On a Performance Program? Is it Fair?

Depressed Sales Professional

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 slow down your work effort.

Sales is a occupation with much objectivity baked in to it.  Be as effective as possible, and recognize that this job may be aided by relationships and a plan, but if you are not getting results, you are forever vulnerable.

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

Always be the best.

Black Sales Journal 10/7 – Sales Professionals: Are You Jealous Enough?

Jealousy, the “green eyed monster”, lives in the hearts of many sales professionals. Don’t think that it is something abnormal, it is truly human nature!

Whether it is jealousy about income, managerial attention, or one of the worst ones – jealousy regarding recognition, it exists in many professional sales departments whether it is outside sales or inside sales.

You can be the object of such jealousy, or you may have jealousy in your own heart. I can relate as we all have been there.  I won’t be critical, but I will advise what you might want to use the jealousy to fuel your everyday activities.

Used correctly this jealousy could help you as a catalyst to propel you to do the things necessary to be the best.

There is Always a “Target”!

I once work with a sales professional, I’ll call him John L, who was flat out just better than anyone else in our sales office. He dressed the part, he had the sales training, and quite frankly even his name was associated with being the best.

There was no one that had the respect of all the different functions or departments like this individual did. He had management’s ear, and if he suggested a change or program, it was probably going to be implemented.

Alas, no one was jealous of this individual, as he was the standard.  So it is not always the best that is the target.

The target for jealousy is normally someone who is “the upstart”, the individual who is breaking away from the pack and making individuals of like tenure and abilities look bad. This individual gets to be the target of professional jealousy, in most cases whether it is deserved or not.

What Can You Do?

A quick review of some of the reasons for the professional jealousy will shed light on the issue.  Professionals get jealous because of the following:

Management Attention -In sales it is human nature to covet managerial attention, as that attention is a limited resource. Your sales manager tends to focus attention on the individuals who are getting results. Even if you are wanting for assistance, if you’re not getting results, and don’t show the potential to get results, the attention to you may be scarce.

Suggestions:

  • Get Your Sales Manager Involved In Your Business – From the simple ‘ride-along’, to negotiating and pricing.  Give him a ‘franchise’ in your operations and you will be surprised the level of commitment that can take place.
  • Schedule ‘status’ meetings with your manager – Don’t wait to be asked about key or major prospects, keep your manager up front and in the loop.  If you want the manager’s attention, tease out the attention by giving information and facts that provoke interest.  Always have something going!
  • Review Black Sales Journal 6/14/12 – 6 Simple Ways to Manage Your Sales Manager – This post will help you ‘manage’ your sales manager.  These points will work, if you couple them with doing the other activities that requisite to the job!

General Sales Success and Recognition– We’ve all been an office here ‘rising star’ changes the game.  This individual may put together a string of sales, land the big one, or gets the manager “knee-deep” in a string of new prospects that makes the manager feel needed. Note that the manager feels needed, not only because they’re being asked for help, but also they see potential and get a good feel for what’s going on.  Additionally, the more information the manager gets about your prospects, the more close to a sale situation he or she is in, and the more they will help you close the sale.

Suggestions:

  • Be in the Top 20% - Pareto’s Principal would suggest that 20% of a sales force garners 80% of the sales production.  You have got to be there.
  • Read Black Sales Journal 8/22/2013 Be in the Elite – Crack the 20%! – Realize that sales success is hard work, technique, and desire, and you need to be a sales leader, even if you are not the top producer.  Read this post and give it some thought!
  • Always be the Professional! – Remember that you have got to look the part as you seek to be in the 20% (see Persona below).  There are many sales professionals who a manager believes success is imminent, and just around the corner.

Income/Lifestyle – In this most measurable of professions, there are individuals who have been able to change their income, and resultantly their lifestyle and their family’s lifestyle in an amazing fashion.  The ability to work a compensation plan to perfection is what singles out sales professionals from many other occupations. Sales professionals used to measure success by some rather simple milestones, such as making six-figure incomes. Although this may still be a yardstick, there are many sales professionals whose six-figure incomes dwarf the theoretical threshold of $100,000.  They make enviable (notice that word) high six-figure incomes, buttressed by compensation schemes and benefits that include long-term compensation factors as well as other benefits.

Suggestion:

  • Know How You get Paid! – Master your sales compensation plan. Read Black Sales Journal 9/17/2012, It’s About That Paper – Know How You Get Paid!.
  • It is All About How You Manage Your Money – I was once told that a man making $25,000 could live like a man making $100,000, and a man making $100,000 could look like a man making $25,000.  It is all in how you handle your money.  You know what I mean.
  • Act Like You Have Been There – Spend your money wisely with an eye toward the future.

Persona –John L, individual I mentioned to start the article had a sales persona, in concert with a aura of success.  In addition to looking and dressing the part, his vehicle was spotless.  There are things that you can do that will give everyone around you confidence in your ability and your decisions. When you add to it business maturity, your persona is enhanced.

Suggestions:

In Sales Some Jealousy is Healthy

Many of us are motivated by jealousy, even if we don’t know it.  If you are burdened by jealousy instead of motivated, then endeavor to use it to your advantage.

Just like in a good relationship, some jealousy is healthy.  I am talking about the healthy jealousy that pushes you to be the better (or even the best) and seek the appropriate levels of attention and recognition.

Your comments are welcome.  Always be the best.