When everyone in the same boat is heading towards a different shore it is difficult to get anywhere. In my earlier days as a direct sales rep, the conflicting measurements of success was a perfect representation of this phenomenon. The CEO was determined to increase market share. The Sales Managers were being measured by realized revenue. To make matters a little more confusing, the sales reps incentive was based on monthly invoicing.
Revenue was only realized if clients utilized their purchases. Market share was only kept if clients not only renewed, but more were added to the foundation. Reps did not care about whether the product was used since it had no impact on their invoicing bonus. This led to delayed revenue and poor client renewal ratios.
Gestalt theory would tell us to look at three levels of systems: Systemic (e.g. the CEO), Group (e.g. the Sales Manager) and Individual (e.g. the Sales Rep). Harmonizing goals based on these groupings would greatly increase reaching out mutual destinations. One straight forward method would be to provide all three groups the same goals. For example, the CEO could dictate all parties are being incented on revenue. This approach sounds much simpler than it really is in large organizations. If the CEO decides to pick market share as the shared goal it may be very confusing for the Sales Rep to truly see his/her ability to impact this target.
A more easily applied approach would be to work with a third party to facilitate a discussion on how all three separate goals are interdependent. It is the forest and trees approach. Clearly articulating the goals for each level will allow all parties involved to see how their goal is part of the whole. Revenue cannot be derived if there is no invoicing. Market share will not be impacted if there is a lack of a continuous stream of incremental revenue.
If your team is heading in different directions, reach out to us to discuss how a few easy tactics can have you rowing like an ivy league crew.
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