logistics for today’s call…. · leadership/management style 5 50 9.4 47 9 45 8 40 8 40 sales...
TRANSCRIPT
January 12 , 2012
Logistics for today’s call…. All attendee’s will be on “silent” mode during the
presentation. Please utilize the “Questions” feature to ask questions;
simply type in your question and press enter. At the conclusion of the presentation, the moderator
will facilitate the “Question & Answer” session utilizing the “Questions” feature.
Send a copy of presentation to you Additional questions can be sent directly to:
How to On Board New Sales Talent in 5 Easy Steps
Thursday, February 9th, 2012 1:00 p.m. Central 30 minutes Register at www.salesbenchmarkindex.com
Sales Benchmark Index will….
Join us for our next Webinar….
Scott Gruher Today’s Guest…..
Managing Consultant at SBI Prior to SBI, Scott held Sales
Leadership and Global Accounts positions at Cintas Corporation
Scott has filled Executives level positions for multiple Fortune 500 corporations Industries Include:
Business Services Software Healthcare Publishing Automotive
Executive Search Statistics
The average cost of mishire for an executive sales leader is over $1 Million
Average time to fill an executive sales position is greater than 4 months
Sales Vice Presidents last an average of 19 months in their role
Why is Sale Executive Search a Problem?
• Not enough time to identify, recruit, and assess candidates
• No methodology to assess candidates accurately leads to internal disputes
• More stakeholders involved in decision making
• Lack of Competency definition and assessment
• No sales-domain specific search resources
• Lack of hiring profile clarity leads to misguided efforts
What is a Sales Executive Search? A detailed project with multiple phases.
What does a Sales Executive Search do? It identifies, recruits, and assesses key individuals to fill
sales leadership positions.
What does it mean to use a Sales Executive Search? A company can have a sales leadership team composed of
top talent.
Sales Executive Search
Search Engagement Methodology
Create ‘A’ Player
Scorecard
Set Performance Conditions
Benchmark Role
Talent Selection
Conduct Search
Develop Decision
Framework
Develop Position
Description
Identify Key Candidate
List
Obtain Short List
Conduct Reference Interviews
Close Candidate
Transfer Process
Knowledge
HR Sales HR
Deliver FastStart
Framework
Calculate Cost of Mis-
Hires
HR
Create Custom
Selection Process
HR
Build Target Company
Plan
Sales
HR Sales
HR
Sales
HR
Sales
Sales
HR
Sales
HR
Sales
HR
Sales
HR
Sales
HR
Sales Sales Sales
Review Comp Plan
Assess Reporting Structure
Understand Sales
Strategy
Cost of Mishires
Name Name Name
1. Total costs in hiring the person ● Recruitment/search fess (any guarantee? If so, was money recovered?)● Outside testing, interviewing, record checking, physical exam● HR department time and administrative costs (for all candidates)● Travel costs (for all candidates, spouses, other executives traveling to meet candidate)● Time/expenses of non HR people (all candidates)● Relocation (moving household goods, purchasing house for candidate)
2. Compensation: (sum for all years person was in job)● Base ($__________ x number of years)● Bonuses ("signing," performance, etc.) for all years● Stock options (realized for all years), benefits (insurance, 401K, etc.), car, clubs● Other forms of compensation
3. Maintaining person in job: (sum for all years person was in job)● Administrative assistant for all years● Office "rental" (incl. electricity, etc.) for all years● Furniture, computer, equipment, travel for all years● Training
4. Total severance: ● Severance fee (salary, benefits, use of office), lawyer fees● Outplacement counseling fee● Costs in lawsuits caused by the person (EEOC, harassment, EPA, OSHA, etc.)● Administrative costs is separation, wasted time of people in separation● "Bad press" (loss of corporate good will, reputation)
5. Mistakes/Failures (missed and wasted business opportunities)● embezzled $1M● drove a key customer away● impaired customer loyalty● mis-hired three people at total cost of $2.3M (applies to a manager)● wasted $700K on software that had to be scrapped (applies to a manager)
6. Disruption (Costs of inefficiency in the organization)● lower morale, lower productivity● impaired teamwork
8. SUM OF ALL COSTS (#1 through #7)
9. Estimated Value of their Revenue Contribution
10. NET COST OF MIS-HIRE (#8 - #9)
11. AVERAGE COST OF MIS-HIRE
Cost of Mis-Hire Calulation
The average cost of mishire is approximately 6 X the base salary for the role
Example Scorecard
Example: Custom Selection Process Flow
• Candidate Completes Career History Form Step #1
• Hold Phone Screen Step #2
• Conduct Topgrading Interviews Step #3
• Submit Top 3 Candidates to Client Step #4
• Client Interview Step #5
• Round Robin Interviews & Whiteboard Step #6
• Reference Checks (x3) Step #7
• Round Table Review Step #8
• Formal Offer Step #9
• Onboarding Step #10
SBI
SBI
Client
Client
SBI
SBI
Client
Client/SBI
Client
Client/SBI
Competencies
