Tuesday, June 23, 2009

Alignment Equals Growth

Good old Yogi Berra said "you can see a lot if you are looking". A close cousin to that is "you can hear a lot if you are listening". So, I'm at another airport gate, awaiting my flight to Cleveland, where I will share business growth ideas with entrepreneurs. Here's the conversation snippet I overheard from a traveling salesperson. "Our backs are against the wall and we need the sales numbers. People are riding me hard. So, let's put the lower price on the offer, even if we lose a little on the deal; at least we are showing some sales numbers". Ouch. Suggestion-be sure your sales people's compensation plan is tied directly to profitability of the sales. The concept is called "alignment". If the people generating the business are not directly aligned with the profitability of the company, then overall profitability is at serious risk.

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