Roadmap for Sales Recruiting Success

By W. D. Cravenor

Sales recruiting, with all its analytics and fineries is, in the final analysis, a craps shoot.

One would think that future performance—based on responses to numerous traditional evaluation methodologies—could be predicted, however this is not so. Ultimately the desire exhibited by a prospective new hire is the “x” factor that eludes all analysis models, despite claims to the contrary.

What constitutes the greatest factor(s) resulting in the complication of the decision making process, thereby frustrating all attempts that would otherwise lead to a successful hiring decision? Generally speaking, the following two factors result in new hire decision failures:

1. The prospect underestimates the difficulty of the job.

2. The prospect overestimates her or his ability to meet minimum performance expectations associated with the job.

Given these two considerations, what must employers do to keep these two factors from wreaking havoc in their recruitment and retention best practices? The one word answer is disclosure.

Employers are frequently not willing to divulge the nitty gritty aspects of a position in question, choosing to give greater focus to the clinical list of requirements contained within what is communally referred to (in HR speak) as the all encompassing “Job Specification”.

While Job Specifications generally perform well in apprising the candidate of the minimum requirements and expected functions, or even desired outcomes, HR’s performance in communicating exactly how the work will be accomplished to meet minimum expectations is abysmal.

Why?

While my view is not necessarily supported by empirical research, suspicion dictates that the HR professional tasked to write the job description & specification, (hopefully with some help from the functional department manager), while being well intended, is the last person in the organization who should be responsible to cipher the “how” question.

Obviously, if everyone involved in the hiring process understood the answer to this question, the 80/20 rule would become a thing of the past—but it is not.

So we muddle through, as looking in a brass mirror, seeing some reflection but knowing all the while that the truest picture will never come into focus without the passage of time.

Time is the ultimate vindication of all hiring decisions. When you factor in short terminations for sales positions (less than 1 year in tenure), time reveals that—from a purely functional basis—hiring decision makers get it wrong over 80 % of the time.

What can be done to improve this performance? Here are a few recommendations:

1. HR should consult with the hiring manager and a select committee of at least three top 20 (%) producers, who have been in the position for at least two consecutive years, for the purpose of developing “action statements” related to how performance was achieved. These action statements should be incorporated into the job specification as examples of expected performance attributes.

Concentration should be given to real-world, street-level activities, actions and mindset that lead to the accomplishment of stated performance goals & objectives.

2. Have one of your “top 20” select committee team members conduct a Discovery Process (DP) with the candidate in question.

The DP contains four action steps, as follows:

Step 1 Defeat, in the candidates’ mindset, any notion related to the simplicity of achieving position-related expectations by providing real world, position-specific details, constituting a no holes barred full disclosure of the challenges presented. A complete review of the action statements contained within the job specification should be undertaken to insure the candidate has a correct interpretation and understanding. A Q & A session should be conducted with the candidate to confirm understanding.

Step 2 Defeat the candidate’s overestimation of her or his own ability by setting up a real world, field-based Operational Scenario (OS) that is preset for failure. If the candidate can survive this failure in a real world setting without loosing composure, they will become more open to Coaching for Success (CS). A loss of composure in the presence of failure is also telling in determining the future viability of a candidate. “The same sun that softens the wax hardens the clay.”

Step 3 Based on management’s review of the results of the OS and the candidates’ willingness to continue in the DP, have the same top twenty producer, along with a second rookie (less than twelve months of tenure) continue the DP by debriefing the candidate on exactly how they have achieved expectations, providing detailed information & explanations of their day-to-day activities, attitudes and recommendations for future performance. The candidate should be given ample opportunity to ask questions and get feedback on their Action Plan for Success (APS). The APS should be requested from the candidate prior to step 2.

Step 4 Conclude the DP by:

A. Step 2 & 3 OS employee participants complete a Prospective Peer Evaluation Form, (PPE) indicating their recommendation to HR and management regarding the candidates’ viability in the position on a host of criteria.

B. Management, in conjunction with HR, makes a final hiring decision, taking all traditional evaluation methodologies, (Targeted Selection, et al) into consideration, along with their supplemental evaluations related to the DP, OS, CS, APS and PPE, advising the candidate of their determination.

C. The recommending Step 2 OS employee participant will serve as a CS Mentor, working with the new hire, either locally (preferred) or virtually to begin performance evaluation in concert with the new hires’ APS and direct line management.

