Effective Sales Organization Structures
In nearly every industry and particularly those in B2B markets, the sales organization is the lifeblood of a company’s growth. While these teams are universally tasked with the same goal, namely creating revenue from new accounts and driving incremental sales from existing accounts, we have seen sales organizations structured in many ways, with varying results. Often, these teams are overly reliant on a handful of superstar salespeople and lack the leadership, organization, tools, and accountability necessary to grow to the next level.
Sales organizations that are truly effective grow and evolve over time, often through four phases of evolution:
- Hunter Founder
- One-Man Bands
- Specialists
- Market Teams
Hunter Founder
In the early stages of a company’s development, sales organizations are often composed of the company’s founder or a single sales leader driving the company’s growth. Given the dual role, sales processes and tools are limited or nonexistent. Sales efforts rely on the personal connections and outreach of the founder or single sales leader. Inbound efforts and account management may be performed as part of the service and support organization’s responsibilities, and concerted sales efforts are often a secondary concern at this point.
One-Man Bands
In the next stage of a company’s development, sales organizations comprise a collection of one-man bands, typically reporting to a VP of Sales. Each of these salespeople are responsible for prospecting, qualifying, and closing new business. They are often assigned a specific geographic territory and given quotas as annual sales goals. A variety of activities, including new customer calls, meetings, proposals, and closings, are measured and tracked against targets as each salesperson drives towards their individual quotas.
While this structure can be effective for a period, the One-Man Band model, which relies on individuals to perform the full spectrum of sales tasks, lacks the scalability and efficiency necessary to drive significant long-term growth.
Specialists
Phase 3 sales organizations morph from a collection of individual utility players to a system of specialists focused on one of the four fundamental aspects of the sales conversion process.
- Sales Development – Outbound: These sales reps are the hunters that focus on prospecting and qualifying new leads, which are then handed off to the Account Executives. Often termed Outside Sales, these professionals are in the field, networking and uncovering new potential opportunities.
- Sales Development – Inbound: A second group of sales reps handle inbound, warm leads that come from the company’s advertising, marketing, and other lead generation efforts, including webinars, word of mouth, and online SEO. All inbound leads are routed to this team, and then qualified leads are passed to Account Executives.
- Closing the Deal: Account Executives receive qualified leads from the sales development team and focus their time and energy on closing the sale. Typically, these are the company’s more senior and experienced sales professionals.
- Ongoing Account Management: Newly converted customers are transitioned to a customer success account manager, who serves as an ongoing point of contact, handles documentation and any other onboarding, and is responsible for ongoing customer success and mining follow-on opportunities.
Market Teams
The fourth phase of sales organizational structure builds on the specialist framework, creating multiple teams focused on particular target market segments, product lines, or geographies. Each of these teams comprises a combination of specialists, so that the full spectrum of the sales conversion process occurs within each group. The composition of the four types of specialists within each team may vary depending on the nature of the sales process within a given market. As an example, one team may have an extra Inbound Sales Development Rep to handle higher volumes of incoming prospects, while another may have an extra Account Executive if their closing process is more time-intensive.
Leadership and Process Discipline
No matter which sales organization structure your company implements, effective sales leadership is critical. The best sales leaders create a culture of discipline, accountability, and transparency that permeates the sales team and focuses on key activities known to support the company’s strategic growth initiatives. Activity tracking, weekly sales team calls, rigorous pipeline reporting, and targeted compensation are key tools effective sales leaders use to manage their teams and report out to the company’s executives.
About the Author
Jonathan Brabrand is a Managing Director at Fahrenheit Advisors. His passionate about helping businesses prosper and maximize value to their employees, customers, communities, and owners. Instilled with a spirit of entrepreneurism from a young age, Jonathan draws on his experience as a business owner, trusted strategic advisor, and investment banker to identify and overcome the challenges clients face. Learn more about Jonathan Brabrand.
Editor’s note: Fahrenheit Advisors is a trusted Sponsor of VA Council of CEOs. This article was originally posted to FahrehenheitAdvisors.com.
