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© Copyright 2016 The Sales Management Association.
Sales Management Association Webcast
02 June 2016
Presented by
13 “Must Know” Management
Approaches for Sales Leaders
About The Sales Management Association
Slide 2© 2016 The Sales Management Association. All rights reserved.
A global, cross-industry professional association for sales
operations and sales management.
Focused in providing research, case studies, training, peer
networking, and professional development to our membership.
Fostering a community of thought-leaders, service providers,
academics, and practitioners.
Learn More: www.salesmanagement.org
Today’s Speakers
Slide 3© 2016 The Sales Management Association. All rights reserved.
© Copyright 2016 The Sales Management Association.
Sales Management Association Webcast
02 June 2016
Presented by
13 “Must Know” Management
Approaches for Sales Leaders
Copyright © MHI Global Inc. All Rights Reserved.
AGENDA
► The 13 Must Knows
► Prioritization Importance
► Your Guiding Principles
► Prioritization Approach
Data
Surveys
Research
► Example of Research
► Estimating Impact vs Resource Commitment
► A Few Success Factors to Consider
► Q&A
Copyright © MHI Global Inc. All Rights Reserved.
AGENDA
Sales & Sales
Management
Processes
Sales Talent
Management
Systems and
Processes
Training &
Development
Leadership
Alignment and
Messaging
Consistency
PEOPLE &
PROCESS
Sales
Organization
Compensation
& Incentives
Sales and
Marketing
Alignment
Sales
Organization
Structure &
Resourcing
Business &
Territory
Planning &
Optimization
Account
Management
Metrics &
Measurement
Sales
Forecasting &
Pipeline
Management
CRM Adoption
Sales
Enablement
Tools
STRUCTURE
& SYSTEMS
Copyright © MHI Global Inc. All Rights Reserved.
INITIATIVES MUST BE PRIORITIZED
One head of sales said to me “if I commence every initiative
that has been recommended by my staff and our outside
partners, we would be out of business in six months!”
The Mission Statement of a transformational project I worked
on couple years ago contained a key guideline that we referred
to constantly over a two year period:
We will constantly drive to gain a fact-based understanding of
what matters most before we commit resources to any
initiative…
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1. Enable Leadership Vision
3. Understand Client
Buying Behavior4. Utilize Research
2. Leverage Best Practices
Be
GUIDING PRINCIPLES
► Preserve what works
► Lay the foundation for adoption
► Understand the leadership visionof the future
► Know what will be expected of sales
► Interview clients – past and present
► Understand changing expectations of the relationship
► Benchmark against the bestin your industry
► Tap into our vast inventoryof best practices available from many top notch research firms
FIRST, ESTABLISH A SET OF GUIDING PRINCIPLES
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BASE DECISIONS ON SYNTHESIS OF DATA
► Of the 13 initial potential initiatives, some may be perceived as solidly
performing, culturally sensitive or irrelevant to the current situation and can
be removed from consideration
► A first level of research must be done internally and externally to understand
the gaps, the potential impact, and the likelihood that the culture will readily
adopt major changes
► Three approaches can be considered (separately or in concert) to identify
gaps and establish priorities:
Data Driven
Surveys
Research
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ASSESS THE OPPORTUNITY - DATA
Specific company data can
be compared to industry
best in class or
comparables to similar
companies in “aspirational”
situations
This data may come from
Payroll Automation, CRM,
or Financial Reporting
systems
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ASSESS THE OPPORTUNITY - SURVEYS
Credible surveys can be
conducted that will yield
eye-opening insights into
how productive a sales
organization may be from a
variety of self reported
factors
Keys to credibility are the
sample size and relevance
of the survey questions.
Copyright © MHI Global Inc. All Rights Reserved.
ASSESS THE OPPORTUNITY - RESEARCH
Best Practice comparisons
based on valid research can
be the basis to establish a
“delta” between your
company and best in class
The key is to compare to
relevant sample sets
(similar industry, similar
companies)
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EXAMPLE: RESEARCH BASED DECISIONS
► For this example we’ve selected one of most empirical and
thorough studies in the market
► Each year CSO Insights surveys 1200 companies across
multiple industries about where they believe their sales
processes fit across two dimensions:
Type of sales process in place
Typical relationship with typical customers
► CSOi then sorts the companies by performance factors and
compares to these two dimensions
7. Sales &
Sales
Management
Processes
Let’s do a quick poll – as we review the next two slides try to
estimate where your company might fit along these two dimensions
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THE PROCESS DIMENSIONS
Level 1—Random Process: A company may be perceived as being anti-process,
though what they really lack is a single standard process. Essentially every sales rep
does their own thing their own way.
Level 2—Informal Process: A company exposes their salespeople to a sales
process and indicates that they are expected to use it, but that use is neither monitored
nor measured.
Level 3—Formal Process: A company regularly enforces the use of a defined sales
process (sometimes religiously), and they conduct periodic reviews of the process to see
how effective it is, and then make changes based on that analysis.
Level 4—Dynamic Process: A company dynamically monitors and provides
continuous feedback on sales reps’ use of their formal sales process. They also
proactively and continually modify the process when they detect key changes in market
conditions.
