Sales Training

AgendaQuiz #4Training Sales Leadership/Ethics/CoachingDelegating work works, provided the one delegating works, too.

Robert Half

Credible Sales Training Development

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Interviewed key members or management to find out what changes are needed in performance of the sales force.Sent an anonymous questionnaire to customers and prospects asking:What do you expect of a salesperson in this industry?How do salespeople disappoint you?Which company in this industry does the best selling job?In what ways are its salespersons better?Sent a confidential questionnaire to each salesperson asking:What information do most of our salespersons need?What information do you want to learn better?What skills do most of our salespersons need to improve?STEPS IN PERFORMING A TRAINING ANALYSIS

Did field audits (making sales calls) with 20% of the sales force?Interviewed sales supervisors.Discussed and agreed on training priorities with management.Determined trainable topics from information gathered in Steps 1-5. STEPS IN PERFORMING A TRAINING ANALYSISWhat are some trainable topics ?

TRAINING TOPICS

Sales Training TopicsProduct or service knowledgeMarket/Industry orientation Company orientationSelling skillsTime and territory managementLegal and ethical issuesTechnologySpecialized topicsOn average, what do we give the most attention to .?

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ALLOCATING TRAINING TIME

AverageProduct knowledge 35%Market/Industry Information 15Company Orientation 10Selling Techniques 30Other topics 10

Total100%

These are all well and good.but there is still a HUGE chance for failure

Failure Causes and CuresDelivering fad vs. functionOff the shelf deliveryUnreasonable time constraintsLittle reinforcementSource: Heather Baldwin, Rethinking Sales Training, SellingPower.com, August 2006 online issue.

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Obstacles to Introducing TrainingTop management not dedicated to sales training

Lack of buy-in from frontline sales managers and salespeople

Salespeoples lack of understanding of what training is supposed to accomplish

Salespeoples lack of understanding regarding application of training to everyday tasksWhat type of methods can we use to train ?

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80% of a new field salespersons training should be focused on developing customer profiles, digging out account survey data, and building working relationships in the field. 15% of time can then be invested in learning about how your product or service is used by existing customers. The field is the place to gain product knowledge, not from an engineer or home office instructor.ON-THE-JOB SALES TRAINING

Only 5% of a new field salespersons time, then, should be spent on developing selling skills. Again, the place to do this is face-to-face with real customers: setting and testing real precall objectives asking for real opportunities to do business. Understanding what has to be done to build selling skills can be mastered in 15 minutes. Doing it takes years of actual, not simulated practice.ON-THE-JOB SALES TRAINING

Classroom TrainingAdvantagesStandard briefings inProduct knowledgeCompany policesCustomer and market characteristicsSelling skillsFormal training sessions save executive time Interaction among salespeople builds camaraderieDisadvantagesExpensiveTime-consumingToo much material = less retentionRole playing a popular technique

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EVALUATIONS

EVALUATING SALES TRAININGLevel of Evaluation:What toMeasure:How to Measure:When toMeasure:Reactions:

Are trainees satisfied?Perceptionsof trainingCourse evaluationInstructor evaluationSurveyInterviewAt the completion of trainingLearning:

Did the training have its intended effect?Knowledge of course contentExamsSelf-assessmentInterviewAt the completion of training and at points in the future

Level of Evaluation:What toMeasure:How to Measure:When toMeasure:Behavior:

Are the salespeople on the job using their knowledge and skills on the job?

SkillsJob performanceAbsenteeismTurnoverPerformance indicatorsObservationManagerial assessmentSelf-assessmentOver the first year after trainingEVALUATING SALES TRAINING

Level of Evaluation:What toMeasure:How to Measure:When toMeasure:Results:

What effect does training have on the company?

Job satisfactionCustomer satisfactionSalesProfitsROI

SurveyExperimentsManagerial assessmentA year after the trainingEVALUATING SALES TRAINING

Reactions:TraineesSupervisors

Learning:PerformancePre-vs. Post-Training

Behaviors:Supervisors AppraisalCustomer Appraisal

Results:Bottom Line*Percent of firms indicating they often use these evaluations to measure training results.EVALUATING TRAINING EFFECTIVENESS*

86%68%63%31%64%41%40%

Sales Training Evaluation Practices

MeasureCriteria TypeImportance Rank

Bottom-Line MeasuresResults1Trainee FeedbackReaction2Customer AppraisalBehavior3Supervisory AppraisalBehavior4Self-AppraisalBehavior5

Management is doing things right; leadership is doing the right things.

