Drooling Hail

All companies are in constant need of aggressive, creative and resourceful salespeople to have their products specified, accepted and used by customers. Without informed and capable field salespeople, no distributorship could hope to compete in the marketplace today.

How often have any of us stopped to consider the fact that good salespeople, the kind who can help a company really grow, don t just happen to come along by chance or fate. There is no such thing as a born salesperson, because selling ability is much more than an intangible given that a person either has or doesn t have.

Selling does require certain attributes in a person. He or she should, for example, be basically outgoing in manner and capable of making a genuinely favorable impression almost immediately. Also, the person must be intelligent, able to grasp ideas and details easily, retain them and recall them for use whenever necessary in selling situations. These factors and many others relating to personal and emotional characteristics are contributing elements in the makeup of the successful salesperson.

Non Performance —- Now What?

So, all that being said, what do you do when one of your sales people just isn t performing up to standards? The key to answering that question is determining the cause of the non performance. Start by reviewing the obvious. A sales person must have adequate tools, resources and leadership to maximize their effectiveness.

The review process is a critical component of sales effectiveness. This review should occur monthly for regularly performing sales representatives (reps) and even more frequently for those reps that are under performing. This review enables the sales manager and the sales representative to discuss, plan and measure success. In addition to possessing and capitalizing on certain natural talents and traits, the review process should encompass the following issues:

1. Knowledge of products, customers and customer organizations. 2. Skills in the application of this knowledge. 3. Development of a favorable attitude as it pertains to that knowledge and those applied skills. 4. Review of all Target Growth Accounts, Prospects and Long Term Target Accounts 5. Review of all opportunity reports or lack of 6. Review of specific territory objectives including sales to plan and gross profit to plan

Instructional Guidelines for the Under Performing Review:

I. Preparation

The sales representative (sales rep) and the sales manager should prepare ahead of time by reviewing territory objectives. Preparation should include reviewing personal performance on each target account, opportunities, sales to plan and gross profit to plan. A quick checklist of what went right and what went wrong for each objective will prove very helpful during the review.

More and more, the sales rep is becoming all things to the customer. Pressed for time, customers tend to require quicker and more complete answers to their inquiries, and they look to the salesperson to provide solutions, not just products. Selling skills tend to center on the ability of a salesperson to translate product features into customer benefits as they apply directly to the prospect s problems. This in effect is the value proposition.

Lastly, a generally positive attitude is necessary to promote the maximum and optimum use of knowledge and skills in the selling situation.

II. Attitude Is the Foundation

It is agreed that the attitude of the sales rep is a key factor in their success. It is really the foundation for success. The critical question then becomes how to ensure that the best possible attitude exists on the part of the non-performing rep. If the individual is not receptive and has a poor attitude to begin with, very little can be done to create an atmosphere conducive to learning. This attitudinal problem must be corrected before another step is taken. If it can not be corrected then termination may be the best answer for both the rep and the company. However, don t give up too soon. Sometimes the devil you know is better than the devil you don t know. In other words, turnover is very costly. Besides, if it is something you as the sales manager or something about the culture of the company that contributes to the employee s attitude and lack of success, then termination will only temporarily solve your problem.

III. Fundamental Steps to Address Attitude Issues

There are a number of fundamental steps that can be taken to improve the attitude of the employee. Some of these are:

1. Encouragement of maximum participation in sales meeting and other training opportunities. 2. Creation of enthusiasm by demonstrating support and enthusiasm. 3. Creation of confidence in the program by providing support and resources 4. Giving success examples documenting case studies 5. Asking thought provoking questions (without prying into their personal life) with the hope that they will open up and allow the exploration that points to the real cause of their poor attitude and non performance 6. Personal skill development training that addresses people skills

If you can discover the cause and correct the attitude issue then hope exists for this employee. The proper attitude at the very least can help you determine if this employee is worth the investment of your personal coaching time, additional training and the deployment of other company resources. If the root cause of the attitude problem can not be determined and corrected, probation and termination certainly enter into the equation. Sometimes we just don t hire right and need to correct our mistakes.

