The Greatest Management Principle - Sales Influence Podcast - SIP 590
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The Greatest Management Principle - Sales Influence Podcast - SIP 590
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- 🎯 Measure output to manage results and avoid micromanaging, but switch to measuring activities when not hitting numbers to guarantee output, as per Dr. Michael Lebau's "The Greatest Management Principle in the World" (1985).
- 📊 To ensure output, focus on key metrics introduced by Frank B. Kern in the 1940s-50s: cold calls, call-to-meeting ratio, pipeline size, average deal size, close rate, and sales cycle length.
- 🔍 When performance lags, zoom in on specific activities while maintaining oversight of high-level dashboard metrics like sales, new clients, and revenue.
- 🏆 Recognize and reward desired activities through both monetary and non-monetary means (e.g., encouragement) to motivate people and drive the right behaviors.
- 🔄 Flip the equation from output measurement to activity measurement when targets are missed, ensuring that the right activities are being performed to achieve desired outcomes.
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