Two Tall Guys Talking Sales – Patrick O’Donnell Explains How to Hire and Onboard Sales Talent That Actually Performs – Episode 139

Two Tall Guys Talking Sales – Patrick O’Donnell Explains How to Hire and Onboard Sales Talent That Actually Performs – Episode 139

By Sean O'Shaughnessey

In this high-impact episode of Two Tall Guys Talking Sales, hosts Kevin Lawson and Sean O’Shaughnessey welcome sales acceleration expert Patrick O’Donnell to tackle one of the toughest challenges facing small business CEOs: hiring and onboarding top-performing sales talent. Together, they dive deep into proven sales strategies that help CEOs find strong candidates and keep them engaged, successful, and driving revenue. If you’ve ever hired a salesperson who didn’t work out, or you’re planning to hire your first, this conversation is your roadmap to sales success. From creating a robust onboarding plan to integrating soft skills training and cultural alignment, this episode is packed with value-selling insights you can apply immediately.

Key Topics Discussed:

  • [00:01:00] Why small business CEOs struggle to attract and retain top salespeople
  • [00:03:00] Patrick’s proven hiring and onboarding process for sales roles
  • [00:05:10] The importance of structured 30-60-90 day plans and Sean’s GUTS framework
  • [00:07:00] Kevin’s NASA Plan for onboarding: A granular, hourly approach to early success
  • [00:10:00] The role of soft skills and professional development in retaining talent
  • [00:11:50] A lighthearted look at entrepreneurship: Why Patrick bought a historic Indianapolis tavern

Key Quotes:

  • “They’re in such a hurry to take the sales hat off their head that they hire the first person who looks okay on the surface. That rushed approach almost always ends poorly.”
    – Patrick O’Donnell [00:02:06]
  • “I hand every new rep a GUTS document—Getting Up To Speed. It’s a 30-60-90 plan that clearly spells out what they need to accomplish. They can be ahead, but they can’t fall behind.”
    – Sean O’Shaughnessey [00:05:10]
  • “Most small business owners think they have a plan because it’s in their head. But if it’s not written down, it doesn’t exist.”
    – Kevin Lawson [00:07:29]
  • “We want every new hire to be the most professional person in the company, because it’s their job to make everyone around them better.”
    – Sean O’Shaughnessey [00:10:35]

Additional Resources:

  • LinkedIn profile for Patrick O’Donnell https://www.linkedin.com/in/patrickwodonnell/
  • Soft skills training programs referenced by Sean for onboarding enrichment
  • GUTS (Getting Up To Speed) framework and NASA Plan discussed during onboarding best practices

A Significant Actionable Item from this Podcast:

Implement a Written 30-60-90 Onboarding Plan with a Two-Week NASA Schedule.
Salespeople need clarity to succeed. Whether you’re a first-time sales manager or a seasoned executive, stop relying on verbal plans or “tribal knowledge.” Create a written 30-60-90 onboarding plan that details expectations, milestones, and key outcomes. For the first two weeks, apply the NASA method: a daily, hour-by-hour schedule that aligns the new hire with every department, cultural cue, and technical requirement. Doing so sets a strong foundation for success and dramatically reduces early turnover.

Summary Paragraph:

If you’re serious about improving your sales management, elevating your sales processes, and building a team that drives real revenue generation, this episode of Two Tall Guys Talking Sales is essential listening. Kevin, Sean, and Patrick break down what too many business owners get wrong—and how you can get it right. Whether you’re scaling a team or hiring your first rep, these insights around onboarding, messaging, and business acumen will accelerate your journey toward consistent sales success. Press play now and walk away with tools you can use today.

Unlocking Sales Success: The Power of KPIs in Sales Processes

Unlocking Sales Success: The Power of KPIs in Sales Processes

By Sean O'Shaughnessey

Are your sales KPIs helping your team succeed? Many sales leaders focus solely on closed deals. This narrow view misses crucial elements of sustainable sales growth.

The journey matters more than the destination. Sales excellence follows a similar path. Your team’s daily actions and behaviors create the foundation for lasting success.