Peter F. DruckerSales Leadership

Managing versus Leading

Leading Versus ManagingManagersLeaders

Administer

InnovateMaintainDevelopControlInspireAsk How and WhenAsk What and WhyShort-term ViewLong-term ViewAccept the Status QuoChallenge the Status QuoDo Things RightDo the Right Things

Directing WorkManagerSolves problemsNegotiates Brings to consensusLeaderEmpowers peopleCheerleader

SalespersonsBehavior

SalespersonProfessional maturityNeedsGoalsRelationship with managerSales TeamActivitiesInteractionNormsSentimentsSituationTask structureTime pressureExternal system

Leadership Factors in Sales ManagementSales ManagerSKILLSEmpowermentIntuitionSelf-understandingVisionValue CongruencePOWERLegitimateRewardCoerciveReferentExpertSTYLESDirectingCoachingSupportingDelegating

Leadership SkillsIntuitionValueCongruenceSelf-understandingVisionEmpowermentLeadershipskills

HAVING A LITTLE CHATJennifer, I thought wed have a little chat. I dont get the pleasure of just talking with you very often. I guess we just tend to spend most of our time on our problems. Good people like you tend to be taken for granted. This is your sixth year with us, right? I wanted to let you know that it has been a pleasure working with you over that time. Incidentally, I was a little surprised to hear that some of your customer reports have been incomplete. Some of the clerks have even had to call some of your people in order to fill in the missing information.

CUSTOMER ABUSEOne day in the office, you overhear one of your salespeople being loudly abusive to a customer over the phone. Right after he slams the phone down, you mention: That was a pretty heated exchange. Sounds to me as if you lost it.Well, shes a pain. Shes always complaining about one thing or the other, none of which is important and often not true. On top of it all, shes rude.I thought you were pretty rough, telling her that if she doesnt like how her orders are handled, she can take her business elsewhere. She wont.

Two Sources of Sales Manager PowerPERSONALIZED POWERExpert PowerReferent PowerCharismatic Power

ORGANIZATIONAL POWERLegitimate PowerReward PowerCoercive Power

3New s/p in awe of s/mgr. know it all.This would be reflected in your statements to the S/P.

Types of Sales Manager PowerExpert PowerThe belief that a person has knowledge or skills in a given area. Referent PowerPerceived attractiveness of one party to another.Charismatic PowerInformal/personalized relationship derived power; buy in to person

Legitimate PowerThe designated right to the leader.Reward PowerAbility to reward the other person for a designated action.Coercive PowerBelief that one party can remove rewards and provide punishment to affect behavior.

3New s/p in awe of s/mgr. know it all.This would be reflected in your statements to the S/P.

Which power biases are in evidence in the following statements from a sales manager to a salesperson?If you come through with the Holiday Inn account, I guarantee you will be the next person promoted.

Dont ask me why -- just do it, please.

You have always been one of my favorites, and I am depending on you to hit it big in the new territory. As a personal favor, will you accept the transfer?

There are some logistics of the situation that will not allow me to accept your proposal. I will be glad to lay out the details if you wish.

If you dont improve your sales volume by the end of the year, your friends are going to be asking you how you liked being a sales rep. for us.

Leadership Styles

Transformational Vs. Transactional LeadershipAttributesTransactionalTransformationalSales managers source of powerRank, positionCharacter, competenceManager supervisionImportantLess importantCoaching emphasisEvaluation of resultsDevelopment of salesperson skillsSalesperson reactionComplianceCommitmentTime frameShort term resultsLonger term development and resultsEmphasis of rewardsPay, promotion, etc.Pride, self-esteem, etc.Where change occursSalesperson behaviorSalesperson attitudes, commitment, valuesWhere leadership foundSales managers behaviorsSalespersons heart

Supportive BehaviorLowHighHighSupportingSelling/CoachingTelling/DirectingDelegatingFour Leadership Styles

