In a discussion with the head of sales of a mid-sized pharmaceutical company, he wanted to know why some front-line sales managers are much better than others at hiring top performers.

Before answering, I asked if he had a systematic hiring process. The reason I asked that is when there is no process in place the ability to select top-performing reps is dependent on the skills of the sales manager. Anytime you create a systematic process you tend be better at predicting success.

Well, he thought about the question and then responded: “You’re right. How can we create a better hiring process?”

So, with respect to that pharmaceutical exec, here are three critical steps to selecting top performing sales reps:

Step 1: Conduct a Fit Interview

As the title says, the goal of the initial interview is to assess fit. The beauty of this is that even in the absence of great interviewing skills, the sales manager reviewing a candidate’s resume can ask questions around work history, education, personal interests and accomplishments. The essential element here is to determine whether a candidate fits your culture and work environment.  And if the candidate does do fit the existing sales team, would you be able to work well with him or her? Is the candidate well-suited for a career in sales? This interview should last less than 30 minutes.

Step 2: Conduct a Behavioral Interview

After you have determined whether or not the pool of potential candidates would be a good fit for you and your organization, you bring back the best candidates for a behavioural interview. This is a more formal interview with structured questions. The key here is a pre-established list of questions related to the organization’s core competencies or leadership principles. Each sales manager is expected to use the list and ask each candidate the same questions.

Many managers lack the skill to conduct effective behavioural interviews, and some training may be required to improve their ability to effectively probe the candidate to provide specific examples of behaviors they have exhibited. This involves asking open-ended questions, listening carefully and taking notes of the degree of specificity and quality of each answer.

For each question the interviewer should take notes and rate the candidate’s response. After each behavioural interview the sales manager should rate each candidate.

This interview may take an hour or more. The goal is to determine if the candidate has clearly demonstrated the competencies to function at a high level since past successes usually are considered are an indication of future success. Watch for reps that generalise answers or say “we.” What we are trying to ascertain is evidence or clear examples of successfully demonstrating the competencies you have determined are important to the position.

Once all interviews are complete the manager can reflect on each candidate’s competencies. Some companies also may conduct additional interviews by other managers and HR during this step.

Step 3: Psychometric Test

Once you have narrowed the pool down to 1-3 potential candidates the use of psychometric tests adds value to the process. There are two possible issues: 1) that top performers don’t always stand out an interview and 2) that poor performers are very adept at putting forth a favourable impression in the interview process.

Psychometric tests add a level of science into hiring process. Many psychometric tests are able to predict performance by measuring source traits associated with success in sales. They are also great in identifying potential red flags that were missed in the behavioral interviews, which in turn allows the hiring sales manager to ask more questions and dig deeper to either validate or negate the red flags. This component adds a second sober look at the candidate that complements the interview process.

Adopting and following a consistent, multi-step process will ensure that your sales managers can determine who a top performer will be prior to making a hiring decision.

Good hiring

If you are interested in discussing how you can improve your hiring process feel free to contact me at steven@starresults.com or visit http://www.starresults.com

Guest Author, Greg Deming Peak Sales Performance

I found this blog very informative so I thought I would share it with you.

The core theme of a sales manager’s role is to drive the team to sell.  Though they may be the best sales person on the team, if they spend 100% of their time helping close business then sales results will plateau when their selling capacity is reached, and you will find that other team members have not developed.  This “halter” is a problem that many companies face as they try to migrate to the next level of growth.  As usual the best approach to solving a problem is to anticipate it, and solve it before it emerges.  So this article will focus on finding a sales manager who can grow beyond your needs today.

Driving the team to sell is a three legged stool.  Being effective at all three is important and requires a different set of competencies.  You may not get all the competencies you’re hoping for, but you must have confidence that given support, the candidate you select has the will to learn the skills.  The components are:

1.  Selling to large Accounts – When larger prospects are identified it is crucial that the sales manager become actively involved in selling process.  Whether or not they take the lead role depends upon the skill and will of the sales representative.  Regardless, the sales manager must feel accountable for ensuring that this enterprise opportunity successfully navigates through their buying process.  The manager must, at all costs, ensure that there is a complete understanding and consideration of customer requirements before making decisions and taking action.

• Identifying the Needs of Prospects – The sales representative must gather timely, direct information about customer requirements.  If the sales person identifies the opportunity early enough in their buying process they can influence and shape those requirements.  If they enter the sales cycle later in the prospect’s buying process they will be forced to conform to whatever requirements are already defined.
• Entrepreneurial Drive – Tenacity is the most important ingredient in any complex sale.  If the sales rep’s will begins to fade over time, the manager must insert themselves into the process.  To be of high value to the sales representatives your manger should demonstrate that they compete against a self defined standard of excellence.  They tirelessly purse a goal until it is successfully attained.
• Meeting & Exceeding Customer Expectations – Retaining clients is equally important as acquiring clients.  The first step in client retention is to make realistic short & long term commitments, maintain contact and then to exceed expectations by ensuring delivery of promised service.  Your sales manager must understand that brand equity is built one transaction at a time.

