Improving Performance Through Self-Selected Goals

Goals: The Emotional Connection

In the late 19th century, Italian economist Vilfredo Pareto delineated what is commonly called the “80/20 Principle.” He determined that 80% of the wealth in any society is owned by 20% of the citizens. This concept is commonly translated to business today: that 80% of sales are made by 20% of the sales representatives.

What is a goal?
Compensation plans over the years have not countermanded Pareto’s thesis because of their top-down nature. Where quotas and objectives are mandated by management, most sales people will not improve their performance to take full advantage of the earning opportunity. They will not change because they have no emotional connection to the opportunity and because they did not participate in choosing the goal. It is unfortunate, but probably inevitable, that the 80/20 Principle will not change where quotas and bonus plans are concerned. However, it need not be the case with other incentives.
The Use of Goal Setting in Business
The most common use of goal setting in business is in the establishment of quotas, incentive plans, and compensation bonuses. As a rule, such goals are established unilaterally by management. And, because the process is top-down, with little or no opportunity for negotiation or dialogue, these goals are often rejected or ignored, and thus have little or no impact on individual performance and effort level. The end result is that, at the end of the year, fewer than 35% of salespeople typically reach their assigned quota.

GoalQuest® Methodology
A Proven Design for Success
BI Worldwide, a leader in performance improvement for over 60 years, has developed and patented an incentive methodology that implements goal setting within a direct or indirect sales channel. The system, called GoalQuest®, integrates proven goal-setting principles and an interactive website to capture individual goals selected by those enrolled in an incentive program. Once launched, website operation is controlled by proprietary software that tracks performance, prepares reports, communicates progress and issues rewards for goal attainment. Engaging More of Your Sales Team Many companies traditionally offer incentives with flat payouts and no requirement for participants to strive for specific goals. 

The same rules and rewards are offered both to the top salesperson and the rookie. This makes the goals for newer salespeople seem impossible and they mentally “check out” of the program. The inevitable result is that only the top 10% or so of the sales team actually provides any incremental effort and productivity. For ten years GoalQuest results have shown excellent results.