1. Part Five: Process Management Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-1

2. Sales Management: Shaping Future Sales Leaders Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. Supervising, Managing, and Leading Salespeople Individually and in Teams Chapter 10

3. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-3 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. Learning Objectives  Explain and describe the difference between sales supervision, management, and leadership  Identify the skills and abilities a person needs to become a good sales manager  Understand the elements of teamwork and how to successfully develop and work with teams, including those that are virtual  Recognize the ethical challenges facing leaders and teams in the sales environment

4. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-4 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

5. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-5 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

6. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-6 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

7. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-7 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

8. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-8 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

9. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-9 Ethics in Sales Management: What Are the Traits of a Bad Leader? Incompetent 1 Rigid 2 Intemperate 3 Callous 4 Corrupt 5 Insular 6 Evil 7 Source: Based on Kellerman, Barbara (2001). Bad Leadership: What It Is, How It Happens, Why It Matters. Harvard Business School Press.

10. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-10 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 important to making achievements  Getting people’s commitment is more important

11. Discussion Question  Management skills are something new sales managers need to develop  What are some specific behaviors that they should engage in?  What misperceptions do ‘new’ sales managers have about managing people? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-11

12. 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 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-12 Source: Watkins, Michael (2003). The First 90 Days, Cambridge, MA: HBR Press.

13. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-13 Manager’s Perspective: Behaviors Managers Should Demonstrate Clarify the direction your business is taking 1 Set goals and objectives 2 Give frequent, specific, immediate feedback 3 Be decisive and timely 4 Be accessible 5 Demonstrate honesty and candor 6 Offer an equitable compensation plan 7

14. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-14 Rep’s Perspective: What It Takes to Be a Good Sales Manager Be flexible 1 Be a good communicator 2 Work for the good of the team 3 Be considered trustworthy 4 Motivate and lead the team 5

15. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-15 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”

16. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-16 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

17. Emotional Intelligence  Emotional Intelligence is the ability to understand and manage the emotions of other people in light of your own Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-17 Skills or AbilitiesHallmarks Self-Management Skills Self-AwarenessSelf-confidence, realistic self-assessment Self-Regulation Trustworthiness, integrity, comfort with ambiguity, open to change MotivationDrive to succeed, optimism Ability to Relate to Others EmpathyExpertise in building and retaining talent Social SkillsPersuasiveness

18. The Value of Emotional Intelligence (EI)  “Research shows that EI is more important than IQ in almost every role and many times more in leadership roles.” Dr. Stephen Covey, 7 Habits of Highly Effective People  “A leader’s intelligence has to have a strong emotional component. They have to have high levels of self- awareness, maturity and self-control. … emotional intelligence is important in the making of a leader.” Jack Welch, former Chairman of General Electric  Research showed that sales staff who developed their EI were 25% more productive than their counterparts who didn’t. Hallmark Communities Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-18

19. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-19 What Additional Leadership Competencies Do Sales Managers Need? CoachingMentoring Feedback Working in Teams

20. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-20 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 and observe  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

21. 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? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-21

22. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-22 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

23. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-23 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

24. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-24 Self-Assessment Library  Go to http://www.prenhall.com/sal/  Access code came with your book  Click the following  Assessments II. Working With Others B. Leadership and Team Skills 6. How Good Am I at Building and Leading a Team?

25. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-25 What’s Expected from You as a Team Member Get involved 1 Generate ideas 2 Be willing to collaborate 3 Be willing to lead initiatives 4 Develop leaders as you develop 5 Stay current 6 Anticipate market changes 7 Drive your own growth 8 Be a player for all seasons 9

26. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-26 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

27. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-27 Global Sales Management: Developing Global Leaders  79% of companies surveyed are accelerating global leadership development strategies (Conference Board study)  Leadership development programs  Country-specific leader competencies  Recurring themes  Collaboration, teamwork, communication  Alignment across borders  People development and coaching Source: Based on Bell, Andrew N. (2006). Leadership Development in Asia-Pacific: Identifying and Developing Leaders for Growth. New York: The Conference Board.

28. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-28 5 Challenges for Future Leaders Incorporate globalization/internationalization of leadership concepts 1 Increase the integrity and character of leaders 2 Incorporate new ways of thinking about leadership 3 Integrate technology 4 Demonstrate return on investment 5

29. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-29 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. Role Play: Outside Escapes  Outside Escapes offers 1-week vacations involving activities (rafting, kayaking, hiking, cycling, ziplining, and so forth) in exciting locations  Marketed to young (usually single) businesspeople who enjoy an exciting vacation with social opportunities and can afford to spend several thousand dollars on a vacation  Green Getaways, same vacation marketed to organizations as training retreat/team-building opportunity

30. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-30 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. Role Play (continued) : Outside Escapes  Sales force had 3 regional offices, 5-7 reps and sales manager for each  Organized roughly by time zones, sales office in each region  Most reps work in other cities and out of their offices  Selling is inside (phoning contacts) and outside (corporate presentations)  Salary + commission  Calls forwarded to open offices, depending on time zone  Reps will work with client, rep in another time zone will close the sale

31. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-31 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. Role Play (continued) : Assignment  Plans to increase sales by 25% for each of the next 4 yrs  Sales problems likely to get worse unless resolved.  Owner has brought the company’s sales managers together to develop a plan  Divide into pairs  1 is sales manager who believes dividing work in team fashion will improve business  1 is sales manager who believes each rep should work independently  Owner wants the 2 of you to develop list of advantages / disadvantages of each approach  Include suggestions on how you might proceed if your approach were implemented

32. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-32 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. Caselet 10.1: Friend or Mentor? Deciding When to Take Action  Informal mentoring relationship between Carol and Helen  Carol’s hearing rumors that Helen’s performance is slipping  Helen drinks heavily during dinner, berates waiter unfairly  New sales management position opening soon, Carol reconsiders recommending Helen

33. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-33 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. Caselet 10.1 (continued) : Questions 1.Where should Carol’s loyalties lie? What do you think is going on with Helen? 2.As her informal mentor, should Carol take it upon herself to ask Helen about her performance and what’s causing it to decline? Or should she mind her own business? 3.What other actions should Carol consider taking?

34. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-34 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. Caselet 10.2: Teamwork?  Walnut Creek Gazette ad sales teams have 2 account managers who work in the field and contact clients  Sales assistants spend time on the phone identifying and developing new accounts  Potential new client calls WCG sales manager  Considering ad options, nobody from WCG sales has contacted him  Lindsey is senior account rep in territory, should have already contacted client  Newer account rep Morgan still developing, recently lost 2 acc’ts not satisfied with response from ad

35. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. 10-35 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall. Caselet 10.2 (continued) : Questions 1.What are the advantages and disadvantages of handing the lead to Morgan, the newer account manager? 2.What are the advantages and disadvantages of handing the lead to Lindsey? 3.How would you make this decision? 4.How do you think your decision would affect the rest of the members on Lindsey’s and Morgan’s team?

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