Training For Sales People in Fast Moving Consumer Goods
Organization (Exploratory Study)
A Project Report Submitted to the Academic Council of the Tata Institute of Social Sciences
In Partial Fulfillment for M.A. in Human Resource Management and Labour Relation
By Vishal Harish Bhagat 2007HR060 Tata Institute of Social Sciences, Mumbai. March 2009
Research Guide: Dr. E. Toppo Signature of Research Guide
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Declaration
I Vishal Harish Bhagat a student of M.A. in Human Resource Management and Labour Studies 2007-2009 declare that the work on my research topic Training For Sales People In FMCG Organization is original and has not been submitted to any other institution for the partial fulfillment of any degree.
Additionally, wherever I have borrowed ideas from any external agency (books, journals and website) I have always quoted the source of such information.
Date: Name: Vishal Harish Bhagat Place
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Acknowledgements
Coming to end of my studies at Tata Institute of Social Sciences, I wish to thank all those who have helped me during these two years in my preparation for the degree, Master of Arts in Human Resource Management and Labor Relations. I must first thank my project guide Dr. E. Toppo, professor of School Management and Labour Studies. It was the continuous help, guidance and encouragement that I received from him for completion of my research. I am grateful to him for instilling a great amount of enthusiasm in me and also providing me with much needed academic support without which this study would not have seen the light. I am also thankful to the Dean of the school Dr. Sharit Bhaumik and all other faculty members of School of Management and Labour Studies for all the help they have provided me from time to time. I would also thank all the participating organization Saint Gobain Abrasives for extending me their support me and being a crucial part of my study. At the same breath I would like to thank all those free lancers, trainers who took out time for my questionnaires and discussions without which this work would not have been completed. My special thanks to my friend Ms. Shikha Sardar for helping me out throughout my study and providing critical inputs at important moments. Finally I would like to thank all my family members for always being their in all the moments of my achievements.
Thank You!
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Executive Summary
In the fierce competitive environment that the Sales Force of Fast Moving Consumer Goods (FMCG) operates, people development and enhancement of skills is essential in being effective. It is the sales, which act as significant stake holder in companies performance. They act as interface between the company and the clients and thus their needs assessment has to be done on time and effectively. This study targets to identify the various ways in which a HR trainer can influence the Sales Targets through various ways of training. This study can help any beginner in Sales as HR Trainer as well as Sales Executive to inculcate the basic ingredient in selling activity. It specifically addresses the basic skills a sales person lags i.e. of Communication which is most needy ingredient to hit the sales objective. It also throws some light for HR to learn them on, Recruitment and Remuneration part of HR activity. Keeping these objective in mind, 15 HR Trainee and 15 Sales Executive were selected to get the inputs on 2 separate structured questionnaire and a case study of Saint Gobain Group on sales included for analysis of it. The overall study takes into account almost all the practices to be followed by any HR trainer during training of Sales person. The agenda behind entire study is to propagate the importance of training for Sales executive in any FMCG organization. The training is an ingredient which if provided on time and in proper quality and quantity can be turn out to be great source for achievement for any sales executive. Also the training not only causes improvement in area of sales but there can be overall effectiveness can be achieved through it. My study lead towards the various ways through which training can be given to the sales employee. It has been proved by list recommendations I able to make at the end of the entire research study through many sources. 5
It has seen that seriousness towards training of sales people is need of the hour and making desperate efforts to achieve the same, cannot be denied from key function to perform by FMCG organization.
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Table of Contents Content Page No. Certificate i Declaration ii Acknowledgement iii Executive Summary iv Table of Contents vi List of Figures v
Chapter 1. Introduction and Literature Review 1
Chapter 2 Methodology 38 Chapter 3 Case Study 40 Case Study 1 Sales Training at ABC, Inc Case Study 2 Creating Major Sales Case Study 3 Moving the Needle on Sales -Using Video-Based Nano e-Learning to Create a Competitive Advantage in Sales Performance Case Study 4 Sales Force Training Manual at Saint Gobain Chapter 4 Findings and Analysis 64 1. Analysis of Primary Data Collected from HR trainers and Sales Executive 2. Finding and Analysis of Case Studies 7
List of Table, Figures and Graphs Table No 1 Training And Education 1 Figure 1 3 Figure 2 4 Figure 3 5 Figure 4 11 Figure 5 13 Figure 6 26 Figure 7 34 Graphs 1 35 Graphs 2 35 Graphs 65 to 70
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Chapter 1. Introduction and Literature Review Understanding Training When you hear the word Training what do you think of? You may think of a military drill sergeant training fresh recruits in boot camp. To state it simply, to train is to develop skill. Training is process of developing skills in order to more effectively perform a specific job or task. The Communication, leadership and management training focuses on teaching people to enhance their skill of relating to others. It can state as or predicted simply as people skill. Thus the central idea of having training is to focus on developing skills. A Skill is an ability to do something as opposed to knowing something. Training and Education: education is the process of imparting knowledge or information. People can educate themselves by reading, or they can have someone teach them what they want or need to learn. If the matter of comparison comes between Training and Education, it can state as in following table: AREA TRAINING EDUCATION Orientation Application Oriented Theoretical & Conceptual Emphasis Technical and Specific level of skill attainment Technical general and in comparison of knowledge level of others Learning On-the-job and off-the-job Class-room Scope Specific tasks General Concepts Payment Trainee is paid to learn Students pays to learn Priority Comprehensive listing of skills; each step in the process is pre-described Open ended approach to goal; not every in the process is pre-described 9
Training and Motivation Have you ever heard a motivational speaker either on TV on in person If so, you know that the goal of a motivational speaker is to persuade you to take some positive action such as working harder, setting goals, spending more time with you family, or losing weight. Motivational speakers often use strong emotional appeal by presenting personal stories or drawing upon the lives of others to encourage people to take action to improve their lives. Some trainers also work as motivational speakers. Motivation is an internal state of readiness to take action or achieve a goal. Motivational speakers attempt to tap that internal state of readiness by encouraging listeners to achieve a worthwhile goal. Training and Development helps in developing leadership skills, motivation, loyalty, better attitudes, and other aspects that successful workers and managers usually display. A desirable training system will be based on performance needs. Now, the performance requirement is changing constantly, due to individual transition, changes in market demands, quality requirements, future plans of the organization and more. Performance can be viewed as a product of ability, motivation and support, i.e. Performance = Ability X Motivation X Support
Training and Development The concept of development is a process often linked to both training and human resources. The word development added to other terms suggests broadening of behaviors or strategies to achieve a goal. Development is any behavior, strategy, design, restructuring, skill or skill-set, strategic-plan or motivational effort that is designed to produce growth or change over time. Organization seeks positive change, not just change for the sake of change. Positive change includes such things as making more money if the organizations goal is to turn profit for the owners or shareholders. If the organization is hospital, the desired change is to make people healthy (while simultaneously not losing money or even making money if the hospital is for health facility). Educational Table No. 1: Training And Education 10
institutions seek change to enhance student learning. Thus it means development is a process of helping the organization or individuals in the organization do their jobs more effectively. Development involves more effectively in achieving individual or corporate vision, mission and goals. Development is a broader, more encompassing function. Training is narrower in focus. There are a variety of organizational or personal intervention strategies that may be used to develop an organization; training (teaching peoples skills to perform a specific job or task) is but one of the methods used to effect change. Similarly educating people i.e. imparting knowledge is another strategy that may be used to develop people and organizations. So when word development is linked to the word training, it suggests that training is designed to achieve a broader function than just performing a specific skill. Training and development suggest that the goal of the training is to facilitate the transformation of the organization to bring about positive change not just for one person, but to have a larger impact on the organization. The following diagram gives more crystal clear comparison and thus differences Development, Education and Training. It shows that, Development encouraging growth and change, is a more comprehensive process than education and training. Education is broader in scope and purpose than Training. Training focuses on enhancing skills to perform a specific job.
EDUCATION DEVELOPMENT TRAINING Comparison of Development, Education and Training Comparison of Development, Education and Training
Figure No. 1 11
The Needs The Needs Centered Training Model Centered Training Model Assess Training Analyze the Training Task Develop Training Objectives Organize Training Content Determine Training Needs Select Training Resources ANALYZE ORGANIZATIONAL / TRAINEE NEEDS Complete Training Plan Deliver Training
Adult Learning Principles: Most instructional techniques are based on the well-researched science of teaching children, which is called pedagogy. Some educators believe that different techniques are more effective with adult learners. The science of teaching adults has been labeled Andragogy. Andragogy is based on assumptions about key differences between adult and child learners. Malcolm Knowles has enunciated several differences that adult educators consider important. First, adults already have a great deal of knowledge and experience that they can learn from and share with others. Second, adults want to take responsibility for themselves and their learning . Third, adults are problemcreated; they want to learn things that immediate usefulness in solving current problems. These characteristics mean that adults may resent being treated like children in a learning situation. That is, when a trainer assumes that adults know very little, that their experience is irrelevant, and that they should learn exactly and only what the trainer tells them to learn, adults do not learn effectively. One author suggests that the best and brightest employees often avoid organizational training programs because these pedagogically oriented programs insult their intelligence. Figure No. 2 12
In recent years, the principles of andragogy have been challenged. There is no concrete evidence that the learning process is truly different for adults as compared with children; some children respond well to student-centered learning, and sometimes adults prefer direction and instructor- imposed structure to self-diagnosis and personal responsibility for learning. Thus a pure andragogical approach is not always appropriate just because the learners are adults. For instance, it does not apply when the program teaches completely unfamiliar technical or physical skills or when the trainees have chosen to attend in order to learn from an acknowledged expert in the field. However, andragogical principles can contribute much to the design of management development programs and can be used in varying degrees to increase the motivation and personal responsibility of trainees in many kinds of programs. Switching between ins tructor- centered methods such as lectures and student-centered methods such as group discussion can help ensure relevance and maintain leaner interest over the course of a long training day. How Adults Learn: Adult learners Bring with them a wealth of experience. Define their own learning needs, based on their own perception of what they need, and have a basic desire to be independent (from a trainer) in doing so. Are self-directed Want to be able to position the offered-knowledge and skills in the context of their experiences. Can learn from each others experiences, and need interactive training methods (open communication between facilitator and participant, and among the participants). Need a safe learning environment Experience: something happens directly to the learner, maybe seeing, hearing, trying out something. Reflection (questioning): the learner asks themselves or others questions about what happened during the experience. 13
Thought: the learner uses the answers to the questions to build up a theory based on what actually happened during the experience. Action (testing): based on the theory, the learner tries something out, to rest whether the outcomes of an action are as they expected. s learners go through a continuous cycle of experience, reflection, thought and action, they start a gradual transformation. This is how adult learning process takes place.
Learning Principles: Training and development programmes are more likely to be effective when they incorporate the following principles of learning: 1. Employee motivation 2. Recognition of individual differences 3. Practice opportunities 4. Reinforcement 5. Knowledge of results (feedback) 6. Goals 7. Schedules of learning 8. Meaning of material , and 9. Transfer of learning
Motivation to learn is the basic requisite to make training and development programmes effective. Motivation comes from awareness that training fetches some rise in status and pay. Motivation alone is not enough. The individual must have the ability to learn. Ability varies from individual to individual and this difference must be considered while organizing training programmes. Regardless of individual differences and whether a trainee is learning a new skill or acquiring knowledge of a given topic, the trainee should be given the opportunity to 14
practice what is being taught. Practice is also essential after the individual has been successfully trained. It is almost impossible to find a professional cricket player who does not practice for several hours a day. Practice can be a form of positive reinforcement. Reinforcement may be understood as anything that (i) increases the strength of response and (ii) tends to induce repetitions of the behavior that preceded the reinforcement. Distinction may be made between positive reinforcement and negative reinforcement. Positive reinforcement strengthens and increases behavior by the presentation of desirable consequences. The reinforcement (event) consists of a positive experience for the individual. In more general terms, we often say that positive reinforcement consists of rewards for the individual and, when presented, contingent upon behavior, tends to increase the probability that the behavior will be repeated. For example, if an employee does something well and is complimented by the boss, the probability that the behavior will be repeated will be strengthens. In negative reinforcement, the individual exhibits the desired behavior to avoid something unpleasant. An example might by an employee who does something to avoid incurring a reprimand from his or her boss. If an employee who had the habit of coming late to work, assuming this as an unpleasant experience, the employee might begin to come on time to avoid criticism. Thus, the effect of negative reinforcement is avoidance of learning. Knowledge of Results is a necessary condition for learning. Feedback about the performance will enable the learner to know where he or she stands and to initiate corrective action if any deviation from the expected goal has taken place. There are certain tasks for which such feedback is virtually mandatory for learning. A crane operator, for example, would have trouble learning to manipulate the controls without knowing how the crane responds to control actions. Goal Setting can also accelerate learning, particularly when it is accompanied by knowledge of results. Individuals generally perform better and learn more quickly when they have goals, particularly if the goals are specific and reasonably difficult. Goals that are too difficult or too easy have little motivational value. Further, goals will have better 15
motivational value if the employee has a scope for participation in the goal-setting process. Probably one of the most well- established principles of learning is that distributed or spaced learning is superior to continuous learning. This is true for both simple laboratory tasks and for highly complex ones. Schedules of learning involve (i) duration of practice sessions, (ii) duration of rest sessions, and (iii) positioning of rest pauses. All the three must be carefully planned and executed. A definite relationship has been established between learning and meaningfulness of the subject learnt. The more meaningful the material, the better the learning process. What is meant in training must be transferred to the job. The traditional approach to transfer has been to maximize the identical elements between the training and the actual job. This may be possible for training skills such as maintaining a cash register, but not for teaching leadership or conceptual skills. Often, what is learned in a training session faces resistance back at the job. Techniques for overcoming resistance include creating positive expectations on the part of trainees supervisor, creating opportunities to implement new behavior on the job, and ensuring that the behavior is reinforced when it occurs. Commitment from the top management to the training program also helps in overcoming resistance to change. Though, it is desirable that a training and development programme incorporates all these principles, seldom is such a combination effected in practice.
