Wednesday, July 29, 2009

Sales Managers - Don't Shoot Yourself in the Foot

I spoke to a couple of colleagues this past week and there seems to be a pattern that has developed because of the drops in revenue, the economy, and tighter competition. Yes, you are right, tweaking or reorganizing the sales force.

Whether you are managing inside or outside sales teams be careful not to disrupt the rhythm a sales team develops over time. It occurs when teams have been together a while, know each others habits, flow of information, and group motivations. When you are trying to preserve and grow revenue you don't want to demotivate your sales teams by massive restructuring. The outcome will be fewer sales over the short term and depending on your team dynamics could provide less revenue over the long haul.

So be careful not to shoot yourself in the foot by doing a restructure or RIF that will demotivate a team that for all intensive purposes has performed in this tough and treacherous economy. I will continue to advocate, as I am sure you will, that you need to get rid of poor performers in an expedient manner and within the laws in your state. Nothing hurts a sales team than a performer that is dragging down your team and killing the drivers of revenue and profits.

Take a tough stand with lots of input from various sources if there is a need to restructure so you make sure your team dynamics are not impacted. What have you done in this area over the past 12 months?

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