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by Geoffrey Brewer
Are you a leader? Or just a manager? What's the difference,
you ask? If you don't know, you're probably in the wrong job. A leader
energizes and motivates a sales force to achieve seemingly impossible goals. A
manager makes sure the sales process works. A leader has a powerful sense of
mission and purpose. A manager makes sure all reports are in on time. Leaders
innovate. Managers...well, they manage. Lest you think this is a bunch of New
Age business-seminar babble, know this: in the twenty-first century,
understanding the difference between leading and managing is understanding the
difference between winning and losing in cutthroat markets. "Global
competitiveness is so intense today, and there's so much sameness in products,
that you will succeed or fail ninety-eight percent of the time because of your
company's people," says Herbert Greenberg, founder and CEO of Caliper, a human
resources consulting company in Princeton, New Jersey. "And the quality of the
people in a sales force comes down to the quality of its leadership. Pure
managers make the system work, but leaders make things happen. They make the
people around them better."
Put in more practical terms: "Every time you hire a leader
who doesn't maximize people's potential, you lose market share," says Tom
Black, president of Private Business Inc., a Nashville-based software company.
Sales & Marketing Management recently
commissioned Caliper to conduct a survey aimed at identifying the personality
traits of great sales leaders. In this exclusive study, Caliper assessed the
attributes of 172 sales executives—some of whom are quoted in this story—from
105 companies representing more than 50 industries. Those executives were
selected for study by their supervisors because they were the best leaders in
their organizations—"the kind of people senior management would like to clone,"
Greenberg says. Caliper found that, as a group, the best sales leaders shared a
number of key personality traits—such as a sense of urgency, openness to new
ideas, and a desire to take risks.
If you're an executive who not only leads a sales
organization, but hires and develops other leaders, it may be time to assess
yourself. Evaluating your own leadership capabilities is every bit as important
as analyzing sales territories and crafting compensation plans—arguably more
so. After all, you weren't put in that corner office to manage—you were put
there to lead. "One of the distinguishing characteristics of great, enduring
organizations is that they put a lot of thought into the development of
leadership," say Jim Collins, who should know something about leadership. He's
the co-author of the acclaimed Built to Last: Successful Habits of Visionary
Companies.
You can begin to put thought into this subject by asking
yourself whether you and the executives you hire possess the following seven
key leadership traits identified by Caliper's study:
1. You Must Be Assertive
There's a lot of talk these days about how sales executives
must be great coaches and counselors. How they must coax, cajole, and, in some
cases, coddle their reps. Never, ever, are they to command.
Puh-leez!
You know it, we know it, and the Caliper study reveals it:
The best leaders are still the ones who know when—and how—to get tough. They
know how to assert their authority. "Assertiveness is the backbone of
leadership," says Jim Marcrum, group vice president of D.A. Stuart, a specialty
chemicals company in Chicago. "If you don't stand up for your own beliefs and
goals, you can't expect anyone to follow. Wishy-washy people don't make good
leaders."
Raymond McDermott, vice president of sales for Sentrol Inc.,
a security equipment maker in Tualatin, Oregon, says he has no problem being
assertive when the situation calls for it. "I believe in being direct about
issues and problems—I don't put off situations and let things fester," he says.
McDermott recently had to confront one of his managers who, he felt, was not
spending enough time on the road with his reps. The manager had said he wanted
to spend more time with his family. Bottom line: The manager was out with reps
50 percent of the time; McDermott needed him to be on the road as much as 80
percent of the time.
"I sat down with him in my office and clearly explained that
I understood that his family is critically important," McDermott says. "But I
also reminded him that this is the job he took. I said to him that if he wants
the money—he's paid very well—and the prestige, then he has to be out in the
field with his reps to do his job successfully."
McDermott offered the manager another position in the
company, one that would have been more administrative. "That's not his forte,
and I knew that, but I wanted to give him a choice," he says.
