Does Grit Lead to High Performance in Sales?

Does Grit Lead to High Performance in Sales?
by Kirk Wakefield – June 2017

What is Grit?

Angela Duckworth made an industry out of her own passion and perseverance toward a long-term goal–her definition of grit–and measuring it in others.

Controlling for other factors (SAT scores, IQ, self-control, and the Big 5 personality traits), she and her colleague’s research[ref]Duckworth, Peterson, Matthews & Kelly (2007), “Grit: Perseverance and Passion for Long-Term Goals,” Journal of Personality & Social Psychology.[/ref] found the grit items (click here to see if you have grit) to be good predictors of performance among spelling bee contestants, Ivy league students and West Point cadets. Gritty children work harder and longer, performing better in national spelling bees. Gritter students attain higher levels of education among those of the same age, but grit does appear to increase as we get older.[ref]Duckworth &  Quinn (2009), “Development and Validation of the Short Grit Scale,” Journal of Personality Assessment.[/ref]Gritty cadets are more likely to complete training. Those with more grit experience fewer lifetime career changes.

The question is: Is grit a good predictor of sales performance in professional sports? In particular, accounting for popular DISC behavioral measures and factors under sales management’s control, does measuring grit offer potential help in recruiting and retention of salespeople?

The Study

Data were collected from 307 salespeople (89% < 4 years experience; 67% males; 98% with at least college degrees) and 34 managers from 18 professional teams in MLB, NBA, MLS, NFL, and NHL. Respondents provided demographics and completed measures of:

  1. DISC behavioral profile
  2. Grit
  3. Impression management (to account for social desirability bias)
  4. Adaptive selling skills
  5. Extent of sales training provided by the organization
  6. Confidence in selling skills
  7. Job satisfaction
  8. Sales performance relative to others in department (dollar sales, new packages, major accounts, exceeding targets, helping supervisor & dept hit goals)
  9. Selling effort relative to others in the department (hours, effort, contacts made)

Different from other studies, we collected sales performance and effort evaluations on exactly the same items (#8 & #9) from the direct supervisors of each sales representative. Each sales manager examined current sales performance (in dollars), rank ordered those in the department, and then completed the performance evaluations for the first quarter of the 2017 year. In total, we were able to match 288 responses (i.e., inside sales and account executives) with supervisor evaluations. [ref] We conducted a second study among sales staff (N = 144) across the entire East Coast Hockey League with similar results. [/ref]

The Results of Grit

The types of achievements studied by Duckworth each culminated in an event (i.e., completing college, West Point, or a Spelling Bee). A sales career is a series of continuous competitions, where standings update daily, and the conclusion uncertain. Does grit directly predict performance?

Among salespeople in professional sports, grit indirectly influences sales performance in two important ways:

  1. Grittier salespeople give relatively more effort than other salespeople, including hours spent selling and the total number of contacts made. In turn, effort (work ethic) drives performance in this data.
  2. Grittier salespeople are more satisfied with their jobs, which means lower turnover. Satisfied salespeople give more effort, which leads to higher performance.

Bottom line: Hire gritty salespeople. Use the grit scales as one input in recruiting. Mean grit score among cadets (3.75) and our study (3.82) would be a good baseline.

Grit scores at the highest levels may be a function of impression management, saying what we want to hear. But, either way, people who say they have more grit are evaluated by their managers as giving more effort. In a battery of measures, grit scores offer insight. [ref]If potential reps willingly admit having little grit (i.e., scores low on the grit scale), you should believe them.[/ref]

The Effects of DISC Behavioral Styles

This study largely confirms what we found before regarding DISC behavioral styles among salespeople, with some additional insights. Salespeople with more dominant behavioral styles (High D’s) perform better than those with low dominance traits.  Why? The data shows:

  1. High D’s are more likely to be confident in their sales skills.
  2. High confidence in selling skills is a strong predictor of performance.
  3. High D’s are more likely to use adaptive/consultative selling.
  4. High C’s are less likely to use adaptive/consultative selling.

Bottom line: Use DISC behavioral profiles for recruitment and development. But, be careful: Some high SCs (low D) can be very competitive and have the ability to focus on goals. Confidence in selling skills is a much stronger predictor of performance than DISC behavioral styles. The good news is good sales training builds confidence.[ref] In other words, good salespeople are born, but you can also raise them.[/ref]

The Effect of Sales Training

Effective sales training helps salespeople know how to: (Average grade across all teams.) [ref] For measures, see: Sujan, Weitz, and Kumar (1994), “Learning Orientation, Working Smart and Effective Selling,” Journal of Marketing. [/ref]

  1. Interact with customers (92)
  2. Provide appropriate service levels (88)
  3. Behave with customers (92)
  4. Handle objections (89)
  5. Handle unusual problems/situations (80)
  6. Deal with criticism (85)
  7. Present specific team strengths (86)
  8. Highlight specific benefits (91)

