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The Psychology Of Goal Setting In Sales

18th January 2024

It’s a new year and there’s lots of blogs and articles doing the rounds on how to set goals. But why are they important? And what is the psychology behind them? Read on to find out more.

Why do goals work?

Quite simply setting goals is shown to increase one’s motivation. The simple act of articulating what you want to achieve enables one to take the next step and to consider what is required to achieve the desired result. In fact, research shows that setting goals can increase achievement by up to 30%.

Good goals

Performance goals have been shown to negatively impact upon trust in management and to compromise organisational performance.  In sales, they might reward counter-productive behaviour such as a desire to offer discount in order to secure an order. A good goal of course does the opposite. Research shows that the most powerful goals are:

1.     specific (as opposed to doing your best),

2.     challenging yet realistic,

3.     clear,

4.     include short, medium and long-term

Goals increase persistence and self-efficacy, making individuals less susceptible to the undermining effects of anxiety, disappointment and frustration (Schunk, 1990). Abuhamdeh and Csikszentmihalyi (2012) showed that challenge is particularly important for the enjoyment of intrinsically motivated and goal-directed activities. Deci & Ryan (2000) found that achieving an optimally challenging task gives people a true feeling of competence. A combination of short-term and long-term goals is ideal to sustain motivation and persistence (Turkay, 2014).

Goals in sales

It makes sense that goals should be a useful in sales where success in achieving the objective is easily determined. In their research into the Sales Challenger, Dixon and Adamson (2011) found that top performers are focused on long-term goals as opposed to short-term measures. Dudley & Goodson (2007) identified that goal clarity is positively associated with performance, but only up to a point. Where goal setting morphs into detailed planning it can result in sellers over-preparing for events which negatively impact upon their performance.

Of course, goals alone are not enough. In order to be effective, a salesperson must have high levels of motivation, goal clarity and commitment. A seller must want to perform well and have sufficient focus on their goals to be able to direct their energy towards the right activities.

Conclusion

So there you have it. Good goals are effective in helping to set direction and can be used to ensure that the activities of the salesperson are aligned. However, when goals are broken down too far they can reduce activity and negatively impact upon sales performance. And remember that goals alone are not enough. There is an important relationship between motivation, commitment and goals that enables top performers to direct their effort and energy towards the right activities.

References

Abuhamdeh, S. and Csikszentmihalyi, M. (2012). The importance of challenge for the enjoyment of intrinsically motivated, goal directed activities. Personality and Social Psychology Bulletin, 38, 317330.

Dixon, M. and Adamson, B. (2011), The Challenger Sale. How to Take Control of the Customer Conversation. Penguin.

Dudley, G.W. and Goodson S.L. (2007), The Psychology of Sales Call Reluctance. Behavioural Sciences Research Press.

Latham, G. P. & Locke, E. A. (1979). Goal set ting: A motivational technique that works. Organizational Dynamics, 8(2), 6880.

Mento, A.J., Steel, R.P., & Karren, R.J. (1987). A metaanalytic study of the effects of goal set ting on task performance. Organizational Behavior and Human Decision Processes, 39, 5283.

Schunk, D. H. (1990). Goal set ting and self-efficacy during self-regulated learning. Educational Psychologist, 25, 7186.

Turkay, S. (2014). Setting Goals: Who, Why, How?. Manuscript.

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The Number One Behaviour Of Top Salespeople (And Why That Isn’t Enough On Its Own)

2nd November 2023

When we embarked on our journey to uncover the key capabilities that determine success in B2B sales we weren’t sure what we’d find.  Our own work with salespeople across different industries indicated that high performers shared many common qualities.  But we couldn’t be certain that this would hold true when scaled-up to include multiple studies encompassing more than 20,000 salespeople globally.  Remarkably, however, our analysis revealed a strikingly consistent picture of what great looks like in B2B sales.

The results are there for all to see in our Acuity whitepaper; 9 key Capabilities (drives and behaviours) that determine success in what we refer to as a strategic sales environment; strategic due to factors such as the complexity of the solution being sold, its high value which draws in multiple decision-makers, and the effect that has on increasing purchase indecision and the length of the sales cycle.

