Tweet

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.

Related Articles
  Panic Response Management
  Has Your Sales Force Lost Their Passion
  What Makes a Great Sales Manager?
  A SALES METHODOLOGY
  Part 5: Marketing and Sales Strategies
  Questions Every CEO Should Be Asking His Sales Managers
  The Sales Force with Over Achievers Who Don't
  Sales Training for the Fiery Edge on your Competitors
  "Everyone knows Sales Force Incentives Dramatically Increase Sales"
  The Ignorance Factor and Achieving Your Company's Revenue Goals
  Optimize Your Sales Force Without Spending a Dime
  Can You Motivate Your Sales Team?
  Do you have the sales force your strategy needs?
  FREE Salesforce Grader Tool
  Achieve Sales Leadership Mastery and Grow Sales Revenue
  Motivation or Sales Process?
  Maximize Your Sales Force
  Celebrities and the Sales Force
  Merger Miseries 6 Bean Counters and Bubbleheads
  Sales Management Training Tips: Sales are down. What can you do?

Article Tags: Sales Management, star results, steven rosen



Related Forum Posts
Re: Funding Question - Dianne, Depending on the bank that you're working with, be very, very careful about looking for financing for your marketing or advertising needs. Banks are not willing to finance these expenses in my experience and I was working with the BDC, which looks after government secured small business loans. Even with the lower risk for the BDC (As a large percentage of the loan is backed by the feds), they still required specifics and would not look at financing operating expenses or sales/marketing. [i:1unyjpe9](I noticed after that you're in the US... My experience deals with Canadian lenders so I'm not sure if the criteria is the same in the US market)[/i:1unyjpe9] To Smithwayne... If you're confident in what you're selling and have a sustainable market, don't be afraid of the recession. Look at restructuring your loan as a line of credit and use only what you need. Be very careful with your spending and don't throw money at unproven marketing... in other words, run a tight ship...
How do you start a retail store? - Hi Everyone, IF I was someone who was interested in opening a retail store to sell tennis equipment next to an existing tennis club per say, what would the steps involve? (e.g. permits, licenses, fees, etc...) And more importantly, how do you get a hold of a local sales rep or distributor of the goods you want to sell? Most manufacturers only have a website for their U.S. Operations, so would I just call/email them for a local sales rep/distributor name and phone number? Would they even give me the information if I'm not an existing retailer? Thanks
Re: If you've lost a prospect - It could be that you are making the sales process too difficult... 1. Too many confusing steps... 2. Too many choices... but none of the right options for the clients needs... 3. Too much effort on securing a short term sale instead of winning long-term trust... 4...?
Re: Personality Not Included - [quote="BuzzAroundBooks":1lqypk3c]Hi Shri, Is this business book about developing your company's brand image or your own? Should an entrepreneur always market themselves as the driving force behind their business? Don't a lot of small business owners like to remain anonymous because they want to appear larger than a "one person show"?[/quote:1lqypk3c] I would figure everyone has their own take on your questions. But, the book is about creating a personality for the business - any size business. It also points out very well how a business can falter without a distinct and positive personality. Awesome reading for any business owner or manager. I highlighted MANY points and will read it again to reinforce the points. Focusing on the owner's expertise doesn't mean they are a "one man show". They can be viewed as the "driving force" behind the business. I just saw an ad that sparked this idea. Take for example the law firm that Johnnie Cochran owned before his death. He was a big part of the brand for the company and was the driving force who molded the direction that the company took - but, he was certainly not a one man show. Shri
Re: How to promote business online? - Before promoting more online, I would first determine the conversion rate for your calls. For example, how many sales can you make out of 10 customers who come to see you? If you know 4 out of 10 will sign up and bring in $400 in business, you know you can give away up to $40 of your time to break even. The problem is, that's just to break even. So now you will have to have the backend. 1) Out of 4 people sign up for your service, how many will sign up for Month 2+? 2) On average, how many month do people stick? or how often do they drop out? 3) Or how many will sign up for bigger, more intensive packages? (only show these to people who bought at least your entry level sales, make this 3 times the size of your entry level package) If you don't have any of these above, you're going to promote and will have little to show for. Once you figure this out, then you will have lifetime customer value, meaning, on average how much your customer will be worth to you. If you know you can bring in $50 for every customer who steps in your tutoring business, you'll just now need to promote enough to reach your sales goals. As I said, to achieve, this, you will probably need to employ effective backend funnels in place. Once you have this figured out, you can spend money promoting your site with paid traffic, such as Facebook ads etc -- at this point, you will still be in profit because you know your bottom line.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

The new marketing question. Will they follow?

Using your social media profiles to drive traffic

Tips to Take Control of Credit Card Debt

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.