TV . I love borrowing business
(particularly sales) lessons from soccer because business is a game and winning is critical. Can you imagine after spending millions of dollars to buy great talent a team does not invest in continuous training and coaching? The players have to be maintained in the right frame of mind, kept physically fit and keep on perfecting their skills. You should do the same if you expect to have a great sales team.
(particularly sales) lessons from soccer because business is a game and winning is critical. Can you imagine after spending millions of dollars to buy great talent a team does not invest in continuous training and coaching? The players have to be maintained in the right frame of mind, kept physically fit and keep on perfecting their skills. You should do the same if you expect to have a great sales team.
Many firms will have a one or two day sales
training after which they sit back and wait for results. That is not wise for
two reasons. First, it is impossible to cover all the basics of selling even in
a 10 Day course. Second, you become good at what you are doing by having a
coach who helps you transform the knowledge you have gained into behavior. You
may be told in the class how to dribble a ball but you need a coach on and off
the field to guide you on how to do it in a real session. You need continuous feedback before during and
after the match. You need to acquire new skills and methods of doing things.
You need to become better with time.
All this requires consistent training. You
will always have at best average team if you only train them occasionally.
The best way to ran sales training and
coaching is to start by identifying the competencies necessary to implement
your strategy and achieve the objectives. Then from there you can put together
a programme that will develop and perfect these competencies all year through.
5. Reliance on Born Sales People
I sit in many interviewing sessions for sales people and sales managers for
all forms of organizations. One observation I always make in such sessions is
how everyone seeks to get the born sales person. Unfortunately, that
person hardly ever show’s up in the interviews. When the person shows up he is
impossible to hire because he is too expensive or too ambitious for employment.
If you are lucky to hire the person he might be the only one you will have in
the team for many years.
You cannot build your sales force using born
sales people. While they are good to have, they are too few and far between. They are not enough for the whole market and
therefore you cannot build your team around them. What you need is a sales
organization that is nurture ordinary good people to become great sales people.
It is mandatory for you also to
have systematic sales system upon which every person can learn and execute
their sales tasks around. Every business requires a sales system. A system is
your unique way of selling. This system is useful to ordinary sales people as
well as the talented ones.
I also gave a bonus
point although he had asked only for five. This in sales is called over
delivering.
6. Lack of objective, regular and constructive
feedback system
You cannot appraise your sales team yearly. You cannot just tell them how badly they are doing and you cannot always tell them that they are appraised on figures they brought in. The most effective sales appraisals I have seen are done monthly or quarterly, they have very objective measurables. The person is evaluated on and the feedback given in these sessions is intended to bring out the best in the team. One client whom I designed the sales appraisal programme for does it monthly. The sessions are very candid and the people are clear on what they need to focus on. Problems are picked up early and areas of competency development are identified as soon as possible.
The consequence has been high retention, improved performance and improved motivation levels in the team. The sales people usually look forward to the session.
You cannot appraise your sales team yearly. You cannot just tell them how badly they are doing and you cannot always tell them that they are appraised on figures they brought in. The most effective sales appraisals I have seen are done monthly or quarterly, they have very objective measurables. The person is evaluated on and the feedback given in these sessions is intended to bring out the best in the team. One client whom I designed the sales appraisal programme for does it monthly. The sessions are very candid and the people are clear on what they need to focus on. Problems are picked up early and areas of competency development are identified as soon as possible.
The consequence has been high retention, improved performance and improved motivation levels in the team. The sales people usually look forward to the session.
All
top organizations that have stellar sales force don’t have much of these deficiencies.
That is why it is worthy to invest effort, time and resources to address any of
these issues if it exists in your organization. If you do so you are assured of
having a world class sales organization.
Sam Kariuki is a Sales and Business Growth
Expert with Growth Partners. The firm specializes in sales training, sales
recruitment and sales and marketing strategy development and execution. www.growthpartners.co.ke
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