SALES MANAGEMENT SKILLS

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SALES MANAGEMENT SKILLS

• Behavioral Interviewing
• Performance Based Management
• Motivation

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Research has shown a very low correlation between
standard interview judgments and performance
ratings.
Also relatively low agreement among interviewers.
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EFFECTIVENESS OF INTERVIEWS
Behavioral interviews have been determined to be
much more effective than traditional interviews
in predicting future performance of candidates
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UNDERLYING PRINCIPLE OF BEHAVIORAL DESCRIPTION
INTERVIEW

• Behavioral consistency
• Past behavior is the best predictor of future
  behavior

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STEPS FOR DEVELOPING A BEHAVIORAL DESCRIPTION
INTERVIEW
Develop job description
Determine competencies
Develop 2-3 questions for each competency
Conduct interviews
Rate candidates on competencies
Make selection decision
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PREPARING A JOB DESCRIPTION

• Have sales personnel list main duties and
  responsibilities of job
• Have sales managers list job duties (Exhibit 1)
• Input from customers on what they think job
  duties should be
• Tabulate results
• Prepare list of job duties and responsibilities
• Classify into major functional groups sales,
  service, territory management
• Determine competencies needed
• Submit to salespeople for input
• Periodically revise

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JOB DESCRIPTION HELPS IN

• Hiring
• Setting Objectives
• Termination
• Developing Compensation Plans
• Training

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COMPETENCY

• Job-related knowledge, skills and abilities a
  person must have to perform a particular job.

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COMPETENCY

• Maturity
• Describe an occasion in which you had to deal
  with a stressful situation?
• Interpersonal Skills
• Describe a situation in which you had to get
  people to do something they did not want to do?

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BEHAVIORAL QUESTIONS

• Often begin with Tell me about a specific
  situation in which you.
• or
• What did you do when?

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INTERVIEW QUESTIONS

• All questions are job related
• Related to job description
• Related to competencies
• No biases, i.e. gender, age, ethnic (Exhibit 2)

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USE S-A-R MODEL

• SAR model helps develop behavioral interview
  questions

• Situation situation faced

• Action what action did you take

• Results what was the result of the action taken
• Exhibit 3

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ASK LESS DIRECT QUESTIONS ABOUT COMPETENCIES

• If competency was empathy for a sales job
• Dont ask
• Can you think of a situation where you had to
  show empathy?
• Rather ask
• In your last job Im sure you had to deal with
  upset customers. Can you think of a particularly
  difficult situation?

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TAKING NOTES

• Only on behavior description
• Situation faced
• Action
• Results
• Use only key words or phrases

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BEHAVIORAL DESCRIPTION INTERVIEWS

• Interview questions based on a thorough job
  analysis
• Job candidates are asked very similar questions
• Candidates answers are rated systematically
  (Exhibit 4)

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Exhibit 4
Form for Integrating Interviewers Ratings
Position ______________________ Candidate
__________________
Competency Interviewer 1 Interviewer 2 Interviewer 3 Consensus
Competency 1
Competency 2
Competency 3
Competency 4
Competency 5
Competency 6
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COMPETENCY RATINGS

1. Far below minimum requirements
2. Marginally below minimum requirements
3. Just meets minimum requirements
4. Marginally above minimum requirements
5. Far above minimum requirements

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INTEGRATING BDI WITH OTHER TOOLS
INITIAL INTERVIEW
APPLICATION FORM
INTENSIVE INTERVIEW(S)
REFERENCE CHECK
TESTING
DECISION
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COMMON CONCERNS

• BDIs usually take longer to prepare than
  unstructured interviews
• BDIs favor people with experience
• BDIs can be prepared for

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PERFORMANCE BASED MANAGEMENT
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THREE PROBLEMSOF SALES MANAGERS

• Long Distance Direction
• Long Distance Motivation
• Situation-Specific Evaluation

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PERFORMANCE BASED MANAGEMENT
SET OBJECTIVES
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FOCUSES OF PERFORMANCE BASED MANAGEMENT

• Results
• Participative Management?

