What Type Of Sales Manager Are You?

Part 4 – The Turnaround Sales Manager

This is part four of a series of articles on the different types of Sales Managers. Just as there are different types of salespeople (hunters, farmers, call center reps, independent reps, etc.), there are also different types of Sales Managers. Understanding the different types of Sales Managers and identifying your specific type, will help you to define and achieve the expectations of that role.

Keep in mind that you may possess characteristics of several Sales Management types. However, when you read each of these articles, think about which type most closely aligns with your current role. From that you can determine which one you want to become.

The fourth type of Sales Manager is the Turnaround Sales Manager. This Sales Management type is one that is called in to rescue an organization that is about to go under due to a lack of sales. This is the most extreme form of the six Sales Management roles because the company will have to file bankruptcy if it is not fixed quickly.

Conditions
The reason to hire a Turnaround Sales Manager is simple – to keep the company from going out of business or to prevent it from being sold off at less value and at a great loss to shareholders. Regardless of the reasons why the company is in jeopardy, it must be fixed quickly. Obviously, one of the quickest ways to save a company is to increase sales and margins. Achieving this goal, however, requires the vision and fortitude of a special individual – the Turnaround Sales Manager. I’ve worked with many organizations in this unenviable situation and the answer for many of them was simple – sell your way out of the problem. This requires an extremely focused approach to selling and generating quick cash.
Typically, here are a few things the Turnaround Sales Manager must do to be successful:

• Terminate poor sales performers immediately (there is absolutely no time to waste with mediocrity)
• Preserve as much cash as possible by reducing expenses
  • This can mean lowering your salespeople’s’ fixed salaries and increasing their variable commissions to drive sales performance
• Drive salespeople to work longer and harder (you’ll be tapping into many nights and weekends here)
• Reduce new business acquisition costs
  • Remove any unnecessary or poor performing marketing or lead generation strategies
  • Bulk up the strategies that deliver tangible qualified leads… right now
• Scrutinize the quality of your salespeople’s’ pipeline in order to focus them only on high priority sales opportunities (through clearly defined qualification standards) so they can finalize transactions quickly and generate immediate cash
• Renegotiate payment terms with existing clients that gives them a better rate if they pay more right now
• Identify key revenue accounts and solidify those critical relationships in order to continue cash flow
• Motivate the team through extreme forms of motivation (either threat of losing their job or significant bonuses for those who contribute to the turnaround sales quotas and time frames)
• Hold a sales team together, maintain morale and keep them productive under extreme pressure and fatigue

Success
So what is a successful Turnaround Sales Manager? Success occurs if you save the company – period. The primary goals are to avoid bankruptcy or a low-value sell off and stabilize revenue and margins. After that, you’ll want to maintain mid and long-term cash flow through an increase in the customer base, increase customer retention levels and control margins.

There is no question that this is the most difficult Sales Management role of the six we’ve covered. It’s a fact that some organizations wait too long or fail to act in a timely manner that puts them into such dire circumstances. Others are faced with dramatic shifts in their industry or the economy. In either case, the leader of the sales team is tasked with the responsibility of selling their way out of the problem. The risks are high, the job is not attractive to many, but the rewards can be high. It certainly takes a unique form of leadership to successfully pull off such a feat, but for the chosen few who venture to attempt to do so; the sense of accomplishment and value to the many families and community that are impacted can far outweigh the cost.

About the Author

Barrett Riddleberger is an internationally recognized leader in the practice of sales assessment, sales training, sales recruitment and retention. His new book, “Blueprint of a Sales Champion,” details how organizations can find, train and retain top performing salespeople even in a highly competitive market. An accomplished lecturer, Riddleberger is also highly in demand as a business development and motivational speaker for organizations seeking to inspire their sales force. For more info go to www.ResolutionSystemsInc.com or www.BlueprintOfASalesChampion.com or call 336.665.0506