tips for business owners who want to be effective … tips for helping business owners become more...

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In many businesses, the owner is also the sales manager. Adding sales management to the job of overseeing the entire business can be daunting, espe- cially when sales are slow and sales reps need extra attention. This article provides some prac- tical tips for helping business owners become more effective in managing their sales force. The process of becoming a better sales manager starts with an understanding of the universal obstacles. Sales reps, who have not experienced the benefits of effective management, are usually hostile to being managed. They resent the paperwork and procedures imposed by the company. They would prefer to be left alone and are not shy about voicing their complaints. Additionally, owners frequently feel entitled to top performers who never need to be managed. Inevitably, they get frustrated with under-performing, non- responsive sales reps. Since the owners may not be familiar with effective management tech- niques, they resort to a more aggressive version of the same ineffective techniques they were using before. This, of course, only creates more hostility. Or, they become intimidated by the complaints of the reps and find it easier to avoid sales manage- ment all together. Unfortunately, this lack of communication usually results in a downward spiral. The good news is that owners who learn how to manage the sales force find out that people actually enjoy being well man- aged. They work harder and smarter. They're happier. The increased morale and productivity reduce turnover. Their enthusiasm is contagious. Prospective customers get more excited and are more likely to commit sooner and for more dollars. After the sale, customers get better service, stay loyal longer and buy more products and services. Here are five suggestions for overcoming the obstacles and managing your sales force more effectively: 1. Take responsibility for the performance of your staff. Owners should stop automati- cally blaming the sales reps for their less-than-stellar perform- ance. They do not necessarily have a character defect and are not inherently lazy. More often, sales forces fail due to inade- quate leadership. Rather than thinking, "They're not getting it,” perhaps you're not giving train- ing, motivation and structure. It's been our experience that most people can dramatically improve their selling when they are supported by leaders who take responsibility for providing the necessary tools. 2. Open and maintain quality lines of communication. A sales force must be in constant contact with manage- ment. Owners need to know the status of the sales effort and garner insights from the field. Sales reps need to be updated on changes in products, services and systems. They also need to learn new sales techniques. Since no one wants to waste time, the meetings should not be too frequent and must have a clear agenda. We recommend that each sales rep have at least one private meeting per month with the owner. The meeting can be brief and give both owner and sales rep an opportunity to bring each other up to date. The meeting can be conducted via telephone to make it easier to implement. The sales force should also Tips for Business Owners Who Want to Be Effective Sales Managers By Harriett Greenbaum and Lawrence Kohn

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In many businesses, the owneris also the sales manager.Adding sales management tothe job of overseeing the entirebusiness can be daunting, espe-cially when sales are slow andsales reps need extra attention.This article provides some prac-tical tips for helping businessowners become more effectivein managing their sales force.

The process of becoming abetter sales manager starts withan understanding of the universalobstacles. Sales reps, who havenot experienced the benefits ofeffective management, areusua l l y hos t i l e to be ingmanaged. They resent thepaperwork and proceduresimposed by the company. Theywould prefer to be left alone andare not shy about voicing theircomplaints.

Additionally, owners frequentlyfeel entitled to top performerswho never need to be managed.Inevitably, they get frustratedwith under-performing, non-responsive sales reps. Sincethe owners may not be familiarwith effective management tech-niques, they resort to a moreaggressive version of the sameineffective techniques they wereusing before. This, of course,only creates more hostility. Or,

they become intimidated by thecomplaints of the reps and find iteasier to avoid sales manage-ment all together. Unfortunately,this lack of communicationusually results in a downwardspiral.

The good news is that ownerswho learn how to manage thesales force find out that peopleactually enjoy being well man-aged. They work harder andsmarter. They're happier. Theincreased morale and productivityreduce turnover. Their enthusiasmis contagious. Prospectivecustomers get more excited andare more likely to commit soonerand for more dollars. After thesale, customers get bet terservice, stay loyal longer andbuy more products and services.

Here are five suggestions forovercoming the obstacles andmanaging your sales force moreeffectively:

1. Take responsibility for theperformance of your staff.

Owners should stop automati-cally blaming the sales reps fortheir less-than-stellar perform-ance. They do not necessarilyhave a character defect and arenot inherently lazy. More often,sales forces fail due to inade-

quate leadership. Rather thanthinking, "They're not getting it,”perhaps you're not giving train-ing, motivation and structure. It'sbeen our experience that mostpeople can dramatically improvetheir sell ing when they aresupported by leaders who takeresponsibility for providing thenecessary tools.

