Lecture Dalrymple''s sales management: Concepts and cases – Chapter 9: Leadership

After you have mastered the material in this chapter, you will be able to: Understand the full meaning of leadership and see the leadership potential in yourself and others, recognize and facilitate the six fundamental transformations in today’s organizations and leaders, identify the primary reasons for leadership derailment and the new paradigm skills that can help you avoid it,...

Part V SALES FORCE ACTIVITIES Chapter 9: Leadership hing c a Co Bu in ild g we g in c nsa Tra m n Ma Effective Sales Management Leadership Intuition Tr an sf o tion a Te Us nd i ng ing s n rst a Me et Visio de al Sa les -un Po lue ent werm ce Empo en ru ng Co Va Se lf r Leadership Overview ge han C ng agi Situa rm at io na l t i ona l Leading Versus Managing Managers Leaders Administer Innovate Maintain Develop Control Inspire Ask How and When Ask What and Why Short­term View Long­term View Accept the Status Quo Challenge the Status Quo Do Things Right Do the Right Things Personal vs. Organizational Needs Personal Goals Organizational Goals Want a feeling of power Control sales force costs Seek personal pleasure Meet sales & profit objectives Desire job security Meet customer retention goals Meet new challenges Meet administrative requirements High pay Increased “share of the customer” Leadership Skills Intuition Value Congruence Empowerment Leadership Leadership skills skills Self­understanding Vision “HAVING A LITTLE CHAT” “Jennifer, I thought we’d have a little chat. I don’t get the pleasure  of just talking with you very often. I guess we just tend to spend  most of our time on our problems. Good people like you tend to be  taken for granted. This is your sixth year with us, right? I wanted to  let you know that it has been a pleasure working with you over that  time. Incidentally, I was a little surprised to hear that some of your  customer reports have been incomplete. Some of the clerks have  even had to call some of your people in order to fill in the missing  information “I told them that you’re probably so busy out there getting us so  much business that you’re tired when it comes to the reports.  But  it would save us time and money if you could be more complete.  I’m sure you’ll take better care of this in the future. That’s what  gives me so much pleasure in dealing with pros like you. See a  problem.  Fix it.  No big deal.  Anyway, I know you’ll take care of it.  “CUSTOMER ABUSE” One day in the office, you overhear one of your salespeople being  loudly abusive to a customer over the phone.  Right after he slams  the phone down, you mention:  “That was a pretty heated exchange.   Sounds to me as if you lost it.” “Well, she’s a pain.  She’s always complaining about one thing or  the other, none of which is important and often not true.  On top of it  all, she’s rude.” “I thought you were pretty rough, telling her that if she doesn’t like  how her orders are handled, she can take her business elsewhere.”  “She won’t.” “That’s not the point.  We don’t get nasty with customers.  Next time  that happens, and you start getting hot, I want you to tell the  customer that you’ll look into the problem and get back to him.   Hang up. Cool down.  Find out what you need to know.  And then  call back.  Do you understand?  I don’t ever want to hear a  conversation like that again.” Sales Manager Power Expertise Power –The belief that a person has valuable knowledge or  skills in a given area.  –“I respect her knowledge and good judgment  because she is well trained.” Referent Power –Perceived attractiveness of one party to another –(i.e., friendship, perceived similarity, etc.) Legitimate Power –The designated right to the leader Sales Manager Power Reward Power –Ability for the manager to reward the other  person for a designated action Coercive Power –Belief that one party can remove rewards and  provide punishment to affect behavior •Leads to compliance due to fear of punishment Which power biases are in evidence in the following  statements from a sales manager to a salesperson?  “If you come through with the Holiday Inn account, I guarantee you  will be the next person promoted.”  “Don’t ask me why ­­ just do it, please.”  “You have always been one of my favorites, and I am depending  on you to hit it big in the new territory.  As a personal favor, will you  accept the transfer?”  “There are some logistics of the situation that will not allow me to  accept your proposal.  I will be glad to lay out the details if you  wish.”  “If you don’t improve your sales volume by the end of the year,  your friends are going to be asking you how you liked being a  sales rep. for us.” Effectiveness in Selling New Ideas  or Programs Are the Following Statements True or False? (Continued) It's usually better to hold a meeting to address the  entire sales force about a change that will affect them You should inform your sales force as far in advance  as possible about changes that will affect them.  When you propose a program or an idea, you are  unlikely to encounter resistance except on the most  important issues involved.   COACHING Situation Prior to  Sales Call Important Points Who is being called on? What happened last time? Objective of call? Objections may arise? How to handle objections? Who are key players? Developmental points last call? COACHING Situation Important Points During the  sales call Let salesperson control the call Answer necessary questions briefly After the  sales call Ask for self­evaluations Reinforce positive Suggest effective responses Keep records Additional Suggestions for  Coaching Salespeople Instead of criticizing, tell salespeople what you like about  their performance Help salespeople improve by giving them “how to”  advice Insist that salespeople evaluate themselves in order to  develop their evaluative abilities regarding their own  work habits and performance Ask questions to ensure the salesperson is actively  involved Additional Suggestions for  Coaching Salespeople Make the most of resources that are available to you, such  as special training materials and so on An agreement between you and the salesperson should be  arrived at regarding corrective actions to be taken Keep records of specific standards of performance,  including how performance will be measured and by what  date.   