The document summarizes key points from a presentation on developing a partnership between HR and sales to build high-performance salespeople. It discusses:
1) The size and economic impact of the U.S. sales workforce; 2) Unique aspects of sales that require specialized skills and knowledge; 3) How the prominence of sales varies based on selling environment and job roles; 4) The evolution of sales coverage models over time; 5) Areas where HR and sales must partner, including hiring, development, compensation, and ensuring the right people, opportunities, tools and motivation. It provides an example case illustration of how an HR-sales partnership improved recruiting, management and succession planning.
3. Sales Forces In The U.S.
• There are approximately 14 Million full-time sales
people in the U.S.
• Sales people represent 16% of the U.S. workforce
• Companies spend $1 to $2 Trillion a year in
compensation cost for sales people
• Sales people are responsible for growing the top line
in good times and bad
2
4. What’s So Special?
• Front line – company’s face to the customer
• Impact top line like nobody else, and bottom line too
• All about growth – cost management is secondary
• Sales force issues are unique
– Sales force life cycles, rules of engagement, etc.
– Perfect data link: Σ sales rep results = corporate
results
• Requires a specialized body of knowledge and
competencies
“…fundamental DNA structure is different”
3
5. Sales Force Prominence Varies
Based On The Selling Environment
Partnership
Application- Selling
Oriented Consultative Selling
Need Selling
Level of Sales Rep
Buyer- Multi-Level Selling Complexity Prominence
Oriented Post-Sale Selling
Relationship Selling
Pressure Selling
Product- Feature Selling
Oriented Order Taking
4
7. Sales Coverage Models Evolve . . .
In the beginning...
Sales Process
Lead Qualify Propose Close Fulfill Manage
Small
Mid Geographic Territory Sales Reps
Large
6
8. Iterations Begin To Accumulate. . .
Sales Process
Lead Qualify Propose Close Fulfill Manage
Small Telesales
Mid
Geographic Territory Reps
Large
Account
Named Account Sales Reps
Enterprise Coordinators
7
9. Coverage Becomes More Complex –
And Expensive
Sales Process
Lead Qualify Propose Close Fulfill Manage
Telesales Reps Proj Cust
Small eChannel Mgrs Care
Agents/Distributors
Mid
Large
Named Account
Account
Telemarketing Sales Reps
Coordinators
Enterprise Reps
Vertical 1 Vertical 1 Specific Reps
Vertical 2 Vertical 2 Specific Partners
8
10. HR And Sales Must Act As Partners To
Assure That The Sales Function Has…
l Programs, tools and processes to guide:
— Hiring/ re-deployment / exit
1. The right people — Feedback and coaching
with right skills — Sales Supervisor (people mgt.) effectiveness
— Talent development and career progression
— Base pay progression
l Sales strategy clarification
2. Focused on the l Sales process clarification
right opportunities l Sales role design and sales organization
development
with the right tools
l Quota setting and allocation
l Employee Value Proposition assessment and design
3. Highly motivated l Sales compensation assessment and design (often =
regional/global)
to execute sales
l Sales compensation implementation
strategy l Sales compensation risk assessment and mitigation
l Sales compensation governance
9
11. First, The Right People with The Right
Skills …
Career Framework + Competencies
M anagemen t Career Path
Executive
VP SVP EVP CEO
M anagement
Supv Mgr Sr Mgr Grp Mgr Sr Grp Mgr
Professional/Expert
In dividu al Contributor Career Path
Entry Intermed Career Specialist Master Expert
Technical/Business Support
Entry Intermed Senior Lead Supv
Productio n
Entry Intermed Senior Lead
l Uses career bands (e.g.,
Career Framework
+ l
Competencies
Clarifies the knowledge, skills
professional, manager) and and abilities required for
career levels (e.g. entry, successful performance
intermediate) to organize and
l Provides foundation for
align roles across the
performance management,
organization
career pathing and planning,
l Includes criteria to clearly learning and development, and
describe each career level succession management
10
12. Providing A Clear Career Path Helps Both
Retain Sales Talent and Guide
Development Discussions
Entry Level Description
2nd Level General Product & Selling Client
S7 Manager Profile Sales Expertise Process Orientation
1st Level • Sells less • Has basic • Emphasizes the • Typically is
S6
Manager complex understanding of process rather responsible for a
products and/or business, service than developing territory or group
S5 Team Leader services and/or products own sales of accounts with
• Works within sold approaches more than 10
an assigned • Has up to two (e.g., make 10 current and
S4 Expert
territory or years of sales calls a week) prospective
customer base experience; may • Typically makes customers
S3 Career have recently sales calls from
• Has up to two
years of sales worked in standardized
S2 Associate experience telesales or out- “scripts” for
bound call center some of the
and is company’s less
S1 Entry transitioning to a complex
