Prepared by : Md. Anwar Morsalin, Asst. General Manager (Sales & Marketing), Gaco Pharmaceuticals

May 2013

Management & Leadership Training for

First Line Sales Manager

Purpose of the Training Program

First-Line Managers make important decisions on a daily basis that are critical to the execution of company’s strategies and satisfaction of its customers.

This program is geared to train the basics of leadership and management to individuals in this critical position, supplying them with the tools they need to make optimal decisions that are aligned to the organization’s strategy and lead their teams in execution.

This one day (8 hours) training program will help them in understanding their basic management & leadership roles in the organization.

After this session they will be able to focus better their roles & responsibilities.

Contents ______________________________________________Management & the ManagersWho is a First Line Manager (FLM) ?The Role of the First Line Managers (FLMs)What does Responsibility mean?Core responsibilities of 1st line sales mangersA Strategy-Based Approach to First-Line Sales Managers’ ResponsibilitiesDifferences in 1st, 2nd & 3rd line sales managers’ rolesFive things first-line managers should knowManagerial SkillsLeadership SkillsManagers vs LeadersManagers have subordinatesLeaders have FollowersMotivating MPOsJoint Sales Calls : An important guiding tool for MPOsManaging Vacant Territories Sales Activity Monitoring (SAM)Transactional Analysis in salesCase Study

What is Management ?A set of activities (planning, organizing, leading, controlling and decision making) at an organizational resources (human, financial, physical, information) to achieve organizational goals in an efficient & effective manner.

Who is a Manager ?A manager is a person who is primarily responsible to carry out management process.

Who is an Ideal Manager ?The ideal manager for an organization must be both EFFECTIVE & EFFICIENT.

Effective Manager : Who makes right decision and successfully implement them to achieve the objectives.

Efficient Manager : Who achieve the objectives in a cost effective way.

Management & the Managers

They will report to second line managers who are responsible for the day to day work of many teams each with a first line manager.

Who is a First Line Manager (FLM) ?

Traits of successful First Line Sales Managers

A. They understand MPOs and manage them wiselyB. They leave sales to the MPOs (most of the time)C. They align MPOs in the field with company goals

First line managers are those directly responsible for the day to day work of a team of employees.

1st line sales managers are the key to any successful operation. A person who is hardworking, sincere, with strong leadership quality can change the scenario completely.

He is like a player, coach, mentor, or teacher to his team members. He has to sell performance to his own people through right direction, delegation and control.

The Role of the First Line Managers (FLMs)

FLMs are required to be able to plan, prioritise and monitor performance and progress.

They need to be able to identify performance issues, understand how to evaluate the behaviors and performance of both teams and individuals and take action to address performance issues.

FLMs need to take responsibility not only for their performance, but the performance of others as well.

FLMs undertake a balancing act working as an intermediary between senior management and team members.

Responsibility is the ability to respond. Ability implies there is a need for certain knowledge, skills and tools and response implies some form of action needs to be taken. The effectiveness of an FLM is directly linked to their Ability to Respond.

What does Responsibility mean?

Why sales people fail ?

Lack of clarity & consistency of goals, objectives & direction make the sales people disorganized.

Lack of proper monitoring of the sales processes.

Miscommunication and lack of coordination between sales & marketing activities.

Lack of proper selling skills (sales training) make sales people fail.

When they believe that business will come to them, they fail. In selling profession, business does not come, we have to go out and have it by doing hard work.

Lack of follow up in a timely manner, which makes the sales people and the organization lose credibility.

Lack of commitment of the sales force toward achieving sales target due to lack of proper motivation by the line managers.

They ensure the team has a common understanding of individual and team sales mission.

They coach sales people. They train sales people continuously with real-time examples.

They recruit, develop an internal and external network to continuously attract talent.

Core responsibilities of 1st line sales mangers

They manage the sales target given to his MPOs, remove obstacles to selling, conduct joint sales calls and win/loss reviews, conduct bottom performer management and identify opportunities for efficiency.

