Leadership Styles Differ Based on the Situation: Sales Growth vs. Sales Recovery 

Leadership Styles Differ Based on the Situation: Sales Growth vs. Sales Recovery 

by soshaughnesseyNo Comments

By Sean O’Shaughnessey & Kevin Lawson

As B2B-focused businesses navigate the ever-changing landscape of a post-COVID economy, sales leaders must adopt and institute strategies to meet the demands of a business in growth or recovery mode. 

While the goal for a sales organization may be to sustain the growth trajectory aligned with organizational goals, the year-over-year approach to achieving success can vary significantly. Sales leadership styles depend on the current situation, the starting point, and the existing team charged to accomplish the goal. Good sales leaders find a way to achieve the annual goal; great sales leaders find ways to achieve the goal and systemize the process to allow for repeatable growth, pivots, and rapid scale.      

Growth Focused Leadership

Sales leaders focused on growth must proactively identify new market opportunities, verticals, geographies, platforms, or sales talent. They must invest in new sales channels and technologies, along with onboarding and training programs to support the growth of their sales teams and the acquisition of new client relationships.

When sales teams are in a breakout stage of growth, it can be challenging to gain the discipline to systems and alignment on processes and approaches due to the nature of managing client expectations on a wildly rising revenue outlook. This situation demands that all of the skills of a sales leader be applied consistently and strategically across the team and sales practices.  

Seasoned leaders know that hiring for an increased workload and rapidly scaling teams can be tempting. However, this approach can often lead to problems down the line. Further, we must suppress the desire to hire quickly instead of exercising patience in finding the right candidate to continue to scale teams and culture appropriately. That patience means we must endure the short-term challenges of being under-resourced and under a great deal of pressure to keep performing as if we already had the resources on the team.  Instead, it is essential to focus on finding the right candidate who will not only be able to handle the current workload but also contribute to your team’s culture and help your organization achieve long-term success. Take the time to vet candidates carefully and consider not only their skills and experience but also their values and how they fit into your team’s dynamic. By prioritizing quality over speed, you’ll set your team up for success in the long run.

Another important consideration when building a team is to prioritize scalability. It’s easy to get caught up in your organization’s immediate needs and hire for the present moment, but it’s crucial to think about how your team will grow and evolve. Look for candidates with the potential to take on new responsibilities and leadership roles as your organization expands. Consider investing in training and professional development programs to help your team members acquire new skills and stay up-to-date with the latest industry trends. By prioritizing scalability, you’ll be better equipped to adapt to changing business needs and continue to achieve success over the long term.

Discipline to proven systems is essential for leadership and having transparent KPIs and organizational goal communications. The rigor and discipline of a sales leader in a growth cycle are particularly demanding. One primary concern for leaders in this mode is talent loss due to competitive pressures to grab your resources for their growth. It would help if you had experience and discipline for these growth moments.

Growth-Focused Action Items:

1. Identify new markets: Sales leaders must be able to identify new markets, niches, or customer segments that their business can serve. They should be able to analyze market trends, competitive landscapes, and customer needs to develop effective sales strategies. Leaders need to coach and build their teams on creating differentiation strategies for each new space entered.

2. Invest in sales resources: Sales leaders and business owners should invest in sales enablement tools like technologies and training programs to support the growth of their sales teams. This effort may include hiring new sales representatives, implementing new sales processes or technologies, and providing ongoing training and development opportunities.

3. Build Strong Culture: Cultivating a strong sales culture that emphasizes teamwork, collaboration, and continuous improvement is paramount for growth. These cultures are hallmarked with high degrees of trust and camaraderie. They should encourage their sales teams to share best practices, provide feedback and support, and celebrate successes.

4. Coaching for Success: Sales training is a crucial part of any organization’s growth strategy. However, it’s important to remember that training is just the first step in the process. Without proper reinforcement and coaching, the information learned during training is often forgotten as salespeople get busy with their day-to-day responsibilities. Investing in ongoing sales coaching is critical to ensure that your team can effectively apply what they’ve learned in training. Sales coaching can reinforce best practices, provide individualized feedback and support, and help salespeople stay motivated and focused on their goals. By combining sales training with coaching, sales leaders can achieve lasting results and drive revenue growth for your organization.