The Training System A System is a combination of things or parts that must work together to perform a particular function. An organization is a system and training is a sub system of the organization. The System Approach views training as a sub system of an organization. System Approach can be used to examine broad issues like objectives, functions, and 16
aim. It establishes a logical relationship between the sequential stages in the process of training need analysis (TNA), formulating, delivering, and evaluating. There are 4 necessary inputs i.e. technology, man, material, time required in every system to produce products or services. And every system must have some output from these inputs in order to survive. The output can be tangible or intangible depending upon the organizations requirement. A system approach to training is planned creation of training program. This approach uses step-by-step procedures to solve the problems. Under systematic approach, training is undertaken on planned basis. Out of this planned effort, one such basic model of five steps is system model that is explained below. Organization are working in open environment i.e. there are some internal and external forces, that poses threats and opportunities, therefore, trainers need to be aware of these forces which may impact on the content, form, and conduct of the training efforts. The internal forces are the various demands of the organization for a better learning environment; need to be up to date with the latest technologies. The system model consists of five phases and should be repeated on a regular basis to make further improvements. The training should achieve the purpose of helping employee to perform their work to required standards. The steps involved in System Model of training are as follows:
1. Analyze and identify the training needs i.e. to analyze the department, job, employees requirement, who needs training, what do they need to learn, estimating training cost, etc The next step is to develop a performance measure on the basis of which actual performance would be evaluated. 2. Design and provide training to meet identified needs. This step requires developing objectives of training, identifying the learning steps, sequencing and structuring the contents. 3. Develop- This phase requires listing the activities in the training program that will assist the participants to learn, selecting delivery method, examining the training material, validating information to be imparted to make sure it accomplishes all the goals & 17
objectives. 4. Implementing is the hardest part of the system because one wrong step can lead to the failure of whole training program. 5. Evaluating each phase so as to make sure it has achieved its aim in terms of subsequent work performance. Making necessary amendments to any of the previous stage in order to remedy or improve failure practices
Instructional System Development model was made to answer the training problems. This model is widely used now-a-days in the organization because it is concerned with the training need on the job performance. Training objectives are defined on the basis of job responsibilities and job description and on the basis of the defined objectives individual progress is measured. This model also helps in determining and developing the favorable strategies, sequencing the content, and delivering media for the types of training objectives to be achieved. The Instructional System Development model comprises of five stages: 1. Analysis This phase consist of training need assessment, job analysis, and target audience analysis. Figure No. 3 18
2. Planning This phase consist of setting goal of the learning outcome, instructional objectives that measures behavior of a participant after the training, types of training material, media selection, methods of evaluating the trainee, trainer and the training program, strategies to impart knowledge i.e. selection of content, sequencing of content, etc. 3. Development This phase translates design decisions into training material. It consists of developing course material for the trainer including handouts, workbooks, visual aids, demonstration props, etc, course material for the trainee including handouts of summary. 4. Execution This phase focuses on logistical arrangements, such as arranging speakers, equipments, benches, podium, food facilities, cooling, lighting, parking, and other training accessories. 5. Evaluation The purpose of this phase is to make sure that the training program has achieved its aim in terms of subsequent work performance. This phase consists of identifying strengths and weaknesses and making necessary amendments to any of the previous stage in order to remedy or improve failure practices. The ISD model is a continuous process that lasts throughout the training program. It also highlights that feedback is an important phase throughout the entire training program. In this model, the output of one phase is an input to the next phase.
Figure No. 4 19
Transitional model focuses on the organization as a whole. The outer loop describes the vision, mission and values of the organization on the basis of which training model i.e. inner loop is executed. Vision focuses on the milestones that the organization would like to achieve after the defined point of time. A vision statement tells that where the organization sees itself few years down the line. A vision may include setting a role mode, or bringing some internal transformation, or may be promising to meet some other deadlines. Mission explain the reason of organizational existence. It identifies the position in the community. The reason of developing a mission statement is to motivate, inspire, and inform the employees regarding the organization. The mission statement tells about the identity that how the organization would like to be viewed by the customers, employees, and all other stakeholders.
Values is the translation of vision and mission into communicable ideals. It reflects the deeply held values of the organization and is independent of current industry environment. For example, values may include social responsibility, excellent customer service, etc. The mission, vision, and values precede the objective in the inner loop. This model considers the organization as a whole. The objective is formulated keeping these three 20
things in mind and then the training model is further implemented
Training Patterns or Types of Learning: I. Mentoring: Definitions of mentoring vary but a number were assembled by Audrey Collin in an article in the Industrial and Commercial Training journal (1988) and included the following: A Mentor is an influential person who significantly helps you reach your life goals Mentoring is a process in which one person (mentor) is responsible for overseeing the career and development of another person (protg) outside the normal manager / subordinate relationship. Mentoring is a process relationship in which learning and experimentation can occur; potential skills can be developed and in which results can be increased in terms of competencies gained rather than curricular territory covered. Benefits of Mentoring: 1. Better induction of new employees and socialization into the organization: Figure No. 5 21
All new employees, whatever their level of competence, have to ascend a learning curve when taking up a post, whatever it be developing technical expertise, managerial competence or tuning in to the norms and values of the organization. Most staff turnover occurs during the first six months as the new incumbent comes to terms with the new environment. Any support system will help reduce the period of adjustment and socialization into the new environment, which in the case of newly recruited graduates, fresh from university, can be almost traumatic. 2. Improved communications: Learning organizations communication network, both formal and informal, takes time. It is usually learnt on the job rather than on a formal course. A mentor, along with the line manager, can be a valuable tutor in helping the protg learns about the existence of, and how to use, these networks. Improved communications can, in the long run, only improve individual productivity and organizational efficiency. 3. Reduced Training Costs: Off-site management training programmes are expensive. A mentoring program requires only a little (although vitally important) training of mentors before the program commences. Mentors will learn more through experience than by formal instruction which needs to be recorded as the program develops. 4. Increased motivation and productivity: Mentoring can help reduce staff turnover for both mentor and protg. New, young employees, particularly if they are graduates, often have unrealistic career ladder and such expectations may not be met. This is even more likely with the current trend towards flatter organizations with fewer rungs in the organization ladder. A mentor can help the protg look for ways around the current blockages and reinforce the message from the company that there is a future for him or her. The result could be that other organizations do not poach your employees by promising fast career advancement. The trend to flatter 22
organizations has posed career problems for middle and senior managers who also will have fewer rungs to ascend up the corporate ladder. 5. Better succession planning and management development : Mentoring is a cost-effective way of developing managers and should be used along with other methods. It is an important part of the whole picture. Participation in a scheme should lead to a considerable increase in interpersonal skills and a valuable extra input from the mentor into succession planning. Mentors may also help identify which a line manager cannot, or will not, see. 6. Transfer of knowledge and values of the organization and maintenance of a more stable corporate culture: Mentors can become powerful role models for protg and the latter can learn much by imitation and identification with the mentor. The protg will observe methods, styles and how things are done, becoming more acutely aware of the managerial style of the organization and this, if internalized and translated into action, will ensure a less painful adjustment if he or she is promoted. The smooth transfer of company culture between two generations of managers can provide both stability and change and assist long-term corporate growth and survival.
II. Coaching: The best place to start a section on coaching is with a couple of definitions of the term which can then be used to develop some of the key characteristics of this approach: v Systematically increasing the ability and the experience of the trainee by giving him or her planned tasks coupled with continuous appraisal advice and counseling by the trainees supervisor. v The release of latent talent and skills, previously untapped by training, through a process of self-awareness initiated by the coach. 23
There are a number of distinctive characteristics of coaching that separate it from both training and counseling; these are: As a general rule, trainers have to be competent in the area in which they arte training. Usually the level of skill possessed by the trainer exceeds the level of skill possessed by the trainees with coaching this may not be the case. While some knowledge of the job or subject is important, a coach does not have to be proficient, or expert, in what is being coached and certainly may not be more skilful than the person receiving coaching. The world of top-class sport demonstrates this point admirably. The skills and attributes of a good coach are very different from those of a good trainer. The primary goal of coaching is the achievement of individual potential. This contrasts with the primary goal of training which is to give a person the basic skills in order to meet the required standard or to do the job satisfactorily. Thus training comes before coaching and is the starting point to equip people with the skills to cope. Coaching helps people go beyond the basic requirements to release skills that have not yet been released. In other words, it enables individuals to develop their potential often to the full. Coaching may therefore not be concerned with excellence: the person being coached may not be excellent or the very best. But coaching is concerned with helping an individual achieve the best they are capable of. At the other end of the spectrum, coaching can enable the excellent performer to get even better and for the highest achievers, new and better levels of performance area constant goal. Coaching must be viewed as a long-term event for both the individual and for organizations who adopt it as a training and development method. Coaching aims for continuous improvement by setting a series of goals. Each successive goal should be challenging but attainable. Success in achieving a goal provides the motivation to aim for achieving the next. As with counseling, coaching places the responsibility for performance improvement with the responsibility of the coach is the provision of support in the 24
appropriate form. Skills of facilitating, enabling and giving feedback are very much to the fore. Feedback skills are especially important as self-awareness is a vital requisite for success, and the coach is the main source of feedback. Coaching is usually done with small numbers and is often very individualized. A one-to one relationship is very common. This enables the coach and pupil the opportunity to build up a long-term relationship, while at the same time giving the coach unique insight and understanding of what motivates an individual and the type of approach to adapt in order to achieve success. Benefits of Coaching: Stage 1. Familiarization: The post- holder goes through a relatively short period of familiarizing him or herself with the new situation. This period is probably longer with an appointment to a new organization, where time is required to tune-in to the new ways of doing things, a new culture, new systems and procedures. It is a period in which individual productivity is low, and it tends to be longer in large organizations, where the costs of a period of low productivity can be more easily absorbed. Stage 2 Challenge: This is a demanding stage that stretches the individual, often to full capacity. Credibility has to be established and relationships forged and this takes time. Tasks take longer to accomplish as the best way of working needs to be learned. Stage 3 Competence: By trial and error learning the individual develops in the job. Both mistakes and successes are used as learning opportunities, and the time taken to complete a task is reduced. Relationships continue to be built, the circle of contacts is widened and credibility rises. Stage 4 Mastery: This stage is characterized by acceptance and credibility in the organization. The formal and informal systems and procedures are well known so the minimum time is expended on routine matters. Key tasks can often be completed more quickly and to a high standard as a result of accumulated experience. As a rule of thumb, it will probably take an individual in a managerial position between three and five years 25
to reach this stage, at which point the post-holder will begin to think about the next job and will look for wider possibilities and opportunities. Stage 5 Determination: This begins to occur when an individual has been in the job too long. The job ceases to offer the challenge, stimulation and satisfaction it once did and the incumbent is unable or unwilling to find fresh challenges. Dissatisfactions and boredom can manifest itself in numerous behaviors such as lack of cooperation, obtrusiveness, and refusal or inability to adopt to change. Some find other outlets and challenge energies and creativity into activities outside of work. Responsibly for allowing an individual to reach and atrophy at this stage rests with the individual and the organization. III. Lecture: One of the earliest thoughts of many people who consider a career in the training field is that they have to become lecturers. They feel they must strive to become inspirational orators in front of an audience and if they cannot then they will not be successful. This is undoubtedly due to tradition and their experience of higher education where the lecture was the predominant mode of instruction. Many students as a result of their earlier educational experiences, also expect it and feel most comfortable with it it is familiar, it is easy to hide in a passive audience and one rarely is challenged or has to confront difficult issues. Consequently, the lecture is probably the most widely used method in training, although in recent years, with the increasing emphasis on participative methods, its importance has been reduced. Like all the other teaching methods it is extremely effective when used at the right time and delivered in the appropriate way.
Despite these disadvantages, when do we use the lecture? As a general rule of thumb we use it when we have to give a mass of information to a large group and this will be the most economical use of time. Such appropriate times could be when we are: 26
v Developing a background for the course in the opening session; v Presenting material to introduce a topic; v Presenting material supplementary to assignments How can we ensure that we become competent lecturers? 1. Strive for the highest degree of informality that can be achieved without losing the respect of the delegates. 2. Stand up when talking and occasionally move back and forth in front of the group. 3. Be aware of the span of the audience. Psychologists tell us that that during a 30-minute presentation the attention curve steadily drops from an early high to a low after 20 minutes before returning to the early high. This has the following implications for the lecturer: (a) Keep your presentation short-15 to 20 minutes is probably as much as most adults can absorb. (b) Change the pitch, tempo and volume of your voice when speaking. (c) Try every device you can think of to add variety, spice and surprise to your presentation (d) Make the key points either very early or very late. 4. Eliminate distracting habits and mannerisms and always maintain eye contact with a cross-section of the audience. 5. Have a clearly defined beginning, middle and end. This helps you in the delivery and it also helps your students. To sum up, the lecture has a very important part to play in imparting information to a lot of people quickly. It is best used in short bursts with frequent recourse to alternative, participative methods. IV. Demonstration: Often the best way to get your point across is to actually show or demonstrate what you mean. This can be done by a demonstration per se or as a reinforcement or follow-up to a lecture. The way in which one tackles it may depend on the complexity of the operations 27
or principles. Generally, the greater the level of complexity the more you will have to build the demonstration into the lecture so that students can actually watch as you demonstrate. This requires extensive use of actual items or visual aids. The demonstration method is useful because it: Attracts and holds individuals attent ion; Is easily understood; Is convincing it is here and now and imitation is a powerful way of learning ; Ties theory and practice The drawbacks of demonstration are: It is often difficult to ensure that everyone can see what you are doing. Everyone has to be present. This problem could be overcome if you make a video tape of your demonstration with appropriate close-ups. This ensures that you can reinforce whenever you want as well as overcome the problems of absent members or those unable to see. Follow up each demonstration you should: Give participants the opportunity to practice the skills or process just demonstrated. Give individual / group help during practice sessions. Often you can use more competent members of the group if your own resources are stretched. Raise questions to clarify points Praise and recognize success- a great motivator and confidence builder Help individuals recognize the application of what has been learned to their real- life situations, i.e. facilitate the transfer of learning. In any training where the emphasis is on skills you will use the demonstration method frequently. V. Discussion: 28
The discussion method is an excellent means of covering the essential points of a session and meeting objectives while allowing individuals to ask questions, raise issues, etc., with everyone else in the group. Sometimes it can be woven into the lecture, in which case the trainer can go beyond the previously recommended 20-30minutes. When using the discussion method keeps it under control and on the subject- and guillotines it at the right time. In other words, you must ensure that pertinent matters are emphasized and that the time is not monopolized by any particular topic or individual. Too often the discussion degenerates into a free for all. To manage a discussion successfully the leader needs an astute sensitivity to the group and its dynamics, which involves very different skills and approaches from those required for lecturing and demonstration. VI. Open Learning: Open learning packages may utilize a variety of teaching media from printed material, through audio and video material, to practical work and computer-based training (CBT). Learners usually work through the package on their own but they may meet together with other learners from time to time plus having access to occasional tutorial or counseling support. Open learning is one answer; it is not the complete answer to many individual and organizational training needs. Its main advantages are as follows: It is very flexible in how it can be used. Anything, Anywhere often applies. Organizations with few or no training resources can plug into it to develop their people. Little time off work is required, which has a particularly strong appeal to the small businessman. It meets the self-directed needs of the adult learner. 29
The modular structure aids the assimilation process as students progress at own pace and there is opportunity for reinforcement. It is less threatening because there is no group exposure. This can have a strong appeal to those whose lack of formal education has undermined self-confidence.
