48. From sales person to entrepreneur; focus and competences

When a company focuses on its customers and markets, a commercial challenge arises. The success and continuity of the company depends on its professionalism in this area. The 'commercial people' provide this focus, of course starting with the management, but carried out by the people in a commercial position. The focus and competences of the sales people should be adapted to the ambitions and possibilities of the company and its markets. We distinguish here four levels at which these people can function.

These levels of a seller could be:

Reactive and short-term – RAST

Reactive longer term - RALT

Proactive short term - PAST

Proactive long term - PALT

1: RAST: travels from customer to customer and maintains a good relationship; is friendly and follows customers in by laying down the questions of the customer internally in his own organization, and possibly supporting them. It is the traditional 'order taker' that can perform well in stable market situations with loyal customers.

2: RALT: keeps a close eye on where orders can be recorded, and uses the opportunities well; responds well to buying signals . This approach fits in a situation where customers show a higher turnover, and new customers constantly have to be sought. The market is fairly stable but is optimally adressed by this focus.

3: PAST: works proactively and systematically to approach the entire field of customers in a focused and systematic manner based on sound knowledge of customer consumption and their purchasing behavior; analyzes buying profiles and builds solid arguments that convince the customer to buy. The approach fits well with a growing (new) company that wants to strengthen its market position.

4: PALT: has a strategic overview of the market, and knows how to tap into new markets because he understands where the unexplored opportunities lie; knows how to convert them into new customers. This focus also quickly shows which customers and markets offer no or insufficient opportunities, so that it is better not to invest any more energy. This focus fits in moving markets where circumstances, such as evolving technology or new competition where the circomtances change quickly.

A good seller is not necessarily also a good entrepreneur. This requires additional competencies and areas of attention. The levels of a businessman build on those of a salesperson as a kind of further  development focus and competencies. Again we see four levels in this development:

1 = operational organizational - OPOR

2 = operational strategic - OPST

3 = entrepreneurial strategic - ENST

4 = entrepreneurial organizational - ENOR

1: OPOR: does not only expand the market, but does so in relation to the capacity of the organization (administration, quality management, IT systems , logistics know-how and capacity, ...) This approach prevents commercial initiatives from clashing with the inability of the organization to fulfill the commitments to customers.

2: OPST: has a strategic insight into the developments that are needed in the organization to be able to cope with certain markets, and converts that insight into initiatives that work and thus develops the organization for the future. This approach ensures that the organization follows market opportunities and, in the long term, continues to compete due to the performances delivered to customers.

3: ENST: has an overview of the entire market, the competitors and their strategies, and knows how to choose expansions and growth opportunities on that basis that sustainably lead to added value for the company. This focus also exploits the possibilities of moving markets.

4: ENOR: knows how to attract and lead the right people for the growth strategy so that they are 'involved' in the story of the future . Because of this focus, the market opportunities are not only seen and converted into the necessary organizational development, but the talents required for success are sufficiently attracted and developed

It goes without saying that a good entrepreneur is often a necessary but insufficient condition for a good management. In order to manage a company with sustainable success, two important functions would have to be fulfilled in addition to the entrepreneurial function: the organizer (manager) and the people-manager (coach). To determine whether a company is being managed operationally (in the short term), three results have to be considered:

- Are the customers satisfied?         

- Are the employees satisfied?         

- Are the results good?         

A healthy perspective should also be present in these three areas to enable good results to be achieved in the future. Looking ahead - in these three areas of work - is the message (assignment) of a leader!

Hugo Der Kinderen

July 22, 2019