Decoding the DNA of Sales:
Aligning Capability, Role,
Deployment and Compensation
Scott Sands – Aon Consulting
Biology has many examples of life
adapting to fit the environment
There are hundreds of sales roles in the
best surveys with significant differences
Source: Radford Global Sales Survey
3
How many sales roles exist in your
company?
10
100
1,000
10,000
10
100
Number of Sales Employees
Num
be
r
of
Sa
le
s
Role
s
0 2 4 6 8 10 12 14 16 18 20
Untapped
Sold
Types of Specialties: Hunter vs. Farmer
0 2 4 6 8 10 12 14 16 18 20
Untapped
Sold
5Manufacturer
Customer Customer Customer
Types of Specialties: Direct vs. Indirect
Manufacturer
Distributor Reseller Customer Customer Reseller Customer Distributor Retailer CustomerRep
Rep
Types of Specialties: Field vs. Inside
7
Types of Specialties: Small or Large
Accounts
Global
Large
Small
9Types of Specialties: Individual or
Manager
VP
Mgr
Rep
Rep
Mgr
Rep
Prospect
Close
Fulfill
Types of Specialties: Process
11
Skills, Knowledge
Focus
Cadence
Initiative
Responsiveness
Teamwork
Cost
Productivity
Specificity and Correlation of Incentives
Execution of Strategy
Situation:
Multi-billion dollar
company was number
2 in market share
Large sales force with
significant tenure
Paid on a 0/100
commission plan
Cost of sales high
Case Study: Medical Supplies
Complication:
Growth had slowed
significantly in recent
years
The market is
changing buying
process
Large numbers of reps
approaching retirement
13
Situation:
Directories company
with declining revenue
Large, generalist sales
force with significant
tenure
Paid on an aggressive
commission plan
Cost of sales high
Case Study: Media & Advertising
Complication:
Sales people executing
against at least three
different strategies
Turnover high
Sales force resistant to
change
Urgent need to return
to growth
15
Focus of Sales Roles
SELLING
High Low High LowS
E
R
V
IN
G
Farming
• Penetrate Accounts • Oversee Profitability • Ensure Customer Satisfaction • Account Stewardship • Longer-term Focus • Involved with Delivery • “Trusted Advisor”Project Management
• Manage a Single Line of Business • Deliver High Quality
Service/Products • Project/LOB Focus
Hunting
• Active Prospecting & Qualifying • Cold Calling
• Sell New Clients
• Shorter-term/Sales Cycle Focus • Do Not Deliver Services
Most
advanced and
secure
personality
test available
Adaptive
multi-dimensional
forced-choice
format limits
social
desirability
and attempts
to “game” the
test
50+
years of personality, leadership, and psychometric research15
personality traits critical to successful workplace performance1,470
uniquestatements combine for over
350,000
unique forced-choice item pairs25
minutes to complete100
itemsNote: The ADEPT-15 personality model is based on the latest research in personality psychology is built from the well accepted Five-Factor Model (FFM) of personality along with additional leading concepts in workplace practices and research.
Aon Hewitt’s Personality Model
17
Which statement do you agree with more? Matched on Desirability From Different Dimensions
I like to work on tasks that require creativity.
I am willing to work very long hours to succeed. I am willing to work very long
hours to succeed.
Conclusion:
1. Technology can mitigate faking behaviors
2. Will create a more challenging test appropriate for
both development and selection
Ambition Conceptual
Using Technology to Control for Faking
and Bias
I am open to handling a situation in a new way, especially if it
makes things easier. How does it determine which item pairs to administer?
I will sometimes push myself to do better than what others think
is more than enough.
