Fire, Hire, and Repeat: Is There a Better Way to Improve Sales Performance?
Fire, Hire, and Repeat: Is There a Better Way to Improve Sales Performance?
The spotlight then shifts to sales management, and in comes a fresh squad, which triggers another round of fire-and-hire through the sales ranks.
When that doesn’t work, the CEO fires the VP of Sales and hires the “right person.” This change starts yet another round of fire-and-hire across the sales team.
The CEO may go through several Sales VPs before the Board fires the CEO to get the “right person” at the helm, and the cycle starts over again.
This fire, hire, and repeat syndrome is all too familiar for most business warriors. Those who witness “the body wars” also know that throwing people at the problem rarely produces the expected results, and it is always expensive.
This is because the people are not the problem. The system that supports – or fails to support – the sales team is the problem. Fix the system and most of the people will do just fine. You can then easily identify and cull the few salespeople and managers that really need to go.
Let’s take a quick look at why the fire-and-hire exercise fails most of the time – and why management (and the Board of Directors) continues to use this questionable approach to improving sales performance. Then we will review a superior alternative, a systems approach for increasing sales performance.
**Why the Fire-and-Hire Exercise Fails**
Most fire-and-hire exercises explode in management’s face because hope is not a strategy! That’s right – hope is not a strategy! Think about it – statistically speaking, there’s a 50% chance that the person being hired will be as good as, or worse than, the one being fired. This fire-and-hire exercise is founded on the hope that the new hire will be better than the last hire. And at 50% odds, it’s a risky bet.
It’s also an expensive bet. How much does it cost to fire a person – including severance and unemployment insurance? How much does it cost to hire a new person – including recruitment cost and bonuses? How about training costs? What about the lost-opportunity cost of having the managers tied up in interviews and training rather than driving sales opportunities? How many months does it take for new hires to become profitable? Fire, hire, and repeat syndrome is a major drain on productivity and profit, and it has a negative impact on any company’s ability to stay competitive.
**The Fatal Attraction**
So why does management continue to throw bodies at the problem? The results are questionable, and the costs are high! What logic drives this cycle?
Well, it’s politically astute, and it’s easy. No one has to spend serious time thinking about how to solve the hard problems – such as, “What is the real reason Sales is not performing to expectations?”
And the answer comes prefabricated: “The problem is not the company, the market, the products, or the marketing. It’s the sales team. We just need better salespeople.” This explanation may save the VP of Sales’ or Marketing’s or the CEO’s job for another year, but it rarely fixes the problem.
Alternatively, management or the Board may use the fire-and-hire technique because it’s “the way we’ve always done it.” They may not be aware of an alternative, thinking-outside-the-box strategy for increasing sales performance.
**A Better Way**
Most sales teams are not successful because the system or sales infrastructure they need is not in place. A glaring example of what’s missing is captured best by this quote:
“80 to 90 percent of marketing collateral is considered useless by sales.”
Proceedings of the Customer Message Management Forums, published by
the American Marketing Association (2002 and 2003).
How can management realistically expect Sales to be successful with collateral that doesn’t work?
Use the checklist below to make sure your sales teams have the support, and tools, they need to be successful. Creating the sales infrastructure required to support a high-performing sales team is not easy. But it’s far less risky, costly, and time-consuming than the constant call to fire, hire and repeat.
**Sales Infrastructure Checklist**
Several components make up this system:
• It includes having the appropriate positions, like inside versus outside sales or farmers versus hunters, plus the associated job descriptions and compensation plans defined and aligned with company objectives and market requirements.
• It includes a hiring process that identifies competent salespeople, which means it needs to include a structured interview process and profiling or testing for the right skills, aptitude, and personality.
• It includes a formal sales process or a set of best practices that is used to create leads, meetings, buying events, and orders.
• It includes reports that track the sales activities, goals, and processes, and that distinguishes sales pipeline from sales forecast.
• It ensures that the management team is effective in terms of providing coaching, accountability, and recognition.
• It includes the providing of training in the areas of product and sales enablement, as well as traditional sales skills training.
• It includes collateral and sales tools that are synchronized and that support the key steps in the sales processes.
• And, of course, it includes high-quality messaging that is used across all the customer touch points, collateral, and sales tools.
Experience has shown that focusing on the creation of a solid sales support infrastructure, as defined above, is essential to achieving and exceeding revenue, marketshare, and profit targets. And, great messaging – specifically great sales messaging – is one of the most critical components for building a successful sales support infrastructure.
Fire Hire and Repeat Is There a Better Way to Improve Sales Performance - To learn more about this author, visit Michael Cannon's Website.
