| |
| |
|
Sales Management Information |
|
|
|
Rotten to the Core: The Story of How the Best and Brightest can be Ruined
The objective of an incentive is to incite action within an organization using a device or mechanism that that allows the rewarding or recognition of behaviors. This can be accomplished by offering preferential treatment, money, privileges, promotions, verbal praise, or complements. With that states, I suggest the answers to the questions above are: ~ YES ~ I admit this topic is not the norm when it comes to the subject of employee moral. Usually this type of discussion involves companies that are not in tune with the pulse of their workforce and have severe performance issues that could be further aggravated by either non-existent or poorly functioning incentive programs. The one thing you will not walk away from at the conclusion is that somehow recognition is wrong, or that employees should not be motivated, and that incentives are no longer a viable factor in performance related issues. However, sometimes while trying to do the right thing excessively well can actually produce the wrong results, for the right reasons. I believe that the greatest management principle explains that what gets rewarded gets done. If you are not getting the desired result within your organization, ask yourself what behaviors are being rewarded. It's a very simple, but very powerful question. I've practiced it, trained others on it, and believe it should represent the cornerstone in any improvement initiative. Over past 8 years, I've created countless bonus structures, incentive plans, and contests designed to drive sales performance, attendance improvement, attrition reduction, and quality initiatives for entry-level employees all the way up to senior managers. When I say, "I believe in recognition, and incentive programs", I mean it and have the experience to back it up. I like to think of incentives and recognition as wonderful little gifts that are awarded to the best and brightest for going above and beyond or for one's voluntary willingness to perform a potentially undesirable function in attempts to assist the organization. Employees work for their agreed pay rate, and these gifts are sprinkled around to promote an environment of appreciation and good will for a job that is both appreciated and well done. With all this good will in the air, what seems to be the problem? What happens in the midst of the chaotic business environment is the context of the incentive can become confused. Without context, the meaning and objective is no longer anchored and becomes subject to interpretation. These suggestive interpretations can originate from poor communication, lack of specificity, or failure to maintain the differentiation between job expectations and an incentive or reward. In a worse case environment, context and interpretation loss can create an informal employee contract where performance is no longer contingent on their agreed to wage, but rather on the existence and significance of an incentive. To help your visualization I've included both obvious and subtle situations that can result from interpretation - context loss. Attendance Trap? To discourage absenteeism an incentive bonus is put in place, as a result employees come to work and have great attendance. Supervisors support this policy by encouraging workers to come to work so they do not miss out on the bonus. The employees continually receive this incentive, but then attendance improves for the organization, and the bonus is dissolved. ? What is the context in which this employee will view this situation? ? How will they view the value of attendance without the incentive? Sales Slip? An incentive program is put in place to boost poor sales performance. If an employee meets their sales goal, they can receive an incentive of several hundred dollars. Supervisors encourage their reps to do well so that they can be "in the money". This continues for several months. Employees are now expecting this as part of their income, but due to financial problems with the company, the incentive is discontinued. ? What is the context in which this employee will view this situation? ? How will they view achievement of their sales goals? Supervisor Motivation? As a super seller, an employee's consistent performance ensures her team is ranked among the best within the company. The employee has an attendance issue, but is solid player when present. The supervisor is lenient on the attendance policy, and chooses not to hold the employee accountable for fear the employee might come to work even less or eventually have her employment terminated due to poor attendance. Instead the supervisor discusses the value of being at work and says that the policy needs to be followed, but in conclusion congratulates her on her success with sales. ? What is the context in which this employee will view this situation? ? How will the supervisor be viewed? Team Quality? In this situation the associate comes across a rough and abrasive to customers, but his aggressive approach produces high sales numbers. The other team members are aware that his quality is below standard. The supervisor in an attempt to recognize his top-seller presents him with a certificate and $5 gift card in front of the team and shakes his hand for a job well done. ? What is the context in which this employee will view this situation? ? What is the context in which the employee and his team will view quality? Lack of facts? ? What is the context this employee will view this situation? A manager's error? ? How will this supervisor view her manager situation? ? How will this supervisor view this situation? Additional tips and areas of caution for the above situations: ? Use specific recognition, as opposed to blanket praise. ? Keep employees grounded by reinforcing the fact that they are paid to do a job, and anything extra is not permanent, and represents a gift from the company. ? Bending the rules or rewarding top employees with un-balanced performance can effectively disgruntle and suppresses your entire middle