HOW TO MANAGE SALESPEOPLE
Forget the glad-handing stereotypes. What these folks do is
often more complicated than even they realize.
Oh salesmen and women, can enough be said in praise of you?
You are an elite. To be sure, executives often get paid more, and
the munchkins who make the product deserve a certain respect. But
who sees to it that the foreplay of commerce is finally
consummated, with money changing hands? Salespeople. Who is it,
braver and freer than the typical company apparatchik, who goes
out alone to confront the dark forces of rejection? Salespeople.
Who is it that everyone else in the enterprise depends on
ultimately for the realization of the corporate hopes and dreams?
Yes, salespeople. To mangle a borrowed phrase, salespeople are
where the rubber meets the sky.
Unfortunately, the people at the top, immured in the
executive suite and far above the battle, too often forget this.
Ditto for underlings who occasionally rub up against the elite.
Indeed, even sales managers, themselves almost always former
sales representatives, sometimes lose their sense of the majesty
and mystery of it all. Herewith a little remedial instruction on
the nature of the wondrous sales beast and how to get the best
from him or her.
Controversy still attends the question of whether
salespeople are set apart by a distinctive psychology. For years
companies have tried to isolate personal characteristics
predictive of a knack for selling. But to no avail, maintains
Richard Berlet of Triad Consultants, a Chicago firm specializing
in sales force compensation: "Most of the evidence indicates
there's no way to screen people to determine who will be
successful." Says Derek A. Newton, a professor at the University
of Virginia's Darden School: "I have spent 700 or 800 days of my
life accompanying sales reps on calls, and about the only
generalization I can make about the good ones is that they have a
desire to sell and quick intelligence."
Other experts are less reticent about suggesting a few
traits common to the sales breed. Says Bernard Cullen of Charles
River Consulting, which helps companies with sales training: "In
managing salespeople, the key thing is understanding that they
really value their autonomy and independence." Enough in many
cases to take jobs that can keep them on the road, and away from
family and colleagues, for long periods. On the other hand,
Cullen observes, "they need goals set for them with a maximum of
clarity," goals to measure themselves against in their drive for
achievement.
Still other experts point to the considerable
ego strength, or reserves of self-esteem, that the job demands.
Robert L. Berl, a marketing professor at Memphis State and a former salesman,
testifies: "As a sales rep you get one hell of a lot more noes than
yeses, and you can't take the noes personally." Put all the
traits of a successful salesman together, a wiseacre double-dome type
might argue, and you get a self-starting hard-charging paragon of
a go-getter, almost a mythic American figure, with one perhaps
characteristically American vulnerability: a willingness, indeed
eagerness, to be judged according to a dollar-and-cents standard.
Or maybe on that and his golf score.
And what of the salesman's fabled bonhomie, the Willy Lomanesque
emphasis on the importance of being liked? Wildly overblown the experts
say, part of a dated stereotype that may have contained some truth 50
years ago but that bears little resemblance to today's man or woman selling,
say, computer systems. Argues Cullen: "People who are out there on their
own, not under the immediate scrutiny of management, have to exert a high
level of control over themselves. Getting your paperwork done at night
when you're on the road takes discipline."
Too much bonhomie can make for bad sales performance. Cullen
again: "The average salesperson falls down by getting too
involved in the relationship with the customer, so involved he may forget
to close the deal. Or he will end up championing the customer at the
expense of his own company." He might complain, say, that only he
really cares about the client, or make nasty cracks about the
Order Prevention Department.
What does work for a salesman is, apparently, extraordinary
adaptability. "The best salesmen are able to deal with lots of
different situations," concludes University of Florida professor
Barton A. Weitz, who has done extensive research on the subject.
Confront them with a hand-buzzer-and-whoopee-cushion purchasing
agent and they will yuk it up. Put them face to face with a dour
CPA type and they will talk the numbers soberly and expertly.
"They are chameleons," says Weitz. Does this make them manipulative, as
some critics charge, always ready to shift masks to gain
advantage? No, Weitz maintains: "They don't do it consciously."
To manage sales types, good and bad, you have to be able to
live with paradox. For starters you need to respect their independence,
trusting them even though they are out of sight, as they
will be most of the time. "If you are a worrywart, you probably
won't find sales management a rewarding job," says professor
Newton. At the same time, you must realize that your reps do
require management, even the best of them. In fact, many hunger
after the right kind.
The right kind, in a word, is coaching, a notion that seems
to have been around in sales management for years but only recently
has caught on in the general literature on how bosses should
behave. This does not mean, of course, that sales managers have
actually practiced what was preached to them. No, their most
common mistake, the experts say, continues to be confusing "Let's do it
together" with "Watch my smoke": Sales manager and rep go on one
of the subordinate's calls together. Rep gets into a little trouble.
Instead of letting the tyro make mistakes and helping him learn
from them, the manager, himself probably an ace salesman, steps
in to save the day with his incomparable technique. Sadly, by then
the rep is probably too flustered and abashed to learn anything from
his boss's display.
Better for the manager to help plot a strategy for the call
beforehand. He can then go along in a capacity that, in
Anglo-Saxon judicial councils, went by the name oathhelper, that is, a
supporter of what the principal speaker has to say. Afterward the
manager can praise the subordinate for what he did right and
focus on one bit of behavior to be improved. Just one, the experts
emphasize; the rep will remember little or nothing from a battery of
suggestions.
Managers, and companies in their sales training programs,
also must be careful not to coach reps to do the wrong thing. Here
much error arises from confusing two richly different phenomena: the
simple sale, which may be completed in one encounter--say, at the
front door or just possibly in a used car lot--and the complex
sale, which entails more than one meeting. Maybe the foremost
expert on the difference between the two is Neil Rackham, an
Englishman who says his Huthwaite research firm in Purcellville,
Virginia, has spent 15 years sitting in on and analyzing 35,000
sales calls.
What proves effective in making a simple sale, including
some precepts enshrined in the abundant how-to literature, may spell
death to a complex sale. Take closing, says Rackham, who has done
some 20 separate studies of the art of asking for the order. "If
your people are doing small sales, then teaching them closing
techniques will improve their success rate," he says. "But if you
use the same closing techniques in large sales, it damages your
hit rate." Why? "There are good psychological reasons," says Rackham.
"If you pressure somebody for a small decision, they are likely
to give way. But if you pressure somebody for a large decision, it
creates counterpressure."
You will also want to give your reps straight dope on the
company's product strategies, which would seem a no-brainer if it
weren't for all the enterprises that fail to do it. Says Robert Bardagy,
executive VP for marketing at Comdisco, the big computer-leasing outfit:
"You have to keep them apprised of the corporate direction. They should
feel that even though they're not at the central office, they're part of
the process." It helps, too, if you give the troops some latitude to dicker
on terms within boundaries set down by the strategy. Consultant Jerome
Colletti of the Alexander Group maintains, "Salespeople have to be price
negotiators, not just price quoters."
And how do you reward them for their efforts? Yes, you can
pay them on a commission-only basis, particularly if you just want
them to ring as many doorbells as possible. But don't expect much
managerial leverage that way. The sales staff will simply sell
the products they have always had the most success with. What they
probably won't do: push new offerings that, while more important
to the company, are harder to sell; spend a lot of time providing
follow-up service to customers; take time to cultivate new prospects.
If you hope to have some say in what your salespeople do,
you will have to treat them, in this one respect, like other
employees: You will have to pay them a salary, which you then can
supplement with commissions or a bonus. But you must also
continue to lavish attention, praise, and even love on these, the workaday
heroes of capitalism. It's only their due.
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