REFLECTION PAPER

Match Your Sales Force Structure to Your Business Cycle

-Surabhi Bisht, 201911043

The article starts with the universal fact that while talent is the key to
winning, any team or company has to consider different formations
depending on different contexts- this is the differentiating factor
between winning and losing. A company’s goal of sales operation is
to evolve as the business starts, grow, mature and decline.
Considering the context of sales, it seems essential then to consider
how the sales force needs to change over the lifecycle of a
product/business. Hence, companies must consider altering four
factors- roles, size, degree of specialisation, and efforts- these
variables determine response of sales force towards market
opportunities, influence sales performance, and affect the company’s
revenues, costs and ultimately profitability.

While changes aren’t easy and take a lot of time to get used to, there
can be many critical butterfly effects which can affect a lot of parties
involved. One of the common decisions some companies may
consider is to either use own sales force or outsource this function.
While outsourcing is common, if not aligned with the right partners,
this could be a costly mistake.

While starting, smart companies would focus on the size of their sales
staff and on the dependability of their sales partners. During the
growth phase, the company must concentrate on attaining the degree
of specialization and size of the sales force correct. When businesses
hit maturity after growth, the key is to become more efficient and
effective. To achieve this, companies should consider allocating
current resources and hire more sales force that isn’t specific to
particular domains. Lastly, as organizations go into decline, wise sales
leaders should consider reducing the size of the existing sales force
and use partners to keep the business running as long as they can.

Hence, sales leaders must try to overcome resistance within the firm
during various situations and consider sacrificing short-term profits to
secure their companies’ success over time.