Ambition Flexibility
It knows how people with different personalities will respond…
Adaptive Algorithms
19
Personality Brief
Styles Profile
Competency-Based
Summary of Key Behavioral Differences
More Important for Hunting
Behavioral Flexibility
Resilience
Competitive
Communicating with Impact
Influencing
Knowledge of Selling Techniques
Self Confidence
Polished Image
Likes variety
More Important for Farming
Strategic Thinking
Analyzing Problems
Team Orientation
In-depth Knowledge of Products
and Services
Planning and Organizing
Focus on Client Service
Taking Ownership
Resolving Conflicts
Responsiveness/Reliability
21
Style Profiles for Hunting & Farming
Adaptation
Important for Both
Achievement
External Motivation
Interaction
Dominant & Gregarious Emotional
Teamwork
Lasting relationships
Task
Internal Motivation & Detail Focused
Importance of Personality for Hunting
and Farming
Low Importance High Importance
Ta sk Drive Structure Ad apt ati o n Conceptual Flexibility Mastery Ac hi e ve me n t Ambition Power Hunting Farming 23
Importance of Personality for Hunting
and Farming
Hunting Farming
Low Importance High Importance
In te ra cti o n Assertiveness Liveliness Emo ti o na l Composure Positivity Awareness Te amw o rk Cooperativeness Sensitivity Humility
We can also test for historical hunting
and farming performance
Account 2012
Revenue
2013
Revenue Retention Penetration Acquisition
Banco Leon $0 $51,612 $0 $0 $51,612
Banco Popular $197,471 $67,669 $67,669 $0 $0
Banesco $344,898 $962,010 $344,898 $617,112 $0 Flushing Savings Bank $507,874 $589,242 $507,874 $81,368 $0 J.C. Penney $917,340 $786,444 $786,444 $0 $0 Total $1,967,583 $2,456,977 $1,706,885 $698,480 $51,612
Percentages 124.9% 86.8% 35.5% 2.6%
Benchmarks 115% 85.0% 20% 10%
Visually Identifying Hunting and
Farming Performance in Sales
2013
Retention
Penetration
Acquisition
2014
100%
73.4%
27.7%
Assessment
Criteria
1. ADEPT-15 Personality Model
Should score well on 2/3 of the primary
traits for the role
2. Past Performance
Should have highest historical
performance in that category
3. Manager Rating
Should be blind nominated by direct
supervisor for the role
4. Market Need
Should have account opportunity for the
role in their geography
5. Rep Preference
Should aspire to or prefer the role
Blended Approach for Implementation
ROI | Increasing Retention
High Scorers
Low Scorers Assessment Impact on Rep RetentionImproved 90 Day Retention
ROI | Driving Sales
Greater Weekly Sales by
13%
Data-Driven Assessment
No Assessment Assessment Impact on Sales
Situation:
Large global chemical
company had a fairly
generic sales force
The company had
historically been
engineering focused
To achieve the next
level of growth, the firm
wanted to build a
Case Study: Creating Sales Chemistry
Complication:
The company was
losing share in some of
the most profitable and
fast-growing verticals
Sales people felt
marginalized
Customers were
beginning to express
very different needs
Sales Career Path Example
Sales
Field Direct
Professional
Inside Technical Virtual Dedicated
1
2
3
4
5
6
7
DSS Support SE Mgr IS R -T Support Support Support Alli. Mgr TSR SE Dir Architect GAD IS Sup IS Mgr RSM VP Sales SD GAD GAVP Hunter FarmerLeadership
Indirect IS R -C CA M -T CA M -C SE -T SE -C NB D -T NB D -C AM -T SAM -C 31
Marketing/Demand Generation for Hunters
Lead Management for Hunters
Account Transition for Farmers and Hunters
Fulfillment/Operations for Farmers
New Product Launch/Training for Specialists
Channel Support for Indirect Sales
CRM for Field/Inside Partnerships, Global Accounts
Sales Tracking, Crediting for Hunters
Supporting Processes for the Different
Sales Specialties
There are ten elements comp can use to
accommodate different sales specialties
1. Business Objectives, Sales Strategy, & Roles
2.
Eligibility
3.
Target Pay Levels
6.
Measures/Weights
5.
Upside Opportunity
8.
Quotas/Crediting
9.
Payout Timing
4.
Pay Mix
7.
Mechanics
10.
