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Why Sales Managers need to work on the business, not just in the business
| Guest post by: Sue Barrett |
Article Overview: Playing “catch up” is a common challenge for organisations of all sizes. Whether you have enjoyed a period of rapid growth and prosperity, or encountered some unexpected obstacles or losses, with little warning, businesses can discover that their decision making and activity has become very reactive. Too much time is spent putting out spot fires and reacting to situations, while too little time is spent on pro-active and strategic activities. The very real and legitimate day to day business pressures result in many (if not most) decisions being made on an ad-hoc basis, with each one disconnected from the next.
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Why Sales Managers need to work on the business, not just in the business
Playing “catch up” is a common challenge for organisations of all sizes. Whether you have enjoyed a period of rapid growth and prosperity, or encountered some unexpected obstacles or losses, with little warning, businesses can discover that their decision making and activity has become very reactive. Too much time is spent putting out spot fires and reacting to situations, while too little time is spent on pro-active and strategic activities.
The very real and legitimate day to day business pressures result in many (if not most) decisions being made on an ad-hoc basis, with each one disconnected from the next. The end result can be inefficiencies, unproductive sales teams, poor business performance or simply wide-spread frustration – leaders are reacting to the markets instead of acting with forethought and vision. If left unchecked, this can become a way of life with disastrous consequences.
By contrast, high performing organisations (both small and large) anchor all tactical activity, decision making and effort to carefully considered and clearly understood strategic objectives which have been underpinned by the discipline of business planning, a capability necessary for all people at managerial level. For clarity, the Encarta Dictionary defines planning as “a method of doing something that is worked out in advance”. With this in mind, what business can afford not to?
With the move to a globalised business world, decisions once made with only the local market in mind now need to take in many more variables and more complex arrangements. With this shift in market complexity we are seeing the need for Sales Managers of all levels to possess more strategic thinking and business planning capabilities if they are to lead and guide their sales teams to business success in the short and long term.
However the reality is that most Sales Managers, particularly at the state and regional level are not trained or equipped for strategic thinking and business planning. From our observations in the field and, in particular, our work in Job Profiling, too many Sales Managers are leaning towards tactical skills and behaviours rather than the strategic. They are often more comfortable working in the field sorting out products, deals and customer issues alongside their sales teams rather than stepping back and looking at the bigger picture. This suggests that the Sales Managers are spending more time working in the business, rather than on the business.
The business world has fundamentally changed and with it has come the need for more sophisticated thinking and action, especially in sales. Whether at a state, national or global level it makes perfect sense for our Sales Manager to be competent in these core capabilities for today and the future.
Dalrymple, Cron and DeCarlo, authors of ‘Sales Management’, state that the core competencies for the 21st Sales Manager are now:
1. Strategic Action: Understanding the industry; Understanding the organisation; Taking strategic actions
2. Coaching: Providing verbal feedback; Role modelling; Trust building
3. Team Building: Designing teams; Creating a supportive environment; Managing team dynamics
4. Self Management: Fostering integrity and ethical conduct; Managing and balancing personal drive ; Developing self awareness
5. Global Perspective: Cultural knowledge and sensitivity; Global selling program
6. Technology: Understanding new technology; Implementing sales force automation; Implementing customer relationship management (CRM)
How do your Sales Managers measure up?
What’s clear is that the 21st Century Sales Manager role at all levels requires an ability to plan, organise and monitor activity, projects and resources to deliver business outcomes and to support the business strategy.
With respect to the future training of all Sales Managers, we find we are encouraging the inclusion of business planning and strategic thinking as part of their training agenda, which will teach them how to plan for success both as a Business Manager and a Sales Manager.
Remember everybody lives by selling something.
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About the Author: Sue Barrett RSS for Sue's articles - Visit Sue's website Sue is one of the leading voices commenting on sales today. Sue has a unique way of getting to the heart of the matter - she combines extensive knowledge, research, insight, and practical experience with a deep sense of compassion to bring forth a more enlightened way of thinking and participating in the world. This makes her stand out from the usual crowd of existing business commentators. Her ability to distill complex ideas and relate them to life's everyday challenges and opportunities has audience members and readers leaving with a stronger understanding of "self" and how they can begin to achieve excellence through purposeful action. Presenting and writing on a wide range of topics about the world of 21st Century selling Sue's presentations and articles include sales philosophy and culture, sales leadership and coaching, sales training, selling skills, resilience, neuroscience in selling and more. Sue's articles are some of the most widely read in Australia and she is gaining a following overseas as well. Besides publishing on Barrett Sales Blog site, Sue has been the lead sales writer for www.smartcompany.com.au since 2007, and is also regularly published on other highly regarded publications such as Australian Anthill Magazine, Niche Magazine, Marketing Mag, Business Chicks, and Business Deals. Click here to visit Sue's website   Help My sales team isnt coping with the fallout from the GFC Your precall postcall checklist Meditation as a path to Happiness Why Sales Managers need to work on the business not just in the business Help my sales people cant close sales |
Related Forum Posts
Online Sales and Marketing vs Traditional
- Hi Evan,
I am noticing that many of the posts in the Sales/Marketing section deal with online marketing, SEM and and SEO and Affiliates. I was wondering if it might be a good idea to separate that section into two; 1) Online Sales and Marketing; 2) Traditional Sales and Marketing
Re: Online Sales and Marketing vs Traditional
- [quote="ltrahan":31w9r2iz]Hi Evan,
I am noticing that many of the posts in the Sales/Marketing section deal with online marketing, SEM and and SEO and Affiliates. I was wondering if it might be a good idea to separate that section into two; 1) Online Sales and Marketing; 2) Traditional Sales and Marketing[/quote:31w9r2iz]
I second the request...
Don't give up 40%!
- Congrats on this milestone Evan...
I agree with outsourcing any function that makes the business owner a Front-line worker as this is not best use of your time.
I also agree with Louis that 40% is too much to give up. 40% may work if you have surpassed your income goals from the website and after you pay the 40% you are still within your monthly income goals.
Would an RFP/RFI (Request For Proposal/Information) to companies like this Website Sales Team be a call you need to make?
Re: Is A Business Plan A Waste Of Time?
- I don't see a business plan a waste of time. Actually it's a great goal-setting tool for a business and it also helps evaluate a business' performance which allows the business owner to see where the business is going. Others say that it is only important when seeking funding from lenders or banks, but I believe it is more than that, that's why I have mine written and it's a work in progress since I first started in business.
Re: Finance is the primary requirement of business
- [quote="rauljoseph":36x8dadn]Finance is very important in a business. It is all about managing the business' money and other assets. Finance includes the study and analysis of processes, financial institutions, markets and instruments that are involved in the transfer of money or anything that has a monetary value among consumers, businesses and government.[/quote:36x8dadn]
Good point.
I'll just add that if I was going into business for myself and could only have one skill it would be Sales & Marketing. You need to be able to create customers first and foremost. Finance is more of a support function for entrepreneurs.
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