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Best Practices Management Marketing Personal Development

Boundy’s Bookshelf: The Coaching Effect

I just read – and highly recommend – The Coaching Effect, What Great Leaders Do To Increase Sales, Enhance Performance, and Sustain Growth by Bill Eckstrom and Sarah Wirth.

Besides my involvement in teaching, guiding, and practicing coaching with clients, I read a lot about sales management and coaching. In fact, I was one of the first in Miller Heiman Group to be certified in their full sales coaching suite.  I wondered if I would pick much up from this book, and am pleased to say…yes, I did. I will be supplying this book to sales transformation clients from now on.

Coaching by Your Front-Line Sales Managers Improves Sales Performance

Based on over 100,000 real-world coaching interactions, this book shares some of the research behind its recommendations.  Most important:  Sales teams with great coaching average 110% of goal, vs. 91% of goal for the bottom 80%. Think about that. The most effective teams have the most effective leaders…the ones who behave like great coaches. These teams outperform the average team by over 20%.

I’ve seen similar data from other sources, including CSO Insights, who I consider to be the gold standard.

Anecdotally, I experience how focusing on coaching is the primary differentiator between successful sales performance initiatives…and those that fizzle.  I buy the difference coaching makes.

What’s a Good Coach?

Eckstrom and Wirth go into depth on what great coaching looks like.  The first thing that struck me was how seldom we measure coaching quality.  Most practitioners stick to the easy-to-measure stuff like quantity (more on that below).  The authors have a robust scoring system for the quality of coaching that’s as simple as it is intuitive and effective.  They measured major themes of impact/culture, relationship, cadence, and ability to wring performance improvement – each of which is broken down into components.

The second striking finding is that “quality” is measured in the eye of those being coached. This seems obvious to a guy like me who regularly harps that value is only in the mind of the customer.  Of course, that’s how you measure great coaching.  So why do so few other people do it?

A third, not-so-striking finding: the best coaches have their “coachees” best interests at heart.  Think about it. Coaches who have their subordinates’ trust are the ones with permission to push them to greatness.  Yes, this is everyone on your team, not just those oft-maligned millennials.

The Four Pillars of a Great Coaching Culture

My “coaching acumen” improved. The research behind Coaching Effect broadened my idea of what a great coaching culture looks like.  Eckstrom and Wirth describe four pillars (my term, not theirs) that sales leaders need to implement as part of a consistent coaching cadence.

  1. One-to-one meetings: Coaching Effect teaches that these are higher-level-than-you-might-have-thought meetings. They cover a seller’s personal updates, long-term goals, daily work, and priorities…combined with offers of manager support. It turns out that quality is far more important than weekly frequency.
  2. Team Meetings: Again, the research shows that quality is more important than frequency.  Meetings that share best practices, share successes, discuss team-side issues, etc. (the book has a lot of great examples) might be monthly, with as-needed team huddles on a given specific timely issue.
  3. Performance Feedback: This is where I’ve focused most of my own work, and I’m glad the authors and I agree on approaches.  There is solid advice on how to approach performance issues, using what another author called “compassionate directness”.  The personal updates and focus on long-term goals from one-on-ones build trust that’s needed during more difficult feedback conversations.
  4. Career Development: Isn’t it crazy how few coaching programs formally introduce career development into the regular coaching cadence? Great coaches use this component to inspire “discretionary effort” (I love that term, Bill) on the part of sellers.  There are great examples of specific actions a coach can engage in to become a meaningful force in the career of his team members.

Two Thumbs Up

As I said, this book helped me clearly articulate the differences between average and great coaching, and any serious sales leader should invest in it…and themselves

To your success!

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Best Practices Sales Skills

You Need Both: Sales Process AND Sales Methodology

In the sales performance space, there are those who think sales process and methodology are the same thing, and those who realize they’re different. If you couldn’t tell which side of the debate I’m on, they’re different, and do different jobs.

Some of the confusion is that both are kinds of process, although methodology isn’t always as predictably sequential.

Process:  Selling Activities.

The term selling process refers to the actions a selling organization takes along its selling journey. These steps might include (but might not be limited to):

  • Prospecting
  • Qualifying
  • Needs Analysis
  • Demonstration
  • Proposal
  • Negotiation
  • Close and Implementation.

When these are detailed sufficiently, people throughout the selling organization know what deliverables they need to support the process at what times, what documentation is expected, what resources are typically required, and much more.  Process grows into a “playbook”.

Notice that these are seller-centric activities.  Once your company builds its sales process, this are a great way to track an opportunity pursuit through your funnel or pipeline.

