COACHING MEASURED: THE VITAL SALES PERFORMANCE METRIC. Aliquam&ultrices& SALES LEADERS ARE MISSING 50% OF CRITICAL PERFORMANCE DATA
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- Sharon Jackson
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1 Aeneanvelitnulla,posuerein,variusmollis,pulvinareu,urna.In adipiscingquamatturpis.aliquamtristique.etiamegetjustoa maurisaliquetfringilla. Coaching&Library& An&EcSell&Institute&White&Paper& COACHING MEASURED: THE VITAL SALES PERFORMANCE METRIC Aliquam&ultrices& SALES LEADERS ARE MISSING 50% OF CRITICAL PERFORMANCE DATA A"Note"to"Our"Readers:&The&following&resource&was&provided&to&the&EcSell&Institute&with&express& permission&for&use&in&our&resource&library&and/or&the&sales&executive&newsletter.&&ecsell's&research&and& Publications&department&has&reviewed&this&piece,&and&though&it&may&make&reference&to&specific& products&from&our&partner,&we&felt&the&substance&of&the&piece&was&worthy&of&publication.&&the&ecsell& Aenean&eget&urna& Institute&does¬&publicly&promote&specific&products&from&companies,&but&values&the&relationship&and& EcSell&Institute& science&our&partners&bring&to&our&members&as&well&as&their&own&customers.&&ecsell's&concern&is&providing& 3201&South&33 our&members&with&information,&backed&by&science&or&best&practice,&which&can&be&utilized&to&drive& rd &Street,&Ste&E& Lincoln,&NE&68506& greater&sales&productivity.& & &
2 COACHING MEASURED: THE VITAL SALES PERFORMANCE METRIC SALES LEADERS ARE MISSING 50% OF CRITICAL PERFORMANCE DATA Coachingnotmeasuredisasoftskill.Coachingobjectivelymeasuredbecomesavitalsales performancemetric. Imagineplayingmultiplegamesofsolitaire withrealplayingcards notonyourtablet.you getclose,butafterseveralgamesyouhavenotyetwonandarenowgettingfrustrated.one moregameiswhatyoucommitanditstartsoffwell;youimmediatelygetthreeacesuptop, threekingsarealsoturnedover,followedbyqueens,jacksand10s.yousaytoyourself, finally, butasyouagaingothroughthedeckyouonlyplaceasinglecarduptop,andwhen thedeckisrunthroughforthethirdtimeyourealizethegameisover.frustrated,yougather thecardswhenyouglancedowntothefloorandnoticeasinglecardunderyourseat. Really? Pleaseletitbeajokerorsomething, butwhenyoureachdownandturnitoveryouseeit thekingofdiamonds.theentiretimeyouhadonlybeenplayingwith51cards Successinsolitaireistheabilitytogetcardstothetop,preferablyallofthem.Inthegamesyou justplayed,thoughthenumberofcardsplaceduptopvariedeachgame,youwerenevergoing towin,itwasimpossiblewithapartialdeck.but,hereisthekicker whileyouwereplaying youdidn tknowacardwasmissing,soyounaivelycontinuedwiththehopeofachieving somethingthatwasunattainableduetonothavingtheproperresources. The Challenge Asimilarlackofresourcesisaliveandwellinthesalesworld,andwewitnessthisdailyas individualsandteamsdotheirbesttogrowrevenue.researchandtechnologycontinueto challengeourperceptionofacceptedandappliedbestpractice,butinspiteofitall,inthesales worldtheproducersaretheonlyonesprovidedallthecards.thesalesleaders,keepingtrueto form,arehandedanincompletedeckwithcardsunknowinglystrewnonthefloor. Thisarticleisnotabouthowtocoach(whichiswhatyoumightexpectfromEcSell);itisabout closingtheinformationgapthatpreventssalesdepartmentsfrommaximizingtheperformance ofsalesteam.thisgapcouldbeclosedbyall,butwillonlybeclosedbyafew,andnotjust thosewhobelievesalesleadersareawaytogrow,butonlybythosewhobelievethatsales leadersaretheprimarywaytogrow. Sidenote:Wewillgenerallyusetheword coach or salescoach todescribewhatistypically knownasasalesmanager.ourresearchshowsthattheduties,behaviorsandtoolsneededto besuccessfularemorereflectiveofthoseutilizedbyahighxperformingathleticcoach,sowe believetheword coach moreaccuratelydescribestheposition.forsimplicitysake,iwilluse theterm executivesalesleader asanypositiontowhomasalescoachreports.
