Episode Transcript

Turning Around An Under-performing Sales Team
Episode 63: Monday, July 06, 2009

Turning around an underperforming sales team is a tough but rewarding job - even more so for a new sales manager. The most important step is picking your priorities. This week we answer a question from a new sales manager who wants to know where to start first with his turnaround.

But first I have an excellent free offer for Sales Guy listeners. Get a free copy of my new audio book Sales Guy’s 7 Rules for Outselling the Recession when you go to www.audiblepodcast.com/salesguy

Phillip, a newly promoted sales manager from Austria, wrote us with this question: “I am a sales guy who just got promoted to sales manager. I spent the last couple of years in Germany and the UK in business development for a large US insurance company. My field is B2B solution sales, currently pre-paid services. My question refers to the organisational challenge in the first couple of months as a new manager. My boss wants me to refurbish the whole sales team, the sales process, the scope and the quality of it and bring in my experience where it fits. I am confident that I am qualified to accomplish most tasks but the tricky part is: WHERE TO BEGIN?

Should I start off reorganizing the prospecting and the selection of new cold contacts? Should I focus on enhancing the quality of the telesales team first or would you prioritize the outside sales reps? Is the sales funnel priority No. 1 or do we start with a review of the sales campaigns and talk to marketing first?

I would be grateful if you could let me have your experience in which area I should focus. I am aware that many things will have to be done at the same time but without any orientation this seems almost impossible. One thing has been made clear, I have to deliver RESULTS.”

Phillip, this is an excellent and important question. It is also one that thousands of new Sales Managers deal with every day. Here is how things usually go down. A new sales manager gets promoted. After the congratulations and celebration the new sales manager sits down with the boss. With a serious look on his face the boss explains that things need to change, “We are counting you to turn things around and we need results now.” The list is long and the task complex. So the new Sales Manager sets off to fix the sales team and this is where things either go very well or end up in disaster. One thing is certain though. The choices you make at the beginning about where to focus your priorities will impact your career and the success of your team for years to come.

Over the years I have had the opportunity to turnaround a number of failing sales organizations. Turnarounds are my favourite thing to do in business. Perhaps it is because when a business, team, or organization is broken there is nowhere to go but up. But what I think I like the most about turnarounds is taking what looks like a very complex situation on the outside and finding simple solutions that get quick and sustainable results.

Right now your head is spinning and you are wondering how to prioritize when everything is a priority. You go over the puzzle again and again until it becomes overwhelming. When you are in this situation the best thing you can do is stop thinking and consider one of the universal principles in life and business which states: It is very easy to make simple things complex, but very difficult to make complex things simple. The people who have learned to make complex things simple are the highest paid people in the world.

In almost every turnaround situation there are a handful of key actions that when focused intently will lead to rapid and sustainable success. The leaders who are most effective in these situations are the ones who are able to move past the clutter and complexity and choose the one or two most important leverage points and take action in those areas. The ones that fail. . . are always the individuals who make everything a priority. With that in mind look at your situation with a new set of eyes and ponder this question: If you could only work on one thing and only one thing what would it be?

Now I realize that in your question you asked for specific advice about what you should tackle first: prospecting, people, process, marketing, inside vs outside reps, or campaign management. The answer is, I don’t know and couldn’t possibly know unless I came to Austria and spent some time analyzing your situation. What I can tell you is the steps I would take if I were in your shoes.

First, I would do nothing except observe. I would make no judgements and instead I would watch, listen and learn. This is my advice for you. Don’t do anything for at least thirty days. Instead just be an observer. I promise you will be amazed at what you learn.

Next, I would analyze the numbers. Tear all of the numbers apart. Look at things from as many angles as possible. I like graphs and visual charts because they help me see gaps in performance and often lead me to the areas of opportunity that will generate the most short term results for the least amount of effort. Why is this important? Because:

A) You want to focus your early attention where they money is. There is always low hanging fruit that will get you quick wins. The worst thing you can do at the beginning is spend time and energy on areas that won’t yield big improvements in sales volume or profitability in the first few months of your turnaround effort.

B) Short term results create momentum and confidence. Your confidence in yourself will improve as results improve. Your team will be more likely to rally around you (which is important for keeping their support with bigger or more painful changes down the road). And, the boss will feel that you have things under control and give you more room and latitude to work your plan.

Finally, I would choose one but no more than three, key priorities and stick with those priorities. So in thirty days, after you have observed, listened and analyzed, pick your priorities. Keep them simple and straight forward. Set clear targets and milestones for each priority. Then tell your team what these priorities and targets are going to be and talk about them every day via meetings, one on ones, conference calls, email, and by posting your progress towards those targets so that everyone knows the score. And most importantly don’t let anyone, not even the boss, take you away from your priorities.

To follow this course of action requires you to keep it simple, have the self-discipline to stay the course, communicate often, and to trust in your own ability – even in the face of setbacks. If you follow this process it will lead to success. And over the coming months, as you see your new team make the turnaround, you will have one of the most satisfying and rewarding experiences of your career as a leader.

For more information on what you need to know as a new Sales Manager check out Episode 50 titled “The New Sales Manager” or our audience members who listen to this show every week I have a question for you. You’ve heard me talk about my new audio book 7 Rules For Outselling The recession. Have you take action to download it? If not what are you waiting for? Did you know that you can get a copy for free by going to www.audiblepodcast.com/salesguy ?

7 Rules For Outselling The recession is receiving praise from all quarters as an audio book that will help you get ahead and sell more during these tough economic times. You have nothing to lose and everything to gain by downloading your copy today. Take action now. Go to www.audiblepodcast.com/salesguy to get your free copy of 7 Rules For Outselling The Recession.

This is Jeb Blount, the Sales Guy. Please take a moment this week to connect with me on LinkedIn, Twitter, Facebook, or Sales Gravy and be sure to join the Sales Gravy groups on LinkedIn and Facebook for more great discussions and tips on sales an selling. I also highly recommend the NEW Winning Investor Podcast right here on QuickandDirtyTips.com.


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