Margolis Advisory Group, Inc. . Investment Management . Consulting . Sales

The Optimal Sales Organization for an Asset Manager

One of the questions most frequently asked of us is what the best structure is for a sales organization. The short answer is that there is no one best structure, but there are guidelines. In general, sales responsibilities should be client focused rather than product focused. This orientation encourages sales professionals to understand the goals of their clients and try to provide solutions for them, rather than trying to force products to fit a client’s portfolio. There are some special situations where products are extremely complex, requiring deep expertise to represent them. But even in these situations, in a multi-product firm, product focused sales individuals could clash with generalists.

Another dimension which is important to consider is whether the sales professionals should be organized by geography or distribution channel. Typically, small sales teams are organized geographically since there are not enough resources to specialize. However, the current environment is demanding more and more knowledge of each client’s specialized needs which is pushing organizations to specialize with their sales teams as much as possible. Since the financial crisis, investors have been looking for investment solutions to their problems rather than standard products. It is the task of the sales professional to thoroughly understand their client’s situation and marry their firm’s investment capabilities with them to formulate solutions.

1 comment November 16th, 2010

What is the Ideal Sales Structure?

This is one of the most frequent questions I get from managers. Many managers look for an ideal sales structure. How should they organize sales vs. client relations; or, sales vs. consultant relations? Should they segment their sales force by client type or organize geographically? Where should product specialists report? How should the marketing and sales organization align with product development and management?

The answer to all of these questions is that it depends! There is no one ideal structure. If there were, all firms would have it. The best structure for a particular firm depends on: its market position; growth goals; existing client relationships; existing personnel; and investment capabilities. Designing and implementing the right structure will align the firm’s investment and marketing sides so that all personnel are synchronized and it’s brand in the marketplace is clear and strong.

Look for my new white paper coming out this week on building a premier marketing and sales organization.

Add comment September 28th, 2009