data.com connect presents: dave stein - how to hire great salespeople

How to Hire Great Sales Reps

Dave Stein@davestei

davestein.biz

Notice: This presentation is copyrighted. Quotation in whole or in part must be accompanied by attribution to:

“Dave Stein, Inc. – davestein.biz” @davestei @Datadotcom


Sales People: The Situation

• ESR’s research shows that: – 20 to 33% of sales people aren’t suited

for the job– After two years, 4 out of 5 new hires

either:• Aren’t with the same company or • Are not delivering at or above quota.

– Use of a hiring process can reduce wrong hires by 60 – 80%.

• The cost of a wrong hire is between $300k and $1m.

@davestei @Datadotcom


Sales People: The Situation

• 80% of all resumes are misleading• 20% state fraudulent degrees• 30% show altered employment

dates• 40% have inflated salary claims• 30% have inaccurate job

descriptions• 25% list companies that no longer

exist, and • 27% give falsified references

www.HireRight.com



Our Goal for This Session

Understand key components of a recruitment and maintenance process

that will result in a more effective sales team.

Please key your questions into the question box at any time!



Poll #1

What is your role within your company? (Single answer option.)

1. Sales manager2. Sales rep3. Sales leadership4. Other management role5. Consultant/student



Poll #2

Which of the following do you employ when selecting candidates? (Multiple answer option.)

1. Structured behavior-based interview2. Psychometric/Predictive test(s)3. Simulated sales call/presentation4. Income verification5. Background check



Reasons for Mis-Hiring:

• Mis-hirings are caused by hiring sales people:1. Based upon gut feel2. Who are like us3. Who sell us effectively in

the interview4. Based only on a strong

track record in the past5. Who are recommended by

others without going through an objective assessment

6. Whose references we don’t effectively check.



Hiring Model for One Job Category

Build Foundation Once• Assessment• Profile• Job specifications• Interview questions• Positioning• Publicize• Hiring team

Repeatable Process for Each Candidate• Screen• Income verification!• Structured interview 1• Reference checks /• Structured interview 2 • Simulations / Sales call / presentation• Psychometric test, background check• Reference checks• Negotiate offer• Customized ramp-up begins



The Hiring Team

• Three people

• To be trained in:– Providing consistent messages

about the role and your company– Interviewing skills and concepts.

(Interviewing is a skill.)– Taking notes: briefing and

debriefing– Reference checking– Objectivity.



Week(Best-case)

Event Who Methods

1 Screen candidate resume Rebecca Use resume Filter

1Phone candidate to confirm his or her interest in the position, and to ask basic questions. Considered as First Interview

Rebecca

Use job description document as a guideline

2 First interview Rebecca Use “First Interview Guide.” Telephone interview is fine.

2 Initial reference check Rebecca

3 Second interview Brian Use “Second Interview Guide” Live if possible.

4 Third interview (optional) RichardWill probe more deeply into areas of concern, based upon detailed notes from previous interviewers. Telephone or face-to-face

4 Thorough reference checks (in parallel with third interview)

Rebecca

Use references derived from second/third interview. Attempt to find blind references (see Reference Check document)Get income verification

4 Candidate takes Predictive Index PPA

5 Visit to Miami and 2 Simulation exercises BrianFace to face meeting with Hiring team and Simulates Avisena’s sales situation(s).

6 Negotiate offer BrianWe expect a candidate to negotiate for something. If you don’t feel like they handle this critical step effectively, don’t proceed.

7-8 Start and ramp-up BrianUse customized “Ramp-up Plan” to assure that skill gaps identified during interviews are addressed and risks mitigated. This must be formalized.

The Hiring Model – Repeatable Process



First: Assess Your Situation

Questions:• How do your buyers buy?• How well are your people selling?• What are the skills, traits and behaviors of your winners?• What don’t your less-effective reps have?• What resources (time, money, people) do you have for training?• …..?

Sources:• Customers• Existing reps• Competitors• Business Partners• …..?



Create the Profile

• Skills/Competencies• Measurable, learnable, “what you’ve learned to do.”• Driving a car, baking a cake

• Attributes/Traits• Inherent, mostly unchangeable, “who you are.”• Intelligence, musical talent

• Behaviors • Habits, manifestation of skills and traits

A profile must be customized for this job, in this company, at this time, for these customers, with these resources…



Critical Sales Skills• Listening• Business acumen • Political selling• Competitive positioning• Negotiation• Planning• Industry knowledge

Critical Sales Traits• Resilience• Self-starter • Empathy• Integrity • Creativity• Courage • Flexibility

Profile Skills and Traits



Profile Example: One Skill

Skills & Traits Scale Behaviors

Skill:Business Knowledge

LowHas a basic understanding of how businesses operate.

Unacceptable

Medium

Can explain department functions, organizational dynamics, and is comfortable selling to department managers.

Unacceptable

High

• Understands and can explain customer and industry value chain issues

• Can read and interpret financial statements• Can talk comfortably with executives of different departments

about how their product will contribute to that executive achieving their business objectives.



