Sales Leadership, Management, and Supervision Module Seven Sales Leadership, Management, and Supervision

Learning Objectives Distinguish between sales force leadership, management, and supervision. Explain how the LMX model and leadership style approaches contribute to contemporary sales leadership. List of the six components of the sales leadership model. Discuss five bases of power that affect leadership.

Learning Objectives Explain five influential strategies used in leadership. Discuss issues related to coaching the sales force, holding integrative meetings, and practicing ethical management . Identify some of the problems encountered in leading and supervising a sales force.

Sales Leadership: SAP America Setting the Stage Sales Leadership: SAP America What is the part of SAP’s mission statement mentioned in the vignette? How does Bill McDermott build the best possible sales team? Answers “to build a trusted partnership with each customer by delivering business solutions that create value and superior customer advantage.” One approach he uses is to hold regular, company-wide, town hall-style meetings in which remote employees join via video link. He also e-mails employees on their birthdays and anniversaries, and uses several ways to acknowledge special effort.

Sales Leadership, Sales Management, and Sales Supervision The ability to influence others to achieve common goals for the collective good of the sales organization and company. Sales Management: Activities related to the planning, implementing, and controlling the sales function. Sales Supervision: Activities related to working with sales subordinates on a day-to-day basis. 2

Contemporary Views of Sales Leadership Leadership Style Transactional leadership Transformational Leadership Leader-Member Exchange (LMX) Model Leadership style is unique for each salesperson

Leadership Model for Sales Management Situation Time Constraints Nature of Tasks History and Norms Needs Salespeople Other People Leadership Skills Anticipation Diagnostic Selection Communication Influence Strategy Communications Mechanisms Power Sales Manager Goals & Objectives Individual Organizational Sales Manager’s Effectiveness 6

Power and Leadership Five types of power which may be present in interpersonal relationships: 1 Expert Power 2 Referent Power 3 Legitimate Power 4 Reward Power 5 Coercive Power 7

Situational Factors Trait Approach – identify traits of an effective leader Behavior Approach – identify behaviors associated with effective leadership Contingency Approach – leadership style is contingent upon situation 8

Needs and Wants of Salespeople Important when coercive power is not being utilized Realize all needs and wants cannot be met Not all leadership directives need to be based on needs and wants Consider each salesperson as a unique individual 9

Goals and Objectives Leadership is easier when personal goals and objectives of the salespeople are consistent with those of the organization. Sales managers strive to seek balance and consistency between organizational goals and their salespeople’s goals. 10

Leadership Skills Anticipating and Seeking Feedback Diagnostic Selection and Matching Communication 11

Communication Skills: Influence Strategies Threats (coercive power) Promises (reward power) Persuasion (expert or referent power) Relationships (referent or legitimate power) Manipulation 12

Coaching The continuous development of salespeople through supervisory feedback and role modeling. Suggestions for affective coaching include: Take a we approach Address only one or two problems at a time Don’t focus on criticizing poor performance, reinforce good performance Foster involvement Recognize differences in salespeople and coach accordingly Coordinate coaching with more formal sales training Encourage continual growth and improvement Insist salespeople evaluate themselves Obtain agreement with respect to punishments and rewards Keep good records 14

Planning and Conducting Integrative Meetings Keep technical presentations succinct Use visual aids and breakout discussion groups Keep salespeople informed of corporate strategy and their role in it Minimize operations review

Planning and Conducting Integrative Meetings Set a humane schedule . . . allow time for sharing and adequate breaks Set and communicate the agenda Ask for input from the salespeople Generate excitement with contests and other rewards

Approaches to Management Ethics Immoral Management Intentional and consistent management activity conflicting with what is moral (ethical). Exploits opportunities for corporate gain. Cut corners when it appears useful. Seeks profitability and organizational success at any price. Selfish. Management cares only about its or the company’s gain.

Approaches to Management Ethics Amoral Management Management activity that is neither consistently moral or immoral . . . Decisions lie outside the sphere to which moral judgments apply. Give managers free rein. Personal ethics may apply but only if managers choose. Respond to legal mandates if caught and required to do so. Seeks profitability. Other goals are not considered. Well-Intentioned but selfish in the sense that impact on others is not considered.

Approaches to Management Ethics Moral Management Management activity conforms to a standard of ethical or moral behavior. Live by sound ethical standards. Assume leadership position when ethical dilemmas arise. Enlightened self-interest. Seeks profitability within the confines of legal obedience and ethical standards Management wants to succeed but only within the confines of sound ethical precepts.

Meeting Ethical and Moral Responsibilities Sales managers should be aware of three particularly relevant types of unethical acts: Nonrole Role Failure Role Distortion.

Meeting Ethical and Moral Responsibilities Nonrole Against the firm Expense account cheating Embezzlement Stealing supplies Type Direct Effect Examples Role Failure Superficial performance appraisal Not confronting expense account cheating Palming off a poor performer with inflated praise

Meeting Ethical and Moral Responsibilities Type Direct Effect Examples Bribery Price fixing Manipulation of suppliers Role Distortion For the firm

Problems in Leadership Conflicts of Interest Chemical Abuse and Dependency Problem Salespeople: A Disruptive Influence Lone Wolf Corporate Citizens Institutional Stars Apathetics Termination of Employment Sexual Harassment 15