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CRITERIA OF OBJECTIVES

• Congruent
• Compatible
• Specific
• Measurable
• Time Frame
• Written

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HIERARCHY OF OBJECTIVES
TERRITORY
ACCOUNT
CALL
PERSONAL
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TWO KINDS OF OBJECTIVES

• Activity Objectives
• Performance Objectives

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USES OF OBJECTIVES

• Evaluation
• Motivation
• Compensation

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TWO TYPES OF ACTION PLANNING STATEMENTS

• Do Statements
• If Statements

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EXAMPLE OF FORMAT FOR ACTION PLAN

• Objective
• Action Plan
• Actions/Steps Required Timeframe/
• to Achieve the Objective Completion Date

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GUIDELINES FOR EFFECTIVE PERFORMANCE EVALUATION
INTERVIEWS

• Purpose to improve, not discipline
• Mutual problem solving
• Make comments specific
• Focus on performance, not personality

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GUIDELINES FOR EFFECTIVE PERFORMANCE EVALUATION
INTERVIEWS (continued)

• Emphasize your willingness to help
• Reward insight and self-criticism
• Listen actively
• Use reflective summaries You feel that time
  management skills are good?

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GUIDELINES FOR EFFECTIVE PERFORMANCE EVALUATION
INTERVIEWS (continued)

• Use probing questions What can you do about
  that?
• Minimize criticism, use sandwich technique
• Allow catharsis, if frustration is present
• Close with a summary and a plan

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ADVANTAGES OF PERFORMANCE BASED MANAGEMENT

• Directs Activities towards Broader Goals
• Provides Better Appraisal Criteria
• Increases Motivation
• Forces Planning

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INTEGRATING PERFORMANCE BASED MANAGEMENT WITH
OTHER POLICIES

• Compensation
• Budgeting
• Training

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EVERYONE IS MOTIVATED

• Motivation is an issue of direction and intensity

• Need proper direction and intensity

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PERSON 1
proper direction not enough intensity
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PERSON 2
proper direction and intensity
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PERSON 3
wrong direction right intensity
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FIVE THEORIES OF MOTIVATION

• Needs Theory
• Learning Theory
• Goal Theory
• Equity Theory
• Expectancy Theory

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NEEDS THEORY

• We all have a set of needs
• We experience satisfaction when we take care of a
  need
• Dissatisfaction when we fail to take care of a
  need
• We choose the direction and intensity we believe
  will satisfy our needs

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IMPORTANT NEEDS

• Existence needs
• Physiological
• Safety
• Relatedness needs
• Social
• Growth needs
• Self esteem
• Self actualization
• Understanding these needs can help us understand
  direction and intensity

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To find out what really motivates people, you
have to learn how to look inside their heads.
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LEARNING THEORY

• Learn from consequences of behavior
• Repeat behavior which is followed by positive
  consequences
• Tend not to repeat behavior which is followed by
  negative consequences

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ANTECEDENTS AND CONSEQUENCES DETERMINE FUTURE
BEHAVIOR
ANTECEDENT BEHAVIOR CONSEQUENCES OUTCOME
Is the report done? No way, Im swamped Thats OK, dont worry More excuses
Is the report done? A whole day early Good, now you can do another report Stops handing in reports early
Is the report done? A whole day early Good work here is a new account you can call on Continues to do reports early, leads to praise and new accounts
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• MAKE SURE APPROPRIATE DIRECTION AND INTENSITY
  ARE FOLLOWED BY POSITIVE CONSEQUENCES

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GOAL THEORY

• Goals specify a target (direction) for behavior
• Goals give us an idea of the intensity needed to
  reach a target
• The presence of a goal makes it possible to
  monitor progress

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MOST EFFECTIVE GOALS ARE

• Difficult (challenge)
• Specific (to direct us)
• Accepted
• When people have goals they can usually motivate
  themselves

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If you want to hit the mark, you need to know
where the target is.
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EQUITY THEORY

• Compare value of outcomes
• Satisfied when ratio is just
• Dissatisfied when ratio is not just
• Compare our own outcome/input ratio to that of
  others

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EQUITY THEORY (continued)

• Satisfied when comparison is fair
• Dissatisfied when it is not fair
• Motivated to choose a direction and intensity for
  our behavior which we believe will lead to
  outcomes that are just and fair (i.e., equitable)

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EQUITY THEORY (continued)

• You get 5 commission for selling a line
• JUST
• You find out another rep got 6 for selling the
  same line
• NOT FAIR

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EXPECTANCY THEORY

• Expectancies X Instrumentalities X
• Reward Valences Motivation

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KEY QUESTIONS IN EXPECTANCY THEORY

• Expectancies
• How will my effort affect performance?

Instrumentalities How will my performance be
rewarded?
Reward Valances How much do I value an increase
in the reward?
Motivational Level