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Sales Performance: A Reality Check

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Information about Sales Performance: A Reality Check
Business & Mgmt

Published on October 22, 2008

Author: TrueConnection

Source: slideshare.net

Description

presented by David Hoffmeister, Director of the DePaul University Center for Sales Excellence, at the TrueConnection 2008 Sales Performance Management Conference, hosted by Callidus Software
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Sales Performance: A Reality Check

Overview Introduction DePaul University Center for Sales Leadership Selling Environment Drivers of change What is the impact? How are we doing? High Performing Sales Organizations Performance traits Best and worst practices Management Challenges Talent management Performance metrics Technology tools Questions

Introduction

DePaul University

Center for Sales Leadership

Selling Environment

Drivers of change

What is the impact?

How are we doing?

High Performing Sales Organizations

Performance traits

Best and worst practices

Management Challenges

Talent management

Performance metrics

Technology tools

Questions

Introduction

DePaul University Located in Chicago, IL Largest Catholic university in US 9 th largest private university in US 23,000 students overall 4,500 students in business 45% of students are racial minority Top 10 MBA program ranking

Located in Chicago, IL

Largest Catholic university in US

9 th largest private university in US

23,000 students overall

4,500 students in business

45% of students are racial minority

Top 10 MBA program ranking

Center for Sales Leadership Largest sales program in US 1 of 13 with undergrad program 1 of 3 with graduate program 600 students enrolled quarterly 175 graduates each year Partner with major firms Deep faculty expertise

Largest sales program in US

1 of 13 with undergrad program

1 of 3 with graduate program

600 students enrolled quarterly

175 graduates each year

Partner with major firms

Deep faculty expertise

Selling Environment

Drivers of Change Trailer and Dickie – Harvard Business Review – July/Aug - 2006 Elusive Decision Makers 35% - Meeting 42% - Presentation 18% - Actual Sale Divergent Sales Cycles New sales cycle Enter in mid-cycle Buyer informed High Level Skill Sets Higher quotas More reports Less support Instant Information Availability Information glut Info asymmetrical Transfer of power

35% - Meeting

42% - Presentation

18% - Actual Sale

New sales cycle

Enter in mid-cycle

Buyer informed

Higher quotas

More reports

Less support

Information glut

Info asymmetrical

Transfer of power

What is the impact? Technology has accelerated product parity in all categories Sales force performance is often the only competitive advantage Sales force performance is often the only customer value

Technology has accelerated product parity in all categories

Sales force performance is often the only competitive advantage

Sales force performance is often the only customer value

How are we doing? Accenture and The Forum Group, 2004 Even in high performing organizations, 56% of executives rate their sales force as mediocre !

High Performing Sales Organizations

Performance Traits Prospecting skills People skills Clear climate Nuts and bolts The Forum Corporation - 2004 Research Report

Prospecting skills

People skills

Clear climate

Nuts and bolts

Prospecting Skills Higher on Finding and Winning Customers Key is sales person’s ability to expand “turf” The Forum Corporation - 2004 Research Report

Higher on Finding and Winning Customers

Key is sales person’s ability to expand “turf”

People Skills Higher on Strategy, Coaching, and Motivation Key is managers’ analytical and people skills The Forum Corporation - 2004 Research Report

Higher on Strategy, Coaching, and Motivation

Key is managers’ analytical and people skills

Clear Climate Higher on Clarity, Commitment, Responsibility, Recognition Key is climate of clear expectations tied to rewards The Forum Corporation - 2004 Research Report

Higher on Clarity, Commitment, Responsibility, Recognition

Key is climate of clear expectations tied to rewards

Nuts and Bolts Execution Higher on Everyday Execution Key is managing opportunities and strategic accounts Poor in managing info systems (CRM) The Forum Corporation - 2004 Research Report

Higher on Everyday Execution

Key is managing opportunities and strategic accounts Poor in managing info systems (CRM)

Best and Worst Practices Things That Are Good Building relationships Strategic account management Dedicate, passionate, committed Responsible and accessible Things That Need Improvement Effective use of CRM Better recruiting, bench strength Better able to apply technology Better training in selling value and solutions The Forum Corporation - 2004 Research Report

Things That Are Good

Building relationships

Strategic account management

Dedicate, passionate, committed

Responsible and accessible

Things That Need Improvement

Effective use of CRM

Better recruiting, bench strength

Better able to apply technology

Better training in selling value and solutions

Management Challenges

Management Challenges Talent management Talent and training war Turnover and retention Performance metrics Existing business New Business Technology Tools Leveraging technology What’s in it for you? “ Understanding What Your Sales Manager Is Up Against” Trailer and Dickie – Harvard Business Review – July/Aug - 2006

Talent management

Talent and training war

Turnover and retention

Performance metrics

Existing business

New Business

Technology Tools

Leveraging technology

What’s in it for you?

