During one memorable sales training session, I experienced in my corporate days, focused on understanding how different people in the buying organization interact with time differently. In fact, different players will look at the exact same thing, and see something different based on their role in the organization and their place in the hierarchy of the specific decision that needs to be made, but I am going to use time as my vehicle. Not giving it all the justice it deserves, they made the argument that reps need to think in shorter time horizons than their managers; who in turn have a shorter horizon than senior stakeholders like the VP of Sales CFO, and other executives. Loosely, rep looking at here and now, manager next couple of quarters, VP of Sales 12 – 24 months.
The next 12 – 24 months do not look as good as the last 24 from an economic perspective that impacts B2B sales, it has been a good time no matter where in B2B sales you play. But how much of it has been ships rising with the tide vs. productivity gains at the rep or front-line team level? I would offer up that given the stats about the number of reps achieving quota, and the continuing divergence between reps making quota and companies growing revenues, suggests that along with other factors, sales rep productivity is not driving the current numbers, must be the tide.
When Tides Recede
Looking ahead 12 – 24 months, it is not hard to see cracks in the economy. No, the sky is not falling, but there are clouds on the horizon. We are in the longest economic expansion in modern times, the stock market at record levels even after the recent October thaw, few believe the cycle could go on forever, and most see a pullback sometime in the next 12 – 24 months. Are we ready?
In many ways no, but it needn’t be that way, we can be ready, but things have to be initiated now, when there is room for error, review and adjustment, not when things slow down and no one wants to make a bad move.
Start In The Middle
The challenge leaders face is that many of their front-line sellers have not sold through down market. Having cut their teeth during in this extended cycle, they have not point of reference for understanding what to do when the tide and prospects move the other way. Add to that many front-line managers (regardless of title) are no different, having entered the profession after 2010, rapid and often unwarranted advancements, where rather than a raise they are elevated; or companies who lure away talent with cash and promises. In an up market it’s fine, just replicate and add. This leads to managers who have a great understanding of what it takes to convert inbound opportunities in a good market but may lack what it takes to lead people to hunt in lean times.
If we address the challenges front line managers will face in a down market now, we will avoid making brash and rushed decision when it counts. No wants to be the party spoiler, but there is a reason why successful and critical organizations do stress tests, to see how well things will stand up if circumstances change. Play around with different scenarios, go back and look at how things unfolded in 2008, 2001; look at headcounts, length of cycles, which type of salespeople performed better than the market; which ones did not, and are they still on the team?
Structure
One reality of down markets is the impact on headcount, doing more with less. Given that many of the stats around the SaaS sales model, where the sales role is disintermediated, (I know they like to call it specializing), are not impressive. Many are struggling to deliver by any measures, and you can bet that when the downturn comes, you will have to discard much of the excess luggage you are carrying now. I would suggest looking at exposing your team to the complete sale cycle now, if I am wrong and the market stays good forever, you will have had an opportunity to test drive people in future roles. If I am right, you’ll know who to keep when the time comes.
We will have to change the way we sell when things turn down, many of today’s models will no longer work, and we have to borrow from the past, be creative, likely both to forge a new path.
“And the slogans are replaced, by-the-bye”
As in other fields, it is probably best to look past the usual experts and look beyond sales for innovative alternatives. Most of the pundits got it wrong in the last recession and ridiculed any alternative to their status quo thinking. Remember back around 2010 – 2011, when millions of sales jobs were going to disappear. SellingPower had a piece “How Many Salespeople Will Be Left by 2020?“, it has since been taken down, mostly because the answer offered was wrong. As was Forrester’s prediction that 25%, millions of people in sales, would disappear. Just look at all the LinkedIn profiles that right next to their name they add “I’m hiring”.
Downturns are predictable and healthy, assuming you are ready, are you?
I have been called “a brilliant sales tactician”, who starts from the premise that success in sales is about execution everything else is just talk; and there is no shortage of talk in sales. With a focus on metrics and process, I help clients improve critical elements of translating strategy to tactical success. I was ranked 8th on the Top 30 Social Salespeople in The World, awarded a Gold Medal Top Sales & Marketing Blog 2013, and have helped thousands of sales professionals exceed their goals.