The Role of Leadership in Shaping Sales Team Performance

The stronger your leadership, the better your sales team’s performance. There’s simply no denying the correlation. From coaching to communication to collaboration to culture, the caliber of your internal leaders impacts all aspects of your company. For this post, I’ll analyze this correlation in-depth, looking at concrete data and identifying key areas where leadership shapes sales team performance.

Some Telling Stats

To begin, let me paint a clear picture of how the competency and commitment of your leaders affect your sales team by looking at some compelling data. Here are some statistics that jumped out at me.

“High-performing sales leaders reported an overall average annual quota attainment of 105% compared to 54% for underperforming sales managers.” That’s nearly double! At the most fundamental level, having elite sales leaders heavily impacts your ability to reach your quota.

And this makes sense. If you have top-tier sales leaders at the helm, their professionalism will trickle down, helping you make more sales and generate far more revenue.

Next, “Employees who are supervised by highly engaged managers are 59% more likely to be engaged than those supervised by actively disengaged managers.” This illustrates another way your sales leaders’ behavior rubs off on the rest of your sales team.

If you have sales leaders who are truly committed and highly engaged, your salespeople will take notice, and most will feel compelled to follow their lead. It’s all about leading by example.

Going deeper, “Engaged employees had 59% lower turnover rates,” which, as we just discussed, is something largely impacted by sales leadership. In other words, when you have highly engaged sales leaders, it creates more engaged salespeople, which should significantly reduce turnover.

And that’s just the tip of the iceberg. Excellent sales leadership can also help:

  • Boost productivity
  • Motivate the rest of your team
  • Ensure accountability
  • Increase customer satisfaction and loyalty
  • Increase company resilience

On that note, let’s look closer at some specific ways leadership influences team performance.

Goal-Setting

Whether you’re dealing with lead generation, customer acquisition, customer retention, or any other aspect of sales, goal-setting is essential for accomplishing your objectives. Strong sales leaders understand this and 1) set clear, specific, measurable, realistic goals and 2) effectively communicate these goals to the sales team.

By doing so, this helps your salespeople know exactly what they need to accomplish and when — something that’s a critical precursor for sales success. On the other hand, lacking clear goals is almost always a recipe for failure, as your sales team won’t have any real direction.

If you’re looking for further examples of goals top sales leaders tend to focus on, here’s a great list for reference.

Coaching and Development

Even the best salespeople have to start somewhere, and hardly anyone comes out firing on all cylinders right away. It takes consistent coaching and development to fine-tune a rep’s skillset so that they’re able to fully realize their potential.

Another way leaders actively shape team performance is by acting as mentors to aid in this development. Consider these stats.

  • “77% of companies report improved sales performance as a result of coaching.”
  • “Companies that provide effective sales coaching can see up to a 16.7% increase in revenue.”
  • “83% of companies said that coaching helps new hires become productive more quickly.”
  • “92.8% of sales leaders believe that sales coaching has a significant impact on sales performance.”

Long story short, solid sales leaders facilitate coaching and development, either doing themselves with a hands-on approach or matching salespeople with other mentors who can help them in their progression.

Building a Positive Culture

I think we can all agree that having a positive company culture is a vital part of long-term success. And what’s one of the most important factors in creating a positive culture?

Strong leadership.

I like to use a pyramid as a metaphor. When you have great senior leaders at the top who are genuinely passionate about their role and committed to helping everyone else around them, it trickles down to managers to supervisors and ultimately to salespeople on the front line.

A leader’s mission, values, engagement, communication, work ethic, and so on spreads downward to every other branch of your company, including your sales team. So to establish a thriving culture, it starts at the top with dedicated leaders who are invested in helping your company succeed.

Adapting to Change

Today’s sales world, and the business world in general, is incredibly complex and ever-changing. Fueled largely by advancing technology, new trends are constantly emerging and entire industries can seemingly go from thriving to defunct overnight. No one is immune.

A huge part of not only adapting to change but thriving amidst it is having strong sales leadership. These individuals can successfully navigate change, plow through setbacks, overcome challenges, and capitalize on new opportunities. When you have people like this in charge of your sales team, it doesn’t matter what’s thrown at you.

Whatever the circumstances, they’re agile enough to make the necessary adjustments and ensure your sales team is equipped to succeed. When compared to a competitor that shirks from change, this can make a world of difference.

Enhancing Sales Team Performance By Finding Elite Sales Managers

In my opinion, sales success almost always requires a top-down approach, where you start by recruiting the cream of the crop sales managers, making this your main priority. Of course, you’ll want to also put plenty of effort into recruiting quality salespeople. But by giving elite management the reigns, the rest will usually fall into place.

Not only will their leadership aid in the areas mentioned above like goal-setting, salesperson coaching, and culture-building, they’ll have a final say in the reps you bring on board when hiring. So by recruiting top sales leaders, you should also be able to recruit top salespeople, creating a positive cycle.

