Sales Report Example

Table of Contents Executive comp discontinueium3 Part 1 GSM military unit Specification4 1. Experience4 2. Qualifications4 3. Required skills5 Part 2 divulgestone issues and Recommendations6 1. Introduction6 2. unwrap issues6 2. 1 pauperism and production line comfort6 2. 2 Recruitment and infusion7 2. 3 cooking and discipline7 2. 4 Key account caution8 2. 5 gross revenue team up structure8 3. Conclusion9 4. Recommendations10 4. 1 channelize the reward arranging10 4. 2 Set up the formal enlisting and survival of the fittest motion11 4. 3 Set up a standardized training11 4. 4 Restructure the gross revenue team with the brand- forward-looking role of KAM13 . 5 Action forge15 4. 6 anticipate Outcomes16 5. Limitations17 6. Bibliography18 7. Appendices19 7. 1 The recruitment appendage19 7. 2 sales passel unhurriedness19 Executive Summary The report is divided in both parts. The first part force out Specification is aimed to identify the required main skills ar as of the new GSM. Those atomic number 18 * quint to eight course of instructions gross revenue experience and management * University degree of cargon or commercialiseing management * Excellent and proven communication skills and social skills * Ability to reate a execution environment and culture to stimulate various(prenominal)s using and pauperization * Ability to negotiate and high directs in numeracy and literacy skills * Personal traits high motivation, ambition in gross revenue, enthusiasm, full commitment, and ability to work under high pressure. The second part, which is the most important part of this report, consists two main sections distinguish issues and recommendations. The key issues take a crap been identified through analyzing our afoot(predicate) companys situations and related theories.Those key issues are * Low motivation and decreasing course satisfaction * The lack of formal recruitment and selection process * The lack of quantity and tone in training and development * The missing role of Key note Management in the gross gross gross revenue operation * The inappropriate gross revenue team structure. Based on the digest of key issues, the fully detailed recommendations are provided in the end of this report, hobby with an Action Plan and pass judgment outcomes. Part 1 GSM Personnel SpecificationAccuClean is in crucial impoverishment of a new General sales animal trainer, who all in al first base for be in charge of the gross revenue team in all regions and report directly to the Managing Director, Peter Ward. Our company is facing several(prenominal) expireers paradoxs and lack of focus in gross gross revenue team. The new GSM is anticipate to guide the new fresh leaders style and able to manage the gross revenue team in all regions to achieve the highest motion and long-term development. The force out specification of GSM volition be illustrated in details. Experience The new GSM is expected to gi ft at least 7 to 8 years sales experience, preferably in B2B marketplace (CPSA, 2012 Myjobs, 2012 Reed, 2012).The experience in B2B sales market is very important for our company since our customers are ranging from small to large size companies, and some(prenominal) of them are with us more(prenominal) than than ten years. He/she has a minimum of 5 years experience in business management, market and sales strategies and planning, and financial oversight (Inc, 2012 Myjobs, 2012). With these experiences, the new GSM is able to diagnose the management problems within our sales operation, and bring in his/ her new approach in leadership style, in dedicate to improve sales teams performance as wholesome as increase the motivation and satisfaction of sales peck.However, we should be very flexible in selecting dumbfounddidates base on experience. If a fecal matterdidate had excellent qualifications regarding his/ her education and 2-3 years experienced, we should non swin g out him/ her from our shortlist. The requirement of sales experience is likely to cause a problem of excluding potential smokedidates ( barterber and Lancaster, 2006). Qualifications The candidate needs to have Bachelor degree of trading or trade Management (CPSA, 2012). The university degree is undeniable since the better educational background will suspensor the new GSM a lot in management.Besides, the combination of education and experience for the GSM position is ideal for long-term development of our sales force. Required skills The new GSM is required to have excellent and proven oral communication skills (Inc, 2012). In addition, the candidate needs to prove his/ her skills in exceptional customer facing and interpersonal skills to enable difficult situations to be overcome successfully (JCT600, 2012). Communication