Comments on: Face to the Customer Organization Design – A Critical Decision. Farewell to Circuit City http://www.missionmindedmanagement.com/face-to-the-customer-organization-design-a-critical-decision-farewell-to-circuit-city Equipping Managers via Requisite Organization Systems Design. Talent Management, Leadership, Organization Design. Mon, 30 Jan 2012 07:30:40 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Michelle Malay Carter http://www.missionmindedmanagement.com/face-to-the-customer-organization-design-a-critical-decision-farewell-to-circuit-city/comment-page-1#comment-2621 Michelle Malay Carter Mon, 26 Jan 2009 16:52:00 +0000 http://www.missionmindedmanagement.com/?p=536#comment-2621 Hi Forrest, I got the link fixed, thanks. Yes, Circuit City moved from commission to hourly wages, the net effect was slashed by for the high performers. Yes, I think your passive poaching strategy has merit. Michelle Hi Forrest,

I got the link fixed, thanks. Yes, Circuit City moved from commission to hourly wages, the net effect was slashed by for the high performers.

Yes, I think your passive poaching strategy has merit.

Michelle

]]> By: Forrest Christian http://www.missionmindedmanagement.com/face-to-the-customer-organization-design-a-critical-decision-farewell-to-circuit-city/comment-page-1#comment-2620 Forrest Christian Mon, 26 Jan 2009 16:19:21 +0000 http://www.missionmindedmanagement.com/?p=536#comment-2620 (The link to the prior article is broken.) Radio Shack, another US-based electronics retailer, did something similar a few years back. They didn't reduce base pay for floor salespeople: they raised it. But they changed the commission structure. It meant that the top sales people, some of whom made $100k annually, made considerably less. It seemed like such a good idea. Here, at least, all of the top salespeople went to Best Buy. Perhaps another lesson is that when your competition does something stupid like that, it's time to add to the cream in your organization. (The link to the prior article is broken.)

Radio Shack, another US-based electronics retailer, did something similar a few years back. They didn’t reduce base pay for floor salespeople: they raised it. But they changed the commission structure. It meant that the top sales people, some of whom made $100k annually, made considerably less. It seemed like such a good idea. Here, at least, all of the top salespeople went to Best Buy.

Perhaps another lesson is that when your competition does something stupid like that, it’s time to add to the cream in your organization.

]]> By: Michelle Malay Carter http://www.missionmindedmanagement.com/face-to-the-customer-organization-design-a-critical-decision-farewell-to-circuit-city/comment-page-1#comment-2618 Michelle Malay Carter Sun, 25 Jan 2009 23:48:14 +0000 http://www.missionmindedmanagement.com/?p=536#comment-2618 Hi Wally, Thanks for stopping by and for the comment. Yes, the key word is sell. Many companies have proceduralized the simple OFFERING of these items, which is level 1 work. Would you like fries with that? But offering a list of reasons why it make sense given the circumstances, i.e. selling it, is a higher level task. Michelle Hi Wally,

Thanks for stopping by and for the comment.

Yes, the key word is sell. Many companies have proceduralized the simple OFFERING of these items, which is level 1 work. Would you like fries with that?

But offering a list of reasons why it make sense given the circumstances, i.e. selling it, is a higher level task.

Michelle

]]> By: Wally Bock http://www.missionmindedmanagement.com/face-to-the-customer-organization-design-a-critical-decision-farewell-to-circuit-city/comment-page-1#comment-2617 Wally Bock Sun, 25 Jan 2009 20:03:06 +0000 http://www.missionmindedmanagement.com/?p=536#comment-2617 One other thing that the less capable and less experience sales staff were not able to do was sell add-ons, such as service plans and extended warranties. One other thing that the less capable and less experience sales staff were not able to do was sell add-ons, such as service plans and extended warranties.

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