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One Third Of CEO’s Are Worthless In Sales

Those aren’t my words but rather the findings from a Selling Power survey.  From the article:

A recent Selling Power online survey found that 29 percent of sales leaders judged their CEO useless when it comes to creating a sale.

Almost one third and I think I have worked for all of them!  The savvy sales CEO is a rare bird indeed.  Of course there is more to the article than just this survey.  The author focuses on the customer experience as seen through your salesperson representing your company in the market.  This representation is critical in making a successful sales hire – you have to envision the salesperson selling for your company.  Will they represent your company well?  Do they convey the right image, manners, professionalism?  These are not trifle matters when dealing with sales.

The same can be said for you CEOs.  The company’s culture flows from the CEO downward into the entire team.  CEOs who undervalue sales often struggle with teams that follow suit.  I’ve seen these companies first-hand…they have an engineering culture, a finance culture, a manufacturing culture…everything except a sales culture (which I would argue is the most important of them all).

I leave you with a prime example from the article:

A CEO whose company credo states, "We believe in candor and open communications" complained about how hard it is to communicate with salespeople. He said, "I can’t rely on their forecasts, I can’t rely on their data in our CRM system, and I can’t make strategic decisions based on their input." What happens when the CEO responds to salespeople with doubt or skepticism? The CEO’s doubt impacts the salesperson’s experience with the company, which inevitably echoes back to the customer.

Do Great Salespeople Make Great Managers?

That is an age-old question, isn’t it?  You can insert your favorite sports example here which typically involves a superstar/Hall of Fame-caliber athlete who fails as a coach because the game came too easy to him.  But does this analogy work in the sales arena also?

This Sales & Marketing Management article approaches the topic with aplomb. The pull quote (emphasis mine):

Sometimes great salespeople aren’t as good at coaching and managing other people – they’re excellent at being individual contributors, they’re great at building relationships with customers and working deals from start to finish, but they lack the patience or coaching ability or intangible interpersonal savvy to be responsible for other people’s performance.

Intangible interpersonal savvy is a long way to say empathy.  In assessing sales candidates for over a decade, some patterns become evident.  Top salespeople are typically “hunters.”  These hunters hopefully have some empathetic skills, but they are often used solely as tools to get to a close.  And in so doing, the hunters will usually dial down their empathy to achieve their goal of winning the deal.  This ability is what makes them so effective as a salesperson.  They drive themselves to succeed and use their empathy, when needed, to simply get a read on the prospect before closing.

Now place that profile into a sales leadership role.  This hunter may have some empathy, but they use it within a limited scope.  When it comes to coaching their team, they drive on them – pushing the salespeople based on the inner drive they possess as hunters.  Sometimes it works, most times it doesn’t.  I’ve even seen other hunters push back against this leadership.

The author of the article offers 3 strong ideas to assist in finding the right sales leader.  I like his summary from the first point:

Many of the best salespeople love to work alone – they pride themselves on being great individual performers and goal setters who hold themselves accountable for excellent results. However, sales management is not an individual job – it’s all about coaching and communicating and helping other people reach their goals as part of a larger team.

Sales leaders have to work through their team.  What often happens is that the hunter turned sales leader will accompany his or her team on sales calls and actually end up doing the close for them.  They insert their drive into the deal since that skill is more familiar to them than the coaching skill.  I evaluated an entire sales team once that had a hunter sales leader who behaved this way.  The sales team learned to simply get appointments, softly qualify them, then bring in the hunter sales leader to close the deal for them.  This is an unsustainable model as was eventually born out at this company.

One closing thought – you do not have to guess at this behavior – it can be assessed with our tools.  If you are interested, please contact us today to learn more.

Forming, Storming And Norming Teams

That is how teambuilding occurs according to the Tuckman model and I agree.  Assessing entire sales teams provides me an inside view at teams and how they function and this model plays out consistently.

This article covers many interesting topics with a focus on creativity killers.  Creativity is difficult to measure or assess, but there are things a sales leader can do to help foster creativity.  From the article (emphasis mine):

It’s easy to look at models like that and think that cohesion and friendliness should be the ultimate goal. But surprisingly, when it comes to creativity, the best teams fight a little (or even a lot). Structured, task-oriented conflict can be a signal that new ideas are being submitted to the group and tested. If you team always agrees, that might suggest that people are self-censoring their ideas, or worse, not generating any new ideas at all. Research suggests that teams that forgo traditional brainstorming rules and debate over ideas as they’re presented end up with more and better ideas. As a leader, it may seem like your job is to break up and fights, but don’t be afraid to act as a referee instead — allowing the fight over ideas to unfold, but making sure it stays fair and doesn’t get personal.

