Preserving Fair Play: The Importance of Objective Measures in the Workplace

2012: This is to be a year replete with discussion over what it means to be British. As the reigning monarch celebrates her 60th year on the throne, and London prepares to host the world’s most prestigious sporting event, another British hallmark is to be enshrined: the sense of fair play.

The final months of 2011 saw the passing of the Agency Worker Regulations (AWR), which ensured equal rights for all workers, including those employed on a temporary basis. The passing of the AWR mandates that, after a period of 12 weeks, temp workers are entitled to the same rights and protections as permanent staff.

Now that casual work is not so casual anymore employers will be obliged to provide annual leave, sick pay, rest breaks and, most importantly, justification of dismissal. Rather than simply letting staff go, employers in 2012 must follow a dismissal procedure and evidence an employee’s clear inability to satisfy the requirements of their role before terminating employment.

This is great news for that traditional British value: fair play. No longer can the unscrupulous profit from the exploitation of the nation’s unemployed. However, the new legislation outlined by the AWR does leave all employers more vulnerable to charges of unfair dismissal. This means that it’s now more important than ever for organisations to utilise clear and objective measures of staff performance in order to corroborate claims of poor practice and justify dismissal where necessary.

Research by Silent Edge into the effectiveness of competency frameworks has found that objective measures are instrumental to ensuring accurate information about individual capability. A competency framework is a methodology that measures staff’s ability to fulfil particular requirements of their role. However, such assessments are open to manipulation. Subjective opinion can yield misleading results, and staff might be unfairly penalised (or rewarded) because of naiveté or favouritism.

In fact, misrepresentation of employee ability is rife. The competency framework study – published in April 2012 – found that only 8% of HR Directors are currently in a position to identify what good behaviour looks like. Furthermore, just 33% of participants felt that their organisation objectively measures staff competency. Without the ability to accurately gauge staff performance, employers will struggle to demonstrate objective justification in cases of unfair dismissal.

Picture this: an employer, Alison, has always had a particular aversion to her Sales Manager, Joe. She dislikes his attitude, politics, even his hairstyle. Of course this is not, in itself, grounds for dismissal. However, Joe has begun underperforming at work. He’s faced several warnings, but failed to improve. Alison then has the responsibility of proving objectively that Joe is failing to fulfil the requirements of his role. If she were to simply reel off a list of anecdotal evidence about Joe’s flaws then this could well fall short of justification for dismissal, after all, she never liked him anyway. However, by supporting her case with evidence garnered from impartial measurement, Alison can demonstrate, in a completely unbiased way, why Joe is going to be let go.

Lance Mortimer – Performance Coach at Silent Edge, and author of the recent research into competency frameworks – has posited that the impact of the AWR will be felt across the business sector. “It comes down to this”, he observes, “The world of employment has changed significantly. Employees can’t just be dismissed on a feeling. You need to be able to evidence reasons why”. As a consequence of this legislation, objective measures are now more important than ever to the protection of both employer and staff.

2012 is to be a memorable year for Britain; a year of impressive display, and shared appreciation. But perhaps our greatest source of pride ought to be our commitment to equity and fairness. At a confusing and tumultuous point in history, it is this straight-forward, non-partisan approach that will protect both the powerful and the most vulnerable in society and ensure the preservation of fair play.

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Should sales be taught in schools?

Russell Ward, CEO of Silent EdgeI find it astonishing that sales is not taught in schools, on any Business Studies course whether it be an A level, HND or degree or on any MBA course other than Cranfield’s. Marketing is, but not sales. They are completely different disciplines and to learn how to sell is a lifetime skill unlike marketing. Why is a skill set which is so essential ignored?

If it was taught at grass roots then perhaps we would not be facing a recession in the UK as so many more people would be equipped to sell properly. If we do something about it now then the next time we face this situation (which we will) we will be prepared.

Every business in the world has the need to sell. In the B2C world a lot of “selling” is done by Marketing. In the B2B world nearly all the sales are as a result of a “selling” intervention supported by Marketing. Very different scenarios.

Every business that operates in the B2B space needs to be able to sell and will normally employ a sales force of some size. The vital fulcrum of business is sales and revenues because without them the business won’t exist.

The biggest profession in the world is sales and some of the largest departmental headcount in many blue chip organisations are the sales people. So why isn’t it taught at grass roots?

Imagine the impact on the GDP of the UK if all school children were taught how to sell from 16 – 18 years old. Sales might not be for everyone but then neither is Maths or English, and yet it is compulsory to learn those subjects at GCSE. So much of what is taught at does not prepare children for later life and is not practical.