Competency Interview Scoring Methodology
Area Individual Competency DefinitionRating (1 - 6)
Benchmark (1 - 6)
Gap
1. Sales ApproachHandling different sales scenarios; setting agenda; following complex sales process guidance; presenting company value propositions
4.2 (4.2)
2. Pricing MethodsDemonstrating grasp of those methodologies relevant to the business; applying different pricing techniques to proposed solutions; ensuring sales reps are following corporate pricing guidance; frequency of requesting pricing exceptions
3.7 (3.7)
3. Opportunity Management
Managing pipeline; inspecting Opportunities; accelerating campaigns; demonstrating deal ingenuity; providing deal-based ideas
4.3 (4.3)
4. Objection HandlingHandling competitive, price, resource, and risk challenges to proposed solutions; presenting responses to objections; gaining prospect/client acceptance to proposed solutions
4.5 (4.5)
5. Negotiating
Using give-get frameworks; representing company interests; leaving clients, partners, and prospects with feelings about how a deal was obtained; Convincing others of the merits of a position; achieving win-win positioning; getting others to assume a performance burden; persuading customers to change course; persuading managers to alter course
3.9 (3.9)
6. Customer FocusDeveloping customer loyalty; preventing customer attrition; ensuring accounts provide strong references, generating repeat business
4.3 (4.3)
7. Developing Direct Reports
Overseeing talent development programs and efforts; taking interest in advancement of subordinates; success of previous subordinates in other areas of the organization; ensuring stable of qualified and available replacements; developing Career Action Plans
3.2 (3.2)
8. Convert Strategy to Tactics
Developing tactics to implement internal corporate sales strategy; linking customer strategic goals into solution; embeding customer strategic goals into customized sales collateral
3.3 (3.3)
9. Managing ProcessesAdopting company policies; utilizing CRM system; adhering to sales process; understanding sales methodologies; defining handoffs; measuring process output; providing specific governance and guidance around process adherence
3.7 (3.7)
10. Talent ManagementMaintaining a virtual bench; attracting top talent within the organization; assessing talent at all stages in a candidate lifecycle; onboarding oversight
3.5 (3.5)
3.9 (3.9)
Sales Knowledge
Scoring Model
Decision Framework
Weight Max Score Raw Score Weighted
ScoreRaw
ScoreWeighted
ScoreRaw
ScoreWeighted
ScoreRaw
ScoreWeighted
Score Comments
Background Relevance 2 20 8 16 10 20 8 16 10 20
Phone Screen 2 20 9 18 9 18 9 18 8.5 17
TopGrading Interviews
Interpersonal 5 50 9 45 8 40 8.3 41.5 7.8 39
Leadership/Management Style 5 50 9.4 47 9 45 8 40 8 40
Sales Knowledge 5 50 9.9 49.5 9.2 46 9 45 8.5 42.5
Intellectual Horsepower 5 50 9.7 48.5 8.7 43.5 8.9 44.5 9 45
Initial Interview 5 50 0 0 0 0
Profiles International Assessment 3 30 0 0 0 0
Peer Group Interview 4 40 0 0 0 0
Whiteboard Session (Eloqua) 4 40 0 0 0 0
Reference Interview 4 40 0 0 0 0
440
Background/Drug Screen
Offer Made
Offer Acceptance
203.5
46.3%
P/FY/ NY/ N
Candidate Dashboard - <Insert Position>Candidate #2 Candidate #3Candidate #1
224
50.9%
P/F
Candidate #4
TOTAL SCORE
% of Maximum Score
212.5
48.3%
Y/ NY/ N
P/FY/ NY/ N
SBI R
evie
wC
lient
Rev
iew
P/FY/ NY/ N
205
46.6%
Close Candidate
Don’t just send an offer to the candidate
Use the Position Description to explain how the role aligns with the candidate
Sell job to candidate – personal goals, financial goals, future aspirations
Paint a picture for the future
Output
Role Fit - Match top candidate to role requirements Speed - Process clarity reduces internal questioning Search Effectiveness - Distinct candidate profile makes
search more focused Turnover – detailed process reduces costly hiring
mistakes Productivity – new hires ramp to full productivity
faster
Higher quality talent, faster, and with less hiring mistakes
Search Engagement Methodology
Create ‘A’ Player
Scorecard
Set Performance Conditions
Benchmark Role
Talent Selection
Conduct Search
Develop Decision
Framework
Develop Position
Description
Identify Key Candidate
List
Obtain Short List
Conduct Reference Interviews
Close Candidate
Transfer Process
Knowledge
HR Sales HR
Deliver FastStart
Framework
Calculate Cost of Mis-
Hires
HR
Create Custom
Selection Process
HR
Build Target Company
Plan
Sales
HR Sales
HR
Sales
HR
Sales
Sales
HR
Sales
HR
Sales
HR
Sales
HR
Sales
HR
Sales Sales Sales
Review Comp Plan
Assess Reporting Structure
Understand Sales
Strategy
Download our new Ebook, Promoted to VP of Sales: The Year 1 Toolkit, by going to http://www.salesbenchmarkindex.com/ebook-promoted-to-vp-of-sales
Send a copy of presentation to you Additional questions can be sent directly to:
How to On Board New Sales Talent in 5 Easy Steps
Thursday, February 9th, 2012 1:00 p.m. Central 30 minutes Register at www.salesbenchmarkindex.com
Thank-You for attending…
Further interest….
Sales Benchmark Index will….
Join us for our next Webinar….