How HP (Uses) Fantasy Football Methods to… Increase Sales
I used to manage commissions and sales award compensation for IBM’s Western Region and also spent much of my time in graduate and undergraduate studies studying compensation theory. I was then and still remain fascinated that most sales programs don’t work well; often awarding people who are already top performers anyway and demotivating the lower performing personnel that they are actually supposedly designed to help. This, I think, is largely because the skills associated with compensation as a motivating factor have been lost over the years. Instead, firms just implement what other firms do and often conceal the lack of solid results or discontinue programs in frustration.
This is why I was fascinated by a program used by HP’s software security unit.
Using a sales award program based on Fantasy Football called FantasySalesTeam (developed by Adam Hollander, founder and CEO of the company), HP went from a 16% to 20% “going out of business” sales decline rate to a 31% to whopping 94% growth rate. By the way, HP isn’t the only tech company using this tool; they are simply the biggest that agreed to be a reference. Most of the others would just as soon not share their previous poor results or the reason for their recent successes.
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NOTE: This column was originally published in the Pund-IT Review.