In the world of sales, there are often no right answers. What would you do in this tough sales situation? Make the call below, and see instantly how your judgment compares. Final results will appear in LBM Journal. Be sure to check back next month for a fresh Tough Call.

Tough Call - Lean...and Mean?

You’re facing staff cutbacks for the first time. What would you do?

You’ve taken great pride in growing Straight & True Lumber from a small local lumberyard into a major supplier of building materials in your market. And you’re proud that as the company has grown, two of the handful of original employees, Bob Gray and Joe Older, are still on the payroll. Today, Straight & True has 12 salespeople— all of whom you’ve hired and trained personally (except for Bob and Joe, of course). A solid reputation in the community, great relationships with builder customers, and a well-trained staff have earned your company an enviable market position.

Unfortunately, the housing slump has slammed your market pretty hard. New homebuilding is at a near standstill, leaving you and your competitors to scramble for the few remaining remodeling and light commercial jobs. You’ve pored over your operations and cut all expenses that wouldn’t cripple your business. The one cut that your accountant recommended, and you refused, was to cut staff. But with the reserves built up during the recent housing boom nearly depleted, and no flood of purchase orders expected anytime soon, you now have no choice but to reduce headcount.

The more you’ve thought about it, the more you realize that this could be a good thing for your company. Bud, an old friend with decades of business experience, has urged you to take a critical look at all of your people to make sure that a) they’re in the right job, b) they share your vision and values, and c) they’re the best available. He says if someone isn’t the best fit, let them  go now while business is slow. On the flipside, this process may help you identify some core employees that you can groom and train for leadership roles when the building cycle begins its ascent.

After careful examination, you’ve identified three employees whose absence wouldn’t be the end of the world.

– Sam “The Expert” Smith. Sam knows a lot about a lot of things—and he makes sure everyone around him knows it. He’s a steady worker, but the audible groans when others are assigned to work with him speak volumes.

– Hillary “The Maverick” Hall. Hillary is never the top salesperson, but her numbers consistently place her in the top four. You like her performance, but don’t like her attitude. Simply put, Hillary is not a team player.

– Bob “Grandpa” Gray. Bob is consistently your lowest-performing sales rep. However, what he lacks in performance, he makes up for with attitude. He’s well liked, shares your views on nearly everything, and spends time helping the younger reps.

All three are good people; all three have families to support, and none of them have committed an egregious act against you or
the company. For the sake of your business, you have no choice but to let one, two or all three of them go. What would you do?

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