Key Lessons Learned from Prof. Mark Leslie on Enterprise Sales and Leadership

Mark Leslie (http://bit.ly/MLeslie) is one of my favorite professors here at GSB. It's my fortune to sit in his class and learn the knowledge he accumulated from leading and growing technology companies for the past 30+ years!

I particularly enjoyed our last day of the enterprise sales class I took given by him and Mark Stevens (partner at Sequoia Capital).

Mark shared the following key lessons:
First, he shared the virtuous cycle below about building a strong company and the value of good sales management:
(1) Set goals realistically. Set the quota at a level that allows 70% of the organization achieve 100% or more of the quota. Allowing people to succeed build confidence and a virtuous cycle of success. Positive reinforcements are most effective.
(2) When sales overachieves, company has enough end of quarter or end of year business to avoid discount pressure or channel stuff.
(3) The company can exceed profit expectations.
(4) As a public company, high stock prices build the public reputation of the company.
(5) As a result, you create an environment where you can attract the best and brightest.
(6) You also have money to acquire new products, enter new markets, build strategic partnerships, and leverage industry trends.

This comes back to the importance of forecasting and setting achievable goals. Typically, he used to set a team's overall goal as less than 80% of the sum of individual quotas, as a rule of thumb. Another tip he shared was that while you tie most sales' people's compensation directly to their revenues, you should tie the VP of sales' compensation to the company's overall goal to avoid conflicts of interests. He/she should think more like a CEO.

Second, he warned that inertias exist in a company's revenue plan. You cannot expect to change things and expect a 180 degree change over night.

Third, it's important to inspire people to be heroic and to not rest on your own laurels. NEVER, NEVER read your own press clips. Remember where you come from.

Fourth, set each of the operating function's expenses at a proportional share of the revenue dollar.

Fifth, build trust with your VP of sales to avoid gaming. Realistically ask for the "highest number you're certain you can make. Anything less will inhibit our investment in the future of the business."

Finally, the most important thing for a leader is to create a "high-trust" environment above the mission of "self". Talk to people in the frontline and filter out the BS. Never shoot the messenger and provide as much transparency as possible in the organization. Ask yourself "is there any good reason why people shouldn't know this?"

A quote he shared at the end was very inspiring for me, especially as I'm pursuing an entrepreneurial path:

"Regret for the things we did can be tempered by time; it is regret for the things we did not do that is inconsolable. - Sidney J. Harris (1917-1986)"