According to McDermott, the manager didn't like the
conversation. But he wanted to keep his position, so he got the message. "He's
now doing what I asked him to do—no conflict, no argument," McDermott says.
2. You Must Possess Ego Drive
Ego drive is the desire to persuade. And if you didn't like
to persuade people—if you weren't thrilled with getting the "yes"—you wouldn't
be in sales in the first place. Salespeople live to convince customers to buy.
But sales leaders aren't just interested in persuading clients, they're driven
to convince reps to take action.
Dennis Kinard, regional vice president of GBS Printed
Products & Systems Inc., a business forms company in North Canton, Ohio,
gets a rush when he convinces his reps to boost their performance. "I like to
see my employees succeed, and I get a real sense of satisfaction out of
persuading them to do better," Kinard says. "I'm only as good as they are. My
results are measured on theirs."
Kinard manages a salesperson who's been a top performer with
the company for 13 years. But last year, the rep's sales fell off largely
because some of his key accounts had gone out of business. Rather than
cultivating new business, though, the rep simply bemoaned his bad luck, and let
his performance plummet.
Kinard scheduled a performance review with the rep in
January. He saw the meeting as an opportunity to persuade the rep to start
generating new business. "I sat down with him over lunch and didn't highlight
the fact that his numbers were down and that he could be in jeopardy—that
would've been the typical management approach," Kinard says. "Instead, I told
him that he has the ability to perform better, that he'd proven himself in the
past, and that he was probably one of our best reps at cold calling. I told him
if he utilized his talents for cold calling, everything would turn around for him."
To put the rep at ease, Kinard chose to conduct the review
over lunch rather than in his office. "I feel it's really important, whenever
you're coaching or counseling someone, to get in a comfortable environment," he
says.
According to Kinard, the rep responded "positively" to his
approach—he didn't feel attacked or put down. And the meeting produced
immediate results: In March the rep had his best month in two-and-a-half years.
3. You Must Possess Ego Strength
It's been said that great sales professionals are like Hall
of Fame baseball hitters—they succeed only one out of every three times they
come to the plate. When a rep loses a sale, he has to have the ego strength
that allows him to maintain his optimism and move on to the next call, lest a bad
attitude hamper his performance. Sales leaders have an additional burden: Not
only do they have to bounce back from rejection, they have to make sure their
reps rebound, too.
And sometimes that rejection can be hard to take. Just ask Timm
Hayes, national sales manager for D. A. Stuart. He, along with one of his area
managers, a rep, and a product manager for the chemical company, lost a $2.5
million deal earlier this year. "We felt a huge letdown—it was heartbreaking,"
Hayes says. "We thought we were in the driver's seat, and when we found out we
weren't, we were shocked." D. A. Stuart had been in touch with the prospect for
more than two years.
Hayes' first step in handling the rejection was simply to
cope with the emotional impact. "I asked my team how they felt about it on a personal basis," he says.
Within a day of the rejection, Hayes and his team met again
with the prospect and asked for feedback on why they lost the sale. "This is
something I try to build into my sales force, that if you don't get to the next
step with the customer, or if you lose a piece of business, it's not
unreasonable to ask why you failed." While Hayes feels that some of the reasons
the customer gave were "bogus," he concedes that perhaps his team hadn't formed
a strong enough relationship with the prospect company's key contacts.
Within a week, Hayes met with his team to evaluate what it
felt it did right, and what it could have improved. "I first wanted us to
reflect on what we had done right, because it's important to take stock of
this," he says. "Then we reviewed our weaknesses. One of the areas where we
thought we were weak was that perhaps we hadn't been thorough enough in our
presentation to the prospect," he says.
Whatever the situation, the key to getting reps to cope with
rejection, Hayes says, is to help them quickly put it into perspective. "I tell
them that we have to evaluate our performance, and then move on," he says.
"Rejection is a part of the game in sales. Losing a sale won't end their
careers, I tell them. They have to learn from their mistakes."
