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Sales Management Association Webcast
16 July 2013
Presented by
How Excellent Sales Competency
Models Make Excellent Sales Forces
#salescompetency
@SMAssociation
About The Sales Management Association
A global, cross-industry professional association for sales
operations and sales management.
Focused in providing research, case studies, training, peer
networking, and professional development to our membership.
Fostering a community of thought-leaders, service providers,
academics, and practitioners.
#salescompetency
@SMAssociation
Today’s Panelists
#salescompetency
@SMAssociation
16 July 2013
Presented by
How Excellent Sales Competency Models
Make Excellent Sales Forces
Sales Management Association Webcast
#salescompetency
@SMAssociation
Topics to cover
Agenda
Impact of the changing
environment on sales forces
Approach to competency
model development
Tactics for integrating
competency models
How sales force assessment
and coaching tools can
enable higher quality,
objectivity and consistency
Q&A
Objectives of
Today’s Discussion
Discuss best practices in
designing and integrating sales
force competency models
#salescompetency
ZS Associates is a global leader in sales and marketing consulting, software and outsourcing
Full range of commercial services
Broad and integrated service portfolio delivers high
impact and exceptional value
Worked with more than 700 companies in over
70 countries
Over 2,100 professionals in 20 offices worldwide
BARCELONA • BOSTON • CHICAGO • EVANSTON • FRANKFURT • LONDON
LOS ANGELES • MILAN • NEW DELHI • NEW YORK • PARIS • PHILADELPHIA
PRINCETON • PUNE • SAN DIEGO • SAN FRANCISCO • SHANGHAI • TOKYO
TORONTO • ZURICH
Books
Press
Thought Leadership in Sales and Marketing
Over 30 Years Helping Companies Grow
We work with our clients to improve the productivity of their sales organizations
SALES FORCE DESIGN
Effective & efficient coverage of the full target
account universe with a structure & deployment that best fit the value
proposition & sales process strategies
SALES STRATEGY
Customer-focused strategy targeting the best growth
opportunities with differentiated &
mutually valuable offerings
CUSTOMER ENGAGEMENT
PROCESS
Customer-focused & expertly
executed sales processes &
planning that maximize mutual value &
trust
PEOPLE & SKILLS
Sales managers & salespeople with the knowledge,
skills & attributes required to excel at their respective
roles & responsibilities
MOTIVATION
Highly motivated, performance-
focused & accountable sales force committed to “getting it done” &
“doing it right”
SALES OPERATIONS
Highly efficient support capability that provides the sales force with the information, expertise, speed-to-market & efficiency needed to achieve superior performance
Sales Force Effectiveness
Six basic conditions are required for sales force effectiveness
Sales forces are facing a challenging business environment…
Increased competition
Greater pressure on price
More knowledgeable customers
Evolving buyer
(i.e. buying teams)
Alternative buying channels
More complex value propositions
This new environment is causing firms to reexamine how they build, develop, and guide their sales forces
The changing environment demands a more nuanced sales approach
and a different skill set than traditionally required of sales reps
Firms can identify the “right” talent and encourage the desired
behaviors by moving toward a competency model approach
#salescompetency
We often find that the average sales person represents the greatest opportunity for incremental success
# o
f R
ep
s
Rep Performance
LOW PERFORMERS AVERAGE PERFORMERS HIGH PERFORMERS
Bottom 20% Middle 60% Top 20%
Implementing a sales force competency model can drive results and encourage cultural change
Firms saw changes within the sales force and
Increased focus on improving
the capabilities of the “average”
sales rep, driving significant
upside
Noticed a cultural change as
learning becomes as important
as training
Were better able to position
sales reps with the right
capabilities in the right roles
Achieved better sales results
Guiding principles in competency model design
Develop the model based on a limited number of dimensions specific to your company's strategy 1 Organize your competency dimensions around your sales process 2 Define a clear, objective, and specific picture of the knowledge, behaviors, and skills for each dimension along a continuum 3 Consistently and explicitly incorporate the competency model into each element of your talent program (hiring, training, performance reviews, coaching, rewards, and recognition) 4 Enable sales managers to leverage the competency model to increase their effectiveness 5 Adopt a top-down and self-assessment competency process to identify individual and organization developmental needs 6
#salescompetency
Customer Environment
Customer Needs
Buying Process
Competition
Socioeconomic &
Regulatory Environment
Sales Force
Strategy
Segmentation
Value Proposition
Sales Process
Sales Force Design
Competency models that are specific to sales force strategy are the foundational element for effective talent management
A sales force competency model….
Summarizes the knowledge, skills, and attributes most critical to success
Defines these key characteristics across a continuum of performance levels
Is specific to the sales force strategy and sales process, driving the desired objective for the firm
Is built based on input from key constituents including sales management, sales reps,
commercial operations, training, etc.
