CASE STUDY: Business Analysis
The VP of a food distribution company contacted Ready2ACT for sales training because the company was not meeting its revenue goals. When we asked why (to identify the problem) they wanted sales training (a solution), the VP said that 10 out of 12 salespeople weren’t hitting their sales quotas. When we again asked why, the VP admitted that they didn’t know. The salespeople had established clients, good products, and plenty of incentives. So, Ready2ACT suggested that we investigate why the sales people weren’t meeting their quotas (find the root-cause of the problem). If the reasons had nothing to do with their sales skills or knowledge, then sales training would simply be an expensive waste of time and money. The food manufactured agreed and they contracted us to do an “operational assessment.” Ready2ACT designed a questionnaire with the permission of the VP and President, then interviewed the sales people. We guaranteed that their answers would be kept confidential, so they could speak freely to us. Not once did Ready2ACT ask “Why aren’t you meeting your sales quota?” After all, their management team was already asking that question and only got excuses. We asked direct questions in relation to their job context.
The result?
The sales people felt devalued by their management team (yes, the very people that hired Ready2ACT to do the assessment). Of course, the VP and President were shocked. They certainly valued their sales people and had no idea that they felt that way. The management asked Ready2ACT to observe their staff meeting and give them feedback privately afterwards. We noticed that the way they were communicating was coming across as derogatory and accusatory. If you know anything about motivating sales people, most of them want to feel good about what they are doing and receive praise for it. They weren’t getting any positive encouragement. There were 2 out of 12 people making their quota. These folks were motivated solely by money and challenge and weren’t bothered by the patriarch management style.
So, we gave the management team some specific feedback on how they could communicate differently to get the results they wanted: increased sales. They made changes and, within 2 months, 10 out 12 sales people were making the quota. The other 2 probably weren’t a good fit as sales people. In the end, Ready2ACT recognized that the food manufacturing company was jumping to a solution/conclusion without understanding the problem. We helped them find the root-cause, recommended a solution, and solved the problem all for a lot less time and money then implementing the wrong solution (sales training). This is the power of proper Business Analysis.
