| Applying SST to Reduce Sales Force Attrition |
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A recent study reported that almost one-quarter of
U.S. workers changed jobs and nearly three-quarters
of the businesses surveyed anticipated increased
competition for talented employees (MetLife Employee
Benefits Trends, 2007). The sample in this study was
comprised of all workers. One would have to believe
that, if a similar study focused just on salespeople,
those percentages would be even more severe.
Indeed, we have consulted with clients in efforts to
reduce sales force attrition who were confronting
significantly higher attrition than twenty-five percent.
More than any category of workers, salespeople are
both threatened with termination and wooed by
competitors. Salespeople are the foot soldiers of an
organization who engage the enemy in hand-to-hand
combat on a daily basis. And just as Sun Tzu
advocated an occasional beheading of ancient
Chinese soldiers to motivate the troops, modern
salespeople are sporadically terminated for not
meeting their quotas. On the other hand, high
performing salespeople are courted by competitors in
hopes that they will bring their talents, relationships,
and books of business to the other side.
Whether you are kicking salespeople out the door or
your competitors are stealing them from you, sales
force attrition is emerging as a serious business
challenge.
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| Do You Bring Your BATNA to the Table? |
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One of the core negotiation principles we teach is
having a BATNA: Best Alternative to a Negotiated
Agreement. It is essential because the party who
holds the stronger BATNA, not necessarily the one
who is bigger or more powerful, wins.
We illustrate the concept with the great and classic
film Casablanca. As you may recall, the 1943
Academy Award winning movie revolves around
negotiating for letters of transit (visas) that will allow
the holders to flee Nazi-controlled Casablanca for the
US.
Rick Blain (Humphrey Bogart) has them, and Ilsa
Lund (Ingrid Bergman) wants them. In the scene
entitled "Ilsa's Plea," Ilsa puts her BATNA on the table
when she pulls a gun, points it at Blain and says, "I
tried to reason with you. I have tried everything. Now I
want those letters. Put them on the table." Bogey one-
ups her BATNA by stepping closer and saying, "Go
ahead and shoot. You will be doing me a favor."
The BATNA principle came to life for me again in the
context of a current conflict, the war in Iraq. New York
Times columnist Thomas Friedman wrote last month
about the Iraqi Parliament taking the month of August
off, while our soldiers put their lives at risk in the
scorching desert where temperatures push 130° F
(54.4° C). Obviously, from an American perspective, if
our young soldiers can endure those kinds of
conditions, the Iraqi parliamentarians ought to be able
to meet in their air conditioned facility and advance a
political solution for their country.
Although he doesn't use the term BATNA, Friedman
hits on the same principle when he observes that,
while the US is bigger and more powerful, the Iraqis
have a stronger BATNA. Believing that the Bush
administration will never walk away from a negotiation
there, the Iraqis will not make concessions, like
keeping Parliament in session.
The lesson to be learned is to always have your Best
Alternative to a Negotiated Agreement determined
before you enter into a negotiation. Stick to it and be
ready to walk. If you don't, you will lose the negotiation,
even if you are bigger and stronger.
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Fall Greetings |
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In this issue of the SST Newsletter, we address a
growing concern for the sales industry: sales force
attrition. If you, like so many other businesses today,
are suffering from too much turnover among the key
players on your sales team and you're not sure why,
our lead article is for you. Read more about the new
insights we offer to help you battle this problem in
Applying SST to Reduce Sales Force Attrition.
Let us help you find a solution before the snow flies
and before more relationships with your key accounts
are put at risk.
Our second article addresses yet another element
critical to your sales success, the BATNA. The Best
Alternative to a Negotiated Agreement is a
fundamental negotiating principle. And we
recommend that you, to borrow a line from American
Express: Don't enter a negotiation without one.
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