Knowledge Work Productivity LO29426

From: Jason Smith/EIG (Jason.Smith@economicalinsurance.com)
Date: 10/31/02


Replying to LO29394 --

During my career, I have sold products and services, plus done some agency
recruiting. Based on experience, here are the some predictable behaviours
that arise from rewarding sales people differently -- typically based on
revenue generated individually -- than other folks in an organization:

 - They become focused on selling what they need to sell to make money.
Asking them to do anything else -- including meeting to discuss better
ways for their group to work -- is likely to meet with resistance.
 - They will become more open and interested to modifying product or
service offerings to satisfy clients. However, they will run into
conflict with folks who are compensated less for their individual
performance (designers, developers, manufacturers) who are less interested
in meeting the needs of one individual customer.
 - Their frustration levels with the above two points will increase to the
point where a significant percentage of them leave for a so-called
"greener pasture" some place else -- including in the organizations of
competitors.

It has been my experience that rewards and incentive systems are one of
the most leveraged ways to create and undo organizational dysfunction.

----------
Jason Smith, Process Analyst
Economical Insurance Group
(519) 570-8500 x2302
Jason.Smith@economicalinsurance.com

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"Jason Smith/EIG" <Jason.Smith@economicalinsurance.com>

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