Sales Management - What's Involved? Part 1

What any individual Sales Manager actively does is conditioned by the size of their company, the products it sells and the way they are sold, the organisation of functions within it, and perhaps their own special ability. They may carry most or all of the responsibilities which would be those of a Marketing Manager, if this position does not exist within their company.

Essentially, however, the task of the Sales Manager is to produce revenue for their company through the operations of the sales staff for whom they are responsible. The size of this revenue, and the profit (however defined) which it should show, are usually predetermined in order to achieve the aims of company policy. The objectives which they set for the various activities which are involved in carrying out this task should therefore be derived from, and be compatible with, company objectives, such as return on capital employed, cash flow, market position, growth.

CHARACTERISTICS OF THE SALES MANAGER'S JOB

o Many of the factors which affect success are not within their control (such as competitors and government legislation)

o They are nevertheless required to forecast future sales and to plan their operation accordingly, using their judgement and experience.

o They must depend on other departments for the design, production, quality and delivery of products for which they obtain orders, just as those departments must depend on them to get these orders.

o The sales staff that they rely on to produce the results they have planned for, are for most of the time working alone, not under their immediate control.

o They are engaged in a constant struggle to obtain increased sales against competitors with the same aim.

Although the basic functions and skills of management, discussed later, apply to their job, it is clear that such qualities as creativeness, flexibility, tenacity, and ability to deal effectively with people, will be particularly important. At the same time the ability to analyse market situations and form sound judgements on them, is equally necessary but may not sit easily with the kind of qualities mentioned.

THE SELLING ROLE

Since, like other managers, the Sales Manager depends on those who work for them to produce the results by which they are judged, consideration of their job can usefully continue by examining the nature and characteristics of industrial selling and, hence, of the salesperson's job.

Personal selling is only one of several possible ways of communicating with customers and potential customers but, particularly where industrial goods are concerned, is undoubtedly the most effective in terms of achieving the objective - influencing the decision to buy. It is also, even though selling costs may be a small percentage of revenue, expensive. Sales staff should therefore be treated as a scarce resource, to be used as effectively as possible.

Selling itself is a process of bringing persuasion to bear, to;

- Awaken awareness of a need or problem

- Establish that the need can be satisfied by a particular type of product

- Convince the prospective user that the salesperson's own product can offer a superior satisfaction.

The actual selling job for a particular product or company may embrace all three of these stages, the last two, or the last only, depending on the situation requirements.

- An innovatory product, hitherto unknown

- A product for which there are alternatives

- An established market in which the user can choose from a number of makes.

For economy of effort the salesperson's task (and perhaps the kind of person required) should be defined accordingly.

OTHER TASKS OF THE SALES STAFF

Although selling is the basic justification of the salesperson's existence and The Sales Manager's purpose in employing them, all sales staff have to spend part of their time doing other things (e.g. travelling and preparing reports). Sales staff are, however, often also required to:

- Provide technical information other than that strictly needed to make a sale

- Give some kind of after-sales service

- Conduct market research (going beyond the normal, essential supply of market intelligence about customers, competitors, etc)

- Check credit status of potential customers

It may or may not be that the salesperson is the best person to do such things as these. As, however, he is a scarce resource, expensive, and employed to obtain orders, the cost-effectiveness of using them for such purposes compared with other means should be examined - remembering also that there may be some loss of sales to take into account (the "opportunity cost")

THE SALES MANAGER'S RESPONSIBILITY FOR SALES STAFF

Some characteristics common to most forms of selling are:

- Smaller sales forces in industrial selling than consumer goods selling, usually dealing with a very much smaller number of clients

- Responsibility and power to make decisions vested in the

individual salesperson

- The need often to deal with a number of people in the customer company in order to achieve buying decisions.

These characteristics must influence the nature of the Sales Manager's responsibility for their sales staff and the forms it takes.

One effect may well be that a good deal of the market analysis and planning which is part of the Sales Manager's responsibility, is delegated to sales staff who, to this extent, are the managers of their own territory. If this is so, the need for clear objectives and adequate overall control is stronger than if sales staff were more closely directed. This also emphasises the importance of good communication and information, flowing in both directions.

