Process in Sales Organizations

Today I chuckled to myself as I read the title of a blog entry:  Is “Process” an Ugly Word in your Sales Department (http://bit.ly/8c1YtR). The writer gives three common reasons for why companies don’t have “a formally defined sales process.” In even broader terms, many SMBs resist formalizing much of anything about their sales department. To me, it’s one of the great mysteries of small business.

Throughout my career I have seen many companies with dysfunctional sales organizations. A big part of this dysfunction starts with leadership, of course. But lack of process contributes to and even exacerbates this. I’ve utilized process in several areas in sales leadership roles:

• Communication: Establishing consistency in how your team communicates with the rest of the organization is crucial. Make sure there is a clear path they follow for technical support, customer service, sample orders, etc. I’ve seen members of an organization tolerate very inconvenient behavior (a salesperson calling into customer service with non-essential business during lunch hours when staffing is short-handed, for example), but never saying anything out of politeness or because “Joe has always done that.” A good sales manager will observe, streamline, and adjust communication process in order to help the WHOLE organization.
• Paperwork/Record Keeping: Of course I’m not a big fan of paperwork. With the ubiquity of technology (email, CRMs, etc.), make sure your requirements are in line with a modern sales organization. Is a weekly itinerary faxed or emailed really necessary with Outlook or a CRM? Is a month end report relevant anymore? Has it not changed in structure in years? Can this same report be thrown out in lieu of integration into your CRM? One satisfying part of my job with a German company was being able to spare the sales team from most report requests because the data could be found and exported from our Sales Force Automation software.
• Selling: Articles on sales process can be found readily on the Internet, so I won’t spend time digging into this topic here. However, if you think you have a sales process but you’re not sure if your sales team recognizes this, try this exercise. At the next sales meeting, have each salesperson write down on paper – without sharing what they’re writing with anyone else – how they would describe your company’s sales process. You can do the same thing in person or via email; just make sure nobody can “compare notes.” The resulting responses may shock you.

The purpose of process is not to stifle creativity or to create a rigid, uptight environment. In fact, I’d argue that a well-oiled sales organization with solid, logical processes in place is much more apt to be successful and happy. Furthermore, this foundation allows for more effective sales management and onboarding for new salespeople. Finally, good processes position a sales team for future, scalable growth.

Whether you’re a salesperson or sales manager, it behooves you to take a step back from your business from time to time to think about process. In many cases, if you don’t devote time to this, nobody will. However, once you build this into your routine and job, you’ll find that your work, especially some of the minutiae, becomes much more manageable over time. Soon you’ll wonder how you ever did things “the old way!”

CRMs – Do it the right way!

Why do CRMs so often fail to meet expectations? I’ve known many companies to launch CRMs with such excitement and hope, only to be bitterly disappointed within months of the launch. Recognizing the difficulty companies have with change management and with CRM implementation and ongoing use, salesforce.com tries to help its clients with this process by providing tools and a designated “Customer Success Manager.” Ultimately, though, a company can greatly increase the success and effectiveness of its CRM by following some basic guidelines and rules.

1) Clearly state the reasons why you want a CRM. Articulate what it is you hope to achieve with a CRM, and make this visible to the company, including the leadership team. One company I know clearly chose to implement one primarily as part of its window dressing in order to facilitate the company’s sale. Needless to say, this was not a recipe for success.

2) Have a firm understanding of the monetary investment. Per user cost may seem fairly inexpensive, but what are the implementation costs? Does the software require investment in training for an administrator? Is there additional development required down the road? Make sure you can pinpoint the upfront and long term dollars.

3) Create a road map for your launch. Decide how you want to roll it out – user training, who will own the solution moving forward (i.e., who manages it), how will you establish user adoption, how much time you’ll need to roll it out, etc.

4) Executive buy-in does not end with approval to purchase or implement the CRM. A company’s senior leadership must have visibility into the CRM AND they must support the sales manager’s ongoing attempts to embed this within the culture of the company. Dashboards offer an effective and efficient way for company leaders to view CRM activity. However, it must be more than this – employees must know and see the importance of the CRM to the leadership team.

5) Find the right person to be the CRM administrator. Ideally, the administrator has been trained on the technical aspects of the CRM, is detailed oriented, and also has a background in sales and marketing. Remember, CRMs should be living, breathing, and dynamic. The launch and initial data dump are only the beginning.

