Sales Management Case Studies

Paul Smith is the Sales Director of a leading pharmaceutical company. He has been in the industry for the last 10 years and has been a star in his various sales and marketing roles. His recent promotion, finds him managing managers. His leadership style has always been one of pace setting and leading by example. Having just gone through a sales force downsizing Paul has adopted an inspirational leadership style.

Many people say they lead by inspiration or that they strive to inspire excellence in sales. But what exactly does it mean to “inspire?” The word inspiration comes from the Latin word “spiarae” which means to breathe, to live. It is defined as 

1. To stimulate to action; motivate
2. To affect or touch

To this effect, Paul has worked very hard over the last 6 months to win the hearts of his sales management team and sales force. He has tried to personally connect with all members of the teams. He has met face to face with every rep in the sales force and has also met with many of the key opinion leaders. Positive comments like “this is the first time a sales director has met with me” coupled with endless requests to meet with customers has been an encouraging sign for Paul that this approach has merit.

As he has evolved from a manager to a leader, Paul recognizes that the best way to achieve extraordinary results is to inspire his team. Paul has always been a dynamo and a self starter. He has continually pushed himself to achieve. As a result of his drive and enthusiasm he has quickly been promoted into roles of greater responsibility. He has developed innovative sales programs and conducted exciting sales meetings that leave reps feeling highly motivated. He takes the time to recognise his people by sending encouraging notes and making inspirational speeches at sales meetings.

Paul is the type of leader that that can motivate the people around him to achieve extraordinary results.

Let’s see how Paul’s organizations inspires him

Sales leaders are responsible for meeting company revenue targets, motivating their teams and ensuring customer satisfaction. Interestingly, most large organizations make it difficult for these people to make a difference. They burden sales leaders with support people who complicate decision making, put up road blocks and prevent innovation. In fact, the decision making power shifts from these leaders to support positions that have little contact with the customers.

In Paul’s case, there are several non performing sales reps on the team, whom Paul would love to fire. HR and legal mandate that these reps are put on a performance improvement program for at least 6 months. Which Paul knows will only continue to have a negative impact on sales performance. Despite Paul’s development of some innovative programs, Paul and his team routinely come up against bureaucracy and road blocks.

Paul has found that even the smallest initiatives require discussions and approvals which continually drain his energy.

As a result, organizations inadvertently sap the enthusiasm and energy of their top leaders, them leaving them frustrated, burnt out and ready to leave.

Who does Paul share His frustrations with? Where does he go for inspiration?

The Boss -  His boss is far too busy and only reaches out when sales are down or there is an issue. In his present position, his boss is no longer an option. Paul’s boss has his own issues to deal with. He expects Paul to identify the problem and solve them. The last thing Paul wants is to appear that he  is not on top of his business.

His Peers - Early in his career Paul had many peers with whom he could discuss his frustrations with. Now they are distrustful and battle with him for resources and recognition.

His Direct Reports - Paul wants to shield them from bigger issues.

His Spouse - Paul’s spouse will listen to his problems, but even though she is sympathetic, she is not in any position to assist him.

His Coach  -  This is the best place to start. Paul’s coach is able to  provide him with a non-judgemental sounding board. All discussions are held in confidence. His coach is a friend,  motivator and mentor. Paul reaps the benefits of having a  coach. He leaves sessions energized, inspired and more  confident to tackle his most critical issues.

5 Ways to stay inspired in a non supportive high stress environment:

1. Hire an executive coach – Coaching provides executives with ongoing learning, focus, and personal accountability for development and inspiration. It is by far the best way for executives to stay focused and inspired. Executives who experience the power of coaching swear by it!
2. Read inspirational books – There are many leadership books and self-help books out on the market. Find the one that speaks to you. Sharpening your skills by continuous reading helps stimulate new ideas and reinforce the wonderful things you are doing.
3. Take mental breaks – Take a day off to extend your weekend. Take one day for yourself and reflect on your priorities and personal goals. Getting perspective helps you stay focused and inspired.
4. Exercise and eat well – A dose of healthy living, including regular exercise and diet help recharge your batteries and are proven stress busters. Personal health is usually is one of the first things that go by the waiste side in a hectic life style. Make sure you are getting enough sleep.
5. Take a leadership course – On-going development is a good source of inspiration and learning. External courses provide leaders with an opportunity to interact with likeminded executives and gain different perspectives.

