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Module Seven Sales Management Leadership Some leaders… use conventional and unconventional tactics to lead salespeople. They offer substantial incentive-based pay and promotion opportunities. In addition, they have dressed as a superhero and staged a mock battle against competitors, motorcycled through a brick wall, and repelled down a four story building to inspire their salespeople. Action The results? Result During their first seven years as sales leader, revenues have increased more than 750 percent. In 2000, they had a record-breaking year for e-business with revenues of $1.1 billion. The Difference Between Leadership and Supervision Leadership: The use of personalized influence with other people to influence other people’s behaviour toward the accomplishment or attainment of specific goals and objectives Supervision: (Tactical, day-to-day leadership) The day-to-day control of the salesforce under routine operating conditions COMPONENTS OF LEADERSHIP a) PERSONALITY TRAITS •SELF-CONFIDENCE: BELIEVE IN THEMSELVES; DEMONSTRATE CONFIDENCE, SET AN EXAMPLE. •INITIATIVE: SELF-STARTER, TAKE CHARGE, ENJOYS A CHALLENGE, WELCOMES CHANGE. •ENERGY: HIGH ENERGY LEVEL CREATIVITY: NEED CREATIVITY & IMAGINATION TO ADDRESS CHALLENGE & CHANGE OPPORTUNITIES. •MATURITY: SELFLESS - COMPANY (AND STAFF) FIRST COMPONENTS OF LEADERSHIP MANAGERIAL SKILLS / BEHAVIOURS •PROBLEM SOLVING: IDENTIFY ISSUE & CAUSE THEN FORMULATE & ENSURE IMPLEMENTATION OF A SOLUTION •INTERPERSONAL SKILLS: DEMONSTRATES GENUINE & ACCURATE EMPATHY, CONSISTENT BOUNDARIES, FOSTERS GOOD WORKING (BUSINESS) BASED RELATIONSHIPS •COMMUNICATION SKILLS: CONCISE, CLEAR, ACCURATE, TIMELY & CONTEXTUALLY APPROPRIATE. •PERSUASION SKILLS: BASED ON PERCEAVED IMAGE AND MUTUAL (RESPECT & BELIEF) • ROLE MODELING: ACTION SPEAKS LOUDER THAN WORDS / ‘WALK THE WALK’ LEADERSHIP STYLES A CONTINUUM FROM TASK ORIENTATION TO RELATIONSHIP BASED TASK-ORIENTED (PRIMARILY UNIDIRECTIONAL COMMUNICATION) GETTING THE JOB DONE UTILIZES TASK SPECIFIC DIRECTIONAL COMMUNICATION HOW, WHEN, WHERE, WHAT. RELATIONSHIP ORIENTED (TWO-WAY COMMUNICATION) FOCUS IS ON YOUR PEOPLE, THEIR: WELFARE, INPUT, FEELINGS •PROVIDE COACHING, MENTORING, EMOTIONAL SUPPORT, PSYCHOLOGICAL STROKING’ & PERSONAL ASSISTANCE TO ACHIEVE THE GOALS DEPENDENT ON: PERSONAL RELATIONSHIPS, PERSONAL POWER & EXPERTISE SITUATIONAL LEADERSHIP MODIFY LEADERSHIP STYLE TO SUIT THE TASK / INDIVIDUAL TASK & RELATIONSHIP ~ INEXPERIENCED STAFF TASK & RELATIONSHIP ~ MAJOR UNDERTAKING REQUIRING GUIDANCE & MOTIVATION TASK & RELATIONSHIP ~ MOTIVATE SPECIFIC BEHAVIOUR TASK & RELATIONSHIP ~ USE WITH ACHIEVERS ‘LET THEM DO THEIR JOB’ CHARISMATIC LEADERSHIP (TRANSFORMATIONAL LEADERSHIP) •ARTICULATE A VISION (VISIONARY) ABILITY TO INSPIRE A COMMON AND COMPELLING VISION •CHALLENGE THE STATUS QUO INSPIRE / CHALLENGE ACHIEVERS TO SURPASS THEIR PERSONAL EXPECTATIONS (YOU CAN DO IT!) • ROLE MODEL: ‘WALK THE WALK’ WHILE SINGING THE COMPANY SONG Leadership Skills The basics: 1. An ability to anticipate problems 2. An ability to seeking and obtain substantive feedback 3. An ability to diagnose problems and opportunities Leadership Skills The art: • An ability to select an appropriate leadership behavior and match it to the situation • An ability to communicate effectively A Leader’s tools: Communication Skills & Influence Strategies • • • • • Threats (coercive power) Promises (reward power) Persuasion (expert or referent power) Relationships (referent or legitimate power) Manipulation Some Key leadership tasks: 1. Role Modeling 2. Coaching 3. Meetings 4. Corrective Measures #1 Role Modeling ‘Day-in-day out’ you are the visible embodiment of what the expectation is: • • • • • • You are the company You are the authourity figure You are the teacher You are the coach You are the problem solver Etc. #2 Coaching The continuous development of salespeople through feedback and role modeling. 