A well-executed Sales Process Engineering initiative can generate an 8-12% annual, incremental increase in sales performance per sales rep. As noted earlier, this is above and beyond the impact of new products and services, a strong economy, etc.

Introduction

Many who have been successful in sales are leery of becoming involved with something that sounds so highly technical and arcane. To them, “Sales Process Engineering” seems like something that should be restricted to an academic environment or might possibly apply to the “real world”, but only for some huge organization. In reality, SPE takes one of the hallmarks of successful selling – persistence – and elevates it to a whole new level of effectiveness. It takes the cliché, “plan your work and work your plan,” and transforms it from slogan to powerful technique to ensure continuous improvement. It applies to the sales force of thousands, to the “lone ranger” rep of a start-up company and to everyone in between.

Let’s take a few steps back. There can be no doubt that Process Engineering principles are proven. GE attributes a savings of $8 billion over the last three years to Six Sigma. ([1] See note) Dow Chemical calculates an average cost reduction $500,000 per project to it. Dell estimates that it took $2.4 million out of its Accounts Payable process. Wellmark reduced the time to add a new doctor to its medical plans from 65+ days to 30 or less, and was also able to reduce the headcount required to do it. Whether it’s Six Sigma, Total Quality Management, Just-In-Time, Mistake-Proofing or any of the other process engineering disciplines, the prodigious contributions to the productivity gains of American business are undeniable.

But Sales is different…

Really? It should, in fact, be surprising (maybe embarrassing?) that sales executives have avoided (resisted?) applying the collective wisdom of Deming, Juran, Hammer, Crosby, Goldratt, Senge, Davenport, etc. If these principles work with near-astonishing effectiveness for Manufacturing, Operations, Administration, Customer Service, Information Technology, Human Resources, Procurement and Logistics, why would it not work for Sales?

Surely, Sales is different. Of all business processes, Sales is the one that most closely approaches “Art” vs. “Science”. It truly is challenging to apply Process Engineering. That is why the magnitude of the potential competitive advantage from doing it is so compelling.

With Sales Process Engineering, the sales executive can reduce cycle time, wasted time, rework, scrap, work-in-process and the negative impact of dependencies. Constraints can be eliminated. The “Hawthorne Effect” can be harnessed. ([2] See Note) Quality can be increased and best practices, metrics and statistical process control can be exploited.

So how does one get started? First, mentally commit to the continuous implementation of better sales practices. (How can you object to that idea?) Next, recognize the need to maintain that commitment for the remainder of your sales career. Finally, follow an organized process to maximize the efficiency and value of the time you invest in your continuous improvement efforts.

Identify Best Practices

The term “Best Practices” often creates mental blocks. When most of us are asked to list a few, we find ourselves groping for profound statements. We want to express deep, original thoughts that will set us apart from our compatriots. As a result, many really good ideas are left unsaid, and worse yet, many reps get turned off to the SPE effort right off the bat.

In practice, it is better to think in terms of a hierarchy of practices. Start by seeking out plain old “practices” – things that sales people actually do as part of their day-to-day routine. With a list of sales practices in hand, you can pick out the minority of them that truly are better than the others, i.e., your “Better Practices.” Over time, the really effective ones will emerge as “Best Practices”

This hierarchical approach makes it much easier to get your SPE initiative started by removing the unrealistic expectation of coming up with THE answers immediately. If Sales were that easy, any dummy could do it!

One of the best ways to kick off a SPE project is to ask each sales rep and manager to submit in writing the three things he or she does that contributes most to his or her personal success. What is it? Why does it work? What are the benefits of the practice?

Typically, the first time around in this exercise, the practices listed will tend to focus on attitudes (vs. behaviors) and to be somewhat vague. That’s OK. Attitudes are important and the migration to more concrete, repeatable practices will happen quite quickly.

It is also important to solicit input from all members of the sales force and not limit it to the better performing reps and mangers. Great ideas sometimes come from unexpected places and you never know when a “missing link” concept will come from an inexperienced or low-producing rep. Along the same line of thinking, make extensive use of outside sources as well. Look outside of your own firm, at competitors and even other industries.

Engineer Best Process

A genuine transformation in the effectiveness of Best Practices can occur by engineering them into a “Best Process.” (By the way, the same idea of process, better process, best process applies.) There is a profound difference between a set of best practices and a best process.

Remember the Thanksgiving dinner analogy. You could follow a cookbook, a set of best practices, and produce a perfect turkey, perfect stuffing, perfect mashed potatoes, etc. It is another matter entirely to have a process to ensure that each component of the meal is ready at the same time! Ever have the turkey ready before the potatoes are peeled? Ever leave out the secret ingredient for the stuffing because you were rushing to get it finished on time?

Using something like the YPS Methodical Sales Process (described in a later section) as a baseline, you can arrange practices into their most logical, most effective sequence. With a process, you can better coordinate members of the sales team and support staff. You can avoid situations where, for example, the proposal is ready to go and the customer is waiting, but the pricing has not been finalized or approved.

An even greater value is the ability to more easily isolate the exact portions of your sales cycle that are the sources of the most trouble. These trouble spots, once clearly identified, can be addressed and fixed. (A more thorough discussion of constraints, dependencies, rework, etc. is contained in the Process Engineering – Round 2” chapter.)

