I know that you’ve  heard about performance programs, even if you have not been a the situation!  It can be a bewildering position, but it is not uncharted territory.  You can beat a performance program.  You should never give up if it is constructed fairly and you are good at what you do.  don’t be bewildered, chart a course of action and get at it.

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Are you currently being threatened with termination?  Have you been put on a performance program?  I have seen both sides of this issue, and want to make some comments that I hope will be beneficial.

As a threatened sales professional, my sales program was fortunately loosely put together, but it was program nonetheless. Performance programs for sales professionals are structured tightly now, and you should know that what you’ll see when you view the performance program is essentially a template document from past programs and even terminations.  It will be fairly tight, if the managers that put it together are good.

As a manager, I put together sales performance programs that were designed to get someone to generate sales results or be out within a prescribed amount of time.  I suppose that you would call it ‘sales justice’.  These programs should be designed to be fair and equitable.  It probably will be based on the current goals and how those goals would apply in a shortened time period.

Owning and maintaining a sales force, or even a single sales professional is expensive.  Whether it is a single professional or a sales force can be expensive.  It is a wasted resource if it is not productive, even for a short period.  Programs are a necessary process and when used correctly can reform some behavior,

Can You Beat a Program?

The answer is yes… if the program is fairly constructed.  Sales professionals beat programs often if they have been working hard.  A well constructed sales program is potentially beatable if:

• Your goals are constructed fairly and the time limits are granted correctly
• You have been working hard and are not starting from ‘scratch’
• You have never stopped prospecting and recognize that prospecting is a required activity
• Your company’s products are solid and priced properly
• You have the sales skills necessary to be successful

To capsulize, if you have fair goals and have been working hard, you have a chance.  That chance is enhanced if you have been prospecting and working to sell your products to a wide base of prospects, and thus creating real, sellable opportunities.  If you don’t have the above bullets on your side, you are toast!

Defining Fairness

I would be remiss if I did not cover this portion.  Fairness is a concept that defines an employer’s actions.  Here is a simple example of fairness:

Your goals are as follows:

Sales in Dollars – $500,000

Cases sold – 25

New Prospects – 250

Quotes – 125

What you have here is a results and activity requirement.  New prospects and quotes are activity standards, and dollar sales and cases sold are result standards.  Activity leads to results, so both are necessary.  Some sales organizations will rest on the results standards and require their sales professionals to reach the results goal, but the best organizations realize that they must us both.  The presence of the prospecting and quote portion requires that those activities necessary to have future and continued success are being done.

So a fair performance program for 3 months would look like this:

Sales in Dollars – $150,000

Cases sold – 6

New Prospects – 63

Quotes – 31

The simple fact is that the goal for the performance program is an elementary 25% of the annual goal.  A simple but potentially fair goal.  It is based on the previous goal, and is apportioned in a way that probably could be justified and would hold up if tried in a court of law if the sales cycle worked in terms of lead-time and production time.

It Happened to Me!

As a fledgling account representative I was put on a program at a time when nothing would go right for me.  It was a time when our company’s product was good, but priced a little higher than the competition.  The program had a component that was centered around activity (how many quotes?) and on production (how much did I sell?).

I was successful and beat the program, but the key to that was that I had never stopped working, but had just not had success.  The activity portion does not guarantee anyone continued employment, but it is the process that counts.  I refer you to BSJ 2/28/11- How Many Prospects Do I Really Need? It is probably more than you think!

I will be honest that I was not confident that I would make it.  I had worked hard, but just had not been able to convert.  For some reason during the time when the program was in effect, I generated some sales and locked myself in. It also created an expectation that I worked hard to keep up with.  Remember your chances are always better if you never stop working!

If the Program Is Not Fair

If your program goals are not attainable, then you have a couple of problems that may be insurmountable.  You need to have the conversation with your manager re making the program ‘doable’.  If that does not give fruit, you need to have a conversation with human resources.  Do it immediately.

If you are behind the “8” Ball my suggestion is to do what is above while you try to work through it.  In most programs there is a clause covering any other deterioration of work.  In other words, you could be terminated earlier if you solow down your work effort.

Drop a note regarding your program and how you will beat it.

Always be the best.

Your comments are welcome.

