Part Five: Process Management

Part Five:
Process Management
10-1
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
Sales Management: Shaping Future Sales Leaders
Supervising, Managing,
and Leading Salespeople
Individually and in Teams
Chapter 10
10-2
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
10-3
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
10-4
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
10-5
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
10-6
Sources of Power: Formal Power
 Power given to a particular position
 Power to make decisions regarding issues of
Legitimate employment, budgeting, etc., to accomplish the tasks
under their responsibility
 Ability to distribute rewards
 Provide more desirable territories, different
Reward compensation levels, gifts, benefits, promotions, job
titles, and accoutrements related to work environment
 Ability to withhold rewards

Coercive  Typically builds resentment and resistance on the part
of the recipient(s)
 Derived from ability to access and control information

Informational others don’t have
 More effective organizations share information
10-7
Sources of Power: Informal Power
 Based on a person’s knowledge, skills, and
Expert expertise
 Based on the degree to which a person is liked due

Referent to personality and interpersonal skills
 When an individual is strongly admired based on

Charismatic personality, physical attractiveness, and other
factors
10-8
Ethics in Sales Management: What Are
the Traits of a Bad Leader?
1 5
Incompetent Corrupt
2 6
Rigid Insular
3 7
Intemperate Evil
4
Callous
Source: Based on Kellerman, Barbara (2001). Bad Leadership: What It Is, How It Happens, Why It
Matters. Harvard Business School Press.
10-9
Becoming the Boss:
Perception vs. Reality
 Skills required to be a good manager are different from
those of being a star sales performer
Misperception Reality
 Mgmt job will revolve around  It’s more about working together
implementing their own ideas and combining everyone’s ideas
 Power comes from position  Power comes from informal
bases of power
 Just work with individuals to  Clearing obstacles is important
keep things going to making achievements
 Controlling people is important  Getting people’s commitment is
more important
10-10
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?
10-11
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.
10-12
Manager’s Perspective: Behaviors
Managers Should Demonstrate
1
Clarify the direction your business is taking
2
Set goals and objectives
3
Give frequent, specific, immediate feedback
4
Be decisive and timely
5
Be accessible
6
Demonstrate honesty and candor
7
Offer an equitable compensation plan
10-13
Rep’s Perspective: What It Takes to Be
a Good Sales Manager
1
Be flexible
2
Be a good communicator
3
Work for the good of the team
4
Be considered trustworthy
5
Motivate and lead the team
10-14
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”
10-15
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
10-16
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
Trustworthiness, integrity, comfort with
Self-Regulation
ambiguity, open to change
Motivation Drive to succeed, optimism
Ability to Relate to Others
Empathy Expertise in building and retaining talent
Social Skills Persuasiveness
10-17
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
10-18
What Additional Leadership Competencies
Do Sales Managers Need?
Coaching Mentoring
Working
Feedback
in Teams
10-19
Coaching Principles
 Let reps know you’re joining them to observe and offer
Prepare and feedback
observe  Understand objectives of calls, listen carefully
 Focus on improving skills

Give feedback  Be specific when pointing out good selling skills and
those that could be improved
 Demonstrate desired behaviors, explain how and why
Be a Role Model you did the things you did
 Give reps chance to use same tactics
Follow-up  Do what you say you’ll do
 Relationships will be more productive with trust than

Trust without
10-20
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?
10-21
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
10-22
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
10-23
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?
10-24
What’s Expected from You as a Team
Member
1 Get involved 6 Stay current
2 Generate ideas 7 Anticipate market changes
3 Be willing to collaborate 8 Drive your own growth
4 Be willing to lead initiatives 9 Be a player for all seasons
5 Develop leaders as you develop
10-25
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
10-26
Global Sales Management:
Developing Global Leaders
 79% of companies surveyed are accelerating E lle s m e re Is la n d S e v e rn a y a Z e m ly a
A rc tic O c e a n A rc tic O c e a n F ra n z Jo se f L a n d
A r cN etwi cS i b Oe r i a cn Ies l aa n nd s
G r e e n la n d ( D e n .) S v a lb a rd ( N o r.)
B a n k s I s la n d J a n M a y e n ( N o r.) N o v a y a Z e m ly a W ra n g e l Isla n d
V ic to ria Is la n d B a ff in Isla n d
global leadership development strategies

U .S .A .
C anada
Ic e la n d
F a r o e I s . ( D e n .) N o rw a y
U n ite d K in g d o m
D en.
Sw eden
F in la n d
E s to n ia
L a tv ia
R u s s ia 60°
A le u tia n Is la n d s ( U S A )
(Conference Board study)

L ith u a n ia
I re la n d N e th . B e la r u s
G e r m a n y P o la n d
B e l. U k ra in e
Isla n d o f N e w fo u n d la n d C zech. K u ril I s la n d s
A u s . H uS nl og v. a k . M o ld o v a K a z a k h s ta n
F ra n c e S w itz . S lo v . M o n g o lia
C r o . Y u g Ro .o m a n i a
B o s. U z b e k is ta n
N o r th A tla n tic O c e a n Ita ly M a c . B u lg a r ia
G e o rg ia
K y rg y z s ta n
U n ite d S ta te s o f A m e ric a P o rtu g a l
S p a in A lb a n ia
G re e c e T u rk ey
A r m e n ia A z e rb a ija n
T u r k m e n is ta n T a jik is ta n
N . K o re a
S . K o rea Japan
N o r th P a c if ic O c e a n C y p . L e b . S y ria N o rth P a c ific O c e a n
 Leadership development programs M o ro c c o