But does the Acuity research translate into real-world businesses?  When working with clients we always recommend that they allow us to undertake a validation study, to determine their organisational ROI.  Validation studies can take various forms but essentially involve comparing actual sales performance to sellers’ Acuity profiles.  In one example we used our psychometric self-assessment with a healthcare insurance provider to compare in-role performance to Acuity results.  Analysis of the data showed that the single biggest differentiator between the Top 1/3 salespeople and the rest was Connectedness.

Another validation study within a media business used self-ratings from our Acuity 360 tool to evaluate each salesperson.  Regression analysis was used to identify the most predictive Acuity Capability and, here again, it was Connectedness.  In terms of ROI, sellers in the top 50% of Acuity profiles delivered an average of 23% more in sales revenue per month than their peers.

Clearly Connectedness is an important driver of success.  But what does being connected mean?  In our definition it is about developing networks within one’s client or prospective client to build a better understanding of the key stakeholders, influencers and decision-makers.  It also includes being well-connected internally so that colleagues can share intelligence, make introductions and support the sale.  Crucially, it is about being proactive in seeking value from these networks by asking for referrals, recommendations and intelligence.

Top-performing salespeople who demonstrate Connectedness:

  • Build their external networks

  • Invest in their internal networks

  • Seek value from these networks

However, showing Connectedness on its own is unlikely to be enough to make someone a top performer.  The original Acuity research identified 9 Capabilities in total that distinguished high performers from the rest.  Dig further into the validation studies described above and the picture becomes less clear.  If we take the 3 strongest correlating Capabilities in each case, then Connectedness comes out on top.  However, for the media business that is followed by Goal Focus (alignment of one’s objectives to the goal they are trying to achieve) and Drives the Sale (taking control and creating momentum).  For the healthcare insurer it is Interpersonal Style (how one flexes their own behaviour to maximise their interactions with different stakeholders) and Goal Focus.

Taking a further step back, we looked at the correlations for every Acuity Capability.  In the case of the media business, all 9 capabilities showed a positive correlation with sales performance.  For the healthcare insurer, six capabilities correlated with sales performance while the remaining three correlated with line manager ratings.

It is clear that being connected is a critical factor in determining success in B2B sales.  Indeed, in these examples it is the most important factor.  However, it is also true that it is not enough on its own.  The precise order of importance may vary across sectors, and perhaps even among different organisations within the same sector, but for individual sellers to excel they must possess a wider will and skillset.

If you’d like to understand your organisation’s typical seller persona, clarify the development needs of your sales team or determine the ROI that Acuity could achieve for your business we’d love to hear from you.

Sales Transformation Strategy
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Put Your Salespeople At The Heart Of Sales Transformation

5th July 2023

The ultimate aim of any sales transformation strategy is to grow revenue and drive greater profit. In B2B sales the relationship between buyer and seller has changed dramatically in recent years leaving sellers with little opportunity to influence buyer decision-making. Some see the rise in online sales channels and the apparent preference of some buyers to purchase without engaging a salesperson at all as a sign that the role of the salesperson has diminished.

In light of this new reality it may be tempting to focus sales transformation programmes on tech investment and the systems and processes that need to change. However, others tell a different story. One where the role of the salesperson may have evolved but to the benefit of all parties. Deep sales is the buzzword, where technology drives insights about customers that enables salespeople to focus their time where it will have most impact. Yes, that may be later on in the buying cycle and they may not have the customers’ attention for long but, when they do, a great salesperson can make a massive difference.

Any investment in sales systems should not be at the expense of sales talent. Ensuring that there is clarity (and training) on the behaviours that drive success is crucial. Studies show that less than a third of all business transformations succeed, with a staggering 70 percent of failures due to “an organisation’s inability to adopt the required new behaviours quickly and completely.” In fact, McKinsey, argue that “businesses need to invest at least as much in organisational culture and health as in the intricacies of what will change on the ground” when embarking on transformation programmes.

At Bloojam, we’ve studied salespeople to identify the key capabilities that drive superior sales performance. Salespeople who consistently demonstrate these capabilities are proven to achieve higher performance ratings, deliver greater revenue performance and exceed target.

Find out more about these capabilities and their impact on sales performance here.

Jim Bloomfield is a Director at Bloojam Consulting with 20 years experience of assessing and developing salespeople and leaders.

