ProActive Sales Management How to Lead, Motivate, and Stay Ahead of the Game SECOND EDITION William ‘‘Skip’’ Miller American Management Association NewYork•Atlanta•Brussels•Chicago•MexicoCity•SanFrancisco Shanghai•Tokyo•Toronto•Washington,D.C. SpecialdiscountsonbulkquantitiesofAMACOMbooksare availabletocorporations,professionalassociations,andother organizations.Fordetails,contactSpecialSalesDepartment, AMACOM,adivisionofAmericanManagementAssociation, 1601Broadway,NewYork,NY10019. Tel:212-903-8316.Fax:212-903-8083. E-mail:[email protected] Website:www.amacombooks.org/go/specialsales ToviewallAMACOMtitlesgoto:www.amacombooks.org Thispublicationisdesignedtoprovideaccurateandauthoritative informationinregardtothesubjectmattercovered.Itissoldwiththe understandingthatthepublisherisnotengagedinrenderinglegal, accounting,orotherprofessionalservice.Iflegaladviceorotherexpert assistanceisrequired,theservicesofacompetentprofessionalperson shouldbesought. LibraryofCongressCataloging-in-PublicationData Miller,William ProActivesalesmanagement:howtolead,motivate,andstayaheadofthe game/William‘‘Skip’’Miller.—2nded. p. cm. Includesbibliographicalreferencesandindex. ISBN978-0-8144-1456-9 ISBN-10:0-8144-1456-7 1.Salesmanagement. I.Title. HF5438.4.M543 2009 658.8(cid:2)1—dc22 2009002852 (cid:2)2009William‘‘Skip’’Miller. Allrightsreserved. PrintedintheUnitedStatesofAmerica. Thispublicationmaynotbereproduced, storedinaretrievalsystem, ortransmittedinwholeorinpart, inanyformorbyanymeans,electronic, mechanical,photocopying,recording,orotherwise, withoutthepriorwrittenpermissionofAMACOM, adivisionofAmericanManagementAssociation, 1601Broadway,NewYork,NY10019. Printingnumber 10 9 8 7 6 5 4 3 2 1 Contents Acknowledgments ix Preface xi Chapter 1 ProActiveSales Manager—Definingthe New Breed of Sales Manager 1 WhatIstheActualRoleoftheSalesManager? 3 WhatMakesaSuccessfulSalesperson? 4 WhatMakesaSuccessfulSalesManager? 7 WhatAretheSimilaritiesBetweentheTwoSkills? 9 WhatTasks DoestheSalesManagerPerformona Day-to-DayBasis? 10 WhatExpectationsArePlacedonthe Sales Manager? 11 ManagetheProcess,NotJustthePeople 12 TheFirstTool—ThinkThreetoSixMonthsinto theFuture 13 TheSecondTool—BeProActive 14 TheThirdTool—DevelopObjectives—M2O/t 17 TheFourthTool—CallforHelp 18 TheFifthTool—HaveYourPeopleEffectively ManageThemselves 20 HowDoIKnowWhetherIAmanEffective Leader? 21 GrenadeWalls 21 TwoRulesofLeadership 22 (cid:3) CreatingaSalesCultureIsJob 1 23 iii iv Contents Chapter 2 Sales Cultures and the Ability to Communicate Them 24 ThePygmalionEffect 25 ThinkingProActively—Thinking intheFuture 27 CurrentSalesCulture 28 CurrentCompanyCulture 29 SalesTeamCultureNinetoTwelveMonthsOut 29 CreatingtheCultureProActivelyand ImplementingIt 30 (cid:3) Rule 1:BetheFuture 31 (cid:3) Rule 2:ThinkCulture BeforeTactics 32 (cid:3) Rule 3:GoBackward 32 (cid:3) Rule 4:CreateandCommunicateYour M2O/t’s 34 (cid:3) Rule 5:TheValuePyramids—Advanced FutureVisionWorkshop 35 YouCan’tRidetheBus 38 Chapter 3 Manage the Right Things—Time and People 40 ManagingTime 41 MaximizeandInvest 41 TheSalesManager80/20Rule 42 ManagingtheAPlayers 43 ShowMetheMoney—AnInsurancePolicy 48 Planning—FocusonTomorrow;TodayIsOver 51 PowerHour 52 MeasureIt—SettingMeasurableObjectivesThat Work 53 RevenueNumbersAreReactive 54 RevenueNumbersMeasuretheWrongThing 55 SubjectiveandObjectiveMeasurements 55 TheSkipMillerSalesManagementSuccess Formula 56 Frequency 56 Competencies 57 Miller17 57 Contents v Chapter 4 Finding and Recruiting the Best Sales Team 63 HowtoInterviewandHiretheRightSalesperson theFirstTime 63 TheLawandthe Interview 64 QuestionsYouCannotAsk 65 TheHiringProcess 67 TheThreePerspectives 68 InitialHomework 69 ViewYourCurrentOrganizationandCulture 70 ObjectiveSalesTeam