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The Single Most Important Skill Every Sales Manager Must Master

June 28th, 2010 lsalz No comments

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The Single Most Important Skill Every Sales Manager Must Master

There is one skill that every sales manager must master… Some think it’s coaching. Others think it’s driving performance. Those are important, but there’s one even more important. Listen to this episode of the Sales Management Minute to learn the single most important sales management skill and the steps to take to master it.
 

Lee B. Salz is a sales management strategist specializing in helping companies build scalable, high-performance sales organizations through hiring the right sales people, on-boarding them effectively and efficiently, and aligning their sales activities with business objectives using his sales architecture® methodology. He is the President of Sales Architects, the C.E.O. of Business Expert Webinars and author of the award-winning book Soar Despite Your Dodo Sales Manager. Lee is a featured columnist with SalesforceXP Magazine and the host of the Sales Management Minute. Coming soon is Lee’s new book The Sales Marriage…How to Hire and On-Board the Right Sales People. He is a results-driven sales management consultant and a passionate, dynamic speaker. Lee can be reached at lsalz@SalesArchitects.net or 763.416.4321.

The 4 Things Procurement Is Looking For – And It’s Not Price

June 17th, 2010 lsalz No comments

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The 4 Things Procurement Is Looking For – And It’s Not Price

Sales people often think that Procurement Agents only care about price. Not true! There are four things they are analyzing. Listen to this episode of the Sales Management Minute to learn how to align your sales strategy with the evaluation process of Procurement Agents.

Does Multi-Tasking Make Sales Managers LESS Effective?

June 1st, 2010 lsalz No comments

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As a sales manager, you are pulled in a million different directions and expected to get it all done. While multi-tasking is a critical sales management skill, it could also be making you less effective. Listen to this Sales Management Minute episode to learn how to avoid the multi-tasking peril.

Click here to listen.

The 6 Expectations Clients Have of Partners

May 26th, 2010 lsalz No comments

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There are six expectations that clients have of partners. In these episodes of The Sales Management Minute, each of the six is presented so you can stop being seen as a vendor…the biggest sales person insult.

6 Expectations Clients Have of Partners – part 1: Knowledgeable

6 Expectations Clients Have of Partners – part 2: Consultative

6 Expectations Clients Have of Partners – part 3: Analytical

6 Expectations Clients Have of Partners – part 4: Accountable

6 Expectations Clients Have of Partners – part 5: Suggestive

6 Expectations Clients Have of Partners – part 6: Genuine 

Lee B. Salz is a sales management strategist who specializes in helping companies build scalable, high-performance sales organizations through hiring the right sales people, on-boarding them effectively and efficiently, and aligning their sales activity with business objectives using his sales architecture® methodology. He is the President of Sales Architects, the C.E.O. of Business Expert Webinars and author of “Soar Despite Your Dodo Sales Manager.” Lee is a columnist and member of the Editorial Advisory Board of Sales and Marketing Management Magazine. He is a results-driven sales management consultant and a passionate, dynamic speaker. Lee can be reached at lsalz@SalesArchitects.net or 763.416.4321.

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How Sales People WANT To Be Managed… And How They SHOULD Be Managed

March 15th, 2010 lsalz No comments

Sales people often say they want to be managed as if they were operating their own business. And, that’s exactly how they should be managed. Yet, there is a disconnect between how sales people perceive running a business works…and real-life. A sales business plan can help bridge this gap.

 

During my work with clients, I’m often asked to interview their sales people as part of my sales team due diligence. One of the questions that I always ask is their desired management style from the company. The response I hear most frequently? “I want to be treated as if I were running my own business.” On the surface, this should be music to the executive team’s ears. The truth of the matter is that it is actually cause for alarm.

When sales people say they want to be treated as business operators, they mean it. Yet, their perception of running a business is not consistent with reality. They are saying they want complete autonomy to do whatever they want to do, whenever they want to do it. The French expression laissez-faire describes what they really desire…hands-off management. And that’s not how successful businesses operate.

