Issue Discussion: “A Conversation Between a Sales Director and the Boss””

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This post was last edited by hamiltontai on 2016-11-27 at 09:55. As a management consultant, I often deal with entrepreneurs and their teams. Once, I went on a business trip with Mr. Xiao, the owner of a private enterprise in Guangdong that produces waterproof materials, as well as Wang, the company’s sales director (all surnames in this text are pseudonyms). While on the road, we talked about the current market situation, and everyone agreed that competition was extremely fierce, with products being updated rapidly and new, homogeneous manufacturers constantly emerging in the market. Director Wang said that some long-term clients might be approached by new manufacturers within just a few days if not visited, who would offer attractive conditions to win over those clients. Therefore, it’s necessary to visit them regularly, no matter what, to have a chat. At the same time, regular supply deliveries, negotiations with clients, and signing contracts must continue, often requiring overtime work. Salespeople face great pressure; in addition to handling these tasks, they also need to guide and supervise their subordinates, often not returning home until 8 or 9 p.m., which makes their workload much heavier than that of employees in other departments. President Xiao gave him a meaningful look and said with a smile, “So only your department gets sales commission bonuses!” ”Director Wang continued, \"Yes, but I heard that some companies offer higher commission rates than ours!\" ”At that point, President Xiao’s expression became serious, and Director Wang suddenly felt that his words had been a bit rash; he stopped talking. Instantly, the atmosphere in the car became tense. With my years of management experience, my intuition tells me that the current situation is delicate: it’s as if a crack is slowly forming on a surface that appears calm and smooth, and this crack is gradually widening. If these seemingly minor issues are left unaddressed, they will inevitably have a negative impact on future work. At this moment, there is a great need for someone like me, an outsider, to step in and do something about it. So I broke the deadlock by saying with a smile, \"Different companies have different compensation and benefit systems. Although the commission rates may seem high, the overall salary might not be that high; perhaps our company offers a higher base salary to its employees than others!\" ”The tense atmosphere in the car immediately eased, and I continued by saying, “As components of a market economy, manufacturing enterprises must operate under market mechanisms; therefore, each company’s costs are strictly determined and controlled. If costs keep rising while market sales remain unchanged, how can such enterprises survive in the long term?” If a company loses its profits, it loses the foundation for sustainable development and survival. And once a company goes bankrupt, its employees naturally lose their support. As the old saying goes, \"Without the skin, where can the hair attach itself?\" What do you think? ”After hearing my explanation, both of them nodded in agreement. I then added, “If a company fails to control its costs properly, it may accelerate its own demise; by then, with all the factories closed, where will the employees be?” ”At that moment, Director Wang seemed to realize his recklessness and said guiltily, “Yes, our company has been around longer than theirs, so our salary policies are relatively stable.” At this point, President Shao, who had remained silent for a long time, added, “Only through a comprehensive comparison can we determine what is better and what is worse!” ”At that moment, the atmosphere inside the car was like the sky, which had been covered with dark clouds just a moment earlier, suddenly clearing up completely; everyone felt relaxed and began to talk about the new production line that the company had recently put into use. We arrived at the destination quickly, and together we entered the scheduled meeting place. That day, on the way back, the scenes from my journey there kept appearing in my mind for a long time, stirring my thoughts and leaving me unable to calm down! Such a small scene may seem ordinary, but it unfolds in many companies on a daily basis in various forms. The outcome depends entirely on whether someone takes it seriously and handles it promptly. This is one aspect of defining responsibilities, and it requires a strong sense of accountability when dealing with work ； On the other hand, it also requires a certain amount of social experience and management skills in order to handle such matters properly! It should be understood that the level of attention paid to these seemingly trivial matters, as well as the way they are handled, can also affect the overall stability of a company! It is true that corporate development relies on talent, and this is a consensus among everyone. Yet talent is the hardest to manage and control. On one hand, companies need capable people, but on the other hand, they are afraid that using them improperly could cause greater losses to the company! They not only have their own thoughts but also exist in a complex social environment that includes the company, family, friends, classmates, and so on. If their thinking is not mature, they are prone to being influenced by their surroundings, which can lead to them bringing negative emotions into their work and even affecting other colleagues. Company owners, on the other hand, are always busy dealing with various business matters and do not have time to pay attention to the mental state of each employee. As a result, it is easy for negative attitudes to spread unnoticed, undermining the health of the company. If one or two sudden negative events occur as a catalyst, this could trigger one or a series of serious problems, causing harm to the company or resulting in financial losses. Therefore, to ensure the stable development of a company, it is necessary to have a scientific and reasonable management and monitoring system to prevent problems from arising in the first place, to identify and address issues promptly, so as to avoid their escalation! In short, \"no pain, no gain.\" As long as a company assigns dedicated personnel who are willing to invest time and effort in carrying out both tangible and intangible management tasks, it can gain greater recognition and understanding from its employees, reduce friction and conflicts in daily operations, and establish a smooth internal operational mechanism. Someone must do this; it’s a debt that cannot be ignored! Author: Wen Xin (Senior Consultant at Wenfeister Management Consulting Firm) Keywords: marketing, sales commissions, compensation and benefits systems, senior managers, management experience,