field sales products and
position services
Sales/Sales
Management
11
13. Providing A Dual Career Path Can Help
Retain Top Sales People
Executive
Management
Career Path
VP SVP EVP
Management
Supv Mgr Sr Mgr Grp Mgr Sr Grp Mgr
Professional/Expert
Individual Contributor Career Path
Entry Intermed Career Specialist Master Expert
Technical/Business Support
Entry Intermed Senior Lead Supv
Production
Entry Intermed Senior Lead
12
14. Illustrative Career Path Based On Sales
Competencies And Career Bands
Illustrative career path example – Sales
CASE EXAMPLE
Sales
Senior Senior Sales Sales
Operations Operations Operations
Operations Operations Operations
Specialist Specialist II Project
Specialist Manager Director
Manager
Associate Senior Manager
Product Product Senior Product
Product – Product
Specialist Manager Manager
Manager Management
VP of Sales
Sales District Sales National Sales Regional Sales
Sales Rep I Sales Rep II
Supervisor Manager Manager Manager
Senior Customer Senior Manager
Customer Customer
Customer Service – Customer
Service Rep I Service Rep II
Service Rep Manager Service
Sales Support
and Customer
Service Director
Sales Support
Senior Sales Senior Manager
Sales Support I Sales Support II Project
Support – Sales Support
Manager
Entry Intermed Career Specialist Master Expert
Sr Group Sr Group
Supv Manager
Career Manager Manager Manager
Bands VP
13
15. Sales Competencies Define the
Knowledge, Skills and Abilities Required
For Successful Role Performance
Commonly, we develop competencies for both sales
and sales support . . .
CASE EXAMPLE
Direct Sales
Customer and
Relationship Influence/ Demonstrating
Industry Solutions Selling
Management Persuasion Value
Knowledge
Sales Support
Customer and Business
Customer
Industry Process Consultation Implementation
Experience
Knowledge Management
14
16. By Scaling Each Competency, We Clearly
Communicate Development Expectations
And Provide A Basis For Assessment
Influence/Persuasion – Creates compelling rationale to facilitate and motivate action toward a desired outcome
l Uses appropriate interpersonal styles and communication methods to gain acceptance from others for an idea, plan, activity, service, or
product
l Seeks to understand others’ opinions, positions, and emotions to provide direction to solve problems and negotiate mutually-beneficial
outcomes
l Gains support and commitment from others and mobilizes them to take action
Developing Supporting Applying Leading Shaping
l Learns to utilize various l Uses a variety of basic l Presents ideas and l Identifies key motivators l Modifies own behavior to
communication methods communication and recommendations in a to direct others toward a accommodate situations
and recognize differing facilitation techniques to manner that clearly links point of view and and individuals in an
interpersonal styles persuade others in to business priorities and generates new ideas effort to facilitate
l Paraphrases others’ straightforward situations gains acceptance from based on differing view attainment of mutual
points of view to check l Builds common ground others points to gain broader agreement
for understanding and by highlighting areas of l Identifies and addresses acceptance for ideas l Demonstrates a
communicate areas of agreement and focusing key concerns from l Diffuses emotional balanced understanding
agreement efforts on resolving areas differing perspectives to situations through focus of all sides of an issue or
l Responds to objections of disagreement develop mutual on mutually beneficial conflict and provides
with supporting data and l Clearly articulates the understanding solutions and identifying support and tools to help
information case for action and l Involves others in key win-win outcomes for all others move to
describes the benefits of decisions or plans to parties agreement
a proposed plan influence a desired l Involves others across l Defines expectations,
outcome; ensures others the organization, where goals and the future
feel they have necessary, to influence a state to generate
contributed to the desired outcome; excitement and action
conclusion ensures others feel they from others, giving
have influenced key direction and purpose to
decisions others’ collective efforts
Competency Atlas, Towers Watson’s competency dictionary, can be used to
develop the sales organization’s competency model
15
17. The Sales Competency Framework Needs
To Be Tightly Aligned With Sales Strategy
– But Stay Flexible …
Is This Our Strategy? OR Is This Our Strategy?
Team selling &
Individual selling
Cross-selling
Geographic Territory Assigned accounts
Transactional Selling Consultative selling
Order Taking Account Planning
Competencies need to be integrated into how managers coach and
manage their people . . . Let’s look at an example
16
18. Case Illustration: One Of The Fastest
Growing Pharmaceutical Companies
HR-Sales Partnership Challenge
“We more than doubled our sales force size in the last two years and are having
a hard time attracting and retaining top sales talent into our organization.”
