The Problem at Hand

If you are a sales leader, there has to be goals for your salespeople. And they have to be the right goals.

No two ways about it.

Why?

There's no better way to motivate a salesperson than to have clear goals, to lead them to achieving those goals, and then to celebrate enthusiastically when they hit them.

Sounds good. Except: for those of you who've done it before, you'll agree with me that it's a LOT harder than it looks!

  • There are books about it
  • There are classes you can take
  • There are even consultants who are hired to do it for companies

You can go through all of that and still, it's hard.

In my time as a leader I've caught myself spending HOURS over spreadsheets, trying to figure out what good looks like on a sales desk. And I've revised, and tweaked, and revised again.

I've agonized when no one was hitting goals (are they too high? are they all going to quit? is it me?)

I've agonized when everyone was hitting goals (are they too low? are we leaving money on the table? is it me?)

There's sooo much to say about goal setting.

In future articles we will discuss other important aspects of goal setting for leaders, but for today's article we are only focusing on WHO SETS THEM.

The LeDev Advice

During my years as a senior sales leader this question came up a lot, and depending on whom you ask you will get varied answers. Here's mine (drumroll, please):

Don't hate me for this - I'm going to give the all-powerful and supremely annoying answer : IT DEPENDS

There is a lot of literature out there encouraging participation in decision-making and for good reason - having your salespeople participate in decisions can increase buy-in and as a result follow-through.

But interestingly, studies show that participating in setting their own goals doesn't result in better performance. It CAN work for some, but not for most.

Keep reading, I've got more to say.

The key is to know your people and adapt your style accordingly.

So How Do You Know?

Here's my formula for you:

First, Check Yourself

Do you have the right metrics and can you track them correctly?

  • Have you properly established the right goal metrics (for example: # of dials, # of email campaigns, # of proposals)
  • For each of those, do you have a clear way to track them?

Have you properly presented the metrics to your salespeople?

  • Do they understand why they matter?
  • Do they fully buy in on their importance to driving results on their desk?

If you can't honestly answer all those questions with a "duh, yeah, Eleonore", then you aren't ready to worry about WHO sets them. Take time to work on those first then move on to the question at hand.

Next, Evaluate Your Salesperson's Affinity for Goal-Setting

When it comes to goal-setting, sales reps typically fall into one of four buckets. Get to know them well enough to see where they fall and meet them where they are.

The newbie
  • Newbies, for many reasons, should never set their own goals. They don't know what they don't know, they aren't confident (or maybe over confident), and they need you to show them the path
  • Even if you hire a seasoned salesperson, they should take time to acclimate to your culture, methods, and expectations before they can confidently set any goals themselves
The "I don't care about numbers" salesperson
  • You will have a few salespeople who don't even want to see their numbers, or who really don't care much how they come together. They just want you to give them the numbers and go
  • If you have one of those, don't fight it. Take the time to set their goals then sit down with them to review
  • Ensure understanding and buy-in
  • One key point here: They may act like they don't care, but trust me, they do. So set them responsibly, track them, and report them out, just as you would anyone else
The salesperson who is unsure about the numbers
  • Most salespeople fall into this bucket
  • They understand the numbers, buy in, and follow them, but they aren't confident about setting their own
  • With this group, I'd recommend pre-setting them before you meet
  • During the meeting, share your preliminary thoughts and your "why", then ask for their thoughts
  • Framing it this way takes the burden off of them but gives them ownership, too. Win-Win
The numbers junkie
  • This is the one group who could set their own goals
  • If your salesperson loves their stats, watches them closely and lives by them, have them bring their numbers to you
  • Before you meet, come up with your own numbers and be ready to compare theirs to yours
  • Ideally, theirs are the same as or more aggressive than yours. If that's the case, take theirs and off you both go!
  • If theirs are lower than yours, take the time to reset on the "why" and discuss each one long enough to come to an agreement
  • One key point here: if you decide you want them to come with their own, you need to be ready to use their numbers. Be careful of throwing out theirs for yours too quickly. That won't feel good at all.

What if I don't know which bucket they fall into?

  • If you are new to your sales rep and aren't sure which type they are, I'd highly recommend setting the goals first. Then, make it a point during your first goal-setting meeting to see where they fall by testing their understanding and observing their engagement level.
  • Another option is to give them a choice and see how they react. They will appreciate that you asked and will be more motivated to hit the numbers simply because you respected them enough to ask.
Final Thoughts Before We Adjourn

Back to the beginning - for most reps, setting the goals for them is better than having them set their own goals.

But really, the ideal is to set the goals WITH them.

  • Do the work up-front yourself. Be confident in the "why's" before you present them
  • Meet with them to present and discuss - don't just email them
  • Take a collaborative approach when presenting the numbers. Let them ask questions, ask them for their opinion, make sure they buy-in, and leave them feeling confident

So back to the beginning - the secret is to get to know your people and adapt your style accordingly. This is definitely not one of those "one size fits all" scenarios.

Doing that well will lead to more trusting relationships, better buy in on the goals, and ultimately better sales results.