There are several reasons why the STP should not be stopped. The most important ones we have described in the powerpoint presentation. Here we will just summarize and make a short critique of them.
This program has not only had positive financial benefits for the company but also positive psychological effects on the labor force. By cutting out this program the negative side effects will also be psychological and ultimately, financial.
There are certain basic facts and figures the Board cannot underestimate and that do speak in favor of STP. Since its first implementation on newly recruited employees, the figures show that their annual sale have grown at least 10% per year in comparison to the previous years and starting the year after the STP was implemented, has been 15% higher than the industry average. This figure becomes determining if we note that this situation has happened despite the increase in competition on the market.
But the most influential fact in favor of the ongoing of the STP is that returning customers compose 65% of the total sales for the company and that market surveys demonstrate that these customers do return primarily because of the satisfactory experience they have with company’s sales people compared to other rival companies.
The kernel of the STP program is not just to sell a product or service to a client. It is about getting to know your customers in a way that you can offer them the best suitable service or product that will solve his / her problems. This way the STP develops a spirit of connection between the sales staff and customers (Rogers, 1998).
Among the sales personnel the STP (especially the new format of the program) created the possibility for the new and ‘old’ sales staff to exchange experiences and forms a team spirit that lays the ground for an increase in performance.
In order to have good revenues and, ultimately, good profits, a company needs to form a positive brand recognition and customer satisfaction. This customer satisfaction is what is shown in the market surveys of the 65% of customers returning to our company because of the customer service and experience with the sales staff.
The Board has correctly pointed out that the company does not need a ‘classroom based type of learning where sales personnel learn how to conduct a sale’. It is true that the STP has formed a good relationship between the old and new sales people but it is not the most important factor in developing the company’s working culture. In fact, as even the mentioned results show, this working culture which generates customer satisfaction is formed during the daily contact with them. Another important factor is the management policies effectuated from the management board at all levels. Thus the cutting of the STP program will not have a major impact on this situation (Gomez-Mejia et al, 2008).
Furthermore, the good relationship between the old and new sales persons can be achieved even without the implementation of the STP. The sales units can be rearranged in order to make old sales persons work with new ones.
This way the new ones will learn and apprehend from the experience of the old ones. This is the best practical training a company can give. In accordance with the good psychological factors already within the workforce, a feedback system can be installed in order to collect their ideas and recommendations regarding new product development or techniques. This will ensure that everybody continues to feel involved and will definitely have a positive impact on their morale and, thus, performance.
References:
Gomez-Mejia, R. et al. (2008) Management: People, performance, situations. New York: McMillan.
Rogers, S. P. (1998) “TechnoSport: Communicating to prevent change”, Business Communication Quarterly, vol. 60, no. 1, p. 139-146.