Challenges faced

by International
Sales Managers
By Akshai Puri

Index
Abstarct
Introduction
Global Business of Growing Organizations
Global Business: Opportunities, Challenges
Aspects about the sales manager occupation
New Environment
Conclusions
References

Abstract
In the twenty first century, Business Environment is becoming more complex,

interdependent and dynamic. Managements have to restructure their strategies

and management styles according to the regions of the world, they are
operating in. The typical challenges that managements face are political,
economic and cultural changes along with advancement in technology. In
addition to the vast opportunities while operating in global community, it is
also associated with relative high risks and the projected return on investments
in the global market. Business Environment risk has increased obligations of
managements to improve their ability to develop, produce and market global
brands. To compete aggressively, organizations have to make considerable
investments globally, not only capital investment but also human resource
investment like trained managers, skilled workforce to operate effectively in a
multicultural environment. Managements are focusing to become accustomed
to global environment change and attain new capabilities, in job skills, modes
of learning, management approaches and research efforts. Managing political
and economic risk is a challenge for multinational organizations, they have to
maintain an up to date profile of countries they are operating in. Global
operations of organizations are also associated with social responsibility,
ethical behaviour and interdependence which directly affect their sustainability
and profitability. The ethical challenge that globalization presents is political
and economic freedom, that is essential for the development of any society, but
human resource development is critical in developing these capabilities. Due to
interdependent nature of developing economies the global organizations must
set high ethical norms and lay the groundwork for future economic
development by cooperating with social, political and economic conditions
prevailing in the regions they are operating in.
When it comes to thinking about sales leadership these days, most executives
just dont get it. Chief sales officers and even chief executive officers, who
recognize that the sales organization drives top-line growth often have an
incomplete notion of the CSOs job.
Sure, they understand that leading the modern sales organization takes much
more than motivating and managing salespeople. In recent years, the sales
manager have had to devote considerable time and energy to establishing and
maintaining disciplined sales processes, including everything from customer
segmentation to sales staff compensation. Given the complexity of those
processes, even well-run sales departments have to work hard to get them all
operating smoothly. The heightened expectations of customers, peer executives
in other functions, and the sales force itself require the head of sales to
shoulder mew responsibilities, ones that have changed the job almost beyond
recognition from what it was 20 years ago. In this article are presented the
ways in which the business environment has changed the sales chiefs job.
Then the article describes the new roles that sales leaders increasingly must
play.

Introduction
Global Business of Growing Organizations
Need for globalization of business arises due to the many factors. Rapid
progress in the field of communication, technology and transportation has
enabled communities to interact with other communities and the products and

services used by them1. In order to develop trade and business the

Governments today are imposing less restriction thus allowing products and
services across the borders. This has enabled the governments to provide easier
access to variety of goods and services at competitive prices. Countries are
developing infrastructure as per international norms to provide favorable
conditions for foreign investment that is the key to development in this modern
world. This includes laws, policies, banking, transportation etc. Consumer
behavior is changing due to new innovative products and services that they
require to meet their requirements thus pressurizes organizations to introduce
new innovative products and carry out research and development activities to
satisfy their customers and gain market share. Global operations of
organizations lead to development of good quality cheap products as they are
able to fully utilize global resources to develop such products and thus give
rise to competition in different markets especially to domestic organizations.
The factors constituting Global Business Environment are Political, Economic,
Technological, social and Cultural Environment. Political and Economic
Environment relates to global trade agreements, liberalization policy
influencing trade barriers, foreign investments, privatization and the opening
up of the economies2. Technological Environment relates to innovative
communication technology, global communication networks, internet and
network computing, quick and safe logistic services, innovative methods of
production using new technology. Social and Cultural Environment relates to
elements of social traditions and cultural behaviour like attitude, belief,
opinion that characterizes distribution of human population worldwide.
International business differs from domestic business, as it involves three
environments: Domestic; Foreign; International3. The kinds of forces are the
same but their values often differ and changes in the values of foreign forces
are at time more difficult to assess. International environment interacts
between the domestic environmental forces and the foreign environmental
forces and interactions between the foreign environmental forces of two
countries when an affiliate in one country does business with customers in
another. The three environments in which an international company operates
are domestic, foreign and international. Domestic environment is composed of
all the uncontrollable forces originating in the home country that influence the
firms life and development. Foreign environment is composed of all the
uncontrollable forces originating outside the home country that influence the
firm, the kinds of forces are the same as those in the domestic environment but
their values often differ and changes in the values of foreign forces are at time
more difficult to assess. International environment is interaction between the
domestic and foreign environment forces or between sets of foreign
environment forces.
Global Business Environment: The external or uncontrollable forces in both
the domestic and the foreign environments surround the internal forces
controlled by management. The domestic environment of the international
firms home country is surrounded by as many sets of foreign environments as
there are countries in which the company does business4. Solid lines
connecting the internal forces at the home office to the internal forces in the
foreign affiliates indicate the lines of control. The orange areas indicate the
international environment in which personnel in the headquarters of the firm
work. The light orange is the domestic environment and the blue depicts
foreign environment. The global business operation issues constitute Global

