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Sales Management Sales Management Leadership Module Seven
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Some leaders… use conventional and unconventional tactics to lead salespeople. They offer substantial incentive-based pay and promotion opportunities. In addition, they have 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 their salespeople. Action
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The results? During their first seven years as sales leader, revenues have increased more than 750 percent. In 2000, they had a record-breaking year for e-business with revenues of $1.1 billion. Result
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The Difference Between Leadership and Supervision Leadership: The use of personalized influence with other people to influence other people’s behaviour toward the accomplishment or attainment of specific goals and objectives Supervision: (Tactical, day-to-day leadership) The day-to-day control of the salesforce under routine operating conditions
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COMPONENTS OF LEADERSHIP MATURITY: SELFLESS - COMPANY (AND STAFF) FIRST a) PERSONALITY TRAITS SELF-CONFIDENCE: BELIEVE IN THEMSELVES; DEMONSTRATE CONFIDENCE, SET AN EXAMPLE. INITIATIVE: SELF-STARTER, TAKE CHARGE, ENJOYS A CHALLENGE, WELCOMES CHANGE. ENERGY: HIGH ENERGY LEVEL CREATIVITY: NEED CREATIVITY & IMAGINATION TO ADDRESS CHALLENGE & CHANGE OPPORTUNITIES.
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COMPONENTS OF LEADERSHIP ROLE MODELING: ACTION SPEAKS LOUDER THAN WORDS / ‘WALK THE WALK’ROLE MODELING: ACTION SPEAKS LOUDER THAN WORDS / ‘WALK THE WALK’ MANAGERIAL SKILLS / BEHAVIOURS PROBLEM SOLVING: IDENTIFY ISSUE & CAUSE THEN FORMULATE & ENSURE IMPLEMENTATION OF A SOLUTIONPROBLEM SOLVING: IDENTIFY ISSUE & CAUSE THEN FORMULATE & ENSURE IMPLEMENTATION OF A SOLUTION INTERPERSONAL SKILLS: DEMONSTRATES GENUINE & ACCURATE EMPATHY, CONSISTENT BOUNDARIES, FOSTERS GOOD WORKING (BUSINESS) BASED RELATIONSHIPSINTERPERSONAL SKILLS: DEMONSTRATES GENUINE & ACCURATE EMPATHY, CONSISTENT BOUNDARIES, FOSTERS GOOD WORKING (BUSINESS) BASED RELATIONSHIPS COMMUNICATION SKILLS: CONCISE, CLEAR, ACCURATE, TIMELY & CONTEXTUALLY APPROPRIATE.COMMUNICATION SKILLS: CONCISE, CLEAR, ACCURATE, TIMELY & CONTEXTUALLY APPROPRIATE. PERSUASION SKILLS: BASED ON PERCEAVED IMAGE AND MUTUAL (RESPECT & BELIEF)PERSUASION SKILLS: BASED ON PERCEAVED IMAGE AND MUTUAL (RESPECT & BELIEF)
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LEADERSHIP STYLES A CONTINUUM FROM TASK ORIENTATION TO RELATIONSHIP BASED
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TASK-ORIENTED (PRIMARILY UNIDIRECTIONAL COMMUNICATION) GETTING THE JOB DONE UTILIZES TASK SPECIFIC DIRECTIONAL COMMUNICATION HOW, WHEN, WHERE, WHAT.
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RELATIONSHIP ORIENTED DEPENDENT ON: PERSONAL RELATIONSHIPS, PERSONAL POWER & EXPERTISE (TWO-WAY COMMUNICATION) FOCUS IS ON YOUR PEOPLE, THEIR: WELFARE, INPUT, FEELINGS PROVIDE COACHING, MENTORING, EMOTIONAL SUPPORT, PSYCHOLOGICAL STROKING’ & PERSONAL ASSISTANCE TO ACHIEVE THE GOALSPROVIDE COACHING, MENTORING, EMOTIONAL SUPPORT, PSYCHOLOGICAL STROKING’ & PERSONAL ASSISTANCE TO ACHIEVE THE GOALS
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SITUATIONAL LEADERSHIP TASK & RELATIONSHIP ~ USE WITH ACHIEVERS ‘LET THEM DO THEIR JOB’ MODIFY LEADERSHIP STYLE TO SUIT THE TASK / INDIVIDUAL TASK & RELATIONSHIP ~ INEXPERIENCED STAFF TASK & RELATIONSHIP ~ MAJOR UNDERTAKING REQUIRING GUIDANCE & MOTIVATION TASK & RELATIONSHIP ~ MOTIVATE SPECIFIC BEHAVIOUR
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CHARISMATIC LEADERSHIP ROLE MODEL: ‘WALK THE WALK’ WHILE SINGING THE COMPANY SONGROLE MODEL: ‘WALK THE WALK’ WHILE SINGING THE COMPANY SONG (TRANSFORMATIONAL LEADERSHIP ) ARTICULATE A VISION (VISIONARY) ABILITY TO INSPIRE A COMMON AND COMPELLING VISIONARTICULATE A VISION (VISIONARY) ABILITY TO INSPIRE A COMMON AND COMPELLING VISION CHALLENGE THE STATUS QUO INSPIRE / CHALLENGE ACHIEVERS TO SURPASS THEIR PERSONAL EXPECTATIONS (YOU CAN DO IT!)CHALLENGE THE STATUS QUO INSPIRE / CHALLENGE ACHIEVERS TO SURPASS THEIR PERSONAL EXPECTATIONS (YOU CAN DO IT!)
