Creating a culture of sustainable growth and increased revenue:

I have been recently thinking a lot about when I was an Account Executive at this fast-growing tech company in the transportation space in 2014-ish. The pressure was immense, We had a new CEO, VP of Sales, GM and Sales Director. The new sales targets set for the regions were not just ambitious; they were downright unrealistic. Our Chief Revenue Officer was known for his aggressive approach. He believed that pushing the team to its limits would yield extraordinary results, even if we all fell short, the company would till hit their number. However, this approach often led to burnout and high turnover rates and an extremely defeated sales team of which only about 5% of all 60 AE's hit their number, and the rest were left out to dry(Even though the company hit their number as a whole). This is fairly typical as 10 years later, we are still seeing that about 10-20% of AE's in the United States are carrying their company. Again, leading to burnout, high turnover, and a defeated sales culture.

One particular quarter stands out. The market conditions were tough with economic uncertainties and the competition seemed to be eating us alive due to product challenges. Despite these roadblocks, our CRO set our quotas higher than the previous quarter. The stress was out of control throughout the company, and it wasn’t just me; my colleagues were struggling to keep up, and the rest were jumping ship.

The breaking point came during a critical sales meeting when Leadership were laying out the new targets. I remember as they were sharing the new quotes, the new payout structure and sales targets for the org, the Zoom meeting at one moment fell silent. I could almost feel the tension and anxiety through my macbook screen monitor, as the typing on phones and chatterboxes filled the background with it's clatter, AE's were texting back and forth about this perceived injustice. As the meeting progressed, I felt a surge of frustration and the outspoken bonehead that I can be, decided to speak up. I voiced my concerns about the unrealistic targets and the toll it was taking on the team to the entire company. To my surprise, my concerns were quickly dismissed, and they continued to insist that high pressure was necessary for high performance.

I knew something had to change. The next day, I gathered my thoughts(And notes from the meeting??) and decided to take a bold step. I scheduled a one-on-one meeting with our CEO. I laid out the situation, highlighting the negative impact of the inflated targets on the team’s morale and overall performance. I also presented data showing the correlation between unrealistic targets and high turnover rates, along with industry targets, and competitive data that spoke to the reality of where the industry was and our standing in this space. He agreed.

Mind you, our CEO was a visionary leader who valued the employees’ well-being. He acknowledged the issue and decided it was time for a change. He called an emergency meeting including All AE's, Managers, Directors, VP's, along with the executive office. Without throwing me under the bus, he shared my insights and emphasized the need for a more balanced approach to setting targets.

The CRO was initially resistant, but the VP, Directors, all upper and middle management agreed, that we needed more visibility on the actual numbers along with a more data-driven approach. We decided to pilot a new strategy for the next quarter. Targets would be set based on realistic market analysis, and the team would be involved in the goal-setting process. We also introduced regular training sessions and mentorship programs to support the team.

The results were astounding. The team felt more motivated and engaged. We started hitting our targets consistently, and the overall performance improved significantly. The turnover rate dropped, and the work environment became more positive and collaborative. This experience taught me invaluable lessons about the importance of setting realistic targets and training towards a culture of sustainable high performance. 90% of our AE's hit their quota that next quarter and year! Now 90% of the AE's were carrying the company, rather than just a mere 10%. An the company increased their revenue by more that 300 that year! These were some serious results!

Below are a few steps we train on now to help companies make this shift to create a culture of sustainable growth and increased revenue throughout the entire sales channel:

Set Realistic and Achievable Targets

• Understand Market Conditions: Analyze market trends and set targets that reflect current realities.
• Involve Your Team: Collaborate with your sales team to set achievable goals. Their input is crucial for realistic target setting.

Provide Continuous Support and Training

• Regular Training Sessions: Equip your team with the latest sales techniques and tools.
• Mentorship Programs: Pair less experienced salespeople with seasoned mentors to provide guidance and support.

Build and work toward a Positive Work Environment

• Recognize Achievements: Celebrate both small and large wins to keep morale high.
• Encourage Work-Life Balance: Promote policies that support a healthy work-life balance to prevent burnout.

Implement Transparent and Fair Evaluation Processes

• Clear Metrics: Use clear and fair metrics to evaluate performance.
• Regular Feedback: Provide constructive feedback regularly to help your team improve continuously.

Encourage Innovation and Creativity

• Incentivize Innovation: Reward creative solutions and innovative approaches to sales challenges.
• Create a Safe Space for Ideas: Encourage your team to share new ideas without fear of failure.

By implementing these strategies, you can create a culture of sustainable high performance that not only meets but exceeds sales targets, driving your business to new heights.

Why Aim to Exceed Targets?

While it’s essential to set realistic targets, aiming to exceed them can drive exceptional performance.

Here’s why:

• Motivation: Realistic targets can motivate teams to push their limits and achieve more.
• Growth: Exceeding targets can lead to significant business growth and market leadership.
• Innovation: Challenging goals often spur innovative thinking and problem-solving.

Setting realistic and achievable targets is crucial for any business. It's important to understand market conditions by analyzing trends and setting targets that reflect reality. Involving your sales Leaders in ensures that the goals are realistic and attainable, as their input is invaluable. Providing continuous support and training through regular sessions and sales training programs will help to equip your team with the latest techniques and tools.

Building a positive work environment by recognizing achievements and promoting work-life balance keeps morale high and prevents burnout. Implementing transparent and fair evaluation processes with clear metrics and regular feedback helps your team improve continuously.

By implementing these strategies, you can create a culture of sustainable high performance that exceeds your revenue and growth goals, allow for a better buying experience for your customers and decreasing employee turnover.

We look forward to to continued discussions on these topics around sales targets, quota attainment and revenue and growth!! Happy Selling and have a wonderful weekend!

Innovative Selling Partners? offers customized training programs to equip your company with the process, planning, strategy, and execution to stand out and deliver consistent, sustainable and impactful results.

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