We hire sales managers to help develop, support, and grow sales activity and results. They are, in effect, force multipliers: one or more people in charge of producing sales results through the actions of multiple others. Because of the greater impact they have over a sales organization, sales managers have a far greater impact on an organization’s sales, growth, and survival than individual salespeople alone. In many organizations, it is not uncommon to see a 20 percent-plus increase in sales when a bad manager is removed. Additionally, great managers will commonly produce sales that are 20–30 percent higher than a company average. Putting these numbers together, by replacing a bad manager with a great manager, companies can potentially increase total sales by as much as 40–60 percent!2
So why do some sales managers succeed while many do not?
In 1906, an Italian economist named Vilfredo Pareto made an observation that 80 percent of the land in Italy was owned by only 20 percent of the population. This imbalance of distribution was later applied to many aspects of our lives and business and became known as “Pareto’s Law.” In many businesses today, Pareto’s Law commonly tells us that around 80 percent of our business comes from only 20 percent of our customers, and 20 percent of our people account for 80 percent of our revenues. In sales, it is also common to find that on average, only 20 percent of our salespeople account for 80 percent of our sales. This means that within sales organizations today, most have only reached 20 percent of their total sales potential. This is why effective and successful sales management is so important.3
The goal of this book is to help solve our sales management problems, develop more effective and productive sales managers, and help businesses grow. Depending on your own industry or organization, some or all of the following advice provided herein can be used to help make you a more effective sales manager and produce great results.
Are you ready to take your sales management career and results to the next level? If so, read on and enjoy…
—Chapter 1—
WHAT MAKES A GREAT SALES MANAGER
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“Today, a skilled manager makes more than the owner. And owners fight each other to get the skilled managers.”
—Mikhail Khodorkovsky
“Great managers are recognized through the achievements of their teams.”
—Phyllis Kirouac
“We have great managers who have never spent a day in management school. Do we have great surgeons that have never spent a day in surgical school?”
—Henry Mintzberg
Early in my sales career, I was always looking for the silver bullet; what did the great salespeople have that most others lacked? Like so many other salespeople, I focused in on the top sales performers to see what I could learn from them. What I found over time was that there seemed to be an inexorable link between great salespeople and those who led them. Notice I didn’t say who managed them—for there is an inherent difference between leadership and management, and in many instances this could change and so, too, could the results.
In sales, we’ve all had sales managers who we liked, those we didn’t, and those who simply produced. I have had many of each but my focus was always on those who produced. What I found interesting about the managers who produced is that they were far more goals and leadership oriented than typical managers. What I also found interesting was that much like on many successful sports teams, the mere presence of a single transformational leader could change the entire psychological makeup, focus, and outcome of an entire sales force.
Much like great salespeople, great sales managers are unique. Most organizations tend to promote and hire one of their own productive salespeople in the hopes that they will become a great sales manager. Few achieve this objective, while most do not. Great salespeople are often self-motivated, independent, and thrive without direction from others. Conversely, a great sales manager acts as a coach, knows how to motivate other salespeople to succeed, is in many ways selfless in action, is a good listener, and commonly puts the needs of their sales team above their own. Although salespeople and sales managers will commonly share some similar traits, they are inherently different in action.
So what are the qualities that make a great sales manager? Here is where to focus:
Top Five Qualities of a Great Sales Manager
1. Driven by Goals and a Need for Achievement
Most sales managers earn less than the top salespeople in many organizations. This means that the motivation for being a sales manager commonly transcends just money—otherwise they would continue selling. Great sales managers are typically highly goals and results oriented, which is a trait they will commonly share with salespeople. Where they differ is what motivates them to that end. Being organized is important, but not as important as being driven to achieve overall sales goals and objectives.
See Resources PDF: Salesperson vs Manager, page 1
www.thesuccessfulsalesmanager.com/p/tools.html
2. Extroverted and Good Communicators
In order to coach, you have to be involved, interactive, strategic, and supportive of others. People who are typically more introverted tend to communicate less and thus are less likely to provide and share information with others. Most great sales managers are high-energy and extroverted and will more readily relate to and respect people of authority who share these similar characteristics.
3. Can Manage High Levels of Stress
Being a sales manager can be a very stressful position in most organizations. Leadership is first and foremost the ability to lead by example. The ability of sales managers to effectively lead and produce when the high pressures of sales deadlines hit, when customers complain, and when products and services fail, etc. is critical. A great sales manager will typically be able to keep their cool under pressure, rationally and effectively communicate with facts instead of anger and fear, and will be able to set the right example for their sales team in the best and worst of times.
4. Can Work Well with Others
Unlike many sales positions, sale management is a team sport, and you need to be a strong coach to succeed. A great sales manager has to be able to effectively and equally deal with individual personalities, problems, conflicts, egos, goals, skill levels, and much more. To do this, you first must be an excellent listener. Second, you must be able to effectively solve problems and conflicts with others. Third, you must be able to put the needs of your people before your own—
including your need to want to personally sell yourself. Fourth, you must be actively engaged with your products, services, people, and processes, and demonstrate that you can lead by example. Salespeople will only follow and respect you if you can lead by example and make them feel as important as any other person in the company, including yourself.
5. Are Great Talent Managers
If meeting and exceeding your sales objectives is your ultimate goal as a sales manager, you cannot do it alone. Therefore, your number-one responsibility as a sales manager is to recruit and retain great salespeople. Great managers are always looking for top talent, even when their positions are currently full. They will consistently measure the talent they have and find ways to continue to improve it. Great managers will also seek out people they can reasonably improve, and continuously push them to higher levels of performance by moving them outside of their traditional comfort