Lead vs Lag Indicators

Classically, the unstructured sales development interview, as used today by over 90% of companies, concentrates attention on the Lag indicators - how well an individual has performed against target over the last year, the scope of their previous role, promotion history and so on. The problem with this data is that it is historic, and may have no relevance whatsoever to the world of their new employer, new customer set or even to the changing demands of their existing customers. The 'way business is done here' could be different; the new market the company is targeting could be different, even if an individual moves to another company in the same sector; the target customers the individual is given may be different - all of these factors can turn a previously high performing sales person into a low performer, or vice versa. There is no certainty with this approach.

diagram showing sales test lead vs lag indicators

Some organizations are making talent decisions based on Now indicators, i.e. What are the behavior patterns of their top performing individuals; and how do their current skills compare to the requirements of the role today. Organizations that do this will certainly get better performance, at least while the market conditions remain the same. The problem here is that this exercise can be very costly and only a few companies can afford this exercise. Also, often due to the cost, this becomes the role benchmark for some considerable time, even though the rate of change in their customer's markets often means that they are mapping current talent against an ever-evolving and rapidly changing panorama. 'Now' skills can easily become past skills very quickly. Lead measures look at how closely an individual's skills align with those of world-class top performers in the role today .These are the core dimensions that truly determine an individual's likely performance in a role, not just today, but also for the future.

The sales skill test report generates a focused view of the Lead indicators specifically relating to one specific role, and compares these with an individual’s Now competencies. This highlights how far adrift the individual's specific and individual skills are in comparison with the current best practice for the role. This offers the best of both worlds - a way of predicting future performance potential with a high level of accuracy, plus a development map for optimizing performance in a role today.

Sales Effectiveness

Sales Effectiveness is the buzz word on everyone’s lips right now. So what is it all about? Simple: Sales Effectiveness asks questions of a business in three areas:

  • Is your go to market strategy accurate and robust?
  • Are your sales processes optimized?
  • Can your sales people reliably beat the competition?

The first two items are ‘done to death’, especially sales process with CRM’s and Methodologies everywhere. But what about your sales people? How good are they – when compared to top performers? If they are not up with the best – how can you be sure you will beat your competition to win the deals?

Right person, right role

Companies are changing the way they do business today at a faster rate than ever before. Why? Because the economy is driving different ways of working.

  • Reducing the numbers of field sales staff to reduce cost is high on the agenda for many companies today.
  • This leads to an increase in telesales/lead generation staff and more offerings being sold through channel partners
  • So how do you know you have the right people in the right roles for the new shape business?

You want people with potential; people who can do the role; nothing else is good enough. This is where our ‘Total Sales Assessment’ offering can help. Take a look at SalesAssessment.com’s Fit-4.

Develop your team

SalesSkillTest.com highlights in detail the individual’s functional skills compared to an optimal profile for the role they are performing;

  • Drives an increased focus on development of just those skills critical to increasing revenue
  • Drives rapid revenue performance improvement
  • Significantly reduces wastage of development budget.

Don’t waste any more money on sheep dips – target just the minimum development, by person, required to drive enhanced revenue performance

The Business challenge

Improve revenue, or reduce cost of sales – these two items top the CEO’s agenda today. Is your world about cost reduction? or revenue growth? – whichever it is, a more effective sales force could be the answer to your challenge.

  • Grow revenue – top performers deliver 67% more revenue than average sales people (McKinsey 2000)
  • Cut costs – with top performers in your team delivering up to 67% more per person, you need less of them to make, or even exceed your numbers. Drive down cost – drive up success
  • Be the hero – show your CEO how you can help them achieve their goals
graphic linking to fit-4 reports