How Do Sales Managers Spend Their Time?

© 2008 The Sales Management Association How Do Sales Managers Use Their Time? About This Study This study of sales management time allocation was conducted jointly by the Sales Management Association and Profitable Growth, LLC. Survey findings are summarized here, and reviewed in detail in the joint Growth Solutions, LLC and Sales Management Association Research Brief “Improving Sales Manager Effectiveness: A Survey of Sales Managers’ Time Utilization.” Sales Management Association membership may download an unabridged version of these slides and the Research Brief at www.salesmanagement.org . 3

Summary of survey findings

Leadership’s call to action

A framework for change

Breadth and scope of the sales management job

Time allocation: actual versus desired

Linking time allocation to growth

Time allocation and saes management span of control

Improving sales management effectiveness

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Sales management’s role is diverse and complex, frequently involving responsibility for multiple markets, channels, and selling roles.

Sales management’s time allocation is inefficient, and results in lost growth capacity. This is perhaps a function of job complexity.

Sales managers believe their time allocation should be weighted more heavily toward customer- and market-facing activities, with less time spent on administrative activities.

Sales Manager Time Allocation Study Summary Findings 5

Sales management time allocation on “core” management activities associated with work “in the trenches” (i.e., with customers, channel partners, or salespeople) is positively correlated with improved growth results.

The root causes of inefficient time allocation are directly controllable or readily influenced by senior sales leadership.

Sales Manager Time Allocation Study Summary Findings (continued) 6

© 2008 The Sales Management Association Limit demands made on first-line sales managers likely to reduce managers’ external focus. Leadership's Call to Action 2. Limit Internal Demands Made On Sales Managers’ Time

Gain control of requests for sales management time made by those outside the sales force.

Demonstrate restraint in asking sales management to generate sales reporting inputs or forecasting data.

Work to secure sufficient funding for reporting enhancements.

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© 2008 The Sales Management Association Transition sales management’s participation in firm-wide planning activities from a reactive to a proactive role. Leadership’s Call to Action 3. Make Planning Proactive

Reserve time in advance of the annual budgeting cycle, and at regular intervals throughout the year.

Proactively develop the strategy, tactical plans, and budgets for the sales organization.

Funnel others’ requests for information into the sales organization's planning cycle

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© 2008 The Sales Management Association Mandate time spent by Sales Managers in customer and salesperson activities. Growth Solutions LLC’s recommendation: Leadership’s Call to Action 5. Mandate Sales Managers’ Time Allocation

3 days: mid-level Sales Managers

3.5 days: first-line Sales Managers

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Changes in time allocation alone are insufficient.

Address quality of sales management’s activities – not just quantity.

This three-phase framework drives improvements :

Give time back to Sales Managers by implementing this survey’s calls to action for sales leadership. Define the sales management process for your firm: expectations for sales force management, roles, and desired time allocation for each sales management level. Provide focused training in the appropriate areas for sales management process (e.g., sales planning, deploying/recruiting sales staff, performance management, coaching, etc.). 14

© 2008 The Sales Management Association Too Much Time Spent on Administration Survey Findings 10% 31% 11% 30% 12% 25% First Line Managers Mid Level Managers Top Level Managers Actual Desired Actual Desired Actual Desired Company Administration “ Core” Time Selling and Market Development Managing Performance Deploying Staff Sales Planning ACTIVITY CATEGORIES 17 0% 20% 40% 60% 80% 100%

© 2008 The Sales Management Association All Management Desires More Planning Time Survey Findings 17% 13% 17% 15% 19% 16% First Line Managers Mid Level Managers Top Level Managers Actual Desired Actual Desired Actual Desired All levels of sales management desired to spend more time on sales planning – on average, an additional eight days per year. Company Administration “ Core” Time Selling and Market Development Managing Performance Deploying Staff Sales Planning ACTIVITY CATEGORIES 20 0% 20% 40% 60% 80% 100%

