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Chapter Ten—Adding Value: Self-Leadership
and Teamwork
Learning Outcomes
After completing this chapter, you should be able to explain, identify and, describe:
1. the five sequential stages of self-leadership.
2. the four levels of sales goals and explain their interrelationships.
3. techniques for account classification.
4. the application of different territory routing techniques.
5. the usefulness of different types of selling technology and automation.
6. increasing customer value through teamwork.
7. the six skills for building internal relationships and teams.
Chapter Outline
I. Introduction
II. Effective Self-Leadership
A. Stage One: Setting Goals and Objectives
B. What Makes a Good Goal?
III. Working with Different Levels and Types of Goals
A. Stage Two: Territory Analysis and Account Classification
IV. Account Classification
A. Single-Factor Analysis
B. Portfolio Analysis
C. Stage Three: Development and Implementation of Strategies and Plans
D. Establishing and Implementing Selling Task and Activity Plans
V. Establishing Territory Routing Plans
A. Straight-Line Routing Plans
B. Cloverleaf Routing Plans
C. Circular Routing Plans
D. Leapfrog Routing Plans
E. Major City Routing Plans
VI. Stage Four: Tapping Technology and Automation
A. Mobile Sales Technologies
B. Salesperson Customer Relationship Management (CRM)
C. Deal Analytics
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D. The Internet, Intranets, and Extranets
E. High-Tech Sales Support Offices
F. Stage Five: Assessment of Performance and Goal Attainment
VII. Increasing Customer Value through Teamwork
A. Internal Partnerships and Teams
B. Sales Partnerships
C. Marketing Partnerships
D. Design and Manufacturing Partnerships
E. Administrative Support Partnerships
F. Shipping and Transportation Partnerships
G. Customer Service Partnerships
VIII. Building Teamwork Skills
Exercises
Developing Professional Selling Knowledge
1. Explain why setting goals and developing formalized selling plans are represented as key
requirements for success in selling.
Setting goals is a key requirement for success in selling because it allows salespeople to set
work-related priorities and provides them with a target toward which they can work.
2. Identify and discuss the three required characteristics of a goal or objective.
The three required characteristics of a goal or objective are realistic yet challenging,
specific and quantifiable, and time specific. Goals must be realistic yet challenging in order
to maintain the salesperson’s motivation. Salespeople will not be motivated to obtain goals
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3. Explain the five sequential stages of self-leadership and how they affect selling success.
The five sequential stages of self-leadership are (1) setting goals and objectives, (2)
Setting goals and objectives is important because it provides salespeople with performance
targets and the ability to prioritize and allocate resources. Territory analysis is important
because it allows salespeople to better understand their territories, including customers,
4. Develop an example of the four different levels of goals and how they are interrelated.
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Students’ answers will differ. However, they should include an interrelated reference to
personal goals, sales call goals, account goals, and territory goals in their answers. Here is
an example (from Exhibit 10.2):
5. Using a map of your state or region, use city and town locations to establish routing plans
using the straight-line, cloverleaf, circular, leapfrog, and major city methods.
6. Explain how a salesperson might use Internet-based, online product catalogs, and
presentation libraries to enhance his or her sales productivity.
Students’ answers will vary because a salesperson might use online product catalogs and
presentation libraries to enhance his or her sales productivity in several ways. However,
7. Explain the weaknesses and strengths of the two methods for account classification.
The primary strength of the single-factor analysis of account classification is its simplicity.
It is very easy to use and understand. Its primary weakness is that it only uses one factor to
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8. Why is a teamwork orientation important in selling?
A teamwork orientation is important because selling is becoming more complex with a
greater focus on long-term inter-organizational relationships. Consequently, a greater
9. Who are the individuals within the organization that salespeople are likely to team with,
and how could such a team be advantageous to the salesperson?
Salespeople are likely to team up with individuals from various departments, including
sales, marketing, customer service, order fulfillment, and administrative support. Such a
10. What are the six teamwork skills? Explain why they are important for success in
developing interpersonal relationships.
The six teamwork skills include 1) understanding the other individuals, 2) attending to the
It is important to understand the other individuals in a team so that one knows what is
important to them. In addition, understanding an individual will help in improving
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are expected of them. As with keeping commitments, showing personal integrity develops
and maintains trust within the group. Finally, apologizing sincerely when a mistake is
made helps to maintain group harmony and reduces the detrimental impact of the mistake
on group dynamics.
Group Activity
Divide the class into groups of five to seven. Ask each group to discuss and answer the following
questions:
1. What are the characteristics of a “good” group member?
2. What are the characteristics of a “bad” group member?
3. What are some different ways in which group members contribute?
4. How should you deal with a “bad” group member?
5. Is it important that everyone in a group participate and/or contribute?
6. Why do some group members not participate and/or contribute?
7. How should you encourage/motivate a reluctant group member reluctant to participate
and/or contribute?