Deployable Virtual Training Environment (DVTE)

Here is a good article discussing how the USMC is leveraging DVTE's:

From Wikipedia, the free encyclopedia

The Deployable Virtual Training Environment (DVTE) is a laptop based platform for a wide variety of training simulations in the USMC.TRASYS web. DVTE consists of two main components, the Combined Arms Network (CAN) and the Infantry Tool Kit (ITK). The current version of the CAN was developed by the ONR VIRTE program as part of its Demo 3 and is based on the JSAF simulation. It uses the Open Source Delta3d toolkit for visualization. Each laptop can be reconfigured to simulate a variety of USMC platforms including the M1 Abrams, Amphibious Assault Vehicle (AAV), LAV-25, AV-8 Harrier II, and the AH-1 Cobra. A typical DVTE suite consists of 32 laptops and a modified NVisor SX Head-mounted display (HMD).
The Infantry Tool Kit consists of a number of stand-alone games and simulations. The main simulation is a first-person shooter called VBS. Other applications include: the DARPA developed DARWARS Tactical Iraqi (part of the Tactical Language & Culture Training System family) and the ONR developed Close Combat: Marines, MAGTF XXI, and TacOps MC.
Retrieved from "http://en.wikipedia.org/wiki/Deployable_Virtual_Training_Environment_(DVTE)"

Attitude

Years may wrinkle the skin, but to give up enthusiasm wrinkles the soul.-- Samuel Ullman

http://www.theattitudemovie.com/?SRC=DAILY09&utm_source=Walk+the+Talk+Master+List&utm_campaign=c850357da7-DM_02_24_09&utm_medium=email

From Walk the Talk and M. Anderson, Great words to inspire great attitudes...use this to build results!

A Pragmatic Approach to Developing a Center for Excellence (C4E)

A Pragmatic Approach to Developing a Center for Excellence (C4E)
in
Performance Improvement

A Proposal Targeted to Sustain Enterprise-Wide Continuous Improvement

Presented
To
Mr. Rich Mattern, CEO
Raymond Handling Solutions, Inc.

By
W. D. Cravenor
SunChase Consulting,
a division of SunChase Products, Inc.

April 17, 2008
Aliso Viejo, California

I. Purpose

Establish a Center for Excellence (C4E), to be instituted as a forum to facilitate and foster the development of departmental performance expectations targeted to sustain enterprise-wide continuous improvement.


II. Process

Phase 1 – Perform baseline departmental performance measurements based on the criteria as detailed in section IV below.

Phase 2 – Establish Specific, Measurable, Attainable, Relevant and Time-Specific (SMART) departmental performance expectations/goals.

Phase 3 – Perform a variance analysis of actual departmental performance to established expectations.

Phase 4 – Develop written action plans to address all negative variances to expectations, including specified timelines for the restoration of performance to expectations. The internal designation for this initiative is Dealer Review and Action Plan, or DRAP. Point values should be assigned to measurement categories to designate achievement of planned expectations which should be used in consideration of merit increases, promotions/demotions and/or terminations.

Phase 5 – Quantify results—Actual to Plan, (DRAP).

Phase 6 – Revise Expectations & Action Plans as necessary to facilitate continuous performance improvement.

Phase 7 – Develop and implement Center for Excellence (C4E) quarterly and annual awards for performance above expectations.


III. Payoff

By implementing the aforementioned C4E, the following benefits should result:

1. RHSI will achieve continuous departmental performance improvement.

2. RHSI will meet and/or exceed fiscal (EBITDA) goals.

3. RHSI customer satisfaction will be enhanced.

4. RHSI will experience increased market share.

5. RHSI employees will generally experience an improvement in their overall quality of life.

IV. Departmental Performance Expectations Development

Key departmental metrics should be established for each operating RHSI department and compared to plan, as follows:

A. Sales

1. Gross Profit (GP) (for the period) to plan

2. Gross Sales (GS) (for the period) to plan

3. PNTR to plan

4. PUTR to plan

5. Number of New trucks sold to plan

6. Number of Used trucks sold to plan

7. Number of new logos (new, first time accounts) sold

8. % new logo GP to total GP

9. % new logo GS to total GS

10. Weighted Funnel Value to Weighted Funnel Value Standard, as follows:

Activity/Sales Cycle Identifier Weighted Funnel Value
Prospects 0% of dollars in play
Qualified, First Meeting w/ UDM 25 % of dollar in play
Presentation, Proposal Issued 50 % of dollars in play
Sold, Written Order Confirmation 90 % of dollars in play
Closed, Delivered and Paid 100% of dollars in play

Total all accounts to arrive at Weighted Funnel Value. A Spreadsheet is available to track this upon request.

