Bob is a Great Sales Rep – Too Bad His Title is Sales Manager!

Can you relate to this common sales organization predicament? Six months ago you promoted “Bob,” an outstanding sales rep who has great skills and the respect of the entire sales team to be a sales manager. Today, Bob is busier than ever – out on the road with the other reps, helping to close their deals. The new sales rep hired to replace Bob is struggling, generating less revenue than Bob made in the role. The rest of the sales team is producing about the same numbers they were six months ago making the net result of the promotion a loss because no one is replacing the revenue Bob brought in as an individual contributor.

This is a tale as old as time – or at least as old as cold calling. Businesses have the best of intentions in promoting a sales star to manage a sales team. They want to reward performance, retain a loyal and talented team member and leverage the demonstrated skills of one of their best business developers to improve the overall skills and performance of the sales organization. The problem is that outstanding sales skills and business development talents do not transform into great management skills after a promotion. Not without a focus on developing those management skills.

Without guidance, the Bobs of the world will typically only do what they do best: sell. They rush from account to account, helping to close deals because this is what they know how to do. While some sales reps may glean lessons by seeing the work of these sales-oriented managers firsthand, many learn to get a deal close to complete and then call in Bob to finish the job, thus halting their own sales development. Frustration (the kind that can erode morale) is common as sales reps feel Bob “just takes things over.” In addition, Bob is rewarded for being the closer allowing him to be the hero.

Can your business avoid this pattern and still cultivate internal talent to successfully lead sales teams? Yes is often the answer if businesses are willing to take the following steps to identify, develop and support new sales managers.

Watch for a Team Mentality – The best sales managers get great satisfaction from the success of others. When looking to promote from within your sales ranks watch for signs of team orientation. Does the sales rep have a record of willingly partnering with others for the greater good of the business? Does the candidate support colleagues in their efforts and openly share tips and opportunities? Is she/he good at managing the administrative side of sales operations? Use these questions and careful observation to identify candidates who will be able to adjust from measuring job success based on the revenue they bring in to measuring success based on how much they boost the performance of each team member.

Commit to Development – The skills it takes to manage a group, motivate people and coach are vastly different than the skills it takes to sell. Managers must be taught how to “coach” to develop the skills of their team members rather than “direct” or simply tell their reps what to do. They also need to encourage performance by setting clear expectations, holding people accountable, the value and skill of delegation, how to manage conflict, and how to prioritize their time in a very different way.. Rather than hoping for a sales manager to master these skills through sheer determination or the painful process of trial and error, invest in a more formal development process for your sales leaders. Also, keep in mind we aren’t talking about something that happens in a two-day class, but a combination of education and on the job activities that create strong, routine habits.

Define Expectations Early & Measure Them Regularly – If you are like most companies, you probably do not sit new sales managers down and tell them exactly what you expect. The first thing every new sales manager should hear is, “Your job is not to do it yourself, but rather to coach and improve performance so your team improves.” They need to understand that the new measure of success is not just an overall revenue number but the marked improvement of each member of the sales team. All sales people-from reps to managers to CEOs are motivated by performance goals. Tap into that desire to succeed by clearly outlining the new measures of success, giving your new manager the right goals to aspire to and measuring and rewarding accomplishments.

Would adding these management development and evaluation best practices to the way you currently operate be a serious departure from how your business works today? If so, it’s time to look at how you have been preparing and supporting sales managers. They are likely struggling and now is your chance to help them truly become leaders while making a big, lasting impact on the sales team AND your overall results.

s- Gary Braun and Mike Braun have sold, managed, led direct and indirect channels and held Senior Executive Sales Positions in multiple organizations. We have had the opportunity to work with hundreds of companies on a variety of initiatives and monitored the results. Our findings have driven us to these conclusions:

· The sales leaders within organizations have more impact on sales performance (positive or negative) than any other component of the organization.

· The best sales organizations develop a series of critical systems and processes, surround them by the right people for their organization and have them implemented and reinforced by outstanding sales leadership.

While this may seem straight forward, the challenging part for our clients is determining which people, processes, leadership style and technology will really work. With decades of experience and training in multiple sales methodologies and processes, we can draw from a variety of resources. However, each organization has a unique strategy and culture making it difficult to sort through the myriad of books, programs and experts to decide what is right for you.