Documentation – The Sales Knowledge Mine

“Write it down!” Documentation is the key enabler and energizer of the whole SPE process. The discipline of documentation forces clarity and completeness. We have all experienced the phenomenon of having what seems to be a breakthrough insight only to realize its flaws as we attempt to explain its value to others.

Even worse and far too often, a forceful speaker will convince a group that a mediocre practice is essential. That same forceful speaker might also win an argument with incomplete or flawed logic. More harm than good flows from a decision to implement mediocre practices and/or apply incomplete, flawed logic.

Repeatability is the key for any process. Unless the practice or process can be written down and then survive the scrutiny of skeptical readers and doers, it cannot legitimately be labeled as “Best.”

The detail documentation for each major process step should include three sections. The first section contains clearly stated completion criteria. The next consists of a list of best practices that can or should be executed to accomplish that step. The third section consists of metrics to provide a means to keep score on how well a rep or sales unit is executing that stage of the sales process. A simplified example for the step “Gain Prospect Attention” follows:

• Completion Criteria – A face-to-face sales call regarding this opportunity has been scheduled

• Best Practices
  • Mail or e-mail an introductory letter
  • Provide a quantified reference from the prospect’s industry
  • Conduct basic research and become familiar with the prospect’s company and industry
  • Follow-up via telephone to schedule a meeting

• Metrics – 10 Face-To-Face sales calls per week for new opportunities

Each step of your sales process needs to be documented in this fashion, albeit in substantially more detail. In addition, the entire process needs to be flowcharted. This provides an easy way to visualize how all the steps contribute to the overall success of the sales effort. An example of a “Cross-Functional Flowchart” is contained in Appendix IV.

Documentation requires constant updating. The business environment constantly changes; therefore the sales process must constantly change to accommodate the differences and remain effective. If your sales force has any smarts at all, it is fountain of new ideas and new best practices. These new insights must be continuously fed into the documentation so that they can be applied quickly and broadly.

The final key point with regard to documentation – and this goes hand-in-hand with updating – is availability. Perhaps it goes without saying, but all documentation should be electronically stored and remotely accessible. Put it on your intranet!

Communicate/Educate/Train

Providing continuously updated, easily accessible documentation is only the first part of the “Communicate” job. Sales management must also set a strong expectation that all sales reps consistently and actively use the Sales Knowledge Mine. It must become a “living/growing/evolving” body of knowledge and information. It should be positioned as the source of sales and sales process information. “If it’s in the mine, there’s no excuse for not knowing about it.”

The Sales Knowledge mine must also be a two-way street. A “Sales Forum” or bulletin board where anyone can post a question or a comment in response to one should accompany it. This forum must be monitored. Good ideas found here are Best Practice candidates. It is also a great way for sales management to keep a finger on the pulse of what is going on in the field.

The need for education and training regarding the sales process and its effective use should be obvious. Why go through all the effort of designing, building and improving it, if nobody knows what works consistently or how to use the Knowledge Mine to learn more about it? On the flip side, management should also solicit feedback regarding the value and ease-of-use of both the process and the mine.

Finally, here’s a related best practice. At least once a year, each rep should be required to conduct a formal, 30-minute sales training session for the entire team. Since the peer group is far and away the toughest audience anyone can face, all the basic sales skills will get tested during the session. Also, since everyone wants to appear to be “top shelf” when on such public display, you ensure a constant flow of new, good ideas that in turn can be fed into the Sales Knowledge Mine.

Develop Metrics

“If it’s not measured, it’s not managed.” W. Edwards Deming, the father of the modern quality movement states it even more plainly, “What gets measured, gets done.” Developing metrics is therefore a critical, integral part of the Sales Process Engineering process.

The vast majority of sales organizations have defined only one or two measurements for sales reps. Revenue and gross profit are the most common. Clearly, these are essential, but unless total sales volume always exceeds forecast, they are inadequate. Initially, work to define five or six key metrics. These might include number of potential opportunities identified, number of face-to-face calls scheduled and executed each week, number of opportunities where customer personnel are committed to and actively engaged in evaluating your product/service and number of proposals submitted/presented per month along with revenue and profit. As a rule of thumb, define at least one metric for each completion criterion in each step of your sales process.

Over time, as more and more of the steps in your sales process become quickly repeatable, you will find other metrics that are good indicators of a sales process being well executed. Do not be surprised if you find as many as 25, 30 or more.

Implement!!!

Unless the processes, tools, techniques and metrics that result from your sales process engineering are actually used by all members of your sales team – the effort is wasted. How many times have you thought of, heard of or witnessed a great idea in action, and then never implemented it yourself? (Ouch!)

Always using your metrics is the best way to ensure implementation of best practices and best process. The current status of each rep for each metric with a comparison to standard must be available at all times.

Re-read the preceding paragraph three times.

Tracking/Support Tool

Information Technology tools are essential for efficient management of a sales process. It involves way too much to keep in your head. The key point to remember is that only after processes and metrics have been defined, can appropriate tracking and support tools be effectively selected and implemented. Upwards of 70% of CRM (Customer Relationship Management and SFA (Sales Force Automation) project fail. The most common reason for failure is inadequate definition of the results expected from the use of the system.