Only 11% of sales firms thrive in transformation periods

A recent survey by Gartner has revealed that only 11% of sales organisations have been successful in driving commercial success during a transformation.

The survey, conducted between May and June 2024, canvassed 234 heads of sales and senior sales leaders to identify effective productivity strategies for Chief Sales Officers (CSOs). The findings indicate that top-performing sales organisations employ strategies centred around action-centred insight and design, simplifying roles, and systematic adaptability.

Greg Hessong, Senior Director and Analyst in the Gartner Sales Practice, stated, "In the past two years, sales organizations have undergone an average of four transformations. While CSOs have a variety of mechanisms at their disposal to drive productivity, it's often unclear which are most effective, especially in a rapidly shifting landscape."

Hessong further explained the challenges CSOs face, noting, "That ambiguity, combined with the relentless need to hit quarterly targets, leads most CSOs to default to seller-centric solutions that have worked to drive productivity in the past. Unfortunately, these efforts are yielding diminishing returns as many sellers are feeling overwhelmed, unable to absorb the volume of change required."

Historically, CSOs have struggled to determine the most effective productivity levers, often resorting to seller-focused interventions with predictable short-term outcomes. The survey found that 57% of CSOs use a mix of manager coaching, new or improved tools, and upskilling or training as their top strategies for enhancing productivity.

Gartner's Seller Skills Survey, conducted from January to March 2024 with 1,026 B2B sellers, highlighted that 70% of sellers feel overwhelmed by the technologies required for their work. Additionally, 72% expressed being overwhelmed by the skills demanded of their roles, contributing to reduced productivity.

The Gartner findings underscore three key attributes distinguishing top sales organisations. Action-centered insight and design is a notable factor, with leading organisations using data-driven insights to align seller actions with desired outcomes. These organisations are 2.5 times more likely to be among top sales entities.

Another critical attribute is the simplification of seller roles, with a significant statistical link to high-performing sales organisations. Entities that simplify roles are 4.5 times more likely to be top performers, often by utilising technology to support and ease the burden of these roles.

Systematic adaptivity is also crucial, with organisations designed for change showing a better capacity to navigate transformations. By simplifying actions and roles, these organisations can effectively manage change efforts with precision and focus.