HR & Sales Partnership: Developing High-Performance Sales People Presented By Tom Tice Towers Watson September 1, 2010
Nov 01, 2014
HR & Sales Partnership: Developing High-Performance
Sales People
Presented By Tom TiceTowers Watson
September 1, 2010
Sales People:Wheelers And Dealers?
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Sales Forces In The U.S.
• There are approximately 14 Million full-time sales people in the U.S.
• Sales people represent 16% of the U.S. workforce• Companies spend $1 to $2 Trillion a year in
compensation cost for sales people
• Sales people are responsible for growing the top line in good times and bad
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What’s So Special?
• Front line – company’s face to the customer• Impact top line like nobody else, and bottom line too• All about growth – cost management is secondary• Sales force issues are unique
– Sales force life cycles, rules of engagement, etc.– Perfect data link: Σ sales rep results = corporate
results• Requires a specialized body of knowledge and
competencies
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“…fundamental DNA structure is different”
Sales Force Prominence Varies Based On The Selling Environment
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PartnershipSelling
Consultative Selling
Need Selling
Multi-Level Selling
Post-Sale Selling
Relationship Selling
Pressure Selling
Feature Selling
Order Taking
Application-Oriented
Buyer-Oriented
Product-Oriented
Level ofComplexity
Sales RepProminence
. . . And Job Roles Change
5Products
Existing/Core New/Different
Buyers
Prospects
Customers Keepers
Finders
Growers
Market Makers
Product Specialists
UniqueSales Force
MarketSpecialists
Sales Coverage Models Evolve . . .
Lead Qualify Propose Close Fulfill Manage
Small
Mid
Large
Geographic Territory Sales Reps
In the beginning...Sales Process
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Iterations Begin To Accumulate. . .
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Lead Qualify Propose Close Fulfill Manage
Small
Mid
Large
Enterprise
Sales Process
Geographic Territory Reps
Named Account Sales Reps
Telesales
Account Coordinators
Coverage Becomes More Complex –And Expensive
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Lead Qualify Propose Close Fulfill Manage
Small
Mid
Large
Enterprise
Vertical 1
Vertical 2
Telesales Reps
Sales Process
Agents/Distributors
Proj Mgrs
Cust Care
Named Account Sales Reps Account
Coordinators
Vertical 1 Specific Reps
eChannel
Vertical 2 Specific Partners
Telemarketing Reps
HR And Sales Must Act As Partners To Assure That The Sales Function Has…
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1. The right people with right skills
1. The right people with right skills
2. Focused on the right opportunities with the right tools
2. Focused on the right opportunities with the right tools
3. Highly motivatedto execute sales strategy
3. Highly motivatedto execute sales strategy
l Programs, tools and processes to guide:— Hiring/ re-deployment / exit
— Feedback and coaching
— Sales Supervisor (people mgt.) effectiveness
— Talent development and career progression
— Base pay progression
l Sales strategy clarificationl Sales process clarificationl Sales role design and sales organization
developmentl Quota setting and allocation
l Employee Value Proposition assessment and designl Sales compensation assessment and design (often =
regional/global)l Sales compensation implementationl Sales compensation risk assessment and mitigationl Sales compensation governance
First, The Right People with The Right Skills …
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l Uses career bands (e.g., professional, manager) and career levels (e.g. entry, intermediate) to organize and align roles across the organization
l Includes criteria to clearly describe each career level
l Clarifies the knowledge, skills and abilities required for successful performance
l Provides foundation for performance management, career pathing and planning, learning and development, and succession management
CompetenciesCareer Framework +
Indi
vidu
al C
ontr
ibut
or C
aree
r Pat
hM
anag
emen
t Car
eer P
ath
Professional/Expert
Entry Intermed Career Specialist Master Expert
Professional/Expert
Entry Intermed Career Specialist Master Expert
Technical/Business Support
Entry Intermed Senior Lead Supv
Technical/Business Support
Entry Intermed Senior Lead SupvEntry Intermed Senior Lead Supv
M anagement
Supv Mgr Sr Mgr Grp Mgr Sr Grp Mgr
M anagement
Supv Mgr Sr Mgr Grp Mgr Sr Grp MgrSupv Mgr Sr Mgr Grp Mgr Sr Grp Mgr
Executive
VP SVP EVP CEO
Executive
VP SVP EVP CEO
Productio n
Entry Intermed Senior Lead
Productio n
Entry Intermed Senior Lead
Career Framework + Competencies
Providing A Clear Career Path Helps Both Retain Sales Talent and Guide
Development Discussions
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Sales/Sales Management
1st Level Manager
Team Leader
Entry
Associate
Career
Expert
S1
S2
S3
S4
S5
S6
S72nd Level Manager
Entry Level DescriptionGeneral Profile
Product & Sales Expertise
Selling Process
Client Orientation
• Sells less complex products and/or services
• Works within an assigned territory or customer base
• Has up to two years of sales experience
• Has basic understanding of business, service and/or products sold
• Has up to two years of sales experience; may have recently worked in telesales or out-bound call center and is transitioning to a field sales position
• Emphasizes the process rather than developing own sales approaches (e.g., make 10 calls a week)
