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The SellWell Papers What Is Sales Competence? A Definition and Practical Suggestions

This short SellWell Paper sets out to answer questions we are frequently asked on the subject of sales competences such as:
How do you understand sales competences? What are the vital characteristics of good salespeople, relationship managers and sales managers? How do you define sales excellence? How do you measure sales competence?

Firstly, a definition. Competence is the ability to do. It is typically composed of skills, knowledge, attitude (or values) and attributes. The attributes are embedded characteristics that are extremely difficult, if not impossible to change. So while they are an important aspect of recruitment they do not really fall within the scope of a development programme. When we set out to measure and improve sales competences our first step has to be accurate definition. Sales is sometimes described as a Black box or the mysterious domain of talented individuals and it can be hard to define the components of its success. One way is to talk with and observe top performers and compare what they do with average and poor performers. Very few top performers find it easy to explain why they are good. They either say Youve either got it or you havent (and Ive got it). If you havent got it theres no point in me trying to explain it to you or they become very humble and say Oh anyone could do what I do. I guess Ive just been lucky to be in the right place at the right time. Neither of these responses is very helpful. This is why Mercuri International has set out to create definitions and descriptions of good, reasonable and poor sales competence. It is often necessary to adapt these definitions in a particular company to fit with market, cultural or linguistic differences. The definitions we have created reflect some 40 years of working with salespeople around the world including for example salespeople from 110 banks, all the Big4 accountants, 9 out of Europes top 10 insurers etc, Basing your sales competences on the definitions we have refined gives you confidence that you are not missing anything. Of course you can and should adapt, refine and add to make the competences your own but this way of working saves huge amounts of time and ensures consistency and validity. Our first consulting step is to list the competences with you. This is usually done on a 5x3 matrix. 3 types of competence skills, knowledge and values - and 5 dimensions. Why 5? Because it seems to work neither too many or too few.

Keep good company: 43 of Europes top 50 financial institutions have chosen Mercuri since 2000 Mercuri International 2009

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The SellWell Papers What Is Sales Competence? A Definition and Practical Suggestions

Some examples of the 5 dimensions are: Key Account Management Strategies Solutions People Management Measurement Sales Core Selling Skills Winning New Customers Retaining and Developing Existing Customers Winning The Deal Self Management Sales Management Personal Skills Strategy Manage Sales Results Manage Sales Activity Manage Sales Competence

The definition of the competence needs to be clear and easily understood. There is a particular challenge when working in multiple languages. The next step is to describe levels. We usually work on a nine point scale. Why 9? Well it allows sufficient granularity without being too complex. 5 point scales work well for generic competences but are not right for developing sales people when you need to be able to measure improvement. Also, a 9 point scale allows people to position themselves in the middle with a 5! We normally describe what it means to be at 2, 5 and 8. This allows enough clarity for someone to say I am a bit better than 5 but not quite at 8 so Ill score myself at 6 The spreadsheet below gives an example of these descriptions:

Keep good company: 43 of Europes top 50 financial institutions have chosen Mercuri since 2000 Mercuri International 2009

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The SellWell Papers What Is Sales Competence? A Definition and Practical Suggestions

The next diagram shows definitions as they appear in a Mercuri Online Competence Builder:

The next step is to assess. Skills and values can be assessed by self-assessment, 360 or observation. Knowledge is best tested using online testing tools to save time and increase effectiveness (An attachment to The Online Competence Builder can do this). Once assessed the scores need to be entered and validated. This process should be kept as easy as possible. Again online works best. The data then needs to be analysed. What we are looking for are training priorities but also for disconnects between what the business sees as important and what individuals value. We are also looking for ranges: if everyone closely groups at similar levels you probably only need a single course, but if there is a big range you may need an advanced and core version; or possibly it will be best to use coaching for the outliers. Using charts is a very helpful way of illustrating and visualising trends and implications. The chart on the next page shows the competences that lie in the red, green and amber zones. The red zone indicates an urgent training need, the green zone shows the area where only maintenance is needed while the amber zone indicates subjects which may not urgent but which will need to be addressed if you are to maintain and grow competitive advantage.

Keep good company: 43 of Europes top 50 financial institutions have chosen Mercuri since 2000 Mercuri International 2009

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The SellWell Papers What Is Sales Competence? A Definition and Practical Suggestions
XYZ Co

The key thing is to use this information. Having it is not enough! This means creating development plans with your people, building a coaching competence and culture and ensuring that development happens: and it means measuring and monitoring improvement not least to identify return on Investment. Finally one has to ask what makes a truly excellent salesperson and I can only give my views based on work (particularly in the financial and professional services sector) over the past 20 years. I would start with values and attitudes and highlight my top 5: Resilience Energy An enquiring mind A pleasure in success (self and others) A delight in meeting people My top 5 skills would be: Understanding ( Listening and Questioning) Presenting Overcoming barriers (objections, price etc) Gaining commitment Self-organisation And my top 5 areas of knowledge would be: Know the customer Know the environment Know the competition Know your offer Know yourself

Keep good company: 43 of Europes top 50 financial institutions have chosen Mercuri since 2000 Mercuri International 2009

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The SellWell Papers What Is Sales Competence? A Definition and Practical Suggestions

Sales excellence is a huge subject and one whose study can never have an end. But a few things are certain. It is a subject which can be understood it is not a dark art or a black box. It is an area that can be improved and it is an area which repays study, innovation and commitment. I finish with the words of a client: The more you marry your purposes and objectives with Mercuris expertise and resources the better the result you will achieve. What do I mean by a good result? Well Id be disappointed if you didnt achieve at least a 10% increase in gross profit over 12 18 months. Why do I say this? Because I know Mercuri had a good hand in our success and I know that what they did continues to have a significant effect on sales and profit.

THE AUTHOR To contact Richard Higham to discuss any of the issues raised in this paper call him on +44 7712 588757 or e-mail richard-higham@mercuri.co.uk. Listen to Richards podcasts at http://mercurifinance.jellycast.com

Keep good company: 43 of Europes top 50 financial institutions have chosen Mercuri since 2000 Mercuri International 2009