IV. Is Training the Issue

Generally, if you are good at the hiring process, non-performance can often be traced to a lack of or improper training. The training program should be designed to achieve maximum participation on the part of the sales rep; as much time as possible should be devoted to realizing this goal. This is especially true if you need to set up a special training program to help a non-performing rep. It has been proven time and again that active participation in sales training is one of the most effective methods of developing both an attitude for learning and an attitude for successful salesmanship.

V. Coaching for Non-performance To help a poor performer the coaching process would include these five steps: Define the Situation Clearly - gather facts and identify performance results. Don t sugar coat this or pull your punches. It is important that the rep understands the critical nature of this process and the necessity to improve on performance.

Counsel - meet with the rep and make it clear that your goal is to help them improve their performance. Avoid blaming, reprimanding or delivering ultimatums. Show support and a belief that you can help the rep improve their performance.

Ask the Sales Rep Many times the sales rep knows better than you do how to solve the problem. Get their opinion on what they think they need to change. Don t command an answer or give them instructions on what to do. Help them find the answers with your guidance

Develop an Action Plan Together Focus on the activities that are necessary to create the expected results. Make sure the plan has clarity; it s all encompassing, comprehensive and achievable. In other words, look for short term wins and set up success milestones to encourage the rep to be persistent.

Continuous Review Once you have established a success plan it is essential to establish regular follow-up meetings to monitor the activities and make course corrections when necessary. This review process is outside the scope of the normal territory review process as it should occur much more frequently (perhaps even on a weekly basis).

Take It Seriously — When a sales rep is under-performing, the manager needs to hold them accountable. In some cases it may be necessary to reestablish expectations. However, if the expectations are not unreasonable and all the other reps seem to be able to meet expectations and additional training and coaching just isn t working then Termination is a decision the rep himself makes for the sales manager. It s usually better for the rep, better for the manager and better for the company. That is exactly why this process must be taken seriously.

The sales manager is not personally responsible for sales. However, he is directly responsible for the development of the sales force which generates sales growth. The sales manager is charged with the responsibility of setting proper expectations, developing systems to track and record sales activities and results and eliminating any excuse making when results are not achieved. A sales rep cannot perform without knowing what is expected of them. Expectations spell out what is required to succeed, and believe it or not but the majority of sales reps do want to be held accountable. The single biggest key to success is desire and desire dictates attitude. Unless the sales rep has an internal burning desire to succeed, nothing else matters.

