If you get put on a PIP, it's over

Published: Wed, 07/05/23

July 5, 2023

TOGETHER WITH

Ahhh. It’s a brand new quarter; time to sit back, relax, and enjoy the— oh, who are we kidding? By Friday, our resting heart rate will be back to 84 beats per minute... such is sales life. In this week’s issue, we find out why many sales reps struggle at managing, share a Sales Fail about proper hydration, and give some advice to a rep whose friend isn’t very good with finances.

NUMBER OF THE WEEK

According to a recent survey, 84% of all sales training is lost after 90 days. This is mainly due to the lack of information retention among sales personnel.

Source: Spotio

SALES ROUNDUP

Here’s what’s happening in the sales world this week:

What should an employee do when they’re put on a PIP? A former VP of HR at Microsoft says that if your company puts you on a Performance Improvement Plan (PIP), then you should immediately start looking for a new job. Chris Williams, who now works as a consultant, says that PIPs rarely lead to a preferable outcome, and will stay on your record with a company whether you survive or not. You can read the article here.
A car salesman at a Denver dealership was run over after a customer took off in the dealership’s Jeep. The customer came in and said he didn’t want to test drive the car, but just wanted to hear how the Jeep’s engine sounded. When the salesman started the engine and popped the hood, the thief took off, sending the salesman under the vehicle where he was run over. The salesman suffered serious injuries, but is recovering, while police are still searching for the thief. You can read the full article here.

FEATURE

Jacob Lund/shutterstock.com

According to a Harvard Professor, this is why salespeople struggle at leading

It happened! You finally got that promotion and moved from selling to leading a team of hungry (or ambivalent) reps. The transition isn’t always easy — becoming a leader doesn’t automatically happen when you change your LinkedIn title. Oftentimes, salespeople, driven by their autonomy and self-reliance, struggle when assuming leadership roles that require overseeing and managing a team.

The transition from being an individual contributor to leading a team demands a shift in mindset, priorities, and skills, which can be challenging for reps who are used to being lone wolves and excelling at independent work. Consequently, many sales leaders find it difficult to let go of control and tend to micromanage their team members, which, as everybody knows, is a recipe for bad feelings, high turnover, and complaining in text messages (never over slack, they can probably read that).

According to Frank V. Cespedes, author and professor at Harvard Business School, there are a few reasons behind the micromanagement tendencies exhibited by sales leaders:

Salespeople often get promoted to leadership positions based solely on their individual sales performance, without receiving adequate training in leadership skills. This lack of preparation leaves them ill-equipped to effectively delegate, provide feedback in a constructive way, and empower their team members.

Secondly, sales leaders can struggle with trust issues. Their intense focus on achieving sales targets and meeting goals can create a mindset of skepticism, leading to a reluctance to delegate and a desire to maintain tight control over the sales process (“what do you have cooking today?”) This lack of trust undermines morale, diminishes employee engagement, and makes it so that reps operate from a position of distrust rather than cohesiveness.

But fear not, because there are several things sales orgs can do to address these challenges and ensure more successful transitions into leadership roles.

First, companies should invest in leadership development programs. We train reps, why not train sales leaders too? Ongoing coaching, mentorship, and feedback can also aid in building the confidence and capabilities of new leaders.

Next, organizations should encourage a culture of trust and empowerment. This can be achieved by clearly defining roles and expectations, promoting open communication, and fostering an environment that values collaboration. Creating opportunities for sales leaders to collaborate with their peers and learn from experienced mentors can also broaden perspectives and enhance their leadership acumen.

The journey from salesperson to sales leader can be complex, and sometimes ends in disaster. Micromanagement tendencies often arise due to a lack of leadership development and trust-related challenges. But companies that truly care about creating great leaders can invest in leadership development programs, foster a culture of trust, and provide ongoing support. Oh, and they should always make sure the sales managers are compensated fairly. Otherwise, why would anyone ever want to step away from an IC role?

STOP LEAKING REVENUE NOW!

"I Imagine this: You're a sales leader in a thriving business. Your team is talented, your products are top-notch, and there's no shortage of potential customers.

Yet, month after month, your sales reps are missing quota, they can't tell you where deals stand, and you can't rely on your forecasts. Money is slipping through the cracks, but you're not sure where or why.

This is revenue leakage - the silent drain lurking in every organization.

To paint the picture in dollars, research from Boston Consulting Group reveals that go-to-market weaknesses amount to a staggering $2 trillion (yes, trillion) every year in unnecessary costs and lost revenue.

But there's a solution.

Revenue Grid's newly released free report dissects revenue leakage, shedding light on its causes, costs, and most importantly, its cure.

By sealing the leaks in your revenue pipeline, you could:

Slash your go-to-market costs by 32%
Boost conversion rates by 25%

Stop losing winnable revenue. Download your free report now and fortify your sales pipeline against leaks.