Blogs Business Consulting Sales Development Sales Leadership Sales Training Uncategorised War for Talent

Don’t Let Your Sales Talent Walk Out The Door

9th March 2023

In a recent Gartner survey, 89% of salespeople reported feeling burned out and 54% were actively seeking alternative employment. Furthermore, nearly 70% felt that management doesn’t understand how to motivate them. These are worrying numbers for any organisation that is serious about retaining top sales talent.

Fortunately, the 2 key themes that prevent sellers performing at their best, a lack of development opportunities and a lack of empowerment, can be addressed.

It’s easy to say that sales leaders need to invest more time in supporting their teams when the average leader spends less than 10% of their time on developing their reports. But to be truly effective they first need to be able to accurately diagnose the problem, something that is unlikely to be the same for every member of the sales team.

At Bloojam, we look at a salesperson’s Drive through three lenses:

  1. Motivation; are they a self-starter, focused on achieving excellent outcomes, persistent in the face of setbacks and driven to solve client problems?
  2. Goal focus; do they have clarity about what they are trying to achieve, are they focused on the end goal and the actions required to successfully reach it?
  3. Self-belief; are they confident in their ability to positively influence a sale, do they show resilience when faced with setbacks and self-awareness of their own strengths and limitation?

Truly understanding what is impacting upon the Drive of your sales team, at an individual and collective level, allows sales leaders to provide much more targeted support and challenge to their teams. By facilitating more detailed discussion of the key causes, personal to them, of their burnout or demotivation, salespeople are much more likely to open up and engage with the conversation. As a result, the sales leader can respond to the needs of the individual rather than taking a ‘one-size-fits-all’ approach to re-energising their sales team.

That benefits the individual as they will feel that their manager truly understands their needs. It benefits the sales leader as the limited time they have with team members can be focused on the factors most likely to enhance performance. And it benefits the organisation as any subsequent training or support can be tailored to individual needs, thereby ensuring that training budget ROI is maximised.

Jim Bloomfield is a Director of Bloojam Consulting with 20 years’ experience of using business psychology to develop salespeople and leaders. He is a member of the Association of Business Psychology (ABP) and the British Psychological Society (BPS) and has successfully helped some of Britain’s best-known businesses exceed their sales goals.

Bloojam Consulting offers a range of robust recruitment and development tools and interventions, including the Acuity for Strategic Sales suite of psychometric assessment and development tools.

Blogs Business Consulting Human Resources Human Resources Learning & Development Professional Services Sales Development Sales Recruitment Sales Training Uncategorised War for Talent

Demystifying Sales For Professional Services

2nd February 2023 No Comments

More and more of the leaders we speak to in professional services firms recognise the importance of enhancing sales capability as they pursue growth during challenging economic circumstances. In the past the language used has typically dressed sales up as something else…. client origination, business development, practice growth etc. But this is no more.

Individuals too also recognise the need to develop their sales capability if they are to be successful. However, being open to the idea of “sales” isn’t necessarily the same as feeling equipped and capable to carry out this critical element of the role. Firms are typically very good at communicating the requirements to progress as a leader, articulated through bespoke frameworks and values statements that create clarity, and they put a lot of effort into supporting new and emerging leaders. However, provision is more patchy and ad-hoc when it comes to developing B2B sales capability. There are very few sales frameworks out there and training, when it takes place, tends to focus more on the sales process than the person and the behaviours and attributes required to be successful in strategic sales.

That is changing as clients recognise the importance of nurturing and retaining their people, in the context of the scarcity and expense of finding top talent in the market, if they are to achieve the growth they seek. Today we are seeing firms create training academies and defined career paths for sales professionals, in a manner similar to leadership development programmes, that provide their client-facing teams with clearly-signposted opportunities for progression.

At Bloojam, we work with clients to ensure that they have a clear understanding of the key drivers, behaviours and attributes that drive superior B2B sales performance. Successful organisations are able to apply this knowledge to promote and hire people who want to be on that journey and to develop them once in the role. Using such a blueprint helps to demystify B2B sales for both the individual role holder and supports organisations to supercharge the performance of their client-facing teams.

Sarah Clapperton is a Director at Bloojam Consulting and a Chartered Business Psychologist, with 20 years’ experience working in selection and development. She specialises in working with leaders and senior salespeople.

