There are many stories of promoting top sellers to sales manager only to find them floundering and unable to deliver the overall sales number. With loyalty to the incumbent companies…
What is the value of your sales leader to your business? A question that many CEOs consider when they are looking at lack lustre results or high staff turnover in sales. This blog post is a little confronting as it may hit some home truths, but it will certainly give CEOs something to ponder.
Recently I was sitting in a client executive meeting where a sales leader was reporting on their team’s performance for the last calendar year. The financial report demonstrated 94% achievement of sales goals and a reduction in profit margins. There was a staff churn rate of 27%. All having a cost to the business, directly and indirectly.
This is an increasing problem we are seeing in companies where their sales organisation has expanded but companies are following very traditional and dated structures. The habit of operating with legacies and tradition is pulling companies backwards and putting up unnecessary barriers to growth, from a human capital and financial perspective.
At some point in time a company will unfortunately be faced with an unfair dismissal claim. That exposure is increased significantly when it comes to sales employees.
A recent survey by Sales Focus International discovered 86% of companies embraced a sales management style that was a breeding ground for receiving complaints about bullying or unfair dismissal from sales employees.
For many years sales force leadership has been associated with big personalities, larger than life people that were loud with always a story to tell. Often those people frustrating the CFOs who are seeking revenue forecasts and over sales goal results, whilst also straining the relationship with the CEO and the strategy is always being undelivered.
The person you hire for the role of sales leader can define your organizations success or failure. They are the person that will set the standards of how everyone will operate within the sales organization and what performance will be delivered by everyone.