6) Don’t think the CRM takes the place of sales or managing your customers. Your CRM is another tool for your company and sales team to leverage; be careful not to over-rely on it.

7) Finally, ultimately someone within your company must “own” the CRM. Whether or not it’s you, somebody must think of it as his or her “baby.” They must care deeply about it – nurture it, help it evolve, put it in a position to be successful, and pay close attention to it – in an ongoing manner.

Statistically speaking, CRMs have about only a 15% success rate (according to the 2004 Global CRM Study from IBM Business Consulting Services). However, if you follow the above guidelines, your chances for success will increase dramatically.

Blocking & Tackling

In a meeting last week one of the people I spoke with used the term “blocking and tackling” to describe the basic yet essential tasks and duties a sales person or sales manager does. At the same company the CEO spoke about the importance of being detail-oriented and understanding the business in depth. Whether you’re a salesperson or sales manager, do you and/or your team “block and tackle” well and know your territory inside and out?

Sometimes we get so caught up in the noise and busyness of our jobs, we lose sight of some basics. We run around, chasing our tails. As sales managers we put out fires, always dealing with the crisis du jour.  Soon we’re not planning properly, we’re not coaching, or we’re isolating ourselves from the sales team. Similarly, sales people can get pulled in too many directions, doing too much for certain customers (that may not deserve the extra attention), or neglecting other customers. For sales people and sales managers, it takes focus, discipline, and wisdom to manage your territory and not have your territory manage you, as the saying goes.

A good salesperson or sales manager is like an alert driver. The driver is moving his or her eyes regularly – checking for blind spots, looking ahead, glancing at the rear view mirror, adjusting the speed (accelerating or slowing down), repositioning the car, i.e., switching lanes, and stopping appropriately. Of course the driver sees where they’ve been and where they’re going. Likewise, a sales professional must balance the immediate needs of his or her sales responsibilities with the longer term requirements of the role. In other words, the salesperson has to keep the pipeline full constantly.

Salespeople know this, yet why do so many fail to maintain this balance? I think it goes back to “blocking and tackling.” The term “Don’t sweat the small stuff” grew quite popular in past years. However, the small stuff – blocking and tackling – enables a sales manager or sales person to reinforce positive behaviors. We develop good habits through the little things we do daily. Assuming we’re doing the right little things, the little stuff adds up to a daily program of successful actions. When we can handle the daily requirements of the job, we’re much better able to be strategic and deliberate because we’ve built a solid foundation.

Take a step back and determine whether you are working your plan effectively.  Get back to the basics. Find a way to accomplish the immediate requirements of your job while never losing sight of the importance and necessity of building for the future. Block and tackle well, and you’ll find success short term and in the long run.

Success Stories

This morning I read a spot-on article by Wendy Weiss on using success stories to help close deals (see http://bit.ly/tJjjt). Along the same lines, success stories in every day selling can provide salespeople and sales managers with powerful testimonials and evidence of their company’s effectiveness in solving customers’ problems. They also can do wonders for a new salesperson’s confidence.

I remember an especially awkward moment early on in my time at as a sales manager. On a sales call a very important customer of ours asked my salesman and me who some of our customers were for a particular product (we were presenting this same product to them for their consideration). Although I knew exactly who our customers were, I hesitated because the list was less than impressive. It’s terrible to say, but I was embarrassed about our lame client list. Fortunately we were able to transcend this, and we were able to win some fantastic business that gave the whole team success stories to share with their customers and prospects.

Whether you’re a sales manager or salesperson, work hard at finding these stories to share with your clients. The examples you use don’t necessarily have to be noteworthy companies or huge deals (although this does help!). Rather, focus on a challenge you tackled for the customer, how you solved it, and how you helped the company. Often times customers can find something in these stories relevant to issues they face, or at the very least, you demonstrate your competence and gain some credibility in the customer’s eyes.

A common problem for new salespeople that work for companies that are relatively unknown or not well-regarded in the marketplace is what I’ll call the “Wait and See” syndrome. Nobody wants to be the idiot that decided to go out on a limb with Company X. Most people fear going against the grain. They would rather choose to do business with a household name than with a company that is not well-accepted in the industry. Success stories help to overcome this; usually there is safety in numbers.

When talking to one of your salespeople, you might have to “pull” this information out of them. In other words, you may have to review your salesperson’s wins and help them to reframe this success into a story. Some salespeople are quite modest while others think in black and white terms. Work with each of them to create a portfolio of success stories. Typically the stories become more impressive as a salesperson gains experience and begins to land bigger deals. Make sure you broadcast success stories to the whole sales force and your company. People need and want to know about sales achievements and their company’s victories.