Your Manager – “You are not getting it done.  Your territory is underdeveloped, and we are prepared to go in a different direction.  We are prepared to terminate you effective immediately.”  He goes on to say, “However, if you would prefer to resign we would be willing to extend some benefits that you would not get otherwise.  We would request you produce a letter of resignation and sign a severance agreement.”

You – “I am not sure of what I should do?  I need to think about it.  I will get back to you tomorrow.”

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There is nothing gracious about this moment.  There will potentially be a moment when you realize that you are probably going to be taking your talents elsewhere. Of course it may not be your choice.

Since there is nothing gracious about any of it, you should understand that in most cases as this is not personal, it is business.  Business can be cold sometimes…actually frigid might be a better word.

Let’s talk about a decision that could affect your future.  The implications affect both your current and future employment, and you should know them now as when the going gets rough, you don’t want to be deliberating while steeped in emotion.

Should I Resign?

Most sales professionals will deal with this in their lives at some point.  Whether it is because of lack of ability, weak product, poor territory, out-of-line pricing, or some other factor, it is not uncommon to reach the end of the line with your employer.  The Black sales professional have even a little more to be concerned about as credibility for future jobs comes at a premium.

If you have been on a sales performance program (see BSJ 4/30, Are You on a Sales Performance Program?  Can You Beat it?) you recognize that one of the common features is that there is usually a trigger date; that date which termination is imminent.  On this date you are going to have to make this important decision.

Apart from the obvious reasons for importance, you are faced with some important alternatives.  Here is why it is important:

• Concerns with Unemployment Compensation –you normally don’t get it if you voluntarily leave your position.
• Your need for employee benefits – this problem happens whether you resign or are fired.
• Concerns with credibility and marketability – as it would concern future employers may be preserved. This is not as prevalent in sales, but certainly is true in other occupations.

When you face this moment, you must realize that the sales occupation is a little bit different than many other professions in the fact that terminations are not wholly uncommon.  In almost all situations, the objective of the employer is to quickly end the employment relationship.

At this point, you may want out as well, it is how it is done that is important.  In some states and situations, resigning can rob you of the rights to your unemployment benefits.   These benefits could be your lifeline while you are out of work.

Resigning may give you an opportunity to negotiate the terms of your resignation.  A lot depends on the strength of the ‘case’ against you and how badly they want you out.  Negotiation may be a strong word in this case, but you might be able to get some better terms for your termination.

Should I Get Fired?

Being fired evokes strong emotions.  Obviously it is a still a termination, but it sometimes creates a feeling of powerlessness and victimization.

Aside from the emotional, this termination can have its good and bad points as well:

• You normally get a severance package.  Nothing comes without exacting some price, and in this case it probably will be your right to an employment action of any type.  Remember, once you sign the severance agreement, you are ‘toast’ regarding any action that you may later seek.
• Most sales professionals don’t get fired for doing something egregiously wrong; they get fired for not producing the right sales numbers.
• Sales, as an occupation, differs from many other positions in that there is a minimal stigma to getting fired for lack of production or effectiveness.
• If there is a ‘package’ of some type as an incentive for leaving quietly, you will probably have your noncompete agreement copied and put in front of you as a part of any severance you get.  You may want to negotiate this carefully as your ability to work for another employer is dependent on not having a restriction!

Terminated for Cause?

This is the exception to all of the rules.  If you have done any of the ‘infractions’ that result in a legitimate termination for cause, you could potentially leave with nothing.

These infractions include, but are not limited to:

• Intentional acts of fraud against the company
• Stealing from your employer
• On the job drinking or drug use (as defined by the employee handbook)
• Intentional breech of company policies
• Wanton damage to company property

Some Points to Remember

We are talking about sales personnel, and that is a defining point.  I am pointing out the fact that even the best sales professionals find themselves in situations that result in termination.  They move on and find success elsewhere.  It is the way it goes.

When your previous company is contacted regarding your role there, they are extremely limited as to what they will say.  They normally only give the following information:

• Verification of employment and title
• Verification of dates of employment
• Verification of salary at termination

Larger firms stick to these numbers and go no further.  None of this is incriminating.

Make a wise decision based on calculated information.

Always be prepared

Your comments are welcome.