Thursday, March 6, 2008

Manage to Method not Metrics

Every sales job I have ever had has had its own metrics- a statistical measure of the average number of calls to appointments to demos to closes. I live in a statistics-rich sales culture, where my boss can tell me the number of sales an average rep closes based on a variety of factors- almost to an absurd level, like the bets that are placed on the Super Bowl (I heard this year you could bet on the color of the Gatorade that would be poured on the winning coach!). Without even flinching my boss will rattle off one of these stats... we (i.e. an average sales rep in the organization) average a 23.67% close ratio when presenting to prospects using ABC inc. If we also demo the X-factor to them we're at a 39.71% close rate. And if you've had a Diet Dr. Pepper and schedule that meeting after 2:35 PM our close ratio is 46.93% ... So maybe that's slightly embellished, but the principle is simple- we have lots of statistics, and that's great, but we can't manage our sales from those metrics/statistics.

Why? Because there's "lies, damned lies, and statistics." -Mark Twain

The problem doesn't really lie with the statistics or metrics, but in how they are used to govern our daily selling activities. The problem is that they are averages. According to those averages I need to make x number of phone calls each week and schedule x number of appointments, and then report that activity to my boss. So what happens next? Well, I can tell you from experience that some sales reps go out of their mind trying to make x number of calls and schedule x number of appointments so they can meet their weekly metrics. We get so caught up in activity we lose focus of method.

Can you imagine managing a team of Bass Pros and demanding that they go make x number of casts or drop shot x number of times? That's ridiculous! When Kevin VanDam is fishing I guarantee that he is not focused on meeting a specific number of casts- he is focused on method. He's making each cast in an effort to catch a fish, not fulfill a casting quota. Further, he's focused on making good casts (i.e. casts that will catch fish), not just any cast.

I believe metrics and statistics are extremely valuable, but personal. There are all types of bass fisherman. Kevin VanDam is known as a "power" fisherman, since he cranks out thousands of casts a day, but a "finesse" fisherman may yield just as many fish with far fewer casts. Clearly Kevin's metrics are different than everyone else's, they're personal.

So what can salesmen and sales managers learn from the Bass Pro? Manage your daily/weekly activities to method not metrics. Make sure that each call is a good call and is focused on the net result of selling a quality deal, not filling the weekly report up. As you build your own library of statistics you will know what your own personal metrics are and you can manage yourself and your time accordingly. Until then, stay focused on method!

At the end of the day it's about catching fish, not casting!

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