Revisiting the definition of “micro-management” with today’s Sales Representatives

June 3, 2015 by Don Jasensky

Is it time to revisit the definition of “micro-management”? I receive calls on a weekly basis from frustrated executives lamenting over the difficulty of finding good sales people. You may have heard it too : “This new generation does not want to work hard” – “They won’t put in the hours” – “They are not motivated” – “They don’t want to start in sales and move up”- “How do you lead them?” Sound familiar?

Like many business students in the early 1980’s I was very influenced by Tom Peters “In Search of Excellence” and similar treatises. I remember the counsel :

– hire the best people
– train the dickens out of them and then
– get the hell out of their way!

I couldn’t wait to become a manager and apply this formula. The concept of being a “micro-manager”was an appellation to be abjured at all costs!

Like many new managers I eschewed the confines of the management system I had to use with the auto dealership I was managing. I already knew that I wanted to hire the best – train the dickens out of them and get the hell out of their way! Then watch them soar ! However, like many young managers I quickly realized the weakness of this approach with most people. I had to learn why a proven system was really my best friend and to hold sales people accountable throughout the day. That was quite a paradigm shift!

No matter how hard we looked to hire “the best people” and no matter how well we “trained the dickens out of them” very few “soared” if they were not held accountable throughout the day for the tasks that led to sales success ; proper greeting, showing the car, getting little “yeses”, trial closes, etc. I learned the value of logging in every guest and making sure they were contacted within 24 hours with a “good news call”. I was learning the value of managing “sales behavior” throughout the day.

I learned the value of a proven system and timely accountability with:

– morning meetings,
– checking to make sure that daily appointments were made,
– open deals where on the right track to be closed,
– importance of a salesperson getting help before a customer leaves, etc.

I began to realize that most sales people perform much better if they know what they will be held accountable for and when. And “when” should be soon! I would have looked at this as micro-managing at an earlier time in my young career. Was I becoming the dreaded “micro-manager”?

McDonalds teaches its Store Managers how to consistently achieve extraordinary results with ordinary people. Their Store Managers master their system and keep workers accountable for their productivity throughout the day – not at the end of their shift.

At Automotive Personnel, LLC we have been interviewing Regional / District / Area managers for 20+ years. From our unique vantage point we have seen a distinct pattern of the very successful managers and how they lead their field sales force. Yes they seek to “hire the best” and they do “train the dickens” out of them. But they sure don’t “get the hell out of their way”. The behavior of the consistently most successful Regional Managers is what many would label “micro-management”. So maybe it is time to redefine “micro-management” with today’s Sales Reps.

Here are some of the things we see the top Regional Managers consistently do :

Throughout the day, they hold their Field Sales Reps accountable for their “sales behavior” not just their sales achievement. It is the day to day sales behavior that will lead to consistent sales success.

Example:

– Morning meeting – everyone on phone. It’s a few minutes, hopefully somewhat entertaining, motivating and informative. This is not a “beat up the Reps” call. However it insures all Field Reps are up and working.

– “We have $XXXXX to go to achieve our monthly goal and bonus – we need $XXXX per day from each of you”- (we up or down on goal?)

– Sales Reps will have yesterday’s successes pointed out to the group “Mary closed the “Jackson Auto group yesterday”. “ They have 22 stores that they can bring aboard”. “Great job Mary”

– During the day each Field Sales Rep will get one-on-one calls to review yesterday, their plan for today and monitor their day. “Jim you planned on stopping in on 10 auto dealers and you only logged in 6, tell me about that”. Bill you only have 8 calls set for today, that seems light since you will be in a metro area today – tell me about that…”

Jan what’s going on with the Airport Auto Group? Their contract has not been turned in yet. Tell me what your game plan is to close the deal.

