The Strategic Alignment of Organizational Interventions for Salesperson Development with Salesperson Lifecycle Management Model
While earlier studies have discussed such individual factors as motivation, retention, and productivity as they relate to effective and productive sales force management, organizational factors, such as organizational development interventions, are also critical in developing salespeople and identifying their value, and have not been sufficiently studied. In response to the research gap, this study presents a salesperson lifecycle management model for identifying and optimizing salespersons’ value using effective and productive organizational development interventions. Such organizational development interventions should be proven valid for recognizing the proper alignment of people strategies with organizational goals. Surprisingly, this important aspect of sales management has not gained serious attention thus far. To fill the research gap, this study develops a quantitative basis that measures salesperson value and salesperson lifetime value for identifying an optimal organizational development intervention decision. To address the research objective, this study conducts a simulation with four different organizational development investment strategies and, under each strategy, three different sales performance types. This study also empirically tests the quantitative basis developed in the study two with an actual salesperson performance data from one of global consumer financing company and finds that sales organizations can utilize the quantitative basis for effective and productive organizational development intervention strategies.