Ongoing management. Lowperformers, mid-level performers and even high performers need it.It does not assume high performance, and once high performing, doesnot assume it will always continue. Everyone needs to be managed ona consistent basis. In sales, the goal of ongoing management isparticipation rate.

Participation rate is the percentage of sales team members whoare at or above plan. For a sales team, participation rate is easyto calculate. On a team of 10 people where four are above theirsales plan on a YEAR-TO-DATE basis, the participation rate is40%.

Participation rate is a statistic that rarely scrutinized. Why?Sales managers are measured for making their quota. If the quota is$100 million, the sales manager's goal is to get each sales personto deliver an average of $10 million. Some will produce $15 millionand others will produce $5 million; the sales manager only needsthe total to add up to $100 million. The sales manager isincentivized to keep average performers. A sales person who onlydelivers 50% of their quota is better for the sales manager thanthe 0% they would contribute if the sales manager let them go.

Research reveals that a participation rate of 60% or less willgive sales managers a 10% chance of making their revenue plan.Sales managers must aim for a high (70%) participation rate to havea good chance of making plan, although it is not guaranteed.

Given this, why do sales managers tolerate poor performance?What stops them from having tough conversations? Sales managers arenice. They do not want to rock the boat. Their strategy ishope.

A sales rep's performance can be evaluated on two criteria –behavior and results. Assessing whether a sales rep is or could bedelivering results is fairly straightforward – it's a math problem.There are four performer categories a sales manager works with:

1. - High Performers = Deliver results + behave correctly
2. - Coachable Performers = Behave correctly but results are not100% yet
3. - Tough Performers = Deliver results + behave poorly
4. - Poor Performers = Poor results + poor behaviors

In an ideal world, a sales manager would have 100% HighPerformers. Neat concept, most likely not going to happen. What isthe next best thing? One hundred percent High Performers andCoachable Performers. This is attainable but it's not the norm.

Most leaders will have some Tough Performers and some PoorPerformers. Imagine having 10 direct reports with two in thesegroups. Not bad, manageable. Now imagine four out of 10. Life istougher and tough moments happen on a daily basis. At six out of10, it is probably tough to get out of bed in the morning.

Ongoing management of performers involves monthly (minimum)One-on-ones, observational coaching with feedback, sit downs to tryand help – all the day-to-day routines to try to lift behavior andresults. When these fail to work, that's when it's time for theperformance conversation, which has five key steps:

1. Set a clear standard and set milestones of performance for thedirect report.
2. Inform the direct report where they are not meeting thestandard and set milestones.
3. Give the direct report the opportunity to meet the standard andset milestones.
4. Offer assistance to meet the standard and set milestones.
5. Advise the direct report of the consequences of not meeting thestandard and set milestones.

Sales managers know how to do this – the issue is getting up thenerve. Sales managers need to have the conversation as soon asneeded – putting it off spares no one. Sales reps who want to bewith you will step it up and improve. Those who are not capable/notinterested will show very quickly (weeks not months) after theperformance conversation. If things still don't improve, the salesmanager can move to the final warning, consulting with HR toeffectively handle this and how to go your separate ways if that isrequired.

KevinHiggins is CEO of DoubleDigitSales in Toronto.