Hartford Business Journal

www.HartfordBusiness.com October 5, 2015 • Hartford Business Journal 21 BIZ BOOKS By-the-book management hinders company growth, innovation "S imple Sabotage — A Modern Field manual for Detecting and Rooting out Everyday Behaviors that Undermine Your Work- place" by Robert M. Galford, Bob Frisch & Cary Greene (HarperOne, $23.99). The Office of Strategic Services (OSS) was a United States WWII intelligence agency, and a predecessor of the CIA. It was formed to coordinate espionage activities behind enemy lines. While many of its activities were aimed at slowing down the enemy's troops, its field manual also provided tactics on how to slow down the flow of informa- tion within organizations. The manual's advice reveals that many accepted business prac- tices can sabotage operations by wasting time and money. "Sabotage by obedience" involves doing everything through the "proper" channels. Communi- cation across cross-functional lines diminish- es because the information nexus resides at the top. As a result, problem-solving, decision- making, plan-tweaking and execution become drawn out processes. By wasting time, the company also wastes opportunity. By "following orders," creativity and innovation stall, too — as do continuous improvement and talent development. The "by the book Bob" drones are content; the really talented people recognize the lack of personal challenge and growth and move on. "Sabotage by committee" affects planning, consensus building and account- ability. Committees, teams and workgroups form with specific mandates and often stay so focused on them that they may ignore issues that conflict with the mandate. Those issues may have an impact on the out- comes of others. In large committees, a per- son's job often hides a com- mittee's job, which sometimes means it's no one's job. Even when there's a committee head to assign responsibility, it's dif- ficult to reach a consensus because all input isn't created equal (i.e. "Too many cooks spoil the broth."). "Sabotage by reopening decisions" refers to constantly questioning the advis- ability of a decision. Once reopened, all prior work comes to a standstill; timing of the next steps are affected, too. Also, when reopening decisions becomes habitual, people will be hesitant about making a firm decision. Second-guessing decisions will become more important than making them. The bottom line: Businesses must constantly evaluate policies and proce- dures to ensure that the ways of the past don't sabotage the path to the future. • • • "Persuasion Equation — The Subtle Science of Getting Your Way" by Mark Rodgers (AMACOM, $17.95). To understand the art of persuasion, you need to think about why people say yes or no. At first blush, you might think rational thinking (i.e. evaluating a compel- ling business case) drives yes. But consider that humans don't practice deep think- ing, which leads to rational decisions. We may say that "we've done our homework," but the way we do our homework shapes the decision. When confronted with complexity, we employ men- tal shortcuts in the form of methodologies and biases. Our approach to a problem may appear sound, but it also includes our biases. With this in mind, the homework you do to per- suade someone must include things that appeal to their perspec- tive. Much of the homework is done on the fly because you have to get to know your target before presenting your case. Differences in personalities, generational outlook, gender, ethnicity, technology usage, etc. affect their decisions. Engaging them in conversation by asking questions probes for their methodolo- gies, biases and personal agendas. Once identi- fied, tailor your case so it appeals to both their logic and emotion. Next, focus on your credibility. While expertise establishes it, relating to the target on her/his terms increases it, which helps you get to yes. Showing respect enhances it, too. Easy ways to show respect: 1. Don't interrupt, 2. Use "yes and … " not "yes but … " when responding. Key takeaway: The process of persuasion is dynamic and fluid. "Never allow yourself to have one option for your per- suasion project." n Jim Pawlak is a nationally syndicated book reviewer. Jim Pawlak EXECUTIVE MANAGEMENT Seven rules for effective sales-incentive plans By Andy Singer A sales force creates sales. It is not just an expense; it drives the top line for a company. A motivated sales force sells more than an unmotivated sales force. There are a number of key drivers of sales force effectiveness and one of the key compo- nents is compensa- tion. A sales incen- tive plan should be developed to help assure the sales force performs the right activities that satisfy customers and drive company revenue and profits. Here are seven rules for effective sales-incentive plans: 1. Alignment: The sales-incentive plan needs to align the salesper- son's activities with the firm's objectives. Senior management needs to develop a strategy and goals for the organization. Sales leadership can then determine which objectives and activities will best support the organization's goals. 2. Compatibility: An effective sales-incen- tive program must be compatible with other drivers of sales force effectiveness such as performance management, training and com- pany culture. The plan should target activities and objectives that are important for the busi- ness results desired. It is also essential that the plan is viewed as fair. 3. Challenging — but achievable: The MBOs (management by objectives) that are assigned must be a stretch to achieve. They should be challenging, but achievable. If the goals are too easy, they won't drive the required performance and continuous improvement. If the goals are unachievable, the sales team will give up without even trying. Goals lose their ability to motivate if the sales force feels the goal is completely unattainable, or they cannot affect the outcome. This is important to keep in mind during the rollout phase. 4. Easy to understand and manage: The plan for each person should fit on a 3 x 5 index card and be explainable in two minutes or less. Measurability is also critical to the success of a sales-incentive plan. Incentive plans will not work if the performance criteria are not measur- able and easy to understand. Keep in mind there are many details that need to be considered when developing or modifying these plans, so be sure you have people with experience involved. 5. Motivating: The company benefits if the sales force is motivated and successfully imple- ments an effective selling process. An effective plan will influence salespeople's activities and keep them energized. Salespeople like to feel that their work is recognized and rewarded. A good plan is motivating to those sales team members who are achievers. 6. Modeled and tested: Once you have developed the plans for your sales team they should be carefully modeled and tested. Your finance group should test to see what would have happened the prior year with the new plan and also what will occur on the low and high end of the expected results for the com- ing year. Now is the time to avoid surprises, prior to unveiling the plan. 7. Effective rollout: Changing compen- sation plans can be challenging. It's wise to involve the front-line sales managers during the development phase to assure buy-in. In some situations, you may also have to con- sider a transition period, if good salespeople will be negatively impacted. Be sure to get the front-line sales managers involved with the rollout of the new plans. You need them to motivate and coach your team through the change and ultimately towards success. While only one component of sales man- agement, the sales-incentive program has a significant impact on salespeople, sales activities, customer satisfaction and compa- ny results. The incentive program sets expec- tations of what is important and directs sales force energy to activities it rewards. These plans should be carefully developed and reviewed. It's always a good idea to get help from an outside expert to assure maximum impact for your organization. n Andy Singer is the president of Singer Executive Development, a professional training and development company that helps optimize business performance of employees and executives. Andy Singer ▶ ▶ Businesses must constantly evaluate policies and procedures to ensure that the ways of the past don't sabotage the path to the future. ▶ ▶ The incentive program sets expectations of what is important and directs sales force energy to activities it rewards.

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