This event will provide Senior Managers, Entrepreneurs, Sales Managers, Human Resources Managers and Recruiters with the knowledge, insights, tools and techniques required to consistently recruit effective salespeople.
This will typically provide greater than 90% hiring accuracy, reduce staff churn by at least 30% and increase average annual sales per salesperson by 20-40%.
1. How To Select A Sales Force That Can Sell
Presented By:
Peter Gilbert CEO HR Chally SA
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2. Who Is Chally?
A Global, Sales Force Potential and Performance Measurement Firm
Utilizing our Industry Leading:
To ensure our clients have the vital information/analysis to minimize risk associated with
making critical talent management decisions related to:
• Selecting and developing the right people • Performance Management
• Increasing productivity • Managing succession
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8. In Sales We Routinely Do Things Badly
• 25,1% attrition rate
• Less than 50% of reps make quota
• 71% of new hires take at least 6 months to ramp up
• 20% of sellers bring in 62% of the revenue
• 25% do not generate enough profit to cover their
expenses
• Forecasts accurate +- 50%
• % Deals won less than 20%
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9. Planned Agenda
A brief history of sales and some thoughts on the
Part 1. future.
What is your Go-To-Market sales strategy, and
Part 2. what kind of salespeople will it require?
A model for understanding different types of
Part 3. salespeople.
The elements of an effective recruitment
process:-
• Background & reference checks 30%
Part 4. • Structured scorable interview 30%
• Criterion validated assessment 30%
• Judgement & gut feel 10%
Part 5. The cost of poor hiring
Part 6. Developing a recruitment strategy
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10. The Problem
Post-recession markets have changed the game permanently:
• Product quality (all serious competitors have the same)
• Cost (Supply chain management and Global sourcing level the playing field)
• The internet has switched the information advantage to the customer
• Innovation is short lived
• Untrained sales managers are struggling and failing
• Manipulative sales techniques no longer work
• Sales training has not evolved
• Buyers have become better buying than sellers have at selling
• BUT sales recruitment is no better than it was 50 years ago!!!
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11. The Challenge
– Traditional Field or “Route” sales is going to disappear
– Traditional field salespeople will transition to telesales for roles
such as account management
– Higher end salespeople will need a sophisticated understanding of
their customers and markets PLUS the new sales skills as out-
sourced managers for their customers
– Sales will evolve to a professional level status with degree/diploma
qualification (providing the base business savvy and sales skills,
as well as the appropriate academic background)
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12. The World Of Sales Is Changing
“It is not the strongest species that survive, nor the most intelligent, but on
who are the most responsive to change.”
Charles Darwin
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13. The Evolution Of Sales
From snake oil peddler to value creator
13 13
14. The Joys Of Being A Salesperson
Sometimes it’s a bit like being a fire hydrant at a dog show!
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15. What Is The Purpose Of A Sales Force?
These people are all trying to sell you something!
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16. What is the purpose of a sales force?
Some common answers.
• To sell our products
• To generate revenues
• To build relationships with customers
• To communicate with customers about our products and services
• To differentiate our offering
• To add value to our customers
• To partner with our customers
• To be the interface between our company and our customers
THESE ANSWERS ARE ALL CORRECT.
BUT NOT VERY INSIGHTFUL!!!
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17. A better definition
These eminent authorities agree that most sales is no longer about selling your wares. It is
about making customers successful.
Gerhard Gschwandner Neil Rackham Philip Kotler
Owner Selling Power Professor/Author Professor/Author
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18. Strategy Drives Everything
If you have no sales strategy, you have no clear idea of who your real customers are, what
kind of salesperson they are most likely to respond to, and which type of salesperson is most
likely to succeed in your business. No wonder a few salespeople deliver most of your
revenues. For you, successful recruitment is a purely random event.
Many executives should be ashamed of their sales forces!!!
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19. What is a Go-To-Market sales strategy?
“A Go-To-Market sales strategy (GTMss) is a
purposeful and defined strategy to serve customers,
win market share at acceptable margins and
outperform the competition”
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20. Another Definition
Go-To-Market Sales Strategy
A game plan for reaching the right customers in the right markets,
through the right channels, with the right products and the right
value proposition.
The purpose of a Go-To-Market sales strategy is to create a
powerful, winning total customer experience that will:
• Attract, win and retain the most desirable customers,
• While driving high sales and market share growth,
• At the lowest possible cost.
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21. The GTMss Sales Model
Infrastructure
Efficiency Customer Co-Management
Value
Price/Performance New Source Of Wealth
Relationship
Transaction Based Partner Based
Marketing & Messages
Requirements Fit Vision Fit
Customer Engagement
Make the List Make the Rules
Make the Sale Make the Standard
Solution Fit Business Fit
Trust Based Political Based
Process Performance Business Improvement
Effectiveness Decisive Force
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22. When you have no GTMss
You will be confused
REMEMBER!!!
