Sales Force Training and Support

A White Paper

September, 1998

This document provides research findings and conclusions on the primary drivers of excellence in sales training in a wide variety of industries.

This report is based upon personal and telephone interviews with members of the sales force training organizations in nine telecommunications services companies: AT&T, British Telecom, Cable & Wireless, MCI, Midcom, PacTel, SBC, Sprint, and Teleport. Further interviews were conducted with members of the sales force training organizations of six companies with large business-to-business national sales forces: Cisco, Dell, FedEx, IBM, PayChex, and Xerox.

Attached as an Appendix is the discussion guide we used for the interviews. The findings and conclusions below follow the major topic areas of the discussion guide.

1. Training organization structure
   • Companies are mixed in their approach in offering centralized vs. decentralized training facilities. Companies who utilize centralized training see value in having every new hire start with the exactly the same foundation. Those companies that choose decentralized training consider it a cost effective way to provide training, and rely on corporate trainers to provide some level of consistency in training methods.
     • "The corporate training is done [at headquarters]. All new recruits cycle through training there. There are corporate trainers based [in headquarters] who routinely travel to the regions and conduct a variety of training from standard sales skills topics to new product introduction support."

     • "Training is centralized [at headquarters] and there is no regional training except for a customer service center…We have some distance-based learning, but 80-90% of training is [centralized]."

     • "[The corporate training center] sponsors and pays for the two week orientation training given all new hires at the major accounts, mid-market, and national accounts level…There are also regional trainers who visit the branches to support the training effort."

     • "We'll send instructors to a site if there are six or more students. Otherwise, we have new hire training tracks beginning quarterly [in centers throughout the region]."

     • "Corporate training is done from regional centers. There are field-based trainers who are assigned to the branches. These are the first line trainers and deal with all new recruits in their classes."

     • "I feel strongly about centralized development, although there isn't generally a need to do the actual training in a central location. We have made all our courses portable and mobile and "suitcase" our programs out into the field."

   • Trainers are generally responsible for a new hire's "formal" training and introduction to the company while the branch or sales manager is responsible for that new hire's field training. Companies generally rely on trainers to educate new recruits on company overview, product knowledge, and sales skills, while sales managers oversee their selling skills in the field.
     • "New hires are managed by sales managers, but [the managers] do not normally participate in the new hires' training. Rather, they act as mentors or coaches. It is not their job to do the actual training."

     • "Trainers have responsibility for new hires for three months. During this time they focus on classroom-based training—there is very little field interaction…After three months, the new recruits report back to their original hiring manager. Branch managers do the field training for new hires—not trainers."

   • Trainers usually come from the sales ranks, but a career path in training is generally not well defined. Most companies want trainers with sales experience but are faced with the dilemma of developing a professional trainer career path while allowing trainers to maintain the selling skills which make them valuable as trainers.
     • "Trainers come from the field rep ranks, but there is no defined career path. There is some value in having training professionals along with selling pros--again, a mix is best."

     • "[Our company's] goal is to make training a career path in sales, not a professional training role, which is the way it is now."

     • "Most of our instructors have been sales reps or account managers and some have been in their training positions for a long time—up to ten years. Ideally I would like to see them move back into the field after three years, but there isn't a clearly defined career path for them."

     • "Trainers are centrally managed by physically located in the market areas. The trainers come from sales ranks, often sales management, but there is no specified development or career path from trainer onward. It's not a dead-end, but it isn't a clear stepping-stone to another position."

     • "Sales Managers and experienced field sales people can bid to become trainers at headquarters. They must commit to a two year stay and are guaranteed a job at the same level when they leave the training assignment. It's considered a very attractive posting."

2. New hire training processes
   • New hire training methods vary greatly between companies and can range from informal on-the-job training to formal, lengthy programs. Most training programs have a field and a "classroom" component but how each is delivered can vary greatly among companies.
     • "There are a ton of different education programs, but there is no consistent foundation for the sales process within the organization as a whole…The most common way that people learn sales skills within the organization is by talking to friend. There is no formal education or training requirement—we require experience instead."

