Sales leaders need to put an end to this MADNESS. Here's a strategic seller who was put on a PIP after hitting 166% of his $1.2M quota because he didn't hit the required "activity metrics.” There’s a better way to lead: It's simple... Stop treating knowledge professionals like factory workers. Specialized knowledge, building networks, and embracing tech innovation are more important growth levers than measuring activity inputs. This is especially true for strategic sellers. If you're leading sellers who have to engage with multiple executives at large companies and you're scrutinizing their "activity metrics,” I suggest you do an audit of your management style. Here are 3 great places to start: 1. WHO DO YOU WORK FOR? The average tenure of a VP of Sales is 17 months (down from 26 mos in 2010, per Gong). You’re in a high-pressure position, so it’s a good time to think about who you *truly* work for if this trend has any chance to reverse. Instead of thinking of your board and C-Suite as your bosses, what if you flipped the model on its head? This is known as Inversion Thinking. Instead of: “What do I need to show people at the top to keep my job?” Ask: “What can I do to help the people below me reach their full potential?” 2. WHAT IS THE MEASURE OF SUCCESS? Is the team you lead given a revenue quota or something else? Businesses need revenue to survive and grow… Not more meetings on the calendar. So why over-index on activity inputs if the important outcomes are being surpassed? This is known as Linearity Bias, the assumption that a change in one quantity produces a proportional change in another. More calls, emails, and meetings ≠ more revenue. Instead of chastising reps who are over quota but under activity, try deconstructing their unique approach and giving them a platform to share it with the rest of the team. Viewing sellers like this as “lucky” will limit your growth and tenure. 3. HOW MUCH TRUST DO YOU HAVE? “We had 2 reps put in their notice this week, and I know 2 more who are about to resign.” This was verbatim from a Strategic Account AE I spoke with last week at a Series D startup. Why? Because their senior sales team must participate in 2 cold call blitzes each week in addition to 80 outbound outreaches. “We feel like glorified SDRs. 1,000 calls have produced 10 meetings, a 1% return.” They’re fed up and burned out…so they’re leaving. If a tenured seller leaves tomorrow, what’s the cost of finding, vetting, onboarding, and training a new seller? What's the cost of lost momentum with existing pipeline? If you’re leading with activity and not strategy, I guarantee you don’t have trust in your sales team. As we enter the 2nd half of 2024, I encourage you to think differently. The era of 17 months tenure, <40% quota attainment, and 63% of sellers experiencing burnout doesn’t have to continue. You can be the change. 🐝 Strategic sellers, there's a better way: https://buff.ly/3noPjbn
Brandon A sign of managers who don’t know how to sell (or manage sellers.) I coach a SaaS seller who recently experienced a similar situation. Over quota but put on a PIP for lower activity metrics. Still over quota at the end of Q1 but got let go because their activity metrics didn’t improve. The message being it’s more important to conform than perform.
I was having a very similar conversation with someone recently. It's absolutely backwards. Leaders need to stop pointing the the fingers at reps, the economy, remote work, Gen Z for low performance. Is it so far fetched that maybe you could be the problem and you're the common denominator? Maybe you have blind spots and biases that are preventing you from creating a space for sellers to thrive?
Politics and discrimination in any form aren’t talked about enough on LinkedIn. This makes my blood boil.
Brandon Fluharty 🐝 - Did you ask if there is a financial penalty if activity metrics are not met?
Most common in companies moving up market for the first time and sales cycle start to lengthen, so the feedback loop is longer. Then without the same level of activity, starts to make sales leaders uncomfortable. “Will the revenue be there in another 5-6+ months?” More activity! = solution
Wow, this is frustrating. I feel like activity metrics are often just for keeping up appearances and there's no data behind whether or not they actually lead to more revenue
If you are having success and operating in a way that is an indicator you will have continued success I can't imagine putting someone on a PIP.
Brandon Fluharty 🐝This is sooo gosh darn silly. 🤪 We don't treat people like this at MaintainX. This is why we are top-rated on RepVue. https://www.repvue.com/companies/MaintainX PS: #StoptheMadness - MaintainX is hiring. https://www.getmaintainx.com/careers/
Wild.
SVP Corporate Strategy, Head of Transformation Office at Circana | Strategy, Operations, Partnerships & Growth Leader
7moIf the rev ops team is good (and they have the data) they’ll be sharing the impact of certain activities on outcomes with both leadership and sales. I’ve been part of orgs where there was a strong correlative relationship between meeting volume and wins, such that we’d have a pretty decent sense of where and when revenue would spike or dip based on meeting metrics. PIP-worthy? Hard to say, and it’s tougher to measure a business based on a few large deals via an enterprise sales org. But depending on the relationship between activity and sales, this could be the equivalent of having a good game despite skipping practice. You can get away with it when you have that good game. But when you have a bad game? Trouble.