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.

_________________________________

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.

Why Can’t Johnny Sell? This Job is not for Everyone!

Well Dressed Professional

What makes the difference between those who flourish in a sales career, and those who struggle?  It is probably going to be one of the points you will find below.  Read this and let me know what you think.

_________

We all know great looking sales people or sales position candidates like Johnny, who have the appearance of premier sales professionals.  You can line them up and it would look like a privileged and capable sales force ready to distribute any ready product in any sales territory.

The truth is that Johnny and many of these candidates will fail.  Failure should not be a bad word in sales; it should be known as the occupational filter that it is.

A great education, a solid appearance, a good product, and skills training are all things that should help, but there are some important things that play heavily on someone’s ability to sell effectively.

Not For the Faint of Heart

Sales can be lucrative as a profession, but when you are without a couple of these skills or attributes, you are going to be at a disadvantage.

Johnny will continue to struggle or even fail if he:

  • Does not want to be in sales, and is unwilling to adapt
  • Doesn’t communicate effectively
  • Cannot form meaningful relationships
  • Avoids success by avoiding the most uncomfortable aspects of the sales job
  • Repeats the same unproductive activities over and over again
  • Frankly does not want to put in the work
  • Cannot deal with measurement and competition
  • Does not have a winning attitude

Does not want to be in sales – If you do not what to be in sales, and are unwilling to adapt to it, you are in the wrong place, and won’t be there for long.  As a sales manager, one of my interview questions was, “If we choose another candidate for this position is there a job in this organization that you would elect to do if that position is available?”  If the answer was yes, that individual wanted a job, not a sales position.  They lose in the job search.

Doesn’t communicate effectively – This one is not just the spoken word, but the presentation particulars as well.  Communications skills, including listening are ultra important.  For those of you who do it well, you probably take it for granted, but for many other sales professionals communication skills are not top notched. Johnny cannot show well against those who perform on a high level.

Cannot form meaningful relationships – You have heard me say it before, “Relationships are everything” when it comes to most professional sales.  You might refer to Black Sales Journal 1/13/2011- Deepening Your Customer Relationships for more information on this important topic.  Relationships give you preference, and preference in a business relationship is where you want to be.  You don’t ‘work’ the relationship angle, you live it.  If you develop enduring relationships you will benefit for years.  Relationship skills make all of the difference in the world, and are a major reason why some reps cannot sell.  In a sales environment that requires implicit trust such as a large ticket sale situation, you must be able to develop relationships that give preference.  This kind of preference is important, as it ‘trumps’ racial preference as the buyer knows and trusts you.  But there are people that have a tough time with relationships, and have not mastered the process of developing relationship basics.

Avoids success by avoiding the most uncomfortable tasks – You will not be successful if you avoid the tough stuff.  Prospecting is a good example.  Avoid prospecting on Tuesday, and something might come up on Wednesday, then you have a sales meeting on Thursday.  You have successfully avoiding sourcing prospects for 3/5ths of the week.  This activity is something that you would want to do almost every day.  Avoidance happens, but not for long, as you will begin new job hunt activities if you continue to avoid important tasks.

Repeats the same unproductive activities over and over again- Whether it is the habitual coffee break, long lunch, or even Friday afternoons off, unproductive activities have a way of repeating themselves.  The consummate professional has an ability to stop this madness and focus on productive activities.  Many sales professionals review the weekend with colleagues on Monday morning.  What can be more unproductive than a review of everyone’s child’s soccer games when money and a job hang in the balance?

Frankly does not want to put in the work – There are those reps, which appear lazy, but in truth it normally is something less vexing such as the point above, Avoids success by avoiding the most uncomfortable tasks. But laziness does find its way into many sales reps lives, and usually they get away with it for a while because of the requirement that they work without close supervision.  If you don’t want to put in the work, get out of the way and let someone else have a chance.

Cannot deal with measurement and competition – There are many individuals that quickly find that they are in the most measurable job that exist.  Being constantly measured and in competition with their peers gets to them and distracts them from cold calling and building relationships.  It does not seem as impactful as some of the others above, but it makes a difference.  You can be a ‘social worker’ in many different occupations, including management, but you cannot afford to feed the hungry and take in the needy in sales, as you are going to be measured objectively for the most part.  Lack of mental toughness in the face of the competition is the reason many falter.

Does not have a winning attitude – I saved this one for last as it speaks to why many sales professionals don’t make it.  You have to have perseverance and a belief that you will prevail.  A positive outlook is the most important ‘attitude’ that you can carry with you on a call, and in the office.  I know that this sounds light, but armed with a positive and winning attitude you can do so much.  I know a Black sales professional who I mentor (I will call her JP) who keeps a positive outlook through difficult situations.  The employer sees it, the customer recognizes it, and her family feels it.  The sales professional wins in the end.

Is There A Magic Pill for Johnny?

If you have some of the problems above you can still find success.  If you have all of them, you might want to consider another occupation. If Johnny should not be in sales, it is understandable.  Many of us cannot be successful engineers.  Review this post, BSJ 2/23/2012– The Smartest Person in the Room, to understand why.

This list is not exhaustive, but contains the major reasons. Black sales professionals can conquer so many business and societal ills on the basis that they are strong and adaptable.

Put these points to use and make the difference.