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					Pegasus Sales Inventory
 The Hiring Advantage
 Pegasus International, Inc.
   Predicting Employee
       Performance
   The PSI Hiring
     Advantage
Bridge to Your Future
What Business Are You In?

   Your key to prosperity?
         John D. Rockefeller
• Paraffin
• Naphtha
• Lighting Oil



• Transportation
• Railroads
                 Ray Kroc
• Hamburgers
• French Fries
• Milk Shakes



• Real Estate
                   Google
•   Providing an internet “Search Engine”
•   Providing online maps
•   Providing an email service
•   Providing stock and financial market data

• Advertising
            Zappos/Amazon
•   Shoes
•   Books
•   Music
•   Movies and Games

• Customer Service
       Life Insurance Company
•   Life Insurance
•   Final Expense Insurance
•   Pre-Need Funeral Insurance
•   P&C Insurance
•   Annuities

• People
• Investing in the Right People
• Building Relationships with those people
PSI
          Successful
        Sales Managers
 • Invest wisely in People.
 • Know as much as possible
   about the candidate,
   Before Hiring.
 • Then build Relationships.
PSI
          Successful
        Sales Managers
 • Invest wisely for retirement.
 • Know as much as possible
   about the stock or bond
   Before Placing the Buy Order,
 • & beginning the Relationship.
PSI
 A Psychological Sales Aptitude
         Assessment?

  Decision: to test or not to test
  Small Costs,   Large Benefits
                 from using a good test
PSI

 Objective Measures
      Avoid
       accidentally
       picking “green
       apples”
PSI
      In Minutes vs. Months
    The PSI “Hiring Advantage” Predicts
•   Overall Sales Aptitude
•   “Call Reluctance”
•   “Closing” Aptitude
•   “Networking” Capacity
•   Achievement Orientation
•   Motivation: Real Interest in Sales
•   Retention
PSI
               Hiring Procedures
      The process
        Identifying a need for a new sales agent
        Finding sales candidates
              how to find and
              how many per opening?
        Initial Screening of candidates
        Formal screening of candidates
        Short list of potential sales recruits or agents
        Assessing sales strengths and weakness
        Hiring a recruit or agent
PSI
      In Minutes vs Months
  The PSI “Hiring Advantage” Predicts
• What is “Call Reluctance”?
• What is “Networking” Capacity?
• What is “Closing” Aptitude?

• What is Personality?
PSI
           More Questions

  How many angels can dance on the head
            of a pin? (St.T.A.)

  How many worlds can fit into this room?

          What state are you in?
PSI
                  Personality
 • How we perceive events in “our world”
   and react to them (caught him in a good mood)
 • Behavioral-Emotional activation systems
         • FEAR   • PANIC        • SEEKING
         • ANGER • PLAY          • Social
         • CARING                  Dominance
 • Understand people by identifying their
      – Typical “State” of mind and
      – What challenges they respond to and how
PSI
          Affective Neuroscience
The greatest revolution in understanding people since Freud
 • Call Reluctance is the PANIC system:
   separation distress, rejection sensitivity, take
   rejection personally, low social independence
 • Networking is the PLAY system: desire to
   engage others positively, people-oriented, fun
 • Closing Aptitude is Social Dominance:
   leadership, competitive, driven, willingness to
   probe conflict areas, ask sensitive questions
          Life Insurance Sales Job

• Describe the job
  –   Sales activities
  –   General duties (work irregular hours)
  –   Source of new customers (referrals/cold calls)
  –   Required sales skills (social skills)
  –   Likely income
  –   Potential income
   KFC Franchise Owner/Manager

• Describe the job
  –   Management activities
  –   General duties (work irregular hours)
  –   Source of new customers (referrals / promotions)
  –   Required skills (social skills)
  –   Likely income
  –   Potential income
         Life Insurance Sales Job

• What level job is offered? (Start up?)
• What is the potential income of a Life
  Insurance sales agent? (top 10% U.S. income - 112k 2009)
• What is the initial investment cost to the Life
  Insurance applicant?
• How does the Life Insurance opportunity
  compare to a franchise opportunity?
• Conclusions?
PSI
               Decision Matrix

      Do not    Correct         Type II Error    Which Error
      Hire                      false negative   is more
                                                 costly?
                                                 What are the
      Hire     Type I Error      Correct         costs?
               false positive
                                                 Conclusions?