VII. Active, Participatory Learning Methods: All participatory methods are with the objective of enabling participants to learn general principles through involvement in a situation as similar to real life as possible. They tend to be used most widely in the field of management training and development and involve a much higher degree of risk for everyone. Often CCTV can be used for giving in-depth feedback and assisting the coaching. Four main methods are: i) Case Study: With this method you present the specific details of a problem, usually in written form, and ask the participants to suggest the best solution they can, based upon the given facts. They must also be prepared to discuss not only their proposal but why they reached their decision and, sometimes, how they reached their decision. Interesting and varied solutions usually emerge and if several groups tackle the same problem, interesting comparisons can be made which can be shred in a plenary session. The case study requires: Lengthy preparation time and may need a couple of dry runs to fine-tune That the facilitator is familiar with the material which should not be a problem if he or she developed it; Clear and concise briefing to participants; Debriefing and summarizing skills so that the main points are shared with everyone. ii) Role play, simulation and games: 30
These may be used to bring together knowledge and experience and to show their interrelationship. They are used widely in skills training- for example, in interviewing, conducting meetings and customer care. Group members are assigned certain roles and are required to work through a problem or situation by acting it out while in character. Sometimes the information used is in the form of a case study. In management training, business simulations may take place over days rather than hours, with management teams receiving feedback on their decisions and progress from computers. Sometimes these teams are in competition with others and the exercise could be termed a game. The advantages of simulations: v Are an enjoyable way to learn if they are realistic; v Require active involvement from participants; v Bring academic subjects alive so that the gap between theory and practice is bridged; v Give participants the opportunity to experiment in low risk can be learned from mistakes as from successes; v Are very adaptable to groups of mixed ability, and distinctions between bright and less bright become blurred; v Make it difficult for participants to remain aloof and uninvolved as the enthusiasm of group members is contagious and levels of motivation rise; v Increase awareness of participants own behavior and the effect on others; v Encourage peer facilitation and support because the most able can support the least able; v Improve interpersonal skills, team skills and the ability to process in formation to solve problems and to confront and handle conflict.
Individual Learning Styles: 31
The experiential learning cycle helps us to design an effective training course, but first we need to consider one more important issue about learning. So far, we have considered all learners alike. However, it is important to remember that each learner is an individual who prefers to learn in his or her own way. Everyone has a preference about how her she learns things. Think about yourself and some people you know: you recognize them in these descriptions: 1. Some people really like trying out new things. They are not very interested in theories. They dont mind taking risks, and really enjoy new experiences. Usually they dont need to watch someone else show how something is done, they just it themselves. These people are the pragmatists. 2. Some people prefer to prepare before they act. They like to take their time and dont want to be rushed. They also often enjoy guiding and supervising people and processes. These people are the reflectors. 3. Other people like to understand theories and try to understand why certain things take place in particular way. They are not so interested in applying things in practice, but spend a lot of time thinking about what if... These people are the theorists. 4. Finally, some people really enjoy using things they have learned in practice. They like to apply something they have learned as quickly as possible. They love demonstrations, watching others so that they can try it out themselves. These people are the activists.
Transfer of Learning: The final phase in the training cycle is the incorporation of the new ways of thinking or doing things into normal work. Often this is left to the individual, and the (unstated) implication is that the individual has the motivation and the ability to introduce such changes. We can increase self-efficacy in a training program by: 32
Maximize the similarity between the training situation and the job, if necessary by carrying out the training in phases with job experience interspersed Provide a wide range of experience of what is being learned so that the principles can be applied to situations which do not exactly fit the procedure. Ensure that what is being learned in training will be supported and rewarded in the workplace. There is clearly a role for the supervisor or manager here; he or she must be a party to the training and transfer. Goal setting is important because without it people will have a poor basis for judging how they are progressing. Clear measures of progress are essential for increasing self-efficacy. Trainees should be deterred from setting very difficult goals as those who give up are often those who self- impose very high standards and then feel no sense of accomplishment because they fail to reach them.
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Training Evaluation Process (Kirkpatrick model): 34
Return on Investment : Level 1 Evaluate Reactions Did the trainees like the program, the trainers, the facilities? Did they think the course was useful? Level 2 Evaluate Learning To what extent do trainees have greater knowledge or skill after the training program than they did Level 3 Evaluate Behaviour Are trainees behaving differently on the job after training? Are they using skills and Level 4 Evaluate Results
Is the organization or unit better because of training?
Distribute and analyze questionnaires
Administer Written tests Performance tests Graded simulations
Collect performance data from Superior Peer Measure Accidents Quality Productivity Turnover Morale Costs Profits Figure No.6 35
Training doesnt costs it pays. Human resources development (HRD) is an investment, not an expense. Should all training programs be required to show a return on investment (ROI)? However, courses of 3 days or more that are offered many times to reach a large number of trainees (say, 100 or more) represent a significant expense. A professional trainer should justify this expense by calculating the returns on the investment. Level 4 (results) in Kirkpatricks evaluation model is the most difficult level to measure. Level 1 (reaction) and level 2 (learning) can be measured with relative ease in class, using paper-and-pencil instruments and simulations. Level 3 (application at work) is more difficult because it requires measuring performance on the job, where many variables affect the performance of the graduates. Level 4 (results) is usually shown as ROI: the dollar value of the benefits of training over and above the cost of the training. Reason why one should take the time and effort to calculate the costs and benefits of major training programs: v HRD budgets can be justified and even expanded when training contributes to profit and is not seen as an act of faith or a cost of doing business. v Course objectives and content will become more lean, relevant, and behavioral with a focus on monetary results rather than on the acquisition of information. v There will be better commitment from trainees and their managers, who become responsible for follow- up and ROI, not just for filling seats. v Action plans, individual development plans, and managers briefings will be taken seriously, strengthening the trainee- manager partnership. v There will be better performance by the HRD staff in containing costs and maximizing benefits. They will become performance managers, not just instructors. v The HRD staff has solid data about where training is effective and where it is week, and so courses can be revised and fine-tuned to produce the best returns. v The curriculum of courses offered can be determined on a financial basis, not just on the basis of popularity, the rank of the manager requesting it, and so forth. 36
v The trainees will be aware of the expectations that follow graduation. Well get the right face in the right places at the right times. v By calculating ROI on the courses where it is possible, we are more apt to be trusted on the ones we cant evaluate at level 4.
Training Effectiveness assessment system: Training managers are always hard-pressed to prove the effectiveness of the training programmes they conduct. Mohan Bangaruswamy gives an update on one of the most popular techniquesthe Donald Kirkpatrick model Organizations are under pressure to justify various expenses. The training budget is, often, not exempted from this purview. There are a number of questions raised on the value derived from training programmesboth directly and indirectly. Business heads and training managers are under pressure to prove the effectiveness of training. One of the most popular methodologies for measuring training effectiveness was developed by Donald Kirkpatrick. This model articulates a four-step process. * Level 1: Reactions - At this level, we measure the participants reaction to the program. This is measured through the use of feedback forms (also termed as happy-sheets). It throws light on the level of learner satisfaction. The analysis at this level serves as inputs to the facilitator and training administrator. It enables them to make decisions on continuing the program, making changes to the content, methodology, etc. * Level 2: Participant learning - We measure changes pertaining to knowledge, skill and attitude. These are changes that can be attributed to the training. Facilitators utilize pre- test and post-test measures to check on the learning that has occurred. However, it is important to note that learning at this level does not necessarily translate into application on the job. 37
* Level 3: Transfer of learning - At this level, we measure the application of the learning in the work context, which is not an easy task. It is not easy to define standards that can be utilized to measure application of learning and there is always this question that preys on the minds of various people: Can all changes be attributed to the training? * Level 4: Results - This measures effectiveness of the program in terms of business objectives. At this level we look at aspects such as increase in productivity, decrease in defects, cycle time reduction, etc. It is possible for organizations to measure effectiveness for all program at level-1 and level-2. This can be built into the design of the training program. It is found that it is easy to measure training program related to technical and functional areas at level-3 and level-4. It is not easy to do this with behavioral skills program. Organizations that choose to measure training effectiveness can start with the former category before moving to measuring behavioral skills at level-3 and level-4. This will articulate an example to show how we can measure some training program at levels-3 and level-4. Let us consider the case of an IT services company that conducts technical training program on products for their service engineers.
Article of Brand Equity in Economic Times Striking a Poser Article in Brand Equity part of Economic Times dated on November 26, 2008 by Mr. Prasad Sangameshwaran. (prasad.sangameshwaran@timesgroup.com) Sales is no longer just straight forward product pitch. Today, selling involves devoting more time to listening, asking the right questions and understanding what consumers want - By sales consultant Robert Miller, founder of Miller Heinmen Inc. Miller begs to differ. According to him, starting point of selling is not glib talk, but asking questions. But across the world, companies are not asking questions. It is laziness. The first thing a person gets when joins a new organization is product training. Be it a 38
product or services, companies tell new employees all about the business and they go forth and sell. Naturally when new recruits go out and sell, they end up talking about products and services. Sales people are good at showing, telling, demonstrating but they are not good at listening, questioning, probing and discussing. When companies ask relevant questions, the results are often in their favors. Case in point the challenge PepsiCo faced in the US against rival Coca-Cola. PepsiCo was looking at ways to wean away key clients from rival Coca Cola. Coca Cola No 1 client was Mc-Donalds and number 2 clients was Burger King. But Coca Cola lost Burger King to PepsiCo told them that McDonalds would always be Coca-Colas number one client. But they could get No 1 treatment if they came to PepsiCo. But at PepsiCo and even Coke realized later, just winning the client was not enough. At that time, PepsiCo did not have the technology to serve a consistent measure of drink every time. Then it also did not have Coca- Colas infrastructure to ensure that remote locations did not run out of stock. According to him, asking questions helps in delivering intangible benefits like experience, keeping in mind the fluid scenario today. Thats because, rapid dissemination of information is changing the way people consuming products and services and it makes the task of a sales person very challenging. Miller agrees that in both the business-to-consumer and the business-to- business space, consumers have had more choices than ever before. When sales people go out for sale, customers know more about their products and even their competitors products. Hence the job of salesperson is to put the customer at centre of equation. That requires significant change in mindset. Till not very long back, it was the product at the centre of equation. You are not selling product anymore, but a solution. Hence it is important to ask questions. In the example of Mexican real estate developer client who owns 10 miles of property inside a gated community, to be sold exclusively to reach and famous. With hotels like Four Seasons and Ritz Carlton inside the property, Miller says the property has golf courses, spas and the works. But when potential clients come over to see the property, Miller is clear that the first should not be to show them around. Instead of showing off the premium property and the amenities, why not ask the customers about experience they expect from the property. First, question them what brings you to the property? And find out what specifically interests them. Is it golf, spa or 39
a retreat? This, according to him is extremely important, because in the current context, the customer is in control. You should try to understand what the customers want to accomplish, avoid, fix and create. Until you know that, you really dont know what you are selling. But what was earlier simple task of managing few products across one or may be two channels has today transformed into labyrinth of options. With growing options product portfolios and emergence of newer channels of distribution, its surely a nightmare for sales head. Miller convinced that it can be a sweet dream. Its time to stick to fundamentals and its not about pushing as many products in the portfolio through a channel. Instead, its better to sit with the clients and then figure out what suits their interests. According to him, the beer industry in the US when faced with a similar situation came up with an interesting solution. They co-operated with competitors to figure out the niche that each beer brand filled and what audience that they appealed to. Then manufacturers got together with distributors to create a category manager for each channel. In effect, the category manger would be responsible for selling both a Heineken and its arch- rival Budweiser as he would be responsible for all beer brands to his respective channel. Thus the competition was now not another beer brand but other beverages. He clarifies that such innovations are not because there is perpetual dearth of talent, considering that for many sales people, a long term sales job is not the desired career choice? I think there is good talent in sales. Since the advent of Internet, selling has become more and more professional. Thirty years back, when he started company, the sale force in company was totally male. The only people who had woman in their sales force were banking and Hertz car rentals that had a smattering of females. Now, according to him, its 50:50 across industries. Miller feels thats a definite turn for better. Because women are better listeners, can question better and understand where customers come from and so on but there are still some bastions. Theres probably another reason for him to firmly believe that women are doing well as sales professionals. Three of his grand-daughters are into sales, selling categories as varied as insurance and mens accessories.
