How To select A Sales Force That Can Sell

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How To Select A Sales Force That Can Sell

Presented By:Peter Gilbert CEO HR Chally SA

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A Global, Sales Force Potential and Performance Measurement Firm Utilizing our Industry Leading:

To ensure our clients have the vital information/analysis to minimize risk associated with making critical talent management decisions related to:

• Selecting and developing the right people • Increasing productivity

• Performance Management• Managing succession

Who Is Chally?

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Telephone Selling

A Personal Epiphany

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Jordan Belfort

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Business Processes Receive A Great Deal Of Attention

• Logistics & Supply Chain• Finance• Procurement• Manufacturing• Airline safely• Mars Landing

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Defect Level 3,4ppm

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Defect Level 3,2 ppm

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In Sales We Routinely Do Things Badly

• 25,1% attrition rate

• Less than 50% of reps make quota

• 71% of new hires take at least 6 months to ramp up

• 20% of sellers bring in 62% of the revenue

• 25% do not generate enough profit to cover their expenses

• Forecasts accurate +- 50%

• % Deals won less than 20%

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Part 1. A brief history of sales and some thoughts on the future.

Part 2. What is your Go-To-Market sales strategy, and what kind of salespeople will it require?

Part 3. A model for understanding different types of salespeople.

Part 4.

The elements of an effective recruitment process:-

• Background & reference checks 30%

• Structured scorable interview 30%

• Criterion validated assessment 30%

• Judgement & gut feel 10%

Part 5. The cost of poor hiring

Part 6. Developing a recruitment strategy

Planned Agenda

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Post-recession markets have changed the game permanently:

• Product quality (all serious competitors have the same) • Cost (Supply chain management and Global sourcing level the playing field)• The internet has switched the information advantage to the customer• Innovation is short lived • Untrained sales managers are struggling and failing• Manipulative sales techniques no longer work• Sales training has not evolved• Buyers have become better buying than sellers have at selling• BUT sales recruitment is no better than it was 50 years ago!!!

The Problem

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– Traditional Field or “Route” sales is going to disappear – Traditional field salespeople will transition to telesales for roles

such as account management– Higher end salespeople will need a sophisticated understanding of

their customers and markets PLUS the new sales skills as out-sourced managers for their customers

– Sales will evolve to a professional level status with degree/diploma qualification (providing the base business savvy and sales skills, as well as the appropriate academic background)

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The Challenge

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The World Of Sales Is Changing

“It is not the strongest species that survive, nor the most intelligent, but on who are the most responsive to change.”Charles Darwin

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The Evolution Of Sales

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From snake oil peddler to value creator

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The Joys Of Being A Salesperson

Sometimes it’s a bit like being a fire hydrant at a dog show!

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What Is The Purpose Of A Sales Force?

These people are all trying to sell you something!

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What is the purpose of a sales force? Some common answers.

• To sell our products• To generate revenues• To build relationships with customers• To communicate with customers about our products and services• To differentiate our offering• To add value to our customers• To partner with our customers• To be the interface between our company and our customers

THESE ANSWERS ARE ALL CORRECT.BUT NOT VERY INSIGHTFUL!!!

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A better definition

Gerhard Gschwandner Neil Rackham Philip Kotler Owner Selling Power Professor/Author Professor/Author

These eminent authorities agree that most sales is no longer about selling your wares. It is about making customers successful.

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Strategy Drives Everything

If you have no sales strategy, you have no clear idea of who your real customers are, what kind of salesperson they are most likely to respond to, and which type of salesperson is most likely to succeed in your business. No wonder a few salespeople deliver most of your revenues. For you, successful recruitment is a purely random event.

Many executives should be ashamed of their sales forces!!!

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What is a Go-To-Market sales strategy?

“A Go-To-Market sales strategy (GTMss) is a purposeful and defined strategy to serve customers, win market share at acceptable margins and outperform the competition”

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Another Definition

A game plan for reaching the right customers in the right markets, through the right channels, with the right products and the right value proposition.

The purpose of a Go-To-Market sales strategy is to create a powerful, winning total customer experience that will:• Attract, win and retain the most desirable customers,• While driving high sales and market share growth,• At the lowest possible cost.

Go-To-Market Sales Strategy

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The GTMss Sales Model

Make the List Make the Rules

Make the Sale Make the Standard

Infrastructure

Value

Relationship

Marketing & Messages

Customer Engagement

Efficiency

Effectiveness

Customer Co-Management

Decisive Force

Price/Performance New Source Of Wealth

Process Performance Business Improvement

Trust Based Political Based

Business Fit

Partner BasedTransaction Based

Solution Fit

Requirements Fit Vision Fit

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When you have no GTMss

REMEMBER!!!It is better to be wrong than to be confused!!!

