Situation: A company has grown to five times the size that that were when they hired their last Vice President of Sales & Marketing, and are looking for a new VP of Sales & Marketing. What is your advice as they embark on this search? How do you recruit a VP of Sales & Marketing?
Advice from the CEOs:
Think coach as opposed to star player. You are a much larger company, and at this phase of growth you need an individual with good marketing skills combined with sales management skills. You need a brand builder.
Recently, another CEO went through a similar process. His mistake was hiring a person with deep domain experience, when what they really needed was a person with process/methodology experience in complex sales. In your case, consider an individual from a larger company in your industry, or an allied industry. Somebody with knowledge of similar technical sales processes to your company with similar complexity and similar lead flows.
Skip head hunters. Based on your knowledge of good companies in your industry use LinkedIn to find who’s who. You can look at three pools of candidates – those that you can hire away from these companies, those who have worked there but are out of work, and early retirees who have found that they now need to go back to work.
Research current salary ranges in your industry and plan to be competitive, both base and bonus target.
As this individual will be a doer-manager make bonus qualification a combination of personal quota and team performance (overall new sales growth vs. existing projects).
While another CEO agrees that you don’t need a head hunter, find someone who can organize the process – review resumes, perform screening interviews, schedule higher level interviews, follow-ups, etc. – and who will work on an hourly basis.
Have a job application and be sure to ask for the following:
Copies of last W-2s.
State on the application: falsehood is grounds for immediate termination.
Do or outsource formal background checks including verification of education and degrees.
Personally call references for your finalists. Ask these references who else knows this person and speak to them, as well.
Situation: A company has been approached by a foreign company that is interested in their expertise. The foreign firm says that they are only interested in their own domestic market, and want the company’s help developing new products for their existing domestic clients. How do you develop products with a foreign firm?
Advice from the CEOs:
There is great variability between companies in different locales and on different continents. Before proceeding with negotiations, get references from the company and check them carefully. Research the company and its local market.
Relationship will be critical. You want to meet with their CEO. This is an important factor working with any company. Watch the commitment level of the CEO and top staff. Take an expert with you – someone knowledgeable about local mannerisms who can read the body language in meetings. Position this individual as someone who is assisting you in the negotiation.
If you proceed with negotiations toward an agreement, make your enforcement jurisdiction either the US or a neutral country with a western judicial system. For example, if the company is Chinese, make the enforcement jurisdiction either Hong Kong or Macao.
Will intellectual property be a factor? If so, get an IP attorney knowledgeable about both the market of the other company as well as your preferred enforcement jurisdiction.
Could this help you to augment or fund your own development? If so, ask for rights to produce and distribute products developed through the collaboration in the US and other markets outside of partner’s domestic market.
Situation: A company hired a sales person who looked during the interview process like a hunter, but turned out to be a farmer. The company’s product-service mix is new to the market and requires a sales person who excels at landing new accounts. How do you tell hunter from farmer sales candidates?
Advice from the CEOs:
The hunter sales person is naturally more aggressive and loves the thrill of landing new accounts. The farmer excels at follow-up sales and cultivating existing accounts for new purchasing potential. Neither is particularly good at the others’ job, and it is rare to find individuals who excel in both roles.
To differentiate between these two personalities, behavioral interviewing is better than tests.
Screen resumes for past sales success in companies in a similar size range as yours to select a group for further evaluation.
Behavioral interviews are very different from traditional interviews. They the focus on specific skills and requirements associated with the job and require candidates to give concrete examples of when and how they have demonstrated the skills needed for the job. The interviewer then follows up with probing questions to elicit more details. Responses can be verified in follow-up with references provided by the candidate.
During the questioning process, the interviewer may interrupt the candidate with a question like “what are you thinking right now?” These questions provide more insight into the interviewee’s personality and also help to filter out B.S.
You are seeking someone who’s “been there done that” in a company which resembles yours and who can convincingly demonstrate what they’ve done.
Thoroughly check references – not just those provided by the candidate, but dig and talk to others in the same companies.
Strongly align the pay and incentives for a hunter. Hunters prefer a comp package that is heavily commission-based and this will scare away farmers. If they don’t sell, they get paid little.
Offer an extended trial period with burden of proof on performance by the sales person.
Situation: A company has a domain name that they no longer use. They have been approached by a domain reseller that wants rights to sell the name for a percentage of the sale price. The reseller is talking big money for the name. What are the best options for selling a domain name?
Advice from the CEOs:
The offer may look interesting, but you want to compare it with other options. These include Godaddy.com or buydomains.com. Compare both the price for selling the name and the estimates of what the domain name is worth. Look at how each would market the name, and their record for selling names. Compare their responses with the offer from the reseller that contacted you.
Get an appraisal on the name. Valuate.com offers a free tool to appraise a domain name, or you can look at GoDaddy for assistance in valuing your domain name under their Support section.
Have a contract attorney look at the reseller’s contract for hidden traps.
Get references from this reseller and check them out before signing anything.
If you move forward, make sure that you choose the escrow company. One CEO recommends Escrow.com for domain name sales.
Situation: A small company has a key employee who has been with them for one year. Previously, this individual had been a production manager in a large company managing as many as 100 employees. He excels at analysis, QA and other “doer” roles but has not demonstrated strong supervisory skills. How do you address a key manager functioning at 80%?
Advice from the CEOs:
Small companies are different from large ones. In a small company, people must wear multiple hats and be willing to roll up their sleeves with the others. The atmosphere can be very different in a large company. Past experience in a large company does not mean that previous skills are transferable.
If the person is not a fit for your needs and organization, then you must find a fit or make a change.
Do you have room on your payroll for a job appropriate to this individual’s skills and talents? If so retain him in a new role. If not, then take action.
Engineers often do not transition well to management positions. Different skill sets are required. Shortcomings may have been masked in a large company.
If your future need is for an individual to take on many or your current responsibilities in the role of General Manager, hire an individual who has demonstrated success in this position in a company of in size and focus as yours.
If you need to hire a different person, review your selection process.
If this position requires the wearing of multiple hats, indicate the range of responsibilities in the position description.
During the selection process query candidates on their experience handling these responsibilities. Ask open questions and look for specific instances where they have demonstrated talent. Confirm responses in reference checks.
Key Words: HR, Selection, Performance, Doer, Manager, Supervisor, Big vs. Small Company, Success, Experience, Selection, Position Description, References