Home Resources Blog Sales 2.0

Posts Tagged ‘Sales 2.0’

Can you really shorten the Sales Learning Curve?

Wednesday, January 13th, 2010 by info@streetsmarts.com (Dave Batt)

I was recently directed to a copy of a 2006 Harvard Business Review article entitled: ‘The Sales Learning Curve’ by Mark Leslie and Charles Holloway. The concept presented is how and when you should ramp up the sales force during new product launches using a concept called the ‘Sales Learning Curve’. The model is useful to develop thoughtful launch strategies, plan resource allocation more accurately, set appropriate expectations, avoid disastrous shortfall and reduce both the time and money required to achieve a profit.

In summary, when your company launches a new product the paper suggests you need to provide your company time to climb the sales learning curve (SLC) to find out how early customers acquire and use your offering and then modify your sales and product tactics based on what you have learned. The idea is to match your sales force size and skills to where you are situated on the SLC. So instead of starting with a large sales force, a company is better served by hiring a small team of sales staff with the right competencies to lead the company through an iterative learning process that includes the continuous discovery and solution of issues problems before moving into full blown launch with a full sales force complement. The counter would be to hire a full sales force too fast, which would just lead the company to burn through cash and fail to meet revenue expectations.
A similar concept called the manufacturing learning curve (MLC) is already used in the manufacturing sector where the costs of produce the early units of a new product are typically high, but over time, the production costs start to fall as the production process is optimized through learning and when volume increases start to make economic impact. However the SLC concept does provide a useful lens through which to consider when to ramp up sales teams as a company goes through field testing to full market adoption and as employees transfer knowledge back and forth between the field and across all departments.

But as I reviewed the article I started to ask myself. ‘What if the Sales Learning Curve’ could be made steeper and shorter?  The SLC tracks sales yield over time and if you can shorten the curve you reduce the time it takes to reach targeted sales quota levels.  The shape of the SLC is not only impacted by how quickly sales people learn but also by how quickly the whole organization learns – product, marketing and sales. The point here is that an organization can either accept the status quo in that ‘it takes as long as it takes’ or it can expedite and facilitate the knowledge capture and dissemination process to ensure that:

  1. Early feedback is captured back from the field in a system of record that proves insight that becomes useful and applicable for the organization as a whole, thereby allowing the company to take rapid and effective corrective action.
  2. Marketing and communications are able to rapidly adjust and refine their go to market bill of materials. Agility is the key here as well as the access to the market insight marketing required to increase the level of responsiveness to market needs.
  3. Sales and channel field experiences and packaged best practices are shared in a manner that raises the competency levels of the whole workforce.
  4. The on boarding cycles of sales teams and therefore the time to achieve full sales quota is shortened by providing them with the timely and up to date knowledge for them to be successful.

Since the publication of this article, knowledge automation systems such as StreetSmarts® have made significant strides to address the organizational challenges of trying to reduce the costs and times to achieve full sales yield for new product and service launches.

New Survey Outlines Continued Sales Effectiveness Challenges

Thursday, October 1st, 2009 by info@streetsmarts.com (Dave Batt)

I reviewed some interesting findings from the Corporate Visions Inc. Quarterly Sales Messaging Report Q3 FY09 (www.corporatevisions.com) which surveys thousands of business to business marketing and sales professionals. The survey highlights the continued challenges around sales effectiveness, in that 74% of salespeople publicly admit to rewriting messages and tools created by marketing.  There still seems to be a divide amongst many sales and marketing teams and the fact that selling time is being absorbed by sales people recreating marketing assets is not only inefficient but potentially dilutes or even damages a brand. It means sales professionals don’t feel confident in the messages they are being asked to deliver or don’t feel they are credible or compelling enough within the rapidly evolving competitive landscape.

Another key area of concern highlighted in the survey findings is that a staggering 87% of salespeople are looking for more coaching from their managers. The key area where sales teams felt there were gaps was how best to differentiate the company and communicate what makes the company’s solution different. Clearly classroom training alone is not the answer as things change quickly and most people will not contest that what is learned in the formal training environment is not used indefinitely or quite quickly forgotten. And one on one coaching is not really a scalable answer either. How can sales managers hold the hands of each and every sales person though each and every stage of the sales cycle?

