Work

“The devil finds work for idle hands.”

Work, we know, is both a burden and a need, both a curse and a blessing. Unemployment we long ago learned creates severe psychological disturbances, not because of economic deprivation, but primarily because it undermines self-respect.  Work is an extension of personality.  

It is achievement. It is one of the ways in which a person defines himself or herself, measures his worth, and his humanity.

ACTION POINT: Don’t let your self-respect be undermined by being unemployed.  Remind yourself that there are other ways to define yourself besides work.

Accountability for Performance

But this independence works against the execution of a market strategy and keeps companies from leveraging their scale. 

After you have developed the strategic objectives and roles column on the role map, the next step is to identify the success metrics.  These are measurements you will use to determine success in fulfilling the roles that support the strategy.

The process for defining these metrics is one of the most powerful exercises you can do.  It forces you to clearly translate your strategy into the real world.  It requires that you confront head to head two factors that drive accountability:

• Clarity of objectives
• Sufficient influence over results

The sharp-eyed reader will pause on the word "sufficient."  Defining what constitutes a "sufficient" degree of control over the delivery of customer service has been a stumbling block in wholesale distribution for years.  Traditionally, wholesaler-distributors have relied on a high degree of local branch and sales force autonomy to ensure accountability.  But this independence works against the execution of a market strategy and keeps companies from leveraging their scale.  For sophisticated wholesaler-distributors with mature management processes, the trade-off between accountability and strategy has proven to be false.  They have been able to achieve both by clearly understanding when and how to specialize.

ACTION POINT:  Understand how to specialize to achieve both accountability and strategy.

Role Map II

The more clearly and concisely you can write down a role description, the higher the probability that the role will successfully accomplish its objectives.  

It is important that as you write down objectives for the position, you ask yourself whether they really represent a strategy rather than a goal or a wish.  Strategy is bout "how" the objectives should clearly indicate the segment being addressed and the repositioning needed.  If your objective for the position is something like "grow profitable sales by 30%," you are leaving your strategy in the hands of your sales force--which means you do not really have a strategy.

In the second column of the role map--next to each strategic objective for the position--you can now determine the role that each person in a given position must fill in supporting the corresponding objective.  For example, it it is clear that migrating transaction-only customers from FSRs to ISRs is a key strategic objective, then the FSR's role in supporting this strategic objective might be to allocate at least 75% of his or her time to large account demand-creation activities.   

The small size of the role map is deliberate.  The more clearly and concisely you can write down a role description, the higher the probability that the role will successfully accomplish its objectives.  

ACTION POINT: If you are asking a single sales rep to do 20 different thing, how can you expect him or her to give any one of them real priority?

Mapping Model to Strategy

As a rule of thumb you should have no more than six objectives, and ideally two or three.  

Each of the sales models includes several different sales or marketing positions.  The next step is to map these positions back to your strategy.   The role map in the table below is a powerful tool for this exercise.  It enables you to connect your strategic objectives to roles that the position plays in meeting your objectives and to the measurements that will be used to demonstrate successful performance in the role.  The performance measurements become the baseline for goth your sales management system and your compensation plan.

The first column identifies the strategic objective for the position.  These objectives should be based on your strategic market gaps.  As a rule of thumb you should have no more than six objectives, and ideally two or three.  

ACTION POINT: If you find that you end up with dozens of items, then you do not have sufficient strategic clarity to finalize your organizaiton structure--much less dive into sales compensation. 

Structural Sales Models

At a minimum, you will need to make adjustments to fit your particular situation and market.

The following models outline some generic structural options found in wholesale distribution.  These models are just a starting point.  At a minimum, you will need to make adjustments to fit your particular situation and market.

• Classic Field Sales - Field sales reps (FSRs) act as generalists and are assigned to customers based on geographic territories.  They perform demand-creation activities.   Customer service reps (CSRs) provide demand-fulfilment services such as quotations, transaction processing and so forth.  Specialist reps (SRs) provide episodic product technical, or functional support to FSRs when such support is requested by the customer (that is, when thee is a new business requirement  or problem).  The class field sales model is best for early life cycle products, narrow, deep expensive customer coverage and pioneering demand creation.   They provide high value, high-trust solutions and work in undifferentiated segments within the same geography.
• Inside Sales - FSRs act as demand-creation generalists but are only assigned to the highest opportunity accounts.  Inside sales reps (ISRs) are assigned to customers by geography or segment.  They perform demand-creation activities (outbound calling for example).   CSRs provide primary demand-fulfillment services.  Online services (websites, mobile phone apps) provide supplemental customer service functions.  This model is best for mid-life cycle products, medium cost coverage and low density markets.  Selling is based on product or service differentiation.
• Telesales and marketing - Dedicated market research function identifies prospects.  Telephone sales reps (TSRs) conduct high-volume outbound calling.   Targeted marketing (paid web search, search engine optimization, traditional advertising and so forth) generates awareness.  Online services (websites, mobile phone apps) provide primary customer service functions.  CSRs provide supplemental customer service functions.  This modes is best for late life cycle, highly commoditized products where low cost coverage and selling based on price and availability is directed toward transactional and infrequent buyers.
• Team Sales -Groups of various combinations of FSRs, ISRs, TSRs, CSRs, and SRs assigned to customers based on geography or segment.  This model is best for customers that migrate frequently between segments or different stages of the product life cycle and where there are high-value, complex sales transactions.
• Segmented field sales -  Similar to classic field sales, but with FSRs assigned to customers based on segment.  CSRs may play a stronger role in relationship, awareness, and demand-creation activities to offset reduced FSR call frequency.  This model works best for pioneering demand creation and where industry or segment specific expertise and solutions are required in high density markets.  It provides high value, high trust solutions.
• Functional or staged sales - FSRs or SRs provide demand-creation services and are assigned to customers based on geography or segment. Project teams or implementation experts are used for complex customer conversions (for example, inventory consignment, technical engineering support).  At well-defined stages in the sales cycle, account ownership is passed to ISRs.  CSRs or online services provide demand fulfillment.  This model works best in markets in which different customers are in different stages of the product life cycle or where decision makers in the customer organization change at different stages of the sales cycle.  It is also best for high-value, complex sales transactions.
• Multilevel sales - Similar to functional sales except that FSRs typically retain account ownership at the corporate level.  ISRs and CSRs are typically assigned to specific (local) customer locations.  This model is best for major account selling to large, multi location, decentralized organizations.

ACTION POINT:  Review the various structural models and how they may apply to your organization.