skills are the most crucial qualities of sales commonwealth, especially sales theater director (Jobber and Lancaster, 2006).Furthermore, the new GSM sho uld be able to ready a workplace environment and culture that allows all the sales race in the team to develop and excel their jobs (JCT600, 2012). This requirement is essential since the on-line(prenominal) leadership style in our sales operation does not attend to work very well and need a crucial transmit and improvement. The potential candidate is able to negotiate effectively and at the highest level together with excellent numeracy skills and literacy skills (JCT 600, 2012). For both short-term and long-term development of our sales force, these skills are necessary.Besides, the most two important basic qualities that a not bad(predicate) sales person moldiness have are empathy and ego father (based on the study of Mayer and Greenberg, 1964, cited in Donaldson, 2007). Empathy is defined as the important interchange ability to feel as the otherwise fellow does in golf-club to be able to sell a product or returns (Donaldson, 2007, p. 60). Ego drive is a desire to want and need to progress a sale (Donaldson, 2007). Both of these basic qualities are a must for our potential GSM since in line of battle to be a good sales manager, he/ she should be a good sales person. stretch forth tho not least, we are looking for a new GSM with high motivation, ambition in sales, enthusiasm, full commitment, and ability to work under high pressure (Mathews and Redman, 2001, cited in Jobber and Lancaster, 2006). Part 2 Key issues and Recommendations 1. Introduction Part 2 is aimed to illustrate the key issues regarding our sales operation in AccuClean. The analysis based on our current situation and theory is presented for every issue. Recommendations are sexual climax in the end of this report, followed by the Action Plan and expected outcomes.All the key issues and recommendations are ordered according to its priority of taking urgent actions. Key issues 1. 1 2. 1 Motivation and job satisfaction Motivation is the sum total of effort that a salesperson expen ds on for each one activity or task associated with the job (Donaldson, 2007, p. 230). Many factors are believed to cause positive motivation, such as monetary reward, work load, promotion, degree of recognition, supervisory behaviour, targets, and tasks (based on Adamss injustice theory, Jobber and Lancaster, 2006).In AccuClean, the first factor that causes the low motivation in the sales team is gift scheme, which is perceived by some staffs as unfair. The bonus system in AccuClean is desexualise based on achieving a sales figure supra the individualistic sales target, starting from 5% to a high(prenominal) place target sales with a bonus of 5% basic payment. Last year, just clubhouse sales mass out of 71 have been able to achieve the bonus, which gives the evidence about the inappropriate bonus system. In addition, the salary is based on individual negotiations when they brotherhooded the company, which business leader lead to unfairness between individual sales passel in the team.According to vrooms expectancy theory, it is assumed that races motivation to keep up effort is dependent upon their expectations for success (Jobber and Lancaster, 2006). It means to what extent AccuClean sales people believe by workings harder (increase effort), they will achieve 5% supra target sales (high expectancy), and that higher sales will lead to higher salary bonus of 5% of basic salary (high instrumentality), and higher salary is very important for them (high valence).Moreover, during the intermingler, there were several sales staffs left to join competitors, which may result from the lack of motivations. According to Herzbergs motivation- hygiene theory, working conditions and company policies are two of the hygiene factors, which cause dissatisfaction, thus, lead to low motivation (Donaldson, 2007). Bonus as money is the only type of rewards that is utilise in AccuClean, nevertheless, there are many more types of rewards that could also be app lied, in order to motivate various types of sales people.The suggested bonus system will be illustrated in the recommendation part in the end of this report. 2. 2 Recruitment and selection Bob Carter is in charge of the selection process for new sales people. However, he has no formal system for recruitment and selection as well as no job exposition. Formal selection process is crucially important to ensure the quality of sales persons, which can have a substantial effect on sales turnover (Jobber and Lancaster, 2006). Furthermore, hiring a sales person is very costly, such(prenominal) more than the basic salary.Therefore, selecting the right person for the right position is essential, and can be achieved through setting up a formal selection procedure. Another problem is Carters way of selection he knows a good sales person as soon as he sees one. This bias can harm the screening process, which is part of the recruitment process (see Appendix 5. 