Tuesday, May 15, 2007

Tough Reprimands -- How To Handle That One On One Discussion With A Sales Person

All companies are in constant need of aggressive, creative and resourceful salespeople to have their products specified, accepted and used by customers. Without informed and capable field salespeople, no distributorship could hope to compete in the marketplace today.

How often have any of us stopped to consider the fact that good salespeople, the kind who can help a company really grow, don’t just happen to come along by chance or fate. There is no such thing as a “born salesperson,” because selling ability is much more than an intangible given that a person either has or doesn’t have.

Selling does require certain attributes in a person. He or she should, for example, be basically outgoing in manner and capable of making a genuinely favorable impression almost immediately. Also, the person must be intelligent, able to grasp ideas and details easily, retain them and recall them for use whenever necessary in selling situations. These factors and many others relating to personal and emotional characteristics are contributing elements in the makeup of the successful salesperson.

Non Performance ---- Now What?

So, all that being said, what do you do when one of your sales people just isn’t performing up to standards? The key to answering that question is determining the cause of the non performance. Start by reviewing the obvious. A sales person must have adequate tools, resources and leadership to maximize their effectiveness.

The review process is a critical component of sales effectiveness. This review should occur monthly for regularly performing sales representatives (reps) and even more frequently for those reps that are under performing. This review enables the sales manager and the sales representative to discuss, plan and measure success. In addition to possessing and capitalizing on certain natural talents and traits, the review process should encompass the following issues:

1. Knowledge of products, customers and customer organizations.
2. Skills in the application of this knowledge.
3. Development of a favorable attitude as it pertains to that knowledge and those applied skills.
4. Review of all Target Growth Accounts, Prospects and Long Term Target Accounts
5. Review of all opportunity reports or lack of
6. Review of specific territory objectives including sales to plan and gross profit to plan

Instructional Guidelines for the Under Performing Review:

I. Preparation

The sales representative (sales rep) and the sales manager should prepare ahead of time by reviewing territory objectives. Preparation should include reviewing personal performance on each target account, opportunities, sales to plan and gross profit to plan. A quick checklist of what went right and what went wrong for each objective will prove very helpful during the review.

More and more, the sales rep is becoming all things to the customer. Pressed for time, customers tend to require quicker and more complete answers to their inquiries, and they look to the salesperson to provide solutions, not just products. Selling skills tend to center on the ability of a salesperson to translate product features into customer benefits as they apply directly to the prospect’s problems. This in effect is the value proposition.

Lastly, a generally positive attitude is necessary to promote the maximum and optimum use of knowledge and skills in the selling situation.

II. Attitude Is the Foundation

It is agreed that the attitude of the sales rep is a key factor in their success. It is really the foundation for success. The critical question then becomes how to ensure that the best possible attitude exists on the part of the non-performing rep. If the individual is not receptive and has a poor attitude to begin with, very little can be done to create an atmosphere conducive to learning. This attitudinal problem must be corrected before another step is taken. If it can not be corrected then termination may be the best answer for both the rep and the company. However, don’t give up too soon. Sometimes the “devil you know is better than the devil you don’t know.” In other words, turnover is very costly. Besides, if it is something you as the sales manager or something about the culture of the company that contributes to the employee’s attitude and lack of success, then termination will only temporarily solve your problem.

III. Fundamental Steps to Address Attitude Issues

There are a number of fundamental steps that can be taken to improve the attitude of the employee. Some of these are:

1. Encouragement of maximum participation in sales meeting and other training opportunities.
2. Creation of enthusiasm by demonstrating support and enthusiasm.
3. Creation of confidence in the program by providing support and resources
4. Giving success examples – documenting case studies
5. Asking thought provoking questions (without prying into their personal life) with the hope that they will open up and allow the exploration that points to the real cause of their poor attitude and non performance
6. Personal skill development training that addresses people skills

If you can discover the cause and correct the attitude issue then hope exists for this employee. The proper attitude at the very least can help you determine if this employee is worth the investment of your personal coaching time, additional training and the deployment of other company resources. If the root cause of the attitude problem can not be determined and corrected, probation and termination certainly enter into the equation. Sometimes we just don’t hire right and need to correct our mistakes.

IV. Is Training the Issue

Generally, if you are good at the hiring process, non-performance can often be traced to a lack of or improper training. The training program should be designed to achieve maximum participation on the part of the sales rep; as much time as possible should be devoted to realizing this goal. This is especially true if you need to set up a special training program to help a non-performing rep. It has been proven time and again that active participation in sales training is one of the most effective methods of developing both an attitude for learning and an attitude for successful salesmanship.