[dropshadowbox align = right width = 40%] Adaptive selling skills (disagree/agree; *reverse scored):

  1. Each customer requires a unique approach.
  2. When I feel that my sales approach is not working, I can easily change to another approach.
  3. I like to experiment with different sales approaches.
  4. I am very flexible in the selling approach I use.
  5. I feel that most buyers can be dealt with in pretty much the same manner.*
  6. I don’t change my approach from one customer to another. *
  7. I use a set sales approach. *
  8. I find it difficult to change my presentation style to certain buyers.*[/dropshadowbox]

Overall, reps positively rated sales training. But, being good is not good enough. The more profound effects on sales confidence are at the highest levels: We found training needs to be excellent (90+) to help reps exude confidence. The data also shows effective sales training increases goal clarity and adaptive selling skills. The latter has a huge (statistically speaking) effect on sales confidence.

Bottom line: Focus sales training on adaptive selling skills, particularly in dealing with difficult situations with critical customers. Include the adaptive selling skills scale to your recruiting toolbox.

Do Salespeople Deceive Themselves?

In a word, yes. Nearly 70% of the sales reps rated themselves higher on the very same questions we asked managers about each one. Some by a lot.  In fact, on a scale ranging from -5 (much worse than others in the department) to +5 (much better than others in the department), 55% of reps rated themselves one point higher than their managers did on all items. About one-third rated themselves two whole points or higher than their managers did.

What does this matter? The strongest effect on sales performance and sales effort by far is the margin between self-evaluation and manager evaluation. Sales confidence, DISC profiles and effort all significantly help predict the manager’s performance evaluation. None come close to the effects of being in touch with reality. Those with perceptions closest to (furthest from) their managers are the best (worst) performers.

Bottom line: If one-third of reps are clueless about their performances and more than one half widely overestimate relative performance, how well are we communicating? Given industry turnover issues, we expect more intentional and consistent one-on-one professional development and career goal setting meetings would reduce the deception gap and improve performance.

Conclusion

Grit does not have a direct effect on sales performance, but does help predict effort and job satisfaction. Effort leads to performance. Satisfaction leads to low turnover.

DISC behavioral styles offer guidance in knowing who will succeed. However, since sales confidence improves with experience and training in adaptive selling, DISC profiles should be only one factor considered in hiring.

Our view is that the DISC is better suited to teach adaptive selling and to get people in the right seats on the bus. Further, the DISC scales exhibit poor psychometric dimensions–which we are refining. If your organization would like to participate in the next round of studies with improved DISC scales, grit measures, and our impression management scales (AKA BS Meter), please contact us here.


How Managers Can Use this Research

Based on conference calls to review the research with participants, some offered comments on action plans.


Shawn McIntosh
Brett Zalaski

Brett Zalaski, Vice President Ticket Sales & Service, and Shawn McIntosh, Senior Manager of Inside Sales, Houston Dynamo

As someone who believes in continued learning and training, we loved seeing that confidence was so closely linked to a rep’s job satisfaction.

Markets change and the people we sell to are constantly evolving.  As sales managers it is critical to continue to focus on adaptive selling skills in order to keep our reps confident and happier.

Kris Dolen
Mark Johnson

Kris Dolen, Sales Manager, and Mark Johnson, Guest & Member Relations Manager, Tampa Bay Buccaneers

This research is extremely insight. We are excited to do more digging into the research and the works of Angela Duckworth. Our two biggest takeaways:

  1. Great questions to use for 1-on-1’s with each member of our team are to ask: “On a 1-10 scale, where 1 is the worst and 10 is the best,
    1. Where do you think you stand among your peers?
    2. Where do think your peers would rank you?
    3. Based on my score for you of (X), what do you need to do to get from where you are to where you want to be?”
  2. Understanding the DISC profiles:
    1. Will help me become more self-aware of the different styles among team members.
    2. Will help with Situational Leadership of my team, which is a great way to train & build confidence.
Rob Erwin

Rob Erwin, Director of Ticket Sales, Dallas Mavericks

This study gave our management some new concepts to consider with regards to recruiting and retaining a best in class staff.  I intend to apply more questions during the interview process to discover the candidate’s measure of grit.  I hope this will in turn help better predict their effort once they move past the honeymoon portion of their hiring.  Separately, given the statistics on reps deceiving themselves, I will continue to evaluate how we can clearly communicate with our staff regarding their individual performances.

Geno Fata

Geno Fata, Manager of Inside Sales, Arizona Diamondbacks

After reading “Grit” by Angela Duckworth last year, I’ve been increasingly curious as to how grit applies in a sports sales setting.  My hunch was “grittier” sales reps would be more likely to succeed over their less gritty peers.  It is valuable to know that in a sports sales setting, grit heavily influences both effort and job satisfaction, as those are two crucial indicators of success in our program.

