Thursday, June 29, 2006

Seven Tips for Effective Sales Performance Management

In many sales organizations, performance management sounds something like this:

"Are you going to make your number?"
"How many did you sell?"
"You need to get in front of five customers a day."
"You did great this year. That's why I know I can count on you for an additional 10% next year."

By nature sales organizations are revenue and numbers focused. Whether or not these organizations achieve their numbers depends, in large part, on how well they manage and leverage their human capital - their sales people.

Performance management, when designed and executed effectively in sales organizations, boosts sales productivity and helps retain sales talent. Below are seven best practices for implementing performance management in sales organizations. How does your organization stack up?

1. Communicate company and sales organization goals, vertically and horizontally. Does every manager, salesperson and support staff member know the sales organization's strategies and goals - and where their department and individual goals fit? Test this by asking various people in your organization to explain the links to you.

2. Focus on manager behavior first. Define manager competencies by doing a validated job analysis. Make sure the competencies stress performance management behaviors, such as setting clear expectations, observing salespeople in the field, coaching, addressing performance problems and developing talent.

3. Make sure all leaders talk about your culture and vision often. Do leaders just talk about numbers and revenue performance...or do they also talk about how to get those results? From the top down, send the message that your company expects people to get the “right results, the right way.”

4. Define and communicate competencies for salespeople. If you already have sales competencies, review them. Do they read like a generic job description (self-starter, aggressive, closer) or are they specific and unique to selling at your company? Think about what distinguishes your best sales performers, in terms of both results and behaviors. Chances are, in addition to being good closers, they show adaptability, they're open to coaching and feedback, they're constantly learning, and they welcome the opportunity to coach others.

5 . Focus your sales efforts, new products and strategic initiatives. Avoid flavor of the month. When changes do happen, communicate them clearly and have an open dialogue with the sales organization. Not everything is equally important. When you introduce a new initiative or product, ask, "What can we take away or stop doing?" Confused salespeople = confused customers. They don’t know what to sell and can’t keep up with the changes.

6. Link sales training, selection, incentive and performance management systems to your business goals and competencies. A rigorous, competency-based selection process will give you a clear profile of each candidate's strengths and development needs. When you do make your hiring decision, use the selection process data to help you create a development plan for the salesperson, starting him or her off on the right foot. Fold this development plan into the performance management process. Coach the new hire to leverage his or her strengths and develop in other areas.

7. Hold managers accountable for coaching and managing performance effectively. Often managers are accountable on paper, but in practice...managers who make their numbers are "forgiven" for poor interpersonal skills, lack of coaching or "not having time" to work with their reps. Decide if this is acceptable in your organization. If managers get their numbers, does it matter how they treat their salespeople, whether they have high turnover or whether they coach and develop their teams? If it does matter, put some teeth into your systems. Reward and recognize managers who develop salespeople and make their numbers. Assign consequences to managers who ignore or consistently mishandle the people-side of management. And don't forget to look at who you're promoting into management positions. Do salespeople get promoted to management as a reward or entitlement for good sales performance...or do they get promoted because they're motivated to lead others and have the skill and patience to coach?

©2006 The Loyalty Group. All Rights Reserved. www.TheLoyaltyGroup.com

Wednesday, June 28, 2006

Three Tips for Staying Connected to Your Sales Team

One of the biggest challenges for sales managers today is keeping in touch with salespeople - and keeping them engaged. We asked 50 salespeople and their managers for their best tips on how managers can stay connected with their sales teams. We got a lot of "We don't do much that's creative" and "That's a great question...I could use some ideas" responses. Here are a few of the best ideas we did receive. And we know first-hand that they work, based on TLG's experience in working with sales organizations. We'd like to hear from sales managers and salespeople - tell us your ideas and we'll add them to the list! Email me at info@theloyaltygroup.com.

1. Do More than Talk about Numbers

David, a computer software salesperson from Chicago, says he communicates with his current manager "only when I have to." Conversations with his manager focus on the numbers, the sales forecast and "why didn't they buy from us?" In contrast, David describes a past manager who was "excellent." She would "take the time to walk through things, take a look at different angles (to approaching sales opportunities), and discuss the 'what ifs." This showed that she cared about his success, and motivated him by focusing on opportunities, not just the negatives.

