how to selec a sales force that sells

8/8/2019 How to Selec a Sales Force That Sells

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R E V I S E D , 4 t h E D I T I O N

HOW TOSELECT ASALES FORCE

THAT SELLSOur experience has taught us a great deal about: Page

What Makes a Great Sales Force ............................................................................... 1

How to Match the Right Type of Salesperson to Your Customers ............................. 3

How to Understand the Four Types of Salespeople ................................................... 5

How to Specialize Your Sales Force to Meet Company Objectives .......................... 7

How to Recruit the Four Types of Salespeople .......................................................... 9

How to Interview Sales Candidates to Get the Real Picture .................................... 11

How to Get Valid Information in a Background Check ........................................... 13

How to Budget Sales Employee Selection ............................................................... 14

How to Get Predictive Results Using Selection Assessment ................................... 15

How to Avoid the 10 Most Common Incentive Mistakes ........................................ 17State-of-the-Art Selection Systems ............................................................................ 19

Some Typical Chally Clients and Their Industries .................................................. 21

CHALLY


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Sales Performance SolutionsThe H.R. Chally Group was founded in 1973 through a grantfrom the U.S. Justice Department to develop a selectionassessment to measure the skills and motivation of lawenforcement candidates and predict who would be mostsuccessful. Our measurements had to be accurate,statistically valid predictors, and legally defensible.

Challys success led us to our next goal (also in 1973) toadapt our assessment process to the study of salespeople,managers, and other positions in business. Since that time,we have evaluated over 200,000 salespeople. Our currentPerformance Database also includes over 1,500 sales forcevalidation studies and over 70,000 extensive interviews of

our corporate clients customers.

Today, Chally is an internationally recognized technologyleader in assessing and predicting future performance forsales, service and management positions, evaluatingdevelopmental needs, sales force benchmarking , andcustomer and market audits.

Our mission is to assist clients to increase sales andmanagement productivity and profitability. We do this byhelping them to systematically identify sales, service, andmanagement personnel to match top performancerequirements. We also help to identify the marketing andservice strategies and tactics that will produce the addedvalue needs that predict sales growth, market share,customer satisfaction , and prospect conversion . Typically,we work with a client to:

Identify gaps against world class benchmark standards Measure and track potential improvements Quantitatively establish predictive profiles, skill levels,

and work habits of exceptional performers Develop effective systems for candidate selection and

staff development Establish measurements to monitor performance against

world class standards

CASE STUDIES

CLIENT CHALLENGE: SOLUTION: RESULTS:

Increase Sales Volume for aMajor Auto Manufacturer

A Customer Audit (based on 2000interviews); Sales Force Survey andhiring Validation produced aSelection Assessment and trainingcriteria

New hires averaged an annualsales increase of $1,781,000(35%)

High Sales Force Turnoverat a National IndustrialDistributor

Multiple Hiring Validations identifiedtwo different Assessment skill sets fordifferent markets eliminating fatalmismatches

50%+ Decrease in Sales ForceTurnover

Ineffective Market Strategyat a Major AluminumProducer

Through Customer Audits andSelection Assessment HiringValidation , identified separate corecompetencies for operations versussalespeople

50% Annual Sales Increase


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What Makes a Great Sales ForceEvery three years, Chally completes the World Class Sales Benchmarking study. These 18

month projects are sponsored by major Challycustomers including: ACDelco, Johnson &Johnson, The Mead Corporation, Pepsi Cola,Reynolds & Reynolds, Steelcase, UPS, andUnisource.

The results of this research are organized into acomprehensive manual, the World Class Sales

Excellence Report , and a half day seminar TheBenchmarks of World Class Sales Forces.

What Customers Want from SellersOur initial tri-annual interviews with over 1,000 corporatecustomers established three major needs customers expectedvendors and sellers to address, even though customers werenot confident they could get them.1. Customers want to narrow their own focus to the few

things they do best, and outsource the rest without theadded overhead costs of supervising their suppliers;

2. Customers want sellers to know their business wellenough to create products and services they wouldnt havebeen able to design or create themselves; and,

3. Customers want proof hard evidence that theirsuppliers have added value in excess of price.

Critical Salesperson SkillsTo evaluate a vendor or sellers potential to fulfill these threeneeds, these corporate customers specifically judged salesforces on combinations of only seven factors. These seven,listed in descending order of the frequency they were cited,are:1. Personally managing our satisfaction2. Understanding our business3. Recommending products and applications expertly4. Providing technical and training support5. Acting as a customer advocate6. Solving logistical and political problems7. Finding innovative solutions to our needs

Customers believe sales forces that excel at these sevenfactors will best fill their three basic business needs.

By benchmarking the top 10 of these sales forces, weidentified the critical success factors for World Class sales,and the standards of sales excellence. Benchmarking

pinpoints how world class sales forces manage customersatisfaction, understand their customers businesses and

deliver the other benefits their customers want.The Basics of World Class SalesSimply stated, the overriding philosophy of these best salesforces is: Be the outsource of preference.

The basic priority, therefore, is to add value to thecustomers business.1. For Boise Cascade this means were not an office

products company or a supplies company, we are yourpurchasing department.

2. For AT&T ... we are not telephones; we arecommunications.

3. For IBM ... we are not computers, or even information;we are decision analysis or problem-solving.

Adding value requires at least three critical elements:1. Measure (identify) the business needs of customers;2. Develop the added services to wrap around our products

which will guarantee customers business improvement;and

3. Measure again for both continuous improvementrefinements as well as proof for customers that theirbusiness was improved.

Changes at all the world class sales forces are still in process.Customers did not credit these top sales forces withperfection, just being closer to it than their competitors.

In fact, most of the top-ranked sellers were surprised to benamed. While customers see how far these top-rated sellershave come, the sellers themselves remain focused on howfar they still have to go.

New Requirements, New CultureTo be the outsource of choice forces a seller to refocus thecorporate culture. Creative engineers or other technical

experts who invent new products are not enough to sustain acompetitive advantage. Too many new products do not matchcustomers priorities or are too difficult to understand oruse; sometimes they are simply not needed.

The focus must change from product to benefit or businessresult . Grandiose products and services with more capacity,features, or options are often just seen as overpriced.Additionally, products and services must be simple to useand manage, either in their own right or because the sellermanages the complexity as part of the sale.

SALES FORCE BENCHMARKING

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The focus must also change from price and delivery toutility and ease of use, not only of the product but also indoing business with the seller. The outsource of choice willtake responsibility for managing the relationship or, assometimes defined, the partnership between seller andcustomer. This will require the role of the salesperson and,consequently, the role of the sales managers who train anddevelop the salespeople, to change.

Top sellers are changing from peddlers to relationshipmanagers, from order-takers to consultants. In some cases,order taking, service, technical support, and product expertiseare not even directly provided by the salesperson.

While the requirements are changing and many of thesolutions are new, the approach top sellers use is remarkablyconsistent, either intentionally by benchmarking others,through partnerships, or coincidentally by just attacking their

own needs. Through a total quality styled approach, theyare investigating and analyzing their customers needs andproblems. They are reorganizing their processes, developingnew skills, creating new measures and new standards and,most of all, committing to the need for continuousimprovement.

The most basic tenets of total quality management requirethe biggest investments to be in people and measurement.In fact, the hallmark of how the world class selling companiescan be recognized is in their approach to their people andtheir approach to information and its management.