Today’s CRMs are mostly built around processes.  They usually come with a generic process provided, and one of the first thing a company needs to do is define their process in that CRM.  Manager dashboards will also be boilerplate at first.  It’s commonplace to track selling activities like calls made, emails sent, lunches bought, demos scheduled, and more.  Once you have management reports and analytics defined and refined, sales managers can track a lot of activities really efficiently.

There is one thing missing from sales process:  the customer’s buying process.  Tracking only selling activity fulfills the great promise of  CRM when:

  • All customers buy the same way
  • Every customers is equally engaged
  • All customers have the same needs
  • Customers respond equally to the same “value messages” (a term I really disrespect.I’ve blogged on this before, and am likely to do so again in the near future).

Every sales professional knows what doesn’t happen when they keep churning through a sales process while a customer has not progressed through a buying process.  Methodology solves for that.

Methodology: Selling Behaviors (which engage a buying process.)

Sales methodology consists of trainable, coachable, trackable selling behaviors that engage a customer in a buying process.

It’s easy to measure process, like number of telephone dials (especially with CRM/phone system integration). Measuring number of quality conversations is hard.  Don’t do either in isolation.

Ironically, I hear sales leaders tell anyone who will listen that they need to measure quality and not quantity…while looking at sales process analytics.  The reason that they’re achieving the results they may be because they’re measuring activity.

Methodology…behaviors…keeps the sales process aligned with the buying process.  Methodology behaviors might look like (but might not be limited to):

  • Understand the buying process being used
  • Understand all of the buying personas.
  • Planning and executing meeting plans to uncover all needs, all desired outcomes, and the value of all of those outcomes to the various personas.
  • Building a case for change, including adding personas where your value warrants.
  • Cultivating internal support for a proposal.
  • Aligning demonstration, then proposal points to persona outcomes.
  • Building the value case
  • Facilitating any customer change management, and setting implementation up for success.

Because every customer buys differently, methodology tends to be less rigidly sequential.  The customer buy process drives methodology, but should generally track with a well-designed (that is, customer-centric) selling process.  For example, change management appears prominently near the end of a sales process, but methodology should have uncovered individual persona outcomes and developed supporters of the change all through a pursuit.

Process vs. Methodology:

 First, I should point out that by “vs.” above, I don’t mean that there is an either/or choice.  You need both.  The “vs.” is because I want to contrast the two to show why you need both.

Process vs Methodology Table

Process organizes and orchestrates the complex web of selling organization activity around selling and delivering the company’s offer.  Methodology organizes the selling organization’s effort to facilitate a customer buying decision.

Sales process is measured by activities, which can be measured by any current CRM system I’ve ever heard of.  Methodology is about selling behaviors; only a few exceptional CRMs track behaviors, although most can be modified to do so.

Sales process, as simple activities, can generally be learned and mastered via a straightforward “knowledge transfer” class of training.  Methodology involves behavior change, and requires some element of coaching to lock in behavior change.

Process adoption and compliance results in selling efficiency, whereas methodology focuses on building customer-perceived value of your offer.  Great methodology drives customer value, which makes selling more effective. Efficiency and effectiveness can both drive up sales, but in different ways.  Efficiency might mean churning more prospects through a low close-ratio process each month.  Effectiveness could mean increasing the close ratio.  They aren’t mutually exclusive. They are synergistic.

Don’t Confuse the Two.  Don’t Limit Yourself to Either/Or.

I hope that you found this compare and contrast article useful.  Process and Methodology are both worthwhile pursuits. I help clients with both, and they feel different.  Please comment below, or contact me directly if you have any detailed questions.

To your success!

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Best Practices Human Resources Management Marketing Personal Development Sales

There Are Two Kinds of Training. Only One Works.

For as long as I’ve been working, I’ve experienced training. We all have. We also know that it doesn’t’ always “stick”. This is especially true of sales training. Let me share one big “why”.

As my role transitioned into sales leadership, and now consulting, I had to figure out why some training works better than others. When an initiative involves training, whoever owns the results of that initiative (sometimes different from who leads the training) must understand why…and what to do about it.

There Are Two Kinds of Training.