2. Open and maintain qualitylines of communication.

A sa les fo rce mus t be i nconstant contact with manage-ment. Owners need to know thestatus of the sales effort andgarner insights from the field.Sales reps need to be updatedon changes in products, servicesand systems. They also need tolearn new sales techniques.

Since no one wants to wastetime, the meetings should not betoo frequent and must have aclear agenda. We recommendthat each sales rep have at leastone private meeting per monthwith the owner. The meeting canbe brief and give both owner andsales rep an opportunity to bringeach other up to date. Themeeting can be conducted viatelephone to make it easier toimplement.

The sales force should also

Tips for Business Owners Who Want to Be Effective Sales Managers

By Harriett Greenbaum and Lawrence Kohn

meet monthly to discuss needs,obstacles and best practices.Everyone can provide sugges-tions for creative approachesand efficient processes.

Both the individual and groupmeetings must be conducted inan energetic, positive way with as incere desi re to providepositive support. This is not atime for soapbox lectures, brag-ging, fear- mongering, shamingor guilt tr ips. Boring and/ornegative meetings will be metwith justifiably strong resistance.

3. Set clear expectations.

Lack of performance is often theresult of an insufficient under-standing of the assignment.Owners must be precise aboutthe details of their expectations,i.e. strategies to be implemented,number of calls to be made andrevenue goals to be met.

One concern is that people don’tlike being held accountable,which they know the employercan easily do, once clear-cutexpectations have been set.

The solution is for the owner andeach sales rep to reach agree-ment on the expect at ions.These expectations should be a“stretch,” however, the rep mustconsider them achievable orthey won’t even try.

4. Provide recognition

Too often, owners believe thatcompensation alone is adequaterecognition. The fact is mostsales reps, even stellar performers,need more than money to feelmotivated. They need to feelappreciated, respected andconnected to both the ownerand the company.

There are obstacles to providingrecognition. Business ownersmay not be familiar with recogni-tion techniques. They may notfeel comfortable giving recogni-

tion. Or, they are not sure howto cus tomize recogn i t i onfor individual employees.

Techniques for showing appreci-ation always include a sincerethank you or sincere congratula-t i ons and can happen i nconjunction with everythingfrom a handshake to monetaryrewards.

To recognize a person ade-quately, owners really have toknow their sales reps - what theylike, what their interests are.This requires an investment oftime. The investment of time inlearning about sales reps isseen as being caring, respectfuland appreciative. Once ownersknow what motivates a rep,they will find it easier to giverecognition.

5. Establish a "CommitmentCulture."

Owners must create an environ-ment in which everyone lives upto the commitments they make.This may appear difficult in mostcompanies because peoplehave failed to live up to theircommitments so often that itappears as though failure tofo l low-through is s tandardoperating procedure.

To solve this problem, ownersmust embrace a zero tolerancefor failure to live up to commit-ments. Everyone must beinformed about the new policyand educated about the dramaticb e n e f i t s o f c r e a t i n g aCommitment Culture. Living upto commitments builds trust.When people can trust eachother, they can feel more confi-dent in their ability to servecustomers. That results in moresales as well as a more pleasantworking environment.

To c r e a t e a C o m m i t m e n tCulture, everyone must benotified that all commitments areto be taken seriously. An agree-

ment to implement even thesmallest task is a commitment.Remind everyone that trust isbuilt in small steps.

Since every agreement is acommitment, everyone mustlearn to give adequate consider-ation prior to making a commit-ment. People need to get clearabout the details. What are thequality standards? Who shouldbe in the "loop?" What is thedeadl ine? In most cases,commitments will have to benegotiated to meet the needs ofeveryone involved. Of course, ifcircumstances arise that derail acommitment, people need tolearn to notify the affectedparties instantly, and negotiatenew commitments at that time.Procrastinating to notify peopleabout the potential of not meet-ing commitments hurts credibilityand weakens a CommitmentCulture.

Conclusion:Performing the duties of a salesmanager requires clarity, skills,patience, and persistence. It iseasy to become frustrated withthe pressure and the personalities.However , by implementingthese five sales managementtechniques, business ownerscan create a supportive andmotivational environment inwhich sales reps, and subse-quently the company, canprosper.

Harriett Greenbaum andLawrence Kohn are

colleagues in Kohn Communications, a consulting firm that provides coaching to

business owners, executives,marketing directors, salesmanagers and sales reps.They can be reached at

310 652-1442 or you canvisit their website at

www.kohncommunications.com.