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.

Two Tall Guys Podcast – Part 2 – Building and Scaling Successful Sales Teams: A Conversation with Tim Warren of Helium SEO – Episode 28

Two Tall Guys Podcast – Part 2 – Building and Scaling Successful Sales Teams: A Conversation with Tim Warren of Helium SEO – Episode 28

by soshaughnesseyNo Comments

In this podcast, Tim Warren, CEO of Helium-SEO, discusses his approach to handling difficult situations in a sales environment. He emphasizes the importance of coaching opportunities and scaling through challenges or problems with existing salespeople. Tim shares his approach to handling a situation where an account manager did not provide the level of service they were supposed to, causing a client to feel that the service level had dropped. He stresses the importance of being open, honest, and transparent, taking responsibility, and having a plan to fix the issue. As a CEO, Tim wants to show his team how to take ownership and responsibility for handling similar situations and eventually be able to handle them independently.

Tim emphasizes the importance of building a strong culture in a business. According to Tim, a company’s culture should be grounded in its core values, which should guide the behavior and actions of every team member. The culture should be so strong that it feels like a cult, somewhere between a business and a religion. Tim believes that a strong company culture can significantly impact business success by attracting and retaining top talent and creating an environment where everyone feels valued, motivated, and committed to achieving the company’s goals.

To maintain the company’s culture, Tim emphasizes the importance of hiring according to core values and being strict with those values when people do not live up to them. He suggests promoting and praising team members who embody the company’s core values. By doing so, it reinforces the importance of these values and helps to maintain the culture. Overall, Tim believes that building and maintaining a solid company culture is essential for business success.

Unlocking Your Company’s Potential: The Power of a Strong Sales Organization in Driving Revenue Growth and Boosting Valuation

Unlocking Your Company’s Potential: The Power of a Strong Sales Organization in Driving Revenue Growth and Boosting Valuation

by soshaughnesseyNo Comments

A strong sales organization is the cornerstone of any successful business. The sales team serves as the company’s lifeblood, driving revenue growth and ensuring long-term financial stability. When a company prepares for a merger, acquisition, or public offering, having a strong sales team can translate into a higher valuation. 

A strong sales organization is the backbone of a thriving business, as it directly impacts revenue generation. When a company’s sales team is well-organized, well-trained, and motivated, they become more effective in closing deals and fostering relationships with clients. This increased effectiveness leads to more sales, ultimately resulting in higher revenues and profits for the company.

By investing in a strong sales organization, businesses can capitalize on opportunities and achieve maximum value. The best sales organizations have a proven track record of success. These teams have established a consistent sales process, streamlined communication channels, and aligned with the company’s overall business goals.

A successful sales team is crucial for driving revenue growth. The following factors contribute to a sales organization’s ability to increase revenues and profits:

  1. A clear sales strategy
  2. A process-oriented approach
  3. High-quality sales training and coaching
Continue reading →
Two Tall Guys Podcast – Building and Scaling Successful Sales Teams: A Conversation with Tim Warren of Helium SEO – Episode 27

Two Tall Guys Podcast – Building and Scaling Successful Sales Teams: A Conversation with Tim Warren of Helium SEO – Episode 27

by soshaughnesseyNo Comments

In this podcast, Kevin and Sean talk to Tim Warren, the founder, and CEO of Helium SEO. Tim talks about his background and how he got into sales. He discusses his experience building technical engineering-focused SEO and SEM campaigns for mid-size and enterprise clients. He also explains how his company has been able to drive higher ROI for its clients.

Tim shares his leadership journey as a sales leader and how he has learned that star salespeople don’t always make great coaches. He emphasizes the importance of having a sales process in place and training salespeople effectively to ensure consistency in performance. Tim also talks about the challenges of growing a sales team, such as hiring the right people and scaling the team without sacrificing quality. He reinforces why his LinkedIn profile says he is “Recruiting rockstars to build Helium to $100M. Are you ready to take your career to the next level?”

This podcast provides insights into Tim Warren’s sales journey and his approach to building and leading successful sales teams.

How Small Businesses Can Compete with Larger Competitors Using the Fragment Sales Strategy

How Small Businesses Can Compete with Larger Competitors Using the Fragment Sales Strategy

by soshaughnesseyNo Comments

Small businesses often find themselves at a disadvantage when competing with larger, well-established companies. However, they can still succeed. It requires them to think creatively and strategically and to develop unique approaches to win customers over.

