The Power of the Contract in Performance Management

An essential step in managing the performance of salespeople is that of establishing a sound and agreed contract between manager and the salesperson. A contract in this context is simply an agreement between the manager and the salesperson as to how best they are going to work together. It is a chance for each party to outline expectations, hopes and fears and is a superb opportunity for both the manager and salesperson to fully understand each other in terms of personality style, motivators and de-motivators. It is also an opportunity for the manager to ensure that the salesperson fully understands their role and their responsibilities as well as their sales and activity targets.

So, how does contracting work?

Contracting should start right at the beginning of a manager: salesperson relationship. The manager should meet with the salesperson and each person should have aims in respect to the meeting which are along the following lines:

For the Manager:

? To ensure that the salesperson feels welcomed and part of the team.

? To ensure that the salesperson understands their role and responsibilities.

? To ensure that the salesperson knows what the team/company rules and regulations are.

? To ensure that the salesperson knows what their sales and activity targets are and how they are going to be measured.

? To outline the manager's expectations of the salesperson in terms of behaviour, attendance, personal qualities etc.

? To explain what management style the manager has and what motivates the manager and de-motivates them.

? To understand what motivates and de-motivates the salesperson

? To begin to understand the salesperson's personality styles and preferences.

? To agree what support the manager is going to provide in relation to the salesperson's progress and development.

? To agree a communication process.

For the Salesperson:

? To fully understand how the manager likes to operate.

? To understand exactly what the role requirements are in terms of responsibilities, objectives and measures.

? To understand any administration procedures such as e-mail, expenses etc.

? To know a bit more about the team and culture.

? To understand any team rules, responsibilities and meetings dates.

? To address any hopes and fears that they may have.

? To understand how best the manager is going to support the salesperson.

? What does the salesperson do if they need help?

In reality, how many of these aims are actually realised in a first meeting? Chances are that the meeting will be very "one way" with the manager doing a lot of talking and outlining what is expected of the salesperson both in terms of the company regulations and the salesperson's activity and sales targets. If the manager's approach is very "one way" then they are missing a tremendous opportunity to get to understand the salesperson's personality, not to mention their strengths and development areas. The chances are also high that the salesperson will sit back and listen as opposed to being pro-active and outlining exactly what they need to know and whatever else is going on in their head!

Our culture is still very based on the hierarchy where a manager tells the salesperson what to do. As a result there is always the danger of not getting the best out of the salesperson by taking this approach. Simply by employing more questions and listening to the answers will reveal not only more about the salesperson in terms of their capabilities and understanding, but will also start to make the salesperson feel valued and as a result, trust and respect will start to build between the salesperson and manager. This is the basis for a productive relationship.

By taking more time in the initial meeting and by employing questioning and listening techniques the manager can establish quick rapport and also start to understand exactly what makes the salesperson "tick". In other words, they will learn what "buttons to press" in order to ensure constant motivation in their salespeople. Too many managers still do not know, even after working with some of their salespeople for some time, specifically what motivates and de-motivates each individual. Many managers will claim they know, but when you ask them to outline what each of their salespersons' primary intangible needs are, you almost inevitably get the "silent stare"!

Contracting is a vital skill and one which needs to be "two way" ensuring that both manager and salesperson get the opportunity to talk and to understand each other. It is not just about outlining roles, responsibilities, rules, objectives and measures; it is about listening, understanding, and building rapport, trust and respect. The meeting needs time and depth. A quick telephone call is totally inadequate ? it must be face to face.

Too many managers do not spend enough time with their salespeople in the initial stages of the relationship and even when they do spend time it can tend to be very much "one way". The manager then runs the risk of not ensuring understanding, stifling opinion, creativity and innovation together with potentially causing frustration and subsequent de-motivation. This is inadequate performance management.

Allan Mackintosh is a Performance Management Coach, author and speaker. He is the creator of innovative coaching frameworks such as OUTCOMES, CARERS and ASPIRES and is the author of 'The Successful Coaching Manager' (Troubador 2003). He can be contacted on 00 44 1292 318152, e-mail, allan@pmcscotland.com or through his website, http://www.pmcscotland.com

---

Managing Client Relationships

Managing Client Relationships: Even the best run organizations occasionally run... Read More

Counseling Interviews for the Marginal Employee

ACTIVE LISTENING: The most frequent cause of failure in therapeutic... Read More

Protect Your Computer System with a Comprehensive Security Policy

The most difficult part of creating a Security Policy for... Read More

Management Development - Micromanagement Works!

Getting into the detail of everything each of your people... Read More

Out of Control?

There are papers on the floor, across the desk and... Read More

People Literacy

Every Manager has experienced the frustration of not understanding why... Read More

The Dripping Faucet in Every Organization

Each day millions of workers spend 8 hours or more... Read More

Productive Meetings: How to Make Your Meetings More Productive

There's one simple secret to effective meetings: set an agenda... Read More

Make Change Easy - Get Involved!

There are wild variances in how much involvement organisations are... Read More

When Politics Prevent Innovation - Or? Still Fighting Battles and Losing Wars

The objective is to beat the competition and make money.... Read More

Creativity Management ? Quality from Quantity

Creativity can be defined as problem identification and idea generation... Read More

Lower the Bar

"Nothing great was ever achieved without enthusiasm." Ralph Waldo EmersonI'm... Read More

Performance Appraisal - Ten Stupid Things Managers Do To Screw It Up

Performance appraisals aren't fun. But a lot of the time... Read More

Your Company Without Training - Any Questions?

Okay, be honest!Are you guilty of sticking in a few... Read More

Internal Communication: 12 Essential Elements

There are 12 essential elements of a successful internal communications... Read More

What 80% of Businesses Don?t Know: Tips for Improving Your Working Capital Management

What is the number one way to prevent failure in... Read More

Learn to Assert Yourself

Pinpoint your own blocks to assertiveness: fear of disapproval, need... Read More

Spotlight on Productivity: How to Overcome E-Mail Overload

Do you ever feel overwhelmed by e-mail? Have you ever... Read More

Disaster Prevention Tips For Hiring A New Manager

It happens over and over in businesses every day.Within large... Read More

Employee Surveys: a Strategic Tool for Positive Change

Do you want to measure your workers' level of satisfaction?... Read More

Employee Orientation: Get New Hires Off To a Great Start

The good news is that a new hire orientation program... Read More

Three Professional Services Resolutions for 2005

With client expectations higher than ever before, and the gradual... Read More

More Problem-Solving Success Tips

The ability to solve complicated problems quickly is more important... Read More

Creating A Vision ? Bringing Your Dreams Into Reality

Do you have some goals you want to achieve or... Read More

Performance Evaluation: How To Create Change

STEPS TOWARDS GIVING A GOOD APPRAISAL INTERVIEW: Give specific feedback.... Read More

Keeping Team Meetings Vibrant

Meetings can be the life-blood of an organisation or the... Read More

Business Innovation ? Improvisation

Creativity can be defined as problem identification and idea generation... Read More

Bye-Bye Boring Meetings! Make Yours Remarkable!

It's the middle of the night. You've woken up with... Read More

The Supervisors 14 Essential Truths For Communicating With Direct Reports

One amazing, but sadly true, fact of today's advances in... Read More

Print Buying Consultant

Ten Money Saving Tips for Print ManagersDespite their stated desire... Read More

How To Manage A Difficult Employee

Having to manage a difficult employee is never fun and... Read More

Running Successful Meetings - The Key Steps To Getting It Right

We all complain about meetings which are a waste of... Read More

Reprimanding Marginal Employees

THE MARGINAL PERFORMER: Every manager must, from time to time,... Read More