Data-Driven Hiring – Using Science to Build a Winning Sales Team

Post on 23-Aug-2014

354 views 2 download

Tags:

description

Perhaps the single greatest key to sales success is hiring the right sales people. Get it right and you can accelerate sales. Get it wrong and you waste a lot of time and resources, and miss closing important deals.

Transcript of Data-Driven Hiring – Using Science to Build a Winning Sales Team

Identify Optimal Salespeople

2

Before we get started

• #SalesAcceleration

• Q&A Console

• Resources

• Poll

• Webinar recording and slides

3

Who is Brian Wixom?

• 20 yrs. teaching & coaching baseball• Scout for Atlanta Braves• New InsideSales.com sales executive• 500% quota

4

How to identify baseball talent?

5

How to identify baseball talent?

Compared to Avg. Human• Eyes 12% faster• Ears 10% faster• Attention & Quickness

1.5X

6

How to identify baseball talent?

“If baseball-club owners take the hint from the Ruth experiments, they can organize a clinic, submit candidates to the comprehensive tests undergone by Ruth, and discover whether or not other Ruths exist.”

-Hugh S. Fullerton, Columbia University 1921

7

Fundamental Problem in Sales

Sales Leadership Challenges by Most Votes

8

Why is hiring a problem in Sales?

2X Turnover 2X Salary

Opportunity Cost in Lost Sales

Compared to other professions

$7,500

Average Recruiting & Onboarding Costs

9

Actual Sales

Missed Sales $205K

Why lost sales?

10

Avg. Annual Turnover 26% (Sources: SHRM & Journal of Personal Selling & Sales Management)

Avg. Rep Count 30Avg. Replacement Hires 7Avg. Replacement Cost $215,000

Total Hiring Costs

$1,505,000!!!

What does this mean for my organization?

11

How do sales organizations solve this problem today?

Experience EducationGPA

• Ivy League school • 10+ years experience • 4.0 GPA• Fortune 500

• Endlessly resilient• Hungry to learn• Understands people• Desires to be the best

TalentSkills & Experience

Who are your best salespeople?

13

How should sales organizations solve this problem?

Talent

14

How many reps have what it takes?

“7/10 sales reps lack the threshold talents to be consistently successful in their jobs.“

- Gallup

15

Why isn’t HR analyzing talent?

81% 77%

58% 56%

14%

19% 23%42% 44%

86%

Finance Operations Sales Marketing HR

Departments Using Analytics

Yes

No

**Deloitte, 2014

16

HR Capability Gap

-40 -35 -30 -25 -20 -15 -10 -5 0

Diversity & Inclusion

Workforce Capability

Performance Management

HR Technology

Talent Acquisition

Talent & HR Analytics

Leadership

**Deloitte, 2014

17

62% 30% 8%

Weak Adequate Excellent

Ability to Execute

Why isn’t HR analyzing talent?

**Deloitte, 2014

Behavior-Prediction is Notoriously Difficult.

Cognitive Processes are often not Rational

People use memorable experiences to infer future outcomes

Memorable experiences are generally negative and few

“Negative and few” is a perilous basis for generalization

19

How do you credibly predict sales-performance?

?

20

By identifying relevant talents.

?

Ambition

ResilienceEmpathy

Openness

21

What is ambition and why is it important in sales?

22

What is resilience and why is it important in sales?

23

What is empathy and why is it important in sales?

24

What is openness and why is it important in sales?

25

What is Sales Indicator?

• Assessment tool• Easy to use analytics• Customized models

(both to company and sales role)

26

What do InsideSales.com’s company scores look like?

125.0

130.0

135.0

140.0

145.0

150.0

155.0

160.0

Sales Marketing Business Dev Client Services Admin / HR Technology Executive

27

How are scores calculated?

1. Assess current sales team2. Define quotas

Administrator

Neuralytics• Identify optimal

scores

Sales Indicator

Continually Calibrated Model

®

28

Why is there an optimal score?

29

How does this work?

Mike (Sales Hiring Manager)

30

Whom to hire?

VS

Cory Michelle

3.8 GPABusiness Degree3 Years Experience

3.79 GPABusiness Degree2.5 Years Experience

31

Which football team won?

Overall: 46 Wins* Overall: 58 Wins

Last decade: 9 Wins* Last decade: 1 Win

32

A deeper dive with Sales Indicator

Cory MichelleAMBITION AMBITION

RESILIENCE RESILIENCE

EMPATHY EMPATHY

OPENNESS OPENNESS

FINAL FINAL

73

0 100

0 100

0 100

0 100

0 100

0 100

0 100

0 100

98

50 86

74 94

97 80

0 1000 100

68 90

33

Predictive Performance

• Predicts Quota Attainment

Emailed Report

34

Remember Brian Wixom?

• 5th highest Sales Indicator score in company

35

Special Offer

1) Profiles + Survey Volume

2) Implementation $4,000

Thank you