outperform their quota, don’t punish them by raising their quota or by reducing what might be a “windfall” commis- sion. Instead, make it financially worthwhile for top per- formers to continue to perform at their very best – without expecting them to work a quarterly miracle. Strategy #8. Make sales contests memorable. Think of a sales contest as an internal marketing campaign. To get people excited, offer something unusual enough to cre- ate buzz and keep people interested. Unique prizes need not cost a great deal of money. Think “signed photo of a famous celebrity” rather than “gift certificate at the local mall.” One word of warning, though. Don’t use contests to patch over a flawed compensation plan. Contests are sup- posed to make working more fun; they’re not an excuse to pay less than the competition.
Strategy #9. Simplify your compensation plan. Many sales compensation plans are a welter of weird rules and exceptional cases that have little rhyme or reason. When sales professionals read a sales plan, it should be immedi- ately apparent what the company is trying to accomplish with that plan, and what a sales professional must do to prosper under it. Here’s a rule of thumb: If your plan has more than three or four objectives – or can’t fit on a single sheet of paper – it’s too complicated. Strategy #10. Avoid metrics that sales can’t impact. Compensation plans based upon events outside the sales team’s control can’t possibly provide any motivation to change behavior. Metrics should always be within the scope of what the sales professional can personally im- pact. For example, compensate your “hunters” for acquir- ing new and potentially important customers – regardless of the initial size of the order. Similarly, compensate your “farmers” for revenue and revenue growth inside estab- lished accounts.
PART ANATOMY OF A SUCCESSFUL SALES LEADER 3
Strategy #11. Become a catalyst for change. Over the past few years, the average tenure for a sales vice president has shrunk from 22 months to 19 months. The rapid turnover reflects a general failure on the part of sales management to adapt their sales activities to new market conditions. CEOs want sales managers who can manage change – and, if it doesn’t occur, CEOs change sales management.
Therefore, the number-one job for sales management is the process of adapting to new circumstances. Strategy #12. Create a culture of celebration. In realty
offices, it’s traditional to ring a bell when somebody makes a sale. The more that bell rings, the more people are inspired. Be sure to celebrate not just the big wins, but the little wins as well. Ultimately, the issue isn’t how much money was made today, but how you create a sales culture where winning seems like an everyday part of working life. Strategy #13. Don’t reward on the cheap. Make sure your winner’s circle award isn’t just an average corporate meeting. Don’t hold it at the local Raccoon Lodge and fill the podium with phony corporate-speak. Put on a world-class show with great entertainment – not just for the winners, but also for the winners’ families. Remember, the winner was successful because they were willing to sacrifice, too.
Strategy #14. Ignore the doubters. When you’re making changes, there will be doubters who sit on the sidelines and grouse. Don’t listen to them; don’t even deal with them. Change is tough – and getting people to follow your lead requires you to change their minds. You must figure out what you’re about and where you’re going, and then get enough faithful disciples to follow you. Then, you must become a role model and build momentum after success. However, if you listen to the “wait and see” crowd, you will fail because then they – not you – will be dictating the pace of change.
Strategy #15. Focus on pipeline, not quota. Most sales managers focus on sales quotas. However, it’s usually more productive to focus on the pipeline, because that’s where the marketing and sales machine works. Rather than fuss- ing over how the current quarter will turn out, you’re better off ensuring you’ll have the pipeline to substantiate the achievement of your long-term sales goals over the next 12 months.
Strategy #16. Become a source of inspiration. Top sales professionals aren’t in sales solely for the money – they’re in sales because it’s a vehicle to uncover the hidden potential that is inside them as individuals. Good sales leaders are coaches who can help people discover their talents. Great sales leaders know how to coach each individual so unique strengths emerge. Outstanding sales leaders go beyond this, creating meaningful experiences that help sales professionals connect with their basic goals and needs.
Strategy #17. Think like a general manager. Most sales managers don’t like their CFO, and – as soon as the CFO starts talking about the bottom line and the cost of sales – the defense mechanisms go up. A better approach is for the sales manager to think like the general manager of a service business. As a general manager, you’ll want to understand more than just quarterly quotas; you’ll want to
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