The “Perfect Time” For Sales Training

Recently, I read an article on SalesBlogcast.com entitled “Making Time for Business Improvement and Staff Development“. The key points of this are:

• It seems that there’s never a “good time” for a company to invest its resources in business improvement and staff development.
• When business is good, companies feel secure and they don’t want to divert resources from processing as much business as possible.
• When business is down; there are RIFs, along with cuts in travel and training budgets – i.e., the resources companies don’t want to divert when business is good are now reduced.
• In order for a business to remain viable, investing in business improvement is a must, whether or not it seems like a “good time” for it.

This was reminiscent of an article I posted last year entitled “Growing Sales In A Down Economy“. Similar to the SalesBlogcast.com article, I point out that, though it can seem almost instinctive to restrict investment when the economy is down, some resources (e.g., time) are actually more available than they are during an economic boom. So, investing what you can now is wise. In doing so, you’ll be better prepared to maximize the benefits of the economy turning up again.

Recently, I took on the Director of Sales role for a leading developer of e-Learning based business solutions, headquartered in Portland, OR. So, in that capacity, you might expect my position to be that any time is a “good time” for a company to invest in education aimed at business improvement. You’d be right. In addition to my admitted bias, I’m getting a much closer look at the issues illuminated by the aforementioned SalesBlogcast.com article and on a daily basis, I’m seeing them clearly demonstrated in reality. This includes:

• Companies wanting to nurture their workforce to be as competitive as possible.
• Companies wanting to nurture their customer base to stimulate buying and to minimize support costs.
• Much of the above-mentioned “nurturing” requires education and many companies are faced with getting this job done with fewer resources.

The admonition on this from the SalesBlogcast.com article is “Pay me now or pay me later”. I won’t argue with that wisdom. However, I think the example I used in my previous article provides more encouraging positive reinforcement so I’ll repeat that here:

So what is a more effective approach during these tough times for business? I think the best answer to this was summed up in a conversation I had with our mortgage lender, when I ran into her at a recent business meeting in our community. Of course, her industry has probably been hit as hard as any business sector, in the current economy. So, I asked her how business was going. Her response was that she’s in this for the long-term. There are peaks and there are valleys. During the last peak, she did what she knew was necessary to prepare for the next valley. And, now that she’s in that valley, she’s tending to things she didn’t have time for during the last peak and she’s doing this so she can maximize the benefits of the next peak.

So, what are your views on this topic? Whether or not you agree with my perspective, I welcome you sharing your experience.

Sales Pay Plans Written By Non-Sales People

It’s not uncommon for Clients to ask me to review their Sales Pay Plans. Often, this involves making changes and additions to what’s already written, to make it an effective and productive program for everyone involved. Nearly as frequently, though, this requires me to write whole new sections that are just plain missing. Thankfully, it’s a rare occasion for me to come across a section of a pay plan that needs to be excised completely. That did happen recently, however, when I came across a clause in a Client’s pay plan entitled “Windfall Business”. Here’s how that clause read:

“To provide for those unusual occasions when business achievement is realized through little or no effort on the part of a Participant, the Company reserves the right to declare such business a ‘windfall’. Windfall business is subjected to special treatment. Such treatment will be handled at the sole discretion of the Plan Administrator.”

I’m thankful that, when I first read this clause, I wasn’t in the presence of the Client. No doubt, my reaction was visible and it probably wouldn’t have been good for our relationship for them to see that. At first, I wondered what could have motivated such a position. Then, I wondered how my Client could have permitted it to be embedded in their pay plan. Finally, I decided that neither of those considerations should be my immediate concern. I had been introduced to this Client under the auspices that “they need a guy like (me) to turn their Sales around.” So, regardless of the answers to my “what & how” questions, I knew that their “Windfall Business” clause was a counterproductive element for Sales. They needed to understand that clearly and immediately. Here’s how I went about getting that done:

I, simply, shared with them some of my background in helping to develop Sales People. What I told them was: ”I’ve had occasions where, fairly early on in their efforts, new Sales People would have a stroke of good luck and close some significant business more quickly than they expected. In these cases, it wasn’t uncommon for the Sales Person involved to express some guilt, that they hadn’t really earned the sale. My consistent response in these instances was to tell that person that all Sales People get their share of luck … some of its good and some of its bad. You’re going to get your share of bad luck so, when you get some good luck, enjoy it and don’t feel guilty.” That was really all it took. From that, my Client recognized that their “Windfall Business” clause allowed Sales people to keep their bad luck but they didn’t necessarily get to keep their good luck. They agreed to remove the “Windfall Business” clause from their pay plan.

You may be interested to know that, in discussing this matter with my Client, I did learn the answers to my “what & how” questions. The answer to ”What could have motivated such a position?” was that it was a clause developed by an HR Consultant. The answer to “How my Client could have permitted it to be embedded in their pay plan?” was that they’d payed the HR Consultant for their advice and the Client felt they should follow the advice they’d paid for. In both cases, it’s an indication that both the HR Consultant and the Client don’t “get it” when it comes to what I called the “legitimacy to the Sales function in business”, in an earlier article entitled “The Pride and Prejudice of Sales“. And, I have to admit, with something like this; it may require a person who has Sales experience to “get it”. To many, who don’t have Sales experience, it may even seem to have a certain logic to it. And, that’s why I think my Client’s erstwhile “Windfall Business” clause is a great example for my point in this article:

In order to establish a Sales Pay Plan that’s effective and productive for everyone involved, don’t have it written by Non-Sales People!

What’s your experience been with Sales Pay Plans along these lines? Do you have other good examples to share? Do you agree with my perspective on the “Windfall Business” clause? Please let us hear from you, to benefit others through the experience you’ve gained!