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Eveready setting up sales training institute: Kohinoor Mandal, Kolkata, Nov. 29 THE $200- million BM Khaitan group is likely to diversify into the sphere of education. As a first step, Eveready Industries India Ltd, the group flagship company, is setting up an institute for the training of frontline sales force. The institute, which is named as Eveready Academy of Sales Training, will start its operations with a first batch of 20 students from January. It has already advertised seeking fresh graduates for a one- year course in sales training. According to Mr. Roshan L. Joseph, Director of Eveready, there is hardly any opportunity to offer good sales training to young men and women. As a result, there is an acute shortage of trained manpower to push the sales of a particular product. Most of the FMCG companies are regularly realizing this problem and, he felt that this would aggravate further as the challenge will be making the consumers spend more. So, in an effort to bridge this gap between the need for trained sales manpower and creating good salesman out of a fresh graduate, Eveready decided to set up this institute. "To start with the academy would be just a part of the Eveready Industries' activity. We would be using our own infrastructure, both software and hardware, to train these young boys and girls. If the project takes off successfully, we will scale up the activity and work bigger plans," Mr. Joseph told Business Line. The 20 students will be selected through a nationwide online psychometric test and group discussions. Eveready is also assuring jobs to all the 20 students on successful completion of the course. "We may employ all of them but there will not be any binding neither on us nor the student. They will be free to join any organization. We are confident that any FMCG company would be more than glad to have a trained salesman," he said. It may be noted that this is probably the first time that a leading FMCG company is entering into the business of training salesman. In fact, there is hardly any institute in India offering similar sales training. In 1998, the National Institute of Sales (NIS), a wing of NIIT, started a similar course in Kolkata but after two years it ran into rough weather. An NIS alumnus, however, said the course was restarted this year. According to Mr. Joseph, the one- year course of Eveready will be divided into two halves. The first half will be in classroom where a student will be taught on subjects such as taxation, IT, salesmanship, and distribution network, financing, sales 41
planning and others. In the second half, the student will be imparted infield training. They will put into a territory and will be given a target to meet.
Introduction of FMCG sector The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class & the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food- processing industry. Why India Large domestic market: India is one of the largest emerging markets, with a population of over one billion. India is one of the largest economies in the world in terms of purchasing power and has a strong middle class base of 300 million. Rural and urban potential
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Around 70 per cent of the total households in India (188 million) reside in the rural areas. The total numbers of rural households are expected to rise from 135 million in 2001-02 to 153 million in 2009-10. This presents the largest potential market in the world. The annual size of the rural FMCG market was estimated at around US$ 10.5 billion in 2001- 02. With growing incomes at both the rural and the urban level, the market potential is expected to expand further. India - a large consumer goods spender: An average Indian spends around 40 per cent of his income on grocery and 8 per cent on personal care products. The large share of fast moving consumer goods (FMCG) in total individual spending along with the large population base is another factor that makes India is one of the largest FMCG markets, if you see the entire global demand for FMCG products. Figure No. 7 43
Even on an international scale, total consumer expenditure on food in India at US$ 120 billion is amongst the largest in the emerging markets, next only to China.
Graph 1 Graph 2 44
Purpose of Sales Training by Training and Development Handbook by Sponsored by ASTD and Mr. Robert L. Craig - Editor in Chief Productive sales training increases sales permanently by enhancing the knowledge, skills, habits, self-confidence and on-the-job behavior of an organizations sales force. The end result is learning, which occurs only when a salesperson permanently changes behavior for better. The bottom line of sales training goal is the same as that of sales and marketing management: apply the sales and marketing plan effectively to maximize both current sales and long term growth of an organization. Selling is the process of human interaction to achieve the goal of persuading another person to make decision that you support. In selling you identity needs and wants and then communicate in a persuasive way to convince someone that you can satisfy those needs and fulfill those wants. Sales Training is changing behavior by exposing people to knowledge and skills that allow them to communicate with others in persuasive way. It is, in fact, the process of creating an environment in which individual sales personnel can feel to motivate to develop effective sales skills and productive attitude that can lead to achieving personnel and business goals. Any complete sales training process should include exposure to these knowledge and skills are: Organizational philosophy, policies & procedures, structures and strategies Business knowledge and skills Time and territory management Legal consideration Sales and negotiation skills Planning and goal setting Self awareness and personal development Communication skills Benefits of Sales Training Everyone wins with good training. Mutual benefit is the prime principle. The salesperson receives: 45
Greater self confidence Ability to communicate more persuasively Greater fulfillment of achievement Enhance career opportunities Greater feeling of pride and loyalty in contributing to the well-being of the customer and organization Increased income from greater sales The customer receives: Solution to the immediate problems and needs End-user benefits of the products or service Overall better service A valuable resource for information and help (salesperson) who cares about customer needs A valuable resource for reliable products and service (the company) The company receives: v Increase revenue from sales (short and long term) v Increased profits (the return on training investment) v Long term stability of repeat business from satisfied customers v Reduced employee turnover and cost v Improved employee morale v Growth potential in the marketplace The sales training group receives: Greater credibility with management Greater use of developed programs Enhanced job stability and protection from recession Increased job satisfaction
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Chapter 2. Methodology Objectives: As stated in chapter I the objective of the study was as follows: 1). To identify the factors affecting the Training of Sales Force, which is nothing but essential ingredient for hitting the sales target of FMCG organization 2). To suggest various ways to improve the training content on Communication Training and any kind of other training for sales force and ready hand training material for any sales person to win a sales deal Sample: The FMCG organization, were in contact since day I started the research thus I took sample of associates from various small companies. The sample also included the emerging free lance trainer in arena of Sales of HR background. These free lancers are same deal of training since their professional career. They were in continuation of same job of training with extended wings of it to the Sales Force development. I divided my sample size in two different groups: one for HR trainer and other for Sales executive actually who are on job or who are just passed out of business institute and working for FMCG organizations. My sample size was 30 people and in that I chosen associates as Sales associates and 15 as HR trainer. Here this sum of 15 HR associates also includes the free lancers of given arena of Sales Training. People Attributes Number of People 47
Total 40 Data Collection Method: The data collected was through in-depth structured close ended questionnaire with the following pointers inside the questionnaire. What they like about their job What they dislike about job Their agreement on things which affect their training needs The importance of Sales function Dependency of various other function on Sales Function of organization Learning style or training style of their organization Their learning style Changes they expect in training area of given organization Kind of training they receive In detain the questionnaires are attached in Appendix 1 and Appendix 2. The data was also collected through various Case Studies available online and from one of our fieldwork organization called as Saint Gobain. The analysis of all case studies is also included after the primary data analysis. These case studies are very relevant in the case of FMCG type of organization sale force set up. These case studies have proven in 48
detail the logic of giving the training to sales force and importance of it for overall organizational growth. On basis of above all data analysis I have provided relevant recommendations to given kind of FMCG organization into consideration.
Chapter 3. Case Study Case Study 1 Sales Training at ABC, Inc ABC, Inc (name changed), provides solutions for creating, managing, and sharing digital assets for a variety of markets including building, infrastructure, manufacturing, digital media, and wireless data services. The fifth largest FMCG Company in the world, ABC has more than 1,700 channel partners that provide a critical competitive advantage in the marketplace through their broad international reach and local market expertise. ABCs robust performance over the last few years has been driven by their lifecycle management strategy, providing solutions to help customers extend the value of their design data throughout the enterprise. This introduction of more complex lifecycle solutions has led to an increased need for channel partner sales and technical training in order to effectively position, sell and support ABC solutions. The key drivers for ABC to outsource their sales training to XYZ were access to top instructional design and sales training expertise on an as-needed, variable-capacity basis, a demonstrated track record of delivering results with speed and consistency, and a keen knowledge of ABCs culture, business strategy, and solutions. XYZs focused expertise, holistic approach to training outsourcing, and high- impact results allowed ABC to continue to focus on its core business: developing, marketing, and selling industry-leading software. Two examples of the XYZ solution are Manufacturing 101 and Boot Camp. Manufacturing 101 is a training program that XYZ created for ABC to speed up new hire sales readiness. Boot Camp was an existing ABC annual product launch event that was transformed into an 49
effective training event through the XYZ partnership. Through a total focus on achieving ABCs business objective XYZ efforts led to successful outcomes for ABC.We originally partnered with XYZ because they understood our business and had a solid track record of delivering high quality results with speed and consistency. XYZs performance caught the attention of Sales and Channel Management stakeholders throughout the company. Through their work on Manufacturing 101 and Boot Camp, XYZ has raised the bar for training at ABC and become our premier training partner. Director, Channel Development, ABC Manufacturing 101: Speeding Channel Partner Time to Sales Readiness Manufacturing 101 is a training program designed and developed by XYZ for ABCs newly hired channel partners who sell solutions into the manufacturing industry. Approximately 80% of ABCs revenue comes through channel sales, so it is critical that their partners have deep product and solution knowledge, a keen understanding of customer challenges within the manufacturing industry, and excellent selling skills. The development of Manufacturing 101 raised the bar for ABCs new hire partner sales training thanks to XYZs total focus on measurable results, instructional design expertise, sales training experience, and ability to rapidly grasp ABCs strategic vision and assimilate to its culture. ABC Pain Points New-hire time to sales readiness was taking far too long. Prior to the development of Manufacturing 101, new hire and channel partner time to competency (in manufacturing industry fluency, product knowledge and selling skills) was 9-12 months. ABCs goal was to reduce this lag time to 90 days. Clear vision of training goals, but insufficient resources to reach them. A major execution challenge for ABC was a lack of dedicated, skilled instructional design professionals with deep expertise in sales training. ABC sales execution leadership had a 50
clear vision for where they wanted to take new hire training, but needed expert assistance to execute that vision. Channel partners needed to increase consultative selling competency. In order to successfully sell an increasingly complex array of software, services and solutions, ABC channel partners needed training in consultative selling techniques. ABCs objective was to help its channel partners become trusted advisors to their customers. The Challenge Create a robust, comprehensive training program utilizing the combined strengths of XYZ instructional designers and ABC subject matter experts within a tight timeframe. Empower two groups of learners at the same training event: students with sales experience who lacked familiarity with the manufacturing industry and students with industry knowledge but little sales experience. Win the confidence of ABC stakeholders who were skeptical of the value of working with an external partner. The Plan Conduct interviews and collect data to confirm desired outcomes and build relationships with ABC stakeholders in order to establish a cohesive partnership and a shared vision of Manufacturing 101 objectives. Assess and analyze current learner knowledge levels, desired future levels, and learner characteristics. Design a standard courseware format and a rapid instructional framework to enable development within a short timeframe. The Process 51
XYZ instructional designers worked with ABC subject matter experts to create and deploy: Pre-event course preparation workbook including pre- and post-tests to measure knowledge transfer. One-week classroom course comprised of modular, integrated training content targeted for ABC channel partners and the sales cycle realities they encounter including industry trends and challenges, in-depth competitive issues, and effective selling skills. Classroom activities enlisting active student involvement with hands-on practice including video-taped mock sales presentations, games, and competitions. Sales training methodology wrapped in an ABC and manufacturing context, created in collaboration with an ABC Value Vision associate. Job aids and tools immediately transferable to sales professional are needs on the job (e.g. qualification guides, responses to common customer objections, etc.). Content designed to be repurposed for other audiences and future events. The Outcome The results of Manufacturing 101 have been impressive. The core objective of reducing new hire time to competency, and increasing overall sales readiness has been achieved: Average salesperson knowledge transfer has increased 30% to 40% for each Manufacturing 101 class delivered (representing a positive delta between pre- and post- test scores). Student feedback has been extremely positive. On average, students scored the class 4.3 on a 5-point scale (5 the highest rating), indicating strong agreement that course content and materials were directly applicable to current and future sales efforts. 52
Boot Camp: Preparing the Channel for a New Product Launch Boot Camp is ABCs premier channel partner sales and product training event. It is held each year as a new product launch education event prior to the companys annual software release. Boot Camps core objective is enabling revenue growth by preparing resellers to effectively position, sell, and support ABC solutions. Through a mix of product- and sales-focused content, ABC seeks to teach its channel partners how to execute a complex solution sale, and to effectively convey solution value propositions. XYZs instructional design expertise, total training focus, and customer orientation ensured high reseller satisfaction with the Boot Camp experience. Boot Camp attendees were armed with pragmatic, actionable skills and knowledge translating into increased, measurable sales results. ABC Pain Points Increasing product and solution complexity. Over the past few years, ABC has expanded into new product and solution areas beyond its flagship offering, AutoCAD software. New vertical products aimed at the building, infrastructure, and manufacturing industries are critical to ABCs long-term growth and differentiation. Mediocre or failed product launches due to poor channel sales readiness would jeopardize revenue targets across the board. History of insufficient instructional design techniques. Previous Boot Camp events have featured excellent ABC instructors and strong event management, but the event has been dogged by weaknesses in the session instructional design. Inconsistency, absence of interactivity, and lack of integrated sales methodology training have undermined some of Boot Camps learning effectiveness. Additionally, attendees have complained of death by PowerPoint presentations and a lack of post-Boot Camp training reinforcement. Sales Training at ABC 6 53
Poor communication between key personnel. Busy divisions properly focused on product launch efforts rarely had time to focus on training development, let alone planning and collaborating across divisions. ABC executives and territory sales managers were infrequently involved in facilitating and supporting training activities at Boot Camp. No proof of training value without impact measurements. Post-Boot Camp measurements of training impact, have been absent from past events. ABC executives and sales managers have not had hard data and results from partners with which to gauge Boot Camps impact on ABCs business objectives. The Challenge Design and develop 72 hours of instructor-ready training content in 12 weeks. Create and facilitate training for a diverse audience of channel partners. Gain buy- in from ABC divisions reluctant to take time from their tight schedules to work with XYZ staff. Design and deploy various methods of measuring Boot Camps impact on reseller satisfaction, knowledge transfer, application of skills, and business results. The Plan Take Boot camp from a typical conference-style event with an emphasis on PowerPoint lectures to a high- impact, interactive training event. Implement a comprehensive plan to track sales results, behavior change, knowledge transfer and student satisfaction results in a detailed, quantifiable manner. Make XYZs instructional designers available to give tips and suggestions to ABC presenters accustomed to finalizing materials at the last minute. Institute efficiencies to leverage course content and design across ABC divisions. Promote interactivity, games, and role-plays during training sessions. Ensure scalability of hands on activities for up to 300 students participating simultaneously in one room. 54
The Process The XYZ team designed a training event that included: Accountability for both Boot Camp content development and event coordination. Focused presentations designed to increase knowledge retention supported by XYZ designed instructor guides and train the trainer sessions. Lectures frequently varied with games, role-plays, and other small group activities to engage students of all learning styles and avoid PowerPoint monotony. ABC facilitators, ranging from territory managers up to the VP level, stationed at each student table to assist with activities. A plan to track measurable results, including standard Levels 1-3 evaluation and Account Development Execution Plans to track business results. The Outcome Attended by over 1,400 partners, the 2005 Boot Camp event was the largest and most successful training event in ABCs history. All stakeholders, ranging from partner attendees to ABC executives, expressed deep satisfaction with the event and its outcomes. The measurable results tracked by XYZ have given ABC an accurate and detailed picture of Boot Camps impact and have provided keen insights into areas for continuous improvement. Results are evaluated at multiple levels in order to provide measures at different points in time after the event. Level 1 shows the initial participant perception after the training event. Level 1 results for Boot Camp sales sessions showed, on a 5-point scale (5 the highest rating), that 89% of participants gave Boot Camp an overall rating of 4 or 5. The next level of evaluation in progress will measure employee performance six months after Boot Camp. Managers of attendees will be sent a survey with questions to identify noticeable changes in performance, sales, and customer satisfaction as a result of training their resellers received at Boot Camp. 55
XYZ made a good initial impression by demonstrating an understanding of our business, and delivering results through Manufacturing 101. When it came to Boot Camp, XYZ rose to the challenge. We didnt make it easy with our tight timeline and complex requirements to develop 72 hours of content for 1,400 partner attendees. But in a matter of a few months, XYZ transformed Boot Camp to a highly interactive, high quality instructional event. Weve seen measurable results from these sales training programs and anticipate the trend will continue with XYZ in the instructional drivers seat. Director, Channel Development, ABC Source: 1. www.intrepidls.com 2. info@intrepidls.com
Case Study 2 Creating Major Sales The most fundamental reason why you're employed, the unique function that you alone fulfill, which could not form part of anyone elses job description, is the creation of sales where they would not otherwise exist. Not passively responding to requests for proposals, but creating a need from scratch, developing it into a desire for positive change and demonstrating that your product can meet the need by giving the desired change. Next question: If creating major sales is the unique contribution you bring to the party, how do you do it? Not vague generalizations, but blow- by-blow detail. How do you open a sales call? Do you ask questions? How? What kind? What about? What responses do you listen for from the prospect? What do they indicate? When do you present your product or service? What do you say about it? How do you gain the prospects commitment? Why do some sales calls succeed and some fail? How do you measure success or failure? What do you do that causes success or failure? Got all the answers? OK. But are you sure theyre right? Would you bet your house? Worrying isnt it? Because if any of your 56
answers are wrong it means youve lost your house and you dont totally understand the most important function of your job. NEW Consulting (name changed) has the answers. And were sure theyre right so sure wed bet our company on it. Let us explain why. SPIN, Science Applied to Major Sales Almost thirty years ago NEW Consulting was approached by several major multinationals. They asked us to investigate the process of creating major sales, with a view to defining once and for all the skills used by the most effective sales professionals. These multinationals did not come to NEW Consulting because we were acknowledged experts in sales training (we certainly werent!) but because we had a unique research methodology, which had already proven itself by providing revolutionary insights into interactive management skills. Developed as an aid to behavioral scientific Research, Behavior Analysis was pioneered by NEW Consulting as a method for observing, categorizing and quantifying objectively what people say to each other in interactive situations such as meetings, job interviews, appraisals or sales calls. When we have observed enough interactions and analyzed them statistically we can isolate very accurately the pattern of behaviors that is most likely to produce a successful outcome in a meeting, interview, appraisal, sales call, etc. We call this ideal pattern of behavior the Success Model. Once we have a Success Model for a particular skill we can train people to modify their behavior to match the Success Model more closely and so improve the probability of success. And thats what our multinational clients wanted: the Success Model for creating major sales.
