A recurring issue for small companies has emerged; the company’s owner or CEO often leads the sales department. This might be because they believe no one else can sell their product or service better than they can. However, this mindset might be hampering the company’s growth potential.
If you’re a company owner or CEO who leads sales, it’s crucial to consider the risk of this approach. When the person leading the company also heads sales, the business is constrained by the amount of time that leader has. If your salespeople consistently wait for your input or response, you might face a growth opportunity and a challenge simultaneously.
The solution lies in de-risking your organization’s growth potential by getting a sales leader in the sales leadership seat separate from you. This concept resonates with the theory of constraints, a principle often applied in the manufacturing industry but equally applicable in sales. The theory of constraints focuses on identifying the factors that limit your success.
Often, companies aren’t growing because they can’t get their product or service in front of enough potential customers, not because there aren’t enough companies out there to buy their product.
One way to address this is by ensuring you have a sales manager and professional salespeople in place. The CEO can then act as a support, assisting with big deals but not necessarily being the key person. This approach allows for a multi-pronged strategy where multiple people discuss your product. The CEO can engage with big or repeat customers and address issues arising from slow or lack of delivery.
An effective operating system for companies is crucial in this context. One of the most popular operating systems is EOS (Entrepreneurial Operating System), which emphasizes having the right person in the right seat. When a company reaches a certain size, professional salespeople need to take over, and the CEO needs to build a sales organization, just like they had to build other departments.
This concept transcends all industries. The CEO of a major doesn’t fly the plane, nor does the flight attendant or baggage carrier. Each role contributes to the overall successful flight experience, but a professional pilot flies the plane.
Owner-operators who aren’t ready to give up control of the sales leadership seat must hold themselves accountable to a sales leadership standard. As the company grows, it won’t be able to effectively manage all aspects of the business, including sales. This is where having the right person in the right seat becomes crucial.
Building a thriving sales culture requires tactics, strategy, and accountability. An honest review of your organization can illuminate areas for improvement. Like a successful football team or a smooth flight, your business needs dedicated roles to scale up.
It’s okay to ask for help. Having experts perform their specific roles can drive performance and propel your company forward. As your business grows, you may need resources from various disciplines. Engage experts to help your business in areas outside sales, such as marketing, supply chain, logistics, or legal matters.
While it’s often tempting for CEOs and owners to take on the sales leadership role, it may not be the best approach for sustainable growth. By acknowledging the constraints, de-risking the organization’s growth potential, and ensuring the right person is in the right seat, companies can build a robust sales culture and propel their business forward.
Here are a few steps company leaders can take immediately to enhance their sales process:
- Acknowledge the Limitations: Recognize that your time as a company leader is limited, and being the head of sales may hamper your company’s growth. Your salespeople should not have to wait for your input or response consistently.
- Appoint a Dedicated Sales Leader: Consider appointing a sales leader separate from the CEO or owner. This will allow for a multi-pronged strategy and let the CEO deal with big or repeat customers and other high-level issues.
- Implement an Effective Operating System: Look into operating systems like EOS (Entrepreneurial Operating System), which emphasizes having the right person in the right seat. This system becomes increasingly important as your company grows.
- Seek Outside Help: Be bold and ask for help. Engage experts in areas outside of sales, such as marketing, supply chain, logistics, or legal matters. This will allow for a more well-rounded approach to growing your business.
