Archive for January, 2009

I just got a phone call from somebody who needed to cancel a meeting we had scheduled for next week.  A few days ago, he and most of his department were let go. He walked out the door without a badge or laptop, but still holding his Blackberry – loaded with emails, contacts, etc…  Two days later the Blackberry has not been wiped. He is using its data to professionally cancel appointments that nobody from his old employer intends to fulfill.  As an aside, he is also using that information to network a bit for his own benefit.

Needless to say, his previous employer’s equity has taken a hit in my eyes. We won’t be doing business. He, on the other hand, did me a favor by respecting my time and I’m inclined to repay the favor. The winners and losers in this conversation could be have reversed if the employer had a workforce reduction plan that respected its people, customers and suppliers. It isn’t hard, it just takes effort. Let’s put aside whether they are cutting “fat” or “muscle.”  They cut at least one of their opportunities for future growth.

Think about it if you are doing the cutting.

It sounds so simple. Determine goals, establish rewards, measure performance, and recognize achievement. These four steps seem almost too basic to merit a blog posting. In reality, however, many organizations forget the basics. WorldatWork’s Sales Compensation Practices 2008 report, a survey of over 400 compensation and human resources managers, tells the story. 

According to the study, 76% of companies change their sales compensation plans every year. This wasn’t a surprise to me. Additionally:

• 58% of these organizations communicate these changes directly to front line sales managers.
• 14% communicate directly to the salesforce.
• 13% take a decentralized approach.
• 7% do nothing.

The fact that 42% of companies don’t communicate these changes directly to front line sales managers was a shock to me.

I share the following thoughts, not as a change management practitioner, but as a former salesperson and sales manager.

• Salespeople are reward-driven. Granted, so are lots of other people, but salespeople live and breathe for their rewards. Do not keep the potential for rewards a secret.
• If a salesperson thinks you want dohickeys pushed and widgets are a second priority, you will get it. If you changed your mind, tell their managers that compensation is now tied to widgets and not dohickeys. Don’t let there be any confusion about priorities.
• Everybody’s most important point of contact is their manager, but in sales, the point is magnified many times over because of their “remote” nature. Show the manager respect and it trickles on to the salesperson. Leave the manager out of the communication loop, morale will suffer.

I’m a little biased, but many managerial rules of thumb are magnified in sales. Salespeople are willing to achieve great things for your company, but need management basics executed particularly well. Your revenue stream and customers deserve nothing less. Leaving managers out of the communication loop makes no sense.