October 2003 - General Managers are
being asked more and more often to assume responsibility for management
of the sales staff. It is a job for which they have received little
training and for which they have a number of challenges.
Five years ago, when demand was high and the sales function was relegated
to answering the phone and taking the order, it was relatively easy for
General Managers to keep an eye on things in the sales department.
Unemployment was at historic lows and in order to keep positions filled,
we were reluctant to expect too much or discipline an under performing
employee. There was a tendency to keep the chair warm rather than
let a position go unfilled.
Times have changed both in terms of demand of demand and the employment
pool but often the attitudes of management have not. Sales
people represent a distinct management challenge. The good ones are
bright, aggressive, able to sell their managers as well as their clients
but they are also very human.
They like most other employees will take the path of least resistance,
need to have expectations made clear and have objective standards of performance
by which they are evaluated. The fact of the matter is that no one
does what no one checks!
Sales people (like everyone else) do not perceive the importance of
job duties that are not monitored by their supervisors. In addition,
there has to be the WIIFM factor, �what�s in it for me�. If an employee,
sales or not, is going to take home the same paycheck whether or not they
achieve their goals, why would they do more that the minimum requirements?
GMs have a particular challenge in that they work long hours and very
closely with their sales staffs, especially the DOS. It is difficult
to maintain an objective and professional distance that allows for the
kind of management that gets results. We all have a human need to
be liked -- leadership is about respect.
There are a few simple steps you can take to make your monitoring of
the sales effort more effective. They may also make the sales effort
more effective.
Refrain from Cronyism � Simply put, this means do not get too
close to your DOS or any member of the sales department. (You wouldn�t
compromise your ability to lead the other department heads by too much
socializing � or would you?) It is difficult with a DOS who has worked
for you for a long time. It is also difficult with the long hours
required working in close quarters in this industry. There has to
be a line of familiarity that you don�t cross. It negates your ability
to lead and manage effectively. You know when you have crossed the
line. Weekly golf games are probably too much as is frequent social
sharing of coffee or drinks. I know a GM whose VP of Sales, the VP
of Ops and TWO consultants indicated that the problem with the turnover
and lack of effectiveness of the sales department was the DOS. He
still didn�t listen. When this particular DOS took another DOS position
with another hotel within the company, he lasted less than two months.
The GM had worked with this DOS for several years, they played golf once
a week and he frequently had the DOS and spouse for dinner at his house.
It totally blinded him to the persons deficiencies in job performance and
the DOS took complete advantage of the situation. |
Have regular sales meetings with a fixed agenda.
It should occur at least once a month, preferably once a week at a time
when it does not interfere with Prime Selling Hours. (You do know
what those are, don�t you?) This provides a structured environment
in which you can ask the �tough� questions without sounding picky and irrational.
I have had GMs say to me �but we talk to each other several times a day
� I know what�s going on.� To a sales person, if you just casually
ask a question about an account or ask for numbers, they are likely to
feel that you are just in a bad mood and it will pass. In a
more structured environment, you can ask specific questions about accounts
mentioned on reports, question the content of numbers on the PACE report,
etc.. There is an old story, perhaps apocryphal, that Kurt Carlson,
the founder of Carlson Companies, used to ask his Division Heads to bring
their financials on overheads. He would project pages on a screen
and point tone specific number line item on the page. He would then
ask what was in this cumulative number. He figured if a Division
Head could specifically outline what this represented, they knew and could
do the same on any line item in the reports. |
Take a course in sales. If you come from another discipline
in the industry, learn about basic sales. Read a book, take a course
� take a course in sales not related to the industry. Many of the
best hotel sales people I know come from outside the industry where they
were on a commission basis at one time or another. Remember when
I said if a sales person (or any other member of the staff for that matter)
draws the same paycheck whether or not achieve call and or revenue goals
� why would they do ore than necessary to achieve their goals. (A
great argument for incentives for all departments but that is another newsletter.)
There are many fine resources for hotel sales available especially now
when that function has become so challenging. We hope this newsletter
is one of those. Sales people who have worked on commission �get
it�. |
Set realistic goals and involve them in the process. Goal
setting should be an objective process. When you let them know what
they need to produce and why, then involve them in figuring out how they
are going to get there, they understand and ideally buy into the plan.
If they don�t buy in they will begin to flat their resume. I have
had sales people whine to me about unrealistic goals. I have been
in that position myself. We all have choices � if they feel it is
unattainable, they can exercise their choice to walk. If they are
really good sales people who feel that unrealistic goals have been foisted
upon them, they will do exactly that. You need to let them know that
if you feel the goals set by the corporate office are unattainable, you
will go to bat for realistic goals given the market circumstance.
You have been around the block enough times to know the difference between
a challenge and the unattainable. |
Be supportive but expect results! Your head is on the
line here too!. If your sales staff is making a ton of calls but
producing few results, it could be a skills problem. Offer them some
training. When a reasonable amount of time and training effort has
passed, don�t be afraid to make the tough decision. The fact of the
matter is they are uncomfortable at their non-performance and may be happier
and more satisfied in another position. As a relatively new
DOS, I had a GM who I admired and respected indicate to me that I had to
deal with a non-performing sales manager. I argued, I whined until
he said, �Carol, one of you is going � it�s your choice.� Message
received. |
I could continue but that is a whole seminar. The message is don�t
expect to be loved by every member of your staff every day � settle for
respect on good days!
Carol Verret, Owner of Carol Verret Consulting & Training, is
a twenty-year veteran of the hotel industry. She arrived in Denver in 1984
in the midst of an economic downturn and quickly established herself as
an expert in sales and marketing in hotel turn-around situations, applying
her formula for REVPAR improvement. To learn more about Carol Verret, Consulting
and Training, visit her web site at http://www.carolverret.com
Comments and feedback are appreciated and can be communicated via phone
at (303) 618-4065 or email at [email protected].
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copyright © Carol Verret, 2002-2003 |