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Transitioning From Sales Rep to Sales Manager

Sales people often are promoted into management positions – primarily based on their sales success. While congratulations certainly are in order, success in these situations raises some unique challenges.

Just because a sales people excelled at face-to-face selling doesn’t mean they will excel as a manager. Their responsibilities extend far beyond face-to-face selling. Yet,new managers often are promoted without receiving a lot of help in building the relationships and skills required to be an effective sales manager. So what happens? They often end up doing one of two things: (1) spending time in front of the customer helping their sales people sale – sometimes that’s can be a good idea, sometimes not so much and/or (2) using sales managers they’ve had in the past as a model – again that’s a “sometimes” good idea.

So, let’s look at this from a relationship perspective and examine how a sales person can make the transition from sales person to sales manager. One common situation is worth noting as a backdrop for exploring the issue. Often the promotion occurs within the current sales team or from another team in the same organization. In either case, it’s very common for members of the sales team to know the sales manager before the promotion – resulting in some unique issues these new managers must address.

Let’s look at some of the relationship best practices for making this transition.

First, re-write the ground rules with your new and prior team. While it’s okay to gossip, gripe, and even poke fun at each other when peers, after a promotion that changes. The new sales manager now is responsible for setting direction for the sales team, structuring territories, holding people to deadlines, allocating resources, and assessing performance. Staying friendly is important, but developing some new rules for the road is also critical if the new sales manager is to be effective. They need to re-contract the relationship rules with the team as a whole and with each member of the team.

Second, new managers must cultivate relationships with their new sales manager peers. Other sales managers and managers in other groups such as sales support and marketing can provide the insight and support needed for the new sales manager to succeed. There is little question that the sales manager is the “pivotal job” for building a great sales team. But, there is a lot more to it than just being good at selling. So, leveraging the insights of other managers is a must do for getting a good start in making the transition from sales person to sales manager.

Last, new managers report to a Regional Director or VP of Sales, and must learn the written set of new responsibilities and an unwritten collection of expectation form the leadership team.Understanding both is important. Building a viable communication process and style with the members of the leadership team is a critical step in the transition process – yet too often it is postponed too long.

It is easy to argue that the transition from being a rep to being a manager is one of the more difficult transitions in the world-of-work. This is due to the high profile and quantifiable nature of sales and to the criticality of the sales manger role. Not only is the transition difficult; it is also one that needs to be executed expeditiously. Building, managing, and leveraging relationship is an important first step in the journey.

For more than 30 years Dr. Richard Ruff and Dr. Janet Spirer – the founders of Sales Horizons – have worked with the Fortune 1000 to design and develop sales training programs that make a difference. By working with market leaders – such as UPS, Canon USA, Smith & Nephew, Boston Scientific, Xerox, Owens & Minor – we have learned that today’s standard for a great sales force significantly differs from yesterday’s picture.

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The 5 Ways Sales Managers Shoot Themselves in the Foot

Many sales managers have absolutely no idea how to be sales managers.

This isn’t entirely their fault. Many sales managers are emulating the exact same behaviors that their (bad) sales managers showed them. Many sales managers are sales reps who just got promoted out of their field of expertise entirely.

But of course the success of your company depends on your sales team. It’s important for all sales managers to stop shooting themselves in the foot-and even a clueless sales manager can improve. Here are six ways that sales managers shoot themselves in the foot, and what you can do about it.

#1. They Adopt a “Sink or Swim” Mentality

You could hire the 10 best sales reps in the nation, but if you adopt a “sink or swim” mentality most of them are going to fail.

Success in one company does not necessarily predict success in another. Every company is different. Every product is different. Every process is different.

Yet far too many sales managers simply fling their presentation book and territory maps at new hires and say, “Go get ’em, Tiger!”

Instead, you should take the time to figure out your sales process, from prospecting clear up until the customer installs or receives the product. Dig in to find best practices. Train them on a specific presentation. Give each sales rep a proven road map that can lead them to success over and over again-even if that rep was Mr. Sales Superstar in some other division or company.

