I have received a number of searches seeking sales manager evaluation criteria. Here is a list to consider in your hiring and evaluation process.
LEADERSHIP - How effective is the sales manager at providing leadership for their sales team and department? To what degree is the team working toward long and short term goals?
STRATEGIC - How effective is the manager at providing strategic directions and approaches that can be duplicated and produce more cost effective results?
COACHING - How effective is the managers' coaching techniques with the sales people? Are sales people improving their selling ability and results?
SYSTEMS - To what degree does the sales manager develop and implement systems that help drive business, monitor progress and allow for ownership to evaluate the department?
MOTIVATION - To what degree does your sales manager provide motivation directly or indireclty to the sales team?
EXPECTATIONS - How effective is the sales manager at providing clear expectation to the sales people that are aligned with the business goals?
EDUCATION - To what degree is the education the sales manager provides improving the sales team?
TRAINING - How effective is the direct or indirect training the sales manager provides to the team?
COMRADERY - Does the sales manager provide comradery for your team and if so is it resulting in more teamwork and improved sales?
ACCOUNTABILITY - To what degree is there accountability among the sales people?
RECOGNITION - Does the sales manager provide or facilitate recognition that results in a stronger sales person and team?
REPORTING - Does the sales manager receive and provide reports that allow for effective management and improved sales of the sales department?
FORECASTING - How reliable are the sale forecasts produced by the sales department?
SALES RESULTS - How effective is the sales team at achieving the company sales targets?
PROJECTS - How has the sales manager done at completed assigned projects?
COOPERATION - How cooperative is the manager with the other managers in the organization?
You can easily put these into a rating scale format from 1-10 if you prefer. A sales manager should not only be measured by what he/she does but how effective their work is through their team and in conjunction with the long term goals of the company.
If you have sales reps spinning their wheels, pumping out proposals but not closing an acceptable percentage of business, they might need some help with qualifying and managing the sales process. In order to manage your sales people easily and effectively, you need to clarify expectations and build in some accountability steps.
Here are five ways to improve sales efforts by improving skills to qualify prospects and build accountability into sales processes.
Clarify and document your qualifiers. Make sure you define and document who a qualified prospect is for your business. As an example, I have listed the following criteria I use to qualify my clients:
• Small privately owned business
• 1-4 sales people
• B2B selling model
• Does not have a dedicated sales manager
• There is a market for the product and services that are being sold
• The company is willing to invest in infrastructure with growth in sales
• Owners are willing to use an outsourced resource
In addition, require your reps to document to their manager how each prospect they pursue meets these requirements before they move forward. You can build the qualifiers into a Discovery Form.
Use a Discovery Form that will outline what a rep needs to know to qualify the prospect and build their Letter of Understanding. To learn more about a Discovery Form and download a sample click here.
Add a Letter of Understanding to your process. The Letter of Understanding will document that the rep understands the prospects current situation, their goals, needs and problems, and what the next steps in the sales process should be. The prospect will confirm that the rep has it right. The manager will now have a tool that lets them know their rep has a viable prospect and is planning the sales process as the company prefers. (Sample Letter of Understanding)
Require completion of Discovery Form and Letter of Understanding before proceeding to a presentation. This step builds in a true accountability step versus leaving it up to the sales reps opinion of when to move things along.
Make sure the reps understand and buy into a consultative sales process. If a rep has a lot of activity and not a lot of results, they may have been taught selling through the "show and tell" method versus a consultative approach. Show and tell reps are always trying to push their ideas, features and benefits onto a customer (anybody and everybody) in hopes of winning them over. The consultative rep understands the value of qualifying and discovery and will be more patient land that will lead to more sales.
The idea is to build real accountability into the sales process and stop reps from showing and telling. Some reps will have a resistance to new processes, but if they understand the value and how it will help them, they will begin to use the tools and the quality of opportunities will be improved.
Someone on Linkedin asked the question, "What is missing in the sales profession today." I believe if you fill the leadership gaps in companies the sales people will follow. Leadership gaps exist in three areas, the sales team, sales management and the company.
I don't see much of a difference in today's B2B salespeople as in years past (30 years of selling, managing and consulting). Salespeople will follow quality leadership and leaders among the team will emerge.
This does not mean the leaders need to be replaced, but they do need to know how to lead a sales team (see sales management process diagram in this link) and what a sales team needs from the company to meet expectations. The sales leader (manager) needs leadership and support from the company to be the best they can be.
To build sustainable sales success, with people who represent your company well, requires leadership working toward this end. It is not much different in other disciplines or departments. People like to be led and their best will come out under quality leadership and a company that supports them.
In today's world of constant improvement, doing things better and faster, and new software every day, it is easy to look for new solutions to old problems. I believe many times today's problems simply require time tested solutions with a few new tools.