Through coaching, you can identify areas where individual team members may be struggling and provide targeted support to help them improve. This support can include assisting salespeople in developing more effective sales strategies, providing guidance on overcoming objections, and offering tips on better managing their time and workload. By investing in your team’s ongoing development through coaching, you’ll improve their skills and abilities and foster a culture of continuous learning and improvement. Sales coaching can lead to increased engagement and job satisfaction, ultimately resulting in higher retention rates and better performance for your organization.

Leadership for Sales Recovery 

The events of the last decade or two have taught us that geopolitical or global economic events can create massive disturbances in small and medium-sized businesses and cause the business to go into Sales Recovery mode. During these times, business leaders must create an all-hands-on-deck mentality to re-gaining revenue and sales momentum that has either evaporated or been lost.

Think back to the early stages of when you opened your business. Those first few sales years, likely, were filled with attracting clients whose primary qualification was being willing to say yes to your product or service and their ability to pay for your goods/services. It was simple and gritty, and your leadership style was to hustle and close as much business as possible. This is the kind of effort required to recover lost revenue streams.

Being laser-focused on recovery becomes the all-consuming focus for sales leaders, and modifying behaviors and requirements to achieve recovery becomes the management style. Think of this as a strategic sprint where you apply this methodology and tactics to get back to the previous point of success and then shift to the growth-focused leadership style. The following are a couple of tips to get the recovery process started.

Recovery Leadership Focus:

1. Prioritizing profitable products/services: Sales leaders must analyze their sales data to identify the most profitable products or services and focus their sales efforts on those offerings. They should also consider upselling or cross-selling to existing customers to increase revenue.

2. Streamlining sales processes: Sales leaders should look for ways to streamline their sales processes to increase efficiency and reduce costs. This may include implementing new sales technologies, improving lead generation and qualification processes, and simplifying sales contracts and proposals.

3. Building strong customer relationships: Sales leaders must build solid relationships with their existing customers to encourage repeat business and positive word-of-mouth referrals. They should invest in customer success programs, provide exceptional customer service, and regularly communicate with customers to understand their needs and address any concerns.

4. Salespeople must be successful: During a “recovery mode” of operating a business, each salesperson must be relied on to bring in their share of the company’s needs. One of the critical measures of success for a sales team is whether or not the revenue they generate outweighs their cost to the company. Sales leaders must set clear revenue goals for their team members and ensure that each salesperson can meet or exceed their targets. If a salesperson consistently falls short of their goals, the sales leader needs to take swift action to address the issue. This action could involve providing additional training or coaching, reassigning sales territories or accounts, or even making the difficult decision to terminate the salesperson’s employment. By proactively addressing underperforming sales team members, sales leaders can help ensure that the team can meet its revenue targets and contribute to the organization’s overall success.

Another important consideration when evaluating the performance of sales team members is the concept of burden costs, i.e., the costs associated with supporting a salesperson’s activities, such as overhead expenses and administrative support. Sales leaders must keep a close eye on burden costs and ensure they are within the revenue generated by individual salespeople. By regularly monitoring burden costs and revenue generation, sales leaders can make data-driven decisions about allocating resources and prioritizing sales activities. This effort helps ensure that the sales team is operating efficiently and effectively and that each team member contributes to the organization’s overall success.

Whether leading sales for growth or recovery, the situation requires approaches and strategies tailored to each internal challenge. Sales leaders must be able to adapt their leadership style to the needs of the business and the stage of the business cycle where the focus remains on prioritizing profitability, streamlining processes, and building solid relationships with customers to achieve long-term success.

This article originally appeared in two parts at https://salesxceleration.com/adapting-leadership-styles-to-the-situation-sales-growth-vs-sales-recovery-part-one-sales-growth/ and https://salesxceleration.com/adapting-leadership-styles-to-the-situation-sales-growth-vs-sales-recovery-part-two-sales-recovery/

About our guest co-author: Kevin Lawson is the President of Lighthouse Sales Advisors. Lighthouse Sales Advisors is a sales leadership solution provider for small businesses. Lighthouse helps business owners navigate the potential pitfalls around sales growth, sales turnaround, or scaling up by leveraging sales acumen and decades of experience to build effective sales teams.