Keys to Improving Employee Relationships and Productivity
Lifelong friendships are often developed within a confidential peer roundtable setting, and it’s no wonder why. When certain principles of trust and candor are followed, and experiences are shared as part of a “no advice” protocol, nothing is off limits. It’s not uncommon to hear, “I’m closer to this group than I am my best friends.”
“So, initially, that really warmed my heart,” he told the VACEOs Quarterly Luncheon audience on January 24. “But then it started bothering me, because the reason we have these roundtables is not so that we would have better relationships than we have in the rest of your life. It’s so that the roundtables can help you be a better person in the rest of your life.”
Fathelbab is often called in to train and coach VACEOs Roundtable members on how to get the most out of their roundtable experience. In fact, his book Forum: The Secret Advantage of Successful Leaders is required reading for all new members.
“Having friends at work has profound impact on productivity, happiness and company culture,” says Fathelbab. At the luncheon event, Mo introduced his new book, The Friendship Advantage: 7 Keys to Building Relationships that Transform Corporate Culture and Drive Productivity. The content features guiding principles to help you be a better person and leader, and viable ways to help you strengthen employee bonds in your organization.
SUSPEND JUDGEMENT, HAVE SOME FUN, BE VULNERABLE …
For business owners, The Friendship Advantage promises to help them strengthen the bonds that improve employee productivity, happiness and well-being, as well as boost bottom lines through higher retention rates and a richer company culture.
But it’s not easy work being vulnerable and free of judgment, as we learned during Mo’s highly interactive presentation. After one exercise, attendees declared it felt “cathartic” and “fulfilling” to open themselves up so completely to an unknown person at their table. They felt “human” and “real.”
Now, imagine the possibilities.
- Judgment Free
- Mischievous Fun
- Vulnerability
- Reliability
- Shared Purpose and Values
- Sharing and Generosity
- Kind Truth
*Source: Mo Fathelbab Presentation, “The Friendship Advantage;” January 24, 2019; VACEOs Quarterly Luncheon.
Related articles:
- 7 Benefits of Joining a CEO Peer-to-Peer Roundtable
- VACEOs CEO Roundtable Experience: 5 Frequently Asked Questions
- Guided by the Gestalt Protocol, Peer Groups Offer VACEOs Members a Safe Haven
Your Business Just Got a Negative Review. Now What?
We live in an age where it’s possible for companies to thrive or die based on customer reviews. “Reviews are important for almost any small to mid-sized business,” says Chris Leone, president of WebStrategies, Inc. “These days, it’s hard to be a new customer and not see an online review at some point in your buying journey.”
And like it or not, your buyers’ journeys often begin on Google. According to Leone, prospects who search for a type of service in the search engine (e.g., “staffing company VA”) are more likely to choose companies that have strong reviews associated with them.
If a customer doesn’t know your web address and chooses to search using your business name (e.g., “ACME Supply”), they’ll quickly discover reviews of your business along with your website. A search result page littered with low-star reviews doesn’t make a great first impression. Another not-so-great look? Poor ratings on Glassdoor – a well-known site where employees can rate their employers.
To sum: Less-than-stellar reviews can impact your brand image, your bottom line and the likelihood that a star employee will come calling.
ONLINE REVIEWS: A CONCERN FOR B2C AND B2B BUSINESSES ALIKE
Think only B2C business owners should be concerned with customer reviews? Think again. There are myriad review websites that closely examine the services and products B2B companies provide, too – from Amazon Customer Reviews to Which? to TrustPilot. If you own a business, it’s also important to monitor your online presence on sites like FinancesOnline, G2Crowd and bbb.org (Better Business Bureau).
If you’re a small to mid-size business owner with limited resources and time, where do you begin? Leone stresses that any website visible to your prospects should be on your radar. “You can find these by doing a Google search and scanning the search results page,” he explains. “Google will show different review sites for different industries, depending on what’s out there and the intent or mindset of the person doing the search. In short, act like a prospect would and take note of what you see. Then work to improve it.”
