Q1-2011 Close The Book
Fame or blame.
I was by nature more focused on the trends of the overall business rather than a quarter at a time but I quickly learned to adapt when compensation plans rewarded "working the plan."
Working the plan:
Well. . you might ask. .
How does one work the plan?
How does one work the plan?
Quotas are loosely based on history.
Corporate bean counters take last years numbers or a compilation of several years and factor an increase for the year.
This target is divided into the 4 quarters and each sales person has their share.
One could argue that this forecast has little bearing on reality but one would be arguing to the nearest wall.
Setting a forecast is a mystical experience. It's wishful thinking mixed with fairy dust.
It's the fear of failure dashed with a tinge of pie in the sky.
It's destiny combined with whistling in the graveyard.
As that NUMBER gets handed down by regal powers unfazed by trends, demographics, economic influences or weather related influences; the game is to make that number and than some.
The reward is looking good on comparison charts and hopefully hitting the comp plan numbers for a bigger paycheck.
If you are higher up the ladder it means you are safe for another quarter particularly if your results are better than some other manager of another sales group that did worse than you!
It's like getting chased by a Tiger.
You don't have to be the fastest guy in the world; just faster than the guy running next to you!
Someone maybe thinking that to succeed you work harder, make more sales calls or figure out some never tried method to increases your sales.
Or. .
You can announce a price increase for early April. make that increase a bitter enough pill to swallow and hope that your clients will order more in Q1 simply to avoid the "pain" of the increase.
Shucks; if you are creative enough you'd give them one more order chance at the current price in April just to get off to a better start.
You'd hype up that price increase loud enough so that anyone who had ears would understand the advantages of ordering inventory they didn't need simply to make more margin in the near future.
You could run a special promo that encouraged larger orders in the first quarter to make the numbers look higher.
You could delay orders in December and enter them in January if your last year numbers were terrific or horrible. If they were terrific it wouldn't matter if your billed in December.
Being terrific-er has no plus side.
If you were a loser in the previous year a slight increase in December wouldn't save your bacon; or your neck.
No. .
Don't miss those days!
Don't miss those days!
Posted by Mike Feldman at 3/27/2011 11:06 AM 
Categories: Humor Unusual Weird, Consulting Coaching
Tags: Q1 2011 close the books
Categories: Humor Unusual Weird, Consulting Coaching
Tags: Q1 2011 close the books
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