The transition from selling to managing (стр. 1 из 2)
The Ministry of Science and Education of the Russian Federation
Togliatti Social-Economic college
REPORT
TOPIC: The transition from selling to managing
SOURSE: “The transition from selling to managing” by
Student: Mustaeva P.S.
Group: F-32
Teacher: Alferova L.A.
Togliatti 2005
Contents:
1. Introduction
2. From selling to managing
· Five critical differences between selling and managing
· The cycle of managing
3. Planning: the first step
· Developing a plan of action
4. Implementing the plan
· Key accounts
5. The appraisal process
· The informal appraisal
· The formal appraisal
6. The control function
7. Effective communications
· Downward communications
· Upward communications
8. Conclusion
Introduction
The topic of my report is “The transition from selling to managing”. This topic is rather urgent now days, because problem of transition occurs frequently in sales organization.
Most field sales managers have been sales people far longer than they have been managers; consequently, the transition from salespeople to manager can be extremely difficult. In fact, many who try never really make the grade.
Sales managers have many responsibilities. Some of them are: development and growth of sales representatives, planning, control of performing plans of actions, setting contacts between reps, effective downward and upward communications and others. The sales manager’s job is very difficult. It demands good economical education, ability to work in team, attention to salespeople and others abilities.
The report also tells the reader about necessary relationship between sales manager and sales reps. It is very important for effective management and reaching agreed-upon objectives.
The main parts of this report are:
1. From selling to managing
2. Planning: the first step
3. Implementing the plan
4. The appraisal process
5. The control function
6. Effective communications
This information may be helpful for future specialists and for salespeople who want to become good sales managers.
Problem of transition occurs so frequently in sales organizations, perhaps it would be well to begin by considering some of the problems involved in making a successful adjustment to the responsibilities of a manager.
Sales manager’s duties will vary widely from one company to another. Some field sales managers are actually only supersales reps who handle the more important accounts; some supervise only one or two reps and devote the remainder of their time to direct sales efforts; still others may devote their entire time to supervision and do no direct selling themselves. But all have certain features in common.
The sales rep and the sales manager both deal with people. For a salesrep, these people are your prospects and customers. He must be able to influence them, wins their confidence and approval. Manager must be able to get along with his sales force, wins their confidence and respect so that they perform well. The sales rep and the sales manager must each be capable of planning the particular activities demanded by their position. Both are, of course, concerned with sales, orders, profits, and their own promotion and advancement. However, it is the critical differences between these two jobs that must be understood if we are to have a sound understanding of the management function.
Five critical differences between selling and managing
1. The first responsibility of sales reps is to develop accounts. They must be able to sell accounts in their territory, strengthen the bonds that tie the accounts to the company and to themselves, thus steadily increasing sales volume. Field sales manager has one overriding concern – to develop people – salespeople. This is by far his chief responsibility. Sales manager’s success no longer depends on his own sales ability but on his capacity to help others to develop and grow in their jobs, to become more skilled and effective, and to perform better as sales reps.
2. The second difference is that sales reps perform their jobs by themselves, whereas managers perform their job with others. Some of the best salespeople are described as lone wolves because they are interested only in themselves and their own success. They do produce an excellent volume of profitable business. But not one of them will ever be a manager because they totally fail to understand the meaning of teamwork.
3. The third difference is functional. The manager must develop his player into a team. He must see to it that his team members like their fellow workers, respect and look up to their supervisors, and are comfortable with them us people. The sales rep is just an individual with a specific job to do, and can do that job without being part of a team. It is the responsibility of the manager to build a team and to get his salespeople to react as members of a team rather than as individuals working alone.
4. A fourth and vital distinction between the sales rep and the field sales manager is the fact that unlike the salesperson, the manager is a part of management. The manager now represents management, and so can no longer make fun of or run down company policies and objectives. Instead, the manager must be able to explain, sell, and implement these policies.