Exactly.  The best sales teams I assess have a little bit of fight to them.  They are not cookie-cutter clones that generate some sycophantic affirmation to every new idea offered up in a team meeting.  No, instead they tend to have a rollicking good go regarding new ideas.  They test them, challenge them, argue about them.

The important component to this “storming” team is a sales leader who actively referees the discussion.  These leaders are open, thoughtful and decisive in handling brainstorming sessions.  I have had the luxury of sitting through these meetings at customer conference rooms and I am always amazed to watch a strong leader empower his or her team to challenge the status quo and, at times, attack sacred cows of the organization.

If you are looking to develop your creativity-fostering skills, I would strongly encourage you to read the entire article.

The Singular Difference Between Introverts and Extroverts

Stereotypes abound around introverts and extroverts-most of them are simply untrue.  The stereotypes go too far in categorizing behaviors.  Part of the issue flows from the Myers-Briggs and its binary assignment of introversion/extroversion.  You are simply one or the other…completely, according to that tool (of which I am not a big fan).

This article provides a succinct, accurate definition based on Jung’s work:

Shyness and being outgoing don’t have anything to do with it; it’s more about where we get our energy from. In fact, the differences are pretty simple:

  • Introverts get exhausted by social interaction and need solitude to recharge.
  • Extroverts get anxious when left alone and get energy from social interaction.

That’s it. There’s nothing about shyness, being a homebody, or how adventurous you are. Both types can be social, both can creative, both can be leaders, and so on.

Remarkably simple, is it not?  The binary issue still exists as there truly is a spectrum to introversion/extroversion.  People tend to vary, or move, between them.  Jung called these people “ambiverts.” This is key in leadership.  People definitely have a preference and lean towards one side or the other.  But rarely do you find someone who is categorically wired one way, though there are some.

I often tell leaders to focus on the energy of the salesperson.  Some gain energy in the group while others lose it.  Neither one is better, just be cognizant of the difference and you will be a more effective leader.

Cultural Qualifying

I ran into an old coworker, whom I consider a good friend, at a coffee shop this Friday morning.  He is the VP of Sales with 75 or so direct reports.  His company is international with a majority of their revenue occurring in Asia.

He was telling me about sales training he held for the entire sales team.  The focus was on negotiating and, more specifically, how to ask the right questions to qualify the opportunity.  The Asian sales reps balked at some of the questions based solely on their approach to qualifying.  Let’s just say they prefer to take a more passive, unquestioning approach which leads to prayer rug forecasts and lower revenue.

Obviously there are some cultural issues when it comes to qualifying.  Anyone who has been to Japan knows that there are certain formalities you have to follow to honor your counterparts.  However, I would argue that the qualifying issue is an individual issue.  At the risk of sounding overly simple, sales is a difficult profession that requires a skill set that is uncommon to the majority of the population.

The training that my friend provided was not provocative, excessive nor “risky.”  It was simply communication made clear by a sound questioning strategy.  This approach is the essence of qualifying.  It spans cultures.  It leads to the important point that if you are attempting to hire stronger salespeople, you must incorporate an assessment to get an x-ray of the salesperson’s abilities.  Do they have the right mix of talent and motivation to ask the difficult questions required for successful selling?

If you are looking for a solution, we can help.

Leadership During Uncertain Times

“Strong opinions, weakly held” is the mantra from this Harvard Business Review article.  Actually, the article provides 3 excellent leadership suggestions:

Get emotional.

Be whimsical.

Express doubt.

Now those 3 items, in terms of leadership, should pique your interest.  In case not, here is an excerpt from each topic:

Get emotional – More than purpose or perks, employees value heartfelt moments of connection that meet their needs as social beings.

Be whimsical – By exposing their idiosyncrasies, passions, and whims, bosses can make themselves more human.

Express doubt – “Employees, more than ever, are individualists. Leaders, in response, are learning to be less the visionary, less the sage, less the objective-setter, and more the shaper, the connector, the questioner.”

Leadership is changing, and maybe every generation states that.  To me, it simply seems that “employees” are becoming more individualistic, more independent which is driving the need for 21st century leadership that straddles the chasm between leading and managing.  This article provides 3 salient suggestions for any modern-day leader.

As they say, read the entire thing.

The Importance Of Accountability

I harp on this topic frequently, but it is a foundational need for all strong sales leaders.  You must hold your people accountable to reach goals, close deals and follow your system (a broad word that entails your requirements for performance).  The key is to simply do it…you don’t have to be “good” at it, but you do have to do it.  Many sales leaders miss this important point.