The two kinds of training are really related to two kinds of content:

  1. Content that trainees can “know”.By this, I mean that information in the training is simply transferred with little or no behavior change. Examples in the sales world are how to prepare a bid or enter an order, or how to find collaterals. General examples might be how to log into the company networks or get help, where to go for an access badge, etc. In banking, we had “how to spot and report possible money laundering” training. The point: learning is simple knowledge transfer. Training works fine for this kind of content.
  2. Content that addresses what trainees “do” (behavior content).A lot of sales training falls into this category. It introduces and defines specific selling behaviors…perhaps with some role-playing for practice. A training department might erroneously measure “success” via post-course content retention testing. By contrast, the vice president of sales owns results responsibility; for him or her, success means permanent behavior change. Millennial-friendly hip multimedia content, video role-playing or easily digestible micro-eLearning modules won’t change behavior. These innovations are great at achieving “know”: they effectively transfer knowledge and introduce desired behavior, but they don’t drive behavior change.

The second kind of training doesn’t work…without help. Behavior change training alone works for only a very small percentage of self-starting and highly capable sellers.

I have watched many companies fail to distinguish between the two kinds of content. As a result, they unconsciously cripple a “sales training” initiative by applying a “know” solution to a “do” problem. They fail to adequately reinforce behavior change after a “do content” training event.

Changing Behavior is Simple, But Not Easy.

The difference between “know” content and “do” content is the level and type of follow-up required. “Do” requires follow-up coaching. Until recently, coaching required a personalized coaching regimen delivered via old-fashioned human interaction. (more about new innovations in that area below). The graphic above shows a table of the difference between a training event and coaching for “do” content. Notice how coaching focuses on adopting or changing behaviors. The differences are pretty self-explanatory.

The gold standard of coaching behavior content is and has always been manager-delivered. Due to the one-on-one nature of effective coaching, a seller’s immediate manager is the logical person to deliver effective coaching.

I was one of the first in my company to become fully certified in the full suite of (Miller Heiman Group) coaching methodologies. I now help not only my own clients, but those of several colleagues to build coaching acumen in their management corps. It’s a hugely rewarding part of my consulting practice: I grow sales careers by growing sales managers’ careers.

Artificial Intelligence (AI) Comes to Coaching

The promise of AI is that it can act as an expert system that tirelessly monitors behaviors looking for gaps. An AI system has the time that a sales manager lacks. This is a powerful management tool. It also requires a huge underlying data set to “teach” the system to recognize both behaviors and behavior gaps.

I work with one of the first systems capable of recognizing critical selling behaviors. It diagnoses selling gaps proactively. It’s able to spot deal risks and recommend corrective selling behaviors in time to change the deal trajectory, a major innovation. This system operates from an expert system database built from the deepest experience base in existence: the largest, most successful B2B selling organization in the world. This knowledge base is poised to become the first to use machine learning (one form of AI) to diagnose sales opportunities via CRM data. This requires a different CRM that collects behavior data rather than today’s usual “activity-based” tracking. For instance, you can’t coach from “how many calls did this salesman make”. You can coach from data about meaningful conversations. CRM data isn’t today’s activity-based tracking; it’s metrics with insight into a buying decision…selling behaviors.

While personal coaching is still the gold standard, an expert-based system focusing on selling behaviors lightens the load on front-line sales managers. Sales managers are a very overloaded group, and can use the help.  A system which can automatically catch and notify sellers of the most common behavior gaps allows managers to concentrate their coaching on higher-value issues. Managers can follow up when sellers don’t react to machine-based suggestions, coach for more subtle points, etc.

Don’t Address a “Do” Problem With a “Know” Solution

If you and your company want to embark on a sales performance improvement journey, make sure your plan distinguishes between “know” and “do” content.  Then make sure that you do “do” correctly: with a robust coaching component. Also look for a solution which has a clear future into automated ongoing coaching using AI or some similar technology.

If you’d like a fresh set of eyes on your situation, I’d be happy to spend some time hearing your situation out, and your thoughts. Contact me at mark@boundyconsulting.com if you’d like to access a free sounding board. Comment below if you have any additional insights or questions to share.

To your success!

Categories
Marketing Personal Development Sales

Sales Culture, Elevated.

This article is part three of a three-part series on the future of sales performance.

In parts 1 and 2, I wrote that:

  • CRM alone not enough; in fact, many companies have found it’s the tail that wags the dog.
  • Process, and even more importantly, methodology are real difference-makers. Coaching process and methodology makes performance improvement sustainable.

In this article, we’re going to dig a little deeper into the coaching that drives long term sales success. Sustaining world-class performance is about sales culture; culture that ingrains process into the operating rhythm of the organization. Process and methodology do no good unless they are internalized by a sales organization, and the process of internalizing establishes a strong sales culture. When a methodology becomes the default go-to-customer approach for your organization, it enables the three goals of a sales system:

  1. Drive deal-winning behaviors, not simple activity-based measures.
  2. Re-vector at-risk deals, identifying and mitigating risks with opportunities.
  3. Replicate winning across, raising the performance of all sellers in the team.

