Inputs vs. Outputs: The Truth About Scaling a Sales Team

Scaling a sales team is a formidable task, and it's not one for the faint of heart. Those who've actually scaled a sales team past 8-12 sales reps understand the complexity involved. When it comes to managing a growing sales force, there's a critical concept that distinguishes success from stagnation: understanding the balance between inputs and outputs.

"I don't care about Dials, Meetings Held or Pipeline Generated, all that matters is reps hitting Quota!" You might have heard this sentiment before. In theory, it sounds appealing, but in practice, it's a recipe for failure. Trust me, I've made this mistake before.

The Quota Conundrum

Let's address the elephant in the room. The idea of focusing solely on quota attainment seems logical. After all, the ultimate goal is to close deals and generate revenue, right? While this notion holds some truth, it's a simplification that can hinder your sales team's growth and potential.

To illustrate this, consider a scenario where you're scaling a sales team. In the early stages, you might be overseeing a handful of reps, and their output is indeed crucial. However, the dynamics change as your team expands. Imagine managing a group of 8-12 reps; suddenly, the "quota-only" approach isn't as viable in my experience. I've screwed this up.

The Reality of Scaling

Scaling a sales team requires a profound understanding of how salespeople work, especially in different sales environments. If you've ever tried to manage a larger sales force, you've likely encountered the complexity of diverse sales roles, products, and industries. In such scenarios, taking a myopic view of quota attainment can be detrimental.

Here's why you can't manage outputs alone:

1. Accountability for Reps: Sales reps need clear targets, and these extend beyond just closing deals. For transactional, SMB, and inside sales teams, it's essential to hold them accountable for activities like talk time, conversations, meetings held, and pipeline generation. These are the inputs that drive output.

2. Consistency in Results: To achieve consistent results, reps must engage in activities consistently. This requires tracking and managing those activities. It's the only way to ensure predictable outcomes.

3. Complex Sales Aren't Exempt: Even in the world of complex or enterprise sales, focusing solely on quota is a big, expensive mistake. These reps, often dealing with lengthy sales cycles and high-value deals, need to be held accountable for activities and pipeline generation. Failure to do so leads to inefficient resource allocation and wasted company money.

Lessons from Experience

It's not easy to accept this paradigm shift if you've been conditioned to think that only outputs matter. The truth is that understanding and managing inputs are fundamental to achieving the desired, repeatable outputs. This lesson often comes from painful personal experiences.

If you're scaling a sales team, you're dealing with a diverse set of variables. What works for one group of reps may not work for another. However, consistency in tracking and managing inputs is the common thread that drives success.

The moment you recognize the importance of inputs alongside outputs, you're on the path to more effective sales leadership. It's a lesson often learned through trial, error, and the subsequent pain of change management.

In Conclusion

The idea that "all that matters is reps hitting quota" is a dangerous oversimplification when it comes to scaling a sales team. To drive consistent results and achieve the desired outputs, managing inputs is essential. This involves holding reps accountable for activities and pipeline generation, regardless of whether they're in transactional or complex sales.

The wisdom of this approach is often gained through experience, sometimes the hard way. But embracing the balance between inputs and outputs is a pivotal moment in effective sales leadership and scaling a successful sales team.

Call to Action: If you found this blog post valuable, you might be interested in exploring 10 more Sales Leadership lessons to enhance your sales leadership skills.