Interesting Q&A with Jeffrey Pfeffer

Guy Kawasaki published a great post (http://blog.guykawasaki.com/2007/07/ten-questions-w.html) “Ten Questions with Jeffrey Pfeffer“, author of What Were They Thinking?: Unconventional Wisdom About Management

Here are a few excerpts that I thought were most relevant to building a sales machine. Red hi-lites are my own emphases:

* Question: What are the characteristics of a good incentive plan?

Answer: Incentives should be large enough to provide an occasion for celebrating success but not so large as to distort behavior. And incentives can include recognition and things other than money. Companies get themselves into trouble all the time by being too clever with their incentives.

Stock options did reward leaders for getting the price of the stock up—it’s just that it was often for a short period, and was accomplished by distorting earnings. Be careful what you pay for—you might just get it.

* Question: What are the characteristics of a good work week and vacation policy?

Answer: We live in a world where ideas and innovation are paramount. But people can’t be creative if they are exhausted. And when people work when they are tired, they make mistakes. If we have learned anything from the quality movement, it is that the cost of finding and fixing mistakes is greater than the cost of preventing them. So, give people time off. And, by the way, the younger generations want a life as well as work. Work-life balance is a great way to attract—and retain—great people.

* Question: What is the proper role for a CEO?

Answer: To develop others and their talents and to create an environment in which people can do their best and want to. It is not to make all the decisions or, like some kind of “sun king,” absorb all the light and the attention.

In fact, sometimes, as the Grammy-award winning Orpheus Chamber orchestra shows, the best leadership is less leadership. No seed can grow if it is dug up and examined every week, and for people to innovate and get things done, sometimes they need some time and space and resources.

Question: I think I know what you will say, but what’s more important: CRM software or recruiting and training?

Answer: Before you can manage customer relationships through some software product, you first need to build those relationships. And relationships are still largely built through people. That’s why the most important three feet of real estate in retail—or in many industries—is the distance between the customer and the sales associate or individual who is serving that customer. Hiring the best people who are likely to stay, and investing in their training, will build relationships that CRM can manage. Without taking the first steps, there is nothing there.