Chapter 1
The Sales Leader's Playbook: Transforming Ordinary Teams into Revenue Machines
In 1993, IBM was on the brink of collapse. The computing giant that once dominated the technology landscape was hemorrhaging money at an alarming rate. When Lou Gerstner took the helm as president, he immediately brought in McKinsey consultants to diagnose the problem. Their finding was surprisingly straightforward: IBM had a sales problem. The solution they prescribed became known as the "75 percent rule" - requiring salespeople to spend 75% of their time with customers and sales managers to spend 75% of their time with salespeople in the field. Within just twelve months, IBM transformed catastrophic losses into substantial profits.
What makes this turnaround remarkable isn't just the simplicity of the solution but the critical insight behind it: in any sales-driven organization, the sales manager is the pivotal skill. Nothing accelerates sales performance more predictably than effectively training sales managers. This book has become a secret weapon for sales leaders worldwide, with executives from Fortune 500 companies and startup founders alike crediting its methodologies for their record-breaking quarters. Even Oprah Winfrey once mentioned keeping a copy on her nightstand during her early media sales career, calling it "the compass that guided my leadership journey."
Chapter 2
Building the Foundation of Sales Success
The sales manager's primary responsibility is generating revenue essential to company survival by working through other salespeople. This requires establishing clear sales targets across different timeframes, then planning backward to determine necessary actions. Success demands excellent planning, organizing people and resources, communicating effectively, and motivating your team.
Your most important job is selecting, recruiting, and hiring good salespeople - 95% of your success depends on the quality of people you hire. You must also train and develop them so they become more competent and effective during their time with you. Additionally, you're responsible for determining all necessary resources, setting sales goals, creating plans, organizing training materials, budgets, rewards, and sales campaigns.
A helpful mental model is viewing your sales department as a factory with inputs (trained salespeople, advertising money, resources, products) that go through processes to produce sales results. Your salespeople's job is to transform these resources into actual sales in the current market.
The two primary activities of a sales manager are creating value and generating revenue. You should spend 80% of your time on these activities. Everything else, including emails, social media, and phone calls, are distractions. Your ability to get sales results will ultimately determine your success.
Measurement is crucial - "what gets measured gets done" - requiring clear objectives and performance standards for everyone. Without specific metrics and regular reporting, performance inevitably drifts toward mediocrity. The most successful sales organizations maintain rigorous tracking systems for both activities and results, creating a culture of accountability and continuous improvement.
Chapter 3
Assembling Your Championship Sales Team
All meaningful work is accomplished through teams, making your primary job that of team builder and leader. Your goal is to assemble a superior sales organization that can win in competitive markets. A sales team resembles a sports team in many ways, and by applying principles used by top sports coaches, you can build a championship sales team.
Top sports teams share six key winning characteristics that apply to sales teams. First, they have clear coaching and leadership. On top teams, everyone knows who's in charge. While democratic management helps motivation and morale, a successful sales team needs clear leadership. As sales manager, you set standards and call the plays. Too much democracy doesn't work when competing in tough markets.
Second, they maintain an unwavering commitment to excellence. As Vince Lombardi said, "Winning is not everything, but wanting to win is." Top sales teams, like sports teams, aim to win - achieving high sales and outperforming competitors. The desire to "be the best" is perhaps the strongest motivator. Without making a clear commitment to excellence, teams slip into mediocrity. Only this commitment drives people to give their very best.
Third, they practice open communication. In top teams, there's no game-playing or politics. Communication flows freely up and down with complete transparency. You maintain an open-door policy where people can express concerns without fear of criticism. This psychological safety is essential for peak performance - team members need to feel they can speak freely with managers.
Fourth, they focus intensively on people development. Like sports teams that train players continually, excellent sales managers focus intensely on developing their people. The best companies invest heavily in training - often $6,000 per salesperson annually after initial 6-12 week onboarding. This investment yields returns of 10-30 times the amount spent. The more invested in sales training, the higher the sales and profitability.
Fifth, they make selective player assignments. Just as sports coaches position players where they can make the greatest contribution, sales managers must assign people to roles matching their unique talents. Some excel at finding new business, others at maintaining accounts. Your job is to move salespeople around until they're selling the right products to the right customers, allowing them to perform at their best.
Finally, they emphasize strategy and planning. Your unique responsibility is planning for your team's activities and results. Daily reflection on potential improvements is essential. As Vince Lombardi said, "To build a championship team, you must become brilliant on the basics." The better your team's reputation and results, the easier it becomes to attract top talent.
Chapter 4
Selecting Winners: The Critical Recruitment Process
Recruitment is the foundation of building a superior sales team. Most sales management problems stem from hiring inappropriate people. Proper selection can account for 90% of your sales organization's success, making it one of your most critical responsibilities.
