To illustrate Dan’s thesis, let’s look at one of his examples: An MIT study. The study conducted by MIT used 3 levels of monetary incentive for people doing a variety of tasks. When it came to physical tasks, the results were predictable; the higher the level of incentive for the person, the better the person performed. This was also true for any task which was a basic “if I do this, then I get that” carrot and stick model. However when it came to any tasks that were even rudimentarily conceptual, it was found that the higher the incentive was for the individual, the worse the individual tended to perform.

Why might this be? As counter-intuitive as this may sound, Dan actually gives us a very reasonable answer as to why this is. If you give a person enough of an incentive, say a wad of cash, they will immediately be focused on the task at hand and trying hard to figure out the solution. When the answer to the problem is straightforward and logical, this is great. But when a bit of creativity is required to attain the solution, being extremely focused on the problem and trying to think through it as logically as possible is probably the wrong approach. As Dan puts it, a large incentive like this “is the enemy of creative problem solving… because your not picking up on the lateral signals.” Going back to the carrot and stick analogy, you can completely focus on the carrot but not see the other things around you, be it a pot of gold (other great idea) or an 18-wheeler speeding at you (other pitfalls).

How does this have any application to sales you might ask? Well if you think about it, you can apply this to your sales reps and especially to those mid level performers. The monetary incentive has always been there for them, but they continue to perform around an average level. They are either less motivated or not as adept at selling as the other reps. If it is a question of motivation, obviously money is not working. If it is a question of skill, well then should we not try and motivate them to learn and become better at what they do? Maybe a different method of incentive will allow them to see sales solutions more clearly.

Dan sites three factors that lead to better personal performance and engagement:

• Autonomy, or our desire to be self directed.
• Mastery, or our desire to get better at what we do.
• Purpose, which can be the best motivator of all. We as people are both purpose maximizers as well as profit maximizers. While money is all well and good, if you can provide a person with a sense of purpose, it may motivate them a whole lot more than a bonus or commission ever could.

Applying this to the world of sales, you can try to encourage your reps to master what they do. Challenge them by pointing out that this is what they do all day every day and they should take pride in it. Explain that even though they might not believe it, the job of a salesman is mostly autonomous, as they are on their own the majority of the time selling a product or service to every prospect and lead that they receive. That being said you and the other salesman are always there to assist them, which can lead into the common sense of purpose. The entire team is working together toward one goal (or one number), and it is the manager’s job to convey this sense of camaraderie and purpose. If you can successfully convey this, you might just find that this team environment provides enough encouragement and creative thinking for each rep to go above and beyond.

 A good way to do this is to have your reps attempt to outline this plan in writing, telling them to try and work backwards from their monthly, quarterly, or even yearly goals. In a recent article on Sales2.com, Lee Salz discusses how to help your sales reps develop a framework for their sales plan. Lee describes how you can give them some structure for the plan by showing them the different components the plan should contain. These include sections on current accounts, top prospects, tracking sales metrics, sales training, and needs of the sales rep. While listing current accounts and prospects is important, also having the rep outline how he/she plans to retain and develop current accounts as well as how they plan to gain more insight into prospects is just as critical. Down the road when they feel a prospect slipping away, they can turn back to their written plan which can help them determine which steps to take to help win the prospect back.

 Tracking sales metrics is also important because it will allow the rep to see where they are having the most success, and where they are wasting their time. It is essential to have the method of recording outlined in the plan so that the rep can develop a routine for recording the metrics.

 Training is important to have in the plan because this gives the rep a schedule they will have to stick to since their manager also sees their plan and knows when they are due for training and in what areas. While the rep might not like this part, you can rationalize it as a show of good faith to management and executives that they are constantly trying to improve themselves. They don’t necessarily need to plan out every training session that they will attend, but instead they should dedicate a certain amount of hours to training.

 Lastly, the rep should include their individual needs for the time period the plan represents. This can include needs from the company, what assistance they will need from you (their manager), and what potential roadblocks they might face. This will allow you to have time to prepare and remedy any potential barriers that the sales rep might have in the way of achieving his/her goal.

 In addition to these long term plans, consider having the rep write up a general plan of attack for winning over prospects and for retaining customers. Have them outline the process step by step, from how they acquire information about the prospect, to frequency of calling/emailing/leaving voicemails, and finally on when and how to close. These are your sales reps; the more adequately you prepare them the better the chance they, and in turn you as the manager, will have at succeeding.

In my last post I mentioned that it wasn’t enough to simply send your sales reps to training sessions, but that as a manager it is also your responsibility to coach your reps on how to apply what they have learned in those sessions. Grant adds to this point by talking about how it is just as important for the mangers to attend the training as it for the rest of the sales team. This may not always be because the managers need the training, but they do need to understand the context of the concepts so that they may have a better understanding of how to assist their reps in applying the training.

Similar to training, reps need to have the most up to date, relevant information about their prospects and fledgling clients. Incorrect or outdated information is a huge time waster and one of the worst things that can happen while trying to make a sale. When this happens, the prospect will lose confidence in the rep’s level of effort and in general their ability to deliver a helpful solution. Without the correct tools and information to approach a prospect, the sales person is going into a sale blindly which will usually result in a failed opportunity.

Frequent training on relevant topics plus up to date information and prospecting tools is a surefire recipe for success when it comes to sales.

 Sure, you can constantly replace members of your sales team if they are underperforming – but wouldn’t you rather foster a productive environment? An environment that promotes loyalty and shows appreciation to team members will motivate them, and encouraging them to work harder will ultimately make you more money.

Paul goes on to discuss how important it is for management to regularly give or send their reps to training sessions. In addition, proper coaching and support for the team is a necessary follow up for the training that they may receive; the training will teach them the concepts but coaching is necessary to show the reps how to apply those concepts.

In addition, managers need to make sure their sales team has the proper resources, such as the right prospecting tools. Without the right information, there’s no sale to be made. In terms of prospecting or selling tools, make sure your team is getting the most accurate, up-to-date information available.  A sales enablement tool that incorporates social media, or triggers events is the most effective because you can keep on top of the mot current information and use that as a springboard to warm up your sales call.