Companies tell us they have… Limited talent pools High recruiting and training costs Excessive and costly turnover Lack of racial and ethnic diversity DePaul University Corporate Interviews 2004-2005

Limited talent pools

High recruiting and training costs

Excessive and costly turnover

Lack of racial and ethnic diversity

A talent war is beginning… Median Age of Work Force US. Bureau of Labor – Monthly Labor Review – November, 2007

over fewer replacements… US. Bureau of Labor – Monthly Labor Review – November, 2007 Companies will lose 40% of their senior talent % Change in Labor Force (2006-20016) Inadequate to replace needed talent

… trends aren’t encouraging. Manpower ® - “ sales positions most difficult to fill ” Only 43% of firms have formal training program* On-boarding costs often exceed $20,000* Investment to B/E ranges from $35,000-$200,000* 25% of firms report turnover greater than 20%* Each turnover costs average $67,700* (w/o lost sales) *DePaul University Omnibus Survey 2006-2007

Manpower ® - “ sales positions most difficult to fill ”

Only 43% of firms have formal training program*

On-boarding costs often exceed $20,000*

Investment to B/E ranges from $35,000-$200,000*

25% of firms report turnover greater than 20%*

Each turnover costs average $67,700* (w/o lost sales)

Talent Management Talent and Training War College education programs Lower time to break-even (30% faster) Higher retention (40% longer) Turnover and Retention Train at every career stage Provide clarity of task and compensation Manage individuals one at a time

Talent and Training War

College education programs

Lower time to break-even (30% faster)

Higher retention (40% longer)

Turnover and Retention

Train at every career stage

Provide clarity of task and compensation

Manage individuals one at a time

Performance Metrics Overall revenue Overall profitability Calls, leads, prospects Pipeline management New account growth Existing account growth

Overall revenue

Overall profitability

Calls, leads, prospects

Pipeline management

New account growth

Existing account growth

Technology Tools PROSPECTING CUSTOMER RELATIONSHIP MANAGMEMENT PERFORMANCE MOTIVATION COMPENSATION

Prospecting Higher on Finding and Winning New Customers Company business data Personal information and contacts Industry information and profiles Selling information section Integrated with SalesForce.com

Higher on Finding and Winning New Customers

Customer Relationship Management Higher on Everyday Execution Internet based on-demand data Lower capital and maintenance cost Tied into corporate database with live feed Large software library on AppExchange

Higher on Everyday Execution

Performance Higher on Strategy, Motivation and Coaching Internet based on-demand data Tied into corporate database with live feed Correlates performance and behavior Integrated with SalesForce.com

Higher on Strategy, Motivation and Coaching

Motivation and Compensation YOU NEED TO CHANGE YOUR ATTITUDE! IF YOU JUST HAD A DIFFERENT ATTITUDE YOU (FILL IN THE BLANK)

Here’s it really works! MOTIVATION BEHAVIOR ATTITUDE

Motivation Changes Behavior Four Beliefs (+1) Must Exist To Change Behavior Must feel reward is desirable Must believe it is tied to performance Must believe it is achievable Must understand exactly and easily Must continually reinforce

Four Beliefs (+1) Must Exist To Change Behavior

Must feel reward is desirable

Must believe it is tied to performance

Must believe it is achievable

Must understand exactly and easily

Must continually reinforce

Motivation and Compensation Higher on Clarity, Commitment, Responsibility, and Recognition Provides timely clarity to sales force Flexibility to change plans mid-stream Rapid forecasting and analysis Integrated with SalesForce.com and SAP

Higher on Clarity, Commitment, Responsibility,

and Recognition

What’s in it for you?

Questions

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