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Sales Leadership, Management, and Supervision
Sales Leadership, Management, and Supervision
Module Seven
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
Learning ObjectivesLearning Objectives
1. Distinguish between sales force leadership, management, and supervision.
2. Explain how the LMX model and leadership style approaches contribute to contemporary sales leadership.
3. List of the six components of the sales leadership model.
4. Discuss five bases of power that affect leadership.
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
Learning ObjectivesLearning Objectives
5. Explain five influential strategies used in leadership.
6. Discuss issues related to coaching the sales force, holding integrative meetings, and practicing ethical management .
7. Identify some of the problems encountered in leading and supervising a sales force.
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
SALES LEADERSHIP:SAP AMERICASALES LEADERSHIP:SAP AMERICASAP America is the leader in enterprise application software, with annual sales in excess of $2.8 billion. Bill McDermott became CEO of SAP America in 2002. He had spent 17 years in sales and sales management at Xerox and served as executive vice president of worldwide sales and operations at Siebel Systems. His leadership at SAP has produced overall growth of about 14 percent in a flat market. What key leadership activities are responsible for this type of growth? One is the development and buy-in by employees of mission and vision statements. Every SAP America employee is given a pocket-sized booklet entitled “Words of Honor: SAP America. Vision. Mission. Values.” In it, for example, employees can read that the company’s mission is “to build a trusted partnership with each customer by delivering business solutions that create value and superior customer advantage.” Employees refer to this booklet on a regular basis as a reminder of the values and commitment of the company.The mission and vision statements have translated into a customer-centric corporate culture. Bill McDermott reinforces this culture in several ways. He has developed specific sales strategies for each customer group and aligned the sales organization structure to implement these strategies and serve customers more effectively. He and the executive vice president of sales spend a great deal of time with customers, sometimes accompanying salespeople on sales calls.
SAP America is the leader in enterprise application software, with annual sales in excess of $2.8 billion. Bill McDermott became CEO of SAP America in 2002. He had spent 17 years in sales and sales management at Xerox and served as executive vice president of worldwide sales and operations at Siebel Systems. His leadership at SAP has produced overall growth of about 14 percent in a flat market. What key leadership activities are responsible for this type of growth? One is the development and buy-in by employees of mission and vision statements. Every SAP America employee is given a pocket-sized booklet entitled “Words of Honor: SAP America. Vision. Mission. Values.” In it, for example, employees can read that the company’s mission is “to build a trusted partnership with each customer by delivering business solutions that create value and superior customer advantage.” Employees refer to this booklet on a regular basis as a reminder of the values and commitment of the company.The mission and vision statements have translated into a customer-centric corporate culture. Bill McDermott reinforces this culture in several ways. He has developed specific sales strategies for each customer group and aligned the sales organization structure to implement these strategies and serve customers more effectively. He and the executive vice president of sales spend a great deal of time with customers, sometimes accompanying salespeople on sales calls.
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
SALES LEADERSHIP:SAP AMERICASALES LEADERSHIP:SAP AMERICAIn fact, McDermott often tells customers to call him directly if they need anything and he will take care of it. Much of McDermott’s time is also spent with employees. He hires the best talent and communicates with them often to build the best possible team. One approach he uses is to hold regular, company-wide, town hall–style meetings in which remote employees join via video link. He also e-mails employees on their birthdays and anniversaries, and uses several ways to acknowledge special effort. For example, when one salesperson spent a great deal of time closing an important deal, McDermott sent the rep’s husband a gift basket thanking him for his patience while his wife was working long hours.
SAP America is building a network of partners to sell a new product that integrates disparate business applications to smaller customers. This will require changes in the SAP America sales force. However, the basic mission, vision, and customer-centric culture at SAP America will not change. In fact, the commitment to the company’s basic values makes it easier to implement new strategies for the sales organization.
In fact, McDermott often tells customers to call him directly if they need anything and he will take care of it. Much of McDermott’s time is also spent with employees. He hires the best talent and communicates with them often to build the best possible team. One approach he uses is to hold regular, company-wide, town hall–style meetings in which remote employees join via video link. He also e-mails employees on their birthdays and anniversaries, and uses several ways to acknowledge special effort. For example, when one salesperson spent a great deal of time closing an important deal, McDermott sent the rep’s husband a gift basket thanking him for his patience while his wife was working long hours.
SAP America is building a network of partners to sell a new product that integrates disparate business applications to smaller customers. This will require changes in the SAP America sales force. However, the basic mission, vision, and customer-centric culture at SAP America will not change. In fact, the commitment to the company’s basic values makes it easier to implement new strategies for the sales organization.
