Artificial Intelligence … depending on who you ask, it's either the greatest business tool to come along in decades or the beginning of the end of civilization. Personally, I think the truth is somewhere in the middle.

Over the past two years, I've spent a significant amount of time experimenting with AI … not because I wanted to become a technology expert, but because I wanted to determine whether it could genuinely help LBM dealers become more efficient and productive.

When it comes to LBM sales managers, what I've discovered is this … AI won't replace great sales managers. But it will absolutely replace many of the tasks that prevent great sales managers from doing what they do best … and that's leading people.

Give Sales Managers More Time to Lead

One of the biggest complaints I hear from sales managers is that they don't have enough time. They're buried in meetings; they're answering a gazillion emails; they're dealing with customer issues; they're approving pricing; they're resolving conflicts within the company; they're putting out fires all day long, etc.

Then, somewhere toward the end of the day, they finally get around to coaching salespeople … the very activity that probably creates the greatest long-term return.

The irony is almost painful. The job that matters most becomes the job that gets pushed aside. That's where AI can make an enormous difference.

Let's get something straight … this isn't about replacing people. It isn't about eliminating jobs. And it certainly isn't about turning your salespeople into robots.

The best salespeople in our industry still build relationships, solve problems, earn trust, and understand personalities. No technology is replacing that.

Instead, AI should be viewed the same way we once viewed spreadsheets, smartphones, or software. It's another tool. A very powerful tool, but still just a tool.

The companies that benefit won't necessarily be the ones with the fanciest software. They'll be the ones with leaders willing to use it wisely.

If you ask me what separates average sales managers from exceptional ones, my answer hasn't changed in forty years. They coach consistently, intentionally, and individually. Unfortunately, coaching is usually the first casualty of a busy schedule. AI can help get some of that time back.

Imagine asking AI to summarize a prospect’s business prior to the first meeting. Or creating the first draft of next month's sales meeting agenda. Or organizing handwritten notes from ride-alongs into coaching points. Instead of spending an hour creating a report, you spend ten minutes reviewing one.

That's not replacing leadership … that's creating more opportunities to lead.

Better Sales Meetings Without More Work

Wouldn’t it be great to have better sales meetings without more work? Let's be honest … some sales meetings are painful. The manager talks and everyone listens (well, some pretend to listen). Someone reviews numbers. A few announcements are made. Everyone leaves. Nothing changes.

AI can help sales managers build meetings that are actually worth attending. Need discussion questions? Need role-playing scenarios? Need examples of difficult customer conversations? Need a competitive selling exercise? AI can build all of that in minutes. The sales manager still decides what's important. AI simply eliminates hours of preparation.

More Focused Coaching

Coaching doesn't have to be complicated. Many managers struggle because they aren't sure what to discuss during one-on-one coaching sessions. AI can help organize those conversations.

Examples:

• Upload performance data.
• Include notes from previous meetings.
• Identify trends.
• Generate discussion points.
• Recommend development ideas.
• Etc.

Instead of walking into a coaching session wondering what to discuss, you'll walk in prepared. The salesperson notices the difference because preparation communicates commitment.

Make Better Use of the Data You Already Have

Most dealers already have more data than they know what to do with, such as sales volume, gross margins, average order size, quote conversion rate, sales by product category, wallet-share, customer profitability, etc. The problem isn't all the information in your ERP system … the problem is interpreting it.

Artificial intelligence excels at finding patterns.

Examples: Maybe one salesperson sells an unusually high percentage of low-margin products. Maybe another has exceptional growth with remodelers but struggles with large custom builders. Maybe one location consistently discounts more than others. Maybe one salesperson’s returns are unusually high.

AI won't make management decisions. But it can point out trends you might otherwise overlook. Sometimes asking better questions is more valuable than getting immediate answers.

Prepare Better for Customer Meetings

Good salespeople prepare for customer meetings … great salespeople prepare even better.

Before meeting a contractor, AI can help summarize previous conversations (if any), review industry trends, identify likely challenges, suggest questions to ask, and even brainstorm value-added ideas specific to that customer's business.

Instead of walking into a meeting hoping inspiration strikes, the salesperson walks in with a plan. Preparation builds confidence. Confidence builds credibility.

Help Develop New Managers

One of the biggest challenges facing our industry is developing new managers. Many excellent salespeople are promoted because they can sell. Then they're expected to manage. Those are not the same skills.

AI can become a resource for newer managers. It can explain difficult management concepts, generate coaching ideas, provide difficult conversation examples, suggest performance metrics, help create training programs, recommend books and articles, and more.

Will it replace an experienced mentor? Absolutely not. But it can shorten the learning curve.

Don’t Forget the Human Side

Let’s not forget the human side. Here's one concern I have. Some organizations will become so fascinated with AI that they'll begin substituting efficiency for relationships. That would be a mistake.

Customers don't remember your AI-generated email, but they’ll remember the salesperson who quickly and efficiently solved a problem for them.

Employees don't stay because your reports are impressive … they stay because they have a manager who invests in them. Leadership has always been personal. Technology should support relationships, not replace them.

Start Small

Whenever new technology appears, some people immediately try to change everything. Others refuse to change anything. Neither approach usually works.

Instead, start with one challenge. Maybe it's being better prepared for meetings. Maybe it's organizing coaching notes. Maybe it's writing better emails. Maybe it's analyzing customer data. Become comfortable with AI technology. Learn what works for you and what doesn't. Then expand.

The dealers who receive the greatest benefit from AI probably won't be the ones spending the most money. They'll be the ones asking the best questions. The competitive advantage isn't necessarily AI, but rather how you utilize it.

Within a very short time, if it isn’t happening already, every dealer will be using AI in one way or another. The software won't be the competitive advantage … leadership will be.

The manager who uses AI to spend more time coaching will outperform the manager who uses AI simply to produce more reports. The salesperson who uses AI to prepare better for customer interactions will outperform the salesperson who only uses it to write emails. The dealer who combines technology with exceptional people will outperform the dealer relying on technology alone. That's always been true.

Great businesses aren't built by software. They're built by leaders who help ordinary people accomplish extraordinary things. AI simply gives those leaders another tool. The future doesn't belong to dealers who fear AI. Nor does it belong to dealers who blindly chase every new technology. It belongs to those who understand that the real competitive advantage has never been computers … it's people.

And if AI allows managers to spend more time developing those people, then it may become one of the most valuable management tools our industry has ever seen.

Join Us September 10

I will join BLD Connection and John Marshall for a webinar on AI and the future of sales leadership on September 10 at 12:00 p.m. CDT. We are handling it as a question-and-answer conversation rather than a presentation. I will ask John questions based on my 40+ years of actually working for independent LBM dealers.

Most of you know me, but you may not know John Marshall. John is the founder of AI Growth Partners, which helps privately held building material companies put AI to practical use. He previously served as president of Wilson Lumber in Huntsville, Alabama. He also writes a weekly newsletter for operators at aigrowthpartners.net/blog.

The goal of this webinar is not to convince anyone to use AI everywhere. It is to find where it helps your people prepare, follow through, and improve without getting between the salesperson and the customer.

Mike McDole is the founder of Firing Line LBM Advisors. Over his 40+ year career in the LBM industry, he has served in sales, operations, and senior leadership roles, including SVP of one of the largest independent LBM dealers. Currently, he works with dealers across North America to improve sales effectiveness, develop leaders, strengthen profitability, and build stronger organizations. Mike is also a frequent speaker, trainer, and contributor to industry associations. He can be reached at 774.372.1367 or mike@firinglinelbm.com.