Leading Your Sales Team to Success: 5 Best Practices You Need to Know

Leading Your Sales Team to Success: 5 Best Practices You Need to Know

by soshaughnesseyNo Comments

In today’s highly competitive business environment, sales leaders play a crucial role in the success of their organizations. They are responsible for setting sales targets, creating effective sales strategies, and motivating their teams to achieve their goals. However, being an effective sales leader requires more than just setting targets and motivating your team. This article will explore the five best practices of effective sales leaders.

1. Set clear and achievable goals.

One of the primary responsibilities of a sales leader is to set clear and achievable goals for their team. Setting goals is critical to keeping your team focused and motivated. With clear goals, your team will know what they are working towards and may be able to achieve the results you expect.

When setting goals, it’s essential to make them SMART – specific, measurable, achievable, relevant, and time-bound. 

  • Specific goals are clear and well-defined. 
  • Measurable goals allow you to track progress and determine success.
  • Achievable goals are realistic and within reach. 
  • Relevant goals align with your organization’s overall objectives. 
  • Time-bound goals have a deadline or timeframe for completion.

Setting SMART goals gives your team a clear direction and purpose. This guidance helps them focus their efforts on the activities that will help them achieve their objectives.

2. Develop a sales strategy.

Once you have set your sales goals, the next step is to develop a sales strategy. A sales strategy outlines your team’s approach to achieving its goals. It includes the tactics and activities that your team will use to reach its targets.

Your sales strategy should be based on deeply understanding your market, customers, and competitors. It should also take into account your organization’s strengths and weaknesses. A good sales strategy is flexible and adaptable. It allows your team to adjust its approach based on the market or changes in customer needs.

When developing your sales strategy, it’s essential to involve your team. Your sales team has firsthand knowledge of your customers and their challenges. You can tap into their expertise by involving your team in the strategy development process and gain buy-in for the approach.

3. Provide ongoing training and coaching.

Sales is a dynamic and constantly evolving field. To be successful, your sales team needs ongoing training and coaching. Ongoing training helps your team stay up-to-date with the latest industry trends and best practices. It also helps them develop new skills and techniques that can help them close more deals.

Coaching is equally essential. Sales coaching helps your team identify areas for improvement and develop strategies to overcome challenges. It also gives your team feedback and support, helping them stay motivated and focused.

You must understand your team’s strengths and weaknesses to provide effective training and coaching. This requires regular communication and feedback. Regular one-on-one meetings with your team members can help you identify areas for improvement and develop tailored coaching plans.

4. Foster a positive team culture.

Sales can be a high-pressure and stressful environment. To be successful, your team needs to work well together and support each other. This requires a positive team culture.

A positive team culture is built on trust, respect, and collaboration. It’s a culture where team members feel valued and appreciated. It’s also a culture where team members feel comfortable sharing their ideas and opinions.

As a sales leader, you are critical in fostering a positive team culture. You need to lead by example and model the behaviors you want to see in your team. You also need to encourage open communication and provide opportunities for team members to collaborate and work together.

5. Use data to drive decisions.

Finally, effective sales leaders use data to drive their decisions. Data provides insights into your team’s performance and helps you identify areas for improvement. It also lets you track progress toward your goals and make informed decisions about your sales strategy.

To use data effectively, you need the right tools and systems. This includes a robust CRM system that captures and tracks critical sales metrics such as leads, opportunities, and pipeline value. It also provides analytics tools to help you analyze your data and gain insights into your team’s performance.

Data can also be used to optimize your sales process. By analyzing your sales data, you can identify bottlenecks and areas where your team struggles. This allows you to develop targeted interventions to improve performance.

Effective sales leaders use data to continuously improve their sales process and drive results. They are always looking for ways to optimize their approach and stay ahead of the competition.

Being an effective sales leader requires a combination of skills and practices. It requires setting clear and achievable goals, developing a sales strategy, providing ongoing training and coaching, fostering a positive team culture, and using data to drive decisions. By following these best practices, sales leaders can motivate their teams and drive results. They can also create a culture of continuous improvement that allows their organization to stay ahead of the competition.

