4

The Appraisal
Process

Efficient appraisal by the field sales manager consists of the following:

1.Regular evaluation of the progress made by each of your sales reps toward agreed-upon objectives

2.Regular evaluation of your own progress toward such objectives

3.Recognition of what must be done, an understanding of how to do it, and the allocation of time for that purpose

Review! Review! Review!
“How Are We Doing?”

To place appraisal in proper perspective, so that you fully recognize its importance in the management job, it should be recalled that appraisal is the third step in the cycle of management. After you have been coaching your sales reps, supervising their work, instructing them, and showing them how to do the job better, you pause and take a long look to determine whether progress is being made. Although appraisal is a continuous process, periodically it is formalized by preparing a written summary of all that has happened and then deciding on a course of action. This is followed by coaching—a discussion of the appraisal with the sales rep. Actually, any discussion of a sales rep’s performance you have with him or her is a form of coaching. It may just be a pat on the back, an offhand compliment, or perhaps an effort to correct a weakness. Coaching will be effective provided that the sales rep recognizes and accepts it as a means of help.

Appraisal cannot take place in a vacuum. It is a form of measurement. When the linesman in a football game measures distance to determine whether a team has a first down, he is appraising that team’s ability to move the ball forward by ten yards. The ten-yard standard is set by the rules of the game and is the measure against which a valid appraisal may be made. Similarly, a valid appraisal of a sales rep’s performance must be made against some agreed-upon measure. Three significant criteria for the appraisal of a sales rep are:

1.The description of the sales rep’s job. The rep agreed to this description in accepting the job. (If you do not have such a description of the job for your reps, you need not await action by your boss but can prepare one yourself or, better yet, ask your sales reps to write down their understanding of the job.)

2.What, specifically, is expected of the sales rep? In other words, What are the standards of performance? This list includes figures such as the expected dollar volume or the number of units sold in a given period, the number of new accounts opened, the maximum amount of money allowed for expenses, and any other specific and/or measurable requirements of the job.

3.The objectives for the rep’s development and growth. These are the goals that you and the sales rep agreed upon at the planning session previously discussed in Chapter 2 (“Planning: The First Step”).

Sales reps who are aware of these measures are anxious to learn how they are doing. They want the manager’s appraisal of their performance. Skillful appraisal and coaching can definitely improve a sales rep’s attitude and sales. They can keep him or her on the right track and speed up that individual’s progress. There is nothing new about appraisal and coaching. What is often disturbing is the emphasis placed on appraisal forms. Forms exist merely to ensure that the system is working, and working efficiently; they are the least important part of the process. Only the results, and the ability to communicate those results to supervisors, are of importance—and nothing else.

The Informal Appraisal

As manager you are constantly appraising each of your sales reps. You must decide whether to discharge the marginal sales rep and how much time you can properly spend with a new salesperson as against an older one. Your company is anxious to have your appraisal of how adequately the territory is being covered, how effectively the accounts are being served, and to what extent its objectives are being achieved. At the other end of the scale, the sales reps wonder what you, the boss, think of their performance. In making your appraisals, you continually use sales figures and other statistical data. They are specific and hit the bull’s-eye so far as they go. You must, however, have other criteria which, though intangible, are equally important.

Let’s list some of these other measures for appraisal.

1.Sales reps must be willing to learn. They must be anxious to improve themselves and receptive to instruction. When they lack this quality, you are wasting your time because such sales reps are incapable of growth and development.

2.Sales reps should be happy in their job. They should be enthusiastic, excited, and interested in each day’s operations, well motivated, and able to keep their long-range objectives clearly in view.

3.Sales reps should possess and use the ability to plan. They should employ their time effectively; schedule the work for each day, week, and month; plan each interview carefully. They should think in terms of “next steps” in connection with each account.

4.Sales reps should be able to conduct an effective sales interview. They should know how to carry through effectively any part of a sales interview, including the interview with a receptionist. They should also be familiar with the use of the telephone where necessary, the art of giving demonstrations, the methods of closing orders, and the servicing of accounts.

Among the more important matters to be appraised in determining whether a sales rep is really moving ahead are the following:

1.Presence of strong motivation and a sound attitude toward the job and the future

2.A record of steadily increasing sales volume and steadily increasing earnings

3.Definite improvement in those areas in which the manager has felt coaching was required

4.Definite progress in the development of an increasing number of accounts with good potential

5.The continual development of new accounts

6.Willingness to assume responsibility, to handle tough situations in the territory without supervision, and to try new methods and ideas suggested by the boss

7.Ability to manage his or her personal life successfully

Managers appraise and coach sales reps each time they are in the field with them. Only thirty minutes may be involved, but the meeting does bring the sales rep and the manager closer together. When skillfully conducted, it presents the manager to the sales rep as a helper. Statistical material is reviewed, and the intangible qualities that make for success are discussed. The manager and the sales rep reach mutual agreement as to what must be done to achieve maximum results. The conclusions reached in such a discussion are sometimes reduced to writing by the manager, and a copy is sent both to the sales rep and to the manager’s supervisor.