V. Coaching for Non-performance
To help a poor performer the coaching process would include these five steps:
• Define the Situation Clearly - gather facts and identify performance results. Don’t sugar coat this or pull your punches. It is important that the rep understands the critical nature of this process and the necessity to improve on performance.

• Counsel - meet with the rep and make it clear that your goal is to help them improve their performance. Avoid blaming, reprimanding or delivering ultimatums. Show support and a belief that you can help the rep improve their performance.

• Ask the Sales Rep – Many times the sales rep knows better than you do how to solve the problem. Get their opinion on what they think they need to change. Don’t command an answer or give them instructions on what to do. Help them find the answers with your guidance

• Develop an Action Plan Together – Focus on the activities that are necessary to create the expected results. Make sure the plan has clarity; it’s all encompassing, comprehensive and achievable. In other words, look for short term wins and set up success milestones to encourage the rep to be persistent.

• Continuous Review – Once you have established a success plan it is essential to establish regular follow-up meetings to monitor the activities and make course corrections when necessary. This review process is outside the scope of the normal territory review process as it should occur much more frequently (perhaps even on a weekly basis).

• Take It Seriously -- When a sales rep is under-performing, the manager needs to hold them accountable. In some cases it may be necessary to reestablish expectations. However, if the expectations are not unreasonable and all the other reps seem to be able to meet expectations and additional training and coaching just isn’t working then “Termination” is a decision the rep himself makes for the sales manager. It’s usually better for the rep, better for the manager and better for the company. That is exactly why this process must be taken seriously.

The sales manager is not personally responsible for sales. However, he is directly responsible for the development of the sales force which generates sales growth. The sales manager is charged with the responsibility of setting proper expectations, developing systems to track and record sales activities and results and eliminating any excuse making when results are not achieved. A sales rep cannot perform without knowing what is expected of them. Expectations spell out what is required to succeed, and believe it or not but the majority of sales reps do want to be held accountable. The single biggest key to success is desire and desire dictates attitude. Unless the sales rep has an internal burning desire to succeed, nothing else matters.
All companies are in constant need of aggressive, creative and resourceful salespeople to have their products specified, accepted and used by customers. Without informed and capable field salespeople, no distributorship could hope to compete in the marketplace today.

How often have any of us stopped to consider the fact that good salespeople, the kind who can help a company really grow, don’t just happen to come along by chance or fate. There is no such thing as a “born salesperson,” because selling ability is much more than an intangible given that a person either has or doesn’t have.

Selling does require certain attributes in a person. He or she should, for example, be basically outgoing in manner and capable of making a genuinely favorable impression almost immediately. Also, the person must be intelligent, able to grasp ideas and details easily, retain them and recall them for use whenever necessary in selling situations. These factors and many others relating to personal and emotional characteristics are contributing elements in the makeup of the successful salesperson.

Non Performance ---- Now What?

So, all that being said, what do you do when one of your sales people just isn’t performing up to standards? The key to answering that question is determining the cause of the non performance. Start by reviewing the obvious. A sales person must have adequate tools, resources and leadership to maximize their effectiveness.

The review process is a critical component of sales effectiveness. This review should occur monthly for regularly performing sales representatives (reps) and even more frequently for those reps that are under performing. This review enables the sales manager and the sales representative to discuss, plan and measure success. In addition to possessing and capitalizing on certain natural talents and traits, the review process should encompass the following issues:

1. Knowledge of products, customers and customer organizations.
2. Skills in the application of this knowledge.
3. Development of a favorable attitude as it pertains to that knowledge and those applied skills.
4. Review of all Target Growth Accounts, Prospects and Long Term Target Accounts
5. Review of all opportunity reports or lack of
6. Review of specific territory objectives including sales to plan and gross profit to plan

Instructional Guidelines for the Under Performing Review:

I. Preparation

The sales representative (sales rep) and the sales manager should prepare ahead of time by reviewing territory objectives. Preparation should include reviewing personal performance on each target account, opportunities, sales to plan and gross profit to plan. A quick checklist of what went right and what went wrong for each objective will prove very helpful during the review.

