Module Seven
Sales Leadership,
Management, and Supervision
Learning Objectives
1.
2.
3.
4.
Distinguish between sales force leadership,
management, and supervision.
Explain how the LMX model and leadership style
approaches contribute to contemporary sales
leadership.
List of the six components of the sales
leadership model.
Discuss five bases of power that affect
leadership.
Professional Selling:
A Trust-Based Approach
Module 7:
Sales Leadership, Management, and Supervision
Ingram
LaForge Avila
Schwepker Jr. Williams
Learning Objectives
5.
6.
7.
Explain five influential strategies used in
leadership.
Discuss issues related to coaching the sales
force, holding integrative meetings, and
practicing ethical management .
Identify some of the problems encountered in
leading and supervising a sales force.
Professional Selling:
A Trust-Based Approach
Module 7:
Sales Leadership, Management, and Supervision
Ingram
LaForge Avila
Schwepker Jr. Williams
Setting the Stage
Sales Leadership: SAP America
1. What is the part of SAP’s mission
statement mentioned in the vignette?
2. How does Bill McDermott build the best
possible sales team?
Professional Selling:
A Trust-Based Approach
Module 7:
Sales Leadership, Management, and Supervision
Ingram
LaForge Avila
Schwepker Jr. Williams
Sales Leadership, Sales Management,
and Sales Supervision
Sales Leadership:
The ability to influence others to achieve common goals
for the collective good of the sales organization and
company.
Sales Management:
Activities related to the planning, implementing, and
controlling the sales function.
Sales Supervision:
Activities related to working with sales subordinates on
a day-to-day basis.
Professional Selling:
A Trust-Based Approach
Module 7:
Sales Leadership, Management, and Supervision
Ingram
LaForge Avila
Schwepker Jr. Williams
Contemporary Views of
Sales Leadership
• Leadership Style
– Transactional leadership
– Transformational Leadership
• Leader-Member Exchange (LMX) Model
– Leadership style is unique for each
salesperson
Professional Selling:
A Trust-Based Approach
Module 7:
Sales Leadership, Management, and Supervision
Ingram
LaForge Avila
Schwepker Jr. Williams
Leadership Model for Sales Management
Goals &
Objectives
Individual
Organizational
Power
Sales Manager
Sales
Manager’s
Leadership
Effectiveness
Power
Salespeople
Other People
Professional Selling:
A Trust-Based Approach
Situation
Time Constraints
Nature of Tasks
History and Norms
Needs
Salespeople
Other People
Leadership
Skills
Anticipation
Diagnostic
Selection
Communication
- Influence Strategy
- Communications
Mechanisms
Module 7:
Sales Leadership, Management, and Supervision
Ingram
LaForge Avila
Schwepker Jr. Williams
Power and Leadership
Five types of power which may be present
in interpersonal relationships:
Expert Power
Referent Power
Legitimate Power
Reward Power
Coercive Power
Professional Selling:
A Trust-Based Approach
Module 7:
Sales Leadership, Management, and Supervision
Ingram
LaForge Avila
Schwepker Jr. Williams
Situational Factors
• Trait Approach – identify traits of an
effective leader
• Behavior Approach – identify
behaviors associated with effective
leadership
• Contingency Approach – leadership
style is contingent upon situation
Professional Selling:
A Trust-Based Approach
Module 7:
Sales Leadership, Management, and Supervision
Ingram
LaForge Avila
Schwepker Jr. Williams
Needs and Wants of Salespeople
• Important when coercive power is not
being utilized
• Realize all needs and wants cannot be
met
• Not all leadership directives need to be
based on needs and wants
• Consider each salesperson as a unique
individual
Professional Selling:
A Trust-Based Approach
Module 7:
Sales Leadership, Management, and Supervision
Ingram
LaForge Avila
Schwepker Jr. Williams
Goals and Objectives
• Leadership is easier when personal
goals and objectives of the salespeople
are consistent with those of the
organization.
• Sales managers strive to seek balance
and consistency between
organizational goals and their
salespeople’s goals.