It is better to be wrong than to be confused!!!
22 These people are both!
23. Products Move Through a “Sales” Life Cycle
Fast Growth Wide Usage
Introduction Saturation
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24. The Salesperson Who Fit the Life Cycle
Stage 2 Stage 3
TOUCH Turnkey Buyers with Relationships
Consultive Support Service Driven
H
I
G
H
P URCHASE
COMPLEXITY
Stage 1 Stage 4
Early Adopters Commodity
H Price Driven
I
G
H
TOUCH
C USTOMER E XPERIENCE
TECH
TECH
LOW WITH LOW
P RODUCT/S ERVICE
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25. Different Quadrants Require Different Approaches
Heart Surgeon General
Practitioner
“Miracle Cure” Friendly Local
Pharmacy
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26. Building An Effective Recruitment System Requires
Answers To Questions
• What am I selling---product, service, commodity, solution, strategic value, partnership?
• What is my value proposition?
• To whom am I selling---user, operational manager, expert, executive, procurement?
• What type of salesperson will the buyer respond to best?
• As a sales organisation, what do we need to succeed?
• What recruitment tools should I use?
• Where do I look for these salespeople?
• How do I build a talent pipeline?
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27. Many Recruitment Tools Do Not Work!!
Hiring success rates aren’t much better
than a coin toss*
Selection Method Improvement Over “Chance”
Typical Interview 1% increase
Personality Tests 1% increase
Experience 5% increase
Scorable Interview 7% increase
* “International Personnel Management Association, Feb. 1999”
Proven accuracy of Chally assessment
25% to 30% better than chance
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29. Talent screening and assessment process
Position Applicant Pool Criterion Qualified Manager
Validated Candidates Interview
Selection Needs Pre-Screen & Screen
Interview Assessment
Recommended or
Qualifications A Recommended
& with Concerns
Experience
A
B
Assessment
Validated Report
A
Profile C C and
Interview
Guide
D D
Predictive C
Skills
and
Behaviours E
F
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31. • Dayton, Ohio based with 37+ years of Research and Development experience
• Founded through a Grant from U.S. Justice Department in partnership with a network
of Universities
• Purpose - to develop a predictive assessment to improve the selection of Law
Enforcement Officers to minimise impact of the pending EEOC law
• Terms of the Grant outlined that Chally could build a business around the assessment
31 and we decided to focus on helping clients select more productive salespeople
32. • The core assessment initially focused on personality and motivation
• However we quickly discovered, via research conducted with our clients, that just
because you are extroverted, assertive and competitive,
It doesn’t mean you can sell!
32 It just means you are extroverted, assertive and competitive!
33. Targeted Marketing
Credit Ratings based on buying
patterns
Life Insurance
Casinos
Short term
insurance
• We decided to re-tool the assessment and leverage the predictive capabilities of the
Insurance Industry which utilizes actuarial sciences
• Actuaries are experts in evaluating the probability of future events—using numbers, not
crystal balls to design creative ways to reduce the likelihood of undesirable events
• It takes a combination of strong analytical skills, business knowledge, and understanding of
human behaviour to manage today's complex risks facing our society
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34. Qualifies with Standard Probes
Negotiates Makes Presentations
• The Actuaries said to throw out the “Personality” theory and to research salespeople to
determine what they actually do (skill) versus how they behave (personality) to achieve
outcomes
• Our Research found that successful performers Negotiate, Qualify, Close, Probe etc.
• We studied large groups, had them take the “re-tooled” assessment with Non Face-Valid
questions and applied an actuarial approach to measuring/predicting likelihood of
34 successful performance
35. • Clients often ask us what non face-valid assessment questions like the ones above
have to do with selling and specifically negotiation and closing
• In reality—nothing. It is not the question but the responses to a series of questions,
compared to a huge database that actually predict someone's potential
• To put into perspective, let’s look at the process an insurance company would use to
establish the rate/premium of car insurance for newly driving teenager
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36. Process the Insurance Industry would apply via Actuarial Science to
establish Rates/Premiums
• In reality—none of the data points above actually have any thing to do with driving
• Yet, collectively and over large samples, they predict likelihood of an accident and influence rates
• This is the same for the assessment - To establish predictability of a competency such as
negotiation
• We administered the assessment to large groups of people that were researched to be either
above average, average or below average in negotiating
• If we found a high correlation (similarity) in how above average negotiators responded to the
assessment, a high correlation (yet difference in responses from above average group) in how below average
negotiators responded, and we could repeat it with similar results—we then had an effective
36 predictor for negotiations.
