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five principles sales team leadership
the of
Brandon Hull David Hoggan http://www.brandonhull.com http://www.salesteamtools.com
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Introduction
Here you sit, reading this e-book. You want more success for you and your local sales team. You know in your head that you need to spend your time focused on tasks and projects that will yield the biggest, fastest return in sales. But you feel overwhelmed about what to specifically do. That will come as you build your people to succeed. There are only a handful of principles that you need to master in order to make sales happen through your people, apart from assembling or recruiting the team itself. And while that doesn’t make following through on the assignment of making sales happen any easier, it can make your personal focus and view of the big picture much more manageable. We’ve formatted this e-book with a wider right margin so that, when you print it out to study, you can jot your own notes about the principles, how they apply to you, and how they apply to individuals on your team. As a side note: a free audio companion is coming soon build on these principles. By registering to receive this e-book, you’ll be automatically notified when that presentation is available.
The Five Principles of Sales Team Leadership
There are many things sales managers feel they must do to develop and nurture their sales teams. And while many focus — even get held up — on minor, specific to-dos, there are really five basic principles you need to follow in leading your team: 1. 2. 3. 4. 5. Know your people. Spend time with them in the field. Study and know their selling ratios. Meet face-to-face each week. Watch how you talk.
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The temptations are there to look beyond these marks…to burn time reporting up the chain, to perfect your sales reporting forms…to overanalyze notes and details on individual accounts in your CRM software. But the reality is, you master these five principles, your team succeeds. Your goal is to increase the percentage of individual sales reps who are well above plan, so that you far exceed your plan as a field sales manager.
Principle 1: Know Your People
Over the years, I’ve personally found that people rarely perform well in a sales position unless they are absolutely committed to the results that can come. And while each person is different, the following are some reasons why they would commit: 1. The results have great personal meaning to them — they either help them earn something meaningful, or avoid something painful. 2. The results have great meaning to someone they care about deeply. 3. The results alone are of such significance and magnitude that they alone inspire commitment. But again we know that not all people are the same. Each of us grows up differently. We have different motivations, different expectations of ourselves, and different definitions of success. We come to this world with certain predispositions — we’re hardwired in some ways. Some of us are motivated to do whatever is necessary to achieve success, some are not. Some of us start fast and fall fast. Others are more methodical, but once they catch on, can’t be stopped. Some are workaholics; others are on the constant, never-ending search for balance.
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I really like what Jim Rohn says about motivation: “Motivation is a mystery. Why are some people motivated and some are not? Why does one salesperson see his first prospect at seven in the morning while the other sees his first prospect at eleven in the morning? I don’t know. Call it ‘mysteries of the mind.’” So, why would someone commit to achieve their personal sales goal for the week, month, quarter, or year? Because it helps them achieve something else that they want badly. And how do you find out what is important to another person? You ask them. You talk to them in terms of what is important to them, not you or the company. You uncover what a person thinks about, dwells on, hopes for, and passionately desires. Some of the questions you could ask are: • • • • • • • • • • • • Why did you join the company? What do you hope to achieve? Why? Tell me more about that. What are some of your long-term aspirations? What do you hope to accomplish in the next year? Where do you see yourself moving on from your current position? Do you feel you are successful today? Where do you suppose your internal drive comes from? What have you taken the most pride in during your life? Why? If money were no object, what would you really like to be doing? How do you spend your free time? How do you measure success? How would you like to distinguish yourself?
This is your starter list. Of course, you don’t play 20 questions with your team members. You don’t rapid-fire the questions at them. You don’t “get through” a checklist of questions. The questions emerge in your face-to-face conversations, during ridealongs, and before or after the selling day. And the motivations you hear will vary: The Five Principles of Sales Team Leadership -4-
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• • • • • • • •
I want to get out of debt. I want to buy a new home. I want to buy a new car. I need to save for my children’s college. I want to allow my family to enjoy whatever activities we like. I want my spouse and family to think and know I’m successful. I want to be able to travel. I want to know I’m the best in the company.
