Time for sales managers and sales system designers to get back to basics, new Krauthammer report finds.
In 2010 the battle for business continues, with salespeople on its frontlines. In line with this, Krauthammer, with the Groupe ESC Clermont Graduate School of Management, have devoted three research-based reports to 'sales signals'. This third and final report examines the role definitions of salespeople, sales systems and processes. It finds 84% of salespeople clear about their responsibilities, (despite some tension), less sure about their authority or their time management. And there are signs of under-resourcing, with 19% lacking the time, budget or manpower needed to fulfill their missions. The report also signals striking gaps in systems and processes, such as funnel management and sales metrics. And basic management routines appear under par - only 55% of salespeople surveyed experience sales meetings or reviews.
"The sales role should be viewed as a co-creation of salespeople and their managers, rather than being imposed by a techno-structure." comments co-author Professor Pascal Brassier, of Groupe ESC Clermont Graduate School of Management. According to Michiel van den Boomen, Krauthammer co-author, "Top sales companies are able to make people, systems and tools dance together to achieve sales effectiveness."
Overall findings:
• Role tensions: Role tension (conflict, ambiguity and overload) can be a source of stress1 Only around half (54%) of salespeople rarely or never suffer. The rest have some trouble. And whilst 76% rarely or never receive pointless missions, only 41% always or often have enough budget and time to fulfill them, 45%, enough staff. 19% always or often lack budget, time or staff.
• Role clarity: Overall, salespeople acknowledge that role clarity factors are in place (74%). Still, 26% have doubts. Around 80% know their overall responsibilities and objectives, however, authority and time assignment are clear to fewer people, around 70%.
• Systems and processes. Some vital sales management basics are absent, and many systems underperforming. Overall, 66% of salespeople say systems are in place. 10% simply don't know. Whilst a small majority finds them helpful (61% believe they support productivity), 9% disagree. 30% can't or won't say. In terms of management basics, targetsetting is often missing (27% say it isn't installed, or have no idea), and only 55% experience sales meetings and reviews, or a funnel management system and tools.
Simple messages for sales managers:
Time to get back to basics. Many "systems and processes" are fundamental management and coaching routines in disguise. Target-setting, personal development and appraisals, effective sales meetings and reviews. Others, like funnel management, are account and financial management essentials. Sales managers are invited to:
• Check the rigour and quality of face-to-face managerial routines
• Install remedies for salespeople whose self-motivation cannot be durably relied upon. Noting that one in five feels under-resourced in people, time and budget.
"Launching" isn't "landing". Keep an eye on the ball. CRM systems, sales metrics and reporting tools demand the active support of salespeople. It is essential to check the validity and ownership of systems, and attitudes towards them, throughout the sales matrix. The following check questions are invited:
• How in touch with sales reality are the managers responsible for system design and installation?
• When creating sales support tools, do marketing responsibles treat their internal audience as seriously as their external audience?
• Are sales manager-coaches trained in, and committed to, system use? If responsible for training salespeople in system use, how skilled are they at transferring knowledge?
Shortcuts can make long delays. Salespeople are having to change certain procedures, many do not know the extent of their authority. This could expose organisations to harmful risk-taking, as the recent banking crisis has demonstrated. A strong invitation to managers emerges:
• Check that organisational norms and behavioural standards, including ethics, are fully understood, committed to, and followed.
1"Working on stress" - the European Agency for Safety and Health at Work
Report and executive summary can be downloaded here:
http://www.krauthammer.co.uk/Docs/Content/File/Inspiration/sales-signals-2010-chapter3-summary.pdf
For further information, please contact:
Jennifer Smith
Krauthammer, London
Tel: +44 20 8770 7200
[email protected]
Karoliina Rasi-Hedberg
Corporate Communications
Tel: +32 2 359 97 54
Mobile: +32 476 349 263
E-mail: [email protected]