Influences all aspects of talent management from hiring to career progression
Competency
Model
Role
Expectations
229 132
124
123
205 150 100
113 121
104 115
103
122
102
212 120
161 101
140 107
225
226
227
111 112
106
116 130
152
160
Performance frontier analysis is used to identify top performers and determine key factors that separate the best from the rest
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
0 50 100 150 200 250 300
Sale
s (
$000s)
Sales Potential Index (Average = 100)
Sales vs. Sales Potential Index
131
Root cause diagnosis can
be achieved by measuring
differences in behaviors,
activities, skills,
knowledge, and will
Sales competencies should align around the sales process rather than general capabilities
Old: Generic Dimensions
Busin
ess A
cum
en
Com
munic
ation
Motivation &
Pers
iste
nce
Manag
ing
Conflic
t
Team
work
Urg
ency
Tim
e M
anag
em
ent
Pro
duct K
now
ledg
e
Custo
mer F
ocus
Influence
Account T
arg
eting
Org
aniz
ation S
avvy
Tools
Know
ledg
e
& U
se
Targeting, Territory & Funnel Management
Account Planning
Call Planning
Customer Needs & Opportunities Assessment
Offering & Value Proposition Development, Communication & Proof
Negotiations
Service & Support
Value Reinforcement, Account Penetration & Pull Through
New:
Specific Value-based
Selling Dimensions
1
2
3
4
5
6
7
8
Contextually woven into the new, value-based
dimensions where appropriate
Illustration
#salescompetency
Behavior-based competency dimensions should be defined across proficiency levels
Competency
Dimensions Beginner Skilled Advanced Expert
Dimension 1
Dimension 2
Dimension 3
…
Capability Levels
Dimensions are specific to the sales
strategy and are the most critical
drivers of success in the role, e.g.
Targeting, territory & funnel
management
Account planning
Call planning
Levels provide four buckets along a
sales proficiency continuum where
each competency can be described
Each cell captures the specific behavior, knowledge,
and skill building blocks required to demonstrate
success in that competency for each respective level
Aptitude Personal
Characteristics
Skills Knowledge
Behaviors
Detailed behaviors and skills associated with each competency ensure expectations are clear
Advanced Exhibits all Skilled criteria plus:
Is a visible proponent and mentor for targeting,
territory and funnel management within the
sales organization
Consistently optimizes their effort allocation
by analyzing account level potentials AND likely
win rates AND effort requirements in
combination
Always maintains a well balanced pipeline with
an appropriate number of opportunities at each
stage in the pipeline to maximize personal
productivity over the course of the year
Places disproportionate effort against the set
of accounts that will make or break their year
Executes a prospecting and account qualification
process (new accounts), and opportunity I.D.
and qualification process (existing accounts) that
consistently ensures high-quality leads within
their funnel
Demonstrates superior judgment about when
to “walk-away” from unattractive opportunities
Does not let themselves get pulled in to lower
value opportunities at the expense of higher
value opportunities
Skilled
Recognizes that effective targeting,
territory and funnel management
significantly impact performance
Maintains and regularly reviews
accurate pipeline data
Understands the concept of
addressable potential and how
to use account potential estimates
Categorizes and prioritizes
accounts for purposes of coverage
based on addressable potential
Explicitly plans and executes
an effort allocation plan across
accounts that takes into account
their workload capacity
Allocates effort to accounts,
activities and products in
accordance with the sales strategy
Spends an appropriate amount
of time with their most important
accounts
Beginner Expert Exhibits all Advanced criteria plus:
Has not had the opportunity
to demonstrate
competency
Has had the opportunity to
demonstrate competency,
but did not meet skilled
criteria
Individual Sellers
Coordinates and leads
cross channel or cross
team targeting, territory
management and funnel
management within
accounts leading to
optimal allocation of effort
team-wide
First Line Managers
Facilitates cross channel
targeting, territory
management and funnel
management with direct
reports
Coaches direct reports
on best practices for
targeting, territory, and
funnel management
Example: Targeting, Territory & Funnel Management Illustration
Sales competencies are viewed as a single continuum along which individuals will continue to develop
Competency
Dimensions Beginner Skilled Advanced Expert
Overall Rating
Targeting, Territory &
Funnel Management
Account Planning
Call Planning
Coaching
Etc.
