Friday, July 4, 2008

Why Change the Target?


What you set should happen is ought to happen only if you make it happen. Go on... make your dreams come true!


Hello everyone! It's training day once again.

Are you concerned about reaching your company's sales target for the year? Are you serious about achieving your personal goal within the timetable you set for yourself? What if the present reality does not give you the expected figures as forecasted? What if the current market and economic forces do not seem favorable for your business operations? What if you are racing against time but still lagging behind the target or goal you want to achieve?

We have already learned to accept as established truth that if your present performance does not bring you closer to your goal, you have to change course and come up with new strategies. The common practice in business, especially in sales forecasting, is to change and reduce what has been set as an original target to make it appear more realistic and achievable.

This scenario happened in a meeting I attended last Tuesday night with the members of the executive committee of the company I presently work with. In anticipation of the upcoming semi-annual sales performance review that we will hold in Boracay this month, I posited this question for the members of the top management to deliberate on: Shall we adjust our annual sales target or not? And if ever we change it, what might be the effect in the performance of our sales people?

The deliberation started without yet the presence of our chairman who is our official presiding officer. The exchange of ideas and opinions was highly spirited. We actually had an equally divided house. We end up establishing two schools of thought. The first group favoured reducing the target, arguing based on established management principles like SMART planning, forecasting, analysis of historical data and other obvious or ‘reality-based’ reasons. One of our department heads even offered a mathematical smoothing formula to come up with a properly calculated and realistic figure that we can possibly achieve. The arguments were quite tough to dispute and seemed valid on one side. It made the discussion even more intense.

The second group wanted our target to remain as is. They took side with my insinuation on tapping the unlimited potential of our people and focusing on the goal rather than the present result. This is where I proposed a program that is intended to help our sales people cope with the challenge—how to manage fear, eliminating blocks to success, performing beyond the comfort zone, skills enhancement, doing more and acting more. The group saw the beauty of the argument that by sticking to the goal and heeding with the challenge on, a great possibility rather than predictability is in store for everyone.

The stalemate went on until our chairman arrived. Opposing arguments were raised again by both sides. And then, came the moment of truth...raise of hands. We counted the votes. It was a deadlock!

Our chairman was placed in a very uncomfortable situation. He has to put forward his own personal decision. His decision shall break the tie.

The next 30 seconds became a thrilling moment of silence while our chairman was walking to and fro inside the boardroom. He was thinking seriously, analysing every point raised, careful and sensitive about what everyone in the room might be feeling at that very moment. Not one has the slightest hint on what words he would utter.

You are in for a little suspense and challenge here. If you were our chairman and put on the spot in the same situation above, what will be your decision?

Give me your comments and I will share with you how the story ended.