Situation: A company’s Sales Manager is likely to retire in the next two years, but has no strict timeline. This individual is the chief rain-maker and has been for many years. The subject of replacing this individual has been sensitive when mentioned in the past. How do you replace a Sales Manager and how do you manage the transition?

Advice from the CEOs:

• Have a frank conversation with the current Sales Manager. For the company to thrive it is necessary to start selecting and training an individual to take his place when he retires. Have him help develop the recruitment and transition plan. Also involve your Customer Service Manager.

o    Hire a person like the current Sales Manager and allow for up to two years for the new individual to get up to speed.

o    Find someone who is currently associated with one of your key customers and who has contacts.

o    Adjust your compensation scheme to focus on growth and customer diversification with enhanced commissions for bringing in these accounts.

• To ease the transition, start to build a different customer relations structure – one where the CEO has more engagement with key customers.
• An alternative to replacing the Sales Manager is to create a different organizational structure. For example, hire a COO who will eventually take over business development as well. Think longer term about to how you want the management structure to grow. Build your future vision of the company into this process.
• You can’t wait – start now!

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