37. Qualifies with Standard
Probes Makes Presentations
Problem Solving
Negotiates
Develops Sales Leads
Closes Through Logical,
Incremental Steps Maximizes Results Develops Technical
Promotes Growth
Competence
Through Innovation
• As we continued to work with clients, we uncovered many different
competencies/skills/behaviours
• Currently, we have an unparalleled database of 140+ validated competencies based
on scientific research
• Spend 45 minutes answering 288 questions; we collect 866 points of data and
predict the performance of a person, team or organisation on over 140+ validated
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competencies
38. CHALLY CUSTOMERS
WIN MORE DEALS!
An independent research
firm confirmed that
customers who use Chally’s
better science approach
have higher win rates!
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39. Why Benchmarking and Traditional Competency
Modeling Can Fail
2009 Listing of World’s Top 10 Golfers
#1 Tiger Woods #4 Kenny Perry #7 Geoff Ogilvy #10 Vijay Singh
#2 Phil Mickelson #5 Sergio Garcia #8 Steve Stricker
#3 Paul Casey #6 Henrik Stenson #9 Jim Furyk
The following “logical” benchmark competencies (supposed predictors of success) are officially
tracked to measure professional golfers as a measure of success;
a) Driving accuracy d) Ball proximity to hole f ) Putts per round
b) Driving distance e) "Scrambling" g) Sand saves
c) Greens in regulation
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40. Traditional Methods Don’t Always Work!
Would results like this get you excited
about selecting this person?
These were Tiger Woods’s results when he was #1 Golfer
in World!
#93 in driving accuracy #68 in ball proximity to hole REJECTED
#38 in driving distance #9 in scrambling
#71 in greens in regulation #38 in putts per round
• These “competencies” do not predict – scores do!
• What makes Tiger different is he didn’t make fatal errors!! Emphasis on didn’t!!
• How few bogeys, double bogeys, or worse they don’t get...round after round after
round
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41. False Predictors in a Sales Position
Job Competency model that was not working successfully for Fortune 500 company that was developed by Global HR Consulting Firm
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42. Outbound Telesales Predictive Skills
• MAKES PERSUASIVE PRESENTATIONS
• NEW BUSINESS DEVELOPMENT
• ENDURANCE
• ANSWERS OBJECTIONS BY REINFORCING STANDARD FEATURES/BENEFITS
• DEVELOPS RELEVANT PRODUCT KNOWLEDGE SPECIFIC TO CUSTOMER NEEDS
• COMMITS TIME AND EFFORT TO ENSURE SUCCESS
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43. Inbound Telesales Predictive Skills
• IMAGE BUILDING
• PROBLEM-SOLVING
• IDENTIFYING CUSTOMER NEEDS
• MAXIMIZE RESULTS BY MAKING CUSTOMER SATISFACTION A PRIORITY
• MAKE PROFITABLE RECOMMENDATIONS IN A CONTRIBUTOR ROLE
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44. Customer Service Predictive Skills
• WILLINGNESS TO SERVE ALL TYPES OF CUSTOMERS
• USE CUSTOMER CONTACT TO BUILD BUSINESS
• MAXIMIZE RESULTS BY PARTNERING AS A CUSTOMER ADVOCATE
• DRIVEN TO PRODUCE BY CREATING AN ENJOYABLE CUSTOMER EXPERIENCE
• PRACTICAL INTELLIGENCE
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45. If Ready to Utilize the Assessment as
Part of Selection/Development Process
Assessment Applications…
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46. Selection
Selection Report with Hiring
Recommendation (optional
accompanying interview guide)
Measure a candidate or incumbent against key profiles to measure potential to successfully
perform role(s)
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47. Sample
Manager Assessment Report
Describes the candidate’s candor
in responding to questions
Bottom-Line Recommendation
Recommended
Recommended if concerns
addressed can be resolved
Not recommended
The Position’s Job Skills
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48. Sample
Definition of skill and graphic
rating of level of competence
Prediction of typical on-the-
job behaviors and limitations
Practical coaching tips for
training and development
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49. Sample
Motivation or habit that
is very evident in the candidate
(+70% or
-30%)Suggestionsto other
compared for a manager to
successfully employed individuals the
best focus and motivate
candidate
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50. What Our Clients Say About Chally
• Predictive and accurate data
• Customizable to specific job requirements
• Objective findings and analyses
• Provides access to an extensive database and research
• Helps reduce costly employee turnover ≥ 30%
• Helps improve employee productivity ≥ 35%
• EEOC-compliant - reduces legal exposure
• Data has long-term value
Chally’s extraordinary science, applied to measures of Sales Force
performance, enables our customers to realize greater
productivity and profitability.
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51. Q&A
Peter Gilbert
CEO HR Chally SA
PO Box 3070 Dainfern 2055
Cell: 0825521306
peter@challysa.co.za
www.chally.com