It’s a common misconception that management and leadership are the same things but they’re not. Managing involves dealing with or controlling things – for a sales manager this could be anything from fighting fires to telling reps what they should be doing.

Whereas leadership is about leading people and guiding them to achieve. Both require different skill sets and have vastly different results when it comes to teams. According to author Tom Peters:

 

“Management is about arranging and telling. Leadership is about nurturing and enhancing.”

While sales managers need both management and leadership skills, many tend to manage more than they lead. After all, it’s easy to monitor and react to statistics, processes, and deadlines. But it’s much more challenging to inspire and develop a team to achieve by developing and executing a clear strategy. When a sales team is over-managed and under-led it can lead to several problems that may impact your sales results, team turnover and the overall culture of your sales organization.

Managing is not motivating

One of the biggest issues with managing people rather than leading them is that it can be demotivating. Very few people are inspired to succeed when they’re told that they’re not meeting quota.  By focusing in on the numbers or process constantly, sales managers risk alienating and demotivating the majority of their team and make them feel unappreciated.

According to CSO Insights

20% of salespeople turnover each year

– that’s a significant investment walking out the door. They also found that sales managers only spend about 20% of their time actually helping sales reps sell, something that’s unlikely to be a coincidence. Reps that feel supported are more likely to feel motivated and willing to stay. In fact,

87% of millennials and 69% of other employees

say that development opportunities are important to them in a role. That’s one area where leadership is particularly important.

Directing traffic serves a purpose but it’s far more exciting to take your team on a journey to get them to where they need to be. Rather than focusing in on what someone is doing, strong leadership can help guide salespeople on how they can improve and set a clear path to help them achieve it. This is particularly important in this day and age where buyers are well-informed and savvy. They require salespeople who are well-informed and adaptable, and reps need strong leadership to learn these skills.

Leadership is liberating

Sales teams that are truly led are liberated and unconstrained. They’re given wings to do their job well, rather than being bogged down in red tape and control. This doesn’t mean that leadership equates to anarchy, far from it. But a good leader knows how to influence behavior. They will help their team find a way through the necessary elements of their role so that they can focus on what’s really important – selling better and closing deals.

The numbers are of course important, but a good leader knows which numbers to focus on and how to use them to influence their team. That final step is what makes the difference between a manager and a leader. Numbers and processes are good, but ultimately they are just a tool to inform decisions. If you want a salesperson to perform their best, then you need to look at all the aspects of their role. The numbers can inform this, but they will rarely tell the whole story.

Bain & Co has conducted detailed research

over several years about what makes a leader. Their research has identified leadership attributes that focus in on the human aspects of performance and grouped them into four key areas:

Leadership is less about monitoring and more about creating an environment where people can thrive. This involves building trust, encouraging people to learn and inspiring them to achieve. It’s about building a sales culture that reaps dividends long into the future.

How to shift the balance from managing to leading

There are several things that you can do to focus on leading over managing. One of the most important is to set a strategy and be clear about its goals. It should set the stage for what they need to achieve and how they will go about doing this. This can then be constantly reiterated through communications, coaching sessions, rewards and KPIs. This gives them clarity and also creates a cadence for them to look forward, develop and strive for their goals.

By linking your team’s development, through training and coaching, they not only see that you’re investing in them but that there is a purpose to what they’re being asked to do. It is here where you can rely on management tools – track leading indicators to identify where to focus your energy. Use all the data available to identify the key areas of focus and inform coaching and training programs. While your reps don’t need to know the detail of the analysis, they should be able to see how the areas of focus link to the overall strategy.

Another important aspect of a sales manager’s role is to make it easier for their team to sell. Many sales roles inevitably come with a lot of non-selling tasks and there’s always room for improvement. This often provides a good opportunity for leaders to seek out feedback and suggestions from their team. By giving their team a forum to have their say, the can feel some ownership over the issues and feel like they are proactively involved in trying to address them.

The role of a sales manager certainly isn’t easy, but it can be far more effective by making a conscious effort to balance the need to manage with the importance of leading.