For the accurate appraisal of a sales rep, there is no substitute for direct field observation. In fact, a manager who sees his people in the field only once or twice a year cannot in good conscience appraise their performance. Every field contact, every review with a salesperson should conclude with some specific agreed-upon action to be taken before the next field contact. The key word is action. It is this insistence upon action following a field contact or review or informal appraisal that gives continuity to the entire supervisory and development process going on between the field sales manager and the sales rep. It also provides the most reliable appraisal tool.

When the field sales manager looks over four or five action sheets similar to the one shown in Figure 4-1 there must be some evidence that agreed-upon action was actually taken, that the sales rep was really trying to improve his performance. If there is no evidence, then there is a real question as to whether that salesperson is capable of development.

The keeping of some kind of an action record is an indication that continuity is being provided from one field contact to the next. This is important because without continuity the entire management function is fragmentized and loses its developmental aspect.

Figure 4–1. Example of an action sheet kept by a field sales manager.

The Formal Appraisal

In contrast to informal appraisal, the formal appraisal covers a longer period—six months to a year—and requires the use of specially prepared forms. The latter can be quite formidable—to the point where they often confuse the field sales manager, who is more accustomed to selling and field work than to the intricacies of complex paperwork. Unfortunately, headquarters sometimes becomes so intent upon forms and their use that the real purpose of the appraisal is all but forgotten. The field sales manager must realize that the only value of a form lies in the information entered on it. If that information is put down carelessly or inaccurately, then the entire appraisal is worthless; and all the time spent in preparing, discussing, and analyzing it is not only wasted but may result in injury to the company and the sales rep. The manager should not be afraid of forms but should learn how best to work with them because of the part they play in the necessary periodic appraisal of each salesperson.

Because there are many different kinds of appraisals, I will attempt to deal only with the fundamental principles that the field sales manager must understand in order to be effective as an appraiser. It is not usually the manager’s function to determine the form of appraisal. The printed forms and procedures are usually developed at headquarters, and the field sales manager is responsible only for carrying them out. Figure 4-2 represents a sales call appraisal form used by the 3M Corporation. Each company normally has confidence in the particular method of appraisal it employs. In some companies the sales reps perform self-appraisals, and their manager then prepares an independent appraisal. In others, the field sales manager appraises his salespeople and then discusses the appraisal with each sales rep. In still others, one or more persons confer with the field sales manager in preparing the appraisal. Regardless of the method employed, the field sales manager is the key person in the appraisal process; hence it is most important for the manager to be properly prepared for it.

Preparation for the formal appraisal is a continuing task. I suggest that you have a folder for each sales rep and that throughout the year you file in it all specific evidence that will substantiate your appraisal of a sales rep’s performance. Such evidence is accumulated from correspondence, from telephone conversations, and from observations and experiences in the field with each sales rep. Without such tangible evidence the appraisal may possibly do more harm than good because, in the absence of proof, your sales reps may not accept what appears to them to be unjust criticism of some phase of their performance. Some companies require that a field sales manager back up every statement made with at least one specific example taken from actual experience with the sales rep. For example, the manager might say:

Joe, you remember that when we called at Smith Brothers in Topeka, they were displeased with your handling of their complaint. We found the same problem when we called on Jones Manufacturing Company and the Adams Company of Wichita.

Preparation also involves recognition of the fact that you cannot and must not appraise a salesperson you do not know reasonably well. People who are new in the organization or whom you have rarely seen cannot be accurately appraised. As sales manager you should therefore plan and carry through enough field contacts with your sales reps that you will know them well enough to appraise them accurately.

Preparation for appraisal, finally, involves a true conception of the purpose of the appraisal. There are two major elements subject to appraisal—performance and personal qualifications. Performance should be appraised first. The sales rep’s personal qualifications should be appraised only when they affect performance.

Among the questions frequently asked in the appraisal of sales performance are the following:

Does the salesperson’s performance result in a steadily upward trend in sales made and in their profitability?

Does the rep’s performance reflect steady improvement and strengthening of customer relations?

Does the sales rep show a willingness and ability to handle problems?

Has the rep been successful in developing new accounts?

Does the rep’s performance establish an ability to apply instructions and training? Has he or she made progress in achieving the objectives set earlier in the year?

To what extent does the rep’s performance manifest a basic integrity?

How is the sales rep’s performance affected by drive, motivation, and the pace of operations. (Does he or she lead or follow the manager?)

Does the rep’s performance benefit from an orderliness in handling office work and in maintaining personal possessions like home and car?

How efficiently does the rep use time as indicated by the way in which he or she covers the territory and handles special problems that could be disruptive of routine?

How is the rep’s performance affected by such personal characteristics as appearance, speech, and intelligence?