They lead the team, motivate, inspire and execute the sales strategy by translating strategies into actions.

A Strategy-Based Approach to First-Line Sales Managers’ Responsibilities

First-line sales managers are the key link between an organization’s strategy and the day-to-day activities of the sales force.

The first-line sales managers are uniquely positioned to play a critical role in driving the decisions of senior management as the direct connection from senior sales managers to the field.

A. Directing the MPOs The first responsibility of the first-line sales managers is clarifying and explaining the Business strategy to the MPOs.

They plays a critical role in translating andreinforcing those decisions throughout the MPOs.

They need to focus the MPOs on the right customers and areas.

A Strategy-Based Approach to First-Line Sales Managers’ Responsibilities

They need to guide MPOs with necessary selling techniques considering the customers’ attitudes & importance.

B. Organizing the MPOsThe first line sales managers must organize (coordination among team activities & performance toward company policies) their respective MPOs based on marketing and sales strategies; like day to day activities, sales time allocation based on customers’ importance, team efforts, and administrative issues etc.

A Strategy-Based Approach to First-Line Sales Managers’ Responsibilities

C. Executing the StrategiesThe Execution area is typically the focus of first-line sales managers.

Educate MPOs on achieving target: They can influence the degree to which targets provide the highest level of focus and motivation for the MPOs. Measure and manage performance: First line managers needs to measure performance of his team. Managers must also coach their MPOs through regular activities such as one-on-one meetings, phone calls, and traveling with MPOs to customer sites to transcend poor performance. Communicate for sales compensation: It is their role to explain, communicate and give examples of how an MPO can earn incentive under various performance scenarios.

A Strategy-Based Approach to First-Line Sales Managers’ Responsibilities

D. Supporting the MPOsFirst-line sales managers offer the MPOs with the right messages, as well as recruiting and training talent, which will determine the MPOs ultimate success in selling. Provide the right messages: First-line sales managers should ensure each MPO has the right messages to identify leads, sell solutions and develop a compelling value proposition to customers.

Develop sales competencies: They can help identify talent short-falls and methods for filling those gaps. Clarifying to an MPO the types of skills required and where they may need to develop goes a long way in building an MPO’s ability to be effective.

A Strategy-Based Approach to First-Line Sales Managers’ Responsibilities

The role of first line managers is basically supervisory in nature, they supervise the activities of MPOs and ensure that all the plans of the company are implemented by the grass root workers (MPOs).

This role can be played only by first line managers as they are close to the MPOs most of the time; second line managers can not be with every MPO every week so they can not ensure implementation by each MPO.

The first line managers are implementers of the company's strategies, their job is to see that an MPO implements the company‘s strategies in the field. They play very minimum role in planning.

The second line managers and above come under senior managers. They play key roles in business planning which is supposed to be implemented by first line managers and MPOs.

So the basic difference between 1st & 2nd or 3rd line managers is that the first is implementer while the second and third line mangers have to do lot in terms of planning, and ensure execution.

Differences in 1st, 2nd & 3rd line sales managers’ roles

Effective Management Skills

Productive and effective management is not an innate quality, management skills can be cultivated, developed and learned.

Some managers inspire, some motivate, and others fail miserably to engage their employees.

When employees choose to leave a position, it's often because of their manager or relationships with people in their working environment.

People quit people, not jobs.

First line sales managers must motivate their team to make them productive & reduce turn over of sales talent, and also to support &

train to improve performance of average MPOs.

Five things first-line managers should know

They are the first contact point between line workers and management

Polish business communication skills (verbal & written)

Learn how to think strategically

Get comfortable with complexity and uncertainty

Improve management and leadership through personal mastery

Invest in professional development programs

Communication Skills

Guidelines for effective communication

1. Stop talking2. Put the talker at ease3. Show a talker that you want to listen4. Remove distractions 5. Empathize with a talker6. Be patient7. Hold your temper8. Go easy on argument and criticism9. Ask relevant questions10. Stop talking

Communication Process

Develop Idea

Encode

Bridge of meaning Receive DecodeTransmit

Barriers

Message

Feedback for two-way communication

SENDER

RECEIVER

Accept Use

Diagnostic Skills : The ability to observe the most appropriate response to a situation.