Many smaller businesses have advanced beyond back office automation using PCs and client-server IS platforms. More owners are looking at advanced sales automation software as a way of improving the productivity of their sales force as well as customer satisfaction. Salespeople are often more resistant to using PCs compared with those working in finance, logistics, materials management and other functions. Thus, business owners need to sell the benefits of automation to both their sales managers and reps. Sales has long been considered more of an art than a science, which explains part of the resistance. Also, some businesses find themselves with older reps who, though they have critical industry knowledge, did not grow up with computers. You could just load up each rep with a laptop and all the accoutrements: sales management software, including automated fax and e-mail capabilities groupware for proposal and contact information sharing templates for contact reports and follow-up letters product, price and delivery information that can be called up via an intranet link. Why not let them discover the value for themselves? There’s a good reason: Throwing sales automation software at the reps is no guarantee it will be used. Sales automation software has been growing of late, with close to $300 million a year in revenues. There’s a reason: improved functionality and user-friendly features geared to what the reps consider their priority needs are the reasons behind the recent spurt in sales. Before pushing sales automation on your reps and territory managers, conduct an audit within the company. Here are some key steps to take: Ask your reps what they consider to be their three priority tasks in the field. Ask for their recommendations on how to improve their productivity. For example, which tasks are taking longer than they would like, or what are the bottlenecks they face in getting prompt and accurate information to prospective as well as current customers. Involve all of your key functional managers in a discussion of the order management and order fulfillment processes. Although sales force automation can begin with discrete tools such as contact management software, your business may really need a more integrated and more robust information systems architecture that will improve the entire order-to-delivery process chain in the company. Decide whether you should try to improve sales productivity as a single function or carry out a more extensive overhaul of your business’ IS platform. When you survey vendor offerings, involve end-users in the discussion and trial testing of the software. Many off-the-shelf products allow sufficient customization for your needs. Some of the tools have more open-ended integration capabilities with other IS tools, and it is important to know how much integration is possible. You want to avoid investing in another legacy system that could end up walling sales off from other business functions. Finally, even when software tools and other IS enhancements are the right solution for boosting sales productivity and customer satisfaction, that is no guarantee you will get buy-in from the sales force. You need to motivate use and experimentation. Besides involving end-users in the discussion and evaluation of software choices before you commit to a vendor, there are three other steps you can take to assure that your reps accept the new system: 1. Assure the sales force that the time required for getting up to speed on the software will not reduce their income if they fail to make their sales numbers at the customary level. However, set a fixed period of time for the conversion to the new system. 2. Monitor the productivity payoff among the committed users, with before and after comparisons of their sales productivity. Productivity measures should not just focus on goods or services sold but include discrete task productivity, at least initially. For example, the time it takes to get letters written, or get correct pricing information out to customers. Then, communicate the benefits throughout the sales organization. 3. Go with a software vendor or systems integrator that will stay on board well beyond the installation to provide additional customization of the tool and training if needed.

The precise definition is Customer Relationship Management, in reality it means changing the focus of your business to become customer centric. Funny thing about that statement is most organizations believe they are already customer centric. Yet a great percentage of businesses both large and small haven t committed to building long term relationships with their customers.

After being in the CRM industry for ten years, here is my definition: CRM is about engineering your company, it business processes, departments, workflows, customer service, and marketing, products and business intelligence for the benefit of increasing customer loyalty, and longevity. A properly implemented system can offer a ROI of up to over 900% or more in a two to three year period.

Let me say that CRM is not a box of software, some computers and a telephone. It is not a task you hand to your IT/MIS department and say lets do this!. CRM requires a knowledgeable consultant to help design, implement, customize, the CRM tools, and help train your staff on how to use the system.

An immediate analogy is the CRM consultant is much like the architect of home. It is spending time with the clients, learning the lifestyle of the customer, how the home will function, what amenities, d cor and the esthetics, and of course budget of their clients. It is only then the architect will develop a blueprint, and maybe a model of the house.

You can try to build your house without a sound blueprint, and you may even end up with something that sort of looks like a house, but oops what happened to the second bathroom? What happened to the garage? Well you get the idea. It certainly wouldn t be considered a good house.

I got my start in CRM at an early age. I worked for a finance company that made small loans to mostly blue collar families in Indiana. Our particular office made 6-8 loans each and every day. Most of our customers could easily qualify for such small amounts (usually $1000 to $3,000) with their local bank or credit union. The interest rates we charged were as high as 36%. Yet our office grew, and was extremely profitable because our customers came back time after time. Why you ask; because, we knew our customers on a very personal level. We knew their families, what they did for a living, we offered loans with custom payment schedules, and we were there when our customers needed us. We had relationships with our customers.

As I went into business on my own, I wanted to use computer technology that would not only help grow my business with new clients, but also generate referrals, and allow us to up sell, cross sell, and earn repeat business. It would take a lot of time and investment, trial and error until I figured out a winning combination. At the time in 1989 you just couldn t go out and purchase a CRM package. The idea didn t even exist then. I began with a copy of a database called Corner Stone written for MS DOS.

At the time it was state of the art, and a huge investment. Other associates of mine asked why not use a rolodex? What am I going to do with that data anyway? It was if just building a database of my customers was an foreign concept to them. I mean computers were just beginning to show up in offices to run Visi Calc (a spreadsheet application), and WordStar (a word processor).

