1. Sales Management Leadership and Supervision
Module Seven
Sales Management Leadership and Supervision

2. 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

3. The Importance of Leadership An Expert’s Viewpoint:
Result
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.

4. What is the Difference Between Leadership and Supervision?
The use of influence with other people through communications processes to (WANT TO) attain specific goals and objectives
Supervision:
The day-to-day control of the salesforce under routine operating conditions 2

5. 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 4

6. 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 4

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

8. Leadership Exchange (LMX)
Focus on sales person
Reciprocal trust
Quality relationships
Adaptive selling behaviors

9. Transformational Leadership
Charismatic
Inspirational
Personalized attention

10. Behavioral Self-Management (BSM)
Self-imposed
Planning
Behavior
Evaluation
Rewards

11. 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

12. Power and Leadership
Five types of power which may be present in interpersonal relationships: 1
Expert Power – valuable knowledge 2
Referent Power- attractiveness 3
Legitimate Power – designated role 4
Reward Power – ability to reward 5
Coercive Power – ability to punish 7

13. “Carrot and Stick” or Why Expert and Referent is More Effective
Salesperson as a “Mule” Vs
Salesperson as a “Partner”

14. 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

15. 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

16. Leadership Skills The ability to anticipate problems
The ability to seeking and obtain substantive feedback
The ability to diagnose problems and opportunities 11

17. Leadership Skills
The ability to select an appropriate leadership behavior and match it to the situation (Situational Factors)
The ability to communicate effectively
Technology Skills 11

18. Communication Skills: Influence Strategies
Threats (coercive power)
Promises (reward power)
Persuasion (expert or referent power)
Relationships (referent or legitimate power)
Manipulation
Use technology for efficient communications 12

19. Technology Skills
CRM
Excel
Forecasting models
PDA

20. Coaching
The continuous development of salespeople through supervisory feedback and role modeling. Most effective when guidance and feedback are provided as close as possible to the occurrence of a related event.
Keys to successful coaching:
Trust and respect.
How and why, not right and wrong.

21. Coaching 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

22. 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

23. 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

24. 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.

25. 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.

26. 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.

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

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

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

30. 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

31. Romano Pitesti
Case Study on page 354