Implementing changes in the sales department. Part 12/12. Stage X – Implementation of the financial incentive system.

The last stage of changes should be the implementation of the employee motivation system in connection with the assumed sales goals. Sales goals should be set based on budget assumptions resulting from the extensive analysis contained in the sales strategy. In this context, a motivation system should be created in the sense of financial motivation.

The strategy defines the main goal which is the sale of a specific volume of goods. An additional task is to achieve a certain level of turnover with new customers within the main goal. Completing this second task should be linked to the expansion strategy of expanding the market and diversifying the customer portfolio. The diversification of the group of recipients is to allow for an increase in the level of margins achieved by making the negotiation process more flexible. It is primarily about moving away from the model of result conditioning by cooperating only with two or three large (turnover) clients who in this case use their hegemonic advantage when negotiating long-term contracts.

Considering the above, the following assumptions of the bonus system for sales department employees may be adopted (decision of the Management Board) as regards the implementation of the main strategic goal:

1. The bonus system will be consistent for the entire organization, i.e. all employees will receive a bonus on the same terms if the goal is met.
2. The settlement period for the payment of the bonus will be a calendar month – the implementation of the monthly goal means the payment of the bonus.
3. The basis for calculating the bonus amount is the appropriate percentage of the basic salary.
4. If the annual target is met, each employee will be paid an additional bonus in the amount of eg 100% of remuneration.

Commenting on the above assumptions, it should be emphasized that the main goal of the implemented bonus system is to develop team responsibility for the result, which is to improve cooperation between all departments in the company. The coherence of the bonus system for all employees means that the entire organization has focused on good-quality customer service, which should be understood in a generalized sales process, production process, quality control, accounting – that is, in fact, all manifestations of the company’s activity addressed to customers. The monthly settlement of bonuses gives the opportunity to implement tasks on the basis of “quick win” – the employee immediately received a reward for completed tasks. Rapid progress is immediately rewarded. On the other hand, an additional annual bonus, paid out if the budgetary target is met, gives the opportunity to “catch up” the unpaid premium for the month in which the target was not met.

Regardless of the financial incentive system, you can introduce additional incentives for sales employees to achieve an additional goal, i.e. expanding sales to a larger group of customers and diversifying the portfolio. The implementation of this system should be preceded by an analysis that should define the concept of “new customer” and determine the expected portfolio development in terms of “new busisness”. After presenting the status quo to employees and precisely defining the definition of a “new customer”, an annual target should be set for sales to this group of recipients. It can be established that all sales employees, regardless of their position and level of remuneration, as well as other bonuses, will receive an equal net amount as an additional annual remuneration for achieving the assumed goal. This amount should be set at an attractive level (decision of the Management Board). It is also worth determining the increase in this bonus when crossing the next higher result thresholds, and indicate its upper limit. To monitor your progress, it’s a good idea to enter a simple daily report showing the level of task completion and missing value to your annual goal. This report should be supplemented by employees so that any significant change in ratios bringing the bonus closer to you would be an additional motivation.

Implementing changes in the sales department. Part 10/12. Stage VIII – Establishing a hierarchy and structure of responsibility.

Managerial activities in determining the hierarchy of positions in the sales department should be implemented based on three main premises.

1. Distribution model.
2. Employee competences.
3. Customer relations.

An important element of organizational changes is the division of the sales department into employees responsible for sales and customer contact (the so-called Front Office) and employees performing administrative tasks in the field of customer service (the so-called Back Office).

When making organizational changes in the sales department, the following premises can be taken into account:

• The Sales Department manager should be relieved of direct supervision of operational activities in the field of administrative customer service and delegate some control functions in this area reporting directly to specialist / sales managers (more time for preparation and implementation of strategic tasks),
• Specialized functions should be taken over by experienced and effective employees who will be promoted (motivation),
• Customers should be informed about the new organizational structure,
• New employees should be introduced to work and develop their skills under the guidance of experienced colleagues,
• Managers / sales specialists should be given greater opportunity for business trips by securing administrative work in the office by their subordinates,
• As a result of changes, there should be the possibility of exchanging functions and replacing employees (eg greater freedom when planning holidays).

The new organizational chart should also be the basis for developing a payroll throughout the entire commercial division. Based on the pay scale, pay adjustments should be made taking into account employee experience, development prospects and the labor market situation.

Implementing changes in the sales department. Part 7/12. Stage V – Identification of motivators and demotivators in teamwork.

The team’s work efficiency is influenced by many factors that can strengthen or weaken employees’ attitudes. At the same time, one should not be limited to motivation theories and the tools created on their basis. The managerial task is to eliminate negative factors that reduce employee motivation. From a strategic point of view, i.e. the goal of strengthening the positive attitudes of employees, it is necessary to quickly implement changes.

Common factors that have a negative impact on employee attitudes can be:

1. Disordered pay grid (too wide pay gap in similar positions).
2. Unclear organizational structure (no division of tasks and responsibilities) and thus chaos and frequent conflicts.
3. Unaesthetic appearance of the rooms constituting the workplace.
4. Lack of appropriate work tools (too few devices, frequent failures).
5. Wrong location of the workplace.
6. Task overload due to staff shortages and / or poor work organization.
7. Lack of bonus system for achieved goals and above average results.

The fastest possible action to implement is to improve social working conditions. Symptoms of poor social conditions can be (examples):

• Damaged walls,
• Old furniture,
• Frequent failure of printers,
• Dirty armchairs at desks,
• Poor distribution of the work space, which does not emphasize the managerial functions of some people and introduces confusion for clients,
• Difficult working conditions during the summer – no air conditioning of the rooms,
• Lack of a coffee maker and fridge in the kitchen for storing meals.

Few managers pay no attention to this area of work, but from the point of view of the quality of work and team motivation it is crucial.

Implementing changes in the sales department. Part 6/12. Stage IV – Defining the team roles of individual employees.

This stage of team potential analysis is an activity that should be combined with broadly understood managerial intuition. This is associated with a certain vision of team building, and in particular the design of appropriate relationships in the team that will create the right conditions for the group to achieve better results at work. In short, the point is that relationships in a team be a positive motivation factor.

Team roles can be determined based on the following tools:

• Observation of work,
• Individual interview with employees,
• Interviews with direct supervisor and close associates.

As a result of this analysis, which can take up to several months, the roles of individual team members will be determined. The classification proposed by Meredith Belbin is best used to classify these roles. Not all roles proposed by M. Belbin will suit every team. Some roles will also be dysfunctional from the point of view of further cooperation opportunities and, as a result, will affect personnel decisions.

The biggest dysfunction are team roles consisting in non-objective criticism of proposed changes and expressing disapproval in the team forum. The effect of such behavior is an unfavorable internal atmosphere, increasing distrust and dissatisfaction. Changing these attitudes, based on contesting everything, despite many attempts and tools used, may prove impossible.

At this stage, the most important thing is to identify the core of the team, giving prospects for further development and building an efficient sales department. Personnel dysfunctions arising from the attitudes of individual employees towards colleagues and superiors, as well as towards clients should also be determined. As a result, the manager will obtain a clear picture of the team and a vision of its development from the interpersonal side in internal and, above all, external relations – cooperation with clients.