Children in the UK are facing a very different situation to those a few years ago. The prospect of being £40,000 in debt at the end of their time at University is no longer an option for many. That would take 13 years to pay off at £250 per month.

I have a 16 year old and we have been discussing the subject of going to Uni. My advice to him was unless he was considering going into a profession such as law, accountancy, medicine etc, then he should forget Uni. Even now many students that are qualified in a profession are not guaranteed of a job at the end. I know many sons or daughters of friends who are struggling to get junior law, architect or accountancy roles.

A really good option is for children to go into sales. Top flight qualifications are not essential to be good in sales. What is essential is to know how to do it professionally. Would they rather be £40,000 in debt at the age of 22 or have £40,000 in the bank? What other role can consistently give you the chance and possibility to create wealth at an early age?

Sales might not be for some at school, but at least learning the skill will enable a future accountant to negotiate better. It’s a lifestyle skill. Learning how to listen, question, build value propositions, handle objections, negotiate, build creative solutions having taken on board the relevant information, persuade and build rapport amongst many other things, will give people such a foundation of great capability.

It reminds me of a situation I found myself in many years ago when I have the chance to present to the Managing Partner of a top 5 accountancy firm. I was told he was highly intelligent, had a short attention span in meetings and was a thoroughbred accountant. I knew I had to get his attention as fast as possible so this is what happened:

“Do you mind if I ask you a question?” I asked him

“Please do” he replied

“How long would it take for someone to become a junior partner in your organisation from leaving school if they were one of the strongest candidates you could find?”

“10 years would be absolutely exceptional” he replied

“About the same amount of time it takes to become a top flight sales person then” I said

The look on his face was a picture. He was horrified that I have compared sales to the profession of accountancy. I knew at that point I had lost him and the meeting was fairly pointless form here on in. So I asked him

“Have you ever sold before?”

His brow furrowed and he looked like he was sucking on a lemon  “Never” he said

“Are you married?” I asked

“Yes” he said with a quizzical look on his face

“Well you have sold at least one time in your life then”

That meeting has stuck with me for the rest of my days. It was worth it because of his incredulity of my comments and just confirmed how sales is considered by many in the UK. A dirty word, not a profession, not to be taken seriously…………

And yet without it no business would survive. So why is it not taken more seriously?

Every Business School has a MBA course and yet there are no sales modules on them (other than Cranfield’s). I did Business Studies at Bristol and then went into sales. I was clueless about how to sell or the discipline of selling so I learnt from my manager, on the job and on live clients. I lost so many deals due to the mistakes I made, or the poor advice and guidance given to me by my manager.

Had I been taught how to sell on my Business Studies HND course I would have been far more successful which would have in turn boosted my motivation and earnings (for me and my company) considerably.

So many aspects of the sales industry leave me aghast with amazement. It has been ignored as a profession and the education sector needs to wake up to the power of sales skills and the impact they can make on the economy, confidence and general well-being of people.

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Selling as a Science

By Russell Ward, CEO Silent Edge

Changing behaviour to improve performance is what we do. We work with sales managers across a range of industries to coach and develop their staff to deliver increased productivity and sales.

I recently read a piece in The Economist – http://www.economist.com/node/21533371 -which reinforced the need for a change in attitude towards the sales profession. The notion of changing selling from an ‘art’ to a ‘science’ is one that everyone at Silent Edge subscribes to.

The standardisation of sales practices enables benchmarking for the purpose of improving performance. At Silent Edge, we conduct extensive research into efficient sales practice, in order to determine an objective mode of sales evaluation. Thus, our competency framework was born; the first in the sales industry.

These objective evaluation methodologies are not just important for frontline sales staff, however. Sales Managers, as the pillar of the sales force, must also be developed to manage, motivate and coach while driving revenue.

The results of an objective evaluation and ongoing coaching are invaluable. Employee morale and motivation levels alone are improved by this time investment in their personal development. This is before you consider the impact that their improved performance will  on overall sales and revenue.

Our research, in conjunction with Cranfield School of Management, suggests that only one in five deals gets successfully closed. The problem is poor measurement of sales competence coupled with inadequate training to redress any shortcomings. Most firms assume that people are either salesmen or they’re not; where training is offered it tends to resemble sheep-dipping – everyone is treated the same irrespective of individual strengths and weaknesses.

Surely it’s time for a change?

 

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Selling still a dirty word in the Insurance industry

Having recently featured in POST Magazine, I wanted to share with you my views on sales development in the Insurance industry specifically. Those of you who have read my previous entries will already be aware of my passion to make sales a respected profession.

