part five: process management copyright © 2009 pearson education, inc. publishing as prentice hall....

Part Five:Process Management

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.10-1

Sales Management: Shaping Future Sales Leaders

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.10-2Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.

Supervising, Managing, and Leading SalespeopleIndividually and in Teams

Chapter 10

Sales Management: Shaping Future Sales Leaders

SupervisingLeading

Managing


What is Supervising?

Supervision: time spent working with employees to be certain they are aware of the responsibilities of their job and how to perform them correctly

Observe and offer suggestions for improving performance if needed

First-level manager: more experienced sales personnel who supervises new hires

Technology can be used to track and manage daily activities


What is Managing?

Manage sales personnel and work responsibilities in order to achieve the goals of the organizational unit

Organize and staff sales force Decide how to organize work, divide responsibilities, determine

who handles what tasks Incent, train, develop, and coach reps

Measure and analyze performance of sales force

Requires skills in Setting objectives,

organizing tasks necessary to achieve objectives, motivating sales force, problem solving

Leadership vs. Management

Leadership About coping with

change

Establish direction, align resources and inspire

Management About coping with

complexity

Brings about order and consistency

Leadership is the ability to influence a group toward the achievement of a vision or a set of goals.


Sources of Power

Formal power: given on the basis of the position a person holds in an organization; the authority an individual is given to accomplish his job

Informal power: power an individual has as a result of skills, personality or geniality; can exert more influence than a person with only formal power


Sources of Power: Formal Power

Coercive Ability to withhold rewards Typically builds resentment and resistance on the part

of the recipient(s)

Reward

Ability to distribute rewards Provide more desirable territories, different

compensation levels, gifts, benefits, promotions, job titles, and accoutrements related to work environment

Legitimate

Power given to a particular position Power to make decisions regarding issues of

employment, budgeting, etc., to accomplish the tasks under their responsibility

Informational Derived from ability to access and control information

others don’t have More effective organizations share information


Sources of Power: Informal Power

Charismatic When an individual is strongly admired based on

personality, physical attractiveness, and other factors

Referent Based on the degree to which a person is liked due

to personality and interpersonal skills

Expert Based on a person’s knowledge, skills, and

expertise


Ethics in Sales Management: What Are the Traits of a Bad Leader?

Incompetent1

Rigid2

Intemperate3

Callous4

Corrupt5

Insular6

Evil7

Source: Based on Kellerman, Barbara (2001). Bad Leadership: What It Is, How It Happens, Why ItMatters. Harvard Business School Press.


Becoming the Boss: Perception vs. Reality

Skills required to be a good manager are different from those of being a star sales performer

Misperception

Mgmt job will revolve around implementing their own ideas

Power comes from position

Just work with individuals to keep things going

Controlling people is important

Reality

It’s more about working together and combining everyone’s ideas

Power comes from informal bases of power

Clearing obstacles is importantto making achievements

Getting people’s commitment is more important

Time to Celebrate?

Question: When should you celebrate your first sales management position?

Answer: After 90 days

Research shows that the actions that new sales managers take in their first 3 months largely determine whether they’ll be successful or not in their new positions


Source: Watkins, Michael (2003). The First 90 Days, Cambridge, MA: HBR Press.


Manager’s Perspective: Behaviors Managers Should Demonstrate

Clarify the direction your business is taking1

Set goals and objectives2

Give frequent, specific, immediate feedback3

Be decisive and timely4

Be accessible5

Demonstrate honesty and candor6

Offer an equitable compensation plan7


Rep’s Perspective: What It Takes to Be a Good Sales Manager

Be flexible1

Be a good communicator2

Work for the good of the team3

Be considered trustworthy4

Motivate and lead the team5


Importance of Good Leaders

A poor sales manager can cost a company millions of dollars in lost sales opportunities One study places this number at $10 to 20 million annually

2/3 sales VPs indicated 40% of their sales leaders were not meeting expectations Cited lack of leadership and coaching skills as source of

failure

Dissatisfaction with boss is #1 rep complaint

Sales manager expectations and roles are changing “We have changed the first-line sales manager’s role to

become more of a training and coaching/development role vs. a super salesman”


A New School of Managerial Thought?