The Sales Manager's general responsibilities for his sales staff may be summarised:

o Planning

He is given resources, human and financial, and has to plan to use

those in the most effective combination to achieve predetermined

results. They can do this only by knowing his staff and understanding

the nature and behaviour of costs.

o Organising

The way in which he develops his sales staff - whether on a general or territorial basis, or. specialising in types of product or by class of customer or end user - should derive from a study of the market, taking into account also the qualifications and the experience of the sales staff.

o Training

As products, markets and objectives tend to be continually developing

and changing, training also should be a continuous process. With small

sales forces, formal training presents difficulties, but the need to always

seek a higher standard of performance remains.

o Control

This involves setting targets and standards for measurement of performance, and taking appropriate action when they are not met.

o Motivation

Motivation implies two effects in the sales staff: the right attitude to their job and willingness to play their part to the best of their ability in achieving aims set by their manager. It results partly from training, partly from incentives (financial and other), and perhaps most of all from the leadership given by their manager. Regular appraisal of performance and attitudes by discussion with the sales force, and observation of their work, are important for this purpose.

RECRUITMENT OF SALES STAFF

Selecting a person who will become a successful member of the sales force for any particular company is very difficult, whether they are appointed from within the company or are recruited from outside. It is often made more difficult than it need be by the lack of an adequate specification of the job the sales person is to do and, derived from this, a specification of the kind of person who might be likely to succeed. Such specifications introduce some objectivity into the selection process and provide some measures of comparability between candidates.

The importance of the sales person to their company, and the considerable investment made in them, justify a systematic approach to the ways in which, as a candidate, they are assessed and decisions are made about them. The validity of assumptions made about them at the time of appointment should be checked against subsequent performance, and the reasons for mistakes investigated.

The subjective element in selection will never be eliminated, and in at least one respect it is a valid criterion. The person chosen must "fit in" to the team comprising the Sales Manager and their sales force. If they do not do so, no matter how suitable their qualifications and experience may be, friction is likely to ensue.

THE NATURE OF MANAGEMENT

A Sales Manager may or may not be an outstanding sales person. The important thing is that he should be a good manager. This is their individual and unique contribution to their company.

The essentials of management are:

Measurement or assessment

Planning, which includes organising

Direction and control

Plans, and the direction and control of activities to put the plans into effect, depend on the collection and analysis of information, from which decisions are made.

The initial plans (say for 12 months, on which a budget will be based) results from analysis of the market and environmental factors (such as economic conditions) and from the assessment of the resources available to the manager. Control requires an input of information about performance which has to be measured against the standards set in the plans. Where there are discrepancies the manager must decide what to do about them.

The two basic requirements for good management (apart from personal qualities which make the manager an acceptable leader) are therefore:

Adequate information

Decisions which take account of the relevant information

Adequate information about markets is hard to get, and the cost of obtaining it may outweigh the advantages of having it. The Sales Manager is therefore often in the position of having to make decisions on the basis of incomplete information or assumptions. They must then rely to some extent on past experience and their own judgement of the probability that this or that will happen. The important thing in these circumstances it to record (preferably in writing) the assumptions that have been made so that, if subsequently information becomes available which falsifies these assumptions, some assessment can be made of consequences for plans based on them.

Copyright © 2006 Jonathan Farrington. All rights reserved

Jonathan Farrington is the Managing Partner of The jfa Group. To find out more about the author, read his latest articles, or to subscribe to his newsletter for dedicated sales professionals, visit =>http://www.jonathanfarrington.com You can also now visit Jonathan's Blog at =>http://www.thejfblogit.co.uk

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What's a Professional Sales Manager?

I was in the depths of a major depression. As a third year salesperson with a good company, I was doing well, and was on my way to becoming the top salesperson in the nation for that company. But business had slowed down a little, and I didn't have my usual number of proposals out for consideration. So, I wasn't as busy as usual. As my activity slowed, I began to worry. My doubts increased to the point where I had thought myself into a real depression, stuck on the question of "What's the use of trying?" The more negative my thoughts became, the less energy I had. My lack of energy led to fewer and fewer sales calls, which of course, led to less activity. And that led to more depressing thoughts. I was caught in a powerful downward spiral.

It was then that I caught a glimpse of what a professional sales manager is like.

Ned was my boss -- a sales manager of the highest caliber. He could see the symptoms of my sour state spilling over into everything I was doing. So Ned intervened. He arranged to have lunch with me, and listened patiently as I rambled on and on about my problems, my doubts, and my lack of activity. Finally, after I had dumped all my depression and negative thoughts on him, he looked me straight in the eye and said, with all the authority and resolve of someone who is absolutely sure of what they are saying, "Kahle, that's enough."

