A CEO's Guide to the Differences in Sales Leadership Roles

Posted by Dave Kurlan on Wed, Jun 15, 2016 @ 14:06 PM

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I was reviewing a sales leadership evaluation with my client, a CEO, who was a bit confused over how this was different from a sales management evaluation.  He wondered, "Aren't sales managers and sales leaders the same?"

He has a sales force that was typical of a mid-size business with a Sales VP (the sales leader), 2 sales managers, and about 15 salespeople between them.  In my experience, there is a boatload of confusion over the differences between Sales Managers, Sales Directors, Sales VP's, Regional Sales Managers, National Sales Managers, Senior Sales VP's, Worldwide Sales VP's, Sales Operations VP's, Sales Enablement VP's and Chief Revenue Officers.

Let's attempt to explain some of the important differences between Sales Managers and the other Sales Leadership roles.

At Objective Management Group (OMG), we evaluate both Sales Managers and Sales Leaders as well as Salespeople.  To use the proper evaluation, we often have to ignore titles and pay more attention to reports and function.  

Who are the Direct Reports?  One of the most obvious differences between Sales Managers and other Sales Leaders is who reports to them.  Typically, salespeople report to Sales Managers and Sales Managers report to Sales Directors or Sales VP's.  One of the reasons that executives get confused is this example where, in one company, the manager of 5 salespeople is a Sales Manager, while the company across the hall with 3 salespeople has them reporting to a VP Sales.  Sometimes, the very first hire a company makes is a Sales VP whose role is to sell.  Titles do not tell the story, but reporting structure does!

What is the Primary Function?  The primary function of a Sales Manager is to coach salespeople, so the focus is on tactics.  The primary functions of a Sales VP's are market penetration, building an effective sales organization, systems and processes, and revenue growth, so the focus must be on strategy.  Small companies, looking to hire their first Sales Leader, often want both - someone who can bring strategy as well as tactics.  They must choose between hiring a Sales VP who is willing to perform Sales Management functions, or a Sales Manager who may be completely unproven when it comes to strategic thinking.  A compromise is not usually the solution, so we need to look at who will be reporting to this person and recognize that a proven Sales Manager with a passion for coaching salespeople will have the most impact.

What is the Compensation?  While this can vary wildly depending on the industry, there are some common range differences.  Most Sales Managers earn between $125,000 and $175,000 in total compensation while most Sales VP's earn between $250,000 and $350,000 in total compensation.  When a small company hires someone to perform in the Sales Management role, but awards a VP title, the cost goes up significantly!

What about those other Roles?  Sales Enablement VP's, sometimes known as Sales Operations VP's, arrange for the tools and training.  Sales Directors sometimes report to Sales VP's while in other companies, the reverse is true.  Both positions are necessary when there are too many of one of those titles.  For example, if we have 6 Sales Directors, each with 3 sales managers reporting to them, the Sales Directors would report to a VP.  Or, if we had 6 Sales VP's, each with 3 sales managers reporting to them, the Sales VP's would report to either a Sales Director, a Senior VP Sales, or a Worldwide VP Sales.  And finally, the senior sales leader and the senior marketing leader would report to a Chief Revenue Officer.  In some companies, Sales Managers are the salespeople (think territory managers) while Sales VP's are the sales managers with some expanded responsibilities.

So back to the Review of the Sales Leadership evaluation.  One of the interesting findings that confused the CEO was that while his Sales Leader scored 81% on Sales Strategy and 77% on Sales Coaching, the leader's tendency was to default to Sales Accountability (get tougher) and Sales Recruiting (hire better salespeople) despite having much, much lower scores on those competencies.  We see this a lot with Sales Leaders - using skills where they aren't that strong and failing to use skills in which they are really good!

There are many different styles of leadership and when it comes to Sales Leaders, you may have a preference as to the style and how well that style fits into your culture.  Be warned though. Pick the style you like after you have determined that the sales leader has mastery over the competencies for that particular sales leadership role.  A great style makes it easier to work with someone.  When style trumps capabilities, your new sales leader could be the skipper of a sinking ship.

Topics: Dave Kurlan, sales management, sales leadership, sales VP, Sales Director

Before Your Company Hires a Sales Leader...

Posted by Dave Kurlan on Mon, Jan 30, 2012 @ 09:01 AM

mistakeEveryone has a plan.

Some plans are better than others because they contain all or most of the necessary steps and sequence them in an appropriate order.  Most plans have gaps where steps should be and the sequence doesn't lend itself to success.

