Thursday, April 14, 2011

Hypothetically speaking about cutbacks, performance and sales management

If a company cuts approximately 250 employees right after the end of Q1 2011, what does that say about its as-yet-unannounced Q1 2011 results and its feelings about business in near-term, forward quarters?

The larger, looming question, I think, is how deep can you cut and still put forth a maximum customer-service and quality effort on behalf of your customers? Do you reach a point where cutbacks begin to negatively affect performance?

And, what’s your “business model” when it comes to sales efforts? Do your sales managers and sales reps report to production people who do not have experience in sales nor a clue about how to go about market and account sales strategy? Do you now only sell price? If your sales are still trending lower, when you expected them to stabilize or slightly increase, is that trend only because demand is off, or is some of the problem attributable to how your company is managing and directing its sales efforts?

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