Want your reps to recieve A-plus sales training? Don't do it yourself - learn to let someone else handle the job

By Erika Rasmusson

Some companies are famous for their training programs. General Electric has its Crotonville Executive Development Center. McDonald's has Hamburger University. Countless others, from Harley-Davidson to Dell Computer, have eponymous corporate universities. And that's great -- if you happen to work for one of those companies.

But when it comes to sales training, most managers don't find themselves at multibillion-dollar corporations with huge sales forces and budgets to match. In fact, only 16 percent of companies develop and deliver all training in-house, according to a Training magazine survey.

Why farm out a task that's critical to developing a world-class sales force? For most managers, the decision comes down to a familiar refrain: lack of time and money. "We decided to outsource because we didn't have the resources internally to do it," says Pat O'Connor, manager of training and development at the Toronto Star. "It was as simple as that." But your salespeople don't have to be corporate university-educated to be well trained, nor do you need a doctorate in Advanced Sales Training. The key is to outsource the task to someone who can make your reps smarter.

"Any sales force, no matter how good, needs to evolve." - Raleigh's Joe Shannon

Training Wheels

IN TODAY'S SPORTS-AND-FITNESS-CRAZED society, selling bicycles shouldn't be an overwhelming challenge. But peddling bikes is an increasingly competitive business, and one that's in a current state of flux: Independent dealers, facing competition from mass-market sporting goods dealers, are experiencing flat revenues. They don't need salespeople to simply take orders-they need them to serve in a consulting capacity and help their businesses grow.

When Joe Shannon joined Raleigh USA Bicycle Company in 1997, he quickly realized this. "I inherited a very good sales force," says Shannon, director of national sales for the Kent, Washington-based company. "But any sales force, no matter how good, needs to evolve." Shannon's agenda for his reps: to make them the best and most consultative salespeople who walk through a dealer's door-period. Raleigh sells primarily to independent bike dealers, thus, "our sales force needs not only to understand the technical side of a bicycle, but also to possess business acumen," he says. That means knowing everything about the bikes as well as knowing something about accounting and inventory-competencies that will help dealers run their businesses better and "create a value-added partnership between ourselves and our dealers."

Shannon knew training was in order for his 31 field salespeople and 10 inside reps. But he was a new manager and other responsibilities demanded his attention. "Outsourcing seemed to make a lot of sense to me," he says.

That's a smart-and common-judgment, says Walt Williams, sales management practice director at management consultancy Towers Perrin in New York. "Most companies are best served by outsourcing skills-training for reps. It's almost always more cost effective to do that," he adds.

To get maximum benefit from an outside trainer, though, managers must do their homework. Prior to his search, Shannon listed his goals for the training. First on that list, he says, was forming a base of understanding and dialogue between reps and customers-a foundation that would allow reps to develop a more consultative approach to selling. "Most sales trainers deal with a certain expertise," he says. "My job is to get them to present to me what that expertise is, [and find out it] their program meets my objective."

He then heard presentations from countless trainers before narrowing the field to four contenders (whose programs were in line with his goals) to interview. During the interviews he delved deeper into the specifics of each program and considered the possible chemistry between the trainer and his reps. In the end, he admits, it was a subjective call.

Shannon ultimately chose STI International, a Bellevue, Washington - based sales training institute. Why? First, Conrad Elnes, STI's chairman and the trainer Raleigh would be working with, was local (read: easily accessible for follow-up training). That was a big plus in Shannon's opinion. Second, he says, "I could see him relating to the sales force. Conrad has a high energy level." And third, "He rides bikes," Shannon says. "He was able to speak to the reps from a customer standpoint." Beyond its curriculum, those factors gave STI the edge.

STI began working with Raleigh in March 1998. Elnes and the company's three regional managers had an introductory meeting, and together they identified 12 areas in which reps could improve (such as resolving dealer objections) and incorporated Raleigh-centric examples into the lessons when rehearsing the training course. Using that information, he then conducted regional training sessions for the salespeople. The training was well-received. Even with 18 years of experience in sales, Herb Hart, a top Raleigh rep based in New York, felt the training taught him to listen to the needs of his dealers better and ask more qualifying questions. "Joe was trying to invest in the sales force-everyone benefits by that," he says. "When we came out of the training, as a company we were more focused."

In June and September Elnes returned, orchestrating day-long follow-up sessions at Raleigh's headquarters to review the previously taught skills, offer feedback, and introduce new techniques. Such support, in his view, is the real key to a program's success, and Shannon agrees. "I told Conrad, I'm not looking for motivational, rah-rah type sales training," he says. "What I want to do is establish a foundation that we can build on after you're gone."

