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This is an overview of a webinar sponsored by the EcSell Institute and LucidEra. It focuses on the 6 Pillars of Sales Productivity and the importance of measurement to sales success in this difficult economy.
Citation preview
Today’s webinar:
6 Pillars of Sales ProductivityThe drivers that maximize productivity in
sales management.
Brought to you by:
Today’s Presenter
Bill EckstromBill EckstromFounder, President/CEOFounder, President/CEOEcSELL InstituteEcSELL Institute
Today’s Presenter
Ken RudinKen RudinFounder, VP of MarketFounder, VP of MarketDevelopmentDevelopmentLucidEraLucidEra
Tal
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Tal
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Sale
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Sal
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Met
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Ski
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Prof
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Plan
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Plan
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The 6 PillarsThe 6 PillarsA set of guiding ideologies that command the attention, A set of guiding ideologies that command the attention, development and activity of those in sales management.development and activity of those in sales management.
Source: EcSELL InstituteSource: EcSELL Institute
Tal
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Tal
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Sale
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Ski
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Sale
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Ski
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Dev
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Prof
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Dev
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Plan
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Plan
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Com
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The 6 PillarsThe 6 PillarsA set of guiding ideologies that command the attention, A set of guiding ideologies that command the attention, development and activity of those in sales management.development and activity of those in sales management.
Source: EcSELL InstituteSource: EcSELL Institute
65% believe there is nothing more that65% believe there is nothing more thatdrives productivity in salesdrives productivity in sales
Source: EcSELL InstituteSource: EcSELL Institute
Tal
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Acq
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Tal
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Sale
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Sal
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kill
sSa
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Met
hodo
logy
& S
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Ski
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Dev
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evel
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Prof
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Dev
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tPr
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Plan
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Plan
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Com
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ecog
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Rec
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An
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Leadership and ManagementLeadership and Management
The 6 PillarsThe 6 Pillars
Source: EcSELL InstituteSource: EcSELL Institute
It is how one leads and manages that will ultimately It is how one leads and manages that will ultimately affect the success within each Pillaraffect the success within each Pillar
Talent Identification & Acquisition
Defined as: Proper identification and hiring of the right talent to meet and exceed sales department objectives
Proper identification and acquisition leads to:– Shorter ramp up times– Increases sales– Reduced turnover
Tal
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Tal
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Talent Plus Case StudyTalent Plus Case Study
Changing the selection methodChanging the selection methodand interviewing process lead to:and interviewing process lead to:
- 10% increase in revenue- 10% increase in revenue- 50% reduction in turnover- 50% reduction in turnover
Results within a single year!Results within a single year!
Source: Talent PlusSource: Talent Plus
Caliper Research:Caliper Research:
Costs on average Costs on average $60K$60K per person turned.per person turned.
40 producers X 20% average turnover = 8 turns per year40 producers X 20% average turnover = 8 turns per year8 turns X 60K = 8 turns X 60K = $480,000$480,000 in loss/yr in loss/yr
Reduction in turnover rate to 10% saves $240,000!Reduction in turnover rate to 10% saves $240,000!
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EcSELL Institute Research indicates:EcSELL Institute Research indicates:
67%67% Sales managers rate this Pillar as Sales managers rate this Pillar as““extremely strongextremely strong” when referring to impact” when referring to impacton sales production.on sales production.
Source: EcSELL InstituteSource: EcSELL Institute
Tal
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Tal
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EcSELL Institute Research indicates:EcSELL Institute Research indicates:
67%67% Sales managers rate this Pillar as Sales managers rate this Pillar as““extremely strongextremely strong” when referring to impact” when referring to impacton sales production.on sales production.
Source: EcSELL InstituteSource: EcSELL InstituteOnly 7% rate theirOnly 7% rate theirSales Managers skillsSales Managers skillssets as “extremely strong”sets as “extremely strong”in this areain this area
What you can do:
• Take control of all aspects of identifying and acquiring the right sales talent
What you can do:
• Take control of all aspects of identifying and acquiring the right sales talent
• Identify your top internal recruiter(s) in the sales department and make them accountable for filling positions
What you can do:
• Take control of all aspects of identifying and acquiring the right sales talent
• Identify your top internal recruiter(s) in the sales department and make them accountable for filling sales positions
• Make sure all sales managers have a list of potential recruits
What you can do:
• Take control of all aspects of identifying and acquiring the right sales talent
• Identify your top internal recruiters in the sales department and make them accountable for filling sales positions
• Make sure all sales managers have a list of potential recruits
• Develop a partnership with a company that specializes in finding the right sales talent
What you can do:
• Take control of all aspects of identifying and acquiring the right sales talent
• Identify your top internal recruiter(s) in the sales department and make them accountable for filling sales positions
• Make sure all sales managers have a list of potential recruits
• Develop a partnership with a company that specializes in finding the right sales talent.