1). Either selecting the wrong pe rson or falling good persons is costly (Donaldson, 2007). Donaldson defines job description as the roles and duties attached to a specific position in the organization (2007).It is necessary for AccuClean to prepare job descriptions for any new positions in the sales team, to ensure the righteousness of each team members, thus, no role ambiguity can occur. 2. 3 teaching and development Training is one way for sales managers to improve the performance of the sales people under their controls, broadly to meet the company objectives (Donaldson, 2007). Training and development for sales people in AccuClean are lacked due to several reasons. Any trainings or development relies on the management style and differs in every ASM.There is no formal training process since Carter believes that sales people learn best on the job. Indeed, there are many kinds of training, which includes individual on-the-job training as Carters opinion (Donaldson, 2007). However, good trainings can also be ac hieved through company-specific programs that are organized in a standardized and professional manner. The irregular and occasional training sessions, normally occur when introducing new products ( before long in AccuClean), might lead to the lack of cognition about products and new skill practices.As the merger of one cleaning chemicals and the other in cleaning machinery, training should have been taken at the former(a) stage of the merger, in order to support sales people in both companies about the company objectives and targets, the knowledge of antithetic and new products, competitors and their products, sell procedure and techniques (Jobber and Lancaster, 2006). 2. 4 Key account management Area sales teams are responsible for all accounts regardless their size and importance.The treatment for key accounts, specialty-size accounts or small accounts is much dependent on each ASMs view, its current mix of accounts in the area and experience. There are in fact 21 customers ea ch has accounts worth over ? 4 million. Those customers are important to our business and need to be prioritized as key accounts since the hurt of even one of them would significantly cause a radical drop in sales and profits (Jobber and Lancaster, 2006). Key account management seems currently necessary, in order to serve our key customers with special treatment in all areas of marketing, administration, and service (Jobber and Lancaster, 2006).In addition, key account management will serve well to develop a close relationship between our company as supplier and our customers, in order to enhance the communication and co-ordination between us, thus, spend a penny more in-depth penetration of DMU, which includes push and pull opportunities for buying decisions (Jobber and Lancaster, 2006). 2. 5 Sales team structure The sales territories of AccuClean, which are merely geographic based, have not been changed since the merger. Geographic structure is traditional and the most widely utilise type of sales organization in the UK.It has several advantages such as simplicity, shorter journey times, low travel costs, and less potential for conflicts over office (Donaldson, 2007). However, geographic structure has some drawbacks, which might influence to the effectiveness of the sales team and its management. Examples of disadvantages are the need to sell full range, broad expertise needed, and overhead costs for more layers of management evolved (Donaldson, 2007). In order for the sales team to work more productively and better management, it is necessary to assume some changes concerning our sales team structure (see Recommendations, section 4).The trope of sales people in AccuClean is currently more than necessary, compared to the number of customers. Figure 1 illustrates the current sales people in each ASM as well as the actual needed sales people based on the number of customers in each area. Territory Number of customers Current number of sales people Actu al number of sales people lay off sales people Midlands 1973 26 18 8 south-central 1545 22 14 8 conjugation 1196 16 11 5 Scotland/ unification Ireland 499 7 5 2 UK total 5264 71 47* 24*Figure 1 Number of Sales people (* approximate number) 1 2 Conclusion Five key issues that have been listed and analyzed above are low motivation and decreasing job satisfaction, informal recruitment and selection process, unstandardized and the lack of regular training, the lack of key account management, and the futile sales team structure. Those issues are the most urgent in AccuClean that need to be solved as soon as possible, in order to improve the sales team to work more effectively. Recommendations 4. 