In the highly competitive world of tech sales, the Vice President of Sales is a big deal. They’re the driving force behind revenue generation, the orchestrator of smart sales plans, and the steady mentor to the sales team. But what exactly should you look for in this role, and what shouldn’t you expect them to handle?
Direct Selling Dynamo
First and foremost, your VP of Sales should be a powerhouse in direct selling. They need to lead by example, demonstrating the art of closing deals, handling objections, and nurturing client relationships. Their ability to roll up their sleeves and dive into the sales process sets the tone for the entire sales team.
Mentor and Coach
Beyond personal sales prowess, the VP of Sales should excel in mentoring and coaching. They are responsible for cultivating a high-performing sales culture within the organization. This involves providing guidance, support, and constructive feedback to sales representatives, helping them sharpen their skills and achieve their targets.
How many plates can a VP of Sales in your price range keep spinning?
Sales Strategy Architect
However, it’s crucial to recognize that the VP of Sales isn’t necessarily the chief architect of your company’s sales strategy. While they should contribute insights and feedback, their primary focus lies in execution rather than conceptualization. Crafting a comprehensive sales strategy requires a deep understanding of market dynamics, customer behavior, and competitive landscape—areas that may fall outside the typical VP of Sales’ expertise.
Why Not the Strategy Maven?
The rationale behind not burdening the VP of Sales with crafting the company’s sales strategy is twofold. Firstly, many VP of Sales candidates lack the breadth of experience required to develop a comprehensive strategic framework. Building a sales strategy for 2X+ growth requires leadership skills that cross multiple disciplines to design a better plan that will propel the the company forward. Their expertise often lies in sales tactics and operations rather than strategic planning and a holistic view.
Secondly, How many plates can a VP of sales in your price range keep spinning all at once? You want your VP of sales to hit the ground running making a measurable impact on sales as fast as possible, right? Between personally selling and managing and mentoring a sales organization there simply is not enough time left for them to be a the thoughtful architect of your improved sales plan and tactical playbooks.
The Compensation Conundrum
It is essential to understand the dynamics of compensation plans for VP of Sales. Typically, their remuneration is tied to metrics like revenue targets, sales quotas, and profit margins. While this incentivizes them to drive sales performance, it may not necessarily align with the long-term strategic goals of the company. Most VP of Sales compensation plans don’t provide adequate incentives for investing time and effort into designing sales strategies and infrastructures. Since their earnings are predominantly tied to short-term sales outcomes, they prioritize immediate revenue generation over strategic planning.
The Bottom Line
Your Vice President of Sales plays a pivotal role in driving revenue and nurturing a high-performing sales team. Expect them to lead by example in direct selling, excel as mentors and coaches, and contribute valuable insights to the company’s sales strategy. However, recognize that their primary focus should lie in execution rather than company sales strategy formulation. Tailor their compensation plan accordingly and set realistic expectations for them and for yourself. Ideally, seek assistance from experts in building a solid sales strategy and foundation prior to hiring a sales leader so that he/she can hit the ground running.