2.  Managing the Team – No matter the tenure of your sales representatives, their skill and will to do sales tasks will change over time.  Your manager must create an atmosphere in which sales people are completely comfortable asking for help.  At the same time they must be able to rapidly determine developmental gaps that are becoming unrecognized sales obstacles.

• Coaching & Developing Others – It is unfortunately true that 45% of managers hire sales reps that are not likely to succeed.  This problem is exacerbated by the fact that 56% of managers do not conduct routine win/loss reviews and 36% of managers do not effectively identify which sales reps need coaching.*  If you are not equipped to help the manager succeed then get them the help they need.
• Creating & Maintaining Effective Work Teams – The manager must create an atmosphere where individuals can work together as a team in pursuit of a common mission.  The behaviors you’re looking for are; encouraging multiple points of views, harnessing the necessary resources to help team members succeed, establishing a positive climate (see article on “Why Leaders Get Followers”) and nurturing a commitment to the mission.
• Directing the Team – Your manager must ensure that the team completes tasks and delivers targets.  There are times when coaching & good relationships are not enough.  The manager must be more direct and take action if necessary, without inflicting damage to the team environment.  Behaviors to look for are; aligning people behind a strategy even when decisions are unpopular, using authority productively to achieve results and setting expectations clearly while communicating the boundaries that exist.  In short, the manager must be adept at managing performance.

3.  Managing the Territory – whether the assigned territory is national or market specific, you will depend upon the sales manager to optimize results.  In order to effectively manage the situation the manager must be motivated to reduce uncertainty and stay focused on those intiatives that will yield the greatest return.

• Concern for Order – Reducing uncertainty requires an insistence on timely, accurate information.    You would see this drive expressed in such ways as; monitoring & checking information (CRM), insisting on clarity of commitments (conducting win/loss reviews), setting up and maintaining systems of information.
• Analytical Thinking – This may be an optional skill for your consideration.  If the sales manager will be your “Top Sales Officer” (CSO) then I would strongly recommend you look for this competency.  If the sales manager will report to an RVP, who reports to your CSO then this is a nice-to-have skill.  I freely admit that it is difficult to find analytical thinking skills in a pool of sales management candidates.  You are more likely to see good lateral thinking skills.  But in this rapidly changing economy, where buyer preferences are changing at incredible velocities then this analytical thinking skill is very important!

* Statistics from CSO Insights “Sales Performance Optimization” 2009 Survey Results and Analytics

It is very lonely in the world of blogging, so getting comments from clients is a validation that people are reading your thoughts.

After my last blog 5 Ways to Gauge Your Sales Managers’ Coaching, I heard from several clients. One VP of Sales loved the article and asked for copies for his Directors of Sales. Two heads of sales from different companies liked the post but did not want to send it out to their frontline sales managers because of my comment (see below) that coaching was more important than administration. Neither wants their sales managers to feel that it is OK to spend time in the field and avoid administration.

“Like many of us, managers tend to spend their time on the activities they are the best at and most enjoy.  A manager who focuses extensively on administrative tasks like submitting reports on time probably is less comfortable coaching. The manager who finds creative ways to get into the field and spend more time with sales reps probably sees the value of this time. Remember that administration doesn’t generate revenue or help develop your salespeople and that time spent in the field improves your reps’ ability to be the best they can be”.
 
Both were struggling with individual sales managers who were not completing their administrative duties on time and they were tired of excuses. So by sending this article out they felt that they would provide an additional rationale for the sales managers to avoid completing their administrative work.

For the head of sales, managers not getting reports from their direct reports affects their ability to do their job — hence their frustration with their reports that are not on top of their admin. I can certainly see their points of view and  I took two key points away from our discussions:

1. It is always important to manage your boss and keep them happy. Even though the administration doesn’t generate revenue, the old adage that “the job ain’t finished until the paperwork is done” holds true.
2. It reinforces my article that a Head of Sales has little visibility as to how well his or her managers coach. Given that lack of visibility, frontline sales managers can be poor coaches but perceived as good managers by their bosses.

The intended message of my blog was that coaching is the No. 1 management activity that drives performance. In fact, going from good coaching to great coaching can increase sales by 19 percent.  The long term impact of developing and retaining your salespeople is critical for the extended success of a sales organization. Given my experience with coaching many sales managers I find that coaching skills are an area that even the most successful sales manager can improve upon.

The message? Great coaching = great performance. Getting the paperwork completed = happy boss.

Do both and be great and happy!