You are on page 1of 31

Module Seven

Sales Leadership,
Management, and Supervision

Learning Objectives

1.
2.
3.
4.

Distinguish between sales force leadership,


management, and supervision.
Explain how the LMX model and leadership style
approaches contribute to contemporary sales
leadership.
List of the six components of the sales leadership
model.
Discuss five bases of power that affect leadership.

Professional Selling:
A Trust-Based Approach

Module 7:
Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

Learning Objectives

5.
6.
7.

Explain five influential strategies used in


leadership.
Discuss issues related to coaching the sales
force, holding integrative meetings, and
practicing ethical management .
Identify some of the problems encountered in
leading and supervising a sales force.

Professional Selling:
A Trust-Based Approach

Module 7:
Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

Setting the Stage


Sales Leadership: SAP America
1. What is the part of SAPs mission
statement mentioned in the vignette?
2. How does Bill McDermott build the best
possible sales team?

Professional Selling:
A Trust-Based Approach

Module 7:
Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

Sales Leadership, Sales Management,


and Sales Supervision
Sales Leadership:
The ability to influence others to achieve common goals
for the collective good of the sales organization and
company.

Sales Management:
Activities related to the planning, implementing, and
controlling the sales function.

Sales Supervision:
Activities related to working with sales subordinates on
a day-to-day basis.
Professional Selling:
A Trust-Based Approach

Module 7:
Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

Contemporary Views of
Sales Leadership
Leadership Style
Transactional leadership
Transformational Leadership

Leader-Member Exchange (LMX) Model


Leadership style is unique for each
salesperson

Professional Selling:
A Trust-Based Approach

Module 7:
Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

Leadership Model for Sales Management

Goals &
Objectives
Individual
Organizational

Power
Sales Manager

Sales
Managers
Leadership
Effectiveness

Power
Salespeople
Other People

Professional Selling:
A Trust-Based Approach

Situation
Time Constraints
Nature of Tasks
History and Norms

Needs
Salespeople
Other People

Leadership
Skills
Anticipation
Diagnostic
Selection
Communication
- Influence Strategy
- Communications
Mechanisms

Module 7:
Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

Leadership Factors in Sales Management


Sales Manager
Skills
Power
Empowerment
Vision
Legitimate
Intuition
Value Congruence
Coercive
Self-understanding
Referent
Expert

Sales Team
Activities
Interaction
Norms
Sentiments

Professional Selling:
A Trust-Based Approach

Salespersons
Behavior

Salesperson
Professional maturity
Needs
Goals
Module
7:
Relationship with
manager

Styles
Directing
Coaching
Supporting
Delegating

Situation
Task structure
Time pressure
External system

Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

Power and Leadership


Five types of power which may be present
in interpersonal relationships:
Expert Power
Referent Power
Legitimate Power
Reward Power
Coercive Power

Professional Selling:
A Trust-Based Approach

Module 7:
Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

Situational Factors

Trait Approach identify traits of an


effective leader
Behavior Approach identify
behaviors associated with effective
leadership
Contingency Approach leadership
style is contingent upon situation

Professional Selling:
A Trust-Based Approach

Module 7:
Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

Professional Selling:
A Trust-Based Approach

Module 7:
Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

Needs and Wants of Salespeople


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

Professional Selling:
A Trust-Based Approach

Module 7:
Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

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
salespeoples goals.

Professional Selling:
A Trust-Based Approach

Module 7:
Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

Leadership Skills

Anticipating and Seeking Feedback


Diagnostic
Selection and Matching
Communication

Professional Selling:
A Trust-Based Approach

Module 7:
Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

Communication Skills:
Influence Strategies

Threats (coercive power)


Promises (reward power)
Persuasion (expert or referent power)
Relationships (referent or legitimate
power)

Manipulation

Professional Selling:
A Trust-Based Approach

Module 7:
Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

Coaching
The continuous development of salespeople through
supervisory feedback and role modeling. Suggestions for
effective coaching include:

Take a we approach
Address only one or two problems at a time
Dont 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

Professional Selling:
A Trust-Based Approach

Module 7:
Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

Planning and Conducting


Integrative 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

Professional Selling:
A Trust-Based Approach

Module 7:
Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

Planning and Conducting


Integrative 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

Professional Selling:
A Trust-Based Approach

Module 7:
Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

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
companys gain.

