Lars-Johan Åge, Stockholm School of Economics Abstract This study focuses on the substantive area of sales management and it suggests that the main concern of a sales manager is to reach the sales and economical goals of the sales organization. The social process by which this main concern is resolved is called goal-oriented balancing and it describes two complementary organizational dimensions, frame development and individual development that are continuously balanced against each other. That is, the sales manager must establish effective organizational processes and structures as well as find the keys to maximum individual performance. These two processes have to be in balance and supportive of each other. Introduction A sales manager’s responsibilities include assigning territories, mentoring team members, assigning training, and building a plan. Managers are often involved in hiring and firing and have to determine sales force effectiveness. They also have to determine sales force effectiveness by continually assessing how well members of the sales organization perform. These evaluations provide a basis for rewards, but they also generate feedback that can be used to improve the overall sales management process. The aim of this grounded theory study is to produce a theory that explains the main concern of sales managers and how the population resolves that main concern. Data was collected for this study from 27 interviews in 13 different companies that were regarded as very effective sales organizations. The first eight companies were nominated as “best sales organization” in Sweden 2011 by Weekly Business (in Swedish: Veckans Affärer), a leading periodical. The other five were chosen based on snowball technique and were recommended by the respondents in the first sample. Data were primarily collected from interviews, each of which lasted approximately 1-2 hours. The respondents were sales managers or directors. The criterion for choosing respondents was that they should have responsibility for the whole sales organization. Therefore, middle sales managers were not included. The author conducted the interviews at the respondents’ organization. Leading questions were avoided during the interviews; rather, interviewees were asked to respond freely to general open-ended questions about the challenges and difficulties they experienced during these management processes. According to Glaser (1978), such an attitude of “openness”(p. 44) is crucial for developing the emerging theory. Finally, existing categories were allowed to guide the interviews to some extent. The interviews were audio-recoded and notes were taken. Extant Literature Within the extant sales literature, researchers have often considered the characteristics of the salesperson as the main predictor of sales performance and sales effectiveness (Babakus, Cravens, Grant, Ingram, & LaForge, 1996). Two of the most well known efforts are the models presented by Walker, Churchill, and Ford (1977) and Weitz (1979, 1981). However, these studies resulted in a lack of “adequate explanation of observed inconsistencies” (Churchill, Ford, Hartley, & Walker, 1985, p. 103); in the 1980s, researchers started to focus on sales management practices as determinants of salespersons’ performance and sales organization effectiveness. To understand these managerial factors, three different and rather disconnected areas of research emerged around the themes of motivation, control systems, and compensation plans (Brown, Evans, Mantrala & Challagalla, 2005). Sales force motivation research is based on psychological theories and emphasizes personal characteristics and perceptions as determinants of individual performance (Vinchur, Schippmann, Switzer, & Roth, 1998; Brown & Peterson, 1994; Bagozzi, 1980; Brown, Cron, & Slocum, 1998). The literature involving control systems has mainly focused on metrics and monitoring, and draws on management and organizational theories (Anderson & Oliver, 1987; Oliver & Andersson,...