Professional Selling:
A Trust-Based Approach
Module 7:
Sales Leadership, Management, and Supervision
Ingram
LaForge Avila
Schwepker Jr. Williams
Leadership Skills
• Anticipating and Seeking Feedback
• Diagnostic
• Selection and Matching
• Communication
Professional Selling:
A Trust-Based Approach
Module 7:
Sales Leadership, Management, and Supervision
Ingram
LaForge Avila
Schwepker Jr. Williams
Communication Skills:
Influence Strategies
•
•
•
•
Threats (coercive power)
Promises (reward power)
Persuasion (expert or referent power)
Relationships (referent or legitimate
power)
• Manipulation
Professional Selling:
A Trust-Based Approach
Module 7:
Sales Leadership, Management, and Supervision
Ingram
LaForge Avila
Schwepker Jr. Williams
Coaching
The continuous development of salespeople through
supervisory feedback and role modeling. Suggestions for
affective coaching include:
•
•
•
•
•
•
•
•
•
•
Take a we approach
Address only one or two problems at a time
Don’t focus on criticizing poor performance, reinforce good
performance
Foster involvement
Recognize differences in salespeople and coach accordingly
Coordinate coaching with more formal sales training
Encourage continual growth and improvement
Insist salespeople evaluate themselves
Obtain agreement with respect to punishments and rewards
Keep good records
Professional Selling:
A Trust-Based Approach
Module 7:
Sales Leadership, Management, and Supervision
Ingram
LaForge Avila
Schwepker Jr. Williams
Planning and Conducting
Integrative Meetings
• Keep technical presentations
succinct
• Use visual aids and breakout
discussion groups
• Keep salespeople informed of
corporate strategy and their role
in it
• Minimize operations review
Professional Selling:
A Trust-Based Approach
Module 7:
Sales Leadership, Management, and Supervision
Ingram
LaForge Avila
Schwepker Jr. Williams
Planning and Conducting
Integrative Meetings
• Set a humane schedule . . .
allow time for sharing and
adequate breaks
• Set and communicate the
agenda
• Ask for input from the
salespeople
• Generate excitement with
contests and other rewards
Professional Selling:
A Trust-Based Approach
Module 7:
Sales Leadership, Management, and Supervision
Ingram
LaForge Avila
Schwepker Jr. Williams
Approaches to Management Ethics
Immoral Management
– Intentional and consistent management activity
conflicting with what is moral (ethical).
– Exploits opportunities for corporate gain. Cut corners
when it appears useful.
– Seeks profitability and organizational success at any
price.
– Selfish. Management cares only about its or the
company’s gain.
Professional Selling:
A Trust-Based Approach
Module 7:
Sales Leadership, Management, and Supervision
Ingram
LaForge Avila
Schwepker Jr. Williams
Approaches to Management Ethics
Amoral Management
– Management activity that is neither consistently moral
or immoral . . . Decisions lie outside the sphere to
which moral judgments apply.
– Give managers free rein. Personal ethics may apply
but only if managers choose. Respond to legal
mandates if caught and required to do so.
– Seeks profitability. Other goals are not considered.
– Well-Intentioned but selfish in the sense that impact
on others is not considered.
Professional Selling:
A Trust-Based Approach
Module 7:
Sales Leadership, Management, and Supervision
Ingram
LaForge Avila
Schwepker Jr. Williams
Approaches to Management Ethics
Moral Management
– Management activity conforms to a standard of ethical
or moral behavior.
– Live by sound ethical standards. Assume leadership
position when ethical dilemmas arise. Enlightened
self-interest.
– Seeks profitability within the confines of legal
obedience and ethical standards
– Management wants to succeed but only within the
confines of sound ethical precepts.
Professional Selling:
A Trust-Based Approach
Module 7:
Sales Leadership, Management, and Supervision
Ingram
LaForge Avila
Schwepker Jr. Williams
Meeting Ethical and
Moral Responsibilities
Sales managers should be aware of three
particularly relevant types of unethical acts:
1. Nonrole
2. Role Failure
3. Role Distortion.
Professional Selling:
A Trust-Based Approach
Module 7:
Sales Leadership, Management, and Supervision
Ingram
LaForge Avila
Schwepker Jr. Williams
Meeting Ethical and
Moral Responsibilities
Type
Nonrole
Role Failure
Professional Selling:
A Trust-Based Approach
Direct Effect
Examples
Against the firm
• Expense account cheating
• Embezzlement
• Stealing supplies
Against the firm
• Superficial performance
appraisal
• Not confronting expense
account cheating
• Palming off a poor performer
with inflated praise
Module 7:
Sales Leadership, Management, and Supervision
Ingram
LaForge Avila
Schwepker Jr. Williams
Meeting Ethical and
Moral Responsibilities
Type
Role Distortion
Professional Selling:
A Trust-Based Approach
Direct Effect
For the firm
Examples
• Bribery
• Price fixing
• Manipulation of suppliers
Module 7:
Sales Leadership, Management, and Supervision
Ingram
LaForge Avila
Schwepker Jr. Williams
Problems in Leadership
• Conflicts of Interest
• Chemical Abuse and Dependency
• Problem Salespeople: A Disruptive Influence
–
–
–
–
Lone Wolf
Corporate Citizens
Institutional Stars
Apathetics
• Termination of Employment
• Sexual Harassment
Professional Selling:
A Trust-Based Approach
Module 7:
Sales Leadership, Management, and Supervision
Ingram
LaForge Avila
Schwepker Jr. Williams