First we posted on the 7 Deadly Sins of Salespeople over a year ago.  Now comes the follow up - leaders, or sales managers.  Each item has a full paragraph explanation to it which I have removed for space.  However, 3 of them warranted the full paragraph:

1. Passiveness

2. Unaccountability

3. Thoughtlessness
Leaders think. They acknowledge they are making assumptions when they make them and that they are considering opinion rather than dress it up as a fact. They do not apply business models from other industries or businesses without considering whether their external operating environment, strengths and weaknesses are or can be made to be similar. They do not use buzzwords without knowing what they mean. They do not use buzzwords without how implementing them will affect their operation, in detail.

4. Affectation

5. Greed
Leaders share. Leaders share the glory of success. They see equity, not as a democratic ideal, but as part of what it means to be fair. They recognise that people need to feel valued to be motivated. They also share the workload and authority, understanding that independence and achievement is a strong reward.

6. Laziness

7. Inconsistency
Leaders are persistent and resilient. They set a goal, devise a strategy and execute the strategy. The strategy is changed consciously. The strategy is not changed unconsciously by reactive decisions. They do not allow their mood or the mood of their subordinates to change what they assert.

Number 7 resonates with me.  I have worked for more than one sales manager who changed courses on almost a daily basis.  I can’t begin to tell you how frustrating that was.  Not only would he change direction, he would change the entire focus (markets, products, marketing, target companies, etc.).

We were selling a high-end software package which exasperated the problem.  It took time to develop suspects into prospects (demonstration-intensive sale) and our market was fairly horizontal (which allowed him to jump into any area).  It is still frustrating to me as I write this almost 10 years after the fact!

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The management landscape is changing drastically as more salespeople move to remote/home offices within their territory.  Yet, many aspects of sales seems to be moving more towards relationship-based sales.  Yes, relationships have always been a key part of selling, but it seems to be the greater piece today.  Information flows freely on the Internet so the differentiation between companies is being pushed onto their salespeople.  So we have arrived at the place where relationship-driven salespeople work remotely instead of at the corporate office.

The strain of this new arrangement falls squarely on the sales manager.  The modern-days sales manager has to work with limitations that were less common just 10 years ago.  The greatest impact is in communication as seen in this Wall Street Journal article:

“It’s about relationships and understanding nuances and building trust,” he says.

Working with distant employees makes that process harder, because you can’t see the subtleties of how people react and it’s harder to create a bond with people you can’t grab a cup of coffee with.

The article then brings up a good point regarding technical aptitude for communicating remotely:

Communicate each person’s role and business objectives regularly, and establish agreed-upon ways to resolve conflicts and solve problems early on, says Mr. Eicher. Find out how technically savvy your remote employees are — and get them trained in technologies you plan to use to keep in touch, he says. Remote employees should be comfortable with voice over Internet protocol, or VOIP; video streaming; and instant messaging.

A remote salesperson without a basic understanding of these technologies will struggle…greatly.  The gist of the article states that managers still have to get out and do the face-to-face time.  This approach is especially critical for newly hired salespeople:

“Having that first face-to-face meeting of the team — building relationships, reviewing roles and performance objectives — better enables far-flung employees to work effectively,” he says. And, he adds, that first meeting can help subvert the hesitation people have connecting with and asking for things from people they don’t know very well.

That is true.  We had a customer hire a remote salesperson who they only brought in to the facility one time.  The salesperson ended up getting lost in the onramping process.  The manager was not available and their was no set structure to the communication.  In the end, the salesperson left within 90 days due mainly to a feeling of apathy from the corporate-based sales manager.

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Salesopedia.com offers a good article this week on a timely topic - How to Shorten Your Sales Cycle.  The author cuts to the quick on an issue we encounter frequently:

To begin with, many sales people just don’t know how long their sales cycle is, we ask and we hear things like “depends” (sometime it fits), “it changes” (it always seems longer during Daylight Savings Time), and the all time favorite, “well you know it’s different in our business”. Well it’s not really.

Underlying this is the fact that many reps and organizations do not know what their sale looks like, they have not deconstructing their sale, identified the basic building blocks to identify and truly understand what it should look like and when efficiencies can be had. One facet of this process is covered in “Working Backwards From Your Goals”

True.  We see this often when we start with a new customer by profiling their sale.  It is amazing how few salespeople can define their sales cycle.  Clearly it varies to some degree, but I always tell them their guess is better than mine.  So how do you fix it?  Simple:

While there are a number of ways to affect the length of the sales cycle, by far the easiest to implement with the highest rate of return, no technology required, is to always secure a next step with your prospects.

This approach really is simple - it just takes a slight bit more effort to accomplish.  Many salespeople end a call or meeting with some form of “I’ll call you next week.”  That’s it.  No clear next step, no future commitment, no clarity.  The better approach is to ask this way, “I’ll call you next week.  One thing, what topics should I be prepared to discuss?”  That short question will do more to qualify an early-stage prospect than any other a salesperson could ask at that point.  Yet, most do not use it.

