LEADERSHIP

Sales Management
 Leadership Factors in Sales Management
Sales Manager
Skills Power Styles
Empowerment Vision Legitimate Directing
Intuition Value Congruence Coercive Coaching
Self-understanding Referent Supporting
Expert Delegating

Sales Team Situation

Activities Salesperson’s Task structure
Interaction Behavior Time pressure
Norms External system
Sentiments

Salesperson
Professional maturity
Needs
Goals
Relationship with manager
 Intuition Empowerment

Leadership
Value skills
Vision
congruence

Self-understanding

Figure 12-1: Leadership Skills

 “HAVING A LITTLE CHAT”
“Jennifer, I thought we’d have a little chat. I don’t get the pleasure
of just talking with you very often. I guess we just tend to spend
most of our time on our problems. Good people like you tend to be
taken for granted. This is your sixth year with us, right? I wanted to
let you know that it has been a pleasure working with you over that
time. Incidentally, I was a little surprised to hear that some of your
customer reports have been incomplete. Some of the clerks have
even had to call some of your people in order to fill in the missing
information.
“I told them that you’re probably so busy out there getting us so
much business that you’re tired when it comes to the reports. But it
would save us time and money if you could be more complete. I’m
sure you’ll take better care of this in the future. That’s what gives
me so much pleasure in dealing with pros like you. See a problem.
Fix it. No big deal. Anyway, I know you’ll take care of it.
 “CUSTOMER ABUSE”
One day in the office, you overhear one of your salespeople being
loudly abusive to a customer over the phone. Right after he slams the
phone down, you mention: “That was a pretty heated exchange.
Sounds to me as if you lost it.”
“Well, she’s a pain. She’s always complaining about one thing or the
other, none of which is important and often not true. On top of it all,
she’s rude.”
“I thought you were pretty rough, telling her that if she doesn’t like
how her orders are handled, she can take her business elsewhere.”
“She won’t.”
“That’s not the point. We don’t get nasty with customers. Next time
that happens, and you start getting hot, I want you to tell the customer
that you’ll look into the problem and get back to him. Hang up. Cool
down. Find out what you need to know. And then call back. Do you
understand? I don’t ever want to hear a conversation like that again.”
 ASSERTIVNESS STEPS

• Describe what you see going on:

• “We agreed you’d make 16 calls per week. You’re
averaging 11.”
• Describe how you feel about what is going
on:
• “I’m puzzled, I can’t tell from your reports what
you’re doing. I’m frustrated because each time we
have this talk you say you will live up to your end of
the agreement.”
 RESPONSIVNESS STEPS

• What does the other person see going on?

“Yes, I know I’m not making the 16 calls.”

• How does the person feel about it?

I’m upset. In fact, I’m furious. We’ve been having all sorts of
delivery and installation problems. It seems I spend half my
time on the phone with the plant straightening out problems.
I’ve called you, but you always seem tied up.”
 ASSERTIVNESS STEPS

• Be precise in the change you want

“One more time. I expect you to do what we’ve agreed on: an average
of 16 calls per week.”

• Mention the benefit of the change to the other person

“Living up to our agreement is the only way I can give you a good
appraisal. And you can’t afford more than one bad or mediocre
appraisal
 RESPONSIVNESS STEPS
• What change does the other person desire
in you?
“I don’t call you unless the problem is very serious. So
I would like you to get back to me when I’ve got a
problem that I think it serious enough to bother you
with.”
• What are the benefits of the change for the
other person?
“There are at least two. I produce better, because I
have time. And the company has better customer
relations, because I know that other people in the field
have also experienced my kind of problem.”
 High

Supporting Selling
Supportive behavior

Delegating Telling

Low
Low Directive behavior High

Figure 12-2: Four Leadership Styles

 High

Supporting Selling

Supportive behavior

Delegating Telling

Low
Low Directive behavior High
High High Some Low
competence, competence, competence, competence,
high variable low high
commitment commitment commitment commitment
High Follower maturity Low

Situational Leadership: Follower Maturity and Leadership Styles

 CHANGE MANAGEMENT PROCESS
• Assessment - examination of the customer environment in
which the company operates.
• Redesign - initiatives based on three interrelated tasks:
– Customer orientation - know customer buying process.
– Sales strategy - deployment of sales resources and buyer
segmentation.
– Selling processes - determined by the segment of buyer.
• Measurement - determine the indicators of successful
change.
• Sales Support Programs - programs to support and
reward implementation of the change program.
• Implementation Strategies - pilot test programs.
 How Change Oriented are You?
Instructions:
To find out to what degree you like change, use the following scale
in responding to the following eighteen statements. There is no right
or wrong answer. Rather, the intent is to help you explore your
attitudes toward change.

