Thursday, October 18, 2012

Joe’s Dilemma: Quotas vs. Goals

Today I want to continue with Joe’s saga of his growth as a sales manager.
When I first started working with Joe, I told him that I was not a quota guy. As I shared with him, quotas produce OK results from the sales people, but lack the important buy-in that you need from your sales people as well as the entire sales team.
Many times the financial projections that are given to sales team lack the following:
·         A clear understanding of the company’s goals blended into the individual goals and objectives of each sales person
·         Each sales person needs to be a part of a decision making process in respect to their own individual projections tied into the company’s financial plans.
On the other hand, if sales people are provided with clear objectives as well as are assured that they are a part of the process and are responsible to make decisions, the job will be done with a better outcomes and higher motivation.
Sales people need a clear vision on how their individual productivity ties in to the company’s plan and clearly see their role. Goals motivate and work; quotas many times create anxiety and “just do it” mentality. It is just not a formula that ensures steady and consistent company growth.
Joe and I worked diligently with our sales people in creating an interesting, fun, and realistic game plan, which eventually created a win-win situation for everyone.

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