The author sums up this approach nicely:

In most instances, a next step does not always have to be quantum leaps, just remember that even a small movement forward gets you that much closer to close. But if you don’t secure a next step, have you advanced at all?

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The doom-and-gloom economic reporting continues and as a sales manager it is important to keep a pulse on your team.  More articles are being released on the topic of employees getting skittish about their future with the company.  Bob Rosner offers some good advice for these employees in his Working Wounded blog:

Be careful to not drink the Kool-Aid with coworkers by being hyper-critical about your company’s future. Get an outside opinion. If you work for a public company, talk to a stock broker. A search in our city listed 391 brokers who offer a free consultation. If you work for a smaller company, check with vendors to see if they’re getting paid on time. Don’t stop there — also get a read on your department. Is your budget increasing? Do you work with vital customers? These are great check-ups to see if a layoff could be in your future.

…

Do you like, love or just plain hate your job? If you’re really unhappy, try information interviews with people on a career path that interests you. Passionate people enjoy sharing career tips with others. You could also obtain a skills and personality evaluation to determine your vital signs. Your work decision-making shouldn’t just revolve around your company or region’s vitality — it should reflect your passions too.

There will be plenty of salespeople jumping ship if they find a more secure opportunity.  Now is the time when sales managers have to secure their top talent before they drink the Kool-Aid.  Take the extra time to interact with your team and get a read of their present mindset.

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I’ve been working with a handful of sales managers recently as they onramp new salespeople and I have seen a stumbling block occur more than once.  The issue has to do with the sales manager’s perception of the typical sale.

Sales managers, in most instances, work primarily with large, high-visibility accounts as they should.  The issue that occurs is that the manager starts to view these marquee accounts as the model, or even norm, for all other accounts.  What happens is that the manager loses sight of the history of activities that went into earning that customer’s business.

Rarely do new salespeople fly out of the gate and close a marquee account.  In most cases, they start with “mundane” accounts - typically they are smaller opportunities or smaller companies.  Some will grow into marquee accounts, but most will not.  The advantage is that the salesperson learns about the sale, what objections they will face and how an order moves internally through the company.  These are all valuable experiences for the day they latch on to a large deal.

As sales managers, it is important to realize that the marquee accounts are not the standard for a new salesperson.  This means the salesperson probably does not have an established relationship to leverage.  They do not have familiarity with the customer’s decision-making team.  They are not going to have numerous topics to qualify for many different orders.

Simply put, these salespeople are going to be working less efficiently to earn a smaller deal than the power plays occurring at the marquee account.  I’ve seen sales managers get frustrated over this fact.  Frustration should wait until an adequate period of time has passed.  If the salesperson is still at the same level, then it is time to dig in deeper and attempt to kick-start their efforts.

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Selling Power.com’s Sales Management newsletter provides an excellent article that addresses a common issue in sales management - how do you move from salesperson to sales manager?  One important aspect of this move is becoming a coach for your sales team.

The suggestions in the article are worth the read, but this one is especially remarkable:

Keep questions open. Most managers know they should ask open-ended questions in a coaching situation, but closed questions still crop up far too often. Closed questions can be answered in one or two words – yes, no, good, okay. Open-ended questions, on the other hand, require the responder to think and elaborate and help paint a more complete picture of a situation. Starting questions with “will,” “did,” and “have” will likely lead you into a closed question, warn the authors. Rephrase those questions using words like “what,” “who,” “which,” and “how.” For example, instead of, “Did you check all the requirements?” try, “Which of the requirements most concerns you?”

That advice is applicable to sales qualifying, coaching, candidate screening and more.  Yes/no, or closed questions, lead you into a box where you are forced to ask another question.  Open-ended questions also lead to more detail in the answer.  As a sales manager, this detail is needed to be an effective, efficient coach to your team.

One other piece of advice from the article:

Keep questions forward focused. It’s all too easy for an employee to get caught up in rehashing a meeting or event that went poorly. And while a certain amount of emotional venting may be helpful to that person, your job is to help them avoid getting stuck there. One of the best ways you can keep the conversation forward focused is to avoid asking questions that begin with “why.” If you’re asking, “Why did that happen?” or “Why did you say that?” you put your employee on the defensive and keep the conversation focused on the past. Rephrase your questions in a way that encourages a look to the future. So instead of, “Why didn’t you contact IT?” ask, “What are the things you need to do to bring the project back on track?”

Exactly.  We tell sales managers to avoid using “why” in their questions with their direct reports and with prospects.  As effective as why is, it often carries a negative emotional aspect. Imagine in your youth hearing an upset parent ask, “Why did you do that?”  Or maybe it was, “Why didn’t you…”  Be careful with your use of this adverb, especially with your sales team.

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BusinessWeek.com’s playbook section offers a very short, but highly intriguing article title How Netflix nets and keeps talent.  Here it is in it’s entirety:

PAY LAVISHLY Higher-than-average salaries—and tying bonuses and raises to the market, not a pool—can make stars less likely to bolt. Money is no object in hiring.