Does the rep obtain better results because of a familiarity with the job—that is, because of having superior knowledge of products, promotional or advertising programs, pricing, and policies?

Figure 4–2. Sales call appraisal form used by the 3M Corporation.

Reprinted with permission from the 3M Corporation, St. Paul, Minnesota.

When an appraisal program fails to achieve its objective, it is usually because the manager:

1.Appraises people he hardly knows.

2.Is in such a hurry that carelessness results.

3.Unconsciously exhibits bias in favor of or against a sales rep.

4.Employs incorrect standards of evaluation.

5.Gives undue weight to recent events.

6.Wants all his people to “look good’ when the boss reviews the appraisals.

7.Uses flattering appraisals to win the favor of his reps.

8.Is afraid to give an adverse appraisal because he would have to discuss it with the salesperson in question.

9.Uses the appraisal to justify some other action he wishes to take, such as giving or refusing a raise in salary.

Here are a few suggestions as to how you can do a better job as field sales manager in helping your sales reps through sound appraisals. When appraisal time rolls around, you should devote your full time to the subject and not allow yourself to be rushed or distracted from the task. After becoming familiar with the forms and the instructions for their use, you should review the sales rep’s job description with particular attention to specific standards of performance—for example, dollar or unit volume of sales, number of new accounts, sales by product line, number of calls, and so on. You should also study the objectives that were mutually agreed upon during the planning session, as well as any material you plan to use as documentation in the appraisal. Such review is important to ensure that the sales rep’s performance is judged against the goals that were established for him or her. This job must be done thoroughly and thoughtfully not only because of the effect the appraisal will have on the sales rep’s future but also because its accuracy or inaccuracy will be a reflection of your judgment as sales manager. The sales rep’s performance in the period immediately preceding the appraisal is what counts; past judgments should not enter into the current appraisal. Finally, you should keep in mind that this is an evaluation of performance, not of personality—except to the extent that it affects performance—and that the main purpose of the appraisal is to help the sales rep improve on performance.

The Coaching Session

After you have made the appraisal, you then review it with the sales rep in a coaching session. You sit down and help the rep answer three very important questions: How am I doing? What do I do next? How can I do it better?

Let’s take a look at coaching in its broadest sense. Essentially, it is a discussion of job performance between a sales manager and a sales rep that is a direct outgrowth of the preceding appraisal. It may involve commendation for a job well done or constructive criticism to correct a weakness that you have uncovered in your appraisal. Its purpose is to acquaint the sales rep with his or her strengths and weaknesses.

Coaching can occur in a variety of settings. For example, it may be a curbstone conference following a call on which you have accompanied the sales rep. Here you usually begin with a compliment. Although at times there is little to be complimentary about, you realize that the salesperson is under tension while working with you. Aware of being under observation and knowing that a comment on the performance is coming, the rep anticipates some criticism even before the interview begins. A bit of encouragement is in order, therefore, if the coaching is to be effective.

Some questioning about the interview just concluded will get the session moving. You may ask:

What did you accomplish in the interview? What weaknesses do you think it showed? Given a second chance, what would you do to improve the interview? Did you notice this point I observed? Did you detect that reaction? What do you think of this idea for overcoming the objection that was raised?

Thus the sales rep is drawn into a discussion. You do not appear to be looking for faults; you are helping the sales rep to think through the problems. The results of this curbstone coaching session, including the agreement reached as to the next steps to be taken for the improvement of the sales rep’s performance, will be noted later as part of your summary of the day’s work.

Coaching may be initiated by the sales rep, triggered perhaps by some dissatisfaction or personal problem that is affecting his performance. This usually takes place in the field. Where possible, you should try to develop such a relationship with your people that they will advise you in advance of their desire for a session and of the subject to be discussed so that you can be prepared. Coaching may also be initiated by the manager. You may ask the sales rep to come to your office or to meet you in your hotel room or the hotel coffee shop. The purpose may be to advise on a special assignment or to correct some particular error of the sales rep.

Whenever the manager conducts an informal appraisal with a sales rep in the field, he follows it with a coaching session. This ties together the various points of the appraisal and gives direction to the entire effort. It brings the manager and the sales rep closer together and gives the salesperson a better understanding of what the manager is trying to do for him. In the case of the formal appraisal, it is imperative that it be followed by a coaching session. Any manager who has the responsibility for appraising a subordinate has a corollary responsibility to discuss that person’s performance with him.

Among the definite benefits to be derived from a coaching session are the following:

The sales rep learns exactly how she is doing; her strengths and weaknesses are emphasized.

Plans for improvement of the sales rep’s performance are produced.

A strong personal relationship develops between the manager and the sales rep; consequently, the rep is willing to talk about his job performance and how it can be improved.

The tensions and anxieties that exist when a sales rep does not know what his boss thinks of his performance, and hence in unable to plan with him for his growth and development, are reduced or eliminated.

