what is the best structure for an asset management sales team?
There is really no one correct answer in terms of how to structure the most optimal sales team – but outlined below are several thoughts that you might consider as you address this strategic question. Assuming you have the right management structure, incentives, accountability, skills and training methodology in place – the next question is how to build the winning team.
There are three most common ways to set up a sales organization.
1. Organize by product
2. Organize by geography
3. Organize by client type
Let’s begin with product. The advantage of organizing by product is that the salespeople become experts particularly when it comes to a more complex strategy. Today, however, we are encouraging our clients to focus on solution-based selling rather than a targeted product approach, as investors are looking for managers to provide investment solutions rather than standardized products. Plan sponsors have shared with us in our survey work that they are looking for managers to have a holistic understanding of their entire situation and often view the relationship as extending well beyond a pure product sale.
So, that leaves organizing by geography or by client type. Setting the team up geographically tends to work for an organization with few resources – and smaller teams. The advantage of organizing by client type is that the salespeople in each category become experts in that category such that they can gain a comprehensive understanding of the space, the competitive landscape, trends, etc.
Finally, the use of product specialists is quite optimal – particularly for firms that are able to allocate dedicated resources. Product specialists have deep investment knowledge, likely actively participate in the investment process and sit on the team in some capacity. The benefit to having the product specialist is that they provide breadth to the sales team and free up the lead portfolio managers to focus on running money.
Once you have determined the optimal structure – don’t forget to ensure that the team goals and objectives are aligned to the broader organizational goals, that they have a defined working approach and decision-making methodology and that there are clear metrics and measurements for their success (both in terms of activities and outcomes).
– Jillian Rudman for Money Management Letter, February 11, 2011