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 Williams

Schwepker Jr.

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 Williams

Schwepker Jr.

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 Williams

Schwepker Jr.

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 Williams

Schwepker Jr.

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 Williams

Schwepker Jr.

Leadership Model for Sales Management

Goals & Objectives Individual Organizational

Situation Time Constraints Nature of Tasks History and Norms

Power Sales Manager

Sales Managers Leadership Effectiveness

Needs Salespeople Other People

Power Salespeople Other People

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

Professional Selling: A Trust-Based Approach

Module 7: Sales Leadership, Management, and Supervision

Ingram

LaForge Avila Williams

Schwepker Jr.

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 Williams

Schwepker Jr.

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 Williams

Schwepker Jr.

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 Williams

Schwepker Jr.

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 Williams

Schwepker Jr.

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 Williams

Schwepker Jr.

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 Williams

Schwepker Jr.

Coaching
The continuous development of salespeople through supervisory feedback and role modeling. Suggestions for affective 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
Module 7: Sales Leadership, Management, and Supervision Ingram LaForge Avila Williams

Professional Selling: A Trust-Based Approach

Schwepker Jr.

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 Williams

Schwepker Jr.

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 Williams

Schwepker Jr.

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 Williams

Schwepker Jr.

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 Williams

Schwepker Jr.

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 Williams

Schwepker Jr.

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 Williams

Schwepker Jr.

Meeting Ethical and Moral Responsibilities

Type Direct Effect

Examples
Expense account cheating Embezzlement Stealing supplies Superficial performance appraisal Not confronting expense account cheating Palming off a poor performer with inflated praise
Ingram LaForge Avila Williams

Nonrole

Against the firm

Role Failure

Against the firm

Professional Selling: A Trust-Based Approach

Module 7: Sales Leadership, Management, and Supervision

Schwepker Jr.

Meeting Ethical and Moral Responsibilities

Type Direct Effect

Examples
Bribery Price fixing Manipulation of suppliers

Role Distortion

For the firm

Professional Selling: A Trust-Based Approach

Module 7: Sales Leadership, Management, and Supervision

Ingram

LaForge Avila Williams

Schwepker Jr.

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 Williams

Schwepker Jr.