Despite these advantages, the manager is often reluctant to have a coaching session with a sales rep. He finds it difficult to discuss performance with a salesperson face to face. Such a manager fails to understand the absolute necessity for coaching. The appraisal process has been compared to the diagnosis made by a doctor. It neither cures nor harms the patient; it merely tells the sick person what is wrong. This is always followed by a discussion with the patient and agreement upon a course of treatment. Similarly the manager, after telling the sales rep what he finds wrong with his or her performance, prescribes a remedy with the sales rep’s approval.

Listed below are twelve suggestions for improving the coaching interview:

1. Agree on a time when both parties will be free from pressure. As manager you should allot a full day to the interview so that you are not watching the clock with an eye to some other appointment.

2. Select a place where there will be no interruptions—no telephone calls, mail deliveries, urgent messages, requests for “just a minute of your time.” A hotel room may be best.

3. Give the salespeople you are planning to see advance knowledge of the purpose of the interview. They should know who made the appraisal and how the results were arrived at. They should be given an opportunity to outline what they hope to learn from the appraisal and coaching.

4. Because the purpose of the interview is to review and discuss the sales rep’s performance and to help improve it, discuss performance first, mentioning personal qualities only when they affect that performance. Concentrate your efforts on discovering opportunities for improvement rather than on baring weaknesses. The best way to begin is by discussing the sales rep’s results during the period covered by the appraisal and the methods used to produce those results. Then praise the rep’s strengths, point out weaknesses, and jointly resolve, before the day is over, to outline a program aimed at the rep’s growth and development.

At the beginning it is wise to stay with figures, statistical data about which there can be little disagreement. Otherwise questions may be raised to which there is no immediate answer. For instance, you might say:

John, I note that your sales of product line B amount to only 2 percent of your total sales, whereas for the organization as a whole the figure is 10 percent. Do you know of any good reason for this? Perhaps there is no potential for that product in your territory, or you may have some questions about the quality of that product line.

Remember, you are a manager, not a psychologist or a psychoanalyst and that you tread on very dangerous ground when you try to probe someone’s personality. This is one of the most serious mistakes made in coaching. Most of us do not possess the requisite professional skills, and we must never forget it. Job performance is the manager’s province, and this is where you should concentrate your efforts.

5. Be positive in your approach to the coaching interview. Emphasize the strong points of the sales rep and support these by figures and examples. Make the sales rep feel that he is moving in the right direction, that he has been doing pretty well but is capable of doing even better.

6. As each subject is discussed, try hard to reach agreement with the rep on a course of action to improve the situation. It is not enough for you merely to inform a rep that certain phases of his work need improvement. In this connection you must strive to avoid any argument or dispute with the sales rep that might result in hostility or resentment. The counseling interview should isolate the areas of agreement and include agreement on appropriate recommendations. Concerning points of disagreement, it is better to take no corrective action unless the matter is extremely vital—that is, unless it affects the salesperson’s tenure or ultimate success with the company. Normally, there will be enough areas of agreement to provide the basis for a sound program for the development of the sales rep in the period ahead.

7. Wherever possible, be prepared to cite specific examples to substantiate your conclusions. Try collecting such evidence throughout the year, so that you are well supplied with sound proof by the time of the coaching interview.

8. If the sales rep convinces you that changes in the appraisal are in order, make them without delay. A manager must be willing to listen to his salespeople and consider their point of view. The sales rep must be made to feel that you are entirely fair and objective in your judgments as manager. However, the sales rep must be able to prove his case conclusively.

9. By means of the coaching interview, encourage your sales reps to think for themselves, to analyze their problems, and to develop sound solutions. This strengthens them, builds their self-confidence, and helps them to assume the necessary responsibility for the management of their territory. Managers are too often guilty of excessive paternalism; they give too much advice and do the salespeople’s thinking for them.

10. Make sure that the counseling interview always leads to a “next step” to be taken. To achieve this end, it is important for both you and the sales rep to write down the principal areas in which the sales rep is going to try to improve and develop. There should be agreement also on the specific steps that are to be taken to achieve the objective in each area—for example, how the rep is going to improve sales of product line B.

11. Summarize the results of the coaching interview at its conclusion. The sales rep should leave the interview encouraged and optimistic. Avoid making either promises or threats, but show your moral support of the rep’s determination to take responsibility and to depend on himself for success. Convince the sales rep that it is your desire to help him in every possible way to achieve his objectives.

12. Make the agreed-upon objectives for the sales rep’s development your objectives as well. Incorporate them into your program for action with that salesperson. Each field contact must be planned around these areas of the sales rep’s development, and the success of each field contact can be measured in terms of the degree to which it moves the sales rep closer to these objectives.