population. ? Using an incentive in place of a performance management process builds a culture that only performs when rewarded. ? Unrealistic standards only create a higher level for employees to fall from. As you consider the above scenarios and examine similar situations in your own work setting, dwell on the importance of context, and how it applies. Focus on perception and understand that it is reality. Remember, while trying to do the right thing, you can get the wrong results. Above all, remember to use the greatest management principle as your guide: What gets rewarded gets done. If you're not getting the result you are looking for, ask yourself, what's being rewarded? http://www.righttolead.com - Have you earned the Right To Lead? Aubie Pouncey is a contributing writer and member of this new website. If you are interested in his ideas or are looking for effective ways to manage then you will be interested in this: http://motivators.righttolead.com
MORE RESOURCES:
Sales-Management - Google News |
|
|
|
RELATED ARTICLES
Set Yourself up for Trade Show Success Of the many mistakes small business owners make, a big one is participating in trade shows and business expos without a strategy for turning those marketing opportunities into sales. Here are five tips to get you started. Outsourcing the Sales Function Small to medium companies that want to increase sales or profits and find it is possible to outsource sales should - do it! At this point most business owners and executives either become overwhelmed with doubt or fear.Here's what we hear: "We can't give up control of sales, that's too risky. Drop Discounts and Earn Top Dollar Every dollar you discount is a dollar of pure profit you're giving away. Therefore, your efforts to remove discounts will be richly rewarded. Sex, Drugs, & Rock-n-Roll at Trade Shows Here's the Scenario.. The Achilles Heel of Management Coaching While heading home at day's end, you begin reflecting on a coaching meeting you had earlier that day with an employee, Chris. You hope that, this time, you finally succeeded in getting her to understand the importance of spending less time in disruptive socializing in the office and more time elevating her performance. Building Trust For Lifetime Success Trust.One word. 8 Line Items of a Trade Show Budget Budget Guidelines for Trade Show MarketingB'techa didn't know - Trade shows are the second largest expenditure of corporate marketing dollars in the US. Only the field salesperson costs a company more. Producing Premium Performance One of the major issues that arises in managing a small or medium size business is in the area of employee performance. Many business owners are frustrated with the poor performance of their team or some individuals within their team. How To Build A Worldwide Distributor Network When your product is market ready and has a good bargain, it will be no value to you if you don't know who's going to buy it, or how you are going to tell the world about it. Your product will only sell if it has a good wide distribution network. Generous Donor Refused (how qualified business slipped away) Generous Donor RefusedPicture this. You are a fund development director for a respectable school at a well-known state university. How to Improve Your Management Procedures Usability Are your people consistently following your procedures? Each year, organizations lose thousands of dollars through common mistakes and lapses in usability. But what does that mean for business owners and executives?Ask yourself:Are your required actions described thoroughly and accurately, or are the details left open to interpretation?Is your content consistent and complete, or are your writers leaving gaps no one has noticed?Are revisions controlled, or are different people using different versions?Are your procedures compliant with regulations? Are you sure?Are all documents written to produce clear, measurable results?If you're unsure about any of the answers to these questions, there is good news: you can make your procedures clear and complete without combing through all of them yourself line by line. Sales Tactics to Beat Your Competition This month I want to share a success from a friend and customer of mine. You'll find in this story two important sales tactics for beating your competition. All Small Businesses Need to Gather Community Intel How well do you know your community? As business owners it is essential that we know our communities intimately. Have you ever made the effort to learn more about your town; Do you even know where to look. Sales Coaching... Fact or Fiction? The old adage in selling has always been, "Find out what they want, then, give it to them." The fundamentals of selling are clearly that elemental. Change in Sales Organizations Starts with Me Question: What do the following have in common?- I spend a lot of time spinning my wheels and not getting very much done.- I am continually frustrated with the performance of my sales team. The Spirit Of Change A Highly Conscious Approach To Business Management. For more on this topic please link to Innerwealth Web SiteFor many years I have worked with people who are keen to work effectively as possible. Not Enough Fresh Sales Leads? Marketing is the New Sales Your sales are down and leads are rare. The phone's not ringing. Transforming Your Sales Force by Creating Specific Expectations I just finished a phone call with a potential client who had called to discuss a problem. His 18 person sales force was paid on straight commission. SEZ WHO? Tips About Recommendations, Sales Cycles, and Trade Shows Here's the scene. You're at the trade show, having a discrete "Sales Call" conversation with a visitor. How to Beat the 80/20 Rule in Sales Performance -- Part 2 Another key reason why companies suffer from 80/20 performance is their processes for hiring, training and managing salespeople rely almost entirely upon subjective information. Think about it: What are resumes? They are an individual's subjective portrayal of their capabilities and experiences.
|
| home | site map |
| © 2006 |