Dynamic coaching culture

CSO Insights has conducted extensive research supporting the value of a dynamic coaching culture.  The research shows that companies whose coaching culture captures analytics from successful sales, refines sales data into define winning sales behaviors – then supports sales leaders as they coach those behaviors across the sales force outperform their peers.  Dynamic coaching culture is different than simple coaching:  there is a closed loop between results and how process and methodology is emphasized by the organization.  This loop drives self-sustainment and continuous improvement.

Dynamic coaching cultures experience far superior outcomes than average sales organizations:

  • A higher percentage of these companies meet revenue plan.
  • More reps make quota. The gains come from across the sales force, not just a few high performers
  • Win rates are higher. This means forecasts are more accurate
  • Late loss rates are lower. Fewer of those resource-sucking late losses that ruin sales productivity
  • Staff turnover is lower. Lose fewer of the people you want to keep, rehab more of the marginal performers, converting them to keepers.

A robust self-sustaining coaching culture builds the foundation for two things:

  1. Sales performance. The outcomes above are worthwhile goals in themselves, but…
  2. Self-sustaining culture (manager bench strength, coaching acumen, leadership succession/career path). Building a sales culture to last means building sales careers worth having.

The Past, Present and Future of Dynamic Coaching

Let’s look at where we’ve been, and where we’ve led our industry: coaching on CRM-resident tools.

I’ve worked with Miller Heiman Group (and its predecessor, Miller Heiman) tools for almost 30 years. Success in my business is all about delivering outcomes for clients. The reason Miller Heiman Group is the largest in the B2B space is that we’re the partner sales organizations keep engaged with longer…we have the least leaky bucket…growing our clients is how we grow.

Based upon thousands of client engagements, I can tell you with absolute conviction that the key to long-term success is in not conducting training events, but executing long term change in selling behavior organization-wide.  A successful engagement is almost universally the one with a robust component of sales manager coaching, where front line managers become the primary change agents.

The gold standard of coaching is personally diagnosed and delivered by the front-line sales manager (FSM).  This kind of coaching is high-touch, requiring not only discipline by the FSM, but a corporate capability in developing coaches and prioritizing coaching activity over the many other demands on an FSMs time.

While manager-delivered coaching is preferable, it is not always available at the right time for every deal.  We have also noticed that a large proportion of coaching is on a core set of selling behaviors.  That is, managers tend to diagnose and coach the same behaviors over and over.  With the right methodology and the right CRM system (one that helps track deal-moving behaviors, not meaningless activities), an intelligent coaching platform is possible.

Where you can go:

  • Instead of manager-initiated intervention, how about system-led?
    • Not today’s activity-based prompts. Selling behavior-based prompts…seller actions that moves deals, not activity that occupies selling time
  • A rules engine, based upon 40 years of Miller Heiman Group expertise, which can diagnose those repetitive selling
  • AI/big data capabilities which can take it even further.

Where are You?  Where Do You Want to Go?

When you’re tracking and managing to activities, today’s CRM can work just fine.  On the other hand, when you’re trying to establish a rigorous selling culture with a consistent management cadence, you can more efficiently accomplish the three goals of a world-class sales system::

  1. Drive winning selling actions. This means actions, not activities.
  2. Change deal outcomes more rapidly identify at-risk opportunities and figure out how to re-vector them toward success.
  3. Replicate success. Learn what behaviors predict success in your business, and turn them into a rules engine for your sales tool to automatically recommend.

We Can Take You There

Miller Heiman Group has leveraged over 40 years of sales performance expertise into a powerful set of tools.  They have bundled methodology with a dynamic coaching application, which can be freestanding or integrated with a CRM system. It helps front line sales leaders by lightening the routinized part of their coaching load, allowing them to concentrate their time on higher level opportunity strategy.  Sellers become more effective by building sound selling behavior habits.  Finally, senior sales leaders see improved results, and have insight-producing analytics into how to improve sales even more.

I’m excited about this new capability, and am thrilled to offer it to clients. Contact me to discuss whether we might drive winning actions, change deal outcomes, and replicate success in your organization.

Categories
Best Practices Management Personal Development Sales

You Can’t Test Your Way to (Sales) Performance

In the sales performance space, there is a growing disconnect between performance focus and learning focus.

If my email and voice mails are any indicator, there is an explosion in learning technology options crowding into the sales enablement world. An important part of my business is learning about these powerful tools for knowledge dissemination, especially as they apply to sales forces.