2. Infuse Meetings with Learning and Fun

According to Monica Frederick, V.P. of Sales at ModernHealth, Inc., "Staying connected to the sales team on a consistent basis is one of the biggest challenges for a sales manager!" She uses meetings to build teamwork and keep salespeople engaged. In her biweekly meetings, she kicks off by reviewing the company's mission and team meeting ground rules. She has also been using The Loyalty Group's thinktwice® Sales Cards to make meetings more learning oriented. Each meeting, a sales team member takes a turn facilitating a 45-60 minute sales lesson from the thinktwice® Sales Meeting Leader Guide. Team members leave with in-field assignments and discuss their results at the next sales meeting. Monica has also chartered a Modern Toastmaster's Club for her sales team that meets biweekly, to build teamwork and strengthen presentation skills.

3. Schedule Sacred Time on your Calendar

There's a saying: What gets scheduled gets done. If you are like most time-challenged sales managers, you live by your calendar. Most sales managers would never miss a meeting with a big prospect, but are willing to reschedule meetings with salespeople for more important priorities. As a sales manager, your salespeople are your customers. You reach your goals through them. So treat them like your best customers. Schedule time on your calendar to talk on a regular basis. And keep those appointments. What should you talk about? Get them talking by asking for examples of:
  • The recent sales call they're most proud of.
  • The biggest sales challenge they've faced this week.
  • The best question they asked a customer this week.
  • The toughest objection they've heard recently and how they addressed it.
  • How they've applied a skill taught in a recent sales training class, and how it worked.

Just listen. You'll be surprised at what you learn, and the positive impact it will have on your relationships with your team.

©2006 The Loyalty Group. All Rights Reserved. www.TheLoyaltyGroup.com

Monday, June 26, 2006

Managing Customer Loyalty

About a month ago, I was promoted from Marketing Coordinator at The Loyalty Group (TLG) to the Manager of Customer Loyalty. Since it was a new position at the company, I was asked to help define the role and responsibilities…and decided to write on what Customer Loyalty means in today’s business world as well as here at TLG.

First, I opted to Google “customer loyalty” and 0.27 seconds later I came up with 28 million definitions.

Next, I thought about my past role as a Consumer Market Knowledge Manager for Procter & Gamble and what I’ve learned about Loyalty in my personal experiences Here are some of my insights, lessons learned, and some questions that I’ll be thinking about in my new role as Manager of Customer Loyalty.

  • Customer Loyalty often starts internally with Employee Loyalty. According to Deloitte Consulting there is a strong correlation between employee satisfaction and customer satisfaction and, in turn, between employee loyalty and customer loyalty. On my first day in this role, my manager made it a point to really define my goals, show me how they link to company goals and even wanted to know about my work style. Showing me where I fit in made me a loyal internal customer…and set the stage for on how I should communicate to our clients. Ask Yourself: What can I do to first create loyal employees?
  • Customer Loyalty begins before the sale. Loyalty starts way at the beginning of the business cycle, when people start looking for a particular product or service. They may see your ad, hear about your company from a friend, or find your website while researching the Internet. After implementing a system to track visitors on our newly revamped website at TLG, I’ve learned the value of knowing who really is looking at what we offer. Where are they from? How long do they stay? Where do they click? These valuable numbers help me understand what seems interesting to website visitors and what keeps them coming back. Ask Yourself: What can I do to create loyalty from that initial point of contact?
  • Customer Loyalty is not just about getting positive feedback, but about being open to all kinds of feedback. To really get the valuable insight, you need to ensure that the customer is comfortable enough to tell you the good, the bad and the ugly. My family is in the restaurant business and they are constantly encouraging managers to get feedback from their patrons on a daily basis. One thing they teach is a role playing activity where the manager approaches a table and asks “How is everything going?” The standard answer from customers is usually an enthusiastic “Great!” Nothing more, nothing less. Next, we ask the manager to rephrase the question by saying, “It looks like everything is going well tonight. What ELSE could we have done to make your visit with us even better?” By showing customers that you are sincerely open to all feedback, you earn their respect and are much more likely to get useful, honest data. Ask Yourself: Am I making it easy for the customer to give me all their feedback, or am I encouraging just the feedback I want to hear?
  • You build loyal customers by actually TALKING to customers. In the age of voice prompted customer service lines and web contact forms, I’ve learned that most clients still yearn for an actual person. The other day a client had an emergency and couldn’t find training materials that had been shipped to them. You can bet that our voicemail system didn’t have an option to press 7 “for when you can’t find your materials and the meeting starts in 10 minutes!” People still appreciate that human touch sometimes. Ask Yourself: Am I really providing wanted customer service…or just making things more efficient for me?
  • You can earn the Loyalty of your suppliers by treating them like partners. At TLG we work with a Network of Associates, independent contractors with varying roles who choose how involved they want to be with our company. Because as independent contractors they are “free agents,” we must earn their loyalty or they’ll work for someone else. One of our latest initiatives has been to host complimentary Webinars for our Associates so they really understand what the company is about, and how to market us. We also developed a secure login section on our website to make their jobs more efficient while working remotely. Keeping our Associates loyal first, in turn helps keep our ultimate customer loyal. Ask Yourself: How can I earn the Loyalty of others who work with me?