Directive Behavior

Leadership StylesDelegatingLow relationship/ low taskPass ResponsibilityWilling employees

SupportingHigh relationship/ low taskFacilitate decisionsAble but unwilling

Selling/Coaching High task/high relationshipExplain decisionsWilling but unable

Telling/DirectingHigh Task/Low relationshipProvide instructionClosely supervise

Jose GuerrillaYou are the boss with the title, rank, experience, and all theaccountability that comes with the job. You have the feeling that your salespeople are not following many of your orders. You wonder if you are becoming paranoid. Although you are the formal leader, an informal leader has emerged. Its Jose Guerrilla.Deliberately or not, he has become influential, even playing amore dominant role than you. Jose is one of your top salespeople, but is behaving like an underground rebel. The groups overall performance is quickly dropping. Is there a connection?You must correct the situation soon. You do not want to lose Jose, he is a valuable salesperson, besides you really like Jose. Ground rule #1, you have got to turn the situation around. Why did an informal leader emerge? How do you handle Jose? What can you do to prevent this from reoccurring?

DECISION OPTIONSJose GuerrillaGet the group together and remind them that you are the boss. Tell them like it or not the ignoring of your orders must and will stop.Appeals to the authoritarian manager but disregards the possibility that the problem is that your interpersonal communication skills are to blame.

Take Jose aside and tell him you appreciate the help in managing the group. Tell Jose that by pulling together, you can make the situation work out right for everyone.Jose may not admit to being the guerrilla, but if he does and accepts the bribe that you offer, the possibility that another member of the group will assume the role cannot be ruled out.

Let nature take its course. Sit back and let Jose make a big mistake that will cause him to lose favor with the group.Highly risky and puts your rear in the frying pan as well as Joses.

Take time to get to know Jose. When you know his career objectives you will probably find that he is not after your job. Use Jose to make your communications between yourself and the group more efficient.Jose could become a valuable link between you and your team and possibly help you define interpersonal problems and help you suggest possible solutions.

Talk to each member of the sales team separately. Let them know that you know what is going on and that it is tantamount to insubordination.This solution might work with an unschooled or unskilled labor force but not with the highly productive members of your sales team.

PROS & CONSJose Guerrilla

Are the Following Statements True or False?You should try to sell an idea to the "natural" leaders first. Thoroughly explaining the reasons for a change will invariably turn resistance into cooperation. Getting to know your people well is one of the best ways to obtain control over their resistance to change.It's usually better to hold a meeting to address the entire sales force about a change that will affect them.You should inform your sales force as far in advance as possible about changes that will affect them. When you propose a program or an idea, you are unlikely to encounter resistance except on the most important issues involved. Effectiveness in Selling New Ideas

Coaching

COACHINGSituationImportant PointsPrior to Sales CallWho is being called on?What happened last time?Objective of call?Objections may arise?How to handle objections?Who are key players?Developmental points last call?

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COACHINGSituationImportant PointsDuring the sales callLet salesperson control the call.Answer necessary questions briefly.After the sales callAsk for self-evaluations.Reinforce positive.Suggest effective responses.Keep records.

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Suggestions for Coaching SalespeopleInstead of criticizing, tell salespeople what you like about their performance.Help salespeople improve by giving them how to advice.Insist that salespeople evaluate themselves in order to develop their evaluative abilities regarding their own work habits and performance.Ask questions to ensure the salesperson is actively involved.

Make the most of resources that are available to you, such as special training materials and so on.An agreement between you and the salesperson should be arrived at regarding corrective actions to be taken.Keep records of specific standards of performance, including how performance will be measured and by what date. The salesperson should be shown these records when they are written to avoid any misunderstandings.

Suggestions for Coaching Salespeople

Defining Effectiveness

Buying CenterRelationshipsIndividual Team MembersEffectivenessIntra-Company Relationships

Factors Affecting Sales Manager EffectivenessCompanyStrategyMarket Environment

New Leader TrapsNot learning quicklyIsolationKnow-it-allKeeping existing teamTaking on too much

Captured by wrong peopleSuccessor syndrome

Sales Managers Rankings of the Causes of Plateauing Among Salespeople

OverallNo clear career path1Not managed adequately2Bored3Burned out4Economic needs met5Discouraged with company6Overlooked for promotion7Lack of ability8Avoid risk of management job9Reluctance to be transferred10

Change Orientation

CHANGE MANAGEMENT PROCESSAssessment - examination of the customer environment in which the company operates.Redesign - initiatives based on three interrelated tasks:Customer orientation - know customer buying process.Sales strategy - deployment of sales resources and buyer segmentation.Selling processes - determined by the segment of buyer.Measurement - determine the indicators of successful change.Sales Support Programs - programs to support and reward implementation of the change program.Implementation Strategies - pilot test programs.