Bloojam Consulting offers a range of robust recruitment and development tools and interventions, including the Acuity for Strategic Sales suite of psychometric assessment and development tools.

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Should 360 Feedback Surveys Feature In Sales Transformation Programmes? What The Research Tells Us.

11th January 2022 No Comments

In earlier blogs we have considered the features of successful sales training and the value that coaching can bring.  Our focus now turns to 360 feedback.

Can multi-rater feedback improve workplace performance?  The answer from academic literature is mixed and could be summarised as “yes, provided that….”.   Previous research has shown that multisource feedback can be an effective method of improving work performance in its own right (Kluger & DeNisi, 1996; Smither et al, 2003).  Many researchers agree on the potential for 360 programmes to raise self-awareness and have a positive impact on performance, but mixed empirical findings can be attributed to the “high degree of variation in design features across 360 processes” (Bracken and Rose, 2011) and the fact that often the content of the feedback is provided to the individual without a coach or facilitator to help them understand it (Lawrence, 2015).

Research shows that for 360 feedback to have a positive impact on performance it must:

  • be accepted by the individual (Alexander, 2006; Smither et al, 2005)
  • be conducted by a trained professional (e.g., McDowall and Kurz, 2008; Alexander, 2006; Latham et al, 2005)
  • involve goal setting for the participant (Latham et al, 2005; Smither et al, 2005)
  • provide “short- and long- term support for participants, as they seek to make sense of the feedback and commit to specific actions” (Lawrence, 2015)
  • “provide a comprehensive and valid measure of workplace behaviour” (McDowall and Kurz, 2008) that is linked to the purpose of the programme (Lawrence, 2015).

The latter point is particularly relevant in our experience of working with sales organisations.  Historically, many have used generic 360 surveys more geared to measuring leadership or general workplace behaviours, whereas what they should measure are the capabilities that drive improved sales performance.

The importance of the skill and diplomacy of the feedback facilitator in navigating the potential sensitivities and nuances of 360 data is highlighted by a number of authors and researchers, because it is critical that the feedback is understood and accepted by the individual in order for there to be a commitment to goals and behaviour change (Alexander, 2006; Latham et al, 2005; Lawrence, 2015).

Finally, the overall sponsorship and positioning of the 360 programme is key, as it must be based on mutual trust and buy-in that is fostered through good communication (McDowall and Kurz, 2008).

Combining 360 and coaching: turbo powering the impact on performance

 Whilst there is a lack of research specific to the field of sales, there is a growing body of evidence that shows professional coaching support following 360 feedback can be a powerful way to improve performance.

  • A large study of over 1000 senior managers examined the effects of executive coaching on 360 feedback over time. One year later, they found that managers who worked with a coach were more likely to set specific (rather than vague) goals, to solicit ideas for improvement from their superiors and had improved more than other managers in terms of 360 ratings (Smither et al, 2003).
  • Luthans and Peterson (2003) found that participants need systematic coaching along with the 360 degree feedback in order to gain self-awareness and have a positive impact on work satisfaction and organisational commitment.
  • Thach (2002) found that the combination of 360 feedback and individual coaching increases leadership effectiveness by up to 60 per cent.

In contradiction, Jones et al’s (2015) review suggests that using 360 feedback reduces the size of the positive impact of coaching. However, they acknowledge that this may be due to issues of the participants not accepting the feedback or using generic leadership surveys that have no direct relevance to their objectives. In other words, poorly designed or delivered 360 programmes will inevitably not achieve your desired aims.

McDowall and Kurz (2008) conclude that coaching and 360 feedback processes are mutually beneficial as “coaching is helpful for initiating and embedding behaviour change following the initial feedback process” and “360 feedback measures make an effective contribution to the coaching process, as differences in ratings provide both the coachee and coach with valuable information about levels of effective performance at work….”.

Key Findings:

  • Goal-setting and ongoing support for the individual enhances the impact of a 360 feedback programme
  • If you want to change sales behaviour, you need to measure sales behaviour in your 360
  • Feedback must be accepted and understood by the recipient in order for them to commit to behaviour change
  • Combining 360 feedback with ongoing coaching will turbocharge its impact

 

Bloojam are business psychologists who take an evidence-based approach to selecting and developing salespeople, leaders and sales leaders.  To learn more about our Academy approach to developing sales capability in your workforce please visit our website.