Learning and training tools are more accessible, more available, more efficient and more effective than ever before. There has never been a better time to be involved in the adult learning industry. However, adult learning is the least interesting part of my business. My true business is achieving lasting results for my clients.

There are two big differences between a learning focus and a results focus:

  1. Improving sales performance requires far more than knowledge acquisition.
  2. Knowledge acquisition isn’t the weak link in the chain.

My own company, The Miller Heiman Group, is innovating in many areas including improving the learning portion of the “sales performance improvement” chain. The chain metaphor fits: knowledge transfer without behavior change achieves little of lasting commercial value. If all my firm became known for was innovation in learning, we would fail our clients. “Watch this space” for exciting innovative performance management tools, though.

Sales performance improvement is far more than “training…poof!”

A great instructor can teach all of the techniques of a golf swing—grip, stance, backswing, body motion, hand action, hip turn, follow-through, etc. – in a couple of hours. That couple of hours won’t land anyone on the pro tour, though. That’s even if the student scored 100% on a post-training assessment; confirming that they acquired every atom of the instruction.

Similarly, sales performance is about adopting new selling behaviors; working to turn them into “muscle memory”. Teach those behaviors and test for comprehension all you want, but without coaching and guided practice, little or no performance change will result.

Alarmingly, many learning professionals claim that “training effectiveness” should be measured by testing for effective knowledge acquisition. The trap: testing for knowledge acquisition is easy via (electronically-administered) tests. This is a classic application of John Tukey’s quote “Far better an approximate answer to the right question than a precise answer to the wrong question…”. Testing for comprehension is so much “the wrong question” it verges on criminal: sales training comprehension alone won’t deliver the results sales leaders need. Sales training simply isn’t that kind of simple “know it = do it” material.

The pitfall to “teach-and-test only”:

Knowledge acquisition isn’t the weak link in the chain.

Training events are easy… compared to getting your sales teams to consistently adopt sales methodology behaviors. Behavior adoption requires observation and effective coaching over an extended period. Think about the time to train you to swing a golf club vs. the time it takes to achieve proficiency — then excellence. Also, think of the difference that great coaching can make in ramp-up time.

Sure, training and testing have their place. Training introduces and describes desired behaviors. Testing confirms understanding. Knowledge and understanding are important steps along the adoption path. It’s difficult to coach effectively without a clearly communicated set standards and expectations.  Thus, there is a chain of events –with training and testing for comprehension as one link.

In my experience, a training event ends where the most powerful work starts. That’s where behavior coaching begins, where new habits are formed, and where lasting results are embedded…where a performance initiative becomes consequential.

The “weak” link in the chain is building new habits with your people. I call it the weak link not because of a lack of coaching tools, or ineffective ones. Rather, weak refers to the reality that people and organizations generally struggle with change. Unsurprisingly, changing behaviors is the most common failure point in a sales performance initiative. Organizationally, behavior change requires that you plan, communicate, involve, lead, and commit. Individually, sales leaders need to develop, observe, diagnose, coach, and persist. Once behaviors are instilled, the methodology becomes sustainable. I use the chain metaphor because if a coaching/sustainment piece is missing, the whole initiative risks missing on the desired outcome – and the investment has limited return.

A stronger chain

To achieve strong results, put together all of these elements:

  1. Great sales methodologies…yes, and teach them effectively. I’m aligned with the most successful B2B methodologies in the world, and can tell you why. My company is now a leader in learning innovation, and I’m proud align myself with them.
  2. Great coaching and training tools that help front-line sales managers (one key point of differentiation between success and disappointment) become effective behavior coaches. My clients can access a full set of rich coaching and sustainment tools, plus my commitment to integrate those tools into working solutions that result in meaningful outcomes.
  3. A great execution and change plan individualized for your organization. Just buying “butts in seats” from any training company — no matter how good their material is — runs the risk of assuming away this critical component. This link in the chain doesn’t come from a training company.

Understand: testing for material mastery is not a predictor of outcomes. Not even remotely.

The overwhelming differentiator in successful sales performance initiatives is effective behavior change, not behavior description. Make sure you have a clear change management path before you decide to “train your people”. Be sure you understand how your learners will be coached into becoming performers.

I’ve seen some e-learning tools claiming to perform automated coaching – verifying behavior change. Now that’s a cool concept, and I’m eager to see those technologies mature. In the meantime, feel free to contact me if you’d like to discuss behavior change and organizational change management that works. For you, your organization, and your aspirations.

To your success!