Interpersonal / Human Skills : The ability to communicate, understand, and motivate both individuals and groups.

Conceptual Skills : The ability to think in the abstract.

Technical Skills : The skills needed to understand and do tasks relevant to the organization.

Managerial Skills

Managerial Skills

Diagnostic Skills

Interpersonal / Human Skills

Conceptual Skills

Technical Skills

Top Managers

Middle Managers

First Line Managers

Leadership Skills

Interpersonal / Human Skills

Conceptual Skills

Technical Skills

Top ManagersMiddle ManagersFirst Line Managers

Managers vs Leaders

Managers are persons who get the job done by others.

Leaders are those who have followers.

The biggest difference between managers and leaders is the way they motivate the people who work or follow them, and this sets the tone for most other aspects of what they do.

Many people, by the way, are both. They have management jobs, but they realize that you cannot buy hearts, especially to follow them down a difficult path, and so act as leaders too.

"To truly lead one's people, one must also truly know them." ~Nelson Mandela

Authoritarian, transactional styleManagers have a position of authority given by the company, and their subordinates work for them and do as they are told because they have been promised a reward for doing so.

Work focusManagers are paid to get things done, often within tight constraints of time and money. They thus naturally pass on this work focus to their subordinates.

Seek comfortThey tend to lead normal and comfortable lives. This leads them to be relatively risk-averse and they will seek to avoid conflict where possible. In terms of people, they generally like to run a 'happy ship'.

Managers have subordinates

Managers have subordinates and their power over others comes from formal authority.

Leaders do not have subordinates, when they are leading. When they want to lead, they have to give up formal authoritarian control, because to lead is to have followers, and following is always a voluntary activity.

Charismatic, transformational styleTelling people what to do does not inspire them to follow you. You have to appeal to them, showing how following them will lead to their hearts' desire

Leaders have Followers

People focusThey are always good with people, and quiet styles that give credit to others (and takes blame on themselves) are very effective at creating the loyalty that great leaders engender.

This does not mean that leaders do not pay attention to tasks - in fact they are often very achievement-focused. What they do realize is the importance of enthusing others to work towards their vision.

Leaders have followers

Seek riskLeaders are risk seekers, although they are not blind thrill-seekers. When pursuing their vision, they consider it natural to encounter problems and hurdles that must be overcome along the way.

Subject Leader ManagerEssence Change Stability

Focus Leading people Managing workHave Followers Subordinates

Horizon Long-term Short-termApproach Sets direction Plans detailDecision Facilitates MakesPower Personal charisma Formal authority

Appeal to Heart HeadDynamic Proactive Reactive

Persuasion Sell TellExchange Excitement for work Money for work

Likes Striving ActionWants Achievement Results

Risk Takes MinimizesRules Breaks Makes

Conflict Uses AvoidsDirection New roads Existing roadsConcern What is right Being rightCredit Gives TakesBlame Takes Blames

Managers vs Leaders : an overview

Motivating Sales Team

What is Motivation ?Motivation is a psychological feature, that makes a person to act towards a desired goal and elicits, controls, & sustains certain goal-directed behaviors. Motivation is the purpose or psychological cause of an action.

In one day, 1. your MPOs may want to work as hard as possible to achieve the objective or2. to work hard enough to avoid a reprimand or 3. to do as little as possible.

The goal for a first line manager is to maximize the occurrence of the first incident and minimize the occurrence of the last incidence.

The face of any organization is the sales force. Companies spend a considerable amount of time and money on sales force rather than on any other promotional activity. However, sales force is expensive and companies are looking forward to managing them in an efficient and effective manner.

Motivating Sales Team

How do I motivate my sales team ? How do I retain top sales talent ?

MONEY is not the only way to motivate the salespeople ;ENGAGEMENT is the way, it is a bigger motivator than money

In a survey, 78% employees cited RECOGNITION as a motivating factor in their career.

