HOW RIGHT SHOULD THE CUSTOMER

BE?

Presented By:
Sonal Gupta
Roll no-16114269
 The two control management systems :

• Outcome control (OC) systems - (Customer is King!)

• Behavior control (BC) systems - (Manager is King!)

 Outcome control system

• Emphasize on end results rather than how it was

achieved.
• Sales people has high autonomy.
• Compensation is determined by customer’s behavior.
• Relationship with customer is more important than
company (managers).
• Minimal contact of managers with their salespeople.
• Rewards are tangible.
 Behavior control system

• Emphasize on process how end result is achieved

(Reports) .
• Management measures- what sales people actually do,
can do and actually are.
• Evaluation standards are often opaque.
• The bulk of compensation is fixed and the variable
component is tied to- attitudes, behaviors, and
competencies that management prizes.
• Relationship with company is more important than
Customer.
• Factors such as collegiality, training, potential for
promotion, and office perks matter more.
Ways to design performance criteria for sales
force
• The policies and practices that make up a sales force
control system can be categorized into eight
components.
• Evaluation of sales person was made on these
components.
– Focus of performance criteria
– Number of performance criteria
– Degree of management intervention
– Frequency of contact
– Degree of management monitoring
– Amount of coaching offered
– Transparency of evaluation criteria
– Compensation scheme
 Combination of two system’s

Many companies function quite well somewhere in the

middle, where the power of the manager and the power
of the customer are in some sort of balance.
In a company with mixed system:
– Sales force follows outcome control system
– Managers follows behavior control system
– Collectively, such changes can spell disaster
– Components of the sales force management system
start migrating to different extremes
– Lack of coaching and monitoring lead to inconsistency
(Misalignment)
 Inconsistency in organization

• If your system is consistent, the points should fall roughly

in a straight line otherwise zigzag line.

• There are three common patterns of inconsistency

shown in graphical representation:

– Ever-present manager (interventionist managers)

– Sublime neglect (lack of coaching)
– Black hole (opaque evaluation methods)
Which kind of control system is
appropriate for your company?
• Outcome control system is right if:

– Organization says customer is king

– Involvement of customer in problem solving
– Sales is open
– Customers trust the salesperson
– Many ways known to close the deal
– If your internal culture cannot accept that someone
who is “just a sales person” might be autonomous and
wealthy, OC is not for you.
– Excellent accounting system
 Continue..

• Behavior control is right if:

– Sales people lack experience (insurance companies)
– You need to protect your brand (pharmaceutical
&chemical industries rely on this system)
– You have high non sales priorities
– It’s hard to assign sales credit (efforts contribution)
 Conclusion

• Ultimately, managing a sales force comes down to

helping your sales people align their priorities with the
company’s goals.

• The best sales force management system – customer is

king, manager is king, or some balance of the two– is the
one that fits your selling process, time horizon, mission,
culture, and information systems.

• Weigh all the elements pulling you left (OC) or right

(BC). In most cases, the best choice will be a consistent
system that’s somewhere in the middle.
Thank you!!!