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
Setting the StageSetting the Stage
1. What is the part of SAP’s mission statement mentioned in the vignette?
Sales Leadership: SAP America
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
Setting the StageSetting the Stage
2. How does Bill McDermott build the best possible sales team?
Sales Leadership: SAP America
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
Sales Leadership, Sales Management, and Sales Supervision
Sales Leadership, Sales Management, and Sales Supervision
Sales Leadership:The ability to influence others to achieve common goals for the collective good of the sales organization and company.
Sales Management:Activities related to the planning, implementing, and controlling the sales function.
Sales Supervision:Activities related to working with sales subordinates on a day-to-day basis.
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
Contemporary Views ofSales Leadership
Contemporary Views ofSales Leadership
• Leadership Style– Transactional leadership– Transformational Leadership
• Leader-Member Exchange (LMX) Model– Leadership style is unique for each
salesperson
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
Leader-Member Exchange (LMX) Leader-Member Exchange (LMX)
Leader-member exchange theory states that, because of
time pressure, leaders establish a special relationship with a small group of followers based on attitude, demographic, and traits similar to the leaders. This group is called In Group, they receive more attention, reward, greater performance ratings.
Out-Group consists other followers who get less attention, reward, and have leader-follower relations based on formal authority interactions
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
LeadershipLeadership
• Transactional Leader• Leader who clarifies the role and task requirements of
subordinates, initiate structure, provide appropriate rewards, and try to be considerate to and meet the social needs of subordinates.
• Transformational Leader• A leader distinguished by a special ability to bring about
innovation and change by recognizing followers’ needs and concerns, helping them look at old problems in new ways, and encouraging them to question the status quo.
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Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
TRANSFORMATIONAL LEADERSHIP -TRANSFORMATIONAL LEADERSHIP -
Motivate othersMotivate others
Vision beyond self-interestVision beyond self-interest
Seek intrinsic higher level goalsSeek intrinsic higher level goals
Seek performance beyond expectationsSeek performance beyond expectations
Have charismaHave charisma
Keycharacteristics
of transformational
leaders
Keycharacteristics
of transformational
leaders
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Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
SituationTime ConstraintsNature of TasksHistory and Norms
NeedsSalespeopleOther People
LeadershipSkillsAnticipationDiagnosticSelectionCommunication- Influence Strategy- Communications Mechanisms
PowerSalespeopleOther People
PowerSales Manager
Goals &ObjectivesIndividualOrganizational
SalesManager’sLeadership
Effectiveness
Leadership Model for Sales Management Leadership Model for Sales Management
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
Power and Leadership Power and Leadership
Referent Power
Legitimate Power
Reward Power
Coercive Power
Expert Power
Five types of power which may be present in interpersonal relationships:
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Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
13-16
Sources of PowerSources of Power
Legitimate PowerLegitimate Power
Reward PowerReward Power
Coercive PowerCoercive Power
Expert PowerExpert Power
Referent PowerReferent Power
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
13-17
Sources of PowerSources of Power
• Legitimate Power– Capacity to influence derived from the position of a
manager in the organizational hierarchy. Subordinates believe that they “ought” to comply.
• Reward Power– An influence over others based on hope of reward.
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
13-18
Sources of PowerSources of Power
• Coercive Power– Influence over others based on fear. A subordinate
perceives that failure to comply with the wishes of a superior would lead to punishment of some other negative outcome.
• Expert Power– Capacity to influence related to some expertise, special
skill, or knowledge.
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
13-19
Sources of PowerSources of Power
• Referent Power– Power based on a subordinate’s identification with a
superior. The more powerful individual is admired because of certain traits, and the subordinate is influenced because of this admiration.
– (using stars in ads to sell something by showing their use of product)
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
• Trait Approach – identify traits of an effective leader
• Behavior Approach – identify behaviors associated with effective leadership
• Contingency Approach – leadership style is contingent upon situation
Situational FactorsSituational Factors
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
Developing Power.Developing Power.
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
• Important when coercive power is not being utilized
• Realize all needs and wants cannot be met
• Not all leadership directives need to be based on needs and wants
• Consider each salesperson as a unique individual
Needs and Wants of SalespeopleNeeds and Wants of Salespeople
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Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
• Leadership is easier when personal goals and objectives of the salespeople are consistent with those of the organization.
• Sales managers strive to seek balance and consistency between organizational goals and their salespeople’s goals.
