8 ways to Keep Sales Teams Focused and Fired Up in an Uncertain Economy
By Bill Catlette and Richard Hadden
The ONLY way to weather turbulent times is with the willing engagement of a focused, fired-up, capably led work force. Because lots of business owners and mangers are all balled up worrying about the numbers, however, they take their eyes off their people, who are probably the best answer to getting the numbers back where they need to be.
Your only hope for surviving a weak economy is to have the willing – not reluctant and not half-hearted – engagement of everyone in your work force. Here are eight things every business owner and manager ought to be doing
- Avoid the utterly mindless tactics often invoked during a slowdown.
The knee-jerk layoffs (unless survival is truly at stake), poorly thought out pay cuts and petty cutbacks. When you do make cuts, remember that officers-the people at the top-bleed first.
Sometimes, the only way an organization can survive is to shed some of its labor costs. Unfortunately, too many companies, operating on the erroneous assumption that layoffs are an easy way out, make this one of their first options rather than what it should be- a last resort.
Studies by the American Management Association suggest that most staff reduction efforts result in no near-term improvement in operating profits or productivity. A survey of 531 large businesses conducted by the Wyatt Company showed that, among companies that had undergone "restructuring," 54 percent failed to realize any attendant increase in earnings within two years. Less than 34 percent of those same companies realized an increase in productivity from the layoffs, and better than half of the companies actually refilled the positions they had eliminated within one year of downsizing at a much higher cost.
Love 'Em, Don't Lose 'Em
A survey this year by job placement firm Challenger, Gray & Christmas found 71 percent of companies polled had laid off some workers. More than one-quarter had implemented pay freezes or cuts.
But John Challenger, the firm's CEO, told the Associated Press that it's more common now than in past recessions for companies to find other paths to savings than laying people off. Many companies have concluded that layoffs could be costlier down the road. Employers who have laid people off have to find, hire and train new ones when the economy recovers.
Workers with specialized skills or salespeople with strong contacts aren't easily replaced. Marvin Windows and Doors, a Minnesota company, hasn't laid off any of its 5,300 workers despite the collapse of the housing market. Its sales were flat in 2008 and have fallen this year. Instead, the company trimmed the time factory workers are on the clock from 40 hours per week to 32.
"We can't easily replace skilled craftspeople and their decades of experience;' says Susan Marvin, president of the company. - Smart managers take steps to keep fear from causing their workers
to disengage.
The degree to--which employees are concerned about losing their jobs varies inversely with the degree to which they are concerned with doing their jobs, and taking care of customers. Employees look at their managers for telltale signs of fear and hope.
One way to counteract fear and inspire people to focus on productivity is to increase recognition and rewards. It's unlikely that you will be giving people fat raises for a while, but you can ill-afford to stop recognizing and rewarding good work. - Don't be afraid to talk candidly with your people about how your
business is doing.
The one thing that distracts people more than anything else is not knowing what's going on. When you really open up and let everyone know what's going on in the business, if you've done most everything else right, and if you developed loyalty between your employees and your organization, most of them will put their shoulders to the grindstone to help the company through the rough patch.
By sharing targets, goals and results with everyone on the payroll, Jerry Kathman, CEO of international design agency LPK, has guided his company of 400 employees to annual revenues of $50 million.
We all share goals and results with people in the executive quarters of the company, but we're talking about sharing this stuff in detail with everyone, including the part-time high school kids who make deliveries for you in the afternoon, and the newest member of the mailroom staff. Give them real incentives for increasing revenue and reducing expenses and you'll see engagement go way up-and most likely profit, too. - Smart organizations maintain their training strategy and priorities
through a difficult economy.
The first shoe to fall in any down economy lands on the corporate training budget. If you're doing training that doesn't need to be done, then you should stop it anyway. But the notion that we can somehow help the business by deferring necessary training and, in effect, dumb down the organization is intellectually bankrupt.
Employee engagement surveys like the ones done by Towers Perin, Gallup and our own firm have demonstrated convincingly that the opportunity to learn and grow is one of the most significant factors in employee engagement and retention.
- Don't stop recruiting.
If anything, you ought to redouble your recruiting efforts. Warren Buffett, one of the savviest investors of all time, closed deals to buy two businesses in the last two weeks of 2007, when economic forecasts were already taking a gloomy tone. He's been on a buying spree ever since because, with a shaky economy, businesses that he'd like to add to his Berkshire Hathaway portfolio are getting cheaper.
The same principle applies to rounding up talented people. They're out there. Go find them and start a conversation with them now. - Crank up your "high touch."
This is an excellent time to show that you care by spending more time listening - really listening - to the people on your team. Watch for signs of added stress. Don't play psychologist. Instead, make sure you have a good employee assistance program ready to respond when needed.
Take a 30-minute listening tour of your office in which you walk around intent on listening. Don't eavesdrop. Listen to what's going on. What do you hear? Are people talking about helping customers or discussing their own problems? If it’s the latter, don't reprimand them. Use it as good input for you about what's on their minds. - Pay extra attention to your customers.
Too many businesses hunker down and go below the radar when economic growth slows. A bad economy is hard on everyone, but it's less difficult on companies with exemplary customer service reputations.
The first thing is to concentrate more on customer service, and especially on individual attention. Of course, so much of this comes down to the disposition of the people serving your customers. While it's possible to give lousy service with happy employees, it's impossible to give good service with employees who are grouchy, scared, confused or worrying more about themselves than they are about your customers.
Figure out ways to make yourself more valuable to your customers. Better still, invite your employees to create these ideas. - Small things can make big differences.
Pay attention to both your accounts receivable and payable. Initiate conversations with slow payers earlier than you otherwise might. On the flipside, don't stretch out your suppliers. One of the best investments you can make is to pay your suppliers - especially the small businesses - quickly. They will notice and you will notice their extra effort on your behalf.
Be optimistic. People want to follow optimistic people. Whether this period of uncertainty is long and severe or short and shallow, one thing is certain:
Those who emerge on the other side poised to take full advantage of new opportunities will be the ones who have capably led a fired-up and focused work force.
If You See Talented People, Ask Them To Join You
The general manager at a high-end Phoenix restaurant dines occasionally at the tables of her competitors. If she receives exceptional service, she leaves an exceptional tip - and a business card. All is fair in war and recruiting, right?
Salesforce XP
May-June 2009