The SPIN Research Very early in the research project it became apparent that there is a great difference between what top sales performers say they do and what they are actually observed doing in front of customers. The problem seems to be that the things that make top performers consistently good are the things they do naturally, whereas the points they will stress in an interview, or pass on to others as tips, are the small extra sophistications they have either invented themselves or had to work hard to master. Having identified this 57
discrepancy between perception and reality, the NEW Consulting team implemented a program of field accompaniments to conduct live Behavior Analysis of sales transactions. So controversial were the initial findings in their contradiction of conventional sales theory that the scope of the study was expanded several times until the research results were statistically incontrovertible. The process is on-going. For nearly thirty years NEW Consulting has analyzed over 40,000 sales interviews in 27 countries and studied 116 factors, which might play some part in improving sales performance. This remains the largest ever investigation into sales success. The nine key behaviors that lie at the heart of the SPIN selling model are the distilled results of this research.
Optimizing Skills with SPIN Not surprisingly, this invaluable research has been turned into a training program, which gives all sales professionals the opportunity to optimize their performance by adopting the SPIN Success Model. An overview of the SPIN Selling Skills program is overleaf followed by a summary of some of the key research findings.
Overview SPIN Selling Objectives By the end of the program each participant will: Have analyzed the strengths and weaknesses of their present selling style Be able to describe the psychology of customer needs Be able to describe the key behaviors, or skills, used by effective salespeople in their interactions with customers Have a framework for planning sales calls in terms of these behaviors Have frequently practiced using the skills to develop customer needs in a way that greatly reduces the likelihood of objections Have a strategy for dealing with difficult customers who raise objections or have low reaction levels Have measured objectively their performance compared with the Skill Model and created an Action Plan for Continued development of the skills after the program. 58
Target Audience Any employees involved in the sale of goods or services, which are seen as high- value, important decisions by the buyer. In addition to the obvious audience of sales executives and sales managers, this program can be very beneficial to engineers, technical specialists or sales support staff who are involved in the selling process or who may be exposed to selling opportunities in the course of their work with customers.
Program Content Basic principles of Behavior Analysis how it is used in research and skill development. Understanding your present selling style are you a natural pusher or puller. The psychology of customer needs Implied and Explicit Needs defined what they tell you about the customers state of mind which needs predict success in the sale. Opening the call avoiding a canned approach establishing the right to ask questions. The SPIN Model for developing needs: - Situation Questions - Problem Questions - Implication Questions - Need-payoff Questions. Demonstrating your capability the real definition of a Benefit dangers of Features and Advantages. Objections the myth exploded; they dont indicate interest or opportunity how to prevent them how to handle them. Low Reactors how to identify them why they are dangerous how to handle them. Closing why early, frequent closing is dangerous the one, simple way to gain a commitment.
Training Design and Methodology 59
The objective of this program is to teach skills, to change trainees behavior so that they perform more effectively. The training design is therefore based on the principle that learning is doing. The Skill Model is introduced incrementally in bite-sized chunks, with a role-play practice opportunity at each stage. Participants are not required to perform in front of the training group. Role-plays are conducted one-to-one and tape recorded. Trainees are also taught the rudiments of SPIN Behavior Analysis so that, aided by the trainer, they can analyze the recordings of their role-plays and give each other objective feedback on their actual performance compared to the Success Model. This repetitive cycle of inputpractice feedback helps trainees match their behavior ever closer to the Success Model as the course progresses and equip them with the tools for continuing skill improvement post-course.
Materials There are comprehensive exercises and transcripts of sales calls to test and refine trainees understanding of the Skill Model, plus a library of user-friendly reference material giving detailed explanations of key concepts. Role-play scenarios can be customized to simulate the sale of the trainees own products or services to typical customers in their market. Duration: Designs are varied to suit individual client requirements. Faculty and group size: The SPIN program is delivered by a senior NEW Consulting consultant experienced, whenever possible, in the clients industry sector. To ensure that each participant receives individual attention and feedback, training group size is limited to a maximum of twelve.
SPIN Research Highlights Full, fascinating story of the research studies and the development of the SPIN. Selling Skills model can be found in Making Major Sales, written by Neil Rackham, founder of NEW Consulting. Here, mention only a few of the research findings which gave the world a new insight into high-value selling skills. All needs are not the same 60
Conventional training treats all need statements as generic: Find a need, meet it and you have a sale. Yet common sense says that there is a clear difference between a customers who complains, "My present system is a bit slow and one who says, "I need a faster system immediately. NEW Consultings research proved that there is a clear distinction between statements of dissatisfaction, called Implied Needs, and statements of desire for a solution, named Explicit Needs. In major sales Implied Needs have no statistical relationship with success, whereas Explicit needs are key indicators of a successful outcome. Successful salespeople use a questioning technique to convert Implied Needs to Explicit. Conventional probing does not work Probing (sales jargon for asking questions) is supposed to uncover customer needs. To achieve this, traditional training uses a seventy year old theory that divides questions into two types: Closed questions, which can have yes/no answers, and Open questions, which require a longer answer. The research revealed two major problems with this approach: 60% of closed questions actually receive long answers, because people like to talk, and, not surprisingly, there was no identifiable pattern of Open or Closed questions in successful sales calls. Classifying questions by their form, Open or Closed, has no relevance in creating major sales. Successful salespeople use a four-stage questioning model Rather than classifying questions by their form, exceptional sales performers use four types of questions, which are categorized by their purpose: Situation Questions To gather background information and understand the context of the sale. Problem Questions To explore the customers dissatisfactions and concerns. Implication Questions That develop apparently isolated problems by examining their knock-on effect on other areas of the customers business. Need-payoff Questions That invite the customer to consider the benefits of solving his or her problems and, having done so, to express an Explicit Need for a solution. Benefit statements are the major cause of objections 61
Generations of salespeople have been taught to make benefit statements by explaining how their product is intended to help or be of advantage to the customer. Yet the NEW Consulting studies showed that the easiest way to create an objection is to offer the customer an advantage that has not been asked for. The true Benefit statement, the behavior most closely associated with success, shows how your product or service satisfies an Explicit Need for which the customer has expressed a desire for a solution. Golden rule: no Explicit Need; dont talk about your product. Source: Huthwaite International, Hoober House, Wentworth, and South Yorkshire S62 7SA, United Kingdom Email: info@huthwaite.co.uk Website: www.huthwaite.co.uk Case Study 3 Moving the Needle on Sales -Using Video-Based Nano e-Learning to Create a Competitive Advantage in Sales Performance Classroom training and traditional e- learning are losing effectiveness while simultaneously becoming more expensive. Sales and marketing executives must adopt a sales force development process that delivers small bites of learning and product information. These must be delivered in a just- in-time, just-as-needed, just-enough fashion right where the salesperson works. Short video, with very specialized instructional design, has become the ideal medium for sales force improvement. It can be developed rapidly, deployed quickly and without redevelopment on different devices (CD/DVD, PCs, and handhelds), and is engaging for learners. It has been proven by major organizations to actually change salesperson behavior and drive results with hard- dollar ROI. The Problem of Developing Salespeople (and channel partners) has never been busier. Product lines are extending. Products themselves are more complex. Competition is fierce. Price pressure is intensified. Maintaining sales force automation data is reducing available selling time. Yet sales goals and call expectations are rising, and salespeople need late-breaking information right now before their next call. Sales and marketing executives face the critical question, 62
How can I affordin terms of both time and moneyto motivate and develop my sales force in a way that actually changes behaviors and drives sales? The classic sales meeting approach is no longer practical. No one is in the same place at the same time. Companies end up spending more on airfare, travel time, hotel, and meals than on the training itself. And the opportunity cost (lost sales) of taking an entire sales force out of the market can dwarf total meeting expenses. Actual learning in the sales meeting is also disappointing. A parade of product managers and trainers with endless PowerPoint slides simply overwhelms the sales force. (One consumer goods firm actually showed its salespeople 700 slides in a two-day sales meeting.) Attendees remember little, if any, of what they seeand they hate the experience. E-Learning was supposed to address all this. But the last thing a salesperson wants is to spend an hour in front of a screen- flipping e- learning course, listening to a disembodied voice, seeing animations that went out of style in video games 15 years ago, and being asked about sales scenarios that dont really apply. Add the fact that these courses are complicated to design, expensive to produce, and can take months to program and deploy, and todays e-learning isnt the right solution either. Late-breaking information, need for more sales, requirement to improve sales skills, high in-person training and opportunity costs, heavy e-learning development costs and glacially slow development lead times. Learner dissatisfaction with both approaches. Something different is required. Requirements for Successful Sales Force Development Sales and marketing executives have a simple goal -Create a significant competitive advantage in the marketplace by better developing and informing salespeople. To provide a true competitive advantage, ej4 research has identified four elements that must be present in the sales force development process. Content must be compelling: - Having to force salespeople to take training is the prime indicator that content is inadequate. If content helps close sales and make money, then salespeople will demand access to it. They will complete the course, change accordingly, and use it to increase their income. 63
The content must be accessible when needed, as needed, where need: - Salespeople dont remember what they heard in a course six months ago, and they never refer back to their attendee binderassuming they even kept it. People do best with small chunks of learning, delivered exactly when needed, and that can be reviewed whenever they want. Training/communications must be developed and deployed rapidly: - Salespeople are dealing with critical issues in real time. Content that comes out months after the fact often addresses issues that no longer exist. Salespeople require critical information in hours or days, not weeks or months. Sales leaders must be involved in the process: - There are two types of learning- initial learning (new knowledge and skills) and application learning (coaching when applying new knowledge and skills). Properly designed e- learning works well for initial learning, but sales management must be involved afterwards to ensure that salespeople master and use the content in the marketplace. Sales and marketing executives are wasting their time and money if sales managers do not reinforce content after the event. The key challenge is how to provide e- learning that addresses these elements. The answer lies with the combination of classic TV/movie technology, and modern Internet and handheld delivery options. Video-Based Nano e-Learning The sweet spot in e- learning today is digital video with very specialized instructional design. It is one of the few opportunities where executives can actually spend less and get more. It requires no expensive programming, and delivers better results than high-cost narrated screen-flipping courses. Classroom or marketing content can be quickly and inexpensively converted into engaging video by placing the speaker right on top of the Power Points (like the weather person on the evening news.) Unlike a disembodied voice or graphic animations, this lets the presenter interact with the content, and reproduces the feel of a live event with the personality of the presenter coming through. A key advantage of digital video (unlike videotape) is that you can access any individual frame within seconds using jump buttons or a slider bar. Learners can view only what they need to, and 64
then get back to work. This non- linear access allows the digital content to be used in five different ways: initial learning, refresh learning, performance support, coaching, and meetings. Digital media also allows organizations to create once, deploy many without costly and time-consuming redevelopment for each delivery platform. Salespeople can view the same video programs on a variety of devices such as DVD/CDs, PCs, PDAs, phones, and handhelds. Proper instructional design is critical. Content must be short (nano-learning), literally in the ten- minute range per program. Salespeople just dont have the time or patience for anything longer. (More complex topics can be covered in multiple parts.) Slides must be graphically rich and properly animated. And programs must pose questions that are formally answered. All this helps turn what would seem to be a passive medium into an engaging experience. A key advantage of digital video is that you can access any individual frame within seconds This allows the digital content to be used in five different ways: initial learning, refresh learning, performance support, coaching, and meetings. ROI Examples This revolutionary approach to sales force development has proven successful in a variety of organizations, from consumer goods to agriculture to industrial sales. It generates hard-dollar ROI results. The Pepsi Bottling Online Campus (ej4.com) delivers over 200 video nano courses to 40+ bottlers. Program categories include: Pepsi products, sales, negotiating, merchandising, administration, HR compliance, supervision, leadership, safety, DOT, and software. Courses are available in both English and Spanish. Bottlers have reported that the training: Tripled their sales growth rate. Improved execution at retail as measured by Pepsis Mosaic Info Force Retail Audit. One bottlers ranking went from 20th to 6th in the U.S. Reduced product returns from 8 to 10 percent to 3 to 4 percent. Reduced turnover from 3 to 5 per month to 1 per month. 65
