By Chris Lytle, CSP
Reprinted with permission from Promotional Products Business, published by Promotional
Products Association International,October 2003. For more articles, visit the Web
site at www.ppa.org/ppb.
Everyone wants a sales team full of high-performing, hard-driving, revenue-producing
professionals. However, few companies know how to achieve this. Take an honest look
at your own sales department. Perhaps there are one or two high performers,
a sizeable group of mediocre salespeople and a scattering of space wasters. To you
this seems about average. What you'd really
like to do is move the "mediocres" up to the next level and pull the trigger
on the poor performers. You're just not sure how to do the former, and-because you
figure a warm body is better than no body at all-you're afraid to do the latter.
Poor sales performers do tremendous damage to your sales team. When you allow them
to hang around without producing, you lose the respect of your entire team. The
good people leave-generally when one person goes, two others follow-and with them
go assets like institutional memory and, sometimes, clients. What's left is a sizeable
group of disillusioned employees who come to view your company as a place to work,
not a place to grow.
Your problem lies not so much in the people you have working for you as in your
culture. What you actually need to do is to create a high-performance culture, one
where success breeds success and where poor performers simply can't hide. Here are
some tips on how to meet this goal:
Have standards, not wishes.
Of course, you would like all your salespeople every day to come to work
all fired up, fill their calendars with productive meetings and close at least one
big sale. Who wouldn't? But telling them the outcome you'd "like" isn't going to
feed the bulldog. You need measurable standards by which you can separate the wheat
(your top sellers) from the chaff (those low performers you're itching to fire).
There are four possible standards of measurement:
Quantity standards include anything that can be counted, such
as number of sales calls, number of client lunches, number of phone calls and number
of proposals written. These are the easiest standards to set, but, as you will see,
they're often not the best ones.
Quality standards include subjective criteria. For instance,
a sales call that yielded data to write a proposal is clearly superior to one that
yielded no new information.
Timeliness standards include a nything that can be measured
by a stopwatch, clock or calendar, such as the time between needs analysis and proposal
or the time between checking and returning e-mail or voice mail.
Cost standards involve being a good steward of the company's
resources. Such standards can mean refusing to give away too much to get the order,
getting a certain price and not taking smaller, less productive clients on golf
outings.
The standards you choose to measure are up to you and your situation.
Make sure your standards lead to the results you really want.
When you measure the wrong things, you end up shooting yourself in the foot. I have
an anecdote about a Texas radio station sales manager to illustrate this point:
This new sales manager told his staff, "You must be out of the office by 9 o'clock
each morning and you can't come back until 4 pm ." So what did the salespeople do?
They rented an efficiency apartment and put in three phone lines! So the sales manager
was measuring a standard that led to a behavior he didn't want! He should have said,
"You need to be in front of customers from 9 am until 4 pm ." The standard
he set had no basis in reality.
I had another customer who set a standard that his salespeople had to make 10 full-blown
written proposals a week. When I asked him what this meant, he said his salespeople
would scan the client's logo on the cover, make sure it had 28 pages, and drop it
off with the potential client. The problem was, they were 28 meaningless
pages! You need to set meaningful measurements that teach people how to win-not
just create activity for the sake of activity.
Define "hustle."
You need to clearly define what you want your sales team to do. Spell it out in
no uncertain terms. I once did a seminar for a group of fast-food franchise managers,
during which a woman asked, "How can I get a 16-year-old minimum-wage employee to
hustle more?" I explained to her that "hustle" means different things to different
people. It's subjective. If you can't put a problem in behavior terms, then you
don't have a problem-you're just complaining.
The manager said the employee walked too slowly when she went to clean up empty
tables. She added that she wished the girl would at least create a small breeze
when she walked by customers! So I told her to go back and get her to practice walking
by a table fast enough to make a napkin move or rustle someone's hair. Then her
employee would know what hustle looks like! It will have a meaningful definition,
instead of the employer just accusing her of being lazy.
Enforce standards early (or shovel the piles when they're small).
My favorite business line is: "You've got to shovel the piles when they're small."
This speaks to the importance of setting limits and following through with consequences
right away. Suppose I set a standard that by Friday every employee must have at
least seven sales meetings booked for the next week? Well, if I come in on the first
Friday and Joe only has five meetings booked, then I can have a meeting with him
and say, "Look Joe, we have a gap of two meetings here. You need to fix that right
away." This is a small pile to shovel. But what happens if I let it go for months
and Joe has fallen into the habit of having only, say, two meetings booked for the
next week? That's a much bigger pile to shovel. If I don't deal with it right away,
when will I deal with it?
