Challenging

The Sales Executive Councils Challenger Selling Model

Its not wrong its just not new, complete, or transformational.

Defining sales role requirements is not as simple

as comparing apples to oranges!

TALENT ANALYTICS

Salespeople with the Right Stuff

Hold the Key to a Strong Competitive Position
It is no secret that growth in the current economy is challenging and a top priority in the executive suite!
In this environment, deploying a highly-skilled sales team
has never been more important. Salespeople with the
right stuff are a companys key long-term competitive
advantage. Yet, many companies continue to focus on
advantages associated with their product - believing its
premium brand position will last forever. Additionally, in
the absence of innovation, organizations try to leverage
refined supply management techniques to continue to
drive lower cost.
Companies who rely on internally focused means such as
process improvement to gain a competitive advantage
will be neutralized by widespread adoption of methodologies like Six Sigma and a more informed customer.
Since the inception of the modern day sales force some
100+ years ago by John Patterson, the founder of National Cash Register (NCR), the sales profession has been
presented with a constant stream of revelations introducing the latest in trends and techniques that are needed
to compete and sell successfully in the changing marketplace.
The best new ideas come outfitted with updated labels
and catch phrases, suggesting a change in the key ingredients required for sales success in a new age of technology, demanding customers, and competition.

These trendy new approaches over the years have included, but certainly are not limited to Consultative Sales,
Solution Selling, Strategic Sales, Sales Role Segmentation
(Hunters -vs- Farmers, Inside -vs- Outside and/or Generalist -vs- Specialist). Labels for the new techniques include
the likes of, Customer Centered Selling, and Professional
Selling Skills (PSS). Additionally, bookstore shelves and
Amazon.com are packed with thousands of books and
white papers from the latest sales guru extolling the
benefits of breakthrough sales strategies.
Businesses need sales growth and they will pay attention
to any product, service, gimmick, or solution offered to
transform mediocre sales performance into a high flying
sales machine.
In recent years, efforts have concentrated on combining the best of the sales professions past with the new
technology of data-driven sales processes. SFA and CRM
provide sales leaders an opportunity to earn a legitimate
seat at the table with members of the C-Suite.
The need for solutions to the challenges of improving
sales performance has never been more critical. As a
result, the effort to understand the changing landscape
and to define a new and universal approach to sales
success continues.

It seems a little nave to contend that all business-to-business sellers are converging on a single
role. While no one can argue the value of a high-quality consultative salesperson, in reality
customers exhibit a wide range of buying needs from those who want to be challenged, to
those who want an internal advocate, to those who simply want their purchase to be executed
painlessly. While the Challenger model is certainly thought-provoking, it is far from a universal truth.
Jason Jordan
Partner of Vantage Point Performance and author of Cracking the Sales Management Code

What does it take to succeed in sales?

Following are thoughts on the key differentiators in successful selling from a sales publication.
Salespeople must know their business and their customers business.

Unless they think beyond the things they are selling, unless they know more than the buyer about their product/
service or what it can do for their client, those salespeople are wasting their time and my time as a buyer.

As buyers, we expect salespeople to prove their claims.

They must be able to teach their customers.

We would expect salespeople to have significant industry/product knowledge, as well as knowledge of our
business, so their solutions fulfill our requirements while helping us manage the changeover. Dont waste our
time by sending us salespeople if they cannot do this.

As buyers, our experience covers cases of salespeople handling every simple day-to-day commodity, who are
obviously not salespeople in the true sense of the word, they are just order takers or traveling clerks. ORDER
TAKERS are not wanted.

We dont want to see the salespeople only when we are ready to order; good salespeople can provide useful advice to the buyers of their products/services.

There is a big difference between the old time commercial route salesperson and modern-trained salesperson. It
is a difference that cannot fail to impress the intelligent and conscientious buyer.

It is regrettable that few salespeople have imagination - how many salespeople read the daily news with the
thought in the back of their mind - how does this impact my customers business?

The ability to give in on price is very largely the product of weak salespeoples personal psychology and lack of
commitment and belief in their solutions.

Would you like your salespeople of today, and in the future, to possess the traits
and behaviors as outlined above?

1934

It might surprise you to know that these quotes and observations were taken from an
article written in 1934, published by The Chartered Institute of Marketing entitled What
the Salesman Thinks of the Buyer and What the Buyer Thinks of Salesmen. The author was
Col. J. H. W. Francis of Southern Railway inquiring about what a buyer wants from a
salesperson.