                   Fail          Succeed
                   (real world outcome)
PSI

Increase your odds of hiring
successful people using
a Selection System with
 Objective Measures and
 Applicant Flow
 Not “Hire & Hope”
 PSI
Selection
System
Do not attempt to
 replace selection
 with training
  may never reach proficiency
  at best a long learning curve
With the PSI Form K,
  Pegasus Further
Separates Itself from
  the Competition
     Designed to Predict
       Sales Aptitude
The Pegasus Sales Inventory remains
 exclusively dedicated to sales.
Probing micro areas especially
 relevant to sales success
Form K is the 10th significant
 improvement of the PSI since 1984
More predictive and difficult to fake
 than ever
Form G PSI and Sales Production
         Life Insurance Production, N=803
 20000
 18000
 16000
 14000
 12000
 10000                                      NETCR
  8000                                      GROWTH
  6000
  4000
  2000
     0
           LOW     MOD     HIGH    V HIGH
           N=163   N=321   N=231   N=88
    Form G PSI Score and Sales Production:
     Net Increase for Months 4 through 15
        Predictive New Agent Sample.
PSI much more predictive than the Manager’s Rating
 25000

 20000

 15000

 10000                                          Mean Increase

  5000

    0
         PSI     PSI   PSI   PSI   PSI   PSI
         6-11   12-14 15-16 17-18 19-20 21-25
                PSI Form K
        PSI Scores by 2008 Income
        224 Experienced Sales Employees
70000
60000
50000
40000

30000
20000
10000
    0
        Low/58       Mod/82    High/46         V High/38
                        PSI Scores
         PSI: 0-13   PSI: 14-17   PSI: 18-19   PSI: 20-24
                PSI Form K
        PSI Scores by 2007 Income
        137 Experienced Sales Employees
80000
70000
60000
50000
40000
30000
20000
10000
        Low/34       Mod/47    High/31         V High/25
                        PSI Scores
         PSI: 0-13   PSI: 14-17   PSI: 18-19   PSI: 20-24
2010 NCAA Basketball Tournament
Wins By Seeding After First Round
   14
   12
   10
    8
    6
    4
    2
    0
        13 to 16   9 to 12    5 to 8    1 to 4

        2010 NCAA Basketball Tournament Seeding
2010 NCAA Basketball Tournament Wins
      By Seeding After First Game
 Teams Winning First Game


                            4


                            3


                            2


                            1


                            0
                                16 15 14 13 12 11 10 9   8   7   6   5   4   3   2   1

                                     2010 NCAA Basketball Tournament Seeding
2011 NCAA Basketball Tournament Wins
      By Seeding After First Game
 Teams Winning First Game


                            4


                            3


                            2


                            1


                            0
                                16 15 14 13 12 11 10 9   8   7   6   5   4   3   2   1

                                     2011 NCAA Basketball Tournament Seeding
      E N C M Y SIK S O E
2008 M A IN O E B P  C R
100000


      80000
2008 Income



      60000


      40000


      20000


              0
                  7   8   9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
                                   PSI FormK Scores
            C M Y SIK S O E
     2008 IN O E B P   C R
140000

120000

100000
                                                                       Max
 80000
                                                                       Mean
 60000

 40000                                                                 Min
 20000

         0
             6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
                              S
                             P I Form K Scores
  A Steeper “PSI Score” Trendline shows the
PSI Delivers Superior Agent Retention Prediction
                  P    SI etention by Test Score
            2010 C vs P R
                   100

                             80
               % Still Employeed

                             60

                             40

                             20

                                   0
                                       2 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19
                                       10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
                                                   P
                                                  C Score          SI
                                                                  P Score
    Note: There were no retained agents at PSI Scores 10 & 11 and also none at CP Score 2
    Also, the PSI Retention Index predicts long-term agent retention better than the PSI Score.
               Percent of All New Agents Passing
                   State License Examination
                       Comparing Passing Rates
                 for Ranges of PSI Trainability Scores
      ew gents P
     N A          assing License Exam           ew gents P
                                               N A           assing License Exam     ew
                                                                                    N Agents Passing License E  xam
     Trainability Scores From0 to 7            Trainability Scores From8 to 11      Trainability Scores From12 to 17

                                                                                                      Fail (3.33%)

                                                                    Fail (30.30%)

ass (45.45%)
                           Fail (54.55%)

                                           Pass (69.70%)

                                                                                      Pass (96.67%)
     $AVE over half the
        DOLLAR$ and
  Headaches associated
 with licensing new agents
  by simply hiring agents
    with raw Trainability
   Scores higher than 7.
PSI

        Building Relationships
            Social Bonds
      • An Essential part of being Human
      • The Mammalian Legacy
      • Natural Ancestral Bonding Mechanisms
Affective Neuroscience Personality Scales:
Primary Emotions and Related Concepts (Panksepp, 1998)
                              SEEKING/INSPIRATION
                               Curiosity and Exploration
                               Pursuing possibilities
                               Anticipating
 CARE/DEVELOPING OTHERS        Excitement about future     PLAY/FUN
  Helping others                                            Having fun
  Nurturing                                                 Rough and Tumble
  Sharing with others                                       Physical contact
  Valuing others                                            Joking around
  Kindness & Empathy                                        Ribbing, playful teasing
  Feeling sorry for others   Hexagon of                     (friendship bonds)
  (for those in need)        Primary Emotional
                                 Feelings
     FEAR/FLIGHT                                           PANIC/SADNESS
      Worrying                                              Sad or blue (Psychic pain)
      Anxiety                                               Feeling social rejection
      Avoiding/Timid                                         (need to be included)
      Stress Sensitive        RAGE/ANGER/FIGHT              Feeling shunned/lonely
      Excessive Vigilance      Frustration                  Feeling - depressed
      (low risk taking)        Irritability                 Attachment Needs
                               Annoyance                    (to be liked/valued by others)
                               Criticizing others           (whining and complaining)
  PSI
        Relationships and Retention
        Office Agent Survey Responses vs.
          Actual Office Agent Retention
                      (top 5 survey items)
Relat   • I trust my immediate manager.
Relat   • My immediate manager does what he/she says he/she is
          going to do.
Inspi   • The atmosphere in my office encourages challenging
          traditional ways of operating.
Relat   • My immediate manager has my interests as a priority.
Relat   • My immediate manager tends to "coach" me through
          problems, rather than just giving me his/her solutions.
 PSI
        Relationships and Retention
        Office Agent Survey Responses vs.
          Actual Office Agent Retention
                     (next 5 survey items)
Relat   • I have confidence in my immediate manager.
Relat   • The office I work in is a fun place to work.
Relat   • I receive regular feedback on my sales performance from
          my General Manager.
Inspi   • Office meetings are positive and motivational.
Relat   • My immediate manager is a good listener.
PSI
          What is NOT Included in
           These Top 10 Items?