The Sales Rep’s Personal Life

To what extent should the field sales manager become involved in the personal life of the sales rep? Ordinarily, as I have pointed out, it should not concern you unless it affects the sales rep’s performance or reflects unfavorably on the image of the company. In such a case a personal matter becomes a company matter as well, and you must deal with it promptly. Some excellent salespeople are careless about their appearance, but if this does not affect their performance, it need not concern you. In fact, you can nullify your efforts and lose rapport with your salespeople by trying to correct personal weaknesses when you should be concentrating upon the important, agreed-upon objectives for their development.

In general, management encourages field sales managers to involve the salesperson’s spouse in the development program. For maximum achievement the sales rep must come home to a place where there is affection, encouragement, comfort, and relaxation. Sales reps do better when their families believe in them and are sold on the company and its policies. As manager you should know how the sales rep’s spouse and family feel. One way to find this out is by inviting the sales rep and his or her spouse to dinner or, better yet, by getting yourself invited to their home for dinner. In an easy, informal setting you can direct the conversation to the spouse’s goals and objectives and begin to understand how this person feels about being married to a sales rep. You can ask such questions as these:

When you and your husband decided to accept this job as against other openings, you had certain reasons for making that decision. Now that you have been with the company awhile, do you feel that actual experience has borne out your original expectations?

You should discuss the couple’s interests and their problems with them, yet avoid getting into the realm of personal problems unless one or the other of the two brings them up. You should listen carefully to what is said and reply pleasantly but honestly to any questions that indicate misgivings about the job and the sales rep’s future. Of course, you should never discuss the company or its management personnel disparagingly, nor should you talk about other sales reps and their records.

The skillful manager will develop this close relationship with the sales rep and his or her spouse without ever permitting it to cloud recognition of the fact that he is the manager. The ideal relationship is one that is friendly but not intimate.

When a personal problem does affect the sales rep’s performance or the company’s image, then as manager you must act swiftly and effectively to deal with it and correct it. This calls for a prompt confrontation between you and the sales rep. The salesperson must be made to understand that no company can retain even a top-notch sales rep whose personal conduct is injurious to its business or reputation.

Coaching by Telephone or by Mail

Effective coaching can be done by telephone and even by mail. It is important, however, to determine the circumstances best suited to each medium.

Certainly a telephone call is ordinarily more effective than a letter, just as a personal interview is preferable to a telephone interview. There are certain matters than a good manager would discuss with a sales rep only in person and others that he might discuss in person or on the telephone, but never by letter. In each instance the manager must make the decision, and it can be important, particularly when it concerns the sales rep’s willingness to follow the supervisor’s suggestions.

Here’s an example. You receive a memo from headquarters saying that sales rep Simpson uses the long-distance telephone excessively in calling the factory and that as manager you should correct this situation. Salesman Simpson lives some 200 miles from your office. Should you write Simpson, phone him, or talk to him personally when you next see him? The answer is a test of your empathy with and understanding of the sales rep. First of all, is improvement in use of the long-distance telephone one of the major, agreed-upon objectives that you and salesman Simpson are working together to achieve? If not, then this matter should not be treated as a major objective; it should not receive the same priority. Excessive telephoning is not a matter for which Simpson is likely to be discharged—he’s too good a producer. What, then, is the best way to handle this matter?

Consider this possibility before sending him a letter or a memo. On the day the letter arrives, Simpson left home very early in the morning to resolve a sticky problem at an account some miles away. He then proceeded with other calls that unfortunately did not produce the results he had anticipated. He finally arrives home for dinner, hot, sweaty, dirty, worn out after a hard day, a little down in the mouth because of disappointments. At this moment there is nothing Simpson needs more than an arm on his shoulder and a pat on the back. Instead, he gets a letter telling him to cut down on long-distance telephone calls. Does this make him feel that you are really his helper, that you are trying to build him up and develop him? Or does he regard you as just another boss who doesn’t see the good things a guy does but harps on every little thing that goes wrong?

It is doubtful whether a letter is the best way to coach a sales rep on relatively less important matters. The telephone is somewhat better in that the inflections of the human voice reveal more of the manager’s feeling than does a sheet of paper with words on it. Yet even the phone may not fully convey your feeling that the subject is not terribly important. It probably will be best if you simply put a memo in his folder as a reminder to mention the matter to Simpson some afternoon during the next field contact when you are having a beer or a drink before dinner. Simpson can look you in the eye, listen to your voice, and get a sense of how you feel about long-distance calls—that is, although they are not of tremendous importance, it is desirable to control them.

The telephone may be used effectively in coaching a new sales rep by having her phone the manager daily during her first couple of weeks on the job to review what she has done, what problems she has run into, and what successes she has achieved. Of course, the manager will laud her for her successes, however small they may be. The telephone is also of value in following through with a senior salesperson with respect to some major objective. Let’s assume the objective is to increase the sales of product line B and that this is also a broad company objective. The manager may phone the sales rep and ask her about her progress with this product line, what accounts have been interested in it, what obstacles are being encountered, and which new sales techniques are proving effective. In short, the manager asks a wide variety of questions to determine whether the sales rep is really making a proper effort to sell product line B and to show the sales rep that the boss considers this product line to be extremely important.

