While banks and professional
firms continue to be challenged by this difficult change,
the problem is more acute for companies that already have
a sales force, albeit one that is parked rather than
driven, with complacency. This
sales force prefers to call on the existing
customer and live off the repeat business.
While this tends to feed the salespeople, the lack of
growth drives executives crazy and frustrates
shareholders.
So what are the challenges a
company will face when management decides to create a more
proactive sales culture?
1) Resistance -
the salespeople are the last ones who
will want this to work. If they wanted
to prospect for new business they would have sought a job
with another company.
2) Ineffective
Compensation - the existing comp
program likely includes little incentive for bringing in
new business so it must be overhauled
to reflect the company's new direction.
3) Ineffective Sales
Management - the company will quickly learn that
having the new strategy is one thing but executing it is
quite another. After years of little to no pressure, sales managers have become too friendly with
their salespeople and aren't able to hold them accountable
to the new goals.
4) Ineffective
Recruiting - the company will also realize that they
have to recruit some new blood and bring some more energy
into the sales force. Unfortunately, they don't know how
to do this and recruit the only way they know how - by
using their old model. They don't find the right people
and when they do accidentally stumble upon a salesperson
who could succeed at new business development, he can't
succeed with "role models" that don't perform in the
manner the company had hoped.
5) Lack of
Competencies - another area in which strategy meets
reality is that this sales force
doesn't have prospecting skills and may even lack the
strengths needed to engage in
prospecting.
6) Ineffective
Training - after discovering the lack of interest and
skills required for finding new business, the company
invests in training. The training
fails because training is only as good as the people being
trained and by now, the company realizes that they have
the wrong people to execute this
strategy.
7) Not Enough Time -
unfortunately, 18 months have probably passed at this
point and the company will go back to the drawing board
only if they have a short sell cycle. The company with the
complex or high ticket sale may not yet be aware of the
pending failure of this initiative.
8) Discouragement -
it's easy to become discouraged. First it will be the
executive team. "Why hasn't anything
changed?" Then sales management. "How can you
expect us to change overnight?" Then the salespeople.
"They don't appreciate what we've done for
them."
So how should
a company proceed when it needs to have a greater emphasis
on proactive selling?
SOLUTION:
First step is to look at the crystal ball
before this shift is finalized. By evaluating the sales
organization (Benchmarking) and looking at the people, systems and
strategies; all of the potential problems and obstacles
can be identified and quantified in advance. You
can learn which salespeople and sales managers won't be
able to execute the strategies and meet the expectations.
For those salespeople who will be able to drive the
process, you'll learn the development requirements so that
they are prepared for the challenge rather than
discouraged by the failure. Finally, you'll be able to
determine your ROI