Header image by Tumisu from Pixabay
Maximizing Sales Performance: The Power of Coaching

Maximizing Sales Performance: The Power of Coaching

by soshaughnesseyNo Comments

As a small business owner, you know that your company’s success depends on your sales team’s performance. That’s why providing your team with the tools they need to improve their skills and achieve goals is crucial. Regular coaching sessions help your sales team grow and perform at their best.

Identify Areas of Struggle and Success

Coaching allows you to identify areas where sales team members are struggling; while recognizing areas of success. You help your sales team focus on growth areas by acknowledging what works well or needs improvement. This effort fosters a culture of continuous improvement and provides sales team members with the tools they need to be successful.

Be Specific and Constructive

It is essential to be specific and constructive when providing coaching and feedback and providing actionable feedback that focuses on particular areas for improvement. By focusing on specific areas for improvement, you can help your sales team make changes to improve performance.

Provide Support and Guidance

Regular coaching and feedback sessions allow sales leaders to work closely with each sales team member, providing them with the guidance and support they need to improve their skills and achieve their goals. This coaching can include setting individual sales targets, providing training resources, and offering personalized support for each team member’s unique needs. By providing this support and guidance, you can help your sales team to succeed and contribute to the overall success of your business.

Regular coaching and feedback sessions are essential for improving the skills and performance of your sales team. By identifying areas of struggle and success, being specific and constructive in your feedback, and providing support and guidance, you can help your sales team achieve their goals and drive success for your small business. Remember, investing in your sales team is an investment in the future success of your business.

92% of Small Companies Don’t Do Much Sales Training

92% of Small Companies Don’t Do Much Sales Training

by soshaughnesseyNo Comments

As a small business leader, you know that sales are the lifeblood of your company. Training your salespeople and non-salespeople on the best practices in B2B sales is crucial. Unfortunately, a recent study by Sales Xceleration® revealed that 92% of all small companies surveyed do not do sales training. This lack of investment is a concerning statistic.

The benefits of sales training for your employees are numerous. By providing training on best practices in B2B sales, you’re investing in the skills and knowledge of your sales team. This can translate into increased sales, higher revenue, and a more robust bottom line. Additionally, a well-trained sales team can improve customer relationships, build trust with prospects, and increase customer loyalty.

But sales training isn’t just for your sales team. Your non-salespeople, including your customer service representatives, marketing team, and even your receptionist, can benefit from sales training. When everyone in your company understands your sales process, they can work together to support your sales team and contribute to your business’s success (I assume you have a documented sales process, but that is the subject of another post). By providing training on best practices in B2B sales, you’re creating a company-wide culture that prioritizes customer satisfaction and sales growth.

Various sales training resources, including online courses, workshops, and in-person training programs, are available. Consider bringing in an external sales consultant such as myself, Sean O’Shaughnessey. Additionally, you can leverage the expertise of your existing sales team by having them lead internal training sessions or mentor other team members.

It’s important to note that sales training isn’t a one-time event. To truly reap the benefits of sales training, you need to make it an ongoing priority. This can mean offering regular training sessions, providing resources and support for employees who want to continue learning independently and incorporating sales training into your onboarding process for new hires. This has been the subject of the last Two Tall Guys Talking Sales podcasts, so it would be good for your team and you to subscribe to that resource.

Sales training is an essential investment for any small business that wants to grow and succeed in today’s competitive marketplace. By providing training on best practices in B2B sales, you’re investing in the skills and knowledge of your team, creating a customer-focused culture, and setting your business up for long-term success. With so many resources available, there’s no excuse for not providing your team with the training they need to succeed. Don’t be one of the 92% of small companies that don’t prioritize sales training – take action today and start investing in the future of your business.

95% of Small Business Say They are Below Average or Worse in Their Sales Performance

95% of Small Business Say They are Below Average or Worse in Their Sales Performance

by soshaughnessey1 Comment

We are almost done tabulating the results for the grading of small businesses. Every year, Sales Xceleration asks the CEOs and owners of small businesses to grade themselves on how well their company is running its sales operations.

Like last year, 95% of all companies couldn’t get to the “average” level of execution.

But 2022 was worse than last year since more companies graded themselves as “Poor” rather than just “Below Average.” 

It is okay that small business owners or executives at small businesses do not know how to create a great sales organization, however …

… it is not okay for them not to fix it.

