Do Sales Execs Need to Be Micromanaged? It’s Complicated
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Managing a Sales Team in the Founder-Led Stage
Several recent stories have highlighted the challenge of managing a sales team in the founder-led stage: many sales executives require a certain level of micromanagement to achieve high performance.
This sentiment was echoed by Sam Blond, CRO of Brex, at the SaaStr Miami Super Meet-up. Micromanaging sales reps, from SDR to AE, is essential until a VP of Sales is in place to take over.
Why Micromanagement is Necessary
If left to their own, the average sales rep will:
👉 Mainly chase hot inbound leads
🔇 Won’t call back leads that look “meh”
🦥 Will be slow to respond to less exciting deals
☎️ Won’t do much outbound
✂️ Will overdiscount to close a dealSo it’s hard to “macro-manage” a sales…
— Jason ✨Be Kind✨ Lemkin 🇮🇱 (@jasonlk) April 1, 2024
Micro-management is particularly vital during the founder-led stage. While some founders tend to be micromanagers, most successful ones prefer to hire talented individuals and give them autonomy.
However, ensuring key tasks are completed is crucial:
- Ensuring calls are made
- Overseeing outbound activities
- Following up on leads
- Reviewing contracts
- Keeping commitments
These tasks require a substantial level of micro-management to ensure optimal performance.
For a deeper dive into this topic, check out this insightful conversation between Sam and Ashley Kelly, VP of Global Sales Development at Ripping, in the recent CRO Confidential.
Real-Life Examples
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Story 1: After leaving Adobe, a rep signed a $77k deal with a customer for perpetuity. This deal had to be renegotiated as it was not in the company’s best interest.
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Story 2: A sales rep gave unlimited data to a customer due to a side consulting arrangement, causing a contractual mishap.
Instances like these are more common than one might think and require vigilant oversight.
Wrapping Up
Most CEOs may not have the capacity to extensively micromanage during the founder-led stage. However, increasing involvement, tracking metrics, and staying informed can lead to improved outcomes. Once a competent VP of Sales is in place, they can take over the reins.
Remember, a little extra effort now can yield significant benefits in the long run.