      •   Compensation or Benefits
      •   Sales Training
      •   Opportunity to Help Customers
      •   Opportunity to Work Independently
      •   Mission and Vision
      •   Quality of Life Insurance Policies
PSI
 Should the Life Insurance Industry spend
more time and money selecting and training
    Sales Managers than Sales Agents?
    •   Ability to Build Trusting Relationships
    •   Capacity for Helping and Developing Others
    •   Strong Coaching and Listening Skills
    •   Talent for “Keeping Work Fun”
    •   Positive and Inspirational Motivator
    •   Open to Innovation
 PSI
        Relationships and Retention
    Office Admin Staff Survey Responses vs.
         Actual Office Agent Retention
           (second highest survey item predictor)

Relat   • The office I work in is a fun place to work.
  PSI
         Office Agent Survey Responses vs.
        Actual Office Agent Sales Production
(7 of top 14 survey items, 6 more were Relationship or Inspiration Items)
Relat    • My immediate manager does what he/she says he/she is
           going to do.
Relat    • The office I work in is a fun place to work.
Inspi    • The atmosphere in my office encourages challenging
           traditional ways of operating.
Relat    • I trust my immediate manager.
Relat    • My immediate manager has my interests as a priority.
Relat    • I have confidence in my immediate manager.
Relat    • My immediate manager tends to "coach" me through
           problems, rather than just giving me his/her solutions.
PSI
 Should the Life Insurance Industry spend
more time and money selecting and training
    Sales Managers than Sales Agents?
• Yes! And,
• Need to understand the personalities of these sales
  managers that retain agents and generate more production.
• Also need to know how these gifted sales managers
  impact agents
• How can Life Insurance companies that “contract” with
  agents build stronger social bonds with those agents?
PSI Hiring Advantage
 The Bridge to Your
    Sales Future
    Additional Services
•   PEG Leadership Assessment
•   Sales 360 feedback
•   Personality 360 feedback
•   3602 Leadership Training
•   Executive Coaching
•   Employee Retention Surveys
•   Customer Satisfaction Surveys
•   Call Center Selection Testing
•   Affective Neuroscience Personality
    Scales
     Pegasus Evaluation Guide
• Relied on by senior management.
• Comprehensive assessment of leadership
  potential.
• Highlights strengths and weaknesses and
  opportunities for development.
• Critical information for promotions and
  succession planning.
                                     Plot of Assessment Ratings with Mgt Ratings
                                 6



                                 5
Unstandardized Predicted Value




                                 4



                                 3



                                 2



                                 1
                                     0    1      2       3        4       5      6   7


                                              Management Promotability Ratings
       G ognitive A
     PE C          bility Rating
vs Management Potential Rating, n = 71
              5
PEG Cognitive Ability Rating



              4


              3


              2
                               2 (12)   3 (11)   4 (18)   5 (12)   6 (18)

                                              gt ot ating (n)
                                             M P R
        G ocial Insight R
      PE S               ating
vs Management Potential Rating, n = 71
            5
PEG Social Insight Rating



            4


            3


            2
                            2 (12)   3 (11)   4 (18)   5 (12)   6 (18)

                                           gt ot ating (n)
                                          M P R
    G             om
  PE Leadership D inance R    ating
vs Management Potential Rating, n = 71
             5
PEG Leadership Dom. Rating



             4


             3


             2
                             2 (12)   3 (11)   4 (18)   5 (12)   6 (18)

                                            gt ot ating (n)
                                           M P R
     G m
  PE E otional A djustm  ent Rating
vs Management Potential Rating, n = 71
              5
PEG Emotional Adjust. Rating



              4


              3


              2
                               2 (12)   3 (11)   4 (18)   5 (12)   6 (18)

                                              gt ot ating (n)
                                             M P R
     G ocial R
   PE S       elationships R ating
vs Management Potential Rating, n = 71
             5
PEG Social Relations Rating



             4


             3


             2
                              2 (12)   3 (11)   4 (18)   5 (12)   6 (18)

                                             gt ot ating (n)
                                            M P R
    PEGASUS
The Bridge to Your
  Sales Future

				
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