Administration
Competitive
Aligned
Effective
33
Element
Hunter
Farmer
Eligibility
Yes
Yes
Target Total Compensation
High (if stated)
Medium
Pay Mix
Aggressive (40/60)
Friendly (70/30)
Upside
High
High
Excellence Point
High
Low
Performance Measures
New Bookings
Total Revenue
Formula Mechanics
Commissions
Quota/Bonus
Quotas/Goals
Low (if used)
High
Threshold
None
High
Sales Compensation Variations:
Hunter vs. Farmer
Element
Direct
Indirect
Eligibility
Yes
Yes
Target Total Compensation
Higher (if stated)
Medium/Lower
Pay Mix
Aggressive (40/60)
Friendly (70/30)
Upside
High
Medium
Excellence Point
High
Medium
Performance Measures
New Bookings
Total Revenue
Formula Mechanics
Commissions
Quota/Bonus
Quotas/Goals
Low (if used)
Higher
Threshold
Low
High
Sales Compensation Variations:
Direct vs. Indirect
35
Element
Field
Inside
Eligibility
Yes
Yes
Target Total Compensation
High (if stated)
Low
Pay Mix
Aggressive (40/60)
Medium (60/40)
Upside
High
High
Excellence Point
Medium
Medium
Performance Measures
New Bookings
New Bookings
Formula Mechanics
Commissions
Commissions
Quotas/Goals
Low (if used)
Low
Threshold
None
None
Sales Compensation Variations:
Field vs. Inside
Element
Generalist
Specialist
Eligibility
Yes
Yes
Target Total Compensation
Medium
Medium
Pay Mix
Medium (60/40)
Medium (60/40)
Upside
High
High
Excellence Point
Medium
Medium
Performance Measures
New Bookings
Region Product
Revenue
Formula Mechanics
Commissions
Quota/Bonus
Quotas/Goals
Medium
High
Threshold
Low
Medium
Sales Compensation Variations:
Generalist vs. Specialist
37
Element
Territory
Large Accounts
Eligibility
Yes
Yes
Target Total Compensation
Lower (if stated)
Higher
Pay Mix
Aggressive (40/60)
Friendly (70/30)
Upside
High
High
Excellence Point
High
Low
Performance Measures
New Bookings
Total Revenue, Profit
Formula Mechanics
Commissions
Quota/Bonus
Quotas/Goals
Low (if used)
High
Threshold
Low
High
Sales Compensation Variations:
Territory vs. Large Accounts
Element
Individual
Manager
Eligibility
Yes
Yes
Target Total Compensation
Medium
Higher
Pay Mix
Aggressive (40/60)
Medium (60/40)
Upside
High
Medium
Excellence Point
High
Low
Performance Measures
New Bookings
Total Revenue, Profit
Formula Mechanics
Commissions
Quota/Bonus
Quotas/Goals
Low (if used)
High
Threshold
Low (if used)
High
Sales Compensation Variations:
Individual Contributor vs. Manager
39
Professional Biography
Scott Sands, Partner
Sales Force Effectiveness Practice Leader
Scott Sands is located in Atlanta, Georgia. He works with senior executives in large, global companies to identify opportunities for revenue growth, select the proper sales channels, refine selling processes and messages for specific market segments, staff organizations with the right type and number of sales professionals, set fair but challenging goals, and design motivational incentives. He has 20 years of experience in industry and with leading professional service firms, including Briggs & Sands Consulting, Sibson Consulting, The Alexander Group, and Watson Wyatt.
Scott Sands, Partner Sales Force Effectiveness
Aon Hewitt Consulting
3350 Riverwood Pkwy, Ste 80 Atlanta, GA 30339 [email protected] m +1.404.276.7876
Scott is a frequent author and speaker at national conferences, including the Sales Management Association and
WorldatWork. His work has appeared in Selling Power, Workspan, SAMA's Velocity, and Sales & Marketing Executive
Review. In 2006, he co-authored the WorldatWork's bestselling book Sales Compensation Essentials. Scott holds a bachelor's degree in Electrical Engineering and Mathematics from Vanderbilt University, and an M.B.A. with a focus in Marketing and Organization Effectiveness from The University of Texas.
Scott oversees all dedicated Sales Force Effectiveness consulting resources in the Americas. He coordinates with global Aon Hewitt Global Performance, Reward & Talent resources to ensure that this fast-growing segment delivers proven approaches, cutting-edge insight, and client business impact.
His recent client work includes: Fortune 1000 healthcare, technology, pharmaceutical, insurance, banking, media, and manufacturing companies such as: AT&T, BASF, Cisco Systems, Covidien, CSC, Dell, Diebold, Ecolab, EMC, Fiserv, General Electric, Genuine Parts, Graybar, Hilton, Intel, Johnson & Johnson, McKesson, Medtronic, MetLife, NRG, NASDAQ, Nationwide, Northrop Grumman, Paychex, Philips Healthcare, Roche, Symantec, Tata, and Verizon.