The Eight Benchmark Processes for World ClassSales ExcellenceWhile, in summary, people and information are the majorfocus, we found eight distinct process areas that could bedescribed as critical benchmarks. All of the top-ranked salescompanies have rigorously addressed at least six of the eight.The process areas they have not focused on were either lesscritical, due to the nature of their product or service, or,more likely, because they had first focused on the most criticalprocesses, and they just havent gotten to the others ... yet!

More importantly, because of the diversity of products,channels of distribution, and needs of customers across thebest-in-class sales companies, an organized review of whyand how they approached each area establishes a valuabledecision analysis guideline beyond the solutions establishedby any one sales force.

The eight sales benchmark process areas are:1. Establishing a Customer (Sales) Driven Culture2. Market Segmentation

3. Recruiting and Selecting Salespeople4. Training (and Development)5. Compensation (and Incentive)6. Sales Service and Support Systems7. Customer Feedback/Measuring Customer Satisfaction8. Information Technology

The priority and type of solution for each of these eightprocess areas varies according to the specifics of the productand market. For example, sales force segmentation orspecialization is a priority when different customers orcustomer groups require specialized added values that arenot appropriate for other customer groups. The moredramatically added value needs vary, the more critical salesforce specialization becomes.

More importantly, and a greater source of error in salesmanagement, is the choice of options to approach the need.

For example, a seller who identifies a need to segment marketsstill must decide how to segment: by customer industry, bycustomer size, by geography, or perhaps by product or serviceoffered. The difficult challenges include: Can we affordmore than one salesperson in the same geographic territory?Will customers accept multiple contact from the same vendor,each representing a different product or service? Can asalesperson afford to specialize and still cover all the accountsassigned? In how many different areas can a salespersonbecome expert?

By analyzing the very different options that the best sales

companies selected, and the rationale and effectiveness of the solution, we can establish a more comprehensive set of criteria that essentially documents the technology of marketsegmentation and sales force specialization. The same istrue for each of the other seven benchmark areas. Now,rather than intuit or deduce a solution based on previousand perhaps inappropriate experience, informed sales andcorporate executives can apply established guidelines thathelp analyze and prioritize the options evaluated. The bestsales practice companies in aggregate provide a manual of best practice options and appropriate application criteria.

SALES FORCE BENCHMARKING

PO Box 20490 Dayton, OH 45420-0490Telephone: 937 259-1200

www.chally.com

For more information contact:

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How to Match the Right Type of Salespersonto Your Customers *

MATCHING

The most successful sales managers recognizethat all good salespeople must have certain vitalskills and motivations. The degree and typerequired, however, will vary according to whatcustomers need in order to use the product orservice. The best strategy is achieved bymatching salesperson skills, focus, andmotivation to best serve these needs.

Market and customer analysis by The H.R.Chally Group has identified four distinctlydifferent types of customers. They, in turn,respond most positively to four different typesof salespeople.

Understanding Market (Purchaser) TypesTruly new products are typically purchased either bytechnical experts (who must buy new technology to remainexpert) or (more frequently) by visionary gateswingerswho have never used that productfor example, the state-of-the-art dermatologist who buys a new style laser for removingskin blemishes but hires an expert to operate the equipment.Even so, most brand-new products must seem exciting yetbe simple enough to understand the benefit. The gateswinger,then, doesnt want 20 different features from which to choose.

The new system buyer is an inexperienced but real user.This could include a financial services buyer who must selectasset managers. It could also be a computer system user.Once this person becomes knowledgeable on usage, he orshe becomes an experienced and more controlling user of the established system.

Commodities buyers have become so totally experienced witha product or service that the purchase and usage arecompletely standardized and often delegated as a routinefunction ... when was the last time you asked how to use anelectric pencil sharpener?

Understanding the Basics of Customer NeedsCustomer need is largely driven by two factors:1. Complexity of using a product/service2. Experience or expertise in its use or application

In Chally research, we have found that intuitive gateswingersneed an emotional appeal stimulated by closing salespeoplein order to buy.

Inexperienced but real users have both substantial technicaland application support needs and purchase and delivery

needs that must be met by a consultive sales approach inorder to use their system.

Experienced and demanding users no longer have hightechnical and application support needs. However, theycontinue to have pressing purchase and delivery needs thatinclude a major personal component with a relationshipsalesperson to help in the ordering process.

Typically, only two needs predict commodity buying behaviorfrom display salespeople: price and convenience.

MARKET (PURCHASER) TYPES

NEW SYSTEM BUYERS

INEXPERIENCED ANDREAL USERS (INSELECT USAGE)

ESTABLISHEDSYSTEM BUYERS

EXPERIENCED ANDREAL USERS (INBROAD USAGE)

NEW PRODUCTBUYERS

EXPERTS OR INTUITIVEGATESWINGERS

COMMODITYBUYERS

EXPERIENCED USERSWITH STANDARDIZED

PRODUCT/SERVICE

--- The Product Market Lifecycle

*Based on book by: Howard P. Stevens and Jeff Cox, TheQuadrant Solution , American Management Association, 1991

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MATCHING

CUSTOMER NEEDSHI

TOUCHSALE

CUSTOMERCOMPLEXITY

IN USING (BUYING)

NEEDTECHNICAL &APPLICATION

ANDPURCHASE &

DELIVERYSUPPORT FROM A

CONSULTIVESALES APPROACH

NEEDPURCHASE &

DELIVERYSUPPORT FROM A

RELATIONSHIPSALES APPROACH

YOUR PRODUCTOR SERVICE

LO

NEED ANEMOTIONAL

APPEALFROM A

CLOSINGSALES APPROACH

NEEDPRICE

&CONVENIENCE

FROM ADISPLAY

(COMMODITY)SALES APPROACH

TOUCHSALE

HI CUSTOMER EXPERTISE LOTECH & EXPERIENCE WITH TECHSALE YOUR PRODUCT OR SERVICE SALE

Determining Customer NeedsActually identifying and analyzing customer needs, thosethat influence buying behavior and those that predict buyingbehavior, is an emerging research science being pioneeredby The H.R. Chally Group.

It is a sophisticated process involving scoreable executiveinterviews that lead to quantifying qualitative, open-endeddata. However, we have established key questions that canassist you in determining your customers basic needs. Theseare below.

Questions indicating Technical and ApplicationsNeeds:1. Customers do not have an established system or

procedure to evaluate and purchase your product orservice?

2. Customers are biased toward buying from a prestigiousname partly because they lack the internal expertise toevaluate or critique your product or service?

3. Customers recognize that the quality of technicalassistance and follow-up is more important than price?

4. Your product or service is not so built into yourcustomers way of doing business that it is essential tothem?

5. You are perceived as one of only one or two sourceswhere customers could obtain product/service?

6. Your product or service must be custom ordered?

7. Reliability and credibility (often an image) are moreimportant than price?

8. Follow-up orders will also require technical help to planor design the order?

9. Price is not a major issue as long as the benefit seems

worthwhile?If you answered Yes to five or more questions, your typicalcustomer is in one of the two left quadrants. If four or less,your typical customer is in one of the two right quadrants.

Questions indicating Purchase and Delivery Needs:1. Your customers see less (or little) technical or qualitative

difference between your product/service and competitors,and therefore select on service price?

2. Your customers are more bothered by late delivery orpoor follow-up than engineering issues or new productdevelopment?

3. Your customers expect regular contact, not just whenyou want to take their order?

4. Your products/services would be difficult to buy from acatalog without someone to talk to?

5. Customers tend to stay loyal to vendors they know andtrust?

6. Customers often develop personal relationships withsalespeople (possibly even following them if they switchto work with another vendor)?

