Tag Archives: s-III

Reactive vs Proactive Sales Management

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From the Ask Tom mailbag –

Question:
We have 15 sales managers and 100 sales reps. We’ve taken top performing sales reps and made them managers. Now as managers they are finding it hard to find time to manage the behaviors of their rep team members. They don’t argue that the more time they spend directing their reps the more productive the reps become. But these dedicated managers are spending nights and weekends catching up with directing (through our CRM) the actions of the reps. The managers are still our best closers. No one on the team is better. How do I coach the manager?

Response:
As the sales manager (of reps), what do you want me to do? What is the level of work?

If your dedicated managers are spending nights and weekends directing their reps, what do they do in the daytime? This description is classic S-II behavior. It appears there is no system, no systematic coaching, no systematic sales planning. It appears things are ad-hoc, reactive and improvised. It is possible to be effective with this strategy, but at what cost? You will burn out your sales managers and begin to experience turnover.

This ad-hoc behavior is your fault. You have not created an effective system (S-III) for your sales managers to work in. Your coaching with your sales managers needs to focus on sales planning, pipeline evaluation and rep evaluation. What are the proactive moves (rather than reactive moves)?

As long as your sales managers remain reactive, your company will experience no better sales performance than it has in the past. Only when you create a system approach to your market, will you experience deeper penetration. And, your system should be operated as a day job, not nights and weekends.
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The Struggle for Emerging S-IV

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From the Ask Tom mailbag –

Question:
It took a long time, but our company has grown. Our business model is a distributor, it’s all about supply chain for our customers. Because our business model is driven by the logistics of incoming and outgoing material supply, we recently promoted our warehouse manager to VP-Inventory Control. For us, it was more than just a change of role title. Our warehouse manager took us through re-binning our inventory, bar coding SKUs, RFIDs on serialized product. He is a really bright guy. But his promotion to VP-Inventory Control seems to have gone to his head. With his new-found power, he has emerged as a prima-donna. In our executive team meetings, he believes that inventory control should be the deciding factor in every business decision for the company. If he keeps this up, he is going to get fired.

Response:
Indeed, the move from a Stratum III (S-III) inventory manager to an (S-IV) is a dramatic change in level of work.

  • S-III – System (creates the system, monitors the system and improves the system)
  • S-IV – Integration of multiple systems and sub-sytems (attention to dependent systems, interdependent systems, contingent systems and bottlenecks)

The focus at S-III system level is internal. We demand each of our systems be efficient, profitably leveraging its resources for maximum output. Your inventory manager did just that with a bin system, bar codes and RFIDs. Kudos.

The focus at S-IV is integration. With an internal focus on inventory management, his new role is to assist in the integration of inventory with all the other systems in the company. It is no longer a matter of profitably leveraging resources for maximum output, but optimizing output with the other systems in the company. It is a matter of how one system’s output (reinforcing system) is impacted by another system’s output (balancing system).

This requires the focus for the new S-IV to transition from internal to external. You don’t have a prima donna personality conflict. You have not clearly defined and communicated the new role, nor its differences from the prior role.

You also skipped a step. How did you know if the inventory manager was ready for these new accountabilities? You didn’t. You blindly promoted and now you have a bit of a chocolate mess. The step you missed, prior to the promotion, was assigning S-IV project work, coaching and evaluating the output. Team members should NEVER get a promotion. They earn promotions by successful completion of project work similar or identical to the work in their new role. -Tom

How to Interview for Passion for Work at S-III

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Before we can interview for interest and passion, we have to define the work. It’s always about the work.

Most S-III roles are system roles, building systems that don’t solve problems, but prevent them. The tools at S-III are work flow diagrams, time and motion studies, schematics, sequencing and planning. The role is typically the manager of a functional team (marketing, sales, business development, estimating, operations, QA/QC, warranty, research and development, HR, legal). Longest time span goals and objectives would be 12 months – 16 months – 20 months – 24 months. Learning would include analytic. Highest level problem solving would include root cause and comparative analysis. Value-add to the organization is consistency and predictability. It is the role at S-III to create the system, monitor the system, constantly improve the system. One of the most important systems at S-III is the people system inside the function.

Managerial roles at S-III are accountable for the output of the team at S-II.

Given a large customer problem, the central question for the S-III manager is, why didn’t our system prevent that problem, or at least, mitigate the damage from that problem.

Interview questions –

  • The purpose of these next questions is to look at some of the systems you built and how you built them. Tell me about a project you were accountable for, containing several steps, that was similar to other projects you completed in the past?
  • What was the project?
  • What was your role on the project?
  • How long was the project?
  • Using this project as an example, tell me about a system you created to solve its problems and make its decisions?
  • What were the circumstances in the project that lead you to create a system?
  • Step me through the system that you created?
  • How did you communicate the steps in the system to the team?
  • How did you test the steps in the system to make sure they were in the best sequence?
  • During the project, did any of the steps in the system change?
  • When steps in the system changed, how did you track the changes and modify the system?
  • When the project was totally complete, what parts of the system could be applied to other projects?
  • Think about the next project where that system was useful?
  • What was the project, why was that project a candidate to use the same system?
  • What modifications did you have to make to the system, so it had a positive impact of this next project?
  • How did you document the modification to the system?
  • How was this system important to the effectiveness of your functional team?
  • Tell me about another system you created related to a project in your company?

Each of these questions asks for a specific piece of data about the candidate. And though we are trying to find out about an attitude or feeling, the questions are still laser focused on the work.

How to Interview for Passion at S-I Level of Work
How to Interview for Passion at S-II Level of Work