GET THE FREE REPORT

MEME OF THE WEEK

Source: Instagram -- Sales Humor

QUIZ

When was the concept of cold prospecting first introduced?

A. 1873
B. 1129
C. 1909
D. 1928

SALES FAILS

Each week, we bring you the most cringe-worthy sales moments from across the web. To submit your sales fail story for consideration, click here. (Don't worry, you'll remain completely anonymous).

My worst sales experience happened when I was selling solar door to door in the southwest. It was my first sales job and I was still a young pup. There were about a dozen of us who traveled out of state to do this. We took two company vans and stayed in a pretty cheap motel for two weeks, then the plan was to move on to another area.

We were not supposed to drink, or at least that’s what the “rules” were. But there were some guys who were back for their second or third year and they basically said it was fine as long as we weren’t obvious about it and didn’t do it in front of the managers. Our second night there, about half of the team got really drunk, myself included. I had drank plenty of times before, but I wouldn’t call myself a big drinker, so I think my tolerance was a bit lower than most.

The next morning, we went knocking doors. The weather was absolutely brutal. It was over a hundred degrees and there was absolutely no shade or cover in the suburban neighborhoods where we were selling. I made it through about a dozen houses before I started feeling really woozy and lightheaded. I wanted to tell my manager, but I was honestly afraid of losing my job.

When I got to my next house, a woman answered the door and I went into my pitch. But after a few minutes, I thought I was going to pass out, so I said, “excuse me,” and sat on her front steps. She asked if I was okay and I told her I didn’t feel well, then proceeded to get sick in her bushes right in front of her. Well, that didn’t make me feel better, and she ran in and got me some water then asked if I wanted to come in the house where there was air conditioning. I mumbled something then leaned my head against the porch railing and didn’t speak. I felt like I was going to die.

The woman ran inside and called 911. A short while later, there was an ambulance and all of my coworkers were huddled around this house, with the neighbors all watching to see what was happening. It turned out that I was severely dehydrated and I had to go to the hospital and get my fluids back up. After that happened, I was fired from the company, because they tied it back to the drinking. No warning, just sent me home and ended my contract. Not sure if there’s a lesson here except drink more water and be careful when it’s really hot outside!

Anonymous Location withheld

GRAPH OF THE WEEK

Source: LinkedIn Poll -- June 2023

WORTH A PEEK

What is one of the most overlooked ways to stand out among the competition? If you guessed talking really loud, you're wrong! The answer is... gifting! Gifting is an incredibly effective but rarely used strategy to capture attention and build good will. Our friends at Reachdesk put together a Q3 gifting guide to help you explore some ways to delight your prospects and turn them into buyers. Check it out here.

ASK THE QUOTA

Want to submit a question and be featured in our advice column? Click here. (Don't worry, you'll remain completely anonymous).

Dear Quota Team,

I am actually writing this question for a friend. We are both in sales and were having a conversation about this and I suggested that we write in and get your thoughts. I hope you run this so that I can show him your answer.

Here’s the problem: my friend, who works in sales and is decent at it (he would say that he is amazing), is constantly low on funds. This is despite the fact that he makes just over 100k per year at his job, and another 5k or so a year in veteran’s disability payments (he was injured in Iraq).

Last year, he made over $130k, but at the end of the year had nothing saved and was always asking me to borrow money. He always pays me back, but it seems ridiculous to me that he’s in this situation, since I make just a bit more than he does at the same company and never run into these issues.

He rents an apartment that’s not expensive at all, and doesn’t have any kids or anything. He is also sober, so it’s not like he is wasting the money on booze or drugs. I suspect that it’s just a budgeting issue but he doesn’t take me seriously. Can you please respond and explain that a single person making that much money shouldn’t have to borrow money from his best friend all the time? Thanks.

Confused in California

Dear Confused,

This isn’t the type of question we normally take on, but let’s give it a shot.

Your friend makes about $130k a year, which is $10,833 a month. For a single person without substantial debt (we’re assuming you would have mentioned it if he had any), this should be more than enough to pay bills and save some money. So if you’re looking for some validation for your POV, you’ve got it.

What to do? Since he’s your good friend and you’re willing to help him, you should put together a spreadsheet to track his income and expenses. This should help identify where most of the money is going. Break down the income and expenses by month, and don’t forget to take 40% or so off the top for taxes.

Once you’ve gone through everything, you should have a better idea of what your friend is doing with his money. And if he’s serious about wanting to save, then he’ll be thankful that you took the time to put this together. But, as with anything in life, he has to want to be financially responsible. Sales reps aren’t exactly known for their frugality, but there are plenty who are smart with their money. You both presumably work hard, so it makes sense to make sure your money isn’t going to waste. Good luck to you both!

Quiz Answer: A – 1873 (you can read the source article here)

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Today's email was written by Ken Kupchik, Erica Furgiuele, Steve Rado, and Emily Hill.

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