Mj?lnir: The Ultimate Startup Guide to Recruiting Your First VP of Sales
If a founder of a startup can be compared to Odin, the wise leader of the Norse pantheon, then the Sales VP position is Thor's mighty hammer, Mj?lnir.? This mythical hammer must only be bestowed upon someone worthy of it. In the wrong hands, the company could lose precious time and customers; in the right hands, it could electrify your product (pun intended ??).?
Having worked with Startup founders over the last few years, I have spoken to many of them who struggle with the timing of this critical sales hire. There is also a conflict when it comes to the actual role of the Sales VP - Should he be a strategic coach and become an enabler like Mj?lnir or should be a tactical superhero like Thor, who is a player-coach within the team? With the constant struggle on top-line revenues, it is one of the most difficult decisions that Startup founders need to make. My personal take is that the VP of Sales is actually Mj?lnir. If you, the founder, are Odin, then your sales organization as a whole is Thor. Let us discuss a few questions that might help us debate this.
Why is hiring a Sales VP important?
This study in 2022 found that only 22% of people were meeting or exceeding their sales quotas over the past three years. That's a whopping 78% of the sales team struggling to make their numbers and not making incentives. 2023 is a far tougher sales ground than 2022. Sales people who don't make incentives typically leave. The ones who stay are… well, not sales people, in my opinion. Startups that churn sales people are far more impacted on top-line than their peers.?
Hence, hiring a Sales VP requires consideration on the impact they will bring into the productivity and performance of the team. Their responsibilities should include improving the team's performance, boosting sales, and ensuring targets are met, in addition to driving the strategic direction set by the founders in the chosen market.They're meant to increase efficiency, bring in structure via strong sales processes, help recruit and retain top talent, and come up with innovative sales strategies that take your company to the next level. Like Thor leading the charge against the Frost Giants, the VP of Sales has to be inspiring, courageous and determined to conquer new markets.?
Here is a stat that is going to send shivers down your spine: "70% of Saas First VP Sales don’t make it to 12 Months. It’s one of the most common, and also most devastating mishires in startups.”
One of my favorite LinkedIn authors, Amy Volas , speaks about getting the timing right when looking for your VP of Sales. In this article , she speaks about identifying your company growth triggers to assess if you are Sales VP ready. In my opinion, some of the questions you will need to answer as you take your plunge towards Mj?lnir is:
How to recruit the right Sales VP?
Odin was lucky enough to have Thor, his son, by his side from the start, but we mortals have to put in the work to build? our metaphorical Thor - The ideal sales organization.?
These Four crucial steps will guide you in finding and selecting the Sales Leader that you need & deserve: :
1. Identify key requirements for the position: Having a crystal-clear image of what you want out of someone in the position will make hiring that much more efficient. Here are some questions you can ask yourself to figure out what exactly you’re looking for in a candidate:?
2. Sourcing for potential candidates: A compelling job description with clear highlights on the expectations from the role is a must, in case you leverage job posting sites. Even if you are looking to dip into your personal networks, the job description becomes an anchor point to help you source. LinkedIn Jobs is of course one of the most preferred sources for potential candidates, but I have often seen Founders share stories of how they were overwhelmed by the deluge of personal DMs sent by potential candidates once a job has been posted. Your best bet to filter right-fit candidates (if you are using a site like LinkedIn), is to leverage qualifying/ disqualifying questions. The objective is to filter the diamonds from the weeds, and this will require a strong criteria of pre-set questions that you can include on your job listing to ensure that only the relevant candidates filter in. Some of these questions actually come from the above point linked to requirements.
3. Conducting effective interviews: This is actually one of the most critical steps for you in your journey for the Mj?lnir. Your interview template ideally should include a strong mix of trait and skill questions. In addition to past experience, you are also looking at the candidate’s ability to circumvent future unseen challenges. Gamify the interview with mock scenarios. Having more than a couple of interviews with finalized candidates also helps. It is always a great idea to meet the finalists in person. Invite them to your office space. Give them a flavor of what their role will look like. Many of the founders I have worked closely with talk about leveraging references during the interview process. While previous employer references for your VP will certainly help, I would seek references of previous team members who reported into the VP, as well as client references to assess the ability to build strategic relationships.
4. Finalising & On-boarding your first VP of Sales: Once you have finalised your VP candidate and made the offer, it is important to continue to stay invested in the recruitment process. Here is an eye-popping stat - 37% of candidates who you interview are also interviewing with multiple other companies. It is a war for talent out there. 2022 has clearly shown us that talent wars can become inter-galactic! Staying invested with the VP of sales prior to his date of joining is one of the cornerstones of setting rapport, expectations and eventual fulfilment of the role.?
