Exam One Flashcards
What is leadership
Ability to influence and guide followers or members of an organization, society or team
- Often tied to persons title or ranking
Why is leadership needed
- Improves communication
- Creates better work environment
- Improves productivity
- Increases Efficiency
- Decreases Mistakes
- Motivates Employees
- Sets a good example for others
- Creates a strong vision and direction for the future
- Helps to keep employees on track
Leaders & Communication
Leaders foster communivation and create an environment where everyone feels comfortable sharing ideas. This encourages a work culture where new ideas are welcome and misunderstandings are avoided
How do leaders create better work environment
Creating an atmosphere of trust and respect fosters creativity and collaboration. In turn the moral is higher in workplaces leading to better workplace relationships
How do leaders increase productivity and efficiency
Ensures everyone works towards the same goal, they provide guidance and direction while delegating tasks
Leaders decrease mistakes
Leaders want to minimize mistakes. It is especially important in high-pressure environments where mistakes can have serious consequences
Leaders need to be able to identify potential problems early and quickly resolve them
Leader Motivates Employees
Good leaders understand the different strategies and not all of them work for everyone.
Leaders set good examples
People are more likely to follow someone they see as a role model
- By showing the values and goals of their team, they can show others what it means to be a committed and successful member
Create a Strong vision for the future
A successful leader understands the importance of having a solid vision and how to create one that will guide their organization toward a bright future
- Without clear vision, maintaining momentum or progressing toward long-term goals can be challenging
How do leaders keep employees on track
By clearly communicating the companies vision and objectives as progress is made and changes occur, then providing the necessary support and resources for success
People Manager Tasks
Recruitment
Coaching
Leading
Management
Motivation
Customer manager tasks
Account plans
Key relationships
Complex sales
Opportunities
Assist sales process
Company –> Field tasks
Resources
Company functions
Strategy to local needs
Company Culture and Policies
Administration and Logistics
Field –> Company
Market Info
Field Performance and activities
Strategy to local needs
Administration and Logistics
Manager
Reacts to what has just happened
Focus on short term issues, putting out fires on a daily basis
Uses one-way communication to explain policies/procedures
Do things right
Leader
Takes proactive steps to avoid future problems
Builds a team that works together toward a long-term vision
Listen/respond to concerns using two-way communication
Do the right thing
Transactional Leaders
Focus on goals
Use rewards and punishments for motivation
Are reactive in nature
Transformational Leaders
Focus on vision
Use charisma and enthusiasm for motivation
Are proactive in nature
Truths about leadership
You manage THINGS, you lead PEOPLE
Having position of leadership does not mean you are the leader
You are not really the leader until the group leading says so
Building Influence as a Leader
By meeting peoples legitimate needs
Through service and sacrifice
By developing trust
What do people expect from leaders
Honesty
Feel appreciated and respected
Competence
Forward-looking
Inspiring
Feel they are accomplishing something worthwhile
Understand the contributions they are making
Feel like they are “in” on things
Patience
Purpose of a Team
Make strengths of each person effective and his/her weaknesses irrelevant
Oral effective communication
Listen actively
Speak clearly
Show empathy
Use Non-verbal cues
Practice active listening
Good business writing should have:
It’s simple
Specific
Surprising
Stirring
Seductive
Smart
Social
Story-driven
Problems are
Opportunities to improve a system
Problems typically
Do not have an immediate obvious resolution
Additional major business problem causes
Machines
Measurements
Money
Politics
Environment
Culture/values
Technology limits
Business problem causes
Physical - material items failed
Human - People did something wrong or did not do something needed
Organizational: System, process, or policy is faulty
Team meetings
Process that shows team’s real culture
Problem Solving Steps
Specify the problem
Analyze the causes
Develop potential solutions
Select Solutions
Establish goals
Develop action plan. Implement, and follow-up
Pareto Charting Uses
Analyze data about the frequency of problems
Analyze data about causes in a process
When there are many problems or causes, and they want to focus on the most significant
Meeting roles
Leader
Team member (participants)
Recorder
Timekeeper
Goal conflict
each party’s goals threaten the goals of the other
Judgement Conflict
Agree on goal but not on how to attain it
Values Conflict
One party evaluates the other on the basis of how they behave or what they believe
Power conflict
Each party feels they are correct, and it is disadvantageous to share the power
Conflict management styles
Accommodate
Compete
Avoid
Compromise
Collaborate
Sales Creativity
Number of new ideas generated, and novel behaviors exhibited by the salesperson in performing their job
EI
Emotional Intelligence
Needed to be creative in sales
Which strategy or conflict resolution is the “best”
Collaboration
Both relationship importance and Goal importance see an improvement
Process Steps to Successful Collaboration
- Manage Feelings
- Create a supportive climate
- Describe the conflict
- Understand goals
- Create solutions
Sales team function
most efficiently when members share a common understanding of each other’s roles and responsibilities
Why have a sales structure