3 Ourresearchshowsthatover90%ofexecutivesalesleadersbelievethattheamountsoldbya groupofsalespeopleisadirectreflectionofhowwelltheyarecoachedxthebetterthecoach, themoregetssold.thechallengeisthathistoricallyalltheresearch,data,studies,etc.have beendoneonsalespeople,andnotuntilthe 90swasitmadeclearwithresearch(thankyou Gallup)towhatdegreeamanagerimpactstheperformanceofanyteaminbusiness.However, insales,itstillwasn tmadeclearwhatspecificcoachingactivitiesandbehaviorscorrelated closestto motivationtosell. And,ifnobodyhadidentifiedthehighpayXoffcoachingactivities andeffectivebehaviors,theycertainlycouldn tbemeasuredforquantityorquality. Sales Leaders are Short on Data (no joke) Thismaybehardtocomprehendgiventhevolumeofreportsreviewedbyanysalesleaderona givenday,butmuchismissing.prudentdecisionsinbusinessareusuallymadeasaresultof havingdata,anddataisonlyproducedasaresultofinputs.whenvisitingwithsalesleaders, weaskthemwhatdatatheyregularlyreview,andinevitablywewillhearitemssuchas: Pipelinemetrics Forecasts PerformanceXtoXgoalbyperson/division/company/productline CRMdashboards Profitabilityreports Today,theonlyinputsandresultingdataavailabletosalesdepartments,inclusiveoftheabove, arebasedonwhatsalespeopledo.the gap mentionedearlierinthispieceisthis:nobody hasprovidedtheopportunityforcoachinginputs,sothereisnoresultingdataonhowasales coachisimpactingperformance.tobringevengreaterurgencytothisistoknowthatecsell s research,alongwiththatofotherreputableorganizations,showsthatapproximately70%of existingsalescoaches,eventhosewho vehad coachingtraining, arenotexecutingthe necessaryhighpayxoffactivitieswiththerightfrequencyorqualitythatwillleadateamtosell more.orconsiderthis:oddsarethat50%ofyoursalescoachingteamispreventingyoursales repsfromsellingmore.so,withoutobjectivelymeasuringcoachingperformance,youare simplyguessingastotheeffectivenessofyourentiresalesleadershipteam.guessingiswhat leadstoahighturnoverrateinourprofession(19monthswastheaveragetenureofasales leaderin2013.)youcan twinthegamewithouthavingallthecardsinyourdeck CoachingisnolongernewandweseethatmostFortune500companieshavesomesortof coachingprograminplacefortheirsalesmanagementteams.however,theprogramsare woefullyshortonsubstanceandresultingmeasurements.don tmisunderstand,somethingis betterthannothing,butourorganizationhasyettoseeasalescoachingprogramthatfully provideswhatasalesmanagerneedstomaximizetheperformanceofasalesteam. Askyourselfthefollowingquestions: 1. DoesourcoachingprogramteachourmanagersthehighpayXoffactivitiesandtoolsto executeeachday,week,monthoryear(hint therearefiveofthem)?
