As an experienced consultant with more than 17 years of niche marketing and distribution experience, I have found that successful companies are built on the effectiveness of their sales management organization.

The individuals responsible for successful and effective sales management has performed the necessary research, thought through possible actions, have developed focused processes and set key standards of measurement. Where organizational revenues have flattened or declined sales management has clearly failed or critical links within the sales management structure have been missed.

The purpose of this article is to provide an overview of a few basic aspects of what successful sales management is all about.

Sales Management

The secret to consistently attaining the number one sales management goal of a exceeding revenue targets lies in the basics, including the use a monthly sales commitment (notice I did not use the word forecast) system that looks at the current, 30, 60 and future potential revenues; a commission plan that rewards on achieving revenue and profit goals (monthly and/or quarterly) and the persistence to question each prospective sales opportunity on the sales commitment form.

The monthly sales commitment meeting and weekly follow-up will maintain the focus required to keep the pace at the level expected. Effective sales managers offer advice, help close and monitor the activity. This is 75 percent of the job description.

Sales managers should design a six-month sales calendar and define the specific actions they want to execute during each month. There should be a minimum of three to four events each month. These events would include sales contests, planned trade shows, direct mail or marketing campaigns, targeting selected or large accounts, focused campaigns on certain product lines, the training required to achieve your plans, and the niche markets you would like to focus your sales team on.

Building a Sales Culture

This subject is critical in training and in managing expectations. Simply define in writing the exact steps in a normal sales process for the company. This would include the steps necessary for establishing a new account, an existing client, and qualifying a prospect. It is a simple reminder to cover necessary steps in the sale. This document would include a pre-call checklist to follow-up steps and "hints" such as sending an anniversary card and a thank you note to clients. Quality means, "touching all the bases."

Hint: Have your sales team create the documents. This will help create a feeling of high standards and buy in to improving the process.

Developing a Quality Interviewing/ Recruiting Program

This aspect of sales management is another important job function. Most sales managers never interview enough candidates, or in enough detail to truly build a high performance team. It is the sales manager's job to prospect for sales candidates as it is the sales team’s job to prospect for business! Set a goal to interview a certain number of people a month.

To begin, run a newspaper advertisement every two months —whether you are hiring or not. This will keep a steady supply of resumes for review and interviews. This is important: the person you want may be looking for a new opportunity when you aren't. By consistently advertising you may have the opportunity to find that key person.

Hint: Create a candidate scorecard, which allows everyone to numerically rate the potential salesperson. This takes the "gut" feel out of hiring!

Create a Successful Training Plan

While most Sales Managers claim they don't have the time to implement or plan a monthly sales training event it can be done. One idea is to assign topics to your sales team members and make them responsible to "put on the training." They will learn by doing and it’s a real time-saver.

It is essential both sales skill training as well as product solution training be covered during your sessions. The agenda should be published 60 days prior to the meeting with the date, time topics and responsibilities. This will break the pattern of "I can't attend because I have a conflict."

Hint: At least once a quarter brings in a vendor or a customer to speak to your team. Hearing a fresh voice or opinion can be enlightening.

Developing and Measuring Sales Success Factors

What are your indicators?

These tools will assist you in judging the required levels of success you need to build a high performance sales team and a predicable revenue stream. Every company or industry will have at least four key indicators. These will be individual salesperson indictors or a combined sales team ratio.

To find know closing ratios, ask: What are the number of prospects or opportunities required to attain the individuals monthly quota or your company’s revenue expectations? Can you judge this by the number of bids, proposals or total monthly revenue that is forecast? Do you always close 90 percent of total revenue that is forecast?

The ability to track this data monthly is critical to analyze trends by salesperson and your overall team performance. Find your four indictors, set the standards and track them. Graphing them and letting everyone on the team view everyone’s trends will show "what it takes to be successful." The graphs become great coaching tools too!

Other indictors to determine: Who are your …

Top 20 percent of customers based on revenue,

Top 20 percent of customers based on profit,

Top 20 percent of product line sales-based on revenue and profit,

Top 100 Customers based on revenue, and

What is your monthly and YTD forecast percentage of accuracy by salesperson?

Creating and Managing Salesperson’s Personal Business Plan

The concept of creating the self-managing salesperson with the attitude of running their own business environment can be achieved. It can be a simple process: it takes two events a year and limited monthly management time. The PBP (Personal Business Plan) is a simple document that twice a year (January and June) each salesperson completes and presents their plans, goals and commitments to the entire management team and in front of their peers. This will create the attitude of responsibility and offers the value of peer review. Most importantly it allows the salesperson the opportunity to reflect, to analyze and learn to manage their monthly functions.

Hint: Each month or while meeting with a salesperson review their plan and on occasion inquire about their progress. This will keep it the forefront of their thoughts.

Summary

Whew… lots to do, but with proper planning, working an organized process and with proper follow-up you will actually take the magic out of being a top performing manager of sales. It’s not magic, its work!