I would love for sales to be taught in schools from 16 years onwards, because even if a school leaver does not go into sales, they will have learnt a life skill. However, there is a stigma in this country associated with being a salesman and nowhere is that more prominent than the Insurance industry.

I have been in the final two selected companies for a number of pitches to Insurance companies only to be told that we were too “salesy” and that if they introduced a system such as ours that focuses on sales and selling, the Underwriters and others in the company would reject it outright and may even leave if enforced.  And yet the goal was to increase income by tens of millions.  When I asked how they would do that if they did not improve sales skills, the response was that they would focus on Business Development. What’s the difference?

Taking this a stage further, if sales is a dirty word in the Insurance industry then what about sales management?

If you are not training in sales skills and, more importantly, not supporting this with coaching from the sales manager, then how will you increase revenues?  If “sales” is a dirty word then the core skills of the managers to manage sales people will be deficient.

It is no wonder that we see the capability of insurance sales people to be the worst in any industry. Our system objectively measures the capability of a sales person in a live customer or broker meeting so we have hard evidence to prove it.  However, the companies that embrace our approach use that data to develop bespoke training programmes, and they use it as a platform for the sales manager to coach their sales people and sustain the learning.

One such company was Ecclesiastical Insurance Group. They realised that if they were to achieve their revenue and new customer goals they were going to have to do something radically different to what they had done before. They realised they needed to embrace sales whole heartedly and install a full on sales academy.

The result was an increase in revenues by 16% in a year, and for every £1 they invested in the programme and sales academy they got £9 back in new business. A convincing return on investment from the people that were “selling” Ecclesiastical and a bold change in their culture.

However, once the team at Ecclesiastical realised what they could achieve and how it would benefit them personally as well as their clients, they put aside the stigma of sales and absorbed the new learning as a new skill set and started applying it in every client meeting. Even the clients commented on how different, refreshing and professional their approach was.

There are a lot of people in the Insurance industry that don’t want to change, are scared to do so and will not accept that new methods and thinking is needed in world that has changed so dramatically since 2008.

Prior to 2008 most industries were booming.  The number of sales people in the UK expanded rapidly and they became very good at order-taking.  But in 2008 the order-taking stopped and revenues began to suffer.  Companies realised that, more than ever, sales forces had to start differentiating and selling in a competitive market.  It became more obvious who had invested in the right recruitment and development for their sales forces.  Unfortunately this wasn’t generally the case.

The research study Silent Edge conducted with Cranfield in late 2008, early 2009 showed that only 12% of new business people, 4% of account managers and 2% of telesales people had the necessary skills to do their jobs well.  Now budgets are being squeezed, but Insurance companies need to invest in the people selling their business.  Buying a two-day training course won’t make any difference.  Changing skill sets and behaviour takes longer and requires an approach which embeds the learning and makes it relevant to each individual.

The good news is that the skills and behaviours required for effective sales or business development, whatever you prefer to call it, can be evaluated, learnt and integrated to become ‘business as usual’ for a whole sales force.  Times have changed and companies need to adapt quickly if they are to stay competitive.  The results can be hugely positive, in terms of revenue, but also in terms of employee engagement and satisfaction.

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Employee Motivation – The Key to Retention?

‘A motivated workforce is a productive workforce’; a mantra which not many would dispute.

It’s the way in which we motivate employees that is a matter of fierce debate.  We work with the sales forces of many corporations and often we’re met with the Taylorite view of motivation through performance related pay.  Typically we respond by asking HR teams and the trainees to consider that learning and development can offer more effective employee motivation that reinforces loyalty to the company.

Consider for a moment contact centre staff.  It’s a challenging industry where you often find record levels of attrition.  Having worked with contact centres across a number of sectors, we have seen the operational and technical training that is offered alongside the incentive-based pay schemes.

The fact remains, however, that these call centres are still not always productive. Many contact centre staff still lack training in customer services and sales. While this may suffice to meet the business needs in the short term, it does nothing to develop the individuals concerned.

The contact centre example merely serves to illustrate a point, and is in no way the only relevant environment in which this applies. Across a wide range of industries employers do not appear to invest time in the cyclical process of evaluation, development and coaching.

The issue of key importance is that when individuals are able to see the investment in time and money that a company makes in developing their personal skill set, they are motivated by the potential to grow professionally. Employers who are offering the opportunity for their staff to learn and develop offer a greater level of employee satisfaction.

Having worked with clients across many sectors, we consistently see the business case for investing in personnel development. In order to motivate for change, and for this to be sustainable, call centre staff must clearly be motivated to perform. The financial impact of an increasingly productive workforce is considerable.