Research by the Sales Management Association has found that

41% of companies have no budget

to train their sales managers, and half of those that do have a training budget don’t offer any specific training to help them manage or lead a sales team. Yet sales managers are charged with the challenging task of motivating and leading their team to bring home the bacon.

The role of a sales manager is quite broad, so you can’t just look at their team’s quota to determine if they’re doing a good job. Here are six signs that may indicate that your sales managers are in dire need of some specific training.
1. They manage instead of leading

Many sales manager are promoted through the ranks, and while they may have been impressive salespeople, that doesn’t mean they know how to lead a team. Just like sales skills, leadership skills need to be learned either through experience or with specific training. Without these skills, many sales managers may naturally revert back to where they feel most comfortable.

This can manifest itself in several ways. Some may prefer to take over a deal and do the selling themselves. Others might spend all their time on their A players or C players, and leave the majority of their team floundering with no direction.
2. They see everything (or nothing) as a priority

You can’t do everything, that’s a simple fact of life, but it is something that a manager has to learn. Sales managers need to be able to differentiate between the tasks that are urgent and important and those that are not and prioritize them appropriately. The importance they place on particular tasks will be reflected in their team, which will rapidly magnify them. As leaders, sales managers must set the priorities for their team so they know where to spend their time.

Coaching is a classic example of something that is often overlooked even though it should be a priority on a sales managers to-do list. If a sales manager doesn’t know how to coach effectively they may de-prioritize it in favor of something they’re more comfortable with. So if some important things aren’t being prioritized, perhaps look into whether your sales manager has the skills to lead or coach their team effectively.
3. They can’t see beyond the horizon

It’s easy to get distracted fighting fires each day, but sales managers need to find the time to look beyond their immediate priorities and plan for the future. Developing a long-term strategy can be daunting even for experienced managers. It takes time, planning and discipline to develop a strategy that is clear, consistent and can be monitored. Without this, managers may find themselves directing their team aimlessly or, worse still, going around in circles. When you’re leading a team, this kind of ambling is inevitably reflected in how the team behaves – they have no purpose or direction.

If your sales manager can’t articulate exactly what they want their team to focus on in the next three, six or 12 months then they may need some help putting together a strategy that provides their team with clear direction and guides them on how to achieve it.
4. They don’t know how to identify performance issues in their team

Numbers, quotas and KPIs only tell part of the story when it comes to why someone is performing under par. Sales managers need to draw on a range of information and experience to really understand where their team’s skill gaps may be. Once an issue is diagnosed, the sales manager then needs to determine the best way to address the issue.

This can be quite challenging, particularly when some issues aren’t readily solved by training initiatives. For example, if a rep lacks motivation there may be many soft issues that need to be addressed to get their performance back on track – perhaps a good rep feels like they’re being underutilized. An experienced sales manager might bring them into the fold to help motivate other reps, but a less-experienced sales manager may not be able to identify and resolve these performance issues or tackle them in a way that is less than effective.
5. They let the loudest team members dictate the direction

The squeakiest wheel may get the oil but it isn’t always the one that needs the most attention and it’s the same when it comes to sales teams. Just because one person is complaining the loudest, it doesn’t necessarily mean that their issue is the direst or in need of attention. This is an issue that inexperienced sales managers may face the most, particularly if they’re lacking confidence. This can result in potential inequities in their team, misdirection of their energy or even alienate some team members.

Sales managers need to develop their softer skills so that they can manage different personalities effectively. These skills take a long time to develop unless specific training is provided.
6. They lack consistency

It’s not unusual for sales managers to develop their own processes and approach, but this lack of consistency, particularly in larger organizations can quickly become problematic. Sales managers need to be open to learning new things so they can all speak the same language, leverage the same information and embed consistency amongst their teams. This ensures that customer interactions are consistent, the messaging they hear is the same and also ensures that each sales team is on a level playing field.

From an organizational perspective, consistency enables sales teams to be compared accurately and reduces the possibility of confusion. But without sufficient training and guidance, it is almost impossible to achieve consistency across the entire sales organization. The best way to achieve this is for one area to have responsibility for ensuring processes, training, and the information is rolled out and monitored across the entire organization.