Category Archives: Scaling

Hiring Profiles: Step 0 of a Successful Onboarding Program

Happily, in the past several years startups are increasingly recognizing the value of strong sales enablement and sales productivity teams.  So it’s no surprise that I hear a lot about high-growth companies building onboarding programs to enable successfully scaling their sales organizations and sustain their growth.  What’s disappointing, however, is how little I hear about the hiring profiles of the people that we want to put into these programs.

Everyone loves to talk about onboarding, but everybody hates to talk about hiring profiles.  It doesn’t make sense.  It’s like talking about a machine — how it works and what it produces — without ever talking about what you feed into it.  Obviously, when you step back and think about it, the success of any onboarding program is going to be a function of both the program and people you feed into it.  So we are we so eager to talk about the former and so unwilling to talk about the latter?

Talking about the program is fairly easy.  It’s a constructive exercise in building something that many folks have built before — so it’s about content structuring, best practice sharing, and the like.  Talking about hiring profiles — i.e., the kind of people we want to feed into it — is harder because:

  • It’s constraining.  “Well, an ideal new hire might look like X, but we’re not always going to find that.  If that one profile was all I could hire, I could never build the sales team fast enough.”
  • It’s a matter of opinion.  “Success around here comes in many shapes and sizes.  There is not just one profile.”
  • It’s unscientific.  “I can just tell who has the sales gene and who doesn’t.  That’s the hardest thing to hire for.  And I just know when they have it.”
  • It’s controversial.  “Turns out none of my six first-line sales managers really agree on what it takes — e.g., we have an endless debate on whether domain-knowledge actually hurts or helps.”
  • It’s early days.  “Frankly, we just don’t know what the key success criteria are, and we’re working off a pretty small sample.”
  • You have conflicting data.  “Most of the ex-Oracle veterans we’ve hired have been fish out of water, but two of them did really well.”
  • There are invariably outliers.  “Look at Joe, we’d never hire him today — he looks nothing like the proposed profile — but he’s one of our top people.”

That’s why most sales managers would probably prefer discussing revenue recognition rules to hiring profiles.  “I’ll just hire great sales athletes and the rest will take care of itself.”  But will it?

In fact, the nonsensicality of the fairly typical approach to building a startup sales force becomes most clear when viewed through the onboarding lens.

Imagine you’re the VP of sales enablement:

“Wait a minute. I suppose it’s OK if you want to let every sales manager hire to their own criteria because we’re small and don’t really know for sure what the formula is.  But how am I supposed to build a training program that has a mix of people with completely different backgrounds:

  • Some have <5 years, some have 5-10 years, and some have 15+ years of enterprise sales experience?
  • Some know the domain cold and have sold in the category for years whereas others have never sold in our category before?
  • Some have experience selling platforms (which we do) but some have only sold applications?
  • Some are transactional closers, some are relationship builders, and some are challenger-type solution sellers?”

I understand that your company may have different sales roles (e.g., inside sales, enterprise sales) [1] and that you will have different hiring profiles per role.  But you if you want to scale your sales force — and a big part of scaling is onboarding — then you’re going to need to recruit cohorts that are sufficiently homogeneous that you can actually build an effective training program.   I’d argue there are many other great reasons to define and enforce hiring profiles [2], but the clearest and simplest one is:  if you’re going to hire a completely heterogeneous group of sales folks, how in the heck are you going to train them?

# # #

Notes

[1] Though I’d argue that many startups over-diversify these roles too early.  Concretely put, if you have less than 25 quota-carrying reps, you should have no more than two roles.

[2] Which can include conscious, deliberate experiments outside them.

 

 

Book Review: Enablement Mastery by Elay Cohen

I had the pleasure of working with Elay Cohen during my circa year at Salesforce.com and I reviewed SalesHood, his first book, over four years ago.  We were early and happy customers of the SalesHood application at Host Analytics.  I’m basically a big fan of Elay’s and what he does.  With the average enterprise SaaS startup spending somewhere between 40% to 80%+ of revenue on sales, doesn’t it make sense to carve off some portion of that money into a Sales Enablement team, to make sure the rest is well spent?  It sure does to me.

I was pleased to hear that Elay had written a second book, Enablement Mastery, and even more pleased to be invited to the book launch in San Francisco several weeks back.  Here’s a photo of Cloudwords CEO Michael Meinhardt and me at the event.

50023900_10157090392582028_3547117110700277760_o

I have to say I simply love salesops and sales productivity people.  They’re uniformly smart, positive, results-oriented, and — unlikely many salespeople — process-oriented.  A big part of the value of working with SalesHood, for a savvy customer, is to tap into the network of amazing sales enablement professionals Elay has built and whose stories are profiled in Enablement Mastery.

I read the book after the event and liked it.  I would call it a holistic primer on sales enablement which, since it’s a relatively new and somewhat misunderstood discipline, is greatly in need in the market.

Elay’s a great story-teller so the book is littered with stories and examples, from his own considerable experience building the impressive Salesforce.com sales productivity team, to the many stories of his friends and colleagues profiled in the book.