– At the end of their day, each Field Sales Rep is required to communicate 3 things (usually via email)

Who they called on and the results
Who they will call on tomorrow
“What are you hearing”? – competition – pricing – dealers are saying –opportunities and problems, etc. This gets “street level information” up the chain

The top Regional Sales Managers lead by example and spend much of their work week in the field – riding with their Reps and calling on customers. Top Sales Managers hold their Reps accountable for “sales behavior” throughout the day that will lead to consistent success.

I know many Regional Managers who would label this as “micro-managing”. The Regional Managers who tell us they don’t talk to their sales force more than once a week are usually calling us looking for a job!

Tips for interviewing Sales Managers

Probe these areas during the interview:

– experience (what will they need to learn to understand your industry/company/clientele ?)
– achievements and successes – (what significant improvements have they made in their area?)
– learn about their management style – do they follow a system ?
– probe to learn if they are “open to learning and adapting” to your system or are they going to try to change your system and install the one they know

To circle back to the original question, is it time to revisit the label “micro-managing”?

“Ceiling” Vs. “Getting them up to speed”

June 3, 2015 by Don Jasensky

In the executive search profession we are always comparing candidates as we decide who “makes the cut” and gets sent to our client and who does not. We look at many factors in making our decisions, I want to talk about 2 factors that will bring clarity to your group of candidates fairly quickly.

We look at potential “ceiling “ a candidate may have. This is how high do we think this candidate can rise? This is easier for a candidate whose performance can be measured : sales, sales management, department head, CEO are good examples where their performance is fairly easy to measure.

You can also use this concept when looking at positions that may not have such measurables. Example : You are looking at Accounting Manager candidates. After interviewing the candidates you begin the final selection process. Who in the group looks like they have the “higher ceiling” ? That is who may have the ability to become a Divisional Manager? Corporate Controller? CFO?

As an example, let’s assume you are looking at your group of good Accounting Manager candidates: all have degrees, good work experience, good references, interviewed well etc. – those with the “higher ceiling” may be more attractive to your company.

In a search we completed earlier this year for a CEO of a midsize automotive company, we had several very impressive candidates that ownership and the search committee liked. They debated candidates for several days then in a conference call they asked me what I thought . I told them I will ask 1 question and I think your answer will emerge immediately after. They were intrigued!

I communicated that the finalists are all very good candidates with terrific experiences, accomplishments, etc. Now, which candidate has the highest ceiling ? All agreed on 1 candidate right away! Conversation then moved to putting an offer together.

There is a balance to “highest ceiling” that needs to be factored in and that is what will it take to get this candidate up to speed for your open position? As an example, let’s assume you are looking for a Regional Sales Manager over a 12 person sales force spread over 7 states.

The candidates with the highest ceiling may look like they possess the potential to be a National Sales Manager or VP of Sales and Marketing someday. However the job at hand is Regional Sales Manager and you cannot look past this fact! What will it take to get the best candidate “up to speed for your position?

– what is the cost and time to getting this candidate trained and “up to speed?”
– product knowledge?
– learning more about your industry ? your customers?
– your corporate technology?
– is this a much larger sales force than he has ever managed ?
– do you have the time and ability to get this candidate “up to speed”?

Very often companies need to pass on the candidate with the highest ceiling and focus on the candidate that can do the very best with the position they are hiring for now.

This is the Ceiling Vs. “Getting them up to speed” decision you sometimes need to make.

TAKE AWAY: Go into each interview looking for clues to a candidate’s “potential ceiling” and what will be needed to get the candidate “up to speed” with your open position.

Leadership Vs Management…

June 3, 2015 by Don Jasensky

More than ever business executives need to be Leaders more than Managers !

The business landscape is changing so fast and workers need to be confident in the leadership of their company. I have observed several common attributes of leaders Vs managers.

I will share several here and hope you keep them in mind when promoting personnel or hiring new personnel. One responsibility of a leader is to develop other leaders !