Regardless which options you choose, it is essential that you stay motivated because your people need your energy as a source of inspiration. Good luck and stay inspired!

What if a call center worked just as well as hundreds of sales reps on the street? That’s the question raised by BNet Pharma after AstraZeneca disbanded almost all of its in-person sales force for the stomach drug Nexium and replaced it with telephone support.

The answer, at least according to Bernstein Research analyst Tim Anderson: “Such a sales model could be used for other mature brands.”

Here’s how it works. By the end of last year, AstraZeneca had all but shut down detailing on Nexium. Reps were cut or “redeployed to other brands.” Doctors who need samples, informational materials for patients, reimbursement information and the like can visit an Internet site to place an order or contact a 300-person call center.

“By having a call center and an Internet site where doctors can order materials and samples, [AstraZeneca] says it can adequately meet the needs of many prescribers at a lower cost,” Anderson explained to investors. Indeed, the analyst wrote, the company agrees that “there are more costs to come out of the system” and says that it’s “less than halfway through such cost-cutting activities.”

Moving doc-detailing online isn’t just an AstraZeneca strategy, either. Merck, for one, has been beefing up its online sales activities, setting up sites where doctors can review sales pitches and other info on various meds. And given that docs have greeted the move with enthusiasm, more’s sure to come.

by Tracy Staton

Coming up to the New Year there are a couple of things you can count on as sales professionals, one of which is that you quota will rise.  That’s not bad, it is just a fact, so the question becomes what can you do, now, to ensure that you can deliver.  The question comes down to how you can become more effective in what you do in the process of becoming more productive. 

To help you and your team achieve this we have brought together three sales specialists to share specific things you can do going into 2010 to get and stay ahead of the curve.  Over the next three days we will present three posts focused on things that impact how you sell, and how sales managers can help their teams succeed.

In addition to my post, you will also have the opportunity to get input from:

1. Myself

2. Trish Bertuzzi – Founder, President and Lead Strategist, of The Bridge Group, Inc. – Inside Sales Consulting.

3. The article below is a guest post by Tibor Shanto, Founder & President of Renbor Sales Solutions Inc., and creator of Objective Based Selling. You can find Tibor on twitter at @renbor.

A few years back, in a piece in the Harvard Business Review, it was stated that an 8% improvement in the productivity of your existing sales team will result in the same sales growth as if you were to add 27% more reps.  I am sure the numbers may have changed  in the three years since it was published, the underlying reality has not.  In fact what has changed is the ability of organizations and managers to add headcount, in the post-Lehman Brothers-era, cost restraint is the overriding mantra.  So with the added stress and demands on the average sales rep and team, the question becomes how to achieve this productivity without distracting the team or breaking the camel’s back.

To me if you have to focus on only thing it would be time allocation to improve sales velocity.  If you can focus your resources on better opportunities, you will not only move them through the process quicker, but create a way to not deal with opportunities that either will never happen or whose time has yet to come.  If you can allocate your time to those activities that have the highest RPA Return Per Activity, while developing the discipline to only execute those activities that move a sale forward, than you will increase productivity and sales closed.

To achieve this you will need to understand two key things:

1. What activities you should allocate time for and in what proportion?
2. What does the right prospect look like?

While number one is the more important, you really can’t deal with it until you answer number two.  The good news is that it is not as hard as it may first sound; it is laborious and dry work at times, but once you have the basic template, it is easy to update and will pay ongoing dividends. Go back and look at all the deals you have won over the last 18 months, and see what are the most common attributes shared by these.  Don’t just do it on an account basis, that is what these companies have in common, but also on a deal basis.  How did the deal unfold, number of meetings, people involved, roadblocks, accelerators, language, bet right down to cellular level.  Why did they engage with you in the first place, did they engage right away, or did you have to nurture them for a while; if yes then how long, what did they respond to, what were they hoping to accomplish, why did they not engage right away.  As a rule, if you are not the number one sales person in your company, you want to spend time looking at the above factors for the best rep at your company, really park your ego and make some money.

