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Managers: Rid Your Sales Team of Parasites
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Landy Chase
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Management Trends
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November-December
2005
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The development of a sales professional consists of three basic stages. Each
stage is a transitionary period in which the sales person assumes a different
form than in the previous stage. Because this process in some ways parallels
that of our friends in the insect world, for humor purposes I call these three
stages Larval, Termite, and Parasite.
Sales Larvae are the neophytes of our profession - soft, helpless, legless
individuals who, due to lack of knowledge and experience, fumble blindly about
their sales territory. This is not an issue of ability. They simply haven't yet
mutated into full-fledged sales people. You probably still remember your first
day in your sales career. If so, you certainly remember your days as a Sales
Larvae. If you're a manager, your job is to turn your Larvae into full-fledged
Termites as quickly as possible.
Termites are those sales people at the top of their game. They are fully
equipped with the tools and skills necessary to methodically work their way
through the toughest sales barriers. Like Larvae, Termites are a relatively easy
stage for the competent sales executive to manage. It is the third stage of
sales person development that gives most supervisors migraine headaches - the
dreaded "Parasite".
Parasites are long-term sales employees who, after years of tenure within the
company, no longer call on new accounts, and live, often quite comfortably, off
of the business generated by existing customers. They have forgotten along the
way that their first priority is to grow their market or territory through new
business development efforts. Over time, they lose their ability to forage for
their own food and instead attach themselves to the bloodstream of the host
employer, drawing nourishment in the form of a paycheck. Hence the name.
Meet Growth Objectives
The "Parasite" sales person represents a difficult personnel problem. Because of
their time with the company, most sales executives will feel obligated to cut
these people some slack and look the other way, allowing the Parasite to feed
undisturbed. After all, here you have a tenured, long-term employee - one who
has often been a dependable producer in years past. Further, they are often well
liked and respected, and bring a lot of experience and industry knowledge to
your business. An argument could be made that they are "deserving" of Parasite
status and I understand that logic completely. I just don't agree with it.
Why? Because, as the business owner or sales manager, you have a business to
maintain. Check that - you have a business to grow. After all, the last time I
checked, the job of a sales person was to grow the business, not to baby-sit it.
Where will your company end up if your sales force isn't meeting its growth
objectives?
There are significant negative consequences to your Larvae and Termites if you
tolerate this situation. Having a different set of rules for your senior sales
people sends a poor message to the rest of the team about you and your
management style. In effect, the policy that you are publicly condoning is as
follows:
- We have two (or more) sets of standards - one for our Parasites and one
for everyone else.
- We don't treat everyone equally.
- We don't hold people accountable for results.
- Becoming a Parasite, (i.e. not having to produce) is a long-term reward
for sales seniority within our company.
- If you stay around long enough, you, too, may become a Parasite.
Renew Accountability
Do I sound harsh? Do you think I'm cold, cruel, and heartless - that I don't
care about people? You couldn't be more wrong. These issues have nothing to do
with popularity contests or your relationships with your people. Yes, you need
to have good relationships with your direct reports. However, you must hold your
sales people accountable for new-business results if you and your company are
going to succeed. Therefore, your Parasites must "morph" back into Termites.
These talented and capable freeloaders must learn to forage for their own food
once again. Here are some suggestions to reverse the developmental process:
- Introduce a revised, two-tiered commission plan that pays (a) a much
higher premium on new business and (b) a significantly reduced commission on
work from existing customers. This will serve to compensate your sales
people for their efforts in a manner more corresponding to the effort
required to close business and will put their focus where it needs to be -
on finding new clients. Announce this change well in advance of its
implementation to give your people an opportunity to prime the pump with new
opportunities. Rest assured, you will get a lot of negative feedback from
your Parasites on this idea; some might even elect to leave the company.
Stick to your guns. Don't forget that you are paying your sales people to
grow your business.
- Tie most of your rewards and recognition programs to achieving new
account development. Lavish praise and financial reward on those who respond
to your focus on new business. Additionally, tie in part of the compensation
plan to profitability of the business that your reps are selling. This will
serve to remind them that not all new business is good business.
- With a Parasite you have, for all intents and purposes, a dormant sales
territory. Give your Parasites a reasonable timeframe to change their work
focus and monitor their efforts in new-account development. If they show no
interest in doing what is required, or if they don't make progress, give the
prospects in the Parasite's territory to a more aggressive sales person.
Yes, I know it sounds harsh. As I see it though, your only other option is
to be a popular failure.
- Introduce specific accountability goals for new account growth. Tie in
significant financial incentives for goal attainment, such as a quarterly
bonus for meeting new-business objectives. At the same time, introduce
negative consequences for failure to meet minimum objectives. Parasites will
generally not release their grip on their host unless pain is applied to the
source of the food supply.
- Finally, don't allow your Parasites to hold you hostage. One of the most
common reactions that Parasites have to these management directives is to
threaten to leave the company and take their customer relationships with
them. They will often want you to believe that the future of your company
hangs in the balance of their continuing to represent you. Don't believe it!
I have seen this scenario play out many times. I have yet to see a single
instance where the company suffered a significant business decrease by the
departure of a Parasite. In fact, it is not uncommon for customer
relationships to actually improve and grow with the Parasite's departure.
Most of the parasites reading this piece will squirm in their chairs as they
read through the list. Hate me if you like. From the movie The Godfather, I
quote the mission statement of a highly successful business enterprise, the
Corleone family: "It's not personal. It's business". Go ahead. Make your
Parasites an offer they can't refuse.
Speaker, trainer, and author of the Landy Chase Sales Mastery audio series,
Landy Chase, M.B.A., C.S.P., is an expert who specializes in speaking to
corporations and associations on professional selling skills. For more
information, or to receive Landy’s free bi-weekly newsletter, visit his web site
at www.landychase.com.
Learn valuable sales tools such as negotiating skills and sales
recruiting/interviewing techniques from Landy Chase at the FSEA 2006 National
Convention, March 2-4, 2006 in San Antonio, Texas.
copyright 1995-2010, Peterson Publications
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