{"id":960948,"date":"2020-04-15T18:52:48","date_gmt":"2020-04-16T01:52:48","guid":{"rendered":"http:\/\/customerthink.com\/?p=960948"},"modified":"2020-04-15T21:30:34","modified_gmt":"2020-04-16T04:30:34","slug":"why-good-salespeople-do-bad-things-and-how-they-can-avoid-going-astray","status":"publish","type":"post","link":"https:\/\/customerthink.com\/why-good-salespeople-do-bad-things-and-how-they-can-avoid-going-astray\/","title":{"rendered":"Why Good Salespeople Do Bad Things. And How They Can Avoid Going Astray"},"content":{"rendered":"

Most salespeople believe they are ethical and committed to customer success. Our mantra: \u201cTreat customers like you would like to be treated.\u201d If we could, we\u2019d brush our teeth thrice daily with these words.<\/p>\n

Unfortunately, companies worshipping at the Maximize Shareholder Value<\/em> altar have trashed and trampled this ideal. Wells Fargo, VW, and Purdue Pharma come to mind. They\u2019re not alone. If ex-CEO\u2019s John Stumpf (Wells), Martin Winterkorn (VW), and Richard Sackler (Purdue) rightfully earned anything, it\u2019s widespread scorn. For salespeople, this is vindicating. Too often, CXO\u2019s sow stakeholder harm from headquarters, while the frontline sales force does the dirty work out in the field. Expectedly, the salesperson is the first target for customer rage.<\/p>\n

The first car dealership in the US<\/a> opened in 1898. Were early car sales reps \u201csleazy\u201d and \u201caggressive\u201d? Or did they become that way through circumstance? Nobody today wags a shaming finger at former industry executives whose sales strategies created that ugly archetype. The result of saturating territories with dealerships and forcing the owners to accept quotas of slow-selling vehicles to get the hot selling ones. When people opine cruddy car buying experiences, look no further than the CXO\u2019s of the major auto manufacturers as the visionary architects for everything wrong in buyer-seller engagement. And like a stain that won\u2019t wash out, it\u2019s lasted into 2020.<\/p>\n

Stereotyping has a benefit, however. Casting salespeople in any industry as slick<\/em> and manipulative<\/em> means that our minds don\u2019t get encumbered processing deeper understanding. In fact, the putative pushy sales rep is more an artifact of his environment, and less a reflection on his personal character. Contrary to what many believe, greedy ostentatious people are not inherently drawn to the sales profession. Nor do they flock to car selling in particular. Show me a manipulative, aggressive, or unethical sales behavior, and I\u2019ll show you a training program that encouraged it, a pay plan that motivated it, a manager that demanded it, and a company that accepted it. Unless we enjoy hearing others rant about “slimy” salespeople, we must stop blaming the victim, and fix what truly needs fixing.<\/p>\n

Importantly, not every revenue scandal involves the sales force. Enron\u2019s scheme began in the CFO\u2019s office. VW\u2019s emissions-cheating scheme was hatched deep in the bowels of its engineering department. Turing Pharmaceutical\u2019s predatory price gouging was the brainchild of its profit-obsessed CEO, Martin Shkreli. In 2018, he was sentenced to seven years in prison.<\/p>\n

But all too frequently, we find Sales close to the epicenter of ethical havoc, the linchpin in the sharp-fanged mechanism for repeatable, scalable deceit. That wouldn\u2019t happen if the sales force weren\u2019t attractive for exploitation. <\/p>\n

Five key reasons:<\/strong><\/p>\n

1. The sales force holds a unique position of trust<\/strong> with a company\u2019s customers. The easiest way to begin a scam is to usurp existing trust.<\/p>\n

2. Most sales forces have variable compensation based on revenue attainment.<\/strong> Pay-for-performance significantly influences behavior.<\/p>\n

3. Draconian penalties for under-performance.<\/strong> In many organizations, quota shortfalls can result in termination.<\/p>\n

4. Sales culture stifles dissent, and champions conformity.<\/strong> Those who voice ethical concerns are often maligned as \u201cwhiners\u201d or \u201cnot team players.\u201d <\/p>\n

5. Sales roles have become de-skilled through Artificial Intelligence<\/strong>, making salespeople easier to replace.<\/p>\n

Among the recent cases where the sales force was caught in a customer scandal: <\/p>\n

