Defining and executing a sales process is an essential building block for high-performance sales teams. It is where all of the steps of our sale are recorded, and our buyer behaviors are detailed. It aids our opportunity tracking and is frequently used in coaching encounters. It is used when developing forecasts and informs others in the organization about our work.

The sales process is also part of a more extensive sales control system. A sales control system is the “fundamental policies, rules and procedures…to direct the sales force to reach desired organizational objectives” (Anderson and Oliver 1987). Sales control systems are either behavior-based, outcome-based, or hybrid.

  • Behavior-based control systems are characterized by active management involvement – directing, coaching, evaluating, and rewarding according to what salespeople do during the sales process. In this system, salespeople must follow and fulfill a pre-specified set of activities in the selling process. Within behavior-based controls systems, there are two different dimensions:
    • Activity control requires salespeople to perform a pre-determined combination of essential selling activities to achieve desired performance levels. Sales managers will monitor the behavior and reward them based on the performance of these activities.
    • Capability control does not specify a set of required activities for salespeople. Instead, sales managers set personalized goals for salespeople regarding the levels of skill and abilities they must master; they provide diagnostic feedback for those skills, coach, and reward based on their demonstrated skills and abilities.

A critical difference between activity and capability is that activity control usually does not provide detailed diagnostic feedback that enables salespeople to alter their strategies.

  • Outcome-based control systems are on the other end of the “management involvement scale.” These systems hold the salesperson accountable for outcomes. This system allows salespeople a great deal of autonomy when accomplishing sales goals. Sales managers are collaborators and are often viewed as peers in the selling activities. Instead of selling activities, you will track outcomes and buyer behaviors to move opportunities through your pipeline.
  • There are also hybrid control systems, but the research is inconclusive as to their effect on performance. Some research suggests that it is more effective than pure behavior or outcome-based methods in enhancing a salesperson’s work planning behavior and achieving company goals. Counter to these finds is equally compelling research showing that hybrid systems may not improve performance. We will all have to stay tuned on these systems.

So why is it important to understand this level of detail about the sales process? All we want is a sale process. That’s easy. Just list the required steps and ensure the sales team follows them, and we will close deals, be profitable, grow, and so on. It is easy, right?

Remember, we are tuning a high-performance team in Economy 2.0. Previously, using a one-size-fits-all sales process you got with your sales training program worked. So we were all learning about adaptive selling and getting the technology tools to track activity. But we were unaware of more of the sale process, and our sales training vendors did not understand. So we never learned.

Things have changed. If you want high performance, you must leave the past behind. Your success does not come from a box or a one-size-fits-all sales training vendor. Each organization is unique, and the research is publicly available. Educate yourself, engage your internal expertise, and supplement it, as needed, with outside resources who understand what it takes to succeed in Economy 2.0.

To help you decide on what will work best for your organization, consider the following:

Behavior-based systems:

  1. Are best suited for less experienced sales teams
  2. Require veteran sales management
  3. Are for task-specific learning
  4. The sales manager has greater responsibility for the outcome
  5. Require close monitoring and control of routine activities
  6. Focusing the salesperson’s attention and energy on completing a pre-defined set of activities
  7. Dampens self-motivation for learning new sales strategies beyond what has been prescribed in the activity control requirements
  8. It is not conducive to adaptive selling even when capability control is rendered

Outcome-based systems:

  1. Allows a great degree of salesperson autonomy – empirical evidence suggests that outcome control can enhance salesperson learning and performance
  2. Can motivate salespeople to be more adaptive and expend higher levels of selling effort
  3. The positive interactive effect of outcome and capability control as salespeople can draw on capability resources to develop and master practical selling approaches and skills will increase the perceived efficacy of their effort expended during the selling process.
  4. Improves adaptive selling only when capability coaching and feedback are available.
  5. Shifts the burden of outcomes to the salesperson
  6. Best suited for veteran sales teams
  7. Allows sales managers to play a more collaborative role during coaching encounters.

As we stated at the outset, defining a sales process that fits your organization is critical to your overall sales success. It is not something to take lightly or think you can buy “off-the-shelf.” Doing it right requires effort and understanding how your product/service is purchased, who is selling your product/service, and what results you want to achieve.

When you think about sales effectiveness at your organization, does it seem like you are close but just missing those unique elements that give you that competitive edge? Looking for a way to understand how your buyer thinks, decides, and reveals information? At The Nova Consulting Group, we believe that professional selling is a craft. With the Advanced Sales Conversation©, you have those missing elements that move your salespeople from competency to mastery. With our deep understanding of what makes and sustains high-performance organizations, we provide integrated solutions that do not replace your sales methodology and yet advance a progressive selling mindset. Be bolder, more insightful, and get results. To learn more about how to master the craft of sales and encourage sustainable high performance, call  (617) 933-7249 or email info@novaconsultinggrp.com.