Many sales executives and managers often ask the wrong questions. They may ask “How many sales did you make today?” or judge a successful day simply on the number of successful sales. There is a commonly held belief that sales can be managed, but it can not. Here’s why-
Jeff Fisher, the coach of the Tennessee Titans, is not paid millions of dollars every year to manage wins. Wins and losses are both results; and results can’t be managed. Rather, it is his responsibility to manage the day-to-day activities of the players and coaches that will lead to the most victories for his team. By assisting his players meticulously implement those key practices, he helps his team win and earns his salary.
Just as Jeff Fisher can’t control the wins of the Tennessee Titans, a sales manager can’t manage the sales of his/her team. Sales, like lost sales, are results; and results can’t be managed. What he/she can manage, however, are the daily activities of his/her sales force that most often lead to sales. This is a core principle of revenue generation.
Whether in charge of a baseball team or a sales team, the first goal of any manager must be to understand the steps of the process and define success. For a sales manager, this means identifying all the stages of the sales process. Once this process is determined, he/she can then isolate those practices that consistently and predictably lead to successful sales. For a sales manager, there are two primary steps in discovering these unique critical success factors (CSFs). First, he/she must scrutinize the behavior of the top sellers on the team and determine what activities they have in common. Second, he/she should thoroughly test which of these practices has the greatest impact on the success of sales in the field.
These critical success factors vary greatly from company to company. They can be anything from the number of cold calls made to the number of proposals written or referrals obtained. For example, one company found that the most important commonality among its top performing salespeople was the quickness with which they identified prospects that were not interested in buying. The best salespeople averaged 9 minutes on unsuccessful calls, whereas the rest of the team took 20 minutes. These extra 11 minutes allowed them to contact more prospects every day, which eventually resulted in more sales. CSFs are unique to every company; what is important is that they are quantifiable, measurable, and adoptable by any member of the sales team.
Once these two or three critical success factors are determined, it is the responsibility of the sales manager to help his/her team employ implement behaviors. There are many ways to accomplish this step, though one of the simplest and most effective is through recognition. Salespeople love praise; a sales manager should use this to his/her advantage. He/She should think of creative incentives to give those team members who perform the identified CSFs the most often. Setting up games or holding weekly contests are examples of activities that can induce the practice of CSFs; even pats on the back or simple congratulations can be effective. Whatever practices are employed, one key factor is to give immediate feedback on these behaviors even before the results are in; this shows that these practices are important, in and of themselves. There are a few caveats, however. A manager should never publicly call attention to those employees struggling to adopt the new behaviors. This will only lead to dissatisfaction and a dysfunctional work environment. Likewise, monetary rewards should not be used to encourage these activities. Compensation should be reserved for results.
To reiterate, sales are results; and results can’t be managed. Only the critical success factors that most often lead to successful sales can be controlled. So sales managers, stop asking your sales team, “How many sales did you make today?” Instead start asking them, “What did you do today?” Measure successful days based on performance of CSFs, not on sales. Only when you are able to identify, implement, and encourage these critical success factors will you be on your way to creating a sales force capable of predictable and sustainable revenue generation.
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