• Compare with others
What you can do:
• Take control of all aspects of identifying and acquiring the right sales talent
• Identify your top internal recruiter(s) in the sales department and make them accountable for filling sales positions
• Make sure all sales managers have a list of potential recruits
• Develop a partnership with a company that specializes in finding the right sales talent.
• Compare with others
• Measure your outcomes • Average time territories are vacant
• Turnover rate
• Time to quota
Planning
Defined as:
The ability to create documents
that encompass all that is vital to
success in a sales organization
Mapping your goals and strategy
is critical to success. Pla
nnin
gP
lann
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Stanford University Study
5X more likely to achieve 5X more likely to achieve something if it is written down!something if it is written down!
500% increase!500% increase!
Source: Stanford UniversitySource: Stanford University
EcSELL Institute Research indicates:
10%10% Consider their sales management team as Consider their sales management team as ““extremely strongextremely strong” in the area of PLANNING” in the area of PLANNING
51%51% Consider their sales management team as Consider their sales management team as ““neutral to very weakneutral to very weak” in the area of PLANNING” in the area of PLANNING
University of Waterloo, Canada Research
Expe
rienc
e
Expe
rienc
eT
erri
tory
Ter
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ryIndividual ability
Individual ability
$$$$$$
$$$$$$
Stretch Goal!Stretch Goal!
A stretch goal that is tiered with attached bonuses and setA stretch goal that is tiered with attached bonuses and setaccording to individual ability outperforms single stretch goals.according to individual ability outperforms single stretch goals.
Source: University of Waterloo, Canada October 2006Source: University of Waterloo, Canada October 2006
University of Waterloo, Canada Research
Expe
rienc
e
Expe
rienc
eT
erri
tory
Ter
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ryIndividual ability
Individual ability
$$$$$$
$$$$$$
Stretch Goal!Stretch Goal!
A stretch goal that is tiered with attached bonuses and setA stretch goal that is tiered with attached bonuses and setaccording to individual ability outperforms single stretch goals.according to individual ability outperforms single stretch goals.
Source: University of Waterloo, Toronto, Canada October 2006Source: University of Waterloo, Toronto, Canada October 2006
The The tiered goaltiered goal participants participants outperformedoutperformed the single the single stretch goal in each period stretch goal in each period measured, despite the fact measured, despite the fact the single stretch goal was the single stretch goal was 14% lower!14% lower!
University of Waterloo, Toronto Canada Research
Expe
rienc
e
Expe
rienc
eT
erri
tory
Ter
rito
ryIndividual ability
Individual ability
$$$$$$
$$$$$$
Stretch Goal!Stretch Goal!
A stretch goal that is tiered with attached bonuses and setA stretch goal that is tiered with attached bonuses and setaccording to individual ability outperforms single stretch goals.according to individual ability outperforms single stretch goals.
Source: University of Waterloo, Toronto, Canada October 2006Source: University of Waterloo, Toronto, Canada October 2006
Individually tailored stretch Individually tailored stretch goalsgoals, with , with attainment tiersattainment tiers, , may be a may be a more effectivemore effective means of motivating higher means of motivating higher efforts and performance.efforts and performance.
What you can do…
• Obtain sales and territory plans from colleagues in other organizations/industries
What you can do…
• Obtain sales and territory plans from colleagues in other organizations/industries
• Create and share annual sales plans with all those in sales management
What you can do…
• Obtain sales and territory plans from colleagues in other organizations/industries
• Create and share annual sales plans with all those in sales management
• All those involved in sales management and production should create a plan
What you can do…
• Obtain sales and territory plans from colleagues in other organizations/industries
• Create and share annual sales plans with all those in sales management
• All those involved in sales management and production should create a plan
• Have sales management plans encompass all the Pillars
What you can do…
• Obtain sales and territory plans from colleagues in other organizations/industries
• Create and share annual sales plans with all those in sales management
• All those involved in sales management and production should create a plan
• Have sales management plans encompass all the Pillars
• Consider customizing goals to the individual’s ability
What you can do…
• Obtain sales and territory plans from colleagues in other organizations/industries
• Create and share annual sales plans with all those in sales management
• All those involved in sales management and production should create a plan for their respective territory
• Have sales management plans encompass all the Pillars
• Consider customizing goals to the individual’s ability
• Be selective in what you are changing/adding. Let metrics direct change
Professional Development
Defined as:
Meeting the individual needs of
those in the sales department in
order to increase productivity and
retention of your team.