Reference selling is nothing new; this has been a useful sales tool for a long time. Success stories, though, dig deeper and reveal your company’s skills and expertise and demonstrate how you have helped organizations. In your role as sales manager, make sure you share success stories your whole team can use. Moreover, work with them individually to help them define their own success stories. The boost in confidence this gives them will be apparent to their customers and will undoubtedly help to facilitate new business.

Overcoming “The Brush Off”

Yesterday I read a good post on the Eyes on Sales web site titled “Call Me Back Next Month! Putting an End to the End-of-Quarter Blues” (http://bit.ly/3st8AJ).  The author, Colleen Francis, gives some good tips on how to overcome resistance when you’re trying to close deals at the end of a sales cycle. Equally frustrating is facing this same type of brush off from prospects early on as you try to establish a relationship and get in front of them. How can you accelerate your prospecting?

The techniques I’ll suggest are really more suited for qualified prospects, in other words, companies you know have a need for the products or services you provide. You may even know what they buy, how much, and other helpful details. The trouble you face is just getting in front of people there. It’s important to try a number of different approaches in a disciplined and persistent manner.

Finding out who to talk is usually fairly easy. Industry contacts, networking, and researching through the Internet are all ways to zoom in on the right person. Once you’ve established that, what are some good approaches besides a straight-forward phone call, email, or letter?

• Ask someone to introduce you: See if a customer or industry friend knows this person and if they’re willing to set up a meeting on your behalf, whether they come along or not. Sometimes even a pseudo-competitor will be willing to introduce you if they don’t think their business will be threatened by you. It never hurts to ask!
• Along the same lines, find someone you can reference when you call. Sometimes being able to say “So and So recommended I give you a call” provides you with some common ground and perhaps some credibility.
• Trade shows/industry events: Invite this person to your events.  When you’re at a trade show event or dinner where name tags are used, keep your eyes open for this person. If you spy them, use a common friend’s name or the invitation(s) you’ve previously sent as an ice breaker. After you’ve had a chance to chat, ask them if it’s okay to call them the following week.
• If you have a newsletter, regular email communication, or webinar series, make sure this person is on your distribution list.
• If your prospect is a considerable distance from your headquarters, offer them a paid trip to visit your company. Obviously the prospect must have some significant upside to merit this, but this can be a great way to demonstrate how important they are to you. If they take you up on the offer, you have a fantastic opportunity to showcase your company and build the relationship.
• Is there someone else at the same company that is willing to introduce you? Once you state your case as to why you want to meet the person, a diligent employee will often “go to bat” for you if they have confidence in you. At this point you’re not trying to “go around” the gate keeper. Rather, you’re merely trying to get an introduction through a coworker.

Salespeople often wonder how long they should beat their heads against the wall without any breakthroughs before they “cut bait” and move on. It can be so frustrating to be ignored or put off by someone. However, the strategies I’ve listed above don’t require a lot of time on your part. If these prospects have good potential, what do you have to lose by continuing your pursuit?

Whatever strategies you use, it’s imperative that you continue to work your plan; it can’t be a sporadic, half-hearted approach. That never works with the “elephants.” In most cases the adage “The bigger they are, the harder they fall” is true – the biggest accounts are usually the toughest to land. Develop your plan and execute it. In time your strategy should pay off with significant, new business.

Enjoy

Last week I ran across a picture of my old sales team taken during a white water rafting outing. I scanned it and posted it on Facebook so I could share it with some of them. It brought a smile to my face as I remembered how much fun we had that day. I was fortunate to have had so many great days with this group despite a heavy work load and constant, intense pressure.

I know some managers that work hard at keeping distance between themselves and their sales team. They keep their guard up, and salespeople feel like they never get to see a personal side to their robot-like manager. I’ve always sought to first earn the respect of my team; of course this is essential. However, when you’re able to enjoy your team on a personal level as well as a professional one, your work experience becomes much richer. I’ve often said that as the years pass, the sweet sales successes of the past, while still very much alive in my mind, have been eclipsed by the friendships and fun times I shared with my sales team. Granted, we probably wouldn’t have had as much fun if we hadn’t had the success we did! Call me crazy, but work is a lot more fun when you enjoy the people you work with.

