8 December 2009

By Eric Larson, Senior Consultant, Twist Marketing

Few companies become immensely successful with an average sales organization.

Consider Xerox in the 60s through early 70s. With patents protecting their newer technology and few if any true competitors, many sales people became consistent overachievers by simply answering the phone when it rang. Xerox was such a market juggernaut that it took Federal Trade Commission involvement to even slow it down.

Most businesses do not have the luxury of waiting for the phone to ring. They are in a daily battle to drive revenue using whatever means they can muster.

After 25 years of selling and managing sales teams, I have come to the conclusion that sales is one of the most misunderstood and poorly documented business functions. One reason for this is quite simple: every business is different and dynamic. Markets also change. Effective sales teams must constantly challenge their habits in order to adapt to these business and market changes, and they must test new sales methods in order to grow revenues. It also means that although most sales courses and books might provide some benefit to your company, the key is identifying which sales issues are most directly affecting your unique inability to grow your business revenues.

Another problem that businesses face is the lack of any industry certification or standard measurement of sales capability or performance, which makes it difficult to identify the best job candidates. If you hire an engineer, you look for an iron ring. If you’re looking for a supplier, you might need ISO 14000. When you’re looking for a sales professional, you look for “a smile and a shoeshine,” as Willy Loman put it in Arthur Miller’s Death of a Salesman.

Bad hires are just one reason the world is full of bad sales people who do things that cost the companies they work for a great deal of money. In companies with a president or board of directors that lack a sufficient sales background, the problems can start at the top and work their way down. Particularly in start-ups, executives need to understand basic sales practices so they can manage that function as their company grows. Without this understanding, leaders of established companies may not realize that some sales-related problems are actually caused by a problem elsewhere in the organization. Here, a qualified third-party observer can make recommendations that are not constrained by years of legacy practices, issues or company politics.

Business owners and leaders I talk to frequently express frustration with their sales organizations’ performance, and all of them feel that what they need is better sales leadership, but they can’t afford it. In reality, they can’t not afford it. Sales is a business practice. For it to work optimally, you need the best design possible given your unique sales challenges. But it is important to understand that the best sales people have been mentored by the best sales managers. It’s somewhat like a trade. The best tradespeople become that way by working with the best journeyman, reinforced by specific classroom training.

It is also imperative that management understand what the sales function should deliver beyond sales. The president of any business should be able to answer these questions:

• What will my revenue be in 30/60/90 days?
• Why would a customer buy from my company rather than one of my competitors?
• Who (or what) is my “Sales Prevention Department”?
• What is the one thing I need to change to increase sales?

A good sales team can and should provide the answers to these questions. A great sales team understands how collecting this information benefits them, and allows them to be great achievers.

The Twist: Building a great sales team starts with executives who understand sales practices. Next comes implementing sales practices that are best suited to your unique sales challenges. With sales practices in place, you need strong sales managers who can hire the right sales people and provide the mentorship they need to reach their potential—and your revenue goals.