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Much of what we discuss in The Czar Reports is about leading an organization to success. Many of our examples are taken from the world of work, and often from organizations that have a primary focus on internal operations. Several of our readers have indicated that leading those in operations is dramatically different than what it takes to be successful with a sales organization. I could not disagree more.
The arguments for this perception of a dramatic difference typically rest on assertions that "sales people are different," or "what sales people do is different" or "the uncertainty of sales puts different pressures and creates greater stress." Ironically, these are real differences between many jobs, but in fact, the differences shown are not materially different than the differences of scientists compared to mechanics; of accountants compared to clerks; marketing research analysts compared to television producers; football players compared to bank tellers. The list of comparisons can go on and on. Indeed, the leadership of one type of associate versus another is always going to require sensitivity to the functional and behavior differences. Sales people are different, but they are not uniquely different from other associates. In short, the old saw, "Different strokes for different folks" applies here. Given we have acknowledged that differences in associates requires different perspectives, a look at the differences can be instructive. That said, we must never forget that the core principles of leadership I have talked about in all my writings, and in particular in The Czar Reports, all apply to all associates. Admittedly, I have not managed every single type of associate possible, but my leadership experience is broad and varies across a wide range of businesses and functional activities, that I am confident that my experience reflects a very good universe of observations. In summary, I have found these principles universally applicable. I am confident that if you apply them, recognizing personality and behavioral differences, that you will agree. The question from most HR Directors is, "What are the key personality or behavioral differences and how do they match up with the key job responsibilities and accountabilities of a sales staff?" That question incorporates three critical leadership questions: 1) What does it take to be a good sales person and 2) What type of person succeeds and 3) How should a sales manager lead the sales staff? What does it take to be a good sales person? - The core success factors for a sales associate are the ability to: 1) connect with the prospect at a human and professional level 2) have deep product or service knowledge, 3) understand the prospect's needs or "pain", 4) convince prospects that the sellers product or service is the best solution for the prospect's needs 4) know when to "ask for the order." What are some of the personal behaviors that define the type of person who is likely to succeed in sales? - This list is nothing revolutionary, and I am certain that there will be others that our readers could add, however, my focus is on the key knowledge, skills and attitudes that leaders need to look for. Some of those are: - Solving new or unfamiliar problems
- Trouble-shooting problems independently
- Ability to understand the human behavior, motivations of prospects
- Speaking persuasively about your point of view
- Providing service and support or information by telephone
- Experience in selling ideas
- Overcoming objections or hostility, diplomatically
- Ability to accept and deal constructively with rejection
- Being a patient, sympathetic listener
- Ability to learn well and quickly
- Personable, easily connects with others
- Functioning daily with discipline
- Ability to function independently, while also being social when required
How should a sales manager "lead?" – For the purpose of our leadership discussion, this is the most important question. No doubt, some of the characteristics of the first two question's answers are unique to sales staff, but far more obvious is the fact that most are equally as applicable to describe successful people almost anywhere. That said, how does this list of accountabilities, success factors and behaviors influence what a sales manager should do? Let's start with first six leadership principles I have discussed in my books and in The Czar Reports. First, it is important to Love the staff so much that we understand that each one of these personnel are unique individuals and that they are also intensely focused on success. There is no doubt that many sales personnel are quite competitive and many appear to be quite "money motivated." Indeed, since most sales personnel are on some type of commission system, it is essential that we acknowledge that they are clearly expecting to be rewarded with money. If the sales staff has a sizeable part of its compensation "at risk" then there is no doubt that they are going to be focused on sales success because it will be reflected in their ability to earn a living. It is also important that we understand that money, in many ways, is how they "keep score", not just the end motivation. The staff must know what the Expectations are. There is no doubt that most sales staffs are highly focused on the "goals" and sales quotas must be understood and they must be achievable. If they stretch so far that they do not represent reality to the sales associate, they will eventually give up. On the other hand, the organization must never make these goals so easy that the cost of the sales staff success outweighs the benefit to the sales goals of the organization. It is essential that goals be set, based on the true value to the organization, not just to the top line sales volumes. It is clear that many sales managers fall short on the Assignment of the right personnel to the role of sales associate. Recruiting "warm bodies" is perhaps one of the most significant errors sales organizations make. They rationalize that, since the staff is largely on commission and hence incremental expense, they can add more staff more comfortably. Unfortunately, that view ignores the cost of training and the cost of failure. It makes no sense to hire warm bodies, no matter where you may be in the organization. As most of you know, I am a fanatic about Development, and nowhere is there a greater need for development than in the sales function. Yet, all too often, sales managers take a "hands off" approach because they believe that the individual performer nature of sales means that they should leave the sales associate alone. Once again, this is a blunder. Most sales personnel, even the most seasoned, will need encouragement and on many occasion, "motivation." Just one example…nowhere in the organization does a staff encounter "rejection" more than in sales. It is essential that the sales manager be visible and engaged, every day. However, training is not the only development activity. The manager must remember coaching and cannot allow the sales associates to face failure without help. Even the best, need help. Remember, "The good get better, The Best Excel." The fact is, perhaps no part of the organization is more carefully Evaluated against expectations. Many in the operations or production function in companies probably believe they have a monopoly on measurement, but having managed all functions, I am convinced that high performance sales organizations are better measured than any other part of the organization. Not only are sales results measured, but process steps. Indeed, the best organizations have very carefully defined "sales funnels" and they measure performance against every step of the sales process and have rigorous expectations at each step. Failure to measure and hold accountable against targets and goals, ultimately will lead to failure. The evaluation is critical at all steps in the sales funnel process, not just results. Perhaps more than any other area in an organization, this evaluation must be incorporated into the development process Sales personnel thrive on Rewards. Most sales forces keep score by commissions earned; hence this is the most visible of the sales rewards process. Because this is a highly personal job, and because commission structures play to the immediate reward instinct of sales personnel, sales personnel are significantly responsive to non-pecuniary rewards. As always, it is essential that no rewards encourage behavior that is unwanted. This is often easier said than done, particularly when we celebrate initial success (today's sale), but fail to reinforce the need for meeting the longer term goals (this month's sales target). The sales manager must be on one hand "inspiration" and the other "perspiration." The sales team must be inspired and be encouraged to feel good about themselves, but at the same time, must be held accountable, each hour, each day to the "sales funnel" benchmarks. The sales manager must never let down. Much of sales is emotional connection, but most of sales is a simple function of the numbers..."a" calls will lead to "b" leads; which will then convert to "c" presentations; which then convert into "d" hot prospects; which then turn into "e" closed sales; which then turn into "f" customers who can then be farmed for cross or up-sell opportunities. An undisciplined sales manager is almost assuredly likely to become a sales associate again. One last thought. Many of those in the world outside of sales think of sales associates a "back slapping, glad handing, jovial, drinking and golfing specialists." I will admit that, there are some sales associates who will fit that model, but my experience is that, the truly successful, over the long run, sales personnel, are some of the most disciplined and hard working people I have known. In the current Media company where I have been the CEO for about nine months, I have been going to work in my usual, early morning style, only to find that as I go to the parking lot, there is almost always one car that has arrived before me at the building. Frankly, I paid no real attention to it, but in a meeting I had with a number of the company associates a couple of weeks ago, I discovered that the car belonged to one of our sales associates. Candidly, that associate is one of our top three sales associates, and she demonstrates m! y point precisely. She is there early because she is organizing her day, doing prospect research, getting the admin work out of the way and setting up the schedule for her to start her calls immediately when the normal work day begins. Focused and disciplined.
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