Create monitoring systems that encourage teams to reinforce themselves.
If you adopted a seven-sales-meeting standard like the one mentioned above, you
must create a systemic way to make sure it is enforced. You might, for example,
hold a progress meeting every Friday afternoon to make sure every salesperson has
his or her meetings lined up. If you're too busy to do so, how long do you think
it will take before people start slacking off? But if you do this every Friday,
it won't be long before your old pros are telling new hires they must have seven
meetings booked by the end of the week-because "that's the way we do it here." The
team begins to enforce the standard because it has become part of your high-performance
culture.
Think of discipline as teaching and coaching, not confrontation.
Most people dislike confrontation, which is one reason so many salespeople get away
with poor performance. The manager simply avoids confronting the issue until it's
way beyond critical mass. However, when you have strictly enforced standards as
part of your company policy, it's easier to discipline as a teacher or coach, rather
than as a tyrant. The standards allow you to approach the employee as "you and me
looking at the problem" rather than "me versus you."
Instead of saying "Joe, you lazy bum, you've got to start working harder!" you're
able to say, "Joe, you've only got five meetings set up for next week and our company
standard is seven. You've got two weeks to catch up. What's your plan today? What
are your next five calls going to be? Who in your Rolodex can you call?" See the
difference? You're in a teaching mode, not a confrontation mode.
Create "success-cycle" systems.
When you set high standards from day one, it ensures that even moderate salespeople
will have early success experiences. These successes lead to increased confidence-and
the self-imposed pressure to do it again-which in turn leads to more successes.
And other people in the department see these successes and believe it can also happen
to them. This is the success cycle, and it is a salesperson's-and a company's-best
friend.
Of course, you as a manager should figure out ways to get everyone into the success
cycle right away. Not every salesperson is a strong speaker. That's why I created
a nine-minute multimedia presentation that weaker speakers can use to ensure quick
successes. This is just one example, but you get the idea.
I've seen people who couldn't perform at one company go on to be top performers
in another company. When you implement a success-cycle system, you can probably
save at least half the people who would otherwise become poor performers. Get them
to succeed early, and they motivate themselves.
Develop a strong bench to allow you to get rid of poor performers.
Sometimes, of course, you will decide a certain salesperson is just not salvageable.
When this happens, you must get rid of him or her as quickly as possible. The problem
for many companies is that the sales manager hasn't developed a strong bench and
would rather keep a warm body (no matter how ineffectual) than no one at all. The
solution? Interview regularly. If you're interviewing two salespeople a month, you
will always have a slate of potential employees from whom to choose if you have
to let someone go. And just knowing you're interviewing keeps your team on its toes.
Ask salespeople about their wins.
When I interview salespeople, I always ask them to tell me about their 10 biggest
wins. Really successful people are driven to achieve again and again. They constantly
"raise the bar" on themselves. So by asking them about their wins, you quickly discern
if someone is a winner. If a candidate isn't on a roll with his answer within a
minute, don't hire him. If he can't come up with a substantial number of "wins,"
he's probably not going to be a person who's driven to succeed. This one question
can save you a lot of turnover down the road.
It goes without saying that your salespeople are your most valuable asset. But most
managers don't know how to motivate them. One tip I can offer that sums up all the
others is that managers must teach their salespeople how to win-and to do that they
must teach them the game within the game.
I like to cite the example of University of Wisconsin basketball coach Bo Ryan.
The standard he sets is "points per possession," rather than trying to reach a particular
score. You can't manage a score; you can only manage performance. Ryan knows if
his team scores 1.1 points per possession, they're virtually a lock to win. Points
per possession add up to victory, just like meetings lead to analyses lead to proposals
lead to money. Understanding and coaching the game within the game-that's what creating
a high-performance culture is all about. PPB
An acknowledged leader in sales training, Chris Lytle is also in demand as a speaker
and consultant in advertising, marketing, sales and sales management. His easy-to-apply,
money-generating, career-building strategies are used by salespeople and sales managers
in 28 countries worldwide. Lytle's credits include books, such as The Accidental
Sales person , articles in trade magazines, and audio and videocassette programs
on advertising, customer service, sales and management. To learn more about him
and the APEX Performance Systems programs, tools and speaker availability, call
800-255-9853 or 828-459-9637 or e-mail info@apexperformancesystems.com.