The Coaching Effect Blog

The Coaching Effect Blog

    Demotivating Managers Are Costing You 9% in Sales

    by Bill Eckstrom / August 13, 2018

    Let this sink in . . . If a demotivating sales manager has a sales goal of $10,000,000, he or she is potentially leaving $900,000 in sales revenue on the table. Are you okay with that? 

    Let's start here: In the business world we have bosses. They are also called managers, directors, executives, regionals, assistant VPs, VPs, and many more titles; however, whenever someone outside of work is hired to help us develop we refer to them as a “coach”. Why is it in athletics they are ALWAYS referred to as a coach?

    Experience, research and common sense tell us a “coach” brings differentiated talents and skills, assistance, understanding, more overall development then a “boss” is able to deliver. So, if that is the case why do we even have bosses at work? Wouldn’t we all be better off with coaches?

    A good boss who behaves like a high performance coach is worth his or her weight in gold. (Tweet this)

    According to Gallup, over 70% of bosses don’t have the talent to maximize the performance of their team, and when looking specifically at sales bosses, EcSell Institute research shows the bottom 80% of them deliver an average of $4.1M less per team when compared to the top 20%. 

    Click here to download a white paper about what the best sales bosses do differently. 

    Bad bosses also demotivate. Demotivating bosses deliver an average of $2.1M less/team, and we show approximately one in three bosses deliver no motivation. I’ve said this before, but in sales, without a boss in place, sales people will still sell. So, the economic value a boss brings is the difference in the amount sold with them in the role versus having no boss.

    EcSell data shows that while most bosses deliver some positive results there are still those that, without knowing it, inhibit sales performance. Said another way, the concept of the demotivating boss means--their team would sell more if they had no boss.

    My point of the “coach versus boss” is that anyone who has people reporting to them is accountable for making sure their team performs at a higher level. So, if it takes a coach to drive better results, why doesn’t a company put a person with coaching talents and skills in that role to begin with? Or, why don’t organizations educate, develop and measure coaching effectiveness (like EcSell does) for all “bosses”?

    I highly recommend clicking on the white paper below to dig deeper into the research behind motivating and demotivating managers and their impact on team performance and sales. 

    Sales Motivation White Paper

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    Bill Eckstrom

    Bill Eckstrom

    William Eckstrom is the CEO and Founder of the Ecsell Institute. Bill has spent his entire career in the sales management and leadership arena. In 2008, he founded Ecsell Institute to fill a void he witnessed and personally experienced in the sales leadership profession. He's went on to present a viral TEDx Talk and co-authored the best-selling book, "The Coaching Effect."