You will be confused

These people are both!

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Products Move Through a “Sales” Life Cycle

Fast Growth Wide Usage

Introduction Saturation

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The Salesperson Who Fit the Life Cycle

PURCHASE COMPLEXITY

TOUCH

HIGH

TOUCH

HIGH

CUSTOMER EXPERIENCEWITH

PRODUCT/SERVICELOW

TECH LOW

TECH

The Salesperson Who Fit the Life Cycle

CLOSER

CONSULTIVE

Display

RELATIONSHIP

Stage 2Turnkey Buyers with Consultive Support

Stage 3Relationships

Service Driven

Stage 4CommodityPrice Driven

Stage 1Early Adopters

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Different Quadrants Require Different Approaches

Heart Surgeon General Practitioner

“Miracle Cure” Friendly Local Pharmacy

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Building An Effective Recruitment System Requires Answers To Questions

• What am I selling---product, service, commodity, solution, strategic value, partnership?• What is my value proposition?• To whom am I selling---user, operational manager, expert, executive, procurement?• What type of salesperson will the buyer respond to best?• As a sales organisation, what do we need to succeed?• What recruitment tools should I use?• Where do I look for these salespeople?• How do I build a talent pipeline?

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Many Recruitment Tools Do Not Work!!

Hiring success rates aren’t much betterthan a coin toss*

Selection Method Improvement Over “Chance” Typical Interview 1% increase Personality Tests 1% increase Experience 5% increase Scorable Interview 7% increase

* “International Personnel Management Association, Feb. 1999”

Proven accuracy of Chally assessment 25% to 30% better than chance

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An Effective Selection System Should Include…

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Position

Pre-Screen & Screen Interview

C

D

A

Selection Needs

Qualified Candidates

Recommended or Recommended with Concerns

CriterionValidated

Assessment

Manager Interview

AssessmentReport

andInterview

Guide

Applicant Pool

F

B

C

E

A

A

CDPredictive

Skills and

Behaviours

ValidatedProfile

Qualifications &

Experience

Talent screening and assessment process

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Chally’s Solutions

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• Dayton, Ohio based with 37+ years of Research and Development experience

• Founded through a Grant from U.S. Justice Department in partnership with a network of Universities

• Purpose - to develop a predictive assessment to improve the selection of Law Enforcement Officers to minimise impact of the pending EEOC law

• Terms of the Grant outlined that Chally could build a business around the assessment and we decided to focus on helping clients select more productive salespeople

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• The core assessment initially focused on personality and motivation

• However we quickly discovered, via research conducted with our clients, that just because you are extroverted, assertive and competitive,

It doesn’t mean you can sell!

It just means you are extroverted, assertive and competitive!

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• We decided to re-tool the assessment and leverage the predictive capabilities of the Insurance Industry which utilizes actuarial sciences

• Actuaries are experts in evaluating the probability of future events—using numbers, not crystal balls to design creative ways to reduce the likelihood of undesirable events

• It takes a combination of strong analytical skills, business knowledge, and understanding of human behaviour to manage today's complex risks facing our society

Credit Ratings

Short term insurance

Casinos

Life Insurance

Targeted Marketing based on buying

patterns

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• The Actuaries said to throw out the “Personality” theory and to research salespeople to determine what they actually do (skill) versus how they behave (personality) to achieve outcomes

• Our Research found that successful performers Negotiate, Qualify, Close, Probe etc.

• We studied large groups, had them take the “re-tooled” assessment with Non Face-Valid questions and applied an actuarial approach to measuring/predicting likelihood of successful performance

Negotiates

Qualifies with Standard Probes

Makes Presentations

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• Clients often ask us what non face-valid assessment questions like the ones above have to do with selling and specifically negotiation and closing

• In reality—nothing. It is not the question but the responses to a series of questions, compared to a huge database that actually predict someone's potential

• To put into perspective, let’s look at the process an insurance company would use to establish the rate/premium of car insurance for newly driving teenager

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• In reality—none of the data points above actually have any thing to do with driving

• Yet, collectively and over large samples, they predict likelihood of an accident and influence rates

• This is the same for the assessment - To establish predictability of a competency such as negotiation

• We administered the assessment to large groups of people that were researched to be either above average, average or below average in negotiating

• If we found a high correlation (similarity) in how above average negotiators responded to the assessment, a high correlation (yet difference in responses from above average group) in how below average negotiators responded, and we could repeat it with similar results—we then had an effective predictor for negotiations.

