We have many clients that are run by highly energetic, sales-focussed MDs. It’s extremely powerful (as well as convenient) to be the one with the ultimate say when you’re working on an opportunity, safe in the knowledge of what really is and isn’t achievable for a client.
It also works amazingly well when closing new business and new customers too. You can typically build trust with the customer that you are going to be involved with in the project, and on the other hand they have the added comfort that they have a direct line into the boss if ever things don’t go exactly to plan.
This all sounds idyllic from a business-owners perspective when you’re small, but what happens when the business starts growing?
From observations and research, the concept of the boss being heavily involved in too many deals is often a genuine cause for concern when looking for growth. The size at which it becomes a challenge seems to vary from sector to sector, but it does appear to happen to all sectors at some stage in their development plans. Here are some of the main reasons why:
- As the MD you often get too involved and cannot extract yourself to focus on other responsibilities – you promised the customer ‘X’ so you’d better make sure you deliver it, irrespective of whether it prevents you from getting to other key tasks.
- Because you have assumed the ‘Heroic’ MD role and you have inadvertently made it very difficult for other team members to take the lead – this can often create low morale in your troops and we’ve even seen cases of them leaving to showcase their skills elsewhere (often at competitors)
- You have nowhere to go when it comes to negotiations and are quite happy giving away ‘The Crown Jewels’, having been involved all the way through the sale. You find yourself pressured emotionally and unable to extract yourself from the deal, particularly when you have progressed beyond rapport building into a more relaxed ‘friendly’ customer relationship.
We work with many ‘Heroic’ MDs to try and get them planning and then implementing change. Often this starts with them wanting to reduce their involvement in every sale as it happens.
Typically most sales-focussed MDs want to meet customers and are keen to show that they care, which is great, however, the most successful transitions are the ones that enable the MD to not be involved in every deal but be the one going in with the sales person at the end of the process to ‘look them in the eye’, build trust and agree a good deal.
In order to achieve this position a clear vision for the sales function of the business needs to be created. A defined process also needs to be identified, together with who is involved with what elements of the sale. To complement this you need to have a good training/development plan for your sales talent so that they can see a clear career path, knowing the importance of their role and their likely progression through the business.
The Sales Plus Profit team have worked with many ‘Heroic’ MDs and have seen first-hand the challenges involved, but done well it really can act as a catalyst for sustained growth.
If you’d ever like to discuss, even if it’s simply for someone to act as a soundboard for your frustration, then why not drop us a line at info@salesplusprofit, via Twitter @salesprofit or on the phone number above
