Executive Summary:

To shift your executive team away from superficial management fads and toward scientific rigor, you must phase your transformation. Rushing an uncoordinated mixture of Theory E and Theory O causes organizational “whiplash.” We outline the structural elements of both approaches and how to successfully synchronize them.

9 part series on strategies for implementing organizational changes in Sales. Access the rest below:

The Danger of Organizational Whiplash

We cannot rely on generic motivational tactics to solve structural misalignment; we must deploy a systematic, scientifically rigorous rollout.

For a sales leader, identifying the dominant theory in use is essential for understanding why certain initiatives succeed while others fail. By analyzing the organization’s processes, decision-making patterns, and “implicit contracts,” a leader can determine if the organization is following an uncoordinated mixture that may be causing “whiplash” within the team.

You cannot arbitrarily optimize territories and eliminate underperforming reps on Monday (Theory E) , and then expect a regular cadence of one-on-ones that focus on professional growth and “learning from mistakes” on Friday (Theory O).

Understanding the Competing Timelines

To systematically re-architect your sales force, you must acknowledge the timelines required for change. The expected outcome of a Theory E implementation is a dramatic and rapid increase in financial performance. The implementation is programmatic and planned, often involving a “hard” reset of the sales operating model. Conversely, Theory O implementation focuses on the long-term proposition of building a resilient sales culture. The timeline for change is evolutionary; leaders expect improvements to happen over time through a process of trial, error, and reflection. Building capability through learning and participation is a slow process that can be perceived as expensive and inefficient by capital markets. Reconciling the demand for rapid financial returns with the slow timeline of capability building is the ultimate executive test.