Sales Production System

3 Reasons I’m Obsessed with Outputs (and Why You Should Be, Too)

Several years ago, I worked with a company launching a cross-selling strategy. The COO opened the meeting with, “We all own the number.” As a sales professional and consultant, I understood the intent of the message. But looking around the room, it was plain to see that non-customer-facing employees were baffled. How, exactly, did they “own” the number? Precisely what role did they play? That was the day I became obsessed with outputs.

For non-selling roles, that meant showing how their tasks and the documents they produce affect customer retention. For salespeople, the link is more direct: there is a clear connection between a salesperson’s outputs and closed-won deals that increase revenue. There are numerous reasons to focus on outputs. Today, I’ll share my top three.

But first, what are outputs?

Outputs are the tangible work products that salespeople produce in the course of doing their jobs. Just as a factory turns out widgets of repeatable quality at scale, salespeople produce outputs that directly result in increased sales, revenue, and profitability. Some examples include:

• Opportunity analysis: a deal qualification worksheet, complete with discovery, that supports accurate deal stage assignment. This is the most important salesperson output because it is the foundation of an accurate forecast for sales leadership.
• Sales pitch decks: customized to the customer’s journey and needs.
• Clearly defined next steps: steps that advance the sale, as opposed to having meeting one three times.
• Account plans and mutual close plans: documented strategies and agreed-upon timelines that move each opportunity toward a decision.
• Discovery documents, proposals, meeting notes, meeting agendas, and updated contact and account records.
• All other documents a salesperson creates in pursuit of the deal.

Why are outputs important?

First, outputs are leading indicators of success

Most sales organizations routinely track pipeline growth, percent to quota, win/loss ratios, and activities. Activities and tasks are typically treated like a to-do list. This is all good, but it is only part of the equation. Activities and tasks, together with the processes behind them, produce tangible work products: outputs. Outputs are the performance differentiator.

High-performing salespeople typically produce high-quality outputs. Their opportunity analyses are more in-depth, their sales pitch decks reflect more thought and customer input, and their pitch delivery is more confident, crisp, and clear. It is apparent that the exemplary performer practices and prepares more than their average-performing teammates. It is a worthwhile exercise to identify the high performers and learn from them.

Most important, outputs can be monitored and measured early and often to ensure all salespeople are on a successful path, which leads us to the second reason to focus on outputs.

Second, outputs provide coaching opportunities

Coaching in a typical sales organization sounds a lot like, “Where are we with this deal, and what do we need to do to close it?” That’s OK; deal coaching is important. However, the problem is twofold: managers have the same conversation deal after deal, and reps learn little they can apply to the next one.

A better approach is to coach to outputs with identified quality standards. This is a forward-looking exercise, as opposed to the “rear-view mirror” approach. Managers set realistic and incremental knowledge, skill, and performance expectations, which they can observe and evaluate continuously in the field, in front of customers.

Consider the opportunity analysis. A high-quality opportunity analysis shows:

• Customer-confirmed pain and business impact, in the customer’s own words
• Quantified metrics
• An economic buyer who is named and engaged
• A mapped decision process and paper process
• A tested champion
• A dated mutual close plan

Managers score each criterion on a scale of 1 to 3. The scores show exactly where a deal is strong, where it is at risk, and what the rep needs to work on, and those lessons carry over to the next deal.

Used in this way, outputs are an excellent proactive diagnostic tool, a good segue to the third reason to focus on outputs.

Third, outputs drive results

A manager who focuses on coaching to outputs spends more time teaching and coaching average performers. The benefits of this activity are significant. Imagine a traditional bell curve. It is easy for the manager to place high performers and low performers on the curve. The challenge is positioning the middle performers, typically 68% of the overall sales team. The reward associated with this task is considerable.

What would it mean to your sales team and your entire sales organization if, through your coaching efforts, you shifted the middle 68% just one standard deviation to the right? Now all team members are contributing to the revenue goal, and the risk of relying on a core group of sales stars is dramatically reduced.

And that doesn’t even address the benefits to the salesperson: more rewards and recognition, more money, and more confidence.

Finally

Less quantifiable, but just as important, an obsession with outputs is an obsession with the value each individual brings to their role. It speaks volumes about the worth of the individual and the work they produce, because it identifies and recognizes the specific impact their work has on the company’s success. An obsession with outputs improves performance, morale, productivity, and job satisfaction.

How is your team performing?

A good place to start is the Sales Production System Performance Grid. Place each of your team members on the grid, identify gaps, and build a plan to move everyone toward the top right.