NZ’s e-mag for sales leaders

NZSALESFEBRUARY 24th 2010 / IssUE 35

GET SALES FIRING in 90 Days

SELLING BuSINESS VALuE To SENIoR ExEcuTIVES

Reward or PUnIshmEnt?

A thIRst to ExcEL

Uncover moRE oppoRTuNITIESARE you oNE oF ThIS

wEEk’S wINNERS?SEE INSIDE!

MID STRENGTHFULL FLAVOURFULL LIFE

nZsm / FEB 24th 2010 / 3

FEBRUARY 24th / IssUE 35

ThIS wEEk'S muST READGET SALES FIRING IN 90 DAyS3 Easy things you can do right now

SELLING BuSINESS VALuE To SENIoR ExEcuTIVES how an account planning process can help you.

RESouRcE coRNERwhAT ThE cEo wANTS you To kNow the basic building blocks of a business explained in clear simple language.

REwARD oR puNIShmENT? Performance meaurement that help your salespeople to sell.

NZSm cALENDAR

Two mINuTE Top-upA ThIRST To ExcELKeep yourself on track to achieve results.

SALES TRAINING DIREcToRy

QuIck FIxIt’s not what you sell, it’s how you sell.

ThE cLoSE

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ARE you oNE oF

ThIS wEEk'S wINNERS? SEE INSIDE!

nZsm / FEB 24th 2010 / 4

ABoUt /

short and sharp, new Zealand sales

manager is a free e-magazine delivering

thought provoking and enlightening

articles, and industry news and

information to forward-thinking sales

managers, business owners and sales

professionals.

EDItoR / Paul newsom

ARt DIRECtoR / Jodi olsson

GRoUP EDItoR / trudi Caffell

ContEnt EnQUIRIEs /

Phone Paul on 04 586 4733 or email

pauln@nzsalesmanager.co.nz

ADVERtIsInG EnQUIRIEs /

Phone Richard on 09 523 4112 or email

richardl@nzsalesmanager.co.nz

ADDREss / nZ sales manager, C/- Espire

media, Po Box 137162, Parnell,

Auckland 1151, new Zealand

WEBsItE / www.nzsalesmanager.co.nz

It was good to receive some of your

comments on the articles in our first

issue of the year. Referring to the

interview with David Larsen, and the point

David made about their success being down to not competing

with each other, one reader says, “I remember as a junior

salesperson complaining to my manager that a team mate

had cannibalised my sales underhandedly and I actually said

‘Why are we competing with each other when we have real

competitors out there, we should be helping each other?’ I was

scoffed at, so this is great to see someone so successful stating

that as a reason for success.”

Fortunately I have never worked for a sales team who were competing with each other over customers. I wouldn’t have stayed long if we were. the right kind of competition is healthy, but I wonder how many sales teams are self destructing because team members are

competing against each other. I’d be interested to receive any other experiences or comments you have on this. In this issue we welcome a new contributor, Ian segail, who has some timely advice for sales managers with three things you can get started with straight away to fire up sales in the next 90 days. As a young sales rep I wish I had a sales manager who used strategy 1 – I would have learned so much faster!

And whether you are managing the sales or doing the sales, try the ‘post it’ note exercise in strategy 3 – it can be an eye opener! Giveaways in this issue include wine, books and an nZ sales manager leather compendium. Look inside to see if you are a winner and claim your prize, or to enter the draw.

Paul

nZsm / FEB 24th 2010 / 5

t h I s W E E K ’ s m U s t R E A D

Ian segail is a leading authority on sales strategy and sales management, and works as a strategic sales Performance Coach with both novice and experienced sales managers across a wide variety of industries and selling disciplines. Find out more at www.iansegail.com

Get Sales Firing in 90 days

3 Easy things you can do right nowBy Ian segail

there is no question that in these economically

uncertain times, sales leaders will need to get smarter

if they are going to keep and grow their existing

customer base. their people will need to be a whole lot

more shrewd if they are to win the few opportunities

available. that being said here are three fundamental sales

management strategies that, when implemented, will help

generate sales traction within the next 90 days.

Easy Strategy #1Your first strategy will seem so simple and so easy that you

are bound to say to yourself “Is that all there is to it?” Don't

be fooled. Whilst the strategy below may seem simple, when

done, it delivers some amazing results. so don’t ponder the

why's and where for's, just get on with it!

