Part V

SALES FORCE ACTIVITIES

Chapter 9:

Leadership
Leadership Overview

Effective
Sales Management
Leadership
Leading Versus Managing
Managers Leaders

Administer Innovate
Maintain Develop
Control Inspire
Ask How and When Ask What and Why
Short-term View Long-term 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 Empowerment

Leadership
Value
skills Vision
Congruence

Self-understanding
HAVING A LITTLE CHAT
Jennifer, I thought wed have a little chat. I dont 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 youre probably so busy out there getting us
so much business that youre tired when it comes to the
reports. But it would save us time and money if you could be
more complete. Im sure youll take better care of this in the
future. Thats what gives me so much pleasure in dealing with
pros like you. See a problem. Fix it. No big deal. Anyway, I
know youll 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, shes a pain. Shes always complaining about one thing or
the other, none of which is important and often not true. On top
of it all, shes rude.
I thought you were pretty rough, telling her that if she doesnt
like how her orders are handled, she can take her business
elsewhere.
She wont.
Thats not the point. We dont get nasty with customers. Next
time that happens, and you start getting hot, I want you to tell
the customer that youll 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 dont 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.

Dont 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 dont 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.
ASSERTIVNESS STEPS

Describe what you see going on:

We agreed youd make 16 calls per week. Youre
averaging 11.

Describe how you feel about what is going on:

Im puzzled, I cant tell from your reports what youre
doing. Im frustrated because each time we have this
talk you say you will live up to your end of the
agreement.
ASSERTIVNESS STEPS

Be precise in the change you want

One more time. I expect you to do what weve agreed
on: an average of 16 calls per week.

Mention the benefit of the change

to the other person
Living up to our agreement is the only way I can give
you a good appraisal. And you cant afford more than
one bad or mediocre appraisal
RESPONSIVNESS STEPS

What does the other person see going on?

Yes, I know Im not making the 16 calls.

How does the person feel about it?

Im upset. In fact, Im furious. Weve been having all
sorts of delivery and installation problems. It seems I
spend half my time on the phone with the plant
straightening out problems. Ive called you, but you
always seem tied up.
RESPONSIVNESS STEPS
What change does the other person
desire in you?
I dont call you unless the problem is very serious. So I
would like you to get back to me when Ive got a problem
that I think it serious enough to bother you with.

What are the benefits of the change

for the other person?
There are at least two. I produce better, because I have
time. And the company has better customer relations,
because I know that other people in the field have also
experienced my kind of problem.
CHANGE MANAGEMENT PROCESS

Assessment - examination of the customer environment

in which the company operates.
Redesign - initiatives based on three interrelated tasks:
Customer orientation - know customer buying process.
Sales strategy - deployment of sales resources and buyer
segmentation.
Selling processes - determined by the segment of buyer.
Measurement - determine the indicators of successful
change.
Sales Support Programs - programs to support and
reward implementation of the change program.
Implementation Strategies - pilot test programs.
How Change Oriented are You?

Instructions:
To find out to what degree you like change, use the
following scale in responding to the following eighteen
statements. There is no right or wrong answer. Rather, the
intent is to help you explore your attitudes toward change.

SA = Strongly Agree
A = Agree
? = Undecided
D = Disagree
SD = Strongly Disagree
How Change Oriented are You?

