Interview with Andrew Dugdale, from Fit-4 Sales Assessment (www.salesassessment.com)

1) Hi Andrew, thank you for this interview. Let's start by talking a little about Fit-4. In a short sentence, who should use Fit-4?

Anyone who wants to improve the revenue performance of their sales people – and if you find anyone who doesn’t, then Fit-4 definitely isn’t for them!

Fit-4 is a unique, role specific, robust and highly accurate sales assessment instrument that compares the capabilities of your current sales talent, or new hires, to the capabilities found in a High Performer doing the same role.

This enables you to measure an individual’s suitability for your specific sales role and shows you:

• How well they are likely to perform, compared to a high performer in the same role.
• What their development needs are specifically to improve revenue performance in that role.
• Whether they have the potential to become a high performer – or not.
• What’s going to motivate them to perform better – or stay with you.

2) What have you learned after all your experience with Fit-4? What is the biggest lesson?

The biggest learning/surprise is that so many sales people have ended up in their current jobs simply because there was a vacancy, they happened to be available, and the recruiting manager felt they would fit in with the team.  

The biggest lesson we have seen is that ‘being available’ and ‘seeming like a nice sort of person’ are not good enough reasons to employ sales people.  

The biggest challenge we face is breaking the bad news about the capabilities of their sales team to a sales leader.  The benefit though is that we can at least help them fix those same problems – usually within just a few weeks!  

3) What sales books do you like and recommend?

My favourite books are “Every Business is a Growth Business” by Charan & Tichy (because if you’re not in business for growth – you must be a charity!); and “Differentiate or Die” by Jack Trout (because if you can’t differentiate your offering it’s simply not worth being in business!).

 4) What's the first thing someone should do after taking your assessment?

Take stock of their situation: our assessments are Role specific, so if a candidate gets good results – then hoorah!  the right person is doing the right job, and they should feel good about the fact they are in a happy minority of sales people and enjoy their undoubted success.  

If a candidate gets poor results – then maybe they need to reconsider whether they are doing the right job – often sales people hunger for sales jobs with bigger titles, but then find them hard, become less successful, and so become unhappy; by taking a job for which they are a good fit, regardless of the title, they will be more successful, happier – and ultimately enjoy their career in sales. 

If people get results showing they are in the right job, but lacking capabilities – then they should work with their employer to improve their skills, and through that their success, and ultimately their happiness.   To be successful in sales you just have to enjoy your job.  

Rule number 1 – ensure you are in the right job; 

Rule number 2 – ensure you are fully trained for that job;

Rule number 3 – don’t think the grass is greener elsewhere – enjoy your new found happiness and success.

About you:

5) How did you get started in sales?

I started life as an electronics engineer back in the mid seventies, moving into the embryonic business of computer engineering in the late seventies.  After qualifying as a computer engineer I moved to work as a product specialist with an Intel Partner right at the start of Intel and the Microchip.  After working in that role for a few months, I found that I was designing in product which was resulting in the customer buying, often without a sales person being involved, so I migrated to ‘technical sales’.  

After a few years doing this I moved to a fully fledged sales job in the early 80’s with a British company producing Ethernet components, right at the beginning of the networking revolution, initially selling, then managing European Sales, then Worldwide sales.  

From this point in the late 80’s I moved into a major US Telco, just as the telecoms business was deregulating and enjoyed success there, before my final move in corporate life to ICL in the mid ‘90’s.  

I left ICL to start my first sales training business (Intellectual Capital Development Limited – which is still going) in 2000, developing the basis of the Fit-4 product during this time.  I formed SalesAssessment.com in April 2008 to sell the advanced hybrid sales assessment tests I had developed over the previous 8 years.  

6) What was your toughest sales ever?

My toughest sale was persuading my wife that it was right for me to leave the security of a very well paid Corporate job to “risk it all” in my own business!  Thank goodness it was a success! Or I may not be here talking about it today!

7) Most memorable sale? Was it because of the money, the adrenaline, the recognition, the power?