Consider that a goal achieved. Since the training took place last February, Raleigh has doubled the number of dealers brought onboard and increased sales 35 percent at a time when industry growth is 3 percent or less. Shannon credits training with the improvement, explaining, "nothing has really changed in terms of how good our bikes are." What has changed is the way his salespeople sell. "They took what they learned and applied it:' he says. "Our dealers are sensing that there's a new sales force walking through their doors."

Building Threads of Knowledge

"I realized I wasn't very good at sales training." - Rainier's Scott Campbell

FOR SOME COMPANIES, however, outsourcing both development and delivery makes more sense. Another STI client, Rainier Industries' Scott Campbell, chose outsourcing because, he says, "I realized I wasn't very good at sales training." Campbell, the president of Seattle based Rainier Industries, a 102-year old manufacturer of custom fabric products such as tents, banners, and awnings, also recognized the company's weakness when it came to in-house training programs. "[We] haven't been good at developing a sales training program that builds on itself," he says.

So in January 1998 STI's Elnes conducted a four-part training package which focused on establishing rapport, fact-finding, presenting, and closing sales, for Rainier's 10 outside reps and four inside reps. He follows up with once a-month sessions that focus on specific issues such as improving listening skills and developing major accounts-an area Campbell says is becoming an increasingly important part of Rainier's business.

Initially, Campbell says, he hoped to improve the performances of his less-experienced salespeople while insisting his veteran sellers attend as well. Surprisingly, the veterans improved more than the newer salespeople-proof that almost everyone can benefit from training.

Dana Hendel, a Rainier salesperson specializing in large-format digital graphics, considers herself a Cinderella story thanks to the company's continuous sales training. "Money talks," she says. "I've been in several sales training programs, and always had the same income level." But since Rainier hired STI, she's been beating her quota. In fact, she doubled it this past October. She credits the training with teaching her to sell to different types of customers and improving her listening skills. "So many salespeople just go in and talk, talk, talk," she says. "If you say a quarter [of what you usually do] you can improve your sales."

Hendel's verve illustrates that buy-in is critical to a program's success. Experts note that an important factor of sales training is generating enthusiasm and camaraderie among your sales force. If you can't do that with an in-house training program, make sure the trainer you outsource the task to can.

As the above examples show, successful sales training needn't come solely from within a company-it simply takes effort on management's part. Just because you're outsourcing training doesn't mean you don't have to learn about the training process. While you may not be developing (or delivering) the curriculum, you do have to hire the vendor that will. And that choice will determine the quality of training your reps receive and how they respond to it. The right choice can afford you bragging rights similar to Shannon's, who credits training with turning Raleigh's reps into head-of-the-class sellers. "We were as good as any sales force in the industry," he says. "[But] today this is the best sales force in the industry. The numbers back us up."

Stars in Training

WHEN IT COMES to deciding whether to outsource training or develop and deliver it inhouse, there isn't a definitive answer, says Jeffrey Goldstein, vice president of Leadership and Sales Institute in Hartsdale, New York. One advantage of running a program yourself: You have the benefit of your leadership. Presumably, you have sales staff buy-in. Goldstein says.

The Toronto Star managed to get that kind of buy-in by training its 80 salespeople with a combination of in-house and outsourced training. Pat O'Connor, the Star's manager of training and development, and Frank BourJot, director of advertising, wanted a program that would help reps increase revenue, lineage, and market share; as well as establish closer relationships with clients, building a greater degree of commitment and trust. But they had neither the time nor the inclination to create such a program from scratch.

So the company looked to The Forum Corporation to develop a three-day sales training program. Together, the two companies pinpointed five major sales competencies in which Star reps needed training: knowledge base, customer-focused relationships, account management, teamwork, and partnership account relationships (building partnerships). During three days in the spring of 1997, reps were asked to develop target accounts; in the fall of 1998 a one-day follow-up session was held to reinforce the training and check on salespeople's progress on those accounts. "We were saying, we want you to build [the] skills that will help you get the business," O'Connor says. "Lots of people came back with success stories."

But what made the training different, and what made it especially successful, in O'Conner's opinion, was that it was delivered by four hand-picked Star employees-not by Forum trainers. "We felt [our own employees] would have a better sense of the salespeople's issues," O'Conner says, "Oftentimes and outside instructor doesn't have a sense of how those skills will be applied."

Jeff Fry, a salesperson who was promoted to advertising sales manager just before the training took place, was one of those chosen to teach his coworkers. The experience proved especially valuable for him, because in addition to requiring him to master the competencies he was teaching, it gave him the opportunity to strengthen his presentation, coaching, and mentoring skills-all of which would play a vital role in his success as a new manager. "I viewed it as a challenge," he says, "something I would be able to grow from."

For additional information contact STI International
800.784.1552