Friday, June 5, 2009

Carrot or Stick? Sales Leaders Should Weigh Tactics Carefully

By Chuck Terry
Executive Vice President & CSO, Carew International, Inc.


At this point, we are all painfully aware of the impact of the current economy. But if misery loves company, we may take comfort in knowing that the challenges we face -- poor sales, lay-offs, cut backs -- weigh on the hearts and minds of people throughout our organization. What is a sales professional going to tell their sales manager in these times when they don’t make plan? What is the sales manager going to tell the sales vice president? What does the sales vice president tell the CEO? What does the CEO tell the Board? What does the Board tell investors?

So here’s the burning question: When sales are in the tank as a result of a worldwide recession, how should sales leaders respond… carrot or stick? Our employees have been stressed, over worked, and forced to rationalize diminished performance -- many for the first times in their careers. As we struggle to overcome hurdles and maximize sales, are we giving proper attention to the psyche and self confidence of our people? How do we keep the sales team motivated and engaged? Even in the most pervasive economic conditions, each situation needs to be addressed individually. But on the whole, I contend that a little empathy is in order.

Tom Peters once wrote that no company wants to hang the motto over their door that says “XYZ Corporation, We’re No Worse Than Anyone Else.” Yet over the past year, many companies were LUCKY to be performing to that standard. While we have all been busy making legitimate rationalizations to those upstream from us, have we forgotten to cut ourselves and those downstream some slack?

We need to make the effort to reach out to those around us that have been operating under EXTREME stress levels for an extended length of time and just say thanks. Thanks for hanging in there through the tough times; thanks for caring so much about the business; thanks for staying loyal; and thanks to your families for the sacrifices they have made. A little appreciation goes a long way.

Signs are out there that the current economic deep freeze is beginning to thaw. And as the economy continues to improve, we will need our entire team to be positive and focused. I saw a t-shirt last weekend that said, “The Beatings Will Continue Until Morale Improves.” It made me laugh; but it also made me think. Let’s all stop the beatings, show some sincere appreciation to those around us, and focus on the opportunity that is just around the next bend.

The sales team is not be alone in our suffering, but we do tend to be the point of direct impact. If we as sales leaders help ease the pain and focus on positive outcomes, our sales professionals will have more energy to do the same.

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