Transforming your sales force

by Dave Kahle

Here’s a problem a distributor sales manager recently brought to my attention. He paid his 18-person sales force on straight commission. Each salesperson had been with the company for eight to 15 years and earned healthy incomes. And, he couldn’t get them to do what he wanted them to do.

Here’s the example he shared.

He wanted the salespeople to call on new prospects to expand the company’s base. Instead of only seeing established customers, he asked them to call on prospects, and report back to him on the progress.

There were almost no results. Instead he got comments like: I’m not going to do this, I’m not a new salesperson; or that’s just more paperwork. The salespeople resented being asked to do something they saw as outside of their responsibilities, and the manager was extremely frustrated.

A directable sales force
This is a classic example of the chronic malady I call a lack of directability. Management has not cleared up this murky difference of opinion.

It may be that salespeople choose to ignore management’s direction. That’s a different, but associated, problem. It really doesn’t come into play until the expectations are made clear.

For example, one of my clients moved his company to a CRM system. He gave the salespeople six months to learn to type, offered to pay for a typing class for them, and mandated that on a date approximately six months from now, the company would totally implement the CRM system. That meant every salesperson would be expected to use it to record sales calls, customer information and so forth.

The expectations were perfectly clear. At the end of six months, three of the salespeople had not improved their typing skills. When asked about the use of the system, they responded, “We’re salespeople, not clerks. We’re paid to sell, not enter information.”

In this case, the expectations were clear, but the salespeople held onto an outmoded definition for their jobs. The company’s course of action was clear and those three salespeople were replaced.

While a number of things could be done to cure this patient, they begin with an often-overlooked initiative: creating a clear set of expectations for the job of the salesperson.

This malaise of undirectability has, at its heart, a difference of opinion as to what the salesperson should do. Salespeople believe taking care of their current customers and being rewarded by a portion of the gross profit is the total extent of their responsibilities. Management believes otherwise.

The difference in these basic expectations generates conflict, resentment and frustration almost daily. This negative condition leads, of course, to dismal productivity. The sales manager continually squanders his time in the dubious effort of trying to shape the behavior of the salespeople. The salespeople focus on doing exactly the opposite of what management asks so they can build their case and prove their point.

Malaise stunts growth
There is another, longer-range and more sinister effect. The company caught in this kind of malaise has virtually no ability to implement any strategic initiative. For example, say the company decided to take on a new product line. Management sees the new line as holding excellent future potential to grow into a category that is a minor piece of business at the moment. As management looks ahead, they see this category growing, and want to use this line to position the company in this promising segment.

So, management makes a commitment to the new line, buys the beginning inventory, loads the SKUs into the computer, works out the pricing columns, posts the products on its Web site, and educates the customer service department. One last, but essential piece remains: harness the power of the sales force to generate business.

Management calls the sales force together, brings in the manufacturer’s rep, and introduces the new strategic initiative. At the end of the day, the sales manager announces that, because of the importance of this line to the company’s future, every salesperson should introduce it in every one of his good accounts in the next 30 days.

The sales force nods gravely, and then goes out and does whatever they have been doing for the last few years. At the end of the 30 days, virtually nothing has been done.

Sound familiar? I have sketched this scenario to thousands of principals and CSOs at annual meetings and national conventions. I then ask the question, “If you were in this situation, what would be the likelihood that every one of your salespeople would do what you asked them to do?” The response is dismal.

How about you? Take a moment and reflect on the state of directability of your sales force.

Now, consider the implications. If you cannot implement a strategic initiative like this, what is the future for your business? Do you have a future?

You can see why I am so adamant on the importance of a directable sales force. It is one of the most valuable assets you can have. Almost to the point that your company’s future may well depend on it.

There are a number of causes of this situation: 100 percent commission compensation plans, salespeople who have been around a long time, highly paid salespeople, a corporate culture that promotes the idea that a salesperson has his own business. All these contribute to the situation.

The cure is to address each of these. But, before you can do that, you need to attend to the first step: creating and communicating a precise set of expectations to the sales force that describes their jobs and what you expect them to do.

Once you do that, you lay the groundwork for changes that should follow.

The point is this: It is difficult to create change in the behavior of a salesperson in the absence of a clear set of expectations. That document is not a guarantee that the salespeople will change, but it is necessary to direct the process. It’s necessary, but not sufficient. It’s the first step.

How to . . .
Let’s start from the end. What are you going to end up with? There is room for lots of variation on the format and formula. I like to see this: Spell out the following things on a sheet of paper.

1) An overview of the job.

2) The seven most important activities for success in the job.

3) The definition of how you measure success.

4) To whom salespeople report.

5) What sort of attitudes you expect.

The question then becomes, how do you get to that point? Again, there are multiple paths. You may want to draft it yourself or in conjunction with a group of key executives. You may want to appoint a task force.

Should you involve the sales force? I’m ambivalent. On one side, I’m hesitant to advocate you ask the sales force or add a salesperson to the task force. Unless the person you involve is especially mature, the salespeople will likely work toward self-interest instead of the good of the company. This is especially true if they are 100 percent commissioned.

On the other hand, I’ve seen clients who have involved a mature salesperson with good results.

So, the answer depends on the specifics of your personnel, as well as the corporate climate in your organization.

Regardless, at some point, you will have a document.

Now you need to communicate that. And that calls for a sales meeting with all the key players in attendance. It’s important that the CEO be involved, to lend credibility and authority to the proceedings. The salespeople must understand there is no opportunity for an appeal to a higher source; there is no negotiation on your expectations.

It is always a good idea to give the reasons for the expectations, particularly if the expectations represent a major shift from current practice.

It’s also a good idea to encourage dialogue and discussion. Use the meeting as an opportunity to encourage people to mentally process the information. There is a line, however, between discussion and negotiation. I take a hard-line view on this issue. It is not up to salespeople to tell you what they should do. That is management’s job. You don’t allow your CSR to explain they don’t think they ought to answer phones. Nor is it acceptable for your warehouse foreman to refuse to take inventory.

There is plenty of room for salespeople to define the methods of their job. But the direction is the province of management.

What’s next?
A written set of expectations, clearly communicated, won’t by itself make transformational changes in many salespeople. A few may have an “ah-ha” insight, but it will take more than just this to power the change you want. However, the expectations are necessary to set up the changes to come.

It’s like outfitting a sailboat. You need to put the mast in place. A mast by itself, without a sail, a rudder and a keel, won’t move the sail boat. But, you can’t hoist the sail until you fix the mast.

It is the same with a written, communicated set of expectations. It is a necessary first step in transforming your sales force. c

This article originally appeared in the May/June 2005 issue of Progressive Distributor. Copyright 2005.

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