Performance Optimization: Having the Right People in the Right Roles
Do you have the right people in your sales organization? Are they in the right roles to provide the most benefit to you? How do you know? In their 2012 Sales Performance Optimization Study, CSO Insights found that half of the companies surveyed felt that they needed to improve their ability to “Consistently Hire Reps That Succeed At Selling,” while 95% felt that their hiring efforts failed to exceed their expectations.
Bad Hires are Costly
This problem is compounded when you include the costs of each bad sales hire. Bad sales hire cost organizations through lost quota, revenue, and compensation. Not to mention the recruiting costs, onboarding costs, potential damage to client satisfaction, and the potential for increased churn, as others within the organization become upset and disillusioned with their organization’s inability to hire quality people to support them. If you are interested in estimating your cost of a bad sales hires, click here to use our free estimator.
The issue of having the right people in your organization often extends beyond hiring and into an organization’s ability to maximize the value of its sales initiatives. Over the last several years, organizations across the board have increased their spending on sales training and seller development year after year, despite the struggling economy. Studies from the Aberdeen Group, ES Research, and others show that money spent on sales training, sales process design, and reinforcement is having a positive impact on sales performance. SPI clients are no exception. According to the Aberdeen Group, in 2012, SPI clients were 8% closer to meeting their quotas and had 25% more customer renewals than all other organizations surveyed. While it’s good news that organizations are investing in their people and getting a positive return, many of these organizations are not maximizing their investment.
Stop Training the Wrong People
Research also shows that organizations continue to train and hire individuals that don’t have what it takes to succeed in their given sales roles. This keeps organizations from maximizing the value of their training and development activities and threatens the success of their overall sales initiatives. ES Research estimates that between 20 and 33 percent of sellers do not have the capabilities to be successful at their current jobs and that investment in training, sales process, incentives, support, etc. will have little impact on improving their ability to sell.
To help organizations address these issues and maximize the potential of their sales force, SPI has created an Assessment Framework that helps organizations answer the critical questions for ensuring you have and hire the right people to meet your sale initiatives:
- What Sales Roles do we need to make our go-to-market strategy successful? What ensures success for each role?
- Do our sellers have the right Potential or “sales DNA” to be successful in their current and/or future roles?
- Do our sellers have the knowledge and Skills they need to realize their potential?
- How do we measure and track our sellers’ Performance to ensure they are realizing their potential and successfully leveraging the sales training you’ve provided?
- How do we incorporate Potential, Skills, and Performance into the Hiring component of our Sales Talent Lifecycle?
View our recent webcast on this subject: