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Should the Sales Manager Role Carry an Individual Sales Quota?

  
  
  

Nearly 50% of Sales Managers will miss their team quota in 2012.

Are your Sales Manager's properly utilized to reinforce the Go to Market Strategy?  Why do so many Sales Managers miss quota? There is a myriad of excuses as to why Sales Managers miss their number.  Quota is too big, too many direct reports, not enough training, wrong talent, not enough leads, etc.  The number one factor is job corruption and misallocation of time.  Sales Managers typically spend 45% of their time on administrative tasks, internal meetings, and forecasting.  Knowing this, the remaining 55% of time must be laser focused on developing their direct reports.

Conversely, some may argue that the Sales Manager is the best sales resource and should therefore use a portion of this time to close big deals.  In other words, your Sales Manager should have some “Super Rep” responsibilities.  This strategy is focused on driving short-term revenue.

Typically, one Sales Manager oversees somewhere between 6 and 10 sales resources.  The multiplier effect of transferring knowledge to those resources is much more impactful than trying to be a Super Rep.  It is also a more sustainable approach.  If the Sales Manager leaves the position, so does the knowledge and skills he or she possesses.  Transferring knowledge leads to consistent long-term results and helps create a bench within the sales team for future promotion opportunities.

Below is an example of the activities a front line Sales Manager role should be performing on a monthly basis and the competencies required to be an effective leader and coach.

 Sales Management Monthly Activities:

Sales Manager Cadence 

Leadership Competencies:

  1. Decision Quality
  2. Strategic Agility
  3. Conflict Management
  4. Action Oriented
  5. Intellectual Horsepower
  6. Building Effective Teams
  7. Integrity and Trust
  8. Personal Learning
  9. Peer Relationships
  10. Organizational Agility
  11. Dealing with Ambiguity

These leadership competencies should be assessed when filling Sales Manager roles.  Notice that they are not focused on the leader's ability to sell, but instead focused on the interpersonal skills that translate to effective leadership and coaching skills.

Takeaway:

Shift selling activities out of the Sales Manager role that are not focused on team development as part of your sales force structure plan.  Build a cadence that ensure Sales Managers are using multiple coaching and training touch points to develop their teams. 

Once you assess a leader's competencies and define the role properly you need a process to onboard new leaders.

Attend our next webinar to learn more about onboarding leaders.

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Comments

Thank goodness for logic and common sense. "Rep"lication is the answer... Not super-selling. It's the path to geometric growth, rather than linear. Sadly, I have to argue this point with so many people, it amazes me.
Posted @ Wednesday, February 01, 2012 6:38 AM by Mike Kunkle
Mike, 
 
 
 
Thanks for the comment. I am interested in learning more about how you go about arguing the point. Are you typically successful? 
 
 
 
Thanks, 
 
Scott
Posted @ Wednesday, February 01, 2012 11:06 AM by Scott Gruher
Scott, I've used tried a bunch of different things over the years, but certainly have used the time-analysis technique you've referenced, and done the math on how much selling time the Manager has. Using their former level of production as a benchmark, I reduce it down to equate to the reduced time allotment. Then I compare that to the possibilities (using several reasonable projections) of what might happen if the manager can increase TEAM performance with that same time allotment, rather than selling themselves.  
 
 
 
Sometimes it works; sometimes not. Logicic doesn't prevail as much as I'd like.  
 
 
 
Sometimes, there are other organizational factors at play, where poor practices in one discipline lead to worse practices in another.  
 
 
 
In my current industry, for example, where we take people off the street and transform them (sometimes) into sales people, there is a prevailing belief that if the manager can't sell to demo, the new rep can't learn, and the manager also has no credibility.  
 
 
 
There's some truth to the former (I'd argue against the latter), but as you know, there's a difference between selling for demo/training purposes and carrying your own quota. And, if you don't have sourcing and selection right, and great training and coaching, too few of the new reps make it. in that case, if the former-top-producers-now-managers aren't selling, revenue drops. It's an ugly cycle, but if you haven't ever seen it done differently, you often don't believe it's possible to change it. (Or, as I've often seen... if you've tried to change it but didn't know how, you fail, and revert righ tback to the old way.) 
 
 
 
So, the question becomes, how to you turn a glass of Coke into a glass of water? Well, you can pour out the Coke and then pour in the water - poof, done! Or, like I often must do, you put the Coke glass under the dripping faucet and you have a glass of water in a week. Weird analogy, but you hopefully get my point. Personally, I prefer the first way. ;-)
Posted @ Wednesday, February 01, 2012 1:35 PM by Mike Kunkle
Too many CEO's believe in "Selling Manager" leadership roles. Much to their dismay, this is a prescription for failure. I once had a SVP of Sales tell me that my time if too valuable to coach/mentor my team and that I should be focused on driving larger enterprise business. I debated this with him...and I sure wish I would've had this article. It makes all the sense in the world!
Posted @ Tuesday, February 07, 2012 10:08 AM by Tim Koch
Jack will tell you, without any hesitation or doubt, that a Sales Managers role is NOT to sell, but to grow salespeople in quality and quantity.  
 
 
 
I've never seen an effective sales organization where the sales managers has a quota or the responsibility to sell. If they do, then they aren't sales managers at all...just a lead player on the sales team.  
 
 
 
If the sales manager focuses on obtaining and keeping great sales people, then their value will far outweigh their ability to produce sales. 
 
 
 
Just my two cents...
Posted @ Wednesday, February 08, 2012 12:27 PM by Gene Roberts
Tim & Gene, 
 
 
 
Thanks for the comments. Both of you are spot on. It amazes me that many of our clients continue to deploy Sales Managers as Super Reps and in turn neglect hiring, coaching, training, and development. 
 
 
 
Scott
Posted @ Wednesday, February 08, 2012 1:14 PM by Scott Gruher
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