issues, market analysis, competitive advantage, organization management,

effective marketing strategy. Global issues include raises concern about the
existing political system, legal system, policies, social and cultural issues etc.
Market Analysis is required by organization before they enter into the new
market i.e. type of products and services that are required to be offered.
Competitive Advantage is the major factor for business operation worldwide. It
is only the competitive advantage that will benefit the organization to take a
leading edge in the market that helps in reducing costs by achieving economies
of scale. Organization Management is essential to operate an organization
internationally as skilled manpower will be required for its functioning with
consideration of social and cultural differences. Without an effective strategy
the organizations cannot succeed. So it has to formulate its strategy according
the conditions prevailing in the market.
Global Business: Opportunities, Challenges and Network Approach: The
business environment in twenty first century is increasingly complex,
interdependent and dynamic. Organizations operating globally have to adjust
their strategies and management styles to those regions of the world in which
they want to operate, whether directly or using an alliance / partnership. The
organizations perceive the world as one market and thus they do not want to
confine themselves to domestic market. They perceive international markets as
an opportunity therefore their main focus is growth and sustainability through
global operations. To achieve this, the firms produce highly specialized
customized goods for international markets and they have access to
international networks, human resources and financial markets. Their focus is
on internationalization i.e. to develop capability for internationalized
operation, to form a strategy to operate internationally, to utilize worldwide
resources in order to compete internationally and follow a sustained growth.
Typical challenges that the organizations face in international operations are
political structure, legal, social and cultural system, technology and primarily
the opportunities and risks in investment in global markets5. To compete
internationally, organizations have to make investment, not only capital
investment but also investment in human resource in order to have well trained
and skilled workforce so as to work effectively. Global management is a
process of developing strategy as per existing conditions, designing and
operating work systems and intermediating with people having different social
traditions and cultures, around the world.
Business competitiveness has now evolved networks of international linkages
that bind countries, institutions, and people in an interdependent borderless
world. As reported by the World Trade Organization, differences in regional
output growth rates have narrowed, as economic activity picked up, it is clear
that world trade is phenomenal and growing and, importantly, is increasingly
including the developing nations. Almost all organizations around the world
are affected to some extent by globalism. Organizations from any country now
compete with organizations both at home and abroad and desire to expand their
operations to other countries with experience workforce and an understanding
of what it takes to do business in other countries and to work with people of
other cultures. Comprehensive political, economic and social changes around
the world, today present new challenges to organizations. The increase in
democratic form of Government is on the rise and communism is losing its
ground. Liberalization and Privatization, has had an enormous influence on the
world economy. Economic freedom is a critical factor in the relative wealth of

nations. One of the most striking changes today is that almost all nations have
suddenly begun to develop decentralized, free market systems in order to
manage a global economy having intense competition, high-tech
industrialization, innovative communication and technology.
Organizations use local business partners in the early stages of international
operations because they required local support to utilize local available
resources6. Due to lack of sufficient information and knowledge and
international policies, it is difficult to establish its fully owned subsidiary
overseas. Thus, business network is required to enable extensive global
coverage and to get exposure to multiple markets. Such need for business
network resulted in formation of MNC's (Multi-National Corporations) that
follow a global network approach to operate in foreign markets. Small
companies are also affected by globalism and they play a vital role in
contributing to their national economies by entering into partnerships with
MNC's, thus generation employment, developing new products and providing
international services, typically importing or exporting. The vast majority of
businesses in developed economies are small and medium sized enterprises
(SMEs), which are typically referred to as those companies having less than
500 employees. Small businesses are rapidly discovering foreign markets with
the help of global network approach.

