Sales: Are you led or driven?

This is the second article in a four-part series. The series explores three themes and culminates in a wrap-up of musings timed for the new year....

Sales-led vs Sales-driven

Sales, the lifeblood of a company. ?Twenty-odd years ago when I first assumed a pinnacle position in a grass-roots company, having come from a technical, non-sales, background, this was a reality-check and a lesson to learn.?Quickly.?Having journeyed that for over 20 years I can now reflect that the lessons relating to sales have been many, two of which are probably truisms and include “Everyone is responsible for sales” and “Sales success starts at the top”.?The latter lesson I’ve always taken to mean that the CEO or MD is the ultimate “Head of Sales” in a company.?They might not necessarily carry a quota, but they “own” the company’s top line performance and therefore they “own” sales.?Two phrases I’ve used interchangeably over the years to describe this are that the company is “sales driven”, or “sales led”.?Recently, however, I’ve come to recognize that these phrases describe very different things.?Whilst both might seem to suggest that “sales success starts at the top”, a company that is sales driven is not the same as a company that is sales led.?I believe that companies, and leaders, should advocate for a Sales Led approach, recognizing that being Sales Driven is sub-optimal.?

What does Sales Driven look like??Scenario one: The CEO / MD recognizes the importance of sales and so probably spends a significant portion of their budget in this area.?Probably too much!? Scenario two: They recognize the importance but don't fully appreciate what is needed, and underspend. In the final analysis, s/he has ultimately assumed the “Head of Sales” role but doesn’t necessarily have the bandwidth or the depth and breadth of expertise to be a true sales leader and so the function exists sub-optimally.?The fundamentals of this discipline will exist – for example sales quotas, territories, basic plans – but beyond this there is probably not much else.?Various “traditions” and disciplines will probably only exist sporadically, but not necessarily in a “best in class” form that can drive significant gains, for example prospecting, forecasting, account segmentation, strategic account planning, etc.?For the most part, the CEO/MD is driving the sales functions from behind.?They’re not at the coal face talking to clients or prospects but are instead back in the office setting the targets and high-level parameters and simply checking in/up every week or two. ?When they run the weekly sales meeting it’s mostly for “round the horn” updates and then on some other infrequent cadence they’ll pull together a sales workshop which is an attempt at looking at business slightly differently.?However, from year to year there are very few tweaks and changes, nothing radical, and the sales function as it exists today will probably resemble quite closely the function that existed five years ago.

A Sales-Led organization differs from a Sales-driven organization in that Sales as a function is treated as a specialized area and it enjoys the dedicated time and attention of a true sales LEADER.?Someone who is out in front, walks with the sales team and talks to clients.?The leader is someone skilled in the arts and the crafts of sales; they know the subtle skills of relationship building and they don’t get wound around the axle on process, but they know that good discipline and process within the sales team allows for scale and growth, and they lead from the front setting the example of what good looks like.?

In a sales-led function the tools, techniques, disciplines, processes & artifacts are fit-for-purpose, and all combine to provide a more efficient and effective execution when compared to a sales-driven one.?The sales potency in a sales-driven organization is, quite simply, likely to be a lot less than if it were sales-led.

Looking at your organization, is it clear who the sales “Leader” is??Has your sales leader had the time and space to transform the sales function over the past five years to reflect the changing landscape and to drive growth in ability, capability, and maturity in the sales team?? Simply put is your sales function being pushed, or is it being led?

Next in the series: "Fame or Fortune?"

NOTE:?The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any employer, past or present. Examples, anecdotes and analysis shared are drawn from personal experience, interactions, and observations over many years.?