30 West 3rd

Very Early Stage Technology Investing

What makes a great sales culture…

with 2 comments

Continuing on the topic of great sales leadership from my last post, I reflected on some of the best sales leaders I’ve been around and what set them apart.

First, they were confident, organized, professional and direct.  They were not screamers, did not motivate or try to motivate through intimidation.  I’ve seen that style of leader as well and the result is not good.  You can be sure that great sales leaders are not fire-breathers.  Sales cultures built on raw revenue wins and show-boating – the Ochocinco Sales Culture, let’s call it – rarely create sustainable growth. Rather, they reward short-term, bloated deals that are rarely in the customer’s economic interest.  In the end, the scheme will unravel, often destroying enterprise value for all stakeholders.

In the software industry, the best sales leaders I’ve known were first accomplished closers in their own right.  They rose from the ranks by setting and hitting realistic targets on a consistent basis.  They understood the mechanics of the sales process, knew their materials, asked for and utilized technical resources appropriately, and knew how to work a prospect list and turn it into a consistently achievable forecast.  They were not desperate or manic but methodical and persistent.  These traits led to consistent performance, which led to increasing responsibility.

Another trait of great sales leadership is comfort with numbers, the tedious economic details of deals, compensation structures, and channel costs.  This is, I think, an underrated talent in sales management.  Understanding the customer’s economic context is imperative to shaping a consistent winning value proposition.  It is also required to design a balanced compensation model to attract, motivate, and retain a great team.  And understanding how to optimize spending across the sales process builds enterprise value and attracts investment.  Most important of all, financial numeracy makes the sales leader a full financial partner, along with the CEO and CFO, in the design of the business.  This is especially true in the early-stage venture, when predictability and rapid learning are required to build a viable enterprise.

A good friend and great sales leader I know had all the requisite qualities when I first met him back in the mid-’90s.  At the time he was the Federal Sales Manager at a venture-backed start-up.  He was very different than many of the sales reps and regional managers I’d met before, more polished, open about his belief in building an excellent team, and committed to building long-term customer relationships.  It seemed corny at the time, because I was naive about what was important in building a great sales organization.  By the late ’90s, with the dot.com Kool-Aid flowing freely, it seemed even more out of synch with the world.  But as much of the world soared and then sank, he and his parent company thrived.

Over the years he progressed to run both commercial and public sector sales in the region, then the Eastern U.S., then the entire U.S., then all of North America.  He did this while many other sales reps and sales managers I knew in the industry job-hopped, back-tracked, or flamed out entirely.  Eventually he was given responsibility for all North American operations, not just sales, in what had become a multibillion-dollar company.  He did it by building a culture that matched his principles, the same principles that made him a solid individual sales rep.  This culture delivered consistent results for shareholders as the company continued to grow.  He attracted like-minded people with similar professional habits.  It wasn’t for everyone, and some very successful, flashy sales people bristled, but many stayed and learned to appreciate the style and consistency he brought to the task.

He’s not looking for a job right now but taking a well-earned sabbatical, unfortunately.  And he learned his basic selling skills at Unisys, of all places.  Not flashy, not load, just perfect for the job, it turns out.

Advertisements

2 Responses

Subscribe to comments with RSS.

  1. […] so the great founder now needs a great sales leader.  I have described these characteristics in a previous post, and I don’t really think much has changed.  Read it again for the key qualities, but you […]

  2. […] so the great founder now needs a great sales leader.  I have described these characteristics in a previous post, and I don’t really think much has changed.  Read it again for the key qualities, but you cannot […]


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: