Sales Coaching Blog

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

Posted 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.

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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

 

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