The reality is that most small business owners excel at many things. That is why they started their business. Perhaps, they are experts at:

  • manufacturing
  • design
  • software creation
  • operations
  • logistics

Or any of the hundreds of essential skills required to create a great company. But even though the small business owner is best-in-class in one or many of these disciplines, they still need to be better-in-class in producing or managing a sales organization. 

It may be okay that the small business leader cannot create an excellent revenue generation machine. Still, it is not okay that they don’t address the problem. The company and all of the people working for the company (along with their families) depend on that company. The owner needs to fix this problem.

But it is very hard for the small business owner to fix this problem.

They may not be able to find or afford an executive to at least get the “Excellent” rating. Let’s face it, that type of executive is in very high demand by companies that are much larger than small businesses.

The solution, of course, is to look for a Fractional Sales Vice President to help them. I am here to help. I help company owners realize the maximum value of their company by improving their revenue generation capability. ​To accomplish this, I help owners enhance their sales management, methodologies, processes, teams, and messaging. 

You can learn more about how small businesses are doing in generating revenue for their companies at two upcoming events.

If you are in Cincinnati, I will present on this topic at the Beers & Biz networking event on February 23. You can register for this event at https://www.eventbrite.com/e/beers-biz-b2b-networking-tickets-451941468097 but make sure that you arrive at 3:30 (I start on time) and sign up for the Revenue Growth breakout session.

You can also watch Kevin Lawson and me go through the study’s highlights, explain why the various grades are a problem, and then offer potential solutions to the issues. Kevin and I will be presenting at a special session of our monthly CEO Workshop on March 1, and you can register at https://www.linkedin.com/video/event/urn:li:ugcPost:7027766861027008512/

The company owner may be unable to make a best-in-class revenue generation engine within the company personally, but that doesn’t mean the owner shouldn’t create one. Fractional executives are available to fill in the gaps in the expertise that exists within the company.

4 Ways to Make the Most of Your Training Budget

4 Ways to Make the Most of Your Training Budget

by soshaughnessey2 Comments

Every company wants its salespeople to be well-trained. After all, better-trained salespeople mean higher quality products and services, which leads to happier customers and increased sales. But with the training costs averaging $1,459 per salesperson, it’s important to ensure that your training budget is being spent in the most effective way possible. Here are four tips for getting the most out of your training budget.

  1. Prioritize Your Training Goals
    The first step in making the most of your training budget is prioritizing your training goals. What skills do you want your employees to learn? What knowledge do they need to be able to do their jobs effectively? Once you’ve identified your goals, you can create a training plan to help your employees achieve them.
  2. Invest in eLearning Programs
    eLearning programs are a great way to train your employees without breaking the bank. Many different eLearning platforms are available, so you can find one that fits your company’s needs and budget. Plus, with eLearning, your employees can complete their training at their own pace and on their own time, which means they’re less likely to get overwhelmed or frustrated.
  3. Use Technology to Your Advantage
    Many types of technology can be used for training, from virtual reality simulations to online learning portals. By taking advantage of the latest technology, you can create a more immersive and effective training experience for your employees. Plus, using technology for training can help you save money by eliminating the need for travel and lodging expenses.
  4. Consider External Training Programs
    If you’re looking for more comprehensive or specialized training than what you can provide internally, consider partnering with an external training provider. These companies have the resources and expertise to develop custom training programs that meet your specific needs. And while external training programs can be more expensive than other options, they can also be more effective in helping your employees achieve their goals.

    External training providers also offer the added benefit of scaling up or down as needed, which can help you save money in the long run.

To increase retention and effectiveness, companies should offer reps additional training at times of need, provide them with access to supplemental material that reinforces what they’ve already been taught, and allow them opportunities to practice their skills in time frames connected to actual buying processes. They can do so by using the same technologies that are “disrupting” their customer-contact activities: videos and mobile apps that reps can view on their devices before, during, and after training initiatives.

Role-Playing: The Secret to Sales Training Success

There’s one secret ingredient that can make all the difference: role-playing. Role-playing allows trainees to practice their new skills in a low-stakes environment by simulating real-world sales scenarios. Not only that, but role-playing also helps trainees to better understand their customers’ needs and how to best meet them. As a result, role-playing is essential to any successful sales training program.

Continue reading →