Sales managers direct the firms sales program. They assign sales territories,
set goals, and establish training programs for the sales representatives. Sales
managers advise the sales representatives on ways to improve their sales
performance. Inlarge, multi-product firms, they oversee regional and local
sales managers and their staffs. Sales managers maintain contact with dealers
and distributors. They analyze sales statistics gathered by their staffs to
determine sales potential and inventory requirements and to monitor
customers preferences. Such information is vital in the development of
products and the maximization of profits [6].
Nowadays, every good manager spend time in the field with the sales force
and often acts as salesperson-in-chief to certain major customers. Selling is
changing fast and in such way that sales teams have become strategic
resources. When corporations strive to become customer focused, salespeople
move to the foreground; product engineers recede. As companies go to market
with increasingly complex bundles of products and services, their
representatives cease to be more order takers (most orders are placed online,
anyway) and become relationship managers. The organization of the sales
force and the incentives its given are among the most crucial decisions
executives make. When companies get into trouble because of misalignment,
the chiropractic needed almost invariably involves the sales force.
Reorganizing a sales force is one of the riskiest projects a company can
undertake a heart transplant [5], where a mistake can ruin careers and cost
a company years of profit. Last, and far from least, sales is where the money is.
At the top of the game, sales managers from big corporations may be
responsible for hundreds of millions in revenue.
A study of Different Business Environment

Stable Political Environment worldwide builds confidence in business

organizations and helps in promoting business. The Organizations need to
examine the political risks associated with certain countries and the
implications of those risks for the economic success. Political risks are any
governmental action or politically motivated event that could adversely affect
the long run profitability or value of an organization7. International
organizations must conduct political risk assessment to manage their exposure
to risk and to minimize financial losses. Typically, organizations assess
destabilizing issues and evaluate their future impact on their operations,
making strategy accordingly to deal with future problems that can arise.
In case of less developed countries (LDC's), the political risk is high on
account of less distinct Government policies and laws. The gross national
product (GNP) and per capita income in LDC's is low and they are trapped in
vicious circle of economy that constitutes of undeveloped infrastructure,
unskilled and unemployed workforce, relatively less educated population and
high international debt. Their economic condition is miserable and so cannot
attract foreign investment that they need. Many countries in Central and South
America, the Middle East and Africa desperately fail to attract foreign
investment to stimulate economic growth. Organizations hesitate to invest in
such economies due to economic and political risks.
Technology, in general, is the application of the sciences to the objectives of
industry, business, government systems, and human endeavours in general.
Technology, as a process, is a socio technical means of defining and solving
problems. Global business today is transformed due to rapid advancement in
the field of information technology (IT). The speed and accuracy of
information transmission have broken geographic barriers and information can
no longer be centrally or secretly controlled by nations / governments. The
political economic, market and competitive information is available almost
instantaneously all around the world, enabling accurate and timely decision
making possible. Even cultural barriers are being lowered gradually by the role
of information in educating societies about one another. Consumers today,
around the world, have become more aware, through various media, about
living standards, tastes and their preferences. The growth of information
technology is both a cause and an effect of globalism. The information
revolution has contributed in increasing productivity around the world. In
addition, use of the Internet is propelling electronic commerce around the
world. Companies around the world are linked electronically to their
customers, distributors, suppliers, and alliance partners in many countries. So,
perhaps IT is not yet "borderless" but rather is subject to the same norms,
preferences, and regulations as "human" cross-border interactions.
Culture is the context in which an organization operates8. It constitutes
behavior of groups characterized by customs, values and habits. It is Collective
programming of the mind which distinguishes the members of one human
group from another. It is glue that binds groups together. Without cultural
customs, values, habits, shared beliefs, attitudes, norms; rules people would
have difficulty living together. Modern cultures are thus characterized by an
individual orientation, basis of purchasing power display exercise of individual
freedom; emphasis on material achievements and values of this area; an
economic sense, materialistic time; a tendency to disregard the past in relation

to the future; a high degree of utilitarianism. The influences of cultural factors