Several attributes of leaders I have made note of :
– Leaders focus on leading people managers focus on managing work
– Leaders have devoted followers managers have subordinates
– Leaders promote vision managers promote work objectives
– Leaders appeal more to one’s heart managers appeal more to one’s head
– Leaders take risk managers try to minimize risk

Here are a few favorite quotes on leadership .

“Management is doing things right; leadership is doing the right things.”
Peter Drucker

“Management is efficiency in climbing the ladder of success; leadership determines whether the ladder is leaning against the right wall.”
Stephen Covey

A favorite of mine from President George H.W. Bush when being challenged at a debate with his opponent stating how the country is mismanaged and this election is about better management . President Bush responded with – to the best of my recollection – “Management ensures a train runs on time, leadership determines its direction.”

I hope this helps providing direction to your career and to the careers’ of those you lead.

Don Jasensky founded Automotive Personnel, LLC in 1989.

Automotive Personnel, LLC is a national search firm that places managers and executives in automotive finance – auto dealerships and aftermarket companies.

Executive Recruitment Quiz – Test your recruiting knowledge

May 27, 2015 by Don Jasensky

Prepared by Donald Jasensky Founder and CEO Automotive Personnel, LLC

1) The best indicator of a candidate’s future performance and success with your organization is:

1. How well they present themselves during your interview?

2. They say all the things you were looking to hear?

3. Strong record of successful past performance?

4. Aced your corporate testing?

2) The best indicator that a Sales Representative candidate will be a great hire for you is:

1. Blows you away during the interview?

2. Toss a stapler in his lap and ask him to “sell it to you” and he does very well selling it to you?

3. Past record of high performance?

4. Aced your “Profile Assessments”?

5. If they can “sell you” during the interview they will sell to your clients as well?

3) Which point is often overlooked by employers when creating a winning job posting to attract a superior candidate?

1. Very detailed job description covering the duties and responsibilities of the opportunity?

2. List of stringent qualifications to ensure the best candidates will reply?

3. A description of your company and what a person can accede to in this position?

4) The best method to delegate responsibilities to hiring committees is:

(Example is 5 people on hiring committee deciding between 4 candidates interviewed)

1. Majority rules?

2. Unanimous or keep looking?

3. All committee members have a say, but final decision rests with the member who the candidate will report to?

5) When you are interviewing a Sales Rep or mid-level manager, the best sign that you have a good candidate is:

1. Willing to start right now with you?

2. Cautious, asks a lot of questions, needs time to think about it?

3. Blows you away during the interview?

6) Which is correct – What a candidate wants from a career move, ( candidate’s mindset ) is:

1. Just as important as their education and experience?

2. Not your problem and should be left to the candidate to sort out?

7) Which is more reflective of a Career Seeker Vs a Job Seeker?

1. Come to your interview enthused and willing to jump through any hoop for you?

2. Willing to commit to your position during 1st interview?

3. Wants time to reflect on your opportunity and where it will lead them?

8) Check each that apply – When interviewing candidates in-person:

□ You are able to spell out a compelling reason why any candidate should consider leaving their current position to join your company.

□ You can explain “what the candidate can become” by taking your position.

□ You tell her about the team she will be joining

□ (If candidate is from a different industry) You have compelling reasoning for him joining your industry.

□ Provide literature for candidate to take home to review and share with spouse/mentor.

9) To save everyone’s time, do you prepare a list of “knockout factors” when beginning a search such as:

– Candidate’s ability to commute to your office daily or relocate?

– Non-compete exists that may affect their current employment

– Specific knowledge necessary such as “EXCEL Expertise”

– Needed licensure (driver’s license needed to do job, CPA required?)

– Credit and criminal background checks needed before offer letter

– Ability to travel as required

□ Yes

□ No

10) Post interview – Check all which you do regularly in your post interview meeting with your hiring committee:

□ Ask what concerns exist for each candidate?

□ Ask how candidate will fit into your corporate culture?

