322 Management of a Sales Force, 12th Edition PART 3 Directing Sales Force Operations Leadership Style4 Possessing certain characteristics and skills gives the manager the potential to be an effective leader, but more is needed for that potential to become a reality. Ultimately, the measure of good leadership is how the manager behaves. In other words, what the leader does is more important than who she or he is. Good leaders use a wide variety of managerial or leader behaviors. The combination of behaviors that a manager typically uses is known as that manager's leadership style. Most behaviors tend to be consistent with one of two distinct styles of leadership: transactional leadership and transformational leadership. Transactional Leadership In a sales context, transactional leadership generally refers to those supervisory activities regarding the day-to-day operation and control of the sales force. In other words, transactional leadership equates to supervision. It is a reactive style of leadership that centers on the exchange—or the give-and-take—between the sales manager and salesperson. Sales managers who are effective transactional leaders appropriately provide verbal feedback in the form of rewards and punishments to their salespeople. For example, when a salesperson makes a big sale, the sales manager praises her (gives her a verbal reward). When a salesperson shows up late for a meeting, the sales manager points out his mistake (gives him a verbal punishment). Transactional leaders exhibit task orientation—a short-term focus on getting the job done. This orientation generally involves one-way communication; the leader tells salespeople what to do and how, when, and where to do it. That is, transactional sales managers know the right way to do things and are excellent supervisors. They inform, monitor, and clarify company rules, policies, and procedures to their sales force. The transactional leadership style relates to the working relationship between the Bales manager and salesperson. The sales manager who checks with his or her salespeople each morning to see what their plans are for the day is directly supervising their activities. Many other managerial actions constitute indirect supervision, such as auditing expense accounts or appraising sales performance. Transformational Leadership Transformational leadership transforms the basic values, beliefs, and attitudes of followers such that they are willing to perform at levels above and beyond expectations. Individuals exhibiting this style are usually referred to as charismatic leaders.6 These are exceptional leaders who make a meaningful difference in the performance levels of their followers. Whereas transactional leaders focus primarily on short-term problems, transformational leaders take proactive steps in anticipation of the future. In other words, they don't just know the right way to do things; they also know the right things to do. Furthermore, they genuinely car.

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Management of a Sales Force, 12th Edition
PART 3 Directing Sales Force Operations
Leadership Style4
Possessing certain characteristics and skills gives the manager
the potential to be an effective leader, but more is needed for
that potential to become a reality. Ultimately, the measure of
good leadership is how the manager behaves. In other words,
what the leader does is more important than who she or he is.
Good leaders use a wide variety of managerial or leader
behaviors. The combination of behaviors that a manager
typically uses is known as that manager's leadership style. Most
behaviors tend to be consistent with one of two distinct styles
of leadership: transactional leadership and transformational
leadership.
Transactional Leadership
In a sales context, transactional leadership generally refers to
those supervisory activities regarding the day-to-day operation
and control of the sales force. In other words, transactional
leadership equates to supervision. It is a reactive style of
leadership that centers on the exchange—or the give-and-take—
between the sales manager and salesperson. Sales managers who
are effective transactional leaders appropriately provide verbal
feedback in the form of rewards and punishments to their
salespeople. For example, when a salesperson makes a big sale,
the sales manager praises her (gives her a verbal reward). When
a salesperson shows up late for a meeting, the sales manager
points out his mistake (gives him a verbal punishment).
Transactional leaders exhibit task orientation—a short-term
focus on getting the job done. This orientation generally
involves one-way communication; the leader tells salespeople
what to do and how, when, and where to do it. That is,

2. transactional sales managers know the right way to do things
and are excellent supervisors. They inform, monitor, and clarify
company rules, policies, and procedures to their sales force.
The transactional leadership style relates to the working
relationship between the Bales manager and salesperson. The
sales manager who checks with his or her salespeople each
morning to see what their plans are for the day is directly
supervising their activities. Many other managerial actions
constitute indirect supervision, such as auditing expense
accounts or appraising sales performance.
Transformational Leadership
Transformational leadership transforms the basic values,
beliefs, and attitudes of followers such that they are willing to
perform at levels above and beyond expectations. Individuals
exhibiting this style are usually referred to as charismatic
leaders.6 These are exceptional leaders who make a meaningful
difference in the performance levels of their followers. Whereas
transactional leaders focus primarily on short-term problems,
transformational leaders take proactive steps in anticipation of
the future. In other words, they don't just know the right way to
do things; they also know the right things to do. Furthermore,
they genuinely care about those they lead. They use two-way
communication, and they are always open to listening to the
concerns of each follower.
Management of a Sales Force, 12th Edition 320
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CHAPTER 11 Leadership of a Sales Force