Effective sales measurement requires a comprehensive view of your team’s activities. Top performers consistently execute vital behaviors that drive results. They prospect strategically, nurture relationships, and expand their presence within existing accounts. These leading indicators paint a clearer picture of future performance than lagging metrics alone.

Your KPI framework must evolve beyond historical analysis. Forward-looking metrics help you spot opportunities and challenges before they impact revenue. What’s happening in your pipeline right now? How are your teams finding new prospects? Which accounts show growth potential?

Experience levels significantly impact appropriate performance measures. New salespeople face different challenges than seasoned veterans. A rookie might need help with fundamental sales behaviors while learning your company’s approach. They need clear operational guidance and structured metrics that reinforce proper execution.

Veteran salespeople bring established skills and proven track records. Their KPIs should emphasize continuous improvement and cultural alignment. How are they advancing their capabilities? What value do they add to the broader sales organization?

Read the rest of the article…
From Micro-Manager to Leader: Fostering Growth in Your Sales Team

From Micro-Manager to Leader: Fostering Growth in Your Sales Team

By Sean O'Shaughnessey

Are you unknowingly sabotaging your sales team’s success? The answer might surprise you. The actual cost of micromanagement extends far beyond immediate productivity concerns.

Trust forms the bedrock of every high-performing sales organization. Yet many sales leaders unconsciously undermine this foundation through micromanagement. You’ve seen the signs – constant check-ins, questioning every decision, and hovering over your team’s shoulders. The culture you’ve worked so hard to build is slowly eroding.

Your best salespeople are leaving. Team morale is plummeting.

Let’s be clear about what constitutes micromanagement in sales. It’s not about being involved or interested in your team’s work. The real issue emerges when you start dictating every move and creating an atmosphere of constant surveillance.

Consider the cost of replacing top sales talent in today’s market. Beyond the substantial financial investment, you’re losing institutional knowledge and client relationships. Your organization can’t afford this drain on resources, and the impact reverberates throughout your entire sales ecosystem.

Read the rest of the article…
Two Tall Guys Talking Sales Podcast – Beyond the Basics: Elevating Sales Training with Effective Coaching – E101

Two Tall Guys Talking Sales Podcast – Beyond the Basics: Elevating Sales Training with Effective Coaching – E101

By Sean O'Shaughnessey

In this riveting episode of “Two Tall Guys Talking Sales,” hosts Kevin Lawson and Sean O’Shaughnessey explore the often overlooked nuances of effective sales training and coaching. Listen in as they share their seasoned insights on transforming routine sales training into a dynamic tool for substantial growth and success in sales.

Key Topics Discussed:

  • The Misconception of Sales Training Returns [00:00:20] Sean questions salespeople’s low expectations regarding training, sparking a discussion on the intrinsic value of continuous professional development.
  • The Role of Sales Leaders in Training [00:01:00] Kevin emphasizes the critical role of sales leaders in setting the right expectations and fostering an environment conducive to growth, drawing parallels with professional sports training regimes.
  • Training vs. Coaching [00:07:05] The conversation pivots to the essential distinction between sales training and coaching, highlighting how each plays a unique role in a salesperson’s career.
  • Integration of Training into Routine [00:06:22] Kevin discusses the challenges of integrating training into the normal workflow of sales teams and the importance of practice and repetition.
  • The Power of Reinforcement [00:04:05] Sean underscores the necessity of reinforcing training through regular coaching, using the analogy of professional athletes to illustrate his point.

Key Quotes:

  • Kevin: “We practice every day for the championship game. We don’t play the championship game every day. It’s about getting that 1 percent edge.” [00:01:14]
  • Sean: “You forget 80 percent of what you heard after two weeks. It’s the coaching after the fact that reinforces the entire attitude and the daily behavior of what you learned in the class.” [00:03:40]

Additional Resources:

  • MEDDPICCC Sales Methodology – Mentioned multiple times throughout the podcast, this methodology is crucial for understanding customer dynamics and improving sales strategies. You can learn more about MEDDPICCC at https://youtu.be/RBcGmyeBp1I?si=No_0Ob1V4Wch6erI

Summary:

Join Kevin and Sean as they dissect the common pitfalls of sales training and explore effective strategies to make learning stick. They share invaluable advice on how sales leaders can profoundly influence their teams’ performance through intentional coaching and robust training frameworks. This episode is a must-listen for sales professionals eager to elevate their game and harness the full potential of their training experiences.