Anyone who has ever operated a business knows that running a business does not include the right to follow the path of the wind. If you operate a publicly-traded company, you have responsibility to the Chairman, the Board of Directors, and the shareholders. If you run a privately-held company, you have accountability to the bank or partners. In both instances, you also have responsibility to the employees. This doesn’t quite sound like laissez faire and running a successful business are compatible.

That said, you should treat your sales people as business operators…real business operators. After all, your company is funding their business. Your sales people have an obligation to present their plan to make that business profitable. In essence, you are the primary investor in their business.

The first step toward treating your sales people as business operators is to ask them to provide you with a business plan that shows how they will make their business successful. The plan should not be the second-coming of War and Peace, but should be thorough-enough to give the investors comfort in the plans for success.

If you provide the sales team with nothing more than the instruction to write a business plan, they will waste a lot of time trying to figure out what you want…and will still miss the mark. The best approach is to create a sales business plan template using the questions the investors have about their business strategy. The overall plan should “map back” to the revenue target you have set for the sales people. If you are asking them to generate a million dollars in revenue, the plans should clearly show how they going to achieve that target.

The plan should have five core components: 

Accounts. The accounts section is the place in the plan to list clients/prospects and their expected revenue contribution toward the million dollar target. If the sales person’s target includes both existing accounts and new ones, this section of the plan forecasts the expected performance of their portfolio and documents the new accounts that lead them to the target revenue number.
 
Prospecting. The prospecting section shows their plan to build a sales pipeline. If there are no prospects, there are no sales…so understanding their strategy to reach prospects is a key for the investors to sleep at night. This area should highlight both their pipeline development strategy and tactics.

Sales Metrics. The sales metrics section shows how their activities correspond to results (i.e., revenue). This is a statistical presentation of the sales activities that they will perform that leads them to achieve the million dollar goal. This should show their success formula that works backwards from the goal and corresponds to sales activities (i.e., how many meetings will lead to a proposal, how many proposals will lead to a sale, etc.).

Skill Development. This is area is often ignored by sales people, but should be important to the investor group. After all, if there is no commitment to continuous self-improvement, how will the business continue to grow? The plan should show what they will do to improve their skills and industry knowledge…with a time commitment.

Business Needs. The final section of the sales business plan asks what the sales people need from the company to succeed. This area of the plan provides each business operator with an opportunity to share his needs of their manager and the company. It also tells what would prevent him from achieving the million dollar goal. As an investor, you want to know about his potential roadblocks so they can be addressed.

Once the plan is created, a conference call/meeting is scheduled with the investor group (the key business stakeholders) and each sales person. During the call, the sales person presents the sales business plan and the investor group challenges it to make sure it is sound. On a quarterly basis, the sales people present an update to the plan to ensure progress is being made toward the annual million dollar goal.

Not sure how to develop your plan, send me an email for my sales business plan template. Keep in mind that you will need to adjust the template to match your business objectives.

 
Lee B. Salz is a sales management strategist who specializes in helping companies build scalable, high-performance sales organizations through hiring the right sales people, on-boarding them effectively and efficiently, and aligning their sales activities with business objectives using his sales architecture® methodology. He is the President of Sales Architects, the C.E.O. of Business Expert Webinars and author of “Soar Despite Your Dodo Sales Manager.” Lee is a columnist and member of the Editorial Advisory Board of Sales and Marketing Management and SalesforceXP magazines. He is a results-driven sales management consultant and a passionate, dynamic speaker. Lee can be reached at lsalz@SalesArchitects.net or 763.416.4321.

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If Price Really Matters

January 24th, 2010 lsalz No comments

Price has always been a main reason that keeps sales people from selling. At least, that’s what sales people say. Here is evidence to the contrary.

 

Sales people have always had a laundry list of excuses that keep them from being able to sell today. Yet, is there any excuse more infamous than the price one. “If we just lowered our price, I could sell a ton of this stuff.” Oh really? People primarily buy based on price? Well, if that’s true consider this.