Once on-boarded, you must have a structured plan to help the VP of Sales become acclimated to your sales function. The first 30 days of the VP are critical to both your successes. The best founder-sales leader relationships I have seen were? often forged early. The trust, clarity of goals, and focus on planning and execution are typically hammered in in this time-frame.?
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Why do some VPs of Sales Fail??
The average tenure of a VP of Sales - 16 -20 months! And it hurts you, the Founder, far more than the VP when things go south.?
Losing your VP means losing your hiring time, on-boarding costs, compensation and benefits, severance, team morale, and more! Giving your VP ongoing support and feedback is vital. Here are ten common mistakes Founders make after hiring their Sales VP.
1. Mismatched expectations: If the startup and the Sales VP have different ideas about what the role entails or what success looks like, it can lead to miscommunication and frustration on both sides. If they’re trying to build Folkvangr (the beautiful meadow afterlife ruled over by Freyja) and you’re trying to build Valhalla (the shining hall ruled over by Odin), you’ll just be working against each other.
2. Lack of support or resources: A Sales VP may struggle to meet their goals if they don't have access to the tools, training, or support they need to be successful. Startups may need to invest in things like sales enablement programs, CRM tools, or marketing materials in order to give their Sales VP the best chance at success.?
3. Budgeting issues: No matter how wise they might be, a VP is not actually Odin, and won’t have a magically-multiplying golden ring. It takes funding to grow a successful team, and walking back on budget promises is going to cause friction. Being open and straightforward about the details of your budget right from the interview process will allow them to plan for the funding you have. Always remember, you are Odin. Not the VP.
4. Poor culture fit: Startups often have a unique culture and set of values, and it's important for Sales VPs to align with these in order to be effective. Different outlooks on acceptable risk levels, form versus function, or even remote working could make a huge difference. If a Sales VP doesn't feel like they fit in with the rest of the team or doesn't share the same vision for the company, they may struggle to build relationships and get buy-in from others.?
5. High-pressure environment: Sales VPs at startups may be under a lot of pressure to deliver results quickly, which can be stressful and challenging. If the startup doesn't provide enough support or if the Sales VP doesn't have the right mindset or experience to handle this level of pressure, it can lead to burnout or other issues.?
6. Lack of strategic alignment: Startups may struggle to retain Sales VPs if there isn't a clear strategic plan in place for how the sales team will contribute to the company's overall growth. Sales VPs need to feel like they have a seat at the table and that their efforts are aligned with the company's goals and objectives. If there's a disconnect here, it can be difficult to keep the Sales VP engaged and motivated in the long term.?
7. Lack of agency: Promising the VP they’ll have the voice and the power to get things done and then not following through on that can send the message that you don’t trust them. On top of that, it makes their job harder if information is being kept from them. Be transparent about their reach and open about what you will do to build trust.?
8. Hiring someone above them: In a similar vein to the above, hiring another person to guide your VP is a glaring neon sign that you’ve lost all faith in them. Like the goddess Frigg, whose attempts to stop her son’s death inadvertently caused it, you’ll be spelling your own doom. Instead, give your VP a chance to prove themself. Set realistic milestones, train them for their role, and make sure you communicate regularly to allay your own fears.?
9. Invalidated product: If a product doesn’t fit the market, hiring a Sales VP isn’t going to help. Thor might be the protector of Midgard (aka Earth), but Odin and his brothers are the ones who actually created humans. The founder has to be the one to build a solid foundation – without one, the only thing hiring a VP will do is lose you money.?
10. Overselling your product or solution to the VP: It’s easy to get caught up in the hustle of startup culture but a potential candidate needs to know the reality of the product they’re working with, or it will come back to bite you. In Norse mythology, a disguised giant promises to build the gods a palace in three months with help from no man, in return for a huge reward. The giant finds a loophole by using his magical horse to finish the work, but in the end, the gods are not amused at his deception, foil his plan, and kill him. This might be one of the lesser-known myths, but today it teaches us an important lesson – it’s better to just be honest. Have an open discussion with the candidate, instead of overselling and later losing your VP and the associated costs of their employment.
Concluding thoughts
Remember, you are Odin. The sales VP is Mj?lnir. And your sales organisation - Thor. Together you are unbeatable!
Here is a quick summary of things to keep in mind when you embark on your journey to find the weapon that will bring you ever lasting success:
Only the worthy can leverage Mj?lnir!?
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