None of the above – it was memorable because it was the only sale I wasn’t sure I wanted to make.  Going out on your own is a very big step, especially when you have kids at private schools and a very expensive house to run.  I know it was right, but I was looking for reasons to “lose the deal” all the way through.  So I was selling to my wife – and also to myself!

About your consulting:

8) What is the biggest mistake you see as a sales consultant?

I’m not really a sales consultant any more, I now research, design and publish role specific sales assessment tests.  But in my time in my other company I have seen them all – perhaps the biggest mistake I have seen over and over again is people worrying too  much about the competition instead of getting on and creating competitive advantage through continuously improving the value of their offering to their customers.   

Actually – in thinking this one through – perhaps the biggest mistake people make is to study their competitors in detail, but NOT spend time understanding their customer’s business in the same sort of depth.  

How crazy is that?  It ends up with them designing their businesses as “followers” to their competitors, trying to keep up with them instead of trying to innovate and lead.  And we all know there are no prizes for being second in sales.  Maybe some companies “design in” being second???

9) What are you working on right now that makes you feel energized? What's your next big project?

My next big project is to answer the "so what" question many customers ask after taking our assessments.  The level of granularity in the development detail we provide is very fine and most training courses are more like blunt instruments than surgical instruments.  

Once our customers see exactly where the capability gaps are for each individual, they want to invest specifically in these precise learning gaps – not apply a blunt instrument approach.  

My next challenge is to find enough high quality e-learning modules that are a good fit to our diagnostics and develop a portal enabling our customers to identify precise training elements for each individual.

10) What is the best testimonial/comment you have ever received? Or the one that touched you the most?

Fortunately I get many testimonials, but I think the best one recently was from one of our smaller, growing customers who said ““Growing businesses need the best sales talent, with the right skills, in the right roles, with each sales person highly motivated at all times.  Yet that is one of the hardest things to get right.  Fit-4 delivers the means for any business manager to get that golden combination, whether you understand sales people or not.  Whether hiring, or developing your existing sales people, Fit-4 can guide your investment decisions into the areas that will deliver the most return.”

It really doesn’t get better than that – being able to help not just the Fortune 500, but also the smaller guy.

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To know more about Fit-4, please visite http://www.salesassessment.com/index.html

If You Wish To Become An Effective Sales Leader – And We Really Do Need More Effective Sales Leaders …..

by Jonathan Farrington (http://www.thejfblogit.co.uk)

No one has all the skills of sales management or sales leadership (and there is a difference!) to the same degree, any more than they have the personality traits to the same degree. However, it is much easier to learn or acquire skills than it is to develop new personality traits.

There are five basic skills, and the degree to which any individual cultivates those skills, may well determine the degree of their success.

Co-operation:

No one ever got very far completely by their own efforts. It has been said that none of us have ever accomplished anything without the help, or the results of the work of someone else. No one walks alone through life. Enlisting the help of the right people and at the right time is what we call the ability to enlist co-operation.

A genuine leader will understand that co-operation is a two-way thing and that in order to enjoy the co-operation of others; they must in turn be prepared to give co-operation in a like measure. They avoid unnecessary friction with associates in every possible way. They recognize that each person, whether superior or subordinate, has certain responsibilities and makes certain contributions to the group, which are a part of success. They realize that they are all important – and they treat them as such.

The leader must invite suggestions from others and give each suggestion careful and courteous consideration. They see that the originator receives full credit. He/she knows that asking another’s opinion is the sincerest form of praise. They understand that when associates have a part in the formulation of any plan or program or in arriving at a decision which affects them, they will work all the harder to make that plan, or program, or decision, turn out right.

Organizing and Planning:

An effective leader must be an organizer. They must have the ability to see and grasp the whole picture, separate it into its component parts, determine what has to be done and in what sequence.

A true leader knows in advance that all is not going to be smooth sailing. They make advance preparations and plans to meet needed changes and disappointments as they arise. They know that there will always be some conditions arising which will necessitate an alteration or modification of plans so they do not allow themselves to become flustered by such things when they do come up.

