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The Sales Effectiveness Process (SEP) includes planning sales growth, executing account strategies and using objective feedback to continuously improve performance and drive accountability. The SEP is the mechanism by which you create a network that can be managed as an integrated whole. It consists of processes, measurements, training and tools to improve the sales performance of your entire sales force. The processes and measurements provide continuous reinforcement so that the training and tools are actually used and performance is constantly improved. 

 

The SEP is not a Customer Relationship Management (CRM) system. CRM concentrates on the effectiveness of interactions with customers, not the effectiveness of the sales force. It is not a Sales Force Automation (SFA) system. SFA deals with improving the efficiency of the sales force: performing administrative duties more efficiently. The SEP improves the effectiveness of the sales force; by defining the activities that are critical to creating the right results.

Sales Effectiveness is not a purchased sales training program. Yes, training is important, but training is but a small piece of creating sales effectiveness. We are talking about a process, a discipline and a culture. A Sales Effectiveness Process provides critical structure and motivation for effective sales management and skills training. A measurement system to manage the activities that are required to meet specific objectives is part of the foundation that supports a territory review process.

 

The philosophy behind effective sales management is simple: measure results but manage activities. While the link between activities and results is very short in demand fulfillment functions (talking to more customers today means more orders today), it is long and tenuous for demand creation activities which involves strategic selling (relationships take months or longer to deliver revenue). So, if you are reactive as many companies are in their sales planning process which tries to manage results, then you are always too late. This should be obvious because current results are determined by activities performed months in the past. The only way to effectively manage sales is to define the activities that will drive results and then manage those activities. 

 

The SEP is built on the concept of “Managing activities and Measuring results.” Focus, process, discipline and accountability become the engine that drives the process. The SEP has a clearly defined structure. Each field salesperson identifies a small set of target accounts in his territory to receive intensive sales focus. The number is limited because true targeting must be backed up by action planning, and that requires a lot of effort. This structure not only embraces new account development but more importantly it creates a penetration strategy based on Tier Level Selling™.

 

Tier Level Selling™ (TLS) requires numeric objectives for sales and gross margin dollars on each target customer, along with detailed action plans to achieve them. The goals are defined with specific time lines, next month, next quarter or next year, and will be periodically adjusted to ensure that they are always realistic.

 

TLS requires targeting which is a critically important sales practice for every sales territory - the difference between reactive selling and strategic, proactive selling. Targeting is the process of selecting high potential accounts, creating tangible penetration plans for each, and translating their potential into achievable, numeric objectives. The key factor in targeting is potential. Targets must be selected based on real potential for growth and not based on current sales volume.

 

 

 

The T.O.A.D. is the most important component of improved sales effectiveness. Critical performance issues are discussed during the T.O.A.D. It provides the forum for Sales Management and the Territory Manager to discuss, plan, and measure success. These discussions introduce accountability and identify opportunities for improvements with action planning specific to each objective. It is the Sales Manager’s job to not simply participate in this process, but to use these opportunities to coach, counsel, and correct issues regarding performance. If conducted properly, the T.O.A.D. process will become an effective tool in improving both the Sales Manager’s and Territory Manager’s performances. The Territory Opportunity Action-planning Discussion (TOAD) is the most important element of the process. It is the mechanism that ensures timely feedback and a focus on setting and meeting objectives. Sales managers should center these monthly discussions around performance improvement, coaching on best practices and providing support to the sales team. (e-mail rcik@ceostrategist.com to receive a monthly T.O.A.D. checklist)

 

 

Creating a scorecard supports accountability and alignment throughout the sales organization and the company. It is a diagnostic tool and a motivator. It should include both results measurements (e.g. gross profit growth) and supporting activity measurements (e.g. targeting activities, program compliance, training participation). 

The toolkit is a library of best practice guidelines, reference material and other resources that anyone in the company can access at his own convenience. The contents could include case studies, success stories, call budgeting, product information, value propositions, planning tools and account penetration strategy guidelines, etc. 

The SEP circumvents the most common mistake made in sales management today: trying to manage results. Instead, you must manage activities because it’s the activities that produce results. Execution involves the day-to-day activities of the salesperson. For most industries, this entails both planned, proactive tasks and opportunistic, reactive events that the salesperson uncovers by doing the right things in the right place at the right time. It’s critical that the progress of the tasks in target action plans is carefully monitored to avoid surprises. If you proactively manage the activities, the expected results will follow.

Sales representatives that achieve success today are successful because they gain the majority of their targeted customers business. They manage the relationship and continuously build relationship equity. Effective sales management is also a key ingredient. It includes planning sales growth, executing account strategies and using objective feedback to continuously improve performance and drive account growth. As today's sales environment leans toward a more multifaceted atmosphere, salespeople must become strategists with a plan. This plan requires more knowledge about the business, better relationships and better solutions. That is exactly what the Sales Effectiveness Process is all about. Sales management holds the key to meeting company objectives. Effective sales management must build the platform for success. Implementing the Sales Effectiveness Process is the ultimate solution for your sales and profit growth.