1 Change the reward systemBonus (monetary reward), which is the only form of reward using in AccuClean, shows its limitation, therefore, change the bonus system is crucial. The starting point of 5% should be set lower and dependent on different products and accounts. There should also be ot her chances to get commission, which can be based on the one-year sales revenue and profits. In addition to the monetary reward, AccuClean can drill many other types of rewards such as promotion or workload (based on Adams inequity theory, Jobber and Lancaster, 2006).Not all sales people highly value money some of them might place higher value on promotion, responsibility or recognition. Thus, the variable of rewards will motivate different type of sales people, in order to maximize the expectancy and value of reward (Vrooms expectancy theory, Jobber and Lancaster, 2006). A study of sales force practices by Chartered Institute of Marketing showed that sales people are mostly motivated by individual meetings with supervisor to discuss career, job problems, etc. The second ranked propel factors is regular accompaniment in the field by the sales manager (Jobber and Lancaster, 2006).These methods of improving leadership style should be aware by ASMs and higher management. 4. 2 Set up the formal recruitment and selection process The formal recruitment process is proposed as below (according to Jobber and Lancaster, 2006, p. 384). preconceived opinion in selecting applicants should be minimized by carefully preparing job description and personal specification. Of course, the experience of employer should be employ during the selection process. However, those five travel above should be strictly followed to avoid any mistakes during recruitment. 4. Set up a standardized training Good training programs will help to equip our sales people with sufficient knowledge and skills. Besides, it plays as a motivation factor for sales people and positively influences the job satisfaction. 4. 3. 1 When should our company train our sales employees? According to Donaldson (2007, p. 208), the training should be held decently when * New sales person is recruited * A sales person takes on a new territory * New products * New business, new market segments * Company new policies or procedure * Selling habits are unretentive or inappropriate An individual is being considered for promotion The sales techniques are very important to train all sales people in the organization (69% of North European firms providing sales techniques training). The market and customer knowledge is also essential in training (42% of firms providing this, based on roman type and Ruiz, 2003, cited in Donaldson, 2007). 4. 3. 2 Who should do the training? Sales trainer can be senior managers (i. e. ASMs, GSM), technical specialists (from Production department), external specialists, or inner(a) experienced sales people (i. e. from other ASMs).In many cases, training is more likely to be provided by inside company specialists, who not only have the best understanding about the organization and individual needs, but also can tailor training programs to suit both intimate and on-the-job requirements (Donaldson, 2007). 4. 3. 3 Where should training be done? The training can be organize d in internal single localization of function (different ASMs), a centralized external location or a decentralized location (on the job). It depends on the purpose of training and variable factors to decide where to hold the training.Below is the nine possible options that are proposed by Donaldson (2007, p. 210). 4. 3. 4 What methods of training should be used? Lectures, films, role playing, case studies, or in-the-field training are options of training methods (Jobber and Lancaster, 2006). apiece has its advantages and limitations. The point is how to use them properly for different training purposes, in order to achieve the best results and highest satisfaction of participants. 4. 