 

If price really matters…

Everyone would buy generic drugs

No one would have cable or satellite television

The seat every fan fights for would be the last row in the stadium

Satellite radio wouldn’t have over 15 million subscribers

No one would own a Bose product

You would get your drinking water from a faucet

A Yugo would be in your driveway

Nordstroms would be empty

Everyone would shave with a single blade razor, not the Gillette Fusion
 
Starbuck’s wouldn’t have poured a single cup of coffee

The only food in your kitchen would be supermarket brand

The toilet paper in your bathroom would be single-ply sandpaper

And… You wouldn’t have any clients!

 

After all, someone bought from your company. Not just one person, lots of people have bought from your company. Remember this the next time you let yourself argue that you can’t sell because of price. It isn’t the price… It’s your ability to demonstrate value to prospects. And, people will pay for value. You’ve just seen evidence that they do, even in your own backyard.

 

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Lee B. Salz is a sales management strategist who specializes in helping companies build scalable, high-performance sales organizations through hiring the right sales people, on-boarding them effectively and efficiently, and aligning their sales activity with business objectives using his sales architecture® methodology. He is the President of Sales Architects, the C.E.O. of Business Expert Webinars and author of Soar Despite Your Dodo Sales Manager.Lee is a member of the Editorial Advisory Board and featured columnist with Sales and Marketing Management Magazine. Look for Lee’s new book in 2010 titled, “The Sales Marriage” where he shares the secrets to hiring and on-boarding the right sales people. He is a results-driven sales management consultant and a passionate, dynamic speaker. Lee can be reached at lsalz@SalesArchitects.net or 763.416.4321.

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Can’t Sell Today

December 29th, 2009 lsalz No comments

A little chuckle for the holidays…

Can’t sell in January. Between the terrible weather and everyone coming back from vacation, how can you expect someone to focus on buying now? I’ll pound the pavement next month.

Can’t sell in February. More snow and more vacation. Way to go, Washington and Lincoln; thanks for President’s Day! It’s such a short month. No one can make a decision in such a short month. Next month is going to be better.

Can’t sell in March. No one is going to make a decision on this with more holidays around the corner. Good time to shop for summer clothes. I’ll just borrow money because I’ll make huge commissions later to pay it back.

Can’t sell in April. Who wants to focus on buying with Spring in the air? And hey, my kid’s birthday is this month. I’m sure my prospects are working on their taxes anyway. Next month will be better for sure.

Can’t sell in May. Great weather in May, and I hear that my prospect may be thinking about being acquired. No problem. I’ll look for better ones next month. There’s tons of opportunity out there.

Can’t sell in June. Kids are getting out of school. Wow! I almost forgot Flag Day. No one buys in this weather. Besides, July is a better month for sales anyway.

Can’t sell in July. Great time of year to be at the beach and enjoying the outdoors. I think all of my contacts are on vacation…together! Nope, can’t sell this month.

Can’t sell in August. Too hot! Besides, I’m taking my vacation. They probably are taking theirs too. No selling to be done now. Next month, for sure.

Can’t sell in September. Between the three-day Labor Day weekend and a new fiscal year kicking in, no one is buying anything. I’m feeling good about next month.

Can’t sell in October. Columbus’ birthday; what should I get him this year? I almost forgot Halloween! I’m going to focus on selling hard over the next two months. I’ll finish the year strong.

Can’t sell in November. Thanksgiving, ya know. Very short month. I don’t think any of my contacts have their budget yet. Can’t buy without a budget. Man, December is going to rock!

Can’t sell in December. Everyone is on vacation in December. I know I am! Who can focus on buying with the end of the year so close? What should I do for Festivus this year?

Oh well, maybe next year will be better for sales. Luckily, no one is buying anything from anyone this year.

