When Is It Time to Optimize Sales Resources?

By Michael Perla

“History is filled with brilliant people who wanted to fix things and just made them worse.” – Chuck Palahniuk.

If you've ever been into jogging, you know that you usually get injured if you violate one of the three “too’s” – too much, too soon, too fast. It’s easy to get carried away when you first start an exercise program. Similarly, in managing sales, if you don’t take a good assessment of where you currently are, you are bound to miss something and spend more time, resources, and effort than necessary.

I’m not talking about months-and-months of research, but it’s never a waste of time to ask yourself some key questions before you start most endeavors, especially since it’s easy for us to ‘lock-in’ on a single alternative or fool ourselves into thinking we are in a better state than we are.

What are the key questions to ask to determine if you need to optimize sales resources?

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The Sales Resource Challenge -- How Many, How to Align?

By Michael Perla

According to Harvard Business Review, companies spent $800B on sales force compensation and another $15B on sales training in 2015.  If you add in another $15B investment in CRM according to Gartner, companies spent $830B on people, people development and enabling technologies, which is roughly 5% of total US Gross Domestic Product.  This is a staggering amount of money invested to deliver revenue growth. 

Contrast this figure to the investment we make annually in optimizing the return on that investment.  Once a year, typically during the budget process, we sit down and think through how many sales people we need in the organization.  We may base our sizing assumptions on how we performed this year, our revenue targets for the upcoming year, or a financial analysis of the costs (e.g., recruiting, on-boarding) versus the benefits (revenue ramp-up time). 

More often than not, we devote too little time prioritizing our customers, determining our coverage model, and sizing our sales teams. Our need to reassess is magnified when there have been major market or competitive shifts or if our company has grown through acquisition.

We all know the value of rebalancing our 401K to drive greater returns on our investment portfolio.  Yet, as collective stewards of nearly $1 trillion in sales investment, the question remains – why do we place so little time and effort in driving a greater return on our investment in sales? 

To answer that question, we developed an in-depth guide around the components of Sales Resource Optimization (SRO), including the 4 C’s of customers, coverage, capacity and capabilities. More and more of our clients are annually re-assessing how they organize and deploy sales resources to ensure they are keeping up with market/customer changes, which are happening at an accelerated pace today.

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4 Ways to Cut Cost of Sales (Without Cutting Heads)

By Tom Martin

Like many business projects, sales effectiveness projects are often focused on the big 3 – Increasing revenue, cutting costs and/or reducing risks. When we talk to sales leaders, the primary stated business objectives of sales transformation projects usually tie back to increasing revenue – capturing new accounts, improving up-sell and cross-sell, increasing renewal rates, increasing revenue per seller productivity.

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Teamwork

By Warren Shiver

I was driving on the “top end” interstate in Atlanta, and the Elton John song, “Levon,” came on the radio. It prompted me to think about partnerships and how there have been famous collaborative groups and song writing partnerships through the years (Lennon/McCartney, Jagger/Richards, maybe Macklemore/Ryan Lewis for a more contemporary example). What I find really interesting about the Elton/Bernie arrangement is that it’s not really about collaboration, but rather about specialization.

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The Power Of True Sales Effectiveness

By Per Torgersen

Across the years we have worked with many different clients in different industries, trying to solve a variety of their sales related challenges. Many of our clients state that they want to “improve sales effectiveness.” However, we have observed there are many variations to perceptions about what that means; improving a sales process, gaining traction on utilization of sales tools, sharpening-up recruiting, enhancing selling skills through coaching and development - You can take your pick.

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