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You know the drill – it’s classic material for a Dilbert comic. The executive team is frustrated that Sales is not meeting expectations. To fix the problem, a significant portion of the sales team is fired, a new team is hired and the company winds up back where it started 6-12 months later.
The spotlight then shifts to sales management, and in comes a fresh squad, which triggers another round of fire-and-hire through the sales ranks.
When that doesn’t work, the CEO fires the VP of Sales and hires the “right person.” This change starts yet another round of fire-and-hire across the sales team.
The CEO may go through several Sales VPs before the Board fires the CEO to get the “right person” at the helm, and the cycle starts over again.
This fire, hire, and repeat syndrome is all too familiar for most business warriors. Those who witness “the body wars” also know that throwing people at the problem rarely produces the expected results, and it is always expensive.
This is because the people are not the problem. The system that supports – or fails to support – the sales team is the problem. Fix the system and most of the people will do just fine. You can then easily identify and cull the few salespeople and managers that really need to go.
Let’s take a quick look at why the fire-and-hire exercise fails most of the time – and why management (and the Board of Directors) continues to use this questionable approach to improving sales performance. Then we will review a superior alternative, a systems approach for increasing sales performance.
**Why the Fire-and-Hire Exercise Fails**
Most fire-and-hire exercises explode in management’s face because hope is not a strategy! That’s right – hope is not a strategy! Think about it – statistically speaking, there’s a 50% chance that the person being hired will be as good as, or worse than, the one being fired. This fire-and-hire exercise is founded on the hope that the new hire will be better than the last hire. And at 50% odds, it’s a risky bet.
It’s also an expensive bet. How much does it cost to fire a person – including severance and unemployment insurance? How much does it cost to hire a new person – including recruitment cost and bonuses? How about training costs? What about the lost-opportunity cost of having the managers tied up in interviews and training rather than driving sales opportunities? How many months does it take for new hires to become profitable? Fire, hire, and repeat syndrome is a major drain on productivity and profit, and it has a negative impact on any company’s ability to stay competitive.
**The Fatal Attraction**
So why does management continue to throw bodies at the problem? The results are questionable, and the costs are high! What logic drives this cycle?
Well, it’s politically astute, and it’s easy. No one has to spend serious time thinking about how to solve the hard problems – such as, “What is the real reason Sales is not performing to expectations?”
And the answer comes prefabricated: “The problem is not the company, the market, the products, or the marketing. It’s the sales team. We just need better salespeople.” This explanation may save the VP of Sales’ or Marketing’s or the CEO’s job for another year, but it rarely fixes the problem.
Alternatively, management or the Board may use the fire-and-hire technique because it’s “the way we’ve always done it.” They may not be aware of an alternative, thinking-outside-the-box strategy for increasing sales performance.
**A Better Way**
Most sales teams are not successful because the system or sales infrastructure they need is not in place. A glaring example of what’s missing is captured best by this quote:
“80 to 90 percent of marketing collateral is considered useless by sales.”
Proceedings of the Customer Message Management Forums, published by
the American Marketing Association (2002 and 2003).
How can management realistically expect Sales to be successful with collateral that doesn’t work?
Use the checklist below to make sure your sales teams have the support, and tools, they need to be successful. Creating the sales infrastructure required to support a high-performing sales team is not easy. But it’s far less risky, costly, and time-consuming than the constant call to fire, hire and repeat.
**Sales Infrastructure Checklist**
Several components make up this system:
• It includes having the appropriate positions, like inside versus outside sales or farmers versus hunters, plus the associated job descriptions and compensation plans defined and aligned with company objectives and market requirements.
• It includes a hiring process that identifies competent salespeople, which means it needs to include a structured interview process and profiling or testing for the right skills, aptitude, and personality.
• It includes a formal sales process or a set of best practices that is used to create leads, meetings, buying events, and orders.
• It includes reports that track the sales activities, goals, and processes, and that distinguishes sales pipeline from sales forecast.
• It ensures that the management team is effective in terms of providing coaching, accountability, and recognition.
• It includes the providing of training in the areas of product and sales enablement, as well as traditional sales skills training.
• It includes collateral and sales tools that are synchronized and that support the key steps in the sales processes.
• And, of course, it includes high-quality messaging that is used across all the customer touch points, collateral, and sales tools.
Experience has shown that focusing on the creation of a solid sales support infrastructure, as defined above, is essential to achieving and exceeding revenue, marketshare, and profit targets. And, great messaging – specifically great sales messaging – is one of the most critical components for building a successful sales support infrastructure.
Fire Hire and Repeat Is There a Better Way to Improve Sales Performance - To learn more about this author, visit Michael Cannon's Website.
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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