7. It takes customers a fairly long time to really trust anddepend on a new vendor?

8. Usually your customers will not just call in an orderwithout at least occasional face-to-face contact?

If you answered Yes to five or more questions, your typicalcustomer is in one of the top two quadrants. If four or less,your typical customer is in one of the two bottom quadrants.

Matching the Right SalespersonMatching the right salesperson to customer needs, then, requiresan understanding of the four types of salespeople:

CONSULTIVESALES

RELATIONSHIPSALES

CLOSINGSALES

DISPLAYSALES

... real-life business ... drives home an essential of sales forceorganization, but more than thatit links the sales force withthe buying habits of the customer .

William S. Arnett, Vice-President for Marketing andOperations, Retired, United States Cellular Corp.

The Quadrant Solution provides a powerful and practicalmodel for dealing with real time marketing issues. We haveapplied these principles with great success.

Rick Peters, Chairman and CEO, Retired, Saatchi and SaatchiDirect

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FOUR SALES TYPES

How to Understand the Four Typesof Salespeople

There is No Universal Salesperson!!!

Every pro baseball player must throw, catch,and hit. Yet, what it takes to be a great hitter ora 20-game-winning pitcher is dramaticallydifferent. So, too, in sales ... all salespeople musttalk to customers and take orders. However,The H.R. Chally Group has established fourdifferent sales roles and superstar skills which

are distinctly different and measurable.

The types are: the super Closer, the IBMerConsultive, the good ol boy Relationship, andthe friendly order-taker Display.

1. ClosingAll salespeople must use closing skills at some point duringthe sales process. Here, we are talking about a personalitytype. This type starts with nothing and, therefore, mustaggressively initiate customer contact. In most cases, oneor two contacts are made with the prospect. The risk of failure is high because there is little time to interact with thecustomer. Therefore, this type must not have a high fear of personal rejection. This sales environment requires thatsalespeople quickly establish a prospects emotional desireand need for their product. Demonstration sales, new high-tech equipment, trade show promotions, pyramid sales andhigh-ticket executive vanity items (like corporate jets) areexamples.

2. Consultive

Consultive sales situations usually are reserved for biggerticket items, high technology items, or intangible intelligentservices; for example, telephone systems, computer systems,consulting services, law services, etc. Here, both patient,interpersonal contact and aggressiveness are needed. Forgetthe personal touch of the relationship or fail to persist for aclose, and the sale is lost. These sellers perform extremelywell with prestige-image products/services.

This type of sales environment requires consultation withcustomers to meet their specific needs. Consultivesalespeople are usually career oriented. Also, they are muchmore academically inclined than the other sales types.Consultive sales professionals are not daring risk-takers. Thebest ones do take risks, but only after careful thought andcalculation. They pay a high level of attention to detail andhave an above-average level of aggressiveness. The supersellers in this sales environment are able to handle personalrejection and the fear of failure extremely well. They exhibitself-confidence, patience, and the ability to quickly developinterpersonal relationships with all business prospects.

3. RelationshipRelationship salespeople like independence. They like thefreedom of sales, the feeling that they are their own boss.They exercise discipline and take responsibility for theiractions. Relationship salespeople become resistant if management tries to control their actions too much, or if management tries to change the rules.

Relationship sales requires great patience over a long periodto finally cement a customer. This practically eliminates

ones concern with failure on a day-to-day basis because thesale is heavily dependent on the relationship between thesalesperson and customer. A good relationship willgenerate at least some business eventually. Many industrialselling situations and both territory and route sales typifyrelationship sales. Relationship selling is characterized bythe ability of salespeople who move to a competitor to takebusiness with them. Local stock brokers, industrial suppliers,distributors, etc., typify Relationship sellers.

4. DisplayDisplay sales requires little personal involvement, relativelylittle risk of personal rejection, and a compensation or rewardsystem that does not depend on actually completing the sale.Display salespeople (retail clerks, for example) get paid evenif the customer fails to buy. Many retail salespeople fit thiscategory, as do bank tellers and other salespeople who areon total salary and receive little or no commission. Sometelemarketing order takers (not the boiler room or high-pressure telephone sales) also sell from a catalog and fallinto the Display sales category.

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FOUR SALES TYPES

Success Rates Will DifferUsing selection assessments to identify the different typesand then tracking performance, Chally has determined thatsales type success rates vary according to markets andcustomer needs.

CUSTOMER NEEDSSALESPERSON

TYPEClosing Consultive Relationship Display

Closing 85%* 40% 25% 20%Consultive 50% 82%* 46% 30%Relationship 15% 55% 89%* 35%Display 10% .9% 18% 70%*

*Maximum Match

Personal and Biographical Characteristics of the Four Basic Sales TypesClosing Consultive Relationship Display1. Extroverted2. Energetic3. Optimistic4. Strong work ethic5. Competitive

6. Success image but lesslikely to save frugally7. Positive mental attitude8. Highly self-confident

1. Career-oriented (especiallyinto management)

2. Status and image conscious3. More academic4. Self-confident

5. Independent and self-developmental6. Team-oriented7. Not impulsive or extreme

risk-taking

1. Strong work ethic (feel guiltyif doing nothing)

2. Self-sufficient3. Independent (don't like to be

bossed)

4. Cooperative5. Patient, traditional,conservative, right-leaning

6. Strong and rigid valuesystem (school of hardknocks)

1. Low career ambition2. Easily bored (need to have

something to do)3. Enjoy people4. High physical energy level

5. Impulsive6. Work tends to revolvearound home and othergoals

Sales Type SummaryType Style Primary Skills Personality StrengthsClosing Theatrical & Confident Build emotion, enthusiasm

Give permission to buy Create urgency

Handle high failure rate

Handle personal rejection

Consultive Expert & Competent Demonstrate technicalcompetency

Professional credibility Systematic & organized Answer objections

Handle confrontationand negotiate

Handle personal rejection

Relationship Dependable & Loyal toCustomer

Demonstrate product &customer knowledge

Customer advocacy Time & territory

management

Patience Persistence

Display (Commodity) Responsive & Service-Oriented Congeniality Demonstrate product

knowledge Energy & stamina

Handle boredom Handle social fatigue

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How to Specialize Your Sales Forceto Meet Company Objectives

Companies emphasizing growth and specificbusiness initiatives often find it appropriate tosegment sales activities beyond recognizing thefour broad segments of customers. ExtensiveChally research of more specialized sales forceshas identified 13 specific sets of sales and serviceskills that are required to succeed in specializedsales roles. The sales specialist map belowdemonstrates a decision tree that allows a sales

executive to identify the one unique profile bestsuited to accomplish a specialized sales initiative.A series of no more than five questions will leadto the best match.

Q. 1: Is this position field (outside) sales or inside (tele)sales?

Q. 2: Is the position proactive (outbound tele or direct salescontact) or reactive (inbound tele or indirect field salesthrough a distributor)?

Q. 3: Is the position primarily responsible for a full line ora specialized product or service ?

Q. 4: Is the sales effort account based (national or majoraccounts) or geographically based (territory sales)?

Q. 5: Is the salespersons responsibility primarily to acquirenew accounts (hunter) or maintain and grow existingaccounts (farmer)?

