High Impact Sales Management

1. High Impact Sales Management …using modern approaches to dramatically increase your team’s sales performance

2. Profiles International • Founded 1990 • 700 offices in 90 countries • 45 Regional Offices • 45,000+ clients worldwide including:

3. The ‘80/20 Rule’- Fact or Fiction?

4. ‘Normal Distribution’ These pull sales out of the organization and put pressure on everyone Bottom Performers produce 32% less than the ‘Average’ producers These take up the slack for the Bottom Performers – but are highly mobile Top Performers produce 32% more than the ‘Average’ producers Source: “The validity and utility of selection methods in personnel psychology: Practical and theoretical implications of 85 years of research findings” Psychological Bulletin, Sept 1998, Vol. 124, No. 2, pp 262-274.

5. Real Life: Novartis • 45 salespeople averaged 109% of target • Top 10 averaged 125% of target (111% to 139%) • Bottom 7 averaged 92% (82% to 99%) More on this case study later…

6. Real Life: Data Service Organization • Just 14 Account Executives • Dramatic performance gaps • Average sales of 3 Top Performers: $1.25M • Average sales of 3 Bottom Performers: $850K More on this case study later…

8. The Real World: Analysing Your Sales team

9. About Your Team Let’s say you’ve a team of ten salespeople… …each carrying a quota of $600K

10. Meet Your Team • Tom $1,000,000 • Mike $1,000,000 • Tony $700,000 • Dave $700,000 • Sue $600,000 • Amy $500,000 • sherry $500,000 • John $400,000 • Charles $300,000 • Brian $300,000 • Two you call probably ‘Stars’, right? • Five you’d likely rate as ‘So-So’ • Three who’d generally qualify as ‘Passengers’

11. But what if you analyse their performance a little more closely?

12. Utility Analysis – A definition “Utility analysis is a quantitative method that estimates the monetary value of benefits generated by any intervention based on the improvement it produces in worker productivity. Utility analysis provides managers information they can use to evaluate the financial impact of any intervention, including computing a return on their investment in implementing it” - Bernstein, Allen L. “A handbook of statistical solutions for the behavioral sciences”. New York: Holt, Rinehart and Winston.

13. Utility Analysis – Assumptions Employees generate results that have monetary value to the organizations that employ them Employees differ in the degree to which they produce results even when they hold the same position and operate within like circumstances The implication is that the level of results produced by employees in their jobs have different monetary consequences for the organizations that employ them

14. Process Overview Rank your salespeople – top to bottom Create performance tiers Identify salespeople on each tier Identify average sales per tier Use this information to manage the business

15. Your Team - Ranked • Tom $1,000,000 • Mike $1,000,000 • Tony $700,000 • Dave $700,000 • Sue $600,000 • Amy $500,000 • Sherry $500,000 • John $400,000 • Charles $300,000 • Brian $300,000

16. Create Performance Tiers

17. Add all sales results and divide by three- to create performance break-points that will allow us to allocate our salespeople across three performance levels or ‘tiers’

18. Tom $1,000,000 Mike $1,000,000 Tony $700,000 Dave $700,000 Sue $600,000 Amy $500,000 sherry $500,000 John $400,000 Charles $300,000 Brian $300,000 $6,000,000 Total Sales

19. Total Sales divided by three $6,000,0003= $2,000,000 per ‘tier’

20. Assign Salespeople to Tiers Top Tier: Tom $1,000,000 Mike $1,000,000 $2,000,000 Middle Tier: Tony $700,000 Dave $700,000 Sue $600,000 $2,000,000 • Bottom Tier: • Amy $500,000 • Sherry $500,000 • John $400,000 • Charles $300,000 • Brian $300,000 • $2,000,000

21. Assign Salespeople to Tiers “Stars” Tom $1,000,000 Mike $1,000,000 $2,000,000 Middle Tier: Tony $700,000 Dave $700,000 Sue $600,000 $2,000,000 • Bottom Tier: • Amy $500,000 • Sherry $500,000 • John $400,000 • Charles $300,000 • Brian $300,000 • $2,000,000

22. Assign Salespeople to Tiers “Stars” Tom $1,000,000 Mike $1,000,000 $2,000,000 “So So” Tony $700,000 Dave $700,000 Sue $600,000 $2,000,000 • Bottom Tier: • Amy $500,000 • Sherry $500,000 • John $400,000 • Charles $300,000 • Brian $300,000 • $2,000,000

23. Assign Salespeople to Tiers “Stars” Tom $1,000,000 Mike $1,000,000 $2,000,000 “So So” Tony $700,000 Dave $700,000 Sue $600,000 $2,000,000 • “Passengers” • Amy $500,000 • Sherry $500,000 • John $400,000 • Charles $300,000 • Brian $300,000 • $2,000,000

24. Hire Star salespeople first time? Raise Passengers to So-So level? Raise So-So Performers to Star Performer level? Make sure I lose no So-So or Star Performers? “So how do I…”

25. Make sure I lose no So-So or Star Performers? Raise Passengers to So-So level? Raise So-So Performers to Star Performer level? Hire Star salespeople first time? “So how do I…”

26. How might this be done?

27. These all looked the same when hired… 32% less than average sales 32% more than average sales Average sales

28. What do you miss?

29. Salesperson in interview Here’s what you get!

30. Real Salesperson

31. If traditional approaches worked you wouldn’t have an issue… …but traditional approaches do not work consistently well!