Pro
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Pro
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Professional DevelopmentAsk yourself:
Do you know all those who aspire to other positions?
Do you know what producers will make great mangers or leaders?
Do you have programming in place to grow those skills?
Do you provide programming to further develop the skills of your sales managers? P
rofe
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CSO Insights Research
Less than 10% of companies have programming in place Less than 10% of companies have programming in place to develop the skills of their sales mangers.to develop the skills of their sales mangers.
10% have programming10% have programming
Source: CSO InsightsSource: CSO Insights
There is gap between what sales managers There is gap between what sales managers perceive and what science shows!perceive and what science shows!
38%38% Believe that Professional DevelopmentBelieve that Professional Developmenthas a “has a “very strong”very strong” impact on productivity impact on productivity
Source: EcSELL InstituteSource: EcSELL Institute
““Professional Development has a Professional Development has a strongstrong correlationcorrelation to to retention and productivity”retention and productivity”
Source:Source: Curt CoffmanCurt Coffman
What you can do…
• Understand your team’s professional goals--document
What you can do…
• Understand your team’s professional goals--document
• Provide C/E for all levels within the sales organization
What you can do…
• Understand your team’s professional goals--document
• Provide C/E for all levels within the sales organization
• Develop a culture that shows C/E is not a single annual event
What you can do…
• Understand your team’s professional goals--document
• Provide C/E for all levels within the sales organization
• Develop a culture that shows C/E is not a single annual event
• Limit C/E to only that which leads to increased production
What you can do…
• Understand your team’s professional goals--document
• Provide C/E for all levels within the sales organization
• Develop a culture that shows C/E is not a single annual event
• Limit C/E to only that which leads to increased production
• Compare with others
What you can do…
• Understand your team’s professional goals--document
• Provide C/E for all levels within the sales organization
• Develop a culture that shows C/E is not a single annual event
• Limit C/E to only that which leads to increased production
• Compare with others
• Provide feedback on what you can prove to be their development needs
Compensation, Recognition & Rewards
Defined as:The understanding and design of
programs that not only drive and
incent the proper behaviors, but
also meet the evolving
demographic and psychographic
needs of your sales department.
Com
pens
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ecog
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Com
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EcSELL Institute Research indicates:
87%87% Respondents believe “Respondents believe “very strongly or stronglyvery strongly or strongly” that” thatthe right Compensation/Recognition/Reward has athe right Compensation/Recognition/Reward has adirect impact on sales productivitydirect impact on sales productivity
47%47% Respondents believe that their sales management team Respondents believe that their sales management team is “is “very strong or strong”very strong or strong” in this area in this area
Source: EcSELL Institute Research, 2009Source: EcSELL Institute Research, 2009
What you can do…
• Use common sense – align incentives to behaviors and objectives
What you can do…
• Use common sense – align incentives to behaviors and objectives
• Make sure the sales team has an understanding of how plans work
What you can do…
• Use common sense – align incentives to behaviors and objectives
• Make sure the sales team has a complete understanding of how plans work
• Annual review – 72% change sales compensation programs annually
What you can do…
• Use common sense – align incentives to behaviors and objectives
• Make sure the sales team has a complete understanding of how plans work
• Annual review – 72% change sales compensation programs annually
• Compare with others
What you can do…
• Use common sense – align incentives to behaviors and objectives
• Make sure the sales team has a complete understanding of how plans work
• Annual review – 72% change sales compensation programs annually
• Compare with others
• Graphically show each of them how they can achieve income objectives and provide monthly statements on progress
Sales Methodology and Sales Skill Development
Methodology defined as “how you sell”
Sales Skills defined as “how well
you perform the methods”
– Prospecting
– Needs analysis
– Presentation aptitude
– Proposals development
– Recognize the need to partner
with other departments
Sale
s M
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dolo
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Met
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&
Sale
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ill D
evel
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Sale
s Sk
ill D
evel
opm
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Sales Methodology and Sales Skill Development
Methodology defined as “how you sell”
Sales Skills defined as “how well
you perform the methods”
– Prospecting
– Needs analysis
– Presentation aptitude
– Proposals development
– Recognize the need to partner
with other departments
Just because they can Just because they can do it doesn’t mean do it doesn’t mean they are good at it.they are good at it.
Train and measure!Train and measure!