Process the Insurance Industry would apply via Actuarial Science to establish Rates/Premiums

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• As we continued to work with clients, we uncovered many different competencies/skills/behaviours

• Currently, we have an unparalleled database of 140+ validated competencies based on scientific research

• Spend 45 minutes answering 288 questions; we collect 866 points of data and predict the performance of a person, team or organisation on over 140+ validated competencies

Closes Through Logical, Incremental Steps Promotes Growth

Through Innovation

Qualifies with Standard Probes

Problem SolvingNegotiates

Develops Sales Leads

Maximizes Results Develops Technical Competence

Makes Presentations

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CHALLY CUSTOMERS WIN MORE DEALS!

An independent research firm confirmed that customers who use Chally’s better science approach have higher win rates!

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Why Benchmarking and Traditional Competency Modeling Can Fail

The following “logical” benchmark competencies (supposed predictors of success) are officially tracked to measure professional golfers as a measure of success;

#1 Tiger Woods#2 Phil Mickelson#3 Paul Casey

#4 Kenny Perry#5 Sergio Garcia#6 Henrik Stenson

#7 Geoff Ogilvy#8 Steve Stricker#9 Jim Furyk

#10 Vijay Singh

a) Driving accuracy b) Driving distancec) Greens in regulation

d) Ball proximity to hole e) "Scrambling"

f) Putts per roundg) Sand saves

2009 Listing of World’s Top 10 Golfers

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Traditional Methods Don’t Always Work!

Would results like this get you excited about selecting this person?

• These “competencies” do not predict – scores do!

• What makes Tiger different is he didn’t make fatal errors!! Emphasis on didn’t!!

• How few bogeys, double bogeys, or worse they don’t get...round after round after round

These were Tiger Woods’s results when he was #1 Golfer in World!

#93 in driving accuracy #38 in driving distance#71 in greens in regulation

#68 in ball proximity to hole#9 in scrambling#38 in putts per round

REJECTED

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False Predictors in a Sales Position

Job Competency model that was not working successfully for Fortune 500 company that was developed by Global HR Consulting Firm

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Outbound Telesales Predictive Skills

• MAKES PERSUASIVE PRESENTATIONS

• NEW BUSINESS DEVELOPMENT

• ENDURANCE

• ANSWERS OBJECTIONS BY REINFORCING STANDARD FEATURES/BENEFITS

• DEVELOPS RELEVANT PRODUCT KNOWLEDGE SPECIFIC TO CUSTOMER NEEDS

• COMMITS TIME AND EFFORT TO ENSURE SUCCESS

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Inbound Telesales Predictive Skills

• IMAGE BUILDING

• PROBLEM-SOLVING

• IDENTIFYING CUSTOMER NEEDS

• MAXIMIZE RESULTS BY MAKING CUSTOMER SATISFACTION A PRIORITY

• MAKE PROFITABLE RECOMMENDATIONS IN A CONTRIBUTOR ROLE

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Customer Service Predictive Skills

• WILLINGNESS TO SERVE ALL TYPES OF CUSTOMERS

• USE CUSTOMER CONTACT TO BUILD BUSINESS

• MAXIMIZE RESULTS BY PARTNERING AS A CUSTOMER ADVOCATE

• DRIVEN TO PRODUCE BY CREATING AN ENJOYABLE CUSTOMER EXPERIENCE

• PRACTICAL INTELLIGENCE

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If Ready to Utilize the Assessment as Part of Selection/Development Process

Assessment Applications…

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SelectionSelection Report with Hiring Recommendation (optional accompanying interview guide)

Measure a candidate or incumbent against key profiles to measure potential to successfully perform role(s)

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Sample

Describes the candidate’s candor in responding to questions

Bottom-Line Recommendation Recommended Recommended if concerns

addressed can be resolved Not recommended

The Position’s Job Skills

Manager Assessment Report

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Sample

Definition of skill and graphic rating of level of competence

Prediction of typical on-the-job behaviors and limitations

Practical coaching tips for training and development

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Sample

Motivation or habit that is very evident in the candidate

(+70% or -30%) compared to other

successfully employed individualsSuggestions for a manager to best focus and motivate the

candidate

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What Our Clients Say About Chally

• Predictive and accurate data• Customizable to specific job requirements• Objective findings and analyses• Provides access to an extensive database and research• Helps reduce costly employee turnover ≥ 30% • Helps improve employee productivity ≥ 35%• EEOC-compliant - reduces legal exposure • Data has long-term value

Chally’s extraordinary science, applied to measures of Sales Force performance, enables our customers to realize greater

productivity and profitability.

Q&APeter Gilbert

CEO HR Chally SAPO Box 3070 Dainfern 2055

Cell: [email protected]

www.chally.com