Background Activities
Sales’ desired HR Program Content
outcome: l Career-based competency model – career ladders + functional competencies
l A consistent framework for
l Placement of roles into model
organizing roles, with clear
l Refinement of existing competencies and leveling for each; role-specific competency
linkages to career
management and talent expectations
programs l Career paths and criteria for progression and promotion
l Clear career paths and l Linkages between the career-based competency model and current talent management
opportunities for all programs
employees – demonstrating l Compelling and motivational “story”
that employees can have a Implementation
long and successful career l Branding
with the company
-On Track to Success
l Enhanced succession
l Communication strategy and campaign
management to meet the
demand for leadership - eCards
talent - E-mail announcements
- Reference guide
l Manager and employee training – three meeting events
l Project management, including meeting facilitation and leadership briefings
17
19. Case Illustration: Pharmaceutical
Company (Continued)
Results
Improved Recruiting and Selection
l Recruiting process was able to staff the rapidly growing organization
l Recruiting tools and communications clearly articulating career paths within the organization
provided an advantage over larger pharmaceutical companies
Improved Sales Management Effectiveness
l Common set of competencies and expectations took the guesswork out of the process for
managers
l Provided more time and better tools to effectively mentor and coach the sales organization
l Engagement levels increased for both sales reps and sales managers in the first year following
implementation
Improved Succession Planning
l Developed formal high potential program and “fast tracked” many through the career paths
l Used formal assessments to rate sales and sales management staff on the key competencies
and promotability
18
20. “Best” Principle of Sales Force
Competencies Development
How important is this How frequently is this
competency to overall job competency required in a
performance in a sales sales role?
role?
Not Applicable
Not Applicable
Daily or More
Times a Year
Importance
Somewhat
Important
Important
Important
Annually
Of Little
Monthly
Several
Weekly
Critical
Often
Very
N 1 2 3 4 5 1. Competency Name N 1 2 3 4 5
N 1 2 3 4 5 2. Competency Name N 1 2 3 4 5
N 1 2 3 4 5 3. Competency Name N 1 2 3 4 5
N 1 2 3 4 5 4. Competency Name N 1 2 3 4 5
N 1 2 3 4 5 5. Competency Name N 1 2 3 4 5
5
N 1 2 3 4 5 6. Competency Name N 1 2 3 4
Criticality = Importance x Frequency
19
21. Linking Pay & Capability Development
Base Pay Progression Incentive Pay
• Vertical pay grade progression • Target incentive pay linkage
opportunity – Job level / grade
– Different role – Base pay
– Same role, but at higher level
of competency • No explicit linkage
– Commission structure
• Horizontal pay progression
opportunity
• LTI linkage
– Range penetration based on
performance rating – Job level / grade
– Competency-based pay – Discretionary (retention
progression within pay range vehicle)
20
22. The HR-Sales Partnership in Sales
Compensation Design Projects
Role of Steering Committee
l Articulate corporate objectives and interpret
corporate policy
Steering Committee
l Make critical strategy decisions
l Guide overall direction of the project
l Review and approve recommendations
Role of Design Team Design Team
l Oversee ongoing project tasks
l Participate in analytical process
l Review/critique hypotheses, findings , and
recommendations
l Identify and help gain access to, and Business Sales Human
information from , any needed Subject Matter Finance
Sales Unit Operations Resources
SME
Experts Leadership SME SME
l Champion any needed data gathering,
interview scheduling, and general navigation
assistance
The role of HR will be either Project
Role of HR Project Manager
Manager, or Co-Leader with the Sales
l Participate as a member of the Project Team
l Manage all aspects of the project to achieve Operation Manager
timely delivery of results
l Lead all activities and Project Team meetings
l Create all meeting material and documents
l Provide perspectives on best practices through 21
research and data bases
24. Single “Best Principle” for Sales
Compensation
Poor Pay Dispersion
Min Typical Payout Excellence Difference
between top
and average =
100% of 110% 115% of
15% of target
target target
Improved Pay Dispersion Difference
Min Target Excellence between top
and average =
150% of
0% of 100% of 200%
target
target target of
target
Make sure that total cash is compelling and differentiated for your top
performers
23
25. HR And Sales Must Act As Partners To
Assure That The Sales Function Has…
l Programs, tools and processes to guide:
— Hiring/ re-deployment / exit
1. The right people — Feedback and coaching
with right skills — Sales Supervisor (people mgt.) effectiveness
— Talent development and career progression
— Base pay progression
l Sales strategy clarification
2. Focused on the l Sales process clarification
right opportunities l Sales role design and sales organization
development
with the right tools
l Quota setting and allocation
l Employee Value Proposition assessment and design
3. Highly motivated l Sales compensation assessment and design (often =
regional/global)
to execute sales
l Sales compensation implementation
strategy l Sales compensation risk assessment and mitigation
l Sales compensation governance
24