Please share your thoughts with us.

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The Value of Accurate, Objective Assessment in the Recruitment Process

By Russell Ward, CEO Silent Edge

The cost of recruiting the wrong person is huge. It will cost you the equivalent of their whole year’s salary if you have to get rid of them after six months. So how seriously do you take your recruitment and what process do you use to ensure the person you’re interviewing can really sell? CVs and numbers won’t do it!

Personnel Today – http://www.personneltoday.com – consider that “recruiting the wrong person for a key job may be one of the most expensive decisions any organisation makes” – http://bit.ly/lKQotR. I understand the pressure that this creates to make the right recruitment decisions.

Particularly in the sales profession; recruitment and selection processes can be timely and often ineffective. HR review – http://www.hrreview.co.uk – remind us of the importance of a recruitment process that is founded on “a comprehensive, objective assessment of the candidate’s suitability and their skills across the entire performance spectrum” – http://bit.ly/mmVWRc. I believe that this is of heightened importance in a sales role as these employees have a direct connection to business revenue streams.

On the contrary, the importance of attracting and retaining talented employees has never been a matter of dispute. It is for this reason that our framework provides a suite of tools for HR – identifying, measuring, progressing and developing talent. We’re not just about sales training. Our strengths also lie in recruitment, middle management and sales leadership.

Professor Lynette Ryals, of Cranfield School of Management highlighted this; “The competencies Silent Edge have defined to benchmark sales people really help drive sales performance. The model can also predict how likely a sales person is to close a deal’’. This type of measurable, accurate assessment is objective, and when utilised as part of the recruitment process can offer real insight. Does your recruitment process represent a reliance on subjectivity or impartial measurement of a defined skill set?

What I hope to get across is that an accurate, objective assessment in the recruitment process can no longer be considered as important. Rather; it is invaluable – and the key to developing a productive, even awe-inspiring, sales team!

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Attracting the cream of UK talent to sales

By Russell Ward, Silent Edge CEO

Your average UK salesman is often greeted with disdain and, more often than not, disregarded.  Consider the contempt with which many of us greet telesales staff, often I have to admit, with good reason.  But the problem lies in the fact that companies across the UK totally underestimate the importance of sales to the company’s – and the country’s – success. Looking ahead, I want to consider how we attract the cream of UK talent to sales.

At a recent Sales Club meeting (http://www.thesalesclub.co.uk/), sales executives from all industries debated the current state of the industry. This included key questions such as whether the UK should emulate the US attitude to sales professionals, and whether different types of sales are met with different levels of respect.

As a result of our recent partnership with the club (http://bit.ly/eEWIXt) I have been heavily involved in very thought provoking discussions, for example…

How do you make sales a credible profession? Is it not feasible that qualifications, standards and maybe even university degrees in sales would improve its respectability? Is the fact that these are missing at the heart of the problem, and the reason for a lack of credibility? Marketing, management and other functions boast a wide range of possible accreditations and qualifications which our industry must now consider seriously.

One of the key issues is that the importance of the sales function is underestimated. Our blue-chip organisations wouldn’t survive without a successful sales team. Without driving sales, the figures in the boardroom just wouldn’t stack up.  Companies have spent the last few years cutting as much cost out of their business to improve the bottom line, now CEOs are seeking ways to improve the top line and investment in sales is their conclusion. Surely, therefore sales should be seen to underpin all business. Our team at Silent Edge has always understood this and we’re focused on developing these talented people, often turning around an impressive 15% increase in profits.  Some of our clients have experienced growth of well over 100%.

So as you can see I’m a staunch advocate of improving the credibility of the profession; building an industry which talented and ambitious young people can aspire to work in and one which sales teams are proud to be part of.

I’d be interested to hear your views…

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Talent Development delivering consistent and measurable ROI

Our unique and award-winning approach empowers sales managers to objectively evaluate their teams against industry best practice competency frameworks in live selling situations.

A pioneering technology platform and tailored training programmes are producing extraordinary results and long-term performance improvements in some of the UK’s biggest organisations. What’s more we leave our clients with the tools to continue coaching and developing their people for years to come.

Our clients have seen revenues increase by a minimum of 8% annually. Last year four of the Sales Academies we installed enjoyed their best ever year of sales during the biggest recessionary period for decades.

Our Sales Academy helped a leading broadband provider achieve a 126% increase in sales, 86% more conversions and a £7m rise in profit year on year. The Pay Monthly team brought in 23% more sales and £15m in profit. Thanks to great results, and our emphasis on creating a coaching culture, our client also enjoyed a significant increase in employee satisfaction.

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