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In today’s economic climate it is even more important
to keep your focus on sales and the steady growth of your
business. As competitors find it difficult and scale back
there will be more opportunities for you, if they don’t
make it then there will be more customers for you. As the
saying goes “when the going gets tough, the tough
get going”.
For many businesses they don't have the need, the budget, or the desire to take the risk of hiring a full-time Sales Director or Manager to manage the Sales team. The reality is that your best Sales person is not necessarily the best person to move into this role as the Sales team gets bigger or more geographically dispersed. After all inevitably he or she will be spending less time "selling" and more time "managing". This is not good news when Sales are harder.
What we have been doing over the last three years is providing interim and part time Sales Directors to performance manage the Sales teams in client companies and we really believe this is a long term solution for companies not able to hire full time Sales Management. The benefits are numerous:
- More cost effective paying for 1-2 days per week rather than 5 days
- Independence and objectivity
- Less intrusive for the Sales team so they become more independent
- Reduce the need for management to get involved in Sales performance
- Real experience of managing, developing, building and motivating successful sales people
- Flexible resource that can be turned on or off as needed
- Sales team learn new skills from experienced Sales Directors
- Consolidate and streamline Sales reporting and pipeline management
- Meeting and call shadowing to improve presentation, communication, and negotiation skills
- Proper coaching and mentoring of Sales team
- Assistance in identifying poor performers and Sales people in the wrong job
- Making sure that motivation and incentives reflect the Sales market-place
- Helping with strategic direction of company and growth objectives
- Using executive Global 500 network to assist with Sales
We have helped all sorts of Business to Business companies; some on a project basis getting them in better shape for sale or merger; some to assist the Managing Director start a new business or reorganise a function; some with start up funding but no Sales management structure, and many others to improve Sales systems, Sales processes and the performance of their Sales People.
Please call us to discuss your challenge, it is more than likely that we have heard it all before and have examples of solutions we have provided to reassure you that we can help.
Business
Link Hertfordshire News Item
4
Tec Security Ltd was established in 1992 by Managing Director,
Ralph Sherriff, to provide bespoke, high-tech security
systems. They have become one of Britain’s leading
independent high quality security installation companies and
now employ 20 staff.
The
problem
Ralph explains “Despite having a small
sales team, I had been the top salesman in the company and
knew this situation had to change. I wanted simultaneously to
grow sales, develop the sales department and to step away from
managing the sales team so that I could focus my efforts on
the overall management of the business - the bigger picture.
“I
tried several approaches with varying degrees of success, but
in February 2006 my general manager suggested bringing in
someone to ‘interim-manage’ the sales team and develop their
skills and capability. I decided to approach Business Link
because I knew that I would get impartial, appropriate and
objective advice.
The
solution
Gill Targett-Adams, Business Adviser at
Business Link, worked with Ralph to identify where he needed
help and to develop a solution which would take his business
forward. She helped Ralph to re-benchmark 4 Tec Security’s
business performance using the Business Performance
Diagnostic, which confirmed Ralph’s belief that sales growth
was lagging behind that of their competitors.
Ralph
and Gill discussed the type of support which Ralph wanted,
especially the outcomes which he wanted the project to
generate. Using Business Link’s Supplier Matching Service,
which uses a database of approved consultants and suppliers of
business services, Gill sourced three potential suppliers who
could take on the interim sales management role. Ralph met two
of the potential suppliers and selected Matt Jefferson
of Jefferson Sales Consultancy, the supplier he
believed would be the best ‘fit’ for his project.
The
outcome
Matt worked with 4 Tec Security’s sales
team over three months and significant increases in the sales
capacity of the sales team members were achieved during that
period. As Ralph says “It was important to make sure that the
project was on-track and evaluate performance as it
progressed. I am very pleased with the way that the department
has developed and continues to do so. The project was
completed on budget and within the planned timescale.”
Sales
Outsourcing:Sections published in
Independent Business – June 2006 Hertfordshire
Edition
This article briefly explores the question of
whether companies should outsource their sales function and/or
look outside their organisation for support with
sales.
There is definitely a lack of flexible and
shared-cost sales expertise for small and medium sized
businesses. If we need an accountant, solicitor, or IT
specialist we are generally spoilt for choice, and can engage
them usually on either an hourly or retention basis. With
sales resource there is generally only the option to employ a
sales person full-time or use a telemarketing/telesales
operation.
