| According to legendary quality expert W. Edwards | | | | late. After a few months of this I noticed that although I |
| Deming, there is one critical, but often overlooked, | | | | was working harder and longer, and sacrificing time |
| factor upon which success in almost any business | | | | with my family to do it, I wasn't seeing any appreciable |
| endeavor depends. The ability of your sales team to | | | | return on my investment of additional time and energy. |
| meet and exceed your revenue targets will be | | | | I began to realize that I wasn't addressing the real |
| determined largely by your awareness, or lack of | | | | problem. The market had changed dramatically while |
| awareness, of this one thing. It amazes me how many | | | | my sales process had remained the same. I was doing |
| companies neglect it entirely, focusing instead on | | | | the exact same things I had been doing when the |
| individuals and performance issues while the real | | | | market was hot. The only difference was that I was |
| problem goes unnoticed and unaddressed. Obviously it | | | | now doing a lot more of them. |
| is vital for you to understand this important component | | | | I began to analyze how the marketplace was different |
| and learn how to manage it properly so that you can | | | | now and to think about changes I could make to my |
| unlock the full potential of your sales organization. | | | | own approach and what the results were likely to be. |
| According to Dr. Deming, the critical component is your | | | | Unwittingly I was applying SPM to my own selling |
| system, or process. For the purposes of our | | | | process! |
| discussion, we'll be focusing on the process that has to | | | | I recognized that during the time the economy had |
| do with generating sales--your selling process. In my | | | | been booming almost every company seemed to be |
| experience it doesn't matter how talented, educated, | | | | hiring. A salesperson could just pick up the phone and |
| or experienced your salespeople are, or how hard | | | | dial a prospect (seemingly at random), and chances |
| they work at it, there remains a very large gap | | | | were that they would be hiring or could refer you to |
| between the actual results they will produce and the | | | | someone who was. I had always kept data on the |
| results they could have produced had someone been | | | | number of sales calls I was making and the results and |
| paying attention to process. In today's ultra competitive | | | | success ratios my efforts generated. The data |
| business environment, where the margin between | | | | showed that before the bubble had burst, nearly one in |
| winning and losing is so slight, I am surprised at how | | | | three of my sales calls resulted in a lead. It was the |
| many companies continue to ignore an area that holds | | | | perfect market for making as many sales calls as you |
| such potential for drastic increases in productivity and | | | | could possibly fit into the day. |
| bottom line results. | | | | The present situation was very different. I was now |
| It's easy to say that your salespeople could be | | | | making almost 30 dials, on average, to get to that |
| producing better results. It's not so easy to actually | | | | same lead. I did the math and found that increasing my |
| demonstrate it and then formulate a workable plan to | | | | outbound sales calls by the suggested 50 percent |
| do something about it. Most managers would agree | | | | wasn't going to get me even close to where I needed |
| there's always room for improvement. The challenge | | | | to be. I would have needed almost a 1000 percent |
| lies in knowing where to look in order to find the | | | | increase in call volume to come close! |
| weaknesses in the selling process that are holding | | | | Another difference was that, whereas during the |
| your people back. It's hard to stop the bleeding when | | | | boom, I could approach a prospect without specific |
| you can't find the cut--or worse yet--when you don't | | | | knowledge of their business or hiring plans and |
| even know there's a cut. Most companies don't even | | | | effectively communicate using very general terms, |
| know where to start. In that sense, it's easier to | | | | now, leads were so few and far between that I |
| manage people than to engineer process | | | | needed to have a more thorough knowledge, and a |
| improvement. It's always easier to treat the symptom | | | | specific, customized solution prepared in order to |
| than to actually diagnose and treat the underlying | | | | engage the prospect in any kind of meaningful |
| cause. The result is a selling environment where the | | | | discussion. Each lead was too rare and too valuable to |
| true reasons for most mistakes and failures go | | | | risk losing on a random, generalized cold call. |
| unaddressed and are blamed on people instead. | | | | I concluded that I needed to change my selling process |
| Companies who operate this way often find | | | | from one in which I was making a higher volume of |
| themselves grappling with the same basic problems | | | | random sales calls, to one where I was making a |