SPECIALIZED SALES POSITIONS

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SPECIALIZED SALES POSITIONS

Roles and Requirements of Specialized SalesPositionsINDIRECT FIELD SALES (via distributors orresellers): Acquires skills at training customers (on salesand programs), making joint sales calls, sales motivational

and presentation techniques, product knowledge, and theability to maintain repeat sales

NATIONAL ACCOUNTS: Strategic relationships arebuilt with major customers through initiative, a willingnessto work long hours, proactive assistance and support, awillingness to further develop technical competence, and anemphasis on sharing information that is pertinent and willhave lasting educational impact

MAJOR ACCOUNTS (New Business Development/ Hunter): Demands individuals who can develop leads, findopportunities, penetrate prospects and customers, and bewilling to put in long hours as well as problem solve andclose

MAJOR ACCOUNTS (Account Maintenance/Farmer):Requires excellent customer relations skills focused onworking internal systems on the customers behalf, andeffectiveness at explaining and clarifying issues to thecustomer; this is driven by the desire to increase businessand the ability to work long hours when necessary toaccomplish that

TERRITORY PRODUCT SALES (Consultive): Focuses

on establishing a credible image, developing new businessthrough effective qualifying and presentation skills drivenby the motivation to be an effective consultant

TERRITORY PRODUCT SALES (Relationship): Callsfor a disciplined and systematic approach to goal achievementand a focused response to customer needs in a servicecapacity, as well as effective communication skills and theability to work a sales plan in account penetration; removesobjections and gives permission to buy

TERRITORY SYSTEM SALES (Consultive): Demandsthe skill to develop business through effective lead generation,qualification of profitable prospects, and tailoredpresentations; willing to work long hours to meet objectives,sets ambitious goals and achieves them through effectiveselling, and understands sales strategies and tactics

TERRITORY SYSTEM SALES (Relationship): Adaptsimage to accommodate customers, gives personal attention,and takes hands-on responsibility for assuring continuedcustomer satisfaction; knowledgeable of sales strategies andpushes to set personal records in sales; comfortable with therecognition of a high-profile role

SYSTEM SALES SPECIALIST: Focuses on assumingthe leadership to learn customer needs and goals, stayscontinuously aware of the market and spends the long hoursit takes to influence and train others

PRODUCT/SERVICE SALES SPECIALIST:Customers look for individuals who provide reliableinformation, learn their business, know the market, andcommunicate effectively while remaining dedicated to theirown sales results

PRODUCT TRANSACTIONAL SALES: Demandsinitiative and perseverance to develop leads, qualify, and closeon an ongoing basis

OUTBOUND TELESALES: Necessitates enthusiasm forinitiating calls (the opposite of call reluctance), and

understanding the selling process; requires a disciplined andopportunistic approach, with the ability to qualify efficiently,respond to objections, and close

INBOUND TELEMARKETING: Requires an imageconscious vocal demeanor in a service oriented individualwho is interested in learning the customers needs, solvingproblems, and making the appropriate (and profitable)recommendations

HOW SPECIALIZED SALES POSITIONS FIT THE FOUR MARKETS

CLOSING CONSULTIVE RELATIONSHIP DISPLAY

(2) Pro/Re active Telesales Telemktg. (Customer Service)Direct Sales

Indirect Sales

(3) Product Offering Concept Sales System Sales Product & Service Product Only

(4) Customer Size National Accts. & Major Accts.Territory Accts.

(5) Growth Rate New Bus. Dev. (Hunter) Acct. Maint. (Farmer)

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How to Recruit the Four Types of SalespeopleUnderstanding what salespeople want from a jobis critical to successful recruiting. The three

most important attractions of a selling job andthe commitment to earn them are:

1. Independence requiring self-discipline2. Opportunity requiring risk3. Security requiring loyalty

However, the importance of these attractions isvery different with each of the four types of salespeople.

Recruiting Closing SalespeopleClosing salespeople are usually high energy, fast pacers, wholeave a sales job only because incentives or commissionsare capped, or because the company itself is in decline.

We suggest recruiting only experienced salespeople fromcompanies (competitors or not) who pay most or all of theircompensation on commission or bonus. Good closers usuallyhave to be found by personal contact. Very few successfulclosing salespeople are looking for a job. Risks dont botherthem if a great opportunity comes along. In fact, securityis almost irrelevant. But some degree of independence is

critical; they seldom work well as a part of a team.

Recruiting Consultive SalespeopleConsultive sellers also want opportunity and are willing toaccept both the risk of failure and the risk of rejectionin order to have a shot at that opportunity. Often the mostdesired opportunity is advancement into management.Security, however, is more important than independence;theyll be both loyal and team players if it advances theircareer.

Consultive sales jobs can draw directly from school graduatesif extensive classroom and on the job training andmentorships are provided. Individuals with less than topgrades are often the best candidates, since they studiedpractically (i.e., enough to reach a goalgraduation). Theyspent a good deal of their time learning social skills (excellentfor selling) at the expense of academic pursuits (not alwaysso excellent for selling). They are usually very image andprestige conscious (though often reticent to admit it) andseek an employer that has a prestigious professional image,like the IBM look.

Recruiting Relationship SalespeopleRelationship sellers want independence the freedom to be

their own boss. They will exercise discipline and takeresponsibility for themselves. They become resistant if management gets too much in their way, or if managementtries to change the rules and control their selling environmenttoo much. Theyll be loyal if not manipulated unfairly, butwill be team players only in verbal confirmation (after whichtheyll do it their own way, anyway).

Relationship salespeople are basically small entrepreneurs.Most of them get into sales accidentally. They could just aseasily have started in some other business. A key is locatingpeople who started, or tried to start, their own business, or

who worked in situations where there was relative autonomy.They typically can be found with competitors, distributors,and working for customers. They are usually politicallyright or conservative in orientation and participate in orare interested in sports because these are competitiveactivities.

Recruiting Display SalespeopleDisplay salespeople and order takers want security androutine and are willing to give loyalty in return. Many retailsalespeople are used as clerks, not offered security, and thusarent very loyal. Hobbyists, however, who become retailspecialists in their hobby area typically develop a high degreeof loyalty to both their sales area and products, as well as totheir customers (e.g., fashion buffs who sell clothes orelectronic enthusiasts who work in electronics outlets).

To understand effective display salespeople better, we needto recognize the combination of some ambition to keepbusy and be involved with the work ethic, along with astronger interest in non-work activity, such as maintaininghome obligations or other non-career-related aspects of life.These people can have an interest in success, but they dontwant to narrowly direct their attention toward a career.

Security-oriented people usually select jobs that require littledecision making, are convenient to home, and are wellstructured. They often have strong commitments to hobbiesand moderate to high community interests. Recruiters canfind them in non-sales jobs like clerical and office work,paraprofessional health service jobs, and low-skill service

jobs. They can be reached by ads in the home section of thenewspaper, through community affairs contacts, etc.

RECRUITMENT

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The Tough Recruiting Questions: How Much toSpend? How Much Experience? When toRecruit From Competitors?Spend as much as you would expect it would cost to coverthe actual replacement cost of a top salesperson leaving.That figure includes the cost of lost sales, start-up time, etc.

If you have the time to develop a good recruiting program,you will be able to focus in and increase your recruitsaverage level of performance dramatically. If you dont havethe time, consider using good recruiters and give them aclear picture of the kind of salesperson you need.

Experience is critical in relationship and consultive sales. Itusually takes at least three years for a motivated recruit tobecome the best. If you can afford that development time,you may be able to pick candidates fresh out of school. If you cant, choose experienced people.

Consultive selling is both the hardest and easiest to do. It isdifficult because it depends upon a technical base whichcomes naturally only to academic people, and easy becauseit relies on a well-developed selling system (advertisingsupport material, etc.) that has been carefully planned andimplemented. In general, you will find it easier to train thetechnical skills than to train the selling skills, but the

difference is slight. If you dont have extensive classroomand on-the-job sales mentor training programs available, pick an experienced pro.

