7 Sales LeadershipSupervision and

Motivation

Leadership is the art of getting

someone to do something you

want done because he wants to

do itDwight Eisenhower

A Practical Problem

Your company introduces CRM. Most accept it and

follow it.

Sunil Malhotra, your star performer rejects it outright and

continues to be the best performer.

What do you do?1. Fix up a time and place for a meeting him. You tell him that he

will enter the data every evening else he stands to lose his bonus

2. Tell other sales persons to influence Sunil

3. At the next meeting have a long discussion on the subject without

taking names so that the guilty get the hint

4. Tell Sunil that you need to travel with him for a week. Have him

prepare the itinerary and include details of all the customers he

plans to meet

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Effective

Sales Management

Leadership

Sales Leadership Overview

3

Leadership Skills

4

IntuitionAbility to anticipate change

and take risks

Value CongruenceCommunication skills, power

of conviction, ability to

delegate

Self-understandingAbility to perform under

pressure and accept

feedbacks of all kinds

VisionAbility to look into the future

and design changes to deal

with it

EmpowermentInvolving sales people in

setting objectives and

planning

Leadership

skills

Sales Manager Power

The belief that a person has valuable knowledge or skills in a given area.Expertise Power

Perceived attractiveness of one party to anotherReference Power

The designated right to the leader Legitimate Power

Ability for the manager to reward the other person for a designated action.Reward Power

Belief that one party can remove rewards and provide punishment to affect behavior.Coercive Power

5

CHANGE MANAGEMENT PROCESS

Develop Sales Support Implementation Strategies - pilot test programs.

Measure success of change

Redesign Sales Force based on:

Knowledge of Customer Buying Process

Buyer segmentation and deployment of sales resources

Change in Sales Process based on buyer segments

Assessment of the customer environment in which the company operates.

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Critical Leader Behaviors for Different Situations

7

SITUATION

Transactional

Leader Behaviors

Transformational

Leader Behaviors

Informing

Basic Rules

Verbal

Feedback

Articulating

a Vision

Fostering

Group

Goals

Providing

a Role

Model

Individualized

Support

Newly hired,

inexperienced rep

Veteran rep; low

performance due to

burnout

Unstable situation;

crisis environment

High-performing rep;

like autonomy

Transformational Vs. Transactional

Leadership

Attributes Transactional TransformationalSales managers source

of power

Rank, position Character, competence

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

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Su

pp

ort

ive

Be

ha

vio

r

Low High

High

SupportingSales person decides

and manager

supports

SellingAsking for ideas but

still directing

TellingOne way

communication and

highly authoritative

DelegatingReach agreement on

the cause of the

problem and then let

the sales person

solve it

Directive Behavior

Situation Leadership

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Guidance on What, where, when and how to do it

De

gre

e o

f li

ste

nin

g a

nd

pro

vid

ing

su

pp

ort

COACHING

Feedback:

Territory and call planning

Attitude towards products and specific customers

Knowledge product, customer, industry, competition, territory and company policies.

Selling skills required at all stages of sales process

Role modelling

Punctuality Grooming Ability to listen Ethical

Trust

Integrity Reliability Competency

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COACHING

Situation Important Points

Prior to Sales Call

1. Who is being called on?

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?

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COACHING

Situation Important Points

During the sales call

1. Let salesperson control the call.

2. Answer necessary questions briefly.

After the sales call

1. Ask for self-evaluations.

2. Reinforce positive.

3. Suggest effective responses.

4. Keep records.

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SALES MEETINGS

Sales persons hate these the most.

Sales Managers need to:

Define the meeting objectives clearlyo New product introduction

o New marketing and advertising programme

o Train people for advanced selling methods

o Recognise performance

Location, Timing and Budgets

Sales Managers need to keep the interest alive,

ensure maximum participation and conduct follow

up to ensure successful meetings

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Tools and Techniques of Leadership

Personal contact what to check?Sales reports a control or a planner?Laptops and/or mobiles for

Better customer and industry informationSelling assistanceSales supportReporting responsibilitiesCommunication

Printed aidsMeetings How to handle them?Indirect supervisory aids

Compensation plansTerritoriesQuotasExpense accountsSales analysis procedures..\Videos\An Inspirational Video 1 - The Law Of Attraction - YouTube (360p).mp4

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Motivation of Sales Force

I believe I can fly,

I believe I can touch the sky! R. Kelly, Space Jam

Sales Force Motivational Model

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What is

Motivation?How do sales

persons

differ?

