Developer's Guide to Running Sales Teams
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This document outlines best practices for building and scaling a sales organization across three phases: 1) Proving product value with founders selling the vision, 2) Understanding the sales pitch with multiple reps closing deals, and 3) Scaling to predictable revenue growth. Key recommendations include empowering autonomous reps, developing sales skills like engineering skills, using agile processes, and separating performance metrics from compensation to reward people rather than manage them. The overall message is that good sales management parallels good software development approaches.
Developer's Guide to Running Sales Teams
- 1. Developer’s Guide to Running Sales Teams…
- 2. http://developingsales.com Jeff Szczepanski Chief Operating Officer
- 3. Common Startup Plan 1.Idea! 2.Technical Co-Founders 3.Raise Money 4.Build Great Product 5.Hire VP of Sales ie: ‘Needz Sales’ 6.Profit!!
- 4. Common Startup Outcome 1.Idea! 2.Technical Co-Founders 3.Raise Money 4.Build Product 5.While( Cash Remains ) Hire VP of Sales <some stuff happens> Wait 12 to 18 months Fire VP of Sales 6. FAIL!
- 5. Common Startup Outcome 1.Idea! 2.Technical Co-Founders 3.Raise Money 4.Build Product 5.While( Cash Remains ) Hire VP of Sales <stuff happens> Wait 12 to 18 months Fire VP of Sales 6. FAIL!
- 6. Add More Features!!? Best Way to Increase Sales???
- 7. Add More Features!!? Best Way to Increase Sales??? No, it’s cheating because it expands your addressable market, it doesn’t increase actual rate of penetration.
- 8. Good sales execution is what sits between your Product and a Great Business Product Sales Execution Great Business
- 9. Building Sales Orgs in 3 Phases Proving Product Value Understanding your Pitch Scaling the organization
- 10. Essence of Phase 1 Proving a Market Exists for your Product and that people will pay money for it.
- 11. Phase 1 Goal Several paid customers who are getting value out of the product
- 12. Phase 1 -> Challenge Your Product Really, Really Stinks
- 13. Phase 1 -> Implication Customers are buying into your vision more than your product
- 14. Phase 1 -> Activities • Product is rapidly evolving • Founders need to be out there selling and proving the vision Key Point: Professional Sales People Not Needed (nor desired) in this phase
- 15. Phase 1 Best Practices • Lean Startup Concepts – Getting to Minimum Viable Product • Founder selling of the vision • Tight Feedback Loops without Filters • Talk to BUYERS, not just Users – all the personas in the value chain • No Free Stuff: Prove Value • Test your Pricing
- 16. Phase 2 Proving Product Value Understanding your Pitch Scaling the organization
- 17. Phase 2 Entry Foundations • A product that is proving useful – Doesn’t completely suck anymore – Graduating from beta phases • Multiple Paying Customers – People Have paid real money • Lists of Possible Future Customers • Good sense of a Workable Price Point
- 18. Goal of Phase 2 Multiple Sales Reps Closing Deals on their Own
- 19. Phase 2: Sales Rep Hiring Profile • Not their first Sales Job – Proven ability to sell something – At least modestly consciously competent – Smart, Hungary, buy into your vision – Genuinely like solving problems • BUT Avoid Very Experienced Reps – Expect to make tons of money immediately – Expect too much from the product – Preconceived notions on how to sell product
- 20. Common Phase 2 Problem FOUNDER: “I can close customers myself without any problem, but the reps I’ve hired can’t close the deals on their own”
- 21. Common Phase 2 Problem SALES REP: “I can’t close customer X without feature Y” and SALES REP: “If I had Feature A, then I could sell way more”
- 22. Phase 2 Best Practices • You product will always suck to some extent – Admit it to yourself, Admit it to the Sales Reps – Sell what you have • Get to at least 3 Sales Reps as fast as possible – You want multiple petri dishes • Aggressive Compensation Plan – Want successful reps making a ton of money • Fight all urges to use discounts to close deals • Sales Manager not Needed yet – But a good idea to be looking!!
