Sales CH 7

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.
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SALES LEADERSHIP:SAP AMERICA

SAP America is the leader in enterprise application software, with annual sales in
excess of $2.8 billion. Bill McDermott became CEO of SAP America in 2002. He had
spent 17 years in sales and sales management at Xerox and served as executive vice
president of worldwide sales and operations at Siebel Systems. His leadership at SAP
has produced overall growth of about 14 percent in a flat market. What key leadership
activities are responsible for this type of growth? One is the development and buy-in by
employees of mission and vision statements. Every SAP America employee is given a
pocket-sized booklet entitled Words of Honor: SAP America. Vision. Mission.
Values. In it, for example, employees can read that the companys mission is to build
a trusted partnership with each customer by delivering business solutions that create
value and superior customer advantage. Employees refer to this booklet on a regular
basis as a reminder of the values and commitment of the company.
The mission and vision statements have translated into a customer-centric corporate
culture. Bill McDermott reinforces this culture in several ways. He has developed
specific sales strategies for each customer group and aligned the sales organization
structure to implement these strategies and serve customers more effectively. He and
the executive vice president of sales spend a great deal of time with customers,
sometimes accompanying salespeople on sales calls.
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SALES LEADERSHIP:SAP AMERICA

In fact, McDermott often tells customers to call him directly if they need anything
and he will take care of it. Much of McDermotts time is also spent with
employees. He hires the best talent and communicates with them often to build
the best possible team. One approach he uses is to hold regular, company-wide,
town hallstyle meetings in which remote employees join via video link.
He also e-mails employees on their birthdays and anniversaries, and uses several
ways to acknowledge special effort. For example, when one salesperson spent a
great deal of time closing an important deal, McDermott sent the reps husband a
gift basket thanking him for his patience while his wife was working long hours.
SAP America is building a network of partners to sell a new product that
integrates disparate business applications to smaller customers. This will require
changes in the SAP America sales force. However, the basic mission, vision, and
customer-centric culture at SAP America will not change. In fact, the commitment
to the companys basic values makes it easier to implement new strategies for the
sales organization.
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Setting the Stage

Sales Leadership: SAP America
1. What is the part of SAPs mission
statement mentioned in the vignette?
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Setting the Stage

Sales Leadership: SAP America
2. How does Bill McDermott build the best
possible sales team?
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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.
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Contemporary Views of
Sales Leadership
Leadership Style
Transactional leadership
Transformational Leadership
Leader-Member Exchange (LMX) Model

Leadership style is unique for each
salesperson
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Leader-Member Exchange (LMX)

Leader-member exchange theory states that, because of
time pressure, leaders establish a special relationship
with a small group of followers based on attitude,
demographic, and traits similar to the leaders. This group
is called In Group, they receive more attention, reward,
greater performance ratings.
Out-Group consists other followers who get less
attention, reward, and have leader-follower relations
based on formal authority interactions
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Leadership
Transactional Leader
Leader who clarifies the role and task requirements of
subordinates, initiate structure, provide appropriate rewards,
and try to be considerate to and meet the social needs of
subordinates.
Transformational Leader
A leader distinguished by a special ability to bring about
innovation and change by recognizing followers needs and
concerns, helping them look at old problems in new ways,
and encouraging them to question the status quo.
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TRANSFORMATIONAL LEADERSHIP Motivate

Motivate others
others
Vision
Vision beyond
beyond self-interest
self-interest
Seek
Seek intrinsic
intrinsic higher
higher level
level goals
goals
Seek
Seek performance
performancebeyond
beyondexpectations
expectations
Key
Key
characteristics
characteristics
of
of
transformational
transformational
leaders
leaders
Have
Have charisma
charisma
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Leadership Model for Sales Management

Goals &
Objectives
Individual
Organizational
Power
Sales Manager
Sales
Managers
Leadership
Effectiveness
Power
Salespeople
Other People
Situation
Time Constraints
Nature of Tasks
History and Norms
Needs
Salespeople
Other People
Leadership
Skills
Anticipation
Diagnostic
Selection
Communication
- Influence Strategy
- Communications
Mechanisms
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Power and Leadership

Five types of power which may be present
in interpersonal relationships:
Expert Power
Referent Power
Legitimate Power
Reward Power
Coercive Power
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13-16
Sources of Power
Legitimate Power
Reward Power
Coercive Power
Expert Power
Referent Power
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13-17
Sources of Power
Legitimate Power
Capacity to influence derived from the position of a
manager in the organizational hierarchy. Subordinates
believe that they ought to comply.
Reward Power
An influence over others based on hope of reward.
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13-18
Sources of Power
Coercive Power
Influence over others based on fear. A subordinate
perceives that failure to comply with the wishes of a
superior would lead to punishment of some other
negative outcome.
Expert Power
Capacity to influence related to some expertise, special
skill, or knowledge.
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13-19
Sources of Power
Referent Power
Power based on a subordinates identification with a
superior. The more powerful individual is admired
because of certain traits, and the subordinate is
influenced because of this admiration.
(using stars in ads to sell something by showing their
use of product)
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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
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Developing Power.
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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
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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.
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Leadership Skills
Anticipating and Seeking Feedback

Diagnostic
Selection and Matching
Communication
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Communication Skills:
Influence Strategies
Threats (coercive power)

Promises (reward power)
Persuasion (expert or referent power)
Relationships (referent or legitimate
power)
Manipulation
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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
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Planning and Conducting

Integrative Meetings
Keep technical presentations
succinct (brief)
Use visual aids and breakout
discussion groups
Keep salespeople informed of
corporate strategy and their role
in it
Minimize operations review
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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
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Monitor Activity
where there is no vision the people fail
Where do you set the vision and

monitor the activity?
The Sales Meeting
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The Sales Meeting

How do you run one?
First and foremost everyone should know
daily what the score is.
Review
Renewals
Avails
You can only manage

what you measure
The War Room

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The War Room
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The Sales Board

what gets measured gets done
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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.
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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.
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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.
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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.
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Meeting Ethical and

Type
Nonrole
Role Failure
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
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Meeting Ethical and

Type
Role Distortion
Direct Effect
For the firm
Examples
Bribery
Price fixing
Manipulation of suppliers
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Problems in Leadership
Conflicts of Interest
Chemical Abuse and Dependency
Problem Salespeople: A Disruptive Influence
Lone Wolf
Corporate Citizens
Institutional Stars
Apathetics (indifferent)
Termination of Employment
Sexual Harassment
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The Ideal Sales leader
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THNAKS
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Sales CH 7

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Sales CH 7

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Module Seven

Distinguish between sales force leadership,

Explain five influential strategies used in

SALES LEADERSHIP:SAP AMERICA

SALES LEADERSHIP:SAP AMERICA

Setting the Stage

Setting the Stage

Sales Leadership, Sales Management,

Leader-Member Exchange (LMX) Model

Leader-Member Exchange (LMX)

TRANSFORMATIONAL LEADERSHIP Motivate

Leadership Model for Sales Management

Power and Leadership

Trait Approach identify traits of an

Needs and Wants of Salespeople

Goals and Objectives

Anticipating and Seeking Feedback

Threats (coercive power)

Planning and Conducting

Planning and Conducting

Where do you set the vision and

The Sales Meeting

The Sales Meeting

You can only manage

The War Room

The War Room

The Sales Board

Approaches to Management Ethics

Approaches to Management Ethics

Approaches to Management Ethics

Meeting Ethical and

Meeting Ethical and

Against the firm

Expense account cheating

Against the firm

Meeting Ethical and

For the firm

The Ideal Sales leader

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