CultureAssessment 71 WheretoFindtheGoodOnes 75 DistributionChannelsforCandidates 75 Recruiting 80 Advertising 84 PreparefortheInterview 85 ObjectiveandSubjectiveMeasurements 85 TheInterviewProcess 103 TheA-B-CInterviewProcess 103 TheTwenty-MinuteInterviewProcess 106 ASimpleButEffectiveInterviewProcess: Connect-Draw-Give-Close 107 Interview—SalesCall 110 ToolsfortheSalesInterview 111 WhoClosesWhom 117 CharacteristicsofaGreatSalesperson 118 ProActiveReferenceChecks 120 TheOfferThatWorks 122 TheSubjectiveInterview:TheFinalAssessment 124 CelebrateSuccess:ClosingtheDeal 125 Chapter 5 Corrective Action 127 StartingaCorrectiveActionProcess 127 TheCorrectiveActionProcess 128 Counseling 129 WrittenWarning 130 UseofMetrics 132 vi Contents FinalWrittenWarning 135 Termination 136 TerminationGuidelines 136 It’sNotYourResponsibility 139 CoachingandCounseling ThroughtheProcess 141 FinalThoughts 141 Chapter 6 ProActive Management Skills 142 CoachingandCounseling:HowtoBe aMaster CommunicatorinAnyOrganization 142 CoachingandCounseling 142 TheCoaching/CounselingWheel 144 TheCoachingSalesCall 145 TheCoaching Call 147 TheJointSalesCall 149 TheUnexpectedSalesCall 150 Focuson theAPlayers 151 CoachingandCounseling YourBossEffectively 151 Motivation—KnowWhyPeopleDoWhatTheyDo andBeOneStepAhead 154 Praise 157 RewardandRecognition 157 Learn-and-GrowChallenges 159 MotivationalDirection 161 UsingTechnologytoCommunicate 163 Chapter 7 If You Can’t Measure It, Why Do It? 164 TracktheMaybes 165 KeeptheInsurance 166 ManagetoOneSheetofPaper:The30-60-90Report 169 30-60-90Rules 169 The30-60-90Report 171 EffectiveReportsinTenMinutesaWeek 180 GettingReportsinonTime 182 WhatKindofaManagerAreYou? 182 ExpenseManagement 184 Contents vii Chapter 8 Territory Planning, Compensation, and Rewards 185 StrategicallyDeployingtheSalesTeam 185 TheProActiveSalesMatrix 186 DeadZone 190 MaintainZone 190 RedZone 191 Compensation 193 Strategicvs.TacticalCompensation 193 ProActiveCompensationGuidelines 193 CompensationandTerritory Timing 199 TheLawofCompensationPlanTiming 201 TheRevenueCurve 201 StackRankings 203 SalesTraining 204 TheFiveSalesCompetencies 204 CreateLeverage—RewardsandPraise 207 StayFocusedor PayFree Money 208 Chapter 9 Sales Meetings 210 WhenandHowtoHave SuccessfulSalesMeetings 210 AgendaPlanning 211 TimePlanning 213 ContentPlanning 214 OptionalMeetings 215 Chapter 10 Create the ProActive Action Plan 218 TheCoachingWall ofPrinciples 218 SettingGoals andMakingThemWork 221 Short-Termvs.Long-TermGoals 222 MeasurableGoals 222 Communication 224 GoandMakeaDifference 225 TheA-B-CBellCurveAppliestoManagersas Well 226 TheSupportStructureBackattheOffice 226 viii Contents Chapter 11 The Technology of Sales 228 DecreasingOrderTime 228 IncreasingtheSalesperson’sAbility toSell 229 IncreasingBreadthandDepth 232 TheNewProcess 232 TheNewDashboard 233 GettingThingsDoneinaTeamSell 234 GettingThingsDonewithYourCustomers 234 Disciplineand theWilltoChange 234 Index 237 Acknowledgments This is for all the Sales Managers who get it. The ones who get having faith, trust, and confidence. To the managers who put in theextraeffortandletthesalespeoplethrive,asopposedtoput- ting them through the inquisition every week. Especially the oneswhotelltheirsalespeopletogoaheadandtry,eventhough theyhavenever triedit,andlettinggojustseemsso hard. Nowherein theorganization isperformanceso visible.You aredoingagreatjobbygettingthingsdonethroughothers. Tomybusinessfriendsandclients;thiscouldneverhappen withoutyou.Thankyouvery,very,much. To the thousands of salespeople . . . we are trying to make themsmarter.Bepatientplease. As always, to my family. You are the reason. To Susan, you aremypurpose. ix
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