I’ve worked in the past for companies as a salesman and know from first hand experience what it feels like to get your quota raised, not by 10, not by 30, not by 50, but by 70 percent.  Horror is the only word that describes that feeling when you first find out what your bosses have in mind for you.

The first reaction of horror is followed by a nagging cynicism, which is then followed by anger, which can quickly degrade into apathy.  The anger comes first because you weren’t given an opportunity to respond or provide input into what the number should be.  You become apathetic when you realize the number is unrealistic and there’s no way you can make it so why waste the effort.

On the other hand, one has to understand that the company must grow and set aggressive target goals.  And here is where management must step in to bridge the gap between where the company is today financially, where it has to be in the future and what are the plans for getting there.  Here are some bridge strategies that might be used to explain to a sales team when quotas are going to be raised dramatically in order to avoid feelings of anger and apathy.

• New accounts being added to a salesperson’s territory which allow them immediate access to additional revenue streams.

• New sales or distribution centers will be used to move more products.  A good example of this would be new distributors, retail outlets or maybe even online sales.

• Acquisition of a new company to complement the product line thereby generating more revenue from already established products in the market.

• New products are being released for the upcoming year that will allow salespeople to either up-sell their existing client base or enter into new markets.

I’m sure you have other examples of your own and could expand on this list.  The central point here is understanding the need to bridge the gap of believability when your company decides to ratchet up the numbers.

It’s sad that many manager feel that the only justification they need to give to their sales team after assigning astronomical numbers is the one about how, “The market is getting better and it will be better next year, so your numbers should be higher.”   If you’re a manager and you’ve used this line, I can guarantee you that there were many snickers, whispers and rolling of the eye balls going on in the room. 

Telling your team that the market is getting better as a justification for increasing quotas is the lazy way out.  If you are going to use this tactic, be more specific.  Tell you team how spending has gone up X percent in the last two years.  Tell them about how operating expenses and capital expenditures are increasing in their market niche.  Tell them where some of the new opportunities lay.   Tell them how the company is adding resources and training to bolster the salesforce’s ability to penetrate tougher and more lucrative account.

You see where I’m going here.  You have to tell your team how they can make those numbers happen.  If you don’t, you may be disappointed in the long-term results of your team. 

The key question a manager should always be asking him or herself is, ‘Am I doing everything I can to help facilitate a successful sales year?’  As a manager or leader, if you can’t bridge the gap of believability, you will find yourself headed into battle by yourself.  You can do the ‘motivational war cry’ about how you’re going to kick your competitor’s ass.  But don’t be surprised that as you charge ahead into the year, you turn around and find yourself alone.  Your sales soldiers may refuse to join you on the competitive battlefield and you may well find yourself alone in trying to hit your numbers.

Oh sure, your team will smile in your face and tell you how much they’re with you on your long-term strategy.  But after the sales meeting is done, the reality sinks in on your team.  How can they make their new quotas a reality?   Do we really have the products or channels to meet those new numbers?  Doubt begins to take root at this point.  You job as a manager is to answer those questions upfront and assuage any concerns your sales team may have about hitting their number.  Great high tech sales managers find a way to bridge the mental gap of what is possible.  It won't be easy,..but success in selling never is.

Go to Setting Sales Quotas - Part 1: Unintended Consequences

Please forward this article; share it with a friend who may need a few words of inspiration.

 

Victor Antonio is a Sales Trainer and Motivational Speaker with 20 years of industry experience in the market.  He has a BS in Electrical Engineering and an MBA.

Copyright © 2005 by Victor Antonio   All rights reserved.  This article MAY be reproduced in any form or by any means, electronic or mechanical, including photocopying, as long as the author’s name, website and email address are included as part of the article’s body.  All inquiries, including information on electronic licensing, should be directed to Victor Antonio.