5. The contrast between the sales rep and the field sales manager is accentuated by the fact that the field sales manager has a great many more – and diverse – responsibilities (developing people, recruiting new sales reps, running a branch office, seeing key accounts, handling records, conducting correspondence, and perhaps working with other departments such as advertising, engineering, and credit). The field sales manager must know how to organize the work load and use time effectively to a greater extent than is required of the sales rep.
These then are critical differences between the sales rep and the field sales manager. They demand of the person who moves from the sales force to the first echelon of sales management an entirely new approach to the job and its responsibilities.
To understand the unique problem of sales management as distinct from those of selling, it helps to consider some of the attempts that have been made to define and describe «good management». Among these are the following:
· Good management is the capacity to get people of ordinary ability to perform in an extraordinary manner.
· A good manager is one who can get more work and better performance out of subordinates and get this willingly.
· A manager is one who gets things done through other or with others.
The components of the cycle of management are:
1. Planning involves three steps. The first step is to set objectives. The second step is to determine how to reach those objectives. The third step is to decide when the job should be completed. It is actually a relief to have completed such a plan. Planning is a normal function of an orderly mind.
2. Act in accordance with the plan at the appropriate time. While there are, of course, situations where a plan must be discarded, ordinarily the interview will be far more effective if it has been carefully planned and executed as planned. The same is true of plans for the development of individual sales reps, for the improvement of sales of a certain product line, or for the sale of products to a particular class of trade.
3. Sit back and take a good look at what manager has done. In other words, manager makes a thorough evaluation of his performance.
4. This leads directly to the fourth step in the cycle. Manager has now appraised his performance. Manager’s experience, increased knowledge, and careful appraisal of past performance will enable you to make better plans for the next operation. Thus the cycle results in ever-improving performance.
Note that it is impossible to break the cycle and still manage. Management is the complete and continuous repetition of the cycle. The cycle is equally applicable to the planning for and development of key accounts.
The cycle of management
The first step in sound management is planning. Field sales manager has planned well when:
1. He and his supervisors have reached agreed-upon objectives to be attained by a specific date, and have charted a course of action for achieving these objectives.
2. Each of his salespeople has agreed-upon objectives to be attained by a specific date and has determined upon a course of action for achieving these objectives.
Developing a plan of action
There are undoubtedly many methods a field sales manager can use to develop a plan of action. One method may work better for one person than for another. The following method has been found effective when properly employed and is presented as an example of one way of getting this important job done. The procedure is to plan for at least a full day with each sales rep and to work out agreed-upon objectives for that rep’s growth and development during the period ahead. The field sales manager must do some preparatory work for such a meeting, and the following steps are suggested as necessary:
1. Sales manager should have before he the company objectives he has been given by his supervisors.
2. Either sales manager’s own office or the head office must furnish various kinds of statistical material that he and his salespeople will need during the planning session.
3. Sales manager must tell his salespeople in advance what is going to take place so they can prepare for it.
4. Manager must arrange a place for the planning session.
5. Sales manager should think through carefully how he can develop objectives that will enable him to manage by specifics.
6. You should think through carefully how you can develop objectives that will enable you to manage by specifics.
Implementing the plan
Let’s now move on to the next major step – implementing the plan. Field sales manager performs this part of the job when:
1. He has the right salespeople to do the job.
2. He supervises these reps to make sure they are reaching their agreed-upon objectives.
In short, what we have is a plan of action for each sales rep working under the field sales manager. These individual plans also include specific steps for achieving the company’s overall objectives. The field sales manager’s own plan of action is to help each sales rep achieve objectives.
Basically, your job as manager is to improve the thinking of your people because they usually perform alone. It is therefore essential to get them to perform well in your absence. To do so, salespeople must be thinking along the same lines. Implied in the achievement of this goal is recognition that a manager will never get anywhere until he makes reps want to change their habits and improve their thinking.
Another important concept is that field contacts between sales manager and his sales force must have continuity.
