A Chance Zoom Call Awakens a Sales Director's Belief

I caught up with a former team manager on a Zoom call recently. Once a successful regional sales team manager he worked for me and was destined for bigger things. Now in his second year as UK Sales Director for a medical technology corporation, he said he had a leadership problem and was looking for advice. 
 

This is his story. His team hit target during his first full year as their Sales Director. However, the present business landscape poses formidable challenges. Second year at the half way stage refected 11%  negative variance compared to the previous year. In his own words his forecast numbers were  "abysmal".  Current national sales target had grown by 9%. He wondered if his field sales team, perhaps sickened by the target increase, had lost some fervour. I sensed he was missing a trick. Stop looking for the answer elsewhere. its in plain sight !  He was part of a vertically managed organisation and from his appointment he was haunted by his boss who would insist that "we should keep the existing team together at all costs as recruitment costs were an anathema.There are no faults in a sales person that a decent sales diector cannot coach out of them". Oh really?

Despite returning the previous year on plan it seemed to me he did not have such a good year after all, especially in the area  of forecsting. Identifying sufficient newly qualified business to provide at least 3:1 ratio of closing opportunities in the targetted period is critical. Apparently, three major projects landed during  last year totalling 54% of the annual target. Two were eighteen months in the making, one twenty months and when stripped out of the team performance it made grim reading. The forecast bin had been  left virtually unattended  for the remainder of the year. He was was also completely unaware of the ongoingi shift in the digital age market. Customers were now well used to wrestling control of any sales process from suppliers by progressively strangling the traditional sales representative prospecting sales model. Where had  he been? I thought everyone knew it?

The longer he spoke the more I felt his entire eight number sales team must have been asleep in the fast lane. surely someone had clocked it. Customers are rejecting  spontaneous prospecting approaches from suppliers now. In the  project world just being professional is not enough any longer. You need to be armed with outstanding customer relationships built from impressive networking, refined social skill and emotional intelligence. These assets may not exist in your present work force-you need them? An excellent top flight website that provides exceptional customer experience at every touch point is not just a must have, without is a deal maker.
 

He said that his two inherited regional sales managers were attributing this year’s sluggish forecast to a scarcity of new business opportunities. According to them the sales pipeline was drying up before their eyes. I suggested that was not true, it was just going elsewhere,  there was something else at play and it had started quite a while ago. That's why their people were not picking up sufficient leads and new opportunities . Their pipeline, or lack of, left much to be desired,  compared to previous years performance. The pressure from higher-up in the management chain was mounting. Such was the clamour about hiiting target last year everyone failed to notice the cumulative drab forecasting.
 

 I emphasised that forecasting control  is paramount, as it serves as a window into the future promises of the sales team.Sales forecasting can be a delicate science at the best of times , prone to inflation and just as liable to vanish without trace . It’s not just a numbers game; it’s a lifeblood early warning system. Sales Directors and RSM's must sit on it and keep the score to know the score.

In his specific business niche, it’s essential to maintain a rolling qualified forecast of at least three times the sales target for each period. For instance, a £3 million sales target in quarter one necessitates a qualified forecast of £9 million. This ensures sufficient invoiced sales can be generated during that period. Identifying future business opportunities must run concurrently with closing current sales. It demands scrutiny. Shortfalls must trigger robust retrieval plans and focused implementation.

Following any year-end, having at least 35% of the new annual target achieved in the first quarter is essential, so the qualified forecast for capital sales in that period needs to be at least three times the purchase order intake.  That qualified forcast needs to be fixed in place weeks before closing the year end.

Neglecting this formula results in a perilous catch-up scenario. Ignoring it is a leadership lapse. The Regional Sales Managers must swiftly grasp this and be held accountable for competent and accurate volume forecasts.

Salespeople, by nature, are fragile. When their motivation wanes, they require nurturing, attention, and confidence-boosting. Could their belief systems be faltering? Leadership success isn’t determined by one isolated good year; it’s an ongoing journey. Same for leaders too.

To reinvigorate the team, RSMs must be motivational figures, and corrective feedback should be delivered positively. Instead of nagging about errors, provide uplifting feedback that illuminates what team members are doing right. Iignite their passion to identify who’s truly committed to the mission. Dare I say recruitment costs may be an anathema but stiffs paying lip service to forecasting cause more businesses to fail than anything known to man.Resistance to change is an unfortunate way to resign.

Foster a culture of genuine encouragement. Retrieval plans should consist of short-term, measurable tasks, co-created with the team members themselves. Focus on accountability and potential.

The RSMs should transform into expert sales and territory management coaches, offering balanced positive feedback at every stage.

But what about my colleague, the Sales Director? I asked him whether he had overlooked the basics. Had he Lost sight of the importance of forecasting and spent too much time in the office, becoming disconnected from the team? Had he continued traveling with them as last year? His admission that he had been drawn into meetings and office matters was almost bruising to my ears. Can he coach forecasting? Could each of his players stand up at the next sales meeting and teach the subject to the team brilliantly.

In essence, he needed to embody a winning example. It's the culture his team should emulate even when no one’s watching. Besides, sitting in head office means that is why he is probably missing that obvious shift in  customer behaviour. He needs to  catch up. His organisation sounds out of sorts and needs a shake up.

We agreed to discuss how to access that guidance and t I reminded him of a critical lesson: a sales team leader needs to spend up to 50% of their time in the field with their team and customers to even begin to halt a company’s decline. His eyes lit up as he recalled my previous advice: “Positive feedback awakens the dead,” and “Alan Dawson can damage your rut.” He admitted he should have reached out to me sooner. He was beginning to believe in the future again.

In conclusion, every individual, even those at the helm, requires motivation, support, and positive feedback. My colleague had rediscovered his coach , and the time to act was now.

Before parting ways, I shared another  pearl of wisdom“The fundamental purpose of accurate forecasting is not just about safeguarding the future, moreover igniting the urgent action of today.”

In need of an expert Sales Leadership Coach? Remember, Alan Dawson is at your service.