Chap 3 - Leadership and The Sales Executive

Part Two:
Sales Leadership
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Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall.
Sales Management: Shaping Future Sales Leaders
Leadership and
the Sales Executive
Chapter 3
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Learning Objectives
 Understand historical development and different
approaches to examining leadership
 Recognize contributions made by contemporary
leadership approaches
 Identify issues today’s sales leaders face
 Use the information in this chapter to develop
your own leadership skills
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Learning Objectives
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What is Leadership?
 A process whereby an individual influences other
group members to move toward or achieve a
common goal
Leadership
1 2
Is a process Occurs in a group
3 4 Involves movement
Involves influence
toward a goal
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Leadership Practices vs.
Management Practices
Leadership Practices
Aligning Motivating
Direction Change
People & Inspiring
Management Practices
Controlling
Planning Organizing
& Problem Predictability
& Budgeting & Staffing
Solving
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Research Findings
too many people with strong management

skills but weak leadership skills
too few people with both strong leadership and

management skills
did less than a very good job at attracting,

developing, and motivating people with
leadership potential2
2/3 of sales VPs indicated that <60% of their

sales managers were meeting expectations3
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Discussion Question
 Think of one person you know who is an effective
leader
 What actions or traits does the person
demonstrate?
 What behaviors does he or she engage in?
 Now do the same for an ineffective leader
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Understanding Leadership:
An Historical Perspective of Approaches
 1900s to 1940s; 2000s

Trait  These are the traits you need to be a leader
 1950s to 1960s
Behavioral  This is how leaders behave
 1960s to 1970s
Situational  Assess the situation and adjust behavior to it
 1980s to 1990s
Contemporary  Motivate your followers through your leadership
 1990s to 2000s
Emerging  Develop your followers
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The Trait Approach:
The Great Man Theory of Leadership
 People are born with traits that help develop leadership
skills
 Intelligence: higher verbal, perceptual, and reasoning skills
 Self-confidence: ability to be certain about competencies and skills
 Determination: demonstrate the ability to get the job done
 Integrity: demonstrate honesty and trustworthiness
 Sociability: ability to interact in a comfortable, outgoing, pleasant
manner
 Limitations
 Lacks a universal list of traits
 Not evident which trait is more important and how they interact
 Traits and their strength change, but that doesn’t appear to reverse
leadership ability
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Mandela’s 8 Lessons of Leadership
 Many would consider Nelson Mandela to have many of
the traits of a leader. How can you apply his ‘8 Lessons
of Leadership’ to sales management?
1. Courage is not the absence of 5. Keep our friends close – and
fear – it’s inspiring others to your rivals even closer
move beyond it
6. Appearances matter – and
2. Lead from the front – but don’t remember to smile
leave your base behind
7. Nothing is black or white
3. Lead from the back – and let
others believe they are in front 8. Quitting is leading too
4. Know your enemy – and learn

about his favorite sport
For more see “The Secrets of Leadership,” by Richard Stengel, Time, July 21,2008, 172(3), 41-48.
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The Behavioral Approach:
This is How a Leader Behaves
1. Consideration behaviors and initiating structure
 Maintaining good social interactions and relationships with a group’s
members and building respect and trust within a group
2. Employee-centered vs. production-centered
 More productive leaders were more employee-centered
3. The Leadership Grid®
 Concern for people, concern for production
4. Application
 Leaders should engage in behavior addressing both social needs of
individuals and task accomplishment
 Demonstrating more consideration should result in more group
satisfaction
5. Limitations
 No theory found one best way to lead; leadership depends upon the
characteristics of the situation, not just the person doing the leading.
 No empirical evidence linking leadership styles and effectiveness
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Contemporary Perspectives: Motivate
Your Followers Through Leadership
1 Leader-member exchange 2 Transformational leadership
(LMX) theory theory
 Unique relationship between  Leader is determined and has
a leader and each group charisma to inspire, change, or
member (dyad) otherwise transform followers
 In-group and out-group  Stimulate followers
 Out-group more formal, less intellectually, encourage them,
satisfied and productive support development
 Give personal attention and
 Led to leadership-making make each feel valued and
concept important
 Every leader should work to  Followers trust, respect, and
have as many in-group want to emulate leaders
relationships as possible and  Positively correlates with job
few or no out-group satisfaction and better
relationships performance
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Emerging Concepts:
Develop Your Followers
1  Steven Covey Seven Habits of Highly Effective
People: Principle-centered leadership model
1. Be proactive
2. Begin with the end in mind
3. Put first things first
4. Think win-win
5. Seek first to understand, then to be understood
6. Synergize
7. Sharpen the saw
8. Find your voice and inspire others to find theirs
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Emerging Concepts:
2 Robert Greenleaf: Servant leadership model
 Leaders should serve their followers, set an example
 Emphasizes collaboration, empathy, and ethical use of
power
 Listening, empathy, healing, awareness, persuasion,
stewardship, commitment to growth of people, building
community
 Starbucks, Men’s Wearhouse, ServiceMaster, Southwest Airlines
mission statements
 College / University service learning projects
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Ethics in Sales Management:
Ethical Leadership at Ken Vance Motors
Golden Rule Truth

 Follow the Golden Rule, treat  Never tell lies or distort the truth;
others the way you would like to it’s easier to tell the truth from
be treated; it’s simple and it the beginning
works
Trust & Respect Communication

 Trust and respect must be  Good communication is critical,
central in the relationship with be it with your customer or your
your customer employees; time spent listening
to them is time well spent
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Emerging Concepts:
3 Jim Collins: Level 5 leadership model
 Leaders of great companies
 Modest and willful
 Humble and fearless
 Set up their successors for greater success
 Diligent
 Individual’s level of skills builds successively on skills
and abilities of previous levels
 Hierarchy describes skills and abilities individuals
should possess as they move into more skilled and
esteemed Level 5 leadership positions
 Combines concepts from earlier leadership research
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Leadership Challenges
for the Sales Executive
Recruiting & Selecting Removing Limitations

Good Employees Facing Females
Keeping Avoiding
Good Employees Ethical Mistakes
Executing Maintaining
Virtual Leadership Motivated Sales Teams
Diversifying Integrating
the Sales Force Technology
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All rights reserved. No part of this publication may be reproduced, stored in
a retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

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Part Two:

too many people with strong management

too few people with both strong leadership and

did less than a very good job at attracting,

2/3 of sales VPs indicated that <60% of their

 1900s to 1940s; 2000s

4. Know your enemy – and learn

Golden Rule Truth

Trust & Respect Communication

Recruiting & Selecting Removing Limitations

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