Now, as you have conversations with your sales professionals, these answers need to be logged somewhere in your mind or your personal notes. And as you earn these answers, you begin to know what drives your people. You know what’s on their mind. Knowing your people is the first principle to becoming a results-oriented, people-developing field sales manager.
Principle 2: Spend Time with Them in the Field
I’ve learned many things about developing relationships with the individuals on my sales teams. Some lessons I’ve learned the hard way, by first alienating people or taking them for granted; for others I’ve applied lessons from a strong model and mentor who showed me the way ahead of time. But one thing I’ve learned for certain, through experience, is this: The biggest indicator of how much you care about your team members will not be in what you tell them, but in how much time you spend with them. And that care is the basis for your relationship and credibility with them. Now, this may be the most important lesson in this entire e-book. In this day and age, we are going so fast to accomplish so much that we routinely forget how to treat people. So, let me repeat that in big, bold letters that you can cut out and paste somewhere:
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The biggest indicator of how much you care about your team members will not be in what you tell them, but in how much time you spend with them. And that care is the basis for your relationship and credibility with them. A Little Context is Good When a sales representative’s only contact with you is over the phone, they will ultimately feel isolated and alone. You’ve got to know this — whether they’re a new rep, a veteran, a low-performer or high-performer, they need regular contact, in the field. And the reality is, they need to know that you’re not only willing to lecture them on how to improve, but willing to show them as well. Demonstrating what you want them to learn and do is the key element. Telling someone does not help. People remember better when they actually see someone else do the task, and have a chance to perform it with immediate feedback. Not only that, but when you want someone to modify behavior, you need to show them and talk to them in an environment that is conducive to change. Sitting in your conference room or at a Starbucks is not the place. On the phone is absolutely the wrong time and place. Finally, when riding with a sales professional, always remember to reinforce their commitment to learn and to change because of the goals that are important to them (see principle #1); and to achieve these goals on time. If people don’t change, the results often won’t either! So, How Much Time Should You Spend? This is a trick question. The amount of time you spend with a sales rep in the field will vary with their level of experience and expertise in your industry and company. The newer they are and the less expert in certain skills, the more of a model they need to follow. The key is to ride along often enough
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that you can let them learn and develop a skill multiple times, so they can demonstrate progress to you. Again, telling people what to do just doesn’t work for most people. We’re visual creatures. We need to see the skills performed with our own eyes in order to truly know how to do them. Plan Ahead of Time A successful ride requires a pre-plan by you, the manager. What did you discuss in your previous rides? What specific commitments did you each make? What stories do their numbers tell? Has this all been logged someplace? How can you reward them for the progress you’re going to see? You’ve got to remember that this time together must make a difference, it’s not just to “spend time together.” Your goals and objectives should zero in on one or two skills at most that you can train towards. How the Ride Plays Out Once you’ve gotten together, you should talk for at least a few minutes beforehand. Collaborate with him or her to set specific, measurable goals and objectives for the day. Talk to them about your confidence in them, and remind them of why they’re a good fit for the position they’re in. Everything said in this time before the ride should be positive and uplifting. Once you’ve started making calls, follow this simple pattern: • • • • Talk about the behaviors you want them to master, Demonstrate the behaviors more than once, Recap what you did or didn’t do after the call, then Allow them to demonstrate them for you on other calls.
Try to avoid “rescuing” your sales professional from a poor call, let it be a learning experience.
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One Last Tip Though both you and your sales representative should recognize the purpose of this ride, it’s good management etiquette to ask their permission to “coach them” before offering criticism or advice. You might even specifically say, “Okay, how do you think that call when, as far as what we’re focusing on today?” Once they’ve answered, if you’ve got specific advice to give them, simply say, “Can I coach you on that?” They’ll answer yes, which locks in their attention, and you can share with them your ideas. If you want the individuals on your sales team to strengthen their skills and confidence, while you enhance your credibility with them, spend time with them in the field. It is the best use of your time as a sales manager.