One approach small businesses can take is implementing the Fragment Sales Strategy. This approach is advantageous when small companies find themselves in David vs. Goliath-type sales campaigns, going up against larger competitors with more resources, references, and success stories.

Salespeople can increase their chances of success by focusing on specific areas where they can create value for the customer and differentiate themselves from the competition. The Fragment Sales Strategy is a methodology that breaks down the opportunity into smaller, more manageable pieces. This helps salespeople stay organized, identify key decision-makers, and manage essential milestones in the sales process.

Essentially, with a Fragment Strategy, salespeople are trying to change the opportunity to a smaller portion of the customer’s goals where they can be successful and convince the prospect to look at other needs in a future opportunity. A Fragment Strategy is essential if you want the prospect to adopt multiple “best-in-class” products, but the small business only offers a few of the “best-in-class” capabilities.

Understanding the goals of the customer is also crucial when implementing the Fragment Sales Strategy. Salespeople need to understand what the customer is trying to achieve and what challenges they face in reaching their goals. By focusing on specific goals and offering solutions that address those challenges, salespeople can increase the likelihood of a successful sale.

Small businesses can use five basic sales strategies to win more sales. These include Frontal, Flanking, Fragment, Defend, and Develop Strategies. The Frontal Strategy involves going head-to-head with the competition and trying to win over customers based on the product’s merits. Unfortunately, a salesperson for a small business can quickly lose with this strategy when competing against a larger competitor with more resources and, in theory, more successful implementations.

The Flanking Strategy is useful for a small business salesperson because it shifts the focus of the customer’s buying criteria to new or different issues that favor your solution. It means you are not playing by the rules. You are taking a completely different approach than your competitors expect. The challenge with a flanking strategy is that you need to understand the dynamics of the prospect completely. You must understand both personal and organizational needs. It can only be used in opportunities where the salesperson has an influential inside advisor (a Coach). Ultimately, the strategy needs a strong Champion. The strategy also requires you to have multiple value propositions that are relatively unique to your offering, which may not be available to the small business B2B salesperson.

The Defend Strategy focuses on keeping existing customers happy and preventing them from defecting to the competition. Of course, this strategy depends on the current relationship with the customer. It is only applicable if the prospect already has a business relationship with the small business.

Finally, the Develop Strategy involves identifying opportunities and developing products or services that meet customer needs. While this strategy allows the building of intense relationships, it can also be the most extended sales cycle, putting a small business at significant risk if the prospect doesn’t move forward after a long development process.

Small businesses implementing the Fragment Sales Strategy should focus on understanding their customers’ goals, identifying pain points, and offering solutions to those challenges. By breaking down the sales process into smaller, more manageable pieces, salespeople can focus on areas where they can create value for the customer and differentiate themselves from the competition.

Some questions that a salesperson might ask the prospect could be:

