Understanding the Sales Force

I analyzed performance data and after filtering on salespeople who were not performing (below 80% of quota), only 4% were strong in the Sales Process competency.  The opposite of that analysis revealed that of those who were performing, 85% were strong in the Sales Process competency.  Salespeople who are strong in Sales Process are 2125% more likely to be performers.  That is very strong correlation!

We know what doesn’t work in a recession. 

The economic crisis of 2008-9, and the Covid lockdowns of 2020-2021 showed us that when companies focus on cost-cutting instead of growing revenue, revenue declines – sharply.  Who would have guessed that smart people wouldn’t see that coming?

You know what to do when dry weather conditions aren’t favorable for growing trees, flowers, and shrubs. You don’t pull the plants out of the ground or let them succumb to the dry conditions.  You add water. It’s a very simple concept.

Can companies add water to grow revenue when the economic conditions are evaporating?  Yes, but it’s counter-intuitive.

Sports teams hold tryouts which serve as auditions. Coaches know what to look for.  Sales Managers use resumes, interviews, and hire on gut instinct. 

Stop using revenue to rank your salespeople or to conclude that your salespeople with the most revenue are good salespeople.  It’s fiction.  It’s BS.  It’s misinformation.  It will lead you to make bad decisions.  Revenue represents what customers spend with you.  Sales effectiveness is the measure of a salesperson’s ability to grow revenue by bringing in new business.

Leadership believed they were very good at doing these things. However, everything is relative. The key question is, good compared to who?