Managing Cash Flow

Purpose of the Sales Function 117
1. SALES FUNCTION AUTHORITY
A. Organizational Status of Sales Function
1. Secure or prepare an organizational chart of the sales department
with descriptions of each work unit’s and/or sales person’s
specific functions.
2. Determine to whom the head (i.e. Vice President of Sales or
Sales Manager) of the sales function reports. Analyze the situation
and determine whether such reporting is proper or whether it
results in operational concerns and problems. The sales function
should operate independently but be integrated and coordinated
with other company functions. Analyze each work unit’s and individual’s
functions to determine whether they are appropriate and
necessary sales department functions.
3. Document the duties and responsibilities of each sales department
employee. Obtain copies of existing job descriptions and
validate through interviewing each employee and related supervisor.
4. Observe actual work being performed for each employee. If a
large number of personnel, select a reasonable number. For all
employees., have each one maintain a time ladder (in 15-minute
increments) showing how they spend their time for a two-week
period. Determine the necessity of each activity performed based
on observations and review of time ladders.
B. Sales Function Responsibility
1. Obtain or prepare company policy and procedures on sales functions
and activities. Determine that the responsibilities of the
sales function are clearly defined and understood by sales
department personnel and other within the organization.
2. Ascertain through interviews whether the sales staff has knowledge
of conflicting sales responsibilities assumed by top management
or others.
3. Document any conflicting responsibilities or sales function performed
by others that should be sales department responsibilities.
4. Obtain or prepare policy relative to other departments’ or individuals’
relations with customers as to contacts, discussions, and/or
correspondence.
5. Review above activities of others to determine the extent of such
customer relations. Select a number of “major” customers to survey
(telephone, written response, and field visit) as to their relations
with these other areas. Determine whether any conflicts
exist.
C. Sales Authorization
1. Obtain copy or document policies as to
• Management approval of sales forecast/plans.
• Approval of customer sales.
Exhibit 4.7
Sample Sales Function Analysis Work Program