Recruiting from competitors offers a two-edged sword. Onthe one hand, such candidates may already have many of thenecessary skills. On the other hand, if salespeople will leavea competitor, they may well leave you also. The key issue iswhose fault was the transition. Strong superstars wholeft a company because their careers or commissions werecapped are a good source. Otherwise, be wary of competitorswhose poor-to-average salespeople may simply be lookingfor an opportunity that is going to be easier for them, ratherthan an opportunity that is going to have greater potential.

Also, be aware that many competitors jobs vary just enoughfrom your own that negative transfer of skills becomes a

problem (e.g., people who had their leads generated for themnow have difficulty generating leads of their own).

Successful Recruiting: Three StepsGood recruiting isnt a matter of chance in the long run. Bycarefully (1) analyzing what you need, (2) identifying wholikes to do that well, and (3) offering them the reward theyreally want, youll set a company image that will recruitfor you! Now you can pick from some of the best recruitsavailable... and they contact you!

RECRUITMENT

Benefits That Attract the Four Basic Sales TypesConsultive1. Opportunities for management2. Availability of development opportunities (class-

room as well as OJT)3. Sophistication of product or service4. Prestige or image of the company in the eyes of

the general public

Relationship1. Quality of product or service2. Image of the company in the customers eyes3. Sales support (not sales management)4. Customer service support5. Control of territory and selling method

Closing1. Size of commissions2. Emotional appeal of product or service3. Glamour of producthigh status is best4. Sales training (OJT, not classroom)

Display1. Flexibility of hours2. Physical facilities3. Image of the company or product4. Fringe benefits5. Holiday and vacation accrued6. Perqs (e.g., merchandise discounts)

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The H.R. Chally Group realizes that moreemphasis is put on the interview than any otherselection aspect. Here are key factors thatexperience has proven to be valuable. Wevealso included a short, practical interviewexample to assist in interview design.

1. Planning InterviewsWhile interviewing may be the most common of selectiontechniques, it is effective only if it focuses on factors that

are truly observable. The format should be structured andapplied consistently across all candidates. An interview:

Can: offer an avenue to explain unclear background data provide an opportunity to evaluate presentation skills,

poise, appearance, and the ability to think on ones feet furnish an opportunity to check stress tolerance, planning,

and some learning ability

Cant: verify honesty or integrity

attempt to separate between real motivation and thepresent need for a job

provide totally objective and valid proof of non-bias forlegal purposes (in most cases)

2. Conducting InterviewsDetermine the job-relevant characteristics and skillsnecessary to do the job successfully, and define the purposeof a specific, upcoming interview. This will depend on wherethe interview is positioned in the selection process. Earlierinterviews typically screen people out while later interviewsfocus on confirming a positive impression which could leadto an offer.

Prepare the questions to probe the candidate and determinethe match between the person and the job.

Challys assessment quite often highlights candidatetraits and characteristics that can be probed in more detailduring subsequent interviews.

T.J. Weisenbach, Vice-President/Tri-State Group, xpedx

How to Interview Sales Candidates toGet the Real Picture

Start the interview by greeting the candidate in a professionalmanner, establishing rapport, and stating the objective forthis specific interview.

Allot time to discuss each key area you need to talk aboutbefore you discuss the job requirements and your company.The amount of effort you spend on selling the job and thecompany should be determined by how closely the applicantappears to match your requirements.

Finally, ask the applicant if he or she has any questions andrespond accordingly. Finish by telling the candidate the next

steps and by reviewing what to expect.

3. Getting The Real PicturePut the Candidate at EaseThis is often called a permissive environment. By helpingthe person to feel free to talk, you create the opportunity forthe applicant to provide more candid responses.

Listen - Dont Give Away the ShowThe key point of a selection interview is to gather information,not to sell. Even naive and inexperienced candidates canfollow interview clues projected by a talkative interviewer,allowing them to package their answers. Practice the 80/20Rule: listen to the applicant 80% of the interview; talk 20%.

Silence - Dont Be Afraid of ItTalking may be either communication or a defense. Toomuch of it on your part is an indication of your owndiscomfort with silence. Likewise, the need for an intervieweeto talk too much indicates discomfort with silence, acharacteristic that can hinder future success. No one canlisten while talking.

Offer Opportunity - Not Just SecurityGood employees tend to live on their own merits and expectto be rewarded as a result. They prefer more opportunitiesfor growth, not just long-term security. They may beunwilling to commit to guarantees for employment tenure.

Look for People Who Exhibit the Courage of TheirConvictionsPeople are better suited to persuade others to buy an idea orproduct in which they strongly believe. Even the best actor

INTERVIEWING

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A Sales ExampleAs we defined earlier, successful performance is supportedby a number of critical skills. Using a Cone Approach toevaluate customer relations skill could flow as follows:

1. General : Describe a long-standing customer relationshipyouve had.

2. Focus : What tactics have worked well to help maintainthe relationship? Look for:

a recognition of situations which may becomeproblems in the future

a focus on building goodwill pro-activity in asking the customer for ways to

improve not allowing previous problems to bias how customers

are treated now

3. Specific : On a scale of 1 to 10 (10 = high) how wouldyou rate your ability to nurture customer relationshipsand why? Look for:

willingness to listen to customers challenges and helpproblem-solve even in unrelated areas

helping customer stay abreast of changes that maybe of benefit

objective and cool-headed approach; not trying toimpress for its own sake

5. What To Avoid

In the United States, it is illegal for employers to disqualify job candidates based on a variety of personal characteristics.For example:

Questions dealing with arrests Questions asking about citizenship Questions concerning a spouse, the spouses

employment or salary, children and child carearrangements, dependents, or pregnancy

Overly specific questions not likely to affect jobperformance, such as health questions

Questions dealing with marital status Questions about type or condition of military

discharge Questions about whether applicants own or rent their

own homes

cannot feign a false belief in the product all the time. A lack of conviction leads to cynicism and, eventually, personalproblems for the candidate.

4. A Structured Interview Example

In terms of overall impact on the value of an interview,asking the right questions is second only to understandingwhat you are looking for in the first place.

For an in-depth interview, we at The H.R. Chally Groupadvocate a Cone Approach.

When using this approach, the interviewer starts by askingopen-ended questions which focus on a characteristic soughtin the candidate.

As you can see in the following diagram, coning questionsoften start with the broad inquiry, tell me about. Forexample, an opening question could be, Tell me aboutyourself. How would you describe yourself in a work situation? As the candidate answers, listen for areas of interest, and begin focusing downward in the cone. In ourexample, a more narrow, second-stage question might be,What have been some of your biggest mistakes?

This last question would lead you to the bottom of the conewith a very specific follow-up question intended to pinpointwhat was learned from key mistakes as in, What did youlearn from _____ (one specific mistake)? In this example,what you are looking for is a person who owns his or hermistakes and can persevere in spite of barriers. Havingdebriefed what went wrong in order to learn for the future,your candidate has taken responsibility for fixing thesituation. It is this final point in the inquiry where you canstart forming conclusions about the candidate, drawn fromspecific answers to your pinpoint questions.

The Cone Approach

GeneralOpen-EndedQuestions

Tell MeAbout...

It's interestingThat Your FirstJob...Tell Me More

Focus On AreasOf Interest

What did you learn from...?Specific Questions

INTERVIEWING

PO Box 20490 Dayton, OH 45420-0490Telephone: 937 259-1200

www.chally.com


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The H.R. Chally Groups experience shows thatmany employers never really check references,or else they do it hastily and it becomes littlemore than a rubber stamp. Here are 10techniques to make the background check auseful and productive tool in aiding the selectionprocess.