We plan to use takeaways from this study in a few different ways – evaluating grit both in candidates and our current sales reps by administering the Grit Scale, and supplementing it with a few supporting questions that will either reinforce their Grit Score, or call it into question.

The study is also a great reminder of the importance of quality and on-going training, and regular perception vs. reality exercises between sales reps & managers – making sure our reps perceptions of their performances are on par with our evaluations of them.

Sales Training: The Four Benefits of Waiting

Sales Training: The Four Benefits of Waiting

Ketchup

by Tom Parsons – January 2015

Heinz had a commercial with a slogan when I was young, “The best things come to those that wait.” The guy whose friends ditched him because he was waiting on the ketchup to come out of the bottle ended up on a date while the others twiddled their thumbs.

In many years in the the advertising sales business, I have learned the truth of this saying. No doubt, many of us with the benefit of hindsight have found value in waiting. Besides asking us not to wear some of the things we wore, here are 4 truths about waiting we would say if we could go back to give a talk to our former selves.

Waiting builds STRENGTH

The good news for most of us is that life isn’t hard at all times. While we wait for a break, the level of strength goes up during difficult times as we work through struggles. When you have a bad sales month, if you are ambitious, the acumen rises as you increase self-discipline. When you have a baby and are tired, your mind will try to convince you that you have been up all night changing diapers and feeding for 18 years. Your strength will build if you can fight off these kind of lies. Waiting for good things makes you strong in the process.

Waiting offers PERSPECTIVE

[dropshadowbox align=”right” effect=”lifted-both” width=”250px” height=”” background_color=”#ffffff” border_width=”1″ border_color=”#dddddd” ]It’s only through the exercise of patience that we truly understand and appreciate the full value of the payoff at the end.

~ Bill Guertin, 800PoundGorilla  [/dropshadowbox]How many times in your life did you want something badly only to move on to a different passion or interest while you waited for it? There are going to be more times like this. While you wait you can determine whether your commitment is deep. Your managers will do this with you from time to time. They’ll want both of you to come to a realization that something mattered to you. Allow the wait to offer perspective both inwardly and outwardly.

Waiting deepens DETERMINATION

Once you gain the perspective that the thing you are waiting for actually matters very deeply to you, the drive and determination to get it becomes a juggernaut. When it’s you against the world and achievement is your only option, you’ll likely perform above your usual potential. Coaches tell me that talent doesn’t separate top athletes from the rest–it’s the depth of determination.

Waiting stores ENERGY

Before Jesus ascended into heaven, he made several promises and indications to his disciples about His future plans. While waiting for the go-ahead, Peter decided to go back to the family business of fishing. Many of you are just itching to get out there and sell something or improve the value of a sales team. You may even know exactly where you are going and just can’t wait to get there. Let this time be one of refreshing yourself for the tasks to come. Enjoy the last of this season before taking on the world.

A final word…

Weaved into each point is attitude. Waiting will only frustrate you if you allow your attitude to be influenced by petty problems. Your attitude must be at a high level if you are going to use waiting to your advantage.


 

Cover photo courtesy of Philip at HalifaxLight.

Sales Management: Why Process Trumps Talent

Sales Management: Why Process Trumps Talent
by Flavil Hampsten – June 2014

Which matters more: Process or Talent? That’s an easy one.  Process always trumps talent.

Before you get upset and start defending how talented your staff is and that you couldn’t generate the numbers that you do without them, imagine how much more productive they would be if you gave them leads that close at four times the normal rate?  Or if you have sales events for them that routinely lead to $100,000 days?

I’m not going to completely define what process should be in place, but I will say that as a sales manager, process always trumps talent. Here is why.

#1 Talented Individuals Are Simply Not Enough

Sales managers need to hit a departmental goal.  There needs to be method to maximize revenue from each individual on the team.  Therefore, a process should be devised to assist everyone in order for the department to achieve goal.

I’ve never spoken to a sales manager who claims to have all A+ sales talent on staff.  Most have a mix of A+, A, B, and C sellers.  However, most have an A+ revenue budget to achieve.  Having a great process can bump the level of each seller and give the department a better chance to achieve goal.

#2 Talent Comes and Goes, Process Stays Forever

[dropshadowbox align=”right” effect=”lifted-both” width=”250px” height=”” background_color=”#ffffff” border_width=”1″ border_color=”#dddddd” ]Brent StehlikHaving the right process in place has been an important element to the success of the teams I have managed throughout my career. The hiring process, sales process, lead-gen process….even convincing sales people to fall in love with the process of becoming great. They might not believe it right now, and I don’t think I did when I started my first job in sports, but process and persistence almost always trumps talent. ~Brent Stehlik, EVP/CRO Cleveland Browns[/dropshadowbox]With the ambitious nature of today’s sales executives, the average life of a sales executive is approximately two years.  With no guarantee to keep top talent, the only method to ensure that you keep results is to have a process that maximizes each opportunity, regardless of which salesperson in assigned to it.