SA = Strongly Agree
A = Agree
? = Undecided
D = Disagree
SD = Strongly Disagree
 HowHow Innovative
Change Orientedareare
You?
You?
1. I try new ideas and new approaches SA A ? D SD
to problems.
2. I take things or situations apart to SA A ? D SD
find out how they work.
3. I can be counted on by my friends to SA A ? D SD
find a new use for existing methods.
4. Among my friends, I’m usually the SA A ? D SD
first person to try out a new idea.
5. I demonstrate originality. SA A ? D SD
6. I like to work on a problem that has SA A ? D SD
caused others great difficulty.
 HowHow
Change Oriented
Innovative areare You?
You?
7. I plan on developing contacts with
experts in my field located in SA A ? D SD
different companies or departments.
8. I plan on budgeting my time and SA A ? D SD
money for the pursuit of novel ideas.
9. I make comments at meetings on new SA A ? D SD
ways of doing things.
10. If my friends were asked, they SA A ? D SD
would say I’m a wit.
11. I seldom stick to the rules or follow SA A ? D SD
protocol.
12. I discourage formal meetings to SA A ? D SD
discuss things.
 HowHow Innovative
Change Orientedareare
You?
You?
13. I usually support a friend’s SA A ? D SD
suggestion on new ways to do things.
14. I probably will not turn down SA A ? D SD
ambiguous job assignments.
15. People who depart from the
accepted organizational routine SA A ? D SD
should not be punished.
16. I hope to be know for the quantity
of my work rather than the quality of SA A ? D SD
my work when starting a new project.
17. I must be able to find enough
variety of experience on my job or I SA A ? D SD
will leave it.
 HowHow Innovative
Change Orientedareare
You?
You?
18. I am going to leave a job that SA A ? D SD
doesn’t challenge me.
Scoring:
Give yourself the following points for each circled response.
SA = 5 points
A = 4 points
? = 3 points
D = 2 points
SD = 1 point
 Activities

Norms Interactions

Sentiments

Figure 12-4: Internal Systems of a Group

 “Jose Guerrilla”
You are the boss with the title, rank, experience,and all the
accountability that comes with the job. You have the feeling that your
salespeople are not following many of your orders. You wonder if you
are becoming paranoid. Although you are the formal leader, an informal
leader has emerged. It’s Jose Guerrilla.

Deliberately or not, he has become influential, even playing amore

dominant role than you. Jose is one of your top salespeople, but is
behaving like an underground rebel. The group’s overall performance is
quickly dropping. Is there a connection?

You must correct the situation soon. You do not want to lose Jose, he
is a valuable salesperson, besides you really like Jose. Ground rule #1,
you have got to turn the situation around. Why did an informal leader
emerge? How do you handle Jose? What can you do to prevent this from
reoccurring?
 DECISION OPTIONS
“Jose Guerrilla”
1) Get the group together and remind them that you are the boss. Tell
them like it or not the ignoring of your orders must and will stop.

2) Take Jose aside and tell him you “appreciate” the “help” in
managing the group. Tell Jose that by pulling together, you can
make the situation work out right for everyone.

3) Let nature take its course. Sit back and let Jose make a big mistake
that will cause him to lose favor with the group.

4) Take time to get to know Jose. When you know his career
objectives you will probably find that he is not after your job. Use
Jose to make your communications between yourself and the group
more efficient.

5) Talk to each member of the sales team separately. Let them know
that you know what is going on and that it is tantamount to
insubordination.
Effectiveness in Selling New Ideas or Programs
1.You should try to sell an idea to the "natural"
leaders first.

2.Thoroughly explaining the reasons for a change

will invariably turn resistance into cooperation.

3.Getting to know your people well is one of the

best ways to obtain control over their resistance
to change.
Effectiveness in Selling New Ideas or Programs

4.It's usually better to hold a meeting to address the

entire sales force about a change that will affect
them.

5.You should inform your sales force as far in

advance as possible about changes that will affect
them.

6.When you propose a program or an idea, you are

unlikely to encounter resistance except on the
most important issues involved.
 Coaching
Situation Important Points
Prior to 1. Who is being called on?
Sales 2. What happened last time?
Call 3. Objective of call?
4. Objections may arise?
5. How to handle objections?
6. Who are key players?
7. Developmental points last call?
 Coaching

Situation Important Points

During the 1. Let salesperson control call.
Sales Call 2. Answer necessary questions briefly.

