Chapter 17.
Leadership and Supervision

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• Building Relationships 3M’s A.C.T. Training Program
  At 3M innovation is everything Creating an innovative sales force was the goal 3M started asking customers how to improve salesperson’s skills 3M developed a survey to reveal how customers assessed 3M’s sales force
  A.C.T.
  A	ssessment and analysis	Survey customers who rate each salesperson in these areas Product (or service) knowledge Leveraging time with customer Interpersonal selling Sales negotiation internal influence and teamwork Customer-focused quality Give summary to salesperson Determine where training is needed
  C	urriculum content	Internal classroom training Approved Self study programs Video and/or audio cassettes University training
  T	raining transfer	The shortfall of most programs Managerial programs to reinforce and coach
  A.C.T. translates into better ways to serve the customer

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• Introduction
  Sales managers must provide leadership to the sales force What is the role and purpose of leadership? What are leadership concepts? What are leadership styles? How do we implement leadership?

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• What is leadership?
  The process of getting things done through others
  Definition	"the process in which a leader influences the thoughts and actions of others towards a mutual goal"

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• Leadership theories
  Trait theory
  Behavior theorists search for a universal set of traits that make a leader Some believe that leaders can be born Some believe that leaders can be trained Traits do not always predict leadership Not all leaders have the same traits
  Traits or skills that are key to leadership*   *American Management Association	Flexible leadership style Takes initiative to lead Gives and gets trust Has vision or goals Communicates openly and freely Demonstrates competence Shares decision making Creates an action plan to improve the above
  Behavioral theory
  Focus on what they do not on what they are. Two composite dimensions of leadership behavior
  Consideration	Friendship Mutual Trust Respect Warmth
  Initiating Structure	Organization and definition of relationships between themselves and followers
  No style was found to be best overall Few managers can maintain a high score on both dimensions
  Contingency theory
  Attempts to combine	Traits Behaviors Styles Situations
  Conditions that affect leadership	Nature of the organization - type of product, etc. Leaders level in hierarchy - lower levels usually need more technical ability than conceptual ability Leader-member relations (Likeability) Task structure - unstructured salespeople consider leadership less important Position power - What is the salesmanager's power over the salespeople? Leader-Subordinate personalities - When both are strong and domineering there usually are problems
  Contingency Leadership Theory a contingency theory
  Research found leadership depends on	Quality of leader's personal relationship with subordinates The leader's formal authority The degree of structure in the selling activity
  Leadership can be improved by:	Modifying the leader's style Formalizing the leader's authority Adding structure to the group's task
  Path-Goal Theory a contingency theory
  To get results	Tasks must be performed (path) Results (accomplished through tasks) are the goals Rewards should follow
  Role of a leader	Ensure that the path to the goal is clear to the subordinate Reduce barriers to achieving the goal Increase pay-offs to subordinates that attain the goals
  Same leadership variables with contingencies added
  Consideration	Friendship Mutual Trust Respect Warmth
  Initiating Structure	Organization and definition of relationships between themselves and followers
  Environmental Contingency Variables	Task Structure Authority System Work group
  Subordinate Contingency Variables	Perceived ability Locus of control Subordinate Authoritarianism
  Leaders must adapt their consideration and initiating structure to the environmental and subordinate contingencies
  Path Goal Theory
  Leader's behavior is acceptable to subordinates insofar as they view it as a source of immediate or future satisfaction.
  Situational leadership theory a contingency theory
  Widely accepted model Leader's behaviors interact with subordinate maturity Relationship behavior Task behavior Maturity is the ability and willingness to take responsibility for directing their own behavior Psychological Maturity : Willingness and motivation to perform a task confidence commitment toward an objective Job Maturity - Actual ability to perform a task through Education Training Experience Follower Readiness Ability Willingness Match the four leadership style combinations with the four follower readiness combinations
  Situational Leadership Model R e l a t i o n s h i p B e h a v i o r H I G H Follower Readiness High Ability Low Willingness Follower Readiness Low Ability High Willingness Leadership Style Low Task High Relationship Leadership Style High Task High Relationship   L O W Follower Readiness High Ability High Willingness Follower Readiness Low Ability Low Willingness Leadership Style Low Task Low Relationship Leadership Style High Task Low Relationship   Low Task High Task Task Behavior
  Blanchards Leadership Questionnaire
  A potential pitfall: attribution error
  Attribution Error	Over attribute personal factors Under attribute environmental factors As familiarity increases awareness of environmental factors increases
  Result	Economic or competitive differences across territories may get ignored