One area where we see this occur repeatedly is when companies are about to hire a Sales VP or Director AND they want to evaluate their sales force too.  For some reason, many choose to delay the evaluation until after the VP is in place when in reality, the evaluation should be used to help them select the new sales VP.

Sales VP's aren't like stretchy clothing where one size fits all.  You must be able to choose a VP based on the needs of the organization.  Some of those needs are well known but others, not so much.  Take the quality of the sales managers that would report up to the VP, as well as the salespeople who report to those managers.  Do the sales managers need to be developed?  If so, what kind of help will they need?  Do any or all of the sales managers need to be replaced?  If so, what kind of experiences and skill sets are required?  What about the salespeople?  What caliber are they, where are the skill gaps, how many need to be replaced, what are their capabilities and what types of weaknesses are holding the organization back?  Knowing the answers to these questions in advance help companies specify and select a Sales VP that has the experiences and skill sets to deal with all that is known.

The company has two choices:  

  1. Hire a Sales VP without regard for what the VP will inherit and whether or not the VP has the skill sets and experiences to take on what the unknown.  Let the new VP take 12-18 months to observe and understand the issues and create a plan of action.     Or
  2. Evaluate the Sales Force, and inside of 30 days, discover all of the unknown issues that need to be addressed, the people that need to be replaced, the development that needs to take place, the gaps in skills, systems and processes, and use that to specify exactly what a new Sales VP must be equipped to deal with upon arrival.
With option 1, the company wastes 1-2 years and might still have made a mistake hiring the new Sales VP.
With option 2, the company uses the information from a sales force evaluation to make an intelligent hiring decision and provides the new Sales VP with the equivalent of 18 months worth of observation - only much deeper and wider than he could ever learn on his own - on his very first day.
All of this logic applies to a smaller company that needs to hire a Sales Manager.
Which makes more sense to you?

Topics: Dave Kurlan, sales force evaluation, hiring, sales VP, Sales Director, candidate, sales assessments

Top 10 Ways to Increase Sales

Posted by Dave Kurlan on Mon, Oct 03, 2011 @ 02:10 AM

top10I'll bet that every CEO, President, Director, VP of Sales and Sales Manager asks the "how can we increase sales?" question on a regular basis.  Do you?

There are as many answers to this question as there are politicians running for US President in 2012.  They include but aren't limited to:

  1. Acquire smaller competitors
  2. Add new product lines and/or services
  3. Expand to new geographies
  4. Add salespeople
  5. Increase advertising 
  6. Raise quotas
  7. Improve Quality
  8. Lower Prices
  9. Land some terrific stories in the press
  10. Develop your Sales Force
I'll bet you can't guess which one I'm going to address here...
Surprise - I'm going with #8 - Lower Prices.  Yes - you can increase sales (and go out of business!) by lowering your prices....so instead, I'm going with #10, OK?
Why does developing your sales force make the most sense?  How about 10 more reasons?
  1. It's more affordable than the other options
  2. It makes it easier to accomplish #4 - add salespeople - and #6 - raise quotas
  3. B players become A's.  C's either become B's or get replaced with A's.
  4. It has an immediate impact.  The majority of the work can be completed in the first year and some of the most important work is completed in the first 90 days.
  5. Organic growth returns much greater profit, much more quickly than acquisitions 
  6. Significant increase in closing percentages
  7. Significant increase in new opportunities
  8. Best practices are instituted and become legacy
  9. Sales Systems and Processes are optimized and become legacy
  10. Improved morale as they become a great, top producing sales team.
Between the global economy, the recession, the internet's effect on buyers' access to information, new selling tools and applications, and the need for an optimized sales process, selling has changed more in the past 5 years than it has in the past 50 years.  Most companies haven't changed their approach and still hope that their salespeople, who succeeded prior to the 2008 crash, will somehow get some momentum.  But what worked in 2006 doesn't work in 2011 and won't work in the years to come.  If you want to grow revenue, the best option is to invest in your selling machine. It's the only one that pays dividends!

Topics: Dave Kurlan, sales training, sales force development, sales management, Sales Coaching, CEO, President, VP Sales, Sales Director

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Best-Selling Author, Keynote Speaker and Sales Thought Leader.  Dave Kurlan's Understanding the Sales Force Blog has earned medals for the Top Sales & Marketing Blog award for eight consecutive years. This article earned a Bronze Medal for Top Sales Blog post in 2016, this one earned a Silver medal for 2017, and this article earned Silver for 2018. Read more about Dave.

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