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Friday, August 5, 2011

Should A Sales Manager Carry A List?

by Sean Luce

The answer is a definite "yes." A sales manager must lead by example. Many managers believe the position requires only supervising and coaching, but a sales manager's duties often remind me of the Battle of Midway. During the battle, American squadron commanders led the way to the Japanese carriers so the pilots could stage their attack. In my opinion, sales managers have a duty to lead their troops into battle -- and a successful sales manager knows what is occurring at headquarters as well as on the battlefield.

Listed below are several questions I am frequently asked about the function of a sales manager.

Why should a sales manager have a list?
As stated above, it is crucial that the manager know what is happening in the field. In fact, the sales manager position is one of the toughest jobs in media because it requires leading from the front. Yes, the job description includes coaching, training, nurturing,  recruiting, and developing the reps. But the description also includes leading. Of course, situations will vary, but few sales managers can lead from behind a desk. To successfully train a rep on the numerous situations encountered in the field, the manager must be with them, and preferably in front of them. A sales manager should allocate no more than 20 percent of his or her weekly time to a list, or roughly one day a week, and can use house accounts as part of the list. Those house accounts can potentially be given to new reps as their skills develop.

Is it a matter of economics?
Some radio stations will use the sales manager's position to avoid paying commission to the reps. But housing an account for the sake of economics can eventually lead the client to the competition. Giving the house accounts to the sales manager is acceptable, as long as the customers are not ignored -- the house accounts should see the same service as other radio accounts.
Should the sales manager actively prospect new business?
A successful sales manager is always looking for new business. Most of a manager's new business should come from referrals, and a manager who secures his or own referrals can personally instruct reps on how to find business. Textbooks and DVDs shouldn't be the only methods for teaching prospecting; the sales manager must take the lead. Why? Reps learn by example, and the manager should be the best example available.

The manager should make a list of three or four new businesses to call on each week. With appointments set, go out and do the needs analysis, put together a closing proposal, and bring it home. Leading by example will yield far greater results at the end of the day. Effective sales managers are the quiet ones that develop accounts and use those accounts to train their young reps. In some markets, a sales manager has as many sales on the books as the top biller. When that occurs, the position becomes more of a hybrid sales manager. And that's perfectly acceptable as long as that manager doesn't hog all the top accounts. Competing against one's reps is not a suitable method of managing.

Should a sales manager have a personal sales goal?
Absolutely. Managers can balance their time and have a list, but the overall goals of the department remain the number one priority. I prefer to see the department achieve its goals rather than just the sales manager hitting a personal target. But I see sales managers who are active in the field hit their overall sales goals along with their departments more often than not. Maybe there's a correlation.
My textbook tutor in management is Alexander the Great. I admire how he led his troops from the battlefront. He walked ahead of his troops and ate the same rations they did. He wanted to know how far and fast they could go. How fast and how far can your people go?

Sean Luce is the Head National Instructor for the Luce Performance Group in Houston, Texas and can be reached at Sean@luceperformancegroup.com.

(8/4/2011 8:23:41 AM)
Of course, there are exceptions to every rule or guideline. I interpreted Sean's article to say that the SM needs to be with his troops, and what better way than to have accounts of their own. I couldn't agree more. In my case, I find that personally calling on our clients has helped improve the systems at our stations. These changes came by me seeing "opportunities" on a regular basis- not just occasional sales calls with varied reps. Our stations are definitely better off because of the list that I carry.
- Shawn Marhefka- owner, operator, and sales rep(8/3/2011 11:30:24 AM)
Having done it both ways, I agree with the "no list for sales managers" method. Your time and management skills are critical to your teams success! Account work means less time for management but you CAN lead by example if you provide training that helps your people close more sales and develops more new business for them. Make calls with them for added support on tough clients. You are walking on thin ice when you divide your loyalties between the team and your clients.
(8/3/2011 9:27:09 AM)
And that's perfectly acceptable as long as that manager doesn't hog all the top accounts. Competing against one's reps is not a suitable method of managing.

Never, never compete agasint your sales team. It's a demonstration of leading and letting them you know you lead from the front. THere are many ways of doing this...the most effective is rolling up your sleves and getting out there with them. In some markets-major-this is mostly out of the question. However in small to medium size markets, it can be done where the staff might consist of 5 or 6 reps and the SM has to carry the load-as long as it doesn't carry him to over 20% of his work week. Having a list can keep you sharp. Just make sure you don't compete against them. It's a rare SM than can do this. Just keep sharp and don't lose your skills-the ones that got you the job in the first place. Happy hunting!Teach and train your people how to sell from experiences you learn in the field-they follow by you showing them how to do it. Sean

(8/3/2011 9:10:15 AM)
The key here is the size of the list. I am a sales manager and carry the same size list and have a the same personal budget as all the people I am managing. Simple math would say how can the people I manage spend 100% of their time and resources and a large part of my time and resources getting to their budget, yet I have a fraction of that time/and resource due to leading, coaching, negotiating, contract reviews, corporate meetings, etc., and am held to the same goals as the reps?!! Job change!
(8/3/2011 9:01:11 AM)
Sean--I believe that even in a good economy, this is a bad, bad idea--because it really demoralizes the "troops" (continuing your War 2 analogy).

I wonder if the sales managers at Pandora, FB, LinkedIn, and Google have "house", or "housed" accounts?

The average rep who is still in the business is making half what they did a few years ago. It's like stealing food from your children.


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