The X-Factor

Unlocking the hidden potential in your organization

By Mike Lockman

?What is it that drives organizations to realize their full potential??Many business books have been written about this subject. A lot of business books examine strategy versus execution and conclude that one is more important than the other.?What we have found over the years of coaching and consulting with organizations is that you must have both. But even if you have both there is a key type of driver that optimizes executing their sales strategy and doing it well and consistently. We call this key driver the X-factor; because without it, organizations can’t sustain growth and ensure predictable profitable results.?

What is this X-factor? Is it technology or sale process or a sales program??Before we delve into the X-factor, we do want to share that it is not a magic bullet or quick fix. The X-factor is where strategy and execution come alive. It is the “people-factor” but not just any people.?There are 3 key people-factors you need to unlock:

·??????Someone at the top

·??????First-line sales managers as coaches

·??????“People” progress measures

For the remainder of this paper we will identify what needs to happen so you can unlock the hidden potential in your sales organization.

1.????Must have someone at the top who is committed

The path is all too familiar. Someone at the top sees value in implementing a new sales skill or sales strategy program. They are given all sorts of assurances that this new process will “all but guarantee success.” So…they rollout the new initiative. Everyone is energized and excited about becoming better at selling their product(s). And then…the learning curve sets in, and it becomes apparent that selling behaviors aren’t being improved like they were promised. In addition, there is no measurable increase in sales. At best, the increase falls far short from what they expected. Eventually, the “top person” either tires of waiting for improved results or they succumb to internal pressure. In most cases they muddle along in the muck of mediocrity. In other cases, they abandon the process for a new “flavor-of-the-day” approach.

In all probability, the sales process that was rolled-out would have given them a sustained increase in results with the help of factor #2 – the first-line manager coach…just not in the time frame they had expected. With that said, it is imperative to have that “high-level” person who believes in the program and knows that, in time, the desired results will be obtained. The key is…they believe in coaching to develop the reps’ skills and are committed for the long haul.

The senior management sponsor spearheads the initiative by connecting the sales strategy to the corporate strategy; thus ensuring process, measurement, and organizational commitment. They are the strategic catalyst.

2.????Must develop the first-line manager as a coach

This is the “time-consuming” factor to success.

Most managers don’t effectively develop their people’s skills, whether it is selling or sales strategy skills.?A company’s first-line managers are the key change agent when it comes to developing the sales reps. We have found that the most effective way to develop sales reps’ skills to the point that they are able to achieve sustainable business results year-in and year-out is to work extensively with the first-line manager to teach them how to develop their sales reps skills i.e. teach the managers how to teach their sales reps “how to fish.” This only happens because the strategic catalyst at the top sees high value in devoting the necessary time to change and develop the manager’s coaching skills.

However, for many, this point is counter-intuitive. Many top-level managers would like to believe that it is really quite simple to develop sales managers into great coaches; all they need do is educate the manager as to what works and what doesn’t work and the manager should be fully capable of replicating this with his or her people.?This couldn’t be farther from the truth.?In fact, for most sales managers, considerable time must be invested in order to develop their coaching behaviors to the point that they can effectively develop their rep’s skills. Even though the first-line manager was a “super” sales rep that is not a guarantee for success as a sales manager.

In most organizations, sales managers focus on the results…the numbers.?This is not coaching. We have found coaching to be poor to non-existent. At best, the coaching was inconsistent.?On the flip side, the organizations who achieved a sustained increase in sales, reporting period after reporting period, sufficiently invested in developing and coaching their managers how to teach their people “how to fish.”

In the past, a sales force only had to be good enough to “sell” its product/solution differentiation to the customer. Today, there are more viable alternatives for the customer to choose from…therefore the differentiation gap has been substantially narrowed, if not eliminated. For most companies today, their sales force needs to become a differentiator i.e. their sales force has to create and demonstrate value to the customer. Bottom line, it is the first-line sales manager that achieves a sustained increase in results by coaching and developing their people to skillfully and effectively execute day-in and day-out.

3.????Must be able to measure people’s progress

Accurate measurement can be difficult to accomplish. So…it is important to make it simple and straight-forward, and must measure improvement of the sales rep and the progress being made with the customer. These measures are called leading indicators and eventually get to the business results i.e. lagging indicators

For the sales manager, it is important to place emphasis on coaching behaviors and customer progress wins. One way to measure customer progress is by effective funnel management. The manager should be involved in more early stage opportunities where coaching effort is optimized vs. late-stage opportunities which are better “joint selling” opportunities.

For the sales reps, organizations should measure both leading and lagging indicators.?A good leading indicator of customer progress is an advance, which is an action the sales rep achieves and is agreed-to by the customer that moves the opportunity forward towards an eventual successful outcome. Examples of effective lagging indicators are tracking an increase in sales results or an increase in profitability.?The key is to consistently measure and align what is tracked to the coach and rep compensation.

In summary

All three factors are required in order to ensure success…senior management commitment, first-line sales manager coaching, and people progress measures. And, while that’s not easy to accomplish, as many companies can attest to, success is all but guaranteed for the company that stays the course…the X-factor.

As an example, Con-Way is a $6B company in the trucking industry. They are clearly differentiated from the competition, but at a cost premium. Over the past few years they embraced the 3 key factors. When Ed Conaway was the EVP of Sales, he was an unwavering advocate and the first-line sales managers have become effective “world-class” coaches around a coaching process that is measurable and rewards sustained results. In fact, as a direct result, they have become so effective that they have lowered overall sales expense by 40% while substantially growing their business.

While we have just scratched the surface of this topic, our hope is that we have given you enough information to help you identify your X-factor…the key people that will unlock the potential in your organization.?Simply put in the article “Engaging People to Deliver Results” by Rich Berens, Jim Haudan, and Katie Outcalt; they write: “to create and monetize customer value – that is, to succeed financially in a market-based economy – a business or venture must develop an effective strategy and execute-on-the-strategy.”?And a company’s people are the X-factor to delivering those results!

This brings us back to where we started. What is it that will unlock your potential – strategy, execution or something else??An organization needs both strategy and execution and the key driver of both is their People – the X Factor.?In the article “Strategy or Execution…Which Matters Most?” by Andrew Houston, he writes: “an average strategy that?is well executed will beat a great strategy poorly executed, every time.” Yes, if and only if the X-factor is engaged.

If you would like to discuss how Achieving Sales Results might be able to bring high-value to your organization, please contact me to schedule an exploratory Zoom meeting:

Cell: (734) 353-9205 Email: mike@achievingsalesrsults