A frequent problem for large sales forces

The sales manager of an international firm selling office supply equipment followed a policy of promoting the best salespeople to managerial levels. The firm's human resource manager explained that there were several reasons for this policy. First, the prospect of being promoted was a powerful motivational device. Second, the newly promoted managers enjoyed high credibility with their salespeople because they were known to be among the best in the sales force. Third, as they were salespeople themselves, they had a thorough understanding of the job and the people they supervised.

However, when the sales manager formally assessed the performance of those people who had been promoted, it became clear that not all of them were being successful. In a significant number of cases, it became clear that the firm had exchanged one of its best salespeople for a poor regional sales manager!

Several causes could be attributed to this problem. First, the qualities that are essential for being a successful salesperson are not the same as those required for an effective leader and manager. There was no a priori reason why the promoted salesperson should have those required qualities. Second, promoted staff have only partial and incomplete knowledge to carry out their new duties effectively. Although they typically knew their own territory and had some knowledge of the other members of the sales force, they generally had insufficient information about the sales force, the firm, and its markets.