Though the packaging and wording from the 1934 article does differ from the description of a successful salesperson today, the underlying basic fundamentals remain very much the same. The SUCCESSFUL sales reps that

know, understand, and provide real value to their clients remain relatively constant across time.

The Challenger Selling Model

Developed by the Sales Executive Council (SEC), the Challenger Selling Model is gathering significant attention from
Sales Leaders and in the business press, most recently from Harvard Business Review (HBR). The model highlights five
types of salespeople, stating that the Challenger vs. the remaining 4 roles is the most productive and successful sales
role in todays business environment (see table of descriptions below.). Though the research base is limited and the
findings broad and generalized, there is little doubt that the conclusions reached reflect a broad view of a complex
and detailed topic - Selling in 2012.

The Hard Worker

The Challenger

The Relationship
Builder

The Lone Wolf

The Reactive
Problem Solver

Always willing to go
the extra mile

Always has different view

of the world

Builds strong advocates in

customer
organization

Follows own instincts

Reliably responds to
internal and external
stakeholders

Doesnt give up easily

Understands the
customers business

Generous in giving time to

help others

Self-assured

Ensures that all

problems are solved

Self-motivated

Loves to debate

Gets along with

everyone

Difficult to control

Detailed oriented

Interested in feedback
and development

Pushes the
customer

 And so the question...

What is so groundbreaking about this model?
Has successful selling really changed over the last 80 years?
(The key word in the question above is SUCCESSFUL)
Does this model correctly capture the key components of differentiated sales success?
Do these titles, characteristics, behaviors, and roles outlined by SEC really define a new and winning way to
play the game?
In todays business environment, are there substantial and fundamental changes? Or is the same fundamental
game being played with improved equipment, at higher speeds, on a broader stage?
Sports analogies can help illustrate the point. Is there any fundamental difference in the rules of the game or
the keys to success for todays ball players from the game that was played by their predecessors?
Did Pete Maravich, Bill Russell, or Wilt Chamberlain possess substantially different and/or fewer skills and abilities
than their counterparts in todays game?
Could Pel succeed in todays World Cup?
Would baseballs Hall of Famers be able to succeed in todays major leagues?
Are the broad characteristics and basic fundamentals of what determines success largely unchanged?
Answers: See following pages...

Where does Challenger take us in the discussion?

Does the existence of the model add real insight and actionable direction to sales leaders seeking to
improve their team and enhance their results?
Challenger does point out that not all
sales positions are the same. In fact, the
approach to sales can and does differ
across companies, offerings, and time.
Challys research on the Product/
Market Life Cycle as published in The
Quadrant Solution clearly indicates
that the requirements of the customer, and therefore of the sales rep,
differ as a product or service progresses through its life cycle and confronts
more and differing competitive pressures.

Our Position
CHALLENGER is not
WRONG... it is just not
NEW, COMPLETE, or
TRANSFORMATIONAL

However, Challys research, based on studies

involving 500,000+ individuals in a variety
of selling roles, suggests that differing
approaches to sales are required for
a variety of reasons and at different
times.
No single model for sales reps and
their customers is best when applied
in all circumstances. Simply put,
one model (Challenger) doesnt fit all
situations, and one pattern and style does
not work in every environment.

The Challenger does correctly indicate that

several models exist. It does not go far enough in
identifying the reasons for changes in approach.

How Chally Closes the Gaps

inherent in SECs
Challenger Selling Model

Chally holds the position that success in sales and sales

roles results from utilizing science to correctly match the
skills and abilities of salespeople to the requirements
of the customer. Success in one sales role, whether you
approach the situation as a Challenger or not, will not
predictably result in success in other sales assignments.

However we dont make these claims based on quick hit

research utilizing SurveyMonkey. Our Points of View on
the following pages are based on nearly 40 years of researching the art and science of the sales profession. We
have helped clients around the world select and develop
winning salespeople and managers. The most current
research results will be published in early 2013.

Challys World Class Sales Research Methodology

80,000 Customers interviewed
210,000 Salespeople rated on 15 criteria

Customers identified 21
World Class sales forces

Plus: How much each customer bought

from each salesperson over three years

Identified top and bottom salespeople

Data on 7,300 sales forces

Benchmarked the best for

process and criteria

Seven critical best practices

Statistically identified the seven salesperson deliverables that drive customer

decisions

Statistically identified the salesperson

competencies to achieve deliverables across markets, products, and
services sold

Assessed and tracked performance

of 500,000 salespeople

Identified 14 distinct
salesperson profiles by
the unique set of competencies for each

Statistically identified
assessment items that
accurately predict the
competency in each
position profile

Having an outstanding track record of selling tires to

General Motors does not predict that an individual will
be effective at selling a sophisticated telecommunications system to a Fortune 500 company. Even if the tire
salesperson were a successful Challenger, there is no data
presented by SEC that predicts high probability of success
in selling complex telecommunications vs. selling tires.

