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Five Steps to Leading Sales Force Restructuring

Guest post by: Steven Rosen

Article Overview: It’s that time of year again when sales executives in the industry must justify the cost of their sales force in light of products going off patent, lack of formulary coverage, and changing dynamics in the industry.

Five Steps to Leading Sales Force Restructuring

Before announcing any restructuring/downsizing initiatives it is important to make sure you have dotted all your I's and crossed all T's. This is not an exhaustive list but covers many of the big picture items that need to be in place.



1. Have all your ducks in a row: HR and legal have put all documentation in place. There are packages prepared for each sales rep that is being laid off (severance letters and out placement service offerings etc.). The people who are going to contact the sales reps have been trained and know how to effectively communicate what is happening.



2. Act quickly. Even though you may try to keep things quiet, rumours of layoffs will inevitably circulate, creating stress for all. Unfortunately the rumour mill is running wild with fear and negatively impacting morale, focus and productivity. This is all the more reason to set deadlines and make sure you meet them effectively and efficiently.



3. New vision for the sales organization is in place and ready to roll out. Clearly and concisely communicate your new vision. Communicate what the organization will be doing differently, i.e. what the new sales structure looks like, and what the new roles and responsibilities for team members are going to be. Make sure you carefully craft the rationale for the downsizing to share across the organization.



4. Set up individual meetings: It is critical to meet face to face with each employee. Keep meetings brief and factual. Treating those who are being laid off with respect by thanking them for their efforts and offering fair severance packages are important. Word travels quickly and the way people are treated on the way out sends a message to the remaining sales people. Ensure that sales people are being treated fairly in terms of transition packages and with dignity.



Five Steps to Leading Change:



The success of your new vision is dependent on the buy-in of your front line sales managers. For any change management program to work it needs to be led from the front lines. During this critical time you need to effectively communicate to the entire organization. Your front line managers will look to you for leadership. You must be the role model, your attitude and behaviours through the initial phase will send an important message to the entire team.



Given you have been working on the changes for several months, this time line provides you with time to deal with your own guilt, anxiety and fears about the impact of your vision will have on the organization. The front line sales managers on the other hand, are just starting to deal with their own emotions. They have lost colleagues, sales reps and friends. They will have to deal with their emotions, anxieties and grief.

• 1. Set Post Announcement Metrics: It is essential that you set some immediate goals and ensure the management team is clear what you are trying to achieve in the short-term. I have a couple examples below:

• To retain all top performers
• To regain productivity and positivity as quickly as possible
• To transition to the new way of doing business

2. Win their Hearts: You need to win their hearts before you win their minds. The managers need to believe in the changes and their future with the organization. The real work starts after all the announcements have been made and the layoffs completed. Senior sales management must now focus on the remaining sales managers and sales people.



3. Be an Empathetic Leader: The key is to be open. Listen. Help your staff deal with their emotions and be empathetic. By showing concern and interest, you will be working towards getting everyone back on board. Set up weekly group meetings to provide feedback on how the transition is progressing. Put out the small fires and try to address them before they become infernos.



4. Offer Support: Your efforts need to be focused on coaching and encouraging people to be successful in transitioning to the new vision. Be available, be present, and be there for your people. You may want to offer your sales manager's access to an executive sales coach to help them deal with any issues. An executive sales coach can help accelerate the transition by offering an unbiased sounding board and be an outlet for managers to discuss issues that they may not be comfortable raising with you.

5. Promote and Communicate Positivity: You need to exude optimism and a "can do" attitude regarding the transition. Promote optimism and positive thinking in all your communications. Be sure to highlight positive movements and all success stories, no matter how minor. Reward each success and allow the people who adjust quicker to become role models for the team.



These are turbulent times in the pharmaceutical industry and sales leadership is critical factor for managing and thriving. I offer sales leaders one on one Executive coaching to help them achieve great personal and professional success in light of the challenges they face.

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Article Tags: Sales Management, star results, steven rosen



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