Know-How Exchange : Strategy

Wow, what a bummer! I agree with Rich, but there might be a prize to be won if you can bring the CEO round. It’s best to have a strong insurance policy in place first though, so start up some discrete conversations in the evenings with the head-hunters and have a well advanced fall back situation. (Preferably a job offer) A sales manager who is trying to rescue his company at the risk of being sacked because he, “Told the emperor that he had no clothes” is to be valued. I’d hire him!

Arrange a meeting with the CEO to discuss targets, budgets and motivation. Be armed with the personal, team and product sales figures, the variable costs and the fixed costs. Know in advance where the business came from and who generated it. It’s a lot of preparation and learning, especially as I’m not going to suggest that you talk about it!

Ask the CEO to discuss the target as a whole. He’ll have the big picture. Then ask him how he sees it breaking down by products, people and teams. Move on to how he felt it would be divided amongst the different sales teams or people. He will probably be floundering a bit by now. Of course, you have the answers, but don’t volunteer too much and don’t debate or argue. Just ask questions and listen. At the most offer to sketch out on paper how you think that he sees things happening (These are your figures, not his!).

Ask him if he is aware of how people are measuring up to these figures (not his figures, these!) and expectations. Do the same with products – how are they performing against budgets or targets. If you have any, ask how advertising or other marketing is contributing to lead generation. Is it measured, if so know the figures. Does he? Ask him.

Now move on to how he sees these expectations being broken down into workable tasks performed by the sales force over the year. When he paints the big picture, respectfully point out that it’s hard to envisage, say, $480,000 of sales if you are a $30,000 salesman, but that it’s easier if they can break it down into comprehensible chunks. How many working days are there in a year? Do the sums for him. 365 days – 104 for weekends = 261. Less holidays, = 251. Less national days (Or whatever you call them in the US) = 240 days. So the guys have to raise $2000 a day for each working day to reach the boss’s expectations.

How will they do that? How many calls will they need to make? Where will the calls come from? How does the company help them? What recognition do they get if they achieve the figure? What help will they get if they have a bad day or a bad week? Does he feel that a motivated, happy salesman is more or less likely to achieve the target? Does he feel that a frightened or angry salesman is likely to work well or leave?

When a salesman leaves, ask, “How much does it cost to replace him” Let the CEO tell you – he’ll get it wrong! “$1000 for the advert (Or $6000 for the head-hunter!) and a weeks training!!” Well, that’s actually, $6000 for recruitment, $6000 in his time interviewing and $10,000 for the weeks training ($2000 / day needed to earn the target remember!), so might it not be a good idea to motivate the guys a bit more and help to retain them? Make them feel more valued, part of the team. How about-------bonus’s etc. etc. etc.

The point is to use all your sales, negotiation and sales management skills on the CEO. Ask Questions, don’t give speeches. Listen, don’t talk. Have the answers, but nudge him into giving them. Suggest the benefits to the company, but let him enunciate them. Sketch the figures, but let him come to the conclusions about them. Ask him how he would perform if he was in their shoes and someone else was the CEO.

If you succeed, you deserve to be the next CEO. If you fail, your reason for leaving, documented as it will be, should put you in the top 2 of any shortlist for a VP of sales for a blue chip company!

Good luck


Steve