YOU GOT A NEGATIVE REVIEW. NOW WHAT?
Halloran is diligent about asking for customer feedback; in fact, he uses a local service to contact customers who’ve used his service in the last 30 days. It’s a great source for garnering positive reviews. His (thankfully) limited experience with negative reviews has taught him that folks are often quick to pull the social media trigger rather than contact a business owner directly with a concern or complaint.
Essential Steps for Handling Negative Reviews*
- Be professional and avoid getting personal
- Thank your reviewers and customize your responses
- Take the time to upload an image with your response
- Indicate you’ve taken the necessary action
*Source: Small Business Association: https://www.sba.gov/blogs/how-handle-negative-reviews
“Typically, what we find is that [a negative review] stems from not necessarily the contact you’ve been doing business with directly, but someone else in the organization that just has a beef, and rather than reaching out to us as an entity, they just go straight to social media,” says Halloran.
Halloran’s approach to reacting to less-positive reviews is based on a key core value of his business: transparency. A typical response includes an immediate acknowledgment of the concern and a thank-you for the feedback; for example, “We’ve researched the situation and found the following… Thank you for bringing this to our attention.”
Most importantly: Be diligent and vigilant, and respond quickly should an issue arise.
Leone agrees that it’s important to respond. “Do so empathetically. Your response is a great opportunity to show your human side and that you’re trying to get better. No business is perfect, and people get that. That being said, if there are recurring trends in the negative reviews people leave, you should worry less about the reviews and more about fixing the systemic problem within your business that’s causing the bad reviews.”
Symbols and Artifacts by Scot McRoberts
“One of the few things I brought home with me was his college ring. Class of 1958, University of Texas, with a huge longhorn on the side and his fraternity letters on the stone.”
Earlier this month, I travelled to Texas to help my sister sort through my dad’s stuff. He passed away in April, having lived a long and fruitful life. As we sorted through pictures and letters, I envisioned the arc of his long and interesting life. I marveled at how much of him was in me.
One of the powerful influences he (and mom) had on me was a love of learning. Doing well in school and going to college was never a stated expectation. It just was. Mom and Dad supported me and my siblings through college, paying the way and cheering us on.
Back to Dad’s stuff. One of the few things I brought home with me was his college ring. Class of 1958, University of Texas, with a huge longhorn on the side and his fraternity letters on the stone. I really cannot remember him not having it on his right hand. I do remember the stories of his college days that I associate with that ring.
What are the things in our businesses and lives that speak to our employees, customers and community? What do these things say to people?
For years, we have given engraved baseball bats to speakers and key volunteers to recognize their contributions. I see them in photos from events, and in the offices of the recipients. I hope they communicate appreciation, that the person “hit a home run” for us, and that we regard them as a heavy hitter.
You probably have symbols and artifacts in your business. These objects can be a powerful part of your culture and how you communicate it. A reminder to stay the course, if you will.
I’ve chosen to wear my father’s class ring now. In a way, the large, heavy piece of jewelry with the chipped stone conjures up the spirit of the man who shaped me. I’m a better leader because of him.
Take a minute to think about the objects in your business and your life that offer direction and meaning. I bet you will come up with some good ones. Please share them in the comments!
Gary Chapman Brings Languages of Appreciation to Richmond
Dr. Gary Chapman is a number-one New York Times best-selling author known throughout the world for his book The 5 Love Languages: The Secret to Love that Lasts. The book, believed to be one of the most widely read in the world, has sold now 12 million copies in English, and has been translated into 40 other languages.
Using in-depth research provided by Dr. Paul White, a psychologist who specializes in helping family-owned businesses, Chapman has adapted the Love Languages principles taught in his original book for the business world in The 5 Languages of Appreciation in the Workplace. Chapman and White’s teachings have benefited employees and individuals across a variety of organizations, including Microsoft, Nationwide Insurance, NASA and many others.
