Behaviour Orientated Management Versus Performance Orientated Management

Few organisations are managed on a purely behaviour-oriented or performance-oriented basis

. In most company sales management and sales assessment systems, one or other form of management predominates. This bias has a major influence on the way sales training is delivered to these organizations.

Behaviour-oriented management systems require a more concentrated scrutiny of sales people by their sales managers and a larger number of subjective assessment criteria. This system is usually linked with a high fixed salary share.

Performance or result-oriented management systems are characterised by simple and objective assessment criteria (eg, turnover attained or cover contribution). It is therefore less work-intensive for sales managers and usually has a relatively high, variable fixed salary share.

Advocates of the "soft" behaviour-oriented management style always maintain that this style of management leads to: An increased competence. An increase in team orientation. An increased sense of responsibility. Increased levels individual motivation. Improved levels of planning. An Increase in client orientation.

144 companies were surveyed in order to establish whether these characteristics corresponded in reality. It yielded the following interesting results: A behaviour-oriented management system does indeed induce increased competence and teamwork. Only a weak link was found between an increased sense of responsibility and this management system, as well as better self motivation on the part of sales people. However, there was a distinct improvement, on the other hand, in planning and client orientation. The popular view that a behaviour-oriented management system has a positive effect on the performance of salespeople could, however, not be confirmed. Unsurprisingly, there is a clear influence on the skills of sales people: Those who are managed under a behaviour-oriented style formulate better presentations and are more skilful at concluding sales negotiations.

What effect do both management systems have on salespeoples' performance? Salespeople under a behaviour-oriented style of management achieve their goals more often than their counterparts under a performance-oriented style of management. According to academics, this is attributable to their greater competence and presentation skills due to a higher level of input in regard to their behaviour such as sales training.

In general, there is the following important interrelationship: A performance-related style of management certainly leads to a direct improvement of measurable results (turnover, cover contribution), but does not induce increased competence and sales skills like the behaviour-oriented style of management.

Behaviour-oriented management, on the other hand, has no direct effect on measurable results.

The direct influence it has over the entire result, by virtue of the greater proficiency and superior sales skills it induces, is at the end of the day more efficient than the direct management of results brought about by a performance-oriented managerial style.

To put this in casual terms, salespeople under a performance-oriented style of management certainly chase turnovers more intensively, but that, as a result of their lack of expertise and sales skills they are less able than their counterparts under a behaviour-oriented management style.

A management style which is excessively performance-oriented is therefore not only less efficient, but in certain cases it can also be more expensive than a behaviour-oriented style of management. This is particularly true during a recession, when it is far more important to nurture existing clients than go on a "hard selling" offensive.

As a sales manager, you should place less emphasis on turnover lists and accompany your salespeople on field visits in order to assess and to give them one to one sales training. This certainly entails a lot more work for you but is more effective for your sales success rate at the end of the day!

by: Richard Stone

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