It has been proven that, when effectively applied, the

practice of regular one-on-one sales performance coaching

is the fastest and most effective vehicle to drive sales

productivity and thereby revenue. one-on-one sales

performance coaching is a powerful, time-tested, behaviour-

changing, sales acceleration strategy and is the foundation

on which permanent and consistent growth in your sales

business is built.

Coaching is one of those absolutely critical skills that you must

develop if you ever want to achieve maximum output from

your sales team. Whilst there are many different processes and

skills you need to get proficient with to be an effective sales

performance coach, there are two activities that you can apply

that will have an immediate impact to your sales drive.

nZsm / FEB 24th 2010 / 6

the only skills required are those of asking good questions

and actively listening to the answers, both of which you

already have if you are reasonably successful at selling. You

can apply these two practices immediately to begin getting

traction with your people. here's all you need to do (and

by the way even if you only do a half way decent job, you'll

begin to see improvement).

sit down with each of your salespeople either in person

or by phone, ABsoLUtELY no LEss thAn onCE A

FoRtnIGht.

Depending on the state of your sales pipeline, you may need

to ramp that up to once a week. During your one-on-one

time together conduct an:

1. In DEPth review the week/fortnight just gone.

2. In DEPth plan the week/fortnight coming up.

that’s it, that’s all, that’s the lot! I told you it was simple.

however as with most simple things, because they’re easy to

do, it’s just as easy not to do them.

what does in depth mean?In depth means just that. You need to unpack the week

that the salesperson has just completed. As an example,

when prospecting for new business opportunities either

with existing customers or new prospects, your salespeople

must complete some primary due diligence and be able to

answer some or all of the following questions before even

fronting up or making the sales call. By having answers to

the questions below will afford them the best opportunity for

success. Your job in coaching them in depth is to ensure that

before they invest their time and your money going to see a

prospect, they are extremely well prepared. Imagine if you

asked your salespeople some or all of the questions below

before a business development call.

“so you are going to see Bob at ABC Co....”

What have you learned about ABC Company? •

Who are all the “key players”? •

What does your research tell you about the critical issues •

that ABC may be facing right now?

What is the evidence that they are facing these issues? •

Is there someone other than the key decision maker you

can confirm this with?

What do you believe the potential impacts of those •

issues to be?

What are their current constraints in solving that issue (in •

relation to time, people, money)?

Do you know of any current work-around in place that •

might keep them stuck and unwilling to change?

What issues are the users of their current system facing?•

What is our answer for solving the issue? •

What are the current market trends in their area? •

What do we know about other companies that operate •

in the same space as they do?

What are ABC’s key strategic initiatives? •

how may we be in a position to help them? •

What questions do you have prepared to elicit needs? •

how do you plan on positioning the company and what •

it is we do?

What information should you bring back from your visit, to

move this opportunity to the next stage of the sales pathway?

What is the objective of the sales call?

this list is by no means exhaustive. It may have left out issues

specifically relevant to what it is you sell. However, it is a

great start. Create your own pre-call strategy checklist and

ensure that your salespeople are well prepared prior to their

next sales call.

that is what I mean by in depth! Can you imagine just how

much better prepared your sales people would be to take

advantage of the opportunities out there with this kind of in-

depth probing?

think about how many of your salespeople have empty diaries

waiting for them to turn on their voice mails and emails to

determine where they should invest their time that week.

turn your salespeople into proactive producers by working

alongside them to plan the week/fortnight coming up.

If you follow this simple practice for the next ninety

days, you will start to see traction you have only ever

fantasised about.

In depth means just that. You need to unpack the week that the salesperson has just completed.

nZsm / FEB 24th 2010 / 7

Easy Strategy # 2Look for sales closest to the bull’s-eye. Imagine standing front

on and facing the circles of a target. Imagine the bull’s-eye.

Right there in the middle is where the money is. the circle

just outside the bulls-eye represents your existing customers,

let call them A’s. they are the ones closest to the money. the

next circle represents those customers that have bought from

you occasionally, let’s call them B’s. the circle just beyond

the B’s are your C’s and they represent those prospective

companies you have targeted but have yet to buy from you.

then outside of your C’s we have the D’s. these are prospects

we have yet to consider.

once again, as simple as this practice may seem, it is

often neglected. When we need more sales, where do we

go looking? It's a sad truth that too many salespeople go

searching out there in D, E, F, and G land.