| year after year with the only change being the people | | | | lower volume of more targeted inquiries. Talk about |
| doing the grappling. It's an ineffective and expensive | | | | flipping conventional wisdom on its head! I couldn't |
| proposition, certainly much more so than teaching your | | | | argue with the numbers, however, and, after some |
| sales managers how to apply the principles of Sales | | | | initial hand wringing, my manager couldn't either. He |
| Process Management. | | | | agreed to let me try out my new process. |
| Sales Process Management (SPM) promises to do | | | | The new approach began to yield results immediately. I |
| more than just identify and improve the weaknesses in | | | | was opening up far more new cases than ever |
| your selling process. Another major benefit you will | | | | before and my sales numbers jumped up higher than |
| enjoy when you make the commitment to SPM is | | | | they had been when the economy was booming! I |
| seeing the best practices in your selling process | | | | began to apply the same thinking to every process I |
| identified and duplicated across your entire | | | | was using. |
| organization. I've heard many leaders talk about | | | | First, I would identify all of the activities within my |
| implementing best practices but have seen very few | | | | current selling process. Then I would analyze each one |
| of them actually manage to consistently achieve it. | | | | to try to understand its true importance to advancing |
| I first stumbled upon the benefits of SPM a few years | | | | the sale and producing the intended outcome. |
| ago when I was on the other side of the management | | | | Whenever possible I would look for patterns and ways |
| fence selling online recruiting solutions for a major | | | | to measure the cumulative results of each activity or |
| Internet company. The Internet bubble had burst and | | | | behavior. I soon found that by taking the time to isolate |
| the economy was starting to slow down. As a result, | | | | and understand the role each activity played within the |
| our prospects and clients weren't hiring at the same | | | | context of my whole selling process, I could better |
| rapid pace as they had been before. | | | | reason from cause to effect and more accurately pin |
| Sales started to slump. Salespeople who had always | | | | point the relative strengths and weaknesses of each. |
| hit their numbers were now coming up short every | | | | The result was a sort of behavior pattern algorithm |
| month. Management focused immediately on | | | | that told an accurate story of my process from |
| inspecting and monitoring the individual performance of | | | | beginning to end. |
| the salespeople. The decision came back that we | | | | After gaining an understanding of exactly what I was |
| were not making the necessary number of daily sales | | | | doing and how each component of my process |
| calls. A resolution was made to mandate ratcheting up | | | | contributed to the outcome I wanted to achieve, I |
| the activity levels on the floor. If we failed to make X | | | | would look for ways to improve upon my results. I |
| percent more dials every day we could be penalized | | | | would repeat this process over and over again; |
| or otherwise punished. Incentives were introduced to | | | | continuously looking to identify inefficiencies and |
| reinforce and reward the required behaviors. | | | | replace them with new, improved ways of doing things |
| Employee morale plummeted. Salespeople expressed | | | | better. Often the improvements would come as a |
| concern that management was unfairly targeting them | | | | result of talking with and observing other top |
| for blame. Management expressed concern that | | | | performing salespeople. Now that I knew what I was |
| perhaps many salespeople had been taking advantage | | | | looking for, I could more readily identify what others |
| of the situation during the good times and didn't really | | | | were doing differently in the same area that was |
| care about the company, or, worse yet, were lazy and | | | | allowing them to perform at a higher level and |
| needed to be weeded out. The mandate had its | | | | immediately incorporate it into my own process. |
| intended effect... at least on call volume. The average | | | | The results were immediate and dramatic, enabling me |
| number of daily sales calls on the floor did increase | | | | to finish 2002 as the top telesales rep in the entire |
| dramatically. Unfortunately this increase in the number | | | | company. Since then, I've successfully introduced SPM |
| of sales calls did not result in a corresponding increase | | | | to my clients and to my own salespeople and have |
| in sales and revenue. | | | | never seen it fail to produce the same outstanding |
| During this time, my focus was on finding something | | | | results. SPM is easy to implement and works in any |
| that would work to produce measurable results for | | | | situation, economy, environment, industry, or company. It |
| me. Initially I ratcheted up my activity levels too. In order | | | | will work for you too. |
| to accomplish this I began coming in early and staying | | | | |