A Significant Actionable Item from this Podcast:

Reflect on your current approach to sales training and coaching. Are you actively ensuring that your team learns new concepts and applies them consistently? Consider adopting a more structured follow-up coaching plan to reinforce new skills and knowledge, enhancing the overall effectiveness of training sessions.

To understand if your company is doing a great job in sales, take this quick and easy 10-question assessment:
https://salesxceleration.com/sales-agility-assessment/?locationid=26671639

Two Tall Guys Talking Sales Podcast – From Microphones to Mountains – Reflecting on 100 Episodes of Sales Wisdom – E100

Two Tall Guys Talking Sales Podcast – From Microphones to Mountains – Reflecting on 100 Episodes of Sales Wisdom – E100

By Sean O'Shaughnessey

Join hosts Kevin Lawson and Sean O’Shaughnessey in this milestone 100th episode of “Two Tall Guys Talking Sales.” They take a nostalgic trip down memory lane, revisiting the evolution of their podcast from simple LinkedIn live events to a thriving sales discussion platform on Spotify and Apple Podcasts. They delve into their personal growth, the transformative insights gained, and the invaluable lessons they’ve shared across 100 episodes.

Key Topics Discussed:

  • Evolution of the Podcast [00:00:21]: Kevin and Sean reflect on the technological and methodological shifts they’ve embraced to enhance their podcast experience.
  • Insights on Sales Excellence [00:01:35]: Sean shares his journey of continuous learning in sales, emphasizing the wisdom imparted by Kevin and its impact on his professional development.
  • Role of Content Creation [00:03:11]: Kevin discusses the significance of creating and repurposing valuable content, drawing parallels with daily writing practices to improve skill.
  • Interviews with Industry Experts [00:04:14]: The hosts highlight the diverse insights gained from interviews with visionaries across various sectors, from SaaS founders to business coaches.
  • Future of the Podcast [00:08:31]: Looking ahead, Kevin outlines their aspirations to scale the podcast’s impact and deepen listener engagement.

Key Quotes:

  • Kevin [00:00:00]: “It’s basically a stack of wires and plastic…a lost and found of sorts for electronics equipment.”
  • Sean [00:01:35]: “Listening to Kevin explain sales is insightful…I have learned an immense amount in the last 100 episodes.”

Additional Resources:

Previous episodes on building a comprehensive sales process.

  1. https://sites.libsyn.com/458454/site/e1-inaugural-episode-why-should-a-company-assess-its-practices-in-sales
  2. https://sites.libsyn.com/458454/site/e2-how-do-you-determine-your-companys-sales-objectives-each-year
  3. https://sites.libsyn.com/458454/site/e3-are-your-sales-representatives-consistently-hitting-their-assigned-quotas
  4. https://sites.libsyn.com/458454/site/e4-how-do-you-compensate-your-salespeople
  5. https://sites.libsyn.com/458454/site/e5-do-you-have-a-documented-sales-process-that-is-followed-all-the-time
  6. https://sites.libsyn.com/458454/site/e6-how-do-salespeople-retain-client-information-and-document-sales-opportunities
  7. https://sites.libsyn.com/458454/site/e8-can-your-salespeople-clearly-communicate-your-unique-selling-proposition-what-makes-you-different-than-your-competition
  8. https://sites.libsyn.com/458454/site/e9-do-you-have-a-dashboard-view-into-the-major-determinants-of-sales-success
  9. https://sites.libsyn.com/458454/site/e10-do-you-feel-you-have-the-right-salespeople-to-get-you-where-you-want-to-go
  10. https://sites.libsyn.com/458454/site/e11-does-your-organization-hold-salespeople-accountable-for-lack-of-performance

Summary:

This 100th episode is a celebration and a testament to continuous improvement and shared growth in the sales world. Kevin and Sean unpack the layers of learning they’ve experienced and the wealth of knowledge they’ve gathered from various experts. Whether you’re a seasoned sales professional or a newcomer to the field, this episode offers a wealth of practical advice, humor, and insights that can transform your approach to sales and leadership.