Facts behind keeping your team motivated

69 % work harder if they are better recognized

52 % are not satisfied with their current recognition

49 % leave as they would be recognized by another company for their efforts

39 % do not feel appreciated at work

72 % feel they are disengaged

18 % disengaged employees undermine co-workers success

Motivating Sales Team

• Be specific about the objectives, goals, strategies etc.• Be focused about the tasks (including the sales process)• Update the MPOs about compensation plan (sales incentives, reward etc.)• Give public recognition• Recognize something besides sales• Involve the family / friends• Match the FPs talents with company’s objectives• Build personal & trusting relationships with co-workers• Encourage open & frequent conversations to avoid disengagement• Train salespersons continuously• Help salespersons in career development• Give feedback immediately• Show respect

2 proven principles that work well in motivating salespeople 1. Recognition and 2. Appreciation

Joint Sales Calls : An important guiding tool for MPOs

• The joint fieldwork gives you an excellent opportunity to:• Help the team members perform better • Establish your leadership • Train, develop and assess the professional competence of your team members on-the-job.• Assess the movement and availability of different products • Develop rapport with KOLs (key opinion leaders)• Assess sales trends and competitors’ activities in different markets• Plan your work to ensure optimum utilization of time.• Based on the observations made during joint fieldwork, identify areas for the team member’s development. • Demonstration can be used to show how something could be done. • This provides an opportunity to the team member to identify the areas that need improvement.

Managing Vacant Territories : 1st line manager sales managers’ focus

A 1st line sales manager should be on the constant lookout for good prospective candidates in each territory.

Till a suitable replacement is selected, maintain the sales of the vacant territory by ensuring the regular coverage of all the key doctors.

Be in touch with the important customers of a vacant territory either by phone or physical sales calls.

Keep the vacant territories active by selling products & generating prescriptions by your own until a suitable candidate is found.

Sales Activity Monitoring (SAM) : Essential of Pharmaceuticals Sales Management

What to monitor ?MPOs daily activities & outcomeCold sales calls and warm sales callsMPOs performance & sales growthCustomers’ Feedback

How to monitor ?Verbal Monitoring : Daily communication over cell phone to tract his every movement in the market place & day’s outcome.

Monitoring by documents : Observing DCRs, TPs, sales performance, utilization of resources, sales calls frequency etc.

Meetings : Analyze outcome & next strategies to overcome difficulties.

Transactional Analysis in sales

Transactional analysis is a theory about personality, personality development and communication.

An Ego state is a consistent pattern of feeling and experience, and normally associated with particular patterns of behavior. The three ego states are Parent, Adult and Child: The Parent state : Caring & ProtectiveThe Adult state : Organized, & Logical The Child state : Natural, Spontaneous, and Emotional

Relationship PatternParent & Child relation - Protective & EmotionalAdult & Adult - Logical & LogicalAdult & Child - Logical & Emotional

Physicians & Salesman - ?ASM & MPO - ?

Roles of a 1st line sales managers : a brief

The role of a first-line sales manager is a juggling act. They have to close sales, coach and motivate their team to be customer-relationship specialists.They should know how to develop and execute a successful sales strategy. The pressure is on their shoulders as the success of the sales department is largely dependent on how well they can handle these multiple priorities.

A 1st line managrt is a trusworthy motivator , team leader and 100% positive result oriented person for the organisation, he should be good communicator having good product knowledge and most important he should be frank ,open and passionate . He can lead his team by motovating the team members in positive way that they should acheive their goal every month with the help of company's strategy which should be 100% implementing in the field .

Case Study

Find out 3 difficulties in your area regarding MPOs’ productivity improvement in Gaco Pharmaceuticals.

Explain the reasons behind these difficulties.

Suggest suitable solutions to overcome these difficulties.

What are the managerial steps will you take at your end next in this regard ?

A prescribed format will be used in the case study, where common difficulties will be mentioned to help them to study the case. Moreover, open discussion session will be conducted to learn about the case study.

Q &A

Thank You