Mastering Sales Leadership: The 3-Box Model for Success

Recently, we’ve delved into the Team STEP Model, a crucial framework for building high-performing and cohesive sales teams. If you need to skip back to this framework, I recommend listening to episodes 9, 11, 12, and 13 of the Stronger Sales Teams podcast - these offer valuable insights into team-building strategies and leadership structure.

Here, I want to focus on the third key lever of the Team STEP Model—the 3-Box Model. This model simplifies sales metrics, providing a clear and effective way to measure sales team performance while keeping motivation high. As your guide, I'll share my personal journey from a high-performing salesperson to a Sales Leader and how the challenges I faced led to the development of this powerful model.

The Importance of Sales Leadership Training:

Before we dive into the 3-Box Model, let me share a vulnerable moment from my own experience. Early in my career, I transitioned from a successful sales role to a leadership position without adequate management or leadership training. This lack of preparation became evident when a seasoned team member resigned, citing dissatisfaction with my sales leadership style.

This incident prompted me to seek training, but I struggled to find resources that addressed the day-to-day challenges of running a sales team. Over the next few years, I grappled internally with building a high-performing sales team, but it wasn't until I received guidance from unexpected mentors that I honed my leadership skills. Now, my mission is to help aspiring sales leaders shorten their learning curve and avoid the pitfalls I encountered.

"Lighting a Fire Underneath Someone Will Never be as Effective as Lighting a Fire Within"- Bob Teague

Sales Leadership Success:

So far, our deep dive into the world of successful sales leadership has centered around four pivotal habits. Our exploration has encompassed the construction of an efficient sales process, emphasizing the utilization of four essential levers crucial for achieving peak performance—known as the Team STEP Model. Additionally, we've delved into the realm of measuring success, employing what we term the 3-Box Model, a subject yet to receive a detailed introduction. Equally vital in our discussion has been the establishment of a steadfast commitment to long-term training, encompassing coaching proficiency and a robust focus on accountability—topics that await a more thorough exploration.

While we've thoroughly examined the intricacies of the sales process and dissected the components of the Team STEP Model, today marks our dedicated focus on the 3-Box Model. As the third element among the four key levers, the 3-Box Model offers Sales Leaders a powerful tool to utilize metrics effectively, ensuring not only accurate measurement of their team's performance but also the maintenance of high motivation levels. Let's delve into this vital aspect of sales leadership.

Why Measurement is so Important?

In the realm of sales leadership, the measurement of salespeople stands as a cornerstone within every Sales Leader's arsenal. When used effectively, it becomes a potent instrument for engaging and motivating teams. However, if utilized poorly, the risks loom large—manifesting as a reactive business with plummeting sales figures, dwindling team morale, and an overall decline in sales team performance. Despite the widespread use of sales metrics globally, the absence of a standardized set of reporting applicable to all businesses complicates matters. Each business, with its distinct goals and unique requirements, demands a tailored approach. Moreover, the omnipresence of Customer Relationship Management (CRM) systems inundates Sales Leaders with a surplus of data, threatening to turn the task of reporting into a full-time endeavor. It's imperative for Sales Leaders to tread carefully, avoiding an overwhelming array of metrics, which, if excessive (think 10+ reports), can prove challenging to integrate into daily routines.

"According to a study by Harvard Business Review, tracking too many metrics can actually be counterproductive, as it can lead to confusion and a lack of focus among sales teams."

This is where simplicity becomes paramount, and we advocate for the '3-Box Model' as a straightforward yet effective solution. Embraced by a majority of the teams we work with, this model cuts through the complexity, providing a clear and concise framework for measuring sales team performance.

The 3-Box Model:

The 3-Box Model comprises three essential metrics that align with the stages of the Team STEP Model. These metrics are designed to simplify measurement while maintaining focus and predictability. The three boxes are:

• Number of Meetings: This metric tracks the total number of customer meetings a team member conducts in a given period. It provides insights into the team's energy, prospecting effectiveness, and lead response times.
• Active Pipeline Size: Measured in dollars, this metric focuses on the total value of the active pipeline. It assesses the team's strategic approach, including needs analysis, lead quality, and effective use of sales materials.