The definition of Customer Loyalty is broader than I originally thought, and it looks like none of the 28 million Google answers really fit—but one thing I know for sure is that it already has had a big impact on me…and our business.

*To learn where the name The Loyalty Group came from, click here.

©2006 The Loyalty Group. All Rights Reserved. www.TheLoyaltyGroup.com

Tuesday, June 20, 2006

What Makes a Successful Project Team?

It seems that these days, everyone's on a project team. There are new product development teams, process mapping teams, customer service teams, sales teams, special project teams, strategic planning teams...teams to discuss teamwork, teams to oversee other teams, etc.

This means lots of time spent in meetings, much of which is spent spinning wheels. During these meetings, people often bring other work, check their Blackberries, or think about what else they could be doing if they weren't in this meeting.

My experience is that most project teams, departmental or cross-functional, aren't very efficient or effective. So what makes a project team successful?

Last week I was at Harvard, delivering a half-day session for the Maynard Institute's Media Academy, a leadership development program for high-potential managers from diverse backgrounds. The group of 20 managers was divided into project teams at the beginning of the week-long program and given a business case study. The week ended with project team presentations, with each team giving their analysis and recommendations. My session was early in the week; the topic was team dynamics and process. The point was to help these project teams recognize what makes teams successful and what derails them, to set them up for success.

Below are some of the key points from the session I delivered.

- Research from Eckes and Associates shows that the root cause of most project team failures is poor team dynamics.

- The Loyalty Group's experience shows that the following are success factors for project teams:
  • Common, clearly-defined goals.
  • Trust and a “safe” environment.
  • Everyone participates.
  • Perceived importance of the project or goals.
  • Team agreements/ground rules.
  • All team roles are fulfilled (diverse styles, approaches, ways of thinking, etc.)
  • An effective Team Process (see graphic below, copyright The Loyalty Group, Inc.).

- Most project teams move too quickly through the first step, defining outcomes, deliverables and milestones. They don't clearly define the end. As I told my Mayard group, one of my mantras is "Start with the End." If you're not clear on where you're going, why, and what success will look like...you're throwing darts at a moving target while blindfolded. It's inefficient and unproductive.

- Depending on the team dynamics and styles of team members, teams may get stuck in the assessment phase (over-analyzing) or jump to selecting solutions too quickly (driving to get the project done).

In our session, we used a Team Dimensions Profile, developed by Inscape Publishing. It worked really well and gave us a framework for talking about people's roles in teams. The Harvard session participants had very rich discussions after seeing their personal profiles and gained insights into why their project teams were working or stuck in storming (wheel spinning). My only advice if you're going to use this instrument is that you do it yourself first, then walk your participants through it step by step. The instructions are a bit confusing in the participant assessment booklet.

There is so much more out there on team dynamics and what makes project teams work. It's a very complex topic (read Animal Farm or Lord of the Flies). What can you do? The next time you're assigned to a project team, step up by: insisting on a clear process that "starts with the end", defining roles and ensuring diversity on the team, and facilitating healthy discussions about team dynamics along the way. Your time is too valuable to waste.

©2006 The Loyalty Group. All Rights Reserved. www.TheLoyaltyGroup.com

Monday, June 19, 2006

Freakonomics - Smart Airplane Reading!

I'm getting ready for a flight to Salt Lake City tomorrow. I'll be delivering a one-day Coaching and Performance Management session at Wasatch Advisors. I'm packing my latest "favorite" business book, Freakonomics by Levitt and Dubner. Since I'm now seven months pregnant, flying isn't as comfortable as it used to be, so an engaging book is more valuable than ever.