Inside Sales Representatives Account Sales Representatives Key Account Managers District Sales Managers
Illustration
We do not expect all roles to
engage in all competencies
#salescompetency
Successful competency models are integrated into the full spectrum of sales force talent management activities
Unless fully operationalized across all activities, the model
will not drive the desired behaviors and outcomes
Hiring & Selection
Process
Training
Performance
Review Content
Coaching Process
& Tools
Career Progression
Sales Talent Management
Customer
Environment
Sales
Force
Strategy
Competency
Model
Role
Expectations
A team of constituents should collaborate on how to embed the model into all activities from hiring to promoting
Hiring & Selection
Process
Training
Performance
Review Content
Coaching Process
& Tools
Career Progression
Competency
Model
Role
Expectations
Since key constituents are involved early in the process,
support for the competency model approach is cultivated
During the hiring and selection process, the model directly informs the role profile, interviews and evaluation
Competency-based
Hiring Materials
Account Planning
Targeting, Territory & Funnel
Management
ABC Housing
Hiring & Selection
Process
Training
Performance
Review Content
Coaching Process
& Tools
Career Progression
Competency
Model
Role
Expectations
Using the model, HR and Sales can determine a hiring strategy
based on behavior and skills to hire on versus train
#salescompetency
By organizing on-boarding around competencies, everyone understands where and how training fits
Legend Sales Rep Onboarding
ABC’s
Products
Account
Planning
Sales
Dashboard
KPI
Package Negotiation
Business
Planning
Feedback /
Coaching
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7
Co
mp
ete
ncie
s
Accountability/Perf Focus
Coaching
Performance Management
Account Planning
Customer Needs
Assessment
Motivating the Team
Hiring
“Intermediate” (“201”)
“Introductory” (“101”)
“Advanced” (“301”)
Illustration
On-boarding and early training can be customized to focus on
developing competencies identified during the hiring process
Hiring & Selection
Process
Training
Performance
Review Content
Coaching Process
& Tools
Career Progression
Competency
Model
Role
Expectations
Once the competency model is defined, web-based tools can streamline the top-down and self-assessment process
Hiring & Selection
Process
Training
Performance
Review Content
Coaching Process
& Tools
Career Progression
Competency
Model
Role
Expectations
Sales managers and reps assess progress on the dimensions delineated in the competency model
Sales managers construct development plans, guiding career “next steps”
based on competency development as well as results
Competency
Dimensions Beginner Skilled Advanced Expert
Overall Rating
Targeting,
Territory &
Funnel
Management
Account
Planning
Call Planning
Coaching
Etc.
Self-Assessment Manager’s Assessments
Position Expectations
Business or Country Average
Previous Period Score
Hiring & Selection
Process
Training
Performance
Review Content
Coaching Process
& Tools
Career Progression
Competency
Model
Role
Expectations
#salescompetency
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1 1.5 2 2.5 3
Quantitative performance metrics coupled with competency ratings allow for tailored development plans
19
29
27 12 21
11 20
35 1
34
13
24
14 22
5 17 3
7 8
23
32 10
31 30 28
9 6
2
26 25 15 18 16
37 37 33 36
Pe
rfo
rma
nce
“Ge
ttin
g re
su
lts”
Competency “Doing it right”
HIGH
LOW HIGH
Coaching / skill
development
Reward
and recognize
Identify
development path
Career options
Evaluate
performance
barriers –
motivation?
Hiring & Selection
Process
Training
Performance
Review Content
Coaching Process
& Tools
Career Progression
Competency
Model
Role
Expectations
Using the lens of the competency model, sales managers provide targeted coaching to reps between reviews
ABC Housing
Hiring & Selection
Process
Training
Performance
Review Content
Coaching Process
& Tools
Career Progression
Competency
Model
Role
Expectations
By creating tools, sales managers use the competency model
to track and guide the coaching and training of sales reps
The competency model should have consequences, guiding reps’ career progression
Competency-linked
Career Progression
Promotion
Talent Management
Program Selection
Performance
Improvement Plans
Terminations
Hiring & Selection
Process
Training
Performance
Review Content
Coaching Process
& Tools
Career Progression
Competency
Model
Role
Expectations
Coupled with sales results, success against the competency model determines the
candidates to promote into key positions
#salescompetency
Introducing ABC Housing
Situation Pain Points
Global leader in the temporary housing
market
Strong market position started to slip as the
firm faced increased competition, demand
from customers for greater amenities, and
tighter corporate budgets
Leadership felt that the “traditional” selling
approach needed to change
Hiring, training, and coaching all used
different models
Performance reviews were generic to any role
and did not align with the sales strategy
Low correlation existed between performance
evaluation scores and individual sales goal
attainment
ABC Housing revisited
Impact
Agreement around critical-to-success sales
competencies and implemented processes for
hiring, training, coaching, and evaluating talent
Favorable sales organization turnover and
improved hiring yield
Differentiated the various sales roles and provided
a roadmap for career progression
Upgraded talent of the entire sales force
Top performers stayed and thrived, and the overall
sales organization is more motivated and confident
Recap: Guiding principles in competency model design
Develop the model based on a limited number of dimensions specific to your company's strategy 1 Organize your competency dimensions around your sales process 2 Define a clear, objective, and specific picture of the knowledge, behaviors, and skills for each dimension along a continuum 3 Consistently and explicitly incorporate the competency model into each element of your talent program (hiring, training, performance reviews, coaching, rewards, and recognition) 4 Enable sales managers to leverage the competency model to increase their effectiveness 5 Adopt a top-down and self-assessment competency process to identify individual and organization developmental needs 6
#salescompetency
#salescompetency
@SMAssociation
Questions and Discussion
Kelly and Josh answer
questions from the webcast
audience.
Check out these downloads
on a related topic
#salescompetency
@SMAssociation
Q: A different model for each sales role?
Do I need different competency
models for different selling
roles?
Check out these downloads
on a related topic
Q: Giving the competency model teeth
How do you give the competency model
sufficient teeth, so that its not viewed as just
another “corporate” program?
Check out these downloads
on a related topic
Q: Implementation time
How long does it take to create and implement
a competency-based approach?
Check out these downloads
on a related topic