Harvard Business Review research:Harvard Business Review research:
The New Science of Sales ProductivityThe New Science of Sales Productivity
Source: Harvard Business ReviewSource: Harvard Business Review
Source: Harvard Business ReviewSource: Harvard Business Review
Breaking producer results down further:Breaking producer results down further:Top quartileTop quartile 6% increase6% increaseSecond quartileSecond quartile 59% increase59% increaseThird quartileThird quartile 77% increase77% increaseBottom quartileBottom quartile 149% increase149% increase
Source: Harvard Business ReviewSource: Harvard Business Review
Harvard Business Review research:Harvard Business Review research:
Source: Harvard Business ReviewSource: Harvard Business Review
Another study showed similar results:Another study showed similar results:Top quartileTop quartile 2% increase2% increaseSecond quartileSecond quartile 33% increase33% increaseThird quartileThird quartile 54% increase54% increaseBottom quartileBottom quartile 44% increase44% increase
Source: Harvard Business ReviewSource: Harvard Business Review
Harvard Business Review research:Harvard Business Review research:
What you can do:
• Dedicate C/E time to developing product/market knowledge and sales skills
What you can do:
• Dedicate C/E time each week developing product/market knowledge and sales skills
• Figure out if there are other needs (negotiation skills, time management etc.)
What you can do:
• Dedicate C/E time each week developing product/market knowledge and sales skills
• Figure out if there are other needs (negotiation skills, time management etc.)
• Analyze your sales methods annually
What you can do:
• Dedicate C/E time each week developing product/market knowledge and sales skills
• Figure out if there are other needs (negotiation skills, time management etc.)
• Analyze your sales methods annually
• Learn what sales methods and sales skill improvement models are being used by others
What you can do:
• Dedicate C/E time each week developing product/market knowledge and sales skills
• Figure out if there are other needs (negotiation skills, time management etc.)
• Analyze your sales methods annually
• Learn what sales methods and sales skill improvement models are being used by others
• Have a review program with defined and expected sales skill sets that can be measured
Leadership / Management
“What ultimately determines the levels of success you achieve correlates directly to the leadership skills and management acumen of those in sales management.”
Bill Eckstrom, Founder EcSELL Institute
Leadership and ManagementLeadership and Management
EcSELL Institute Research indicates:EcSELL Institute Research indicates:
““Sales managers believe their Sales managers believe their ability to lead and manageability to lead and managehas the has the second largest impactsecond largest impact on on productionproduction ( (afterafterTalent ID and AcquisitionTalent ID and Acquisition).”).”
Less than 10%Less than 10% Put resources against improving leadershipPut resources against improving leadershipand management skillsand management skills
15%15% Consider their teams “Consider their teams “extremely strongextremely strong””
Gallup Organization Research
80,000 managers and 1 million employees interviewed80,000 managers and 1 million employees interviewed
““The biggest reason associates stay, quit, are The biggest reason associates stay, quit, are productive or not productive is due to the productive or not productive is due to the relationship they have with their direct manager.”relationship they have with their direct manager.”
Source: Source: First Break All The Rules: What the World’s Greatest Managers Do DifferentlyFirst Break All The Rules: What the World’s Greatest Managers Do DifferentlyCurt Coffman and Marcus Buckingham, GallupCurt Coffman and Marcus Buckingham, Gallup
Gallup Organization Research
80,000 managers and 1 million employees interviewed80,000 managers and 1 million employees interviewed
““The biggest reason associates stay, quit, are The biggest reason associates stay, quit, are productive or not productive is due to the productive or not productive is due to the relationship they have with their direct manager.”relationship they have with their direct manager.”
Source: Source: First Break All The Rules: What the World’s Greatest Managers Do DifferentlyFirst Break All The Rules: What the World’s Greatest Managers Do DifferentlyCurt Coffman and Marcus Buckingham, GallupCurt Coffman and Marcus Buckingham, Gallup
““The ability to build organicThe ability to build organicgrowth and the futuregrowth and the futureviability of any organizationviability of any organizationwill be in the hands of will be in the hands of their sales managers.” their sales managers.” Curt CoffmanCurt Coffman
Dr. Mary Ulh-BienDr. Mary Ulh-BienHoward Hawks Chair in BusinessHoward Hawks Chair in BusinessEthics and Leadership and Ethics and Leadership and Director of the Global Leadership Director of the Global Leadership Institute Institute
EcSELL Institute Summit topic:EcSELL Institute Summit topic:““Leading for Innovation, Learning,Leading for Innovation, Learning,And Adaptability in Sales”And Adaptability in Sales”
July 28-29, Half Moon Bay, CAJuly 28-29, Half Moon Bay, CA
Caliper Corp. Research
172 sales managers across 50 industries were identified as “the best leaders”
7 Personality Characteristics:– Work with a high sense of urgency
– Assertive
– Possess a high degree of ego drive
– Possess a high degree of ego strength
– Risk takers
– Innovative
– EmpatheticSource: Caliper Corp. Source: Caliper Corp.