The key to better enable sales teams and drive higher overall sales effectiveness is a more holistic approach to the whole sales and marketing function. What is needed is self help in an ongoing manner for sales and empowerment of the sales force to continue to learn and develop at their own pace. Marketing and sales are so often considered as separate functions in many organizations but customers assume they are dealing with a company and not a set of departments. What is needed is better collaboration to close the sales and marketing divide, where marketing assets are ranked and rated by the sales recipients so marketing have the insight from the field to make corrective action and build stronger business alignment.  Though the use of enabling technologies this is now entirely possible and also means that consistent market messages are achieved, rather than recreating assets and creating several versions of the truth.

The Wild World of Web 2.0 in the Enterprise

Tuesday, September 8th, 2009 by davebatt

I read a highly interesting article by Dion Hinclliffe today on the 14 Reasons why Enterprise 2.0 Projects Fail . Whilst talking to our own prospects and customers and examining their challenges, they seem to corroborate the top level findings mentioned in Dion’s blog.

The key challenges for organizations that we hear about are how to scale initiatives that start at a work group, team or department level, usually independently of IT and how organizations usually end up creating yet more silos of information rather than unifying knowledge across silos. And of course there are security and compliance concerns associated with Web 2.0 initiatives for an enterprise. For example, who is the owner of content? What is deemed as authoritative information? And how is information kept relevant and up to date? All of these factors need to be considered when considering initiatives that are enterprise caliber. Tom Reilly is a leading Learning Leader in the Chicago Area and CLO for a leading financial institution.

Watch his insightful video about Web 2.0 in the Enterprise .

ASTD video on training reinforcement for sales professionals

Monday, August 17th, 2009 by info@streetsmarts.com (Dave Batt)

Brian Lambert, Director of Sales Training Drivers for the American Society for Training and Development (ASTD) shares valuable insight in his video on how they enabled knowledge automation and encouraged informal learning and collaboration for sales professionals and sales training professionals for their training reinforcement and sales effectiveness initiatives. He discusses how his organization looked to unify information across their knowledge silos to ensure that information was distributed with agility and speed in a manner that sales professionals like to consume. Brian also discusses how they ensured content was of quality and relevance to their users, how they overcame traditional IT and operational concerns during deployment and also outlines the speed of deployment of the StreetSmarts® solution. View the video at http://www.streetsmarts.com/solutions/training-reinforcement

Chicagoland Companies Discuss Informal Learning for Sales Effectiveness

Monday, August 3rd, 2009 by davebatt

Last week I facilitated peer group sessions with more than 100 learning leaders and sales managers in Chicago.  A special thanks to Mr. Dirk Tussing of Chicagoland Learning Leaders for organizing an event that included representatives from Chicagoland’s top companies.   The purpose of the sessions was to discuss the findings from ASTD’s in-depth research of the ‘State of Sales Training‘.   Dr. Brian Lambert of ASTD and Sales Training Drivers presented the findings to participants, which launched the room into active discussion.

The research findings drove discussions about one finding in particular, that 49% of organizational knowledge is actually acquired through informal learning.  And further ASTD research calls out how little is invested in developing informal learning programs.

To ground us around a common definition for informal learning and how it applies specifically to sales enablement and improved sales effectiveness, this is the knowledge necessary for sales professionals to learn on the job.  It is not learning acquired through the training classroom or by the use of courseware but learning by doing.

There were great discussions around this topic.  The learning professionals wanted to know how to tap into the collective experiences of successful outcomes in the field and share the best practices through the use of informal learning.  They also discussed methods for capturing these great lessons from the field in a manner that could be leveraged across a broader workforce.

These questions were contrasted by the sales management representatives, as they discussed the burden informal learning places on their day to day workload.   In order for their staff to learn through trial by fire, the sales manager plays a significant role in mentoring and coaching the sales rep to achieve the best outcome.  Questions sales reps often have that sales managers mentor them on include, “How to positioning against the competition?”  or “What client can I use as a reference for my prospect?”  Of course there are many other examples but the point remains, sales management is burdened with addressing redundant questions for their sales staff every day.   The sales managers spoke a different language than their learning professional peers but they both shared a common goal in finding a more meaningful way to harness informal learning than the typical water cooler conversations, phone call inquiries and email requests.

