sales ch 7.ppt

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.




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.




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.




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.




Setting the StageSetting the Stage

1. What is the part of SAP’s mission statement mentioned in the vignette?

Sales Leadership: SAP America




Setting the StageSetting the Stage

2. How does Bill McDermott build the best possible sales team?

Sales Leadership: SAP America




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.




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




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




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.




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




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




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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Sources of PowerSources of Power

Legitimate PowerLegitimate Power

Reward PowerReward Power

Coercive PowerCoercive Power

Expert PowerExpert Power

Referent PowerReferent Power




13-17


• 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.




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• 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.




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• 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)




• 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




Developing Power.Developing Power.




• 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




• 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




• Anticipating and Seeking Feedback

• Diagnostic

• Selection and Matching

• Communication

Leadership SkillsLeadership Skills




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




• 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:




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






• 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




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”




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




The War RoomThe War Room

Done Month Budget Actual Variance Jan

Feb

Mar

1st Quarter

April

May

June

2nd Quarter




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




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.





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.





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.




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.






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




Type Direct Effect Examples



Role Distortion For the firm• Bribery• Price fixing• Manipulation of suppliers




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




The Ideal Sales leaderThe Ideal Sales leader

• ____________• ____________• ____________• ____________• ____________




THNAKS

sales ch 7.ppt

Documents

sales management

sales force leadership

sales leadership model

contemporary sales leadership

annual sales

sales calls

supervisionsales leadership

specific sales strategies