Sales Management Leadership and Supervision Module Seven

The Importance of Leadership An Expert’s Viewpoint: Regan Lancaster, vice president of global sales at i2 Technologies uses conventional and unconventional tactics to lead his salespeople. He offers substantial incentive-based pay and promotion opportunities. In addition, he has dressed as a superhero and staged a mock battle against competitors, motorcycled through a brick wall, and repelled down a four story building to inspire his salespeople. Action

The Importance of Leadership An Expert’s Viewpoint: Lancaster’s leadership is paying dividends. During his first seven years at i2, revenues have increased more than 750 percent. In 2000, i2 had a record-breaking year for e-business with revenues of $1.1 billion. Result

What is the Difference Between Leadership and Supervision? Leadership: The use of influence with other people through communications processes to attain specific goals and objectives Supervision: The day-to-day control of the salesforce under routine operating conditions

Sales Force Socialization (Revisited) Task-Specific Self-Esteem: The extent to which an individual believes s/he can perform a task competently Organizational Commitment: The extent to which an individual feels a bond to the organization Formalization: The extent to which work activity is directed by rules, regulations, and commitment

Sales Force Socialization (Revisited) Work Alienation: An individual's psychological separation from the activities of the job Job Involvement: –An individual's psychological attachment to the job itself

Contemporary Views of Sales Leadership Leader-Member Exchange (LMX) ModelLeader-Member Exchange (LMX) Model Transformational LeadershipTransformational Leadership Behavioral Self-Management (BSM)Behavioral Self-Management (BSM)

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 Salespeople Other People Power Sales Manager Goals & Objectives Individual Organizational Sales Manager’s Leadership Effectiveness

Power and Leadership Five types of power which may be present in interpersonal relationships: Referent Power Legitimate Power Reward Power Coercive Power Expert Power

Trait ApproachTrait Approach Behavior ApproachBehavior Approach Contingency ApproachContingency Approach Situational Factors

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

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

The ability to anticipate problemsThe ability to anticipate problems The ability to seeking and obtain substantive feedbackThe ability to seeking and obtain substantive feedback The ability to diagnose problems and opportunitiesThe ability to diagnose problems and opportunities Leadership Skills

The ability to select an appropriate leadership behavior and match it to the situationThe ability to select an appropriate leadership behavior and match it to the situation The ability to communicate effectivelyThe ability to communicate effectively Leadership Skills

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

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

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

Planning and Conducting Integrative Meetings Set a humane schedule... allow time for sharing and adequate breaksSet a humane schedule... allow time for sharing and adequate breaks Set and communicate the agendaSet and communicate the agenda Ask for input from the salespeopleAsk for input from the salespeople Generate excitement with contests and other rewardsGenerate 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: 1.Nonrole 2.Role Failure 3.Role Distortion.

Meeting Ethical and Moral Responsibilities NonroleAgainst the firm Expense account cheating Embezzlement Stealing supplies TypeDirect EffectExamples Role Failure Against the firmSuperficial performance appraisal Not confronting expense account cheating Palming off a poor performer with inflated praise

Meeting Ethical and Moral Responsibilities TypeDirect EffectExamples Role Distortion For the firm Bribery Price fixing Manipulation of suppliers

Problems in Leadership Conflicts of InterestConflicts of Interest Chemical Abuse and DependencyChemical Abuse and Dependency Problem Salespeople: A Disruptive InfluenceProblem Salespeople: A Disruptive Influence –Lone Wolf –Corporate Citizens –Institutional Stars –Apathetics Termination of EmploymentTermination of Employment Sexual HarassmentSexual Harassment