Over the past few weeks I’ve been talking to a couple of businesses about restructuring their sales teams. The intention is to expand their profitability by increasing the productivity of the personnel.

Major problem
A major problem with sales team development is the acceptance of the 80/20 rule. This is where management believe that 80% of sales will always come from 20% of the team and are happy to accept that situation. The problem comes when part of the top 20% decide to leave for another job! At that stage panic usually set-in amongst the sales management.

Possible reason
The possible reason for the above is that in good times the recruitment process allowed ordertakers to gain sales jobs quite easily. Personnel are hired to fill posts without investigating if the individual’s past sales results were due to personal drive, capability and whether the skills are able to be easily replicated in another company, product and territory. However, in these economic times a business can’t afford to be hiring order-takers when they really need capable salespeople.

New videos
To overcome the problem of hiring order-takers I’ve been asked to make a couple of short videos on this topic and these start filming towards the end of this week.
If you would like to be sent an email when they are uploaded onto YouTube then simply register as a subscriber on my YouTube channel @ stephenharvarddavis 
or send me an email at Stephen@assimilating-talent.com

This past week I’ve spent with friends and our after dinner discussion was the state of the economies of Europe and the affects of the high street. Economic problems and affecting sales at HMV, Waterstones, Thornton’s chocolates, Comet and so on and the impact is felt further down the supply chain.

Strikes by National Union of Teachers and Public Services Unions as well as others create further downturn in sales as confidence in the future falls. My friends are mostly owners of small businesses and discussions focussed on how to reduce the effects of strikes and falling confidence on sales.

Restructuring sales teams
When sales fall most businesses cut out unnecessary expenditure and restructure the sales and marketing team. Often this means reducing the size of the team but one friend of mine has actually increased the size of his team and has increased sales. We had worked on the plan together and so I’m delighted by his success and he expressed enthusiasm for thee video below that helped him consider the salesperson he was looking for.

Sales and Marketing interview questions

A couple of days ago I was speaking with a Sales Director who asked “why is finding good salespeople is so difficult”. In the new economy creating and retaining a team of good salespeople is a major differentiator, yet too often a new hire fails to live up to expectation. The costs can be enormous and the Sales Director seemed at his wits end.

Road to Damascus
The new economy means that recruiting and integrating salespeople the way it’s always been done is no longer going to work. With constrained budgets salespeople have to have heightened awareness of different but related areas of their performance. 

To illustrate this I showed the Sales Director the Transition Maps that my colleagues and I have developed over the last few years. “Oh my goodness, now I see where we are going wrong!”

It’s always gratifying when Road to Damascus revelations happen and I had to restrain the Sales Director from taking part of the solution and applying it like a sticking plaster to all his sales hire problems.
 
Main problems
We were able to identify a number of the problems that are common to sales team recruitment and development. The first is accepting what a sales candidate says about their past achievements at the interview without probing their actual involvement. The second is trying to clone a “current success”.

Review of process
Finally we reviewed how the company integrated salespeople into his team. Dispensing with the “one week induction” and replacing it with a transition map dovetailing all the required competences identified for their success.

You would think that the topics of talent shortage and managing employees productivity were two business issues. I’ve had a few conversations with senior Directors bemoaning the shortage of talent, particularly in IT, banking and technology and both have been linked to how to manage employee productivity.

The Talent Crunch
Most people would think that with the financial crisis that finding good talent would be easy, but in fact this isn’t the case for many specialist areas. Indeed the Manpower Group report that a third of companies report difficulties in finding good talent. There is a talent crunch in India, where it’s reported that sixty seven percent of companies are unable to find the people they need. In Brazil the figure is thirty four percent and the shortage is pushing up wages and inflation.

The skills shortages in these countries is likely to have an affect on our own talent pool and attract our own talent towards high salaries and a better style of living than can be gained within Europe or the USA. This will be true even of bankers who see career progression in terms of London and New York.

Managing Employee productivity
If most businesses can’t find all the talent that it requires, or afford it when it can, then it needs to invest some time and money to improve the productivity of its existing talent. That’s the reason that people have been asking me how to measure, manage and improve their people’s performance and productivity.

It’s been interesting that in the mind of the Directors I’ve spoken to that they seem to have a vision of a “One size fits all” solution. The problem is that there isn’t a one size fits all nor is there an immediate solution to making internal talent more productive. Different strategies need to be employed for salespeople as opposed to IT,  Senior staff as opposed to Non-Executive Directors and so on. In the long-run, however, it might be the only viable and affordable solution. 

Some months ago I was contacted by someone saying that a friend had given them my name and contact details and, after hearing all the positive things said about me, would love to meet me. Well what would you have done… Delighted, I said “of course”.

