For some time now, I had on my content agenda to establish a short list of the main reasons why small, medium, and large corporations “err” when structuring and managing their sales teams. After several seasons collecting information and testimonies from professionals, and without intending to make the causes extensive and infinite, I have concluded with the following factors, reasons for the decrease in performance of commercial teams.
1. Lack of Motivation
It is the main factor affecting many commercial structures.
It can originate from:
Structural deficiencies in the company.
Inability of leadership from management.
Lack of organization in corporate design.
This generates a climate of apathy that negatively impacts productive results.
2. Vertical Structures
Although increasingly less frequent, there are still corporations with rigid hierarchical models.
These structures:
Centralize decisions in a single direction.
Limit the autonomy of the sales team.
Exempt employees from responsibility in decision-making.
As a consequence, reaction capacity to business opportunities is lost due to bureaucracy.
3. Lack of Internal Promotion Programs
Many companies prefer new hires instead of promoting internal talent.
In Spain, there are still professionals who have been in the same position for over 10 years, with no opportunities for promotion.
This generates two key problems:
Talent drain.
Comfort zone with no evolution.
4. Absence of a Strategic Commercial Plan
There are still companies without strategic business plans.
Worse yet, there are employees without a clear roadmap, with a short-term vision and no defined objectives.
This causes:
Disorganization in the sales team.
Inability to meet established objectives and budgets.
5. Absence of Incentive Plans or Unattainable Plans
Despite the advances, there are still companies that:
Do not have incentive plans.
Offer variable compensation plans that are unrealistic or out of the market.
A well-designed incentive system motivates and improves the performance of the commercial team.
Conclusion
Commercial teams are the most important weapon of a company. They are professionals who master the market, know the buy and sell transactions, and handle the corporation’s business volume.
Not addressing these problems is falling into the greatest error in terms of productivity and business growth.