It’s important to start looking for business closest to where

the money is. Your best sales opportunity is to expand your

influence within your A and B customers’ organisations

and earn a higher percentage of their business. According

to the latest Cso Insights sales Performance optimisation

Report only 33.6 percent of C.S.O’s (Chief Sales Officers)

interviewed were able to farm additional revenues from their

existing customer base.

Your role as sales manager is to help your salespeople

identify where you have previously left money on the

table. What are the opportunities with your A, B and C

companies? How can you expand your influence with

them? how can you get them to buy more, more often?

Can you pick up some referrals from them? Go work

there! Let your marketing department figure out how to

educate, trouble and inform the D, E, F, and G targeted

prospects. Let marketing come up with and implement the

strategies to move the D, E, F, and G targeted prospects

closer to the bull’s-eye.

By the way, if you’re once again thinking that this is too

simple or that you already do this, then let me pose a

challenge for you. take any of your A, B or C accounts and

ask your people to answer the questions listed above in Easy

strategy #1. I guarantee there's work to be done there. have

your people renew old relationships. have them beat the

bushes for new opportunities you have yet to capture with

your A, B and C customers. these customers live closest to

where the money lives.

Easy Strategy #3Go to work and re-engineer your current sales process, if

you have one. If you don’t, then get one! the latest research

from the Cso Insights sales Performance optimisation

Look for sales closest to the bull’s-eye. Imagine standing

front on and facing the circles of a target. Imagine the

bull’s-eye. Right there in the

middle is where the money is.

nZsm / FEB 24th 2010 / 8

Report shows that 'process-centric' sales teams continue

to outperform non-process-centric teams for every

measurable metric.

sales team performance and effectiveness has been shown to

increase by as much as 40 percent when sales teams have a

clear, proven sales process visible to them. the chances are

extremely good that if you currently have five salespeople on

your team, you will have five different sales processes going

on all at once. What other part of your business runs on

multiple different processes? Imagine running your business

with half a dozen different accounting processes, or multiple

It or customer service processes? sounds silly doesn’t it? Yet

in sales we do this all the time.

Re-engineering your current selling process is not for

the faint-hearted. It may be advisable that you bring in

professional expertise to ensure the greatest success. You

may just be too close to your own current sales methodology

to see the gaps or dysfunction. having said that, here's a

powerful exercise to complete at your next team meeting.

Firstly get your sales people to write out the steps of how

they sell on a sticky note. one note per step. this exercise is

itself illuminating, just to see the differences and gaps.

then step two, as a group try and identify the steps your

buyers go through when selecting a vendor.

Lastly, try and align the way you sell with the way your

customers like to buy. Look for the gaps and build in systems

and processes to bridge them.

so there you have it. three practical ideas you can

implement right now to get sales firing again. Start right away

and watch your sales production start to flow again.

Re-engineering your current

selling process is not for the

faint-hearted.

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nZsm / FEB 24th 2010 / 10

tony hillyard specialises in giving sales teams around the world smart solutions to help them win more business in difficult or very competitive markets. Visit Tony’s website at www.TheSalesAcademy.co.nz for more information.

In the last issue we looked at why

salespeople need to engage senior customer

executives in business-based discussions

before any solution to a business problem

has been specified and why they can often

struggle with this fundamental sales task.

we now show you how to resolve this using

a well structured Account Development

plan that salespeople will be motivated to

keep current and dust free.

how An Account planning process can help youBy tony hillyard

Selling Business Value to Senior Executives

nZsm / FEB 24th 2010 / 11

T he Account Development Cycle

Develop a High Level Goal

Identify Key Objectives

Determine Key Strategies

Critical Action Plans:

1. Opportunities

2. Account Maintenance

3. ‘Engineer’ Value & Create New Opportunities

4. Relationships

5. Discovery

Assemble the Account Development Plan

Review & Test the Plan

Collate & Analyse Account Information

Implement the Plan

Generate New Revenue & Create New Relationships

Build Revenue

Growth Goal

Estimate Resources

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

keeping the Account plan dust freeLet’s begin by taking a close look at the Account

Development Cycle. this is a six-step planning process

which enables a salesperson or an account team to identify

the key business issues facing their customer; make the

connections to their products and services and then develop

initial benefit statements and value propositions linked to

those business issues in order to provide a focus for planned

activities and meetings with

senior customer executives.