I bought Freakonomics at the ASTD conference after seeing Levitt and Dubner keynote there. When I saw them on the ASTD agenda, I remember wondering what economics had to do with the Training and Development profession.

I get it now. This is a great, stimulating read. Anyone who's curious about the world - or wants to develop a healthy sense of curiosity - should read this book. Steven D. Levitt, who labels himself a "rogue economist", epitomizes the competencies of innovation, curiosity and analysis. He asks questions that no one else asks, sees connections between things that other people don't see, and takes risks by going places where other economists won't go.

American business needs more people who think like Levitt. He challenges conventional thinking and asks "Why?"

I highly recommend this book!

©2006 The Loyalty Group. All Rights Reserved. www.TheLoyaltyGroup.com

Tuesday, June 13, 2006

How to Select Job Candidates with Integrity (Pay Attention to Clues)

In the film Meet the Parents, Robert DeNiro's character is a parent/ex-CIA agent who is known as a "human lie detector." Although he had a real polygraph machine in his basement, he didn't need it. He could just tell when people were lying by talking to them. He would have made a great interviewer.

It seems to be getting harder to find job candidates who have strong integrity. Candidates who are "integrity-challenged" don't necessarily have criminal records, shifty eyes or sweaty palms. They may be normal-looking (even highly skilled) employees who hide mistakes or blame others, take credit for other people's work, violate copyrights intentionally or sabotage others when upset.

In our company's Selection in Action training, managers often ask us, "What can we do as hiring managers to select for integrity and weed out those who lack it?" The easy answer is...there is no easy answer.

The best we can do is set up an effective selection system that has validated, built-in assessments for integrity, including psychological testing, behavioral interviewing and simulations.

However, even the best selection system can suffer from human error. Think about it. Well-built cars don't have accidents. Drivers have accidents. The same goes for selection systems. Well-built selection systems rarely make mistakes. Hiring managers who use selection systems have accidents. The biggest "accident" a hiring manager can make in the selection process is ignoring the objective data that a strong selection process provides.

If your selection system is set up properly, candidates who lack integrity will give clues throughout the selection process. They won't come out and tell you that they lack integrity - they probably won't admit to lying, cheating or sabotaging others. Here are some examples of what you might see and hear during a selection process, that are clues to a candidate's questionable integrity:

- Denying that they've made mistakes in the past or that they've had failures. When candidates consistently make comments such as, "I haven't ever had a big failure or disappointment," or "I haven't had a conflict at work. I always get along with everybody," you know they're not telling the truth. If you hire them, don't expect them to own up to mistakes in the workplace.

- Showing up late for phone calls and interviews, rescheduling appointments, not following up as promised...and making excuses. No matter how much you love these candidates or how "perfect" they are for the job, don't ignore how they behave during the selection process. This is your best clue as to how they'll actually behave when you hire them.

- Telling stories about how they achieved a positive result, but cut corners or "fudged the truth" to get the result. As hiring managers, it's easy to be blinded by candidates' stories of making customers happy, saving the company money or making a sale. Don't ignore how they got those results. For example, a sales candidate who closed a million dollar contract at her last job may make a sales hiring manager salivate. But don't forget to ask how the candidate got that million dollar sale. Did she have to overpromise deliverables to get the sale? Did the sale actually cost the company money because the margins weren't high enough? Did she exaggerate her company's capabilities, or sweeten the deal with unauthorized "freebies", to close the sale? Dig deep and pay attention to the whole story.

Of course, none of this is a guarantee that you'll hire the perfect candidate with impeccable integrity. Like motivations or personal values, integrity isn't something you can see easily. But you can become more like DeNiro's "human lie detector" by engaging your integrity radar and paying attention to the clues candidates drop during the selection process. Chances are, candidates who are lacking integrity will subtly reveal themselves if you pay attention to the signs.

And remember, most people are good. Assume that people have integrity until they show you otherwise. Try to be smart and objective when hiring...without being cynical or prejudging.

©2006 The Loyalty Group. All Rights Reserved. www.TheLoyaltyGroup.com

Friday, June 09, 2006

Sales Training Best Practices Research

My PR person, Kimberly Hathaway, found this press release link. It's got some useful best practice research on sales training. I've used this site myself for other (non-sales) best practice business research. I recommend it. You have to register but there is some good stuff on it.


