How to Create “Performance Culture” in Your Sales Organization

Imagine a sales team that consistently exceeds targets and drives exceptional results with gusto and commitment. While this type of "performance culture" may sound like a dream scenario to some, it is actually a tangible reality achievable by putting into practice several deliberate actions backed by a strategic focus.

But what is "performance culture?

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Defining Performance Culture

Interestingly, the word "perform" doesn't originate from the idea of a show or acting, or what we think of as a "performance," i.e. something that isn’t real. Instead, the word's roots lie in the Old French word parfornir, meaning "to do, carry out, finish, accomplish." This etymology emphasizes carrying into effect, fulfilling, and thoroughly accomplishing—an apt description that really sheds light on what performance culture is all about.

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A performance culture is an environment where high expectations, accountability, and continuous improvement are deeply embedded in every action and decision. The significance of fostering such a culture cannot be overstated—it is the primary driver of long-term sales success.

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Several key attributes characterize sales teams that are inculcated in performance culture:

• These teams are goal-oriented, consistently striving to meet and exceed targets.
• They value accountability, with each member taking responsibility for their actions and outcomes.
• Collaboration is also central, fostering an environment where team members support one another to achieve collective success.
• Continuous improvement is ingrained, with a focus on regular training, feedback, and development.

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The glue that ties all of these attributes together is leadership. Leaders must set clear expectations, model the desired behaviors, and provide consistent feedback. They create a vision that inspires and aligns the team, ensuring everyone understands their role in achieving the broader objectives. By fostering an atmosphere of trust and respect, leaders enable their teams to thrive, driving sustained high performance and achieving long-term success.

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Building the Foundation

Several years ago, I joined a highly respected digestive health company that faced a critical challenge: it was over-leveraged in one product category, with a single hero product driving a disproportionately large amount of sales. While we were pleased with the success of our top product, we knew this lack of diversification was risky. Strategically, we redefined our identity and created a new innovation strategy to expand the pillars of our business. This was a radical shift in our business model.

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When I took over the sales organization, I encountered resistance from the "old guard." These were private contractor salespeople who were content with the status quo, enjoying the ease of selling a product that "sold itself" and reluctant to stretch themselves.

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To build a performance culture, I knew I had to make the pursuit of excellence exciting and engaging. We immediately introduced Key Performance Indicators (KPIs), both objective (metric-based) and subjective (qualitative measures like integrity, accountability, and coachability). To inject fun and gamification into our culture, we publicly celebrated wins and created a set of awards and trophies to honor specific accomplishments tied to our new company strategy.

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We launched an annual awards gala, turning our national meeting into a celebration of excellence and fun. This event fostered a culture where everyone aspired to be in the spotlight, recognized for their contributions. The competitive spirit and desire for recognition made the pursuit of these goals exciting. We transformed a dry and transactional national meeting into an annual event that would fuel our efforts and enthusiasm for an entire year.

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By setting clear goals, promoting healthy competition, and fostering accountability, we transformed the sales organization. The blend of fun, gamesmanship, and a structured performance culture drove the team towards sustained high performance and strategic success.

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Recruiting the Right Talent

?It’s crucial to ask the right questions during the interview to ensure a candidate's fit with the team. I can’t tell you how many job interviews I’ve witnessed in which the interviewer seems to be doing all the talking and “selling” the candidate on the job. In interviewing, I like to present a less-than-rosy picture of the realities of the job. I always remind the candidate that the job is “not for everybody,” meaning not everyone has the mindset and mental toughness for the daily grind of sales work. This approach tests the candidate's resilience and determination. For example, paint a picture of the “worst-case scenario” a candidate will face in the job and see how they react. Are they immersed in the reality of what the job will entail or they minimizing the challenges of the role?

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Further, it’s absolutely essential to craft questions that not only assess the skills and experience necessary to be successful, but also questions that determine the candidate’s alignment with the company’s values and culture. Are they willing to tackle the less glamorous aspects of the role? This helps ensure that only those truly committed and capable of handling the job are brought on board.

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For instance, during a new hire training session, it became clear that one individual in the group would not be able to integrate the necessary skills for the job. I’ve always subscribed to the adage, “hire slow, fire quickly.” Take your time in the hiring process to ensure a right fit, but once you know someone isn’t right for your team, you must show them the door. In this case, it wasn’t easy, and it was the first time I let someone go during new hire training, but it was clear they were in over their head so we let them go after literally just a few days on the job, preventing future issues and maintaining the team's high performance.

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Providing Ongoing Training and Development

Once the right talent is on board, continuous training and development are key to maintaining a high-performing team. Regular workshops, role-playing exercises, and scenario-based training sessions ensure that team members are constantly improving their skills and adapting to new challenges. This ongoing development fosters a culture of continuous improvement and keeps the team sharp and ready for any situation.

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And leaders must constantly assess their teams. One essential question every leader must ask when considering the strengths of the individuals on their team, as Jim Collins emphasizes in his book, Good to Great, is: "If you could hire that same person today, would you?" This question helps identify whether the team member is delivering on the value they “promised” during the interview process. ?

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Encouraging Innovation and Autonomy

Encouraging autonomy is crucial for empowering sales teams. In fact, the pursuit of autonomy is one of the reasons why individuals get into sales in the first place. Team members should feel confident to explore new ideas and approaches without fear of failure. Leaders should provide the resources and freedom necessary for their teams to experiment and innovate, driving continuous improvement and sustained success.

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By recruiting the right talent, providing ongoing training and development, and encouraging innovation and autonomy, leaders can develop and empower their sales teams to achieve exceptional results.

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Key Performance Indicators (KPIs) to Track?Results

Choosing the right Key Performance Indicators (KPIs) is crucial for driving the desired behaviors in your sales team. The metrics selected should support the strategic goals and encourage actions that align with the company’s long-term success. These metrics can change as the business changes. In my experience, I’ve rolled out new KPIs, or adjusted existing KPIs every year in order to best support the annual business plan and to ensure the KPIs are driving the right behavior.

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Several years ago, I was running a sales organization that used about a dozen KPIs to track performance and award an "Account Executive of the Year" at our annual meeting. Each KPI had a different weight or value in determining a person’s composite score or ranking. Upon analyzing the team’s performance, I discovered that the weighting of the KPIs was encouraging undesirable behavior. Some individuals were gaming the system, boosting their sales numbers by offering enormous discounts that eroded our profitability. They focused on selling hero products rather than protocols that would sustainably grow the business. To address this, we re-weighted the KPIs to drive behaviors that met our sales targets in a sustainable and profitable manner.

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By tracking key performance indicators, recognizing and rewarding achievements, and adjusting strategies based on performance data, leaders can create a dynamic and motivated sales team committed to continuous improvement and sustained success.

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To Wrap it Up…

Fostering performance culture within your sales team is essential for achieving sustained success. It begins with recruiting the right talent by asking challenging questions that reveal a candidate’s resilience and alignment with company values. Providing ongoing training and development keeps the team sharp and adaptable, while encouraging innovation and autonomy empowers individuals to explore new ideas confidently. Tracking the right KPIs ensures that the desired behaviors are being driven, and recognizing achievements fosters a positive and motivating environment. Regularly adjusting strategies based on performance data allows for continuous improvement and agility.

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Now is the time to assess and enhance your own sales team culture. Do you even have a recognizable culture? Reflect on the current state of your team’s performance culture and identify areas for improvement. By prioritizing a strong performance culture, you can drive your team to new heights and achieve remarkable results, turning ambitious targets into everyday achievements.