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Micromanagement = Lost Sales

January 31st, 2008 @ 6:08 am

5 Comments

Categories: General

Tags: Sales Representative, Sales Strategy, Sales Force Management, Sales, Geoffrey James

MicromanagerThere are three things that are inevitable in this world: death, taxes and lousy management. And of all the many manifestations of lousy management, surely one of the worst is micromanagement.

I was recently talking about this with Sam Reese, CEO of the sales training firm Miller Heiman. He once worked with a telecommunications company that required sales reps to record every single prospect call and customer call, and list out exactly what had been accomplished in each customer meeting. If you didn’t toe the line, and failed to record a certain minimum activity for the week, you’d be subjected to a humiliating conference call with the sales director. “He lambasted them and then made them put their forecast for the next week ‘in blood,’” says Reese.  “It was a real waste of time and energy,” says Reese.

Sales process guru Michael Bosworth, co-author of the bestseller CustomerCentric Selling, once worked with a major computer company where forecasting was an obsessive nightmare. During the final month of every quarter, sales reps were forced into to weekly conference calls where they were supposed to commit personally to what they were going to sell that week. What was ironic and stupid about this was that the company’s products had a long sales cycle, so that it was unlikely that the last minute management attention could have any impact on actual sales. What’s worse, the sales reps quickly became aware that having nothing to close was not an acceptable answer, so they began promising closings that weren’t going to take place. “Fabrication was the order of the day and salespeople became quite adept at getting their manager off their back for another week,” says Bosworth.

Probably the worst kind of micromanager is the one who is simultaneously narcissistic.  I once had a manager who insisted on signing off on every decision, no matter how trivial and he would only make that decision after being presented with reams of data.   At the same time, he thought the world revolved around him, so he thought nothing of making everyone wait for a hour or more for scheduled staff meetings — which was where he would view the data and make the go/no-go decisions.  Sometimes he didn’t show up at all, which meant that everything in the department ground to a halt.  Needless to say, all of this was a colossal waste of time and effort, and when the company experienced a downturn, our group was the first targeted for layoffs.  By the way, this idiot is now the president of a major division of a major corporation.

I’ve heard plenty of advice over the years about how to deal with micromanagement, and even wrote about it last year in my BNET article package about managing your boss.  Still, I’m not sure that the advice is all that useful.  I suspect that there’s some kind of weird psychological undertow that locks managers into this kind of behavior.

Have you run into a micromanager in your career?

If so, how did you handle it?  Did you just plug away?  Did you look for another job?  Did you try to change the manager’s behavior?

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  •  
    1

    renovicelli

    01/31/08 | Report as spam

    Micromanage

    I worked for a sales firm that thought cold calls while in an industrial park were a waste of time. The only thing that mattered was registering when you left your home (before 8 am), accomplished your two demos, accounted for all your time on the road, and logged when you returned home (after 6) or checked into a hotel. All admin was to be done after core business hours. I fought to change the mindset by developing new metrics that made sense for selling our optical equipment and was able to allow the reps that worked for me to be salespeople and not strictly product demonstrators. It worked in the short term but when numbers were slowing my VP took it upon himself to sit outside a reps home in the morning waiting for him to walk to his car. All my efforts were diminshed I was forced(due to lack of respect for VP) to move to a new company. But I am glad to say two of my reps that I hired and mentored are now tops in their new companies. Trust and faith goes a long way.

  •  
    2

    sinistralinid

    02/01/08 | Report as spam

    Tactics for micromanaging bosses

    I have always found that if I point out the 'value of their time' vs the task they are trying to micromanage(usually some trivial admin task, or something that is not globally strategic). I say something like 'You know, Boss, you have so much to do, how about you let me take care of this (trivial) item. That way, to can get to all the really important things you need to take are of' or something like that. That usually works. My current boos is fairly rational though, I have worked for some that were truly frightening, and would not have let you pry the task from his cold, dead hands. One in particular, took his business for a spectacular swan dive, all the while obsessively reworking a dismal cash flow, without any clear idea how to avoid bankruptcy, and is now selling real estate in Florida.

  •  
    3

    ptiseo

    02/01/08 | Report as spam

    Four Certain Things

    Actually, there are four certain things in life: death, taxes, *some* lousy management, and that you can always find people that complain about management no matter how good a job they do.

  •  
    4

    MPi014

    02/02/08 | Report as spam

    RE: Micromanagement = Lost Sales

    A differentiation should be made between born micro managers and those who use it judiciously. I have often used short 'doses' of micro management to enable quick course corrections -somewhat like booster rockets.

  •  
    5

    hamlinrs

    02/02/08 | Report as spam

    RE: Micromanagement = Lost Sales

    Reading this post was like going back in time to my sales experience with 24 Hour Fitness (and feeling chills). I knew their artificial forecasting conferance calls were a waste of time and everyone on the call made promises that would never be met, but it is nice to see that others experience the same form of horrible management. It's almost like these managers went to a "Learn How To Be A Horrible Manager" school. Seriously, does someone out there advocate this form of managing and teach it as a skill?

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