Friday, September 24, 2010

Are your sales managers PROACTIVE, naive or reactive?

TOP Sales Managers : The PROACTIVE Stage

TOP Sales Managers are great to work for. They are masters at leading from the back, they ask great questions,  they empower their people and they make them successful year over year, They move market share because they grow their business and they they grow their company above market growth, they grow their reps individually and collectively and they grow their team.

From a production perspective, if we agree that at the sales level the difference between an A player and a B player is 1 to 2, what do you think it is between an A sales manager (a proactive one) and a B sales manager (a reactive one) ? at least 1 to 5 – some studies even say 1 to 10 over a period of 3 to 5 years… Now what makes them so good is not that they are perfect, Top sales managers make mistakes too – who doesn’t- but they correct them fast because they have a very efficient early warning system in place. They know how to watch that system and they know how to influence it weekly, daily. I call it the 1+1+1=4 !® system.

 This system is like a 3-legged stool : one leg is their habits another leg is the unique skills they possess and the last leg is their weekly dashboard. TOP Sales manager I have seen follow the right habits, they inspect the right metrics  and they master a unique skill called the « value added inspection » skill.

Their problem if I may say is that there are not enough of TOP sales managers, and they are bound to disappear…because they will eventually get promoted, to Area Managers, VP of Sales you name it. And then what happens? Well, unless they know what it is  that they were doing that made them different, they can’t coach it very effectively. When I was a sales productivity manager in Europe, I trained some of our sales managers in our Federal divison in Washington DC on Sales management best practices which I had learned myself from TOP American sales managers ! – How could that be ?– well the reality is that the best sales cultures sometimes get diluted as successful companies grow and if you are not conciously competent of what you are doing right, you can not coach it downwards and you can not teach it.
Not to mention that if you have a big ego and don’t control it - and in sales that happens sometimes right ?-, you may run the risk of thinking that your success is normal because you are just TOO GOOD. You may start to think that you are the greatest sales manager there is on the planet – the Greatest. ...and that can become a limiting factor to your career.

Some of my TOP clients also ask me to help their top sales managers become more conciously competent so that their best practices become more self sustainable over time through their organization. By the way, that is also the only possibility that you can improve as a TOP sales manager once you understand which of your habits have what impact on your results. I am an Engineer remember?. Well sales management is also made of very simple processes that you can define, measure and improve. And improving a top sales manager by 1% is sometimes worth to a company as much as saving a failing naive sales manager or even improving a reactive sales manager by 50%…If you are good, then 1+1+1=4 !® will make you GREAT once you understand all of the ingredients, how to apply them to your business the right way and how to cook that recipe right with your team.  Then you are able to scale faster and clone yourself more easily by moving up to the next level with solid foundations underneath.

Monday, September 20, 2010

The NAIVE Sales Manager, the REACTIVE Sales Manager and the PROACTIVE Sales Manager


Philippe Le Baron • There are 3 kinds of front line sales managers : The NAIVE kind, the REACTIVE kind and the PROACTIVE kind

Over the last 15 years working with many different sales managers from diffferent cultures and in many different B2B industries I was able to work with some of the best leaders in sales management on the planet especially in my last company at EMC. I call these TOP sales managers the PROACTIVE sales managers, they are the front line sales managers who drive growth, who move market share, who develop TOP sales teams. I was able to reverse engineer their best practices and I created a Recipe that I call 1+1+1=4 !® which I made them aware of too, because they knew they were good but they didn’t know why…and because I am an engineer I see life through processes. So I watched them, I understood them and I created the execution processes which I call the 1+1+1=4 processes.

You can’t get better if you don’t know what it is that you do that really has an impact right...so I helped them become more conciously competent so they could improve no matter how good they already were, and I defined for them what I call the sales manager productivity metrics.

I have also seen normal/average sales managers at work - also at EMC by the way - and I also understood what it was that they were NOT doing that made them struggle and WHY. I call these sales managers the REACTIVE sales managers. This is still the vast majority of the sales management crowd today, it is such a tough job that being able to survive is usually already good enough, especially in a tough economy like today. The reactive sales managers work like dogs but they can not grow their business significantly above the market growth. I help REACTIVE sales manager understand how the right processes bring to them the 3 keys to growth thanks to Key 1. The right habits, 2. the right dashboard and 3. the right skills that they now need to apply to new clients called their reps.