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Lee B. Salz is a sales management strategist who specializes in helping companies build scalable, high-performance sales organizations through hiring the right sales people, on-boarding them effectively and efficiently, and aligning their sales activity with business objectives using his sales architecture® methodology. He is the President of Sales Architects, the C.E.O. of Business Expert Webinars and author of “Soar Despite Your Dodo Sales Manager.” Lee is a columnist and member of the Editorial Advisory Board of Sales and Marketing Management Magazine. Look for Lee’s new book in 2010 titled, “The Sales Marriage” where he shares the secrets to identifying, hiring, and on-boarding the right sales people. He is a results-driven sales management consultant and a passionate, dynamic speaker. Lee can be reached at lsalz@SalesArchitects.net or 763.416.4321.

The Business Executive’s Dilemma: Should I Promote My Top Sales Person to Sales Manager?

December 8th, 2009 lsalz No comments

Early Greek mythology tells tales of sailors lured by Sirens. Their sweet music mesmerized the sailors and led them to believe that the illusion was reality. Ultimately, those sailors who blindly followed the tunes crashed their ships on the rocks and their boats sank.

Sirens lure business executives and small business owners too. The song that the Sirens sing has one line… “Promote my top sales person, put six people underneath them, and generate six times the sales.” And, like the sailors, many business executives and their companies have been led into harm’s way.

A promotion? The first issue with promoting your top sales person into sales management is that it’s not a promotion at all. The promotion perception is the first way the Sirens get you. Sales management is not a job elevation, it’s a job change. If you consider this move as a promotion, you probably send a congratulatory email and hold a luncheon for the new sales manager. A nice handshake is offered and the new manager is sent to achieve grandeur. This approach delights the Sirens and your ship is sunk!

If you handle this as a job change, your approach is completely different. Since this is a new job, you provide training and mentoring as well as monitor their performance. As the manager of the new sales manager, your role is to help them successfully assimilate into their new role.

Top Seller = Top Sales Manager? Before we go any further, we need to take a step back. The second way the Sirens trick you is they lead you to believe all great sales people can become great sales managers. Some certainly do. And, some pretty good sales people become rock star managers. And some great sales people fail miserably at sales management.

Before moving your top sales person into the sales management ranks, consider the ramifications of this move. You are taking your rainmaker out of the sales game where they’ve generated millions of dollars for your company. While your hope is that your theory of “disciple selling” (placing six people underneath the new manager and getting six times the sales) becomes proven, that is rarely the case. If it was so easy to clone a rainmaker, every company would do it. Quite frankly, the “disciple selling” dream is flawed. Again, you’ve been duped by the Sirens. The sole reason to place someone in the role of sales manager is that you feel that they have the potential to succeed in that capacity.

What does all of this tell you? You need a process and methodology to evaluate sales management candidates…just like you evaluate sales candidates. And, even though the rainmaker got on your radar screen because they blew out their quota, their sales management candidacy should be handled the same way you would if you were considering an external sales management candidate. Don’t skip any steps in the evaluation process!

Profile the Role. This evaluation starts with the development of your profile of the ideal sales manager for your company. Think about what it takes to succeed in the role and document those elements as part of your profile. Once you’ve prepared your list, identify each element as either required or desired.

With your profile developed, the next step is to develop a screening process that allows you to compare and contrast the candidate with the profile. It is critical during this process that you ascertain why this successful seller aspires for management and ensure that you set clear and accurate expectations of a day in the life as a sales manager in your company. In addition to interviews, you may want to consider tools to help identify a synergistic match like personality and proficiency assessments.

If your rainmaker succeeds in the evaluation process, you’ve found your sales manager. If not, don’t lose the revenue! Keep this seller selling!

Positioning Your New Sales Manager to Succeed. With your new sales manager hired, there are four keys to making the venture successful.

1. Support. The first is dealing with the sales team. Yesterday, she was a peer. Today, she is the manager. The new manager needs your help in developing managerial respect. The reaction to the new manager will be mixed.  Some will be fully supportive, but there will also be some on the team who are jealous and attempt to undermine her efforts. The key message for you to deliver to your new sales manager is that she has your unwavering support.