I was stunned. I was expecting empathy, an understanding shoulder to cry on. Instead, I got a simple, straightforward mandate. Ned knew me well enough to cut through all the fluff and come right to the heart of the matter. He said, "That's enough. That's enough feeling sorry for yourself. That's enough thinking all these negative thoughts. That's enough sitting back and not working as hard as you're used to. Stop it. You're better than all this. Stop it right now, today, and get your ..... back to work."

He saw my situation clearly. And he provided me the direction I needed. That conversation turned me around. I left my depression and negativity at that lunch table, and started back into my job with a renewed sense of the possible. A year later I was the number one salesperson in the nation for that company.

What made the difference in my performance was the skillful intervention of an astute and professional sales manager. He made the difference in my job performance, and that made a difference in my standing with that company. And that made a difference in my career. And that lead me to my current practice. It's entirely possible that I would not be doing what I do now, speaking and consulting with sales forces around the world, if it weren't for his timely intervention.

All of us have become what we are, at least in part, due to the impact other people have had on us. A professional sales manager is gifted with a rare and precious opportunity -- the opportunity to play a pivotal role in the lives of his/her charges. I so value the role that Ned played in my career, that the last paragraph on the "Acknowledgment" page of my first book reads, "Finally, I must make special, post-humus acknowledgement of the contribution made by Ned Shaheen, the best manager I ever worked for. It was Ned who, years ago, urged me to 'write the book...'"

So what does this have to do with being a "Professional Sales Manager?" During my 30 + years of sales experience and 16 years of experience as a sales consultant and sales trainer, I've encountered many sales managers. Some of have been good, many mediocre. But Ned was the best sales manager I ever met. He serves as a model for me. We can learn a number of lessons from him.

First, Ned knew the difference between the job of a salesperson and that of a sales manager. He had been a great salesperson -- like many sales managers around the world -- and had been promoted to sales manager. Yet he knew the jobs of sales manager and salesperson are completely different. A salesperson is responsible for building accounts and making sales. A sales manager, while ultimately responsible for the same results, understands that his/her job is to achieve those means through other people. A sales manager builds people, who in turn build the business. Salespeople focus on selling; sales managers focus on building salespeople.

As a sales person, I could comfortably take Ned into any account, secure in the knowledge that he wouldn't try to take over the presentation or usurp my relationship with the customer. I knew Ned was more concerned with me than he was about any one sale.

Ned knew that a salesperson was essentially a loaner, an individual who did most of his/her most important work by themselves, while a sales manager was a coach, whose only success derived from the success of his team. A sales manager's best work is always done, not with the customers, but with the people he/she supervises.

Ultimately, a sales manager is measured by the results achieved by his people. Sales, gross profits, market share, key product selling, -- all these typical measurements of sales performance are also one of the rulers by which a sales manager is measured.

So, an excellent sales manager, like a great soccer coach, is ultimately measured by his numbers. It doesn't matter how empathetic he is, nor how his players respect or like him, if year after year he produces a losing team. So it is with a sales manager. Ultimately, an excellent sales manager produces excellent numbers for his company.

In the five years that I worked for Ned, my own territory grew by $1 million a year, and the branch for which he was responsible grew from about $6 million to about $30 million.

Ned was excellent at one of the key competencies of the professional sales manager -- he had an eye for talent. He knew how to hire good people. After all, he hired me! Over the years, I watched him take his time, allowing a sales territory to go vacant for months, if necessary, while he waited for the right person to bubble up through his pipeline. Only one of his hires didn't work out -- which gave him an incredible winning percentage.

A professional sales manager understands the importance of making the right hire, is always recruiting in order to keep the pipeline of prospective salespeople full, and spares no expense to make sure the person he hires meets all the necessary criteria. When I was hired, I went through four interviews, and a full 10-hour day of tests with an industrial psychologist.

With all the time he took to make sure he was hiring the right person, Ned confided in me one day that, "It is more important to fire well then it is to hire well." He went on to explain that hiring sales people is an extremely difficult task, and that even the best sales managers fail at it frequently. Therefore, it was important to recognize your mistake quickly, and act decisively to fix it.

A professional sales manager, then, understands that when it is clear that a salesperson is not right for the job, he acts quickly, kindly, and decisively to terminate the individual, allowing both the individual and the company an opportunity to find a better match. Acting quickly to terminate a salesperson who isn't working out is both good business as well as good ethics. To allow a mediocre situation to fester to the detriment of the company, the salesperson, and the customers is to persist in a dishonesty.

