Sales Management Leadership and Supervision

1. Sales ManagementLeadership and Supervision Module Seven

2. Action The Importance of LeadershipAn Expert’s Viewpoint: Regan Lancaster, vice president of global sales at i2 Technologies uses conventional and unconventional tactics to lead his salespeople. He offers substantial incentive-based pay and promotion opportunities. In addition, he has dressed as a superhero and staged a mock battle against competitors, motorcycled through a brick wall, and repelled down a four story building to inspire his salespeople.

3. Result The Importance of LeadershipAn Expert’s Viewpoint: Lancaster’s leadership is paying dividends. During his first seven years at i2, revenues have increased more than 750 percent. In 2000, i2 had a record-breaking year for e-business with revenues of $1.1 billion.

4. What is the Difference Between Leadership and Supervision? Leadership: The use of influence with other people through communications processes to (WANT TO) attain specific goals and objectives Supervision: The day-to-day control of the salesforce under routine operating conditions

5. Sales Force Socialization (Revisited) Task-Specific Self-Esteem: The extent to which an individual believes s/he can perform a task competently Organizational Commitment: The extent to which an individual feels a bond to the organization Formalization: The extent to which work activity is directed by rules, regulations, and commitment

6. Sales Force Socialization (Revisited) Work Alienation: An individual's psychological separation from the activities of the job Job Involvement: • An individual's psychological attachment to the job itself

7. Contemporary Views ofSales Leadership • Leader-Member Exchange (LMX) Model • Transformational Leadership • Behavioral Self-Management (BSM)

8. Leadership Exchange (LMX) • Focus on sales person • Reciprocal trust • Quality relationships • Adaptive selling behaviors

9. Transformational Leadership • Charismatic • Inspirational • Personalized attention

10. Behavioral Self-Management (BSM) • Self-imposed • Planning • Behavior • Evaluation • Rewards

11. Goals & Objectives Individual Organizational Situation Time Constraints Nature of Tasks History and Norms Sales Manager’s Leadership Effectiveness Needs Salespeople Other People Power Sales Manager • Leadership • Skills • Anticipation • Diagnostic • Selection • Communication • Influence Strategy • Communications • Mechanisms Power Salespeople Other People Leadership Model for Sales Management

12. Five types of power which may be present in interpersonal relationships: 1 Expert Power – valuable knowledge 2 Referent Power- attractiveness 3 Legitimate Power – designated role 4 Reward Power – ability to reward 5 Coercive Power – ability to punish Power and Leadership

13. “Carrot and Stick”orWhy Expert and Referent is More Effective Salesperson as a “Mule” Vs Salesperson as a “Partner”

14. Important when coercive power is not being utilized Realize all needs and wants cannot be met Not all leadership directives need to be based on needs and wants Consider each salesperson as a unique individual Needs and Wants of Salespeople

15. Goals and Objectives • Leadership is easier when personal goals and objectives of the salespeople are consistent with those of the organization • Sales managers strive to seek balance and consistency between organizational goals and their salespeople’s goals.

16. Leadership Skills • The ability to anticipate problems • The ability to seeking and obtain substantive feedback • The ability to diagnose problems and opportunities

17. Leadership Skills • The ability to select an appropriate leadership behavior and match it to the situation (Situational Factors) • The ability to communicate effectively • Technology Skills

18. Communication Skills:Influence Strategies • Threats (coercive power) • Promises (reward power) • Persuasion (expert or referent power) • Relationships (referent or legitimate power) • Manipulation Use technology for efficient communications

19. Technology Skills • CRM • Excel • Forecasting models • PDA

20. Coaching The continuous development of salespeople through supervisory feedback and role modeling. Most effective when guidance and feedback are provided as close as possible to the occurrence of a related event. Keys to successful coaching: • Trust and respect. • How and why, not right and wrong.

21. Coaching Suggestions for affective coaching include: • Take a we approach • Address only one or two problems at a time • Don’t focus on criticizing poor performance, reinforce good performance • Foster involvement • Recognize differences in salespeople and coach accordingly • Coordinate coaching with more formal sales training • Encourage continual growth and improvement • Insist salespeople evaluate themselves • Obtain agreement with respect to punishments and rewards • Keep good records

22. Planning and ConductingIntegrative Meetings • Keep technical presentations succinct • Use visual aids and breakout discussion groups • Keep salespeople informed of corporate strategy and their role in it • Minimize operations review

23. Planning and ConductingIntegrative Meetings • Set a humane schedule . . . allow time for sharing and adequate breaks • Set and communicate the agenda • Ask for input from the salespeople • Generate excitement with contests and other rewards

24. Approaches to Management Ethics Immoral Management • Intentional and consistent management activity conflicting with what is moral (ethical). • Exploits opportunities for corporate gain. Cut corners when it appears useful. • Seeks profitability and organizational success at any price. • Selfish. Management cares only about its or the company’s gain.

25. Approaches to Management Ethics Amoral Management • Management activity that is neither consistently moral or immoral . . . Decisions lie outside the sphere to which moral judgments apply. • Give managers free rein. Personal ethics may apply but only if managers choose. Respond to legal mandates if caught and required to do so. • Seeks profitability. Other goals are not considered. • Well-Intentioned but selfish in the sense that impact on others is not considered.

26. Approaches to Management Ethics Moral Management • Management activity conforms to a standard of ethical or moral behavior. • Live by sound ethical standards. Assume leadership position when ethical dilemmas arise. Enlightened self-interest. • Seeks profitability within the confines of legal obedience and ethical standards • Management wants to succeed but only within the confines of sound ethical precepts.

27. Meeting Ethical andMoral Responsibilities • Sales managers should be aware of three particularly relevant types of unethical acts: • Nonrole • Role Failure • Role Distortion.

28. Type Direct Effect Examples Nonrole Against the firm • Expense account cheating • Embezzlement • Stealing supplies Role Failure Against the firm • Superficial performance appraisal • Not confronting expense account cheating • Palming off a poor performer with inflated praise Meeting Ethical andMoral Responsibilities

29. Role Distortion For the firm • Bribery • Price fixing • Manipulation of suppliers Meeting Ethical andMoral Responsibilities Type Direct Effect Examples

30. Problems in Leadership • Conflicts of Interest • Chemical Abuse and Dependency • Problem Salespeople: A Disruptive Influence • Lone Wolf • Corporate Citizens • Institutional Stars • Apathetics • Termination of Employment • Sexual Harassment

31. Romano Pitesti • Case Study on page 354