7

Sales Leadership
Supervision and
Motivation
Leadership is the art of getting
someone to do something you
want done because he wants to
do it
Dwight 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.
2.
3.
4.

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
Tell other sales persons to influence Sunil
At the next meeting have a long discussion on the subject without
taking names so that the guilty get the hint
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

Sales Leadership Overview

Effective
Sales Management
Leadership

Leadership Skills
Empowerment
Intuition

Involving sales people in

setting objectives and
planning

Ability to anticipate change

and take risks

Leadership
skills
Value Congruence

Vision

Communication skills, power

of conviction, ability to
delegate

Ability to look into the future

and design changes to deal
with it

Self-understanding
Ability to perform under
pressure and accept
feedbacks of all kinds
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Sales Manager Power

Expertise Power

The belief that a person has valuable

knowledge or skills in a given area.

Reference Power

Perceived attractiveness of one party to

another

Legitimate Power

The designated right to the leader

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.

CHANGE MANAGEMENT PROCESS

Assessment of the customer environment in which the company operates.

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

Measure success of change

Develop Sales Support Implementation Strategies - pilot test programs.

Critical Leader Behaviors for Different Situations

SITUATION

Newly hired,
inexperienced rep
Veteran rep; low
performance due to
burnout

Transformational
Leader Behaviors

Transactional
Leader Behaviors
Informing
Basic Rules

Verbal
Feedback

Articulating
a Vision

Unstable situation;
crisis environment

High-performing rep;
like autonomy

Fostering
Group
Goals

Providing
a Role
Model

Individualized
Support

Transformational Vs. Transactional

Leadership
Attributes

Transactional

Transformational

Sales 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

Supportive Behavior

Degree of listening and providing support

High

Low

Situation Leadership
Supporting

Selling

Sales person decides

and manager
supports

Asking for ideas but

still directing

Delegating
Reach agreement on
the cause of the
problem and then let
the sales person
solve it

Telling
One way
communication and
highly authoritative

Directive Behavior

High

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

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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

Prior to Sales Call

Important Points
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
1. Let salesperson control the call.

During the sales call 2. Answer necessary questions briefly.

1. Ask for self-evaluations.

2. Reinforce positive.
After the sales call

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 clearly
o
o
o
o

New product introduction

New marketing and advertising programme
Train people for advanced selling methods
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 information
Selling assistance
Sales support
Reporting responsibilities
Communication

Printed aids
Meetings How to handle them?
Indirect supervisory aids
Compensation plans
Territories
Quotas
Expense accounts
Sales 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

MOTIVATION TOOLS
What is
Motivation?

How do sales
persons
differ?

What are the

different
theories of
motivation?

o
o
o
o

Self Management
Quotas
Incentive Programmes
Recognition
Programmes

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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 behaviour
Extrinsic outcomes salary, benefits, promotions,
avoiding punishments
o

Concentration on rewards

Intrinsic outcomes challenging work, feeling of

personal worth, sense of accomplishment
o

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

Are the
rewards worth
the effort?

NO

YES

Does better
performance
lead to greater
rewards?

NO

YES

Does more
effort lead to
better
performance?

YES

GREATER
EFFORT

NO

THE SAME OR LESSER EFFORT

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Individual Needs
Sales Force Needs

Action by Sales Manager

Status

Change designation. Enhance facilities

Control

Involve sales person in setting quotas and call

planning

Respect

Invite sales people to gathering of top executives

Put pictures of top performers in ads and newsletters

Accomplishment

Set reasonable goals and calls

Stimulation

Run 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 Competitor

Wants to win and defeat competitors or even colleagues.

Highly verbal and normally does what he says

The Ego Driven

Wants to win and feels there is no competition.

Considers himself as an expert and hence changes jobs
frequently with ego being hurt

The Achiever

Self-motivated and sets high goals for himself. Keeps

raising the bar. Derives satisfaction of accomplishment
without bothering as to who gets credit.

The Service
Oriented

Major strength is building and cultivating relationships.

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Vrooms Expectancy Theory

A persons motivation to exert efforts depends on his
expectations of success

EFFORT

Expectancy

PERFORMANCE Instrumentality

REWARD

Valence

Value
of
Reward

Higher the motivation, greater the effort leading to superior

performance

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Career Stages
Exploration

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

Establishment

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

Maintenance

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

Disengagement

Primary concern is preparing for retirement and/or developing outside

interest
Low valence for higher order and lower order rewards
Low instrumentality

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Career Stages Sales Manager Role

Exploration

Establishment

Maintenance

Disengagement

Proper training on product, company and environment

Sales process training
Reasonable goals

Greater autonomy
Instil sense of healthy competition
Cater to esteem needs

High targets
More security
Building supervisory skills

Fire or limit area of influence

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Sales Persons Perceived Reasons for Failure and

Motivational Impacts
Motivational Impact
Perceived Reasons
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

28

Next Session
Compensation and Sales Expenses
Reading Chapter 12

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