Why only two years? Generally speaking, the A+ sellers are the ones who can leave first, simply because other teams recruit them away with money and titles.  Most times, sales managers hands are bound with budgets and departmental structure making it difficult to match the offer and the salesperson leaves.  However, the departmental goal does not change.  If a superior process is in place, the current salespeople will continue to deliver at a high rate, a new top salesperson will emerge, and the new salesperson will generate top numbers quicker.

#3 Talent Pool is More Like a Talent Puddle

Hard fact, but with the amount of positions to fill, the low pay, and extremely long hours in sports, it’s nearly impossible to hire all A+ sales talent.  Therefore, by default, to keep your positions full you must hire a mix of talent levels in order to achieve sales results.  A process is the only way to make this happen.

Even if you have one of the best recruiting and inside sales programs in sports there will be times where positions are empty or when talent is lagging.  As a sales manager, you owe it to your company and your career to protect yourself from these times.  The most foolproof way to do this is to engineer and implement a superior process that maximizes revenue regardless.

With work and deliberate practice talent can be created.  However, superior talent cannot be created without hard work and deliberate practice while in a superior process.  More importantly to a sales manager, you cannot have a successful sales department without a process to make everyone better.  The talented individuals are simply not enough; you need to create and train talent to optimize performance.


Want more on good processes? Read Flavil’s, No More Cold Calls

Cover photo courtesy of Rosemary Demirkok

Are you investing enough time into training? The 3 elements of good programs

Are you investing enough time into training? The 3 elements of good programs
by Drew Ribarchak – May 2013

In February 2008, Starbucks shut down all of its stores because of bad habits and inconsistency among their baristas. A sign on the front door that read,

We’re taking time to perfect our espresso. Great espresso requires practice. That’s why we’re dedicating ourselves to honoring our craft.

Implementing a strategic and on-going training program will avoid shutting down the sales office due to poor execution and consistently bad habits. Investing time perfecting the sales pitch and process will far exceed simply learning by doing.

A sales department must lay a solid foundation with the initial training program because

  • Fundamentals established in the first weeks of on-boarding determines the slope of the learning curve during continuous training.
  • On-going training taps the full potential of top talent and maximizes revenue.
  • Developing well-rounded sales and service reps provides them opportunities to learn and grow in their current roles while preparing for the next steps in their careers.

Essential Training Topics

Effective training includes variety in the way the sessions are conducted, especially if training occurs on a daily or weekly basis. Common topics include:

  • Scripting
  • Needs Analysis
  • Handling Objections
  • Up-selling
  • Product Knowledge & Benefits
  • Face to Face Appointments
  • Time Management
  • Prospecting
  • CRM Advanced Finds & Strategy
  • Presentation Skills
  • Arena Tour Walk-through

Some areas require more focus than others: needs analysis, handling objections and face to face appointments.

Reviewing Game Film

Role playing generic situations can get stale and monotonous after the initial training period.  Call Copy is a voice recording system the Columbus Blue Jackets use to develop sales and service skill sets. Similar to an athlete watching game film, the representative and sales leader listen to real situations with clients and prospects. This tremendous tool re-enforces the strengths of the sales rep and identifies areas of improvement.

Matt Fahr
Matt Fahr

Matt Fahr and the Cleveland Cavaliers utilize iPads and video cameras to record role plays. “We have been using the iPads at our team members’ desks during calls to record conversations and mannerisms. We use a positive recording and negative recording in our weekly team training sessions where we will hook the iPads up to a large big screen TV and review film.”

Interactive Ways to Stay Sharp
CRM Brown Bag Lunches:
Jeopardy:
Arena-wide Scavenger Hunt:
Co-op Business Role Plays:  pair senior & entry level rep

Takeaways

The on-going training program will be most effective when it:

  1. Systematic: Completed on a regular basis with a diverse mix of training scenarios
  2. Engagement: Offers the rep a high level of engagement and periodic control of the agenda
  3. Balanced: Re-enforces strengths and recognizes areas of improvement

[dropshadowbox align=”center” effect=”lifted-both” width=”600px” height=”” background_color=”#ffffff” border_width=”1″ border_color=”#dddddd” ]Travis Apple and the Pittsburgh Pirates give the sales team more control over the weekly agenda by pairing an Account Executive with an Inside Sales Representative:

Travis Apple
Travis Apple

“The AE and the rep meet a few days before the session with ideas and a plan of attack. The representatives would actually conduct the training session based on what their peers were currently experiencing on the front line. All of the training sessions were very interactive and really help the management staff identify future leaders of the department.” [/dropshadowbox]