Experiential Exercises
1. Building Mastery of the Seven Teamwork Skills
Objective: Your students will be able to understand and apply the key principles for successfully
working in group and team settings.
Time Required: 15 to 20 minutes.
Teaching Tip: Have the students complete this exercise individually or in small groups.
Ask students to review the seven teamwork skills and then consider a time within this past year
where work or class required them to work as part of a team. Based on their reflections, have
them address the following two sets of questions.
Which of the seven teamwork skills did they apply? How did they impact the student and the
team?
Which of the seven teamwork skills did they not apply? How did not applying these skills
negatively impact the student and the team? How might using the missing skills impact the
effectiveness of the team?
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2. Working with Interdependent Levels of Salesperson Goals
Objective: Provide students with experience in working through the different levels of
salesperson goals and how they are all interrelated.
Time Required: 8 to 10 minutes.
Teaching Tip: Have the students complete this exercise individually. Select one or two students
to give their answers and explain their methodology. The correct answer for the territory sales
goal is $900,000.
As a sales person for Allied Chemical Co., you are preparing for a planning session with your
sales manager in which the two of you will work together to develop your territory sales quota
for the next year. While your sales manager will input organizational objectives into the quota-
setting process, the sales manager has asked that you establish your personal sales goals for the
upcoming year and bring those to the meeting.
You plan to earn a total of $80,000 this coming year. Your base compensation is $4,000 per
month. In addition to the base salary, Allied Chemical pays sales commission of 8 percent on
annual territory sales over $500,000. What territory sales goal will result in producing your
$80,000 personal earnings goal?
The following calculations show the territory sales goal to produce $80,000 for the coming year:
Target compensation $80,000
Base salary $48,000 (4,000 x 12)
Gap to be made up through commission $32,000 (80k-48k)
Extra sales need to generate that much commission $400,000 (32k/.08)
Total Sales Needed $900,000 (400k + 500k)
Chapter 10 Case
Universal Control Corp.
Background
Universal Control Corp. is a leading supplier for process control systems and equipment used in
a wide variety of production and distribution applications. You have taken a sales representative
job with Universal, and having just completed training, you have been given a territory of your
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own. Your district manager has provided you with a list of accounts (shown below) as well as
several boxes of notes and files that had been assembled and used by your predecessor. These are
the accounts currently buying your products. You are expected to build these accounts and add
new accounts to the list as you increase your territory’s sales performance. You have
summarized the account information into the summary set of account profiles, which follows.
Account Name
Account
Opportunity
Competitive
Position
Annual Number
of Sales Calls Last
Year
Mueller Distribution
High
Low
30
Tri-State Specialties
Low
High
20
Birkey Paper Co.
Low
High
26
Normal Supply
Low
Low
12
Darnell Aggregate
Products
Low
High
21
Reinhart Chemicals
High
High
26
ACCO
Manufacturing
Low
High
23
Tri-State
Manufacturing
High
Low
28
Ideal Engineering
Low
Low
11
Terracon
High
High
25
Lowry Foods
High
Low
26
SCS Industrial
High
High
27
Lowell Services
Low
High
18
Bowles and Sons
Low
High
21
American Foundry
High
Low
22
Hewitt & Associates
Low
Low
16
Bright Metals Inc.
High
High
22
Decatur Extrusions
Low
Low
14
King Chemicals
Low
High
22
Bear’s Steel Corp.
Low
High
20
Hoffman
Pharmaceuticals
High
Low
20
Barlow & Clark
Systems
Low
High
18
Questions
1. Develop a portfolio classification of accounts and assess the allocation of sales calls your
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predecessor made over the past year.
Students’ answers will vary. In general, the previous salesperson did a somewhat fair job
of allocating sales calls. As shown in the table below, the salesperson allocated time
Average of Annual Number of Sales Calls Last Year by Category
Competitive Position
Account Opportunity
High
Low
Grand Average
High
25.00
25.20
25.11
Low
21.38
10.75
17.83
Grand Average
22.58
18.78
20.95
2. What problems do you find with the previous allocation of calls on these accounts?
Students’ answers may vary. However, their answers should include some reference to the
3. Based on your account classification analysis, suggest a new sales call allocation strategy
that would make better use of your time in the territory.
Students’ answers will vary. However, their answers should reflect a redistribution of sales
Account Name
Account
Opportunity
Competitive
Position
Annual
Number of
Sales Calls
Last Year
SCS Industrial
High
High
40
Reinhart
Chemicals
High
High
40
10
Terracon
High
High
40
Bright Metals
Inc.
High
High
40
Mueller
Distribution
High
Low
37
Tri-State
Manufacturing
High
Low
37
Lowry Foods
High
Low
37
American
Foundary
High
Low
37
Hoffman
Pharmaceuticals
High
Low
37
Birkey Paper
Co.