Organize is to provide organization with structure… a mode of operation… is to submit a method, a determined way of selling
Better evaluate, control and coordinate sales activities
Increase sales force’s effectiveness in achieving objectives, both individually and collectively
What do you need to know for a successful business strategy
Where you want to go
How to get there
How do you get to a successful business strategic plan
Activities and people must be organized accordingly
Coordinate effectively
Objectives for sales structure
Execute marketing plan and sales strategy
Management control and monitoring mechanism
Content of Sales Structure
- Configuration
- Sales process
- Distribution network
- Customer hierarchy-Segmentation
- Sales territories and sales cycle
- Description of the salesperson’s responsibilities
- Management mode and the role of the sales manager
- Territories and the management cycle
Roles and Responsibilities of salespeople
Creating value for customers
Managing Relationships
Relaying information
Providing information
Handling Transactions
Resolving issues
Creating Value for Customers
Salespeople help customers find the right products or services that meet their needs, adding value to their purchasing experience
Managing relationships (salesforce)
Build and maintain strong customer relationships, ensuring long-term satisfaction and loyalty
Relaying information
Salespeople act as a bridge between the company and its customers, providing valuable feedback and market insights to their organizations
Salespeople & Handling Transactions
Salespeople process sales transactions, manage inventory and ensure customers receive their purchases promptly
Salespeople providing information
They inform customers about product features, benefits, and pricing, helping them make informed decisions
How do salespeople resolve issues
They address customer complaints and issues, escalating them to management when neccessary
Growing Number of sales
Rev = num of sales * size of avg sales
- Increasing number of leads-aggressive outreach
- Reducing attrition through sales process
- Increasing speed
- Understanding an industry and its players
Growing average size of sale
- Ensuring utilization of sold products with customization and customer service
- Improving client retention through detailed, relationship-building
- Selling add-on services and products existing clients based on their needs
Advantages of specialized teams
Salespeople capitalize on different skills and focus on core competencies
- Recruitment is straightforward: personality traits variation
- Incentives and track metrics
Disadvantages to specialized teams
- Hierarchy
- Client may feel abandoned
- Knowledge may be lost/misunderstandings
Advantages to Hybrid Role
- Strong long-term relationship management
- Bond with clients based on trust
- Customized incentives
Disadvantages to Hybrid Role
- Few agents can perform both functions
- Conflicting responsibilities
- Complex incentives
Independent Sales Agents
Same as Manufactures Rep, paid on commission basis to represent the service or product in a specific region. Serve as a company’s outside sales, marketing and customer service
- Cash flow improvement
- Payment after sale
- Selling expense as a variable cost
Sales territory
designated set of current and prospective customers, grouped within geographic boundaries for a given period of time, with an established level of specialization”
Number list of customers assigned to a salesperson
Objectives of sales territory
- Ensure optimum coverage of potential market
- Improve customer relations
- Improve sales morale and efficiency
- Facilitate sales force monitoring and evaluation
- Reduce sales costs
- Optimize marketing activities
Criteria of an ideal territory
- Regular and efficient sales service within any area defined for coverage
- Clear definition of customer assignment and territorial lines
- Balance within and between territories of travel, active account, and potential account service
- Method for determining the number of salesman that would maximize the sales department profit contribution
- A basis for evaluation of the salesmen, which could become the foundation for a sound salesmen’s-compensation program.
Metrics
Number or quantity that records a directly observable value or performance
- all have units
Leading indicator
define the actions necessary to achieve your goals with measurable outcomes
Lagging indicator
Measures current production and performance
Attribution theory
Explains how salespeople make sense of their actions and goals
The way people explain the causes of behaviors and events
How employees will connect he lead indicators with lag indicators
SMART
Specific
Measurable
Achievable
Relevant
Timed
Examples of Quantitative goals
Sales volume
Profitability of sales
Number of new customers
Number of orders
Examples of Qualitative goals
Initiative
Attitude
Autonomy
Judgement
How do companies forecast?
Survey methods
Mathematical methods
Executive opinion (survey method)
‘nose of managers’
Fast and easy - not necessarily reliable
Delphi technique (survey method)
- Small group of experts, each making their own forecasts and assumptions
- A company expert analyzes the results
- Back to the drawing board… until consensus is reached
Sales team consolation – classification ABCD (survey method)
Salespeople’s “clue”
Those closest to the market
Can be too optimistic/pessimistic
Averaging technique (mathematical technique)
Sales from several previous periods are used to project the future
Easy calculations and accurate forecasts for products with a stable sales history
Less accurate in the event of changes in the environment or for new products
Correction model
Considers past cycles, assigning more or less weight to certain periods – seasonal interventions
Regression analysis
Several complex mathematical methods used to make projections into the future