Now, If you have worked with sales managers long enough you know that among all people you can’t tell any sales manager anything especially in the reactive stage they are too busy and too often in firefighting mode or even sometimes in survival mode, but you can help them think differently so they start behaving differently: that is what I call the « whispering » effect.

Finally I have witnessed and helped many RISING sales managers who were being promoted from top sales performer to first level sales manager and I also understood why the transition for them was so hard to make. It had little to do by the way with their skills, but a lot more with their habits. Great sales managers have in common many of the same skills than sales people have, because if they don’t they can’t survive long. If you don’t believe me just put a TOP Manager with excellent management skills but NOT coming from sales, in charge of a couple of hungry sales people and see what happens… I remember a great sales manager form Siemens who was used to managing a couple of hundred consultants and project managers- he indeed was an excellent manager and he indeed failed within 6 months trying to manage just 6 sales reps…because he underestimated the challenge and because he lacked some basic selling skills– he got killed like many others in the NAIVE stage-

Sales Management has unique challenges because sales people are unique people to manage and you can't wing it long as a sales manage : you need a system, you need a process. to lead your team successfully, whether your sales managers are in the NAIVE stage, in the REACTIVE stage or in the PROACTIVE stage.

More to come if you are ready to do a deep dive into each of these 3 stages in the life of a front line sales manager.

Now another way of looking at it is there are 3 kinds of sales managers :
The managers who want things happen, the managers who make things happen, and the managers who wonder what happened...

Wednesday, September 1, 2010

Value Added Inspection - YOUR Difference as an Effective Sales Manager

Doing the thing right: Value added inspection skills.
Value added inspection is the "ART" part of Effective Sales Managers : It starts by setting expectations, and then by inspecting what you expect. We will focus here on the inspection part, and mostly on the « value added » part of these inspections.
The value added inspection, whether it is performed during the forecast process, during a one2one process, or during a deal review process, relies on one very simple tool :  your questions.
The same way you want your reps to ask better questions from your customers, you need to ask great question from your reps. You need to find the "holes in their cheese", and then you need to help them fill these holes thanks to your own value add.
The choice of your questions will mainly depend on what you are trying to achieve and who you are trying to influence.
A struggling Sales Manager  will handle business in a way that  is unpredictable, and is reflected, in the long term, by consistent  inaccurate forecast (too optimistic or too pessimistic, either way reflects poor control of the business). Because he does not ask the right questions.
A better Sales manager  will handle business in a better way so as to provide a more accurate forecast, but consistently below goal, which reflects good “drill down” skills, and good scrubbing of his Reps’s own forecast, but also can reflect  little influence on his people by coaching them into filling the gap with the revenue goal. He asks better questions, but provides little help and leaves his reps alone with their cheese full of holes.
An Effective Sales Manager does both by identifying gaps between forecast & goal, and then by getting her people to act at filling this gap and eventually making things happen to make/beat goal. She does it thanks to her value added inspection skills.
Value added Inspection skills are   a unique tool & technique, for a Sales Manager to get control of his business and of his people. This is a skill, when applied to the right processes, that can make the sales manager/sales rep relationship a WIN/WIN situation for them and for their district .
A good use of this technique can lead to empowerment of your people, and then to district success at beating goal. 
This is therefore a very important skill  and technique that every Sales Manager learns usually from his manager (by being inspected this way, you get to inspect the same way, it becomes part of the family ties…). You can be better prepared for your 121 with your  reps, by asking better questions, by driving consistent behavior change from your team.
A value added inspection question cannot easily be defined, but here are a few tips when you prepare those questions :
it is often an open question (What, when, where, who, etc…)
it is a question that is meant first and foremost at provoking reflexion by the recipient ( the deeper the reflexion, the better)
it is a question that is uncomfortable to answer and often can not be answered quickly 
it is a question which main goal is actually not to get an answer, but to transfer the question into the recipient’s head, for him to think, to change his way of looking at things, and to act upon it
It is a behavior changing tool, more than an “answer getting” tool
Examples : 
When did they last call you ?
Why would they buy from us ?
What would make them decide to buy now ?
...
So ...
what are your questions for your next meeting ?
and
...why these questions ?


