Tweet

2009 Business Growth Strategy

Written by: Susan Ireland

Article Overview: This article shows you how to increase sales 26% in this economy. A must read for any business owner, sales manager, COO, CEO - anyone watching bottom line profits.

2009 Business Growth Strategy

2009 Business Growth Strategy--The 13%, 15% and 26% Difference

Just yesterday I found an article in the Integrity Solutions® toolbox that was written by Bill Kowalski, their Sr. VP. In it, Bill reveals a very recent market research survey of over one thousand sales executives from a diverse range of companies in both size and industries in North America, Europe and the Pacific Rim. It's fascinating because the findings parallel my own unscientific survey of managers and small business owners in sales organizations within my own network. It seems that in today's global economy, there is commonality in the priorities of sales executives regardless of geographic location: The # 1 priority is increasing sales, followed by increasing sales effectiveness, increasing market share, increasing customer loyalty and reducing sales cycle time.

Two primary strategies. The 1,040 firms in Bill's study do two things to increase sales and sales effectiveness. They do sales training and implement a sales process. Not surprising so far, right? Here's what blew me away though. Based on the data gathered, the organizations were placed into one of four categories. Here are the definitions of how they were categorized:

• A. Level I firms do not have a formal sales training program or process - sales reps are left to their own devices about how best to sell.
• B. Level II firms conduct sales training and have a formal sales process but only encourage reps to use the knowledge and principles introduced.
• C. Level III firms conduct sales training, have a formal sales process and expect reps to apply the knowledge and principles introduced and follow their sales process.
• D.Level IV firms conduct sales training and have a formal sales methodology and process. Sales reps are held accountable to practice and apply knowledge and principles learned and managers are also held accountable to provide coaching and feedback.

The following table illustrates the percent of sales quota achieved of firms in each category:

Type of Firm	% Quota Achieved
Level 1	60%
Level II	54%
Level III	59%
Level IV	68%

Incredible! Level I firms who provide no formal sales training or process achieved performance to quota that was 11% better than Level II firms who provide both sales training and process but only encourage people to apply what they have learned. Level III firms who also provide both sales training and a process and expect people to apply what is learned performed essentially the same as Level I firms who employ neither sales training or a formal sales process.

How can this be? It's pretty simple, really, and it bears out all my years of "unscientific" observations of sales organizations and sales people everywhere: Sales training and sales process either has no material impact on improving sales effectiveness, or they can actually hinder performance absent true accountability to insure knowledge learned is practiced and applied and there is steadfast adherence to a formal sales process.

In other words, without a formal process to hold people accountable to immediately apply and reinforce training material, retention falls at an accelerating rate. Consequently, there is little to no behavior change or performance improvement. This is further backed by research conducted by G.V. Goodard and John R. Anderson. It's known as the "Forgetting Curve" which illustrates that without reinforcement and application within 48 hours of a learning event 75% of the information covered is forgotten. I believe (as does Bill Kowalski) that if the sales training is "event based" it may even hinder performance due to creating cognitive dissonance. It's a fancy term that simply means if an individual is introduced to knowledge or concepts they do not believe they are capable of applying, anxiety results that hinders performance. Think about it. How many times have you attended a seminar, workshop or course and thought, "that's great, it sounds exciting, but I don't really see myself doing it."

Now, take one more look at Level IV firms' performance to quota. It was 13%, 26% and 15% better than Level I, II and III firms, respectively. This clearly supports the notion that converting knowledge into performance requires accountability and the experience of practicing and applying what is learned. It also validates the importance of sales managers being held accountable for effectively coaching staff as this leadership activity is a strategically critical link in the performance improvement process.

Imagine. If you are a Level I, II or III firm, what an increase of 13%, 15% or 26% in sales would mean to your organizations if you became a Level IV firm?

Bottom line. To improve business growth in 2009 and beyond, coach your people. It will make all the difference.

Related Articles
  Orchard survey shows that CEOs expect business climate to improve in 2010
  Google US Search Share Reaches 63.2% in May 2009
  Longer Search Queries Increased By 8% In 2009
  Is the pathway clear?
  Is the student ready?

Article Tags: bottom line profits, business growth strategy, business owner, ceo, economy



Related Forum Posts
Book: Secrets of Six Figure Women - Secrets of Six Figure Women: Surprising Strategies to up your earning and change your life Barbara Stanny, 2002 Jacket: Maybe you've noticed - a subtle trend is gathering steam. Quietly and steadily, the number of women making six figures or more is increasing, and it continues to rise at a rate faster than for men. From entrepreneurs to corporate executives, from white collar executives to free lancers and part timers, women are forging careers with considerable financial success. Through extensive research and hundreds of interviews, including dialogs with more than 150 high earners whose annual incomes range from $100,000 to 7 million, Stanny discovered that ...they all had certain traits in common: 1) a profit motive 2) Audacity 3) REslience 4) Encouragement 5) Self-awareness 6) Non-attachment 7) Financial knowhow She amplifies on these in the book itself. Table of Contents Intro: Welcome to the era of the six-figure woman 1. The Queen in the Countinghouse 2. The Lowdown on low earners 3. Raising the bar 4. Strategy 1: The Declaration of Intention 5. Strategy 2: Letting go of the ledge 6. Strategy 3: Get in the Game 7. Strategy 4: Speak Up 8. Strategy 5: The Stretch 9. Strategy 6: Seek Support 10. Strategy 7: Obey the rules of money 11. Claiming our power Appendces: Resources and websites Tips for getting out of dent Investing Basics: Wealthbuilding 101
My entry - 1. The Best Business Books Ever: The 100 Most Influential Business Books You'll Never Have Time to Read - this is a fascinating book about the history of Business theory, and I'd recommend it to anybody. 2. The Big Book of Small Business: You Don't Have to Run Your Business by the Seat of Your Pants, by Tom Gegax. Ditto. 3. PADI: The Business of Diving Book Okay, so this book won't be of use to anyone who doesn't want to start a scuba store, but I did, and this book was of course invaluable to me in reaching that goal.
Re: Moderators on vacation - I will be on vacation from Dec 23, 2008 - Jan 5, 2009 - See y'all in the New Year! Happy 2009 to All!!!
Re: What can you do if your franchise is hit by a scandal? - GT - Brilliant Strategy... What can I add? I'm at a loss for words...so I'll shut up now...
Introducing a Learner - Hi everybody, It is really my pleasure being around so many Entrepreneurs and strategic minds. Strategy is something I always loved and eager over every new move. Being a newbie I would need your support and I hope I would get that. Thanks Stephen


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

2011 Global Brand Trends Letter

Why Use an Advertising Agency

Mistakes Made by New or Inexperienced Sales Staff

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.