How to Set-up Your Next Sales Leader for Success

Any business executive who has hired the wrong sales leader knows how detrimental it is to your business. The process of finding or replacing a sales leader can be a perilous journey fraught with multiple risks to the organization.

Those about to embark on hiring a sales leader are wise to recognize the importance of getting it right with such a critical role, but often aren’t aware of the pitfalls to avoid.

We’ve worked alongside 100s of small and mid-sized business executives to help them understand the right position scope, timing, and skill requirements that are imperative in putting their sales leader on solid footing for success.

In this article, you’ll learn why even the best sales leader hire is only part of the success equation.

Gain the following insights before you take action on your next sales manager hire:

· Why two different sales leadership roles are needed to achieve long-term, sustainable growth

· What it takes to transform into a high-performance sales organization

· Symptoms that indicate gaps in your current sales system

Staffing for The Right Skill Set at The Right Time

Hiring a sales manager might seem like a guaranteed way to accelerate revenue growth, but without the right sales strategy, system and structure in place, even the most skilled can flounder. Tasking your new sales leader to execute on a fundamentally flawed sales system is a pitfall that can be avoided.

In small and mid-sized business settings, there is typically only justification for one sales leader on-staff. That creates a quandary for top executives to determine what skill sets to hire for given the broad scope of sales leadership expertise that is needed at various stages of growth.

Let’s review the two very different sales leadership roles that are necessary to transform and operate a sales department at a high-performance level.

VICE PRESIDENT SALES – THE ARCHITECT & BUILDER

· Background: Executive Sales Leadership

· Focus: Strategy, Sales Organization Structure, Process/System Design

· Skill Set: Strategic Planning, Sales Goal/Quota Modeling, Sales System Development

· Represented as Phase 1-2b in Sales Org. Transformation Process below

SALES MANAGER – THE OPERATOR

· Background: “In the trenches” Sales Management

· Focus: Achieve Preset Targets, Guide Sales Execution, Sales Skill Development,

· Skill Set: Sales Expert, Sales Trainer & Coach, High Performance Team/Culture Developer

· Represented as Phase 3-4 in Sales Org. Transformation Process below

As outlined in my illustration, the VP Sales role paves the way with executive-level expertise to establish a best practice sales platform during Phases 1-2. While these activities only make up 33% of the transformation process, they are foundational in enabling high performance sales results.

The right resource for this role should have a track record of successfully developing and revamping sales departments – not just once, but multiple times.

The Sales Manager role has an entirely different purpose – to drive adoption of the sales system and create a sales culture of high-performance and accountability. They provide sales skill training and coaching, have a guiding hand on sales pipeline progression, and foster sales rep retention through professional development and career path mapping.

Remember, a Sales Manager is not a magical solution to underlying systemic issues; they are the resource that drives growth by effectively operating a well-oiled sales system with the right people in the right seats.

So, before you bring in a new sales leader, make sure you have clarity on the readiness of your sales system that is key to putting sales management on a solid footing.

Once the right infrastructure is in place, a highly skilled Sales Manager is the ideal long-term resource to drive growth. This role requires full-time focus, attention, and integration into the organization to achieve long-term objectives.

When a company’s sales system requires fixing or ground-floor development, companies benefit from an executive-level Fractional Sales Leader like me for gap analysis, sales system design and its implementation. I can also take the lead on operating the new system in cases when help is needed to onboard a sales manager for long-term growth focus.

How Do You Know if Your Sales System Needs Fixing?

Having someone who truly understands how to assess the intricacies of a sales organization is crucial when it comes to gauging your sales system readiness for heightened growth.

This is the purpose of Phase 1 within my High-Performance Sales Organization Transformation Process model - Discovery & Gap Analysis.

You may find only small adjustments are needed to establish a solid platform for your next sales leader to drive the growth you are looking for. However, often, there are sizable gaps lurking under the surface that derail or dramatically slow down even the most promising hires.

Engaging in my gap analysis process will save you insurmountable time, money and headache in the long run if any of these symptoms sound familiar:

· No defined, proactive sales effort

· Stalled proposals

· High sales rep turn-over

· Cannot find “the right” salesperson

· Sales pipeline not full enough

· Difficulty competing on value and resorting to leading with price

· Sales compensation plan is not driving desired behaviors or results

· … and the list goes on

The Value of an Experienced Guide

Whatever stage you’re at when you determine it’s time to hire a dedicated sales leader, having a Fractional VP Sales veteran come alongside you as a guide can be extremely helpful.

Working with a seasoned professional not only guarantees that you’ll be able to attract and secure the right sales leader for your team, but also ensures that your organization is equipped with the necessary strategy, systems, and structure for them to excel.

Replacing a sales leader can cost a company 1.5 to 2 times the leader's annual salary, plus indirect costs such as lost sales and productivity.

Setting up your new sales leader for success isn't just an investment in their success - it's an investment in your company’s future.

Ensuring that your sales leader has a strong foundation to start with, a thorough understanding of the company's goals, and the tools necessary to achieve them, is paramount.

If you’d like to discuss the improvement you’re looking for in your business through your next sales leader hire, I welcome you to get in touch: 240-678-3426 or prafferty@salesxceleration.com.

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I am part of a national group of Fractional Sales Leaders who collaborate to share insights like the examples shown in this article. We formed because of our shared passion to help business leaders exponentially grow their revenue.