And yes, if no such process currently exists then it will be up to you to create one.

#2. They Give Useless Advice

“Mr. Sales Manager, I want to hit quota but I don’t know how.”

“Just make more calls.”

Right now that conversation is being repeated over and over again across America. And it’s leaving a trail of frustrated sales reps and frustrated sales managers in its wake.

Assume your representatives want to succeed, and then figure out what’s standing in their way. Are they calling the right people? Is there something going on with their delivery when they call? The “numbers game” is a good starting point for sales success, but it’s not the end all, be-all. Stop assuming the problem is laziness or some other personal failing on the part of your reps and start positioning yourself as a coach and mentor.

#3. They Mistake “Rah-Rah” Huddles for Motivation

Having a positive attitude is certainly important. But cheering huddles, sales contests, and motivational posters are all surface solutions that don’t get to the heart of what it takes to create and maintain a positive attitude.

In reality, having a positive attitude comes from:

Knowing where you’re going.
Knowing why you’re going there.
Knowing you know how to get there.
Helping sales reps see where they are going is more than setting quotas. It’s also a matter of setting clear expectations for conveying the company brand, for achieving the right level of customer service, and for achieving certain success tasks such as setting appointments.

The “why” is about helping the representatives see the personal benefits of meeting those targets-helping them truly see what that level of income means to them and helping them place themselves inside of that picture. However, most employees want meaning, too, so why also comes from the company’s mission-what it’s trying to achieve and why the rep’s work matters.

But the third ingredient is the most important-how. There is nothing motivational about, “You can do it!” There is an incredible amount of motivation in “You can do it, and here’s how!” Give people action steps. Cheer for their actual successes, instead of slapping on a “we’re great” Band-Aid first thing in the morning. The Band-Aid solution is a hollow solution, and everyone knows it.

#4. They Develop an Antagonistic Relationship with the Marketing Department

Marketing is not the problem. Marketing is not delivering crappy leads. Turning the marketing department into a scapegoat doesn’t achieve anything except the breakdown of communications. The relationship should be symbiotic-they create leads, and you turn them into money.

Instead, see if you can work with marketing to determine the best, most profitable leads. Dig into the data with them. Find out what they’re doing so that you can incorporate their messaging into your sales presentations, allowing you both to present a consistent brand. Help them out by communicating the pain points, questions, and objections that your team encounters in the field-this is information that will help them create better marketing materials.

#5. They Spend All Their Time Putting Out Fires

Of course it’s important to be there for your team and to give them the tools they need to succeed. But resist the urge to solve every problem for your reps.

A recent post in “Top Line Leadership” put it pretty succinctly.

A sales manager who is reactive is one who is constantly fighting fires. And these “fires” are likely the same problems they were struggling with last month, too. The core problem that many sales managers have is the flawed mindset that, “I am 100% responsible for solving all team problems.”

So, salespeople hand-off their problems to their manager. Problems in customer service, order entry, you name it. They all get dumped in the sales manager’s lap. In extreme cases, a sales manager can take on the role of an administrative assistant to the team. I ask sales managers: “Do you ever wonder what your salespeople are doing after they give you their problems?” Here’s a hint: they’re likely not making more sales calls!

Adopt a different approach instead of taking every single problem into your own two hands. Give your reps some guidance on how they might solve the problem. Empower them to seek solutions. Let them know you’re always available for guidance-which takes a few minutes-but you’re not always available to spend 2 hours on the phone with another department sorting out the delivery snarl. That’s their job. Your job is to be the coach-to teach sales representatives how to succeed.

A close relative of this phenomenon is the sales manager who is spending all of his time going out on calls with representatives. That might be appropriate when the representative is very new, or when the rep is struggling and you’re attempting to pinpoint the problem, but it’s probably not the best use of your time otherwise. You certainly shouldn’t be taking over sales calls-that’s demotivating in the extreme, and it prevents you from working effectively.

Of course, all of this can be boiled down to a single problem, really-each of these failures is a result of a sales manager’s misunderstanding of his or her job. You’re not there to do the rep’s job for them. You’re not there to write reports and projections-they are part of the job, but they are not the job.