More and more, the sales rep is becoming all things to the customer. Pressed for time, customers tend to require quicker and more complete answers to their inquiries, and they look to the salesperson to provide solutions, not just products. Selling skills tend to center on the ability of a salesperson to translate product features into customer benefits as they apply directly to the prospect’s problems. This in effect is the value proposition.

Lastly, a generally positive attitude is necessary to promote the maximum and optimum use of knowledge and skills in the selling situation.

II. Attitude Is the Foundation

It is agreed that the attitude of the sales rep is a key factor in their success. It is really the foundation for success. The critical question then becomes how to ensure that the best possible attitude exists on the part of the non-performing rep. If the individual is not receptive and has a poor attitude to begin with, very little can be done to create an atmosphere conducive to learning. This attitudinal problem must be corrected before another step is taken. If it can not be corrected then termination may be the best answer for both the rep and the company. However, don’t give up too soon. Sometimes the “devil you know is better than the devil you don’t know.” In other words, turnover is very costly. Besides, if it is something you as the sales manager or something about the culture of the company that contributes to the employee’s attitude and lack of success, then termination will only temporarily solve your problem.

III. Fundamental Steps to Address Attitude Issues

There are a number of fundamental steps that can be taken to improve the attitude of the employee. Some of these are:

1. Encouragement of maximum participation in sales meeting and other training opportunities.
2. Creation of enthusiasm by demonstrating support and enthusiasm.
3. Creation of confidence in the program by providing support and resources
4. Giving success examples – documenting case studies
5. Asking thought provoking questions (without prying into their personal life) with the hope that they will open up and allow the exploration that points to the real cause of their poor attitude and non performance
6. Personal skill development training that addresses people skills

If you can discover the cause and correct the attitude issue then hope exists for this employee. The proper attitude at the very least can help you determine if this employee is worth the investment of your personal coaching time, additional training and the deployment of other company resources. If the root cause of the attitude problem can not be determined and corrected, probation and termination certainly enter into the equation. Sometimes we just don’t hire right and need to correct our mistakes.

IV. Is Training the Issue

Generally, if you are good at the hiring process, non-performance can often be traced to a lack of or improper training. The training program should be designed to achieve maximum participation on the part of the sales rep; as much time as possible should be devoted to realizing this goal. This is especially true if you need to set up a special training program to help a non-performing rep. It has been proven time and again that active participation in sales training is one of the most effective methods of developing both an attitude for learning and an attitude for successful salesmanship.

V. Coaching for Non-performance
To help a poor performer the coaching process would include these five steps:
• Define the Situation Clearly - gather facts and identify performance results. Don’t sugar coat this or pull your punches. It is important that the rep understands the critical nature of this process and the necessity to improve on performance.

• Counsel - meet with the rep and make it clear that your goal is to help them improve their performance. Avoid blaming, reprimanding or delivering ultimatums. Show support and a belief that you can help the rep improve their performance.

• Ask the Sales Rep – Many times the sales rep knows better than you do how to solve the problem. Get their opinion on what they think they need to change. Don’t command an answer or give them instructions on what to do. Help them find the answers with your guidance

• Develop an Action Plan Together – Focus on the activities that are necessary to create the expected results. Make sure the plan has clarity; it’s all encompassing, comprehensive and achievable. In other words, look for short term wins and set up success milestones to encourage the rep to be persistent.

• Continuous Review – Once you have established a success plan it is essential to establish regular follow-up meetings to monitor the activities and make course corrections when necessary. This review process is outside the scope of the normal territory review process as it should occur much more frequently (perhaps even on a weekly basis).

• Take It Seriously -- When a sales rep is under-performing, the manager needs to hold them accountable. In some cases it may be necessary to reestablish expectations. However, if the expectations are not unreasonable and all the other reps seem to be able to meet expectations and additional training and coaching just isn’t working then “Termination” is a decision the rep himself makes for the sales manager. It’s usually better for the rep, better for the manager and better for the company. That is exactly why this process must be taken seriously.

The sales manager is not personally responsible for sales. However, he is directly responsible for the development of the sales force which generates sales growth. The sales manager is charged with the responsibility of setting proper expectations, developing systems to track and record sales activities and results and eliminating any excuse making when results are not achieved. A sales rep cannot perform without knowing what is expected of them. Expectations spell out what is required to succeed, and believe it or not but the majority of sales reps do want to be held accountable. The single biggest key to success is desire and desire dictates attitude. Unless the sales rep has an internal burning desire to succeed, nothing else matters.