The Psychology of Sales Goals and the Power of Leadership

Impactful goal setting involves a purposeful approach and process to translate sales goals into reality. The return can be massive for the company and each individual sales person. Achievement of sales goals results in happiness and peace because the sales person has harnessed control and knows it. And, what’s more, the sales person has exercised self-discipline by setting a path and following it to its successful conclusion. This is the nucleus of meaningful individual and team success.

The process is actually quite simple. Here’s a quick 5-step guide for Sales Leaders and Sales Managers.

Step 1: Communicate the Process 

After the goal initial setting exercise, goals will be reviewed during the first week of every period.If the type of sale involves monthly sales quotas, then monthly. If the type of sale and sales compensation plan measure sales performance quarterly, then the first week of each quarter. This transcends a point-in-time goal setting exercise and integrates sales goals into the ongoing work process of each sales person. Focus precedes sales success, always.

Step 2: Set the Goals

Goals, both professional and personal (optional) will be defined by each sales team member during the waning weeks of 2024. List the goal and the impact achieving the goal will yield (i.e. what it means to the individual setting the goal); Quantify the goal; List the actions that will be required to achieve the goal in detail; List the reasons why this is a real goal and why it can (or better yet, will) be achieved; finally, if goal attainment spans longer periods e.g. quarters, then define what achievement looks like per quarter.

Step 3: Set Goal Review Check-ins 

Regardless of whether you are a Vice President of Sales or Sales Manager, you should review each sales person’s goals during the first week of January. CROs should review the goals set by their CSOs and Vice Presidents of Sales. The point is to spot adjustments through the lens of making the goals realistic and achievable. Schedule the goal review sessions now, with each person blocking the time throughout the entire year. This makes it clear, if it’s not already, that this process is important, ongoing, and something to be taken very seriously, and that tone starts from the top.

Step 4: Never Miss a Goal Review Meeting 

When necessary, reschedule in advance while making it clear that this is very important. Ideally, stick to the pre-set meeting times which elevates and sustains the perceived level of importance. Beyond these formal, pre-set, goal review meetings, sales people should feel welcome to discuss goals and goal attainment with their VP of Sales or Sales Director along the way. This can also be part of ongoing 1:1’s depending on the circumstance.

Step 5: Celebrate the Wins

If appropriate, and welcomed by the sales person, share the news with the team. If not, then keep it between yourself and the sales person. This helps to promote a culture of recognition and reward while continuing to emphasize the importance of celebrating both individual and team successes with your entire team.

These steps are entirely intentional. There is an iconic performance program called “The Psychology of Achievement” by Brian Tracy which was originally published in the 1980s and has since been updated along the way. Countless people point to this program as the foundation of their success in business and in life. In it, Brian Tracy defines several laws of achievement and performance, three of which are introduced here and are directly related to the process above.

Cause & Effect 

Brian Tracy’s law of cause and effect states that nothing happens by accident. It is in fact our thoughts which are the cause of all things, and conditions are the effect. We must first learn to control our -positive- thoughts to influence our behavior and the outcomes we desire. Napoleon Hill is quoted as saying, ““Thoughts are things,” and powerful things at that, when they are mixed with definiteness of purpose, persistence, and a burning desire…” Many many others have shared similar notions.

Belief  

Brian Tracy’s law of belief states that whatever you believe with feeling becomes your reality.  This includes a reflection on actual limitations which are few because most are self-limitating and entirely imaginary. It was Henry Ford who said, “Whether you think you can, or you think you can’t – you’re right.” Without belief, this is just fantasy land because the concept of “Fake-it-till-you-make-it” is hard to sustain. It is important for Sales people to truly believe and understand that their sales success lies in their own hands.

Expectation   

Brian Tracy’s law of expectation states that whatever you expect, with confidence, tends to come true. Your expectations can become self profiling prophecies. Winners always expect to win! Many of us were blessed early in life with the gift of high expectations perhaps by parents, care givers or teachers but many have to learn the power of positive expectations later in life.

Nothing is more powerful than success in this regard which is why our role as Sales Leaders and Sales Managers is so important. We must guide the process from inception of the goal all the way forward to the finish line. Watching team members achieve hard earned goals are among the finest things in life.