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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.