Sales ManagementSales Management

Leadership

Module SevenModule Seven

Some leaders…Some leaders…

use conventional and unconventional tactics to lead use conventional and unconventional tactics to lead salespeople. They offer substantial incentive-based pay salespeople. They offer substantial incentive-based pay and promotion opportunities. In addition, they have and promotion opportunities. In addition, they have dressed as a superhero and staged a mock battle against dressed as a superhero and staged a mock battle against competitors, motorcycled through a brick wall, and repelled competitors, motorcycled through a brick wall, and repelled down a four story building to inspire their salespeople.down a four story building to inspire their salespeople.

ActionAction

The results?The results?

During their first seven years as sales leader, revenues During their first seven years as sales leader, revenues have increased more than 750 percent. In 2000, they have increased more than 750 percent. In 2000, they had a record-breaking year for e-business with had a record-breaking year for e-business with revenues of $1.1 billion.revenues of $1.1 billion.

ResultResult

The Difference Between Leadership The Difference Between Leadership and Supervisionand Supervision

Leadership:Leadership:The use of personalized influence with The use of personalized influence with other people to influence other people’s other people to influence other people’s behaviour toward the accomplishment behaviour toward the accomplishment or attainment of specific goals and or attainment of specific goals and objectivesobjectives

Supervision: Supervision: (Tactical, day-to-day (Tactical, day-to-day leadership)leadership)The day-to-day control of the salesforce The day-to-day control of the salesforce under routine operating conditionsunder routine operating conditions

COMPONENTS OF LEADERSHIP

•MATURITY: SELFLESS - COMPANY (AND

STAFF) FIRST

a) PERSONALITY TRAITS

•SELF-CONFIDENCE: BELIEVE IN THEMSELVES;

DEMONSTRATE CONFIDENCE, SET AN EXAMPLE.

•INITIATIVE: SELF-STARTER, TAKE CHARGE, ENJOYS A

CHALLENGE, WELCOMES CHANGE.

•ENERGY: HIGH ENERGY LEVEL

CREATIVITY: NEED CREATIVITY & IMAGINATION TO ADDRESS CHALLENGE & CHANGE OPPORTUNITIES.

COMPONENTS OF LEADERSHIP

• ROLE MODELINGROLE MODELING: ACTION SPEAKS LOUDER THAN : ACTION SPEAKS LOUDER THAN WORDS / ‘WORDS / ‘WALK THE WALK’WALK THE WALK’

MANAGERIAL SKILLS / BEHAVIOURSMANAGERIAL SKILLS / BEHAVIOURS

•PROBLEM SOLVINGPROBLEM SOLVING: IDENTIFY ISSUE & CAUSE THEN : IDENTIFY ISSUE & CAUSE THEN FORMULATE & ENSURE IMPLEMENTATION OF A SOLUTIONFORMULATE & ENSURE IMPLEMENTATION OF A SOLUTION

•INTERPERSONAL SKILLSINTERPERSONAL SKILLS: DEMONSTRATES GENUINE & : DEMONSTRATES GENUINE & ACCURATE EMPATHY, CONSISTENT BOUNDARIES, FOSTERS ACCURATE EMPATHY, CONSISTENT BOUNDARIES, FOSTERS GOOD WORKING (BUSINESS) BASED RELATIONSHIPSGOOD WORKING (BUSINESS) BASED RELATIONSHIPS

•COMMUNICATION SKILLSCOMMUNICATION SKILLS: CONCISE, CLEAR, ACCURATE, : CONCISE, CLEAR, ACCURATE, TIMELY & CONTEXTUALLY APPROPRIATE.TIMELY & CONTEXTUALLY APPROPRIATE.

•PERSUASION SKILLSPERSUASION SKILLS: BASED ON PERCEAVED IMAGE AND : BASED ON PERCEAVED IMAGE AND MUTUAL (RESPECT & BELIEF)MUTUAL (RESPECT & BELIEF)

LEADERSHIP STYLESLEADERSHIP STYLES

A CONTINUUM A CONTINUUM

FROM FROM

TASK ORIENTATIONTASK ORIENTATION

TO TO

RELATIONSHIP BASEDRELATIONSHIP BASED

TASK-ORIENTEDTASK-ORIENTED

(PRIMARILY UNIDIRECTIONAL COMMUNICATION)(PRIMARILY UNIDIRECTIONAL COMMUNICATION)

GETTING THE JOB DONE UTILIZES GETTING THE JOB DONE UTILIZES

TASK SPECIFIC DIRECTIONAL COMMUNICATIONTASK SPECIFIC DIRECTIONAL COMMUNICATION

HOW, WHEN, WHERE, WHAT.HOW, WHEN, WHERE, WHAT.