The part that scares managers, I think, is whether they’ll be able to switch between “manager” and business “friend.” Because of this, it’s easier to always be in manager mode. Salespeople, though, aren’t stupid. They’re often turned off by the uptight, strictly business sales manager. When I arranged for the sales team to go white water rafting, “team building” was secondary in my mind. First and foremost, I wanted to have a good time as a group after all the hard work we had put in. Team building, in my opinion, can flop if a sales manager isn’t in tune with his or her team. Sincerity is key; a sales team can tell if the manager is “going through the motions” and reading from Sales Management 101.

Years ago a mentor of mine gave me sage advice as I first started off in sales. “Jon, be your own man.” Although he encouraged me to learn from others, he wanted me to find my own sales style. Be genuine. Even if it’s hard for you, work at drawing your team in. Before you stage a team building event, first seek to really get to know your team. Take a personal interest in them.  Let’s face it – your success is dependent upon theirs. You are attached at the hip. Have some fun. Enjoy each other. I truly respected and enjoyed every person on my sales team. The memories I have of them – their successes, the road trips, interesting sales calls, adversity we faced together, the laughs we shared – will stay with me for a long time.

 

What’s the Situation?

In past sales management roles, I’ve conducted a situation analysis early in my tenure to determine where the opportunities and threats are. By digging deep to learn everything I could about my company, sales team, customers, competitors, and industry, I’ve been able to get my bearings early on and figure out a short and long term road map for my company and team. Although most salespeople aren’t given this task, a situation analysis can be an effective way of reexamining your territory more critically. If you’re a salesperson struggling or pulling your hair out trying to figure out a better approach, consider putting time into your own situation analysis.

To make this simple, start your analysis with capturing where the business is in your territory. Identify the top prospects and the accounts that make up 80% of your business. What business do you have? What viable business don’t you have? Try to quantify this in units or sales dollars. Which competitor(s) have this business? With this data, you can begin to understand your market penetration, your biggest competitors, opportunities for growth, etc. When you put this information down “on paper,” it can help you see your territory more objectively.

In the above step you’ve listed where competitors’ business is. Now think about each individual competitor. Do they offer products that your company doesn’t and vice versa? Are any competitors especially vulnerable because of quality or delivery issues, salesperson attrition, etc.? How can you capitalize on any weaknesses you see? Are there new competitors or competitive products emerging? Who do you consistently lose business to?

Through in depth analysis of your accounts, prospects, and competitors, you should begin to “re-see” your territory in black and white terms. Perhaps you see some patterns or something that jumps out at you. From here, creating a SWOT analysis of your territory should be fairly simple. You should gain greater clarity with this process.

Of course much of this is already swimming around in your head. But there is something very powerful about formally capturing this information and looking at it with a fresh set of eyes. Because of our country’s economic conditions, so many salespeople are completely stumped about what they can do to generate more sales. Conducting your own situation analysis can be just the tool you need to find new opportunities.

Sales Training Tips

Sales training can be a much needed attempt to bring improvement to a sales force. Although often maligned, sales training can introduce a sales team to a particular sales methodology, help to reinforce or strengthen skills needed in the sales process, or improve soft skills needed in the daily routine of a salesperson. Unfortunately many companies often waste valuable dollars on training. Not only is this money down the drain, the lack of success can stymie future training attempts and create frustration among both management and sales.

This fall I spoke to J. Devereaux Butler, PhD, a consultant at Clear Talent, a consulting and training firm based in Grand Rapids, Michigan (www.getcleartalent.com). Dr. Butler shared with me some valuable pointers on how to get the most out of your training.

The first question to ask prior to your training is “How will the person be different after the training?” What will they get out of the training? Don’t think of training as merely a “data dump,” i.e., throwing a lot of information at your team. If sharing information in a straightforward manner is your goal, opt for online training or CD-based instruction.

According to Butler, think of the training as four components: instructor, content, the preparation of the manager before the training, and the preparation of the student before the training. Of these four pieces, the latter two will have the most profound effect on the success of the training. Do not neglect them as you plan your training.

Dr. Butler pointed to three modalities to be used in training: cognitive, emotional, and physical. The emotional tries to help the people being trained to answer the question “Why?” In other words, “How will I be different after the training?” The physical part refers to getting the group moving or doing something. Role-playing is an example of this. Hit all three of these modalities in your training. Consider utilizing small group break-out discussions as well; this can be highly effective.