It's an approach that makes his salespeople feel better. "Timm
understands the business, and he understands rejection, because he's been in
the trenches," says the rep who worked on the lost sale (he asked not to be
identified). "He's extremely positive, and he helps us stay positive."
4. You Must be a Risk-Taker
In a competitive marketplace, the winners are often those
leaders who are willing to "try, dare, even make fools of themselves,"
Caliper's Greenberg says. "In sales, leaders are always taking risks. Should
you hire this person, make that deal? With so much sameness in products, the
leaders who do the tried and true—who are risk-averse—will let the world pass
them by."
In some cases, taking on a new client can be a risky
proposition. Greg Whitman, marketing and client services manager for Pace
Analytical Services, Inc., a Minneapolis-based environmental services
laboratory, saw six of the top managers at a customer's firm leave the company
to start their own environmental consulting business last year. (Pace's
customers are consultants and businesses that need chemicals analyzed for
compliance with environmental regulations). At first, none of Pace's
competitors wanted to sell laboratory services to the new firm before it had
established a track record. "The environmental field is such a stressed economy
that it can be a big problem getting paid for the work we do," Whitman says.
"None of the other labs wanted to do business with them without a credit
check."
Whitman, however, saw opportunity where others feared to
tread. He had done business with one of the principals at the new company and
trusted him. "I sold him our services on a handshake a week after they had
started their business because I knew he was good for his word," says Whitman.
He admits that he was grilled by skeptics in Pace's accounting department as to
why he would make such a deal without running a credit check. "I told them I
knew the guy and that I had a good gut feeling," he says.
Whitman clearly risked embarrassment, but his gamble paid
off. The new firm paid its first bill within 30 days and continued to send Pace
work during the next year. What's more, the consulting firm has grown rapidly,
from one office with six employees to four locations with 60 employees. "We do
laboratory work for all of their offices," Whitman says, noting that Pace has
already garnered $200,000 in business from the new client.
"I knew that if I took a risk with the firm and others
didn't, [the principal] would remember that I had shown faith in him, and that
he'd repay me by doing more work with me than with the competition," Whitman
says. "From time to time, you have to take risks."
5. You Must be Innovative
Hand in hand with being a risk-taker is being innovative.
Great leaders know that the "old ways" of doing things aren't always the best
ways—especially in a rapidly changing marketplace. "It's critical in the
twenty-first century that you stay open to new ideas, because things aren't the
way they used to be fifteen to twenty years ago," says Hayes of D.A. Stuart.
Case in point: Hayes manages a rep, Paul Dyne, who last year
formed a close relationship with a major account. The client had shown interest
in doing business with multiple D.A. Stuart offices around the world. Dyne
asked Hayes if he could act as the manager of the account, since he was the one
who brought the client into the fold. This sounded fine, but there was a
problem: D.A. Stuart's salespeople are organized geographically. If Dyne, who
is based in Texas, managed accounts in other regions, salespeople in those
regions would feel encroached upon. Indeed, an Indiana rep openly questioned
what was in it for him if Dyne managed the account in his state.
"This business wouldn't have existed if Paul hadn't brought
it in, but at the same time, we didn't want to step on the Indiana rep's toes,"
Hayes says.
Hayes solution: Dyne would manage the early phases of the
relationship with the client in such states as Indiana, Alabama, and Missouri—and
he'd be rewarded for transactions made during those phases. Over time, Dyne
would then turn over the business to local salespeople. D.A. Stuart would, in
turn, reward him with a higher commission rate on all business he does. "We'll
never take his higher commission rate away," Hayes says. "This is a reward for
having formed this relationship."
Hayes considers his solution an innovative one at D.A.
Stuart, "A few years back, we would've said to Dyne, ‘No, that's not your
territory—there are geographical guidelines we must follow,'" he says. "But we
decided to go against the grain. We saw an opportunity for the company to grow.
