The Art of Managing Your First V.P. of Sales

Introduction: The Journey Begins

Hiring your first VP of Sales is a significant milestone for any growing business. It’s both exciting and challenging, as this individual will steer your sales efforts, directly impacting your company’s growth. But managing this role effectively is crucial. Understanding how to collaborate with your VP of Sales can be the difference between skyrocketing success and stagnation.

Why This Role Is a Game-Changer

Your VP of Sales isn’t just another hire—they’re the driving force behind your revenue engine. They need to align with your company’s vision while inspiring the sales team to excel. Studies suggest that companies prioritizing effective sales leadership are 20% more likely to hit their growth targets, making this role critical.

The First 90 Days: Setting the Foundation

The initial 90 days are critical for any new sales leader. It’s during this time that they need to establish credibility, build relationships, and set the stage for success. If they don't move the needle in this period, chances are, they never will. We've seen it happen time and again—if a VP doesn't recruit a strong rep who hits quota within the first 90 days, they're probably not going to. If they don’t actively engage in generating new leads, they likely never will. This period is a proving ground, not just for them, but for your confidence in their ability to drive growth. Here’s a simple breakdown:

1. First 30 Days: They need to focus on listening and learning. Understanding the company culture, meeting with key stakeholders, and getting a grip on current sales processes and challenges.
2. Next 30 Days: They should be analyzing data, identifying quick wins, and setting short-term goals. It’s about making minor adjustments while continuing to build trust with the team.
3. Final 30 Days: They should be implementing strategic changes, aligning team goals with the company’s broader objectives, and setting the pace for the next quarter. Their final goal is to build momentum and establish a rhythm for continued success.

Aligning Goals: The CEO and VP of Sales Partnership

A successful relationship between a CEO and a VP of Sales is like a well-coordinated dance. It’s all about alignment. The CEO sets the vision, and the VP of Sales executes it. But what happens when the VP’s goals don’t align with the CEO’s vision? Misalignment can lead to missed opportunities, lost revenue, and ultimately, a failing business.

Weekly Check-ins: Staying Connected

Regular one-on-one meetings with your VP of Sales are essential. The agenda would include identifying and discussing the sales pipeline, successes, and obstacles alike. Your VP should have a clear picture of what’s happening on the ground and be ready to adjust strategies as needed.

Monthly Operations Review: The Bigger Picture

A monthly review allows you to step back and assess overall sales performance. Analyze key metrics like pipeline velocity, conversion rates, and sales cycle length. This broader perspective helps in spotting trends and making data-driven decisions before issues escalate.

Quarterly Business Review: A Strategic Overview

Every quarter, review the alignment of the sales strategy with long-term business goals. Discuss hiring plans, territory coverage, and ensure that your sales team is on the path to sustainable growth.

Spotting the Red Flags: What to Watch Out For

Let's face it, no one wants to be blindsided by an underperforming hire. So, what should set off alarm bells? Keep an eye out for warning signs like missed forecasts or unclear explanations for performance issues. These could indicate deeper problems that need addressing -

• No New Leads: If your VP of Sales isn't bringing in fresh leads, or worse, relying solely on existing ones, that’s a problem. Your business needs momentum, and it won’t come from recycling the same old prospects.
• Inability to Recruit Strong Talent: A VP of Sales who can't attract top-tier sales reps is like a coach without a winning team. Without strong players, you can’t win games.
• Lack of Strategic Vision: If your VP is more focused on tactics than strategy, they might not have the long-term vision needed to scale your sales team and align it with the company’s goals.

Core Responsibilities: What's Their True KPI?

The million-dollar question: what should your VP of Sales be primarily responsible for? There are three common scenarios:

1. Net New Revenue Only: This setup focuses purely on new business. Your VP is tasked with bringing in $X million in net new revenue within the year. Once a deal closes, any ongoing relationship or upsell is someone else's responsibility. This structure works great if your VP is a rockstar at closing deals but doesn’t want to worry about what happens after the ink dries.
2. Annual Recurring Revenue (ARR) Target: In this case, your VP’s target is more aligned with the company’s overall health. They’re responsible not only for new sales but also for managing churn and ensuring that the ARR meets the end-of-year goal. This is a more holistic approach but can create a conflict if your VP is more of a closer than a nurturer.
3. Bookings Including Renewals and Multi-Year Deals: Larger companies often adopt this model, giving VPs credit for all sales activity, including renewals and multi-year contracts. While this can be appealing, especially in a low churn environment, it can lead to potential misalignment in a startup setting. A focus on easier renewals could come at the expense of new business, which isn't ideal when you're trying to grow rapidly.

According to a recent Forbes article, companies with a strong sales leadership team are 30% more likely to exceed their revenue goals. That’s a stat worth remembering. Your VP of Sales isn’t just another hire—they're a key player in your growth strategy.

The Path Forward

Finding the right VP of Sales is no small task, but when you get it right, the rewards are immense. Managing your first VP of Sales is a journey that requires careful planning and regular adjustments. By focusing on structured check-ins, reviews, and strategic discussions, you can set the foundation for a thriving sales team that drives continuous growth and innovation. If you’re ready to take your company to the next level, why not see how Alariss Global can help? Book a demo today and discover how we can align your sales strategy with your growth goals.