| How would your sales teams respond to this | | | | We recommend that sales team leaders ask RMs |
| challenge? | | | | to develop plans focused on accounts, activities, |
| - Grow loans and DDA balances 10% (for the | | | | expected results, and resources needed, just as if |
| third year in a row) in a fiercely competitive | | | | they were managers of independent businesses: |
| market (never mind the recession), | | | | - Annual territory plans. |
| - Retain 100% of the customers designated as | | | | - Relationship plans for critical "must keep" or |
| "high value" when customer attrition has been | | | | "must expand" relationships. |
| averaging 17%, and | | | | - Personal development plans that are tied to the |
| - Maintain current sales team head count - no | | | | specific results an RM is asked to achieve. Once |
| additional resources. | | | | the RMs have developed their plans, managers |
| Many small business and commercial market sales | | | | and RMs should discuss the plans as if the RMs |
| teams face challenges like this. If they don't panic | | | | were independent businesses (franchisees) and |
| a little, they probably don't understand the goals. | | | | the sales team leaders were the franchisers. |
| And, since (typically) 85% of sales people have no | | | | Start the conversations with a discussion of goals |
| documented plan and 73% have no plan for their | | | | - the relationship managers' goals for themselves |
| top 5 accounts, serious panic and fresh resumes | | | | and their businesses, for their compensation, for |
| might be more likely. Whether you divide your | | | | their markets. Then, focus on their strategies to |
| sales teams into "finders and minders" or you ask | | | | reach their goals and the measures they will use |
| relationship managers to acquire new business | | | | to assess whether they're on track. This |
| while deepening existing loan and deposit | | | | information enables you, as a sales coach, to look |
| relationships, the key to reaching your sales and | | | | for disconnects between their goals and their |
| retention targets is a good guidance system that | | | | activity plans, giving you opportunities to catch |
| starts with picking the right targets and choosing | | | | potential problems early. |
| the right flight path. | | | | Mid-Flight Check Points |
| Choose the Right Targets | | | | After initial discussions of the annual plans, we |
| The most important element of any flight | | | | recommend a consistent pattern of team leader - |
| guidance system is the target. "My people are | | | | RM mid-flight check points that provide a forum |
| heatseekers," a sales manager once told me. | | | | for inspection, feedback, and resetting course: |
| "Once we set targets, nothing distracts them." So, | | | | - Weekly - focus on deals, activities, field |
| you have to make sure you're setting clear, | | | | observation, behaviors, and skills. |
| unambiguous targets. | | | | - Monthly and quarterly - focus on "managing the |
| First, sales team members must know what | | | | business", tracking progress against business plans |
| success looks like: What's the balance of account | | | | and making adjustments needed for upcoming |
| retention and account acquisition that makes the | | | | periods. |
| business model work? | | | | - Semi-Annually - a formal performance review. |
| Once the balance is set, targeting must include | | | | These coaching disciplines drive sales results and |
| four elements: | | | | ensure the appropriate balance between new |
| - Target market segments and ideal customer | | | | business development and account retention |
| profiles. | | | | activities. Sales managers' expectations, coupled |
| - Priority-tiering criteria for customers and | | | | with feedback and consequences, change sales |
| prospects. | | | | behaviors. In each weekly, monthly, and quarterly |
| - Value propositions for target segments stated in | | | | conversation, the manager and RM compare |
| words the target customers would use. | | | | "business planned performance" from the written |
| - A limited and specific customer base so that | | | | plans with "actual performance," identify problems, |
| relationship managers mine deeply. | | | | and reset plans for the period leading to the next |
| Establish Guidance Parameters | | | | meeting. |
| With targets established, Mission Control (sales | | | | Further, effective RMs and managers use the |
| managers) must establish guidance parameters - | | | | monthly and quarterly meetings to plan responses |
| clear expectations and standards that tell heat | | | | to "surprises" such as unexpected requests from |
| seekers what acceptable flight paths look like. The | | | | senior managers so that such requests doesn't |
| standards tell your sales people exactly what's | | | | cause instant circuit overload. |
| expected and when they're off track from an | | | | The Ultimate Benefit |
| activity point of view, as well as from a results | | | | Challenging sales goals should create a sense of |
| point of view. The relationship managers will | | | | excitement, a little panic, some nervousness. Just |
| incorporate these expectations into their planning. | | | | as we'd expect our customers to plan, sales team |
| The critical areas for standards or bench marks | | | | leaders should expect their RMs and themselves |
| include: | | | | to plan. Since time is so precious, the plans should |
| - Activity levels, | | | | focus on the most important leverage points |
| - Product mix, and | | | | -target customers, critical activities, resources |
| - Forecast accuracy. | | | | needed - to reach the sales goals. |
| Discuss Annual Flight Plans | | | | The regular conversations about the plan between |
| Once you've established targets and flight path | | | | sales team leaders and their direct reports are |
| limits, relationship managers and sales team | | | | the most important aspect of the planning |
| leaders must plan their flights precisely. The more | | | | process. The conversations must be frequent (at |
| audacious their goals, the more important the | | | | least monthly), consistent (there's no avoiding |
| planning... and it's the last activity in the world the | | | | them), and valuable to both parties. For |
| relationship managers want to do. | | | | relationship managers, in particular, the |
| "Forget about this," they say. "I need to be calling | | | | conversation time must ultimately lead to clear |
| on customers." The truth is: If they don't plan, | | | | priorities and commitment of resources that the |
| that responsibility falls on the team leaders' | | | | RM or sales team needs to make its numbers. |
| shoulders. Since sales team leaders simply cannot | | | | These conversations leave the direct reports |
| call all the plays and manage eight, 10, or 15 active | | | | feeling focused, energized, and well supported. |
| sales people, the whole team and the growth - | | | | In the words of one sales manager: "If you don't |
| retention strategy is put at risk. | | | | plan, and we don't talk, I can't help you. |