RELATIONSHIP ORIENTEDRELATIONSHIP ORIENTED

DEPENDENT ON: DEPENDENT ON:

PERSONAL RELATIONSHIPS, PERSONAL RELATIONSHIPS,

PERSONAL POWER & EXPERTISEPERSONAL POWER & EXPERTISE

(TWO-WAY COMMUNICATION)(TWO-WAY COMMUNICATION)

FOCUS IS ON YOUR PEOPLE, THEIR: FOCUS IS ON YOUR PEOPLE, THEIR: WELFARE, INPUT, FEELINGSWELFARE, INPUT, FEELINGS

•PROVIDE COACHING, MENTORING, PROVIDE COACHING, MENTORING, EMOTIONAL SUPPORT, EMOTIONAL SUPPORT, PSYCHOLOGICAL STROKING’ & PSYCHOLOGICAL STROKING’ & PERSONAL ASSISTANCE TO ACHIEVE PERSONAL ASSISTANCE TO ACHIEVE THE GOALSTHE GOALS

SITUATIONAL LEADERSHIPSITUATIONAL LEADERSHIP

TASKTASK & & RELATIONSHIP RELATIONSHIP

~ USE WITH ACHIEVERS ‘LET THEM DO ~ USE WITH ACHIEVERS ‘LET THEM DO THEIR JOB’THEIR JOB’

MODIFY LEADERSHIP STYLE TO SUIT THE TASK / INDIVIDUALMODIFY LEADERSHIP STYLE TO SUIT THE TASK / INDIVIDUAL

TASK & TASK & RELATIONSHIP RELATIONSHIP ~ INEXPERIENCED STAFF~ INEXPERIENCED STAFF

TASK & TASK & RELATIONSHIP RELATIONSHIP ~ MAJOR UNDERTAKING ~ MAJOR UNDERTAKING

REQUIRING GUIDANCE & MOTIVATIONREQUIRING GUIDANCE & MOTIVATION

TASK & TASK & RELATIONSHIP RELATIONSHIP ~ MOTIVATE SPECIFIC ~ MOTIVATE SPECIFIC

BEHAVIOURBEHAVIOUR

CHARISMATIC LEADERSHIPCHARISMATIC LEADERSHIP

• ROLE MODELROLE MODEL: ‘: ‘WALK THE WALK’WALK THE WALK’ WHILE WHILE

SINGING THE COMPANY SONGSINGING THE COMPANY SONG

((TRANSFORMATIONAL LEADERSHIPTRANSFORMATIONAL LEADERSHIP))

•ARTICULATE A VISIONARTICULATE A VISION (VISIONARY) (VISIONARY)

ABILITY TO INSPIRE A COMMON AND ABILITY TO INSPIRE A COMMON AND

COMPELLING VISIONCOMPELLING VISION

•CHALLENGE THE STATUS QUO INSPIRECHALLENGE THE STATUS QUO INSPIRE / /

CHALLENGE ACHIEVERS TO SURPASS CHALLENGE ACHIEVERS TO SURPASS

THEIR PERSONAL EXPECTATIONS (YOU THEIR PERSONAL EXPECTATIONS (YOU

CAN DO IT!)CAN DO IT!)

1.1. An ability to anticipate problemsAn ability to anticipate problems

2.2. An ability to seeking and obtain An ability to seeking and obtain substantive feedbacksubstantive feedback

3.3. An ability to diagnose problems and An ability to diagnose problems and opportunitiesopportunities

Leadership SkillsLeadership Skills

The basics:

• An ability to select an appropriate An ability to select an appropriate leadership behavior and match it to the leadership behavior and match it to the situationsituation

• An ability to communicate effectivelyAn ability to communicate effectively

Leadership SkillsLeadership SkillsThe art:

A Leader’s tools:A Leader’s tools:Communication SkillsCommunication Skills

&&Influence StrategiesInfluence Strategies

• Threats Threats (coercive power)(coercive power)

• Promises Promises (reward power)(reward power)

• Persuasion Persuasion (expert or referent power)(expert or referent power)

• Relationships Relationships (referent or legitimate power)(referent or legitimate power)

• ManipulationManipulation

Some Key leadership tasks:Some Key leadership tasks:

1.1. Role ModelingRole Modeling

2.2. CoachingCoaching

3.3. MeetingsMeetings

4.4. Corrective MeasuresCorrective Measures

#1 Role Modeling#1 Role Modeling

‘‘Day-in-day out’ you are the visible embodiment of Day-in-day out’ you are the visible embodiment of what the expectation is:what the expectation is:

• You are the companyYou are the company• You are the authourity figureYou are the authourity figure• You are the teacherYou are the teacher• You are the coachYou are the coach• You are the problem solverYou are the problem solver• Etc.Etc.