Sales outsourcing is still relatively new
but it is catching on as a flexible, pay-as-you-need, service.
After all, if you feel comfortable outsourcing your finance
function why wouldn’t you feel the same about outsourcing
sales. The issues for both come down to “perceived control”
and of course “trust”.
As many of you know, hiring
sales people is not enough, they need to be managed and their
activity and results properly monitored. (Some people can work
independently and get on with it, others cannot, and you may
not always find an individual who can sell and also be
independent). If you’ve managed a large diverse sales team
then you’re in a better position to do this than for example
an already very busy Managing Director.
So why would
you look outside your organisation or hire someone part-time?
External perspectives on your business are valued, and
introducing tried and tested methodologies can work for most
business types, after all where would “management consultancy”
be if this wasn’t true. However, there are a number of
additional reasons why using an external sales consultant or
“interim” makes sense:
- Broader industry/sector experience and executive network
- Independence and objectivity
- External perspective on your sales and marketing
proposition
- Sales process methodologies
- Understanding of sales key performance metrics
- Been there, got the t-shirt in the sales discipline
- Clearer focus, enthusiasm and motivation – vested
interest in performing well
- More senior sales expertise than you could afford
full-time
- Cost – no fixed costs
- Flexibility – on a need basis
Generally sales
people stick to one industry or sector and have a specialism
and network that reflects this. Many sales management
consultants have deliberately worked across industries and
sectors to build up a more varied and layered experience which
provides “out of the box” thinking and means they can work for
different sorts of businesses. Independence and objectivity
enable the consultant to make apolitical decisions and see
things more clearly without historical factors or being caught
in a silo. They can also be more critical about your sales and
marketing proposition to customers and help you differentiate
from competitors (what makes you different, what are you
offering, why would I buy from your company?).
Sales
process follows a defined set of stages within the
qualification and close of a sale and can be implemented in
any business with minimal tweaking. If you are not selling
effectively it usually means there is a gap or breakdown in
the sales process within your company. Do you have the right
sales structures in place, do your sales people have the tools
to be most effective, what customer relationship management
system is used, how accurately do they forecast business
coming in, how are they incentivised and motivated?
In
many businesses the sales people are hired by the Managing
Director and he or she does not know what sales people should
do, how they should approach the sale or the customer, what
are appropriate activity levels, what are the benchmarks,
after all he or she just want them to “sell”. Often the sales
people moved into a sales position from another area of the
business and have had no formal sales training. By introducing
key performance metrics and even formal sales reporting the
Managing Director will be able to “performance manage” the
sales function.
We all know we get a bit stale when we
do the same thing day in day out. Also sales people do “burn
out” and usually have 2-3 years of success before their sales
dwindle. A fresh approach is needed and someone who works in
your business for a fixed or ongoing part-time basis brings
enthusiasm to the role and a clear focus. Consultants don’t
take lunch breaks! Their attitude is very different from that
of a full-time member of staff. If they don’t perform well you
won’t ask them back and you won’t recommend them to other
companies.
Many companies would prefer to have a great
sales person 2 days a week than a mediocre one 5 days a week,
and if we could afford them full-time all the better. However,
the likelihood is that we might find it hard to handle that
much business, and therefore a part-time “heavy hitter” works
well.
So how much is it going to cost, and won’t it be
more expensive than hiring someone full-time? The daily rate
will certainly be more expensive than the cost of employing
someone at first glance if you annualise it. However, did you
factor in the following; pay as you need, no bonus to pay, no
pension costs, no car costs, no training costs, no health
cover, no computer, no mobile phone, no expense account, no
recruitment or redundancy costs, no office space, no
employer’s National Insurance (12.8%), and you don’t need to
pay them for 30 days paid holiday and 10 days of average sick
pay per year. You’ve probably worked it out for
yourself!
Matt Jefferson is Managing Director of
Jefferson Sales Consultancy Ltd based in Hertfordshire and can
be contacted via email at:
matt@jeffersonsales.co.uk
or by phone: 020 7096 2005. He is a member of the Watford and
West Herts Chamber of Commerce.
By providing an
objective and independent view of your sales proposition and
strategy for growth, sales processes and management systems,
sales peoples’ ability and performance, business development
and customer acquisition strategies, Jefferson Sales
Consultancy is able to see things clearly and ensure that you
get the results you need.
http://www.jeffersonsales.co.uk/