How many have revenue quotas for their technicians? If so, how much? Do you include contract renewals? sales leads? etc. We are implementing quotas on our techs and want to get a feel for fairness and what to include. Any input is appreciated.
Thanks

Duke,
I've been having a hard time coming up with a "good" reply. I've typed, deleted, typed, deleted, and typed again. I just don't think that it's a good idea coming up with quotas on sales leads and/or contract renewals. Maybe it is because I have a pre-disposition with the way we do things here (which by no means am I implying is "perfect"). Non-the-less: A technician is hired to fix and maintain machines. Of course we could get into a philosophical discussion about "fixing the customer" and all that but the bottom line is, they aren't sales people. As I'm sure you know, it takes a whole different personality for that. Repairing a machine that a company relies on for its day-to-day business is what drives these guys. Not talking to a customer about upgrading or renewing contracts. Believe me, they'll be the first ones to tell the customer if it is time to upgrade (they won't need a quota for that). Because although fixing the machine is what drives them... on the flipside, they hate fixing the same machine week after week because it is slap wore out and/or too small for the workload. It's great to reward your techs for sales leads and I guess even contract renewals if you have a program in place like that, but to make it a requirement (or quota) seems to be asking for trouble. That's why your customers have so much trust in the technician. There is no ulterier motive behind the technician letting the customer know that it's time to upgrade or renew their contract. If you do implement something like a quota... I'd be very interested in your feedback on how it goes (both short-term and long-term). Who knows... I may be completely out in left field on this one. However, I would hate to be at that monthly service meeting where you introduce this quota system for contract renewals! Good luck! and best regards.
What about just offering them an annual or quarterly bonus based on the number of contract renewals and/or sales leads they accomplish? That way, it isn't a requirement to do so.

This message has been edited. Last edited by: Dan Hill,

Well said Dan!

Thanks firedrum... I hope you don't take my post the wrong way, Duke. I'm all for new ideas especially when it comes to helping put money in the pocket of the field technicians! Like I said, I'm basing my statements on what I've experienced and expectations of MY field reps. I already put a LOT of pressure on my team to achieve pretty high standards. We track a lot more criteria than the Global Business Standards. We actually track and review the following on a monthly basis: Days Worked, Calls Per Day, Call Backs, Incompletes, Total Calls, Fix Rate, Call Back Percentage, Miles Traveled, Cust Hours, Travel Hours, Training Hours, Total Hours, Avg Call Time, Avg Drive Time, Avg Hours, Total Parts Cost, Parts per Call, Repair Time, Net Calls, Accountable Time, and I.T. Calls. So you see, in our case... another number to track may cause some of them to climb a clock tower and then I'd be subpoena'd next month to testify in court. Frankly, I'm surprised it hasn't happened yet! But seriously... check with your Service Manager on the issue. He/she might decide that your idea/s opens up some great opportunities! Jeez, you may even be the Service Manager! If that's the case, then your consideration for the quotas would indicate that maybe your techs would appreciate this new responsibility. Don't let my rambling discourage you. I'm just a squirrel. Good luck brother!

Dan, I'm glad you typed and re-typed, because you so nailed it. I am a tech and love technology. I could care less about quotas, bonus's, leads and all that. Give me my pay check and let me fix stuff and I will be happy. I may be an extreme case, but what motivates me is allowing me to learn/fix/be on the road.

Like Dan I typed and retyped this reply. Please let me clarify:
Dan, yes I am the service manager but also lead tech and the only IT person. I am subject to this quota too. At the meeting when it was discussed I suggested maybe call it a “goal” because we are not “sales personnel”, and was rejected.
Dan I would be the first on top of the clock tower at your company. I have been through that #’s game with a quota added on top! That was at a different company and how the idea of quotas came up. We do not keep track of as many #’s as you do since we are a small company yet we know who’s been naughty and nice.
I expect certain #’s of myself, or as Airborne put it, leave me alone and I’ll do my job probably better than if I had to worry about “making my #’s”. I also expect a certain amount of work from our techs and when this isn’t being achieved, how do we turn it around? Some have a strong work ethic, others don’t. It’s the ones that don’t that we need to find a way to motivate to do the job correctly and keep up with new technology as it develops. Several years ago, knowing the need for IT training to keep up in this industry, I paid for my own IT MCSE)training and went to night classes because the company could not afford (justify) the expense.
Adding more field #’s isn’t the answer in this case, not to mention giving me more paper work. Our techs (excluding myself being salary only) get 10% commission on all service charges, new contracts and renewals, also 10% of the profit on new copier sales (yes we are able to be “salesman” if we so choose-bad idea). Service revenue has dropped significantly in the last year and we need to light a fire somewhere to get it back. All my other ideas have been shot down and I’m out of ammo!