In planning sessions with each of reps manager has mutually agreed on what each is to do to achieve the objectives that have been set. Showing them how to do the job is also the field sales manager’s responsibility.
The field contact has additional goals, which must also be kept in mind. One of these is the reduction of staff turnover. Sales reps who might otherwise become discouraged and leave for another job are stimulated by field contacts to become valuable members of the team. The manager’s field work with salespeople will improve their performance. As they become more productive sales reps, they feel more secure in the job, take greater satisfaction in their work, and often strive for promotion. Thus the field contact, when properly planned and performed, can do wonders. No report can give so accurate a picture of the performance of sales reps as may be obtained by seeing them in action with a customer. Their strengths and weaknesses become apparent, and the latter can be more easily corrected when they are encouraged with commendation for any progress they have made.
Key accounts
The field sales manager’s responsibility for key accounts varies with the particular company. In general this responsibility is of two kinds:
1. Direct responsibility. The manger is personally charged with selling and developing important accounts within the district or region. No other salesperson is involved.
2. Indirect responsibility. One of the sales reps is directly responsible for the account.
The appraisal process
Efficient appraisal by the field sales manager consists of the following:
1. Regular evaluation of the progress made by each of your sales reps toward agreed-upon objectives.
2. Regular evaluation of your own progress toward such objectives.
3. Recognition of what must be done, an understanding of how to do it, and the allocation of time for that purpose.
Three significant criteria for the appraisal of a sales rep are:
1. The description of sales rep’s job. The rep agreed to this description in accepting the job.
2. What, specifically, is expected of the sales rep? In other words, What are the standards of performance? This list includes figures such as the expected dollar volume or the number of units sold in a given period, the number of new accounts opened, the maximum amount of money allowed for expenses, and any other specific and/or measurable requirements of the job.
3. The objectives for the rep’s development and growth.
The informal appraisal
Manager is constantly appraising each of your sales reps. He must decide whether to discharge the marginal sales rep and how much time he can properly spend with a new salesperson as against an older one. In making appraisals, manager continually uses sales figures and other statistical data.
Let’s list some of these other measures for appraisal.
1. Sales reps must be willing to learn. They must be anxious to improve themselves and receptive to instruction.
2. Sales reps should be happy in their job. They should be enthusiastic, excited, and interested in each day’s operations, well motivated, and able to keep their long-range objectives clearly in view.
3. Sales reps should possess and use the ability to plan. They should employ their time effectively; schedule the work for each day, week, and month; plan each interview carefully.
4. Sales reps should be able to conduct an effective sales interview. They should know to carry through effectively any part of sales interview, including the interview with a receptionist.
Among the more important matters to be appraised in determining whether a sales rep is really moving ahead are the following:
1. Presence of strong motivation and a sound attitude toward the job and the future
2. A record of steadily increasing sales volume and steadily increasing earnings
3. Definite improvement in those areas in which the manager has felt coaching was required
4. Definite progress in the development of an increasing number of accounts with good potential
5. The continual development of new accounts
6. Willingness to assume responsibility, to handle tough situations in the territory without supervision, and to try new methods and ideas suggested by the boss
7. Ability to manage his or her personal life successfully
Managers appraise and coach sales reps each time they are in the field with them. Only thirty minutes may be involved, but the meeting does bring the sales rep and the manager closer together. When skillfully conducted, it presents the manager to the sales rep as a helper. Statistical material is reviewed, and the intangible qualities that make for success are discussed. The manager and the sales rep reach mutual agreement as to what must be done to achieve maximum results. The conclusions reached in such a discussion are sometimes reduced to writing by the manager, and a copy is sent both to the sales rep and to the manager’s supervisor.
For the accurate appraisal of a sales rep, there is no substitute for direct field observation. The key word is action. It is this insistence upon action following a field contact or review or informal appraisal that gives continuity to the entire supervisory and development process going on between the field sales manager and the sales rep.