Talent Management
A Case StudyThe names have been blinded to protect the previously underperforming
Website Email Phone
www.salesbenchmarkindex.com [email protected] 1-888-556-7338
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What is Talent Management?• Identifying, hiring, onboarding and developing A player sales
reps & managersWhat does a Talent Management program do?• Provides the ability to evaluate current talent, new candidates
and gaps in sales rep & manager onboarding What does it mean to implement Talent Management?• Hire only A player candidates and support the shortest ramp
to full sales productivity
Overview
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Three key client business objectives of Talent Management:
1. Hire- “A” players2. Get the reps productive quickly3. Identify potential and develop current
performers
Objectives
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ACME Corp. Business Challenge
Initial Sales Performance Benchmark reveals Talent Management related issuesNo Divisions examined were hitting their number
Division A Division B
Division C
DivisionD
Division E
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Acme Talent Management Results
Overall talent shift in the sales force moved from 63% to 91% for “A” and “B” PlayersTopgrading approach identified and hired top-performing talentNew OnBoarding program brought new reps to full productivity much sooner than previouslyACME Corp. is approaching World-Class status for quota attainment
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Success Equals?
50% Talent +
50% Performance Conditions
Success Equals…
50% Talent+
50% Performance Conditions…
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So…. What if you had ALL “A” Players?
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Improving the performance of:
1 “B” Player to “A” or
1 “C” Player to “B”
= Increased sales 1.5M to 3M widgets/year
@ $3 / widget = $4.5M to $9M/year per representative
Business Impact of improving rep performance
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Pote
ntial
Performance
C+Underperformer
Use PIP to capture ProblemRedeploy or Dismiss
B+Diamond in the Rough
Emerging Leader Development Plan & Coach
A+Star Power
Invest heavily in developmentReward & Recognize
CRed Flag
If <90 days, PIPIf >90 days, Dismiss
BCompetent
Solid Performer12-18 months to move up/down
ASuperior Performer
Very strong in current roleGive stretch assignments
C-
Career Liability (Yours)
Dismiss Immediately
B-
Fading PerformerNot worth further investment
Move to ‘C’ status and issue PIP
A-Valuable Contributor
Strong fundamental but not willing/able to advance
Ensure adequate reward
Low High
Low
High
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Identify Current Talent Pool
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Talent Assessment Results
37% “C” players & 53% “B” players on total scoreSeveral transfersLittle to no onboarding program19% “C” players for competencies & 35% on accountabilitiesSignificant gap in core selling skills (41% “C” players)Opportunity to raise “B” players & some “C” playersProviding sales tools, onboarding, coaching and structured approach
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Assess Individual Competencies and Identify Skills Gaps
Area Individual Competency DefinitionRating (1 - 6)
Benchmark (1 - 6)
Gap
1. Sales ApproachHandling different sales scenarios; setting agenda; following complex sales process guidance; presenting company value propositions
4 4.5 (0.5)
2. Pricing MethodsDemonstrating grasp of those methodologies relevant to the business; applying different pricing techniques to proposed solutions; ensuring sales reps are following corporate pricing guidance; frequency of requesting pricing exceptions
3 3.9 (0.9)
3. Opportunity Management
Managing pipeline; inspecting Opportunities; accelerating campaigns; demonstrating deal ingenuity; providing deal-based ideas
3 4.4 (1.4)
4. Objection HandlingHandling competitive, price, resource, and risk challenges to proposed solutions; presenting responses to objections; gaining prospect/client acceptance to proposed solutions
4 4.8 (0.8)
5. NegotiatingUses give-get frameworks; representing company interests; leaving clients, partners, and prospects with feelings about how a deal was obtained; Convincing others of the merits of a position; achieving win-win
4 4.6 (0.6)
6. Customer FocusDevelops uniquely strong customer loyalty; low-to-no customer attrition; key account executive contacts will go to bat for him/her; generates repeat business more than peers; his patch has high customer satisfaction/NPS scores relative to peers
3 4.2 (1.2)
7. Convert Strategy to Tactics
Developing tactics to implement internal corporate sales strategy; linking customer strategic goals into solution; embeding customer strategic goals into customized sales collateral
4 4.2 (0.2)
8. Managing ProcessesAdopting company policies; utilizing CRM system; adhering to sales process; understanding sales methodologies; defining handoffs; measuring process output; providing specific governance and guidance around process adherence
4 4.3 (0.3)
3.6 4.4 (0.7)
Selling Skills
Competency Scoring compared to World-Class BenchmarkGap to “A” Player status
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Competency group results
Analysis reveals significant gaps
across group
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Recommendations
Coach & develop Sales Managers utilizing the IDPsFormalize training; avoid the ad hoc training Reinforcement is the key to improvementAddress areas of weakness
Implement a sale manager training & onboarding program (certification)Develop a Sales Manager developmental program as part of the ACME succession planning (certification)Incorporate specific ramp to full productivity metrics (fail fast)Raising B players to A’s
Upgrade or turn over B and C playersDevelop of virtual bench of candidates
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Implement Topgrading Talent Review process
#1: Review Competency Definitions
#2: Ask Scenario-based
Questions
#3: Compare Response
against A/B/C Player
Characteristics and rate it for
each Competency
#4: Identify which
Competency items have
largest gaps and select
them for the IDP
#5: Enter in the IDP the specific “Evidence” of the deficiency
#6: Select the Career Action Planning (CAP) item that best matches the
Sales Manager
#7: Insert the CAP item into the IDP and
add Measurement and Timeframe requirements
#8: Review IDP with employee
Provide an Individual Development Plan (IDP) with development
recommendations
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Movement among ranks
Percentage of ‘A’ Players increased from 10% to 28%Percentage of ‘B’ Players increased from 53% to 63%Percentage of ‘C’ Players dropped from 37% to 9%..... And many of those people turned over…
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SBI implemented Topgrading methodology to hire the right people
Cost of a mis-hire is between 5-9X total annual compensation
Click here for our Cost of Mis-hire calculator
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• Ramp time to full productivity = the time it takes for a new employee to retire quota at a rate that exceeds 100% of their goal (usually measured in months)
…and developed a solid onboarding Plan…
Improvement equals hitting quota sooner
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Learn More
Contact us to hear the rest of the story...
Email - [email protected]
Phone - 1-888-556-7338
Web: http://www.salesbenchmarkindex.com
Click here to access our Talent Management blog posts.
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