CEO as a Salesperson - Should they?

From a broad perspective, the question of whether a CEO should engage in sales is based on two factors:

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Is the company prefering it?

In start-up companies, there can be a lot of volatility, that’s why it is crucial to have a strong CEO with a resolute determination to generate revenue and grow the company. Without a steady stream of revenue, the company can’t sustain itself, let alone grow. In such cases, it might make perfect sense for the CEO to be deeply involved in sales. Their network, credibility, and deep understanding of the product can be critical assets in closing deals, especially with early customers who might need extra convincing.  

As companies scale, however, the CEO’s role often shifts. The organization grows in complexity, and the CEO’s focus needs to broaden to include strategic planning, culture building, investor relations, and more. While sales remain important, the leaders might need to delegate this function to a capable sales team. The CEO’s involvement in sales, in this case, should be more about strategic oversight rather than day-to-day selling.  

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Is the CEO capable of doing it?

On the flip side, some leaders may lack the expertise and skills in sales (though they excel in other areas), meaning that regardless of the company’s stage, they might not be able to effectively contribute to sales efforts. Not all CEOs are natural-born salespeople. Some may excel in product development, operations, or strategic vision but lack the skills or interest in direct sales. Forcing such a CEO into a sales role could be ineffective, leading to frustration and subpar results.

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5 Portrait of CEO as a salesperson

1. The Downside of Distance: The Pitfalls of a Hands-Off CEO Approach

While the "Hands-Off CEO" can be effective in empowering the team and focusing on strategic initiatives, this approach comes with potential drawbacks.

A lack of oversight may result in missed opportunities, inconsistencies in sales strategies, or even ethical lapses, as the CEO may be too removed to catch issues early. Additionally, distancing from day-to-day sales interactions can cause the CEO to lose touch with customer needs and market preferences, making it difficult for the company to adapt swiftly to changes.

Furthermore, while autonomy can motivate some employees, a hands-off approach may lead to feelings of isolation or lack of support within the sales team, potentially diminishing morale and overall performance.

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2. The Risks of Unpredictability: How Loose Cannon CEOs Impact Sales and Morale

This type of leader engages with customers without gathering crucial insights or background information from account managers. Lacking a deep understanding of customer needs and pain points, they often miss the mark in addressing real concerns. As a result, they tend to make unrealistic promises, leading to disappointment and frustration for both the sales team and the customers.

A study by the Harvard Business Review found that 58% of employees working under unpredictable leaders saw a drop in morale and productivity, and 25% thought about quitting. The erratic behavior of a Loose Cannon CEO can cause internal chaos, leaving the sales team struggling to deal with sudden decisions. Without a clear strategy and consistent communication, the company can miss out on opportunities and lose focus, which hurts long-term growth.

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3. Fostering Goodwill or Driving Sales? The Impact of the Social Visitor CEO

This type of CEO engages with customers primarily for social reasons rather than to drive deals or gather strategic insights. Social Visitor CEOs often prioritize building and maintaining relationships with customers, which can create a positive impression. The article notes that 55% of CEOs who engage in social visits with customers report improved customer relationships, but only 20% see a direct impact on sales. There is a risk that their social visits might not align with the company’s strategic goals, potentially causing confusion or mixed messages.

Additionally, employees might perceive these social interactions as less impactful compared to more strategic engagements, affecting their view of leadership effectiveness. Despite these risks, Social Visitor leaders can enhance the company’s image and foster goodwill among customers, offering long-term benefits.

4. Sealing the Deal: The High-Stakes World of the Deal Maker CEO

The "Deal Maker CEO" is highly driven and dedicated to closing deals. They are skilled and knowledgeable, and their presence brings significant benefits to the sales team, especially during critical moments when customers are making decisions. However, this excellence can lead to dependency, with the sales team relying heavily on the CEO. If the CEO does not find a successor, they may end up spending excessive time on sales and managing details, potentially losing focus on broader strategic goals and long-term objectives.  

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5. Leading for Growth: The Strategic Approach of a High-Impact CEO

A perfect CEO excels at building relationships, crafting strategies, and generating revenue. They are adept at finding new opportunities, entering new markets, and driving innovation and growth. However, to be truly effective, a Growth Champion leaders must balance this ambition with sustainable practices.

According to McKinsey, companies with clear strategic direction from the CEO are 2.4 times more likely to be high performers, emphasizing the importance of setting strategic goals. This includes fostering a culture of continuous learning and ensuring the team is aligned with the company’s growth objectives. Additionally, they should invest in building strong leadership within the organization to maintain momentum and achieve long-term success.  

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Quick Conclusion

Ultimately, the decision for a CEO to engage in sales should align with the company’s stage, strategic goals, and the CEO’s personal strengths. For companies aiming for growth, it is crucial to leverage the CEO's unique capabilities while ensuring they maintain a focus on long-term strategic objectives. By understanding these diverse leadership styles, companies can better navigate the complexities of balancing sales involvement with broader business leadership, fostering an environment that drives both immediate and sustained success.

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