Every year, we assess and interview

hundreds of our clients top
performers during our program
customization process. Even within a very narrowly
defined industry, it is incredible how different top
performers look from one organization to the next.
It is dangerous to place reps in broad categories and

SEC states that 39% of successful salespeople are

Challengers. Does that mean 61% of your successful
salespeople are not Challengers? How many low
performers are Challengers?

make generalizations about the skills, behaviors and

personality traits that drive success. Every organization
is unique, and there are no shortcuts for defining the
competencies needed to drive your sales strategy.
Dario F. Priolo, Chief Strategy Officer
Richardson

Sales success is predicted based on the specific skills,

abilities, and competencies associated with the requirements of a very well-defined sales role.
The recent best-selling book-turned-movie Moneyball
presents a valuable lesson regarding effective sales talent
management. Billy Beane, the GM of the Oakland As, knew
the traditional metrics for selecting players wouldnt cut
it. Scouts had long employed subjective, non-quantitative
measures like, he has an ugly girlfriend, and that means
no confidence, as one of the scouts put it.
Today, companies must dismiss the fuzzy intangibles and
make sales selections scientifically by using statistical
measures, and most importantly, search for hitters, not
home run superstars, to win the game.
Chally utilizes the same statistics-based methods as the
book/movie Moneyball to help organizations predict
sales success.
Just as baseball has very specific roles - pitchers, outfielders, catchers, and short stops - Challys research has
proven that sales has many different and unique roles.
And with sales, as you make the move to more complex
organizations, clients, products/services, you will find as
is true in baseball not many people can successfully
play multiple roles effectively.

We all know that selling is a

complex profession. When closely
examining our clients salespeople
and what they sell, how they should sell, who they sell
to and the industries they sell into, its unmistakable
that different and unique skills are required for success
in each of those sales roles. While the Challenger
profile may indeed be a fit for some organizations,
believing that one type of salesperson will succeed
in all sales roles is unrealistic, and decades of hard
science proves it.
Kyle Andrews
Pretium Partners

Chally uses science and statistics to predict sales success. The Sales Executive Council methodology uses survey
responses from a statistically insignificant number of sales leaders, core and high performing salespeople and ignores
input from low performers. In other words, it is a flawed methodology.
In order to determine what the specific role requirements are, you must use a process that goes significantly deeper
and broader than the high level Challenger Model. As outlined below, Chally has developed the largest and most robust sales competency framework in the industry which includes 139 unique competencies, skills, and behaviors that
can differentiate performance in all sales and leadership roles.
Challys entire Sales and Leadership Competency Model
totaling 139 skills based on 40 years of research
27 Foundational Competencies from the Chally model that align with
Challenger Model and traditional sales process

Competencies that align with

client strategy and culture
Clients role(s) specific
competencies

Below are the 27 competencies that our client research has identified as foundational, and aligned with the Challenger
model. These competencies, skills, and behaviors go significantly deeper than anything provided by SECs Challenger
Model and this is still not enough. You must go deeper and get more specific, down to the individual role level.

Adapts Approach to Buyers Motivations

Develops Technical Competence

Develops Sales Leads

Problem Solving

New Business Development

Cross Selling

Qualifies with Standard Probes

Protecting Accounts

Qualifies Through Needs Analysis

Managing Account Plan

Qualifies for Fit Within Product Constraints

Challys
Foundational
Challenger
Competencies
Influences
Limited Negotiation
Unlimited Negotiation
Closes Through Personal Trust
Closes Through Emotional Appeal
Closes Through Logical Incremental Steps

Engager
Prospecting & Qualifying

Ability to Learn the Business

Trains Customers
Makes Persuasive Presentations
Makes One-on-One Presentations
Provides Intellectual Capital
Delivers Added Value
Partners as a Customer Advocate
Reinforces Standard Features/Benefits
Eliminates Emotional Concerns

Answer Objections by Logically Removing Obstacles

Challenger
Educating, Create Value,
Managing Objections

Influencer
Negotiating and Closing

Organizer
Planning and Servicing

Figure 1. Foundational Competencies from the Chally model that align with Challenger Model and traditional sales process

The Key to Successful Sales

Identifying the right competencies and behaviors required for a particular job.
To determine a select group of skills, at the role level that
statistically differentiates top and bottom performers, a profile comprised of the differentiating skills must be created.
The profile must leverage a proven statistical methodology.