As Peter Drucker warned, "Fast people decisions are almost invariably wrong people decisions." Poor selection costs you time, money, aggravation, and missed sales opportunities. Proper selection begins with thoroughly analyzing job requirements in writing before any interviews.
Clearly define what salespeople will do daily and what results they must achieve. Many recruitment failures stem from confused expectations. One company hired a successful saleswoman who passed all personality tests except "personal initiative," then failed to mention she'd need to generate her own leads. When she discovered this on her first day, she quickly unraveled and had to be let go. Write out a detailed description of your perfect salesperson as if ordering from a factory.
Past performance is the greatest predictor of future performance. Look for candidates who've already succeeded in similar roles. Investigate their performance history, job types, and whether they sold in competitive environments or during boom times when selling was easier.
"We don't hire people and train them to be nice; we just hire nice people." People rarely change their fundamental nature. While aptitude can be developed through training, attitude and personality are essential from the start. Only hire people you personally like with positive, warm personalities who are generally cheerful and happy.
The Law of Three method improves hiring success to 90%. First, interview at least three candidates before making any decision. Second, interview your preferred candidate at least three times - never hire someone after just one interview. Third, conduct interviews in three different places to observe how candidates adapt. Fourth, have three other people in your company interview the candidate. Finally, personally contact three references. This thoroughness saves tremendous time later in training and management.
People exhibit the "chameleon syndrome," changing behavior in different environments. Having multiple interviews in various locations reveals their true nature. Having other managers interview candidates provides additional perspectives - companies like Hewlett-Packard require multiple managers and interviews before making hiring decisions. Always check references thoroughly, asking candidates, "I'm going to personally phone each reference - is there anything I should know before calling?" This question often yields surprising revelations.
Chapter 5
The First 90 Days: Setting Your New Hires Up for Success
"Well begun is half done" applies perfectly to onboarding new salespeople. The first ninety days largely determine a salesperson's performance for years to come. Even experienced salespeople must be treated as beginners when they join your company, as they have "low task-relevant maturity" regarding your specific products and customers.
While 70% of sales organizations only provide product training with no actual sales training, product knowledge remains essential. Salespeople must know products thoroughly enough to pass examinations. This knowledge boosts their confidence and credibility with prospects.
Excellent sales skills are equally crucial. Top companies invest months in training before allowing representatives to meet customers independently - IBM spends eighteen months on comprehensive training. Remember: "Your weakest important skill sets the height of your sales." A salesperson excellent in six of seven key skills but weak in the seventh will be limited in their achievement.
One company nearly fired a struggling new salesperson until sales managers observed him in action and discovered he couldn't handle objections effectively. After just eight hours of intensive training on overcoming objections, he transformed into a superstar within three months. One missing skill had been holding back his entire performance.
After investing in hiring and training, commit to continuous supervision until salespeople reach your performance standards. Monitor daily, provide regular feedback, and offer guidance. When I took over a demoralized 28-person sales team, I required each person to submit five prospect cards daily. Within a week, ten non-performers quit while the remaining eighteen began making consistent calls and sales, revitalizing the team.
Here's a powerful motivation technique: pay new salespeople their commissions daily for the first 2-4 weeks. The immediate reward of receiving commission right after making a sale creates tremendous motivation. After this initial period, transition to twice-weekly payments (Wednesdays and Fridays), then weekly, and finally to a regular twice-monthly schedule. This simple payment acceleration can revitalize an entire sales team's energy and productivity.
The more time, effort, and thought invested in excellent product and sales training at the beginning, the more successful and long-lasting your salespeople will be with your organization. Consider creating a formal 30-60-90 day plan for each new hire that clearly outlines expectations, training milestones, and performance goals for each period. This structure provides security and clarity for new team members during their most vulnerable period.
Chapter 6
Managing by Objectives: The Science of Sales Leadership
Specific management techniques can build top salespeople and sales teams. The Economist reported a performance study of 10,000 organizations across twenty countries that identified three essential factors predicting productivity and profitability: setting targets, measuring results, and rewarding performance.
Top sales organizations set clear sales targets and quotas for each salesperson weekly and monthly, with specific daily action targets. They establish clear measures and deadlines for each task leading to sales, so salespeople know exactly how they'll be measured and paid. Finally, they provide excellent rewards for high performance - the clearer salespeople are about earning potential for achieving higher goals, the more likely they'll reach those targets.
Whether your salespeople work on straight commission or salary, manage them using the same principles. As Jim Rohn said, "top people go where the standards are the highest." To attract and keep good people, treat them like a crack team with clear standards and disciplines enforced daily. The very best salespeople perform at their highest levels in tightly organized, well-disciplined sales environments.
Tailor sales quotas to each person's experience and ability. New salespeople should have appropriate goals for their knowledge level, while veterans should have higher quotas. Sit down individually to determine the right sales targets based on background and current market conditions. Define these goals in terms of daily activities necessary to achieve them, and establish clear performance measures. Remember: What gets measured gets done.
