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a16z Podcast | Getting Sales Right

a16z2019-01-02
116 views|5 years ago
💫 Short Summary

Dan Shapiro shares his LinkedIn journey, focusing on talent solutions and product development. The importance of sales teams in product value communication is emphasized, along with the significance of client connection and strategic hiring. Hiring salespeople based on mock sales calls and focusing on culture fit ensures success. Forecasting accuracy is crucial for decision-making, with insights on funding engineering and sales compensation structures. Sales success hinges on the thrill of winning, with a shift from sales to product roles highlighted. The importance of empathy and leadership in both roles is acknowledged, marking a unique career transition.

✨ Highlights
📊 Transcript
Dan Shapiro's role at LinkedIn and his impact on the talent solutions go-to-market organization.
00:24
Shapiro successfully grew the business from $40 million to over a billion in four years, managing a large team across multiple global offices.
He transitioned to the product side, emphasizing the importance of helping users find jobs.
LinkedIn's unique approach prioritizes end-users over decision-makers, creating the most value by serving those who use the product.
Importance of Sales Team in Selling Disruptive Products
02:47
Organizations needed assistance in retooling teams and processes to adopt disruptive products.
Sales teams play a crucial role in helping customers understand the value of the product and make informed purchasing decisions.
While products can sell themselves, the value communicated through a sales team is higher.
Lowering product prices significantly may not ensure successful online sales without a supportive sales team.
Importance of Client Connection in Business Scaling
06:29
Meeting with clients and understanding their reactions is crucial for successful delivery.
Being present for the team, especially in global offices, is emphasized for effective leadership.
Visiting local markets can provide more insight than remote communication over a long period.
Hiring and promotion decisions play a critical role in shaping organizational culture.
Importance of Strategic Hiring for Long-Term Business Success.
09:44
Hiring individuals who can do more than the initial job requirements and align with company culture is crucial.
Over-hiring and prioritizing culture fit, especially for the first hire, are emphasized.
Setting high expectations and finding individuals who positively define the company's culture ensures long-term success.
Importance of having salespeople sell to you as an assessment method.
10:57
Conducting mock sales calls after interviews helped identify effective salespeople.
Emphasis on the importance of company culture in hiring success.
Considerations for letting go of underperforming sales staff, including missed quotas.
Hiring individuals with potential beyond traditional sales profiles, such as those from management consulting or client services.
Importance of Efficient Communication and Decision-Making in Executive-Level Selling.
13:39
Some individuals may take longer to grasp selling concepts, emphasizing the need for setting time limits for decision-making.
Questioning the industry standard for successful hires and reflecting on personal performance in building sales teams.
Variability of hiring outcomes and the importance of self-assessment when building sales teams.
Emphasizing the significance of efficient communication, decision-making, and self-evaluation in business contexts.
Importance of forecasting accuracy in organizations.
18:09
Forecasts are crucial for decision-making and planning, impacting business operations.
Initial skepticism about forecasting shifted to recognizing its value for strategic alignment.
Accurate forecasts drive organizational success and minimize risks from incorrect projections.
Implications of forecasting errors, strategies for addressing discrepancies, and the need for precision discussed.
Importance of accurate forecasting in business decision-making.
20:02
Successful forecasting is crucial for funding engineering projects.
Applying forecasting rigidity to new businesses can have drawbacks.
LinkedIn's sales team uses forecasting to invest aggressively in non-sales areas.
Historical data is essential for accuracy in existing business forecasts.
Disparity in pay structures between engineers and salespeople.
22:45
Engineers typically receive a flat salary, while salespeople get a base salary plus commission based on performance.
Sales roles are more measurable and individual compared to engineering roles.
Sales performance can be easily assessed, while evaluating an engineer's worth is more subjective.
Challenges of accurately assessing an individual's output in different roles.
Importance of salespeople needing a rush and high of winning for success.
24:24
Contrasts sales roles with engineering, product management, and marketing roles, emphasizing individualized objectives of sales.
Compensation is not how culture is formed at LinkedIn; success and promotion rely on being a complete team player.
Fear that sales compensation may negatively impact company culture.
Speaker's transition from sales to product roles, highlighting unique perspective gained from sales experience.
Transitioning from sales to product role.
28:40
Similarities in empathy and leadership between the two positions.
Optimism about leveraging skills from both roles in career path.
Noting differences in humor between the two roles.
Well wishes for the speaker's new role and anticipation of future interactions.