2. Mentoring.  Your new manager needs a resource to guide them through the neophyte status…a mentor. Don’t just look within the organization for a mentor candidate. Many sales management consultants mentor and develop new sales managers. The role of the mentor is to bridge the managerial knowledge, skills, and experience gap.

3. Training. Chances are that your new sales manager has never been taught how to hire a sales person, have a difficult conversation with an employee, or develop a sales compensation plan. These are all skills that can be taught. If you aren’t will to provide the new sales manager with skills training, don’t put them in the role. They will fail!

4. Expectation Setting. Your new sales manager should be provided with a scorecard that tells them how they are going to be measured. In most companies, sales managers are measured on revenue…but that is only one component of the scorecard. Based on the role and responsibilities of the sales manager, the scorecard could include metrics like profitability, cost of sales, turnover, sales cycle, forecast accuracy, etc.

Sales is one of the few professions where moving into management isn’t always the best path for the sales person or the company. Make sure the person you put in this critical role is the right sales manager for your company. After all, while this person may not be directly generating sales, they are the one responsible for the company achieving its revenue goals. Don’t let the Sirens lure your business into trouble. Develop the systems to help you make the best decisions.

Not sure how to interview sales people for a sales management job, send me an email at lsalz@salesarchitects.net for my 29 favorite questions when interviewing new sales manager candidates.

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Lee B. Salz is a sales management strategist who specializes in helping companies build scalable, high-performance sales organizations through hiring the right sales people, on-boarding them effectively and efficiently, and aligning their sales activity with business objectives using his sales architecture® methodology. He is the President of Sales Architects, the C.E.O. of Business Expert Webinars and author of “Soar Despite Your Dodo Sales Manager.” Lee is a member of the Editorial Advisory Board and featured columnist with Sales and Marketing Management Magazine. Look for Lee’s new book in 2010 titled, “The Sales Marriage” where he shares the secrets to hiring and on-boarding the right sales people. Lee is also the host of “The Sales Management Minute” where he shares key insight into sales management issues. He is a results-driven sales management consultant and a passionate, dynamic speaker. Lee can be reached at lsalz@SalesArchitects.net or 763.416.4321.

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The Sales Management Minute Launches!

November 18th, 2009 lsalz No comments

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These are 60 second podcasts focused on sales management issues… Below are links to some of the shows.

Enjoy these? Grab the RSS-feed and receive new shows as they are posted.

LinkedIn Is a Waste Of a Sales Person’s Time!

November 6th, 2009 lsalz 1 comment

I continue to be amazed at the number of sales people who feel that LinkedIn doesn’t provide any value to them. Yet, these same people spend countless hours on Facebook telling people what they ate for breakfast, are leaving for work, or entering YouTube links. How is that a benefit to your bank account?

My feelings about LinkedIn are not theoretical and I’m not a paid advertiser of it. I am a beneficiary of this social media/marketing platform. I’ve personally used LinkedIn to build two businesses with this website as the primary lead source. Just last week, I was speaking to a skeptical sales team about LinkedIn and the opportunity it provides. Two minutes before I was going to demonstrate how to use this medium, I received an email from a president of a company interested in hiring me for sales management consulting who had found me through an article I published on LinkedIn. Rather than start the LinkedIn discussion with a demo of the technology, I put the email up on the screen and the skepticism evaporated.

LinkedIn provides sales people with a unique lead generation opportunity. However, the operative word is unique which means that the approach needs to be geared toward this medium. Imagine having prospects coming to you rather than you chasing them. It can be done if you have the right social media strategy when using this tool. This is marketing’s job, right? Wrong! It is a co-shared responsibility. They have the global responsibility for positioning your company, but there is a role for sales people to play as well.

For starters, you need to take the approach that you are going to position yourself as a thought leader in your industry…an expert. Remember, as a sales person, you know more about your solutions than your prospective clients regardless of their title. You track industry movement and trends…much more than the users of your products. This approach sets you on your mission of providing value with the goal of positioning yourself as an expert in your space. This will lead people to want to be associated with (or linked) to you.

