1. McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 11 Leadership of a Sales Force The first thing that you have to do to turn around a team is to envision the process. Bill Parcells NFL coach

2. 11-2 (Fig. 11-1) Leadership Effectiveness Personal characteristics Managerial skills Leadership effectiveness Leadership style (the leader behaviors) S I T U A T I O N

3. 11-3 Leadership Characteristics and Skills  Personal Characteristics –Self-Confidence –Initiative –Energy –Creativity –Maturity  Managerial Skills –Problem-solving skills –Interpersonal skills –Communication skills –Persuasive skills

4. 11-4 Two Leadership Styles  Transactional Leadership –Those supervisory activities regarding the day-to-day operation and control of the sales force.  Clarifying rules  Providing verbal feedback  Transformational Leadership –Transforms the basic values, beliefs, and attitudes of followers such that they are willing to perform at levels above and beyond expectations.  Articulating a vision  Fostering group goals  Role modeling  Providing individualized support

5. 11-5 Figure 11-2 Critical Leader Behaviors for Different Situations Transactional Leader Behaviors Transformational Leader Behaviors Informing Basic Rules Verbal Feedback Articulat -ing a Vision Fostering Group Goals Providing a Role Model Individual- ized Support Newly hired, inexperienced rep Veteran rep; low performance due to burnout Unstable situation; crisis environment High-performing rep; like autonomy

6. 11-6 Tools and Techniques of Leadership  Personal contact  Sales reports  Telecommunications –Better customer and industry information –Selling assistance –Sales support –Reporting responsibilities –Communication  Printed aids  Meetings  Indirect supervisory aids –Compensation plans –Territories –Quotas –Expense accounts –Sales analysis procedures

7. 11-7 Outcomes of Effective Leadership Well-Trained SalespeopleWell-Trained Salespeople Trust among SalespeopleTrust among Salespeople Citizenship BehaviorsCitizenship Behaviors Voluntary behaviors important to the success of the firm (e.g., when one rep gives encouragement to a fellow, struggling rep)Voluntary behaviors important to the success of the firm (e.g., when one rep gives encouragement to a fellow, struggling rep) Better PerformanceBetter Performance Sales Force MoraleSales Force Morale A sense of common purpose and a belief among members that group goals can be attained.A sense of common purpose and a belief among members that group goals can be attained.

8. 11-8 Job Satisfaction Sometimes called individual moraleSometimes called individual morale An individual salesperson’s emotional and evaluative feelings toward various dimensions of the job, including feelings toward…An individual salesperson’s emotional and evaluative feelings toward various dimensions of the job, including feelings toward… PayPay PromotionsPromotions Job SecurityJob Security BenefitsBenefits Co-workersCo-workers The Sales Manager (or Leader)The Sales Manager (or Leader) Individual salespeople must first each be satisfied with his or her job in order for high group morale to emerge.Individual salespeople must first each be satisfied with his or her job in order for high group morale to emerge.

9. 11-9 Problems Encountered in Leadership  Poor performance  Substance abuse  Cheating on expense accounts  Engaging in unethical behavior  Third-party sexual harassment

10. 11-10 Third-party Sexual Harassment  Harassment by someone outside the firm  Common in sales –When the customer harasses the salesperson  Sales managers must be proactive in creating an environment that does not tolerate harassment –The selling firm is liable if the sales manager should have known about it