On August 14, in front of a large crowd at the Byrd Theatre in Richmond, Virginia, Chapman treated the audience – which included a select group of VACEOs members – to a behind-the-scenes look at the research and principles behind the book.
APPRECIATION MATTERS. AND IT CAN AFFECT YOUR BOTTOM LINE.
It’s a startling fact: “70 percent of the people who have jobs in this country say they feel little to no appreciation coming from the people with whom and for whom they work,” says Chapman. “Sixty-four percent of the people who leave one job and move to another job say they moved primarily because they didn’t feel appreciated for their work.”
In fact, Chapman and White say the need to feel appreciated at work is the same fundamental need as the need to feel loved in family relationships. Under appreciated employees can create a crippling ripple effect across your business. Team members become disconnected from the organization’s mission, and, soon, complaints to colleagues and drama follow. Your customers notice the lack of dedication to their needs.
On the other hand, when employees feel appreciated, employee turnover is decreased, sick days are minimized, and employees are energized and give more. Your business emits a positive energy, and customers want to do business with you. Customer satisfaction goes up, and you benefit from a more positive relationship with your staff.
But just telling your employees you appreciate them isn’t the answer. “Just as a husband who’s telling his wife that he loves her, and that’s not her Love Language, you tell your employees you appreciate them verbally, you’re getting about 40 percent of your people,” explains Chapman. “The other 60 percent aren’t getting it, because that’s not their Appreciation Language. That’s not what makes them feel appreciated. Words just roll off on them. In order for it to be effective, [your appreciation] has to be individualized.”
APPRECIATION VS. RECOGNITION
Before we speak the language, it’s important to understand the difference between recognition and appreciation.
“Recognition is largely about behavior,” Chapman writes in his book. “Appreciation, conversely, focuses on performance plus the employee’s value as a person. Recognition is about improving performance and focuses on what is good for the company. Appreciation emphasizes what is good for the company and what is good for the person.”
THE 5 LANGUAGES OF APPRECIATION IN THE WORKPLACE (GARY CHAPMAN)
According to Chapman, each of us has a primary and a secondary Appreciation Language, and each language can have a dialect.
The Five Languages include:
- Words of Affirmation
- Quality Time
- Acts of Service
- Tangible Gifts
- Physical Touch
Chapman cautions the audience not to be alarmed by number five: His background in anthropology tells him there are no human cultures in which people do not touch. He addresses the appropriateness of physical touch in the workplace thoroughly in his book, which we encourage you to read since it also covers specific dialects that are part of each language, and the specific skills and guidelines you need to develop as a leader to effectively express appreciation.
WHAT LANGUAGE ARE THEY SPEAKING?
How can you tell which Appreciation Language your employees and co-workers prefer? According to Chapman, there are three informal ways to find out.
1. Observe their behavior. “Just observe how they respond to other people,” says Chapman. “If they’re always offering to help other people on projects or frequently ask, ‘Is there anything I can do for you,’ you see what they’re doing is Acts of Service.”
2. Observe their requests of others. “If they’re always initiating invitations to lunch with colleagues, you can assume that Quality Time is their language, because they’re asking, ‘Would you like to go to lunch with me?’ So what are their requests? If they’re the person who’s always saying, ‘Would you help me with this,’ they’re asking you for Acts of Service.”
3. Observe what they complain about. “The complaint really reveals a person’s Appreciation Language,” says Chapman. “If they’re saying ‘I can’t ever please him,’ ‘I can never please him,’ ‘I can’t ever please her,’ they’re telling you that Words of Affirmation is their language.”
Todd Mawyer and Dr. Gary Chapman
Ready to empower your organization by encouraging people? Why not purchase copies of 5 Languages of Appreciation in the Workplace for your employees like Todd Mawyer, CEO of TK Promotions, Inc., did?
His plan is to encourage his team to take the language evaluation test that’s included in the book and then discuss what they’ve learned together.
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