  1. What are your short-term and long-term business goals? For several reasons, asking a prospect about their short-term and long-term business goals is an essential part of the sales process for the salesperson of a small business. Firstly, it enables the salesperson to understand the customer’s specific needs and requirements, which helps them tailor their sales pitch and offer the best solution possible. Secondly, it allows the salesperson to identify opportunities for upselling or cross-selling by offering additional products or services that can help the customer achieve their goals. Thirdly, it helps the salesperson build a relationship with the customer by showing a genuine interest in their business and demonstrating how their product or service can help them achieve their objectives. Overall, asking this question can help the salesperson position themselves as a trusted advisor and increase their chances of closing the sale.
  2. What challenges are you currently facing in your business? – A salesperson would need to ask a prospect about the challenges they are currently facing in their business to gain a deeper understanding of their pain points and business needs. By asking this question, the salesperson can identify specific problems that the prospect is looking to solve and then position their product or service as a solution. Understanding the challenges also enables the salesperson to demonstrate their expertise and industry knowledge by providing insights and advice on how the prospect can overcome their obstacles. Additionally, asking about challenges shows the prospect that the salesperson is interested in their business and is committed to finding a solution that will address their specific needs, which can help build trust and a stronger relationship.
  3. What specific problems are you trying to solve with this purchase? – A business-to-business salesperson would need to ask a prospect about the specific problems they are trying to solve with their purchase to identify how their product or service can help the prospect achieve their goals. This question helps the salesperson understand the prospect’s needs, challenges, and requirements in-depth, allowing them to tailor their sales pitch accordingly. It also enables the salesperson to offer a customized solution that addresses the prospect’s unique problems and requirements, making the product or service more valuable to the prospect. Asking about specific problems also helps the salesperson build a stronger relationship with the prospect by showing that they are interested in helping them achieve their objectives rather than just making a sale. Ultimately, understanding the specific problems the prospect is trying to solve will help the salesperson close more deals and establish themselves as a trusted advisor in the eyes of the prospect.
  4. How does this purchase fit into your overall business strategy? – A business-to-business salesperson working for a small business would need to ask a prospect how their purchase fits into their overall business strategy to understand the prospect’s long-term goals and position their product or service as a strategic solution. This question helps the salesperson identify whether their product or service aligns with the prospect’s broader objectives, allowing them to position it as an investment rather than just a purchase. Understanding the prospect’s overall business strategy also enables the salesperson to identify opportunities for cross-selling and upselling by demonstrating how additional products or services can help the prospect achieve their long-term goals. Additionally, asking about the business strategy helps the salesperson build credibility by showing that they are interested in the prospect’s broader objectives and are committed to assisting them to achieve success. Ultimately, understanding how the purchase fits into the prospect’s overall business strategy can help the salesperson close more deals and build long-term relationships with their clients.
  5. What are the key drivers of success for your business? – A salesperson working for a small business and selling to another business would need to ask a prospect about the critical drivers of success for their business to understand their priorities and position their product or service as a strategic solution. This question helps the salesperson identify the specific factors most important to the prospect’s business, allowing them to tailor their sales pitch to those critical drivers of success. By understanding the key drivers of success, the salesperson can also demonstrate their industry knowledge and expertise by providing insights and advice on achieving success in those areas. Additionally, asking about the key drivers of success shows the prospect that the salesperson is interested in their business and is committed to finding a solution to help them achieve their objectives. Ultimately, understanding the key drivers of success for the prospect’s business will help the salesperson close more deals and establish themselves as a trusted advisor in the eyes of the prospect.
  6. What are your top priorities right now? – A salesperson needs to ask a prospect about their top priorities right now to understand their immediate needs and to position their product or service as a priority solution. This question helps the business-to-business salesperson working for a small business identify which specific pain points the prospect is currently focused on, allowing them to tailor their sales pitch accordingly. By understanding the prospect’s top priorities, the salesperson can position their product or service as a must-have solution, helping the prospect achieve their most critical objectives. Additionally, asking about the prospect’s top priorities shows that the salesperson is interested in understanding their specific needs and requirements and is committed to helping them succeed. Ultimately, understanding the prospect’s top priorities will help the salesperson close more deals and build long-term relationships with their clients.
  7. What metrics do you use to measure the success of your business, and what metrics do you need to accomplish for this project and purchase? – Every salesperson needs to know the metrics for success for the product they are trying to sell. A small business salesperson would need to ask a prospect about the metrics they use to measure the success of their business and what metrics they need to accomplish for a specific project and purchase to understand the prospect’s goals and to position their product or service as a strategic solution. This question helps the salesperson identify the metrics most important to the prospect, allowing them to demonstrate how their product can help the prospect achieve their specific goals. Understanding the metrics also enables the salesperson to demonstrate their industry knowledge and expertise by providing insights and advice on how the prospect can measure their success more effectively. Additionally, asking about metrics shows the prospect that the salesperson is interested in their business and is committed to finding a solution that will help them achieve their objectives. Ultimately, understanding the metrics that are important to the prospect will help the salesperson close more deals and establish themselves as a trusted advisor in the eyes of the prospect.
  8. What are the biggest obstacles preventing you from achieving your goals? – A business-to-business salesperson working for a small business would need to ask a prospect about the most significant obstacles preventing them from achieving their goals to understand their pain points and position their product or service as a solution. This question helps the salesperson identify specific challenges that the prospect is facing, allowing them to offer a customized solution that addresses the prospect’s unique needs. By understanding the prospect’s biggest obstacles, the salesperson can also demonstrate their industry knowledge and expertise by providing insights and advice on overcoming them. Additionally, asking about the obstacles shows the prospect that the salesperson is interested in their business and committed to finding a solution to help them overcome their challenges. Ultimately, understanding the prospect’s most significant obstacles will help the salesperson close more deals and establish themselves as a trusted advisor in the eyes of the prospect.
  9. What impact would achieving these goals have on your business? – Since a small business salesperson is always concerned about wasting their time on an opportunity that will not close, asking a prospect about the impact of achieving their goals on their business to understand the prospect’s motivations and to position their product or service as a strategic solution. This question helps the salesperson identify the specific benefits the prospect is looking to achieve, allowing them to tailor their sales pitch to those particular outcomes. By understanding the impact of achieving the goals, the salesperson can also demonstrate the value proposition of their product or service and show how it can help the prospect realize their objectives. Additionally, asking about the impact of achieving the goals shows the prospect that the salesperson is interested in understanding their business and is committed to finding a solution to help them achieve their desired outcomes. Ultimately, understanding the impact of achieving the goals will help the salesperson close more deals and establish themselves as a trusted advisor in the eyes of the prospect.
  10. How does your purchase decision fit into the larger picture of your business? – This question also helps a business-to-business salesperson working for a small business clarify the priority of working on a project that turns into a successful order. The salesperson should always ask a prospect how their purchase decision fits into the larger picture of their business to understand the prospect’s strategic goals and to position their product or service as a critical component of their business strategy. This question helps the salesperson identify the prospect’s overall business strategy and the specific role their product or service plays in achieving that strategy. By understanding how the purchase decision fits into the larger picture of the business, the salesperson can demonstrate the value of their product or service as a strategic investment that supports the prospect’s overall objectives. Additionally, asking about the larger picture shows the prospect that the salesperson is interested in a deeper understanding and is committed to finding a solution that aligns with their strategic goals. Ultimately, understanding how the purchase decision fits into the larger picture of the business will help the salesperson close more deals and establish themselves as a trusted partner in the eyes of the prospect.

