Scenario 2: ChemoCorp

The Sales Manager joined the ChemoCorp Group four months ago and has since taken responsibility for the Sales Department within one of its divisions. The department is organised into three units:

  • Key Account Management I – managed by Peter Böhme (major customers in the plastics-processing industry)

  • Key Account Management II – managed directly by the Sales Manager (major customers in the photographic and lubricant industries)

  • Account Management III – managed by Cynthia Grabert (smaller customers in plastics, photographic and lubricant sectors)

They all have secretarial support from Dorothy Fehr.

 Last week, the Sales Manager was additionally tasked with coordinating the new Group-wide Optimal Selling Strategy (OSS) Project and ensuring its implementation within ChemoCorp. The purpose of OSS is to standardise sales prices to major customers worldwide. The initiative is expected to generate significant cost savings and increased sales volumes by focusing the selling strategy more effectively on customer needs. OSS is also intended to eliminate customer frustration about inconsistent pricing within Europe and to reduce the risk of re-imports.

Successful implementation of the OSS Project depends heavily on support from the Sales Department, and especially from Peter Böhme, whose customers are directly affected by price harmonisation. Peter’s specialist knowledge will be essential for the project’s credibility and success.

The OSS Project also gives the Sales Manager an ideal opportunity to conduct his first in-depth review meeting with Peter after four months in post. He intends to cover:

  • The OSS Project and its implications

  • Feedback on Peter’s performance and contribution

  • Ways to motivate Peter for the OSS work and strengthen team effectiveness

The Sales Manager’s current assessment of his three team members is summarised below.

Mr Peter Böhme, who is responsible for Key Accounts I has been with the company for over 10 years and has learnt his sphere of activity starting at the bottom.  Along with his main duties, Mr Böhme also represents the company or the Sales Department in various associations, bodies and study groups.  In the German Sales and Marketing Association he is the deputy chairman, which on the one hand is useful, but on the other restricts his availability at the workplace.  He also represents the division within the Association of Plastic Manufacturers in Europe (APME).  He is an excellent specialist in his field, who is also said to display excellent team spirit.  In general, Mr Böhme is a calm and level-headed employee whom nothing upsets very readily.  In his performance assessments, emphasis has always been placed on Mr Böhme’s great commitment and his readiness to assist.  He implemented faultlessly and on time the changeover to the new DP system, which controls all sales activities “online”.

However, it is the Sales Manager's early opinion that Peter Böhme spends too much time on association activity, as evidenced by his frequent absences and markedly increased expense account levels by comparison with the previous year.  Moreover, he seems to have lost his readiness for action and the high level of commitment for which he was famed in the past.  He currently conveys a somewhat unenthusiastic impression and appears to be happy when he can go home at 17.00 hours.  Within the team, he appears to get on well with Dorothy Fehr, the Secretary, but ignores Cynthia Grabert.  The Sales Manager believes it is important to have a good departmental climate where everyone is compatible and helps one another.

Cynthia Grabert, who manages Account Management III,  joined the firm one year ago, after completing her business management course at the Mannheim vocational training college.  Mrs Grabert’s training essentially consisted of sitting in for 3-month spells in all units, in a similar manner to a trainee, without assuming major responsibility.  For 3 months she has now managed the unit Account Management III on her own.  Since she lacks management experience and also still possesses little experience in the sales sector, the manager has undertaken to “coach” her and provide her with the necessary skills.  In difficult negotiations in particular, in which the supply prices are a crucial factor, the manager considers it essential to accompany and assist her.  In spite of her lack of experience, she does not lack self-confidence and occasionally tends towards brashness.

Dorothy Fehr is the department secretary.  She processes all correspondence and types the contracts for all units.  Furthermore, she organises dates, meetings and business trips for all Sales staff.  In addition, she undertakes the duties of a clerk, such as processing purchase orders, checking payments received and looking after the files.  Mrs Fehr has been with the firm for 12 years and has been in Sales for 8 years.  She works very much on her own initiative and conscientiously.  She is particularly useful by virtue of her good overall view and many years’ knowledge of all matters, even fairly old ones.  She has become the “pivot” of the department, not only by virtue of her function but also because of her friendly and helpful manner.

Leadership Style Alternatives

There are four possible ways the Sales Manager could lead the meeting with Peter Böhme:
    
a) Use a Directive approach - having questioned Peter about the current situation, decide on how to implement Project OSS and tell Peter exactly what he needs to do.  

b) Use a Consultative approach - having discussed the current situation with Peter, the Sales Manager could get Peter's ideas and suggestions about Project OSS, then use these to tell Peter exactly what he needs to do.  

c) Use a Consensual approach - having discussed the current situation with Peter, the Sales Manager and Peter could collaboratively generate and evaluate alternatives and attempt to reach agreement about how to implement Project OSS.

d) Use a Delegative approach - having questioned Peter about the current situation, the Sales Manager could provide Peter with clear parameters and objectives and give him the responsibility to implement Project OSS.

Your Task

Watch each episode and assess how effectively the Sales Manager’s chosen approach helps him achieve his objectives.

Identify which leadership style proves most successful—and consider whether that outcome aligns with what you would have predicted based on the information provided above.