How Change Oriented are You?Instructions: To find out to what degree you like change, use the following scale in responding to the following eighteen statements. There is no right or wrong answer. Rather, the intent is to help you explore your attitudes toward change.

SA= Strongly AgreeA = Agree? = UndecidedD = DisagreeSD = Strongly Disagree

1. I try new ideas and new approaches to problems.SA A ? D SD2. I take things or situations apart to find out how they work.SA A ? D SD3. I can be counted on by my friends to find a new use for existing methods.SA A ? D SD4. Among my friends, Im usually the first person to try out a new idea.SA A ? D SD5. I demonstrate originality.SA A ? D SD6. I like to work on a problem that has caused others great difficulty.SA A ? D SDHow Change Oriented are You? 5 4 3 2 1

7. I plan on developing contacts with experts in the field located in different companies or departments to help me find a job.SA A ? D SD8. I plan on budgeting my time and money for the pursuit of novel ideas.SA A ? D SD9. I make comments at meetings on new ways of doing things.SA A ? D SD10. If my friends were asked, they would say Im a innovative.SA A ? D SD11. I seldom stick to the rules or follow protocol.SA A ? D SD12. I discourage formal meetings to discuss things.SA A ? D SDHow Change Oriented are You? 5 4 3 2 1

13. I usually support a friends suggestion on new ways to do things.SA A ? D SD14. I probably will not turn down ambiguous job assignments.SA A ? D SD15. People who depart from the accepted organizational routine should not be punished.SA A ? D SD16. I hope to be known for the quantity of my work rather than the quality of my work when starting a new project.SA A ? D SD17. I must be able to find enough variety of experience on my job or I will leave it.SA A ? D SD18. I am going to leave a job that doesnt challenge me.SA A ? D SDHow Change Oriented are You? 5 4 3 2 1

Scoring:Give yourself the following points for each circled response.SA = 5 pointsA = 4 points? = 3 pointsD = 2 pointsSD = 1 point

Interpretation:Total your scores for all responses. The higher the score, the more willing you are to be innovative and welcome change. A score of 72 or greater is high; a score of 45 or less is low. Innovative people like to create change; non-innovators have a tendency to maintain status quo.How Change Oriented are You?

Hot ShotWhen asked the question, Are you a winner? Hot Shot answers, Well, how did you know? When dealing with this type of personality it is best to keep a cool head.Although she is a top salesperson, meeting or beating quotas, she is clearly a victim of tunnel vision. High productivity is a great asset to have in an employee, but she believes that this asset alone is reason for a managerial position.Hot Shot has heard an incorrect rumor that a district sales manager position is opening and believes that she deserves the job. She shows no tact in letting everyone know her feelings. History has shown that although she is an excellent salesperson, she is quite a loner. In your opinion she isnt ready for a job with the responsibilities of a district sales manager. You have a reputation of being fair and rewarding outstanding achievements.

There is no need to change your style now, but you have just received a letter from Hot Shot. She is very direct and states, I have worked long and hard for this company and have always been the top salesperson. I have no complaints at all about salary, or the commission and bonus plans. I want you to recognize that I feel I am totally ready for a sales managers job, the next one that opens up. It is important for me to tell you that if this company cannot use my talents, I have only one choice to make. What do you say?Hot Shot

DECISION OPTIONSHot ShotMake a sincere promise to Hot Shot that she will get the next manager's spot that opens.Hot Shot has every reason to take your promise seriously. A problem that arises if at the time a position opens you think another member of the sales team is better suited for the job.

To give Hot Shot more recognition you send her and her husband to the national sales convention with the company picking up the tab.Some will consider this industry bribery. Hot Shot could construe this to be an insult since she clearly stated that she was happy with the money and benefits she was already receiving.