Do the same for deals you lost or did not happen, look at the ones you lost early, half way through your predictable cycle (you’ll know what your cycle is from doing the above), at the end of the cycle.  Again, how did you engage, were they in your lead pipe (different than your prospect pipe which active opportunities) too long or not long enough? 

Once you have done this, you will have two profiles, ones that you want to pursue vigorously, and those you want to avoid like Tiger does the media.  In some ways the economic climate over the last 12 – 18 months provides a good time to do this exercise, as you can truly see who clearly fits in to each group.

Now you can focus on who and how to best engage with the type opportunities that will help you work with people who will act like your successful deals.  When you engage with these people they will move more predictably, not always faster.  Remember that velocity involves both speed and direction.  There is an optimal speed, and when you reach it, it is not a good use of resources to keep pushing.  Where you can add to velocity and results is by fine tuning your direction, and when involved with the “right” prospect, their direction, after all you have the advantage of knowing because you did your work and went after them for a reason.

While it may be obvious, it is worth pointing out that the biggest impediment to productivity is time and resources spent on prospects that will not close NOW, this is why we raised nurturing leads.  Some are not ready NOW, so let’s manage them, put them in the “leads funnel”, which should have rules and attribute like your sales funnel. 

Once you know who (specifically), and how, and how long, you can now allocate time to those activities that are necessary to consistently execute, and not allocate time to things that don’t lead to sales.

Eliminate waste; accentuate the right activities, easy 8% right there.

Sales coaching is the management No. 1 activity that drives sales performance. The only problem is that managers have not been taught how to effectively coach. Coaching is a skill that takes time to perfect and unless effectively coached or trained managers make all types of blunders.

Do You Want To Increase Sales Performance?

Transforming your sales managers from good to great coaches can have a dramatic impact on sales. In fact, sales coaching is the management No. 1 activity that drives sales performance. The only problem is that managers have not been taught how to effectively coach. Coaching is a skill that takes time to perfect and unless effectively coached or trained managers make all types of blunders.

As the head of sales or as a frontline sales manager you can greatly enhance the performance of your sales team if you can develop great coaches.

Coaching Blunder #1 – “Telling vs. Asking Coaching”

As a sales manager you probably were a top sales rep. You may still see yourself as a problem-solver, like “If I solve this rep’s issue then she/he can make the sale.” As a result of your action orientation you are likely to tell the salesperson how to solve the issue. “Telling” does not create self-managing salespeople. In fact, there are numerous downsides to the tell-first approach.

First, you are not empowering your sales reps, who may perceive you as being a micro manager. Second, you are also creating a dependency on you to be their problem-solver. This creates endless emails, phone calls and resulting in needy reps. And third, you are not developing them. One of the critical areas for development is the ability to be a self manager.

Be aware of when you are in “tell” mode and remind yourself, when you have fallen into a bad habit.

Coaching Blunder #2 – “I’ll get to it Coaching”

Time management is a challenge we all face. With emails, meetings and administrative work what is a sales manager to do? If sales results are what you desire then the easy answer is to do the activities that will drive the greatest revenue. Generally we do the busy work first as they are the easiest to. It feels good when we are up to date on our emails. The stress is reduced when we have all our reports in on time and we have followed up on all our messages.

But all those activities don’t contribute to the bottom line. If great sales coaching can have a direct impact of up to 19% more sales, why is coaching not the #1 priority?

Stop making excuses and get out of the office. Get out in the field and make coaching your #1 priority. Your boss will thank you and your reps will make lots of money.

Sales’ coaching is the No. 1 management activity that drives sales performance. The only problem is that managers have not been taught how to effectively coach. Coaching is a skill that takes time to perfect and unless effectively coached or trained managers make all types of mistakes. This is the 3rd in a series of coaching pitfalls that mangers should avoid.