     • "The training curriculum for a new hire is 29 days, or 36 days if they take extra selling skills classes. They do not complete all the training at one time, but are required to complete all the coursework within 15 months."

     • "New hires spend two weeks in the field at branch locations learning about the products and going on field rides. Then they get sent to headquarters for two weeks of formal training on product. The cycle of two weeks at headquarters/two weeks in the field continues…After they return to the field, new hires have an additional seven month program…At the end of this probationary period, the new hires return to [headquarters] for even more training after which they take a final test and are certified."

   • Some sales organizations are pushing training into the field. Given the availability of technology and the need to control costs, many organizations are trying to rely more heavily on field-based training instead of centralized training.
     • "We have a certain amount of centralized training, but we are trying to push training out into the field via our intranet and distance learning using remote sites."

     • "Our new hire training program lasts nine weeks—half at headquarters and half in the field. Our new hire training was centralized for years, but we are trying to move as much as possible out into the field…We have no choice because the cost of training [at headquarters] is so high."

     • "We used to send new hires to [corporate headquarters] for 30 days, with lots of product training and baseline technology, but this has now been replaced with a combination of CD-ROM training (2 weeks), on-the-job training (2 weeks), and a short three day course [at corporate headquarters]."

3. Internal vs. external training resources
   • Many successful sales organizations find using a combination of internal and external sales training resources to be optimal. In order to provide efficient and effective sales training, many companies are relying on outside companies to teach selling skills and other "soft" techniques, while capitalizing on their internal expertise to teach new hires in-depth product knowledge.
     • "Our company is emphasizing external resources for training much more heavily today. We are spending four times more this year than last on outside trainers in an attempt to improve the quality of our selling skills program. It is mainly inside training for core products."

     • "85% of our curriculum is in-house now but we'd like to make it 75%--there's no sense reinventing the wheel, although everything on product is internally developed.

4. New hire training curriculum
   • Major components of all sales training programs include: an industry overview, product training, and selling skills. Many of the companies we spoke with incorporated all three components in their sales training program, although what was emphasized varied greatly among them.
     "A typical training program includes an introductory 'hierarchy of skills:' listening, interviewing, identifying opportunities and so forth. Later, they have an intermediate skills course which focuses on proposal-writing, designing solutions, and some basic financial analysis."
     • "[The corporate new hire training] includes selling skills, technology skills, including laptops and other automation tools, and internal fulfillment and logistics issues. Part of the program is a course on culture and value. Back in the field, the trainees are doing on-the-job training and participating in distance learning via conference calls, etc."

     • "The ten days [of training] breaks out as follows: 3 days on selling skills, including funnel management and role playing, 1 day on administrative skills, 6 days on the industry, our product and our network."

     • "New hire training includes an introduction to the company, core product training, and there are optional courses on business presentations, TMS, executive selling, and situational selling. New hires also get technology training on systems, the Internet, logistics, MS Office, and our account information databases."

     • "About one-third of their training is in sales skills, one-half in technical matter, and the rest in customer service issues. There isn't a set timetable for the training period because each program is tailor-made for the individual depending on their background and the position they are going into."

5. Performance metrics for new hires
   • Although formal certification does not seem to be prevalent, most companies do test the proficiency of their new hires during and after training. To ensure the competency of their new recruits, many companies do conduct testing, regardless of the length or formality of the training program.
     • "New hires have to 'graduate' from the training program before being assigned to a manager for field work. We gave people quizzes routinely and expected people to progress in their understanding quickly. We talked to people not cutting it at the half way point in training and often dropped people out at this point."

     • "New people must pass the two week training and receive a certificate of accomplishment. There is routine testing during the two week period."

     • "If you don't get certified through the [new hire training] process, you don't sell."

     • "We test students (pass/fail) at the end of each class and they cannot proceed without passing."