When it comes to attracting, recruiting, and retaining top sales talent at all levels, it’s helpful to use cutting-edge, data-driven technology. With HireDNA, you can find sales leaders by analyzing 26 profile data points to find individuals who are most likely to succeed in your unique sales environment. You can get started with HireDNA here.

Hiring Your First Sales Leader? Here’s How to Handle the Process Strategically.

Choosing your first sales leader is exciting, but it can also be a little nerve-racking. With so much riding on their success, it’s a critical position you want to find the ideal candidate for.

In this post, I’ll explain how to handle the process strategically and provide helpful tools to dramatically increase your chances of choosing the right sales leader.

Identify Critical Traits

Before you do anything, it’s important to figure out exactly what you’re looking for in your first sales leader, as this will impact your job ads, interview questions, and more. While what is considered ideal traits will vary from company to company, there are nine attributes to look for across the board, including trustworthiness, being a natural motivator, and being an excellent communicator.

This graphic is a great starting point for coming up with your list.

9 Traits of a Sales Leader | The Sales Hunter

Keep in mind that you’ll also want to consider cultural fit and what type of personality will mesh the best with your existing sales team. Once you’ve got a tangible list of traits ironed out, the rest of the hiring process should be a lot easier. This brings us to the next step in the process.

Create an Ideal Candidate Profile

Based on the information you’ve generated from identifying critical traits (which you can think of as a rough draft), use it to create a fully fleshed-out ideal candidate profile. The more detailed the better, as it will provide a clear template to draw from when later assessing sales leader candidates for a position.

Along with the attributes I discussed earlier, some elements to include in your ideal candidate profile can include:

  • Education
  • Selling and leadership experience
  • Industry experience
  • Candidate demographic
  • Location
  • Hard skills
  • Soft Skills

One thing I’d like to point out here is that some sales recruiters get too hung up on looking for candidates with industry experience that they miss out on potentially A+ talent. I’ve found that, in many cases, candidates with proven sales and leadership abilities can make for excellent hires even if they don’t necessarily have direct industry experience. My philosophy is that it’s easier to train on products than it is on sales and leadership.

So this is something to keep in mind if you find a candidate who looks promising but lacks direct industry experience. Check out this article for more info.

Build Your Talent Pipeline

Now that you have a clear idea of the type of candidate you want to be your first sales leader, it’s time to build a talent pipeline to help you procure a true rockstar. There are several ways to go about this, including:

  • Recruitment marketing on job boards
  • Paid advertising on search engines and social media
  • Recruiting internally
  • Getting referrals from current employees
  • Email newsletters
  • Engaging passive candidates

Like any other aspect of sales recruiting, building a talent pipeline will likely require trial and error until you find the right formula. A great way to streamline this part of recruiting is to use a platform like HireDNA.

HireDNA used powerful technology that identifies and engages both active and passive candidates that match your ideal candidate profile, allowing you to cast the widest possible net with maximum efficiency. With it, you can tap into a national network of experienced sales recruiters to quickly fill your pipeline.

So if you’re struggling in this area, using a platform like HireDNA can be a huge help.

Screen and Assess Candidates

At this point, you should know the critical traits you’re looking for in a sales leader, have developed an ideal candidate profile, and have a talent pipeline in place. And that’s half the battle. Now, it’s time to screen candidates and evaluate them based on your specific criteria to find the right fit for your unique selling environment.

Given how overwhelming this phase can be, I usually suggest using technology to streamline it to A) save time and B) increase your odds of success. One way to go about this is by using an applicant tracking system (ATS) to filter through candidates and organize them so you can narrow your talent pool down to the best of the best. G2 has a great resource that covers some of the top applicant tracking systems.

Another way is to use HireDNA to screen and assess candidates using data and science to better predict the likelihood of success. This looks at numerous core competencies like motivation and desire to determine the top candidates for a sales leadership role to ensure you’re never “going on a hunch,” but rather making assessments based on concrete data.

To save even more time, HireDNA delivers qualified candidates right to your inbox for maximum convenience.

Interview and Hire

From this point, the heavy lifting is done. Now it’s just a matter of shortlisting the cream of the crop and interviewing the candidates that check the right boxes.

Note that interviewing for your first sales leader position will likely look a little different than if you were interviewing for a regular sales rep position and will be more extensive. Venture capital firm Stage 2 Capital suggests conducting two interviews, with the first being with your CEO/founder and marketing leader.

Then, if they pass their first round, the second interview will be a group meeting with your sales team and executive team and another with your CEO/founder.

This, of course, may not be the exact formula you want to take, but I think this is a good template to borrow from. And you can always refine your strategy later on when you hire again.

Finding the Perfect First Sales Leader

A sales leader is a pivotal position, and whoever you hire will have a ripple effect throughout the rest of your company. So you want to get it right. By taking a strategic approach as I’ve outlined above, you can methodically move through the process to ensure a strong candidate pool and narrow it down until you have a winner.

To learn more about how HireDNA can help you find sales leaders and schedule a live demo, reach out to us today.