AmEx Staff Misled Small-Business Owners to Boost Card Sign-Ups<\/em><\/strong><\/a><\/p>\n

High-flying Medical Firm, a Help to Wounded Veterans, Falls to Earth<\/em><\/strong> <\/a><\/p>\n

American Express Gave Small Businesses One Rate, then Secretly Raised it<\/em><\/strong><\/a><\/p>\n

Deceptive Sales Tactics Secretly Recorded<\/em><\/strong><\/a><\/p>\n

Although each of these scandals involved the sales force, the genesis of their eventual resolution defies the ugly stereotype attributed to salespeople. Instead, what connects these stories is that each incident was exposed by a salesperson calling out management abuse- not the other way around<\/em>. <\/p>\n

It\u2019s tragic to learn that in at least three of the cases, it was the sales rep who was fired for taking a principled stand, and not someone higher in the organization. In the instance of the AmEx credit card deceit, \u201cWhen human-resources staff reached out to the employee\u2019s manager, he denied the saleswoman\u2019s allegations and said she was underperforming. The employee later left the company. The manager was later promoted.\u201d Whoever said \u201crighteousness will always prevail\u201d never worked in Sales.<\/p>\n

What can companies do to protect customers, other stakeholders, and themselves? <\/strong><\/p>\n

1. Establish the right culture and model ethical behavior<\/strong>. CXO’s must talk the talk, and<\/em> walk the walk.<\/p>\n

2. Hire for the right sales attributes.<\/strong> Stop relying on \u201cwhat was your biggest sale?\u201d and \u201chow much did you W-2 last year?\u201d as proxies for selling talent. Instead \u2013 or in addition<\/em> \u2013 ask the candidate to describe an personal ethical selling dilemma, how he or she managed it, and whether the outcome was fair.<\/p>\n

3. Embed ethics training into professional development programs<\/strong>, and foster discussion about it in internal meetings. That should include guiding staff into how to raise issues and advocate for themselves when they feel uncomfortable about a strategy, tactic, process, or policy.<\/p>\n

4. Establish formal mechanisms<\/strong> for reporting, documenting, and mitigating ethical matters in the workplace.<\/p>\n

5. Above all, make it safe<\/em> for employees to speak and exercise their values.<\/strong> Employees who fear retaliation for speaking up when something feels wrong are unlikely to do so. That is a risk that no company can afford.<\/p>\n

When it comes to getting dragged into committing scams, salespeople are sitting ducks for management manipulation. It\u2019s appalling that sales training companies haven\u2019t moved to protect salespeople – the very group they purportedly serve. Why haven\u2019t they embedded content to help salespeople and their managers navigate moral ambiguity in customer engagements? Why don\u2019t their course materials offer business development staff guidance to advocate for themselves whenever their values and instincts about the right thing to do are confronted?<\/p>\n

Instead, they send legions of trainees into the workplace who appear adept at \u201cclosing the deal\u201d but are woefully unprepared to stand up to an unscrupulous boss. I surveyed the websites of three prominent training companies – Sandler, Richardson, and Janek – and found ethics unaddressed across the board. Businesses might get a revenue lift from their training, but I wonder whether customers might be paying a price for the love sales training companies lavish on the top line of the income statement.<\/p>\n

Treating customers like you would like to be treated and focusing on revenue are not incongruent goals. If you need to learn how to do both, ask a salesperson. They know how.<\/p>\n","protected":false},"excerpt":{"rendered":"

Most salespeople believe they are ethical and committed to customer success. Our mantra: \u201cTreat customers like you would like to be treated.\u201d If we could, we\u2019d brush our teeth thrice daily with these words. Unfortunately, companies worshipping at the Maximize Shareholder Value altar have trashed and trampled this ideal. Wells Fargo, VW, and Purdue Pharma […]<\/p>\n","protected":false},"author":6628,"featured_media":886443,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[128,427,14,83,85],"tags":[],"_links":{"self":[{"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/posts\/960948"}],"collection":[{"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/users\/6628"}],"replies":[{"embeddable":true,"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/comments?post=960948"}],"version-history":[{"count":8,"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/posts\/960948\/revisions"}],"predecessor-version":[{"id":961005,"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/posts\/960948\/revisions\/961005"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/media\/886443"}],"wp:attachment":[{"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/media?parent=960948"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/categories?post=960948"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/tags?post=960948"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}