Confidentiality vs. Transparency ?

You are managing a team of Chinese salesmen, and are looking for a good way to motivate everyone to sell more. One tried & true method is a sometimes a bit tough for new sales managers or managers who are not sales specialists ? posting everyone?s sales results where the rest of the team can see them.

Publicly posting sales results seems to run contrary to traditional Chinese management techniques, which usually put a premium on confidentiality and control of information. It?s also a bit harsh for those who aren?t in the top 10% of the rankings.

This method, which is very common in the US and international sales departments, has some definite advantages.

Advantages to Posting Sales Numbers

The most important benefit is that this kind of transparency encourages everyone. Strong producers like the recognition and are pushed by the sense of competition and recognition. Newcomers get a guide to what is possible and what their goals should be. Weaker salesmen who are producing enough get a clear choice ? they can work to improve their numbers or begin setting their sites on a career that is more suitable for their talents and personality.

Sale managers have another reason for posting sales results publicly ? it takes the mystery out of the sales departments, creates an open environment and helps control negative rumors that have the potential to cause real problems. If the results are posted, they lose their power to cause problems, secrets and rumors.

Another benefit of publicly positing results is that it helps create a structure within the department. If the sales leaders are publicly acknowledged, then it serves to create automatic mentors and informal sales leaders ? which a smart manager will use to base his decisions about promotions and management development programs.

Pitfalls and Warnings

Is there a downside? Yes, there can be. This method is a bit aggressive for some organizations, and will definitely put a lot of pressure on the sales team ? and the manager who is also having his performance revealed for all to see. Some salesmen are very uncomfortable having their results made public for all to see.

Posting results has been known to cause resentment and competition between members of the sales team. If there is already tension or ill-feelings in the department, you can bet that this publicizing of sales will add to it.

It is also possible that the postings will be a source of embarrassment for older, more experience salesmen that aren?t performing well.

Final Word

Publicly posting sales results is part of an open, transparent management system. If the rest of your management program is based on secrecy or confidentiality, this simply won’t work. While it is very effective for young & growing teams, managers have to realize that to be effective this must be a regular, systematic process that is a daily part of the sales process at your company. If you start changing the rules when company sales dip, you will only make your management challenges worse!