Curt's Corner: Tip for Increasing Your Sales Management Effectiveness
By Curt Nelson, EDC President & CEO
The sales discipline is probably the most misunderstood area in any given company, yet it is traditionally one of the largest investments. A recent MONEY Magazine article on top paying jobs validates this point, “Sales directors make big bucks because they bring in big bucks for their employers. ‘Sales is the lifeblood of any company, and that's why it's one of the highest-paid professions,’ says Robert Boroff, managing director of recruiting firm Reaction Search International.”
Furthering the complexity of “sales” as a successful component of most companies, is that few owners of growing companies have had previous experience hiring, developing, or leading sales teams, yet it is clearly vital to growth and success.
So, what can an owner or executive do when they are struggling with managing a sales person or team, when they don’t have previous experience upon which to draw? The best answer is to hire someone with a proven history in sales management and let them handle the job. But, if that is not in the budget, then here are a few simple pointers that will help improve your sales results.
1. First, make sure you actually have a sales person. Most people with a sales title are far from trained sales experts, and it is critical that you hire the right talent. It may be that you cannot afford a seasoned professional, but there is a big difference between those that are sales driven and those that are not. Get the help of a recruiter or mentor that understands how to screen and hire “sales people” and hire talent that has a likelier chance at success.
2. Craft a compensation plan that aligns the business’ goals with that of the sales person’s activity and income requirements. A quality sales compensation plan traditionally has some base salary component and a reasonable level of compensation based upon individual performance to drive behavior. Make sure that the total compensation available is in line with the talent you need – you get what you pay for.
3. Meet with your sales personnel every week to understand their daily activities, what is in their sales funnel, what the obstacles are, etc. One of the major frustrations of non-experienced sales management is “not knowing” what is happening and assuming the sales person is not doing anything. When sales are not occurring, it is because A) the product or service is “wrong” in some way, B) the prospects being contacted are inappropriate, or C) the sales person is ineffective. Regular communication will help you figure this out and make changes accordingly.
4. Get an experienced sales mentor or consultant to help you. No matter how much you try to learn, if you do not have the experience set to understand what you are being told, you will remain in the dark, get frustrated, and make bad decisions.
Sales is a science-based profession, like all others, and it requires equal focus and investment. Assuming that anyone can sell based upon the genius of the product, while commonplace, is naive thinking. Hire the right talent, get the right support, and build a sales organization that drives your business success.