A Significant Actionable Item from this Podcast:

Adopt the practice of discussing and refining your craft regularly. As highlighted by Kevin, talking about your sales strategies and processes, much like writers improve by writing daily, can significantly enhance your expertise and execution in sales.

To understand if your company is doing a great job in sales, take this quick and easy 10-question assessment: https://salesxceleration.com/sales-agility-assessment/?locationid=26671639

Enhancing Sales Performance Through Effective One-on-One Coaching Meetings

Enhancing Sales Performance Through Effective One-on-One Coaching Meetings

By Sean O'Shaughnessey

The effectiveness of sales management is paramount, particularly in how sales managers support their team members to enhance performance. The nuanced relationship between a salesperson and their manager can significantly influence their success, a topic that is gaining traction among CEOs and sales leaders seeking to maximize their team’s capabilities.

One-on-one meetings between sales managers and salespeople are not just routine check-ins but pivotal moments that can define a sales team’s success trajectory. These interactions are opportunities for sales managers to transition from merely overseeing to actively fostering the growth of future sales leaders. The effectiveness of these meetings hinges on the preparation and the approach both parties bring to the table.

A key aspect of these meetings is the focus on the sales pipeline. These are not annual reviews but regular, detailed discussions that provide immediate, actionable feedback. The format of these meetings should allow salespeople to lead the conversation, highlighting challenges and insights into their deals. By doing so, they take ownership of their responsibilities and develop critical analytical skills. It’s crucial for salespeople to come prepared, not with just a superficial overview but with a deep dive into their accounts, ready to discuss specifics such as potential roadblocks in deal closures and strategies for advancing stages in the sales pipeline.

Micromanagement can be a pitfall in these scenarios. While it may be tempting for managers to steer conversations, especially with less experienced salespeople, it’s essential to restrain this impulse. The goal is to guide salespeople to independently spot issues and develop solutions, fostering a more robust and self-reliant sales force.

Integrating technology, such as CRM systems, plays a crucial role. The sales leader and salesperson must thoroughly review all relevant data before meetings. This preparation prevents redundancy during discussions and ensures that the focus is on strategizing rather than information regurgitation. Such meticulousness shows respect for each other’s time and reinforces the value of each meeting.

Training salespeople to identify potential issues streamlines the sales process and prepares them to handle complexities in future deals. This approach enhances their problem-solving skills and aligns with broader business objectives, contributing to the company’s overall health and success.

The transformation of routine management into strategic mentorship can significantly impact a sales team’s effectiveness. Sales leaders must foster an environment where salespeople are empowered to analyze and lead discussions about their work, making these one-on-one meetings a cornerstone of a thriving sales culture. By doing so, they not only improve the immediate outcomes of their deals but also build a resilient and forward-thinking sales team.

Immediate Steps for Sales Leaders to Elevate Their Team’s Performance

  1. Schedule Regular One-on-One Meetings: Set a consistent schedule for one-on-one pipeline review meetings with each salesperson. These should be frequent enough to provide real-time feedback and support, ideally weekly or bi-weekly.
  2. Prepare Thoroughly for Each Meeting: Review the salesperson’s current pipeline and deal statuses in the CRM before each meeting. This preparation allows you to provide targeted advice and focus on strategic discussions rather than information recap.
  3. Empower Salespeople to Lead Discussions: Encourage sales representatives to prepare and lead the meetings. Provide a structure for these sessions but allow them to fill in the details and drive the agenda. This approach helps develop their analytical and leadership skills.
  4. Focus on Professional Development Goals: Be prepared to discuss sales targets and strategies during these meetings. You should identify and plan for each salesperson’s professional development and tailor coaching and feedback to help them grow into future sales leaders.
From Crisis to Control: Managing Expectations in Sales Leadership

From Crisis to Control: Managing Expectations in Sales Leadership

By Sean O'Shaughnessey

The concept of “managing up” emphasizes the importance of aligning a sales team’s objectives with the expectations of upper management. This approach is particularly crucial during periods of sales turnaround, where the usual metrics might falter and innovative, agile responses are required.

