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Professional Sales Management - Key to Sales Success

Written by: Peter Gilbert

Article Overview: In an environment where customer demands predominate, because competition is both relentless and increasingly international, the world of selling must accommodate a dramatically changed world of buying. Critically, sales management must catch up to this new world of selling. All too often, many sales forces are populated by dispirited, burned out salespeople and managed by short-term-oriented and narrowly focused sales managers. Indeed many sales forces are managed as if it were 30 years ago and the sales managers themselves were salespeople doing the work, instead of orchestrating the action.

Professional Sales Management - Key to Sales Success

In an environment where customer demands predominate, because competition is both relentless and increasingly international, the world of selling must accommodate a dramatically changed world of buying. Critically, sales management must catch up to this new world of selling. All too often, many sales forces are populated by dispirited, burned out salespeople and managed by short-term-oriented and narrowly focused sales managers. Indeed many sales forces are managed as if it were 30 years ago and the sales managers themselves were salespeople doing the work, instead of orchestrating the action.

A research study by Siebel MultiChannel Services highlighted that there are three essential elements in the role of Sales Managers:

• Planning – Developing and owning the operating plan for the business unit’s market analysis, business development and resources.
• People Development – Establishing the resources needed to successfully execute the operating plan by hiring genuine sales talent, coaching and developing people.
• Proactive Review – Managing the revenue by monitoring, controlling and reviewing sales activity. Sales Managers accomplish this through proactively reviewing sales plans and consolidating their plans into the business forecast for the organisation.
Selling vs. Managing

Many companies promote salespeople into Sales Management roles because of exceptional sales performance. Unfortunately most managers have internalised models of sales success, shaped by market dynamics that no longer exist. At best they are out of sync with the new strategic value-driven imperative. At worst they are dead wrong. Companies’ financial performance depends on a well-run sales force and the focus is increasingly on strategic sales management. Top performing Sales Managers typically display eight competencies:


• Provide strategic vision
• Orchestrate organisational resources
• Influence organisational strategy
• Coach strategically
• Diagnose performance
• Select high-potential salespeople
• Leverage technology (CRM, SFA)
• Demonstrate personal selling effectiveness (internally and externally)

At this point, it should be clear that many sales forces are in trouble. They were designed for a simpler, more pleasant era. Selling was much more fun in the old days. Now it is real work with enormous profit impact and Sales Managers have to perform. To support company profitability they must ensure their sales teams:

• Select the “right” accounts
• Win these accounts
• Manage and retain them
• Identify and win the “right” opportunities
• Deliver real value
• Earn an equitable return on the value delivered

The contemporary sales force must respond to these imperatives by managing large accounts for profits and servicing small accounts at minimum cost. These changes are summarised below:


Old Approach
1. Get New Accounts
1. Get the Order
2. Pressure Your Company To Cut Price
3. Give Away Service To Get Sales
4. Manage All the Accounts the Same Way
5. Sell to Anyone



Necessary New Approach
1. Retain and Grow Existing Accounts
2. Become a Valued Business Resource
3. Price For Profit / Sell on Value
4. Understand Cost Implications and Manage For Profitability
5. Manage Each Account For Maximum Long-Term Profitability
6. Concentrate On the High Profit Potential Accounts

Unfortunately a high percentage of sales managers in South Africa receive no sales management training whatsoever, and much of the available training is dated. The best training places much greater emphasis on coaching, training and performance managing sales personnel. In addition the very best training is delivered in digestible chunks and employs customised simulation techniques that ensure high levels of knowledge and skill retention.

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  Differentiation is the Key
  The Diary of a Mad Sales Person
  The \"Sales Goals Motivate\" Myth
  Establishing Your Sales Objectives

Article Tags: business development, business unit, dispirited, essential elements, financial performance, management roles, market dynamics, models, s market, sales management, sales managers, sales performance, sales success, salespeople, siebel multichannel services, strategic sales, strategic vision, strategy coach, sync, well run



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