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1.An ability to anticipate problems 2.An ability to seeking and obtain substantive feedback 3.An ability to diagnose problems and opportunities Leadership Skills The basics:
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An ability to select an appropriate leadership behavior and match it to the situationAn ability to select an appropriate leadership behavior and match it to the situation An ability to communicate effectivelyAn ability to communicate effectively Leadership Skills The art:
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A Leader’s tools: 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
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Some Key leadership tasks: 1.Role Modeling 2.Coaching 3.Meetings 4.Corrective Measures
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#1 Role Modeling ‘Day-in-day out’ you are the visible embodiment of what the expectation is: You are the companyYou are the company You are the authourity figureYou are the authourity figure You are the teacherYou are the teacher You are the coachYou are the coach You are the problem solverYou are the problem solver Etc.Etc.
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1.Take a we approach 2.Address only one or two problems at a time 3.Don’t focus on criticizing poor performance, reinforce good performance 4.Foster involvement 5.Recognize differences in salespeople and coach accordingly 6.Coordinate coaching with more formal sales training 7.Encourage continual growth and improvement 8.Insist salespeople evaluate themselves 9.Obtain agreement with respect to punishments and rewards 10.Keep good records #2 Coaching The continuous development of salespeople through feedback and role modeling.
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#3 Meetings Keep presentations succinctKeep presentations succinct Set and communicate the agendaSet and communicate the agenda Generate excitement with contests and other rewards Ask for input!! Use visual aids and breakout discussion groups Positive reinforcement
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The Challenges of Leadership a.Morals & Ethics b.Poor Performance c.Substance Abuse d.Problem Salespeople: e.Termination of Employment f.Sexual Harassment
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How to shorten your career in Sales… –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. a. (Immoral Management)
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How to shorten your career in Sales… –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. a. (Amoral Management)
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Doin’ It Right! –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. Moral Management
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a. Meeting Ethical and Moral Responsibilities Sales managers should be aware of three particularly relevant types of unethical acts: 1.Non role 2.Role Failure 3.Role Distortion.
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Even if you won’t get caught… you are responsible. Non roleAgainst 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
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Even if you won’t get caught… you are responsible. TypeDirect EffectExamples Role Distortion For the firm Bribery Price fixing Manipulation of suppliers
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POOR PERFORMANCE DOCUMENT, DOCUMENT & DOCUMENT SOME MORE! IMMEDIATE & CONSTRUCTIVE ACTION BE SPECIFIC! Fixing is cheaper than hiring!
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Poor Performance GET AGREEMENT TO THE PLAN GET AGREEMENT TO THE PLAN Format For Handling STATE THE PROBLEM SECURE SR AGREEMENT SECURE SR AGREEMENT LISTEN TO SR’s ASSESSMENT OF THE PROBLEM LISTEN TO SR’s ASSESSMENT OF THE PROBLEM CONSIDER RELEVANCE OF EXTENUATING CIRCUMSTANCES CONSIDER RELEVANCE OF EXTENUATING CIRCUMSTANCES DEVELOP AN ACTION PLAN DEVELOP AN ACTION PLAN
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SUBSTANCE ABUSE TEST NEW EMPLOYEES (IF YOUR BIGGEST CLIENT IS AN ALCOHOLIC…) SOME JOB FUNCTIONS CAN ACTUALLY FACILITATE THE GROWTH OF ADDICTIVE BEHAVIOURS DETECTION ATYPICAL BEHAVIOURS SPREEECH SPREEECH (SLURRED SPEECH) MISSED APPOINTMENTS ODOR ABSENTEEISM
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HANDLING THE ABUSE Treatment is situation ally specific. (SEE: DOCUMENT, DOCUMENT..) ADDRESS IMPACT ON WORK BEHAVIOURS NOT THE ABUSE ITSELF. GET ADMISSION OF A PROBLEM
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Problem Salespeople ? Grandstand Jordan A Disruptive Influence? Fearful Kev Worried Wanda Perfectionist Pam Disorganized Aaron Excited Erik Perfectionist Sim
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EXPENSE ACCOUNTS WRITTEN EXPLICIT POLICIES REQUIREDWRITTEN EXPLICIT POLICIES REQUIRED ENSURE THERE ARE NO MISUNDERSTANDINGSENSURE THERE ARE NO MISUNDERSTANDINGS TREATMENT IS SITUATIONALLY SPECIFIC.TREATMENT IS SITUATIONALLY SPECIFIC. $ $ (SEE DOCUMENT, DOCUMENT..)
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UNETHICAL BEHAVIOUR MISREPRESENTATION OF COMPANY (& / or ITS POLICIES) (SEE DOCUMENT, DOCUMENT..) OVER SELLING
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Termination of Employment (SEE DOCUMENT, DOCUMENT..) When the decision is made, remember… This is not a discussion process but an informational meeting FOLLOW POLICIES EXACTLY ADVISE & SEEK COUNSEL FROM YOUR BOSS & DHR
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HARASSMENT (SEE DOCUMENT, DOCUMENT..) MANAGEMENT NOT IMMUNE WHEN SPEAKING TO AN EMPLOYEE, NEVER CLOSE YOUR OFFICE DOOR. WRITTEN EXPLICIT POLICIES ARE REQUIRED BE VISIBLY PROACTIVEBE VISIBLY PROACTIVE CONTROL THE ENVIRONMENTCONTROL THE ENVIRONMENT ZERO TOLERANCE
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HARASSMENT THE PERCEPTION IS GUILTY UNTIL PROVEN INNOCENT AN EMPLOYEE ONLY HAS TO “FEEL” HARASSED “FEEL” HARASSED TO MAKE AN ALLEGATION.
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THE FORGOTTEN RULE AS MANAGER, YOU CONTROL AND DETERMINE THE EMPLOYEES’ WORK ENVIRONMENT.
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