- 23. Phase 3 Proving Product Value Understanding your Pitch Scaling the organization
- 24. Phase 3 Entry Foundations • Multiple Self Sufficient Reps Closing Deals • Happy Reps Making good money • Lots of Positive Testimonials – Product doesn’t totally stink anymore • Lots of Paying Customers – Repeat business • Lots of Identifiable Prospects to Attack
- 25. Phase 3 Goal Jetting to your vacation home in Aspen, Colorado
- 26. Phase 3 Goal Predictable Revenue that is Scaling
- 27. Phase 3 Concepts Must Read Book!! (But ignore half of it)
- 28. Phase 3 Bad News • Nature of Sales is Changing Rapidly • Classic Management Methods Failing • Experience != Expertise • Poor at Predictions of Outcomes • Seemingly More Art than Science • No Magical Processes to Follow
- 29. Phase 3 Bad News • Nature of Sales is Changing Rapidly • Classic Management Methods Failing • Experience != Expertise • Poor at Predictions of Outcomes • Seemingly More Art than Science • No Magical Processes to Follow
- 30. Phase 3 Scaling Solution What if we put an experienced CTO/VP of Engineering in charge of Sales!!??
- 32. WTF – Does that really help?
- 33. Phase 3 Insight Good Sales Management approaches parallel Good Software Development approaches!!
- 34. Properties of Successful Software Development
- 35. Smart and Gets Things Done Empowered Autonomous Individual Contributors
- 36. Understand Performance != Results Software Development • Discovering, Developing and Finalizing Requirements • System Architecture, Design and Code Construction • Quality Control including effective testing and validation • Task Estimation and Project Management • Deployment and Ongoing Maintenance A bunch of Separable Skills that individuals and the team must be process capable of
- 37. Phase 3: Skills Development Software Development • Discovering, Developing and Finalizing Requirements • System Architecture, Design and Code Construction • Quality Control including effective testing and validation • Task Estimation and Project Management • Deployment and Ongoing Maintenance • Team Morale and Cadence Sales Development • Prospecting • Questioning • Proposal Development and Pitching • Objection Handling • Closing Skills • Negotiation • Time and Pipeline Management • Team Morale and Cadence
- 38. Team Morale and Cadence • Bottom Up Schedule Estimates • Strive for Continuous and Steady Output – Team Goals but No death marches • Using Peer and Social Pressure vs. Edicts – Setting Cultural Norms and Expectations • Compensation Fairness • Merit not tenure based Advancement
- 39. Phase 3 Sales Rep Role Same as Phase 2 Rep!! ….but you can loosen up the constraints a little …this is just like on your dev team as it grows.
- 40. Phase 3 Sales Rep Each Rep runs their Own Small Business: • End to End ownership of the relationships • Sets their Own Forecasts • Picks their Own Accounts • No scripts, No quotas • Works under shared best practices • Supported by Team Leader and Sales Manager
- 41. Phase 3 Sales Manager • This is the Line Manager of the Sales Reps – Parallel to the Engineering Manager • Primary Responsibility is Skills Development • Removes Operational Barriers – Helps define and build common infrastructure • Works with a Longer Term Horizon – More Quarter to Quarter than Day to Day • Tends to Specialize as you Grow – Splits into Operational Aspects and Skills Development Aspects
- 42. Phase 3 Team Lead • Drives Cadence and Morale of the Team • Parallel to the Technical Team Dev Leads • Walking Personification of Ideal Sales Rep • Natural Leaders that enjoy Mentoring • Player and a Coach -> Carries full account load • Eyes and Ears for Sales Management – Spot treatments not skills development
- 43. Phase 3 Role Separation Team Leaders => Track Racing Pit Crew Sales Management => Garage Mechanics
- 44. Phase 3 Tools and Process SCRUM Sprint Based Process • Team Based & driven by the Team Leads • Operated as Joint Retrospective and Standup • Breaks Monthly or Quarter Forecasting Cycles into Week Long Sprints • Reinforces Team Work and Shared Best Practices • Friendly competition between Teams and Offices
- 45. Phase 3 Tools and Process
- 46. Phase 3 Tools and Process
- 47. Phase 3 Tools And Process
- 48. Phase 3 Tools and Process
- 49. Phase 3 Goal Predictable Revenue that is Scaling
- 50. Phase 3 Best Practices • First Phase with Professional Sales Manager(s) • Separate Performance from Results • Developing Suites of Skills in Each Rep • Empower the Reps and Teams to Self Manage • Each rep is running their own little business • Real Time information: No Static Reporting • PS: All Current CRM Systems Suck!!! • Autonomy and empowerment is the name of the game REMEMBER: Compensation System is a way to Reward people. It is NOT a Management Tool.
- 51. Thank you!!! talljeff@stackoverflow.com @inscitekjeff Blog: DevelopingSales.com