1.1. Take a we approachTake a we approach

2.2. Address only one or two problems at a timeAddress only one or two problems at a time

3.3. Don’t focus on criticizing poor performance, reinforce good Don’t focus on criticizing poor performance, reinforce good performanceperformance

4.4. Foster involvementFoster involvement

5.5. Recognize differences in salespeople and coach accordinglyRecognize differences in salespeople and coach accordingly

6.6. Coordinate coaching with more formal sales trainingCoordinate coaching with more formal sales training

7.7. Encourage continual growth and improvementEncourage continual growth and improvement

8.8. Insist salespeople evaluate themselvesInsist salespeople evaluate themselves

9.9. Obtain agreement with respect to punishments and rewardsObtain agreement with respect to punishments and rewards

10.10. Keep good recordsKeep good records

#2 Coaching#2 CoachingThe continuous development of salespeople through The continuous development of salespeople through

feedback and role modeling. feedback and role modeling.

#3 Meetings#3 Meetings

•Keep Keep presentations presentations succinctsuccinct

•Set and Set and communicate communicate the agendathe agenda

Generate Generate excitement excitement with contests with contests and other and other rewardsrewards

Ask for Ask for input!!input!!

Use visual aids and Use visual aids and breakout discussion breakout discussion groupsgroups

Positive reinforcement

The Challenges of LeadershipThe Challenges of Leadership

a.a. Morals & EthicsMorals & Ethics

b.b. Poor PerformancePoor Performance

c.c. Substance AbuseSubstance Abuse

d.d. Problem Salespeople: Problem Salespeople:

e.e. Termination of EmploymentTermination of Employment

f.f. Sexual HarassmentSexual Harassment

How to shorten your career in Sales…How to shorten your career in Sales…

– Intentional and consistent management activity Intentional and consistent management activity conflicting with what is moral (ethical).conflicting with what is moral (ethical).

– Exploits opportunities for corporate gain. Cut corners Exploits opportunities for corporate gain. Cut corners when it appears useful.when it appears useful.

– Seeks profitability and organizational success at any Seeks profitability and organizational success at any price.price.

– Selfish. Management cares only about its or the Selfish. Management cares only about its or the company’s gain.company’s gain.

a. (Immoral Management)a. (Immoral Management)

How to shorten your career in Sales…How to shorten your career in Sales…

– Management activity that is neither consistently moral Management activity that is neither consistently moral or immoral . . . Decisions lie outside the sphere to or immoral . . . Decisions lie outside the sphere to which moral judgments apply.which moral judgments apply.

– Give managers free rein. Personal ethics may apply Give managers free rein. Personal ethics may apply but only if managers choose. Respond to legal but only if managers choose. Respond to legal mandates if caught and required to do so.mandates if caught and required to do so.

– Seeks profitability. Other goals are not considered.Seeks profitability. Other goals are not considered.– Well-Intentioned but selfish in the sense that impact Well-Intentioned but selfish in the sense that impact

on others is not considered.on others is not considered.

a. (Amoral Management)a. (Amoral Management)

Doin’ It Right!Doin’ It Right!

– Management activity conforms to a standard of ethical Management activity conforms to a standard of ethical or moral behavior.or moral behavior.

– Live by sound ethical standards. Assume leadership Live by sound ethical standards. Assume leadership position when ethical dilemmas arise. Enlightened position when ethical dilemmas arise. Enlightened self-interest.self-interest.

– Seeks profitability within the confines of legal Seeks profitability within the confines of legal obedience and ethical standardsobedience and ethical standards

– Management wants to succeed but only within the Management wants to succeed but only within the confines of sound ethical precepts.confines of sound ethical precepts.

Moral ManagementMoral Management

a. a. Meeting Ethical andMeeting Ethical andMoral ResponsibilitiesMoral Responsibilities

Sales managers should be aware of three particularly relevant types of unethical acts:

1.Non role

2.Role Failure

3.Role Distortion.

Even if you won’t get caught…Even if you won’t get caught…you are responsible.you are responsible.

Non role Against the firm • Expense account cheating• Embezzlement• Stealing supplies

Type Direct Effect Examples

RoleFailure

Against the firm • Superficial performance appraisal

• Not confronting expense account cheating

• Palming off a poor performer with inflated praise

Even if you won’t get caught…Even if you won’t get caught…you are responsible.you are responsible.

Type Direct Effect Examples

Role Distortion

For the firm • Bribery• Price fixing• Manipulation of suppliers

POOR PERFORMANCEPOOR PERFORMANCE

DOCUMENT, DOCUMENT &

DOCUMENT SOME MORE!

IMMEDIATE & CONSTRUCTIVE ACTION

BE SPECIFIC!

Fixing is cheaper than hiring!