 

Alexander, D.M. (2006) How Do 360 Degree Performance Reviews Affect Employee Attitudes, Effectiveness and Performance? Seminar Research Paper Series. Paper 8. http://digitalcommons.uri.edu/lrc_paper_series/8http://digitalcommons.uri.edu/lrc_paper_series/8

Bracken, D.W. & Rose, D.S. (2011) When Does 360-Degree Feedback Create Behavior Change? And How Would We Know It When It Does? Journal of Business and Psychology 26, Article number: 183

Jones, R. J., Woods, S. A., & Guillaume, Y.R.F. (2016) The effectiveness of workplace coaching: A meta-analysis of learning and performance outcomes from coaching. Journal of Occupational and Organizational Psychology, 89, 249-277.

Kluger, A.N.  & DeNisi, A. (1996) The Effects of Feedback Interventions on Performance: A Historical Review, a Meta-Analysis, and a Preliminary Feedback Intervention Theory. Psychological Bulletin, II9(2), 254-284

Latham, G.P., Almost, J., Mann, S. & Moore, C. (2005) New Developments in Performance Management. Organizational Dynamics, Vol. 34, No. 1, pp. 77–87.

Lawrence, P. (2015), “A best practice model for the effective deployment of 360° feedback”, Development and Learning in Organizations, Vol. 29 No. 6, 13-16.

Luthans, F. & Peterson, S. J. (2004) 360‐degree feedback with systematic coaching: Empirical analysis suggests a winning combination. Human Resource Management 42(3), 243-256.

McDowall, A. & Kurz, R. (2008) Effective integration of 360 degree feedback into the coaching process. The Coaching Psychologist, 4(1)

Smither, J.W., London, M. & Reilly, R.R. (2005) Does performance improve following multisource feedback? A theoretical model, meta-analysis and review of empirical findings. Personnel Psychology, 58, 33-52.

Smither, J.W., London, M., Flautt, R., Vargas, Y., Kucine, I. (2003) Can working with an executive coach improve multisource feedback ratings over time? A quasi experimental field study. Personnel Psychology 56, 1, p23-44

Thach, E C (2002) “The impact of executive coaching and 360 feedback on leadership effectiveness” Leadership & Organization Development Journal Vol. 23 No. 4, pp. 205-214.

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6 Reasons You Should Use 360 Feedback and Coaching To Create A Sales Culture

24th November 2020 No Comments

In our previous blog we looked at the 5 things needed to supercharge sales training. But sales training in isolation is doomed to fail with one estimate indicating that when it comes to transformation programmes “70 percent of failures are due to an organisation’s inability to adopt the required new behaviours quickly and completely”.

When evaluating the impact of training, many organisations will measure feedback from participants as evidence for success. Others may apply a formal measure of learning in the form of an assessment at the end of the training. But the most powerful measures of success are ‘learning transfer’- do the individuals apply what they have learned back in the real world- and what is the impact upon business performance.

So what can an organisation do beyond sales training that will directly impact upon the bottom line? Research indicates that combining 360 feedback with ongoing coaching to support training can be very powerful for the following reasons:

  • 360 feedback with individual coaching has been shown to increase leadership effectiveness by up to 60 per cent. By soliciting feedback from a number of individuals known to (and usually respected by) the participant the results are very targeted and personal in a way that sales training is not.
  • The coach is able to support the participant to understand the feedback results and to link these to actions that will change behaviour.
  • Coaching alongside training helps to embed learning and facilitates learning transfer by encouraging individuals to set work-based actions and activities. In effect, the coachee takes ownership for turning training ‘theory’ into practice.
  • In subsequent coaching sessions the coach is able to hold the coachee to account by encouraging the individual to review their actions and the effectiveness of these. ‘Live’ situations can be dissected enabling the individual to amend existing activities or to identify new actions that will enable them to handle that situation more effectively.
  • Goal-setting is found to enhance the impact of coaching. This is different from identifying specific actions. Goals are over-arching objectives that show the individual the destination that their many small activities will lead them towards. Having goal clarity is shown to enhance workplace performance.
  • Above all else, the key to successful coaching is the quality of the coach and their relationship with the coachee. Internal coaches can be effective but if training managers to be coaches it is critical that they are well trained and have the relevant skills and characteristics to support quality relationships with their coachees.