4 2. Doesourcoachingprogramtrainourmanagershowoftentoexecutetheactivitiesand withwhom? 3. Doesourcoachingprogramobjectivelymeasurecoachingquality,coachingactivityand overallcoachingeffectiveness? Iwillgooutonalimbhereandsayitislikely no foreveryanswer.thereasonifeel comfortablesayingthisisbecausewehaveneverseenalltheaboveinplace ever.everysales departmentthatstatesthattheyhaveacoachingprogramprovideslittlemorethana methodologyforeffectivefeedback,specificallyhowtoconductapostsalescallreviewora1:1 coachingsession.and,whilethoseareimportantactivities,nobodyismeasuringiftheyare beingdone,howwelltheyarebeingdoneandwithwhomtheyarebeingdone.saidanother way,nobodyismeasuringcoachinginputsandoutcomes;and,colleagues,measurementof inputsandoutputsismanagement101.coachingnotmeasuredisasoftskill,coaching measuredbecomesavitalsalesperformancemetric. Don t Play Solitaire with 51 Cards Therearefourquadrantsthatshouldbefilledwithdatathateverysalescoachandexecutive salesleadershouldhaveattheirdisposal,withoutwhicheffectivedecisionsastohowtosell morecannotbemade.thefourquadrantsare: Whatasalesrepdoes(quantityofwork) Howwellasalesrepdoesit(qualityofwork) Whatasalescoachdoes(quantityofwork) Howwellasalescoachdoesit(qualityofwork) EarlierImadethepointthatbothfrontlinesalescoachesaswellasexecutiveleaderstypically haveaccesstodatathatresultsfromwhatsalespeopledo;however,iwouldthenarguethey don thaveafirmgrasponhowwelltheydoit.mostcompanieshavedevicesandtools(such asacrm)topopulatetheupperleftquadrant,somehavegoodreviewstructuresandperhaps measurecustomerexperiencethatcanpopulatethelowerleftquadrant,butnobodyhasthe
5 toolstopopulatetherighttwoquadrants.theresultisthatsalesleadersareonlysupplied with,atbest,50%oftheinformationtheyneedtogrowsales. Thinkaboutit,whatcoachingmetricsdoesanyonereview?Hereareafewthatshouldbe reviewedbytheexecutivesalesleaderorthroughselfxanalysisbythesalescoach: 1:1coachingmeetingscompleted Numberofjointsalescallsworkedwithreps Coach sroleinthejointcall(observer,participant,lead) Salesstageinwhichcoachhelpedtherep(needsanalysis,presentation,closing,etc.) Percentofcoachingtimewithtop20%ofreps,versusmiddle60%,versusbottom20% Coachingscore(anobjectivemeasurementofcoachingacumen) Whatwehavefoundisalmosteveryreasonateamhitsgoalordoesnothitgoalisbecauseof thesalescoach,notthesalesrep.and,ifthisisthecase,whatisthecoachdoingornotdoing thatcausestheteamtoachieveorunderxperform?becausenobodymeasures,nobodyknows. Salesdepartmentsarefamousforprovidingsalespeopleallthesuccessdisciplines, measurementsandmethodologies,butuntilthesesamestructuresarebroughttothesales coachingrole,salesgrowthwillbeminimized. How? 1. DefineexpectationsaroundthehighpayXoffcoachingactivities howoftenandwith whom 2. Providecoachesthetoolsandtrainonhowtousethemeffectively 3. Useatrackingmethodsoinputsandoutcomescanbegathered(suchasEcSell s CoachingCloud) Asmentionedearlier,thepurposeofthispieceisnottosharehowtocoach,buttohelp readersunderstandthatiftheyhadmoredataontheircoaches,theywouldknowmoreabout howtodevelopthemintohighxperformancecoachesasopposedtohavingthembehavelike compliancemanagers (whichishowmanysalesrepsdefinetheirrespectivecoach.)logically then,theonlywaytocreateandsustainateamofhighxperformingsalespeopleistoequip themwithahighxperformingcoach. The Close Thesolitaireanalogyappliestoeverysalesdepartmentwe veseen,andwe veseenmany. Regardlessofcompanysize,managementtenure,technology,learninganddevelopment teams,saleseffectivenessdepartments,strengthofleadership,etc.,theyhaveallhadacard(or more)undertheirchair.theywereallmissingcriticaldatathatlimitedtheirabilitytomaximize sales.so,beforeyouplayanothergame,stopandlookunderyourchair.don tmakeanother move,certainlynostrategicmoves,withoutfirstholdingallthecards.
6 ABOUT THE AUTHOR BILL ECKSTROM President Bill Eckstrom is the President and founder of the EcSell Institute. EcSell helps sales departments create world class sales coaching teams, for the research shows-- nothing impacts performance more than coaching. EcSell Institute provides strategies for continuous improvement by showing our members how to apply the latest research, technology, and best practices in leadership and sales coaching, and by involving them in a network of the top sales management minds. Why? Because we know that improving a sales manager s ability to coach and lead has the biggest impact on sales team results. EcSell Institute 3201 South 33rd St., Suite E Lincoln, NE info@ecsellinstitute.com
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