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Do Sales Pros Make Good CEOs?

May 20th, 2009 @ 11:30 am

8 Comments

Categories: Career Development, Management, Watercooler

Tags: CEO, Sales Strategy, Sales Force Management, Sales, Geoffrey James

Here’s a quick question to test your basic understanding of the business world.

It’s also a question that tests (a bit obliquely) your ability to sell to a CEO, because it helps you understand what that breed is all about.

Here’s the question.  Answer honestly, please.

Do sales pros make good CEOs?

  • CHOICE #1: Of Course! A sales professional needs great people skills, a winning personality, listening ability, enthusiasm, a sense of vision, and the talent to work well in a team.  Those are exactly what a good CEO needs to lead a great company.
  • CHOICE #2: No Way! Most CEOs have backgrounds in law, finance, or even marketing, and many have MBAs.  While there are a few famous CEOs who started out as sales professionals, there must be a reason that they’re not all that common.

PLEASE VOTE:

DO SALES PROS MAKE GOOD CEOs?

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AND THE CORRECT ANSWER IS…

…CHOICE #2: NO WAY! At least, according to several recent studies of successful CEOs versus their less successful counterparts.  Turns out that the kind of personality that makes one a great sales pro isn’t very useful when it comes to running a company.

The latest research was summarized in a recent column by the New York Times columnist David Brooks. Here are the bottom line of those studies, with quotes from that column:

  • CONCLUSION #1: Successful CEOs do not usually have good people skills. “Traits like being a good listener, a good team builder, an enthusiastic colleague, a great communicator do not seem to be very important when it comes to leading successful companies.”
  • CONCLUSION #2: Successful CEOs are all about organization and execution. “The traits the correlated most powerfully with success were attention to detail, persistence, efficiency, analytic thoroughness and the ability to work long hours.”
  • CONCLUSION #3: Successful CEOs are not flamboyant visionaries. “The best CEOs were…humble, self-effacing, dilient and resolute souls who found one thing they were really good at and did it over and over again.”
  • CONCLUSION #4: Successful CEOs tend to be rather dull. “The CEOs that are most likely to succeed are humble, diffident, relentless and a bit unidimensional.  They are often not the most exciting people to be around.”

READERS: Do you agree with these studies?  Or are the social scientists full of you-know-what?

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  •  
    1

    Ian P

    05/21/09 | Report as spam

    RE: Do Sales Pros Make Good CEOs?

    I guess it is very easy to point to examples that both 'prove' and 'disprove' the case.
    And it all depends on how you define a salesman.
    My view;-

    Top class salesmen that are/were great CEO's
    Richard Branson - Virgin
    Steve Jobs - Apple
    Bill Gates - Microsoft

    World class CEOs that could never sell chocolate cake in a teashop
    Ian King - Who? - BAE Systems
    Alan Mulally - Ford
    Jack Ma - Alibaba

    The fact is that being a successful CEO is almost an accident and being greedy for success is the most important trait, rather than a specific skill such as selling or people management or whatever.

  •  
    2

    Geoffrey James, Sales Machine

    05/21/09 | Report as spam

    RE: Do Sales Pros Make Good CEOs?

    Re: Note 1:
    If I recall, Gates and Jobs were college students when they began as entrepreneurs. Jobs may be a "natural" when it comes to sales, but it's my understanding, from people who know him well, that Gates has asbergers syndrome and his "selling" ability (such as it is) is an overlay to his basic personality.

  •  
    3

    keithfward

    05/21/09 | Report as spam

    RE: Do Sales Pros Make Good CEOs?

    One of the most important traits of a good CEO is to surround himself with people who are better at certain tasks then they are. The best and most successful CEO's that I've known normally are good in one or two areas of finance, sales, marketing, manufacturing, engineering, research, mergers & acquisitions, etc. They are then very good at hiring the best people to join their team. That said, I still beleive that a sales pro can aquire the skills to be a CEO but a CEO type would probably never be able to aquire the skills to be a sales pro!

  •  
    4

    Geoffrey James, Sales Machine

    05/21/09 | Report as spam

    RE: Do Sales Pros Make Good CEOs?

    Re: Note 3:
    What worries me about this is that some companies use the CEO as their ultimate closer. Although, maybe that's not a bad idea, since closing is the easiest part of the sale...if someone else has already done the heavy lifting....

  •  
    5

    Ian P

    05/22/09 | Report as spam

    RE: Do Sales Pros Make Good CEOs?

    Re note 2
    As I said it depends on how you define a salesman.
    Gates became a salesman after he founded his company, not before and he was effective in a way that left me in 'shock and awe'. He effectively made Microsoft products the world standard for general business software, firstly by focussing his personal sales efforts on big government and very large corporations and subsequently by 'marketing' his products to the rest of us as a de-facto standard.
    My, admittedly limited, view is that Gates sold in ways the rest of us don't really understand yet. He had to because his early products were basic and clunky and limited and his reputation was damaged as the competition played nasty.

  •  
    6

    bobchaif

    05/22/09 | Report as spam

    RE: Do Sales Pros Make Good CEOs?

    I think the real question is "Which has served the business community better"?
    CEOs that came from sales or ones that didn't. A balancing of skills may be in order.
    Maybe if the CEO had more focus on people skills and the ability to get more out of the organization, we would see expanded innovation, functional workforce relationships and commitment to the results blended to more than just the numbers.
    A specific solution my be efficient or profitable, but the environment can foster stagnation.
    When I look at the state of business in North America, I see the trend to install the type of CEO you described, when a market starts reaching maturity or to safeguard larger revenues. The other question is "How is that working out for us"?
    North America runs on business, Business runs on people (workers & customers)
    Let me know what you think.

  •  
    7

    Geoffrey James, Sales Machine

    05/22/09 | Report as spam

    RE: Do Sales Pros Make Good CEOs?

    Re: Note 6:
    No question that we need a reality check when it comes to CEOs. Certainly their pay is completely out of whack when compared to the value-add. Especially in the United States.

  •  
    8

    Brucejones1995

    05/22/09 | Report as spam

    RE: Do Sales Pros Make Good CEOs?

    In my experience, as a business consultant, the answer is clearly "maybe"! I have worked with CEO's with sales background who only thought "more sales is better". Likewise I've worked with technical CEO's who thought "only new technology is better". In truth a good CEO is a "quick study" with the capacity to be empathetic and understand the other guys problem.
    A good CEO needs to see the complete business, in it's context, not just as a salesman, nor as an engineer. In my expereince, again, the best way to get a CEO there is to get him/her to take ownership of the comprehensive Business Plan and the details of it's ensuing Business Case.
    When you learn to tie the Dollars and cents directly to the people and the processes they support, then you become CEO material. Of course character, diligence, discipline, sincerity and well-roundedness are good too.

    Bruce Jones
    bruce@verdevalleyconsulting.com

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