Standards of Conduct and Performance:

No measure can be made without some basis from which to start and some sort of yardstick. One of the leader’s greatest opportunities to lead others to high levels of performance is in the standards they set themselves and how well their personal performance squares with them. They must lead by example as well as by inspiration. A person who sets high standards of performance and conduct for themselves and sets an example of enthusiastic performance will be much more able to inspire others to outstanding performance. This means work and a strict adherence to the code of ethics and the rules of conduct required by your associates.

Decisions:

A good leader does not avoid decisions. A procrastinating attitude toward decision-making has ruined more than one otherwise promising career. A good leader makes decisions whenever needed and at the time they are required. They weigh up the implications of their decisions after having carefully examined a number of alternative solutions.

Developing Your People:

Most effective leaders try to make shrewd judgements of character. This does not mean that they are – or pretend to be – “psychologists”. However, just because an individual seems to be a “nice guy” or, on the other hand, seems personally obnoxious to the leader, they do not allow their personal likes and dislikes, or their emotions, to interfere with sound judgement.
Every able leader teaches their associates to learn and to grow. Their proudest moment is when one of their people achieves success!

Do not be afraid of people who may appear to be more competent than you. You must replace yourself before you can move on, so develop your replacement to allow for your own progress.

Finally, What Is A Leader?

The boss knows how things should be done
– But the leader shows how

The boss leans on his authority
– But the leader counts on good will

The boss drives their staff
– But the leader coaches them from the front

The boss always says “I”
– But the leader talks in terms of “We”

The boss tends to shout “Go!”
– But the leader says “Let’s go!”

 

Jonathan Farrington is a globally recognized business coach, mentor, author, consultant, and sales strategist, who has guided hundreds of companies and thousands of individuals around the world towards optimum performance levels.

He is the CEO of Top Sales Associates, Chairman of The jf Corporation and the creator of Top Sales World. Jonathan is based in London and Paris.


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Twitter: @jonofarrington

Linkedin: http://uk.linkedin.com/in/jonathanfarrington

Youtube: http://www.youtube.com/watch?v=915SBJvdh9s

Speaker: http://www.jonathanfarrington.com/

Klout: 10

Are Your Salespeople Overpaid ?

By Brian Jeffrey, CSP


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Take the Guesswork Out of Hiring Salespeople
Improve your odds of finding a winner with the Sales Temperament Assessment (STA). When hiring new salespeople, use this tool to make sure you don’t put a square peg in a round hole. The STA will help to assure a good fit between the candidate and the sales position. Find out more...
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As a sales management consultant I'm often asked, "How much should I be paying my salespeople?" That's a question that I think most sales managers and business owners would like answered. So I'm going to share my concept with you.

The average salesperson, on the other hand, will probably want to lynch me after reading this article. And why would they want to do that? Because a lot of salespeople still believe in many of the timeworn generalisations that apply to the world of selling such as:

• The grass is greener on the other side,
• I have a lousy territory,
• My prices are too high, and
• I'm underpaid.

I'm not saying that these statements are untrue. What I am saying is that many salespeople use these arguments without really confirming their truth. The truth is that sometimes the grass is greener on the other side, some salespeople do have a lousy territory, sometimes their prices are too high, and some salespeople may well be underpaid.

This article is not about paying salespeople what they're worth; it's about how much the business can afford to pay their salespeople.

Disclaimer

The concept I'm about to share is not cast in stone. It is a generalisation, like Pareto's Principle (the 80/20 rule, i.e. 80 percent of your business comes from 20 percent of your customers) that has stood the test of time. Think of what follows as the Jeffrey Theory of Direct Sales Compensation (i.e. direct sales compensation should be equal to or preferably less than 20 percent of gross profit). As you work out your own numbers, remember this is a generalisation and your mileage may vary.

Sales Efficiency
I'm going to show you how to determine how efficient your sales department is, and I guarantee you'll either be delighted, stunned, or dismayed at the result.

I recommend you do the calculation for the entire sales department, as gross numbers are usually easier to find. If your result is out of whack, you'll probably want to do the calculations on a salesperson-by-salesperson basis to determine where your problem lies. In fact, doing this exercise for each salesperson is an excellent measure of a salesperson's sales efficiency. It will also tell you if you are overpaying for the sales you're getting.