Do not let the other salespeople think you give into ultimatums. You consider the letter as a letter of resignation and let Hot Shot go.A good sales manager is as hard to find if not harder to find than a good sales representative. If you allow Hot Shot to leave, one of your competitors will doubtless hire her immediately, leaving you with a stronger competitor and a weaker sales team.Make special managerial training available to the sales group. Tell Hot Shot that when an opening becomes available her excellent sales record along with the techniques learned in the course will place her among the top applicants. Probably the best choice. You explain to Hot Shot that the criterions used to choose the next sales manager will include: sales record, group interaction, and effort put forth in seminars, workshops, home study, and night courses.DECISION OPTIONSHot Shot

Termination SuggestionsEstablish a paper trail.Reasons for termination should be specifically spelled out.When possible, offer an attractive severance package and outplacement services.The firing session should be brief.When should you fire an employee, at the beginning or the end of the week?

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HonestyThe reputation of a thousand yearsis determined by the conduct of one hour.Japanese Proverb

There is no pillow as softas a clear conscience.Blanchard and Peale

When in doubt, tell the truth.It will confound your enemiesand astound your friends.Mark Twain

TO LOOK OR NOT TO LOOKAssume you are taking a make-up final exam in a separate room and you need an A to pass the course, otherwise you might have to go to summer school and delay graduation for three months. You are 99% certain that your professor will not check in on you while you are taking the test and you have your textbook and notes in your book bag, which is sitting next to you on the floor. You are stumped on a few questions (enough so that you probably wont get your A). If you looked in your notes and text, you would answer them correctly.

Do you look?

Assume the same situation, but that if you got your A on the test you would receive $5,000 (in addition to graduating).

Now would you lookin your notes? TO LOOK OR NOT TO LOOK

Former employees have alleged the company induced doctors to use Infuse and other spine products by sending them on lavish trips to resorts, paying them undeserved royalties, and handing out lucrative consulting contracts that required little work.(David Armstrong, Wall Street Journal, Oct. 3, 2008)

The companys ethics policy is supposed to keep vendors from using fancy gifts to win favor with CVS execs. But the rules dont apply to the companys annual charity golf tournament, where vendors pay big bucks for trips with key CVS executives,Greg Norman, left, talks with CVS President Tom Ryan, second from right, as others look on during the 6th Annual CVS Charity Classic in 2004.

Examples of Pressures Facing Sales ManagersIncentives to provide favorable earnings reportsHigh rewards for short term profits at expense of long-term growthGreedReputationOther?

Case Defining MomentYou are the regional sales manager of a technology-based firm.Stacy, one of your branch managers, wants to fire Kathy, a salesperson you hired last year, for underperformance (lack of territory development).While there are no formal quotas, the other salespeople have had double-digit revenue growth recently, while Kathy has experienced 8% growth.Kathy works 40 hour weeks, however, everyone else puts in about 50-60 hours per week. Kathy is devoted mother with full custody of her 5-year-old daughter and no child support or other assistance from her ex-husband.

Case Defining MomentStacy, a single woman in her 20s, believes that Kathys responsibilities at home have been keeping her from fully realizing her territorys potential.Because the other salespeople were unmarried and in their early 20s, the long hours had not raised work-family issues.Company executives believe in creating a family-friendly organization.

Case Defining MomentDo you allow Stacy to fire Kathy because everyone else has been working longer hours, experienced double-digit growth, and future competitive pressures on the company would be intensifying? Or do you say no because the company executives believe in creating a family-friendly organization and you now have a chance to do something tangible to support this culture?

WorkplaceCoworkersManagersEthical PoliciesCommunityEthical normsCulture

Profession

Family

ReligionLegal SystemLaw Punishment

SelfInfluences in Ethical Decision Making

Common Sales Ethics IssuesHiring and FiringHouse AccountsExpense AccountsGifts for BuyersBribesEntertainment

Is it a Gift or a Bribe?* Have you or your colleagues ever offered potential clients personal gifts valued at more than $100 in exchange for their business?

Is it a Gift or a Bribe?In your opinion, would a personal gift valued at $100 - $500 given to a potential client by a salesperson constitutes a bribe?