Applying new approaches to an old team

written by: Adele Crane; article published: year 2008, month 02;


In: Categories » Business » Management » Applying new approaches to an old team

Can you increase the performance of a sales force when they already seem to be working hard? The team are making quota but can they still deliver significantly more growth without burning themselves out? Through the numerous business reviews I have conducted, I have identified the following traits as common issues within the Selling Function where past practices are being followed.

• Budgets can be achieved with 35% fewer salespeople or in three working days. The other two days of the week are nonproductive through misguided activities.
• The low-value accounts are excessively over-serviced, without intervention from sales managers.
• Customer acquisition is ad hoc and sporadic, usually attracting lower range customers with a view to building them.
• Customer accounts are not maximized to achieve full value from them, particularly where companies sell a range of products.
• Non-selling tasks heavily outweigh actual selling time.
• Salespeople are equipped with traditional selling tools, and in many cases insufficient tools, particularly for new business acquisition.
• Selling practices do not reflect the buying practices or preferences of the customers.
• The skills of many sales forces fails to meet a reasonable level that would support new business acquisition or sustain customers in rapid market change.
• Documented procedures and knowledge that support the selling function outside of document flow are non-existent or minimal.

These are all traits that have been carried on and unchecked by executives as they are considered to be ‘the way sales forces operate’. Their source can only be presumed to be past incumbents or traditional teachings from a bygone era or maybe a lack of exposure to other professional sales forces. They may have grown with the business comforting in its success to date, so there is no need for dynamic change. The remedies of these problems, if identified, usually become points on a wish list but how differently would executives think if they realized what opportunities and revenue are being lost through inefficiencies! Regardless of past successes, new products and competitors are continually succeeding your business however the pressures of this are not usually felt until a few years down the track when it is too late.

Challenging the most fundamental tradition in sales forces shows where potential gains through implementation of efficiencies begins. Over the years, a strong tendency persisted within organizations to operate sales forces based on the individual’s knowledge and longevity – notwithstanding that this long-held knowledge is not actually recorded anywhere, allegedly because there is too much of it to document. ‘Knowledgeable’ long-term sales personnel have been traditionally perceived as making a high value contribution and one that must be respected and retained. They did not require systems nor reviewed efficiencies as they ‘knew what to do’. Directors felt comfortable with a person deemed to be the industry expert; the industry stayer with many years of nurtured relationships to draw on to support the sales effort. They have been part of the company for such a long period of time that they cannot imagine any other method of operation existing.

Salaries and resources are being stretched, customers are loyal and business is great but top line results are still not showing and new business is more difficult to secure. You then realise that your sales force have control of your business through the knowledge, relationship and ‘know-how’ they tacitly possess on operating your business. Departures are now the greatest threat to your business security.

How do you address the problem? What approach is needed to extract this tacit knowledge amicably? Attempts to gather information or make changes are met with hostility and defensiveness. How do you move forward in commercially realistic time frames?

I have noticed that these change-resistant sales individuals are often lacking in real sales ability and have purely survived through business longevity. Well behind in sales education and current practices, they are the main cause of stagnation. Scary as that may sound, you will find there is only one or two real sellers in the team and the rest have been over reliant on longevity and products that had a good differentiator in the early days.

In one assignment, I remember having to counsel the distraught owners of a company that their business would not suffer if the sales people left tomorrow. Despite their anxieties, they downsized their team from 16 to 5 people. Funnily, sales commenced to increase for the next 90 days as new hires were employed. Initially the sales were attributed to the previous team’s effort in the monthly sales cycle however sales kept increasing as months went by. The new hires were equipped with new approaches in account management including the improvement of customer-supplier relationships. The company achieved 47% growth with strong profits in the next twelve month period with only 11 sales people. Now that’s sales force efficiency!

How was it achieved? Through the immediate implementation of measurement systems and Sales Intelligence, all contributing factors to the selling function could be tracked and effective decisions made. Systems of best practice conduct with accounts and planning tools were installed and how sales people should operate in the market. Everyone was consistently trained to those new methods. The standards of the company’s expectations were set in every detail of each staff members’ role. The team was then trained in how to sell in their specific market and given tools that would ensure new business acquisition. Customers were provided with new opportunities to assist their business with a sound business case that they embraced.

Careful and timely implementation of the right tools, knowledge systems and information that is required to manage a successful and professional sales force proved to not only deliver efficiencies and bottom line savings but considerable top line growth. Organizations have reported that with the implementation of integrated world class systems and processes, they experience a 20-25% increase in results with improved profit.

Adele Crane, world renowned business consultant is the best selling author of “Improving Sales Force Efficiencies, a book which takes you through what well defined systems are, knowledge management and how you can face the challenges of improving your organisation to be a low risk formidable competitor. It is a practical resource for its logical and valuable insights into many of the fundamental barriers that organisations place in front of themselves which stops potential growth. As a business consultant specializing in cultural change and knowledge management, Adele has 20 years experience in the diagnosis of businesses and individuals that contribute to change. Adele’s ability to deliver significant change and deliver growth above 25% in 90-120 days is so far unprecedented. “Improving Sales Force Efficiencies” is available through www.amazon.com in Europe and USA or directly with Sales Focus International www.salesfocusintl.com .

©Copyright 2008 Sales Focus International

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