A client asked me for help in conducting performance appraisals. When I asked why, the client said, “Doesn’t every good company do them?” I replied, “Not really”.
This company was shocked when our analysis uncovered over 300 hours of management time burned up producing virtually no results.
I believe most appraisal processes are flawed, as illustrated by the numerous articles published on the subject. This tells me it’s rare when appraisals add value. I'd suggest replacing appraisals with performance improvement processes. They are not synonymous.
Most appraisals are too subjective. For example, giving a mark between one and seven on fuzzy characteristics like initiative, enthusiasm, commitment, and team player are of questionable value. Many appraisers and employees focus on negotiating a score rather than having meaningful conversations about improved performance.
Regular one-on-ones with direct reports are much more valuable and productive than even quarterly appraisals. Focus on visible behaviours and competencies rather than subjective ratings.
Coaching on Specifics
The best retailer I’ve met, John F. Lawhon, has a unique approach that consistently outperforms other stores. He and his managers invest time coaching salespeople on the specifics of securing a sale of merchandise that customers would love for years to come.
He refused to pay “spiffs” or “incentives.” He told me, “Why put undue pressure on salespeople and customers when the real issue was a poor purchase by management?”
If an item didn’t sell, he cleared it out or determined why and targeted customers who might enjoy having the item in their home. He insisted salespeople offer no opinions about any item until the customer offered his or hers. This makes sense, since the customer is buying, not the salesperson.
Lawhon required salespeople to document each transaction on a card on which specific parts of the sales process were itemized. This took less than a minute but it uncovered specific coaching opportunities.
Salespeople loved this approach since it helped them increase their competencies and their sales. Customers loved it since salespeople helped them make an informed decision rather than pressuring them to buy.
During coaching conversations, managers and salespeople focused on specific areas of the sales process, set goals together, and managers gave specific feedback in real time.
Some salespeople went from selling as low as one in 24 people they talked with to as high as eight out of 10! Add-on sales also increased since salespeople did not ask for add-ons until the customer was happy with the buying decision they had made.
Definition of Selling
I love Lawhon’s definition of selling, “Provide the customer the information they need to make the best buying decision,” and I add, “for them.” It’s clear customers need information to make an informed decision.
This leads to answering questions like, “What information do they need? In what sequence does the salesperson present the information?”
This opens up a different way of selling from the traditional “Can I help you” approach. Lawhon suggests a better opener: “Do you mind if I ask what brings you into our store today?”
He developed this approach from listening to buyers who always told him, “The reason I came in today is …”
When customers answer “I’m just looking,” instead of saying “Browse to your heart’s content, just let me know if you have questions,” respond with, “If you let me know what you’re looking for, I can point you in the right direction.”
It’s a tough time for retailers, so increasing selling competency that leads to increased sales and customer satisfaction is a better use of time and resources than questionable performance appraisals.
Rather than hoping for improved sales performance and wasting time on ineffective appraisals, do what professional sports team do: coach, coach, coach.
Dave Mather is a Performance Improvement Specialist at Dale Carnegie Business Group in Toronto. His columns can be read at ept.ms/dave-mather
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