What Would You Do?

Think you have all the answers? Prove it. S&MM regularly poses a hypothetical management question to readers in our Closer section. Tell us what advice you'd give to solve this difficult—albeit fictitious—dilemma. The winning response, as well as other contenders, will appear in our May issue.

Good luck!

The scenario: Jensen Supplies holds two sales contests each year to boost revenue and improve morale. To spice things up a bit this time, Jane Werner, Jensen's sales director, announced the July-through-December contest at the June 1 weekly sales meeting. She went all out and decorated the conference room in an island theme, complete with posters of the South Pacific and tropical music and treats. And on each person's chair, she left a fake plane ticket to Tahiti-one for each of her 15 salespeople. She told them that in order to exchange the fake ticket for a real one, they would have to reach 125 percent of quota. The reason for such a large prize for a six-month contest, she explained, was that Jensen was introducing three new products and she wanted to ramp up sales as quickly as possible.

Also at the meeting was Dan Woods, Jensen's marketing rep, who is responsible for creating the sales team's collateral, presentation materials, and proposals. Strangely, over the course of the next month after the meeting, his performance declined; he was less social and less available to help the salespeople than he had been. His lunch hours were longer and his workdays got shorter. Werner noticed the change and asked Woods into her office to discuss the situation.

In a nutshell, he was disappointed that, once again, he was excluded from the company's incentive program because he wasn't strictly "sales." Woods said he felt integral to the sales force's success; in his two years with the company, sales had grown 12 percent per year, whereas revenue had grown only 4 percent per year in the five years before his arrival. He said that perhaps he didn't fit into the Jensen culture.

Werner was surprised—she hadn't anticipated that Woods would feel this way. She asked him to give her a few days to work out the problem.

Question: Does Werner just send Woods to Tahiti as a thank you for all his hard work? Does she create some sort of incentive specifically for him? Or is there a better solution? (Submit your comments below.)

Comments

[Ivan Varshavsky]

Although Woods has a right to be disappointed because he has once again been excluded from the company's incentive program because he isn’t strictly "sales", he is wrong in what he does by lagging off and declining his performance. Time and effort are everything. Woods’ attitude does not only slow down the company but also has an impact on the company’s sales. Since Woods plays a major role in support and is responsible for creating the sales team's collateral, presentation materials, and proposals, I would give him a chance to win a ticket to Tahiti. To be eligible for this ticket he would have to have a better performance, a better attitude, and be more social as well as available to help the salespeople. His eligibility should also be determined if 50% or more of the 15 sellers reach or surpass the 125 percent of quota.

[Eric Joe]

Werner can simply send Woods to Tahiti, as a thank-you. Or, better yet, establish a "partner" or VIP list, inwhich one may include others that indirectly affect sales. This doesn't have to be a separate incentive plan, as managing/updating multiple plans can be a nightmare. Plus, having a partner/VIP list means that each year it can simply evolve, and no one person can/should assume that he/she will be attending a future trip.

[Jerry Wolfe]

Woods should definitely be included. Since his role is one of support, rather than direct sales; his eligibility should be determined by the percentage of the 15 sales people who qualify (50% or more?) - and the only ones who should count are those who worked with Woods on proposals. Woods will then have the incentive to get behind the program in a big way for his own benefit.

[Laurie]

Since Jensen is introducing three new products, new collateral will have to be developed. Woods should be responsible for creating this collateral, on time and with her blessing. If more than five sales people make the 125 percent of quota, Woods gets to go to Tahiti.