Authors: Michelle Moore Dominic Girard
It's no longer business as usual. The economic and geopolitical terrain has shifted, buyer demands have evolved and driving top line growth is becoming increasingly challenging. Many organizations are being forced to continually re-evaluate and revise their go-to-market strategies to protect revenue and look for new ways to support growth.
As business strategies change, sales professionals may need different mindsets, skillsets and behaviours to succeed in the new environment. During strategic planning sales leaders must not forget the crucial step of re-evaluating sales team capabilities and compensation plans to make sure that both are positioned to support and reward new behaviours required for success. Failing to do so can result in slow change and disappointing results.
Aligning sales team capabilities to new strategies
New strategies often require sales professionals to shift mindsets and deepen or develop skillsets. For example, moving into new geographical markets may require sellers to learn how to sell effectively across different cultures, or new regulatory constraints may result in the need for sellers to deepen and expand negotiation skills.
Salespeople may also need to demonstrate agility, resilience and an ability to cope with change. For example, during the digital transformation of a sales organization, people need to learn how to use new tools and cope with the change associated with the technology implementation.
When strategy changes sales leaders should collaborate with learning and development colleagues to identify the new capabilities required to successfully implement the new strategy. If a skills gap is uncovered, training should be identified as one of the tactics supporting the new strategic plan.
Providing sales professionals with proper development support can:
- Positively impact sale team morale. Without proper training, salespeople may feel frustrated or demotivated if they're expected to perform tasks they aren't adequately prepared for. Investing in employees' professional development boosts morale and engagement. Salespeople are more likely to feel valued and motivated when they have the skills needed to succeed.
- Increase sales performance. Well-trained salespeople are more likely to effectively execute the new strategy, leading to improved sales performance and increased revenue.
- Increased buy-in and reduce resistance to change. Training can also help salespeople understand the rationale behind the new strategy, increasing buy-in and reducing resistance to change. Training can lead to smoother execution of new strategies and greater overall success.
As business strategies change, integrating artificial intelligence (AI) into sales processes is becoming increasingly crucial. Training salespeople on how to effectively leverage AI can significantly enhance their performance and drive business growth.
AI tools can provide sales teams with valuable insights into customer behavior, preferences and buying patterns, enabling them to tailor their approach and improve customer engagement. AI can also help sales teams identify high-potential leads, predict sales outcomes and optimize pricing strategies.
Sales leaders shouldn't forget the importance of considering how technology can further boost performance and investing in AI training for sales teams to drive efficiencies and productivity.
Aligning sales compensation to reward new behaviours
While training will equip salespeople with the right mindsets and skills, effective sales compensation plans will incent the right behaviours and encourage salespeople to prioritize activities that support new business goals. Organizations often skip this important step as reviewing compensation plans take effort and time.
By partnering with HR to review and if necessary, revise sales compensation plans, sales leaders will:
- Increase salesperson motivation and performance. A well-designed compensation plan that reflects new goals can boost motivation among salespeople. When they see a clear connection between their efforts and rewards, they're more likely to perform at higher levels.
- Improve sales effectiveness. By aligning compensation with business goals, sales teams can become more effective in their roles. They'll better understand what activities drive business growth and spend their time more efficiently.
- Enhance organizational financial performance. Aligning sales efforts with business goals can lead to improved financial performance. Sales teams are more likely to meet or exceed targets, contributing to increased revenue.
- Help manage costs and profitability. A misaligned compensation program can lead to inefficiencies and increased costs. By evaluating and adjusting the program, the organization can ensure that it supports profitability and cost management goals under the new strategy.
- Retain top talent. if the compensation program isn't updated to reflect new strategic priorities, it may lead to dissatisfaction and turnover among high-performing salespeople.
New sales compensation plans should be simple to understand and clear to all salespeople. They should also ensure fair pay and reward exceptional performance. The frequency of incentive payments should be appropriate to maintain high motivation and effort.
Call to action
In today's ever-evolving business landscape, agility in strategic planning is essential. While adapting strategies to meet changing conditions is crucial, equipping your sales team with the right skills and ensuring the right incentives are in place to execute effectively are even more vital. To ensure your sales team is set up for success, reach out to our experts at Gallagher for guidance.
