Finding your sales guy (or gal): The 360-degree approach


How do you know a salesperson you're hiring will be good? How do you control that process? How much time do you give this person to perform before cutting bait?

Sapan Shahni, Goodbay Technologies, Inc., a Deerfield-based operator of offshore call centers

 
 
OK, Sapan I'll bite, even though you've cleverly wrapped three queries into one. It's a great question — make that, series of questions. And plenty of Chicago entrepreneurs have written in with similar ones. That's no surprise, since sales is something every entrepreneur needs to figure out. Convincing another human being to buy your stuff is the whole point of business after all. So how do you hire the best salespeople?

To find out, I turned to a local entrepreneur who does this for a living: Pete Kadens, 28, founder and CEO of Evanston-based Acquirent. Pete's gig is finding the right sales reps for small and mid-sized companies. Founded three years ago, his sales outsourcing firm today has 28 employees, eight clients, and last year posted annual revenues of $1.3 million.

According to Pete, the secret is discipline. You've got to find the right hiring process — then stick with it. (Acquirent, by the way, adheres to the same hiring strategy used by General Electric, UBS, Bank of America and other Fortune 500 companies — consultant Brad Smart's "topgrading" methodology. For an overview of this widely-used practice, see www.smartandassoc.com.)
"Every time we've stuck to this process we've succeeded," Pete says. "Every time we've strayed we've been burned."

That process, he says, focuses on finding the weaknesses of your potential sales reps. Those outweigh potential strengths. "If you've got a decent salesperson with a wicked attitude or is a nightmare to deal with it's not going to work," he says.

So Pete's interview process is designed to ferret out limitations. "It's drilling into their career experiences and references," he says. Besides intensive questioning of the candidate, this "360-degree" approach involves interviewing references, including former bosses, peers and subordinates. This is no 2-minute call to confirm the person worked there. "You need to do a really comprehensive review," he says. So spend as much time as you can grilling people who really know your candidate.

The biggest weakness to look for is a lack of motivation. Beware the person who seems eager, but gives up at the first sign of trouble. Successful sales are all about weathering the peaks and valleys, so you need someone who can hack the inevitable dry spells. If you hear things from references like, "He was good but lost motivation quickly," or "It was tough to get her out of a slump," then it's time to look elsewhere.

The next big warning sign is the blabber who doesn't listen. Do they interrupt you? Do they fail to answer your questions? If so, they're likely to exhibit these annoying traits on sales calls, too. "50% of the people we throw out are due to poor listening," Pete says.

As for strengths, you're looking for smarts, energy and a positive attitude. And don't forget to find people with the right entrepreneurial spirit. You're not hiring for IBM, you're hiring for you. So look for someone who can think on his or her feet. "A small company might only have one sales manager, or may not have the sales and marketing materials to support the sale. You need someone who can adapt, move quickly and work on their own," Pete says.

As for how much time to give them? Acquirent uses a 60-day window. Two months, Pete says, is plenty of time to know if you've found the right person. But don't focus much on the bottom line during this trial period. It's more about attitude. "You're not going to see a ton of results in 60 days but that's secondary," he says. "If they have the ability, talents and the passion, the results will come."

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