4 Restructure the sales team with the new role of KAM New proposed sales team structure is presented in Figure 2 with two radical changes. ASM North and ASM Scotland will be combined into regional Sales Manager of North and Scotland * Key Account Manager is added to our sales team structure as one au tonomous function Figure 2 Sales Team Structure (proposed) The regional Sales Managers are formed to ensure the number of sales people is interrelated to the number of customers in each region. The number of customers in the North and Scotland, which is 1196 and 499 respectively, is much fewer than the number of customers in Midlands and South (1973 and 1545 respectively).Therefore, it is appropriate to merge two ASMs North and Scotland together, in order to enhance the performance in the broader area, and increase the influence on organizations decision-making of sales people in the North and Scotland area. The Key Account Manager is added to be in charge of all key accounts in the whole UK. KAMs responsibility is to manage all sales people, who are managing those key accounts in different regions. Moreover, KAM is also responsible for potential key accounts and complex DMUs. The communication and leadership style are crucially important to be successful in managing sales people in different areas.Monthly meeting can be organized and the advanced record system (computer based) should be built up to develop the whole sales teams communication flows in long-term. This proposed sales team structure is based on all forms of sell simultaneously KAM for very big accounts, general territory representatives (Regional Sales Managers) for the medium and small- sized accounts (Jobber and Lancaster, 2006). The number of sales people in AccuClean is currently more than necessary, as calculation based on the current number of customers. In fact, it is difficult to get rid of 24 sales people at once, and should not be done in that way.AccuClean can evaluate sales people in the whole company by their performance, motivation and achievement in past years. In a period of 12 months, it is expected to dismiss six sales people. After two years, 12 sales people in total will be educed. AccuClean may inveigle more customers in the future and need more sales people therefore, it is dependent on the situation at the time to decide how many more sales people have to leave. 4. 5 Action Plan 4. 6 Expected Outcomes Limitations The merger of two ASMs North and Scotland into one Regional Sales might cause problem in the span of control.The new RSM will manage 20-23 sales people, which might lead to the role ambiguity and lack of coaching and supervision. The Action Plan illustrates many tasks that need to plump out in the first year, thus, it might be very challenging in the first year for the new GSM. It is a tough decision to fire some sales people in the next two years. It might cause several problems within the sales team concerning rumours or miscommunication. Therefore, it is necessary to have a serious evaluation based on a formal checklist and consultancy from different people in the team.Furthermore, the training needs to be held at the beginning of the year, to inform the sales team about new changes, thus, reduce miscommunication. Bibliography CPSA (20 12) Sales Manager Job description Online. Available from < http//www. cpsa. com/pdf/src/tools/ type%20Sales%20Manager%20Job%20Description. pdf> Assessed 16 December 2012. Donaldson, B. (2007) Sales Management. 3rd ed. NewYork Palgrave MacMillan. Inc (2012) General Manager Job description Online. Available from < http//www. inc. com/tools/general-manager-job-description. html> Assessed 16 December 2012.JCT 600 (2012) General Sales Manager Job description Online. Available from < http//www. jct600. co. uk/data/cm/careers/1028. pdf> Assessed 16 December 2012. Jobber, D. And Lancaster, G. (2006) Selling and Sales Management. 7th ed. England Pearson Education Limited. Myjobs (2012) Senior Sales Manager (Oil Machinery) Online. Available from < http//myjobs. classifiedpost. com/index. php/Job-Search/ENGINEERING-GENERAL-BUSINESS-DEVELOPMENT-ACCOUNT-MANAGEMENT-Job-Description/SENIOR-SALES-MANAGER-OIL-MACHINERY/597925> Assessed 16 December 2012. Reed (2012) General Manager Mi lton Keynes Online.Available from < http//www. reed. co. uk/jobs/general-manager-milton-keynes/22306659/jobs/general-sales-manager-in-milton-keynes> Assessed 16 December 2012. Appendices 3 4 7. 1 The recruitment process 7. 2 Sales people calculation The Figure 1 calculation will be illustrated in details as below. Based on Number of sales people = (Number of customers x Number of call pa) / (number of calls per solar day x Number of working days per year) Suppose there are 225 work days per year, 12 times calling per customer per year (once a month) Each sales person supposes to energize 40 calls per week, 10 of those are to be made to prospects.Therefore, each sales person has to make (40-10)/5 = 6 calls per day. * Number of sales people in Midlands = (1973 x 12) / (6 x 225) = 18 * Number of sales people in South = (1545 x 12) / (6 x 225) = 14 * Number of sales people in North = (1196 x 12) / (6 x 225) = 11 * Number of sales people in Scotland/ North Ireland = (499 x 12) / (6 x 225) = 5