“Managing up” involves treating higher management as an internal customer whose needs must be understood and met with the same diligence as those of external clients. For sales leaders, this means crafting a clear, actionable plan that communicates the steps necessary to achieve desired outcomes—often under the scrutinizing pressure of performance metrics. This strategic outline helps ensure that everyone, from the CEO to the sales floor, understands what success looks like in practical terms and is committed to the collective goal.

Moreover, the process of managing expectations is not static; it requires continual adjustment and communication. This dynamic approach allows a sales team to pivot quickly in response to evolving market conditions or internal challenges without losing sight of the overall objectives. Sales leaders are advised to articulate the goals and how they plan to achieve them, breaking down the journey into manageable, measurable milestones.

In a successful sales turnaround, it is crucial to set realistic goals that are both ambitious and achievable. This involves a deep understanding of the company’s current position and a candid assessment of what can realistically be accomplished in a given timeframe. The emphasis on SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals ensures that targets are not just aspirational but grounded in the reality of the company’s operational capabilities and market conditions.

Sales turnarounds also necessitate focusing on internal processes and behaviors rather than just end results. A sales leader must foster an environment where the team understands that their daily activities—their behaviors and strategies—are as critical to turning around sales figures as the numbers themselves. This approach helps build a resilient team capable of sustaining performance even when external conditions are challenging.

Celebrating small wins and maintaining morale during a turnaround is vital. It ensures that the team remains motivated and committed to the company’s long-term vision. Recognizing individual and team contributions reinforces a positive, collaborative culture, essential for navigating periods of uncertainty.

Finally, managing up during a turnaround is not merely about staying afloat but setting the stage for future growth. It involves understanding where the company needs to be and how to get there by working backward from the desired outcome. This methodical approach to problem-solving, coupled with effective communication and realistic goal-setting, forms the backbone of a successful sales strategy that can lead a company out of a downturn and towards a prosperous future.

Managing up is as critical as managing down for sales leaders and managers. It requires a balance of strategic foresight, operational excellence, and the interpersonal skills needed to guide a team through complex challenges. This balanced approach secures short-term objectives and paves the way for sustained success and stability.

Here are a few actionable items that a sales leader can do today to enhance management strategies and foster a successful sales turnaround:

  1. Define Clear Objectives:
    • Set aside time today to outline your sales team’s specific, measurable, achievable, relevant, and time-bound (SMART) goals. Ensure these goals are aligned with upper management’s expectations and communicate them clearly to your team.
  2. Improve Internal Communication:
    • Schedule a meeting with your manager or upper management to discuss current sales strategies and performance. Use this opportunity to clarify expectations, receive feedback, and adjust your strategies as needed.
  3. Foster Team Engagement:
    • Organize a brief team meeting to celebrate recent successes, no matter how small. Use this time to reinforce the team’s role in the larger company objectives, boosting morale and commitment to the turnaround process.
  4. Assess and Adjust Processes:
    • Conduct a quick audit of your current sales processes and identify any immediate inefficiencies that could be hindering your team’s performance. Initiate the steps to refine these processes, involving your team for insights and suggestions.
The Key to Extraordinary Sales: Developing a Compelling Unique Selling Proposition

The Key to Extraordinary Sales: Developing a Compelling Unique Selling Proposition

By Sean O'Shaughnessey

In B2B sales, professionals grapple with many challenges that can make or break their success. Clearly articulating a unique selling proposition (USP) stands out as a cornerstone for distinguishing oneself from the competition. This capability is not just a nicety—it’s a necessity. As businesses strive to carve out their niche in crowded markets, understanding and communicating what makes them distinct becomes paramount.

