Goal-Setting: Does It Help or Hurt Sales Performance?
DALLAS, May 17, 2016 /PRNewswire/ -- Armies of motivational speakers tout the virtues of goal-setting. "It's vital for success in sales," they say. At sales rallies the oft-repeated bromide has almost assumed the elevated status of a self-evident truth. But, is it? According to researchers, goal-setting might not be universally helpful. A study of U.K. salespeople found it can actually make some salespeople worse.
Researchers at Behavioral Sciences Research Press in Dallas, Texas, analyzed psychological test scores from 78 adult U.K. salespeople working in a variety of sales settings. Each completed the Sales Preferences Questionnaire (SPQ*GOLD/Full Spectrum Advocacy), a new high tech psychometric application designed specifically to assess clientele-building effectiveness. The salespeople completed the on-line assessment as part of their organization's standard assessment protocol for evaluating sales ability.
The instrument measures characteristics statistically linked to high-profit sales performance, along with several "fail safe" measures engineered to detect faking and other forms of misreporting. Participants were also asked what they like most about working in sales. Their answers were compared to their scores on the Goal Allergic Scale, a Full Spectrum Advocacy measure of distress triggered in some salespeople by the mere introduction of clear performance accountabilities.
Results were mixed. Salespeople saying they like the income attainable in sales most were least affected by the having clear performance objectives or having their performance goals publically posted along with their actual production (average Goal Allergy score of 23 on a 100 point scale). Salespeople saying they like the social aspect of selling most, were more likely to be de-motivated by having clear production goals set, and having their production goals publically posted along with their actual production (average score of 41). But, they are not alone. Salespeople working in sales for the accelerated opportunity it provides for advancement, followed closely.
"This study underscores the need for managers to better understand the subtle ways sales performance can be influenced for better or worse," said Trelitha R. Bryant, Senior V.P., Field Testing and Research at Behavioral Sciences Research Press, and principle author. "When measures like the Goal Allergy Scale indicates potential performance issues are likely to be caused by goal-setting, managers have the opportunity to make adjustments and deploy preventative remedial training. Production problems caused by goal-setting is an under-the-radar problem that does not have to happen."
How widespread are allergy-like reactions to goal-setting? "We don't know yet," Suzanne C. Dudley, President & CEO of Behavioral Sciences, and co-author of the study, said. "But as our research progresses, we are learning how to better anticipate which salespeople are likely to be hurt, rather than helped, by one-size-fits-all approaches to goal-setting. So far, based on initial results from a U.S. study of 801 adults, it appears to be particularly troublesome in millennials and younger professionals."
The authors will be visiting the U.K. May 20th – 24th, 2016.
Behavioral Sciences Research Press (BSRP) is a Dallas, Texas based company specializing in the research and development of advanced on-line psychological assessments used world-wide. Founded in 1979, BSRP is a leading resource for narrow-band applications developed from rigorous, long term programmatic research.
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