in this complex system level integrated markets, international trade,
international investment, multinational corporations; technology convergence
is a major significance7. In the same time a combination of globalization
Culture is a risk factor for both the international trade system, but also cultures
and national identities and individual affected by this phenomenon. The global
business environment is different depending on the type of response of the
receiving area of culture. Thus, there were three main types of reaction:
passive, participative or conflict. The combination of different cultures results
in variety and diversity of cultural products, threats to local cultures and
evolves a mixture of cultures resulting in a global blend.
Risk Management
The attribute of Management is the decision making capability; which means
to take right decision from a variety of possible actions, by consideration the
business environment, in order to achieve the target objectives9. An
international business is carried on in extremely diverse external environments
and in unpredictable conditions. The organizations have to accept the
constructive opportunities and neglect unfavourable conditions to limit the
possible losses by taking right decision at right time. From this point of view,
the adopted short or long run decisions, for the moment carries the mark of
three situations, in which the decedents may found themselves decisions taken
in certainty conditions, decisions taken in uncertainty conditions, decisions
taken in risk conditions. Under the impulse of the need of conceptual
synthesizes and practical operability, there exists the tendency to define the
three statuses as concise and relevant. If the risk is relatively low in a particular
country or that a high-risk environment is worth the potential returns, then
organizations try to overcome risk by using the next explained strategy. Equity
sharing includes the initiation of joint ventures with local organizations or
government to reduce political risks. Participative management requires that
the firm actively involve local organizations or government, in the
management of the subsidiary. Localization of the operation includes the
modification of the subsidiary's name, management style and so forth, to suit
local tastes. Localization seeks to transform the subsidiary from a foreign firm
to a national firm. Development assistance includes the organizations active
involvement in infrastructure development process of local country10. A
country's level of economic development generally determines its economic
stability and, therefore, its relative risk to a foreign firm. Most industrialized
nations pose little risk of economic instability; less developed nations pose
more risk. MNC's operating overseas exposes itself to some level of economic
risk, often affecting its everyday operational profitability, organizations
constantly re-assess the level of risk that they may face in any specific country
or region of the world. Four methods of analyzing economic risk, or a
country's creditworthiness are recommended are quantitative approach
attempts to measure statistically a country's ability to honor its debt obligation;
evaluates a country's economic risk by assessing the competence of its leaders
and analyzing the types of policies they are likely to implement; Checklist
approach relies on easily measurable and timely criteria indicators that
measure credibility of a country. Researchers develop various susceptible
indicators that categorize countries in terms of their ability to withstand
economic volatility.

Differences in laws and regulations from country to country are numerous and
complex. A country's tax system influences the attractiveness of investing in
that country and affects the relative level of profitability for an MNC. Foreign
tax credits, holidays, exemptions, depreciation allowances and taxation of
corporate profits are additional considerations the foreign investor and it must
be examined before investing11. Many countries have signed tax treaties that
define such terms as "income," "source," and "residency" and spell out what
constitutes taxable activities. The level of government involvement in the
economic and regulatory environment varies a great deal among countries and
has a varying impact on management practices.
Managing Interdependence: Social Responsibility
and Ethical Standards
Global business mandates that companies manage their worldwide operations
efficiently and effectively on the basis of openness, corporate integrity, and
ethical standards12. Although global markets have become a reality in many
countries, national rules and the regulatory environment continue to be local,
often providing loopholes for the companies because of weaker supervision by
the enforcement agencies. Many organizations have been found abusing their
corporate powers and breaking rules that led to massive corporate losses and
bankruptcies. Global interdependence is a compelling factor in the global
business environment, creating demands on international organizations to take
a positive stance on issues of social responsibility and ethical behavior,
economic development in host countries and ecological protection around the
world. Organizations are usually quite sensitive to issues of social
responsibility and ethical behavior because of pressures from the public, from
interest groups, from legal and governmental concerns and from media
coverage13. In August 2003, for example, the United Nations published draft
guidelines for the responsibilities of transnational corporations and called for
companies to be subject to monitoring, verification, and censure. Though many
companies agree with the guidelines, they resist the notion that corporate
responsibility should be regulated and question where to draw the line between
socially responsible behavior and the concerns of the corporation's other
stakeholders. In the domestic arena, organizations are faced with numerous
ethical complexities. In the international arena, such concerns are compounded
by the larger numbers of stakeholders involved, including customers,
communities, allies and owners in various countries.
Social responsibility issues of social responsibility continue to center on the
poverty and lack of equal opportunity around the world, the environment,
consumer concerns and employee safety and welfare14. MNC's operate in a
global environment, they should use their capital, skills, and power to play
proactive roles in handling worldwide social and economic problems and that,
at the least they should be concerned with host country welfare. The sales,
debts and resources of the largest multinationals exceed the gross national
product, the public and private debt, and the resources, respectively, of some
countries. The international social responsibility includes the expectation that
MNCs concern themselves with the social and economic effects of their
decisions. The issue is how far that concern should go and what level of
planning and control that concern should take. The responsibility of a business
is to make a profit, within the confines of the law, in order to produce goods
and services and serve its shareholders interests and along with this