Principle 3: Study and Know Your Selling Ratios
At Salesteamtools.com we target our message at sales managers and professionals in high activity selling industries. Particularly in high activity selling, selling percentages and averages matter. You may not think they matter, but they do. We call them ratios. Ratios tell you the objective story behind the emotional one you tell yourself, or you tell your sales manager. So, they’re the real story behind the story you get or the story you tell yourself. If you track the right numbers, ratios tell you where you’re bogging down — or flat-out failing — in your sales process. As your sales calls and appointments increase, you make the ratios rules in and of themselves; they’re a constant reality check. If you never track them, you will forever be a slave to the vague guidance to “make more calls” or “work harder” or the increasingly trite, “work smarter.” The sales professional who tracks her numbers knows what specific skill-
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aspect of the process she needs to develop. The sales representative who doesn’t is subject to the quotes in this paragraph. They key, then, is collecting the right data over time, benchmarking and publishing across your team and organization, and in conducting one-on-one coaching sessions with reps. Many companies require their sales representatives to report some of these numbers, most do not publicize the “best of…” numbers across their organizations. For the life of me, I can’t figure out why this is. New Business Metrics & Ratios In tracking your new business development efforts by telephone, it’s important to track these activity and skill ratios at a minimum: 1. Total number of calls, contacts, and appointments set. 2. Average cold calls per “phone block” (period of time dedicated to appointment-setting). 2. Phone contact ratio (percent of cold calls resulting in live decisionmaker contact). 3. Phone appointment ratio (percent of contacts that result in new appointments set). When it comes to face-to-face selling, it’s a good idea to track these: Average cold calls weekly. Average number of contacts with decision-makers. Average first appointments completed weekly. Average presentations weekly. Average closes weekly. Presentation ratio (percent of first appointments that result in presentations). 6. Closing ratio (percent of presentations that result in closes). 7. Average closing size (average revenue per close). 1. 2. 2. 3. 4. 5.
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There are obviously many more you could track, but you’ve got to be careful about overanalyzing your numbers to the detriment of time spent in the field with reps and asking them questions to get more details. Again, it’s the trend line you’re watching with objectivity. The ratios tell you volumes more than the stories you tell yourself by just looking at results or guessing about a sales professional’s weaknesses. Add the dimension of benchmarking across your team or organization, and you can see with no difficulty who your best performers are in the various skills involved in selling. As you sit down and discuss performance and pipelines with your individual sales professionals, you can zero in on specific areas where things just aren’t going right. And referencing your benchmarks and standards as a company and you’ve got a self-contained training system. Meanwhile, if you’re an individual performer reading this who tracks his own ratios, you have the perfect self-management tool to help you get to the next level. Download our free activity reports by becoming a newsletter subscriber at http://www.brandonhull.com/register.html. It will help you track your weekly numbers and automatically crunch your averages and ratios.
Principle 4: Meet Face-to-Face Each Week
Studying the numbers does you no good if you’re not giving your people feedback on those numbers. It’s crucial that you meet one-on-one with the members of your local sales team each week. Good communication is important to every person, team and organization. Overwhelmingly, people prefer to meet face-to-face with their supervisor on topics of most importance, rather than receiving written messages or voicemails. And accountability can’t happen via email. In order for these face-to-face meetings to be successful and behaviorchanging, but somewhat efficient, you should discuss:
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1. 2. 3. 4. 5.
What happened the previous week. What’s coming up this week. What commitments are ongoing. What skill development will occur this week. Your belief in them.
