Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Winter 2004
INTRODUCTION
At the end of the day, it all boils down to execution. From these executives, we identified three major issues that are severely
These are tumultuous times for sales organizations. Cost per sale is up. hampering their organizations’ ability to sell:
Competition is more intense. And top performers are jumping ship. To > Substantial skill gaps among Sales Reps.
remedy the problem, many sales organizations look to technology, new
> Lack of leadership and coaching skills among Sales Leaders.
incentive plans, and additional sales training for their Sales Reps and
> The skill gaps are most dramatic among organizations undergoing
Sales Leaders. While these initiatives may move the needle, they do
significant change, such as rapid growth initiatives or shifting sales
not address one of the major sources of sales force ineffectiveness—the
approaches.
hiring and promotion process.
These findings indicate that there are fundamental flaws with the hiring,
To learn more about the challenges facing sales executives—and
promotion, and accountability systems used by many sales organizations.
determine what they perceived to be the root causes of their problems—
Fortunately, many of these problems can be avoided. With a clearer
DDI and Sales and Marketing Management magazine recently conducted
definition of their needs, and accurate assessment of sales candidates’
a survey of 159 Sales VPs. Survey respondents represented a variety of
skill levels and motivation, organizations can identify, hire, and promote
industries, company sizes, growth rates, and sales strategies.
higher quality sales talent that fit with their sales culture.
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FINDING 1 THE CHANGING SALES APPROACH Prior to the decision to shift, executives typically go through
a detailed analysis driven by extensive and accurate
34% of Sales VPs Stagnant or declining sales. New competitive threats. information on competitors, win/loss criteria, and the size
plan to shift their sales Product differentiation. Many factors go into an executive of potential sales pipelines. This same rigor needs to be
approach over the team’s decision to shift their company’s sales strategy. applied to gathering and analyzing accurate information
next three years. Among Sales VPs responding to the survey, 34% plan to shift about the ability of each Sales Rep and Leader.
their sales approach over the next three years. However, it is This requires:
never easy to get a sales force to shift on a dime. Sales Reps
> Isolating the right “Sales DNA”—Identifying the
and Leaders who were thriving under the old strategy will be
fundamental skills and motivations critical for success
resistant to the shift. More importantly, a significant number
at each level within the organization.
of both Sales Reps and Leaders will either fall or be left
> Putting everyone through a “Sales MRI”—Assessing
behind because they do not have the “stuff” to adapt.
each individual’s strengths relative to the skills needed
So what can senior executives do to mitigate to handle the shift and rolling them up to assess the
the high risk associated with executing a overall health of the organization.
new strategy?
The Sales VPs were asked to describe their current sales customizable products and services to customers who want
approach and their anticipated sales approach three years insight, advice, and help solving their problems.
from now using the following definitions: BUSINESS-CENTRIC SALES involves entering into a high-
PRODUCT-CENTRIC SALES involves selling a well-defined level partnership with a customer who wants to leverage the
product or service to customers who have predetermined core capabilities of your organization to realize a long-term
needs and are primarily seeking a low price and buying business strategy.
convenience.
Shifting to
Solution-Centric
33%
FIGURE 1: Anticipated Shift in Sales Approach Over the Next Three Years
3
FINDING 2 SALES FORCE GROWTH Overcoming these problems requires a more disciplined
approach to selecting and developing your sales force.
79% of Sales VPs will The good news is that after years of lean organizations, Doing it the wrong way can risk destroying your sales
grow head count over Sales VPs can now put more feet on the street. Among the culture. Sales tests, simulations, and competency-based
the next three years. respondents, 79% will grow headcount over the next three interviews can give you a quick and accurate read on each
years—over one-third anticipate double-digit growth. candidate, producing new hires who fit the culture, who
The bad news is that this growth causes two problems: will learn how to sell your solutions faster, and who will
remain within the organization over time.
> Companies are luring your top sales people away.
High Growth
(>10%) Reduction
37% 14%
Zero Growth
7%
Moderate
Growth
(1-10%)
42%
5
FINDING 4 SALES REP DEFICIENCIES Regardless of the situation, most companies view these
failures as a training issue, instead of a selection issue.
38% of Sales Reps We asked the Sales VPs why their Reps fail. “Lack of The fact is that you can’t train people on everything.
fail due to “Lack of Industry Knowledge or Experience” was by far the top reason
If someone does not possess the drive to
Industry Knowledge.” given—cited by 38% of respondents.
sell, all the training in the world is not going
But do the sources of failure vary depending on a company’s to give it to them.
situation?
While motivation can’t be trained, it can be assessed during
To answer this question, the respondents were classified into the interview cycle—asking questions and giving simulations
three categories—companies shifting their sales approach, that measure not just the “can do” but also the “will do.”
companies growing their headcount, and stable companies Assessment processes that closely parallel the sales
that are neither shifting nor growing. challenges by competency can reveal an individual’s
The source of Sales Rep failure varied significantly depending specific behavior and skill gaps. An effective development
More than
80% of Sales Leaders Less than
23% 20% of Sales Leaders
19%
61-80%
of Sales Leaders
10%
21-40%
41-60% of Sales Leaders
of Sales Leaders 25%
23%
7
FINDING 6 SALES LEADER DEFICIENCIES their sales coaching skills and the ability of Sales Leaders
to accurately assess each individual’s development needs
62% of Sales VPs say Sound the alarm bells—nearly two-thirds of Sales VPs cite relative to the new job roles.
Sales Leaders lack lack of “Leadership and Coaching Skills” as the source of
This problem usually stems from a lack of objective and
leadership and their Sales Leaders’ failure. For companies shifting their
accurate assessments of leadership potential and motivation
coaching skills. sales strategy it jumps to 80%.
during the hiring and promotion process. But, leading a
Poor leadership causes extended periods of poor productivity, sales effort and coaching others to carry it out require very
lackluster morale, and high turnover. Dissatisfaction with a different skill sets and motivations.
boss is the number one source of unwanted turnover.
9
CONCLUSIONS
The success of your sales organization depends on how Ultimately, the challenges faced by Sales VPs come down to
you answer these two simple questions: a matter of identifying, hiring, and promoting the right talent.
> Do your Sales Reps and Sales Leaders have the skills
DDI has found that the most important factor in determining
they need to succeed? success profiles for sales positions is an understanding of the
company’s selling strategy. Thus, the competencies and
> In terms of culture and sustained competitive advantage,
assessment process differs substantially based upon a
what kind of legacy will your current sales team leave
company’s selling strategy.
behind?
Selection and promotion systems that take into consideration
The sales organizations we surveyed reported significant
the organization’s needs, incorporate comprehensive
problems in terms of skill gaps and motivation levels among
success profiles, and perform accurate assessments of
Sales Reps and Sales Leaders. These problems are most
individuals will do a better job of hiring talented performers
severe among those organizations undergoing rapid growth
who contribute more and stay longer.
or changing in strategic sales direction.
11
ABOUT DDI’S SALES TALENT
CAPABILITIES
DDI has helped hundreds of organizations around the world > Tailored selection and assessment systems designed to
hire, promote, and develop high-performing sales forces. help you make better hiring, promotion, and development
Our areas of expertise include: decisions.
> Defining success profiles (skills, knowledge, abilities) > A wide range of courses, activities, and programs to
required for extraordinary sales forces. produce more effective sales leaders.
61.2.9466.0300
Other major offices in
Auckland, Bangkok,
Jakarta, Kuala Lumpur,
Manila, Melbourne,
Seoul, Shanghai,
Taipei, and Tokyo
E-MAIL: INFO@DDIWORLD.COM
WEB: WWW.DDIWORLD.COM
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