While it is often difficult to get references tocooperate because of cautious internal policiesor other legal concerns, many will commentverbally or off the record, but not in writing.

1. Be wary of first party referencesGood sales candidates are not going to name references whowill describe them negatively. Such first party referencesare not as valuable as the candidates past customers, whowill probably be more candid. These references can indicatehow loyal and satisfied the customers were with the candidate,which is a good indication of a prospective employees pastperformance.

2. Radial search referrals might be usedThe radial search for referrals is a method of referencechecking which requires getting additional references fromthe first party references. Such second generationreferences will not be carefully selected to present only apositive impression.

Remember: Ask references to help you out; dont askthem just to criticize. Ask them to highlight strengths andlet them build up the salesperson, and see how high they

are willing to go.

3. Use an interview background checkThis will show whether or not the salesperson is likely tochange in terms of work performance. In other words, whatdegree of reliability do the references suggest? What oddsdo they give for the persons future success?

CHECK BACKGROUNDS

How to Get Valid Informationin a Background Check

4. Use the critical incident techniqueDetermine the one trait or incident for which the candidateis best remembered. Could this be described as primarilygood, bad, or neutral? Does it indicate an individual who isresults oriented or service oriented?

5. Pick out problem areasDetermine the candidates customers who were the mostdifficult to handle, and those problems that were the toughestto solve. Even first party references may reveal difficultieswhich can be indicative of future sales performance. Findout if the candidate eventually overcame the difficulties.

6. Obtain a numerical scale reference ratingKeep in mind that 70 points on a 100 point scale is passingto most people; 50 points would be failing Reference ratingscales are often easier for people to deal with. For example,references generally do not like to say negative things, butthey may be willing to call a person an 85 instead of flatlysaying average.

7. Identify an individuals best job

Notice whether or not the reference needs to think excessivelyabout identifying an individuals best job. This may suggestthat the individuals behavior was consistent, but notnecessarily exceptional.

8. Check for idiosyncrasiesDid the candidate have any outstanding idiosyncrasies? If so, did they help or hinder job performance?

9. Check financial and personal habitsCredit difficulties and any indication of alcoholism orgambling are clearly negative indicators for future success.A strong interest in betting, even associated with a measureof success, is frequently associated with long-term problemsin sales.

10. Get customer opinionHas the candidate kept regular customers? How loyal arecustomers to the candidate personally as opposed to theproduct or the company? Why? Was the candidate seen asefficient, dependable, and genuinely interested in thecustomers?

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If each of us hires people who are smaller than we are, weshall become a company of dwarfs, but if each of us hirespeople who are bigger than we are, [we] will become acompany of giants.

David Ogilvy, 1983

6. Know the different costs of various selectiontechniques

Estimate the improvement that is possible with differentmethods of selection. In general, the cheaper selectiontechniques are less accurate and the more expensive onesare more accurate. Although this is not a hard and fast rule,

there are a few generalizations:1. The interview can be the cheapest method of selecting

salespeople, but it may also be the most subjective andthe least reliable. However, if highly paid executives areinvolved or there are transportation costs, it can be themost expensive method and still be of variable reliability.

2. The background check is slightly more expensive, interms of money and time, than a simple interview. If it ispursued thoroughly and effectively, it can produceindicators of real problems and strengths that might needto be considered before hiring.

3. Assessments can be the most objective and thoroughmethod of evaluating a candidate. It suggests a greatercommitment to finding good candidates, but it is moreexpensive than a phone interview or simple backgroundcheck.

4. Probation mistakenly can seem to be the least expensivetechnique used. A trial period is often the most expensivemethod for evaluating candidates; however, the costs areconcealed.

7. Determine what percentage of success inselection is desirable

Generally, to increase from 85 to 90 percent success willcost as much as an increase from 50 to 75 percent. If selectionis really important to a firm, and in most cases it should be,then higher selection accuracy rates are called for, and thecost is more than justified. If not, cruder and less effectiveselection techniques will be sufficient.

BUDGETING

How to Budget Sales Employee SelectionThe success of The H.R. Chally Group depends

on improving the bottom line for our clients. If we cant improve your profit and reduce yourcosts, were in trouble! Here are a few guidelinesthat we use to maintain our good reputation.

1. Estimate the cost of turnoverIf turnover rates are high, as may be the case with high schoolstudents in magazine sales, then turnover costs are probablylow. On such jobs, the training required is minimal, andhigh turnover may be a necessary way to keep enthusiasmfresh. If the cost of turnover is high, plan to spend more forselection to beat this high hidden cost.

2. Estimate the cost of the mistakeTry to determine how much income was lost in potentialsales from a poor salesperson during the unsuccessfulemployment tenure. Also, estimate the costs of replacingthe individual in terms of selection and training. Yourturnover calculation could include: recruitment cost,relocation cost, training cost, plus an estimate of lost salesper salesperson.

3. Determine your success rateIs your companys selection track record good 95% of thetime? That is, if 19 out of every 20 individuals exceed thesales quota after two years, fewer resources need to bebudgeted for selection in the future.

4. Estimate the possibility of improvementIf industry norms or personal intuition suggest that you couldbe doing better in selecting candidates, allow for greaterinvestment in selection.

5. Estimate the quality of the available recruits

There is obviously no point in seeking out potentialengineering salespeople in a group of high school dropouts.Even if one out of 100 might work out, the odds of successare so low that it simply is not worth trying. If all candidateshave excellent track records and are known to be realproducers, extensive selection procedures may not benecessary. However, such candidates are likely to besuccessful only if the new sales jobs are very similar to theirpast jobs.

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How to Get Predictive ResultsUsing Selection Assessment

A selection assessment that measures generalfactors for sales success can give an accuratedescription of an individuals personality andmotivations and how they might influenceperformance in a general selling environment.Many sales managers, however, require moretailored information and measurements.

Research has proven that the most valid factorswill differ according to product/service sold,types of customers, and market environments.A statistical validation process identifies whichfactors will predict sales success for a specificposition. Individuals measured against avalidated profile may be given an actualforecasted percentage (e.g., 60%, 75%, 93%)prediction for success.

What is a Validation Study?A validation study is an analysis of a statistically reliablelarge sample of salespeople ... which distinguishes topperformers from poor performers.

The sample is measured to identify behaviors, skills, andother vital factors that predict sales success. The sample isalso surveyed for descriptions of specific sales environments.This data is then correlated against specific performancecriteria such as actual sales results. This identifies thespecific assessment items/skills which predict sales successin your environment.

Screening out False Indicators or StereotypesCompanies often hire on the basis of characteristics that arebelieved important by interviewers, but which later proveto have little to do with actual on-the-job performance.

For example, a group of real estate firms had consciouslyselected individuals who were highly accurate and had a senseof detail. Those traits were considered to be very importantfor those who choose to go into real estate sales. However,they were not a determinant of success because highperformers and low performers shared those same traits

relatively equally. Only a validation study will screen outthis type of false indicator of success and focus on truepredictors.

Determining the Critical Number of SuccessFactorsData analysis may validate four to nine critical successfactors for sales performance in a particular position. Theprocess may reveal that strengths in all of these skills areimportant for success in sales in the company. However,top performers may have a different mix of those importantcharacteristics which account for their success. Thus, evenwithin the same company, two successful salespeople sellingthe same product may have different personal styles. Yetthey both will have the same overall average across the criticalskills.