What Happened the Previous Week How did the person perform versus their sales plan? How was their sales activity versus your team or company minimums and targets? What events occurred last week that need further understanding? Who did the sales professional meet with that you’d like to visit personally? How “hard” did the sales representative really work? Is there a trend, from week to week, on Mondays or Fridays or any other day? Depending on how frequently you collect activity numbers, you can answer most of the questions there. But you’ll also need to dive into specific accounts visited to ask the right questions about the appointments and overall sales process. What’s Upcoming This Week Does your sales professional have a detailed gameplan for the current or upcoming week? Is it in writing? Can they convincingly walk you through it? Do they expect to remain over quota, or get over quota, or at the very least demonstrate the activity necessary to start the process in getting back to quota? What is YOUR plan if there’s a big NO to the previous questions? What upcoming appointments are crucial ones that you need to attend? What prospects do you need to begin strategizing on with your sales professional? Can the rep foresee anything that might derail the week? This part of the meeting is your insight into whether your sales representative “gets it.” If they’re just trudging through their weeks, hoping the magic happens, they (and you) are dead in the water. If they are hoping for a plan to be handed down to them by you, they are only slightly better off, but still de-
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pendent. When they know what they need to do and are willing to do it, and can communicate that to you, they’re locked in. What Commitments are Ongoing If your sales professional is behind the eight ball, and you’ve got specific activities they have committed to doing to get back on the yellow brick road, make sure you know exactly what those commitments are and how they’re performing. Don’t let a weekly meeting go by without accountability. It’s the missing link in many peoples’ lives, but don’t let it be missing from your sales team. What Skill Development Will Occur This Week Whether you’ll be doing one-on-one training, group training, and/or you expect your sales professionals to dedicate a certain amount of time to their own skill development, review that in this meeting. This reinforces your commitment to them and your expectation that they commit to invest in themselves. Your Belief in Them Whether you hired them or not, they’re on your team. Believe in them as long as you can. Believe that they chose the sales profession for all the right reasons. Believe in their commitment. Believe in their skills. Believe in their honesty. And let them know you believe in them. Tell them why you do, as you look in their eyes. Give them the confidence, as you close the meeting, they may need to bridge the gap between what they know they need to do and what they feel they’re capable of doing. Of course, all of this flies out the window if you’ve got an uncommitted, flat-dishonest sales rep on your team. Final Thoughts There are a host of reasons why you hold these face-to-face meetings each week. Accountability is one. Building a strong business relationship with each individual is another. Teaching your sales professionals how to manage themselves or even to become a proactive sales manager is yet another. If you avoid holding these meetings, you are neither in the loop as to what’s
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really going on with your sales team nor are you able to define what steps need to be taken to course-correct. If you rush them, you alienate your people. The value in meeting face-to-face each week is immediately beneficial and powerful.
Principle 5: Watch How You Talk
Perhaps the most oft-overlooked component of local sales team management is simply how you talk to people. Set aside the sarcasm, the condescending glances, the rhetorical questions, and the cutting and demeaning remarks. Your job as a sales team leader is to build people. To help them accomplish more than they thought they were capable of. As Henry Kissinger has said, “The task of the leader is to get his people from where they are to where they have not been.” How you talk to people demonstrates how you really feel about them. Words may affect them mildly, but your body language and tone of voice speaks volumes. Use words that uplift, encourage, inspire, challenge and build confidence. Make statements that remind them of what you see in them. Offer suggestions that help them tap into their existing strengths and personality traits, rather than stress them out as they focus on their weaknesses. Always remember that you cannot manage your results as a sales manager. You can only manage the activity of those you serve and lead. And, in the words of Dale Carnegie, “The only way to get someone to do something is to make them want to do it.” Watch how you talk to people. Bring out the best in them. Help them to develop the self-confidence they’ll need to be ultimately self-reliant. Build. Encourage. Strengthen.
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One Last Thing
We’re ready to help you teach these principles to your sales team nationwide. Give us a call to discuss your next regional or national sales conference. You can trust in a professional-but-casual, engaging, challenging, uplifting, fun, interactive presentation and meeting with your team. For more information, contact me at: Brandon Hull 9211 SW Ivory St. Beaverton, OR 97007 503-521-9397 http://www.brandonhull.com
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