organizations should look forward to solve problems in society. The increased

complexity regarding the social responsibility and ethical behavior of firms
across borders is brought about by the additional stakeholders in the firm's
activities through operating overseas like discontinuing bankruptcy, corruption,
child labor etc. With the growing awareness of the world's socioeconomic
interdependence, global organizations are beginning to recognize the need to
reach a consensus on what should constitute moral and ethical behavior. Some
think that such a consensus is emerging because of the development of a global
corporate culture an integration of the business environments in which firms
currently operate.
Globalization has multiplied the ethical problems facing organizations. Yet
business ethics have not yet been globalized. Globalization has multiplied the
ethical problems facing organizations. Yet business ethics have not yet been
globalized. Attitudes toward ethics are rooted in culture and business practices.
Corporate world has learned that international business ethics is a major
priority and that companies must pay attention to their relationships with
society and other entities. The biggest single problem for MNCs in their
attempt to define a corporate wide ethical posture is the great variation of
ethical standards around the world15. Many practices that are considered
unethical or even illegal in some countries are accepted ways of doing business
in others. Social responsibility and ethical standards are not options but rather
integral parts of organizations global operations. Organizations should adhere
from bribery, making illegal payments or other gifts, or political contributions
to foreign government officials for the purposes of influencing them in
business transactions, failing which, in the long run, MNC's will be considered
as irresponsible outsiders and dim their prospects for the future

1. Aspects about the sales manager occupation

Work environment. Sales managers work in offices close to those of top
managers. Working under pressure is unavoidable when schedules change and
problems arise, but deadlines and goals must still be met. Substantial travel
may be involved. For example, attendance at meetings sponsored by
associations or industries often is mandatory. Sales managers travel to national,
regional, and local offices and to the offices of various dealers and distributors.
Job transfers between headquarters and regional offices are common,
particularly among sales managers. Long hours, including evenings and
weekends are common.
A wide range of educational backgrounds is suitable for entry into sales
managerial jobs, but many employers prefer those with experience in related
occupations.
Education and training. For sales, marketing and promotions management
positions, some employers prefer a bachelors or masters degree in business
administration with an emphasis on marketing specialization. Courses in
business law, management, economics, accounting, finance, mathematics, and
statistics are advantageous. Additionally, the completion of an internship while
the candidate is in school is highly recommended. In highly technical
industries, such as computer and electronics manufacturing, a bachelors

