December 2005

Holding myself accountable for 2005

You know that my mantra is accountability. So, since it’s nearly the end of the year, I’d like to see how predictions regarding my top sales issues for 2005 fared over the past 12 months and how they stack up for 2006.

1. The Frustration of Commoditization
2. Chronically Missing Quota
3. Excuse Erosion
4. Shortening the Sales Cycle

This year, like last, I invite you to email me your top sales concerns—past and current—so I can make this e-letter most meaningful to you.

1. The Frustration of Commoditization

Since value differentiation continues to be critical for preserving and enhancing margins, I believe that for 2006, margin and profit growth are greater challenges than market share growth.

Here’s why I believe this. Out of 2,700 Twin Cities presidents and CEOs that we surveyed, here’s what we found:

• 30% say that they are facing increased pressure from globalization.
• 51% are dealing with increased competition from corporate giants.
• 62% said that even though they were pleased with the margin enhancements from decreased operational expenses, they were not totally pleased with the margin gains from their sales organization.

I’m not surprised. Our research (from Objective Management Group) indicates that up to 1/3 of sales people have a flawed belief system that prevents them from selling at higher margins.

How many salespeople on your staff have these weaknesses? How much is it costing you in unrealized revenues and margins? If you want to guard your company against commoditization and if you’re currently struggling to grow margins from sales, call me for information about an upcoming workshop.

2. Chronically Missing Quota

76% of these same survey respondents indicate they have salespeople missing quota. While training and coaching can enhance existing talents and close performance gaps, they cannot compensate for the wrong person in the job.

In our ongoing research, we’ve identified 18 areas a company must assess that can dramatically reduce sales ramp-up time and start-up costs.

In 2006, we’re launching a new process that we are calling STAR, for Sales Talent Acquisition Routine. One of the most common hiring mistakes we encounter is hiring decisions being based solely on an interview—this approach generates a weak 14% success rate. With the STAR process, we increase the success rate to 95%.

We can work with you to implement the STAR process so that you can increase the effectiveness and efficiency of hiring No Excuse sales people.

3. Excuse Erosion

Today, more than ever before, I believe that the responsibility for lack of accountability begins and ends where the organization’s culture is formulated—at the executive level. When leadership accepts excuses for non-performance, the blame-game thrives, and the organization stagnates.

Day after day, business leaders complain to me about the unending list of “reasons” for non-performance that their sales staff come up with:

• Our prices are too high.
• Our advertising is ineffective.
• We can’t compete against corporate giants.
• My territory is too large.
• My prospects don’t understand.

These leaders want to know:

• How can I hold my people accountable to results?
• How can I help my people hold their people accountable for results?

4. Shortening the Sales Cycle

With continued focus on profitability, it will be essential to monitor the sales process to know when to keep the prospect ball moving or when to tossing it out of the game. A plump pipeline that doesn’t materialize in business reflects the lack of a disciplined sales management system. Over 65% of salespeople are prone to pipeline bloat.

To learn how one company streamlined pipeline management and increased sales, read our case study about how Sales Growth Specialists helped XSYS Print Solutions Hit a Home Run.

Wishing you a purposeful and profitable new year!

Danita

If you would like someone in your organization added to, or you would like to be removed from this e-zine, send a reply to danita@salesgrowthspecialists.com