Chally has found in some instances that two distinct typesof salespeople, a design and a service specialist, for example,were necessary to sell some products or services effectively.These different types can be identified with a validatedselection technique and combined to form complementaryteams.

The Chally assessment profile helps us determine whichcandidates are most qualified . It is an excellent tool to beused in the hiring process.

Mark Williams, Operations Manager, KCI, Crane ProServices

A Specific Success ProfileOnce the validation analysis is complete, a specific profilefor success within a specific position is established. Newsales candidates can be measured against this profile and an

accurate assessment made of their success potential.Each assessment will show the candidates profile againstthe validated success factors for that organization. It willpoint out strengths and limitations, and it will indicate wherecandidates need further development once hired.

More importantly, it gives the company a tangible measureof the candidates competency ... for example, this applicanthas skills better than 70% of our existing force. With thiskind of accuracy, a sales manager can build a sales forcewhich closely parallels his or her top performers.

VALIDATION

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VALIDATION

Validation Identifies Success Profiles that Differ by Company Specific Requirements, as in theExamples Below

Summary of Candidates Critical Skills PotentialAccording to Chally's analysis of ABC Company position information, we have agreed that the followingSales Skills are most critical to success in OUTBOUND TELEMARKETING :

Agreed-Upon Skills CandidateScore

PRESENTING BENEFITS 72%QUALIFYING 56%ANSWERING OBJECTIONS 77%DISCIPLINED AND OPPORTUNISTIC 37%PREFERENCE FOR VERBAL CUSTOMERCONTACT

58%

SALES UNDERSTANDING 97%

Summary of Candidates Critical Selling Skills Potential

According to Chally's analysis of ABC Company position information, we have agreed that the followingSales Skills are most critical to success in NEW BUSINESS DEVELOPMENT :


LEAD DEVELOPMENT 89%PROBLEM SOLVING 70%CUSTOMER/PROSPECT PENETRATION 59%WILLINGNESS TO WORK LONG HOURS 67%CLOSING SKILLS 74%OPPORTUNISTIC 32%

Summary of Candidates Critical Selling Skills Potential

According to Chally's analysis of ABC Company position information, we have agreed that the followingSales Skills are most critical to success in the NATIONAL ACCOUNTS MANAGER position:


INITIATIVE 36%WILLINGNESS TO WORK LONG HOURS 64%PROVIDES PROACTIVEASSISTANCE/SUPPORT

56%

WILLINGNESS TO DEVELOP TECHNICALCOMPETENCE

84%

TRAINING SKILLS 47%16


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MOTIVATING

How to Avoid the 10 MostCommon Incentive Mistakes

Incentive Programs can motivate your sales staff to new heights ... but make certain you sidestepcounterproductive and potentially disastrousmistakes.

Mistake 1: Trying to Keep Everybody HappyPoor performers neednt be and probably shouldnt be toocontent, unless they are trainees from whom you wouldntexpect great results. Incentive professionals advise thateveryone should win something in an incentive contest, and

thats fine. However, just make sure not to go overboard inrewarding poor performers.

The key is making job satisfaction a result of productivity.In a well-run incentive program, salesperson satisfactionimproves as a result of increased efforts and sales. Seldomdoes job satisfaction lead to increased performance.

Mistake 2: Failing to Separate Novices FromVeteransDont use the same contest guidelines for both trainees andexperienced salespeople. During training, a salesperson isstill learning how to produce. The points awarded in anincentive contest, then, should be tied to the quality orquantity of efforts. Award points for the number of callsmade, leads followed, or increase in product knowledge.Trainees generally dont produce impressive results. Anincentive contest that assumes they will can have a negativeeffect on trainees attitudes toward sales as a career.

Salesperson's Learning Curve

NEW

ACCEPTABLE LEVEL

EXPERIENCED

Mistake 3: Negative Reward on HighProductivityMany times, as salespeople produce more, the increasedperformance is believed to be a result of easier sales, ratherthan more effective selling skills. Some psychologicaltheorists believe that managers have a hard time believinganybody who reports to them is worth more than they are,and they have to cap a salespersons salary and incentivesso they wont become inordinately high. Many topsalespeople perceive this practice as unethical, so it is not

always wise to ensure that a regional manager wins as muchin an incentive program as the best salesperson.

A sales manager may also feel justified in doing this becausehe or she feels that selling is getting easier becausemanagement is doing a better job of advertising and salessupport. This would probably be accepted by most salesforces if the incentive program awards increase in value whenselling gets more difficult, such as in tough economic times.

Mistake 4: Targeting Prizes Toward the Wantsof the Entire Sales Force Instead of the High

PerformersGenerally, one finds experienced high performers seekingindependence vs. security and desiring rewards with somelong-term underlying value. They usually prefer to satisfymany short-term needs themselves. They want to build long-term advantages, such as hobnobbing with top executiveson an incentive trip, that will give them prestige and lead toadvancement.

Many less effective individuals look for easier to reach short-term rewards and dont like to worry about their long-termperformance. Slanting incentive awards toward topperformers may help alter such attitudes among the lowerrungs of the sales force. In closing sales, however, the short-term rewards are critical since everything depends onexcitement and hoopla.

Mistake 5: Planning a Contest with No SalesForce InputWhen planning an incentive contest, form a committee of sales superstars to help pick the incentives and plot theguidelines for winning. Surprisingly, they will set standards

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tougher on themselves than managers would. But becausethey are still members of the rank and file, the entire salesforce will usually respect their decisions. You risk the exactopposite when managers set all of the standards and rewards.

Mistake 6: Leaving Top Management Out of thePlanIncentives are an important part of the psychologicalgratification of the salesperson and, therefore, need to begiven the recognition and esteem associated with topmanagement. At the very least, include comments from thecompanys president or chief executive officer in apromotional mailing to contest participants.

Mistake 7: Being InflexibleToo often, contest rules and prize choices are clad in iron,and it becomes impossible to improvise rewards that may bemore appropriate in a specific situation with a given winner.For instance, a company once offered a top prize of a yearsuse of an automobile. It was won by an antique buff whoowned classic cars that were all more attractive andglamorous than the prize automobile and, because the carwas a rental, it was not transferable. It had no cash valueand the winner gained no satisfaction from winning the prize.

Mistake 8: Hoping for X While Rewarding ZMake sure to gear incentive rewards to reaching thecompanys real goal. Many sales managers will talk about

goal X but go on to design an incentive plan predicated onreaching goal Z. For example, a sales manager kicks off acontest by telling salespeople they need to develop long-termcustomer relationships. Then he reveals that incentive points

are based on the number of sales dollars accumulated. Thisusually happens because Z is easier to evaluate than X, andmanagers are afraid to try out an untested system. Such aplan can rob the future to produce favorable short-termresults.

Mistake 9: Forgetting That Good SalespeopleAlways Work for Their Own Good First, Notthe CompanysSales managers are usually paid a set salary and so aremotivated by the prospect of promotion and advanced statusin the company. They often forget that when skilledsalespeople are not performing up to par, it is because theyfeel there is not enough in it for them. When choosingincentive awards, then, be sure to find out what would makeit worthwhile to the salespeople. Sales force input is crucial

to all aspects of incentive planning.Mistake 10: Being a Do-gooderSince most sales managers enjoy influencing other people,they tend to pride themselves on improvements they see intheir sales forces. They have a natural tendency to spendtoo much time on individuals who are poor performers and,therefore, more in need of improvement. This tendency,popularly called do-gooder management, has no place ina successful incentive program. If you are a do-gooder, fightthe urge to make special concessions to poor performance.

