Welcome everyone to our most recent webinar I’m super super excited today to have one of my great friends and one of the icons and sales Jim Dickey Jim is one of the founders of CSO insights he has done the state of the selling world research for the last 24 years right now working on the 25th anniversary edition of.
That research and and he’s an independent research fellow that we are very fortunate to have today Jim welcome to the webinar thanks Rob.
For having me really looking forward to our conversation today Jim I’ve known you since the early 2000s and I’ve watched you help shape.
How the world of sales goes it’s been interesting to watch how coaching has really taken a front stage and the limelight could you talk for a second.
Let’s look at what the end of the end of the story looks like why does coaching matter so much well it’s interesting you know when you talk to people about sales enablement I had a friend recently can’t believe age to talk about the fact she said I thought everything that promised me an ROI.
In sales and implement we’d be out of business in three weeks so you know there’s there’s just a whole lot of things out there one of the things we’ve been doing in terms of research is going into analyzing what are the things.
That really move the revenue dial and so I took a look at coaching as being one of those you know going back to a world class best practices study you just.
Mentioned you know this point that you were doing it and what I did was take a look at what’s the approach the people are doing to coaching so there are four different types of ways.
That we see people coach one is they leave it up to the individual man manager just oh there’s no rigor you’re a manager you figure it out you know your team just make it happen the other one is informal coaching where there is a way of doing it we’ve kind of taught people about it but it’s not.
Really enforced in for us any good the rep or the manager level good and you move up to formal process where now there is a way of doing things everybody’s trained on it everybody’s expected to use it you’ve got a common vocabulary you’ve got a common set of metrics you measure and then there’s dynamic process where you go to step further and you put the systems in place to monitor that process both.
Of the salesperson level not the manager low so four types random up to dynamic yes and often I’m so good god well you know the key thing with them went through is said okay what’s what’s the goal of coach it is to help me the salesperson to be more successful okay what’s a key indicator of that well did they win deals what was it win rate of forecasts deals and so I went.
And segmented the data just based on that thing what level of coaching you do doing and then I took a look at win rates let me share with you some numbers if you’re doing informal coaching the win rate are the average across all those companies was forty three point six percent okay now by the way the odds of winning at craps in Vegas are forty nine point three oh.
Yeah we’re we’re really bad shape right there but if you can move up to a in formal process a little bit of rigor around it we get up to a 50 point nine percent ring with well that’s big that’s big but it’s not being game yet because.
Up to formal process I can get to fifty eight point eight percent whole each other but the Holy Grail is if I get to dynamic process which is you know.
Something that’s an achieved by now I have a lot of companies day but there’s no reason it couldn’t be achieved by all companies the win rate goes to sixty six point one.
So forty three point six on the low end up to sixty six point one holy smokes now if I’m a CSL of a company you know what are my odds of making my number if only my salespeople are only winning 43.6 presenting their deals versus sixty six you know so this should be not just a sales management discussion this should be a boardroom.
Level discussion because this is what moves the stock.
Price you know everybody that boardroom has one thing in common they have options on side of their company and they’re also representing all the rest of the shareholders and nothing.
Is going to move the revenue the stock price value more than doing a great job of coaching that’s a gigantic difference over twenty five percent well yeah it’s about that you present when you gone from forty.
Three to 66 you’re yeah that’s right yeah that’s amazing so what percentage of people get to dynamic you know dynamic is really kind of out there when we ask the question you know where are you dynamic comes in and around fifteen percent but then we today’s okay well let’s let’s get into a little bit more in terms of how are you doing it and you know somebody well here’s.
My dynamic process and I got those look like Excel spreadsheets do it Excel it’s just really painful you’re doing kind of like.
Of things but it’s you know it’s I think that it’s a small number and most of those people are doing it with a lot more effort than they have to you based on where you know technology is going today and analytics are going to do what’s the most common level the most common.
Level is random and informal add up to about 55 percent whole so 55 percent of time it’s figured.
Out on your own or just have a one-on-one yeah just that what I wanted to hear some guidelines you know ask them how they’re doing and you know ask what they think they need to improve on asking me.
You know and so you should be coming to me what I need to work out I want to give you know the shout out here then I should have done this in the intro this research Jim that you did and you published through the CEO so in size team that one sales and marketing white paper of the year last year right yeah we’re pretty excited.
About it there was part of our sales enablement study and I think it’s it’s a topic that a lot of people are focused on it’s interesting to see the growth of sales enablement within companies because when we started asking the question in 2013 do you have a group this focus on increasing the effectiveness of your sales teams only nineteen point two percent of the company said yes this year.
