Traditional Sales KPI's are losing you revenue

Today was the day I had to take my car for a service. I drove to my local garage for the appointment and I was pleasantly surprised to see that the garage itself had a recent make over. An obvious change was a digital screen that would show enhanced adverts and could showcase cars in a multitude of colours. The managers were discussing the new app that was about to be launched, as well as the new electric car in their showroom, in light of the 2040 electric car only recent push from the government. For a tech entrepreneur this was impressive, to see a brand different than my true business love, Tesla, demonstrate what the future may hold.

However, as I sat down, I started doing what has been with me for 15 years now, observing a workplace in motion. I noticed that on my left was what looked like a sales meeting. I was gripped straight away and since my commercial background is in sales, that was something I could relate to. The sales manager could easily be identified, as he sat high on his office chair, while everyone else was seating at a lower level on something like bean bags. He had the attention of the crowd in a way that clearly gave away the hierarchy.

Everyone's attention was focused on a whiteboard. A league table was on display at the largest part of the board and there was also a small ration graph. Highlighted were both the top and the low performers. I only knew the name of one of the sales team, as he sold me two cars since I moved to the village. But I didn't need to know their names to understand who is in what position. The body language was painting a whole picture.

Each one of the sales team was led to to the front in turns, and so the public shaming begins. At my surprise, the guy I knew, Luke, seemed to be withdrawn and demoralized. I was shocked to see the number 7 (lowest) next to his name, as it rested lonely at the bottom of the table. I saw him leave the meeting and returning back to his desk. I had built a great rapport with Luke, so I saw him more as a friend. He was an outstanding sale professional. His gift was natural. He had never been to any course and certainly, he wouldn't be able to quote any spin or Challenger methods, but he could sell well. He did little things that I really liked, such as guiding me towards a low-cost car because he knew I could be impulsive. He rung me when I had my crash, as he had kept my number. He had a personal touch in his actions, but most importantly he could demonstrate real confidence and passion in the product.

Luke told me the sales manager had placed him on a PIP – performance last month and this affected him so badly, that he had made only one sale. We talked about his personal problems and how they affect his punctuality, his attention and, more importantly for the sales manager, his numbers. Luke in two years, went from being the highest seller to missing a quarter to being on a performance indicator that was pushing him out the door. Of course, everyone knows that if you are not performing as expected because your mind is reverting to negativity, creating additional anxiety can lead you only in one direction. This method was sales equivalent of telling a footballer right before the World Cup semi-final penalty shootout that if he misses, he will lose everything...

Welcome to the traditional sale methods!

So, I sat back and took in the information. Of course, I let him know that I would hire him in my company in a heart beat. This type of individuals is rare, but deep down I was hoping the assurance of a job would allow him to regain his confidence as he loved his job. I've always been obsessed with human behaviour, questioning why we do what we do and if there is a better way to achieve a better outcome. Sales, in particular, has been on my mind intensely for the past year.

One of my favourite books of all time is called “Influence”, writes the tale of car sales people, one hiding the scratch from a car and the other showing it. The one hiding the scratch sold 3 times less than the other. I've heard phrases from very successful sale professionals like “fu*k it mind set” is why they have been so super successful. I have been recently presented with a book called “The subtle art of not giving a fu*k”, documenting the need for a calm, stress-free mindset for successful living and job performance.

This is all behavioural science. A part of subconscious human behaviour that also gets affected by:

• Scaristy – We want what we can't have.
• Transparency – People see passion as honesty.
• Honesty – trust is created by honesty and the delivery; if you can showcase your negatives and still be successful, you must be very trustworthy!

Yes, we all know this already. However, do we really? If we did, would we be placing strict monthly targets and openly display people and their performance in public forums? Would we be placing so much pressure on individuals to the point of break down? The garage in our tale looked innovative and modern, but dig a little deeper and you will come to see that our untested methods haven't changed in 25 years.

Most traditional methods, KPI processes and structure in sales are similar to sending out your key striker in the football pitch with extra weights placed in their boots. Can anyone out there who is reading this honestly say that they have tested different alternatives and they are using a proven tested method? Or simply doing what always has been done.