Quantitative: Your sales team completes the Chally assessment and is scored against 139 work-related skills. The
data is then merged with actual performance data and
compared to our normative database.

This process is far more than simply interviewing a couple of high performers and saying they do X and that
should be the future model. Rather, it is a process based
on science that incorporates key elements as follows:

Integration: Skills identified as most relevant by quantitative/qualitative elements undergo analysis for job fit and review for adverse impact. This becomes the predictive profile
that identifies the skills that differentiate performance.

Qualitative: Information is gathered about the duties,

activities, and responsibilities of those in the focus position. Individual differences, in terms of knowledge, skills,
and abilities are also explored.

Depending on the clients objective and performance

data, Chally will either build a client custom profile or
leverage one of our 14 core sales profiles, developed via
our World Class Sales research.

Figure 2. Clients role(s) with specific competencies and aligned with company culture
SALES
SPECIALTY MAP

Hunter

Outside: Field Sales

Indirect Sales

Farmer

Other

Inside: Telesales/Mktg.
Customer Service
Direct Sales

Full Line
Sales to Resellers or
through Distributors

Full Specialized Products/Services

Major Account

Territory

Strategic
Account

System
Specialist
New Business
Development
(Hunter)

Major Account
Management
(Farmer)

Consultative
(more Hunter)
Product/System

Relationship
(more Farmer)
Product/System

Product/
Service
Specialist

Outbound

Product/
Transactional
Specialist

Inbound

Customer
Service

Many people would believe the process outlined above is simple. The challenge is identifying what are the table stakes (minimum
requirements, necessary but not sufficient) for the job and which actually predict success.

Following are two examples:

Example #1: Which of the following measures would you think Tiger Woods placed in the top 10 when he was the #1
golfer in the world over 2007-2009?
Driving accuracy

Ball proximity to hole

Driving distance

Scrambling

Greens in regulation

Putts per round

Most would say all are important, however, Tiger was only in the top 10 in one measure scrambling and actually
38th or higher in the remaining categories. Why scrambling? When Tiger makes a bad shot, he gets out of trouble
(scrambles) and he is able to minimize mistakes, which puts him in a position to win more often.
Example #2: A Global Consumer Products Company, utilized Challys profiling process to identify what is critical for its
key sales roles.
This organization sells the same products to three unique
business units: retail, hospitals, and doctors/dietitians.
The client was certain that Product Knowledge was critical
to sales success for one of its key business units. Although
Chally does not measure specifically what salespeople
know about the product they sell, we do measure their
desire to be a credible resource to their client about their
product or services.
Chally followed its profiling process and discovered that
nearly all 500 salespeople on the team scored above average on this skill. However, there was no significant differ-

ence between high, average, and low performance. Which

indicates (product knowledge) is not predictive of success;
rather it is a table stake or requirement for the job, proving that having more of that skill does not predict higher
success.
Even though all three units sell the same products, the
skills to support the unique customers require very different profiles with unique competencies, skills, and behaviors demonstrating Challys point that successful sales
differs at the industry, company, product, and customer
level one size (Challenger) does not fit all.

Now that we have disposed of the premise that the Challenger Model is not new, lets look at the science
behind The Challenger Sale. According to the books introduction, its based upon the authors experience
over four years with dozens of companies and thousands of sales reps. In other words, the data behind
the book appears to be purely anecdotal and, if so, possesses no scientific validity.
By contrast, Challys data is based upon more than 400 validation studies conducted over 40 years, covering more than
500,000 people shows that the Challenger Model does not go nearly deep enough and doesnt address the unique sales
skills required depending on the products they sell and the customers they sell them to. Sales is much more complex
than just being a Challenger.
Geoffrey James
Industry Leading Sales Writer and Blogger

10

Summary:
In order to survive, and eventually thrive in todays
competitive environment, companies must work more
creatively. They must implement necessary tools and
processes required to manage sales resources across a
rapidly changing product life cycle, spurred by advancing
technology and expanding competition.

be successful or unsuccessful in a specific sales role has

proven to be ineffective.

New data-driven tools are needed to guide the actions

necessary to select and manage critical salespeople
resources. The real secret to success resides in the analysis and utilization of extensive fact-based information
on the actual differentiators between successful and less
successful sales teams.

