Managers know which sales team member isn’t pulling their weight. But making the cut is complicated. Join us this month as Malcolm and Frank dig into this timely topic.

One of the hardest parts of a Little League manager’s job is cutting a player from the team. For distributors, it’s even worse. Oh, it isn’t tough to cut ties with an obnoxious person, a liar or a thief. But sometimes the person getting cut is a really nice guy. When you look at the bigger picture, the real issue is your team may never be successful while that individual plays center field. Maybe he’d do much better off in another role or even in the dugout.

It’s a coaching decision all right, but with external repercussions. These decisions always impact customers either in a big or a little way. The point is, it’s sort of a sales physics. For every sales action there is probably an equal and opposite customer reaction. (How’s that for a weird twist?)

In this edition, Malcolm and Frank address the right way to pull a team member, customer issues and all.

Frank: “Malcolm, these things are never easy. They’re darned costly actually, especially when you don’t see a positive return! Training a salesperson takes big bucks nowadays. Look at this situation with Mr. Congenial-but-Unsuccessful. He’s trying hard but he just hasn’t grown our business or his accounts. We hated to do it but it just had to be done. You won’t be seeing him anymore. What are your thoughts on this anyway?”

Malcolm: (picking himself up off the floor after having been knocked over in total shock.) “Gee, Frank, I can’t believe you’re actually asking me a question related to performance of one of your team members. Are you sure you’re a real salesperson? I hope the Sacred and Sacrosanct Sales Association for the Protection of Sales Secrecy doesn’t learn of this. You’ll be disbarred. They’ll take away your Hear no Evil, See no Evil, Speak no Evil pin. After all, I’m only a customer, right? What beneficial input would I possibly have in this?

“Sorry, buddy, you caught me off guard there. It’s just that in all of my decades working with sales folks, I don’t believe I’ve ever had a single sales manager call and say, ‘Hey, Malcolm, just checking to see how you and so-and-so are working out. Is he/she a good fit for you?’ (OK maybe once but that’s only because he was drinking and needed a lift home.)”

Frank: “What? You mean no one ever even asked the question? No wonder you fell over. I thought it was just the hooch.

“But for your information, I know most of the time our internal performance isn’t talked about with the customers but it should be. We’ve always tended to keep this to ourselves in the past, but unless a sales manager attached a hidden microphone and camera to everyone’s forehead, it would be impossible to know what happens out there, right? OK, so we don’t often ask the question. Maybe we should.

“But now that I am asking the question, what are the warning signs you might see that sales managers should look for to see if a salesperson isn’t meeting the customer’s needs? You know, tell me some hints a customer could pass along that could make a difference before we end up doing something drastic and paying the price after the fact.”

Malcolm: “Gee, Frank, when we started switching out your business to your competitors, that might have been a pretty good clue, don’t you think? Oops, did I say that out loud?

“I’m kidding. Let’s back up a bit to what you started with. You always make a few good points in spite of yourself, buddy. You hit the nail on the head when you said it costs a lot of money to train a salesperson. We all agree on that. It’s a fact of life when hiring anyone these days.

“So tell me, out of curiosity, what do sales managers traditionally look at to see if their investment is paying off? Sales graphs and/or numbers, right? Well, Frank, that shouldn’t be their first clue. Here’s what should happen first. Your first step should be that phone call to your customer. Simply and calmly say to your customer something like, ‘How is buddy (buddette) working out?’

“You are a team and as a team you help each other out, you work together and build each other up in areas of weakness. Is that not showing confidence in the team member? No. It’s for everyone’s good. Will you still have to fire them? Maybe, but you go through the exercise first. It can save you a bundle.

“It should be a matter of policy to explain at the outset (upon hiring) what the sales team and managers do to support each other. A manager telephoning a customer for feedback is going to hear all kinds of things both positive and negative, but even if the response is negative at least you can address the issues. Maybe you switch players; perhaps you just smooth the waters with a word here or there. After all, if you can sell product you can sell the salesperson, surely.”

Frank: “Well, sometimes. Sometimes the customer just won’t give the sales rep a decent chance.”

Malcolm: “Then that’s when you pull the player, Frank. Either way, it’s just a shame to chuck that investment when there’s a chance to help someone become productive and profitable. What does a phone call cost anyway?

“Customers will spill their guts if there’s even a remote chance of better service. They’ll gladly tell you what they see and interpret from their experience with your people. But they need first to be asked the question! (OK, sometimes they call screaming complaints but isn’t that a sign that you waited too long to ask?)”