degree in engineering or science, combined with a masters degree in business

administration, is preferred [7].
Most sales management positions are filled by promoting experienced staff or
related professional personnel. For example, many managers are former sales
representatives, purchasing agents, buyers, or product, advertising specialists.
In small firms, where the number of positions is limited, advancement to a
management position usually comes slowly. In large firms, promotion may
occur more quickly.
Other qualifications. Familiarity with word-processing and database
applications is important for most positions. Computer skills are vital because
marketing, product promotion and advertising on the Internet are increasingly
common. Also, the ability to communicate in a foreign language may open up
employment opportunities in many rapidly growing areas around the world, if
we take into consideration the globalization effect on business environment.
Persons interested in becoming sales managers should be mature, creative,
highly motivated, resistant to stress, flexible, and decisive. The ability to
communicate persuasively, both orally and in writing, with other managers,
staff, and the public is vital. These managers also need tact, good judgment,
and exceptional ability to establish and maintain effective personal
relationships with supervisory and professional staff members and client firms.
Certification and advancement. Some associations offer certification
programs for these managers. Certificationan indication of competence and
achievement is particularly important in a competitive job market. While
relatively few sales managers currently are certified, the number of managers
who seek certification is expected to grow [6]. Today, there are numerous
management certification programs based on education and job performance.
Although experience, ability, and leadership are emphasized for promotion,
advancement can be accelerated by participation in management training
programs conducted by larger firms. Many firms also provide their employees
with continuing education opportunitieseither in-house or at local colleges
and universitiesand encourage employee participation in seminars and
conferences, often held by professional societies. In collaboration with
colleges and universities, numerous marketing and related associations sponsor
national or local management training programs. Course subjects include brand
and product management, international marketing, sales management
evaluation, telemarketing and direct sales, interactive marketing, promotion,
marketing communication, market research, organizational communication,
and data-processing systems procedures and management. Many firms pay all
or part of the cost for employees who successfully complete courses.
Because of the importance and high visibility of their jobs, sales managers
often are prime candidates for advancement to the highest ranks. Well- trained,
experienced, and successful managers may be promoted to higher positions in
their own or another firm; some become top executives. Managers with
extensive experience and sufficient capital may open their own businesses.
2. New environment

If we will examine the calendar of any successful chief sales officer, we will
see how complex the job has become [4]. That complexity stems from the
following changes, which have affected sales activities at most major
companies.
Customers have gained power. Its no secret that in many industries, supply
outstrips demand. Customers have more choices and more information
thanks largely to the Internet about what they can buy and how they can buy
it. The shift in power from sellers to buyers has made customers demand more
of their suppliers and the buying experience.
Customers have gone global. The globalization of business made the
structure of many sales organizations (those with a regional or national focus)
anachronistic. Suppliers had better be sure that their organizations mesh with
their customers global orientation and sourcing processes.
Channels have proliferated. At one time, the direct sales force was the sales
organization. Today, most companies, regardless of size, go to market through
multiple channels. The sales organization may comprise not only people
employed by the company field sales, telesales, and online reps but also
those outside the company, including partners and resellers.
More product companies sell services. Whether wrapped around or
embedded in products, complementary services have become a way to enhance
or simply maintain a products competitive edge. Selling these services calls
for a special mind-set. The holistic approach required to seamlessly package
products and services together is very different from the traditional selling of
product. The reason for the difference, he says, is that after a certain period of
time, a customer stops buying your product and starts buying your strategy.
A lesson that sales leaders must learn is about matching the sales force
structure to the business life cycle [1]. Although companies devote
considerable time and money to managing their sales forces, few focus much
thought on how the sales force needs to change over the life cycle of a product
or a business. However, shifts in the sales forces structure are essential if a
company wants to keep winning the race for customers. Specifically, a sales
manager must alter four factors over time (Table 1):

The four factors for a successful sales force

Table 1

Factors
Business life cycle stage

Start-up
Growth
Maturity
Decline

Emphasis

Role of sales

force and

selling

partners

Size of sales

force

Degree of

specialization

Sales force

resource

allocation

Underlying
customer strategy

Create
Penetrate
Focus on
Emphasize

awareness
deeper into
efficiently
efficiency,

and generate
existing
serving and
protect critical

quick product
segments
retaining
customer

uptake.
and develop
existing
relationships,

new ones.
customers.
exit

unprofitable

segments.
Source: Andris A. Zoltners, Prabhakant Sinha, Sally E. Lorimer Match your
sales force structure to your buiness life cycle, Harvard Business Review
Special Double issue: Sales, July-August 2006
These variables are critical because they determine how quickly sales forces
respond to market opportunities, they influence sales forces performance, and
they affect companies revenues, costs and profitability. Businesses tend to
change their sales structures only when major events such as the failure to
meet targets, a change in rivals strategies, or mergers force them to do so.
This conservatism doesnt serve companies well. The sales force structure that
works during start-up is different from what works when the business is
growing, during its maturity, and through its decline. The four life-cycle phases
arent mutually exclusive, some companies display characteristics of more than
one stage at the same time. These days, businesses tend to go through the four
phases more quickly than they used to, which makes it even more important to
have a flexible sales force.