Duke, it is obvious your heart is in the right place, and unfortunately we are subject to the bean counter software for tracking our every move also. I have been our only IT person (paid for the Net+ class myself and passed the certification test 1st time) for a while and my numbers compared to the copier techs are atrocious (sp?).

There was a time when our hierarchy was up in arms about the time it took me to do software and hardware installs. My service manager finally got it through their heads it is a different world. Myself and others have to keep a personal log to compare with the data that is printed out on our calls as some of the data is completely wrong. I drove 800 miles in 30 minutes once! But I digress....

I know you probably don't have a choice about this, but, I would try to implement it as painlessly as possible because sometimes it can cause moral issues. Each dealership is unique, with individual personalities that create the make up. A team is a team, and I have seen some instances where quotas will cause guys not to be so forthright with helping others as it may make someones numbers better or theirs worse.

The bean counters are revenue driven like sales, I firmly believe techs are driven by a desire to troubleshoot and work on complex mechanical devices. It (like mentioned before) requires a different type of personality but at the same time we do have to exist in this type of environment nowadays.

Wish I had some more advice.

Duke,
Thanks for your candor. It sounds like you've already got a system in place that rewards your team for their contribution of sales leads and contract renewals. Your situation therefore, is much different from ours. The numbers that I mentioned in my previous post are PRIMARILY used for gauging productivity for our bonus program. It's not used much for judging them at their annual reviews, hence it doesn't affect salary. It simply creates a sort of "fun" competition. We may also review the numbers if someone is specifically asking where they can improve. That allows me to segway into this next statement: You mentioned that service revenue has decreased this last year and that you need to light a fire somewhere. That's where the focus should be at this time. Let's approach it from a "troubleshooting" viewpoint. Where exactly within the service revenue is the problem? If it is indeed a decreased amount of sales leads/contract renewals, I agree wholeheartedly with you that you would stress to the guys the importance of it. However, if you do the research and find that is NOT the case... then pushing them harder for sales leads/contract renewals is like injecting more gasoline into valve # 1 because valve # 4 is clogged. It may have acceptable short term results (hence giving you the impression that you've fixed it)... but your not addressing the specific problem.
My intentions weren't to discourage you, but rather to bring to light any ramifications that might arise. If after reading this... you still believe that new quotas ("goals") are necessary, then I'm all about it.
But let me share this: I've started a knowledgebase on our internal website for our technicians to share problems, solutions, general knowledge, etc... amongst our internal staff. More than 75% of our service staff hasn't even posted anything on it in the past year. I bring it up in every service meeting and stress how valuable it can be, especially how valuable it could become months, even years down the road. I (like yourself) contribute to it greatly and I'm not expecting any more out of them than I do myself. I do expect them to post information on this knowledgebase, but if I set a quota on it and present consequences for not doing so, I am no longer their manager... I'm their micro-manager. The trick is finding ways to get them to WANT to do it... or get them to truly understand the value of it. I'd bet that if you simply held a meeting with your service team and announced that revenue has been down in the service department, and it's really pulling the entire company down (by no fault of theirs, that's very important... don't point fingers); and then mentioned that one way you have found to help out immensely was to get more sales leads/contract renewals, you would find that those particular #s would skyrocket! You're going to have to play on their sympathies to get that to work. These guys hate to disappoint anyone. They are born troubleshooters. If you present a group with a problem, it's amazing how many of them are going to jump in to help fix it. Take this forum for instance. It preys on individuals like me and Airborne because we see a problem someone is having and we would love to be one of the key factors in helping them solve it.

You have my total respect Duke!
And I believe you are on the right track.

Yours truly,
Dan

Wow wasn't aware of this issue at all ... We give a 10% on profit sales lead spiff and a $100 bonus for all training certificates that pass with a 90 or above

quote:

Go New

I am a service manager and my company does not have quotas,but i am not against them as long as they are not part quotas.I would asume there would be leagl hurdles to over come.Would you want a company to fix your furance if you knew the tech had a part quota.If you had a new business or lead quota with prizes for the top two or three winners i think is healthy. just my two cents

Hey tech
Every business has their way... and that way is a result of that company's history. If Duke has been with this company for several years and believes that this new system is the solution... then his position as service manager shows that the executives trust his judgement (as do I). I was only describing what seems to have been working for us... which really is what this discussion was initiated for. Duke was asking for the input and I believe that you, myself and Airborne have definately provided some good feedback that he will be able to consider. But ultimately... Duke would be the best judge in this scenario. I love this kind of stuff!
Thanks for the great conversation all!