I grew my mortgage brokerage and eventually ACT! came into the market. We installed it and used it with varying successes. We then moved on to a product called GoldMine, which was a much more robust system. It was then that I decided that I wanted to get into the CRM business and become GoldMine consultant.

That decision has led me down a path of spending a great deal of time learning what CRM is and what it is not. I have had the opportunity to work with some of smartest sales and marketing experts in the world and within a short period of time become one of GoldMine s most successful resellers in the western states.

I left the world of GoldMine in 2001, for another business venture, but kept up with the changes in the industry. When Microsoft entered the business with their CRM tools I was impressed. Microsoft CRM in my opinion offers that toolset that allows a CRM consultant to offer a easy to use, extensible, application to help our clients realize a successful CRM project.

Before you do anything, have the likely expectations of your people in mind. They will tend to define a good manager as one who:

Is positive and enthusiastic

Has vision (sees the longer /broader view

Achieves their own goals

Is well organised

Making good objective decisions

Delegate appropriately

Provides good honest feedback

Is fair and has no favourites

Is open-minded and curious

Listens (and is available to listen)

Knows and takes an interest in staff

Encourages/supports staff development

Communicates well

Shows confidence and gives credit

Keeps people informed

Acknowledges own mistakes/weaknesses

Shares experience

Similarly, people will have firm views on the type of manager they do not want. Those, for example, who:

Put themselves before their people

Fail to set clear objectives/priorities

Don t appear to care about the team (a loner)

Are secretive (or late informing)

Procrastinate

Are unapproachable

Are not honest, open and fair

Fail to consider people s feelings

Let their personal workload prevent team maintenance

This list and the preceding one could easily be extended and will be influenced by factors that are especially important in your job, organisation or function.

Make it your business to discover what is most important to your people.

New Post New Employer?

Throughout your planning and progress you need to tailor your approach depending on whether you are moving positions within your current company or moving to a new one.

Existing employer. Keep in mind that people know you. Your position relative to others will must change. You have to create a suitable distance between you and others, and not allow existing relationships (and friendships) to dictate the way things work. At the same time you are (still) part of the team, and how this manifests itself needs consideration. Beware of being arrogant. Do not throw the baby out of with the bath water old alliances can help.

New employer. The learning curve you face is inevitably much steeper. Beware of acting (or even of giving a view) before you have sufficient facts.

Always match your approach to the actual circumstances and be realistic about the situation you are in

First Things First:

Day one as a manager: a great deal to consider if you are moving into a new situation. You should:

See your new manager early on: confirm your role and priorities and set up communications procedure between you both, especially to make clear how you check things during the first few days.

Arrange introductions to other key people: if your work involves contacts with others (another department, people on the same time level as you, etc), make sure you know them and begin to cultivate a relationship from the word go.

Meet your own staff: (more of this anon).

Once again, remember that you only get one chance to make a good first impression especially in a new environment. This may be a clich , but it s true. So, consider the details and get them right. For example:

Be sure to arrive on time (or a touch early)

Look the part (think about what you wear)

Meet The People:

Make a point of speaking to everyone on day one. If this is not possible (for example, someone may be away) set a time for an initial word. This can be informal (just a word at their desk) or in your office or meeting room. It needs to do various things.

Act as a personal introduction

Clarify, briefly, how you see their role (or how the other person sees it)

Dispel any immediate fears the team member may have

Answer any immediate questions (or say when they can and will be answered)

Begin to show you as the kind of manager you want to be

Ask questions and canvas opinion from the team about how things are going, what might need change, challenges for the future, etc

And Finally:

Keep these exchanges positive. Do not be afraid to put things on ice for the moment but be specific I can t answer that now; give me a day or two and I will say something about that when the whole team gets together .

Keep notes and keep promises made during such conversations.