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Can Your Superstar Sales Person Become Your Superstar Sales Manager

Finding the right person to fill the sales management role is a common quandary in wholesale distribution. It can be especially challenging when a decision is based strictly on sales territory performance without regard for the specific skill sets required to lead a sales force.. 2005 has been a good year in wholesale distribution with some industries recording double digit growth rates. With market cooperation like that, most sales people are smiling as they hit or exceed their quotas. Deciding on the right sales person to promote to sales manager can become a difficult and risky decision..

“We need a new sales manager. Let’s promote Tommy, he’s our leading producer in field sales.”

“No! We can’t afford to lose Tommy’s production in the field.”

“That’s not a problem. He can be a working sales manager and still call on his key accounts.”

Most of us should recognize that conversation but not many of us recognize the fallacies that lie within it. In wholesale distribution, it seems that the primary prerequisite for becoming a sales manager is being the top performing sales person. Promoting our top performing sales person to sales manager simply due to results is a big mistake. Personal experience tells me it has less than a forty percent chance for success. Our chance of success is decreased even further if we really believe that our sales manager can manage the sales force and still be solely responsible for a number of high volume accounts.

Different Skill Sets

It is an undisputable fact that different skill sets are required to become a successful sales manager as compared to being a successful sales person. Selling is a profession that requires professionals. Managing a group of professionals with the type of personalities required to succeed in sales is no easy task. Yet, in my humble opinion, it is probably the most important management position you can hold in a company. Sales management holds the key to meeting company objectives. Effective sales management builds the platform for success. Sales people are not the easiest group in the company to manage. If they were they would not be sales people. Selling is not easy. It takes a special talent, self motivation, self discipline, a passion to succeed and the ability to accept rejection. The reality of the situation is simple. The majority of sales people are not managed well. Let’s look at some common sales management mistakes to help us develop the list of hints I promised that will increase your ability to determine which sales person at your company is likely to succeed as sales manager.

Mistake —– Low tolerance for process.

Let’s face it, there probably isn’t a sales person alive that likes paperwork and administrative tasks. However, a Super Star Sales Manager will be process oriented. They understand that success in sales is driven by best practice and best practice is built around process. Sales effectiveness depends on predictable and repeatable best practice. The Super Star Sales Manager will create the kind of culture that negates the inherent aberration by sales people for process, structure, detailed and documented action planning.

HINT #1

If your star sales person embraces structure, pays attention to detail, is always current with required communications, documents his action planning process and doesn’t whine about administrative requirements passed down by corporate, chances are he/she will have a high tolerance for process. This means he/she possesses a basic understanding of structure and accountability. Everything isn’t locked up in their head just because they have been doing it a long time and have had great success.

Mistake —– Weak coaching and mentoring skills

Relationship equity is still a primary ingredient for sales success. However, relationship equity with the customer is quite different than relationship equity with peers, subordinates and executive management. A Super Star Sales Manager will build enough relationship equity with their sales force to be able to provide effective coaching and mentoring in reviewing the sales person’s activities. They understand that you must manage activities and measure results. This coaching and mentoring process includes buddy calls, monthly territory reviews that provide support and resources to leverage individual sales talent. This process includes opportunity recognition and pipeline management. What does the sales person have in the pipeline? Can the sales manager provide proactive support and resources to increase the chance of success?

Hint #2

If your star sales person is reluctant to accept or seek out help, this may be an indication of the Lone Wolf methodology. Maximizing territory performance requires a team effort. Utilization of all resources and support is mandatory to grow market share and maximize profitability. Look for the sales person that is successful but recognizes that they are not alone. Look for the sales person that shares the credit for success, coaches the inside sales staff, recognizes the contributions of customer service personnel and others in the organization. This sales person has also gained the respect of his peers and is often seen giving advice and sharing ideas.

Mistake —- Lack of development programs and leadership skills training

Leadership skills are extremely important to effective sales management. This is especially true when managing a sales force that leans more to the route mentality, is in a comfort zone, becomes complacent or is focusing on demand fulfillment as opposed to demand creation. The ability to recognize the need to adapt your management style not only to the situation but also to the individual is a key to gaining respect and trust from the sales force. This is a learned skill. Failure to seek out leadership skills training can be detrimental to success. A prerequisite to success in sales management is the ability to recognize talent and develop that talent. A Super Star Sales Manager will recognize talent and is willing to help develop that talent to reach its highest potential. They also prune the garden effectively. This means they hire well but fire even better. Failure to formalize a development program for sales management is a big mistake.

