Why sales goals don't work.

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I've been dealing with the issue of sales goals for decades, and have come to the conclusion that, for the most part, they're useless in motivating people to change their ways and achieve more for themselves. When you give someone else a goal to achieve it's your goal, not their goal, so sometimes some people achieve it, but many don't, and becaue there are seldom any sanctions for not achieving these goals, except in extreme cases,there is no compelling reason for people to achieve them.

When there is a bonus attached to achievement of the goal, many people view it as they would a lottery ticket; maybe I'll win, maybe not. If I make it, that's great, and if I don't, it didn't cost me anything anyway.

The real reasons that sales goals don't motivate people are:

1. Money isn't a motivator to most people,even though they say it is, and you think it is. But it sure is a demotivator when continued failure becomes the norm.

2. If you doubt this, look at the whole idea of commission sales. It is based on the thinking that because if you sell more you earn more, so people will sell more. How's that been working for you? Id every salesperson performing at the top of the scale?

3. If, like many stores, you pay a bonus when goals are achieved, it's the bonus they're after, not the goal. Another "lottery ticket" thing. But my experience shows that salespeople achive their company-assigned goals, on average, about 55% of the time. Not a great record of driving performance.

4. This is the BIG one; it's not the goal that has to motivate people, but rather the process of getting there. In home furnishing sales, the end result of making a sale really does affect the quality of life of the customer. It has to be this that drives salespeople to help customers buy so they can enjoy the good feelings that new furniture gives them. I see that far too many salespeople are not connected to this aspect of their work.

If salespeople are not connected to the outcomes for their customers, they are disconnected from the underlying purpose of their work. When it's all about the company financial goals, the company is disconnected from it's real value to its customers as well.

5. Your goals are not their goals. I have never experienced a situation where business owners listen to what their salespeople tell them they want to earn, make that the goal, and coach them to achieving it. I have also seldom seen a situation where the salespeople's goals for income aren't far higher than the company's goals for performance. This disconnection from the wishful thinking of people for their own benefit puts whole company cultures in the position of continuing failure. It's in the background, but it is a factor in your company culture you're probably ignoring.