PROVIDE COMPENSATION CHOICE Employees are more likely to excel if they can pick how much of their compensation they get in stock rather than cash.

FOSTER TALENT HUNTERS Encouraging everyone to hire the three people they’ve loved working with most during their careers creates an intense, fun workplace.

LET THEM GO Don’t give B performers a middling raise. Give them a decent chunk of cash and show them the door. And don’t surprise them. The laid-off leave with their dignity.

LIMIT RULES They reduce error. But they also stymie innovation. At Netflix, employees are responsible for their choices, even in how much vacation to take

Let Them Go is one we often see in companies…that is they accept mediocrity and do not let B performers go.  In sales this approach is cancerous.  The mediocre performers often have a negative effect on the top performers.

How progressive is Netflix’s management?  Employees determine how much vacation to take?  That is the first time I have encountered that approach.  That is an intriguing approach, isn’t it?

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Bob Rosner has a unique perspective on managing employees in his latest Working Wounded post - Stop Workplace Whining.  The setup:

A study by In Touch asked employees, “Why don’t you speak up at work?” More than 1 in 4 said they remain quiet because “there isn’t a good way to speak up” or “management doesn’t care.” I’ve outlined below three dos to reduce pressure at work and have everyone engaged in the problem-solving process. For more, check out Rant, Repair, Rave on workplace911.com.

I’ll leave the whale example at the beginning of his post for you to read on your own (it is funny and disgusting all at once).

Here is the suggestion I thought had some merit:

Rant. We know what you’re thinking, “Let my people rant at work. Are you nuts?” Trust us, they already are ranting! Why not move it past murmuring whispers and give them a safe way to voice their concerns and challenges? After years of counseling people in the Rant technique, we find it works best when rants are kept under two minutes. Another important guideline here is “do no harm.” Employees should be truthful in their rants, but not hurtful.

“They already are ranting!” is true, isn’t it?  It would take a particularly strong manager to be able to handle a meeting that allows rants.  I like the idea.  I have sat through meetings where individuals (myself included) went on a spontaneous rant.  After the meeting, I was called into the boss’ office and told if I ever did that again I would lose my job.

I ceased all rants (in front of that manager) from that point on.  But my rants continued with fellow employees.

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Lee and I recently attended certification training for one of the assessments we use and found the training to be quite good.  The part that made it memorable is the fact that we were asked to use the assessments in real-life scenarios.  That type of training sticks, according to the Wall Street Journal’s Simulation Shows What It’s Like to Be Boss:

That realistic feeling is a big reason companies such as NetApp use simulations to help train managers in complex subjects such as strategic thinking. Experts say adults absorb information better when they use it, not just hear it.

There is a quote from earlier in the article that is excellent:

“You never have perfect information; you never have enough time,” Mr. Tabloski said. “That was particularly real.”

Isn’t that true?  We see this play out with candidates right now, too.  They have other opportunities.  Strong salespeople are always in demand no matter what the economy is doing.  Some hiring managers want to ruminate about their decision to the point where they lose strong candidates (we’ve had that happen a couple times this year already).

When you are hiring, you never have perfect information on a candidate.  There is always a level of unknown factors that makes hiring so difficult.  But you can have more information than a resume and your gut feeling.

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This is a tough topic because there isn’t a cookie-cutter sales manager template that fits for all companies.  Our experience has been that smaller-sized companies tend to expect the sales manager to carry a significant quota while larger companies expect the sales manager to manage without carrying a personal quota.  The department quota/goals are a different story.

Nonetheless, ManageSmarter.com offers up a well-constructed guide to sales management titled Executive Guide: Improving Sales from Managers to Salespeople.

A point that often gets overlooked in companies is the essence of strong sales management.  This excerpt sums it up nicely:

4. Track where your management team members are spending their time. As previously stated, good managers let their top people operate and focus on turning their “B” players into “A” players, their “C” players into “B” players or managing them out. There should be signs of steady improvement of sales staffers.

That truly is the gist of sales management, isn’t it?  This area is a pitfall for which we have seen more than one sales manager fall into.  The team is not hitting their numbers and the sales manager is expected to close business himself.  If this manager used to be the top salesperson, he or she often will revert to closing their own deals to protect themselves.  The incredible downside to this approach is that the rest of the team continues to falter and fail.

Most of the time there is a culling of the herd when it comes to the salespeople.  The sales manager is usually insulated through a handful of terminations before the Turk comes for them (to borrow a football phrase).

It is for this reason that we encourage our customers to have the sales manager manage the team.  At the most, they should only have a handful of accounts.  Anything more and they will be dealing with customer items disproportionately to improving their sales team.

One last point from the article:

1. Provide managers with information on their salespeople that is systematic and both objective and subjective. It should give them actionable insight into what areas need to be improved and how to do it.

This is an area in which we can help.

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