6 Different Sales Management Styles For First-Time Leaders

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A business survives or thrives on its sales. In most cases, a dedicated team is responsible for driving those sales and bringing in revenue – regardless of how challenging the market and consumer landscape may be. But a sales team can’t function without good leadership. In short, a sales manager creates the sales strategy and keeps the team on track.

A good sales leader needs to direct, motivate, instruct, and keep staff making sales. These sound like typical ingredients: abilities and approaches that all leaders have. But managers are individuals, and in reality, there is no standardized way of managing a sales team.

This extends to how managers communicate. Communication is key in any business. When you consider the options for the best small business phone systems or the different ways you can structure meetings or set out staff appraisals, you begin to see there is more choice than you’d imagine.

The same goes for leadership styles. The different ways of managing a team are almost infinite because each individual will have their own slant and personality.

As a first-time leader, you will be responsible for forming the general sales strategy and deciding what kind of leader you’ll be. Which style you eventually adopt will probably evolve and will depend to some extent on the company you work for and the kind of culture the business fosters.

If you look at books on sales management, you will see several approaches and styles that most managers will fit, to some extent. While no list will be exhaustive, there are certainly several principle management styles worth considering. Let’s look at six of the most common. Image Source

1. Autocratic

This is perhaps the most traditional management model: a top-down management structure with a boss in sole charge – making the decisions and giving directions to the sales team, who then carry them out.

This management style doesn’t usually allow for much input from the sales team, apart from checking how sales are going or reporting any issues that might hinder achieving targets.

There are certain advantages to this style; it’s certainly very streamlined and much faster than needing back-and-forth conversations to make decisions. The time-saving advantages of this style can also be seen when assessing performance, such as checking whether strategies to grow your sales are effective. It’s harder to hide underperformance with an autocratic structure; the simplicity of the set-up means that problems aren’t overlooked so easily.

But there are of course disadvantages to this style too. Not seeking input from the sales team means stifling initiative and fresh ideas. If a team member had the idea to provide a proposal for accounting services template on the company website, or any other innovation to drive interest and sales, they might not feel empowered to contribute. Talented staff can feel frustrated and move on, causing a higher than desirable staff turnover.

As a new manager, this style can also be problematic. It’s pretty unforgiving of any mistakes or wrong directions in leadership. The boss is in charge and therefore responsible for all successes or failures. 

2. Transactional

This style is focused on results. Sales leaders following this approach oversee a system of setting goals, supervising the team to achieve those goals, and giving rewards and encouragement when targets are met.

This management style focuses on incentivizing and driving sales, covering every aspect from direct sales to point of sales solutions. It’s often popular in mid-sized companies rather than small businesses, where greater flexibility and collaborative working usually produce better results. 

A transactional team leader will look at the numbers, targets, and success rates of each sales teammate. The manager will give feedback and guidance, but only in so much as the metrics show the necessity. In a sense, it’s a reactive rather than proactive approach.

However, for a new manager, this style does have advantages; it has clear parameters and one clear objective. There is generally a defined system of incentives and guidance in place, and the sales team knows exactly what’s expected of them.

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3. Transformational

This leadership style emphasizes coaching and developing a sales team, to help them meet their targets and become better salespeople. To understand this approach, it’s important to know the difference between sales coaching and sales training.

All managers will ensure team members receive any training necessary to do the job, but not all will commit to ongoing coaching and development.

A transformational leader will help their reps achieve their potential and encourage input from sales teams – fostering creative thinking around selling and building a team who feel engaged and committed to the company and its culture. 

This type of leadership views the professional development of its reps as a key part of driving sales in the short and long term. They will endeavor to provide guidance, encouragement, and enrichment necessary to ensure sales teams achieve their best results.

This style of management is common in smaller and newer companies and startups. It’s a holistic approach, and a new manager needs to have broad skills to lead in this way.

4. Democratic

Democratic leaders take an inclusive and collegiate approach to leading their teams. It’s the opposite end of the spectrum in a sense to the autocratic manager.

Democratic leaders encourage their reps to contribute ideas, such as suggestions for top affiliate programs or innovative sales strategies. Each member is encouraged to collaborate and play an equal part. Instead of being top-down, this approach distributes power, putting even the manager on an equal footing with the rest of the team. It’s a helpful approach for teams from diverse backgrounds, who might be disadvantaged by a more rigid, one size fits all leadership style, that doesn’t consider the individual contributions that team members are capable of making.

The advantages of this approach are that relationships are more easily built, there is a stronger sense of being a team, and more likelihood of reps helping each other. As a democratic boss, you will need to think about how to foster this cooperation by choosing which topics to discuss with your sales team and how to encourage each member to contribute.

The main drawbacks of this leadership style are that reaching a consensus can be time-consuming, and that care needs to be taken to ensure fairness. At the same time, the leader needs to have the authority to make tough decisions and act decisively.  

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5. Motivational

Motivating your team is important for any manager, regardless of leadership style. But a true motivational leader is a cheerleader as much as a manager.

This type of leader inspires and ignites the imaginations and ambitions of their team. The leader should have a clear vision and share this effectively with the team and the company. Communication is vital for this leadership style, hosted business phone systems and other technology that facilitates smooth and constant contact between team members are essential.

A key part of motivation is to praise and reward sales reps, in this way they are motivated to help the company achieve its goals, as they can simultaneously see a direct fulfillment of their own goals and career progression.

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6. Delegate

If you look at the rules for an experienced manager, the delegate leadership style would seem to go against much of the sound advice a new manager might be given.

It’s essentially a very hands-off approach, teams are encouraged to solve their problems and use their initiative.

It might seem like an unconventional approach, but it can positively impact staff morale, making reps feel empowered, trusted, and in charge of their work.

On the negative side, a manager adopting this approach can come across as uninterested in their team’s work and unwilling to take any responsibility, as this is being pushed onto the sales reps themselves. 

A clear management structure is essential if team members get this kind of autonomy; there has to be a sense that team members are accountable and monitored, as well as able to make their own decisions and act independently.  

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Set Your Own Style

Every aspect of managing a sales team, from looking for enterprise contact center solutions to developing a strategy and finding the right talent to create your team; demands foresight and skill.

Ultimately, the type of management style you will opt for may end up being more instinctive than planned. It may occur more from knowing your personality and strengths and the kind of job you are being tasked with doing, rather than an active choice.

But knowing the principal styles that exist, at least gives an idea of the range of approaches available. The best leaders change and adapt, when necessary; both to the job, the market, and the changing face of business, such as learning to use new software like LinkedIn Sales Navigator. Ideally, a manager will take the parts that work from each style and create their way of leading. 

After all, it’s possible to be both motivational and transactional, or democratic and transformational. In essence, a manager must set their own style, and make sure it’s a good fit for the job, the team, and their strengths.