1. 2. 3. Take a we approach Address only one or two problems at a time Don’t focus on criticizing poor performance, reinforce good performance 4. Foster involvement 5. Recognize differences in salespeople and coach accordingly 6. Coordinate coaching with more formal sales training 7. Encourage continual growth and improvement 8. Insist salespeople evaluate themselves 9. Obtain agreement with respect to punishments and rewards 10. Keep good records #3 Meetings •Keep presentations succinct •Set and communicate the agenda Ask for input!! Use visual aids and breakout discussion groups Positive reinforcement Generate excitement with contests and other rewards The Challenges of Leadership a. b. c. d. e. f. Morals & Ethics Poor Performance Substance Abuse Problem Salespeople: Termination of Employment Sexual Harassment a. (Immoral Management) How to shorten your career in Sales… – 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. a. (Amoral Management) How to shorten your career in Sales… – 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. Moral Management Doin’ It Right! – 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. Meeting Ethical and Moral Responsibilities a. Sales managers should be aware of three particularly relevant types of unethical acts: 1. Non role 2. Role Failure 3. Role Distortion. Even if you won’t get caught… you are responsible. Type Direct Effect Non role Against the firm Role Failure Against the firm Examples • Expense account cheating • Embezzlement • Stealing supplies • Superficial performance appraisal • Not confronting expense account cheating • Palming off a poor performer with inflated praise Even if you won’t get caught… you are responsible. Type Direct Effect Role For the firm Distortion Examples • Bribery • Price fixing • Manipulation of suppliers POOR PERFORMANCE Fixing is cheaper than hiring! DOCUMENT, DOCUMENT & DOCUMENT SOME MORE! IMMEDIATE & CONSTRUCTIVE ACTION BE SPECIFIC! Poor Performance Format For Handling STATE THE PROBLEM SECURE SR AGREEMENT LISTEN TO SR’s ASSESSMENT OF THE PROBLEM CONSIDER RELEVANCE OF EXTENUATING CIRCUMSTANCES DEVELOP AN ACTION PLAN GET AGREEMENT TO THE PLAN SUBSTANCE ABUSE SOME JOB FUNCTIONS CAN ACTUALLY FACILITATE THE GROWTH OF ADDICTIVE BEHAVIOURS (IF YOUR BIGGEST CLIENT IS AN ALCOHOLIC…) DETECTION ATYPICAL BEHAVIOURS SPREEECH (SLURRED SPEECH) MISSED APPOINTMENTS ODOR ABSENTEEISM TEST NEW EMPLOYEES HANDLING THE ABUSE (SEE: DOCUMENT, DOCUMENT..) ADDRESS IMPACT ON WORK BEHAVIOURS NOT THE ABUSE ITSELF. GET ADMISSION OF A PROBLEM Treatment is situation ally specific. Problem Salespeople? Disorganized Worried Wanda Aaron A Disruptive Influence? Grandstand Jordan Perfectionist Perfectionist Fearful Sim Pam Kev Excited Erik EXPENSE ACCOUNTS (SEE DOCUMENT, DOCUMENT..) $ $ • WRITTEN EXPLICIT POLICIES REQUIRED • ENSURE THERE ARE NO MISUNDERSTANDINGS • TREATMENT IS SITUATIONALLY SPECIFIC. $ $ $ $ UNETHICAL BEHAVIOUR (SEE DOCUMENT, DOCUMENT..) OVER SELLING MISREPRESENTATION OF COMPANY (& / or ITS POLICIES) Termination of Employment (SEE DOCUMENT, DOCUMENT..) FOLLOW POLICIES EXACTLY ADVISE & SEEK COUNSEL FROM YOUR BOSS & DHR When the decision is made, remember… This is not a discussion process but an informational meeting HARASSMENT (SEE DOCUMENT, DOCUMENT..) MANAGEMENT NOT IMMUNE WHEN SPEAKING TO AN EMPLOYEE, NEVER CLOSE YOUR OFFICE DOOR . WRITTEN EXPLICIT POLICIES ARE REQUIRED •BE VISIBLY PROACTIVE •CONTROL THE ENVIRONMENT ZERO TOLERANCE HARASSMENT AN EMPLOYEE ONLY HAS TO “FEEL” HARASSED TO MAKE AN ALLEGATION. THE PERCEPTION IS GUILTY UNTIL PROVEN INNOCENT THE FORGOTTEN RULE AS MANAGER, YOU CONTROL AND DETERMINE THE EMPLOYEES’ WORK ENVIRONMENT.