For a more detailed discussion of incentive mistakes and themost common ways to frustrate superstars and send themto your competition, contact The H.R. Chally Group. Request10 Incentive Mistakes to Avoid at All Costs, reprinted fromSales and Marketing Management Magazine.

MOTIVATING


PO Box 20490 Dayton, OH 45420-0490Telephone: (937)259-1200

www.chally.com

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CHALLY ASSESSMENT

State-of-the-Art Selection SystemsThe Chally assessment is based on extensive and

on-going actuarial research. The databaseincludes profile results and measures of performance for over 150,000 incumbents andcandidates in sales, management, skill, andspecialized functional positions. Challycompletes numerous validation studies each yearto develop specific profiles for customers, complywith regulations, and develop new scales thataccurately predict on-the-job performance.

Beyond Describing to PredictingBecause Chally focuses on predicting candidates ultimatesuccess on the job, we have researched and developedobjective scales that measure the actual skills needed tosucceed. It may be interesting to know a candidates energylevel, for example, but it is critical to know that the salescandidate can successfully resolve objections, or that amanager is able to direct subordinates.

This approach has led to identifying specific skillrequirements for different positions. The skill sets requiredfor a National Account Manager, for instance, are differentthan those needed by a Product Line Manager, even thoughthey are both sales positions.

To date, Chally has researched predictive sets of scales for:

13 Different Sales Positions10 Different Skill Positions14 Different Management Positions10 Different Functions

User Friendly ResultsBased on customer feedback, the Chally report has beendesigned to provide maximum information in a clear format.See the illustration below for excerpts from a sample report.

Page 1 provides a complete overview of results, includingthe scores for each job skill, one of three recommendations:

not recommended, recommended, or recommended if concerns are addressed (specifying the concerns), includinga brief explanation of the key strengths and/or weaknessesthat lead to the recommendation.

Pages 2-6 provide a detailed explanation of each skill andthe degree of the candidates strengths or weaknesses. Thisincludes examples of typical on-the-job behaviors that canbe expected. In addition, coaching tips are suggested foreach weakness.

Final pages provide a specific listing of the major

motivational and personal drivers for the candidate (typically5-9 different factors) with matching management suggestionsfor maximizing the candidates effectiveness.

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Chally assessment profile is reliable, insightful andresponsiveThey are indispensable in our hiringprocessWe will never override the Challyrecommendationwhen we did in the past we regrettedour decision [and] they go the extra mile in serving ourneeds.

Jack Matthews, President, ENVIRONETX

You often exceed our expectationsThanks for yourefforts on our behalf.

Philip T. DeRing, President, CDI

Added ValueGood products are only one element of Challys commitmentto customer satisfaction. Our customer service includes :

Dedicated consultants focused on your market Assistance in selection related topics such as

interviewing, recruiting, or coaching Individual consulting as requested, to fit specialized

sales or marketing requirements Tailored profiles for all positions with a large enough

number of incumbents to statistically validate On-going tracking to refine selection criteria

Chally assessment profilenot only provides us with a solidprediction of how successful a candidate would be, it alsoprovides guidance to develop internal candidates for futurepositions.

Donna Jurek, Human Resource Manager, ADT

CHALLY ASSESSMENT

Features Benefits

1. Focused Sales Objectively pinpoints only the skills for the specific position thataffect bottom-line results

2. Description of On-the-Job Behavior Rather ThanAbstract Good Guy CharacteristicsFocuses on specific behaviors that affect results, and that can beobserved and coached

3. Validated Profiles Substantially improves selection accuracy from existing methods

4. Quantified (Numerical) Skill Measures Predicts actual level of performance in comparison to present force;provides firm instead of vague or hedged recommendations

5. Coaching Tips For Weaker Skills Provides immediate targets for development based onrecommendations from top performers

6. Dedicated Customer Service Consultants Your Consultant will acquire experience with your company inyour marketSingle contact response to any questions, concerns, or serviceneeds

7. Quick TurnaroundFewer delays and loss of good candidates

8. Hidden (Not Obvious) Scored Items and Built-inValidity Scales

Discourages attempt to manipulate the assessment resultsAdjusts scores of fakers to better reflect actual on-the-jobbehaviorsPermits non-monitored administration of the test

9. Report For The Candidate Available Provides results review vehicle at hiring when candidates are morereceptive

10. Screen Reports Available For Validated Positions Reduces cost to evaluate non-qualified applicants

11. Selection Audit Selection scales adjusted periodically to reflect new needs ormarket changes

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CLIENTS

ACDelco ADT Security Services

Aetna BuildingMaintenance

Alcoa Building Products Alcoa Window Group

Alside, Inc. American Express

American Homecare Supply

American HotelRegister Co.

American List

Counsel, Inc. AMP

Andersen Windows, Inc. AT&T

BEA Associates Blessing/WhiteBoise Cascade Brown-Forman

Cargill Steel Cellular One

Cincinnati Bell Cintas

Circuit Center, Inc.Commerce Clearing

HouseComputer Learning

Centers Copeland

Computer Sciences Corporation

Comsat InternationalCorporate Express Crown PackagingCutler-Hammer

The Dalton CorporationDanka Dayco

Detroit Diesel EDS

Evenflo Juvenile Furniture Co.Express Press

Exxon Chemical Federal Home Loan Bank Fidelity Financial Group

First Union National Bank Flowserve

Frank Russell CompanyGateway

Gateway BusinessGeorgia-Pacific

Corporation

GMACGM Service Parts

Operations Hill-Rom

Hoffman-LaRoche, Inc.Hubert Company

IBM Insurance Technologies

Johnson & Johnson KCI, Crane Pro Services

Lanza, Inc.Leland Electrosystems

Lexis Nexis Lucent Technologies

3M Marriott

McKesson General Medical Mead

Metsource Miami Computer Supply

Milliken & Co.MLC

NCR Canada National Distribution

ContractingNew York Life

NewsBank, Inc.

Norandex/Reynolds Distribution

Nortel

Novell Occidental Chemical

O Neal Steel Patterson Capital

CorporationPAXAR Corporation

Pepsi Cola Co.Physicians Sales &

Service Pitney Bowes

Plygem PR Newswire

Precision Strip, Inc.Premark

InternationalPrudential

Reynolds & ReynoldsRobbins & Myers

Select ToolSennett Steel

Corporation Shopsmith, Inc.

Standard Register Steelcase

Storage Inns of America

SybaseThe Trane Company

UnisourceUnistrut

UPSWelch-Allyn Wellington

ManagementWestinghouse Westpac Life

Weyerhaeuser WMX Technologies

xpedx

Over 2,000 Companies in 38 Industries, including:

...the Chally assessment profile provides an excellent

barometer for the likelihood of success ... of acandidate.

T. J. Weisenbach,Vice President Tri-state

Group, xpedx

A pre-employment assessment profile by Challycan radically increase your

chances for success whenrecruiting and hiring....low-priced evaluations,while interesting, simplydont offer the in-depthanalysis provided byChally.

Mike Stevens, Owner,Express Press

The Chally assessment profile ... provides usguidance to developinternal candidates for

future positions.Donna Jurek, Human

Resource Manager, ADTSecurity Services

Chally gives us a good forecasting tool ... saves planning ... (and) flagsareas to probe ...

Rick Smith, ServiceManager, KCI Crane Pro

Services

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The H.R. Chally GroupCorporate Headquarters

PO Box 20490Dayton, OH 45420-0490

Telephone: (937) 259-1200Fax: (937) 259-5757

E-mail: [email protected]

how to selec a sales force that sells

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