Reduced accidents and worker compensation costs. Lowered training costs. Allowed the training of more employees. Reduced time out of market for training. Increased morale and productivity. Increase retailer satisfaction. The Golden Harvest Seeds Company provided over 50 video nano courses to its field sales staff and to its network of 2,400 dealers. Program categories include: sales fundamentals, advanced selling, sales electives, Agronomy Up Front and field staff training. Golden Harvest reported that training helped generate these results: Overall sales increase of 22% the best sales year in the companys history. 10 times the number of new customers, to nearly three times the previous all-time company record. Profits 4% higher than a division not doing the training. New dealer recruitment at 140% of goal. Average of three less calls to recruit a new dealer. Dealer turnover cut by two-thirds. Summary In an annual year-end report, industry analyst Josh Bersin labeled the approach used by Pepsi bottlers and Golden Harvest as high impact video e- learning with compelling and exciting uses. Organizations have utilized video-based nano e-learning to create competitive advantages in the marketplace, resulting in greater sales, higher margins, lower costs, improved employee and customer satisfaction, and operational efficiencies. 66
Source: ej4 LLC (Just as needed, Just enough, Just in time, Just right) Woodcrest Executive Drive St. Louis, MO 63141 http://www.ej4.com info@ej4.com
Case Study 4 Sales Force Training Manual at Saint Gobain Design and develop a Sales Force Training Manual for Sales Engineers, Sales Executives and Managers (120 in number) working with the Abrasive business of Grindwell Norton. Proposed Tangible Output for the Project: Increased levels of competition, rapidly changing technology, and a renewed focus on customer retention and relationships are but a few of the reasons why sales managers increasingly seek sales force training and development activities that lead to increased sales force productivity. The Training Manual will require conducting the Training Need Analysis for the employees across different sales verticals of Grindwell Norton. Output from the TNA would be used to obtain the overall training requirements which will be critical for designing the training program. The manual will also give the information regarding the planning and designing part of the training and finally how the training should be evaluated to measure its business impact. Basically it will explore all the important phases involved in training. Training will help in streamlining the future sales force trainings. This manual can be used as a reference for conducting & evaluating future sales trainings. This will ensure that quality trainings are given to the sales force people based on their individual and 67
business requirements. This will result in the improved performance and better talent management of the sales force which will further result into not just the sales revenue generation, cost and waste cut down but also in the overall retention of the top talent to keep the organization ahead of everyone in the fierce competition. This manual shall also help the sales force in developing the key competencies to prepare them for future roles and responsibilities across the different companies of Saint Gobain Group. It will also enable the organization to make its Sales force more efficient and less risky for future businesses. Need for Training Saint Gobain believes that developing people is crucial to its success as a company. To compete on an international scale, in a variety of different markets, it needs individuals who can learn quickly; develop themselves and adapt to changing circumstances. Thus, Saint Gobain seeks to develop a pool of talented individuals who can provide business leadership, people leadership and deliver value. Training and Development is a subsystem of an organization. It ensures that randomness is reduced and learning or behavioral change takes place in structured format. Traditional Approach Most of the organizations before never used to believe in training. They were holding the traditional view that managers are born and not made. There were also some views that training is a very costly affair and not worth. Organizations used to believe more in executive pinching. But now the scenario seems to be changing. Modern Approach This approach of training and development is that Indian organizations have realized the importance of corporate training. Training is now considered as more of retention tool than a cost. The training system in Indian Industry has been changed to create a smarter workforce and yield the best results Types of Trainings Technical type of training focuses on training the sales force people from technical aspects of their jobs. Behavioral training focuses on training the sales force people from behavioral aspect of their jobs, e.g. Customer Relationship Management. Functional 68
training focuses on areas which are common across the organization and hence we need to train all the sales force people on these areas. Course Content This is also a very important part of the training program where we need to mention regarding the course content of a particular course. Basically it is about clearly specifying that what all topics needs to be covered with respect to a particular course. Methodology will inform participants and trainers about the kind of training methods which will be followed for conducting a particular course during the training, e.g. Role Plays, Case Studies, Lectures, Presentations etc.
Orientation Training Common for all the Positions Course Title: Induction, Course Learning Objective: To orient sales force people of the about Saint Gobain Group and about the GNO Abrasives Business. Course Contents 1. HR Induction - Saint Gobain India & Worldwide and HR Policy 2. Overview of GNO Abrasives Business 3. GNO Abrasives Business - Historic perspective, SBU/SSBU concepts, competitive landscape, Key personnel 4. Company Philosophy 5. Quality policy 6. Planning methodology, plans & goals 7. Logistics organization & practices 8. Statutory regulations governing business 69
9. Product mix and impact on profitability Trainer: Regional Business Heads, National Business Heads, Corporate HR Managers and Products Managers Methodology: Lectures, Discussions, Audio Visuals and Text Versions, Case Studies, Ice breaking Games Delivery: Classroom, On the Job (Plant Visits) Duration: 2 Days Evaluation: Test after the completion of the Induction training. Course Title: Products Training, Course Learning Objective: To make sales force people aware of the different products knowledge, specification, products capabilities, limitations and their applications business category wise in abrasives business of GNO. Course Contents 1. Understanding abrasive specifications - Business category wise 2. Specification selection - Business category wise 3. Basic application knowledge - Business category wise 4. Trouble shooting - Business category wise 5. Product capabilities and limitations 6. Product Portfolio - Business category wise Trainer: Products Managers Methodology: Lectures, Discussions, Demonstrations, Audio Visuals and Text Versions, Behavior Modeling, Incident Process, Case Studies, Role Plays, Games and Simulations Delivery: Classroom, OJT (Plant Visits) 70
Duration: Content Specific Evaluation: Test after the completion of the product training. We can conduct this test regularly on quarterly (Online) basis as well to keep a check on their up-to-date product knowledge. Course Title: Price Training, Course Learning Objective: To make sales force people aware of the different product pricing, discounts and guidelines business category wise in abrasives business of GNO. Course Contents 1. Product Pricing - Business category wise 2. Special discount - Guidelines and administration 3. Market Price Monitoring Trainer: Sales Engineer Methodology: Lectures, Discussions, Audio Visuals and Text Versions, Case Studies, Games And Simulations Delivery: Classroom Duration: 3 Days Evaluation: Test and feedback from customers. Course Title: Behavioral Training, Course Learning Objective: To make sales force people learn professional selling skills, negotiation skills, communication skills, time management and E-mail management for improving their behavioral competencies. Course Contents 1. Professional selling skills 71
2. Negotiation skills 3. Communication skills - public speaking, written communication 4. Time management 5. E- mail Management Trainer: External (Faculty/Consultant) Methodology: Lectures, Discussions, Audio Visuals and Text Versions, Case Studies, Role Plays, Behavior Modeling, CBT, Games and Simulations Delivery: Classroom Duration: 6 Days Evaluation: Meeting deadlines and generating sales revenues Course Title: Place Training, Course Learning Objective: To make sales force people aware of the GNO dealer policy guidelines. Course Contents 1. GNO - Dealer Policy guidelines Trainer: Products Managers Methodology: Lectures, Discussions, Audio Visuals and Text Versions Delivery: Classroom Duration: 1 Day Evaluation: Test after the completion of the training. Key Recommendations 72
? Mapping the TNA inputs for each position and proposing the new training manual for sales force ? Induction training and Product Training must include OJT (plant visits) ? Feedback forms shall be used for evaluating training at different levels ? Robust performance management system needs to be in place to keep a track of participants performance on the job after the training ? Line managers and the immediate boss needs to keep a check on the performance of the participants, if they feel that someone is not able to perform even after the training then they need to recommend those participants for refresher course
Chapter 4. Findings and Analysis 1. Analysis of Primary Data Collected from HR trainers and Sales Executive Here data which has been collected as in primary format form sales executive, HR trainers and free lancers. This data I have collected by use of questionnaire, which is based on importance scaling method. As stated in objective of the study was - to identify the factors affecting the Training of Sales Force, which is nothing but essential ingredient for hitting the sales target of FMCG organization and to suggest various ways to improve the training content on Communication Training and any kind of other training for sales force and ready hand training material for any sales person to win a sales deal. The questionnaire I used is attached are the Appendix 1 and 2. The analyses of all questions are as follows starting from question 1. Analysis: Questionnaire 1 (I have include few important gr aph and others are kept in tabular format) 73
The following two graphs talk about the importance and level of criticality Sales as organizational function. Here sales function is the important function for business development (95 % respondents) and it is act as barometer of growth (almost 99 % respondents) 1 Sales as function is highly important in FMCG company for its business development
2 Sales is one function which actually act like barometer of growth of FMCG organization
The next part of analysis trie to focus on the skill set which a respondents carry as sales front player. The skill sets required for sales force in FMCG organization are very critical for their sustainability at field. These skill set has to be inculcated on them through training of various imporatnce. Here after analyzing and graphically plotting the response 74
of all respondents, around 85 % people are neutral on this issue. Actuall it is indication of unawareness of training availability 6 I carry all kinds of qualities required to perform my Sales Job in todays highly dynamic setup of FMCG organization
Here is some attempt I made to get knowledge of gap analysis of qulaity and quantity of training one receive at workplace. Here the gap is in two areas i.e. one in qulaity of training and second is quantity of training received. The no-existance of gap will indicate that training given is appropriate and logical and up to the required limit but in case the there is gap then, its serious concern for organization and its sales force performance. After plotting the analysis, I got existance of gap in training to sales force. Almost 86 % people felt that there is gap in training quality and quantity. It suggest ther is need to improve or bridge this gap and add some new programs on training to all sales force. 8 I feel there is Gap exist in training quality and quantity I received here at workplace 75
The next phase talks about the tackling skill of sales person with customer i.e. his/her selling and negotiation skill. These skill are nothing but when one deal with customer has to apply on product, place, price and packging part of the product. These are the skills which always in need for all kind of sales person FMCG set up . One has to keep him or her updated for any kind of prodcut , price, place and packaging negotiation. The finding of anaysis suggest that 90 % of people are not in aggrement to that they posses these skill through training or as natural and thus they are not sure for winning a deal. 9 I can tackle any kind of situation with customer by Selling and Negations skills of mine 76
Getting relevant training is always a concer for sales person. One has to get relevant training so that he as part most critical function in organization can add value in main flow of profit or say bottomline of company. Here not only relevance but its availability on time is also very important. After asking respondents their response was so that, most of them ar eagrred to the fact that they need a relevant and on time training which can add value in bottomline. Almost 80 % of people said so. 16 Getting relevant training on time can add value in bottom line of company from my side
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This response I generated just gauge the participation level of person in sales force for designing the sale training for any new entrant in the line of sales. This is clear indication of how people can bring their practical knowledge in learning cycle of others. Here total 95% of respondents felt that they can do this. 17 Practical experience in sales, made me so exposed, I can design training for new entrants
Next area of concern was to see how much sales person feel about his failure on job and its affection towards his work. Here I want to show the lack of training or non-delivery (job of HR) of training results in failure of person who is on line i.e. sales person. This very serious concern for the HR department and person who is commiting mistakes. Here 80 % respondenst feel responsible for their failure at job. 18 I feel responsible for faults/ loss at work just because of lack of training in some area 78
Here I tried to throw some light on various wayas of training and training areas where one needs to improve himself/ herslf. These areas are so critical which can either (if it is strong) can lead to wining of sales deal or lead to loss of huge sales deal which may be because of repeat customer or new customer (in case weak). These are the key areas for any sales person, which has to get improve at any cost. If person is not good say listening, cold calling skil and he is in sales force, it is very serious for any company in FMCG sector and in general. Thus to stay updated with thess skill is highly critical for one in sales force. After receiving the responses of people, I realized that around 86% of people agreed to get training in these areas of training. 19 Receiving training on listening, presentation, cold-calling, speaking and product is my right and essential ingredient of success on field. 79
The otherquestions of the Sales questionnaire and all HR questionnare I attached here with percenatge of responses in the cell provided for personal response. The question I inclided above were more peculiar and significant as far training for sale people is concerned. These question suggested me how to develop the detailed list of recommendations which I can add as my research outcome. These recommendations which I gave are based on the above questions response, other questions response and case studiess which I stated before this analysis. On next page we can see the all question with percentage of response. Questionnaire 2 Instructions Symbol Meaning SD Strongly Disagree D Disagree N Neutral A Agree SA Strongly Agree