In summary, in situations where the telephone or a letter could be used for coaching, managers should consider very carefully whether to use either as well as how to use the medium selected for maximum effectiveness in developing their salespeople.

The Field Sales Manager’s Supervisor

What is the field sales manager’s role in the appraisal of sales reps for his boss? There are many ways in which appraisals are conducted, and I shall not attempt to describe each or decide which is best.

It is generally accepted that there is an advantage to involving at least one other person besides the manager in the appraisal before the coaching interview takes place. In many companies the field sales manager makes his appraisal of the sales rep and then discusses it with his boss. The advantage of this system is that the manager is required to thoroughly consider his appraisal of the sales rep’s job performance and his opinion of the rep as a person. His boss will question him deeply on each item and probably raise some questions as to his judgment. Certainly he will receive guidance and help. In addition, this conference should result in agreement between the manager and his boss on the appraisal as it will be discussed with the sales rep. The sales rep, knowing of the joint work that went into the appraisal, is more likely to accept it. Since the manager’s boss was involved in making the appraisal, he or she should be advised of the outcome of the coaching interview and should receive a copy of the agreed-upon objectives that will form the basis for the work the manager will do with the sales rep during the period ahead.

Motivation Techniques

Motivating your salespeople is one of your most important responsibilities as field sales manager. To be sure, the word motivation can be frightening, particularly to a newly appointed field sales manager. It simply means that you must inspire your people to want to do better—to want to grow and develop. Sales reps must realize that the manager and the company want them to grow and develop and will do everything possible to help. This is a pretty big order, especially when you consider how widely individuals differ in personality.

Sales reps use great skill in dealing with the various purchasing people they call on, and their success depends upon their ability to understand them, their needs, and their problems. But this responsibility of the sales rep is not nearly as exacting as your obligation to understand your salespeople, their problems, and their needs. I have already pointed out that the success of the manager and the sales rep depends upon their ability to work together as a team. But how can the sales rep cooperate in this effort if he or she is unhappy with the job, dislikes the manager, or feels that the company is being exploitive? The responsibility for motivating the sales rep rests squarely on the shoulders of the manager. The success of the manager, the sales rep, and the company will depend on how well this responsibility is met.

The new district or field sales manager can perform no task of greater value than to go into the field at once and get acquainted with every one of his salespeople and perhaps with their spouses too. Most people in top management agree that the first job of the newly appointed field sales manager is to make sure that each of his sales reps feels that the company’s interests, the manager’s interests, and the sales rep’s interests are the same. Sales reps must be made to understand that their achievements are necessary to the manager’s success, and that it is in the manager’s personal interest to help the salespeople in every way possible.

Where motivation is concerned, you must concentrate on the individual and for the moment forget about sales, quotas, policies, and performance. For instance, should you learn that a sales rep feels the need for recognition within her community, you may be able to motivate her by having an article about some accomplishment of hers published in a local paper. Or you may motivate a rep by showing him how to plan his work better so that he is relieved of the tension and pressure that have been making him irritable at home and inefficient in the field. You may be able to help a sales rep improve his chances of promotion. You may, by some special recognition at a sales meeting, help build his morale. In short, by talking informally with your salespeople and their families, it is possible for you to learn how to help your sales reps find real satisfaction, happiness, and a sense of achievement in the job as well as merely a way of earning money. While earnings must, of course, be adequate, they are rarely the primary motivational factor in a sales rep’s success.

I must emphasize that the job of motivating sales reps is best done in the field and not from an office. It is a personal operation and cannot be handled by forms, contests, letters, or phone calls. As field sales manager you must realize that each of your sales reps watches you carefully and observes everything about you—your manners, habits, language, dress, attitudes, and so on. To exert any influence over your salespeople, you must have their respect. To earn this, you must:

Have character. It’s important that your sales reps and their spouses admire your character and the standards by which you live.

Be capable of doing hard physical and mental work without complaint.

Be completely frank and open under all circumstances.

Be the champion of your company when you are with your people. At the same time, be their champion. Remember, always deal promptly with their complaints when you are at headquarters.

Be willing to take the risks involved in letting the sales rep control the interview when the two of you call on a customer together.

Build up your sales reps before customers at every opportunity.

Help your sales reps overcome obstacles.

Be calm, confident, smiling, and composed when in the presence of a sales rep.

Set the pace when with a sales rep.

Be fair, yet firm, in your dealings with your sales force.

How do you know whether you are motivating your salespeople? Count yourself successful when:

The sales rep says we, not you, I, or they (the company) when discussing a business matter.

The sales rep has reached a genuine agreement with you on common goals or objectives and works with you toward their achievement.

The sales rep brings his problems to you for help without fear of criticism.

The sales rep knows that you will listen patiently to what she has to say.

