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November 28, 2008

Sales Management and Motivation By Greg Blysniuk

Solving the "How do I motivate my salespeople?" riddle is the central theme of sales compensation for many in sales management.

The tactics used typically default to a "carrots and sticks" approach, or one that relies on extrinsic motivation. In this classic command-and-control environment, cash is king, sales management's role is to light a fire under their salespeople, and sales compensation provides the levers that are pulled to motivate salespeople and drive the needed behaviours.

However, more and more companies are now re-thinking this approach to motivation. Their reasoning is linked to one or more of the following themes:

Motivation vs. Manipulation - While sales management may speak confidently about their ability to motivate, salespeople may see a different m-word in play: manipulation. Within any command-and-control environment, the use of extrinsic motivators further reinforces the already clear delineation between superior and subordinate. Even though the attempts are not malicious, extrinsics feed an "us vs. them" mentality, and undermine a salesperson's capacity to identify with company goals. At a certain level, these efforts can be perceived as demeaning.

No Root Cause Analysis - When results are trending down, sales managers often reach for extrinsic levers like contests or special incentives. And while behaviour may change (or appear to change) for the duration of the program, no effort is expended to identify and address the root cause of the problems originally encountered. As a result, sales management can be caught in an endless and inefficient cycle of "results are down - let's run a contest - results are down - let's run a contest".

Cash is Not King - Study after study demonstrates that cash is not a primary motivator, even with salespeople. It is very important in terms of recruitment and retention, but can not drive consistent behaviour on a transaction-to-transaction basis. And finally -

They Never Really Worked Anyway - If extrinsic motivators were the answer, sales compensation would be easy. Need to increase sales of "Product B"? Just increase the commission rate and watch the orders roll in! The bottom line is that extrinsic motivators can not deliver results on a sustained, reliable or predictable basis.

The emerging approach to motivation is best captured by re-stating the central theme of sales compensation as: "How do I build a motivated sales force". This represents a significant philosophical shift towards actively harnessing the power of intrinsic motivation, or of an individual employee's internalized commitment to success.

Command-and-control is displaced by coach-and-mentor. Sales management's role is not to light fires under salespeople, rather to provide the tools, training and resources salespeople need to be successful.

From a sales compensation perspective, this approach requires a coherent, well-communicated plan that is aligned with company objectives and provides a competitive base salary. Other must-haves include an attractive overall earning opportunity, thorough documentation, salesperson-friendly administrative and payment processes, and transparent quota-setting practices.

In general terms, sales management's orientation should be towards providing a strong employment value proposition, and on creating the conditions where salespeople have the confidence to fully engage in the process of selling. As the saying goes, "You can lead a horse to water, but..."

Good luck and good selling!
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Greg Blysniuk, founder of TopLine Sales Compensation Solutions, is dedicated to helping clients improve sales performance by harnessing the full potential of their sales compensation plans. With experience dating back to 1991, he offers deep insight into the operational and strategic issues that are integral to effective sales compensation. He can be reached at 877.883.5395 or greg@toplinesalescomp.com.

-What are your thoughts? Do you have anything you would like to share related to motivating a sales team?

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November 19, 2008

Sales - How to Find Your Inner Buried Treasure by Noah St. John

Inside of every sales professional is buried treasure. You have gifts, talents and skills you’ve barely begun to tap. It’s like you’re standing on a gold mine… but the problem is, you’re digging away with a teaspoon.

Many smart, talented salespeople are digging for their hidden treasure with a teaspoon. Yet, if they’d look again, a beautiful new backhoe sits untouched right under their noses.

You can’t get to your inner buried treasure without using the right tool. Ironically, the #1 thing that keeps many salespeople from their own treasure is THEIR OWN HEAD TRASH, which says things like, “I can’t do it… You’ll never make it… I’m not smart enough… You’re not enough.”

If you want to unearth the hidden treasure inside you, try this exercise called “Excavating and Evicting Your Negative Reflection.” Your Negative Reflection is like looking in a funhouse mirror to see what you look like. A funhouse mirror distorts your image and causes your head trash. That’s why the first thing you need to do to get your foot off the brake is to excavate your Negative Reflection – get it out in the open – and then evict it – tell it to take a hike.

Take out a sheet of paper and draw two columns: your Negative Reflection on one side and your Authentic Self on the other. First, write your Negative Reflection. What is your head trash saying to you?

Maybe it’s been telling you, “You can’t do it. I’ll never make it. You’re a phony, and nobody likes you.” (Notice that sometimes your Negative Reflection talks in the first person “I”, and sometimes the second person “you”.) Whatever it’s saying to you, write it down.

Once you’ve done that, get quiet and listen. Listen to Who You Really Are. Now, write a statement from your Authentic Self.

Your Authentic Self is Who You Really Are, not the bully in your head. That Negative Reflection is a bully who’s been living in your head. Your Authentic Self is that still, small voice within that might say, “I am good enough because I bring value into people’s lives, and I enjoy doing that. I CAN succeed at whatever I put the work into, just like everyone else.”

For example, Patricia, one of my Students, wrote:

Negative Reflection
I am not smart enough to be successful. My ADD keeps me from being able to focus, and therefore being able to attain success.

Authentic Self
I am in the top 2% of intelligent people in this world (how many times do I have to be hit in the head to get this?), and if anyone is smart enough to be successful, it’s me. I have proven through previous work that I have the ability to be focused and remain on task for long periods of time.

When you’re done with both columns, answer these questions:

1. Who will I share this information with?
2. When will I share it with them?
3. How will doing that help me gain correct perspective?
4. What are specific examples where the Negative Reflection is WRONG?

You’re going to get rid of your head trash with facts and data. For example, your Negative Reflection might say, “Nobody likes having me around.” But you could realize, “Wait a minute. Plenty of people like me. I just got off the phone with five different people who enjoyed talking to me!” So when that Negative Reflection comes back, obliterate it with the truth.

You simply say to your Negative Reflection, “You’re wrong. That’s a lie.” Combat your head trash with facts and get it out in the open – and that’s when you can start to mine the treasure that’s hidden right inside you.

(c) Copyrighted material courtesy of Harper Collins.
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Noah St. John, Ph.D. is Founder and CEO of www.SuccessClinic.com and author of The Secret Code of Success: 7 Hidden Steps to More Wealth and Happiness (Collins). You can learn more about his book at www.SecretCodeBook.com.

- What are your thoughts on the article you just read? Is there anything you would like to share that might be valuable to your fellow sales professionals?

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