| The "Purple Pill" | | | | doing the right things in the right place at the right |
| If you could give your sales force a "Purple Pill" | | | | time. It's critical that the progress of the tasks in |
| that would boost their effectiveness by 25% or | | | | target action plans is carefully monitored to avoid |
| more, would you do it? No prizes for guessing | | | | surprises. This is the equivalent of monitoring your |
| how a typical sales manager would answer this | | | | daily exercise before the effects start to show |
| question! Sales professionals are high-energy, | | | | up on the scale. Once the results are in, the horse |
| fast-thinking, opportunistic people. If they are | | | | is out of the barn and everything you do from |
| good, they often shoot from the hip and take | | | | that point on is reactive. If you proactively |
| calculated risks. They can be called mavericks and | | | | manage the activities, the expected results will |
| that's a good thing. It takes a little "maverick" in | | | | follow. |
| the blood to be effective in the world of | | | | Feedback |
| professional sales. Most are willing to try anything | | | | The feedback process is where the real magic of |
| that offers the potential for a fast boost, a quick | | | | the SEP comes in. A universal scorecard is |
| sale, increased value, or the strengthening of their | | | | essential for creating competitive energy within |
| relationship with their customer. Too often, | | | | your sales force and motivating them to focus on |
| however, this quick fix mentality reduces the | | | | strategic objectives. The scorecard should include |
| long-term focus and discipline of the sales force. | | | | a small number of well-designed metrics that are |
| "This month we're trying to promote a specific | | | | regularly updated. This information is extremely |
| product line, last month we launched our sales | | | | valuable for:o Identifying the best opportunities for |
| force automation software, next month we're | | | | performance improvemento Creating a level |
| bringing in that motivational speaker and the | | | | playing fieldo Driving continuous improvemento |
| month after that we'll be introducing a new SPIF | | | | Providing performance feedbacko Encouraging and |
| (special performance incentive formula) to move | | | | measuring cross functional sellingo Offering key |
| our dead and obsolete inventory." | | | | information for the review process |
| Unfortunately, there is no "Purple Pill" that you can | | | | Monthly territory review: the cornerstone of the |
| buy to drug your sales team. There is no "Purple | | | | SEP. |
| Pill" that will improve their effectiveness. There is | | | | The monthly review process is a critical |
| no "Purple Pill" that will increase profit, revenue, or | | | | component of the SEP that enables the sales |
| market share. However, there is a proven | | | | manager and his sales representative to discuss, |
| process that sustains continuous improvement | | | | plan and measure success. This is how a good |
| and will help you achieve every one of these | | | | manager enables his salesmen to capitalize on |
| objectives. It's actually a very simple | | | | their natural talents and abilities. The review |
| methodology. It's called a Sales Effectiveness | | | | process should include the following: |
| Process (SEP). A SEP is simply a structure for | | | | 1. Review of all target accounts |
| continuously improving sales force performance | | | | 2. Review of all cross functional selling |
| through focus, discipline and a process built on a | | | | opportunities, or lack of them |
| platform of accountability. | | | | 3. Review of specific territory objectives, including |
| But we already have a system. | | | | sales to plan and gross profit to plan, and assigned |
| A SEP is not a Customer Relationship | | | | account objectives |
| Management (CRM) system. CRM concentrates | | | | 4. Knowledge of products, customers and |
| on the effectiveness of interactions with | | | | customer organizations |
| customers, not the effectiveness of the sales | | | | 5. Ability to apply this market knowledge |
| force. It is not a Sales Force Automation (SFA) | | | | 6. Development of a favorable attitude as it |
| system. SFA deals with improving the efficiency | | | | pertains to that knowledge and those applied skills |
| of the sales force: performing administrative | | | | 7. Required course corrections |
| duties more efficiently. A SEP improves the | | | | This is not a session for reprimand or criticism. |
| effectiveness of the sales force; doing the right | | | | The review should be designed to achieve |
| things rather than just doing things right. | | | | maximum participation by the sales |
| Similarly, a SEP is not a canned sales skills training | | | | representative. Industry best practice has proven |
| course. Training is really only effective when the | | | | that such representative participation is one of the |
| students are eager to learn and the material is | | | | most effective methods of developing both an |
| immediately relevant. Offering an instruction or | | | | attitude for learning and a drive for successful |
| motivation course without having a structure that | | | | accomplishment of goals and objectives. |
| continuously encourages proper behavior is a | | | | Next, enthusiasm must be created. Enthusiasm is |
| waste of time. Training should therefore be | | | | one of the most important traits for a sales |
| considered a supplement to other initiatives rather | | | | manager because it is contagious. Remember, |
| than a sales management program. A SEP does | | | | sales representatives will learn very little if they |
| not replace sales training. | | | | are mentally falling asleep. |
| A Sales Effectiveness Process provides critical | | | | Finally, the sales representative must have |
| structure and motivation for using tools such as | | | | confidence in the program. He or she must trust |
| CRM, SFA and skills training. It also provides a | | | | the content of the program and truly believe that |
