1. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 11 Leadership of a Sales Force The first thing that you have to do to turn around a team is to envision the process. Bill Parcells NFL coach

2. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. TM 12-1 (Fig. 11-1) Leadership Effectiveness Personal characteristics Managerial skills Leadership effectiveness Leadership style (the leader behaviors) S I T U A T I O N

3. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Leadership Characteristics and Skills Personal Characteristics Self-Confidence Initiative Energy Creativity Maturity Managerial Skills Problem-solving skills Interpersonal skills Communication skills Persuasive skills

4. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Two Leadership Styles Transactional Leadership Those supervisory activities regarding the day-to-day operation and control of the sales force. Clarifying rules Providing verbal feedback Transformational Leadership Transforms the basic values, beliefs, and attitudes of followers such that they are willing to perform at levels above and beyond expectations. Articulating a vision Fostering group goals Role modeling Providing individualized support

5. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Figure 11-2 Critical Leader Behaviors for Different Situations Transactional Leader Behaviors Transformational Leader Behaviors Informing Basic Rules Verbal Feeback Articulat- ing a Vision Fostering Group Goals Providing a Role Model Individual- ized Support Newly hired, inexperienced rep  Veteran rep; low performance due to burnout  Unstable situation; crisis environment  High-performing rep; like autonomy 

6. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Tools and Techniques of Leadership Personal contact Sales reports Telecommunications Better customer and industry information Selling assistance Sales support Reporting responsibilities Communication Printed aids Meetings Indirect supervisory aids Compensation plans Territories Quotas Expense accounts Sales analysis procedures

7. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Coaching Sales Reps Three elements of leadership most often used to describe coaching Verbal feedback Praising salespeople when they do well. Leading by example Coaches are role models; salespeople will emulate them. Mutual trust and respect Created through two-way communication

8. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Outcomes of Effective Leadership TM 13-3 Well-Trained Salespeople Trust among Salespeople Citizenship Behaviors Voluntary behaviors important to the success of the firm (e.g., when one rep gives encouragement to a fellow, struggling rep) Better Performance Sales Force Morale A sense of common purpose and a belief among members that group goals can be attained.

9. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. (Fig. 13-2) Job Satisfaction Sometimes called individual morale An individual salesperson’s emotional and evaluative feelings toward various dimensions of the job, including feelings toward… Pay Promotions Job Security Benefits Co-workers The Sales Manager (or Leader) Individual salespeople must first each be satisfied with his or her job in order for high group morale to emerge.

10. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Problems Encountered in Leadership Poor performance Substance abuse Cheating on expense accounts Engaging in unethical behavior Third-party sexual harassment