Friday, August 27, 2010

How to Become an Effective Sales Manager

Mr Cellophane is a Sales Manager reviewing the forecast of  3 of his reps, and each one of them is forecasting 1M$. His forecast is therefore 1+1+1 = 3M$, which is fine because it is Mr Cellophane’s  goal this quarter.
Mr Cellophane is a transparent Sales Manager, he adds little value to his business and to his reps,  Mr Cellophane has poor control over his business, and by the way,  he will miss his forecast and his goal by 400K$...
Ms Drilldown, in the same situation, inspects her reps thoroughly, asks them “tough” questions about their deals and about their activity. Thanks to her inspection skills Ms Drilldown is more predictable than Mr Cellophane : Ms Drilldown will forecast and will achieve 2.6 M$ this quarter.
The Problem is that Mr Cellophane and Ms Drilldown’s both missed goal...
Only Mr Stretcher will forecast and will drive his team to overachieve the goal. Mr Stretcher is a  successful Sales Manager who consistently applies “LA FORMULE”  : 1+1+1=4!™
Which Sales Manager would you like to become ?
A struggling Sales Manager  will handle business in a way that  is unpredictable, and is reflected, in the long term, by consistent  inaccurate forecast (too optimistic or too pessimistic, either way reflects poor control of the business)
A better Sales manager  will handle business in a better way so as to provide a more accurate forecast, but consistently below goal, which reflects good “drill down” skills, and good scrubbing of his Reps’s own forecast, but also can reflect  little influence on his people by coaching them into filling the gap with the revenue goal.
An Effective Sales Manager does both by identifying gaps between 4cast & goal, and then by getting her people to act at filling this gap and eventually making things happen to make/beat goal. She does it thanks to her value added inspection skills.
Great Sales Managers always ask themselves  before a 1-to-1 with their rep: What do I want to achieve today with this rep, What behavior change do I want to drive, What questions do I need to ask ?, How must I ask those questions in order to be effective ?
Only YOU  have the answers, or should I say, the questions…

Wednesday, August 25, 2010

Sales Management Outsourcing is in sight

Not so long ago, sales as a profession was  looked at as an art;you “had it” or you did not “have it”. Sales people were mostly trained internally. Xerox, IBM, DIGITAL EQUIPMENT and so on were training their new hires extensively both on their products and on how to sell them. And there was only one way to sell - their way. 
Then slowly, as time went by everyone agreed that whatever industry you were in, sales was also a process, a science, a numbers’ game. You had to make a proposal in order to close a deal,  you had to have a first appointment in order to start a sales opportunity, you had to prospect to get a first appointment, etc...Then suddenly a whole new world opened: 
You could start measuring and influencing the effectiveness of the process. How many appointments did you need to close a sale? What was your bid/win ratio? Why was this opportunity outside of the length of your usual sales cycle?
You could start developing your sales people by looking at their ratios, identifying their strengths for each step of their process : farmers/hunters profiling began, external sales training companies started to train on sales skills, on the sales process and on sales reps assessment. 
Finally, because processes can be measured, because we can define the inputs and outputs of a process, companies started looking at cost effective ways to  completely outsource some of those processes to outside experts who could do it cheaper, better and faster.
Lead generation and appointment making companies became the outsourcers of the prospecting activity for their clients. With a good script related to your business, the right metrics for appointment generation and skilled people trained on cold calling/ marketing, you could totally outsource the first step of your sales process. 
Now what if what was possible for sales people then is becoming possible for sales managers now? what if your front line sales managers could also follow a process instead of just “winging it.” 
What if we were able to actually identify the best practices of successful sales managers and understand what it is that they do that makes them consistently blow past their number. What if we could track on a daily basis the effectiveness of their habits? what if we could reverse-engineer some of these habits and turn them into processes with clear inputs/outputs and  metrics (sales manager productivity metrics). 
Then a whole new world would also open to sales managers and to small business owners who could outsource some of the SM processes that they neglect to an “assistant coach” - a part time sales productivity manager, who could make their dream of having everyone making goal becomes a reality.

I see this happening already, it's only a matter of time and of processes...

