Question

Imagine that you manage a high-volume electronics store, Electricity, Inc. Each of the salespeople has a very ambitious monthly sales goal; for the store to meet its overall goal, all of the salespeople need to meet their individual goals. Apply each of the four keys to a successful control system to Electricity, Inc., explaining how you would implement an effective control system.

Answer 1

To implement an effective control system at Electricity, Inc., we can apply the four keys to a successful control system. These keys are:

1. Establish Clear Objectives: Clearly define the sales goals for each salesperson and the overall store. Make sure the objectives are specific, measurable, attainable, relevant, and time-bound (SMART). For example, a specific goal could be to increase sales by 10% compared to the previous month. Communicate these objectives to the sales team and ensure everyone understands what they need to achieve.

2. Measure Performance: Implement a system to track and measure the sales performance of each salesperson. This could involve using sales tracking software or CRM (Customer Relationship Management) tools that capture important metrics such as total sales, conversion rates, customer satisfaction scores, and individual sales targets. Regularly review and analyze the data to identify areas of improvement and recognize high-performing individuals.

3. Provide Feedback: Regularly provide feedback to the sales team regarding their performance. This can be done through one-on-one meetings, performance reviews, or team meetings. Recognize and acknowledge achievements when salespeople meet or exceed their individual goals. Constructive feedback should also be provided to help salespeople improve their performance in areas where they may be falling short.

4. Take Corrective Action: If salespeople are not meeting their goals, take appropriate corrective action to address the issues. This could involve providing additional training or coaching to enhance their sales skills, identifying and removing any barriers or obstacles hindering their performance, or reassigning resources to areas with greater potential for sales growth. Regularly evaluate the effectiveness of the corrective actions and make adjustments as necessary.

In summary, implementing an effective control system at Electricity, Inc. involves setting clear objectives, measuring performance, providing feedback, and taking corrective action. By following these four keys, you can create a system that motivates and guides the sales team toward achieving their individual goals, ultimately leading to the store meeting its overall sales objective.