By Lee Esler
These have been tough times, especially for those executives
charged with generating revenue. Over the last nine months, many companies
have been removing and replacing the lead sales executive—be it the
senior vice president of sales for a mid-sized company, a regional sales
manager for a multinational or, in some cases, the COO of a startup—because
the revenue numbers are not meeting expectations. I can recount many sad
stories of successful sales leaders jumping to startups during the tech
boom, only to discover it was a bad fit for both parties. Many of the
executives were beyond adept at managing a sales force of hundreds, but
they were unable to tap into the necessary skill-sets and, more importantly,
mind-sets to succeed at an emerging company. Within less than a year,
many of these stellar executives were asked to leave.
While it is easy to point fingers at the poor economy—sales
numbers across the board have been down for the last two to three years—the
cause of the problem often is a lack of fit between the organization’s
sales leadership needs and the strengths of the person it selects. Companies
need to assess carefully the type of sales leader they require and seek
these individuals out accordingly. Hiring the wrong leader at the sales-executive
level carries an expensive price tag. Not only are companies losing money
by hiring and training new executives who don't work out, but they are
losing money as a result of lost customers and missed opportunities—the
most costly missteps of all.
To curb this costly trend, companies need to look beyond
the candidate’s track record, industry knowledge, relationship assets,
personal characteristics and demonstrated leadership skills. While these
are important indicators, they do not tell the whole story. Today, to
ensure the best sales fit, companies need to understand how the candidate’s
strategic thinking, functional competence, influence skills and management
techniques relate to their particular business situations—scale,
complexity and industry life cycle.
One method that I have found to be helpful is a systematic
review of the types of available talent. By breaking down the structure
of the sales leadership model into four stages, based on the competencies
required for each situation, businesses can enhance their likelihood of
hiring the right person to drive revenue growth.
Team Leader
Typically, the "team leader" is a lead executive who oversees
a small team (less than 10) of direct reports. Most often, this executive
is a geography-level sales leader for a large company or an entrepreneur
leading an early-stage company. A team leader possesses an almost single-minded
focus on completing the deals and is generally a very detail-oriented
person. Because the team leader is usually spearheading the selling process,
this individual must have deep understanding of the product or service
and excellent functional selling skills, a high level of initiative and
must enjoy hands-on work. In addition, because this person must possess
an entrepreneurial mindset, he must possess a high tolerance for ambiguity
while expecting high pay for performance.
Group Leader
The "group leader" manages a larger team, typically 10 to 40
people. This person is often the vice president of sales for an emerging
company or a regional vice president of sales for a large multinational.
The larger the organization, the greater internal and external complexity
involved in managing a sales P&L. There is also a greater demand for
strategic thinking, cross-organization collaboration and people development.
As niche markets are exploited and distribution and alliance partnerships
are formed, strategic business skills become even more important. Typically,
this leader is an excellent problem-solver who will stay close to the
customers, enjoy the thrill of the sale and require a lot of variety in
his/her work. He or she possesses a high results orientation, functional
selling skills and a strong penchant for change.
Organization Leader
The "organization leader" usually oversees between 50 and 250
people, often as the national sales vice president for a Fortune 500 company
or a worldwide vice president of sales for a mid-sized company. And while
there is a decreased reliance of functional selling skills and technical
competence, there is an increased demand for superior organizational skills
to manage a broad scope of geographies, distribution channels and partners.
The breadth of responsibilities also includes managing other functional
areas, expanding the profit and loss statement and overseeing outside
business partners. An organization leader possesses the ability to team-sell
with partners, open new channels of distribution and quickly attract a
new team of sales executives, all with the willingness to work in an environment
of change. In the end, this strategic thinker is extremely team-oriented
with excellent leadership abilities.
Enterprise Leader
The "enterprise leader" is responsible for at least 250 people.
Most often, he or she is the executive vice president or senior vice president
of global sales for a large multinational in a mature market. The market
dynamics now include installed base-selling, industry verticals, large
account management and relationship-selling. These leaders can effectively
manage both the "farmers" and "hunters" and possess
a long-term view when it comes to customer orientation. They expect a
high percentage of repeat business. As a result of strong organizational
and political skills, the enterprise leader works well within a team-based
environment between organizations. At this most senior level, this leader
also is responsible for a significant increase in profits and is a key
strategic player on the company’s executive team.
For some, these four categories appear as a rational
career transition, from team leader to enterprise leader. And while this
does occur on some levels, it is not uncommon to have senior sales executives
stake a claim at one particular level as a result of specific competencies,
personal preference and a track record of performance. This is why it
is imperative that companies hire sales executives who meet their situational
needs. The worst scenario would be to place an enterprise leader into
a position in which he or she cannot culturally thrive and that does not
promote his or her best qualities, and vice versa with the other levels.
Given this sales leadership structure, it is critical
for companies to hire the right sales generators for their particular
business situation. By carefully vetting candidates who not only possess
a strong track record and skill-sets, but also the specific track record
and skill-sets that are relevant to the particular business environment
and product/service life cycle, the costly trend of hiring, firing and
replacing ineffective sales leaders will begin to wane.
For additional information, consider these AMA seminars:
Author Bio: Atlanta-based Lee Esler is a member
of Spencer Stuart’s Technology, Communications & Media and Consumer
Goods & Services practices. Esler is an experienced executive search
and human capital consultant with considerable depth in general management,
marketing and sales.
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