So I give you this Selling Power article with a comprehensive view of this accountability need for all sales leaders.  The author makes a significant point that often gets overlooked by sales leaders who like to use the stick before the carrot.  First the accountability piece:

3) Hold your team and each member accountable for goals.  You don’t have to threaten your team members to remind them that they’re responsible (to you and to one another) for meeting the goals they set.  Instead, inspire their best effort by reminding them of their importance to the team and company.  Tell them you’ll hold them accountable for succeeding because you have faith in their ability to get the job done.

Well said.  And to go further, you will have to discipline the underperformers.  Do not skip past this requirement.  Now for the part that I have seen some overzealous sales leaders dismiss (emphasis mine):

4) Be supportive.  Meeting sales goals is a team effort, and you’re an important part of that team.  You can’t make the calls for your salespeople, but you can give them every chance to succeed by providing your support and guidance.  Remind your salespeople that you’re on their side, and that you’ll be available to help them in any way you can.  If you’re going to hold your salespeople accountable for meeting their goals, you have to hold yourself accountable for helping them.

Absolutely spot on.  You have to help them in the manner in which they need help to develop and succeed.  Don’t close deals for them.  Don’t read them the riot act and not help them.  Don’t go silent with the underperformers.  You have to be a coach right in the middle of the huddle helping call the plays that will lead to their success.  Anything short of that and you are not holding up your end of the leadership equation.

Tracking Sales Reps 24/7

A sales executive was fired for deleting an app on her cell phone.  The details from the Fox News story:

A sales executive was fired after she deleted an app on her phone that tracked her every move, allowing her employer to know where she was 24/7.

It was only a matter of time until this type of issue surfaced.  My personal take is that tracking her 24/7 is an incredible invasion of privacy and her actions were the same ones I would have chosen in that situation.  However, let me throw this at you from the former Judge quoted in the article:

Judge Andrew Napolitano said that in the case of this traveling saleswoman, her employer had a legitimate interest in knowing where she was going, and that was the reason for the app.

Judge Napolitano added that she had no right to delete the app, but she could have disabled the phone while she was at home, on vacation or otherwise on her own time.

Ok, he is familiar with the legality of such things.  I am still shocked, but I suspect this isn’t the last case we have heard regarding this topic.  For now, here is a very interesting, if extreme, workaround from the article:

Where do you put your phone when you don’t want anyone to know where you are? Gretchen Carlson asked.

“You ready for this? A refrigerator,” Judge Napolitano said. “No signal can get in and no signal can get out.”

6 Practices of Innovative Companies

From the Herman Trend Newsletter:

BCG also highlights six practices of the most innovative companies and explores how those practices have played out at innovation leaders across a range of industries:

1) Get the customer involved early.

2) Use data to drive tough decision-making.

3) Think strategically about tradeoffs.

4) Ensure senior leadership commitment.

5) Envision innovation as a holistic system.

6) Optimize intellectual property to create value.

I think that is a spot-on list.  I was drawn to number 3 – think strategically about tradeoffs.  In dealing with smaller, entrepreneurial companies, I see the founders often fail in this area (fail to the point of liquidating).  It is critical to think strategically (i.e. objectively) when setting course or changing direction in an innovative company no matter what size.

Overpaid Jobs?

I grow tired of these comparison articles that look at pay for positions based on the median.  It is almost impossible to compare roles across companies, markets, industries, etc.  However, there is always one position within a company that takes the main blow…CEO.  I’ve been fortunate to work with quite a few highly-skilled CEO’s and been provided the opportunity to see their typical day.  The CEO position is extremely difficult even in the “easiest” of positions.

So here comes Salary.com with The 8 Most Overpaid & Underpaid Jobs.  And, of course, CEO’s are one of the overpaid positions.

A good CEO helps an organization meet its goals, improves profits, makes shareholders happy, and is worth his or her weight in gold. Unfortunately, bad CEOs seem to be worth their weight in gold too. And the really, really bad ones are paid astronomical amounts for the inconvenience of being fired. With this sky-high median salary, it doesn’t seem unreasonable to expect pay-for-performance.

Really?  Pay-for-performance isn’t in play for CEO’s?  How about news anchors on failing networks?  Or movie actors involved in multiple flops?  Those are huge salaries for people who do not head up companies that employ 10’s, 100’s or thousands of people.  Most are adept at what they do and are handsomely compensated for it.  I’m not sure why that is a stumbling block for so many people.

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