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Vol 8, No 9, November 2009
Dear Hiring Manager:
While many hiring managers use the term "sales" and
"business development" interchangeably, there's
a
world of difference between the two. Without
knowing
that difference, lots of managers have found
themselves in tough situations when the person they
hired for one or the other function starts to fail.
Knowing the difference between the two can save
you
precious time and money — not to mention
a
whole lot of pain!
This month I give you important guidelines for
each
function so you'll know whether you need a "feet
on
the street" sales rep or a more strategic business
development person.

Betsy Harper
Managing Partner
Sales and Marketing Search
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Talk Boston to Me
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There's a new game in our family. It's
called "Talk
Boston" (or "Taak Baahstan"). It's the brainchild of my
daughter, Lee, and my 5 ½ year-old
granddaughter, Maria (pictured at right in full fall
splendor).
Living in El Paso, they get
lonely for Boston and their extended family. And when
they do, they don a very accentuated Boston accent
and have a fun time replicating (some — not
all!) Baahstonian-speak.
The other day Maria called and said, "Nana, I'm goin'
to a pahh-ty and I'm gonna eat lobstah." "And, Maria,
are you going to drink tonic with your
lobstah?
," I asked.
Unfortunately, Maria didn't know what
I was talking about. Tonic is not a word that's
used
in El Paso (unless you're one of those guys who uses
it on his hair!). In Texas, as in most of the country, the
term used for a sweet, fizzy drink is soda or pop.
There's a world of words that are used
interchangeably. In Boston, a "bubbler" is a water
fountain. In Great Britain, a bathroom is a "loo." (I
especially like that one!) And in Dublin, beer is "a pint,"
no matter what the actual size.
Colloquialisms can be fun, can't they? But they also
can be misleading and confusing.
Sales OR
Business Development
In business there are two phrases that ARE often
used interchangeably but really DON'T mean the
same thing. Those phrases are "sales" and
"business development."
It can be a costly mistake to think that the
functions of a salesperson are the same as those of a
business development person. Over the years, I have
seen a number of instances where a company has
hired one, when what they really needed was the other.
To be sure you don't confuse the two, here are
the
very important differences:
SALES — Sales people are:
- Tactical in nature. They are
happy
and comfortable when territories and quotas are
assigned and monitored by a manager on a regular
basis. Failure or success is black and white to them.
When they meet or exceed quota, they make or
exceed their earnings expectations. When they don't,
they beef up their performance or they start looking for
another job!
- Not expected to perform nor
comfortable
with marketing tasks. To be sure they get the
sales results needed, there is usually marketing
support in the form of product marketing, lead
generation, presentation materials, acceptance in the
market of the product, etc.
BUSINESS DEVELOPMENT —
Business development people are:
- Strategic in nature. Developing
business takes more time to come to
fruition (i.e. finding new markets, looking for new
channel partners, identifying larger opportunities for
revenue). Here, job functions can be varied and
many.
(As an aside,
because the functions of developing business take
longer, business development people are usually not
compensated the same way as salespeople.
Business
development compensations have a higher base
and lower upside than sales compensation. This
structure reflects the longer sales cycle, channel
management and marketing responsibilities of their
job.)
- Not comfortable with short-term,
quota-driven sales models. While there certainly
have to
be financial metrics around developing business, a
classic business development person is working on
larger deals that have longer time-frames. Ask them if
that big deal is going to close by the end of the month
so they can "hit the numbers" and you're probably
going to get pushback!
In its simplest form, think short term vs. long
term; you probably need them both. Be careful
you are not asking your sales force to do business
development work or your business development
people to do tactical sales. You'll frustrate yourself and
them.
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