Thursday, October 25, 2012

Joe and His Team Got It!




Within several months of our work together, Joe started developing a positive perspective and a reflective understanding of what it takes to grasp the real difference in attaining high performance from his sales people.  He came to realize that when sales people get involved in determining the specific activities and initiatives to ensure a prosperous future for everyone involved, they tend to have higher motivation and better outcomes.
One of the members of Joe’s sales team revealed to me that over the six of transition to a new sales concept have been truly rewarding. Of course, I asked her:”Why?” She told me that getting involved in mapping out a game plan, being part of the whole process, the financial rewards, and the psychic fulfillment that came with doing a good job has inspired not only her but everyone on the sales team. She also related that it had a positive impact on the people in the departments of design and construction.
It all became possible because, they saw the consistent growth and a security from the company that respected their views and took their opinions into account. . At the same time those that chose not to buy in had soon left the company on their own accord.
When you have a lot of happy campers in an organization, the trickle down could be most inspiring, rewarding, and of course profitable. 

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Thursday, October 18, 2012

Joe’s Dilemma: Quotas vs. Goals

Today I want to continue with Joe’s saga of his growth as a sales manager.
When I first started working with Joe, I told him that I was not a quota guy. As I shared with him, quotas produce OK results from the sales people, but lack the important buy-in that you need from your sales people as well as the entire sales team.
Many times the financial projections that are given to sales team lack the following:
·         A clear understanding of the company’s goals blended into the individual goals and objectives of each sales person
·         Each sales person needs to be a part of a decision making process in respect to their own individual projections tied into the company’s financial plans.
On the other hand, if sales people are provided with clear objectives as well as are assured that they are a part of the process and are responsible to make decisions, the job will be done with a better outcomes and higher motivation.
Sales people need a clear vision on how their individual productivity ties in to the company’s plan and clearly see their role. Goals motivate and work; quotas many times create anxiety and “just do it” mentality. It is just not a formula that ensures steady and consistent company growth.
Joe and I worked diligently with our sales people in creating an interesting, fun, and realistic game plan, which eventually created a win-win situation for everyone.

Thursday, October 4, 2012

Becoming an effective sales manager: Joe's success story (continued)

Today I am continuing the success story of sales manager Joe and some of the challenges that he was faced with.
Joe was an extremely likable person. He had an ability to engage people in what he was doing, making everyone root for his success. The five sales people that he inherited and made up his team liked Joe. But at the same time they were able to take advantage of him. Here is how the story unfolded.
Having a good base salary, we quickly discovered that they were not overly motivated to put an effort into gaining  greater sales performance. When Joe and I began to read over the past weekly sales reports, it was rather evident that 85% of their time they were calling on existing clients, instead of reaching out to new prospective clients. We referred to that method as farming versus hunting.
When I saw the situation at hand, I realized that Joe, as a team leader, needed a helping hand in developing a game plan to generate new business as well as holding sales people accountable for their activity and behavior.  
We started small. First of all we had to identify areas and, more importantly, particular companies that had a potential to become new clients for Joe’s business.
When I first came to the company, each of sales people was making 1-2 new prospect calls a week. When Joe and I put together a new game plan and started to implement it, sales people were responsible for contacting 5-6 new prospects a week. Within the first month the sales team was able to extend their new prospect contacts to over a hundred people. Within 60-90 days new business was coming through the door and almost doubled.  
However, this new strategy of acquiring new clients was not the only pulse point that moved the company forward. Joe and I had also developed a new compensation plan for his sales team. We were both well aware of the fact that change in employees’ compensation can create problems within the sales team. However, we managed to do it in such a fashion that created a win-win situation for everyone involved.
Within a short period of time we had developed a sales team that was holding themselves accountable. They began benefiting from the result-oriented system, creating a productive and positive environment.