How to Manage Sales People in a Small Business
Posted by Teicko Huber on Wed, Dec 30, 2009 @ 08:47 PM
It's not rocket science to successfully manage salespeople. However for
the rocket scientist, completing the duties of his or her chosen
vocation may strangely come quite easily. While for the small business owner or CEO with sales people as direct reports,
dealing with all of the different personalities in his or her sales force may feel like they are trying to land on a new moon that doesn't even
exist. Check to see if you are unintentionally 'grounding' your sales
team by not having the following three topics mastered.

Fact Based Account-Giving
Behavioral
management is not glamorous work. This is why setting mutual activity
goals between you and the salesperson is a must. If your management
style happens to be a "sell this much each month or your fired"
approach, you may have noticed your churn rate is unacceptably high.
While it's absolutely necessary that you do meet your sales forecasts,
you must manage the 'means' in how it's accomplished. And when sub par
performance is demonstrated, you must be clear in your communication
with the salesperson that this is not acceptable. First with a warning,
then reprimanding them if it happens again, and as a final step,
letting them go if necessary. There must be no ambiguity here. What you
need to know are the actions required to be done on a daily, weekly,
and monthly basis to achieve your revenue targets. Only then, will you
have the insight and clear understanding of why your sales team members
are coming up short each month.
Coach, don't Referee
It seems
a lot of coaching energy expended by business owners and CEOs that manage sales people is pre-sale
consulting and some 'hand holding' throughout the sales process. The
old adage 'each time you point your finger at someone else, there are
three pointing back at you,' is often the case with ineffective
coaching. Ideally, you would be meeting with your reps daily. Are you?
If not, it may be time to re-prioritize how your time is spent each
day. Your job is to dig deeper and identify the strengths and
weaknesses of each sales person (and that of your entire sales force).
You must identify and remove roadblocks, clean up the debris, and make
the formerly 'less traveled' road to success more accessible.
Motivating "Don't believe the hype that salespeople are self motivated"
What
motivates you? Most likely there is an emotional component or a 'dream'
associated with the activities you choose to do on a daily basis. If
you learn how to inextricably link activity goals together with a
salesperson's dreams, you will definitely see an increase of the
desired revenue producing behavior. It's very important that you as small business owner or CEO with salespeople reporting to you to see and understand the psychological underpinnings of each
salesperson.
If you're unfamiliar with motivational concepts such
as intrinsic and extrinsic motivation, it would behoove you to start
learning. For example, if someone is intrinsically motivated by
satisfaction of a 'job well done' versus the paycheck that comes along
with this achievement, then it's certainly not a best practice to begin
your motivational talk discussing the commission generated from the
sale. Surely, they already understand the benefits of financial
compensation. Growth starts with understanding, period.
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