Sales Tip for August 2009 - Volume 3

Danny Wood is a nationally known trainer and speaker on sales and sales management and a Sandler Training affiliate.

Danny specializes in working with business owners, CEO’s and senior managers to maximize the return on what is often their most underutilized resource, the sales team.

Danny’s work has been noted for providing his clients with the ability to realize millions of dollars in additional business that would otherwise have never materialized or would have been lost to competitors.

His knowledge, experience, and tremendous respect for the Sales Professional led to his being selected by NJEntrepreneur.com to be their Sales Expert.


"I have finally gained great control over the sales process in my firm."
Marc Blumenthal - Principal
Sax, Macy, Fromm

"Our staff has new confidence and much less fear."
Richard Magid - President
Soundboard, LLC

"I can’t remember the last time I heard, Boss – Our prices are too high."
John Fernandez - Owner
Signmasters, Inc

"Our sales went up 30% since we started with Danny’s program."
Jim Margiotta – President
PBI-Dansensor America, Inc.
 


Are You Sure Your Sales Force Is Listening To You?

Sales Management Boot Camp
Sept 23, 2009

Strategic Planning or Strategic Failing


Many companies invest a significant amount of time and energy developing their strategic plans. The identified initiatives are then given to the appropriate departments with the expectation that the departments will take the necessary actions to achieve them. The initiatives given to the sales manager, who must then convert them into specific quantifiable sales goals, may include:

  • Expand sales into new territories

  • Increase market share in existing territories

  • Increase sales volume and/or profitability of one or more product lines

  • Expand the product mix in a particular customer base

  • Introduce new product lines

  • Improve the profitability of one or more customer categories

Once specific goals have been developed, the sales manager assigns them to the sales team with the expectation that the team will take the required actions to achieve those goals. Sometimes, the goals are accepted with little protest; other times, there is significant grumbling. Nonetheless, the team goes to work.

At the quarterly review, what does the sales manager discover? The sales team is on track with their overall sales goal, but a closer examination reveals that they are off track with some of the specific goals defined by the corporate initiatives. The team is given the requisite pep talk (or perhaps reprimand) and a reminder of the specific goals, and then sent back to work.

At the next quarterly review, what has changed? Not much. The team is still on track with their overall number, but the numbers tied to the individual goals are still askew. Why?

When the specific goals were initially given to the sales team, the team members were expected to transform those goals into workable sales and territory plans they would then execute. But, there was little, if any, time dedicated to that task. Consequently, the salespeople hit the street continuing to do what they have always done, while making perhaps a token effort to identify and develop opportunities related to the various goals.

For the most part, salespeople are not concerned with or committed to corporate initiatives in which they had no input. Their real commitment is to generating sales and earning commission - end of story. And, if there is not a specific plan to which they are being held accountable, the salespeople will take the path of least resistance even if that path doesn't help them achieve all of the individual corporate goals. In their mind, a sale is a sale, regardless of whether it is for an existing product or service to an existing customer or a new product or service to a new customer in a new territory. If a salesperson falls short of his "new business" quota, for instance, but is above quota with existing customers, in his mind, he is still "hitting his numbers."

If you are a sales manager responsible for translating corporate initiatives into specific department goals, it is imperative that you invest time developing a detailed plan of accomplishment to accompany the quotas you assign. Most importantly, make it a point to involve your sales team in the planning stage. After all, they will be responsible for making the plan work. You can't have all the answers and knowledge regarding markets, customers, and products. Involving your people in the planning process can provide you with additional perspective and insight. And, more significantly, their participation in the development of the plan gives them ownership in it which increases their buy-in and commitment to it.

© Sandler Systems, Inc.  All rights reserved.
 

Missed Any Sales Tips? Visit my Archive

Danny Wood Enterprises, LLC
301 Route 17 North, Suite 800
Rutherford, NJ 07070
Ph: (201) 842-0055
Fx:
(201) 939-0977

Dwood@Sandler.com
http://Dwood.Sandler.com

Interested in email like this for your company?   Email created by: www.1WebPlus.com