If you are an executive in the revenue generating side of an organization and responsible for performance and accountable for results, it is essential that you hire and retain sales professionals who are also responsible for performance and accountable for results.
The first step to is to identify the factors that predict both performance and retention. The following formula created by SMG is a time-tested model for predicting both performance and retention.
YOU CAN’T WIN WITHOUT TALENT
The biggest waste of time and resources is hiring, training, and developing individuals who don’t have the potential or DNA to benefit from the resource allocation. (not only does this serve to diminish company resources but also negatively impacts all that are involved.)
TALENT – (DNA) CHARACTERISTICS OF TOP SALE PERFORMERS
- Business Development (PROSPECTING) 50%
- Closing 35%
- Coachability (FIT) 15%
The #1 predictor is the potential to prospect on a consistent basis. The more prospects you contact, the more opportunities you have to sell. High activity sales professionals have been proven to survive.
The highest performers also close sales. The key to selecting is to not only identifying individuals who will close but their closing style must match the sales process. Soft closers are better for relationship sales opportunities whereas hard closers are more suited to one or two interview sales situations (closing upon first contact).
In summary, 85% of the prediction is “will an individual prospect and will they close?” High performers do both. High activity professionals that don’t close are generally “order takers” who survive but never excel until they learn to close.
“TALENT WILL GET YOU TO THE TOP BUT IT TAKES CHARACTER TO KEEP YOU THERE” ~ Coach John Wooden, UCLA Basketball
HABITS (CHARACTER) -There are two habit patterns of top performers, attitudes (habits of thought) and effort (habits of behavior). Again, quite simply, top performers work hard and have a positive attitude. It is important to remember that past effort predicts future effort, but past performance doesn’t predict future performance if anything changes.
OPPORTUNITY (FIT) – The biggest predictor of retention is fit to the manager and fit to the culture. It is often frustrating if you have a top candidate that is talented and has a history of hard work but doesn’t fit. On the opposite side they fit, and you really like them, but they have lower performance potential.
HOW TO PREDICT – THE ART AND SCIENCE OF PREDICTION
The ideal selection process is 50% art form and 50% science. SMG has developed a Selection Rater to help our clients.
Selection is like a prospectus. In assessing the value of a potential acquisition, professionals develop an ROI formula. What are the costs and what are the potential returns? When we predict performance using a Selection Rater it is possible to predict the return and assess the training and coaching required to realize an individual’s full potential.
OBJECTIVE:
Psychometric (Potential) – 100% Science Structured Interview – 50% Science, 50% Art
ART:
Unstructured Interview (Fit) – 100% Art
PREDICTIONS TOTAL
If all 3 high 90% Survival
If 2 of 3 60% Survival
If 1 of 2 <30% Survival
If all 3 aspects of the Selection are high, you can feel confident you have a potential top performer. If 1 of the aspects doesn’t align, explore the reasons.
INVEST IN THE FUTURE
Predicting performance requires a systematic approach to understanding the potential (talent) and work ethic of potential candidates. It is essential to continually track the performance and validate the selection model and to follow your effective hiring process.
Commit to continually build on your strengths so your team can soar to new heights.