The State of B2B Sales Management in 2011:

10 Exercises to Compare Yourself with Your Peers

Sales Consulting Firm

Focused exclusively on Sales Force Effectiveness

Leverages the benchmarking method to generate client results

Objectives

1. Help sales managers compare themselves to their peers

2. How can these exercises make you:

1. Faster?

2. Better?

1. Total target cash compensation is set at the 60th percentile of labor market competitors of a pre-identified list of companies.

2. Pay mix is no less than 85/15 and no greater than 50/50.

3. There are no more than 3 performance measures, one of which will be a sales production measure.

4. No measure is worth less than 15% of the pay program.

5. At least 60% and no more than 75% of reps exceed quota.

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Compensation Programs: True or False Exercise 1

1. We have matched selling capacity (total selling hours) to market demand (total market potential).

2. The type of rep needed is determined by the role the customer wants the rep to play when conducting a transaction.

3. Territory potential determines quota assignment.

4. Our best reps are in the territories with the most potential.

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Organizational Models: True or False Exercise 2

Lead Generation Programs: True or False Exercise

The definition of a lead is determined by Buyer Personas.

We understand the # of leads generated, and their quality score, for each demand generation $ spent.

We have a defined process to move from an inquiry-lead-opportunity-customer.

We understand the volume required at each funnel stage to make the number.

We have made the switch from outbound to inbound marketing.

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3

Selling Methodologies: True or False Exercise

1. We understand the Buyer’s Journey.

2. Our sales methodology has been redesigned and mapped to the new buyer’s journey.

3. The new sales methodology has defined stages, activities, job aides, and buyer driven exit criteria.

4. Our SFA system facilitates the adoption of the sales methodology.

5. Forecasting accuracy exceeds 80%.

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4

Modeling Segment Potential: True or False Exercise

1. We use a customer-driven segmentation approach.

2. We use an activity-driven segmentation approach.

3. We use a cost-driven segmentation approach.

4. We have tested the validity of these methods:

– Named accounts- high value targets

– Industry- verticals with high propensity to buy

– Sales Frontier- peak performance replication

– Metro Compression- geographic density

– Territory re-balancing happens at least once per year

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5

Attracting ‘A’ Players: True or False Exercise

1. We provide better territories than the competition.

2. Our quotas are attainable.

3. Our sales managers are coaches and not micro managers.

4. The compensation program follows the 3x uncapped best practice.

5. The sales culture is a meritocracy with favorable accounts going to proven performers.

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6

Selecting the Best: True or False Exercise

1. We have defined an “A” player.

2. We have calculated the cost of a miss hire.

3. Our search and sourcing efforts are confined to pools filled with “A” talent.

4. We use past performance data to predict future results.

5. Competency screening is determined through scenario based behavioral interviewing.

6. A standard decision framework is used when choosing between candidates.

7. Reference checks include past bosses, current and former customers, and co-workers.

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7

Onboarding New Talent: True or False Exercise

1. By role, we understand the time it takes a new hire to make the first sale.

2. By role, we understand the time it takes a new hire to reach quota run rate.

3. We have an individualized 30/60/90 plan for each new hire.

4. Leading indicator measurement is used to track new hire progress.

5. Sales managers are measured on hiring effectiveness.

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8

Developing Future Talent: True or False Exercise

1. We retain the top 25% performers for at least 5 years.

2. Certification programs enforce career-long training.

3. We have a multilevel progression within the same job family.

4. A clear career advancement path is established.

5. Training content components are

1. Industry perspectives

2. Selling competencies

3. Product knowledge

4. Use case

5. Sales methodology

6. Automation tools

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9

Sales Management Role: True or False Exercise

1. Sales managers do not have their own accounts.

2. District sales managers have direct responsibility for reps for a defined list of named accounts.

3. Job description calls for: staffing, training/coaching, forecasting, quota allocation, account assignments.

4. Our sales managers received 2x the training of our reps.

5. New sales managers are enrolled in a peer mentor program.

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