   • Many new hires are given a ramp-up period in which they are allowed to complete their training and build their skills without severely impacting their pay. Because training is often the responsibility of a corporate trainer and not a branch or sales manager, and because training often has a classroom component, many companies do not expect new recruits to start bringing in business immediately.
     • "New trainees returning to the field get a 3-4 month break-in period in which their quota requirements are informally reduced. It's a pretty loose process which is up to the branch manager's discretion."

     • "Trainees are paid their full base salary while in training. They lose 30% of base salary when assigned to the field. They are expected to recover this money through commissions from sales."

     • "New hires are expected to sell proportionally over their three month break-in period their eventual monthly quota. Full quota kicks in the fourth month."

     • "Typically, we hire very experienced people for [our sales force] and their ramp-up period lasts less than six months. After the ramp-up period, typically they have 20-40% of their salary at-risk."

     • "New hires are on a training salary for the first three months, because for the first nine weeks they don't do any selling. But after three months, the training salary (which is double their base) disappears entirely and all at once."

     • "There is no ramp up period for reps after they complete the [new hire] course, and the amount of on the job training that they get once they get back to the field depends very much on their manager."

     • "New hires used to have a probationary period, but now the new hires can come in and are right away on full compensation."

6. Continuing education
   • Continuing education seems to be less formal and centralized than new hire training but still an integral part of many sales organizations. For more experienced sales people, continuing education seems focused on new product introductions and to a lesser extent on advanced selling skills.
     • "No formal (corporate) refresher training program for more senior rep's. But, there is a whole lot of refresher training happening in the branches under the wing of the branch manager."

     • "We are always adding new training. Managers are required to have forty hours of classroom training per year. For others, it's optional but encouraged."

     • "Sales training is emphasized throughout a rep's career, with on-going classes every Friday for 90 minutes. We have annual zone meetings focused entirely on selling skills and periodic branch meetings on selling skills as well. Everybody in the sales force takes tests twice a year."

     • "A new hire might go to the [corporate training center] six times in the first year and much less afterwards. After two or three years, they might go back to the center for a refresher course or for training in a new technology."

     • "At the six month mark, new hires go to an advanced selling skills program. After this, people are left to pick what training they felt they needed together with their manager. They are really left to sink or swim. [The company] gives you the tools and then expect you to get what you need to succeed."

7. Role of information technology and distance learning
   • The use of technology in sales training is becoming more popular. Many companies are providing their sales forces with lap tops and find them to be a useful tool for sales training, especially for continual product education.

     • "We have a collaborative distance learning tool that integrates video, audio, and text into new and existing knowledge databases. It can combine a syllabus database with content databases, point to resources on the Web, link to case studies, include 'expert story-telling,' grade tests, and even allows (asynchronous) discussions with 'classmates' and the discussion leader, all of whom can be in different locations and different time zones."

     • "We are moving as much as possible to distance learning, both for new hires and for on-going training. Technologies include audio-visual tools, the Internet, our intranet, CD-ROMs, and conference calls."

     • "We require new reps to be in the field for three weeks before they attend [new hire training] where they get computer-based training, audio, video tapes and so forth. The training group has a training library of a dozen audio and video tape courses. They also use video conferencing for on-going training. In addition, we have high powered work stations which we use as training kiosks in offices. They are multimedia focused with full-motion video."

     • "We do some self-paced training with computer-based packages which run on our laptops. We also do live video broadcasts of major promotions or upgrades and have video systems in most major buildings. These leader-led distance learning programs are very popular and successful."

     • "[We offer] a CD-ROM based training course focused on [the company's] organization, background, foundational technologies, and then a bit on product. Each day is broken out in detail with structured goals for each day. The program has a lot of links to our intranet but nothing on selling skills—it is exclusively focused on technology."

   • However, distance learning is not likely to totally replace in-person training. Because of the personal nature of sales and the necessity for "softer" interpersonal skills which cannot be taught long-distance, many companies are using distance-based learning to augment their existing training programs.
     • "Sales training needs to be a combination of technology-delivered and in-person training since sales by its nature is person-to-person."