Hint #3

If your star sales person is not interested in attending seminars, doesn’t listen to self development tapes and hasn’t read a sales book in the past year, chances are they believe they are as good as they are going to get. Look for the sales person that is willing to be away from his territory, sacrificing commissions to increase his individual knowledge. This is the type of sales person that is a sponge when it comes to continuing education in the fields of sales. This person not only seeks company sponsored training but is willing to invest his own money and time in self improvement activities. They have a philosophy of continuous self improvement striving to be the very best that they can be.

Mistake —- A Member of “The Lucky Territory Club”

Numbers alone don’t always tell the story. We need to analyze each individual success story. Just because a sales territory has performed well doesn’t automatically mean the sales person is a star. A ten percent sales growth sounds great but how good is it if the potential growth for that territory should be in the twenty or thirty per cent range. A ten percent sales growth in that territory sounds great but how good is it if the market in that territory actually grew by thirty percent and the sales person was in a comfort zone walking by opportunities daily.

Hint #4

When evaluating your star sales person for potential promotion, analyze the numbers thoroughly. Is the sales person the real reason for that territory success? Are the numbers as good as they appear when you consider all the factors? Determine how this territory was established. Is this sales person responsible for the long term growth of this territory or did they inherit it. Analyze new account development in this territory. Evaluate this sales persons prospecting skills. How many new accounts have been developed in the territory? What kind of penetration success has been demonstrated with existing accounts?

Hint #5

Look for the sales person that has the ability to think strategically. They are willing to sacrifice personal gain for the benefit of long term company success. (A rare quality). A sales person that may be a maverick and shoot from the hip occasionally but every risk they take is a calculated risk. Their personal objectives for territory performance are in alignment with the company’s strategic objectives in relationship to product development,, segmentation, vendor development and margin initiatives. Look for the sales person that has good communication skills internally, one that has learned to listen exceptionally well, a skill that often eludes some of the best sales personnel.

If you are ready to promote your star sales person to sales manager, pay attention to the hints listed in this article. If your star sales person measures up according to the factors discussed in this article, your chance of success increases dramatically. That means your Super Star Sales Person can become your Super Star Sales Manager. If they don’t measure up according to the hints discussed, look deeper into your sales organization for that sales manager or go outside the organization. There is no such thing as entitlement. Remember, different skill sets are required to be an effective sales manager.

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Five Considerations in Selecting a GREAT Sales Manager

Companies need great sales managers. To find them, Sales VPs and business owners need to (1) know, in advance, the sales goals their managers will work to achieve. Sales managers assume responsibility for sales team goal achievement. And, it’s important to investigate their background for team achievement levels and to set clear expectations for them at the beginning of their employment. Typical expectations are set for team performance, individual product sales, territory expansion, and retention.

As a coach, sales managers guide salespeople into prospecting and sales activity levels necessary to produce enough quotes and sales for goal achievement. They create an inspiring environment in which salespeople want to motivate themselves to achieve sales goals. To accomplish the goals of a sales manager’s position, a person must be able to do certain activities. They must show a competency to handle certain duties. We will call these duties (2) sales manager competencies.

Know the competency requirements for top sales managers in your industry. Examples found in a cross section of industries and sales manager positions include:

Recruiting salespeople
Planning sales goal achievement
Coaching and teaching in three areas: sales planning, activity (funnel) management, face-to-face skills
Confronting mavericks and poor performers
Building teams
Inspiring others to motivate themselves
Monitoring individual and team performance (sales goal achievement)
(Note: In some industries, a high ability to sell or close deals is necessary, while in others a moderate ability to sell is required along with greater competency in the areas shown above. Group presentation skills are required in some industries and not in others.)

As you can see the competencies are the things that great sales managers can do and do well. To consistently do these tasks over a long period of time, a sales manager usually possesses certain (3) personality traits. Just as in athletics, certain traits produce speed and an ability to catch a ball. In sales management, certain personality traits allow sales managers to more naturally do the competencies shown above. Those personality traits are ….