As a result, we have a major relationship with a manufacturer. We're putting
together a national contract that no one is competing with us for. This is
going to turn into a national and international account."
6. You Must be Urgent
In a customer-driven marketplace, the need to get things
done now is critical to winning and keeping business. Wait until tomorrow to
submit that proposal, and a hungry competitor might get in the door ahead of
you. Leave at 5:30 instead of staying late to address a client's problems, and
that client may be someone else's before long.
Sales leaders know this, which is why they constantly
communicate urgency to their staffs. "Everyone understands the importance of
urgency, but few people in sales management really have it," Marcrum of D.A.
Stuart says. "In my opinion, urgency is almost like the continental divide that
separates great leaders from just managers."
When Sentrol recently discovered that one of its security
products had a manufacturing defect, McDermott arrived at his Oregon office at
six in the morning the next day so that he could contact distributors across
the country to explain the problem and recall the product. He made sure he
walked around the office that morning, too, to convey the urgency of the
problem to his early-bird sales reps, who were already working the phones.
"I lead my salespeople by example," he said. "They know I
was the only vice president here at six dealing with the problem. They know I'm
serious about this."
Whitman recently had to convey urgency to his staff when
Pace's labs won a large project to perform ground water analysis for a joint
venture between two oil companies. "I told my sales rep and project managers
that this was a high-profile project and it was a highly competitive bid,"
Whitman says. "I wanted them to know that we were going to show the client that
we could work on this quickly. If we could get our foot in the door with this
client, there would be a long-term benefit for all of us."
So before the ground water samples arrived, Whitman cleared
his lab's workload and set up double shifts straight through a weekend—an
unusual move for Pace. As a result, the lab completed the project in five
days—the client had thought it would take ten.
For Whitman, the benefits were two-fold: The client has
given Pace additional business—the lab has already garnered half a million
dollars from the account—and the project set a new standard of speed and
efficiency for the lab. "We proved to ourselves for that week that we could
double our produtivity and do more than we could ever do," Whitman says.
But Whitman cautions against urgency for its own sake. He
says he has to "pick and choose" when to be urgent, lest his staff burn out.
"Not everything is an emergency," he says. "Just because a client is having an
emergency, doesn't mean it has to be an emergency for us. We want to feel a
sense of urgency, but we can't do it for every project."
7. You Must be Empathetic
Sales leaders are tough, driven, daring. But they also have
a heart. They possess as much compassion as they do competitive fire. "I think
that every salesperson wants to know that their boss is an advocate for them,"
says Black of Private Business.
Earlier this year, Paula Gerhold, manager of sales for Walt
Disney Attractions Inc. in Orlando, met with two new reps at the company's
national sales meeting. The reps, Carrie and Marcy, wanted to
discuss their idea for running co-op advertising with regional travel agencies
in a travel magazine. The salespeople were enthusiastic about the project, but
hadn't really thought it through. For instance, they lacked essential
information to initiate the project: the publisher of the magazine, the
deadline for producing the ad, mechanical specifications, etc.
"A bad sales manager would have slapped their hands for what
they didn't know," Gerhold says.
But she took a gentler approach. Gerhold told them that she
shared their enthusiasm but that they needed to gather more information, which
she clearly spelled out. "As someone new to Disney, I was feeling overwhelmed,
and Paula helped build my confidence," Carrie says, "She had a true
understanding of what I was going through."
Carrie and Marcy returned to Gerhold soon after with a
detailed plan for the ad campaign. "I thought they had a brilliant idea, and I
didn't want to squelch their enthusiasm," Gerhold says. "It's just that reps
sometimes have enthusiasm but not a lot of details. Being an empathetic leader
means listening and understanding, and helping them to understand," she says.
But Gerhold knows that an effective leader isn't just a
shrink or a cheerleader. "Being empathetic," she says, "also means getting your
people to take action."

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