Coaching Blunder #3 “Laundry List Coaching”

Personal growth and change is a challenge for all of us. We all have strengths and areas for development. Mangers who decide who create a laundry list of areas for development will have little success. It is too difficult for sales rep to make wholesale changes in how they sell. Development is about working on improving 1 or 2 things and once the sales person has demonstrated that they have acquired the skill or behaviour then you can move on to the next area. 

From a sales reps perspective imagine getting a field report listing all of the things you do wrong? Some reps would not even read the report. Many will read and wonder where I start. Others may read it and be completely overwhelmed.

Great coaching is about focus focus and focus. Helping a sales rep improve in one area of their job can have a major impact on their performance.

Coaching Blunder #4 “One Size Fits All Coaching”

One of the key pitfalls sales managers fall into is when the take the “one size fits all approach”.

 How many times have we witnessed a sales rep working in auto pilot? This is the rep doing the same sales pitch to each customer and delivering the message in the same way. As coaches we fail to see when we go into auto pilot, taking the same approach with each rep.

Do you ever find yourself coaching all your reps the same way? Your feedback to each rep is the same? You have fallen into the rut of one size fits all coaching. Coaching differs from training. Training is about having everyone learn the same information or skills. Coaching on the other hand is about diagnosing each reps particular area for improvement. It is about adapting your coaching style to the individual and about developing individualised development plans.

Coaching is a one to one sport. It is about growing individuals to develop to their full potential.

Coaching Blunder #5 – “Way to go Coaching”

One of the key blunders managers make is not getting a commitment to change. They have done a perfect job coaching by asking all right questions, come to agreement on areas for development but forget to get buy in on how the problem will be fixed. When the manger and rep agree on an area for development it is critical to have the rep buy in to what steps they will take to develop.

This requires a simple 3 or 4 point plan which includes what the sales rep will do between coaching sessions. The key is to have the rep develop their own next steps and your role becomes one of holding them accountable. Without this in place the odds are that there will be no change in rep behaviour or skills on the next coaching session.

Great coaching means great performance. Sales organizations that embrace a coaching culture and invest in their front line managers’ ability to coach will have a competitive advantage and outsell the competition.

Do you want to increase your sales performance? Transforming your sales managers from good to great coaches can have a dramatic impact on sales. In fact, sales’ coaching is the management No. 1 activity that drives sales performance. The only problem is that managers have not been taught how to effectively coach. Coaching is a skill that takes time to perfect and unless effectively coached or trained managers make all types of mistakes.

As the head of sales or as a frontline sales manager you can greatly enhance the performance of your sales team if you can develop great coaches.

One of the key mistakes managers make is not getting a commitment to change. They have done a perfect job coaching by asking all right questions, come to agreement on areas for development but forget to get buy in on how the problem will be fixed. When the manger and rep agree on an area for development it is critical to have the rep buys in to what steps they will take to improve.

This requires a simple 3 or 4 point plan which includes what the sales rep will do between coaching sessions. The key is to have the rep develop their own next steps and your role becomes one of holding them accountable. Without this in place the odds are that there will be no change in rep behaviour or skills on the next coaching session.

Sales coaching is the No. 1 management activity that drives sales performance. The only problem is that managers have not been taught how to effectively coach. Coaching is a skill that takes time to perfect and unless effectively coached or trained managers make all types of mistakes. This is the 3rd in a series of coaching pitfalls that mangers should avoid.

Personal growth and change is a challenge for all of us. We all have strengths and areas for development. Mangers who decide who create a laundry list of areas for development, will have little success. It is too difficult for sales rep to make wholesale changes in how they sell. Development is about working on improving 1 or 2 things and once the sales person has demonstrated that they have acquired the skill or behaviour then you can move on to the next area.

From a sales reps perspective imagine getting a field report listing all of the things you do wrong? Some reps would not even read the report. Many will read and wonder where I start. Others may read it and be completely overwhelmed.

Great coaching is about focus focus and focus. Helping a sales rep improve in one area of their job can have a major impact on their performance.

In my last post I told you about my lunch with a VP of sales who was frustrated because the members of his sales management team were focused so exclusively on results that they neglected the care and feeding of their salespeople.