Questionnaire 2 80
Personal Details Name of the Organization Experience in (Months) Designation Competencies and Skills Sets Required SD D N A SA 1. The Competencies required for Sales are more of Generic nature rather than Specialist 0 0 10 67 23 2.The skill sets and competencies requirement are vary with every new location and person of Sales 0 0 8 72 20 3. The good interpersonal skill add high amount of energy add value in Selling Volume 0 20 0 65 15 4. The actual scenario is always differs and use of competencies and skills for each situation gets mould as per sit uating 5 15 49 21 10 Training For Sales Force SD D N A SA 5. Genuine need of training on day-to-day basis always exist in FMCG Org 1 15 60 15 9 6. Cross functional training is necessary for Sales people 0 0 20 70 10 7. Conducting Simulation exercise - which is On-the- Job training can be very enhancing way to training Sales force of FMCG 0 0 9 10 81 8. Product training with all kinds of variation in it is essential for Sales Force 0 0 0 70 30 9. Situation-Problem-Implication-Need (SPIN) type of questioning and training on same not appropriate most time 50 40 0 9 1 10. Communication Skill and listening are most important training one should get on Sales 0 0 10 78 12 11. Good presentation & Grooming understanding of dressing sense - know-how in FMCG Sales force have to be part of Training Content 0 11 4 50 35 12. Conducting Assessment Centre is one way we can get judgmental criteria on capability of Sales Person 30 15 15 39 11 13. Netiquette do play an important role in sales force effectiveness 0 0 0 89 11 81
14. Voicemail and Cold Calling training to all Sales force is new phenomenon to improve and add-up in Sales volume 0 0 0 5 95
All numbers are in percentage of total respondents Figure No. 4
By studying all the case studies mentioned above it is quite clear that training for sales force is essential ingredient. Initially every employer was in consent to have various types of training for Sales people. They felt there is no rigorous need of training for frontlines of their company. They had mindset to not work on training aspect of their sale force and they can manage without giving training to them. The facts in the above case studies suggest that there are various kinds of training available and which can be imparted to their sales force with all expected tangible output. In first case of ABC Inc, is keener on direct sale training. It is big FMCG organization which has many channel partners. It states nits training needs fulfillment by two examples of the XYZ solution (trainer) are Manufacturing 101 and Boot Camp. It originally partnered with XYZ because they understood ABCs business and had a solid track record of delivering high quality results with speed and consistency. XYZs performance caught the attention of Sales and Channel Management stakeholders throughout the company. Through their work on Manufacturing 101 and Boot Camp, XYZ has raised the bar for training at ABC and become ABCs premier training partner. It proves the training outsourcing concept for FMCGs which have huge channel network. The main intention to have all this was new-hire time to sales readiness was taking far too long, clear vision of training goals, but insufficient resources to reach them, channel partners needed to increase consultative selling competency. They had actual training concern was to create a robust, comprehensive training program utilizing the combined strengths of XYZ instructional designers and ABC subject matter experts within a tight timeframe, empower two groups of learners at the same training event: students with sales experience who lacked familiarity with the manufacturing industry and students with industry knowledge but little sales experience, win the confidence of 82
ABC stakeholders who were skeptical of the value of working with an external partner. They designed some plan which incorporates - Conduct interviews and collect data to confirm desired outcomes and build relationships with ABC stakeholders in order to establish a cohesive partnership and a shared vision of Manufacturing 101 objectives, Asses and analyze current learner knowledge levels, desired future levels, and learner characteristics and Design a standard courseware format and a rapid instructional framework to enable development within a short timeframe. In second problem of product launching they faced severe problem of training and communication among sale force and top management. The problems were increasing product and solution complexity, history of insufficient instructional design techniques, poor communication between key personnel and no proof of training value without impact measurements. The Challenge in front of ABC in Sale force training was to Design and develop 72 hours of instructor-ready training content in 12 weeks, Create and facilitate training for a diverse audience of channel partners, Gain buy- in from ABC divisions reluctant to take time from their tight schedules to work with XYZ staff and Design and deploy various methods of measuring Boot Camps impact on reseller satisfaction, knowledge transfer, application of skills, and business results. For the very same they designed the plan to - Take Boot camp from a typical conference-style event with an emphasis on PowerPoint lectures to a high- impact, interactive training event, Implement a comprehensive plan to track sales results, behavior change, knowledge transfer and student satisfaction results in a detailed, quantifiable manner, Make XYZs instructional designers available to give tips and suggestions to ABC presenters accustomed to finalizing materials at the last minute, Institute efficiencies to leverage course content and design across ABC divisions, Promote interactivity, games, and role- plays during training sessions. In second case the finding was directed towards the very untraditional use of SPIN technique in sales force development. The basic motto of the company given here called as NEW Consulting (name changed), is to focus on increasing the sales by improving sales performance by giving research based analysis on SPIN technique. The NEW 83
Consulting a started investigating the process of creating major sales, with a view to defining once and for all the skills used by the most effective sales professionals. They tried best way to apply Science to Major Sales activities. The main objective of this study was to optimize Sales skills with SPIN and not surprisingly, this invaluable research has been turned into a training program, which gives all sales professionals the opportunity to optimize their performance by adopting the SPIN Success Model. An overview of the SPIN Selling Skills program is overleaf followed by a summary of some of the key research findings. For this study as target audience researchers chosen any employees involved in the sale of goods or services, which are seen as high- value, important decisions by the buyer. In addition to the obvious audience of sales executives and sales managers, this program can be very beneficial to engineers, technical specialists or sales support staff who are involved in the selling process or who may be exposed to selling opportunities in the course of their work with customers. Ultimately SPIN Research Highlighted the full, fascinating story of the research studies and the development of the SPIN. Selling Skills model can be found in Making Major Sales, written by Neil Rackham, founder of NEW Consulting. The finding were true with need of todays sale force training area to develop and they were like - All needs are not the same i.e. Conventional training treats all need statements as generic: Find a need, meet it and you have a sale. Yet common sense says that there is a clear difference between a customers who complains, Conventional probing does not work i.e. Probing (sales jargon for asking questions) is supposed to uncover customer needs and to achieve this Closed questions and Open questions hve to develop to know the customer. Also the sales person must develop four types of questions, which are categorized by their purpose: - Situation Questions To gather background information and understand the context of the sale, Problem Questions To explore the customers dissatisfactions and concerns, Implication Questions That develop apparently isolated problems by examining their knock-on effect on other areas of the customers business, Need-payoff Questions That invite the customer to consider the benefits of solving his or her problems and, having done so, to express an Explicit Need for a solution. 84
The above module so well worked in almost all kind of organization including FMCGs one that no other doubt have been left to resolve sale performance issue through Training. Third case talks about the use of Video-Based Nano e-Learning to Create a Competitive Advantage in Sales Performance. The rational to have this E- learning is classroom training and traditional e-learning are losing effectiveness while simultaneously becoming more expensive. Sales and marketing executives face the critical question, How can I afford in terms of both time and money to motivate and develop my sales force in a way that actually changes behaviors and drives sales? Sales and marketing executives have a simple goal -Create a significant competitive advantage in the marketplace by better developing and informing salespeople. Thus they must move towards taking advantage of digital video that one can access any individual frame within seconds This allows the digital content to be used in five different ways: initial learning, refresh learning, performance support, coaching, and meetings. If one goes by the benefits of the same kind of e- learning there are many example which we can get out of give case and it proves the importance of training. The findings are - Tripled their sales growth rate, Reduced product returns from 8 to 10 percent to 3 to 4 percent, Reduced turnover from 3 to 5 per month to 1 per month, Reduced accidents and worker compensation costs, Lowered training costs, Allowed the training of more employees, Reduced time out of market for training, Increased morale and productivity, Increase retailer satisfaction. Thus e-learning solution for FMCG sale force is best way to achieve performance growth in all areas of sales. The fourth case which is on Saint Gobain Organization is self explanatory, in itself and its findings are there to clarify. The importance of sales training has been put forward through all of these cases suggest there is need of prudent behavior at the end of HR trainer to develop new and more efficient ways dealing with kind of training designing and delivery to sales force. It can be said that training is essential ingredients in development of sale force along with other way to learn which are traditional. The overall growth of any FMCG (or any) 85
organization is directly related to sale growth and sale growth relate to the performance improvement of sale people of that organization.
Chapter 5. Recommendations How to Create and Maintain Sales Training Results 1. Analyze and clearly identify the actual needs of both the organization and the sales personnel 2. Develop training action plan and present it to management 86
3. Find and/or design and develop criterion-referenced training material 4. Design comprehensive measurement and follow-up plan. 5. Select and train trainers. 6. Validate the program with pilot group. 7. Collect data, analyze these and adjust the program. 8. Implement the training program. 9. Monitor and enhance the program over long term. Steps to Improve Sales Process Training 1. Win Management Support 2. Do Need Analysis 3. Present Training Action Plan 4. Design and Develop Training 5. Design Measurement and Follow Up 6. Select and Train Trainers 7. Validate With Pilot Group 8. Collect Data, analyze and Make Changes 9. Implement With Final Material 10. Monitor and Enhance
IDEA WIN MANAGEMENT SUPPORT DO DESIGN DESIGN AND DEVELOP TRAINING YES NO WIN: NO PROGRAM NOT TRAINING MANAGEMENT REVIEW 87
How to Write Effective Direct Mail Sales Letters Ensure the message matches the needs of the target audience: - Does your offer of products and/or services match the needs of the recipient? Don't make your pitch to a company president if your message only applies to the marketing staff. 88
Get to the point. If you begin your letter with general, hazy information - you risk losing the reader. It's critical you make your point in those first few lines. Be clear and concise. Sell benefits, not features: - Many businesspersons love to list and discuss product features. However, your potential customers want to know how he/she will benefit from using the product. It's okay to list features, but also include the end-user benefits. For example, a feature of the word processor is that it allows you to write and edit content electronically, so you don't have to retype the entire page. The benefits are that it saves a lot of time, and increases productivity. Keep it personal and conversational: - Given today's access to current data, there is no excuse for sending out form letters. Personalize each letter you send out in your direct mail campaign. In terms of writing style, just write like you talk - and you're sure to make a warm, genuine appeal to your reader. Use letters to generate leads - not sales: - The goal of a direct- mail letter is to generate a response, not a sale -whether it is a return mail card, a fax, email, phone call, or fax. The purpose is to open doors - the sale is the next separate and distinct step in the process. Write at a grade-school level: - Studies have shown that most of us read at an eighth- grade level. Avoid big words to make the letter easily understood. You can be technical if you choose, but simplify your language as much as possible. Postscript (P.S.) is your friend: - Case studies indicate that the typical letter recipient's eye moves down the page to the P.S. before they read everything in the letter! Try to restate your proposition in the P.S. Use white space: - Readers are often turned off by large gobs of text. Try to use short paragraphs and bullets and/or numbered lists. Give the reader some breathing room! 89
Keep it to one page: - Most presidents, purchasing agents, plant engineers, and other decision makers are very busy people. Make your point, sell the benefits, make it easy to read - and keep it to one page. Make a "no-risk" offer: - Offer the recipient something - and make it no risk. Offer free information, an article, some industry tips, free tutorial, or product sample. Create a deadline: -Whether there is a real deadline or one you create, make one. Usually, a deadline increases the rate of responses because of the limited amount of time to act. Call to action: - Ask and ye shall receive . . . Why not ask for the order? "Call our toll- free number, 800-555-SALES, for a free consultation". Use postage reply mail: -Include a business reply card for better response. Make sure it has pre-paid postage. Don't lose an inquiry for the cost of a single stamp. Include a guarantee: - If you can offer a guarantee - be it your follow-up, delivery, customer service, or pricing - do it. By offering a guarantee, you offer integrity and credibility to your products/services. Include testimonials: - Nothing speaks louder for your product or services than a satisfied end user. However, if you use names and companies, make sure you get a signed authorization from them.
Tips for Maximizing Your Sales Letter Response - Susan Ward, About.com 1. Send your sales letter to the right people 2. Personalize your sales letter 90
3. Write different versions of your sales letter for different segments of your target market. 4. Include an order form with your sales letter 5. Dont include fancy graphics in your sales letter. 6. Dont use mailing labels on your sales letter envelopes 7. Dont put teaser copy on your envelopes 8. Send out a repeat mailing two or three weeks later 9. Put your sales letter on the Web 10. Be realistic about the response rates your sales letter may generate Armed with these tips, you should be well on your way to conducting a successful sales letter campaign. Direct marketing is still one of the most effective marketing strategies out there as long as you send the right sales letter to the right people the right way.