The concept of a USP or value proposition is often used interchangeably, yet its essence lies in differentiation. It’s about answering the pivotal question: why should customers choose you over others? This query isn’t trivial; it’s fundamental to the survival and growth of any business. As we delve deeper, it becomes evident that the challenge isn’t just about having a unique offering but about ensuring that every sales and leadership team member can communicate this uniqueness consistently and effectively.

The repercussions of failing to do so are significant. A disjointed message can lead to confusion in the marketplace, eroding trust and making it difficult to attract and retain customers. Furthermore, in an era where talent is a key competitive advantage, a clear and compelling USP can also be a magnet for attracting top sales talent. Articulating what sets a company apart is crucial for winning customers and building a strong, cohesive sales team.

Achieving alignment on a USP requires a deliberate effort. It involves going beyond superficial statements that could apply to any company and digging deep to identify what truly makes your business special. This process can be challenging, requiring businesses to engage in introspection and sometimes difficult conversations. However, the rewards of getting it right are substantial. A well-articulated USP can be the foundation for all sales and marketing efforts, providing a clear, compelling reason for customers to choose your company.

One effective strategy for uncovering your USP is to engage directly with your customers. Businesses can gain often overlooked insights by understanding why they chose your company and what they value most about your offering. This customer-centric approach helps refine your USP and ensures that it resonates with the people you aim to serve.

Furthermore, consistency in communication is key. It is crucial that everyone from the sales team to the marketing team and the CEO can articulate the USP consistently. This doesn’t mean reciting a scripted message but rather understanding the core essence of what makes the company unique and being able to convey that in various contexts.

Communicating a unique selling proposition is not just a sales challenge; it’s a strategic imperative for businesses aiming to thrive in the competitive landscape of B2B sales. It requires a concerted effort to identify, articulate, and consistently communicate what makes your business unique. By doing so, companies can differentiate themselves in the eyes of both customers and potential sales talent, paving the way for sustained growth and success.

Immediate actions that you can use

  1. Conduct a USP Workshop: Organize a workshop with your sales and leadership teams to dive deep into your current unique selling proposition (USP). Use this session to critically assess whether your USP truly differentiates your offering from the competition and aligns with your target customers’ needs. Employ techniques like customer feedback analysis and competitor comparison to refine your USP, ensuring it’s both compelling and clearly communicated by all team members.
  2. Revise Sales Materials and Messaging: Review and revise your sales collateral, website content, and social media messaging to ensure consistency and alignment with your refined USP. This action ensures that all touchpoints with potential customers reinforce the unique benefits of choosing your service or product. Consider involving a cross-functional team in this process to guarantee that the USP is clearly and effectively integrated across all platforms and materials.
  3. Engage in Customer Conversations: Starting today, initiate conversations with a selection of your most valued customers. The objective is to understand why they chose your company over others. Ask specific questions to uncover the aspects of your product or service they find most valuable and unique. Use these insights to validate your USP and discover potential areas for further differentiation. This direct feedback will be invaluable in fine-tuning your sales strategy and enhancing your competitive edge in the market.
The Art of Sales Compensation: Balancing Motivation and Goals

The Art of Sales Compensation: Balancing Motivation and Goals

By Sean O'Shaughnessey

Few topics in sales stir as much discussion and attention as compensation plans. The proper compensation structure can ignite a team’s performance, attract top talent, and drive a company toward its strategic goals. Conversely, a poorly conceived plan can lead to demotivation, high turnover, and missed targets. This discussion delves into the intricacies of designing compensation plans that motivate and align with a company’s broader objectives, offering insights for salespeople, sales managers, and CEOs alike.

Compensation in sales is not just about rewarding past successes; it’s a strategic tool that shapes future behavior. The fundamental premise is straightforward: sales professionals are motivated by earnings potential. Yet, applying this premise within compensation plans can be complex, nuanced, and sometimes contentious. It’s essential to balance base salary and variable compensation, ensuring sales representatives are adequately supported and incentivized to pursue new business aggressively.

