Effective Salesforce Management Practices : A Real Option Approach

Salesforce are strategic assets to the sales organization, but their returns may not remain stable over time due to changes in business conditions. Salesforce investments are similar to investments in other types of real assets and thus carry uncertainties. The study identifies the uncertainties of return, volume and costs associated with salesforce and discusses various salesforce ‘options' which are capabilities generated by some Salesforce Management (SFM) practices and their combinations. The ‘real options' approach enables organizations to evaluate investment opportunities of salesforce in uncertain environments and underscores how these investments create value through future choices. The study also develops various frameworks for managing different types of salesforce uncertainties through better management practices