• Typically makes sales calls from standardized “scripts” for some of the company’s less complex products and services
• Typically is responsible for a territory or group of accounts with more than 10 current and prospective customers
Providing A Dual Career Path Can Help Retain Top Sales People
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Indi
vidu
al C
ontri
buto
r Car
eer P
ath
Man
agem
ent
Car
eer P
ath
Professional/Expert
Entry Intermed Career Specialist Master Expert
Technical/Business Support
Entry Intermed Senior Lead Supv
Management
Supv Mgr Sr Mgr Grp Mgr Sr Grp Mgr
Executive
VP SVP EVP
Production
Entry Intermed Senior Lead
Illustrative Career Path Based On Sales Competencies And Career Bands
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Illustrative career path example – Sales
Supv Group Manager
Entry Intermed Career Specialist Master
Manager Sr Manager
Sr Group ManagerCareer
Bands VP
Product Specialist
Sales Rep I
Customer Service Rep I
Operations Specialist II
Associate Product Manager
Sales Rep II
Senior Operations Specialist
Product Manager
Sales Supervisor
Sales Operations
Project Manager
Senior Product Manager
District Sales Manager
Senior Sales Operations Manager
Senior Manager – Product
Management
National Sales Manager
Sales Operations
Director
Regional Sales Manager
VP of Sales
Customer Service Rep II
Senior Customer
Service Rep
Customer Service
Manager
Senior Manager – Customer
ServiceSales Support and Customer
Service Director
Senior Manager – Sales Support
Sales Support Project
Manager
Senior Sales SupportSales Support II
Operations Specialist
Sales Support I
Expert
CASE EXAMPLE
Sales Competencies Define the Knowledge, Skills and Abilities Required
For Successful Role Performance
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CASE EXAMPLE
Commonly, we develop competencies for both sales and sales support . . .
Direct SalesCustomer and
Industry Knowledge
Relationship Management Solutions Selling Influence/
PersuasionDemonstrating
Value
Sales SupportCustomer and
Industry Knowledge
Business Process
Management
Customer Experience Consultation Implementation
By Scaling Each Competency, We Clearly Communicate Development Expectations
And Provide A Basis For Assessment
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Competency Atlas, Towers Watson’s competency dictionary, can be used to develop the sales organization’s competency model
Influence/Persuasion – Creates compelling rationale to facilitate and motivate action toward a desired outcome
l Uses appropriate interpersonal styles and communication methods to gain acceptance from others for an idea, plan, activity, service, or product
l Seeks to understand others’ opinions, positions, and emotions to provide direction to solve problems and negotiate mutually-beneficial outcomes
l Gains support and commitment from others and mobilizes them to take action
Developing Supporting Applying Leading Shaping
l Learns to utilize various communication methods and recognize differing interpersonal styles
l Paraphrases others’ points of view to check for understanding and communicate areas of agreement
l Responds to objections with supporting data and information
l Uses a variety of basic communication and facilitation techniques to persuade others in straightforward situations
l Builds common ground by highlighting areas of agreement and focusing efforts on resolving areas of disagreement
l Clearly articulates the case for action and describes the benefits of a proposed plan
l Presents ideas and recommendations in a manner that clearly links to business priorities and gains acceptance from others
l Identifies and addresses key concerns from differing perspectives to develop mutual understanding
l Involves others in key decisions or plans to influence a desired outcome; ensures others feel they have contributed to the conclusion
l Identifies key motivators to direct others toward a point of view and generates new ideas based on differing view points to gain broader acceptance for ideas
l Diffuses emotional situations through focus on mutually beneficial solutions and identifying win-win outcomes for all parties
l Involves others across the organization, where necessary, to influence a desired outcome; ensures others feel they have influenced key decisions
l Modifies own behavior to accommodate situations and individuals in an effort to facilitate attainment of mutual agreement
l Demonstrates a balanced understanding of all sides of an issue or conflict and provides support and tools to help others move to agreement
l Defines expectations, goals and the future state to generate excitement and action from others, giving direction and purpose to others’ collective efforts
The Sales Competency Framework Needs To Be Tightly Aligned With Sales Strategy
– But Stay Flexible …
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Individual selling Team selling &Cross-selling
Geographic Territory Assigned accounts
Transactional Selling Consultative selling
Order Taking Account Planning
Is This Our Strategy? Is This Our Strategy?OR
Competencies need to be integrated into how managers coach and manage their people . . . Let’s look at an example
Case Illustration: One Of The Fastest Growing Pharmaceutical Companies
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“We more than doubled our sales force size in the last two years and are having a hard time attracting and retaining top sales talent into our organization.”
