Performance Diagnosis in a Sales Context

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Performance Diagnosis in a Sales Context
Dr. Charles R. Crowell Department of
Psychology University of Notre Dame ccrowell_at_nd.ed
u 574.277.4774
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Performance-Care Model
Did we get better?
FOLLOW-UP
DIAGNOSIS
TREATMENT
What do we need?
How do we address it?
Did it take?
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Performance Diagnosis
DIAGNOSTIC ACTIVITIES
Assessment
Exploratory
Prescriptive
Research
New Knowledge
Treatment
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Static and Dynamic Standards
STATIC STANDARDS
ASSESSMENT
TREATMENT
DYNAMIC STANDARDS
ASSESSMENT
TREATMENT
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Targeted Development

• Because it is diagnostically driven,
• Performance Care dramatically
• improves the ability to target key
• company needs, thereby ensuring that
• Learning occurs on a "Need-To-Know" Basis
• Performers learn just what they need to know,
  right when they need to know it. They are
  not exposed to irrelevant information.
• Training development occurs on a
  "Need-To-Have" Basis
• Performers acquire just the skills they need to
  do the job. They are not given
  unnecessary and costly programs.

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Our Challenge
SALES ENVIRONMENT
SALES MANAGEMENT
PRODUCT/ INDUSTRY KNOWLEDGE
COMMUNICATION SKILLS
TERRITORY/ ACCOUNT MANAGEMENT
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Performance Imaging
Management
Environment
PERFORMER
Customer
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Performance Imaging Short-term Objectives

• Establish a current snapshot of company field
  sales operations in a region or subsidiary
• Identify strengths and developmental
  opportunities
• Provide specific recommendations for immediate
  actions to promote gains in sales effectiveness.

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Performance Imaging Longer-term Objectives

• Establish a long-range development plan for the
  company field-sales operations.
• Provide a basis, through repeated Images, to
  assess progress toward developmental objectives.
• Identify factors that promote success in company
  top performers.
• Enable the company to movetoward ongoing
  self-diagnosis.

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Performance Imaging General Methodology

• SAMPLE SELECTION
• Identify representative sample of High and
  Averagesales performers balanced for tenure and
  type
• OBSERVER TRAINING
• Prepare a team of experienced "outside" observers
  to record performer-customer and
  performer-manager interactions
• FIELD WORK
• Spend one day in the field with each performer
  and his/her manager capturing behavior, outcomes,
  and perceptions

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Performance Imaging General Methodology

• DEBRIEFING
• Consolidate and assess all observations
• HEAD OFFICE INTERVIEWS
• Conduct structured interviews with selected
  support function people in regional/subsidiary
  head office
• ANALYSIS AND REPORT
• Compile data and present findings plus short-term
  recommendations
• DEVELOPMENTAL PLANS
• Formulate developmental plans in conjunction with
  regional/subsidiary management

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Found Two Profiles

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Behavior/Outcome Categories
Rep -Questions -Statements
-Non-verbals

• Pre-Call
• During-Call
• Post-Call
• Call Outcomes
• Manager Interactions

Customer -Questions -Statements
-Non-verbals
Positive Negative
Non-directive coaching Asking vs. telling
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Perception Data
What helps or hinders Reps or Managers?
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Specific Steps
1. Initial discussions with country 2. Executive
overview 3. Identify Internal Facilitator 4.
Develop Review plan 5. Select observers 6. Train
Observers
7. Work in the field 8. Debriefing session
9. Head Office Interviews 10. The Initial
Report 11. The Final Report 12. The Follow-up plan
13. Implement and monitor plan
Step 1
Step 6
Step 2
Step 7
Step 11
Step 3
Step 8
Step 12
Step 4
Step 9
Step 13
Step 5
Step 10
-6
-5
-4
-3
-2
-1
0
1
2
3
4
5
6
MONTHS
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Step 6 Observer Training

• Takes 2-4 days
• Builds progressively
• Focused on behaviors and sequence
• Criterion-based
• Computer-assisted

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Step 6 Observer Training
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Step 6 Observer Training
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Step 6 Observer Training
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Specific Steps
1. Initial discussions with country 2. Executive
overview 3. Identify Internal Facilitator 4.
Develop Review plan 5. Select observers 6. Train
Observers
7. Work in the field 8. Debriefing session
9. Head Office Interviews 10. The Initial
Report 11. The Final Report 12. The Follow-up plan
13. Implement and monitor plan
Step 1
Step 6
Step 2
Step 7
Step 11
Step 3
Step 8
Step 12
Step 4
Step 9
Step 13
Step 5
Step 10
-6
-5
-4
-3
-2
-1
0
1
2
3
4
5
6
MONTHS
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Two Types of Rep Classifications

• Company-based - High vs. Avg. performers -
  Sales to plan - Manager evaluations
• Observer-based - Were blind during observation
  period
• - Customer-focused vs. product-focused
• - Post-hoc classifications
• Agreement was typically 40

