Declining Sales Performance: Have You Had Enough Yet?
I’m on the road all this week. (In fact, I’m writing this on a plane from Minneapolis to Kansas City.) There’s not enough time to for me to write a long, thoughtful blog post. But I don’t have to. I’ve written enough of them here on this subject already—two year’s worth—just in case you’re interested.
I’ve been saying again and again that sales performance is continuing to decline. CSO Insights just published their 2009 Sales Performance Optimization report and the results validate my position. I’m not happy I was right. Not at all.
It’s not that I’m so smart. Anyone who thought about it could see it coming. You take what in many companies is an organization short of strategy, discipline, process, measurement, leadership and productivity, give them insufficient and ineffective marketing and other support, layer in a significant recession, and there you have it.
It doesn’t have to be this way. I can prove that. I just came from attending the annual sales awards dinner held by a major client who simply blew away their 2009 targets, recession and all. We’ve got lots of other examples of companies that wouldn’t stand for the situation they were in, took appropriate action, and never looked back.
OK, I can’t help it. I have to give you my opinion on the biggest single thing that can be done to fix this situation:
MEMO
To: CEOs, COOs, GMs, COOs, Boards of Directors, Investors, Presidents, and Business Owners
From: Dave Stein, CEO, ES Research Group, Inc.
Date: February 3, 2010
Subject: Declining Sales Performance
Demand that your sales organization be run like the business it should be. Now.
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Sales reps are driven by control, credit and compensation. About 20% of the individual sales reps on most sales forces are real hunters. Of these, one is poison and has spoiled the water for real change. Here are two things to do that could help this quarter: Stack rank the sales force on the basis of REAL PERFORMANCE (not supposed pipeline) achieved in 2009. Move the bottom 20% up or out. This one action will increase performance from bottom to top. I know, you think you are already doing this – do me a favor and check again. Next, take the middle (60%) and micro-manage their pipeline. Let them know that your evaluation of them will be based on movement toward closure on currently documented pipeline – not new pipeline that “looks good” after a disappointing quarter. In most complex selling situation there will be no more than 20 – 30 accounts per rep to review. This is not a Monday morning group hug activity. This is a “what are you going to sell this sales cycle and you are going to get shot if you under OR over exceed the number by a substantial margin (take sand bagging out of the equation because it kills your company.
Thanks for your thoughts and I hope this helps someone.
Not bad for being on a plane Dave
…..But seriously, your words are spot on. There are definitive reasons why some businesses still excelled last year despite the odds…..Good stuff Dave.
Thanks, Dan. Would you clarify which one is “poison?”
[...] It’s disappointing, but not surprising. My friend, Dave Stein wrote an interesting perspective, Declining Sales Performance: Have You Had Enough Yet? [...]