• Sales Achieved: This metric, also recorded in dollars, measures the actual sales closed during a specific period. It reflects the team's talent in closing deals, working with the right customers, and leveraging technical skills.


Weekly or monthly measurements align seamlessly with the 3-Box Model. While some high outbound-driven teams opt for daily statistics, others involved in complex, high-value, and long-cycle endeavors may look at metrics over a quarter. For the purposes of this model demonstration, we'll adopt a monthly timeframe.

How do we calculate the numbers for each team member?

Setting up the metrics for each team member is a relatively quick process, taking about 10 minutes per person. The ease of monitoring is further enhanced, especially when leveraging a CRM system. Let's break down the steps and the information needed, assuming a month is the reporting period. Uncertain about the above metrics? If so, take a pause and schedule a free call with us, where we'll guide you through building these out. Otherwise, keep reading. Now armed with your business numbers, let's navigate through how to populate the 3-Box Model for your business, starting from 'Sales Achieved' on the right-hand side, working backward to 'Active Pipeline Size,' and concluding with 'Number of Meetings.' See my example below to help you complete the 3-Box Model for your team. 

How to Use the Numbers

Before we delve further, a disclaimer: while the 3-Box Model stands strong as a standalone tool, its potency multiplies when combined with our Team STEP Playbook. Please download the free Team STEP Playbook resource if you haven't already, as we'll reference it throughout the journey.

To maximize the 3-Box Model, incorporate it into sales meetings and individual team member coaching or 1:1 sessions. Consistency is key to its success, and given its simplicity, it should facilitate easy discussions without requiring extensive analysis or preparation; many teams even automate this in their CRM dashboards.

Remember, the 3-Box Model is not just a metric; it's a strategic approach to elevate your sales team's performance.

"The ability to simplify means to eliminate the unnecessary so that the necessary may speak." - Hans Hofmann

Aligning with the Team STEP Model:

These three metrics align seamlessly with the Team STEP Model's core principles of strategy, talent, and energy. By linking each metric to a specific aspect of the model, Sales Leaders can easily assess team performance and identify areas for improvement.

Troubleshooting and Examples:

To troubleshoot team performance, Sales Leaders can analyze the alignment or misalignment of these metrics. For instance:

• Strong Meetings, Weak Sales: Indicates a focus on prospecting but challenges in closing deals, requiring attention to the talent box.
• Strong Sales, Weak Meetings: Suggests potential future issues due to a lack of new opportunities, emphasizing the need for increased prospecting efforts.
• Strong Meetings, Weak Pipeline and Sales: Signals a misalignment between prospecting efforts and market reception, necessitating a closer look at strategy and energy.

Implementation Tips:

Implementing the 3-Box Model requires consistency, teamwork, and buy-in from salespeople. Consistent usage in sales meetings and one-on-one coaching sessions fosters a norm within the team. It's essential to involve salespeople in the setup process to ensure understanding and reduce anxiety. Moreover, consistency is crucial for the success of this straightforward yet powerful metric system.

Listen to the podcast: The Only 3 Metrics You Need to Measure a Sales Team

Conclusion:

In conclusion, mastering sales leadership involves leveraging effective models and metrics. The 3-Box Model offers a simplified yet comprehensive approach to measuring team performance, aligning seamlessly with the principles of the Team STEP Model. Aspiring Sales Leaders are encouraged to download the free resource available for a detailed guide on implementing the 3-Box Model. As you embark on this journey of leadership, remember that envisioning yourself twelve months ahead and embodying the qualities of your future self can propel you toward success. By living in a world of possibility, you'll be amazed at what you can achieve.

Eager for more insights?

I've got so much more to share with you on the Stronger Sales Teams Podcast – with new episodes dropping weekly; listen in today!

About the Author

Hi, I’m Ben

I’m a builder of incredible sales teams, trainer, coach and an avid believer that the best sales leaders are constantly sharpening their tools to achieve an ‘edge’.

[email protected]