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• Leadership styles
  Theory X & Theory Y
  Democratic v. Autocratic
  Democratic	Uses persuasive ability Emphasizes human beings Group Decisions
  Autocratic	Uses Structural Position to maintain Authority Control Discipline
  Employee v. Production-Centered
  Employee Centered	Concerned with employees first Actually more effective at increasing production
  Production Centered	Concerned with sales first
  Transactional v. Transformational
  Transactional	Rely on situational reinforcement to motivate the sales force An agreement of short-term goals is created Specific rewards are spelled out
  Transformational	Goal is to get subordinates to transform their self-interest into group interest Leader must probe deeply for motivators Transform motives or latent needs to current needs Transformational leaders tend to Encourage subordinates to participate Share power with subordinates Share information with subordinates Seek to enhance subordinates' self-worth Strive to get subordinates excited about their work

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• What kind of leadership, when?
  There is a lot of overlap between leadership styles One style will not be effective all the time
  Style		Appropriate When	Inappropriate When
  Autocratic	Manager makes all decisions Rewards and punishes	Salespeople are new Salespeople are out of line in some way An immediate decision is needed This is what management wants	Salesforce is experienced Salesforce is knowledgeable Salesforce is scattered
  Persuader	Manager makes all decisions Sells them to the group	A common action is needed cooperation is essential A quick decision is needed	No special circumstances Mature sales force
  Consultative	Manager asks for Ideas Manager still makes the decision	Salespeople are willing to talk harmoniously Salespeople are willing to accept manager's final decision	New salesforce Inexperienced salesforce Combative salesforce
  Democratic	Manager acts as a moderator Group makes the decision	Small concentrated sales force Must have enough time Accurate facts and figures must be available	Large scattered force Inexperienced sales force A quick decision is needed
  Laissez-faire	Group defines problems and solutions Manager implements	Independent reps
  Summary of leadership styles
  No style is best all the time The best sales managers create confidence in themselves and in their sales force Some sales people will require close supervision The cost of bad leadership is huge

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• Management by Objectives
  How sales management differs	geographic dispersion of subordinates unique situation faced by salespeople
  Management by Objectives
  Manager and salesperson together Set goals Plan implementation Evaluate results
  The MBO Process
  Manager prepares by Learning about the salesperson's ability and personality Learning about the salesperson's territory Each salesperson prepares personal objectives for the period Manager transmits company objectives in simple language Manager determines goals in cooperation with the salesperson Manager and salesperson plan in detail the steps that allow reaching that goal Manager and salesperson set a date to evaluate results
  One to three goals per cycle is typical Goals should be Specific Achievable Relevant Frequent updates and encouragement should be given Attainment of steps to be noted and acknowledged Non-threatening mutual evaluation is essential
  Why Leaders Fail	Some become outdated for the as the organization changes Some have strengths that are exaggerated over time Some become abusive of their success and power. Some have personality disorders or emotional concerns that interfere with their meeting the demands of their position
  Qualities, characteristics and habits	Procrastination Perfectionism Type-A (workaholic) Narcissism (self-centered) Authoritarian Low self confidence Stress dumper (contagion) Conflict avoidance Need to be liked/accepted Need to know everything Need to be certain of everything Chronic anger, abrasive, sarcastic, vengeful Incompetent, "Peter Principle" Insensitivity to needs and expectations of others Cold, aloof, distant, arrogant Betrayal of trust, break confidence Unable to take strategic view (long term planning) Unable to use staff effectively and build cohesive team Overdependent on advocate or mentor Unable to adapt to superior with different style Overly ambitious; thinking of next job, playing politics Specific performance problems with business (not know the business) Overmanaging (Unable to delegate or build team)

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• Finding tomorrow’s leaders

  Many Organizational Cultures suppress leadership Search for effective leaders

  Look for people that stick their necks out (Iconoclasts) Look in the hinterlands (everywhere) Award initiative Give young employees unusual challenges Test on non-mainstream (atypical) problems Look for people with a constituency (following) Look for style Trust your instincts

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• Training tomorrow’s leaders

  Traditional leadership training focus

  Skill-building Decision Making Communication Concepts Outdoor adventures Teamwork Risk Taking Feedback

  Specialists now recommend "Action Training" Actual leadership problems Real Time Structured environments

  Center for Creative leadership Leader Lab Test your leadership skills here Employee from hell.com

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• Summary

  Leadership is a skill needed by sales managers

  Leadership is very different form management skills

  When selecting sales managers check for previous leadership success