Dan

Dan and all others,
Thanks again for your concern and input. I highly value and respect the feedback and ideas expressed on this sight. I have also contributed feedback on this sight and hope I have been helpful.
My job at this particular meeting was to give a report on where the losses are coming from and to help come up with a solution. I have expressed my feelings against quotas but have been overruled. Quotas were brought up by people who knew I had dealt with them from a previous company, hence “my idea”. My quota at the other company was completely different and there was no commission, bonus or incentive other than the competition itself and it would be used against you on your review if you didn’t reach it.
As you (Dan) stated “If it is indeed a decreased amount of sales leads/contract renewals, I agree wholeheartedly with you that you would stress to the guys the importance of it”, that almost nailed it. Our service revenue, sales leads, new contracts and renewals, has declined to the point of layoffs being needed unless we find a way to replace it. If given a choice to lay off a tech or introduce quotas which way would you go?
The quota is the total amount of ticketed charges brought in by each tech. There will not be a quota setup for different types of sales, i.e. supplies, parts, contracts, etc. I have stressed the importance of it to everyone and made sure the quota will be reasonable and is already being achieved by most. What I have decided to do is add a “goal” slightly above the quota for the competitive aspect. They already have incentive getting commission on everything and I might add a bonus for the highest goal achieved if given the OK.
I feel I have done as much as possible to protect my techs, keep the quality of our service high and to implement the policy dictated by the company. If anyone has a better idea I’m all ears.

That sounds pretty reasonable. If you're experiencing layoffs... then you've got to do what you've got to do. In my opinion, I would still initially approach it in a manner so as you're asking them for help create better stability within the company rather than making it manditory (I truly believe you would get more cooperation). If they still can't (won't) do it, then unfortunately you would probably have to make it manditory "or else".
Good luck friend

Duke:
Its interesting to see other dealers struggling with the same isssues as this sometimes crazy buisness evolves. In our world we have found 2 major things are changing. 1. Techs are no longer repairing machines, they are troubleshooting the customers computers and networks, installing software, many times with the the expectation of "free support". Ironically, third party companies charge the client for their time, and rely on the dealers knowledge for information. 2. Companies are wanting to reduce outsourcing costs for color printing and therefore buying buisness color units.
So this being said, the question is how to support the techs financially, promote technical upgrading so they dont have to pay for computer training courses with "out of pocket expenses". A quaota system doesnt solve this problem in my mind. So I have 2 questions.
Do you charge for software/hard drives in machines failing etc and do you offer a cpc program for color units? I have taken some of our worst kyocera color units for service (5016) and still made a huge profit on cpc program. We offer a capped number of hours of software support and offer optional annual software agreement similar to annual fax service aggreements, designed for supporting 3rd party it professionals capped at approx 4-6 hours a year. If the client doesnt purchase they are on an hourly charge. Its taken 3 years for the sales dept to understand this policy but they are coming around. Many times I hear "the customer has a really smart network person". My response is yes, you are right, he is because he is specialized in what he does, managing servers, installing programs such as office and adobe, managing network traffic, creating users, blocking virusses and controlling network security. Wouldn't you like someone who is specialized in the product you are purchasing and its associated software for scanning, printing, faxing, and now document management solutions to be involved in that aspect in order to acheive a fast resolution to resolve your problem? That is what our service provides. It is similar to going to the doctor, asking for a prescription for medication to avoid having a heart attack, and the doctor is an opthamologist(eye doctor). They are specialized in a specific area. This analogy seems to be helping convincing client to pay. If the clients pay for the service, the quota issue may go away because the budget isnt so tight. You cant make any money on a cpc program with the customer paying less than a penny a page for all inclusive support. You will lose all of your techs. I would look at these 2 areas if you arent allready in order to protect the techs, assuming they are worth protecting. There may be some that are not, but then thats your decision instead of the bean counters. Sorry about the long rant. Hope this helps.

Lots has been said
An old post but I need to say a little.


I do not like Quotas

You know if a tech is working hard or not, and so does he.
If you want to be sure, when a call back comes in go out do the call your self. You will see his work.

Besides Quotas do not reflect hard work and can be fudged.

Good techs are miffed at quotas and bad techs learn how to cheat on them.

Measured systems for productivity are not worht a darn.

One rule, if the work needs done everyone needs to do everything and ever job no matter how unpleasant. So if the toilet needs cleaned that is equally as important as selling a machine or drum install etc.

This message has been edited. Last edited by: Yak,

quote:

Good techs are miffed at quotas and bad techs learn how to cheat on them.

I completely agree - incentives are FAR better than quotas. We pay sales commisions to techs that sell and referral bonuses for those they pass to a salesman.

We haven't paid commissions for actual service calls - most of ours are contracts, so that's what already pays them.

I do believe in frequent reviews - we review after sixty days and then every six months.
We review the number of calls completed and the number of recalls.
We NEVER encourage technicians not to use regular parts. I would always rather them replace paper feed rollers, clutches, etc. - it may prevent a call down the road.