The salesperson should tailor the above questions to the information the salesperson already knows about the prospect’s business. However, every salesperson should understand these high-level questions and try to align their product to them.

Small businesses can compete against larger, well-established companies by developing unique approaches and implementing effective strategies like the Fragment Sales Strategy. By understanding the goals of the customer and breaking down the sales process into smaller, more manageable pieces, salespeople can increase their chances of success and win more sales.

Header Photo by Philipp Trubchenko on Unsplash
March Madness Teaches Us Great Coaching Techniques

March Madness Teaches Us Great Coaching Techniques

by soshaughnesseyNo Comments
March Madness teaches us great coaching techniques

March Madness teaches us great coaching techniques

Published: Tue, 03/14/23

—
Sean O’Shaughnessey
CEO and President
New Sales Expert LLC
[email protected]
513.348.8700

6561 Bluegrass Way
Mason OH 45040
US

Unsubscribe | Change Subscriber Options

Are You A Player, Or A Coach?

Are You A Player, Or A Coach?

by soshaughnessey1 Comment

March brings March Madness. March Madness is the college basketball tournament where the 64 teams battle to find out who is the best college basketball team of the season.

While you are watching your team this year, I would like you to learn a lesson that every basketball coach has had to learn. The easiest way to learn this lesson is to do a little analysis. I would like you to count the number of times where the game is tight, one team is on the free-throw line, and the coach makes a substitution – himself.

Yes, count the number of times the coach doesn’t trust the player he has been coaching all season and puts himself on the line to make that winning shot.

I can already tell you the number: zero.

During a game, the coach can rant, rave, coach, and cajole but he cannot play the game. He has to trust that the athletes that he has coached all season will take his instruction, remember the skills that they have practiced, and execute those plays as they were taught.

This doesn’t happen in sales. It is almost commonplace for the coach (the sales manager) to step in and drive the conversation. He puts his athlete, whom he has been coaching perhaps for years, on the bench. 

So, let’s explore what would happen if suddenly you were required to stay on the sidelines while you watched your salespeople sell and it was impossible for you to take over the sale.

Continue reading →