That is, the broad number of sales reps falls near the
center of capability and performance with extremely
poor and extremely successful reps deployed at either
extreme. Any effort to rely consistently on identifying
and hiring only outstanding reps will meet with failure
because the simple reality is that superstars come in
short supply. There simply are not enough high performing sales professionals available to permit staffing the
entire organization with outstanding performers.

These facts can only be gathered through detailed data

collection and benchmarking against the real drivers for
sales success as documented by research across thousands
of sales teams in a variety of markets and conditions.
The critical skills, behaviors, and abilities necessary to define
selling success vary from company to company and market
to market. Generalized models, while readily accepted as
reasonable and appropriate when first discussed, fall short
of the necessary fact-based direction needed to make transformational change in a sales organization.
Chally believes generalized sales models are flawed as
the foundation of your sales talent management strategy.
The Chally approach goes beyond surface-level observations and anecdotal evidence to gather the actual data
required to develop an objective and research-based
approach, and to implement a measured and measurable
approach to adjusting the sales organization to match
the specific requirements of your market, your business,
and most importantly, your customer base.
Sales is a complex and challenging position with extensive variability across roles and responsibilities. Hiring,
training, and developing the right salesperson requires
fact-based decision making that goes far beyond a superficial determination as to whether a candidate or current
sales rep is a Challenger, Lone Wolf, or Relationship Builder. These descriptive behaviors are certainly useful for
development at the foundational level, but this general
and broad approach to predicting whether someone will

Salespeople are regularly positioned across a normal curve

of skills, abilities, and competencies. The success of individuals within a sales role generally follows that normal curve.

On the other hand, it is safe to say that an effective strategy must include avoiding employing those who are at
the opposite end of the spectrum, those who consistently under-perform.
The Challenger Selling Model does not take into account
the fact that this bell curve of available talent governs the
selection opportunities, nor does it recognize the distinctions between the skills required for any specific sales
role. In fact, SECs research only focused on above-average and core performerswhat about the comparison
to low performers?
Turning back to sports, all-star baseball players are, of
course, extremely gifted athletes with high performing
skills. However, the fact that they are gifted players does
not allow them to perform at high levels in every position.
All are athletes, but they are not all equipped with the
same skills, abilities, and competencies.

Per Billy Beane,

You can always recover from the player you
didnt sign, but you may never recover from the
player that you did sign that you shouldnt have.
In addition, not all baseball players rise to the level of allstar. There is a normal curve for talent, even for athletes
with exceptional talent.

11

Neglected by most sales managers/leaders, industrial psychologists, human resources managers, and researchers
is the fact that there is more to a high-performance sales
team than selecting the next Michael Jordan. It is vital to
eliminate the players that cost the company money, are
difficult to manage, and dont deliver results. It is largely
about not hiring the salespeople who are below average.
In selection and assessment practices, we routinely hear
companies and consultants make the claim that if you
assess your top 15 people, we can create a profile based
on them and you can utilize that profile to select only
those good performers who match that profile. Ask
any sales manager where he or she is spending valuable

coaching time (a) on the superstar performers or (b) the

borderline performance reps - the overwhelming majority is
dealing with poor performance issues. Though the aspiration in selection and development efforts is about hiring/
coaching the high-potential salesperson, in practice its
much more about recovering from poorly made choices.
Building a winning sales organization or transforming
your current team is a complex undertaking. Simple solutions based on generalizations do not provide meaningful insights.
Research-based analytics can provide the depth and details
necessary to discern success and avoid the cost of failure.

About Chally
Chally Group Worldwide was founded in 1973 through a grant from the U.S. Justice Department to develop a selection
assessment to measure the skills and motivation of law enforcement candidates and predict who would be most successful. Our measurements had to be accurate, statistically valid predictors, and legally defensible.
Chally Group Worldwide has evolved into a global sales potential and performance measurement firm utilizing our
industry leading research, predictive analytics, and advisory services to ensure our clients have the vital information
to minimize risk associated with making critical talent management decisions relating to selection, alignment, development and succession planning. With nearly 40 years of experience, Chally provides tools in more than 24 languages
across 49 countries.
Our extensive research database, disciplined approach, and expertise ensure the accuracy of our solutions that are customized for the specific requirements of each of our clients, providing them with vital information and analysis, empowering them to make critical talent management decision in:
Selecting and developing the right people
Aligning talent to strategy, operations, and client deliverables
Measuring potential versus actual performance

Increasing productivity
Managing succession
Improving customer retention

3123 Research Blvd Dayton, OH 45420

937.259.1200

800.254.5995

www.chally.com

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