Be explicit about daily activity expectations - specific numbers of customer calls, face-to-face meetings, follow-ups with prospects and existing customers, emails, letters, and interviews. For telephone prospectors, set minimum standards like ten contacts by 11:00 a.m. daily. Nothing motivates salespeople more than clear, specific tracks to run on, and nothing demoralizes them faster than arriving at work with no clear direction or required activities.
With new salespeople, discuss and agree on specific daily activities, then review their commitments on paper each day. As they begin making sales and earning commissions, you can reduce oversight to once or twice weekly. Make it clear you'll be checking regularly, then be consistent in measuring both activities and results. As Ken Blanchard says, "Feedback is the breakfast of champions."
Ask two powerful questions at the end of each sales call or day. First: "What did you do right?" This positive question helps salespeople reflect on their entire sales process, reinforcing successful behaviors. As Aristotle wrote, "wisdom is an equal measure of experience plus reflection." Second: "What would you do differently next time?" This forward-looking question helps salespeople improve without the negativity of questions like "What did you do wrong?" which only reinforces poor performance.
Chapter 7
The Psychology of Sales Performance: Understanding What Drives Success
Perhaps psychology's greatest 20th century discovery was the self-concept. There's a direct relationship between salespeople's self-concept (what they think, feel, and believe about themselves) and their sales performance. People sell effectively to the degree they consider themselves good at selling. Top performers not only enjoy selling but consider themselves excellent at it.
People have self-concepts about their earning potential too. They cannot earn more than 10% above or below their self-concept income level without engaging in compensating behaviors. Those earning above their self-concept engage in "throwaway actions" - spending frivolously or even harmful behaviors. Those earning below their self-concept level engage in "scrambling behaviors" - working harder, putting in more hours, becoming more aggressive about earning to return to their comfort zone.
All external performance improvements begin with internal self-concept improvements. As a sales manager, one of your main jobs is boosting your team's self-concept as top performers. You are the most important external influence on their self-concept, more influential than almost anyone else in their professional lives.
The self-ideal is a person's vision of their best possible self, comprising goals, aspirations, and most admired qualities. The clearer someone's self-ideal, the faster they move toward becoming that person. To raise salespeople's self-ideals, encourage them to select the very best people in your industry as role models, saying "This is the kind of person you can be with hard work and persistence."
Remember that you significantly influence your salespeople's self-ideal through your own example. If you want better salespeople, become a better sales manager. Your sales team typically reflects your personal qualities and abilities. When they like, respect, and admire you, they'll strive to be more like you. Ask yourself: "What kind of company would my company be if everyone was just like me?"
Self-image determines moment-to-moment performance - it's your "inner mirror" consulted before each situation to see how you should behave. It's determined by three factors: how you see yourself compared to your ideal self, how you think others view you, and how you think others are thinking about you. When you compliment and praise salespeople, they see themselves as more competent and perform better with customers.
We're enormously influenced by others' opinions of us. Your ongoing praise and compliments help salespeople see themselves as more competent, directly improving their customer interactions. When people start new jobs, they have an opportunity to develop fresh self-images. This self-image forms from the first minute based on how they're treated, especially by their boss. When you express welcome, appreciation, and confidence in new salespeople, they often become sales superstars with surprising speed.
Self-esteem is the most important personality component and the control valve on sales performance. It's determined by how people feel about themselves emotionally. There's a direct relationship between self-esteem and sales performance. Everything you do to make people feel important and valuable boosts their self-esteem, improves their self-image, and motivates better performance.
The most influential factor in raising self-esteem is success experiences - actually making sales. Everything you do to help your people make sales and earn more money raises their self-esteem, which in turn makes them more likely to make additional sales, creating a positive cycle of improvement.
Chapter 8
The Performance Formula: Ability x Motivation = Results
Each person behaves at a certain level today and can behave at a higher level in the future. The performance formula is A x M = P (ability times motivation equals performance). Ability is a function of aptitude, experience, training, and education, while motivation depends on leadership, organizational climate, rewards, and individual needs.
As a sales manager, you cannot change the natural ability or experience of a salesperson. However, you can accelerate training, education, and personal development. Successful companies like IBM, Xerox, Google, and Microsoft spend millions on training because there's a direct relationship between training and sales success.
Motivation comes from four factors: leadership, organizational climate, rewards, and individual needs. Your leadership ability to inspire and encourage people is the pivotal skill that can dramatically increase sales results. A positive organizational climate where people are happy and get along well is crucial. The "laugh test" is a simple way to determine if you've created a great place to work-in good companies, people laugh a lot, tell jokes, and are cheerful, which leads to more confidence and higher sales.
