Sales Manager Jobs to be Done (JTBD)

• I. People Management
  • Recruiting & Hiring: Attract, interview, and hire top sales talent.
  • Onboarding new reps
  • Training & Coaching: Develop and deliver training programs, coach individual reps, and mentor for career growth.
    • Conducting effective 1:1s
  • Motivation & Team Building: Foster a positive and high-performing team environment.
    • Running team meetings
    • Recognizing & rewarding performance
  • Conflict Resolution
  • Performance Management:
    • Set goals
    • Monitor rep activity and effectiveness.
    • Provide feedback and hold reps accountable for performance.
    • Manage out underperformers who do not improve with coaching/training; having difficult conversations
• II. Sales Execution & Strategy
  • Direct Deal Support:
    • Support reps on deals (e.g., executive alignment).
    • Cover open territories (if applicable).
    • Lead negotiations (where applicable; Reviewing/Reducing/Approving Discounts).
  • Strategic Sales Planning:
    • Territory/Account assignment & prioritization (where applicable).
    • Develop account plans.
• III. Pipeline, Forecasting, & Analytics
  • Forecasting & Reporting: Create accurate and timely sales forecasts and reports.
  • Pipeline Management: Implement processes, incl. pipeline generation, to ensure a healthy and predictable pipeline (pipeline hygiene).
  • Deal Health & Strategy Reviews: Conduct regular reviews to assess deal health and develop winning strategies.
• IV. Analytics & Data-Driven Decision Making
  • Understanding KPIs
  • Understanding (and building) sales reports and dashboards
  • Data analysis & interpretation
  • Data-driven decision making
• V. Knowledge & Tools
  • Company & Product Knowledge: Maintain a deep understanding of the company, its products/services, its value proposition, and their customers’ journey.
  • Sales Process & Methodologies: Be an expert on the company’s sales process and methodologies.
  • Tools & Technologies (CRM; CPQ; etc.): Be proficient in using all relevant sales tools and technologies.
• VI. Collaboration & Compliance
  • Cross-Functional Collaboration: Work effectively with marketing, product, legal, finance, and other departments.
  • Compliance & Best Practices:
    • Ensure legal and ethical compliance.
    • Ensure adherence to Rules of Engagement (ROE) standards and manage exceptions.
    • Ensure the sales team follows established processes and methodologies.
  • Appropriate 360-degree communications
    • Managing up
    • Managing peers
    • Managing down
    • Leading through change

Sales Manager Compensation

First line managers typically earn 1.25x to 1.5x individual AE OTE and hold quotas equal to the sum of quota rolling up to them adjusted for over-allocation.  The lower end of the multiplier range is for ENT sales manager and the upper end for SMB. By way of example, assume the following:

• Rep OTE is 200K
• Rep quota is 800K (4x OTE which is the current median though I recommend 5x)
• AE:Manager span of control 6:1

Notice the reps earn 25% of bookings. They are typically on a 50/50 comp plan so here they would earn 100K base and 100K variable compensation. The commission rate is 12.5% since 100/800 =12.5% 

So, in this case, the 1st line manager has a quota of 800K * 6 * 0.9 = 4320K. Why the 0.9 factor? Because one should over-allocate quota by ~10% at the rep level (only).

Using the rule above, the manager OTE is 300K (200K * 1.5). They earn 300/4320 = 6.9%. Assuming 50/50 comp plan, base is 150 and VC is 150. Thus commission rate is 150/4320 =~ 3.5%.

For 2nd line and above, apply the logic but adjust the OTE multiplier down to 1.25x that of the level below and remove the 0.9 factor since that should only be applied at the 1st line manager level.

Additional considerations:

• Make the % of reps who meet/exceed quota a major part of manager and sales leader variable comp.

Player-Coach Compensation Model

Interview Questions for Sales Managers

• What does your team operating rhythm look like? How do you structure 1:1s with reps? Team meetings? Pipeline reviews? QBRs?
• What sales metrics do you look at? At what frequency?
• How do you ensure high forecast accuracy?
• What did you accomplish in the first 30 days of your last job? What do you plan to accomplish in your first 30 days on the job?
• What is the last deal you worked with your team? What was your involvement? (Or, how do you engage in individual deals?)
• What was the sales team culture like at your last company? What culture do you plan to establish here?
• How do you approach territory design? (if applicable)
• In your opinion does outbound prospecting work? How would you build an outbound program from the ground up?
• Talent
  • Describe your hiring process?
  • What is the most effective way to train new reps?
  • Describe your approach for managing your A+ players?
  • Who was the last rep you terminated? What process did you follow to make that decision?