Chief
Sales Officer's Tools for Success
By
Dan Bean, M.A., M.B.A., Partner,
Colarelli, Meyer & Associates (CMA)
Organizational success requires profitable top-line growth.
The most important way that most companies generate growth
is through their sales organization. The spotlight of accountability
continuously shines on sales. There is no room for mediocrity.
There is no room to hide.
In years gone by, the salesperson was the purveyor of all
information about a company's products, features, pricing,
etc. Those days are gone. Now, before the salesperson arrives,
the prospect has most likely gone to the seller's and competitor's
websites and may be deep in the buying cycle before the seller
is even aware of the prospect. Customers now have more choices
and more information about what they can buy and how it can
be bought, often leaving the salesperson playing defense in
responding to a highly informed buyer. The complexity and
sophistication of selling is expanding as customers become
increasingly sophisticated and demanding. Today's salesperson
must have a thorough understanding of the customer's company,
the dynamics of the customer's industry, and the customer's
needs (which are often complex), in order to address and differentiate
product/service value in greater depth.
So how is sales doing in this new, challenging environment?
Tom Atkinson, Research Director, and Ron Koprowski, Senior
Vice President and Sales Capability Director of the Forum
Corporation presented their Sales Effectiveness Study
in a recent issue of Harvard Business Review (HBR).
They asked 111 senior sales executives, in 96 major corporations
across 17 industries around the world to rate their sales
forces. Forty-two of these were listed as "most admired" by
Fortune magazine and five were ranked among the top
15 sales forces by Selling Power magazine. In the HBR
article, here's what they said: "The picture wasn't pretty.
In general, the executives were under-whelmed by their sales
forces' performance. On a scale of 1-10, the executives gave
their sales forces an average grade of 7, or about a C minus.
Roughly a third rated their sales forces below 7, about a
third ranked them 7-9, roughly a quarter rated them between
8 and 8.9, and only one-tenth gave their sales force the equivalent
of an A (9 or higher). This finding is consistent with other
studies that show executive lack of confidence in sales. (A
2004 Accenture survey, for example, found that out of 178
executives polled, 56% saw their sales forces' performance
as average, worse than average, or catastrophic." Why? A high
percentage of those engaged in selling are not getting the
job done.
ALIGNMENT AND PROCESS MANAGEMENT
The CSO (Chief Sales Officer), in a leadership position, should
actively participate in developing and executing company strategy
and must be able to articulate that strategy so salespeople
can connect their actions and direction with the big picture.
The CSO must ensure that the sales organization's processes
are continuously aligned with and support the company's strategy.
The CSO must hire, develop and manage a successful sales force.
The role of today's CSO is indeed varied and complex.
CSO's who capture the power of process and people position
their organizations and themselves for greater success.
Selling is: guided movement toward an objective…a
step-by-step process, guided by the salesperson, to the final
objective of closing the deal. Successful salespeople have
a process they follow, even if it has never been documented.
If an effective sales process is not documented and managed,
salespeople invent their own. An important job of a professional
sales executive is to make sure that a process reflecting
best selling practices for the company is defined and followed.
A carefully defined, proven process brings tremendous value
to the salesforce. The process will vary depending on your
product/service, the customer's buying patterns and cycle,
geographic differences, etc. Sales processes must be defined
to fit the marketplace, and then monitored, measured and revised
based on even small changes in the marketplace. As shown in
the July-August 2006 HBR article, "Understanding What
Your Sales Manager is up Against," organizations that use
effective sales processes and that also monitor and measure
them have vastly superior performance as opposed to those
organizations that do not.
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