A comprehensive information

gathering stage is followed

by critical analysis of what

has been learned about the

customer. salespeople should

use a variety of standard business

analysis tools to achieve this

e.g. strengths, Weaknesses,

opportunities and threats

(sWot); Value Chain Analysis;

Physical, Economic, social,

technical (PEst) analysis; Boston

square etc. these well-known

planning tools and others like

them allow the salesperson to

identify the critical business initiatives that their customer has

in place to address major business issues. Links can then be

established between the customer’s key business problems

and the salesperson’s products and services that could

be used to help the customer with their critical business

initiatives. As we have shown in the previous article, these

initiatives will almost always command executive attention,

particularly in their early stages.

A long-term vision for the account is then developed along

with its supporting objectives. the process directs the

salesperson to select a strategy for achieving these objectives

and to detail relevant activities to execute the chosen strategy

in the short- to medium-term. this ensures that the strategy is

kept current and alive.

Five Critical Action Plans (CAP) detail 90-day activities that

have measurable and achievable objectives in the most

important areas of account management. these are designed

to help the salesperson with their day-to-day account

management tasks and create the momentum needed to

execute strategies to achieve longer-term, high-level goals

and objectives. The first of the Critical Action Plans focuses

on current sales opportunities within the account and this

can be used for sales forecasting.

A long-term vision for the account is then developed along with its supporting objectives. The process directs the salesperson to select a strategy for achieving these objectives and to detail relevant activities to execute the chosen strategy in the short- to medium-term. This ensures that the strategy is kept current and alive.

© the sales Academy Ltd. July 2004

nZsm / FEB 24th 2010 / 12

cRITIcAL AcTIoN pLANS:cAp 1 current opportunity Sales planLists all the ‘active’ deals that the salesperson is currently

working on with this customer. It should also contain

complete sales Campaign Plans for any opportunities that

are significant in terms of size or strategic importance.

cAp 2 Account maintenance plantackles the most common areas that can cause problems

between customer and supplier, e.g. damaged relationships,

pricing, contracts, invoicing, delivery, implementation and debt

management. salespeople need to show the activities that they

will undertake to resolve any problems in these areas.

cAp 3 New opportunity planCreates the activity plans and sales calls for the new areas

of business uncovered in the analysis section of the Account

Development Plan. Where possible they should be based

around identified Customer Value Propositions.

cAp 4 Relationship Building planDefines the status of relationships with key executives for this

customer and creates activity plans to build or improve on

each relationship.

cAp 5 Information Discovery planDetails all the important pieces of information that the

salesperson still requires and shows the activities required to

get the information.

These five Critical Action Plans keep the Account

Development Plan current – and dust free!

© The Sales Academy Ltd. All Rights Reserved. July 2009

the six-step Account Development Planning Process

builds a separate estimate of the total revenue potential

for the account. this should include the current revenue

streams, if any, as well as the value of the current ‘active’

sales opportunities, and the value of any new potential

opportunities identified by the analysis section of the planning

process. this is not intended to be used as sales forecast,

but allows the sales team and sales management to balance

potential returns against a realistic estimate of the resources

required to make the Account Development Plan work.

Finally, the process commits the salesperson (or

account team) and sales management to review and

test the completed Account Development Plan, before

implementation, to build internal support and commitment

to its major objectives.

When used thoughtfully and with genuine sales management

support, a well-structured Account Development Plan can

provide a salesperson with the appropriate business insight

and, most importantly, the confidence to engage senior

customer executives in discussions about real business

issues early in the problem resolution phase. this allows

the salesperson to differentiate solutions that are based on

customer value early in the decision cycle, thereby gaining

real competitive advantage.

