The New Sales Period does not have to be so scary!
I have been talking with many salespeople, sales managers and CEOs recently about the end of the sales period and the beginning of the next one. For some it is the end of the ‘Quarter’, for others it is the end of the financial year. The common expression I hear is “We now go from ‘hero to zero’ again. No matter what the result for the last period was, the sheet is wiped clean and the work has to begin once more to achieve the target for the next sales period”. They liken it to “Having climbed Mount Everest, only to find that they must go and climb an even higher mountain next quarter/year”.
This negative perception is counterproductive and contributes to missing the sales target for the ensuing sales period. Sales leaders must deal with this negative thinking if they are to meet the sales targets and ensure the wellbeing of their sales teams.
The biggest issue that sales people and their managers face is not the ability to achieve the target for the next period. The biggest problem is the state of mind that says ‘we are at Zero and getting to the Target next period is terrifying’.
Here are a few thoughts to assist in dealing with this negative ‘New Sales Period Terror’ state of mind.
Pipeline
Analysis of the pipeline will show that far from being at ‘Zero’, you are in good shape to achieve the target sales number as long as you apply the the right amount of focus and effort.
Provided the pipeline has not been ‘drained’ to meet some artificial number at the end of the period (which all too often happens because “HQ” needs the numbers”), there should be good coverage of the Target for the next period albeit in various stages in the Pipeline. Working to progress these opportunities will result in a significant percentage of the Target, if not over-achievement.
If the Target is for sales invoiced, there may be a backlog that will contribute to achieving the Target. This backlog will be from orders that were placed in the previous period but which could not be delivered in that period for various reasons.
Run-rate
Depending on the business, there is usually a background run-rate of sales that can be relied upon to occur in a given period from a defined territory. Whilst this can never be accurately predicted, most businesses have an ongoing amount of orders that will materialise without significant direct sales effort. Again, this means that you are not at ‘Zero’ at the beginning of the sales period.
Annuity or ongoing business
It may be that the business you are in has ongoing orders that are part of multi-year agreements or where there is supply of maintenance services or consumables that the customers will purchase even though these can’t be accurately forecast in advance. Again, these contribute to the achievement of the sales number that must be achieved in the period.
Focus on the ‘Delta’
The ‘Delta’ is the difference between what you can substantially rely on selling and the Target. Once the pipeline has been analysed with the run rate business and the annuity/ongoing business taken into account, it is possible to establish the ‘Delta’ figure that must be achieved to make the Target. Without losing sight of the Target, the focus must be on achieving the Delta whilst ensuring that the Pipeline is continually maintained at the appropriate level to contribute to over Target performance for the ensuing sales periods.
Let’s say you have a $1M Target for the Quarter. If you take the attitude that you are at “$0” then you are incorrectly telling yourself that you must sell $1M from a ‘zero base’. Once you analyse the pipeline, run-rate/annuity and backlog, you may find that you have a very high probability of $500K that will close and contribute to your Target. This means that you only have to close 50% of your Target in the quarter, not the entire $1M, whilst continuing to build your pipeline. This demonstrates that you have a far more achievable target in mind rather than a number that terrifies you.
Get focused, not panicked!
Getting focused by taking this approach reduces stress and anxiety. It is realistic and removes the panic that sets in when you are confronted with a task that seems unachievable.
Adjust your ‘Self-speak’
‘Self-speak’, the voice that is in your mind that ‘talks’ to you, is very powerful. If you scare yourself with statements like “Hero to Zero” you are unnecessarily scaring yourself. You are setting your primal ‘fight or flight’ systems into motion. Effective decisions become harder to make because there is a feeling of ‘impending doom’.
Calmly analysing the facts, ascertaining the real task ahead and then defining a plan to achieve the REAL task allows you to leverage your creativity and passion to achieve the realistic target.
Hero to Hero!
Do yourself a favour. Do your homework and make sure that the voice in your head is NOT saying ‘Hero to Zero’! Make sure it is saying “I’m going from Hero this Quarter to Hero Next Quarter because I am already well on the way there and I have a clear plan to over achieve my Target!”
Good luck with achieving your ‘Delta’!
© Philip Belcher
Please contact LSE Consulting to find out how we can assist you to hone your leadership/management skills and grow your business.
LSE Consulting is a specialist management consulting company. The purpose of the company is to assist business leaders to improve their organisation’s results, turn around underperforming businesses/business units and prepare for successful exit. The LSE Consulting method focuses on Leadership, Strategy and Execution, hence ‘LSE’, with a strong emphasis on business strategy aligned marketing and sales. The company was founded by Philip Belcher to assist business leaders through interventions that are based on his 30+ years’ experience in leading, turning around and successfully exiting businesses.
