COMMENTS
Dave.
I think ultimatums are one of many tools that can and should be utilized with a sales force. When I was managing my team I found myself using them from time to time - I guess it comes with the territory?
If I could be so bold as to share a few addional points - 1)they were usually part of an ongoing management process i.e they were the last step in a series of discussions 2)nobody ever "embraced" an ultimatum - my A players would respond and I would get the desired results but by their nature and definition nobody - and I mean nobody - ever embraces them. 3)I always viewd it as a last resort and some of the suggestions you offer would have taken place before thereby preventing my needing to use one.
"Ultimatum" is an emotional word which may indicate emotional involvement on the part of the person delivering the ultimatum, but is definitely intended to cause emotional involvement on the part of the target. When the doctor says, "Stop smoking or you'll die.", he intends to get his patient emotionally involved. But what he's really saying is that what we've been doing isn't working. However, this can't be the doctor's fault.
When a salesperson is hired, we recommend that they have a pretty clearly defined onboarding process. Complete with benchmarks, milestones, expected behaviors, frequent accountability, timely coaching. Essentially, all the things that you listed. So, we agree. If the salesperson reaches the end of their onboarding process and they're not performing, we have a process. We look at whether or not the person was a good hire. If not, we help hire better and replace the weak. We look at the onboarding process and fix it if that's the problem. We look at the manager and make sure that they're doing all the right things and if they're not we fix them or replace them. In the sales world, I'd discourage the word, "ultimatum" because shouldn't it be like closing in Baseline Selling? It's the next logical thing. Both sides anticipate it because it's been agreed to at every step around the base path.
So, I guess the bottom line is that if my client feels that an ultimatum is necessary, we need to be sure that they deliver it in the right direction and make the necessary changes in process before it's delivered.
Imagine if we taught the, "Buy it or die" close!
I agree that no one likes them because sales people view it as an emergency that the manger has allowed to develop and he is taking it out on them. So I see ultimatums as the sales managers problem... if he were doing his job in training, coaching, developing... he would never need to use ultimatums because he would know the score at any time in the game. If the sales manager has to use ultimatums, then get results he should go out and sell or help close business to demonstrate that he is also willing to do whatever it takes to get the results that management demands.
@Frank - excellent comment Frank.
@Rick - well articiulated. By the way, I love the buy it or die close. The inoffensive close, "would you like my help" is really the buy or die in disguise! Just kidding.
@Emre - I agree 100% with what you said.
If the ultimatum is "a closed sale or else" the customer's best interests aren't top of mind. You may win the battle but not the war. If the ultimatum is tied to better accountability to improving the sales process which ultimately has the customer's best interests in mind they need to be vocalized regularly.
Ultimatums in a relationship never work. Someone always walks away the loser.
If you are a Sales Manager, you are in a relationship with your reps. Are you supportive, are you caring, do you provide an environment of growth? All of these things define a relationship.
When you deliver an ultimatum you better be ready for the walk away factor. Ultimatums always come at the tail end of a bad situation. The question is - Who let the situation get that bad...you or them? Unless you can answer that question honestly don't deliver the ultimatum.
Just MHO.
How well do ultimatums work with your spouse? That's how well they work with your sales team.