Tuesday, August 24, 2010

WHY TOP Sales People Can Become TOP Sales Managers

These days, I am getting tired of all these articles and discussions I see where the main point seems to be  “STOP promoting your best sales people to become front line sales managers. You are making a huge mistake. Top players never make great coaches. If you are a great sales person then you are doomed to become a lousy front line sales manager because sales people are “wired” differently than sales managers...etc...etc...”
It sounds like the better sales person you are, the less chance you have of being successful as a sales manager because these 2 jobs supposedly require very different skills...
I have seen many sales managers fail at making that transitional step and there was a time I was tempted to think this analysis had some substance, but today I could not disagree more.
Over the last 10 years, the skills I have seen the BEST sales managers apply with their team to drive growth and successfully assess and influence their reps on a daily basis are PRECISELY the same skills they were using when they were selling to their customers : questioning skills, listening skills, and influencing skills.
The other thing I hear all the time is that TOP sales reps are the worst coaches which is why they can not become TOP sales managers who need to be excellent at coaching.
Again, I could not disagree more today.
Great sales people and great sales managers have a lot in common, including coaching skills.
If you are a TOP sales person today in a VALUE selling environment,  there is a great chance you are a master at CONSULTATIVE selling because this has become the only way for you to survive as a sales person in this buyer’s market economy.  You can’t push your solution fwd,  you have to make it fit into your prospect’s problem and you have to discover these problems first (which is why you need to be a great questioner and listener, ...)
Well, guess what ? Coaching is all about consultative selling. Renowned Author Steve Schiffmann, America’s corporate sales trainer and author of numerous sales books, says that his definition of selling is “finding out what your prospect does, where he does it, when he does it, how he does it, who he does it with, why he does it that way and then - and only then- helping him/(her) do it better”.
Well, my own definition of coaching (a rep) is  “finding out what your rep does, where he does it, when he does it, how he does it, who he does it with, why he does it that way and then - and only then- helping him/(her) do it better.”...
Sales managers need to apply the exact same skills as sales people, but to very different clients...their REPS!
The main reason TOP sales people do not always become TOP sales managers is not because of skills mismatch, it is because of PROCESS mismatch and lack of TIME  and SUPPORT before, during and after the transition into the new job.
Managing, or leading sales people, is not about managing your reps’ sales process, that should be your reps’ job! For you as a sales manager there is a whole new dimension and a whole new process by itself that will eventually help you manage  yourself more efficiently on a daily basis.
The process of leading sales people is something that most sales managers and their own managers do not fully grasp yet. Without help from their VP sales guiding them to apply the same skills (their strengths at selling) to very different habits (sales managers habits) and to very different clients (their reps), RISING sales managers’ only hope is leading by example as their best coaching technique  and you are left trying to get a mom teaching  her kids the habits of brushing their teeth by showing them how well mom brushes her own teeth (good luck ...).
Sales management has unique management challenges  because sales people are unique people to manage and the ART of influencing sales people -to do something different-  is the same as the ART of influencing prospects -to buy-. If you don’t believe me, try hiring  an “experienced manager” not coming from sales and put him/her in charge of a couple of hungry sales people and see what happens...
Sales management, however,  is also a SCIENCE - the science of sales management productivity - and as such,  has its own processes and therefore its own metrics to help sales managers stay on track. 
Now, the good news is that the art of leading sales people can be mastered and the science of sales productivity can be taught. The recipe is simpler than you think. Cooking it right starts with the sales manager : it requires focus from him/her on understanding, practicing and reenforcing these new habits with his/her sales team and ends with dedicated support from his/her VP of Sales in terms of time, coaching and budget for external help when needed (that’s me...).
So if you are a very successful sales rep who wants to become a sales manager for the right reasons (not because your ego only demands it, that’s not good enough...), then don’t lose hope because YES, you certainly have the skills to  do it and if  you benefit from the right support  it is worth becoming a TOP  sales manager instead of just an average one : the rewards for you and for your company are : a team who is ready to follow you anywhere because you make them successful year over year and +50% to your TOP LINE (difference actually measured with the comparable performance of average sales managers (also called reactive firefighters...)).
So, who wants to start cooking?
PS : The recipe for “HOW TOP sales people become TOP sales managers” -  available here
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