The “Moreguard” Management crisis
How the situation came about
Doug is an immaculate sales representative. Over the years, he has sharpened his marketing skills and has been able to gunner a lot of sales for Moreguard. Doug enjoys his job and is passionate about it. However, he has always admired and dreamt of taking a management role. The reason for this desire is that most of his college buddies are doing very well as managers. Without a proper understanding of what management entails, he decides to apply for a vacant manager position.
This vacancy came about when the previous manager got fired because sales of the former years were off. The company also wanted to make a change in direction. They were launching a new program called the first-plus accounts. In this program, they would focus more on larger accounts to generate more revenue. The primary motivation for this strategy was that their competitor had already implemented the plan. An apparent mistake here is that Moreguard was merely following a trend rather than doing ample market research.
Another misgiving was that the training relied heavily on too much theory. The interview team gave the trainees extensive manuals to study within a very short timeframe. Such a method makes the candidates peruse through content without properly understanding the course. Once Doug became appointed as sales manager, he had too much workload. There was no assistant assigned to him. He had to undertake extra work which overwhelmed him. Furthermore, other sales representatives did not buy into the new program. They also got informed of the plan on short notice. There was no prior discussions and exchange of ideas. The result was a poor performance of the program.
How the situation could get avoided
First, Dough should have analyzed the situation before applying for the job. The lack of competition during the application for the post should have been a red flag. Secondly, he should understand his strengths more. The fact that he was a good sales representative does not mean that he will automatically be a good manager. The company also needs to undertake extensive research before launching a new program into the market.
The new manager ought to have had an assistant to help him with some of the lighter management tasks. This action would have given him more time to focus on more critical issues. The company's physical infrastructure should be renovated or replaced with better devices to avoid delays caused by breakdowns. Finally, the company should have spent more time convincing sales reps to get on board. On top of that, they should have offered bonuses for achieving targets. This approach could have given them the incentive to put more effort (Mantrala, Sinha, & Zoltners, 1994).
Specific actions
Now that the damage has already occurred the company has to deal with it. These are the actions I would propose. First, the program needs to be suspended and more market research to be undertaken. Once they get proper information, they will be able to make more accurate forecasts on how the product will perform. Secondly, they should currently place more focus on smaller accounts that have more commissions and are more popular. This is an area where the company has strength. It should build more on its strengths. Finally, they should immediately hire a more experienced manager with vast knowledge in such programs. Such a manager will guide the program more professionally and will take well-thought actions without rushing.
References
Levy, M., & Sharma, A. (1994). Adaptive selling: The Role of Gender, Age, Sales Experience, and Education. Journal of Business Research, 31(1), 39-47. Print.
Mantrala, M. K., Sinha, P., & Zoltners, A. A. (1994). Structuring a multiproduct sales quota-bonus plan for a heterogeneous sales force: A practical model-based approach. Marketing Science, 13(2), 121-144. Print.
