An effective sales role job description defines each role across five dimensions:
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1 Although sales leaders have long found traditional job descriptions developed by HR to be impractical and unhelpful because the sales job is often different in every region, many organizations are discovering that sales-specific job descriptions can be a valuable sales tool. These tailored descriptions define the sales roles as pieces of the overall sales execution puzzle and describe where and how they fit into the organization s sales strategy and coverage model. They offer greater performance transparency, lead to better sales incentive plans and enable the use of a more targeted and strategic sales approach. Organizations that want to develop sales role job descriptions typically start by asking three questions, which this article will answer: What information should a sales role job description include? How can a sales role job description be leveraged to address key sales questions and challenges? How are sales role job descriptions developed? What Information Should a Sales Role Job Description Include? An effective sales role job description defines each role across five dimensions: 1. Coverage defines which customer segments a role is assigned. Distinctions will vary depending on the organization s market strategy and the buying characteristics of its customer groups. Common coverage segmentations are by customer size, potential value, industry, approach to market, geography and/or buying characteristics. 2. Sales strategy defines whether a role is accountable for retaining current revenue, penetrating existing customers for additional revenue or acquiring new customers for net new revenue. Each strategy requires a different sales style and skill set. Retention requires attentive account management. Penetration requires strong relationship management. Acquisition-focused salespeople tend to be effective hunters. 3. Organizational hierarchy defines whether a role is part of an account team, an individual seller or an overlay. * It also defines the role s internal reporting relationships. 4. Sales process defines where and how a role participates in the customer sales process. While some roles participate in all the steps, others only interact with the customer at the initial or late stages. Each step from identify and qualify to close and implement requires a unique skill set that traditionally requires a team to fulfill. * An overlay is a sales role with a very specific focus (e.g., an engineer who supports an account manager by providing technical advice for a specific sale).
2 5. Product/service focus defines which products and/or services a role is accountable for selling. While some roles specialize in one product and provide deep technical expertise, others have broad general knowledge of multiple products and focus on offering a sales solution. Once the roles have been defined, sales leadership can use the descriptions to create a chart that graphically illustrates where each one fits in the organization s five dimensions. (The figure on the next page includes graphic depictions for two sales role job descriptions in a sample organization.) This chart will easily show how sales resources work together to execute the organization s sales strategy. How Can a Sales Role Job Description Be Leveraged to Address Key Sales Questions and Challenges? Once each role is defined along the five dimensions, sales management can use the sales role job descriptions to answer questions and address challenges about performance transparency, overlapping sales channels, compensation and other issues. For example, it can be helpful to answer questions like the following: How many account managers do we need to reach our revenue goals? A sales role job description helps answer resource-deployment and headcount questions by providing a direct link between the sales role and the organization s sales goals. This is achieved primarily by identifying the role s coverage (i.e., for which accounts is the role responsible?) and sales strategy (i.e., what type of revenue is the role responsible for producing?). What are the appropriate performance metrics for a given role? A sales role job description provides all the information required to select a role s performance metrics. This includes an area of accountability via the description of coverage, a metric type (financial vs. non-financial) via the role in the sales process, the type of revenue via the sales strategy, a level of measurement (individual vs. team) via the organizational hierarchy and a product focus (if any). Should a given role be eligible for sales incentive compensation? A sales role job description clarifies sales incentive eligibility by defining its account coverage and role in the sales process. When these dimensions cannot be defined, the role is typically not eligible. However, the extent to which the role influences the buying decision within the sales process (in the close phase) should be considered when determining eligibility. How Are Sales Role Job Descriptions Developed? The process to develop effective sales role job descriptions is relatively straightforward and it should not require significant time if it is done right. The process requires the following: Senior leadership ownership buy-in and support. Sales will not spend the time and/or resources for what is traditionally viewed as an HR activity if leadership is not driving accountability. Sales function ownership. Those developing the sales role job descriptions require a thorough understanding of the organization s sales strategy, coverage model and sales roles. Field-level participation and validation. Only those at the field level understand how the strategy is being executed to suit the unique business environment of each segment, geographic area or other unit. 2
3 To Solve thee Sales Execution Puzzle, Sales Role Job Descriptions for Two Roles in a Sample Organization* * Role Description Enterprise Account Manager This is an individual seller who is accountable for penetrating and retaining current top-tier accounts with suites of products and services. Productt Specialist This is an overlay position specializing in a defined product set. The product specialist helps define specs and craft customer solutions. Coverage Sales Strategy Organizational Hierarchy Sales Process Product/ Service Focus * The gold portions indicate where the role fits in each dimension. Source: Sibson Consulting 3
4 The time it takes to complete the sales role job descriptions varies depending on the size and complexity of the organization, but the steps remain the same: Define alternatives for each of the five dimensions. They should be based on the organization s current sales strategy. This can be accomplished through interviews with the head of sales and/or the executive team or from current knowledge. Test alternatives for the five dimensions. Be sure to get the sales leadership team to sign off on the final decision. Surprisingly, sales leadership is often not included in this process and it is important to get their approval before communicating to their reports. Assign incumbents to each role. This is typically a draft that is developed by someone in the compensation or sales HR role and is based on working knowledge of current job titles or individual sellers. Validate assignments with the field. Many incumbents may have the same title but actually fill very different roles due to lack of governance or sales role job descriptions or different selling environments. Only when sales managers see how a role is defined by the five dimensions can they define what role each incumbent is filling. Document variances between customer segments. While the five dimensions capture the basics of each core sales role, there are commonly minor nuances in specific business environments that can affect how a role sells. These variances are important and should be documented as part of the overall role. Conclusion Targeted and consistent sales role job descriptions are becoming increasingly prevalent among organizations as they recognize their value and their ability to improve performance transparency, generate better sales incentive plans and help them design and implement a more targeted and strategic sales approach. They have the potential to be a critical, strategic leadership tool. About the authors: Jonathan Minor is a senior consultant for Sibson Consulting. He specializes in the design and implementation of sales management solutions to increase sales and profits as well as to address strategic intent and market opportunities. He can be reached at or jminor@sibson.com. Summer F. Barnes is a senior consultant for Sibson Consulting. She helps organizations increase their return on human capital investment by assessing and strengthening the alignment between sales strategy and sales force performance. She can be reached at or sbarnes@sibson.com. 4
5 This article is from the December 2012 issue of Perspectives, Sibson Consulting s e-magazine. It is available on the following page of Sibson s website: volume_20_issue_3/sales-execution-puzzle.html Sibson Consulting, a Division of Segal, provides strategic HR solutions related to the planning, implementation and operation of total rewards, compensation, retirement and health benefit programs. Sibson's services encompass talent management, benefits, organization design, sales effectiveness, change management and HR technology. For more information, visit Copyright 2012 by The Segal Group, Inc., the parent of The Segal Company. All rights reserved. 5
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