The breakthrough moment for the group was when Dirk Tussing asked “What tangible outcomes can an organization realize when it harnesses informal learning?”  One example was presented where a sales organization was able to cut ramp time in half for their new sales hires.  This translates to rookie sales reps generating revenue quicker and reaching sales targets sooner.  In one case, the reduced ramp time generated $50 million of incremental sales.  I presented a case study of Heartland Payment Systems that provided similar examples.  Another case study example showed how Premier, Inc. (network of hospitals, clinics and acute care centers) shared procedural best practices and lessons learned - This level of collaboration and know-how has helped Premier lower the cost of healthcare delivery across its network group.

The lessons from these interactive sessions were two-fold.  Sales management and learning leaders must build alignment in their efforts to address informal learning.  And also, technology solutions can play a key role in facilitating informal learning within Sales Departments and also across the enterprise.  There are still significant opportunities for the learning and sales functions to build greater alignment in a manner that is meaningful and very real to the overall performance of any business - The example of generating $50 million of incremental sales by cutting ramp time of new hires in half is a perfect illustration.  But to do so, the learning function must work with the front line of the business to bring learning beyond the classroom or eLearning courseware.

There are now technologies available that provide the collaborative tools to better enable the informal learning capture and dissemination of knowledge and information.  Even better, these new tools go beyond the limits of wikis and public-facing social Web 2.0 tools.  They take into account the needs of an organization and their requirements for security, quality of knowledge, and compliance and control.

Please share your views, challenges and success stories of addressing informal learning in your organization.  We are interested to hear how you are addressing this challenge.  Each blog poster will receive a free copy of StreetSmarts® report around informal learning that is planned for release next week.

What Every Organization Ought to Know About the Millenials and Knowledge Management

Monday, July 27th, 2009 by davebatt

I read an interesting article by Steve King on the New Knowledge Artisans.  The article succinctly summarizes some of the changes happening in the workforce today, driven by the growth of the Millenials or GenY and their need for knowledge collaboration in the workforce. This is particularly relevant considering the baby boomer generation are approaching retirement age and taking with them key knowledge, expertise and insights gleaned through years of experience. What does that say to organizations that are looking to build true learning organizations and believe that the true area of sustainable advantage lies in the knowledge that lies within an organization? If that knowledge is walking out the door as a generation of the workforce approaches retirement, how best do organizations retain this key knowledge and impart that in a manner that is going to prove meaningful to the next workplace entrants?Millenials

The Milennials are more demanding, more collaborative and have grown up accustomed to the use of technology. They actually have access to more sophisticated technology outside their working environment and feel limited and even restricted with anything less. So the question remains, how do organizations best appeal and engage with the new young talent entering the workforce and how do they appropriately manage and map to their motivations and provide them the best tools to learn and collaborate on the job to retain and grow intellectual capital?

Facebook is a really interesting public facing social tool, not only because it has amassed a large follower audience but how it has appealed to this new demanding generation. What makes Facebook so interesting is how it draws people in to constantly throughout the day. It’s a platform that draws people in and through the power of collaboration and community and is like a drug to many. Now imagine the typical organization software application and the usual challenges with growing user adoption. Many a software company could well learn from the Facebook example when it comes to user adoption, use and reuse. So what’s the real point of this? Learning within organizations is in a state of flux. This is being driven by an entirely new demographic who have different needs. To thrive in this new world order, organizations need to rethink how they appeal to this new talent and how they capture and disseminate knowledge in a manner that appeals to the collaborative thirst of these NetGens. But they need to do this in a manner that appeals to the organizational requirements as well. Organizations have to strike the right balance between nurturing the free form collaborative nature of networks yet continue to maintain the quality and accuracy of knowledge that is created and disseminated. It’s a fine line and not all social web 2.0 tools are applicable to an enterprise as a result. At the end of the day, enterprises are toiled with seeking ways to drive higher organization performance through their talent, motivating and nurturing them to improve themselves and their organizations as well and develop the till now the informal learning that has been so challenging to address, until now.