A well structured Account Development plan can provide…..the confidence to engage senior customer executives in discussions about real business issues early in the problem resolution phase.

nZsm / FEB 24th 2010 / 13

what the cEo wants you to know (using Business Acumen to understand how your company Really works)

R E s o U R C E C o R n E R

What the CEO Wants You to Know explains

in clear, simple language how to do what

great CEos do instinctively and persistently:

Understand the basic building blocks of a business and

use them to figure out how your company makes money

and operates as a total business. then decide what to

do, despite the clutter of day-to-day business and the

complexity of the real world.

many people spend more than a hundred thousand

dollars on an mBA without learning to pull these

pieces of the puzzle together. many others lack a

formal business education and feel shut out from the

executive suite. What the CEO Wants You to Know

takes the mystery out of business and shows the

secrets of success used by business legends like Jack

Welch of GE.

Author: Ram charan publisher: crown publications

$38.95 from Fishpond

nZsm / FEB 24th 2010 / 14

salespeople love having their performance measured –

yeah right! sales people love submitting sales reports.

Right on! Is your sales process measurement a reward

system or a punishment system?

the number one motivator for salespeople is making a

sale. Just look at their faces when they walk into your office

waving an order or a cheque. they are on a real high at that

moment. then they go on to the next prospect and get a

knock-back, then another. the spark dies and the target starts

to look unachievable. turning up to the next sales meeting to

discuss results starts to look like volunteering for a flogging.

so the question is “Does your sales measurement system

help your sales people make more sales?”

the answer depends on whether you are measuring results,

the number or value of the orders won, or whether you are

measuring achievement of milestones on the path to the sale.

the critical issue here is the realisation that as a sales

manager you cannot manage the result. What you can

manage is the activity that produces the result. If your people

are doing enough of the right things, and doing them well,

they will achieve the result. the only way you can manage

the result then is to make all the sales yourself.

If you measure progress along the path to the sale, which is

best done at the critical milestones, then you are in a good

place when it comes to guiding a salesperson. An example

may help. one of your salespeople has had a busy week

making calls on qualified prospects, and has generated a

backlog of requests for quotation. there is not a single sale

in his sales report. he is way behind on the quotes, and

you know from experience that if they don’t go out on calls

in two or three days the prospects will cool off. he needs

guidance from you.

You have a choice of actions.

tell him to stop everything and get the all the quotes out.•

tell him he has had a great week. Well done and stick at it.•

Ask him why he has not made a sale.•

show him how to balance up his sales activity so he •

moves every prospect along the path to the sale at the

desired pace. help him to prioritise his prospects to get

the quotes out progressively.

Reward or Punishment? performance measurement that helps your Salespeople to Sell

By michael taplin

michael taplin has guided many businesses to sales success and profits by finding innovative strategies. You can read more of his ideas at www.bizlearn.biz

nZsm / FEB 24th 2010 / 15

set out like this, the answer is obvious, but it is time to be

honest. What did you do the last time this happened?

ouTcomE 1: this ensures that he runs out of steam in

week or two, and wonders what has gone

wrong.

ouTcomE 2: he cannot make a sale until he quotes.

ouTcomE 3: this focus on the end result is a certain

de-motivator.

ouTcomE 4: this is the way to guide him to steady

progress and a steady flow of orders.

What you need to be able to achieve this steady progress

is a system that gives you a sales report on the activity of

your sales people and the status of every prospect in the

pipeline. then you can guide the sales person to the activity

that will lead to a steady flow of orders. Your sales meetings

will become motivational working sessions, rather than

de-motivational exhortations to work harder to reach sales

targets. Your people will become internally motivated by

their confidence in their own success.

so what is the understanding that we all look for as a sales

manager? I will attempt to summarise the change in thinking

about measuring performance.numbers tell you very little

about real performance. they tell you how hard someone

has worked and what they have attempted, if their reports

are believable. You cannot rely on the number or value of

orders to tell you all they have achieved.

Ratios or percentages tell you more. this is certainly true

about success rates, typically closing rates. But these metrics

don’t tell you about what happens where it really counts.

the real sales Key Performance Indicators (KPI) you are

looking for are the metrics at the points in the sales process

that really count; the ones that add dollars to your bottom

line (or at least your forecast).

If you have these at your fingertips from a sales report, you

can help a salesperson to refocus their activity on what will

count for them in future. You can manage the activity if your

reporting system gives you the right information.

Customers decide the end result, as always.