Of course training doesn’t begin and end with the actual session. Our country is littered with training manuals sitting untouched in cubicles. I’ve read and heard that people forget 87% of what they learn in a skill training course within thirty days if the learning isn’t reinforced. Have a plan for reinforcing the knowledge in order to make it stick.

Sales training is not a panacea, a band-aid to throw on an underperforming sales team. However, a good sales organization should have an ongoing training program in place to help imbed the skills, behaviors, and sales methodology critical to an organization’s success. It’s up to sales management to make sure the organization gets its money’s worth and the results it wants and needs.

Drive-By Sales Management

In one of my roles as sales manager, I was hired clandestinely before my predecessor had been notified of their demotion. Throughout my first week I took an intensive German language class to brush up on my German skills. The second week was very awkward because I spent the week in the boardroom reviewing call reports and sales data. Undoubtedly most people wondered who I was.

As I sifted through the call reports, I was taken aback by the lack of quality information and the low daily call frequency. I was eager to meet the sales force so I could see for myself whether the call reports were indicative of an underperforming sales team or merely the sign of salespeople that did not like to write call reports. Eventually I determined that it was a little bit of both.

Early on I worked extensively with the sales team to observe firsthand what their strengths and skill gaps were. Through observation on sales calls and traveling together, I tried to answer the following questions:

• Are they planning their time wisely?
• Are they well prepared?
• Do they have good relationships with their customers?
• Do they ask their customers good questions? Do they use probing, follow up questions?
• Are they actively seeking new opportunities with their customers?
• Do they know their accounts and their business inside and out?
• Are they good listeners? Are they letting their customer talk more than they do?

One of the more interesting times I had in working with a salesman for the first time was watching him get lost on his way to one of his bigger clients. He was not new to the company; needless to say, this was a red flag! I then knew he probably wasn’t going to do well with the questions I’ve listed above.

After two or more separate times working with a salesperson, if these questions are being answered positively, you probably have a good barometer for this person’s effectiveness. Or, at the very least, they are showing the right kind of behaviors in the field.  This “Drive-By” sales management doesn’t let you off the hook or guarantee a salesperson will be successful. However, my experience shows me it can be a very good indicator.

Mr. Passive Aggressive and The Sleepwalker

I’m coaching a client on how best to deal with a renter that is in arrears on his rent. My client is a sweet, generous person, and she has had a hard time being firm with the renter. Consequently, the situation has become progressively worse in the past few months. The client now recognizes the urgency of dealing with the matter, although at this point the best course of action is to end the rental agreement. Unfortunately the situation went on for far too long.

This scenario reminds me of a new sales manager having to deal with a salesperson that is clearly not working out. Coming into a new sales management position, a sales manager must evaluate his or her team and determine the overall strengths and skill gaps in each person.  Frequently I’m asked, “How long should I wait until I make a change?” when it’s apparent that some personnel are beyond help. Often times a sales manager can determine who the “dead weight” is fairly quickly. Usually the dead weight falls into two categories: I’ll name them “Mr. Passive Aggressive” and “The Sleepwalker.”

Mr. Passive Aggressive “checked out” a long time ago. They’re trying to sabotage your every move because they’re bitter or miserable. Either way, they are no longer engaged and pose a very real liability to you and the plans you have for the sales team.  Sometimes they “play nice” with you, but most managers can see right through them. Certainly you need to follow proper HR protocol for discipline, dismissing them, etc. However, a sales manager must confront this person immediately. Communicate clearly and strongly. Document your conversations. Do not tolerate poor attitude or behavior. Above all, you need to decide in a relatively quick period of time if this person is a lost cause.

The Sleepwalker, on the other hand, probably has been skating by for a quite some time. Perhaps they haven’t received proper coaching in the past or did not get along with the previous manager. You must determine in short order whether or not this person has been the victim of mismanagement or is simply not a good fit for the position. Again, similar to dealing with Mr. Passive Aggressive, you need to be definite in your communication. Make sure your expectations are clear. Give this person the benefit of the doubt and do everything you can to help them be successful. Soon you should be able to see whether or not this person is a “keeper.”

I by no means want to trivialize the seriousness required in making tough decisions about personnel. But like a landlord that allows a renter to abuse the rental agreement and doesn’t attend to this abuse immediately, a sales manager that doesn’t address problem performance or unacceptable behavior swiftly runs the risk of helping create a much bigger mess down the road. Your short term pain will be much more palatable than the long term chaos.