□ Ask if candidate can duplicate their past success in your position?

□ What obstacles will candidate have in achieving the same level of success with your opportunity?

□ What help – training – investment will candidate need from you and can you pay that price?

□ Does candidate have a compelling reason to take your opportunity?

□ What concerns does the candidate have and can you overcome them?

Suggested Answers

Answer is #3. In this question we are asking for the “best indicator” not just a positive sign. After 26 years of executive search and following several thousand candidates, it is clear that the best indicator of one’s future performance is their past performance. People’s behavior follows distinct patters most of their adult life. If they are a “hard charger” they will likely be a hard charger for you. If they were a low performer in past positions you are not likely going to turn them into a hard charger.
Answer is #3. The biggest misconception about hiring – especially hiring sales people – is if they “blow you away” in an interview they are going to great selling for you. We have found no positive correlation with blowing you away in an interview and being a day to day, bell to bell consistent high performer. They may possess sales talent, but sales is hard work and a great deal of self-motivation. After interviewing thousands of sales personnel , (high through low performers), we notice that the top sales people certainly possess a lot of energy but they have a very high work ethic and are very driven. This shows in their past positions.
Answer 3 is correct. Most job postings are a boring job description and list of qualifications. They only attract that 5 to 10% of people currently looking at that time. Unless you are a marquee company like Wells Fargo, Ford Motor Credit, etc. you have to tell people who you are, what you do and what they can become by taking a position with you. The best candidates are not looking for a “lateral move” they want a position and a company that will enhance their career.
Answer #3 is correct. I have a long winded philosophy on this but keep these points in mind. One person will be managing the new hire and that person needs to take ownership of the hire. I have frequently seen other committee members vote down a very strong candidate because he or she seemed felt threatened by the candidate’s experience, education, drive etc. “ Majority rules” and “unanimous or keep looking” often provided for vanilla hires.
Correct answer is # 2. I have seen many Sales Executives and Managers fall into the trap of hiring a candidate who “blows them away” only to see the Sales Rep fizzle in the field. Wanting to start right away means they are looking for a job not a career – bad sign. The best Sales Reps are smart, thinkers and will only move for a better opportunity and will need time to review your opportunity – good sign even though it is counterintuitive .
Correct answer in #1. In the past 26 years, most of calls to us from people who are doing very well, in a good position with a good company. However the position is lacking something such as interesting day-to-day work content or career opportunity . The superior candidates are looking to increase their knowledge, challenge themselves, take on more responsibility etc. Learn what you top candidates are looking for and show them how that can be met with your position.
Correct answer is # 3. A Job Seeker will is looking for a job now and will jump through any hoop, commit to position very early on. They are likely to leave you just as easily in 6 to 12 months! A Career Seeker is looking for career growth and will take time to reflect on your position and company, talk to a mentor and want more information. Give it to them!
I hope you checked all. You should be able to tell the candidate about your industry, company and specific opportunity and where this can take them. Candidates should research your company on the internet and call colleagues to learn about your position to prepare for the 1st interview. However you know your company much better and you need to “connect the dots” for them and put your opportunity in a positive light. You need to do this to attract the best candidates – assume your completion will be!
Correct answer is Yes. Preparing a list of knockout factors will save you time, aggravation and professional embarrassment . I know of a search a company, (not us ), did hiring a CFO. They met a candidate they really liked. Had multiple interviews, met with members of the Board of Directors, important investors. Negotiated an extensive and detailed employee agreement only to find that the CFO had a non-compete that his current company wasn’t going to let him out of! Yikes, heads rolled on that one. We always asked upfront if there is a non-compete .
Answer is again all. Take the time to meet with the hiring committee members . Don’t just ask who they like best . Take the time to figure out if candidate will fit into your culture. Are your processes similar enough to help the candidate succeed or will they impede their success? What will be cost to get each candidate “up to speed”, who will be responsible and how long will it take?