That executive sees the role of the sales manager as developing his or her people to the best of their potential. I agree with his a longer-term view that by developing your people, you get improved performance and better retention and you essentially develop a pool of succession candidates.

So how exactly do you know if your managers are effective coaches?

Here are five ways of Determining if you have Great Sales Coaches: 

1.      Asking vs. Telling

You can tell much about a manager’s coaching ability by observing the interactions with his or her salespeople. If a majority of the interaction includes the words “do this” or “why are you not doing that,” your manager is in “tell mode.” This highly directive and subservient communication makes salespeople feel like robots and produces mediocre performers. Frankly, it strains their relationship with their manager.

Coaching is about asking thoughtful questions. It is based on the belief that individuals have the answers to their own sales challenges. The manager’s role is to help individuals develop their ability to self-direct and solve their own problems. A coach would spend a majority of the time asking “how do you think you can best accomplish this goal?” or “how would you like to address this opportunity?”

Spend 15 minutes in one of your manager’s sales meeting and you’ll quickly determine if the manager operates in “coach” or “tell” mode.

2.      Time Spent in the Field

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.

Do you track the number of days each manager spends in the field?   The best coach likely is the one who does so most often.

3.      Accountability

Coaching is about accelerating a sales rep’s growth and ability to achieve personal goals and reach full potential. It’s a four-step process that: (1) identifies opportunities for improvement, (2) gains commitment, (3) develops a plan and (4) sets an accountability meeting to discuss progress. Set aside one hour a month to review your manager’s field visit reports. Why not go farther and follow three or four field visits with the same rep to see if the accountability for the reps to carry out their self-improvement plan is being reviewed by the sales manager? You are looking for progress toward improving one or two areas of the rep’s development.

4.      Sales Rep Engagement and Turnover

Many companies track two metrics: One, they perform an annual engagement survey in which the key is to drill down to the level of the sales manager. This provides insight into the differences between managers as well as the managers’ effectiveness in coaching their reps. Effective coaches will score much higher in sales rep engagement. Second, turnover is also a sign of reps’ relationships with their managers. In fact, 70% of top performers who leave will do so based on their relationship with their manager.

5.      Get out in the Field

Spend a couple of days in the field each month and get to know your reps.   Ask them about the level and quality of coaching they are getting.  Another approach, the dreaded “co-work with,” involves sitting in with the sales manager and his rep for a day. You observe the coach at work and get a firsthand perspective on the coaching effectiveness. I have never personally done this but I do know a sales director who has utilized this approach and I applaud his resolve.

Here’s to good coaching!

I recently had lunch with a highly successful VP of Sales. He explained that he was frustrated with the members of his sales management team, who he felt were focused only on results. He worried that they were not spending any time developing their salespeople.

At first blush, most of you might easily say you don’t see a problem with that. You wish your sales managers were more focused on delivering the sales numbers. That’s easily understood and probably true in many cases.

So why was my lunchmate so frustrated? Simply put, he believes sales managers should be developing his or her people to the best of their potential. He has an admirable longer-term view that is based on the belief that by developing your people, you get improved performance and better retention and you essentially develop a pool of succession candidates.

Most sales leaders would agree that a sales manager really can jumpstart a sales rep’s performance through coaching.  Studies reinforce this by showing that above-average coaches deliver 20% more sales. However, it also is true – and a major challenge – that managers generally have the greatest difficulty trying to coach their people.

So as the head of sales, you typically don’t oversee the coaching effectiveness of your team. How do you know how good your sales managers are at coaching? How do you know who are your best and worst coaches?

These are valid concerns, and deserve close attention. Read my next post for five ways to determine if you have great sales coaches.

It’s Q1 2009 and your sales are down, what can you do?

I faced a similar situation in Q1 2003. As VP of Sales of a Canadian pharmaceutical organization we faced the SARS crisis. Access to our customers became limited. Hospitals and physicians were also limiting sales rep visits.