© 2008 The Sales Management Association First-Line Managers’ Time Managing Performance About Three Hours Per Salesperson Per Month. 26% First Line Managers Actual Company Administration “ Core” Time Selling and Market Development Managing Performance Deploying Staff Sales Planning ACTIVITY CATEGORIES 22 0% 20% 40% 60% 80% 100%

© 2008 The Sales Management Association First-Line Sales Managers: Too Much Time Alone Survey Findings First Line Managers Mid Level Managers Top Level Managers Actual Desired Actual Desired Actual Desired Self (Office, Travel, etc.) Vendors Sales Management Team Customers Salespeople INTERACTION CATEGORIES Other Functions Within Company 20% 12% 20% 15% 13% 21% 13% “ In the Trenches” Time 24 0% 20% 40% 60% 80% 100%

© 2008 The Sales Management Association First-Line Sales Managers: Too Much Time Alone Survey Findings First Line Managers Mid Level Managers Top Level Managers Actual Desired Actual Desired Actual Desired Self (Office, Travel, etc.) Vendors Sales Management Team Customers Salespeople INTERACTION CATEGORIES Other Functions Within Company 20% 12% 20% 15% 13% 21% 13% “ In the Trenches” Time First-line sales managers spend 20% of their time alone, presumably on company administration. 25 0% 20% 40% 60% 80% 100%

© 2008 The Sales Management Association First Line Managers Mid Level Managers Top Level Managers Interactions with vendors, the internal sales management team, other functions within the company, and time spent with self (in office, travelling, etc.) Customers Salespeople INTERACTION CATEGORIES “ In the Trenches” Time Not Enough Time “In the Trenches” Survey Findings Percentage of Actual Time Spent 26 0% 20% 40% 60% 80% 100% 20% 28% 14% 58% 16% 16% 68% 32% 16% 52%

© 2008 The Sales Management Association First Line Managers Mid Level Managers Top Level Managers Interactions with vendors, the internal sales management team, other functions within the company, and time spent with self (in office, travelling, etc.) Customers Salespeople INTERACTION CATEGORIES “ In the Trenches” Time Not Enough Time “In the Trenches” Survey Findings Percentage of Actual Time Spent Each level of sales management spends more time with other internal functions than they spend with customers or channels. 27 0% 20% 40% 60% 80% 100% 20% 28% 14% 58% 16% 16% 68% 32% 16% 52%

© 2008 The Sales Management Association This abridged presentation is provided as a preview. Sales Management Association members may access the presentation in its entirety, and download copies in Powerpoint format, at the Sales Management Association website: www.salesmanagement.org . Consider joining The Sales Management Association, the premier professional association for sales leaders, sales support professionals, and sales force effectiveness thought leaders. Learn More The Sales Management Association 32

© 2008 The Sales Management Association Growth Solutions LLC is a research partner of the Sales Management Association. Growth Solutions, LLC is a management consulting firm dedicated to helping its clients grow revenue profitably. Growth Solutions accomplishes this mission by working closely with its clients to: identify and better understand growth opportunity, develop a strategy for growth, align their organization and sales force with the growth strategy and marketplace opportunity, and manage and refine the resulting change within and outside the sales organization For more information on how we help our clients deliver profitable growth, please contact David Fritz, President, at +1 630.904.3742 or [email_address] . 33 Learn More Growth Solutions LLC

© 2008 The Sales Management Association About The Sales Management Association The Sales Management Association is a global professional association focused on sales management’s unique business and career issues. The Sales Management Association fosters a community of interest among sales force effectiveness thought leaders, consultants, academics, and sales management practitioners across many industries. Through training workshops, online resources, and research materials, The Sales Management Association addresses the management issues of greatest concern to practicing sales managers. The Sales Management Association’s focus areas include management leadership, sales force performance coaching, sales planning, sales process management, enabling technologies, incentive compensation, and sales force support. Learn more about the Sales Management Association at www.salesmanagement.org Interested LinkedIn.com members are invited to join the Sales Management Association’s LinkedIn group: http://www.linkedin.com/e/gis/104432/0A5AAA7A4E46