A chain is only as strong as its weakest link. This analogy has been applied in the sports world for years. It rings true for sales teams as well. If a manager is truly looking to succeed, time must be spent raising the level of play for the lowest performers on the team. Look at it this way: in order for a manager to achieve his/her targets, the achievers on the team have to overachieve to make up for the underperformance of the others on the team.
If you have been around this industry for a while and have worked for some of the larger companies, you have probably seen a thing or two that makes you scratch your head and ponder the mysteries of the universe. Things like forced hire campaigns or the flip side: firing the bottom 10% of sales employees carte blanche. Obviously, the owner of a dealership would not consider for a minute hiring people just to get to a certain staff level or blindly firing employees based on a point in time.
We must constantly evaluate performance. The operative question really is, who should stay and whom should we upgrade. We are all familiar with the term upgrade. Simply put, can we get someone who is better equipped to fulfill the requirements of the sales representative role? Hey, let’s be really clear, I am not advocating change for change’s sake. Assuming our territories are set correctly and quotas are set based on territory potential, we should be able to have frank and honest business discussions about performance – and our expectations for achieving quota among other things.
If we are constantly evaluating performance, what criteria should we consider? In order to make good decisions on performance we need to be as clinical as possible. ‘She is a great person’ is not really something that we can pull into a performance appraisal. Obviously, performance to plan (quota) is, at the end of the day, the most salient measure of performance. However, in the case of less tenured employees you need to look a little deeper. Pipeline is the best indicator of future results. As a result you should also evaluate pipeline trends as an indication of performance. A rep with little tenure that is consistently building pipeline levels may warrant more time to deliver the desired performance. Pipeline growth is the ultimate measure of someone’s effectiveness of executing the first half of the sales process. Contrary to popular belief, fifty calls a day does not guarantee success.
The problem that I see most frequently is that managers tend to hold on to underperformers because they do not have a people pipeline – someone ready to plug in when turnover occurs. In most cases, Bad Breath is not better than No Breath. If you really think about what is happening with the underachievers you will see what I mean. First, they take the majority of the manager’s time. You want to see everyone on your team succeed so naturally you work to help the low performers close deals and build pipeline. When you get to the point that you, as the manager, are doing all of the work of the rep, it is time to cut bait. You see you are propping up their performance at the cost of developing the producers on your team. I know you think you need someone to ‘cover that territory’ but you are effectively doing that now – and paying a rep on your results.
Secondly, you need to win the recruiting battle. No, I am not talking about getting better recruits than your competitors. I am referring to the fact that the non-performers are recruiting too. When the rep is put on a plan or starts to feel job pressure they typically start recruiting others to their cause. Many times they look to place blame on the manager or the company or a vast right wing conspiracy. All kidding aside, these reps can have a toxic affect on the rest of the team.
Finally, consider what your achievers, the people that you count on to deliver results, are thinking. Why do you allow the non-producers to stick around? Several months down the road after you have ramped up recruiting and had difficult conversations you finally act on the rep. The reaction in the bullpen is, “What took you so long?”
Effective managers recruit even when they do not have open territories. Let’s face it, in today’s world you never know when a rep will choose to leave. You should have a people pipeline of at least two ‘ready prospects’. This will allow you to break the cycle of being held hostage by non-performers.
So where do you find this pipeline of quality people? I like referrals. The bottom line is you tend to have more success when someone you trust or have a business relationship with tells you someone is worth talking to. It works for prospecting and it works in recruiting. So how do you get these referrals? The best way to find good reps is to ask people who interact with reps on a consistent basis. Some sources of referrals include your best customers, leasing partners, and software vendors.
As a rule, you should develop employees if at all possible. Unfortunately some folks are just not a good fit. If it were easy, everyone would be good at sales. Ultimately we have to make critical evaluations on sales reps and part ways occasionally. The tough decisions are always easier when you have options. If you have a solid people pipeline you will feel more prepared to make a change. When you can bring someone in that will be better than the midpoint of your team you have effectively raised the talent level on your team and strengthened your weakest link.