The salesperson should be shown these records when  they are written to avoid any misunderstandings Factors Affecting Sales Team  Effectiveness Individual Team  Individual Team  Members Members Buying Center Buying Center Relationships Relationships Intra­Company  Intra­Company  Relationships Relationships Company Company Strategy Strategy Market  Market  Environment Environment Sales Team  Sales Team  Effectiveness Effectiveness Sales Managers’ Rankings of the Causes of  Plateauing Among Salespeople No clear career path Mostly  Women Not managed adequately Bored 3 Burned out Economic needs met Discouraged with company 6 Overlooked for promotion Lack of ability Avoid risk of management job 10 Reluctance to be transferred 10 10 Overall Commission  Only “Hot Shot” When asked the question, “Are you a winner?” Hot Shot answers, “Well, how did you know?” When dealing with this type of personality it is best to keep a cool head Although she is a top salesperson, meeting or beating quotas, she is clearly a victim of tunnel vision High productivity is a great asset to have in an employee, but she believes that this asset alone is reason for a managerial position Hot Shot has heard an incorrect rumor that a district sales manager position is opening and believes that she deserves the job She shows no tact in letting everyone know her feelings History has shown that although she is an excellent salesperson, she is quite a loner In your opinion she isn’t ready for a job with the responsibilities of a district sales manager You have a reputation of being fair and rewarding outstanding achievements “Hot Shot” There is not need to change your style now, but you have just received a letter from Hot Shot She is very direct and states, “I have worked long and hard for this company and have always been the top salesperson I have no complaints at all about salary, or the commission and bonus plans I want you to recognize that I feel I am totally ready for a sales manager’s job, the next one that opens up It is important for me to tell you that if this company cannot use my talents, I have only one choice to make What say?” The letter enrages you but you realize that you cannot fire her or give her a job that does not even exist In fact it is your job to keep her selfesteem and energy as a salesperson intact since your job depends on the productivity of your sales force Your boss wants to know exactly how you are going to handle this one DECISION OPTIONS “Hot Shot” Make a sincere promise to Hot Shot that she will get the  next manager's spot that opens To give Hot Shot more recognition you send her and her  husband to the national sales convention with the  company picking up the tab Do not let the other salespeople think you give into  ultimatums.  You consider the letter as a letter of  resignation and let Hot Shot go Make special managerial training available to the sales  group.  Tell Hot Shot that when an opening becomes  available her excellent sales record along with the  techniques learned in the course will place her among  the top applicants.  PROS & CONS  “Hot Shot” Hot Shot has every reason to take your promise seriously a  problem that arises if at the time a position opens you think  another member of the sales team is better suited for the  job Some will consider this “industry bribery”.  Hot Shot could  construe this to be an insult since she clearly stated that  she was happy with the money and benefits she was  already receiving PROS & CONS  “Hot Shot” A good sales manager is as hard to find if not harder to  find than a good sales representative.  If you allow Hot  Shot to leave, one of your competitors will doubtless hire  her immediately, leaving you with a stronger competitor  and a weaker sales team Probably the best choice.  You explain to Hot Shot that the  criterions used to choose the next sales manager will  include:  sales record, group interaction, and effort put  forth in seminars, workshops, home study, and night  courses Termination Suggestions  Establish a paper trail  Reasons for termination should be specifically  spelled out  When possible, offer an attractive severance  package and outplacement services  The firing session should be brief  When should you fire an employee, at the  beginning or the end of the week? Table 9­2: Women in Sales: Percentages by Industry Industry Percent of Women In Sales Force Banking Business services Chemicals 24.7                   30.3 9.1 Communications 34.7 Educational services 50.4 Electronics 19.6 Food products 28.5 Health services 45.1 Insurance 27.4 Miscellaneous manufacturing 17.6 Office equipment 24.1 Printing/publishing 38.9 Retail 20.0 Rubber/plastics 17.7 Transportation equipment 23.9 Wholesale (consumer) 19.5 Harassment Suggestions Conduct yourself professionally Dress appropriately Be cautious when drinking at business functions Don’t listen to sob stories Avoid being alone when possible Use independent transportation Trust your instincts ... Transactional? ?Leadership Transformation  Leadership Transactional? ?Leadership Appeal to higher ideals? ?and? ?moral  values Appeal to self interest “Transform” people by increasing  awareness? ?and? ?acceptance of ... Longer term development  and? ?results Emphasis of rewards Pay, promotion, etc Pride, self­esteem, etc Where change occurs Salesperson behavior Salesperson attitudes,  commitment, values Where ? ?leadership? ?? found Sales? ?manager’s ... behaviors Salesperson’s heart Four? ?Leadership? ?Styles Supportive Behavior High Low Supporting Selling Delegating Telling Directive Behavior High Leadership? ?Factors in? ?Sales? ?Management Sales? ?Manager