HR-Sales Partnership Challenge
Sales’ desiredoutcome: l A consistent framework for
organizing roles, with clear linkages to career management and talent programs
l Clear career paths and opportunities for all employees – demonstrating that employees can have a long and successful career with the company
l Enhanced succession management to meet the demand for leadership talent
ActivitiesHR Program Contentl Career-based competency model – career ladders + functional competenciesl Placement of roles into modell Refinement of existing competencies and leveling for each; role-specific competency
expectationsl Career paths and criteria for progression and promotionl Linkages between the career-based competency model and current talent management
programsl Compelling and motivational “story”Implementationl Branding
-On Track to Successl Communication strategy and campaign
- eCards- E-mail announcements- Reference guide
l Manager and employee training – three meeting eventsl Project management, including meeting facilitation and leadership briefings
Background
Case Illustration: Pharmaceutical Company (Continued)
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Improved Recruiting and Selection
l Recruiting process was able to staff the rapidly growing organization
l Recruiting tools and communications clearly articulating career paths within the organization provided an advantage over larger pharmaceutical companies
Improved Sales Management Effectiveness
l Common set of competencies and expectations took the guesswork out of the process for managers
l Provided more time and better tools to effectively mentor and coach the sales organization
l Engagement levels increased for both sales reps and sales managers in the first year following implementation
Improved Succession Planning
l Developed formal high potential program and “fast tracked” many through the career paths
l Used formal assessments to rate sales and sales management staff on the key competencies and promotability
Results
“Best” Principle of Sales Force Competencies Development
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How important is this competency to overall job performance in a sales role?
How frequently is thiscompetency required in a sales role?
Not
App
licab
le
Of L
ittle
Impo
rtan
ce
Som
ewha
t Im
port
ant
Impo
rtan
t
Very
Im
port
ant
Crit
ical
Not
App
licab
le
Annu
ally
Seve
ral
Tim
es a
Yea
r
Mon
thly
Wee
kly
Dai
ly o
r Mor
e O
ften
.
.
.
.
.
. 5
N 1 2 3 4 5 1 Competency Name N 1 2 3 4 5
N 1 2 3 4 5 2 Competency Name N 1 2 3 4 5
N 1 2 3 4 5 3 Competency Name N 1 2 3 4 5
N 1 2 3 4 5 4 Competency Name N 1 2 3 4 5
N 1 2 3 4 5 5 Competency Name N 1 2 3 4 5
N 1 2 3 4 5 6 Competency Name N 1 2 3 4
Criticality = Importance x Frequency
Linking Pay & Capability Development
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• Vertical pay grade progression opportunity– Different role– Same role, but at higher level
of competency
• Horizontal pay progression opportunity– Range penetration based on
performance rating – Competency-based pay
progression within pay range
• Target incentive pay linkage– Job level / grade– Base pay
• No explicit linkage– Commission structure
• LTI linkage– Job level / grade– Discretionary (retention
vehicle)
Base Pay Progression Incentive Pay
The HR-Sales Partnership in Sales Compensation Design Projects
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SalesBusiness
UnitLeadership
Sales Operations
SME
Human Resources
SME
Finance SME
Design Team
Steering Committee
Role of Steering Committeel Articulate corporate objectives and interpret
corporate policyl Make critical strategy decisionsl Guide overall direction of the projectl Review and approve recommendations
Role of Design Teaml Oversee ongoing project tasksl Participate in analytical processl Review/critique hypotheses, findings , and
recommendations l Identify and help gain access to, and
information from , any needed Subject Matter Experts
l Champion any needed data gathering, interview scheduling, and general navigation assistance
Role of HR Project Managerl Participate as a member of the Project Teaml Manage all aspects of the project to achieve
timely delivery of resultsl Lead all activities and Project Team meetingsl Create all meeting material and documentsl Provide perspectives on best practices through
research and data bases
The role of HR will be either Project Manager, or Co-Leader with the Sales
Operation Manager
The HR-Sales Partnership in Sales Compensation Design (Continued)
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+ +
+ + + + +
+
Sales Strategy Sales Channels Sales Roles
External Surveys
Required Mix & Leverage Plan Design
Performance Measures Sales Goals
Payout Frequency
Sales Processes
“Top Row”
Single “Best Principle” for Sales Compensation
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Difference between top
and average = 15% of target
Difference between top
and average = 150% of target
Improved Pay Dispersion
0% of target
200%of
target
Min Excellence
100% of target
Target
Poor Pay Dispersion
115% of target
Min Excellence
100% of target
110%
Typical Payout
Make sure that total cash is compelling and differentiated for your top performers
HR And Sales Must Act As Partners To Assure That The Sales Function Has…
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1. The right people with right skills
1. The right people with right skills
2. Focused on the right opportunities with the right tools
2. Focused on the right opportunities with the right tools
3. Highly motivatedto execute sales strategy
3. Highly motivatedto execute sales strategy
l Programs, tools and processes to guide:— Hiring/ re-deployment / exit— Feedback and coaching— Sales Supervisor (people mgt.) effectiveness— Talent development and career progression— Base pay progression
l Sales strategy clarificationl Sales process clarificationl Sales role design and sales organization
developmentl Quota setting and allocation
l Employee Value Proposition assessment and designl Sales compensation assessment and design (often =
regional/global)l Sales compensation implementationl Sales compensation risk assessment and mitigationl Sales compensation governance
Questions?
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Contact Details
• Tom Tice– Senior Consultant – Sales Effectiveness & Reward– Towers Watson– One Alliance Center– 3500 Lenox Road, Suite 900– Atlanta, GA 30326-4238– 770-864-3963– [email protected]
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