Yes, your hunch is correct.
The number one revenue killer for many sales organizations is bad sales management.
A VantagePoint/Sales Management Association study of 518 sales managers in Fortune 500 sales forces showed that:
• The top 25% of managers exceeded their team targets by an average of 15%.
• The bottom 25% of managers fell short of revenue targets by 24%.
• Bottom performers underperformed their top-performing peers by 39% relative to their revenue goals.
With an average of 9.1 salespeople reporting to them, and assuming an annual quota of $1 million for each sales rep, this yields a staggering gap in sales manager performance of $3.5 million per manager.
Here’s the math: gap in performance x number of reps reporting to each manager x average rep quota.
Investment in sales management training is even more powerful than spending on rep-level training. Of 161 companies we studied, those that invested the most in their managers recognized a 15% advantage in revenue attainment.
By training this typically overlooked group, you can boost the performance of your entire team for a fraction of the cost of
training your front-line sellers. VantagePoint’s clients have seen amazing results:
The impact of VantagePoint’s sales management training programs can be best summarized by the VP of Sales Effectiveness
at 3M after a global deployment of our flagship program, The Sales Management Code:
“This was the best, most successful training ever launched to our sales force.”
The Sales Management Code™ equips sales managers with a simple, yet powerful framework for aligning seller and manager effort to desired business results, coaching in ways that drive maximum impact, and assessing leading indicators of progress to determine if sellers are on the right path to quota.
The Pipeline Coaching Code™ equips sales managers and leaders with a powerful framework for assessing the health of the pipeline, considering size, contents, and progress. It then equips managers to make deliberate decisions about how to ensure the health of the pipeline and the viability of deals within the pipeline. Managers will reorient effort toward the early stages of deals to improve deal viability and velocity.