Professional Selling:
A Trust-Based Approach

Module 7:
Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

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.

Professional Selling:
A Trust-Based Approach

Module 7:
Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

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.

Professional Selling:
A Trust-Based Approach

Module 7:
Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

Meeting Ethical and


Moral Responsibilities
Sales managers should be aware of three
particularly relevant types of unethical acts:
1. Nonrole
2. Role Failure
3. Role Distortion.

Professional Selling:
A Trust-Based Approach

Module 7:
Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

Meeting Ethical and


Moral Responsibilities
Type

Nonrole

Role Failure

Professional Selling:
A Trust-Based Approach

Direct Effect

Examples

Against the firm

Expense account cheating


Embezzlement
Stealing supplies

Against the firm

Superficial performance
appraisal
Not confronting expense
account cheating
Palming off a poor performer
with inflated praise

Module 7:
Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

Meeting Ethical and


Moral Responsibilities
Type

Role Distortion

Professional Selling:
A Trust-Based Approach

Direct Effect

For the firm

Examples
Bribery
Price fixing
Manipulation of suppliers

Module 7:
Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

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

Professional Selling:
A Trust-Based Approach

Module 7:
Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

Transformational Leadership
A leader distinguish by a special ability to bring
about innovation and change
businesses today overmanaged & underledOrg complexity , productive change
TL balance the demands of both
Have their eyes on the bigger picture of how
much better things could be in their Org

Professional Selling:
A Trust-Based Approach

Module 7:
Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

Transactional Leadership
Where leaders & followers are in some
type of exchange relationship in order
to get needs met
Example: superior give rewards to sales person
for increasing monthly sales

Professional Selling:
A Trust-Based Approach

Module 7:
Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

Situational Leadership
Managerial Leadership Styles

SUPPORTIVE BEHAVIOR

High

Low

SUPPORTING

COACHING

Praise, listen, and facilitate

Direct and support

For people who have


High Competence
Variable Commitment

For people who have


Some Competence
Some Commitment

EMPOWERING

DIRECTING

Turning over responsibility for


day-to-day decision-making

Structure, control, and


supervise

For people who have


High Competence
High Commitment

For people who have


Low Competence
High Commitment

DIRECTIVE BEHAVIOR

Professional Selling:
Module 7:
A
Trust-Based
Approach
Sales
Leadership,
and Supervision
Adapted from Leadership and the One Minute
Manager,
KennethManagement,
Blanchard

Ingram

High

LaForge Avila
Schwepker
Jr. Williams
1000ventures.com

Situational Leadership
Continuum of Leadership Behavior that Emphasizes Decision
Making
Managing by 1 Managers makes decision and announces it
directing
T
e
a
m
m
a
t
u
r
i
t
y
Leading by
empowering

2 Manager sells decision


3 Manager presents ideas and invites questions
4 Manager presents tentative decision subject to change
5 Manager presents problem, gets suggestions, makes
decision
6 Manager defines limits; asks group to make decision
7 Manager permits subordinates to function within limits
defined by superior

Professional Selling:
Module 7:
A
Trust-Based
Approach
Sales Leadership,
Management, and Supervision
Adapted from: The Tannenbum and Schmidt Leadership
Continuum

Ingram

LaForge Avila
1000ventures.com
Schwepker
Jr. Williams

=promises

=persuasion

=threats
x

=relationship
=persuasion
Professional
Selling:
A Trust-Based Approach

=relationship
Module 7:
Sales Leadership, Management, and Supervision

Ingram

LaForge Avila
Schwepker Jr. Williams

ien
Or
ta
k
si
im
em
ep
n
pi

Sy
ar
at
-s
ya
ra

tD

as
ar

an

Professional Selling:
Power
A Trust-Based Approach

Module 7:
Sales Leadership, Management, and Supervision

Karakter
Ingram LaForge
Schwepker Jr.

Avila
Williams