Nourishing sales: producers experience greater productivity with strategies developed by seasoned sales management.

In many agencies, the sales manager is a part-time position, filled by a producer or owner who also has a book of business or other duties to handle. Full-time sales managers most often are found in large agencies. Our recent compensation survey showed that 50% of agencies with more than $10 million in revenue have full-time sales managers.

Many other agencies, however, both large and small, are planning to add sales managers and believe the investment will be easily offset with new production. The producers I speak with on a regular basis say they would be more productive with sales management assistance. Even the top performers say they can benefit from another perspective or from joint selling with a key prospect. Most producers also find the recognition they receive from their managers keeps them motivated.

If you are thinking about bringing on a sales manager and the agency is primarily property and casualty, the sales manager should have a property/casualty background, rather than employee benefits, for example. Because an important part of this person's job is to develop strategies, identify niches or targets, and screen accounts for desirability, the sales manager would be at a disadvantage if that person did not have product knowledge. The person who fills this role also should have sales experience. Producers benefit from direction given by someone who has done the job and can help them sell certain accounts.

Although there are many examples of top producers who are not effective sales managers, there are many other examples of good producers who made a thoughtful decision to move into a management role after years of successful selling. For some people, it is the next logical step in their careers. The key to their success is they must enjoy seeing others succeed and have the patience and organizational skills to provide coaching and monitor results. The best sales managers create a positive sales culture, but are not afraid to confront producers about their performance and do so promptly.

The typical functions of the sales manager job are to set producers' goals, go on calls with producers, run sales meetings, and monitor production. But the best sales managers also:

* Outline the sales approach. In these agencies, producers follow a sales process which is focused on qualifying prospects and selling value, not price. The goal is to identify clients who are looking for advisers and who value the services, expertise and core values of the agency. The sales approach differentiates the agency and builds customer confidence and loyalty.

* Define desirable accounts. Many agencies have clearly defined the type, size, and characteristics of their target accounts. Leads are prequalified before initial calls are made and further qualification happens during the sales call. Producers are discouraged from working on accounts that do not fit the profile.

* Manage the pipeline. Producers have their own lead sources but know that the sales manager will review their pipeline on a regular basis to see what progress has been made. The sales manager will want to know what contact has been made and where the prospect is in the sales process.

* Assist with sales. The sales manager is an active participant in prospecting, is available to work on account strategies, participate in presentations, or bring in other agency resources to work on selling the account.

* Provide coaching and feedback. Many producers, especially new producers, want or need coaching on their techniques and skills. Good sales managers provide feedback after sales calls, ask producers to share the details of successful sales, and debrief on accounts that were not closed.

* Recruit sales people. Sales managers are always looking for new producers, both experienced and inexperienced. They are always networking or interviewing potential candidates. Once the new producers are hired, they oversee their training and work with them to make a good transition to the agency sales approach.

* Coordinate marketing efforts. The value proposition which producers sell can be reinforced in the agency's advertising, seminars, brochures, and other promotional pieces.

* Manage cross-selling. There is great opportunity to increase revenue by offering all of the agency's appropriate products to every customer and by rounding accounts. The sales manager develops cross-selling approaches and incentives to increase revenue from existing customers.

Sales managers should have a compensation plan which motivates them to grow the business. Our recent survey showed typical incentives are tied to growth of the agency or achieving a new business goal. Adding the right person with the right incentives can increase individual producer productivity and increase agency growth overall.

Sharon Cunningham, a Best's Review columnist, is president of Business Management Group, based in Hartford, Conn. She can be reached at [e-mail].