Over for 2017 it was over 56 percent so a huge explosion but the maturity level of these efforts are way different Jim that’s fantastic that’s a huge number do you do you when you look at that what do people usually tell you and they when they hear that.
Difference they get excited.
Did they say how do they disbelieve what’s the response I think most people will sit there and say it sounds logical.
To me I mean the fact that it’s a nice linear progression I do I get more rigor things get better I do more regular things to get better I do more rigor things get better I mean well understand that the question people have is you know how do i implement that inside the company and I think there’s two aspects of that way of a strategy.
Do I have a coaching strategy do I have a technology strategy also take a look at house compensation strategy that in there and what’s what’s the sales rep wallet telling him to do versus what the managers telling him do so there’s a strategy aspect but about that you know Yummie was one of the guys who said you know set culture eats.
Strategy for breakfast and I think that’s one of the key things we’re seeing here is you can have all these strategies but you also have to take a look at what’s the culture in our organization do we have a culture.
Of continuous salesman mastery where we’re trying to improve or do they have a culture that says hey you know this is the way we’ve always done it let’s.
Just keep doing it we hope it keeps working so is that the biggest challenge is the cultural side I think it’s the thing that you’ve got to deal with first because if you start putting together strategies inside a during the bad about what the culture you have the strategies.
Are going to be less effective if they’re effective at all so I work a lot with coaching as you know we work with companies around the world and one of the things that I find is exactly what you’re saying some old dogs don’t want to learn a new.
Trick how have you found ways to help organizations say I want to learn that new trick well I think what we.
Do is we have them start to take a look at and say let’s go through and really debug this thing called coaching what does that process really look like and we get down to lets get some metrics and sharing some things one of the questions we asked in.
Our studies is how to sales managers spend their time we find out that on average about 19 to 20 percent of a 40-hour workweek is spent coaching.
Wow well then we go and say okay you know how many people do you have reporting to you well on average it’s about eight people so we say okay how are you allocating coaching time and it’s any it pretty interesting cuz what day it is is the number of salespeople divided by time so I got eight hours I had a reps hour Pete’s well that’s.
A way of doing things so what if six of your people.
Are performing just fine why are you spending time with them when you could say let’s take that time and have a.
Bigger impact maybe spending six hours with Bob and two hours with salad because they really need help right now so given a straight thing about the time allocation didn’t think about what aspects of coaching you’re there because when we ask people began how do you spend that time two-thirds of their coaching time is spent talking about opportunities how are you doing on the.
Deal with GE how are you doing on the deal with IBM how are you doing on the deal with Walmart and you know a third of the time is on skills coaching yeah and it’s like okay and by the way when you get to the end of the quarter yeah.
It’s like 100 percent opportunity of coaching present skills but there are other types of coaching there is coaching on territory management am I really looking at my territory and figuring out who the accounts I should be calling ones on which ones I should avoid because if I could do a really good job of coaching and say these are the ones that are in your sweet spot then my sales person starts off with an unfair.
Competitive advantage from day one so I think it’s really a lot of things on saying let’s go back through and if.
We were to blow up the way you do coaching and replace it today what would you what would it look like how would you act Imai zit and I think just start with yeah that’s what people need to have time to do hmm so Mike I’m.
Looking loving this you’ve got a number of different elements that coaching can come per from skill development deal development time management territory management etc when you work with organizations to help build a blueprint for how a leader on a coach is there anything else that you say listen these are the non-negotiables this is what makes that Universal coaching what are some of those things that dynamic coaches look at it’s anything else besides those I think the thing that you know we can’t.
Remember the book but it’s stuck with you.
Through you know since grad school was when they talked about coaching they said there’s five aspects of coaching it’s got to be timely turn it’s got to be relevant it’s got to.
Be accurate it’s got to be sistent consistence got to be individualized and so we talk about is okay how do you do all those.
Things for each person because individualized is really.
Really key you know a lot of times I see companies where I go in and say what are you doing right now since.
We’re gonna treat everybody negotiation skills why because we just lost a huge deal okay well Bob lossky huge deal or Beth loves big yeah but why are you dreaming every ago she Asian skills but it might be one person and I think that’s really the things of being able to go in and give managers insights to.
Do here’s what’s going on with your team and do it in that timely manner what’s going on today for me.
You know what’s relevant to me and I wanted to be consistent I want you to teach you treat me the same way that you’re going to treat the rest of the team in terms of what your expectations are but I want to hold I want to be held accountable so that’s interesting so if we’re talking about what do reps which leaders knew the first thing is know what I need not just what do you want the company to do what do I need yeah.
What any best practices on how dynamic coaching companies help their leaders get down to what the individual needs I think the main thing is you know most of us have blind spots that we don’t realize are there if you ask me how I’m doing I got.