3. 321
Management versus Leadership
Sales managers must be more than managers; they of the
behaviors associated with the two roles—
also must be leaders of their sales force. The fol- both of
which are important.
lowing table outlines the key differences in terms
Managers... Leaders...
React to what has just happened Take proactive steps to
avoid future problems
Focus on short-term issues, putting out fires Build a team that
works together toward
one at a time a long-term vision
Provide reps with feedback, such as praise for Are role models
who lead by example—they
a job well donedon't just bark orders
Use one-way communication to explain policies
Listen/respond to the concerns of each
and procedures rep via two-way communication
Do things right Do the right thing
Use transactional leadership style Use transformational
leadership style
Described below are four transformational leader behaviors that
are especially relevant for sales managers.
Articulate a Vision
Transformational leaders create a common, compelling vision
for guiding the future of their companies. They describe to
subordinates an exciting, challenging future for them and the

4. company. They get people to work toward a common end, even
sometimes at the expense of their personal goals.
Of course, the vision for the sales organization typically stems
from the company's overall mission as described by the
president or chief executive officer. This does not mean,
however, that articulating a vision is not the sales manager's
responsibility. The sales manager breaks down the overall
mission statement into usable sales tools and objectives for the
salespeople. In other words, the sales manager should
communicate the big picture to salespeople in ways that make
sense for them. This is not easy to do. One estimate is that only
about 20 percent of companies have a clearly identifiable
mission statement that sales managers understand and
effectively articulate to their sales teams.6
Foster Group Goals
Fostering group goals means promoting cooperation—
encouraging followers to work together toward a common goal.
An organization greatly benefits when leaders successfully
persuade followers to sacrifice their own personal goals for the
sake of the team.
In this era of team selling, it is especially critical for sales
managers to build teamwork through identifying the goal of the
group. Transformational leaders must convince each salesperson
that she or he cannot operate as a lone wolf. Salespeople must
help each other. The strong performers, for example, should be
asked to help the inexperienced, low-performing reps. In
addition, sales managers must encourage their salespeople to
recognize the
PART 3 Directing Sales Force Operations
importance of nonsales personnel. Customers have come to
expect salespeople to provide solutions to their business
problems, but this can only be done when salespeople work
closely with engineers, manufacturing specialists, and other co-

5. workers.
Provide a Role Model
Transformational leaders do not merely bark orders—they
practice role modeling, or leading by example. They behave in a
manner that is consistent with the values they espouse and with
the goals of the organization. Leaders who demonstrate high
levels of honesty can expect their salespeople to be honest, too.
Similarly, those who exhibit a strong work ethic inspire their
subordinates also to work hard.
In a sales context, there are many specific ways in which sales
managers can be effective role models for their salespeople.
Because they want their salespeople to listen to customers, sales
managers themselves listen to the thoughts and concerns of their
salespeople. For similar reasons, sales managers present a
professional image through appropriate dress and grooming and
prompt arrival to meetings and appointments. Perhaps the most
important way in which managers can serve as role models is to
personally demonstrate proper selling techniques so that
salespeople see how sales calls should be handled.
Provide Individualized Support
Finally, transformational leaders genuinely care about and
respect their subordinates. They oversee their individual
development and are concerned about their personal feelings
and needs. As we noted in Chapter 8, on motivation, each
person tends to have a unique set of needs and capabilities.
Thus, providing individualized support is a difficult, time-
consuming task for any leader. At the same time, it is an
important task—especially in a sales context. Sales managers
should take the time to learn about each salesperson's
background, family, hobbies, and so on. This information may
help the manager know how to address specific problems that
arise. Because salespeople are under heavy emotional demands
due to the inevitable ups and downs associated with selling,
most of them greatly appreciate and respond to a sales manager

6. who shows true concern for their individual needs.
Situational Leadership
Obviously, a sales manager cannot use all behaviors all the time
with all salespeople. What makes a sales manager an excellent
leader is situational leadership—that is, the ability to tailor
leadership style—transformational or transactional—to the
needs of the current situation and the individual salesperson.
Figure 11-2 lists four different situations and indicates
appropriate leader behaviors for each. For a newly hired,
inexperienced sales rep, the sales manager must first engage in
a heavy dose of transactional leadership. New reps need to learn
a great deal about the rules and procedures associated with the
job; thus, the sales manager must engage in extensive one-way