High social confidence and ability to ask, tell, present, persuade, and confront
Lower social drive and need for recognition and thus a greater tendency to praise others
A moderated goal drive with a respect and knowledge of sales systems: processes, tools, and skills
A moderated detail-orientation to allow for analysis within a big picture orientation
A moderated need to nurture – ability to hear an individual’s needs and yet keep time management a priority
Willingness to understand and adapt communication and coaching to different personality styles
Out of the box thinker and creative problem solver – personal flexibility
While the goals, competencies, and personality traits combine to show what a sales manager must do, (4) attitudes and beliefs make up the philosophy that drives the system. They also define the sales team environment and whether it will be an inspiring one. And, certain attitudes and beliefs must be present to exist comfortably within a company’s values. The follow list contains attitudes and beliefs most commonly found in great sales managers. Before recruiting a sales manager, it will be important for you to see which you agree with and what attitudes and beliefs you will add to the list.

– HONEST: with money, time, and promises

– HARD WORK ETHIC: the amount of hours doesn’t matter

– PERSONAL RESPONSIBILITY: it’s their ship, their watch, their people, their goals

– SERVANT HEARTED: it’s all about contribution and service

– POSITIVE: meets challenges with a ‘can do’ attitude

Finally, the (5) cognitive strength of the sales managers is important. It determines how fast they will learn and how quickly they grasp complex information – the need for which varies between industries.

When selecting great sales managers, build a matching sheet of +’s and -‘s and keep score during a best practice recruiting system. Screen, profile, and then do structured interviews. Focus on deciding if the candidate can accomplish the goals by being competent in the areas shown above. And, most importantly, for retention and for sales TEAM health, decide if the candidate will do these things naturally and in a way that will keep both sales team morale and production at high levels. Now, take the information in this article and do a better job in selecting your new sales manager. You can. Lance.

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5 Reasons to Use a Cloud Server for Your Business

The majority of traditional companies invest in expensive in-house servers for their file sharing, email and applications. These solutions feature physical servers and a number of virtual machines. For the management of the servers, they need to spend a lot of money in the beginning. The cost includes the purchase of equipment and IT staff, just to name a few. But cloud servers offer many advantages. Let’s talk about 5 reasons to use a cloud server instead.

The downside of an in-house system is that it comes with high initial. Plus, you need to order a replacement as soon as the old system stops working. Not all of small businesses can afford to buy a new unit. Cloud servers, on the other hand, are much cost-effective. Without further ado, let’s read about 5 reasons to use the alternative.

1. No Upfront Cash

The first reason to go for a cloud server is to save tons of money. Unlike a conventional system, cloud machines don’t require you to invest in high-end machines. All you need to do is pay a small fee at the end of each month, and you will be good to go for the entire month.

2. No Cooling Required

Since you don’t need to manage all the equipment in-house, you can use a server that an experienced provider can control. Therefore, you don’t need to install air conditioners to cool down the servers and the related equipment.

For small businesses, this is a huge advantage as they can invest that budget on other projects to expand their business.

3. Software Updates

Another great advantage of cloud servers is that the software they run receives updates on a regular basis. You don’t need to pay for buying the software updates as this will be taken care of by the service provider. This can save you a lot of time and effort.

Opting for the updates is based on the computing needs of your business. So, this is another reason to go for this alternative instead of in-house equipment.

4. No Surprise Costs

This is another huge advantage of these systems. You can easily predict the costs of IT support. You don’t need to worry about the server outages. Although the cloud service comes with its own costs, you can enjoy cost savings over the long haul. That’s the reason many companies don’t manage in-house hardware anymore.

5. Easily Scalable Solution

Cloud servers offer a scalable solution to meet the changing needs of a small or large business. On the other hand, these systems require a fast, stable internet connection. As long as you have a fast connection, you can get the most out of these servers. Also, you can buy more bandwidth and other system resources by paying a small monthly fee.

Long story short, these are some of the reasons to choose a cloud server instead of an on-site system for your small business. You can try out these systems if you don’t want to manage in-house systems. Hope this helps.

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