Podcast Summary: The Twenty Minute VC (20VC) Episode Featuring Carlos de la Torre, CRO @ Harness
Introduction
In this episode of The Twenty Minute VC (20VC), host Harry Stebbings welcomes Carlos de la Torre, the Chief Revenue Officer (CRO) at Harness. Carlos brings a wealth of experience from his previous roles as CRO at MongoDB and Navan (formerly Trip Actions), as well as his insights as an investor. The conversation delves deep into effective sales strategies, particularly emphasizing the significance of pipeline generation for sales representatives.
1. Sales: Art or Science?
Carlos opens the discussion by addressing a fundamental question: Is sales an art or a science?
“I think it's more science than art. Candidly.” – Carlos de la Torre [04:32]
He argues that while certain innate attributes like empathy and emotional intelligence (EQ) contribute to a salesperson's effectiveness, the core skills required for sales can be systematically taught and replicated. Drawing parallels to how art can be broken down into learnable components, Carlos emphasizes that sales strategies can be structured and optimized scientifically.
2. The Crucial Role of Pipeline Generation
A significant portion of the conversation centers around why pipeline generation is essential for every sales representative.
“The AES are responsible for generating the pipeline that will support them being successful. Them hitting quota, then anything they get from the other sources is a gift.” – Carlos de la Torre [00:00]
Carlos explains that relying solely on inbound leads or external demand generation can lead to a lack of accountability. By ensuring that Account Executives (AEs) actively generate their own pipeline, sales reps value their leads more and maintain greater control over their success.
3. Hiring Sales Reps: Experience vs. Potential
Carlos shares his philosophy on recruiting effective sales representatives, emphasizing the importance of aligning a candidate's innate attributes with the job's requirements over merely assessing past successes.
“You can't change the DNA. If they don't have any of the skills, it's going to take a very long time for them to have the ramp.” – Carlos de la Torre [08:27]
He advises against overvaluing past achievements without considering whether the candidate possesses the fundamental skills necessary for future success. Instead, recruiters should evaluate a candidate's potential to develop these skills, ensuring a better fit and higher performance in their roles.
4. Structuring Sales Teams and Time Allocation
The discussion moves to how sales teams should structure their time, particularly the allocation towards pipeline generation.
“Roughly a third of your time, 20% of your time, one day a week is dedicated to outbound cold calling.” – Carlos de la Torre [19:10]
Carlos advocates for dedicating a significant portion of a sales rep’s time to outbound efforts. He suggests a structured weekly cadence where pipeline generation is a core component, balanced with other responsibilities like deal prosecution and customer management.
5. Pipeline Generation Practices at Harness
Carlos delves into the specific strategies employed at Harness to optimize pipeline generation:
- Weekly Cadence: Starting on Thursdays with account planning, followed by research over the weekend, and engaging in pipeline generation activities on Tuesdays.
- Collaboration: Involving managers and marketing in the preparation process to enhance the quality of outreach.
- Training and Support: Continuous training sessions to refine pipeline generation skills and foster a supportive team environment.
“Once you've got conviction that it's repeatable, go and hire a team around it.” – Carlos de la Torre [06:05]
This structured approach ensures that sales reps are well-prepared and supported, leading to higher productivity and better conversion rates.
6. Maintaining Morale and Performance
Carlos addresses the challenges of maintaining team morale, especially during tough sales periods.
“One of your responsibilities as a manager is to maintain intimacy with the team, intimacy with how they're feeling.” – Carlos de la Torre [45:11]
He emphasizes the importance of open communication and addressing underlying issues head-on. By fostering a transparent environment where team members can express their frustrations and challenges, managers can effectively mentor and uplift their teams during downturns.
7. Verticalized Sales Playbooks
The conversation touches upon the effectiveness of verticalized sales playbooks versus horizontal approaches.
“If you have a solution where it's just radically different... centralizing knowledge around what's going on in an industry so that salespeople can be more relevant...” – Carlos de la Torre [46:23]
Carlos supports the idea of verticalized playbooks when dealing with fundamentally different industries, allowing sales reps to tailor their strategies and value propositions accordingly. However, he cautions against over-verticalizing, which can undermine meritocracy and lead to uneven distribution of opportunities within the salesforce.
8. The Future of Sales Reps with AI
Looking ahead, Carlos envisions a transformative role for AI in sales.
“AI will automate a lot of the research, a lot of the prep work... higher productivity across the board.” – Carlos de la Torre [55:53]
He anticipates that AI will streamline research and preparation, enabling sales reps to handle more accounts and enhance their overall productivity. Additionally, AI-driven tools will aid in better matching candidates with roles, potentially reducing attrition rates by improving hire quality.
9. Common Misconceptions in Sales
Carlos identifies prevalent myths in the sales world, particularly the overemphasis on charisma and the "art of closing."
“I don't believe salespeople sell, buyers buy. All salespeople can do is create an environment that is conducive to that purchase decision.” – Carlos de la Torre [61:34]
He challenges the notion that sales is about convincing or coercing customers, advocating instead for creating genuine value and understanding customer needs to facilitate informed buying decisions.
10. Closing Thoughts and Advice for Sales Leaders
Towards the end of the episode, Carlos offers valuable advice for new sales leaders:
“Today, you're going to have pressure to build the team quickly. Better to be late than to hire mediocre people.” – Carlos de la Torre [64:22]
He underscores the importance of patience and diligence in building effective sales teams, prioritizing quality hires over speed. Additionally, Carlos reflects on his own experiences, sharing lessons learned from past hiring mistakes and successes.
Conclusion
Carlos de la Torre imparts comprehensive insights into building and managing effective sales teams, emphasizing the pivotal role of pipeline generation, strategic hiring, and continuous training. His pragmatic approach blends scientific methodology with a deep understanding of human behavior, offering a blueprint for sales leaders aiming to drive sustained growth and success.
For a visual recap, you can watch the full episode on YouTube by searching for "20VC."