The debate between 100% commission versus a guaranteed salary represents the spectrum of risk and reward in sales compensation. On one end, a 100% commission plan offers unlimited earning potential but lacks security, potentially leading to a high-stress culture and a short-term focus. It also makes it much more difficult to recruit younger sales superstars who may not have the financial security to afford a 100% commission compensation plan. Conversely, a guaranteed salary provides stability but might dampen the urgency and hunger that drive sales excellence. The consensus among seasoned sales leaders points to a balanced approach, often epitomized by a 50/50 split between base salary and variable compensation. This structure aims to provide a safety net while ensuring sales efforts directly impact earnings.

Understanding the market potential within a sales representative’s territory is critical when setting quotas and compensation. For larger teams, the ability to average performance across the group can help smooth out individual variances. However, in smaller teams or founder-led sales organizations, each member’s contribution is magnified, demanding a more nuanced approach to quota setting. Regardless of team size, aligning individual quotas with company objectives requires a blend of data analysis, market insight, and an appreciation for each territory’s unique challenges and opportunities.

Beyond the structure of compensation plans, the timing and criteria for payouts are pivotal. Monthly payouts can incentivize immediate results and help maintain momentum, whereas quarterly payouts may lead to strategic deal timing but can also introduce cash flow challenges for sales professionals. Moreover, compensation plans should evolve in tandem with a company’s strategic goals, ensuring that sales efforts are aligned with the organization’s overarching priorities.

Crafting effective sales compensation plans is both an art and a science. It demands a deep understanding of human motivation, a clear vision of company objectives, and a commitment to fairness and transparency. By carefully designing compensation structures that reward performance, foster team collaboration, and support long-term strategic goals, companies can create a sales culture that not only meets targets but exceeds them, driving growth and success in the competitive world of B2B sales.

Immediate Action Item 1: Evaluate and Adjust Your Compensation Structure

Assessment of Current Plans: Begin by thoroughly assessing your current sales compensation plan. This involves evaluating how well the existing structure supports your company’s strategic goals and motivates your sales team. Are your sales representatives meeting their targets? Do they feel motivated and supported? These questions can uncover valuable insights into the effectiveness of your compensation plan.

Balanced Compensation Review: Reflect on the balance between your organization’s base salary and variable compensation. Does it align with the 50/50 split recommended by seasoned sales leaders? If not, consider adjusting this balance to provide both security and incentive to your sales team. This balance is crucial for motivating your team while ensuring they are adequately supported.

Action Steps:

  • Survey your sales team to gather feedback on the current compensation plan.
  • Analyze sales performance data to identify patterns or areas for improvement.
  • Consult with HR or compensation specialists to explore potential adjustments.
  • Implement a pilot program for a new compensation structure in a small team or region to measure its impact before a company-wide rollout.

Immediate Action Item 2: Align Compensation with Strategic Goals and Territory Potential

Quota Setting and Territory Analysis: It’s essential to align individual quotas with the sales territory’s potential and the overarching company objectives. This alignment ensures that sales efforts are directed towards strategic goals, optimizing both individual and team performance.

Compensation Plan Evolution: Regularly review and update your compensation plans to align with your company’s strategic goals. This might mean adjusting the payout criteria, the balance between base and variable compensation, or the targets set for sales representatives.

Action Steps:

  • Conduct a territory analysis to ensure realistic quotas align with market potential.
  • Set up a quarterly review process for the compensation plan to ensure it remains aligned with company objectives and market conditions.
  • Engage sales managers in discussions about territory potential and strategic goals to ensure their input is considered in compensation planning.
  • Communicate changes in compensation plans clearly and effectively to the entire sales team, ensuring they understand how these changes benefit both them and the company.

Implementing these action items can lead to a more motivated sales team, better alignment with strategic goals, and improved sales performance. Remember, the key to successful sales compensation is not just in the design but in the ongoing evaluation and adjustment to meet the evolving needs of both your sales team and your company.