Transactional leadership: two-factor approach that focused on an exchange between leaders and followers (late 20th century)

Transformational leadership: focuses on needs and motives of employees, tries to help them reach their fullest potential Emotional intelligence: ability to understand and manage

emotions of other people; includes self-awareness, self-regulation, motivation, empathy, social skills

Transactional leaders –

motivate their followers in the direction of established goals by clarifying role and task requirements

Transformational leaders –

inspire followers to transcend their own self-interests for the good of the organization

Transactional vs. Transformational Leader

Full Range of Leadership Model

How Transformational Leadership Works

Followers are encouraged to be more innovative and creative

Followers pursue more ambitious goals and have more personal commitment to them

Vision engenders commitment from followers and greater sense of trust

Emotional Intelligence

Emotional Intelligence is the ability to understand and manage the emotions of other people in light of your own


Skills or Abilities Hallmarks

Self-Management Skills

Self-Awareness Self-confidence, realistic self-assessment

Self-RegulationTrustworthiness, integrity, comfort with ambiguity, open to change

Motivation Drive to succeed, optimism

Ability to Relate to Others

Empathy Expertise in building and retaining talent

Social Skills Persuasiveness


What Additional Leadership Competencies Do Sales Managers Need?

Coaching Mentoring

FeedbackWorkingin Teams


Coaching Principles

Be a Role Model Demonstrate desired behaviors, explain how and why

you did the things you did Give reps chance to use same tactics

Give feedback Focus on improving skills Be specific when pointing out good selling skills and

those that could be improved

Prepare andobserve

Let reps know you’re joining them to observe and offer feedback

Understand objectives of calls, listen carefully

Follow-up Do what you say you’ll do

Trust Relationships will be more productive with trust than

without

Discussion Question

Imagine a situation in which your sales rep just had a poor sales call (or presentation)

What coaching principles should you make sure you follow as you provide the rep with feedback?

How would you initiate such a conversation?



Mentoring

Mentoring: long-term relationship where senior person supports personal and professional development of junior person

Person who acts as a teacher or trustworthy advisor

Formal or informal relationship


Organizing and Working Effectively with Teams

A team might be comprised of representatives from several functional areas A group of people with complementary skills who are able to

collectively complete a project in a superior way Committed to a common goal Members interact with each other and the leader and depend

on each other’s input to perform their own work

Self-managed team: empowered to handle an ongoing task

Project team: organized around a unique task of limited duration and disbanded when task is complete


Self-Assessment Library

Go to http://www.prenhall.com/sal/ Access code came with your book

Click the following Assessments

II. Working With OthersB. Leadership and Team Skills

6. How Good Am I at Building and Leading a Team?


What’s Expected from You as a Team Member

Get involved1

Generate ideas2

Be willing to collaborate3

Be willing to lead initiatives4

Develop leaders as you develop5

Stay current6

Anticipate market changes7

Drive your own growth8

Be a player for all seasons9


Tips for Working with Virtual Sales Teams

Select the technology that works best for the team

Communicate frequently; most groups do so daily

Track down members who aren’t participating

Have agreed-upon ground rules for the team’s interaction


5 Challenges for Future Leaders

Incorporate globalization/internationalization of leadership concepts1

Increase the integrity and character of leaders2

Incorporate new ways of thinking about leadership3

Integrate technology4

Demonstrate return on investment5

Management Skills

Dun & Bradstreet

Technical SkillsHuman SkillsConceptual Skills

Management Level

Top Managers

Middle Managers

First-Line Managers

Non-managers (Personnel)

Top Managers

Time Spent On Management Functions

28%

36%

22%

14%

PlanningOrganizingLeadingControlling


28%

36%

22%

14%


Source: T.A.Mahoney, T.H.Jerdee, & S.J.Carroll, “The Jobs Of Management”

Middle Managers


18%

33%36%

13%



18%

33%36%

13%



First Level Managers


15%

24%

51%

10%



15%

24%

51%

10%



part five: process management copyright © 2009 pearson education, inc. publishing as prentice hall....

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