Harry Oates was promoted to sales manager in order to replace Samuel Golberg that suddenly died. Capital District is located in a region where sales represented a significant weight on total sales of the company. However, according to Capital District data, the previous sales manager and its sales team, weren’t performing as well as supposed. Harry has a tough task to motivate and organize his new team in order to perform at their potential.Analyzing the Capital District it is possible to identify some problems. Firstly I am going to describe those problems and then, I will give some recommendations. 1.
Diagnose the key problems you can find in Milford’s Sales system. Poor Management by previous district manager: * Low moral; * High turnover, when Milford’s turnover in low; * Lack of control and discipline. Poor Performance by district salespeople: Sales were lower than its potential, for instance the district has 5,7% of the potential sales in the nation, according with Sales and Marketing Management Survey of Buying Power, though the district only accomplished 4,8% of Milford’s sales; * Sales Growth also didn’t followed the country or region tendency: from 1980 to 1982 Milford’s sales’ growth was on average 11,1%, the region average growth was 12% and the capital district average was only 6,5%; * Milford’s average sales per salesperson in US was $2,040,000 when the average in district only represented 62% of US average.After look at the district’s eight salespeople, Oates found four problematic: * Sonny Caplan – The results about his performance were not good enough.
He dedicates most of his time to open larger accounts, without much success. Besides that, neglects some routine servicing to existing clients and gives them little attention. * Doug Eaton – He is slowing down because of his age and health conditions. * Tom Furness – Recently he had some personal problems that were affecting his performance. * Zeke Gibson – Has a good performance, however was not concerned to improve.Lack of support from regional manager * Gave to much freedom to run district to someone without experience in this task; 2. How Would you address these problems? First of all, since Oates is a new district manager and doesn’t have any kind of connection to his sales team, he should try to create a bond between them so they can know, trust and respect their superior. In order to motivate sales people, Oates can show them the actual point of situation (poor performance) and what they can achieve if they work at their potential.
He should challenge them to achieve their potential or even more by creating targets, so they can be motivated by achievement. He can also give extra monetary reward to ones that achieve more than their potential. It’s also important to control expenses and efficiency – if a seller is making too much expenses and his performance is lower than expected, he must be called to attention. For instance, if a seller’s calls are not been efficient: Oates, through seller’s calls reports can see what is wrong, and help him to improve his technique.Concerning to the four problematic salespersons, in my opinion Sonny Caplan should be fired, Doug Eaton should be assigned a trainee, probation should be given to Tom Furness and specific tasks descriptions should be given to Zeke Gibson. I wouldn’t recommend to decrease the salary to anybody since the company doesn’t have this policy. * Sonny Caplan, works for the company for two years and since the beginning his performance hasn’t be so good.
He had a good territory however he didn’t adapt.Caplan had already enough time to show his worth and he didn’t, so it’s time to fire him. * Doug Eaton worked for the company for 30 years and always performed well on his job. However he is losing his capabilities because of age and health. He refuses to decrease his territory, so my suggestion is to put a trainee to work with him: he would pass his experience to someone and at the same time he has some help on his tasks. The trainee then will be able to replace Sonny Caplan territory and then another trainee to replace Doug Eaton when he retires. Tom Furness, in the past had proved to be a good salesman, but recently, had some personal problems that had been affecting his actual performance. My recommendation is to give him a second chance, since he had proved in the past that he has the capabilities to perform the job.
This second chance is a probation in which he has 90 days to bring his performance back to normal, otherwise he will be fired. * Zeke Gibson, he has been in a good performance but recently has been losing his interest on Milford.He has an excellent relation with his costumers, however doesn’t make great efforts to get new ones.
My proposal would be to give him specific tasks, for instance, tell him which exactly clients he should look for and ask for a report in which he must explain how was the approach to each of those possible clients. Finally, Oates should ask for more support from regional manager, Ted Newbury, especially at the begging, since Oates lacks on experience on his new job.