Understanding that he works only through his sales people, and that he has the opportunity to make a great impact on his people, a professional sales manager makes it his business to know his people. Ned spent days with me in the field, talking not only about business, but also working at understanding the person I was as well. He'd arrange to meet me for breakfast or lunch regularly, even if he weren't spending the day with me. He wanted to get to know my wife as well, and paid close attention to her opinions. Several times over the five years we went to dinner as a foursome.

I could never stop in the office without being expected to sit in his office and talk about things. And, of course, there was the annual pig roast at his house, where all his salespeople and their families were invited to spend a fun day while the pig roasted over the spit. I was always a person to Ned, never just a "salesperson."

Because he took the time to get to know me, he was equipped with the knowledge of exactly how to best manage me. And he always saw the potential in me, and was ready to correct me when necessary. In the first year of my employment, I was earning the reputation among the inside customer support and purchasing people of being difficult and demanding. I was a hot-shot superstar who didn't take their feelings into consideration, and came into the office and dumped work on them. Ned let me know that my ways needed to change. At first, I didn't pay much attention. My numbers were too good for anybody to be concerned. So Ned let me know a second time that I was going to have to change. The situation was so acute, that the operations manager was lobbying to get me fired! Guided by his firm hand, I swallowed my pride, adopted a more humble attitude, and bought all the customer service reps a six pack of premium beer as a gift. My stock inside the company spring up dramatically, my ways corrected, and my future assured.

A professional sales manager guides and corrects his charges in order to help them achieve their potential.

Ned never stopped learning. He would often tell me about seminars he'd attended, books he'd read, or ideas he'd picked up by talking with other people. He knew that he never "knew it all." So it is with every professional sales manager. A real professional never stops learning. He understands that the world is changing rapidly, continually demanding new skills, new ideas, and new competencies from him. At the same time, his salespeople and their customers are changing also. So, he understands that he has a challenge to continuously grow and improve, to learn more and become btter at his job. Sales management isn't just a job, it's a challenge of a lifetime of improvement.

One more observation. Understanding that a professional sales manager is only successful when his charges are successful, an excellent sales manager supports, encourages and gives his sales people the credit.

It was the fourth year of my tenure, and Ned was lobbying for me to be awarded the "Salesperson of the year" award. It was given not only for sales performance, but for more subjective things - supporting the company's objectives and ethics, getting along with other people in the company, etc. The award was a great honor, and extremely difficult to win. Each sales manager nominated their favorite salesperson, and lobbied for one of their charges with the company's executives, who made the final choice.

The annual awards banquet was held at an exclusive country club, where the men wore tuxedos and the women formal evening gowns. When dinner was done, the speeches were finished and the lesser awards announced, it came time for the big one, the one I wanted.

The climate was tense and expectant. The entire room silent as the time approached for the announcement. Then, as the company president announced my name, it was Ned who thrust his fist in the air and shouted "YES!"

The photograph that hangs on my bedroom wall shows me shaking hands with the president and accepting the award. Look carefully and you'll see Ned standing proudly in the background.

There is a song that I find particularly moving. Perhaps you know the words made popular by Bette Midler. It goes like this,

"It must have been lonely there in my shadow...

Without the sun upon your face

I was the one with all the glory

You were the one with all the strength.

I can fly higher than an eagle

Because you are the wind beneath my wings."

Want to excel as a sales manger? Want to be a true professional? Look at your job as a unique opportunity to impact others, to select, correct, support and encourage your salespeople, to achieve your company's objectives by become a positive force in their lives. It's not a job, it's a mission. Be the wind beneath their wings.

And perhaps, one day, fifteen years from now, someone will write about you.

About Dave Kahle, The Growth Coach®:
Dave Kahle is a consultant and trainer who helps his clients increase their sales and improve their sales productivity. He speaks from real world experience, having been the number one salesperson in the country for two companies in two distinct industries. Dave has trained thousands of salespeople to be more successful in the Information Age economy. He's the author of over 500 articles, a monthly ezine, and four books. His latest is 10 Secrets of Time Management for Salespeople. He has a gift for creating powerful training events that get audiences thinking differently about sales.

His "Thinking About Sales" Ezine features content-filled motivating articles, practical tips for immediate improvements, useful resources and helpful tips to help increase sales. Join for NOTHING on-line at http://www.davekahle.com/mailinglist.htm

You can reach Dave at:
The DaCo Corporation
3736 West River Drive
Comstock Park, MI 49321
Phone: 800-331-1287 / 616-451-9377
Fax: 616-451-9412
info@davekahle.com
http://www.davekahle.com

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