“Something’s come up…”
Meeting was a bit difficult as we lived over a three hour journey from each other and so a one hour SKYPE call was arranged. On the day scheduled for the call I received an email saying that “something had come up” and could we rearrange. Something coming up happens to the best people and naturally I agreed.

Second appointment
After I had juggled my diary a little bit we diarised a time for the second SKYPE appointment and another hour was set aside . Now, let’s agree that video conference meetings are appointments. Just that they are over the computer screen. Then a few hours before the time I received another email, “Sorry, I’m up to my eyes, can we reappoint. I’ll call you”

Would I be desperate to try to meet for a third time?
I was staggered by the arrogance that not once, but twice my time was seen as being unimportant, that her obvious inability to manage her time should inconvenience me and that I would be desperate to try a third time to meet with her! Since then I’ve received newsletters and various other updates about her business with offers to purchase products but no aplogy.

It ended very expensively
Yesterday I had a meeting in The City of London and her name came up in conversation. I related the story of the failed SKYPE Calls and within a flash, that even surprised me, her involvement in any future projects was rejected. It just shows that arrogant rudeness can end up being very expensive!

It never ceases to amaze me how often business change fails and how many change initiatives end up costing huge amounts on money in lost opportunities.

BETFAIR parts with Chief Executive
For intance yesterday’s Sunday Telegraph business section reported that BETFAIR has parted company with their Chief Executive just three months after the online trading platform had been launched. “In recent months analysts have questioned how successful the roll-out has been” of the LMAX platform and the shares have fallen 25% in less than six months.

Another example I observed last weeek was a sales team that had restructured to allow the team to concentrate on “High net worth clients”. Those clients not lucky enough to be categorised in the high net worth category would, in future, be dealt with from a call centre. Sales have subsequently fallen dramatically as the majority of sales came from small purchases. Now categorised as “insignificant” these customers reacted badly to being advised by people who did not have the experience to advise them properly. Result reduced sales and lost clients.

Executive Paralysis
Too often a contributory mistake is “Executive Paralysis” in identifying and accepting that initial thinking and planning could be flawed and to have a back-up plan. This rejection of potential failure creates a position that when fallback options are needed they are introduced with a sense of panic, adding more to the “costs of lost opportunity”

I’m fed up and tired with the number of emails that I get offering to share the secrets of on-line riches and how to earn $2000, $4,000 a month or more by using Twitter, facebook and other social network sites. Proof of their success is always provided by testimonials and their Paypal or Clickbank account statements and it all looks very impressive and plausable.

Indeed some people are running weekend long sales seminars where a troop of people all explain how they have made a fortune on-line and promise to share the same information with a small group…for a fee and it’s all guaranteed!

However, I work to the rule that one of my friends, who runs a hugely successful social media site, who said “When considering products on-line, the one thing to remember is that no one has a goal to make you rich”

Last night I was at a business networking event and thoroughly enjoying myself when an old contact approached me and started to moan about “how slow business is”. His main misfortune was that companies weren’t buying his product and his pitches seemed to fall on stony ground.

He was downbeat, defeatist and depressed and after spending five minutes trying to motivate him to think more positively suggested that he was not going to improve his situation by spending time me. I was, after all, a friend who was never going to buy from him because I’m not his market and that he needed to be making new contacts, working the room, and not sticking with the familiar.

“Well thank you for being sympathetic!” He said with a growl
I ignored the veiled criticism, smiled and introduced him to the people I had been talking to earlier and who I thought might be in a position to need his expertise. Within a few minutes I saw that he was on his own again.

This morning I hear that retail sales had their worst ever December and thought of my friend. Could we in the UK be, unnecessarily, talking ourselves into another downturn, worried about inflation, afraid of the future, terrified of Government spending cuts and generally making ourselves depressed?

Probably!

After only five months of regularly using video on my blog over 2000 views. The most popular have been those on asking and answering interview questions for sales jobs. Perhaps in the current financial climate that’s not surprising but it has encouraged me to upload more videos on recruiting and managing sales teams.

Most viewers come from The UK, USA, Canada, Kuwait, Australia and I hope that everyone will continue to find them useful.

How to motivate the sales team to achieve target is a topic that keeps sales managers awake at night. Yesterday a group of sales managers in my network talked about retaining and motivating salespeople at one of our regular meetings.

Their insomnia was the thought of their top sales people leaving the team. In the past huge rewards could be given to top salespeople but in these times throwing money at saslespeople to retain their loyaly is more difficult and in any event in the long run it will fail as, one day, all the best salespeople will leave.

A lot of suggestions were made and the group asked if I could put some of the ideas on film for the one absent member of the group. Having made the first I think it’s worth sharing with everyone in my network and, if popular, then I’ll create a series on salesteams.

Motivating A Sales Team For The Long Haul