Low
High
11
ACCO
Manufacturing
Low
High
11
King Chemicals
Low
High
11
Darnell
Aggregate
Products
Low
High
11
Bowles and
Sons
Low
High
11
Tri-State
Specialties
Low
High
11
Bear’s Steel
Corp.
Low
High
11
Lowell Services
Low
High
11
Barlow & Clark
Systems
Low
High
11
Hewitt &
Associates
Low
Low
6
Decatur
Extrusions
Low
Low
6
Normal Supply
Low
Low
6
Ideal
Engineering
Low
Low
6
Role Play
Situation: Read the provided Universal Control Corp. case material
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Characters: Zack Hanna, salesperson for Universal Control Corp. Gage Waits, district sales
manager and Hanna’s immediate supervisor.
Scene:
Location—Gage Waits’ office at Universal Control Corp.
Action—Zack has just been assigned this territory and has completed an analysis of sales and
customer files to profile the individual accounts and sales call allocation strategies utilized by the
previous salesperson in the territory. Based on this information, Hanna has developed
information responding to each of the three questions following the Universal Control Corp. case
materials. This information includes a new sales call allocation strategy. Hanna is meeting with
his sales manager to explain his new sales call allocation plan.
As Hanna, complete the three questions previously listed. Using this information, role play your
interaction with your sales manager, Gage Waits, as you discuss and explain (1) your analysis of
the previous salesperson’s sales call allocation and (2) your new plans and how they will
increase the effectiveness and efficiency of your selling efforts in this territory.
After completing the role play, address the following questions:
1. How might Hanna’s sales allocation plan be different if he had used single-factor analysis
(ABC analysis) instead of portfolio analysis?
The difference in results had Hanna used a single-factor model would depend upon the
2. Develop a sales call allocation plan using single-factor analysis. Compare the results of
Hanna’s portfolio analysis with the results of your single-factor analysis. Where and how
are they different?
Account Name
Account
Opportunity
Category
Annual
Number of
Sales Calls
Last Year
Mueller
Distribution
High
A
30
Tri-State
Manufacturing
High
A
28
SCS Industrial
High
A
27
Lowry Foods
High
A
26
Reinhart
Chemicals
High
A
26
Terracon
High
A
25
American
Foundry
High
A
22
Bright Metals
Inc.
High
A
22
Hoffman
Pharmaceuticals
High
A
20
Birkey Paper
Co.
Low
B
26
ACCO
Manufacturing
Low
B
23
King Chemicals
Low
B
22
Bowles and
Sons
Low
B
21
Darnell
Aggregate
Products
Low
B
21
Bear’s Steel
Corp.
Low
B
20
Tri-State
Specialties
Low
B
20
Barlow & Clark
Systems
Low
C
18
Lowell Services
Low
C
18
Hewitt &
Associates
Low
C
16
Decatur
Extrusions
Low
C
14
Normal Supply
Low
C
12
Ideal
Engineering
Low
C
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Students are likely to produce a classification system similar to the one above. The
resulting classification system should be similar to the portfolio analysis with respect to the
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3. How might those differences translate into increased selling effectiveness and efficiency?
The portfolio model will reduce the likelihood that Hanna would waste time on accounts in
Chapter 10 Role Play
Payroll Systems, Inc.
Background
You are a business development specialist for Payroll Systems, Inc., an industry leader providing
automated payroll processing and related record keeping for medium to large businesses having
15 or more employees. Your primary selling responsibility is new account development and
working with existing accounts to increase share of account by selling them additional
employment-related services. Account management and day-to-day servicing responsibilities are
performed by a team of customer service representatives who work with customers through the
phone and Internet. Due to a combination of rapid growth in the number of customers and
several customer service representatives being new to the job, the resulting level of service
provided by the customer service team has become inconsistent and all too often below the level
you have promised to your customers. As a result, you are spending much of your time trying to
patch over service shortcomings and working to win back accounts that have been lost to
competitors due to the service problems. Not only are you losing business, but your own
reputation—as well as Payroll Systems’ reputation—is beginning to suffer.
Role Play
In discussing these problems with your sales manager, it was decided that you would meet with
the team of customer service representatives in order to discuss and find a workable solution to
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the problems.
Role play how you would approach and initiate a positive discussion with the members of the
customer service team that would generate improved experiences and outcomes for your
customers and Payroll Systems, Inc. Remember to employ Covey’s six teamwork skills
discussed in this chapter.
Chapter 10 Continuing Case
Managing and Classifying Accounts
Brenda’s planning and extra effort in servicing and developing her accounts continue to produce
increasing levels of profitable business for NCC. Her methodical approach to identifying new
prospects and building repeat business within her existing accounts has been observed by her
sales manager as well as the Regional Vice President of Sales. As a result of Brenda’s consistent
performance, she has been given the opportunity to expand her current list of accounts by taking
over part of the account list of a retiring salesperson and integrating them into an expanded
territory. Brenda is working through the account information files for each of these added
accounts and has summarized the information into the following table.