Tips to Voicemail Survival for the Sales Professional - From Mark Hunter, for About.com 1. If your goal is to get the phone call returned, dont leave information that would allow the person to make up their mind. Add a call-to-action to your message by providing a key date or something of interest that will encourage the person to return the call. You have to create a reason for them to call you back. 2. Repeat your phone number twice. If the person cant quickly write your number down, youve given them a perfect reason to not call back. 3. Avoid asking ask the person to call you back at a certain time. This provides them with an excuse not to call you. 91
4. Never state in the message that you will plan to call them back. Again, this only gives the person an excuse to ignore your message. 5. Messages left on a Friday afternoon are the least likely to be returned. For most people, Monday mornings are very busy and, as a result, only highpriority activities will get their immediate attention. 6. Do not leave voicemail messages at odd hours of the night. Most voicemail systems offer a time stamp and the person hearing the message will immediately suspect you really did not want to talk to them. 7. The best hours to leave voicemail messages are from 6:45 AM to 8:00 AM and from 4:30 PM to 6:30 PM. Aggressive people are usually working during these time periods, and the person receiving your message could potentially view you as one. 8. Wisely use time zone changes to make as many calls as possible during the optimal voicemail periods listed in the previous tip. 9. Voicemail messages are an excellent way to introduce you to a person. Be personable, yet professional, and link your message to something of interest to the person you are calling (such as another person or event). The recipient may view your message as a waste of time if you have no purpose other than getting your name in front of them. 10. When leaving a message with multiple points, be sure to immediately disclose how many you will be making. This will prevent the recipient from accidentally fast- forwarding or deleting it before it is completely heard. 11. If you cant say it briefly, dont say it at all. Voicemail is not story time. Leaving a long message is an invitation to have the entire message skipped. The optimal voicemail message is between 8 and 14 seconds. 12. When leaving your phone number, do not leave your website address as well. This will give the person an opportunity to make a decision about you without calling you back. 13. Leave a PS at the end of your message. A PS is a very quick, additional piece of information that will connect with the person. 92
14. Mention the persons first name at least twice in the message, but dont use their last name. Doing so comes across as very impersonal. 15. Refer to a mutual acquaintance in your message as a way of connecting with the recipient. (Caution: Make sure they think positively of that person!). Cold Calling Tips -Ari Galper, for About.com and by Susan Ward, About.com 1) Focus on the goal when cold calling 2) Research your markets and prospects 3) Prepare an opening statement for your cold call 4) What should be in the opening statement of your cold call 5) Prepare a script for the rest of your cold call 6) Ask for an appointment at a specific time when cold calling 7) Remember that gatekeepers are your allies not your foes 8) Smooth the way for your cold call by sending prospects a small, unique promotional item. 9) Do your cold calling early in the morning, if possible 10) Be persistent when cold calling To Attract Attention, You have to Show Off - C.J. Hayden, for About.com Writing articles - Putting your expertise in writing and sharing it with publications your target audience reads is a powerful -- and very professional -- way to let more people 93
know about your unique talents. Submit your articles to both print publications and web sites that serve your niche and watch your visibility grow. Public speaking - Appearing as a speaker allows you to broadcast your expertise with three different audiences -- the people who attend your talk, the people who are invited by the sponsoring organization but can't attend, and the people you tell about it before and after. If standing in front of a room makes you too nervous, serve on a panel of experts instead. You'll get to sit behind a table and speak from notes. Media interviews - Being interviewed by magazines, newspapers, or on radio and television can spread the word quickly about your capabilities. Landing interviews is not that hard to do if you remember to start small. Begin by approaching easy targets like association newsletters, neighborhood newspapers, and local cable programs or talk radio. Telling stories - One of the secrets to effective articles, talks, and interviews is to tell stories about your clients. When you describe their challenges and accomplishments, you reveal the value of your role in helping them without having to boast about it. You can use the same technique in a client presentation to boost your credibility without being arrogant. Testimonials - Whenever you do a good job for a client, ask them to write you a simple thank you note describing what you did to make them happy. Then make their words available on your web site, brochure, or other marketing materials. Let them tell others about your value, and you won't have to say it yourself. Building a portfolio - It's not just artists that should capture their best work to show off in a portfolio. You can collect photos, examples, and other evidence of your accomplishments and display them on your web site, in a marketing kit, or with a PowerPoint presentation. You don't have to sell people on your abilities when they are seeing for themselves what you can do. 94
Creating products - Packaging your work into merchandise that prospective clients can take home and sample gives them a compelling way to discover your real value. Products like e-books, white papers, and audio recordings allow you to showcase your expertise and increase your credibility. They can often be advertised more widely than your services can, giving you another avenue for getting your name known. Ways to Stop "Selling" and Start Building Relationships - From Ari Galper, for About.com New Thinking = New Results: Maybe it's time to take a different approach. Maybe we need to seriously analyze our sales thinking so we can identify why we're not making more sales. Take a look at the table below and think about your current selling mindset. How would your selling behaviors change if you changed your sales thinking? Traditional Sales Mindset: Always deliver a strong sales pitch. New Sales Mindset: Stop the sales pitch -- and start a conversation. Traditional Sales Mindset: Your central objective is always to close the sale. New Sales Mindset: Your central goal is always to discover whether you and your potential client are a good fit. Traditional Sales Mindset: When you lose a sale, it's usually at the end of the sales process. New Sales Mindset: When you lose a sale, it's usually right at the beginning of the sales process. Traditional Sales Mindset: Rejection is a normal part of selling. New Sales Mindset: Sales pressure is the only cause of rejection. Rejection should never happen. Traditional Sales Mindset: Keep chasing every potential client until you get a yes or a no. New Sales Mindset: Never chase a potential client -- you'll only trigger more sales pressure. Traditional Sales Mindset: When a prospect offers objections, challenge and/or counter them. New Sales Mindset: When a potential client offers objections, uncover the truth behind them. Traditional Sales Mindset: If a potential client challenges the value of your product or service, you must defend yourself and explain the value. New Sales Mindset: Never defend yourself or what you have to offer -- it only creates more sales pressure. 95
Let's take a closer look at this central Unlock the GameT concepts so you can begin to open up your current sales thinking and become more effective in your selling activities: Stop the sales pitch -- and start a conversation. Your central goal is always to discover whether you and your potential client are a good fit. When you lose a sale, it's usually right at the beginning of the sales process. Sales pressure is the only cause of rejection. Rejection should never happen. Never chase a potential client--you'll only trigger more sales pressure. When a potential client offers objections, uncover the truth behind them. Never defend yourself or what you have to offer -- it only creates more sales pressure.
How to Create a Powerful Sales Presentation - Kelley Robertson, for About.com 1. Make the presentation relevant: One of the most common mistakes people make is to use a generic presentation. They say the same thing in every presentation and hope that something in their presentation will appeal to the prospective customer. I have been victim to this approach more times than I care to remember having been subjected to many canned PowerPoint presentations. 2. Create a connection between your product/service and the prospect: In a presentation to a prospective client, I prepared a sample of the product they would eventually use in their program. After a preliminary discussion, I handed my prospect the item his team would be using instead of telling him about the item, I placed it in his hands. He could then see exactly what the finished product would look like and examine 96
it in detail. He was able to ask questions and see how his team would use it in their environment. Also, remember to discuss the benefits of your products, not the features. Tell your customer what they will get by using your product versus your competitors. 3. Get to the point: Todays business people are far too busy to listen to long-winded discussions. Know what your key points are and learn how to make them quickly. I remember talking to a sales person who rambled at great length about his product. After viewing his product and learning how much it would cost I was prepared to move ahead with my purchase. Unfortunately, he continued talking and he almost talked himself out of the sale. Make sure you know what key points you want to discuss and practice verbalizing them before you meet with your prospect. 4. Be animated: The majority of sales presentations I have heard have been boring and unimaginative. If you really want to stand out from the crowd make sure you demonstrate enthusiasm and energy. Use voice effectively and vary your modulation. A common mistake made when people talk about a product they are very familiar with is to speak in a monotone - causing the other person to quickly lose interest in your presentation. I recommend using a voice recorder to tape your presentation. This will allow you to hear exactly what you sound like as you discuss your product. I must profess to being completely humiliated when I first used this tactic. As a professional speaker, I thought all my presentations were interesting and dynamic I soon learned that my stand-up delivery skills were much better than my telephone presentation skills. 5. Use showmanship: In The Sales Advantage, an example is given of a vending sales person laying a heavy sheet of paper on the floor, saying, If I could show you how that space could make you some money, would you be interested? Consider the impact of this approach compared to the typical approach of saying something like, We can help you make more money. What can you do to incorporate some form of showmanship into your presentation? 97
6. Use a physical demonstration: A friend of mine sells sales training; he often uses the whiteboard or flipchart in the prospects boardroom during his presentation. Instead of telling his client what he will do, he stands up and delivers a short presentation. He writes down facts and figures, draws pictures, and records certain comments and statements from the discussion. This approach never fails to help his prospect make a decision. 7. Lastly, believe in your product/service: Without doubt, this is the most critical component of any presentation. When you discuss solutions, do you become more animated and energetic? Does your voice display excitement? Does your body language exhibit your enthusiasm? If not, you need to change your approach. After all, if you cant get excited about your product, how can you expect your customer to become motivated enough to buy? Improve Your Negotiation Skills to Improve Your Bottom Line From Kelley Robertson, for About.com 1) Learn to flinch: The flinch is one of the oldest negotiation tactics but one of the least used. A flinch is a visible reaction to an offer or price. The objective of this negotiation tactic is to make the other people feel uncomfortable about the offer they presented. Here is an example of how it works. 2) Recognize that people often ask for more than they expect to get: This means you need to resist the temptation to automatically reduce your price or offer a discount. I once asked for a hefty discount on a pair of shoes hoping to get half of what I asked for. I was pleasantly surprised when the shop owner agreed to my request. 3) The person with the most information usually does better: You need to learn as much about the other person's situation. This is a particularly important negotiation tactic for sales people. Ask your prospect more questions about their purchase. Learn what is 98
important to them as well as their needs and wants. Develop the habit of asking questions such as; What prompted you to consider a purchase of this nature?" 4) Practice at every opportunity: Most people hesitate to negotiate because they lack the confidence. Develop this confidence by negotiating more frequently. Ask for discounts from your suppliers. As a consumer, develop the habit of asking for a price break when you buy from a retail store. Here are a few questions or statements you can use to practice your negotiation skills. 5) Maintain your walk away power: It is better to walk away from a sale rather than make too large a concession or give a deep discount your product or service. After attending my workshops, salespeople often tell that this negotiation strategy gives them the most leverage when dealing with customers. However, it is particularly challenging to do when you are in the midst of a sales slump or slow sales period. But, remember that there will always be someone to sell to.
Chapter 6. Conclusion 99
In entire industry of FMCG, sales force is key working force for them and constitutes to large amount of population in industry. The availability of trained sales force is expectation of any FMCG player, which is ideal case. After studying the entire area sales force training I realized there are immense ways for sales force training through which sales force effectiveness can be proven. In sector FMCG, during my study of Sales Force Training, I took sample of 30 veteran of this field, as my sample size. In that I overall study takes into account almost all the practices to be followed by any HR trainer during training of Sales person I studied. Considering expansion of FMCG is India there is not enough work has been done to develop sales force. The foreign players are settling their training issue in varied ways but there is less growth in training for them in India. Through my questionnaire I realized that sales force posses inadequate qualities, required for developing business, which can be imparted to them through training. There is also huge gap existing between kind training they supposed to get and what they are getting at the end result of any training program. Selling and negotiation on basis of price, place, product and packaging is necessary factor for sales person, is missing out of person who is actually dealing with everyday. Thus more and more inclusion and evaluation of same as in training content is becoming necessity. Also getting relevant training on time is need of the hour for all population sale force otherwise a huge loss in business can become truth for given FMCG organization. People who are veteran in field of sales has to be given a chance to design the training module for new or aspiring sales executive, is one of the critical finding. Here I tried to throw some light on various wayas of training and training areas where one needs to improve himself/ herslf. These areas are so critical which can either (if it is strong) can lead to wining of sales deal or lead to loss of huge sales deal which may be because of repeat customer or new customer (in case weak). These are the key areas for any sales person, which has to get improve at any cost. If person is not good say listening, cold calling skil and he is in sales force, it is very serious for any company in 100
FMCG sector and in general. Thus to stay updated with thess skill is highly critical for one in sales force. The above all are key finding based conclusion I made and is very relevant as per the limitatin of study is concerned.
Appendix 101
Questionnaire 1. INSTRUCTIONS Symbol Meaning Personal Details SD Strongly Disagree Name of the Organization D Disagree Exp. N Neutral Designation A Agree SA Strongly Agree QUESTIONNAIRE SD D N A SA 1 Sales as function is highly important in FMCG company for its business development 2 Sales is one function which actually act like barometer of growth of FMCG organization 3 Sales is function on which everyone in organization directly or indirectly dependent and related and it have grip on other funtion
4 I like most about my JOB - On the job learning, Performance Incentive, Link of Sales directly on business - are the things which (add anything else) 5 I hate most about my JOB - Kind of Training, Heightened imporatnce of Targets, Contigencies 6 I carry all kinds of qualit ies required to perform my Sales Job in todays highly dynamic setup 7 I received all kind of relevant training at my work place in my tenur till time 8 I feel teher is Gap exist in training quality and quantity I received here at workplace 9 I can tackle any kind of situation with customer by my Selling and Negotion skills 10 I need training whenever I go for new territory sales assignment 11 Trainer who designed training must attian sales stint for t hat territory and product 12 Most of the time without taking relevant training I get Sales Assignment 13 As a salesperson I can work in different department/ position in my FMCG organization 14 I carry stress all the time , whenever I am working on any Sales Assignment at any Location, on any Product 15 On Time Target completion & hence Time Management Skills are important for me 16 Getting relevant training on time can add value in bottom line of company from my side 17 Practical experience in sales, made me so exposed, I can design training for new entrants 102
18 I feel responsible for faults/ loss at work just because of lack of training in some area 19 Receiving training on listening, presentation, cold-calling, speaking and product is my right and essential ingredient of success on field.
Questionnaire 2 Instructions Symbol Meaning SD Strongly Disagree D Disagree N Neutral A Agree SA Strongly Agree
Personal Details Name of the Organization Experience in (Months) Designation Competencies and Skills Sets Required SD D N A SA 1. The Competencies required for Sales are more of Generic nature rather than Specialist
2.The skill sets and competencies requirement are vary with every new location and person of Sales
3. The good interpersonal skill add high amount of energy add value in Selling Volume
4. The actual scenario is always differs and use of competencies and skills for each situation gets mould as per situating
Training For Sales Force SD D N A SA 5. Genuine need of training on day-to-day basis always exist in FMCG Org
6. Cross functional training is necessary for Sales people 103
7. Conducting Simulation exercise - which is On-the- Job training can be very enhancing way to training Sales force of FMCG
8. Product training with all kinds of variation in it is essential for Sales Force
9. Situation-Problem-Implication-Need (SPIN) type of questioning and training on same not appropriate most time
10. Communication Skill and listening are most important training one should get on Sales
11. Good presentation & Grooming understanding of dressing sense - know-how in FMCG Sales force have to be part of Training Content
12. Conducting Assessment Centre is one way we can get judgmental criteria on capability of Sales Person
13. Netiquette do play an important role in sales force effectiveness
14. Voicemail and Cold Calling training to all Sales force is new phenomenon to improve and add-up in Sales volume
References 104
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Ann, Alison Earle Raising The Global Floor Dismantling The Myth That We Cant Afford Good Working Conditions For Everyone Stanford Politics and Policy 2009