Learn how sales governance strengthens board decisions and drives success.
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Few boards prioritize recruiting directors with specific expertise in sales. However, as companies face mounting pressures, the inclusion of a sales lens on the board can serve as a crucial differentiator. The article “Sales Governance and the Board,” featured in Private Company Director, explores the importance of sales governance and its role in driving shareholder value, new market strategy, M&A success, and product innovation.
The article identifies several key areas where strong sales governance can positively impact an organization. For example, sales results directly affect shareholder value, and the inclusion of a sales voice in new market strategies can mitigate risks often overlooked by finance and risk committees. Additionally, the article highlights the importance of sales due diligence during M&A, particularly in evaluating the sales culture and performance of the acquired company.
Moreover, the article emphasizes that product and pricing strategies can benefit significantly from sales governance. With the right board involvement, organizations can avoid costly missteps that result in major revenue and profit shortfalls.
The article also provides actionable ways to integrate sales governance into board structures, such as recruiting directors with sales experience, incorporating a sales perspective across pertinent committees, and encouraging board member participation in sales events. By asking the right sales-related questions, boards can guide management more effectively and position their companies for long-term success.
Read the full article, “Sales Governance and the Board,” to learn more about how a focus on sales governance can drive better outcomes for your organization.
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Frequently Asked Questions
Sales governance is critical for ensuring that an organization’s sales strategies align with its overall goals, contributing to shareholder value, market strategy, and profitability. A board that incorporates a sales perspective can help mitigate risks in areas such as market expansion, M&A, product innovation, and pricing strategy, which can prevent costly mistakes and drive better business outcomes.
Boards can integrate sales governance by recruiting directors with specific sales experience, ensuring that a sales voice is present on relevant committees like finance, strategy, and compensation, and forming ad hoc committees for significant organizational changes. Additionally, involving sales leaders, such as the Chief Sales Officer or Chief Marketing Officer, in board meetings can provide valuable insights into the company’s sales strategy and customer relationships.
Boards can ask several strategic questions to foster sales governance, such as: Which segments of our business show the highest potential for growth, and where do we face the greatest risks? What sales talent and skills will be necessary for future success, and how well are we positioned to acquire or develop them? These questions help boards guide management and better understand the impact of sales on the company’s performance.
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