     • "Sales is too much of a hands-on environment and I believe that it is not possible to teach soft skills like selling via computer-based or network-based training."

     • "Distance learning is efficient but not as effective as instructor-led training and presents challenging obstacles in course development."

Project Description

Hamilton Consultants has been engaged by a Fortune 100 firm to research best practices to identify the primary drivers of excellence in sales training in a wide variety of industries. During the course of the project, Hamilton will identify and interview key executives involved with sales training at companies in both service and manufacturing industries.

The specific goals of the project will be to:

1. Identify sales training processes and make-up of sales forces
   • extent of formalization in training organizations and programs

2. Identify measurement and performance benchmarks
   • new hire training and performance metrics

3. Understand the use of technology and its impact on sales training
   • ways in which you provide training support to your sales force quickly enough to keep them abreast of rapid changes in your product and service offerings

Issues for Discussion

Training Organization

• Do you have a corporate sales training group and field-based training groups?
• What is the organizational structure of your field training staff?
• Do trainers specialize in specific areas (e.g. product/sales skills/technology)?
• Do trainers take responsibility for trainees during the initial stages of their orientation and training?
• Do trainers participate in incentive plans similar to commissioned sales people?
• Is there a formal certification process for field trainers?
• Do first line sales managers actively participate in new hire sales training activities?

New Hire Training Processes

• What are the major topics covered in your new sales employee's orientation and training?
• Do you provide formal training to help new hires understand how the organization works? How much time do you dedicate to this area relative to other areas?
• Is your initial training for new hires conducted centrally or in the field? Does this training vary by the type of sales rep?
• Does your training process differ for new hires with different levels of industry-specific experience, general sales experience, product knowledge, or other variables? If so, what are the differences?
• Please describe the types of training materials you use with new sales employees. How would you rate the quality of these materials?
• Is there a certification requirement for new hires? Is there a review or disciplinary process for failure?
• Is there a defined period of time during which new hires are considered "in-training"? Does period differ for some new hires due to their level of prior experience?
• Is there a provision in the compensation plan to support new hires through the first stages of their training? (E.g., a bridge payment which phases out after commissions are earned.)
• How are new hires assigned into the field: by territory, by account, assigned to another sales person? Are they fully or partially supervised in field selling activities?
• How do you find most of your new sales recruits?
• What is a typical interview cycle for a new recruit during the hiring process? Do field trainers play a formal or informal role in the recruiting and hiring processes?
• What is your experience with the level of turnover in new sales hires? What is the industry standard? Do you have active programs to better manage turnover?

Performance Metrics for New Hires

• Is there a reduced quota or performance expectation for new sales people in training?
• Approximately what percentage of your new sales people actually meet these expectations?
• Is there a disciplinary process applied to new hires who don't perform to standards in the training period?
• Are your new sales reps measured on metrics other than sales performance?

Current Force

• Does your current force receive routine refresher training?
• Is there an advanced selling skills curriculum available to experienced sales people?
• Do you attempt to balance the level of experience/knowledge of trainees with the courses offered? Do the class participants share a common technical background?
• Is the same field training staff used for new hire training and refresher training for experienced sales staff?
• What percentage of your overall sales training is conducted by your internal staff, as opposed to contract third-party training? Are contract training resources used for specific topics or areas?
• What are the broad areas of cost, and their relative size, of refresher training for an experienced sales person?
• How is training for your sales force handled for new product launches and new promotions?

Sales Management

• Are sales managers hired from outside the company? Often or rarely?
• What type of routine training do your first line sales managers receive?
• Is there a defined career progression for sales people into sales management?

Technology

• Is your sales force equipped with laptops? Are they used for sales training? If not, are there facilities where computer-based training is provided?
• Do you use your intranet for training activities? Have you used the Internet to support sales training?
• Does you use your corporate intranet to routinely disseminate information to the sales force?
• Does the sales force use tele-conferencing and/or video-conferencing for sales training?
• Do you use, or are you aware of, any unique and innovative uses of technology in sales training?

© 1998 Hamilton Consultants