The Coaching Effect Blog

The Coaching Effect Blog

    The 1% Effect: Managers who coach more, earn more

    by Stacia Jorgensen / February 7, 2019

    The Unusual Effect of a Coaching ScoreThere's a big reward waiting for managers who improve their coaching scores, even by just 1% , which we recently found out in this new research

    Many of you who subscribe to this blog are sales professionals who live and breath by numbers and analytics. These numbers are crunched, analyzed, and reported at high levels and agonizing detail with a goal of identifying opportunities to reach maximum revenue attainment. It's a popular approach because “moving the needle,” or creating improvement, in these indicators can lead to substantial revenue growth. So monitoring such indicators is powerful information that is clambered after in sales organizations.

    The Challenge

    Largely left out of these efforts to find areas for growth is the impact that sales leaders have on the individuals they lead. This is likely because, traditionally, the aspects of sales team achievement that are less measurable involve the direct consequences that the sales manager’s leadership activities and behaviors have on their sales team’s performance. In rare occasions, organizations collect metrics on the number of sales coaching activities conducted by sales leaders with team members.

    Taking this gap a step further, even less is calibrated regarding how the sales managers' behaviors and approach to leadership impacts the team. In other words, while small aspects of the quantity of coaching conducted by a sales manager may be somewhat captured, an understanding of the quality of coaching carried out by a sales manager is typically non-existent.

    The Coaching Score 

    It's why we assess managers through The Coaching Effect survey to explore the quality, or how well, they lead their team members. The study focused on the responses to a subset of 21 of the total survey items. Collectively, these items are referred to as a Coaching Score.

    This is the most in depth approach to understanding the effectiveness a manager has on his or her team. Scores range anywhere from 0-100. The average coaching score of EcSell Institute clients is 79%. So how does a Coaching Score correlate to sales achievement? I'm so glad you asked. 

    The Findings 

    In our most recent study, our sample sold an average of $18,250,330 in the fiscal year examined. As expected, managers who were identified as Top Managers had much higher sales attainment with an average of $20,622,873 sold, compared to an average of $16,242,794 sold by All Other Managers. This is a difference of $4,380,079 between the two groups.

    Screen Shot 2019-02-05 at 8.28.56 AM

    You'll see that after we compared the scores of both groups there is a 9% difference in coaching scores between the two groups. When differences in Coaching Quality scores are broken down by the gap in sales performance by the two groups, we see that each percent increase in sales is equivalent to an increase of $486,675.44 in sales. Simply put, a 1% improvement in how a sales manager coaches matches roughly an additional sales achievement of $500,000. (Tweet This)

     You can take a deeper dive into this EcSell Institute study in the white paper below. And don't forget to get your hand on a copy of The Coaching Effect released this April which is filled with more leadership and coaching research/findings. 

    Sales Management Resource


    Book Cover-603215-edited

     

    An effect businesses can no longer ignore

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    Stacia Jorgensen

    Stacia Jorgensen

    Stacia Jorgensen brings an array of experiences and invaluable expertise in data collection, analysis, and research reporting to the EcSell Institute as the Director of Research. As part of her role, she leads all research initiatives, the creation of coaching performance assessments, and was instrumental in helping EcSell translate coaching into a series of measurable metrics. Stacia’s goal is to help EcSell’s clients discover actionable insights surrounding coaching effectiveness that allow them to achieve the highest levels of performance. Her research discoveries now provide sales leaders a never seen before view of team performance that is changing how teams are coached, led and managed. Supporting EcSell’s highly collaborative culture, Stacia also brings her analytical and thoughtful perspective to every department within the EcSell organization.

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