The first step is to review your profile page on LinkedIn. What message is conveyed to someone who is reviewing your profile? This is where many sales people get stuck. They try to use their LinkedIn profile for multiple purposes…network with friends (save that for Facebook), leave the door open for a job search, and business development. That approach doesn’t work as there is no clear message as to why you are on LinkedIn or what you seek to accomplish.

If your plan is to use LinkedIn for lead generation or business development, your approach should be linear. Your profile and recommendations should clearly position your role in your industry. Since you are not using LinkedIn, in this instance, for a job search, there is no reason to list jobs that don’t reinforce your expertise. Provide only the information that helps paint the picture for the impression you want profile visitors to have of you.

When writing your bio, don’t shoot for length…aim for focus. A one-paragraph bio that positions you in your industry as an expert is the goal. In this instance, people don’t care about your personal information. If you aren’t sure your bio conveys the desired message, have your peers read it and ask what message they derive from it.

Testimonials are very important. Your company probably has plenty of references for its product, service, or technology offering. However, your LinkedIn testimonials should be about you. What value do your clients receive by working with you? How do you support their account? Invite those whom you have earned the right to request a testimonial about their experience in working with you. The goal is not to get them to write that you are a sweetheart, but rather the results they received from working with you.

Remember, your profile serves as the foundation for everything else you will do on LinkedIn. All roads lead back to this page.

With your profile developed, the next step is to join groups. Again, the goal is to be linear. As a free member on LinkedIn, you can join up to 50 groups. It may seem like a lot, but you’ll be surprised how quickly you use them. Using the search function at the top of the page on LinkedIn, search for groups using keywords that will show where your target clients are. If you are in employment screening, you may want to search on security, security professionals, small business, human resources, human resources professionals, etc.

The search will return a list of groups shown in order of number of members with the largest groups shown first. Join the largest ones, right? Wrong! How can you be visible with 50,000 members? You’ll get lost. Ideally, join groups that have between 1,000 and 5,000 members. At that size, the group has enough mass to justify your time investment, but is not so large that you can’t make yourself visible.

Once you are accepted into the group, there are a number of things you can do. Remember, your mission is to provide value first, not seeking to get buyers. Review the active discussions and participate in those where you can provide key insight. Resist the temptation to hawk your product here. Value first! (A suggestion…compose your responses using Word so you can spell/grammar check what you have written. LinkedIn does not have that functionality.)

You can also create discussions in groups. Don’t create discussions that directly map back to the sale of your product. The group members will blast you for that. Use this opportunity to get key insight into the challenges that your buyers are experiencing. If you sell for a risk mitigation firm, you could create a discussion around the H1N1 pandemic and how organizations are handling this issue.

When people participate in discussions, their photo and link to their profile page are provided next to their comments. (Now, you see why your profile page is so important.) When readers are intrigued by comments, they research the author. When you are engaged in online discussions in a group, you can invite the member into your LinkedIn network. (Don’t use the LinkedIn invite template…craft your own message.)

Once the members are in your network, you have a number of ways you can communicate with them. Remember, focus on value in every interaction. Want to learn more secrets to using LinkedIn for lead generation, send me an email requesting my LinkedIn tipsheet.

Note. Before embarking on this journey, be sure to review your company’s social media policy and/or check with your manager for approval.

 

Lee B. Salz is a sales management strategist who specializes in helping companies build scalable, high-performance sales organizations through hiring the right sales people, on-boarding them effectively and efficiently, and aligning their sales activity with business objectives using his sales architecture® methodology. He is the President of Sales Architects, the C.E.O. of Business Expert Webinars and author of Soar Despite Your Dodo Sales Manager.Lee is a member of the Editorial Advisory Board and featured columnist with Sales and Marketing Management Magazine. Look for Lee’s new book in 2010 titled, “The Sales Marriage” where he shares the secrets to hiring and on-boarding the right sales people. He is a results-driven sales management consultant and a passionate, dynamic speaker. Lee can be reached at lsalz@SalesArchitects.net or 763.416.4321.