Questions

Engineered to determine whether the candidate possesses the trait or skill without telegraphing the “right” answer.



Interviewing: Don’t Ask Leading Questions

To determine if someone is process-oriented, don’t ask:

• “What process do you follow when you get a sales lead?”

But rather:

• “What do you do when you get a sales lead?”

Wrong

• “How good are you at negotiating?”

Right

• “Describe in detail your most recent difficult negotiation.”



Hire for Traits, Train for Skills

Skills

Traits

Hire and

Support

Train and

Coach

Another

Role?

Pass…



Requirements

• How many years of experience?• In what roles?• In what industries?• What skills• Currently employed?• With what levels of performance?• With what schooling and

training?• Jobs per year?• Time between jobs?• Travel, relocation, remote office?• What else? ………

Responsibilities

• Build and manage a pipeline and continually generate new opportunities within the Major Accounts space

• Conduct online sales presentations and prepare proposals for customers

• Meet and exceed quarterly quotas

• Forecast sales activity, enter and maintain prospects in CRM System

• Work closely with and Client Services Group to ensure rapid and widespread adoption of our services, as well as retention of existing customer base

Create Job Specification



The “Resume Filter”

• Highest level qualification tool• Derived from job specification

• The “musts” and “must not’s”– Number of jobs, average tenure– Sales performance against quota– Industry experience/connections– Key traits, i.e. work by oneself– Size of opportunities– Skills matching your requirements– …

• Require income verification records



First Structured Interview

• Set expectations for candidate.

• ~ 60 minutes• Phone is

recommended• Establish

relationship• Gather names for

reference checking• Read questions, take

notes• Look for cultural fit.



Interviewing Sales Candidates

The single most important success factor

in interviewing candidates is objectivity.

Being objective is easier when you employ a structured interview.



Interviewing: Other Critical Success Factors

• Prepare for the Interview– Review resume– Review prior

interview comments and briefings

– Determine which questions you will ask

– Seek to understand weak and strong areas

– Commit to staying on process.



What to Watch Out For

• Rambling – long answers• Changing the subject• Not listening to the questions• The candidate not reading the situation, e.g.

the pace, process• Little or no homework. Shows a lack of

interest or process or both• Watch the eyes and body language.



Interviewing: Stories

• Use stories to dig into a particular skill or trait.– Setup: “Tell me about the

last big opportunity…”– Use who, what, when,

where, why and how.– Ask, “What were you

thinking then?” – Capture names for

reference checking– Listen for inconsistencies,

stalling, changing the subject



Second Interview

• To validate• In person if possible, two interviewers

– Divide up questions in advance.• Deep probing for specific behaviors identified from profile and 1st

interview• Looking for inconsistencies• Gather additional references• Make sure you have been briefed by prior interviewer



Predictive/Psychometric Test• Very effective in predicting

behavior and success• New generation are hard

to trick• Those produced by a sales

training company can be biased

• Should be used to validate decision

• Web-based. 20-30 minutes.

• No reason not to do it.


Simulation

• Sales call–Skills required to call on

“typical” buyer early in selling cycle• Style, communication,

objection handling, leadership, etc.

• Knowledge of customer’s business

• Presentation–Skills required to present to

“typical’ buy• Abilities in one-to-many

situation



Reference Checks

• If you assume candidates oversell themselves, this is a must!

• Types– Offered (worst)– Revealed (next)– Blind (best)

• Customers, supervisors, peers• Use LinkedIn



Customized Ramp-Up (On-Boarding) Plan

• The on-boarding plan should be discussed openly with candidate during interview cycle

• It resolves gaps between candidate’s skills and what is required

• Specific actions, resources, dates, measurements– Self-directed learning, corporate resources, books, programmes, in-

place assignments, etc.

• Hire for probationary period. Clearly state criteria.



On-Boarding Plan

Skill Description Remedy Objective Date

Business savvy

Assess a company’s health and comparative position via financial statements

1. Take a program in reading and analyzing financial statements.

2. Read Analyzing Financial Statements by Jones.

3. Spend 8 hours with our finance manager.

Fully up to speed on understanding financial statements and company financial position

3 months from start date

Monthly “check-in”

Knowledge of our customers’ industry

Know the history, trends, key players, winners, losers, pundits, challenges, opportunities, risks, etc.

1. Read industry trade magazines

2. Join trade association,

3. Visit 10 of our customers

4. Read research securities analysts, etc.

Be able to have a 20-minute conversation with a C-level executive

3 months from start date

Monthly “check-in”



Summary

• It’s all about process• Profile• Objectivity• Hiring team• Structured interviews• Simulation• Reference checks/income verification/background check• Reference checks• Custom on-boarding process


Dave Stein@davestei

davestein.biz

Notice: This presentation is copyrighted. Quotation in whole or in part must be accompanied by attribution to:

“Dave Stein, Inc. – davestein.biz”

Questions?


data.com connect presents: dave stein - how to hire great salespeople

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