Garp! Why Do We Need Quota's?

Consider the job of ball turret gunner for a moment. You would have likely been encapsulated in this under-airplane bubble during WW2 with nothing but a machine gun and no way out unless someone opened the trap door for you. You got to shoot the enemy and they got to shoot at you too but you couldn't hide, you had to depend on the pilot to keep you safe and your ability to get the bad guys before they got you. That job clearly sucks.

Now consider the jobs under the heading of Sales. Here, you get to carry the weight of your company's revenue on your back while everyone counts on you to deliver. You make your number and company bonuses get paid, the holiday party is over the top and everyone gets a 401k match. You don't make your number, none of this happens and you are the scorn of your company (or at least feels that way). Oh, and don't forget executives responsible for Sales are spouses, mothers, fathers, taxpayers and donors and a long list of other things that create pressure on them to succeed. Add to it the fact that suicide and divorce rates in sales occupations rank amongst the highest, as-well-as and not to be outdone by, the nefarious distinction of being addicted to something. 

So why in the world do sales people need quotas? Beyond satisfying some arbitrary goal by finance or a disengaged board/senior executive, I don’t see the reason. Quotas have no effect on sales performance. In fact, based on my experience, quotas are more likely to result in the opposite of what many refer to as "motivation". I once heard a senior executive make the following comment, "Pay ‘em low salaries and give ‘em big quotas to make ‘em hungry." Really? It is the 21st century and we weren’t selling widgets, we were selling complex solutions without a predictable sales cycle. Create more pressure... Hold a gun to their head… Does anyone really think Picasso would have painted more or better with a gun held to his head and someone yelling, "Paint!" I don't think so.

The guillotine approach to sales management dates back to a time when salesmen showed up from large companies and told company representatives what they were going to buy that quarter. Armed with a mission to deliver a number combined with the fear and weakness of the procurement staff, these salesmen were more like soldiers (and were largely responsible for making sales a four letter word). I prefer to call my team business executives who help companies define a path to a desired solution. Creating a vision of a future state that doesn't yet exist is hard work and cannot be sped along with threats. 

I have been in sales management for decades and don't have quotas for my teams. If you can put the right people in the right seats, armed with good products, a defendable and repeatable process, and a culture people enjoy being part of, then I guarantee your teams will excel beyond your wildest imagination.

It’s simple. While delivering on these key elements can be hard, they’re far more effective than quotas.

My Best,