The sales rep feels free to communicate with you in person, by phone, or by mail.

The sales rep feels completely at ease when making a call in your presence.

To elaborate a bit on this important subject, it may be said that motivation is achieved when, first, you manifest to the sales rep your complete confidence in him. You do not check closely on all his activities. You are not a policeman or a social worker but a sales manager, and it is not your function to police your sales rep to make sure that he is working or that he is not drinking too much or beating his wife. If the rep needs a policeman or a social worker, then perhaps the company needs another salesperson. Your job as manager is to work with sales reps who want to do well, accelerate their progress, and guide them toward success.

Second, motivation is achieved when you give the sales rep real responsibility. It is risky to delegate an important responsibility to a salesperson. If a sales rep is given the responsibility of holding a dissatisfied account or closing a big order and fails, then you as manager will have to take the blame. Yet it is a risk that must be taken if you hope to develop that rep.

Third, the sales rep is motivated when he achieves success in some area and receives your congratulations. Having overcome his fear of failure and having enjoyed the sweet taste of success, he is interested in going after more of it.

Fourth, the sales rep is motivated when he receives recognition in his job and in his private life; when he is given an important assignment at a sales meeting and gains the recognition of his peers; when some fine order he has obtained is published in the company house organ; when he knows that he is regarded by his family, his friends, and his customers as a top sales rep.

Fifth, motivation exists when the sales rep feels that he is on the team. Frequently ask his opinion and value his views on various business problems. Finally, full motivation is achieved when you and the sales rep have agreed-upon objectives. The sales rep knows what you are trying to do to help him and also knows exactly what is expected of him.

What I have been saying is that the motivation of a sales rep rests largely on the skill and ability of the field sales manager. Did you ever notice that the people most eager to play bridge are the better players, that those most highly motivated to play golf are the fine golfers? Similarly, the salespeople who are most highly motivated to sell are those who, with the manager’s help, have become the very best sales reps.

But what about the sales rep who does not respond to your managerial efforts? Before passing judgment, you should critically examine your relationship with the individual to make certain that the fault is not your own. If you conclude that you are not responsible for the sales rep’s failure to respond, it must follow that the sales rep is not capable of development. It is useless to butt your head against a stone wall trying to develop people who either are incapable of development or just don’t want to make the necessary effort. Sales reps can be divided into two classes: those capable and those incapable of development. As field sales manager, you should spend most of your time with those who do show possibilities. You will have scant time for the others.

As manager you may call someone who shows little promise of development into your office occasionally for a short conference so that that rep will feel some identification with the company. Or you may see the rep occasionally for the primary purpose of contacting important accounts in the territory rather than for personal development work. If the rep in question is doing a pretty good sales job without help, you may reach an agreement with him to the effect that, since he doesn’t want to be on the team, he can go his own way so long as he achieves his specific objectives with respect to accounts sold, products sold, sales volume, and profitability. Any failure to meet these objectives will necessitate his replacement. In any event, all reps in this category should be slated for replacement sooner or later. There may be good reasons for not discharging them immediately, but there is no justification for wasting your valuable time and money in trying to perform the impossible with them. Since it is your primary function as manager to develop sales reps, you must spend your time with those who, however imperfect, want to develop and improve.

To ensure the sound growth of the company, to move people up through the organization (assuring high morale), an important objective of every field sales manager should be to produce at least one promotable person per year. There may not be a place for that person immediately, but it does mean that if and when there is an opening, there will be a competent person available to fill it.

Motivation Through Contests

Many companies have found that contests are a strong motivating force within their sales organizations. Where a contest is ordered by headquarters, field sales managers merely carry out the instructions given them and supervise its conduct within the assigned area. If as field sales manager you yourself initiate the contest, you must consider a number of factors.

First, a contest is no substitute for a good sales management effort. Second, a contest has drawbacks as well as benefits. It may interfere with good planning and proper territorial coverage by encouraging sales reps to chase around their territories trying to sell a particular product or a certain class of trade for which the contest offers a special reward. This will result in a serious falling off of business after the contest is concluded, and it will require special efforts to get sales reps “back on the beam” in terms of sound planning and territorial management. Further, it may cause reps to overlook important opportunities for business while pursuing the objectives of the contest. The value of the contest may ultimately prove insignificant in comparison with the losses due to disruptions in normal planning and coverage.

Third, the rewards offered in a contest must be substantial and significant. A sales organization with high earnings levels normally will not respond to a contest in which the rewards are small relative to earnings. Very few field managers can offer prizes and bonuses sufficient to interest people who are earning over 50,000 annually. Fourth, contests should not be overly long. They should not disrupt good working habits and methods. They should tie in with the major objectives of the sales reps and the district or region. They must be carefully and thoroughly planned and executed, preferably by someone with considerable experience.