Frank: “I agree with what you are saying, but remember these are nice guys. Their customers like them on a personal level, too. I have had customers make positive comments about absolutely horrible salespeople. Then congratulate me six months later when I moved the guy out of the organization. Truth is, customers just don’t want to get a nice guy in trouble.

“Got any thoughts on how to cut through the smoke?”

Malcolm: “Remember Star Wars? Let me put on my Jedi Knight costume and provide you with some sage advice courtesy of George Lucas. Luke, I mean Frank, trust the force, listen to the force, act. If you suspect the guy is not performing, you are probably right. It’s part of being an engaged sales leader and manager.”

Frank: “Are there other signs we could watch for? Some organizations wouldn’t go for calling up their customers to rat on their reps. Some managers don’t have the time or, in some cases, don’t take the time. It’s sad, but some sales managers just aren’t that interested. Traditionally, they just let one person go and hire someone else. It’s life in industry.”

Malcolm: “No, Frank. It used to be that way but not anymore. As you said, it’s just too costly. We can’t fire good people and train new ones like we change socks. We need to use our heads nowadays. Old school managers should be the ones let out to pasture. Get rid of that lazy mentality and start to manage, that’s what I say. What do they do in the majors? Goodbye old coach, hello new one. It’s the team that counts, not the individual.

“But here are a few signs there could be a problem in paradise.

• How many back-orders are occurring with that customer? Are these dealt with quickly?

• How many invoicing problems are there with that customer? A good salesperson digs into these regularly. Your credit department can probably tell you a bit about salespeople whose customers constantly complain.

• How often does the sales rep visit or contact that customer? Are they really bringing value to the call or are they just dropping by unannounced with a weather report and sports update?

• Does the sales rep ever ask questions about the account from anyone else on the team?

• How many calls are inside sales reps getting from certain customers?

• What is the tone of the calls? Are they obviously irate?

• What kind of feedback do you get at team meetings?”

Frank: “But what can you see from your own perspective that would help?”

Malcolm: “What I often see right away is:

1) An awkwardness which is usually associated with being unprepared or unsure of him/herself. When reps don’t have the answers, they lose confidence. Their voice and body language gives a lot away.

2) Reps in trouble on one account may also be in trouble on others. Check to see how they are faring across the board.

3) When in trouble, reps tend to make many excuses. They tend to fail in following through on their promises. A good salesman takes responsibility for everyone’s mistakes. A lousy rep shrugs and passes the blame to others on the team.”

Frank: “OK, so now we have done our homework, we have quietly confirmed things with key customers and we are about to cut someone from the team. What does this look like from your viewpoint?”

Malcolm: “I think it’s better to relocate that team member to another role if at all possible. But today everyone understands why you might not be able to do that.

“You’re right, too, in mentioning the impact salesperson changes have on an account. It’s damaging if you pull a good rep away from a good account. You know what they say, if it ain’t broke, don’t fix it. But it is disruptive when a new salesperson comes waltzing into my office.

“As an evil purchasing guy, I hate breaking in new sales folk unless they are very savvy and don’t take a lot of my time. That sounds rude but in my day I’m going flat out every day of the week. I don’t have time to train a new sales rep and that’s an issue for you and me.”

Frank: “Let me wrap this discussion up with a few thoughts on that painful task of cutting a player:

1) Hiring errors are expensive. Every organization should tip the deck in their favor by doing a thorough reference check. And, compared to hiring errors, a top-notch personality evaluation is worth every penny.

2) Moving the wrong person into a sales role is more expensive than a hiring error. Too many companies promote top-notch customer service people into a sales role only to find they lost a great CSR and got a mediocre salesperson.

3) As soon as the person is cut, communicate with key accounts. The conversation doesn’t have to be long, but the customer needs to hear it from management. Don’t make the receptionist the bearer of bad news.

4) Put a plan together for extended coverage until a replacement is made. Outgoing calls from customer service, additional calls from product specialists and a touch from the sales manager keeps the trust level high and the relationship in place.

5) If your company uses specialists, I suggest an action plan that drives new products and builds relationships not only while a replacement is found, but for several months after the new guy is in place. (Note to readers: I have a special report called ‘The specialist and the new guy.’ It’s free for the asking).

“A down economy is not the time to reduce the number of salespeople in your organization. But, it is a good time to weed out poor performers. There are three reasons why.

• On the personal side. The person you cut can tell his friends and family it was because of the economy. It’s more palatable and it probably means less risk to your organization.

• The talent pool is better for finding good new people. Believe it or not, some companies jettison salespeople based on seniority rather than ability.

• Hiring a new salesperson allows you to move your sales process up a notch. But that’s a different article.”

This article originally appeared in the July/August 2008 issue of Progressive Distributor. Copyright 2008.

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