“Sales Strategy”, “Sales Force Design”, “Customer Engagement” are some
of the concepts that affects hundreds of decisions and end results in the sales
organization. This is relatively easy to apply from Top to Bottom, from concept
to action. Once the concept is clear, the process can be set, and the decisions
can be planned to execute; But what if the problem is only clear in the bottom?
What if our concerns are raised in a specific unit of a specific sector of our
sales organization? And this usually is the case.
Common questions are frequently raised by business leaders who need the
link between that tangible scenario and the conceptual solution:
Q1: Is it a good idea to hire only people with sales experience?
The answer is No. Experience brings you capabilities and competencies
that you surely want to look for, such as negotiation, closing, and
product/industry knowledge, but if you want to build a long-term goal then you
might want to look for crucial characteristics as well.Motivation, Drive for
achievement, good listening, analytical mind, adaptivity, persistence are some
of the crucial characteristics that you really need to look for in a sales
position candidate to cater for the job success and the sales organization
healthy development.
Train Competencies, Hire Characteristics.
Q2. Which selection is more efficient: an excellent sales manager with
an average salesperson, or an average manager with an excellent salesperson?
The direct answer would be: excellent salespeople if you are looking for
short-term goal achievements; and excellent sales manager if you are looking
for long-term goal achievements.A way to reason it is that an average manager
tends to surround her/himself with average salespeople, so the new hires would
be average, and excellent salespeople would eventually find themselves out.
However, a class A manager will look for class A salespeople, and highly
develop the average existing team.The best solution would be excellent manager
with excellent people which is very hard to attain, so the second best thing
would definitely be an excellent manager for the long-term sales organization
optimization.
Q3. Is it effective to promote your best salesperson to be a sales
manager?
It’s your sales people that most understand your culture, and are
passionate about your company. They focus throughout their sales career for
these promotions along their achievements. It’s ideal to look within these
people who can produce outstanding results, but it’s important to be careful as
it might have some critical consequences:
Independence: Best salespeople are used in working independently
overcoming all barriers that might block their sales deals. This mindset makes
them believe that all salespeople should independently do such job. This would
make their managerial job difficult especially in coaching.Self-centered:
Salespeople love to remember and talk about their achievements. This would tend
sales managers to fall into the trap of telling their people their achievements
and how they solved similar issues, rather than developing their salespeople to
self-generate solutions to their problems.Marginalizing Salespeople: Being the
#1 rainmaker within the sales organization prior to their promotion makes it
much difficult for the management to eliminate their selling duties from their
new Sales Manager role. They will also have the tendency to run into doing the
sales by themselves especially in tough times losing focus on developing their
staff for the long-run.
Promote someone that can do well the next job and not the last job!
Q4. Should we rank our salespeople by performance? But is it best to
share it with the entire sales team?
To answer the first question: It is definitely yes; in order to have a
visibility of your team levels, development, and progress then set the plans
accordingly.However, the second question is a “sword with two edges”. 55% of
managers believe that it is healthy to publicly present the entire team ranking
order to increase the competitive drive, and set individual motive to progress
in the ranking. However, some of the down sides of this action would be:
Discouragement: some average players with good potential of growth, will
be discouraged to some extent and lead to less productivity or even resignation.Less
cooperation: between the sales team when someone needs help with a
certain account or with covering an unexpected meeting. Because a member might
be less encouraging to help or give their best if it will affect their
rankings.The ultimate solution would be to post top performers only.
Nevertheless, it is important to inform certain ranking information to the rest
of the team only in private individual sessions with the manager to give the
motive and setting smart goals.
Q5. If I have a 60/40 plan, what is the amount truly at risk? is it only
60%?
If a sales organization works on a 60% salary and 40% incentive pay,
most organization think the 60% is only at risk, however the answer is
unfortunately higher than that.There is a hidden salary that most companies
miss to calculate which is the carryover. Some salespeople take over older or
running accounts, or covered territories and benefit from their incentives with
minimal efforts. you might as well call it salary.
So, the amount at risk is actually 60% + hidden pay (incentive earned)
which might reach to 83%.
About the Author: Mazen Farah is the Founder of HEED, a
sales management consulting firm focused on aiding companies to structure,
transform or optimize their sales by integrating science into selling.
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