Sales efficiency is a subtle but important factor in running a sales department. Your job is to bring in more money than you spend — a lot more — but you'd be surprised at the number of organizations who are paying too much for their sales. Don't let this happen to you.

There are two ways to determine sales efficiency — the Quick Test and the Bean-counter Method. Most sales managers will prefer the Quick Test but it is wise to go through the Bean-counter Method as well.

Quick Test
Here's the rule for the Quick Test and it's the basic premise of the Jeffrey Theory of Direct Sales Compensation which states that direct sales compensation should be equal to or (preferably) less than 20 percent of gross profit. The lower the percentage, the more efficient your sales operation is from a fiscal point of view.

Direct sales compensation includes salaries, commissions, and bonuses. Indirect costs are taken into consideration in the Bean-counter method outlined below.

That's it. I told you it was quick.

Bean-counter Method
In order to determine your sales efficiency, you'll need to calculate your true cost of sales. Some people do this incorrectly. They neglect to include the hidden costs such as benefits, expenses, and cost of supervision.

If you know your actual numbers, use them in the formula below. Otherwise use the percentages shown, and you'll be pretty close to reality.

The Cost-of-sales Formula:

• Start with the total yearly compensation (direct sales compensation, see above).
• Add 30 percent for benefits and taxes.
• Add 15 percent for supervision.
• Add in automobile expenses or allowances.
• Add in direct communication costs or allowances (pagers, cell phones, etc.).
• Add yearly travel and entertainment (T&E) expenses.
• The total is your annual costs of sales.

Now calculate what percentage your cost-of-sales is of your annual gross profit. The lower the percentage, the more efficient you are.

If it's less than 30 percent, you're running a very efficient sales department.

If it's between 30 to 35 percent, you're still okay but you may want to weed out any poor performers who aren't pulling their weight.

If it's between 36 to 40 percent, you're running a high-cost, low-efficiency sales department.

If your sales costs exceed 40 percent, you're in the danger zone and starting to pay too much for the sales you're getting.

Once your sales costs exceed 50 percent, you're running the business to feed your salespeople while you're probably starving.

An Example
Let's take the example of a sales department with five salespeople with a total sales compensation cost of $367,000. Thirty percent of $367,000 is $110,100 and 15 percent is $55,050. The annual T&E expenses ran $48,500 for a total of $580,650. The annual gross profit was $1,760,000, which means the cost of sales was about 33 percent.

While that's okay, it's a bit too high for my liking. I'd want to do the calculations for each of the salespeople to see if I have any problem children. If all the salespeople were about equal, I'd take a look at my overall margins to see if they're too low, my costs too high, or if my compensation packages are too generous.

The Advantages
Doing this exercise for each salesperson has a number of advantages. It can help with performance reviews. It allows you to rank your people in terms of efficiency so you can see who's giving you the most profit for the least cost. It tells you if the salesperson that's a perpetual pain in the lower part of the anatomy is worth keeping.

Stay Profitable
Your job as a manager is to run a profitable, efficient operation and this exercise will help you determine how close you are to hitting that target. Good luck!

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Avoid Costly Hiring Mistakes
Before hiring a new salesperson, find out whether your candidate is temperamentally suited for your particular selling situation. Use the Sales Temperament Assessment (STA) hiring tool to make sure you don’t put a square peg in a round hole. The STA can help you make a better match between the candidate and the sales position. Find out more...

About the Author

Brian Jeffrey is President of Salesforce Assessments Ltd. His company works with sales managers who want to make the right hiring decisions and build a strong sales team using his sales assessment test. For more articles like this and your free copy of "The 8 Biggest Hiring Mistakes Sales Managers Make" go to => www.SalesforceAssessments.com

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Twitter: @assess4sales

Facebook: http://www.facebook.com/pages/Sales-Temperament-Assessment/132486893452925?v=app_4949752878&ref=ts

Youtube: http://www.youtube.com/assess4sales

E-books: http://www.stacenter.com/ebooks/

Klout: 13