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The following Best Practice Advisories are distilled from key chapters of the book – a sampling of insights to
guide you in accelerating your sales force performance.
Sales Force Sizing |
Sales Force Structuring |
Sales Territory Alignment
Recruitment |
Training |
First Line Sales Manager |
Compensation
Sales Force Sizing
- Downsizing the sales force to cut costs can cause revenue losses that make things even worse.
- A larger sales force makes sense when the long-term impact of sales force effort is accounted for.
- Implement sizing changes quickly – phased growth or reduction is rarely optimal.
- Better allocation of sales effort often leads to greater gains than adding salespeople.
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Sales Force Structuring
- Study the complexity and diversity of your customers, products, and selling activities to determine how specialized your salespeople need to be.
- Optimize the balance between effectiveness gains (higher results) and efficiency improvements (lower costs) when structuring your sales force.
- Integrate sales force effort with alternative ways to reach markets such as the Internet, telemarketing, and part-time or contract sales forces.
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Sales Territory Alignment
- Balance workload across territories to maximize market coverage; balance potential across territories to give all salespeople a fair chance to succeed.
- Develop a benchmark alignment centrally, using consistent, objective criteria for all sales areas, and then allow first-line sales managers to adjust that benchmark to account for local differences and to enhance acceptance by the sales force.
- Audit your alignment annually.
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Recruitment
- Do not rely on interviewing alone to identify the best candidates, but also use screening techniques that allow you to observe the behaviors critical to a candidate’s success.
- Develop success profiles to guide your search, and adapt those success profiles as products and markets evolve.
- Avoid “warm body” hiring.
- Recruit constantly.
- Assign your best people to recruiting.
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Training
- Do rapid prototyping.
- Emphasize action learning, rather than passive learning.
- Recognize the advantages of individualized training.
- Structure training modules around actual business problems.
- Provide stretch experiences for salespeople.
- Consider using the Internet to deliver information-based training.
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First Line Sales Manager
- Treat the first-line sales manager as a pivotal person in the selling organization.
- Recognize that the sales manager's role is different from that of the salesperson.
- Develop sales manager success profiles and select the right people.
- Provide excellent sales management training.
- Consider using "360° evaluations" when assessing the sales management team.
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Compensation
- Use both extrinsic rewards, such as money, and intrinsic rewards, such as recognition.
- Ensure that the compensation plan is compatible with your sales and marketing strategy.
- Place more emphasis on salary (vs. incentive pay) when performance is hard to measure or when non-sales force factors have a large influence on sales.
- Invest in a good quota-setting process to avoid over-paying or under-paying salespeople.
- Use the incentive plan as one item in a portfolio of tools to influence salespeople’s behaviors.
- Test new incentive plans before implementing them.
- Keep the incentive plan simple.
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