T u n is ia
Isra e l Ira q Ira n
A fg h a n is ta n
C h in a
C a n a r y I s la n d s ( S p .) Jo rda n
K u w a it P a k is ta n N epal
A lg e ria L ib y a B hu.
T he B ah am as E gypt Q a ta r
W e s te r n S a h a r a ( M o r.)
M e x ic o Cuba B ang. T a iw a n
H a w a iia n I s la n d s D o m in ic a n R e p u b lic Saudi A rUa . bA i .a E . In d ia M y an m a r (B u rm a)
O m an Laos
U .S.A . M a u rita n ia M a li
B e liz e
Jam .
H a iti P u e rto R ic o (U S )
N ig e r E ritre a
H o n d u ra s
D o m in ic a Senegal Sudan Y em en T h a ila n d P h ilip p in e s
C had V ie tn a m
 Country-specific leader competencies

G u a te m a la
T h e G a m b ia B u rk in a F a s o
E l S a lv a d o r N ic a ra g u a B a rb a d o s
G u in e a -B is s a u G u in e a B e n in D jib o u ti A n d a m a n I s l a n d s ( I n d Ci a a) m b o d i a
T r in id a d a n d T o b a g o M a rs h a ll I s la n d s
C o s ta R ic a C ô te D ’ Iv o ire N ig e ria S ri L a n k a F e d e r a te d S ta te s o f M ic ro n e s ia
V e n e z u e la G uyana S ie rra L e o n e E th io p ia
Panam a S u r in a m e C .A . R. B ru n e i G u a m (U S A )
M a ld iv e s
F re n c h G u ia n a (F r.) L ib e r ia C a m e ro o n
G hana Togo S o m a lia M a la y s ia
C o lo m b ia E q . G u in e a U ganda
S in g a p o re
G abon R w anda K enya K irib a ti
G a la p a g o s I s la n d s (E c u a d o r ) E cuador S a o T o m e & P r in c ip e In d o n e s ia
Z a ire B u ru n d i P a p u a N e w G u in e a
S o lo m o n Is la n d s
C ongo
 Recurring themes
T a n z a n ia S e y c h e lle s
M a la w i
P e ru
B ra z il A n g o la
Z a m b ia M o z a m b iq u e
B o liv ia M ad ag a sca r
N a m ib ia Z im b a b w e F iji
F r e n c h P o ly n e s ia ( F r.) N e w C a led o n ia
B o ts w a n a
In d ia n O c e a n
 Collaboration, teamwork, communication

P a ra g u a y M a u ritiu s
S w a z ila n d
A u s tra lia
S o u t h A f r i Lc ae s o t h o
U ru g u a y
S o u th P a c ific O c e a n C h ile S o u th A tla n tic O c e a n
 Alignment across borders

A rg e n tin a N e w Z e a la n d
T a s m a n ia
F a lk la n d Is la n d s ( Is la s M a lv in a s ) ( a d m . b y U K , c la im e d b y A rg e n tin a )
Î le s C ro z e t ( F ra n c e )
 People development and coaching S o u th G e o rg ia ( a d m . b y U K , c la im e d b y A rg e n tin a )
A n ta rc tic a
Source: Based on Bell, Andrew N. (2006). Leadership Development in Asia-Pacific: Identifying and
Developing Leaders for Growth. New York: The Conference Board.
10-27
5 Challenges for Future Leaders
1 Incorporate globalization/internationalization of leadership concepts
2 Increase the integrity and character of leaders
3 Incorporate new ways of thinking about leadership
4 Integrate technology
5 Demonstrate return on investment
10-28
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
10-29
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
10-30
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
10-31
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
10-32
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?
10-33
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
10-34
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?
10-35
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Part Five:

 Formal power: given on the basis of the position a person

 Ability to withhold rewards

 Derived from ability to access and control information

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

 When an individual is strongly admired based on

 “A leader’s intelligence has to have a strong emotional

 Focus on improving skills

Follow-up  Do what you say you’ll do

 Relationships will be more productive with trust than

1 Get involved 6 Stay current

2 Generate ideas 7 Anticipate market changes

3 Be willing to collaborate 8 Drive your own growth

4 Be willing to lead initiatives 9 Be a player for all seasons

5 Develop leaders as you develop

global leadership development strategies

(Conference Board study)

 Leadership development programs M o ro c c o

 Country-specific leader competencies

 Collaboration, teamwork, communication

 Alignment across borders

 People development and coaching S o u th G e o rg ia ( a d m . b y U K , c la im e d b y A rg e n tin a )

2 Increase the integrity and character of leaders

3 Incorporate new ways of thinking about leadership

5 Demonstrate return on investment

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