Commentary on How Right Should the Customer Right Be?

(Anderson & Onyemah, 2006) Over the last decade, attention has been increasingly drawn to the subject of sales force control systems. This article provides insight into two typical cultures for approaches to sales force management. Outcome control (OC) systems put the customers first while Behavior Control (BC) systems put the district or regional managers first. Depending on the organization, one may be more effective than the other. Salespeople are rewarded for the results they achieve; therefore, they are encouraged to do whatever it takes to please the customers. Simultaneously, managers may command how salespeople achieve results, implying they should focus more on pleasing managers. When pleasing one side gains at the expense of pleasing the other, salespeople have a tendency to under-perform and superior performers may defect. Companies with OC systems reward outcomes, thus salespeople are held more accountable for their sales outcomes but not for their behaviour. As the customer is king in this system, the salespersons compensation is typically driven by the customers behaviour. In OC systems, there is more emphasis on pleasing customers than pleasing their managers. Naturally, salespeople are given autonomy in OC systems. Jin Line is a small cargo shipping company which is very much outcome-focused. Small and medium-sized business clients, who have had little respect from the large shipping firms, were visited and taken out to lunch or dinner on a regular basis. Jin Lines salespeople have considerable autonomy enabling them to make even some pricing decisions. They have smallish regional markets with a minimal reporting, and the firm places a strong emphasis on their outcomes than their behaviour. In comparison, in companies with BC systems, the manager is king. Outcome is a matter of concern to one aspect of BC systems. However, managers measure and compensate what salespeople deliver to the business, and what they really do; techniques, activities and expenses. Salespeoples capability, knowledge and efficiency are measured on different criteria, many of which are subjective. The large part of their compensation is tied to salaries or bonuses affected by their competencies and work attitudes that managers appreciate. A global shipping company Han Shipping Ltd is completely opposite to Jin Line although two are in the same industry. Competent sales executives are assigned but they have little influence and make very little difference on the outcome. Regardless, customers continue to use the firms service because of its schedule reliability, container availability and competitive pricing package. Sales management is king. The salespeople have very low autonomy and several reporting each week to provide information higher up in the company. Outcomes are less important as behaviours and competencies are rewarded over achievements. The authors also pointed out the potential consequences from conflicts within these two systems. Some managers stress the customer as king but do not clarify how outcomes influence individual performance appraisal and compensation. For example, a Hyundai car dealer in USA supposedly evaluated sales performance explicitly on the volume of sales they achieved as each salesperson had monthly targets. However, some underachieving or poor salespeople got rewards or a promotion before superior performers because evaluations were based on the managers inclination. As a result, top performers have left.

OC and BC systems are at the extreme ends of the spectrum. However, most companies are somewhere in the middle of the OC-BC continuum with leaning one way or the other. In order to avoid potential conflicts that may disadvantage your sales force, the authors recommend adopting a consistent and appropriate sales force management system that aligns with the organizational strategy.