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How can that be?

If you managed for any period of time and were an effective manager, you have used the 80/20 rule.

Simply stated, the 80/20 rule says that 80% of your results will come from 20% of your efforts.

If you have 10 people on your team, 80% of your results or production will come from your top 2 reps (20%).

If you own a restaurant, 80% of your revenue will most likely come from 20% of the time you are open.

If you have 10 accounts 80% of your revenue will come from the top 2 (20%) of your accounts.

The beauty of the 80/20 rule is that it applies in a myriad of industries, settings and applications.  When you first hear it, you may be a bit skeptical, but is really true.

How can I get 80% of my revenue from 20% of my accounts?  As many times as you challenge and question the rule, you’ll find it still holds true.  Sure there may be a few exceptions, but it most cases it rings true.

Ok great, I understand the rule, how does it apply to line management?
I already mentioned the rep application.  You have 10 people in your region and 80% of your revenue will come from two reps.  Wouldn’t that mean that it would be wise to spend your travel time with your top performers, the 20% producing the 80%?  The obvious answer is yes.  You may have heard this rule stated another way “Feed the eagles and starve the turkeys”.  The eagles represent the top 20% of your team and the turkeys the balance.

What about looking at the 80/20 rule from a time perspective?
You spend 80% of your time on 20% of your tasks.  To make the math simple, let’s think of a week (5 working days).
The rule says that you will accomplish 80% of what needs to be done that week in one day.  Does that mean you get to take the other four off? Not really.

Look at it this way.
The most important task you have as a manager is to achieve the corporate goals.  These goals are normally a mix of performance/financial goals and MBO’s (Management by Objective) set by your boss.  If goal attainment is your top priority, then most of what you do should be directed towards achieving that goal.  I am a strong believer in weekly check in/funnel update calls to keep a pulse on the reps mindset, expand my relationship with that rep and update the sales funnel and forecast.  Every week, that time with the reps was a priority.
Back to the example with your region and ten reps.  Doing check in calls (budgeted at about an hour each) will take all of one day and some of the next morning.  So doesn’t that work out to you spending 20% of your time (one day) to accomplish 80% of your goals/objectives?  Yes it does.

I know you could split hairs (as you can with most rules or theories) about the exact numbers, i.e. , is it really 20% or it is closer to 25% and if I did that would that really reflect 80% of my productivity or closer to 60%?  The answer is all of the above.  Kinda.
As a manager meeting production goals and hiring and developing future leaders for the organization are your only goals.  All of the other things you do in pursuit of those goals are a “means to an end”.  Certainly, the things you do on the other four days of the week are important and contribute to your success, but if you did all of those other things without spending 20% of your week on check in calls, would those other things you did they other four days of the week put you 80% of the way on the path to success?

The answer is no.
By spending 20% of your time you will put yourself 80% of the way “there”.

Peggy McKee has been recruiting and placing top sales talent (in the medical industry) for over 10 years. Her firm, PHC Consulting, is one of the nations leading medical sales recruiting firms. Check out her blog and site to learn powerful tips that will set you apart in the job search! http://www.phcconsulting.com/WordPress

Include your sales team

Include your sales department in the planning of client conferences. It will motivate your salespeople if they are allowed to have a say. In the run-up to the conference inform them of the main goals of holding the conference. Make a written note of what tasks need to be carried out and to whom you are assigning these.

The welcome is important

Plan to have sufficient staff to be there at the welcome reception and register the names of the participating clients. A welcome cocktail will round the reception off nicely. The entire sales department should be there – every client will automatically search out the face of salespeople they know. Introduce clients to other clients. Who should be introduced to whom naturally takes a great deal of tact. Do not spend too long talking to regular or favourite clients.

The opening of the conference

You can wait fifteen minutes. Then carry out the official opening. Naturally, you should speak without the aid of notes. Any important personalities from your branch or related associations should be welcomed and mentioned by name, but not all customers need to be individually mentioned.

It is advisable that the opening speech be kept to between five and seven minutes. Guests will stand throughout this and will only be seated for the subsequent speeches. The opening speech should include an announcement of the programme and the agenda for the day.

It is your personal task to select the different speakers.

A public relations exercise

Although you as the sales manager carry out the opening speech, this does not mean that you hog the limelight. Leave the limelight to the specialist speakers you have lined up. Your role is more of presenter – keeping an eye on timing and audience participation. As taught on any good management course Good organisation is imperative.

You are in charge of the press reception

A client conference is a good event to gain publicity in the specialist press. Editors would no doubt be interested in a report of the conference and any interesting photographs , which accompany it (black/white).

Consider arranging for a group photograph of all the attendees taken. Perhaps at the welcome ceremony?

Take a look at publications in the specialist press covering other similar events. How is the competition looking? The presentation and length of contributions can give you ideas. If any members of the press attend at the conference, meet them personally. The people from the press are just as important as your clients.

You could send your clients a copy of any articles published, particularly including those who did not attend the conference.

The post-mortem

At the end of the conference do not plunge straight away into the paperwork that’s been waiting to be done. Once the conference is over the first move is to sit down with the salespeople who took part carry out a post-mortem. You will need certain data in order to assess the conference. The best thing to do is to take notes during the conference.

On the one hand you need to ensure that client wishes are fulfilled, orders placed, visits planned and contacts intensified. Alternatively, finding out as soon as is feasible whether the whole event has paid off, or if it has turned out to be a costly failure will be of benefit to your company. What went wrong? What corrections are to be made? When doing this, do not look for people to blame – instead look for solutions to the problems which occurred.

Roughly a week after the conference you could send out a letter or email of thanks to all of those who took part. This is just one element of being a successful sales manager. For other hints and tips or to develop your skills further, attend a good management course.

Richard Stone is a Director for Spearhead Training Limited that runs management courses that improve business performance.