| measurement system to manage the activities | | | | it will provide personal benefits. |
| that are required to meet specific objectives. | | | | The review process is extremely critical to the |
| Without a focused sales management process, | | | | success of the SEP. It must be taken seriously |
| automation and training are wasted because their | | | | and performed at a standard of excellence that |
| power is undirected. However, the SEP can | | | | supports the intent and objectives of the overall |
| provide tremendous value on its own merits even | | | | program. It requires 100% compliance throughout |
| without the independent use of the other | | | | the company. |
| supporting tools. Used in conjunction with the SEP, | | | | The SEP gives more than it receives |
| these tools are much more powerful. | | | | The last thing you want to do is to burden your |
| Why is this any different? | | | | sales force with administrative tasks of limited |
| OK, so what is this thing called SEP? It is a set of | | | | value. Throw away the call reports. They aren't |
| best sales practices with a small amount of | | | | necessary in the SEP. Besides, they are the |
| automation thrown in. SEP is built on the concept | | | | closest a salesman will ever come to winning the |
| of "Managing activities and measuring results." | | | | Pulitzer Prize in journalism. How many times can a |
| Focus, process, discipline and accountability | | | | sales person report: "I called on Joe, everything is |
| become the engine that drives the process. | | | | great and we will get to bid on his next |
| It all starts with planning. | | | | requirement?" A well thought out action plan has |
| The key to planning is making sure that it deals | | | | more than 100 times the value of any call report. |
| with reality rather than wishful thinking. A quota | | | | The focus of the SEP, especially the monthly |
| from the boss may be called "the plan," but it has | | | | review, is on improvement through coaching and |
| no relation to how the salesperson will achieve it. | | | | counseling. It is not a human resources hammer |
| "I can set myself a goal of becoming 4 inches | | | | for "slap & point" management. It is simple |
| taller this year but it's probably not going to | | | | but powerful for the salesperson using it (by |
| happen. If, in contrast, I decide to lose 10 pounds | | | | comparison, most companies have way too many |
| and I can plan out the exact exercise regimen, a | | | | reports, measurements and programs that diffuse |
| specific diet and the activities necessary to get | | | | focus, dilute effort and may indicate that upper |
| there, I have a real plan and my chance of | | | | management is really not clear about the |
| success is much greater." | | | | company's strategic direction). |
| In a SEP, each field salesperson identifies a small | | | | Sales is a profession that requires professional |
| set of target accounts in his territory to receive | | | | salespeople |
| intensive sales focus. The number is limited | | | | Companies are in constant need of aggressive, |
| because true targeting must be backed up by | | | | creative and resourceful salespeople to have their |
| action planning, and that requires a lot of effort. | | | | products specified, accepted and used by |
| (For more information about targeting strategies, | | | | customers. Without informed and capable field |
| see "TLS - Tier Level Selling" by Rick Johnson, | | | | salespeople, no distributorship could hope to |
| available by e-mailing or by visiting | | | | compete in the marketplace today. |
| The salesperson sets numeric objectives for sales | | | | But how often do companies consider the fact |
| and gross margin dollars on each target customer, | | | | that good salespeople, the kind who can help a |
| along with detailed action plans to achieve them. | | | | company really grow, don't just happen to come |
| The goals could be for the next year or the next | | | | along by chance or fate? There is no such thing |
| quarter, and will be periodically adjusted to ensure | | | | as a "born salesperson," because selling ability is |
| that they are always realistic. This does not mean | | | | much more than a personality trait. |
| that a salesperson gets to change his quota. He is | | | | Granted, selling does require certain attributes in a |
| still expected to reach the same final numbers. | | | | person that some people are born with and some |
| The SEP provides a realistic platform that allows | | | | are not. Also, the person must be intelligent, able |
| him to adjust how he will get there by tweaking | | | | to grasp ideas and details easily, retain them and |
| his individual targets and goals, making course | | | | recall them for use whenever necessary in selling |
| corrections as necessary during the year to make | | | | situations. These factors, and many others |
| sure he will meet his objectives. The SEP helps | | | | relating to personal and emotional characteristics, |
| him identify and utilize any resources inside and | | | | are contributing elements in the makeup of the |
| outside the company that he needs to attain his | | | | professional salesperson. However, these |
| goals. | | | | attributes alone do not make a salesperson nor |
| Execution | | | | do they guarantee success. It takes more. |
| The SEP circumvents the most common mistake | | | | A salesperson must have adequate tools, |
| made in distribution today: trying to manage | | | | resources and leadership to maximize his |
| results. Instead, you must manage activities | | | | effectiveness. That is why the Sales |
| because it's the activities that produce results. | | | | Effectiveness Process is so vital. It is the program |
| Execution involves the day-to-day activities of the | | | | that provides the support and the resources to |
| salesperson. For most industries, this entails both | | | | give each and every salesperson the opportunity |
| planned, proactive tasks and opportunistic, | | | | to maximize his personal effectiveness. |
| reactive events that the salesperson uncovers by | | | | |