Tip: For Account Manager’s, Weighted Funnel Value should be equal to or exceed 3X their monthly quota.

For new hires use ramp quota, as follows:

Months on Job % of Full Quota
1 – 3 0 %
4 25 %
5 33 %
6 50 %
7-8 66 %
9-11 75 %
12 Months or more 100 %

11. Activity Measurement to Plan, as follows:

· Prospecting – dials, door knocks, business cards collected
· Discovery – first appointments and follow-up appointments
· Proposal – Proposal Dollars to Plan per period

12. Close Ratio to plan – Use Total $ Sold/Total $ Presented, as follows:

Tenure in Position Recommended Close Ratio
1-2 Years 33 %
3-5 40 %
6-8 50 %
> 8 years 65 %

Major Account Managers should utilize the GSSBI Model to overcome pricing objections and facilitate the translation of acquisitions from an expense to investment on the client’s balance sheet. Additional details and training relative to GSSBI component strategies are available upon request.

13. Systems $ Sold to plan

14. Allied $ Sold to Plan

15. Customer Satisfaction Ratings to Plan

16. Employee Retention, (all personnel carrying quota) to plan

17. Lost Sales to plan, as follows:

· Deal count
· $ count

18. Pump-in, sales generated out of assigned market, but delivered in market, to plan.

19. Pump-out, sales generated by HRSI personnel for product/services to be delivered to clients outside of the RHSI coverage area.

20. Ratio of Pump-out to Pump-in. Use 1.2 (pump-out) : 1.00 (pump-in) as a starting guide.

B. Parts

1. GP Wholesale Sales to plan

2. GS Wholesale to plan

3. GP Front Counter to plan

4. GS Retail

5. Lost sales to plan, as follows:

· W/S
· R/S

6. Inventory turns to plan, as follows:

· Total
· Fast Moving

7. Obsolescence Reduction to plan, as follows:

· % of total inventory
· $ amount
· Number of SKU’s

8. Customer Satisfaction rating to plan

9. Employee Retention

10. Training/Proficiency Certifications

C. Credit

1. Collection Activity to plan, as follows:
· % of Sold and Delivered accounts paid within 30 calendar days
· % of Sold and Delivered accounts paid within 60 calendar days
· % of Sold and Delivered accounts paid within 90 calendar days
· % of Sold and Delivered accounts paid within 120 calendar days

2. Bad Debts Management/Collections to plan, as follows:
· Total $ bad debt for period
· % total $ bad debt to total $ billed 1-120 days aging
· % bad debt collected to bad debt billed
· Total $ bad debt collected to bad debt billed

3. Customer Satisfaction rating to plan

D. Shop/Service

1. GP Labor (Warranty, W/S, R/S, Used) to plan

2. GS (Warranty, W/S, R/S, Used) to plan

3. GP per WO, to plan

4. GS per WO, to plan

5. Total flagged hours to plan

6. Average flagged hours per headcount to plan

7. Training Certification

8. Customer Satisfaction rating to plan

9. Average Response time to Standard

10. Average Repair time to Standard

11. PDI completion time to Standard

E. Customer Service

1. Customer Satisfaction

2. % Work Orders closed as promised, as compared to plan

3. Sales by Category to plan, as follows:

· Batteries
· CFPM
· RSM
· Allied
· Labor
· Rentals

4. GP by Category to plan, as follows:

· Batteries
· CFPM
· RSM
· Allied
· Labor
· Rentals

F. Used/Rental


1. Number of units rented in period versus standard

2. Number of units available to rent versus standard

3. Number of rental days booked in period versus standard

4. % booked days to total available days versus standard

5. Rental GS in period versus standard

6. Rental GP in period versus standard

7. Lost Rental $ versus standard

8. Lost Rental days versus standard

9. Battery/Charger GS to plan

10. Battery/Charger GP to plan

11. Customer Satisfaction rating to plan

12. Parts & Labor Cost Containment vs. Plan

G. Transportation

1. GP transportation sales versus standard

2. GS transportation versus standard

3. Total units transported versus plan

4. Customer Satisfaction rating to plan

V. Concluding Remarks

The proper implementation and administration of the DRAP will permit the dealer principle and other members of executive management to optimize expense control and gross profits, increasing EBITDA while providing enhanced clarity and speed in the diagnosis and treatment of performance deficiencies.

As a result, enterprise continuity is accentuated and the reliance of staff on the interdependence of departmental operations is heightened. DRAP spotlights performance below expectations, permitting quick identification, before it can propagate across departmental boundaries, infecting up-line functional areas.