Some of the more interesting questions Elay examines in Enablement Mastery include:

  • Why sales enablement?
  • Where to plug it organizationally?  (With pros and cons of several choices.)
  • What to do in your first 90 days in a new sales enablement role?
  • What to look for when hiring sales enablement professionals?
  • How to get organizational (and ideally strong CEO) buy-in to the sales enablement program?
  • How sales enablement can work best with marketing?  (Hint:  there is often tension here.)
  • What is a holistic process map for the sales enablement function?
  • How to measure the sales enablement function?  (And it better be more than instructor ratings on the bootcamp.)
  • How to enable front-line managers to be accountable for their role enabling and developing their teams?  (Elay wrote a whole chapter on this topic.)
  • How to conduct a quarterly business review (QBR)?
  • How managers can use basic Selling through Curiosity principles to coach using curiosity as well?
  • How to build an on-boarding plan and program?
  • What core deliverables need to be produced by the marketing and sales productivity teams?

Elay, never one to forget to celebrate achievement and facilitate peer-level knowledge sharing, also offers tips on how to runs sales kickoffs and quota clubs.

Overall, I’d highly recommend Enablement Mastery as a quick read that provides a great, practical overview of an important subject.  If you’re going to scale your startup and your sales force, sales enablement is going to be an important part of the equation.

Video of my SaaStr 2018 Presentation: Ten Non-Obvious Things About Scaling SaaS

While I’ve blogged about this presentation before, I only recently stumbled into this full-length video of this very popular session — a 30-minute blaze through some subtle SaaS basics.  Enjoy!

I look forward to seeing everyone again at SaaStr Annual 2019.

My SaaStr Talk Abstract: 10 Non-Obvious Things About Scaling SaaS

In an effort to promote my upcoming presentation at SaaStr 2018, which is currently on the agenda for Wednesday, February 7th at 9:00 AM in Studio C, I thought I’d do a quick post sharing what I’ll be covering in the presentation, officially titled, “The Best of Kellblog:  10 Non-Obvious Things About Scaling SaaS.”

Before jumping in, let me say that I had a wonderful time at SaaStr 2017, including participating on a great panel with Greg Schott of MuleSoft and Kathryn Minshew of The Muse hosted by Stacey Epstein of Zinc that discussed the CEO’s role in marketing.  There is a video and transcript of that great panel here.

saastr

For SaaStr 2018, I’m getting my own session and I love the title that the folks at SaaStr came up with because I love the non-obvious.  So here they are …

The 10 Non-Obvious Things About Scaling a SaaS Business

1. You must run your company around ARR.  Which this may sound obvious, you’d be surprised by how many people either still don’t or, worse yet, think they do and don’t.  Learn my one-question test to tell the difference.

2.  SaaS metrics are way more subtle than meets the eye.  Too many people sling around words without knowing what they mean or thinking about the underlying definitions.  I’ll provide a few examples of how fast things can unravel when you do this and how to approach SaaS metrics in general.

3.  Former public company SaaS CFOs may not get private company SaaS metrics.  One day I met with the CFO of a public company whose firm had just been taken private and he had dozens of questions about SaaS metrics.  It had never occurred to me before, but when your job is to talk with public investors who only see a limited set of outside-in metrics, you may not develop fluency in the internal SaaS metrics that so obsess VC and PE investors.

4.  Multi-year deals make sense in certain situations.  While many purists would fight me to the death on this, there are pros and cons to multi-year deals and circumstances where they make good sense.  I’ll explain how I think about this and the one equation I use to make the call.

5.  Bookings is not a four-letter word.  While you need to be careful where and when you use the B-word in polite SaaS company, there is a time and place to measure and discuss bookings.  I’ll explain when that is and how to define bookings the right way.

6.  Renewals and satisfaction are more loosely correlated than you might think.  If you think your customers are all delighted because they’re renewing, then think again.  Unhappy customer sometimes renew and happy ones don’t.  We’ll discuss why that happens and while renewal rates are often a reasonable proxy for customer satisfaction, why you should also measure customer satisfaction using NPS, and present a smart way to do so.

7.  You can’t analyze churn by analyzing churn.  To understand why customers churn, too many companies grab a list of all the folks who churned in the past year and start doing research and interviews.  There’s a big fallacy in this approach.  We’ll discuss the right way to think about and analyze this problem.

8.  Finding your own hunter/farmer metaphor is hard.  Boards hate double compensation and love splitting renewals from new business.  But what about upsell?  Which model is right for you?  Should you have hunters and farmers?   Hunters in a zoo?  Farmers with shotguns?  An autonomous collective?  We’ll discuss which models and metaphors work, when.

9.  You don’t have to lose money on services.  Subsidizing ARR via free or low-cost services seems a good idea and many SaaS companies do it.  But it’s hell on blended gross margins, burns cash, and can destroy your budding partner ecosystem.  We’ll discuss where and when it makes sense to lose money on services — and when it doesn’t.

10.  No matter what your board says, you don’t have to sacrifice early team members on the altar of experienced talent.  While rapidly growing a business will push people out of their comfort zones and require you to build a team that’s a mix of veterans and up-and-comers, with a bit creativity and caring you don’t have to lose the latter to gain the former.

I hope this provides you with a nice and enticing sample of what we’ll be covering — and I look forward to seeing you there.