Sales governance is the strategic framework connecting your board to your organization’s go-to-market effectors. It ensures alignment, accountability and executive oversight, while also creating a more direct and productive line of communication between sales and the board.
Strong (or weak) sales governance shows itself in several areas of an organization. These are some of the most common examples I observe:
New market strategy. Decisions to enter new markets are fraught with risk. In many scenarios, your risk and finance committees might be weighing in on these. Without a sales voice in the mix, you may be missing key indicators as you pursue new markets.
M&A due diligence and integration. Sales due diligence should be conducted on revenue, profit and product mix. It should extend to sales culture, performance results of the sales team, sales management acumen and measures of success that align to the buyer’s expectations. Without this, a buyer might acquire a firm with serious sales (and profit) deficits that take years and extreme measures to rectify.
Product strategy. Sales feedback is essential when developing, enhancing, or retiring products. Without it, decisions can disrupt revenue or misalign with customer needs. Boards that ask the right questions can help prevent strategic missteps.
A CEO can actively shape how the board engages with the company’s sales engine. Here’s how you can drive that:
Board seat. Advocate for adding a board member with strong sales or go-to-market experience. Boards with this skill gain insight into customer dynamics, growth patterns and front-line risk.
Inclusion of chief sales/revenue officer, chief growth officer or chief marketing officer in board meeting. Allow time for these leaders to provide updates on major initiatives impacting customers, sales strategy or marketing initiatives. While the CEO may typically deliver these updates, including sales leadership in the discussion enables directors to build relationships and connect the dots in a different way.
Attendance at sales events or customer meetings. Where appropriate, a board director may opt to attend a sales event, conference or customer meeting. The view into how sales teams operate, how customers view the company and how the company is perceived in the marketplace is valuable.
CEOs who advocate for the inclusion of sales governance in boardroom conversations will see improved performance from the sales function. Use these questions in an upcoming board agenda or in off-cycle conversations to elevate sales as a strategic focus:
- What trends (industry, global, cultural) have the highest likelihood of impacting sales results? How is the organization prepared to not only react, but be proactive?
- What key partnerships can be explored to enhance sales growth?
- Which segments of the business have the highest likelihood of growth and profit? Where do we have the greatest risks?
- What sales talent and skills will we require for the future? How are we positioned to succeed? What are our risks?
- What does sales leadership need from the board?
Propose a standing sales strategy update at key meetings. Advocate for time on the agenda to discuss go-to-market health. Make the case to your board chair that sales governance is a strategic imperative, not just an operational update.
One of the most impactful steps a business leader can take is to ensure the board actively supports sales performance. A board of directors aligned and partnered with the CEO and sales leaders on sales governance becomes a true strategic asset. ●
Amy Franko is CEO and LinkedIn Top Sales Voice at Amy Franko Associates