I have effectively used DRAP in working with over 21 Mazda dealers in Southern California, resulting in the migration of my assigned district from last to first in the Pacific Region. If you would like additional information relative to Funnel Management or GSSBI training, please call 949-338-7387 or email at wcravenor@sunchasecorp.com .

Good Selling!

Curriculum for Sales Staff (front-line, client facing):

By W. D. Cravenor

Target Area: Attitude & Motivational Orientatiion (AMO):

AMO Modules:
1. Goal & Objective Orientation – SMART
2. Opportunity Ownership–Attitudes & Abilities
3. EPIP Guidelines & Enforcement
4. EEOC Policy – Discrimination & Harassment in the Workplace

Target Area: Field Sales Planning Fundamentals (FSPF):

FSPF Modules:
1. Personal Income/Sales Performance Development Plan
2. Components of Successful Field Sales Business Plans – SMART Goals
3. Target Markets
4. Prospecting Methodologies – Resources & Utilization
5. Activity & Active Sales Funnel (ASF) Goals
6. Closing Ratio and EBITDA Forecasts
8. Business Plan Execution Guidelines
9. Product & Sales Certification – Requirements & Completions

Target Area: The Sales Cycle Defined (SSD):

SSD Modules:
1. Business Plan Review – Plan your work, work your plan
2. Prospect Planning – Daily, Weekly, Monthly
3. Cold Calling Techniques
4. The Client Qualification Process - UDM Identification & Related Parties
5. Discovery – The GSSBI Model
6. Presentation Planning & Execution Fundamentals
7. Overcoming Objections – Methods & Desired Outcomes (ACAC Model)
8. Closing – Techniques & Skills
9. Active Sales Funnel Utilization & Maintenance
10. Order Quality Management & Procedural Guidelines for Success (Booked Business)

Target Area: Building Back-Office Efficiencies (BBOE):

BBOE Modules:
1. Product Certification Training
2. Activity Tracking - Utilizing the Shipman/DEI Model
3. Funnel Metrics - The Shipman/DEI Model
4. Sales Performance Planning
5. Account Management
6. Territory Management
7. Time Management


Target Area: Career Development Planning (CDP):

CDP Modules:
1. Fundamentals of Business Communications
2. Career Plan Preparation Guidelines
3. Writing Your Career Migration Plan

Curriculum for Sales Management (Managers - VP’s):

By W. D. Cravenor

Target Area: Recruitment & Retention (R&R):

R & R Modules:
1. Targeted Selection – The DDI Model
2. EPIP Guidelines & Enforcement - Managing Performance below Expectations
3. EEOC Policy – Discrimination & Harassment in the Workplace
4. Headcount Management – How, Who, Where, Why and When to Hire
5. Replacement Theory

Target Area: Sales Management Fundamentals (SMF):

SMF Modules:
1. Business Plan Preparation Guidelines
2. The Sales Cycle – Block and Tackle
3. Sales Process Management – The “GSSBI” Model
4. Time Management
5. Activity Management
6. Funnel Management
7. Territory Management

Target Area: Attitude & Motivational Orientation (AMO):

AMO Modules:
1. Managing Employee Motivations - (DDI)
2. The Why vs. How of Sales Management

Career Development Planning (CDP):

CDP Modules:
1. Managerial Communications - Leveraging Tact & Diplomacy for Desired Results
2. Career Plan Preparation & Review Guidelines
3. Writing Your Career Migration Plan
4. Fundamentals in the Assessment of Staff Career Migration Plans

Training's “Bill of Rights” by W.D. Cravenor

By William D. Cravenor, M.I.M.

1. Training is not just a box on the organization chart–it is everyone’s responsibility

2. Training is a continuous activity–it never stops

3. Training should promote continuous improvement–good enough is never good enough

4. Training involves day-to-day communication with staff–to exhort, encourage, and exchange ideas for process, performance and revenue improvement

5. Training (in a formal classroom setting) should not consume peak sales time (7 AM to 7 PM), i.e., brown bag lunches, if necessary

6. Training should be progressive–leveraging technology (VLE’s) to connect staff to core competencies

7. Training is pragmatic–meeting the real-world needs of real people to produce real results

8. Training is spontaneous–addressing needs in a timely fashion before they become problems

9. Training is specialized–to meet the specific demands of individual staff in their position and level of maturation

10. Training is localized–if at all possible, should be conducted in the closest proximity to the location wherein desired results are to be achieved

11. Training is results based–there are no substitutes for desired results

12. Training is dynamic–quickly adapting to the changing needs of employees