Savvy Sales Managers Speed Up in a Slow Economy

December 8, 2008

In good times and bad, a sales manager is essential to the success of their team,” says Lynn Giuliani, president of Progressions in Bellingham, Washington. “Sales can be a lonely job. A salesperson faces economic challenges, push back, rejection, challenges in time management, product competition—it's a lengthy list. To know that you have someone who believes in you and provides continuous support for you can make or break your contribution to the company.”

In tough times a sales manager's role is even more critical because selling is harder than ever. “We're in a particularly rocky time right now. A good sales manager can create a winning team that not only survives this downturn but creates a team that positions themselves for when the economy turns around, to kick the shins out of the competition,” says Giuliani.

Surpassing the Competition

“Financial institutions are going to close. There are going to be some consolidations,” Giuliani says. “In my 35 years in the industry this is the toughest time I've witnessed, so you must have the right people on the bus. Banks and credit unions have no other choice but to cut expenses. The biggest expense on the balance sheet is employee costs. If we go back to sales management, all you have to do is connect the dots. The sales manager must develop their team to both survive and thrive.”

If you can only justify having five sales reps versus maybe seven in the past, as sales manager your obligation is to give them the utmost amount of support, guidance, and love. “You've got to love them more than ever because every single day they're facing struggles they haven't faced in times past,” Giuliani says. “You can't have a weak leader at this point. You won't make it.”

Savvy sales management is how you will surpass the competition. You must have the best sales team calling on your clients and potential clients. “The lending market is tougher. Lending has always been your carrot . . . clients needed to get the loan,” Giuliani continues. “With lending cut back, now your sales skills have to be better than ever. You can't always give clients what they want the most.”

“Being Tough” Can Boost Morale

What does it mean for a leader to be tough? “Being tough means that you are consistent, caring, and supportive but you're not a willow tree. Sales managers that are a willow tree focus on being light. Instead of getting the job done, they're really hurting the organization,” says Giuliani.

Being tough essentially means not backing down. If we do our job right in the first place—setting clear expectations and then being a good coach and leader and helping employees achieve those expectations—we seldom need to be as tough as one might think. “I believe that being tough boosts morale rather than busts it, because no one appreciates working with someone who is not pulling their weight,” says Giuliani. She offers these tips:

• Understand that being tough ultimately helps employees. Especially in smaller organizations, having tough conversations can be challenging. You get really close with your people. You're more like a family, so it's hard to have those tough conversations. But when you fail to do so, you're actually hurting the employee. “Every moment that an employee does something wrong and it goes unchecked, you're essentially saying that the behavior is acceptable. Once the employee sees that you're going to be consistent, your job becomes much easier and they really won't test you as much,” says Giuliani.
• Have difficult conversations when needed. Savvy sales managers do more than just compliment and praise employees. They are also masters of addressing problem areas. “In an attempt to be nice and not wanting to have difficult conversations, some leaders relax on their expectations,” Giuliani says. “The employee falters or fails to achieve what's been set out and the sales manager caves or gives them a hall pass. Their credibility as the sales manager has just been diluted.”
• Care enough to confront. When you see behaviors that are not acceptable, be willing to confront the employee. Care enough about that person to help him or her improve.
• Exit employees who are not performing. Poor performance and attitude issues are grounds for terminating employment. If you fail to exit these people, you end up diluting the entire team. “There are no secrets in community banks and credit unions. Everybody notices when someone is not pulling their weight,” Giuliani says. “The other team members resent the sales manager because he or she doesn't hold that person accountable.”

Hold Team Members Accountable

Sales managers must hold their team members accountable. “I don't think of it as tough. I think of it as doing your job,” Giuliani says. “A leader needs to have a firm and consistent style coupled with being approachable and letting their team members know how much they value them every day.”

Effective leaders set abundantly clear expectations and then provide the coaching, training, and resources to help their team achieve and surpass those expectations. “Daily coaching is crucial. Spend 2 to 10 minutes a day essentially asking vs. telling,” advises Giuliani.

With “telling” you've done all the thinking. If you switch that behavior to asking open-ended questions, the employee needs to do the thinking and come up with their own answer. When it's your own answer, buy-in is immediate because you own it.

Examples:

“Tell me how you plan to organize your week?”

“Share with me your prospecting approach for XYZ client?”

To answer both of the above questions, employees have to develop a plan. By doing so, they hold themselves accountable. Say you're coaching a teller on cross-selling”

“I noticed that you had a nice exchange with Mr. Jones. Tell me about that . . .”

• Listen intently and acknowledge the employee's performance and then ask . . .

“Are there any other products or services that Mr. Jones might benefit from?”

• At this point, the employee comes up with a cross-selling strategy.

“Asking makes coaching easy for the sales manager because by asking open-ended questions, the employee does all the work. Follow-up, however, is absolutely a must,” explains Giuliani. As the saying goes, a good leader inspects what he/she expects. If you do not follow-up, the employee may get the impression that the goal is not important. And therefore, the employee may not achieve the goal—or achieve it to the desired level.

Strategies for Success

In economic slowdowns, savvy sales managers speed up. Giuliani offers these tips:

• Coach your team daily. If you're going to build a winning team, daily coaching is non-negotiable. Coaching shows that you care. It shows you know what's going on and gives employees an opportunity to be heard and be valued. “Coaching has to be part of your daily routine. It's what brings everything together,” Giuliani says. “Any salesperson deserves a coach. That is someone who listens, cares, supports, mentors, and guides.”
• Be a buffer. Employees are being bombarded with doom and gloom from the media and clients. Savvy sales managers filter that negativity. Let your team know that you're going to set clear expectations, provide resources, and be there for them. Let them know you're a team and that you're going to be okay.
• Know your market. What's happening economically in your area? Which industries are struggling? Which ones are doing well? What about foreclosures and unemployment?
• Invest in your people. In tough times, your team may need more empathy, time, and coaching.
• Hold weekly sales and service meetings. Use these meetings to sharpen skills and communicate. Employees need more communication that ever now.
• Establish performance metrics. Employees need to know what is to be measured, how it is measured, and what the consequences will be if performance falls below expectations. Provide employees with feedback about their performance throughout the performance period—not just at evaluation time. When you only measure at evaluation time, it's now a point of history and nothing can be changed.
• Be there for your team. “Employees need even more guidance and support in tough times. They need to know the sales manager really supports them and defends them,” says Giuliani.
• Create trust and mutual respect. How can you achieve this? Coaching, actively spending one-on-one time, and being present. This means that you're 100% there – your attention is completely focused on the employee and you're not multi-tasking.
• Reassure your team more. Be involved with your team and be highly visible. “They need to see you and talk to you,” Giuliani says. “Coaching gives you an opportunity to interact with your team and know what's going on.”
• Acknowledge that everyone has more responsibility. “In tough times, everybody has more responsibility. There's really no one in the group that's exempt from it,” Giuliani says. “Everyone has to work harder and smarter.”

Lana J. Chandler is the publisher of Branch Manager's Letter. Reprinted with permission.

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