Interview: Ken Le Meunier-FitzHugh The Oxford Handbook of Strategic Sales and Sales Management Steve Macaulay Hello, I am Steve Macaulay and I am interviewing Ken Le MeunierFitz-Hugh about his book that he has co-edited called The Oxford Handbook of Strategic Sales and Sales Management. Now, Ken, I always thought sales weren’t at all strategic, that they were the front line troops that implemented a marketing policy. Am I wrong? Ken Le MeunierFitzHugh I am afraid you are in today’s modern industry. I think if we went back about fifteen, twenty, twenty five years ago, sales were very much the tactical tool of an organisation – they basically did as they were told and their whole aim in life was to maximise sales. With our modern environment that we are in, the complexity of customers requiring more and more, sales have had to move away from just being an order taker to somebody – or a part of the organisation – which is involved in all levels of strategic decisions because it affects most organisations and actually, in reality, it is where the organisations get their revenue from; the sales force play that role, they are very keenly a part of that. Steve Macaulay Now it is a big book, but there are four discreet sections which interlink; now the first one is Sales Strategy and the Environment. Can you tell me a bit more about the content of that? Ken Le MeunierFitzHugh Well, that really leads on from what I was just saying, the concept that sales are now a strategic tool. There are parts of your customer base where you probably service at a very low level, maybe through telesales, maybe through a once a year call. What the book was trying to do, or what these chapters were trying to do, was actually identify how organisations can start thinking about their customer base, thinking about the environment that they are operating in and thinking about who their customers really are and how they are going to service those customers; recognising that the organisation and the organisational part of sales and the environment they are operating in is critical to the success factor to any organisation. Steve Macaulay So I guess that leads on to the second part which is about Sales Management; tell me some more about that. Ken Le MeunierFitzHugh When we wrote the book, or when we devised the book, we very much thought about sales as strategy, but we realised that actually sales management is actually part of that strategy. There is always a danger with sales management that they can be the best sales Ken Le Meunier-FitzHugh person which can be promoted into a sales management role, but that really wasn’t enough nowadays. We realised that actually managing a sales force can be very complex; you have got the concept of territory design, you have got the concept of burn out in the workforce –using your sales force in an effective way to maximise their opportunities to maximise sales, without putting them under undue pressure and feeling not part of the organisation. This comes from something I came across a few years ago where I was talking to an organisation who had just had a Christmas party and I said something about their sales people and they said oh no, we don’t invite the sales people to the Christmas party; we just send them a hamper. So it is that alienation which can start very early on in the environment which we are trying to discuss and making those changes. Steve Macaulay Now probably the biggest change has come in this interface with the customer and that is the third part of the book – the Sales Force and the Customer. Tell me some more about that. Ken Le MeunierFitzHugh Well again, it is about the concept of acquisition, growth and retention. We are in an environment where there aren’t new customers appearing every week. The customers you have got are often long term investments, long term partners – part of the family for quite a long time. So you have got to identify who they are and realising that actually they are not just about selling to them; it is about the long term relationship, it is about building up an understanding of their needs, their growth strategies, understanding that they are not somebody who is not part of your organisation. They are, of course, not part of your organisation, but their whole strategy and your strategy are interlinked – especially when you start thinking about the larger customers. So it is very much about – as I said to you at the beginning – the acquisition, retention and growth of their customer base which becomes critical in this complex environment we operate in. Steve Macaulay Now let’s take a look at that notion that organisationally sales should and must be part of the organisation in a very interlinked sort of way – that is the fourth part of the book. Tell me some more about it. Ken Le MeunierFitzHugh It is – and it is probably the area that was my passion. For many years I have been looking at the concept of sales and marketing integration, and the last section was trying to bring those parts together, or actually sales and integration with other parts of the organisation – finance, supply chain – the whole breadth of activities that an organisation has and a sales force has to engage with at some level. Because without that they are really nothing, www.cranfieldknowledgeinterchange.com© Cranfield University 2 Ken Le Meunier-FitzHugh they are not part of the organisation. So it really came from the concept that sales and marketing needs to be integrated into a single entity in terms of the customer. We were not talking about pushing sales and marketing together into one department, what we are talking about is that their focus is upon the customer and the organisation’s focus is upon the customer and their future and looking at how organisations need to think about internal as well as external structures to ensure that can happen successfully. Steve Macaulay If you were to leave me with a key message from the book, what would it be? Ken Le MeunierFitzHugh Organisations have got to think strategically about sales, they have got to integrate them in their organisation so they are part of planning, but more importantly that they are a critical success factor of any organisation. And we have got to accept that they are a cost and they are a very large cost to an organisation, but managed successfully the force of a strategic tool can be very successful and be very profitable to an organisation in terms of success factors. Steve Macaulay Ken, thank you very much. www.cranfieldknowledgeinterchange.com© Cranfield University 3