If you work with your salespeople in this way, your sales will

be easier to forecast because you have removed the activity

peaks and troughs. You will be seen as the leader of the

sales team rather than as the driver. now you can focus on

developing competitive advantage in your sales process. You

can achieve this by discovering KPIs that your competitors

have missed.

In the next issue, Michael will explain how to discover your

competitive advantage using performance measures.

dinanmite.com

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nZsm / FEB 24th 2010 / 17

If you want to achieve more, write or visualise your goals.

many athletes daydream or visualise to succeed. they

have seen themselves crossing the line first or on the

podium with their medal and have learnt to ‘see the end in

mind’ and work backwards in their training programme.

My first question to you is: How old were you when you

started to set your goals? I am sure you were achieving

before you started to write them down but gathered

momentum when you concentrated on them.

my second question is: have you seen your end in mind?

Mine is to sit on a boat in a bay, writing. I can swim and fish

as well, and even become a beach bum or tour the world on

cruise ships. But what about yours?

If you can excite and motivate yourself, you have a thirst to

excel. Understanding your personality is an advantage when

goal setting. You are aware of your strengths and weaknesses

and grasp why you are achieving in some areas of your life and

not in others. Right-brained creative thinkers are constantly

coming up with new ideas and love being with people, talking

and selling. However the most difficulty they will have is in the

area of finances, systems and analytical areas.

so setting pages and pages of goals may not match how you

like to operate. Instead maybe you need a combination of

visual treasure maps as John Assaraf talks about in the secret

and his fabulous book the Answer. I have one of these on my

wall, along with one of my new life-long goals of making a

movie. Every time I read that headline, I attach a ‘Yes’ to it,

giving it momentum forward.

one salesperson I knew had his goals on his Blackberry and

every time he received a rejection, he would re-read his

goal to quickly move his thinking forward again. Again, it’s

the same with you. how do you keep yourself on track to

achieve the results you have a thirst to excel in?

Another word I use after missing deadlines because life

happened and I am feeling a sense of failure, is the word

‘intentions’. A bit like the economy in 2009! sometimes things

happen in life that are out of your control. however, either

word works. Visual or written down, constantly reading or

seeing your goals provides you an incentive to greater success.

I am certain it is the minority of people who sit down and

write their goals on new Year’s day, so anytime is better than

none. I recommend you use a 15-month calendar, exactly for

that reason. many people have opted out of the goal setting

because they say it is too hard or they don’t know how.

the key to achieving is for you to understand you are living

in a constant state of learning. You reach one goal and the

next is scooting along ready for you if you want to achieve

more. Let’s face it – you can learn how to operate your new

mobile phone and the latest technology, so you can learn

anything, if you are provided with the opportunities.

A Thirst To Excel keep yourself on Track to Achieve ResultsBy Janice Davies

Janice Davies is the Attitude specialist, who educates about empowerment. As a Professional speaker, success Coach and author Janice shares at conference and workshops on difficult people, attitude, goals, stress, and positive work relationships. to find out more visit www.attitudespecialist.co.nz.

t W o m I n U t E t o P U P

Make 2010 Your Best Year Ever!Make 2010 Your Best Year Ever!Make 2010 Your Best Year Ever!Make 2010 Your Best Year Ever!

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Q U I C K F I X

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QuIck FIxWhen a client asks for something, rather than just taking the

order, ask questions to uncover the reason for the need. If they

want a particular product, then find out why they need it and

you might uncover the need for other products. You may end up

with a bigger sale.

For example if they need a printer because they need an

upgrade, or they have grown in terms of number of people,

then their company is in growth mode, and there will be other

requirements that you can then tap into.

thanks to mel Lee, Gen-I, for contributing this Quick Fix.

If you have a favourite ‘quick fix’ that you would like to share

with our readers (without giving your winning secrets away!)

then email the editor at pauln@nzsalesmanager.co.nz

You will be in to win a high powered laser pointer pen, courtesy

of the great guys at Brand storming Promotions.

WIn A LAsER PoIntER PEn FoR YoUR QUICK FIX!

If you have a favorite ‘quick fix’ that you would like to share

with our readers (without giving your winning secrets away!)

then email the editor at pauln@nzsalesmanager.co.nz

You will be in to win a high-powered laser pointer pen,

courtesy of the great guys at Brand storming Promotions.

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