Salespeople have two major motivators: money and status. They're primarily driven by earning more money and the potential to earn more. While status and feeling important also motivate them, never make the mistake of thinking you can replace financial rewards with status rewards. Many executives who've never been in sales mistakenly think salespeople shouldn't be motivated by money. One Silicon Valley president tried paying all salespeople the same regardless of results. Within six months, all top performers left for competitors, and the company went broke when sales dropped 80 percent.
Different salespeople have different needs. New salespeople need clear structure, supervision, and specific instructions. Senior salespeople need autonomy and resent being micromanaged. Your job is to understand each person's needs and provide the right mix of goals, standards, success experiences, rewards, and recognition.
Think of your role as creating the optimal environment for each individual to thrive. Some need daily check-ins and encouragement, while others perform best when given space and autonomy. The key is recognizing these differences and adapting your approach accordingly. As legendary management consultant Peter Drucker noted, "The task of leadership is not to put greatness into people, but to elicit it, for the greatness is there already."
Chapter 9
The Leadership Styles That Drive Sales Performance
The one factor that can be changed immediately in the performance formula is leadership style. Everything you do to improve your personal leadership abilities will multiply your sales force's results. The best bosses have two specific qualities: clarity and consideration.
The best bosses show consideration by caring about their people as individuals, not just employees. They take time to ask about personal lives and families. Since people are 100 percent emotional, connecting with their personal lives triggers feelings of warmth, commitment, and loyalty to the company.
Four management styles work for different situations: telling (directive for new people), selling (explaining and persuading), managing (setting goals with experienced people), and motivating (creating incentive structures). Use the right style for each individual's situation and experience level.
The most successful companies use regular sales contests-daily, weekly, monthly, and annual-with bonuses, prizes, and rewards. Even simple status rewards like having lunch with the boss can drive top performers to compete fiercely in the final days of the month.
Jack Welch advised managers at GE to "Always manage your staff as if the situation would be reversed and you would be working for that person one year from today." Lead others as you would like to be led, give feedback as you would like to receive it, and give your salespeople freedom to perform while delivering results.
Each salesperson may require a different leadership style depending on their experience and situation. Be flexible and treat each person as a unique individual, different from every other salesperson who reports to you. Some respond best to a coaching approach, where you ask questions and guide them to their own solutions. Others need more direct instruction and clear boundaries. The most effective sales managers can seamlessly shift between these styles based on the person and situation.
Remember that leadership is ultimately about influence, not authority. While you have positional power as a manager, your true effectiveness comes from your ability to inspire voluntary commitment rather than compliance. As leadership expert John Maxwell puts it, "People buy into the leader before they buy into the vision." Your salespeople will give their discretionary effort - that extra mile of performance - only when they believe in you as their leader.
Chapter 10
Recognizing and Rewarding Excellence: The Key to Sustained Performance
In life, business, and sales, everyone wants to feel like a winner. Whenever you accomplish a goal like making a sale or hitting your quota, you feel like you've crossed the finish line. Your self-esteem rises, and that feeling is perhaps the greatest reward of all.
The most obvious reward is money. Money connected to achievement makes people feel happy and successful. Earning lots of money based on your own efforts drives enthusiasm and can buy status items and an enhanced lifestyle. When managers ask how to motivate people without money, there's simply no good answer.
Another major reward is status. Everything you can do to raise the status and prestige of your salespeople motivates them to make even more sales. The best companies present prizes and awards to their highest-performing salespeople in large meetings so others can see the winners. The faster you acknowledge an accomplishment, the greater the boost in self-esteem and confidence. When someone makes a sale, make a big thing of it right away.
A powerful way to reward people is to brag about them to other people in their presence. Take your successful salesperson to the "big boss" and tell the senior executive what a wonderful job they've done. When you stand there praising your employee while they listen, they'll feel more valuable and motivated to repeat the behavior. Recognition is another powerful motivator - just as athletes perform better before large audiences.
An effective reward is through attention. Personal attention by the manager and top people is a big motivator. We always pay attention to people we most value. Spend time with your top salespeople - this is far more important than paperwork. The rule is to spend individual time with top performers and group time with average performers. Top performers highly value one-on-one face time with their bosses.
Promotion to a more responsible position is a major motivator. Many salespeople hope to advance into sales management. But be careful - most excellent salespeople are not good managers. You might lose a good salesperson and acquire a poor manager. Instead, create different rankings like Sales Consultant, Sales Associate, and Sales Executive with new titles on business cards as they achieve certain sales goals.
The timing of recognition matters tremendously. Immediate recognition creates a stronger psychological connection between the achievement and the reward. When possible, recognize excellent performance the same day it occurs. A simple email to the entire team highlighting someone's achievement costs nothing but can boost motivation significantly. Similarly, a handwritten note of appreciation can have more impact than a formal award given weeks later.