Marketing started calling the sales numbers down for the year, blaming the SARS crisis. As head of sales I had few options. What I did know was that I had to utilize my resources where they were going to generate the greatest revenue.

Back to basics:

In sales your biggest resource is your sales force. The best place to deploy your sales force is in the field. The field is where they generate revenue. So we went back to basics. Activities such as administration, training and meetings are all important, but are non revenue generating. We initiated a simple 3 point plan:

1. All training was cancelled. Trainers were redeployed into the field to help coach sales reps.
2. Sales managers focused on field visits and were in the field four to five days a week.
3. Sales reps found creative ways to see their clients or focus-in on hospitals and physicians they could access. Their goal was to focus on making more sales calls.

These 3 basic steps allowed us to over achieve our sales targets by year end. In the end, the SARS crisis resolved itself. In 2009, the economy may take much longer to see an upturn, but the basic principles of redeploying your resources on revenue generating activities will still apply. 

Sales leadership is about focusing your resources on what will have the biggest impact.

Focused on your success,

Steven Rosen

www.starresults.com

Meet Jane.

Jane is an experienced and successful district sales manager who could work in any industry and for any company. In fact, there are many Jane’s in all companies. Jane is performance-driven, a very good coach and a people person. Each month Jane is put to the test with different sales reps she must coach to success.

Jane’s Profile:

Current:

District Sales Manager IBZ Inc. 2004-

Past:

Sales Manager Alba Inc. 2000-2004

Product Manager Alba Inc 1996-2000

Sales Rep Alba Inc. 1992-1996

Education:

Business Degree 1992

Courses:

Managing Effort Getting Results 2008

Professional Sales Management 2007

Sales Coaching for Success 2006

Professional Selling 1998

IBZ is a mid-sized technology company that has had some tough years but has turned the corner. It pays its reps a combination of salary and bonus for achievement of targets. This year the bonus plans have a super bonus portion which accelerates when a rep is 5% over quota.

Jane wants to get 2009 off to a great start. However, as she shared in one of our monthly coaching sessions, she is frustrated with one of her most tenured sales reps.

For some background, Jane took over an underperforming region last year and has helped lead the team to be in the top 25% of districts in the country. Jane’s goal in 2009 is to reach the top 10% of the country and she is focused. Her key area of focus is on finding innovative ways to grow the business. She wants her team to develop new business opportunities for lagging product lines.

As she reviews her team, the one rep keeps coming up. Ray has been with the company for over 20 years and has worked with 10 DM’s. He has been on 2 personal improvement programs (PIP) and has won several sales contests in the last few years.

Ray knows his stuff, he knows his customers and he knows how to get others in the office to do his work. When Jane works with Ray she has a good day although she wonders whether he works full days when she is not with him. He picks her up at 8:30 and drops her off around 4:30. The day is well planned and Ray has a good rapport with his customers.

Jane has invested a lot of energy trying to motivate Ray and a lot of time giving him positive feedback on his skills, customer service and business plans and on his year-end review. She would like to see the results if he would put the extra call each day.

In reviewing Ray’s 2009 business plan, Jane determine that he had not included any new target customers or innovative approaches to driving the business further. She is frustrated with Ray’s lack of initiative and drive.

Questions:

1. How do you motivate Ray to put in the extra effort required to be a top rep?

2. How much time would you invest in Ray in 2009?

See my thoughts on this page…..

Dear Jane,

Ray is an example of a rep that has all the talent but lacks consistent effort to be a top performer. The first thing we need to remember as managers is that it is not our job to motivate our reps. External motivation is short-lived. It is not necessarily sustained when you are not with your rep.

Another way to approach Ray is to encourage him to focus on developing new business. He may think he knows best and he will appease you by picking a few accounts. He knows he will have a new manager in time and will outlast that manager as well. Provide Ray with positive reinforcement only when Ray demonstrates that he is driving new business and initiatives. 

You can continue to invest in Ray’s development but will get limited returns for the time you invest. With 8 other reps you can achieve a better ROI by investing in those reps that put out a consistent high level of effort and are self- motivated.

Let me know how it goes,

© Steven Rosen, MBA

Sales Executive Coach