During start-up, smart sales managers focus on whether they should depend
on selling partners or create their own sales forces. If they decide to set up
sales organizations, they pay a lot of attention to sizing them correctly. As
companies grow, sizing issue become even more important. In addition,
executives must decide when to invest in specialist sales forces. When
businesses hit maturity, the emphasis shifts to making sales forces more
effective by appointing account managers and better allocating salespeoples
resources, and making them more cost-efficient by using less expensive
people such as telesales staff and sales assistants. Finally, as organizations go
into decline, sales leaders attention shifts to reducing the size of sales forces
and using even more cost-efficient ways to cover markets.
3. New roles
These changes in the business environment have made running a sales
organization more demanding than its ever been. No other function bears
such exposed responsibility for delivering on the numbers. The successful
sales manager also needs to oversee sophisticated processes for such tasks as
customer segmentation processes that not long ago represented state-ofthe-art practice but today are considered sales essentials. In addition, sales
managers must take on five new distinct roles [4].
Company leader. The sales manager must hit his targets while ensuring that
the sales organizations actions at all levels and across all channels
support the companys strategy. Striking that balance means communicating
broader goals to the rank and file, so salespeople can connect their day-today responsibilities with the big picture; it also calls for effective
collaboration with other functions. Sales leaders can no longer think of
themselves as working in a tight little box, responsible only for revenue
generation and relationship management.
Every sales manager face similar general objectives: achieving revenue
growth, launching new products, acquiring customers, expanding business
with current customers, improving sales productivity, and containing or
reducing selling expenses. Only through strong leadership can sales chiefs
make it clear how these goals can be achieved in support of corporate
strategy. In fact, at least 15% of a sales managers time should be spent
establishing and communicating a clear course for accomplishing the current
years business plan.
The best sales chiefs are, along with the rest of the senior executive team,
leaders of the company as a whole. They actively participate in formulating
company strategy as well as executing it. No enlightened manager considers
entering a new market, expanding the companys product portfolio, or taking
on a new channel without seeking the advice of the sales manager. For
instance, a sales chief can offer valuable insights about the companys
customers: what their particulars needs are, what products are needed on the
market [2].
A sales manager can take on an ever higher profile role in a company where
the sales function hasnt traditionally been a priority, such as in a
professional services firm or real estate investment trust. In such a case, the

sales manager must lead a cultural revolution, building a sales organization

that promotes the firms commitment to growth in partnership with its
customers.
Customer champion. If the customer is the king these days, who lives
within his inner circle? Of all the functions, the sales organization comes
closest, and the sales manager is thus the most effective conduit for
funneling customer-related insights to the rest of the senior executive team.
The successful sales leader spends more time with customer today not only
because they have valuable things to say but also because they demand to be
heard by their suppliers most senior people.
Customers want close contact with their suppliers senior executives in order
to understand product strategy, look at new offerings in advance, and help
with decisions about new future products will meet their particular needs [3].
They also want top -level contact so they will have someone to call when
something goes wrong an inevitability in even the best of customersupplier relationships. Of course, it isnt always easy for suppliers to forge
these high-level relationships, especially since customers purchasing
managers (who are growing more sophisticated and aggressive and are
charged mainly with getting the best price) may view such relationships
warily.
Organization architect. A good sales manager should also spend a
significant amount of his time evaluating and occasionally redesigning the
sales organizations structure to ensure that it supports the companys
strategic goals. Often, this involves finding the right balance between
specialized and generalized sales roles. As a suppliers product portfolio
grows larger and more complex, though, or if the customers are numerous
and form different industries, some sales specialization is usually required.
Indeed, the broader the portfolio and the greater the number o markets in
which the customers operate, the greater the need for specialization. That
need can be met by a sales force of a generalist sales reps supported by a
product sales specialists, for instance, or by separate specialty forces
dedicated to a single product or market.
Course corrector. A sales manager always needs to be looking at some
point of the horizon, then designing and redesigning the sales organization to
help company get there. Performance is expected, so the sales managers
have to manage their organizations for results, using short-cycle data and
analysis. Investments in staff, technology, and tools for account planning,
forecasting and quota allocation have
made sales performance data - organized by segment, channel, and sales
process more readily available to sales executives.
Process guru. As we have seen, CSOs increasingly must have a dual
perspective, looking outward toward customers and inward at their own
organization. Over the paste decade, they have honed their processes for
selling products and services and managing customer relationships. In fact, a
sales manager may spend 10% to 20% of her time defining, creating,
managing, and improving such processes.
The focus on process has become particularly important as many