Discharging Salespeople

One of the field sales manager’s most difficult and distasteful jobs is that of firing sales reps who are not pulling their weight. In some cases the manager has a relationship with the salespeople which makes it extremely difficult to tell them that they are “through.” Then again, the manager may feel that the salesperson’s failure will be interpreted by headquarters as a managerial failure. Or it may be a case of borderline performance; the manager is reluctant to give up on the individual. Huge sums are lost every year in most sales organizations because some reps are kept on their jobs much longer than they should be.

As manager you must recognize that you are often in the position of a gambler sitting at a poker table. Your ante (recruitment and employment costs) is in the pot before you see any cards. With each card dealt you bet more money and gradually see what kind of a hand you are getting (what kind of a person you have employed). There comes a time when you must decide whether the hand is worth holding or whether you had better turn the hand down and take your loss before it becomes greater.

All too often you may be tempted to justify the retention of a rep in terms of some isolated instance, such as one good order the sales rep secured, even though all the factors relating to the rep’s general performance are unfavorable. This kind of sales rep is very much like the “dub” golfer who is about ready to throw his clubs away when he gets a beautiful drive right down the center of the fairway. He really is no better a golfer than he was before—it was just a lucky shot. The same thing is true of the “dub” sales rep who also can get a lucky break. As manager you must have sound criteria for determining when a sales rep is no longer a good investment in time and money. One excellent yardstick is the degree of effort put in by the rep and his or her actual success in attaining objectives. This sound measurement takes much of the guesswork out of the question of when to retain sales personnel and when to let them go. There must be some evidence of progress, however small. When there is no apparent effort or progress, you know that the rep is no longer a good investment.

This measurement is best used during field contacts when you are observing the sales rep in action. For instance, assume that one agreed-upon objective is that the rep increase sales of product line B, the company’s most profitable line. The company obtains 25 percent of its volume from this line, but the rep has been obtaining only 5 percent of her sales from it. You have taught her sales techniques and worked with her in the field, and she has promised to put these newly learned methods into practice. If, on subsequent contacts, you note that the rep has been trying and that product line B now constitutes 10 percent of her sales, there is reason to keep on working with her. On the other hand, if subsequent contacts show that she has done nothing to improve her sales of this important product line, it is likely that she is also disregarding the other development work that was done with her. If, in addition, her sales volume is unsatisfactory, it is probably wise to discharge her.

There is also a psychological angle to a sales rep’s inadequate performance. The sales rep knows she is doing poorly and is probably very unhappy about it. This unhappiness manifests itself in her work as well as in her home life. This woman, who probably has talents that would be useful in another type of work, is employed at a job for which she is obviously unfitted and which is making her miserable. It is unfair as well as unwise to keep this individual at a job where she is a misfit. Rather, she should be encouraged to seek a type of employment at which she can hope to succeed. With this in mind, you can approach the sales rep and discuss her separation from the company in the knowledge that you are actually helping her.

In the case of a newly employed sales rep, you must observe his grasp of the job and his progress very closely. Many companies consider a newly employed salesperson on trial during his first two or even three years. As one executive put it: “The new salesman is like a runner in a hurdle race. He must successively jump one hurdle after another during his two-year probationary period [the first hurdle is the interview when he applied for the job]. If he kicks over a hurdle, he is out of the race.”

Dealing With the Veteran Sales Rep

While not directly involved with the subject of separation, there should be some discussion of a problem faced by most field sales managers: what to do about older sales reps who are unable to carry their share of the load any longer. In some cases top management protects these senior reps, and the field sales manager has no authority to alter their status with the company. Yet the field sales manager is given a quota of business to secure, and must have the full sales potential of the older rep’s territory in order to make good at his own job.

Occasionally, top sales management dictates the procedure to be followed, and nothing is left to the discretion of the field sales manager. But for those field managers who do have some say in such matters the problem is essentially one of fairness both to the veteran sales rep and to the company. On the one hand, the manager is morally obligated to protect the older sales rep in recognition of his contribution to the company over many years. On the other, the manager must consider the interests of the company and its stockholders and safeguard the business in the territory.

There are a number of possible solutions to this problem. Each situation must be judged on its own merits. In all cases, though, a personal interview with the sales rep in question should precede any action. Among the solutions that have worked out well in practice are the following:

1.The older sales rep is assigned to the office for staff work, and a younger person takes over his territory.

2.The older sales rep is allowed to keep as many of his key accounts as he can service properly, and the remainder of the territory is turned over to a junior sales rep who will inherit the entire territory when the older salesperson reaches retirement age.

3.The older sales rep accepts a junior salesperson to work under him and assist in the coverage of his territory, as he may direct. The cost of the junior sales rep during the first year is borne by the company, with an increasing percentage of the cost being charged to the veteran sales rep each year until his retirement.

4.The older sales rep is given special sales work at reduced but adequate compensation, and his place is taken by a younger sales rep.

5.The older salesperson is retired early, and this extra cost is absorbed by the company to maintain the sales volume and profit level in the territory affected.