Recent benchmarking research completed by Best Practices Research and Consulting shows that the average sales employee receives 41.5 hours of training a year (based on a cross- industry study.) This research on the Design and Administration of Sales Training Programs (a complimentary study excerpt is available at http://www3.best-in-class.com/de215.htm) identifies how much training the average company provides to its sales associates, as well as the skills trained and the most effective medians for conveying information.

I also recommend trying the Best Practices company site for business best practices research on a variety of topics. You have to register but some of the reports are really interesting...great support for making a business case in an organization.

©2006 The Loyalty Group. All Rights Reserved. www.TheLoyaltyGroup.com

Monday, June 05, 2006

Toughen Up with Hard to Hear Feedback

In The Loyalty Group's June e-newsletter on Coaching, I promised my own personal story about how a coach impacted me. Here goes...

Several years ago my company was at a turning point and I had some tough decisions to make about our direction, and the role I would play as our company's leader. It was the perfect time to work with a coach.

We started with the usual stuff - goal setting, crafting my personal mission, my company's business plan, etc. We reviewed The Loyalty Group's values, which included Integrity. I stressed to my coach that this value was very personal to me - as well as critical to our business philosophy. I talked at length about what integrity looked like, why I valued it - and how I'd always prided myself on it.

In a later meeting, I shared with my coach a problem I was having with a long-term business associate. We were struggling to come to terms on a contract, and I thought that my associate was being petty. I was resentful that he was asking for what I perceived as unfair terms. I was considering pulling out of the relationship all together. I remember telling my coach, "This is causing me more time and stress than it's worth. It's easier to just walk away."

My coach asked if I'd shared my feelings with the associate.

"Not really," I said. "We've had lots of discussions about the business terms, but I haven't actually said how I feel, or that I'm ready to walk away. I don't think it'll do any good."

My coach called me out. He said, "So you don't truly value Integrity?"

I was taken aback. I asked what he meant.

He explained, "You say that you pride yourself on your high Integrity. Yet you're not being honest with your associate. You're stewing, stressing, complaining behind his back, talking to me about the problem, thinking that he's being petty...yet you haven't told him how you feel. Now you're thinking of ending this long-term relationship without giving him the benefit of knowing what's going on. How is that acting with Integrity?"

Now I don't recommend this type of tough-love coaching approach for everyone. My coach knew that, given my strong personality, it was what I needed. And he was right. His words were like icewater being thrown in my face. I had to rethink everything. Was it possible that I saw myself as someone who was candid and possessed high integrity - but was actually something different in practice?

This was an especially appalling thought for me, being a consultant. How many clients and organizations had I coached about "Walking the Talk?" But here I was, being called on the very same issue. I felt like a hypocrite.

Why am I sharing this story? Take what you want from it, but there are a few key lessons I learned:

- Great coaches are like great parents, in that they don't have to be your friends. If you want someone to always make you feel good, support you even when you're wrong and have laughs with...call a friend. If you want to hear the truth and be asked the tough questions that your friends won't ask...go get a good coach.

- When someone gives you feedback that hurts, there's probably some truth to it...even if the words themselves are harsh. My husband is an actor so I read some of the acting trade magazines. The world's most accomplished actors consistently say, "When I read a script and I'm afraid of taking the part, I know I have to do it. If it's going to be a tough role for me, it's probably the right one." Remember, from discomfort comes growth. When you get tough coaching feedback, take a deep breath, count to 10, resist the urge to defend yourself, and ask yourself, "What's behind this feedback?" Assume there is at least some grain of truth to it. Work with your coach to find it and do something about it.

In case you're wondering, I do believe that I've changed from the experience. After this coaching discussion, I had a very direct conversation with my associate. I won't lie. It was painful. But when it was done, we came out the other side in a very good place. We're closer than ever and have a new level of candor in our relationship. I always remember this when I'm confronted with a difficult interpersonal situation and I'm tempted to walk away. Face it. It'll be painful in the short-term, but easier in the long-term.

I'd like to hear your personal story about a tough coaching discussion. What's the most difficult feedback or coaching you've received - and how did it change you for the better?

©2006 The Loyalty Group. All Rights Reserved. www.TheLoyaltyGroup.com