So if you want to maximise the impact of your sales training, we strongly recommend that you support any such program with 360 feedback and ongoing coaching.

 

Jim Bloomfield is a Director of Bloojam Consulting with 20 years’ experience of using business psychology to develop salespeople and leaders. He is a member of the Association of Business Psychology (ABP) and the British Psychological Society (BPS) and has successfully helped some of Britain’s best-known businesses exceed their sales goals.

 

Blogs Business Consulting Human Resources Learning & Development Sales Development

How HR Can Influence Business Leaders To Develop Their People

23rd June 2020 No Comments
Helping HR To Speak The Language Of Business

When we see HR leaders and Sales leaders together around the table it can be interesting to hear the different language being used.

HR professionals often talk in people terms such as ‘talent’ ‘personal development’ and ‘engagement’.  They often see the value of robust selection and development practices in terms such as ‘talent pipeline’, ‘succession planning’ and ‘future leaders’.

Sales leaders often talk in terms of ‘targets’, ‘revenue’ and ‘sales performance’.

But, these are essentially two sides of the same coin.  Drawing a line between the two will help you to make the business case for using robust assessments for selection and development.   Here are some ways to support your argument for more ‘people’ focused activities that all business leaders can buy into.

  1. Reduce the risks and costs of wrong decisions

A good assessment process tells you more information about an individual than you can ever get in an interview alone. For example, an expert-led discussion with them about psychometric survey results will give you an invaluable insight into a person’s strengths, preferences, values, drivers and areas for development.

Armed with this rich information, you can make informed decisions about whether a candidate will perform well against the critical job criteria, whether your employee is ready for the next level of role or how to best spend your training budget to meet the specific needs of a team or department.

  1. Show me the money

A powerful business case will demonstrate the return on investment based on identifying the costs associated with poor selection or promotion decisions.

Questions to consider include:

  • How much does the recruitment / selection process cost?
  • How much does it cost to train someone in the new role?
  • How much does it cost the business while they are getting up to speed?
  • How much does it cost in re-training or performance management if a team member is underperforming?
  • What impact does it have on others if someone is underperforming? E.g. colleagues “carrying” their work, re-training them or becoming demotivated themselves; managers demotivating their team; a leader getting the direction wrong for the whole business.

Based on the answers to these questions, you’ll find that the cost of a robust selection process is a drop in the ocean in comparison. Click here for a useful ROI calculator to get you started.

  1. Provide the evidence

If you want to add even more weight to your business case, a validation study will link the results of the assessment method to key performance indicators in the role.  Take the example of a sales team; if you can identify which elements of personality and behaviour will drive sales performance then you can show the associated increase in income to the business if everyone was recruited against this profile. To see an example of how this has been done click here for more information.

  1. Hone your training budget

Using personality questionnaires, 360 surveys and other tools shows that as a business you are willing to invest in your people and their professional development. Using these as part of a development process can create a culture of self-awareness and self-development that didn’t previously exist. It can also provide team, department and organisational level themes that need to be addressed, thereby enabling you to make the best use of the training budget rather than taking a more costly “sheep dip” approach. Providing cost saving figures for your business leaders will again support your argument and help you to achieve your people aims.

In summary, an objective business case outlining the costs of getting it wrong and the value of getting it right can speak the language of senior peers and the C-Suite, helping HR leaders reach their own objectives while bringing other business leaders with them.

Sarah is a Chartered Business Psychologist and a Director of Bloojam Consulting.  With 20 years’ experience working in selection and development, she is passionate about using evidence-based approaches to add demonstrable value to both the individual and the organisation.

Blogs Business Consulting Sales Development Sales Leadership

If Salespeople Now Need To Sell Remotely, Why Not Recruit And Develop Them Remotely Too?

20th May 2020 No Comments

Prior to this global pandemic, the steady beat of the climate change drum was already becoming more urgent. Greta Thunberg had, to some extent, succeeded in ensuring that the climate crisis was a regular feature in news bulletins. In news that already seems a long time ago, Heathrow’s plans for a third runway was ruled illegal because the government failed to factor in the impact it would have upon its commitments to tackle the climate crisis whilst HS2 was given the green light.

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