What are the

different

theories of

motivation?

MOTIVATION TOOLSo Self Management

o Quotas

o Incentive Programmes

o Recognition

Programmes

Four Basic Questions

What arouses salespeoples behaviour?

What influences the intensity of the behavioural

arousal?

What directs the persons behaviour?

How is this behaviour maintained over time?

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Sales Motivational Mix

The arousal, intensity, direction and persistence of

peoples behaviourExtrinsic outcomes salary, benefits, promotions,

avoiding punishmentso Concentration on rewards

Intrinsic outcomes challenging work, feeling of

personal worth, sense of accomplishmento The activity is the reward

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Importance of Motivation

Changes in marketing environment

Economic, technology, legal

Diversity in Company goals

Sales volume

Profits

Customer satisfaction

Unique nature of the sales job

Lonely, rejected, demanding customers, aggressive

competitors

Individuality of salespeople

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Motivational Conditions in Sales

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Are the

rewards worth

the effort?

Does better

performance

lead to greater

rewards?

Does more

effort lead to

better

performance?

GREATER

EFFORT

YES YES YES

THE SAME OR LESSER EFFORT

NO NONO

Individual Needs

Sales Force Needs Action by Sales Manager

Status Change designation. Enhance facilities

ControlInvolve sales person in setting quotas and call

planning

RespectInvite sales people to gathering of top executives

Put pictures of top performers in ads and newsletters

Accomplishment Set reasonable goals and calls

StimulationRun short term sales contests

Schedule sales meetings in exotic locations

Honesty Deliver all rewards and benefits promptly

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Sales Force Needs

TYPE CHARACTERISTICS

The CompetitorWants to win and defeat competitors or even colleagues.

Highly verbal and normally does what he says

The Ego DrivenWants to win and feels there is no competition.

Considers himself as an expert and hence changes jobs

frequently with ego being hurt

The AchieverSelf-motivated and sets high goals for himself. Keeps

raising the bar. Derives satisfaction of accomplishment

without bothering as to who gets credit.

The Service

OrientedMajor strength is building and cultivating relationships.

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Vrooms Expectancy TheoryA persons motivation to exert efforts depends on his

expectations of success

Higher the motivation, greater the effort leading to superior

performance

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EFFORT PERFORMANCE REWARDExpectancy Instrumentality ValenceValue

of

Reward

Career Stages

Primary concern is finding a suitable occupation Underdeveloped skills and knowledge Many drop out or are terminated Low expectancy, instrumentality, high valence for personal growth

Exploration

Primary concern is improving skills and performance Lack of promotion may cause disengagement or quitting New commitments make pay important High expectancy instrumentality, high valence for promotion and pay

Establishment

Primary concern is maintaining position, status, and performance Have highest sales volumes and percentage of quota and pay High valence for recognitions, respect, and pay Low valence for promotion

Maintenance

Primary concern is preparing for retirement and/or developing outside interest

Low valence for higher order and lower order rewards Low instrumentality

Disengagement

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Career Stages Sales Manager Role

Proper training on product, company and environment Sales process training Reasonable goals

Exploration

Greater autonomy Instil sense of healthy competition Cater to esteem needs

Establishment

High targets More security Building supervisory skills

Maintenance

Fire or limit area of influenceDisengagement

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Sales Persons Perceived Reasons for Failure and Motivational Impacts

Perceived Reasons

Motivational Impact

Positive Negative

Ability

Seek help from others

Get additional training

Increase effort

Become frustrated and

discouraged

Give up

Effort Behaviour

Work harder

Make more calls

Work longer hours

No change in behaviour

Strategy Behaviour Change selling strategy No change in behaviour

Task Difficulty

Work harder

Change strategies

Seek help

Become frustrated and

discouraged

Give up

Luck No change in behaviour Change the situation

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Motivational Tools

Financial

Salary

Commission

Bonus

Fringe benefits

Combination

Non Financial

Promotion

Sense of accomplishment

Personal growth opportunities

Recognition

Job security

Sales meetings and conventions

Sales training programmes

Job enrichment

Supervision

Performance Evaluation

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Guidelines for Motivating Salespeople

Differentiate between cant do and wont do

Segment the sales force to individualise the

motivational programmes

Communicate and be the role model

Praise in public and criticise in closed rooms

Handle plateaued salespeople separately

..\Videos\Employee Motivation - Elements of Greatness . - YouTube (360p).mp4

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Next Session

Compensation and Sales Expenses

Reading Chapter 12

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