After the 1. Ask for self-evaluation.

Sales 2. Reinforce positive behavior.
Call 3. Suggest effective responses.
4. Keep records.
 Additional Suggestions for
Coaching Salespeople

1. Instead of criticizing them, repeatedly tell salespeople

what you like about their performance.

2. Help salespeople improve by giving them “how to” advice.

3. Insist that salespeople evaluate themselves in order to

develop their evaluative abilities regarding their own work
habits and performance.

4. Ask questions to ensure the salesperson is actively

involved.
 Additional Suggestions for
Coaching Salespeople

. Make the most of resources that are available to you,

such as special training materials and so on.

. An agreement between you and the salesperson should

be arrived at regarding corrective actions to be taken.

. Keep records of specific standards of performance,

including how performance will be measured and by
what date. The salesperson should be shown these
records when they are written to avoid any
misunderstandings.
Table 12-2 Sales Managers’ Rankings of the Causes of Plateauing Among
Salespeople

Mostly Mostly Salary Commission

Overall Men Women Only Only

No clear career path 1 1 2 1 4

Not managed adequately 2 2 4 3 1
Bored 3 3 3 2 5
Burned out 4 5 1 5 2
Economic needs met 5 4 7 6 3
Discouraged with company 6 6 5 4 6
Overlooked for promotion 7 7 6 7 8
Lack of ability 8 8 9 8 7
Avoiding risk of management job 9 9 10 10 9
Reluctance to be transferred 10 10 8 9 10
 “Hot Shot”
When asked the question, “Are you a winner?” Hot Shot
answers, “Well, how did you know?” When dealing with this
type of personality it is best to keep a cool head.
Although she is a top salesperson, meeting or beating
quotas, she is clearly a victim of tunnel vision. High
productivity is a great asset to have in an employee, but she
believes that this asset alone is reason for a managerial
position.
Hot Shot has heard an incorrect rumor that a district sales
manager position is opening and believes that she deserves
the job. She shows no tact in letting everyone know her
feelings. History has shown that although she is an excellent
salesperson, she is quite a loner. In your opinion she isn’t
ready for a job with the responsibilities of a district sales
manager.
 “Hot Shot”
You have a reputation of being fair and rewarding
outstanding achievements. There is not need to change
your style now, but you have just received a letter from
Hot Shot. She is very direct and states, “I have worked
long and hard for this company and have always been
the top salesperson. I have no complaints at all about
salary, or the commission and bonus plans. I want you
to recognize that I feel I am totally ready for a sales
manager’s job, the next one that opens up. It is
important for me to tell you that if this company cannot
use my talents, I have only one choice to make. What
say?”
 “Hot Shot”
The letter enrages you but you realize that you cannot
fire her or give her a job that does not even exist. In
fact it is your job to keep her self-esteem and energy as
a salesperson intact since your job depends on the
productivity of your sales force. Your boss wants to
know exactly how you are going to handle this one.
 DECISION OPTIONS
“Hot Shot”
1) Make a sincere promise to Hot Shot that she will get the next
manager's spot that opens.

2) To give Hot Shot more recognition you send her and her husband
to the national sales convention with the company picking up the
tab.

3) Do not let the other salespeople think you give into ultimatums.
You consider the letter as a letter of resignation and let Hot Shot
go.

4) Make special managerial training available to the sales group.

Tell Hot Shot that when an opening becomes available her
excellent sales record along with the techniques learned in the
course will place her among the top applicants.
 Termination Suggestions
• Establish a paper trail.
• Reasons for termination should be specifically
spelled out.
• When possible, offer an attractive severance
package and outplacement services.
• The firing session should be brief.
• The firing session should be held at the
beginning of the week.
 Table 12-2 Women in Sales: Percentages by Industry
Percent of Women
Industry In Sales Force

Banking 24.7
Business services 30.3
Chemicals 9.1
Communications 34.7
Educational services 50.4
Electronics 19.6
Food products 28.5
Health services 45.1
Insurance 27.4
Miscellaneous manufacturing 17.6
Office equipment 24.1
Printing/publishing 38.9
Retail 20.0
Rubber/plastics 17.7
Transportation equipment 23.9
Wholesale (consumer) 19.5
Average 24.3
 Harassment Suggestions
1. Conduct yourself professionally.
2. Dress appropriately.
3. Be cautious when drinking at business
functions.
4. Don’t listen to sob stories.
5. Avoid being alone when possible.
6. Use independent transportation.
7. Trust your instincts.