A sales manager is expected to grow profits and cut expenses. 

Therefore, each sales manager must evaluate and direct staff to achieve performance expectations.  He has to choose the most effective steps to achieve increased sales while keeping his staff focused on delivering excellent customer service.  

How does a manager get the most out of his present staff?  Here are five steps that can immediately improve team sales performance.

Step One  The manager should provide each employee with a clear set of expectations.   These should be written and also be discussed with the employee. The manager could then make adjustments or at least explain the reasoning behind the expectations.  During this discussion, the expectations can be clarified by asking the employee if he has any questions concerning the expectations. The manager should also determine if the employee knows how to fulfill those expectations.  This is the time for a two-way discussion to clarify and then agree upon those expectations.

At this time, the manager - as coach - might also ask the employee what he needs to be successful in reaching or surpassing those expectations. Is it training? Is it having the manager observe and coach the employee?  Is it getting objective feedback each quarter based on mystery shop results?  Other points to consider: Are there barriers that are out of the control of the employee such as being short staffed, not having enough time to follow up on customers or referrals, not enough lobby traffic?

Step Two  Next, there should be a vehicle or way to measure progress.  This does not mean the annual performance review.  Experts know that by measuring performance at least monthly, this will help both the employee and manager know how the employee is performing - he good as well as the bad - but more importantly, to identify areas for improvement.

Measurements can take many forms.   The employee could monitor his own progress several times a week by evaluating customer interactions. He has to be honest and realistic in his evaluation.  Another way is the manager could observe at least one customer interaction a week by sitting in with the employee and customer to see what is being done well and also to discover where there can be improvement.

Another form of measurement is by placing a container by the door where the customer simply casts a vote of yes or no as to whether or not they had a good experience.  Customers could also be identified randomly and then contacted by telephone to survey how their experience was when they were in the bank.   Hiring a mystery shop company would also provide an objective measurement of how the employees are performing.

Step Three  The manager should coach for performance. A coaching discussion should occur at least once a month. In preparation for the coaching discussion, the manager should think through and plan the coaching session for each employee.

First of all, these should be conducted one-on-one, not in a group. In group discussion, all too often the poorly performing employee does not think it is ever he who is under-performing.

The manager should gather all the hard data or results of the measurements.   Then he should consider how to begin the discussion. The most effective way is to begin on a positive note, mentioning something that the employee did well over the past month.  Then the manager should ask the employee first how he thinks he is performing, where has he excelled, where does he feel he needs help. If the employee truly does not know, then the manager can describe the employee's performance.

Next, the manager and the employee should create an action plan that will address how to fix the performance deficiency.  For example, if he does not have enough closed sales for the month, together the manager and the employee can agree on some good action steps to take, for example, make ten follow up phone calls a day, write notes to ten customers a day, learn how to sell additional products to a customer by attending training sessions, read books or listen to audiotapes on sales tips and techniques, etc. Both of you should brainstorm on how to improve performance, what steps to take.

In the closing of the coaching session, the manager should give a vote of confidence to the employee and also offer to be of help. They should also both agree on a time line for completing the action plan.

Step Four  Document what you both discussed and what the action plan is along with the date for the next coaching discussion.  Both of you should sign this form; one copy will go into his file and the other copy he should keep for reference.  This does not mean that both parties agree with everything that was discussed; it is just proof that the manager and employee had the discussion as documented.

Step Five  Think about ways to motivate employees.  This depends on several factors.  For example, is this the kind of employee who likes public acclaim or would he be "embarrassed" by being singled out and complimented in front of the group.  The reward has to fit the receiver. Research shows over and over again that there is no co-relation between the amount spent on the reward and the so called payback in improved performance.   Therefore, that reward could be a single flower, a $5 gift card, a sincere note.  It is important to remember that the reward lies in the fact that the manager took the time to consider and give a reward, not so much on the cost of the reward.

It is more important to give rewards often and not get sidetracked by not having enough money or the time to create a good incentive plan.  Also keep in mind that good performance should never be taken for granted so those who are performing well should be rewarded.   Again, remember, the reward should fit the person.

By following these tactics, sales managers will see an increase in performance.  The staff will be more focused on how to reach their goals and expectations.  They will also see you, the manager, as a coach who is a source of help, guidance and support.

For more information, contact:
MSM Michaelene S. Mikus Consulting Group, Inc.
Specialists in Enhancing Service & Growing Sales
762 Wedgewood Drive  - Suite 202  - Crystal Lake, Illinois 60014
Office 815.444.9016            FAX 815.444.9017                  Email: msmikus@ameritech.net