Goals and ObjectivesGoals and Objectives
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Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
• Anticipating and Seeking Feedback
• Diagnostic
• Selection and Matching
• Communication
Leadership SkillsLeadership Skills
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Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
Communication Skills:Influence Strategies
Communication Skills:Influence Strategies
• Threats (coercive power)
• Promises (reward power)
• Persuasion (expert or referent power)
• Relationships (referent or legitimate power)
• Manipulation
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Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
• Take a we approach• Address only one or two problems at a time• Don’t focus on criticizing poor performance, reinforce good
performance• Foster involvement• Recognize differences in salespeople and coach accordingly• Coordinate coaching with more formal sales training• Encourage continual growth and improvement• Insist salespeople evaluate themselves• Obtain agreement with respect to punishments and rewards• Keep good records
CoachingCoachingThe continuous development of salespeople through supervisory feedback and role modeling. Suggestions for affective coaching include:
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
Planning and ConductingIntegrative Meetings
Planning and ConductingIntegrative Meetings
• Keep technical presentations succinct (brief)
• Use visual aids and breakout discussion groups
• Keep salespeople informed of corporate strategy and their role in it
• Minimize operations review
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
Planning and ConductingIntegrative Meetings
Planning and ConductingIntegrative Meetings
• Set a humane schedule . . . allow time for sharing and adequate breaks
• Set and communicate the agenda
• Ask for input from the salespeople
• Generate excitement with contests and other rewards
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
Monitor ActivityMonitor Activity
• Where do you set the vision and monitor the activity?
• The Sales Meeting
““where there is no vision the people fail”where there is no vision the people fail”
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
The Sales MeetingThe Sales Meeting• How do you run one?
• First and foremost everyone should know daily what the score is.
• Review– Renewals– Avails
• The War Room
You can only manage what you measure
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
The War RoomThe War Room
Done Month Budget Actual Variance Jan
Feb
Mar
1st Quarter
April
May
June
2nd Quarter
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
The Sales Board“what gets measured gets done”
The Sales Board“what gets measured gets done”
Mark Betty Jim Acct Amt Acct Amt Acct Amt Burger King $1500 Holiday Inn $800 Barnes Chevrolet $2000
Jack in the Box $3000 Kornmeyers $990 Davidson $700
Burns a& Co $500 Starbucks $1000 Griffon’s $1000
Total $5000 $2790 $3700
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
Approaches to Management EthicsApproaches to Management Ethics
Immoral Management– Intentional and consistent management activity
conflicting with what is moral (ethical).
– Exploits opportunities for corporate gain. Cut corners when it appears useful.
– Seeks profitability and organizational success at any price.
– Selfish. Management cares only about its or the company’s gain.
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
Approaches to Management EthicsApproaches to Management Ethics
Amoral Management– Management activity that is neither consistently moral
or immoral . . . Decisions lie outside the sphere to which moral judgments apply.
– Give managers free rein. Personal ethics may apply but only if managers choose. Respond to legal mandates if caught and required to do so.
– Seeks profitability. Other goals are not considered.
– Well-Intentioned but selfish in the sense that impact on others is not considered.
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
Approaches to Management EthicsApproaches to Management Ethics
Moral Management– Management activity conforms to a standard of ethical
or moral behavior.
– Live by sound ethical standards. Assume leadership position when ethical dilemmas arise. Enlightened self-interest.
– Seeks profitability within the confines of legal obedience and ethical standards
– Management wants to succeed but only within the confines of sound ethical precepts.
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
Meeting Ethical andMoral ResponsibilitiesMeeting Ethical and
Moral Responsibilities
Sales managers should be aware of three particularly relevant types of unethical acts:
1. Nonrole
2. Role Failure
3. Role Distortion.
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
Meeting Ethical andMoral ResponsibilitiesMeeting Ethical and
Moral Responsibilities
Nonrole Against the firm• Expense account cheating• Embezzlement• Stealing supplies
Type Direct Effect Examples
Role Failure Against the firm
• Superficial performance appraisal
• Not confronting expense account cheating
• Palming off a poor performer with inflated praise
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
Type Direct Effect Examples
Meeting Ethical andMoral ResponsibilitiesMeeting Ethical and
Moral Responsibilities
Role Distortion For the firm• Bribery• Price fixing• Manipulation of suppliers
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
Problems in LeadershipProblems in Leadership
• Conflicts of Interest• Chemical Abuse and Dependency• Problem Salespeople: A Disruptive Influence
– Lone Wolf – Corporate Citizens– Institutional Stars– Apathetics (indifferent)
• Termination of Employment• Sexual Harassment
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
Ingram LaForge Avila
Schwepker Jr. WilliamsProfessional Selling:A Trust-Based Approach
Module 7:Sales Leadership, Management, and Supervision
The Ideal Sales leaderThe Ideal Sales leader
• ____________• ____________• ____________• ____________• ____________
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