1. I try new ideas and new approaches

SA A ? D SD
to problems.
2. I take things or situations apart to
SA A ? D SD
find out how they work.
3. I can be counted on by my friends to
SA A ? D SD
find a new use for existing methods.
4. Among my friends, Im usually the
SA A ? D SD
first person to try out a new idea.
5. I demonstrate originality. SA A ? D SD
6. I like to work on a problem that has
SA A ? D SD
caused others great difficulty.
How Change Oriented are You?
7. I plan on developing contacts with
experts in my field located in SA A ? D SD
different companies or departments.
8. I plan on budgeting my time and
SA A ? D SD
money for the pursuit of novel ideas.
9. I make comments at meetings on
SA A ? D SD
new ways of doing things.
10. If my friends were asked, they
SA A ? D SD
would say Im a wit.
11. I seldom stick to the rules or follow
SA A ? D SD
protocol.
12. I discourage formal meetings to
SA A ? D SD
discuss things.
 How Change Oriented are You?
13. I usually support a friends suggestion
SA A ? D SD
on new ways to do things.
14. I probably will not turn down
SA A ? D SD
ambiguous job assignments.
15. People who depart from the accepted
organizational routine should not be SA A ? D SD
punished.
16. I hope to be know for the quantity of
my work rather than the quality of my SA A ? D SD
work when starting a new project.
17. I must be able to find enough variety of
SA A ? D SD
experience on my job or I will leave it.
18. I am going to leave a job that doesnt
SA A ? D SD
challenge me.
How Change Oriented are You?

Scoring:
Give yourself the following points for each circled response.
SA = 5 points
A = 4 points
? = 3 points
D = 2 points
SD = 1 point

Interpretation:
Total your scores for all responses. The higher the score, the
more willing you are to be innovative and welcome change.
A score of 72 or greater is high; a score of 45 or less is low.
Innovative people like to create change; non-innovators
have a tendency to maintain status quo.
Transformational vs.
Transactional Leadership
Transformation Transactional
Leadership Leadership

Appeal to higher ideals and moral Appeal to self interest

values

Transform people by increasing Emphasizing fairness by relying on

awareness and acceptance of rewards and punishment to
organizations goals maintain control

Creates a compelling vision for the Emphasizes day-to-day operations

organization
Transformational Vs. Transactional
Leadership
Attributes Transactional Transformational
Sales managers source Rank, position Character, competence
of power
Manager supervision Important Less important

Coaching emphasis Evaluation of results Development of

salesperson skills
Salesperson reaction Compliance Commitment

Time frame Short term results Longer term development

and results
Emphasis of rewards Pay, promotion, etc. Pride, self-esteem, etc.

Where change occurs Salesperson behavior Salesperson attitudes,

commitment, values
Where leadership found Sales managers behaviors Salespersons heart
Four Leadership Styles
High

Supportive Behavior Supporting Selling

Delegating Telling

Lo Directive Behavior High

w
 Leadership Factors in Sales Management
Sales Manager
SKILLS POWER STYLES
Empowerment Legitimate Directing
Intuition Reward Coaching
Self-understanding Coercive Supporting
Vision Referent Delegating
Value Congruence Expert

Sales Team
Situation
Activities Salespersons Task structure
Interaction
Behavior Time pressure
Norms
External system
Sentiments

Salesperson
Professional maturity
Needs
Goals
Relationship with manager
Jose Guerrilla
You are the boss with the title, rank, experience, and all the
accountability that comes with the job. You have the feeling that
your salespeople are not following many of your orders. You
wonder if you are becoming paranoid. Although you are the
formal leader, an informal leader has emerged. Its Jose
Guerrilla.

Deliberately or not, he has become influential, even playing

amore dominant role than you. Jose is one of your top
salespeople, but is behaving like an underground rebel. The
groups overall performance is quickly dropping. Is there a
connection?

You must correct the situation soon. You do not want to lose
Jose, he is a valuable salesperson, besides you really like Jose.
Ground rule #1, you have got to turn the situation around. Why
did an informal leader emerge? How do you handle Jose? What
can you do to prevent this from reoccurring?
DECISION OPTIONS
Jose Guerrilla

1. Get the group together and remind them that you are the boss. Tell
them like it or not the ignoring of your orders must and will stop.
2. Take Jose aside and tell him you appreciate the help in managing
the group. Tell Jose that by pulling together, you can make the
situation work out right for everyone.
3. Let nature take its course. Sit back and let Jose make a big mistake
that will cause him to lose favor with the group.
4. Take time to get to know Jose. When you know his career objectives
you will probably find that he is not after your job. Use Jose to make
your communications between yourself and the group more efficient.
5. Talk to each member of the sales team separately. Let them know
that you know what is going on and that it is tantamount to
insubordination.
PROS & CONS
Jose Guerrilla