Poor PerformancePoor Performance

GET AGREEMENT TO THE PLANGET AGREEMENT TO THE PLAN

Format For Format For HandlingHandlingSTATE THE PROBLEMSTATE THE PROBLEM

SECURE SR AGREEMENTSECURE SR AGREEMENT

LISTEN TO SR’s ASSESSMENT OF THE PROBLEMLISTEN TO SR’s ASSESSMENT OF THE PROBLEM

CONSIDER RELEVANCE OF EXTENUATING CONSIDER RELEVANCE OF EXTENUATING CIRCUMSTANCESCIRCUMSTANCES

DEVELOP AN ACTION PLANDEVELOP AN ACTION PLAN

SUBSTANCE ABUSE

TEST NEW EMPLOYEES

(IF YOUR BIGGEST CLIENT IS AN ALCOHOLIC…)

SOME JOB FUNCTIONS CAN ACTUALLY FACILITATE THE GROWTH

OF ADDICTIVE BEHAVIOURS

DETECTIONATYPICAL BEHAVIOURS

SPREEECHSPREEECH (SLURRED SPEECH)

MISSED APPOINTMENTS

ODOR ABSENTEEISM

HANDLING THE ABUSE

Treatment is situation ally specific.

(SEE: DOCUMENT, DOCUMENT..)(SEE: DOCUMENT, DOCUMENT..)

ADDRESS IMPACT ON WORK BEHAVIOURS ADDRESS IMPACT ON WORK BEHAVIOURS

NOT THE ABUSE ITSELF.NOT THE ABUSE ITSELF.

GET ADMISSION OF A PROBLEMGET ADMISSION OF A PROBLEM

Problem SalespeopleProblem Salespeople??

Grandstand JordanGrandstand JordanA Disruptive Influence?A Disruptive Influence?

Fearful Kev

Worried Wanda

Perfectionist Pam

Disorganized Aaron

Excited Erik

Perfectionist Sim

EXPENSE ACCOUNTSEXPENSE ACCOUNTS

• WRITTEN EXPLICIT POLICIES REQUIREDWRITTEN EXPLICIT POLICIES REQUIRED• ENSURE THERE ARE NO MISUNDERSTANDINGSENSURE THERE ARE NO MISUNDERSTANDINGS• TREATMENT IS SITUATIONALLY SPECIFIC.TREATMENT IS SITUATIONALLY SPECIFIC.$ $

$ $

$ $

(SEE DOCUMENT, DOCUMENT..)(SEE DOCUMENT, DOCUMENT..)

UNETHICAL BEHAVIOURUNETHICAL BEHAVIOUR

MISREPRESENTATION OF COMPANYMISREPRESENTATION OF COMPANY

(& / or ITS POLICIES)(& / or ITS POLICIES)

(SEE DOCUMENT, DOCUMENT..)(SEE DOCUMENT, DOCUMENT..)

OVER SELLINGOVER SELLING

Termination of EmploymentTermination of Employment

(SEE DOCUMENT, DOCUMENT..)(SEE DOCUMENT, DOCUMENT..)

When the decision is made, remember…

This is not a discussion process but an informational meeting

FOLLOW POLICIES EXACTLYFOLLOW POLICIES EXACTLY

ADVISE & SEEK COUNSEL FROM YOUR BOSS & DHRADVISE & SEEK COUNSEL FROM YOUR BOSS & DHR

HARASSMENTHARASSMENT

(SEE DOCUMENT, DOCUMENT..)

MANAGEMENT NOT IMMUNE MANAGEMENT NOT IMMUNE

WHEN SPEAKING TO AN EMPLOYEE, WHEN SPEAKING TO AN EMPLOYEE,

NEVER CLOSE YOUR OFFICE DOORNEVER CLOSE YOUR OFFICE DOOR . .

WRITTEN EXPLICIT POLICIES ARE REQUIREDWRITTEN EXPLICIT POLICIES ARE REQUIRED

•BE VISIBLY PROACTIVEBE VISIBLY PROACTIVE

•CONTROL THE ENVIRONMENTCONTROL THE ENVIRONMENT

ZERO TOLERANCEZERO TOLERANCE

HARASSMENTHARASSMENT

THE PERCEPTION IS GUILTY UNTIL PROVEN INNOCENTTHE PERCEPTION IS GUILTY UNTIL PROVEN INNOCENT

AN EMPLOYEE ONLY HAS TOAN EMPLOYEE ONLY HAS TO

““FEEL” HARASSED FEEL” HARASSED

TO MAKE AN ALLEGATION.TO MAKE AN ALLEGATION.

THE FORGOTTEN RULE

AS MANAGER, YOU CONTROL AND DETERMINE

THE EMPLOYEES’ WORK ENVIRONMENT.