Caliper Corp. Research
172 sales managers across 50 industries were identified as “the best leaders”
7 Personality Characteristics:– Work with a high sense of urgency
– Assertive
– Possess a high degree of ego drive
– Risk takers
– Innovative
– EmpatheticSource: Caliper Corp. Source: Caliper Corp.
Great leaders believe 40% of Great leaders believe 40% of their talent is innate, the othertheir talent is innate, the other60% was developed60% was developed
Source: CaliperSource: Caliper
Caliper Corp. Research
172 sales managers across 50 industries were identified as “the best leaders”
7 Personality Characteristics:– Work with a high sense of urgency
– Assertive
– Possess a high degree of ego drive
– Risk takers
– Innovative
– EmpatheticSource: Caliper Corp. Source: Caliper Corp.
““One of the distinguishing One of the distinguishing characteristics of a great, characteristics of a great, enduring organization is that theyenduring organization is that theyput a lot of thought into the put a lot of thought into the development of leadership.”development of leadership.” Jim Collins, Jim Collins, Built To LastBuilt To Last
What can you do…
• Read Coffman’s book
What can you do…
• Read Coffman’s book
• Consider asking your sales team the Q 12 http://gmj.gallup.com/content/811/Feedback-Real.aspx
What can you do…
• Read Coffman’s book
• Consider asking your sales team the Q 12
• Use assessments to distinguish between great leaders and great managers
What can you do…
• Read Coffman’s book
• Consider asking your sales team the Q 12
• Use assessments to distinguish between great leaders and great managers
• Put resources against C/E for your sales producers and sales managers
EcSELL Institute is a leading provider of continuing education and development for sales managers.
Our goal at EcSELL Institute is to help sales executives and their sales management team make smarter, more deliberate decisions by providing them with educational and development tools specific to the activities over which sales managers have (or should have) control and influence over.
Analytics: The Critical Second Half of CRM
In the projects we've benchmarked over the past few years, we often find that CRM systems give sales
managers numbers – but what they want is insight.
““
””
Do You Have the Right Metrics?
Batting AverageBatting AverageBatting AverageBatting Average
.406.406.406.406
The Old Way…The Old Way…The Old Way…The Old Way…
On-Base On-Base %%On-Base On-Base %%
Batting Batting AverageAverage
++WalksWalks
++SacrificesSacrifices
++Hit By PitchHit By Pitch
Batting Batting AverageAverage
++WalksWalks
++SacrificesSacrifices
++Hit By PitchHit By Pitch
The New Way…The New Way…The New Way…The New Way…
Do You Have the Right Metrics?
.406.406.406.406
The Old Way…The Old Way…The Old Way…The Old Way…
The Sales 2.0 Metrics That Matter Total SalesTotal Sales Total PipelineTotal Pipeline Count of Lead Count of Lead
CompaniesCompanies Lead to Oppty Lead to Oppty
ConversionConversion Avg Days from Lead to Avg Days from Lead to
Oppty Oppty Avg Age of Open Oppty’sAvg Age of Open Oppty’s Avg Days from Lead to Avg Days from Lead to
CloseClose Avg Oppty AmountAvg Oppty Amount Avg # of Oppty’sAvg # of Oppty’s Lead to Close ConversionLead to Close Conversion
The New Way…The New Way…The New Way…The New Way…
Sales Rep ScorecardsSales Rep ScorecardsSales Rep ScorecardsSales Rep Scorecards
Sales Rep ASales Rep A
Sales Rep BSales Rep B
Sales Rep CSales Rep C
Sales Rep DSales Rep D
Sales Rep ESales Rep E
Sales Rep FSales Rep F
Ensure You’re Tracking the Metrics that Matter
Your Sales Pipeline• It’s not just the # of deals, it’s
how they’re moving
• Total value vs. velocity
Your Sales People• It’s not just how they’ve done, it’s
how they’re going to do
• Quota vs. scorecard
Your Sales Process• It’s not just having a process, it’s
making sure it’s followed
• Data entry versus data accuracy
The LucidEra Pipeline Healthcheck™
Get the Right Metrics and Actionable Insight in 48 Hours
LucidEra was able to quickly quantify the impact that on-demand business intelligence can have on
our business.””
““
www.lucidera.com/healthcheck
Q&AEcSELL InstituteEcSELL Institutewww.ecsellinstitute.com402-261-6948402-261-6948
LucidEraLucidErawww.lucidera.comwww.lucidera.com/blogwww.twitter.com/lucidera