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Level 1—Approved Vendor: A company is seen by the majority of their customers as a
legitimate provider of the products or services they offer, but are not recognized for having any
significant, sustainable competitive edge over alternative offerings.
Level 2—Preferred Supplier: Based on their marketplace reputation and past dealings with
your customers, while competitors may offer alternatives, Level 2 companies are normally seen as the
preferred vendor with whom to do business.
Level 3—Solutions Consultant: Based on a specific set of product-related, value-added
knowledge or services they offer, customers see Level 3 firms as not only a vendor, but also a
consulting resource on how to best use the products or services they purchase.
Level 4—Strategic Contributor: Above and beyond the products and services they offer,
customers view Level 4 firms as a source of strategic planning assistance for dealing with broader-
based challenges they are currently facing.
Level 5—Trusted Partner: At this highest level, Level 5 firms are seen as a long-term partner
whose contributions – products, insights, processes, etc. – are viewed as key to their client’s long-term
success.
THE RELATIONSHIP DIMENSIONS
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Trusted
Partner
Strategic
Contributor
Preferred
Supplier
Approved
Vendor
Solutions
Consultant
Random
Process
Informal
ProcessFormal
Process
Dynamic
Process
ASSESS THE OPPORTUNITY – OPINION
BASED ON RESEACH (POLL)
LEVEL 1
LEVEL 2
LEVEL 3
CSO Insights Sales Relationship/Process Matrix (SRP
Copyright © MHI Global Inc. All Rights Reserved.
2016 Sales Performance OptimizationStudy – Level Comparison
% Reps Making Quota
% of Company Plan Attainment
% Forecast - Wins
% Forecast - Losses
% Forecast - No Decisions
% Sales Force Turnover
Level 1 Level 2 Level 3
50%
80%
43%
34%
23%
18%
58%
84%
47%
29%
24%
15%
63%
88%
51%
26%
23%
14%
Source: CSO Insights 2016
ASSESS THE OPPORTUNITY – OPINION
BASED ON RESEACH
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COMPARE OPTIONS OBJECTIVELY
Leverage a straightforward and understandable decision making process that includes all appropriate stakeholders
“Calculate” impact for each initiative, e.g. “a 9 point increase in selling time per rep should yield a 3% increase in revenue per rep”
Resource Investment
Impact
2
5
4
6
1
3
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CONSIDER OTHER FACTORS THAT MAY
IMPACT THE SUCCESS OF THE INITIATIVES
► Assess the “change readiness” of the organization
► Look at the impact on other areas like Marketing, Finance and Operations
► Start thinking about indicators of adoption
► Start messaging early
► …and many more!
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RECAP
Start with the 13 Must Knows
Eliminate the areas where there is clear reason not to change
Conduct the research
Determine the effort and payoff
Define the change and identify the success factors for each initiative
Now your ready to begin the real work!
Copyright © MHI Global Inc. All Rights Reserved.
Sales & Sales
Management
Processes
Sales Talent
Management
Systems and
Processes
Training &
Development
Sales
Organization
Compensation
& Incentives
Sales and
Marketing
Alignment
Sales
Organization
Structure &
Resourcing
Business &
Territory
Planning &
OptimizationAccount
Management
Metrics &
Measurement
Sales
Forecasting &
Pipeline
Management
CRM Adoption
Sales
Enablement
Tools
WHAT IS YOUR TOP PRIORITY? (POLL)
2
1
3
4
5
Trusted Partner with Customers
Slide 22© 2016 The Sales Management Association. All rights reserved.
Should we try to be a trusted
partner to all of our customers?
Sales Organization and Sales Operation
Slide 23© 2016 The Sales Management Association. All rights reserved.
Who is best able to lead
changes in the sales
organization? What do you see
as sales operations role?
Marketing and Sales Alignment
Slide 24© 2016 The Sales Management Association. All rights reserved.
What is best practice
to ensure marketing
and sales alignment?
Convincing Leadership of Standard Processes
Slide 25© 2016 The Sales Management Association. All rights reserved.
When a sales organization has no formal sales
processes, what are some recommendations
on how to convince leadership of the benefits
of following standard process?
Initiatives
Slide 26© 2016 The Sales Management Association. All rights reserved.
Which of the groups of the 13 initiatives is
most important for organizations that are
scaling? Depending upon where a company
is in its own growth lifecycle, does it matter
on which initiatives are most important?
Compensation and Talent Management
Slide 27© 2016 The Sales Management Association. All rights reserved.
Compensation and incentives as they
are effective for millennials in Gen Y
and Z; Loyalty and tenure models for
sales organizations; Industry
benchmarks in this area.
Sales Productivity and Efficiency
Slide 28© 2016 The Sales Management Association. All rights reserved.
Where would sales
productivity or efficiency
improvements fit in the list of
13 initiatives or must-know
priorities?
Questions and Discussion
Slide 29© 2016 The Sales Management Association. All rights reserved.
Enter your questions in the
“Questions” box on the right
hand side of the webinar
application window.
Did we run out of time before we got to your
question? Presenters can follow-up with you via
email. Feel free to submit more questions if
you’d like an offline response.
© Copyright 2016 The Sales Management Association
Thank You.