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Types of Findings

• Behavior frequencies
• Interaction statistics
• Interaction balances
• Call results
• Sequential patterns (lag 1)
• Observer daily summaries
• Environmental issues

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Pre-Call Behavior Frequencies
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During-Call Behavior Frequencies
REP BEHAVIOR CUSTOMER
BEHAVIOR 1 SOCIAL 26 SOCIAL 2
IRRELEVANT 27 IRRELEVANT 3
INTERRUPT 28 INTERRUPT 4
PRODUCT 29 PRODUCT 5 FACTS
30 FACTS 6 EVIDENCE
31 EVIDENCE 7 REF PRIOR SPC
32 LIMITS 8 REF PRIOR GEN 33
LITERATURE 9 PARAPHRASE 34
COMPLY 10 SUMMARIZE 35
NONCOMPLY . 11 GEN BENEFITS 36 CONCERN
12 SPC BENEFITS 37 NEEDS 13 LIMITS
38 BENEFITS 14 LITERATURE
39 NEEDS Q 15 OPEN Q
40 BENEFITS Q 16 CLOSED Q 41
FACTS Q 17 CLOSE 42
EVIDENCE Q . 18 READS NVB 43 LIMITS Q
19 LIT POSITIVE NVB 44 NON-ATTEND NVB 20
NON-ATTEND NVB 45 RE-ATTEND NVB 21 RE-ATTEND
NVB 46 AGREE NVB 22 AGREE NVB 47 DISAGREE
NVB 23 DISAGREE NVB 48 PONDERS NVB 24
PONDERS NVB 49 WRITES NVB 25 WRITES NVB 50
READS NVB
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Manager Behavior Frequencies
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Interaction Statistics
Call Duration
Product Discussions
Product Mentions
Competitive Mentions
Coaching Time
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Interaction Balances
Call Balance
Coaching Balance
Customer
Customer
Rep
Rep
Customer-focused
Product-focused
Product-focused
Customer-focused
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Positive Call Results
Positive interest in Literature Rep was
consultant Rep left samples Cust. asked for
samples Cust. agreed to increase use Cust.
agreed to use Expanding use Consistent
use Trial use Interest but not yet using
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Negative Call Results
Negative interest in Literature Customer didnt
accept samples Cust. refused to increase
use Cust. said would consider use Cust. refused
to use Cust. not interested in product
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Sequential Patterns
Whitehurst, G. J., Fischel, J. E., DeBaryshe, B.,
Caulfield, M. B., Falco, F. L . (1986).
Analyzing sequential relations in observational
data A practical guide. Journal of
Psychopathology and Behavioral Assessment, 8,
129-148.

SAMPLE TRANSITION MATRIX
Consequent
Behavior R1 R2 R3 R4 R5 C1 C2 C3
C4 C5 A R1 0 3 0 0 0
0 0 0 0 0 n B R2 0 0
0 0 0 0 2 0 0 1 t
e R3 0 0 0 0 0 0 0
0 0 0 e h R4 0 0 0 0
0 0 0 0 1 0 c a R5
0 0 0 0 0 0 0 0 0
0 e v C1 0 0 0 0 0 0
0 0 0 0 d i C2 0 0
0 0 0 0 0 0 1 0 e o
C3 1 0 0 0 0 0 0 0
0 0 n r C4 0 0 0 1
0 0 0 0 0 0 t C5
1 0 0 0 0 0 0 0 0 1

• Benefits tended to follow facts for both groups
• Customer need questions elicited specific
  benefits only for customer-focused reps
• Customer compliance followed close for
  customer-focused reps

Antecedent Behavior
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Observer Daily Summaries
Communication Skills
Percent of Reps with Yes
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Environmental Issues

• Company image helps us with credibility and
  access
• Promotional materials are consistently late for
  our quarterly sales meetings

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How do you use the Image?
Create a Targeted Plan for Development and
Establish Accountabilities
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Actions to Take

• Create a focused plan
• Establish accountabilities
• Communicate with field

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Key Elements of Creating Plan

• Prioritize opportunities and issues
• Define/review standards
• Specify performance objectives
• Select development/change strategies

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Examples
Opportunity Closing product discussions
Standard Close on primary and secondaryproducts
but not on reminder Objective Ask customer
for action orcommitment for both primaryand
secondary products Strategy Review
communication skills modules and use practice
exercises
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Examples
Issue Promotional materials are
late Standard Materials should arrive no
laterthan 3 days before meeting
Objective Marketing should requestmaterials no
later than 6 weeks before marketing
Strategy Work with Marketing Directorto
establish process
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Of what value is the Image?

• Allows for precise, need-related prescriptions of
  development for performers and managers
• Guides company to implement cost-avoidance
  strategies
• Reveals novel best practices to guide standards
• Provides valuable field perceptions regarding
  environmental issues
• Yields information on extent and quality oflocal
  support for field sales
• Provides observer-participants with enhanced
  observation skills