A reader writes, "This year I'd like to set goals that motivate my salespeople. In the past, when I've tried to do this, I end up doing most of the talking and telling them what I'd like to see them achieve. They don't participate much. How do I create a partnership between myself and the reps?"
Whether someone aspires to watch less television or start working out more consistently, everyone -- salespeople and non-salespeople alike -- more enthusiastically embraces goals they set for themselves. As you establish the 2012 goals for your sales reps, don't forget to ask them what they would like to accomplish.
Asking a salesperson what they'd like to accomplish without any warning may catch them off guard. Though well intentioned, their responses to your question may be vague or unrealistic.
Setting a goal carries with it the possibility of being held accountable for achieving it. Knowing this, reps might be conservative about what they say or agree to.
Avoid this by giving them some advance warning. Ask them to come prepared with a list of goals they'd like to accomplish. Don't criticize or agree to any of the objectives. Just start a discussion. Set a time to meet again.
Specific and Measurable
Once you understand what they'd like to accomplish, work together to come up with specific and measurable goals that benefit them and the company.
In the chart below note the differences between the pairs of stated sales objectives:
|Do more business with my largest accounts.||Increase overall sales revenue by 5% with my top ten accounts.|
|Grow the number of accounts that carry Product X and Product Y.||Add two accounts per quarter that carry both Product X and Product Y.|
|Schedule more meetings with decision makers running companies that could use our product / service.||Complete one meeting per month with a decision maker running a company in my target market.|
For salespeople, achieving goals requires working with other employees. For instance, a rep wanting to convincing companies to carry both products X and Y needs solid product and competitive knowledge. Your company's product development group or support group could offer assistance in this area.
Share the sales goals with staff in other departments. Be specific about how they can help out. Ask for their support when necessary.
Do the Math
When setting goals, both parties sometimes lose sight of the main benefit - additional revenue for the company and more commission for the salesperson. If two accounts per quarter do agree to carry both Product X and Y, how large might the initial order(s) be? What about subsequent orders? How much revenue/commission might that mean over the course of the year?
Work with the sales rep to calculate the dollar amounts. Determine how far above quota they might finish. Ask them how much their bonus check would increase over last year. The possibility of a substantial boost in income keeps reps focused.
Eyes on the Prize
Estimate what achievement of the rep's goal might mean to the company in terms of sales revenue. Take a percentage and put it towards bonuses for the other staff members directly involved. With skin in the game, these employees will work harder than ever to assist the rep in reaching their goal.
Don't wait until year-end to celebrate achievement of an objective. Provide prizes to acknowledge milestones along the way. If the sales rep convinces three prospects to carry both Product A and Product B in Q1 instead of two, take the rep and others who assisted out for lunch. When a rep meets with one new decision maker every month for six months in a row, they leave early on Friday to get a head start on spending a gift certificate at the local mall.
Keep everyone interested and motivated to achieve the objective through out the entire year.
Win / Win
Reps understand that as part of the job, managers set targeted goals. They probably won't agree with or be enthusiastic about every single one. But supporting them in a sales initiative of their choosing pays an unexpected dividend. When a rep sees you working hard to help them achieve an objective they set for themselves, they'll be more motivated to achieve the goals you set as well.
Book of the Month
Since writing my book, I've met several other Entrepreneur Press authors. In the coming months I'll be introducing their books to my newsletter readers.
As managers and business leaders, we know we should be creating a positive work environnment. In the hectic rush to meet deadlines and service customers, we often lose site of that goal. Dr Joey Faucette, author of Work Positive in a Negative World, provides business owners, leaders, and middle managers with actionable advice on creating a work positive environment. "Show up within your business," he advises.
Read Dr. Joey's excellent book and begin to reflect a positive attitude throughout your organization -- no matter how large or small.