organizations have moved beyond selling discrete products or services and

toward solution selling, putting together bundled offerings of products and
services designed to meet important customers individual needs. Careful
reinvention and over sight of the sales process are critical also in the case of
a merger, an acquisition, or a new product introduction.
4. Selling to solve
Its the byword of modern marketing: instead of selling simple products of
services, companies sell solutions. That presents particular challenges for
sales leaders to manage. Instead of simply getting a customer to choose their
products over rivals, they draw on an array of corporate and external
capabilities to design an integrated offering, meant to solve a customer
specific problem.
Companies view solutions selling as a way to built strong relationships with
customers and earn price premiums for the value they deliver. Because it can
be incredibly inefficient and expensive, however, suppliers must identify
most strategic customers and offer solutions packages only to them. Even
after doing this, suppliers may learn that some of these customers arent
interested in making the investment on their end. Customers might want to
do things the old way, simply completing a transaction to buy a product or
service.
Too often, companies commit to solutions selling without completely
understanding what they need to be successful. The sales manager
considering this approach not only must understand the process but also
must structure the organization to support it. That includes having the
competencies somewhere in the organization, if not in sales to negotiate
with external partners who will be needed to help crafts solutions. It also
means that the field organization must be trained in solution selling. Whereas
the traditional sales relationship involves a series of transactions, selling
solutions calls for a consultative relationship in which those who do the
selling add value. Finally, the sales manager needs to confirm that the
delivery organization has been trained in solutions implementation, since the
customer is going to hold the supplier accountable for a single point of
delivery.
Conclusions
In recent years, sales leaders have had to devote considerable time and
energy to establishing and maintaining disciplined processes. The thing is,
many of them stop there and they cant afford to, because the business
environment has changed. Customers have gained power and gone global,
channels have proliferated, more product companies are selling services, and
many suppliers have begun providing a single point of contact for customers.
Such changes require todays sales leaders to fill various new roles.
Sales executives understand that the new selling context has real
implications for how they hire, train, manage, coach, and retain salespeople.
Sales reps must be able to dive deep, answering specific technical questions,
and fly high, providing purchase-justification arguments, solid business
cases, and assessments of overall performance impact. They must provide

more nuanced application knowledge and be able to unhook some of what

buyers believe they know without alienating them. The pressure to raise the
salespersons game is all the more intense because, when customers dont
perceive any added value from their interaction with a seller, the buying
process can shift dramatically.
The pressures on a sales manager come from without and within, from above
and below. This article laid out a daunting of portfolio of roles that a sales
leader must embrace if his organization is going to provide the profitable
top-line growth the company expects. Over time, the job description is likely
to become even more demanding. A sales manager must hold the view that a
sales, as a function, is continuously evolving. There is no constant state, only
a state in which you are clear about what you need to be changing to in order
to succeed.

References
Andris A. Zoltners, Prabhakant Sinha, Sally E. Lorimer Match your sales
force structure to your buiness life cycle, Harvard Business Review Special
Double issue: Sales, July-August 2006, pg. 81-89
Cynthia A. Montgomery Putting Leadership Back into Strategy, Harvard
Business Review Special Double issue: Leadership&Startegy, January
2008, pg. 54-61
Erin Anderson, Vincent Onyemah - How Right Should the Customer Be?,
Harvard Business Review Special Double issue: Sales, July-August 2006,
pg. 58-67
Jerome A. Colletti, Mary S. Fiss - The ultimately accountable job. Leading
todays sales organization, Harvard Business Review Special Double issue:
Sales, July-August 2006, pg. 124-131

AE
The Challenges of the Sales Manager in the Current Business
Environment
Robert S. Kaplan, David P. Norton Mastering the Management System,
Harvard Business Review Special Double issue: Leadership & Strategy,
January 2008, pg. 62-77
*** Management, business and financial occupations, Occupational
Outlook Handbook, US Department of Labor Bureau of Labor Statistic,
Bulletin 2700, January 2008
*** Sales occupations, Occupational Outlook Handbook, US Department of
Labor Bureau of Labor Statistic, Bulletin 2700, January 2008

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