A Guide to Sales Management

CHAPTER 5

Organization Models, Recruitment, and Incentives

The organization of the front office: alternative models

Once a company has strategically determined how to sell by product line depending on the complexity of its product portfolio, the structure of its frontline can either be predominantly geographic or customer based.

In a fragmented and undifferentiated market, the organization of the frontline is based on territories assigned to sales reps or field account managers, which are coordinated by area sales managers reporting to the company’s sales leader. This is a horizontal and territorial organization that should not exceed 10–12 direct reports for each layer to guarantee good internal communication and effectiveness. When this limit ...