Beating the 80/20 rule

An optimal ratio of salespeople to sales managers is four or five to one. Since the ratio tends to be considerably higher at most organisations, there is a gap between actual and optimal performance.

Key points

• For most (probably all) sales forces, only 15 - 25 reasons account for 95% of all lost sales opportunities.
  
• 15 - 20 specific techniques or skills are sufficient to resolve those challenges.
  
• Typically, well trained (formally) or experienced/motivated salespeople are effective at only 80% of the necessary skills and techniques.
  
• Individual observation by a skilled expert is needed to identify the flaws in the 4 - 6 ineffective techniques each salesperson has acquired. (If the salespeople could recognise it themselves, they would already be superstars.)
  
• Salespeople respond poorly to more comprehensive, shotgun, or classroom style retaining that also reviews the 80% they do well.
  
• To become excellent, salespeople need an expert coach/mentor to observe, analyse, demonstrate and critique their new practices.
  
• Conclusion: Star salespeople need to secure a coach/mentor to help them refine the last 20% in order to significantly multiply their results.

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