Account Name
Account
Opportunity
Competitive
Position
Annual Number of
Sales Calls (Last
Year)
Maggie Mae Foods
Low
High
23
C3 Industries
High
Low
28
Trinity Engineering
High
High
28
Britecon Animations
High
High
22
Lost Lake Foods
High
Low
26
Attaway Global
Consulting
High
High
24
Waits and Sons
Low
High
21
Reidell Business
Services
High
High
26
Ferrell & Associates
Low
Low
16
Biale Beverage Corp
High
High
18
Captain Charlie’s
High
Low
23
Cole
Pharmaceuticals
High
Low
20
PuddleJumper
Low
High
18
15
Aviation
Tri-Power
Investment Services
Low
Low
18
Ballou Resin &
Plastics
Low
Low
14
Tri-Chem Customer
Products
Low
High
20
Guardian Products
High
High
25
Bartlesville
Specialties
Low
High
26
Questions
1. Develop a portfolio classification of Brenda’s 18 new accounts. What is your assessment
of the allocation of sales calls made by Brenda’s predecessor over the previous year?
Account Name
Account
Opportunity
Competitive
Position
Annual Number
of Sales Calls
(Last Year)
Trinity Engineering
High
High
28
Britecon Animations
High
High
22
Attaway Global
Consulting
High
High
24
Reidell Business
Services
High
High
26
Biale Beverage Corp
High
High
18
Guardian Products
High
High
25
C3 Industries
High
Low
28
Lost Lake Foods
High
Low
26
Captain Charlie’s
Travel
High
Low
23
Cole
Pharmaceuticals
High
Low
20
Maggie Mae Foods
Low
High
23
Waits and Sons
Low
High
21
PuddleJumper
Aviation
Low
High
18
Tri-Chem Customer
Products
Low
High
20
Bartlesville
Low
High
26
16
Specialties
Ferrell & Associates
Low
Low
16
Tri-Power
Investment Services
Low
Low
18
Ballou Resin &
Plastics
Low
Low
14
Account name
Account
Opportunity
Competitive
position
Annual Number
of Sales Calls (last
Year)
Trinity Engineering
High
High
28
C3 Industries
High
Low
28
Reidell Business
Services
High
High
26
Lost Lake Foods
High
Low
26
Bartlesville
Specialties
Low
High
26
Guardian Products
High
High
25
Attaway Global
Consulting
High
High
24
Captain Charlie’s
Travel
High
Low
23
Maggie Mae Foods
Low
High
23
Britecon Animations
High
High
22
Waits and Sons
Low
High
21
Cole
Pharmaceuticals
High
Low
20
Tri-Chem Customer
Products
Low
High
20
Biale Beverage Corp
High
High
18
PuddleJumper
Aviation
Low
High
18
Tri-Power
Investment Services
Low
Low
18
Ferrell & Associates
Low
Low
16
Ballou Resin &
Low
Low
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17
Plastics
The table above sorts the accounts by the number of calls. As one can see, the previous
2. What specific suggestions would you make in terms of sales call allocation strategy for
Brenda to make better use of available selling time in calling on these new accounts?
Account Name
Account
Opportunity
Competitive
Position
Tier
Trinity Engineering
High
High
Tier 1
Britecon Animations
High
High
Tier 1
Attaway Global
Consulting
High
High
Tier 1
Reidell Business
Services
High
High
Tier 1
Biale Beverage Corp
High
High
Tier 1
Guardian Products
High
High
Tier 1
C3 Industries
High
Low
Tier 2
Lost Lake Foods
High
Low
Tier 2
Captain Charlie’s
Travel
High
Low
Tier 2
Cole
Pharmaceuticals
High
Low
Tier 2
Maggie Mae Foods
Low
High
Tier 3
Waits and Sons
Low
High
Tier 3
PuddleJumper
Aviation
Low
High
Tier 3
Tri-Chem Customer
Products
Low
High
Tier 3
Bartlesville
Specialties
Low
High
Tier 3
Ferrell & Associates
Low
Low
Tier 4
Tri-Power
Investment Services
Low
Low
Tier 4
Ballou Resin &
Plastics
Low
Low
Tier 4
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3. Develop a classification of these 18 accounts using the single factor analysis method. How
do these results differ from the results from the portfolio analysis?
Students’ solutions will differ, but the resulting classification system should be similar to
the portfolio analysis with respect to the top accounts and the bottom accounts. However, it
4. How might the differences between the single factor analysis and the portfolio
classification translate to increased selling effectiveness and efficiency for Brenda?
The portfolio model will reduce the likelihood that Brenda would waste time on accounts