6. Appeals to the authoritarian manager but disregards the possibility

that the problem is that your interpersonal communication skills are
to blame.
7. Jose may not admit to being the guerrilla, but if he does and accepts
the bribe that you offer, the possibility that another member of the
group will assume the role cannot be ruled out.
8. Highly risky and puts your rear in the frying pan as well as Joses.
9. Jose could become a valuable link between you and your team and
possibly help you define interpersonal problems and help you
suggest possible solutions.
10. This solution might work with an unschooled or unskilled labor force
but not with the highly productive members of your sales team.
Effectiveness in Selling New
Ideas or Programs

Are the Following Statements True or False?

1. You should try to sell an idea to the "natural" leaders
first.
2. Thoroughly explaining the reasons for a change will
invariably turn resistance into cooperation.
3. Getting to know your people well is one of the best
ways to obtain control over their resistance to change.
Effectiveness in Selling New
Ideas or Programs

Are the Following Statements True or False?

(Continued)
4. It's usually better to hold a meeting to address the
entire sales force about a change that will affect
them.
5. You should inform your sales force as far in advance
as possible about changes that will affect them.
6. When you propose a program or an idea, you are
unlikely to encounter resistance except on the most
important issues involved.
COACHING

Situation Important Points

Prior to 1. Who is being called on?
Sales Call
2. What happened last time?
3. Objective of call?
4. Objections may arise?
5. How to handle objections?
6. Who are key players?
7. Developmental points last call?
COACHING

Situation Important Points

During the 1. Let salesperson control the call.
sales call
2. Answer necessary questions briefly.

After the 1. Ask for self-evaluations.

sales call
2. Reinforce positive.
3. Suggest effective responses.
4. Keep records.
Additional Suggestions for
Coaching Salespeople

1. Instead of criticizing, tell salespeople what you like

about their performance.
2. Help salespeople improve by giving them how to
advice.
3. Insist that salespeople evaluate themselves in order
to develop their evaluative abilities regarding their
own work habits and performance.
4. Ask questions to ensure the salesperson is actively
involved.
Additional Suggestions for
Coaching Salespeople

5. Make the most of resources that are available to you,

such as special training materials and so on.
6. An agreement between you and the salesperson should
be arrived at regarding corrective actions to be taken.
7. Keep records of specific standards of performance,
including how performance will be measured and by
what date.
8. The salesperson should be shown these records when
they are written to avoid any misunderstandings.
Factors Affecting Sales Team
Effectiveness
Individual Team
Members

Buying Center
Relationships

Intra-Company Sales Team

Relationships Effectiveness

Company
Strategy

Market
Environment
Sales Managers Rankings of the Causes
of Plateauing Among Salespeople

Mostly Commission
Overall Women Only
No clear career path 1 2 4
Not managed adequately 2 4 1
Bored 3 3 5
Burned out 4 1 2
Economic needs met 5 7 3
Discouraged with company 6 5 6
Overlooked for promotion 7 6 8
Lack of ability 8 9 7
Avoid risk of management job 9 10 9
Reluctance to be transferred 10 8 10
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 isnt 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
managers 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 self-
esteem 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
1. Make a sincere promise to Hot Shot that she will get
the next manager's spot that opens.
2. To give Hot Shot more recognition you send her and
her husband to the national sales convention with
the company picking up the tab.
3. 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.
4. 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

1. 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.
2. 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

3. 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.
4. 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 9-2:
Women in Sales: Percentages by Industry
Percent of Women
Industry In Sales Force
Banking 24.7
Business services 30.3
Chemicals 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
Average 24.3
Harassment Suggestions

1. Conduct yourself professionally.

2. Dress appropriately.

3. Be cautious when drinking at business functions.

4. Dont listen to sob stories.

5. Avoid being alone when possible.

6. Use independent transportation.

7. Trust your instincts.