32. 360,000 salespeople followed through sales careers over 20 years “It’s not experience – or college degrees or other accepted factors… …(it) hinges on fit with the job.” Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching for Better Sales Performance, ” Harvard Business Review, Vol. 58, No. 5.

33. “Six months after hire persons who had been job matched outperformed those who had not been matched. “Moreover, the differences widened after 14 months” Percentage of Top Performers in sales force – Job Match vs. Non Job Match Source: Herbert M. Greenberg and Jeanne Greenberg, “Job Matching for Better Sales Performance, ” Harvard Business Review, Vol. 58, No. 5.

34. Profiles Sales Assessment

35. Thinking Style Learning Index Verbal Skill Verbal Reasoning Numerical Ability Numeric Reasoning 1 2 3 4 5 6 7 8 9 10 Can she cope with the mental demands of your sales environment? 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 Behavioral Traits Energy Level Assertiveness Sociability Manageability Attitude Decisiveness Accommodating Independence Objective Judgment 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 Occupational Interests Enterprising Financial/Admin People Service Technical Mechanical Creative 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10

36. Learning Index Learning, reasoning and problem solving approach 1 2 3 4 5 6 7 8 9 10 Prefers time to think things through Deliberate approach to learning new skills Prefer a more routine sales environment Learns through experience and repetition Quickly understand client needs Fast problem solver Adapts quickly in fast moving negotiations Effective communicator of complex ideas Fast learner

37. Thinking Style Learning Index Verbal Skill Verbal Reasoning Numerical Ability Numeric Reasoning 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 Can she cope with the mental demands of your sales environment? Will she be comfortable in your sales environment? 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 Behavioral Traits Energy Level Assertiveness Sociability Manageability Attitude Decisiveness Accommodating Independence Objective Judgment 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 Occupational Interests Enterprising Financial/Admin People Service Technical Mechanical Creative 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10

38. Attitude Measures extent of positive outlook - of tendency to trust / expect the best of others 1 2 3 4 5 6 7 8 9 10 Endlessly Optimistic “Don’t worry, be happy” Deal with rejection easily Relaxed social style Quick to trust Pessimistic ‘Glass Half Empty’ Challenges remaining Positive in face of rejection Suspicious & critical of others

39. Sociability Social Style & Approach 1 2 3 4 5 6 7 8 9 10 Finds networking challenging Small talk doesn’t come naturally Happy in own company Keeps to oneself Naturally reserved Enjoy networking Conversational People Oriented Need social contact Comfortable in groups Everyone’s ‘new best friend’

40. Thinking Style Learning Index Verbal Skill Verbal Reasoning Numerical Ability Numeric Reasoning 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 Can she cope with the mental demands of your sales environment? Will she be comfortable in your sales environment? Will she be motivated to sell your products & services? Behavioral Traits Energy Level Assertiveness Sociability Manageability Attitude Decisiveness Accommodating Independence Objective Judgment 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 Occupational Interests Enterprising Financial/Admin People Service Technical Mechanical Creative 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10

41. Enterprising Interest in activities that involves persuading others, presenting ideas & plans, and negotiating/deal-making 1 2 3 4 5 6 7 8 9 10 Little interest in entrepreneurial activities May not enjoy negotiating Recognition & status not so important Enjoys entrepreneurial climate Wants to lead Likes to persuade Interested in recognition & status Motivated by entrepreneurial activities

42. “...(it) hinges on fit with the job…” • Can deal with the mental demands of their sales cycle position • Are comfortable with the demands of the sales environment they work in • Enjoy selling and are motivated to do it ‘Superior’ sales producers fit their jobs and:

43. Thinking Style Learning Index Verbal Skill Verbal Reasoning Numerical Ability Numeric Reasoning 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 Behavioral Traits Energy Level Assertiveness Sociability Manageability Attitude Decisiveness Accommodating Independence Objective Judgment 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 Occupational Interests Enterprising Financial/Admin People Service Technical Mechanical Creative 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 The JobMatch™ Pattern Shaded areas indicate the JobMatch pattern The JobMatch patterns show requirements for the sales positions in your company

44. Thinking Style Learning Index Verbal Skill Verbal Reasoning Numerical Ability Numeric Reasoning 1 2 3 4 5 6 7 8 9 10 Good Match 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 Behavioral Traits Energy Level Assertiveness Sociability Manageability Attitude Decisiveness Accommodating Independence Objective Judgment 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 Grey areas indicate the JobMatch pattern Red boxes show the candidate’s scores 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 Occupational Interests Enterprising Financial/Admin People Service Technical Mechanical Creative 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10

45. Thinking Style Learning Index Verbal Skill Verbal Reasoning Numerical Ability Numeric Reasoning Questionable Match 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 Behavioral Traits Energy Level Assertiveness Sociability Manageability Attitude Decisiveness Accommodating Independence Objective Judgment 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 Grey areas indicate the JobMatch pattern Red boxes show the candidate’s scores 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 Occupational Interests Enterprising Financial/Admin People Service Technical Mechanical Creative 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10

46. Hire Star salespeople first time? Raise Passengers to So-So level? Raise So-So Performers to Star Performer level? Make sure I lose no So-So or Star Performers? “So how do I…”