How to Motivate Fred Maiorino
Fred Maiorino was a successful sales manager for Schering-Plough for over 31 years before Jim Reed was appointed general sales manager over the South Jersey sales district. Upon Jim Reed’s arrival he implemented several changes to try to increase sales and motivate staff. Jim Reed was unsuccessful at motivating Fred. Fred Maiorino was later terminated after countless unsuccessful attempts were made to motivate him. After analyzing the situation Jim Reed lacked the management skills needed to motivate Fred a successful employee of over 31 years.
Jim Reed’s unsuccessful leadership attempt and a failed appraisal system were factors in the demise of Fred ...view middle of the document...
This case study demonstrates the importance of using evidence-based methods in organizations attempting to improve employee performance, rather than subjective techniques.
Jim Reed made several suggestions to Fred Maiorino to help him improve his sales performance, but rather than using evidence-based techniques, Jim made suggestions and spur-of-the-moment ideas, even admitting that Schering had not necessarily authorized him to use historical sales results as benchmarks for Fred to follow (Buller & Schuler, 2011). Reed's suggestions included identifying “whales” in certain zip codes, and attempting to court them through meetings that would be sponsored by certain organizations, and making regular call intervals. While Fred followed these suggestions, it did not help him boost his sales of two key products to the same extent that these products had increased in their market share (Buller & Schuler, 2011). This idea may not have succeeded because the doctors, which Fred was told to focus on, may have simply preferred competitors' products, or they may have felt that by prescribing some Schering products, they were doing enough to help Fred. In essence, Reed's suggestions did not go far enough in helping Fred to identify the source of his lackluster sales and provide specific remedies to assist him in meeting sales goals. Instead, they seem to have just been vague ideas that were not backed by actual sales success.
It is unclear if Fred's probationary period and the seriousness of his situation were made clear. The dialog suggest that Fred only assumed that he was in conflict with a new boss, but his job was not in danger; instead, he seems to have simply been stressed from the way that Jim treated him, as shown in his change in personality (Buller & Schuler, 2011). Jim failed to inform Fred that he was spot checking Fred's driveway to determine if he was making sales rounds by 8:30, and therefore, Fred was not motivated through the reality of his situation. Both in terms of threat of punishment, which was unlikely to result in much improvement or through presenting positive encouragement, Jim failed. Rather than encouraging Fred to use his strengths, such as his vast network of contacts in the area that was developed through years of experience, Jim instead focused on single issues, such as the sales rates of two drugs that may have seemed to minimize the issue in Fred's eyes.
To effectively improve Fred's sales situation, there are a variety of options that Jim Reed could have used, which would have been based on evidence in the literature, and “best practices” of other sales organizations. These options include data mining and customer relationship management (CRM) strategies as well as pay for performance incentives. Data mining and CRM is one strategy that could have been implemented within Fred's sales department, which would have used the sales figures, prescription information of physicians, and other information to compile a...