Recently, right before I was about to deliver a motivational speech at a sales conference, the Director of Sales took the stage and began talking about the importance of teamwork and how all the reps needed to work more effectively together. At the conclusion of his presentation, he turned to a large flip chart and turned the front page over.
On this large chart was a picture of a race track and a bunch of horses. In place of the horses heads were pictures of the sales reps faces. Each horse was at different points on the track. The Director of Sales then talked about the race that all the sales reps are in to hit a specific goal and where each one was standing in the race - and who was closest to winning the prize.
I about fell off my chair! Is this the same guy who just a moment ago was talking about teamwork? Well, any thoughts about teamwork flew out the proverbial door.
Incentive programs, whether they are for a sales team or any group within your company, can either be productive or counter-productive. In my opinion, the race horse idea is definitely counter productive and is a good example of a close-ended program. A close-ended program has a specific number of winners and will leave the rest feeling demoralized. Many will give up or not even start the program, because they don't feel that they could win.
An open-ended program rewards everyone who reaches the goal and everyone else who didn't. Here is how to set-up an open-ended incentive program. I call it the 6 D's:
1) Define the goal. What do you want to accomplish? (Reduce absenteeism, improve safety, heighten customer service?) Don't make the goal to complicated and eliminate as many obstacles to success as possible.
2) Decide if the program should be set-up for individuals or groups. Groups always work seem to work better; however, it depends on what the goal is and how many people will be participating
3) Determine the prize. Will it be cash, gifts, or how about a company wide event where all can attend and have fun and the winners receive something nice, but not "over the top?"
4) Develop a system of measurement. How will you measure any improvement? Make sure that everyone who is participating knows the rules ahead of time and that all agree the goal and the system of measurement is realistic. Allowing for participation in the overall decision process is not only effective for morale, but also insures that everyone is in agreement, before the program begins, that the goal is a valuable one, the rules are fair, and the prize is worthwhile.
5) Declare a start date. Promote the program a week or two before the actual start date and get people excited about participating. This also gives participants time to develop ideas and strategies.
6) Dedicate your time to help everyone. Get other leaders at your company involved and have them provide encouragement to all and keep everyone motivated. If all will be rewarded and the prizes are for the actual winners are not to outrageous, then everyone will have fun and know that no matter who actually wins, the goal will be reached, and that you, as well as other who are "higher up the ladder," have noticed what everyone has accomplished - and that you and "the higher-ups" are grateful for their hard work and dedication to achieving the goal.
By following the 6 D's, you will create and open-ended incentive program that will not only allow you to achieve an important goal, but also increase morale, let employees have some fun while they work, and leave the racing to the "real" horses.
Bob Garner is the author of "Masters of Motivation" which has been called a "must read" by business leaders. The creator of a number of CDs that have empowered thousands, Bob writes for numerous business magazines and speaks extensively worldwide on motivation, sales, and success. Sign up now for his free monthly newsletter called "Personal Success" at http://www.bobgarneronline.com
![]() |
|
![]() |
|
![]() |
|
![]() |
In most businesses, when sales are slow or low, the... Read More
Sales resistance is a fact of life for most sales... Read More
Know where to focus. Not everyone evaluates product solutions with... Read More
Many business owners and professionals are appalled at the thought... Read More
"Selling worth doing is worth doing badly ? at first!"... Read More
For the 'big three' automobile sales consultants, the 'employee discount... Read More
We all make mistakes when selling our product or service.... Read More
"There are three kinds of salespeople; those who make things... Read More
If you've been in sales for any length of time,... Read More
Emotion and reason mix very well together to make excellent... Read More
How many names do you have in your business Rolodex?... Read More
1. Determine your current situation. How are you currently positioned... Read More
The first 15 seconds of your approach are the most... Read More
Yes, you heard me right; I said "Date your clients!"... Read More
This issue's topic on sales prospects comes in response to... Read More
In this article, I would like to talk about the... Read More
Prospects have many reasons (you might think excuses) for not... Read More
Do you invite your prospective customers to ask questions ...or... Read More
I have to admit, I have an 'addiction'.Sometimes this addiction... Read More
Since 1990 I have focused on the three primary barriers... Read More
In studies conducted by Motivational Systems of West Orange, New... Read More
What was the quickest rejection you ever got? 2 minutes... Read More
1. Sign-up to win web site awards. When you win,... Read More
Three times I have revisited Turkey after living in the... Read More
There are always some great, fast and easy ways to... Read More
I arrive with about 350 other guys. We smile at... Read More
Most salespeople are under the false belief that the lower... Read More
Traditionally, salespeople look for something in the office that begs... Read More
Training your salespeople to not waste time working unqualified accounts,... Read More
Facilitating the buying process can be very straightforward and fairly... Read More
When I researched the field of using personality inventories to... Read More
Just because we receive a referral, it doesn't mean that... Read More
How do you persuade someone to do what you want... Read More
Think about it. If only it was as easy as... Read More
My wife and I watched the movie Ray a couple... Read More
Canned or scripted sales approaches are rarely successful, because one... Read More
Many years ago, I was the one starting a small... Read More
Here's the thing... you still have to make every marketing... Read More
What does it take to be a WINNER during these... Read More
Sales resistance is a fact of life for most sales... Read More
Here's an idea on how to make reading the daily... Read More
1. Sign-up to win web site awards. When you win,... Read More
1. Be on time. In fact, arrive a few minutes... Read More
Do you find yourself making these kinds of assumptions?- "I... Read More
Have you ever eaten a soft taco? The shell isn't... Read More
Here is a question I recently received from a young... Read More
When sales are down, a salesperson must begin to take... Read More
To be totally in tune with the needs of your... Read More
One of the best books I have ever read is... Read More
Many sellers like to describe themselves as professionals, but what... Read More
Since 1990 I have focused on the three primary barriers... Read More
Unquestionably when the word hypnosis pops-up in a conversation or... Read More
Several weeks ago I asked my Newsletter subscribers to send... Read More
My research has clearly shown that, when it comes to... Read More
If you've driven yourself crazy trying to figure out why... Read More
7 Phrases You Can't Say in Sales (Because They Will... Read More
A lot of energy is expended within selling organizations as... Read More
Salesmanship is the force that moves business. Without it all... Read More
It pays to be specific. I believe that statement is... Read More
What are values? Values are filters that everyone uses to... Read More
Sales drive revenues, and revenues drive companies. Companies, then, are... Read More
Solving people's and organization's problems is ultimately what business is... Read More
I have found that there are two best ways to... Read More
Cross-selling - the art of selling for non-salespeopleCross-selling is the... Read More
Three year old Kara was throwing a tantrum. She didn't... Read More
Mark has an attitude! Mark had worked in an operational... Read More
Sales Training |