Harvard Case - Drishti Eye Centre: Managing a Sales Force
"Drishti Eye Centre: Managing a Sales Force" Harvard business case study is written by Rajeev Kumra. It deals with the challenges in the field of Organizational Behavior. The case study is 12 page(s) long and it was first published on : Mar 1, 2017
At Fern Fort University, we recommend Drishti Eye Centre implement a comprehensive strategy to address its sales force challenges. This strategy should focus on building a strong, motivated, and customer-centric sales team through a combination of organizational development, leadership development, and talent management initiatives.
2. Background
Drishti Eye Centre, a leading eye care provider in India, faces challenges in managing its sales force. Despite a strong brand reputation and a growing market, the company struggles with low sales conversion rates, inconsistent performance among sales representatives, and difficulty in attracting and retaining top talent. The case highlights the need for a strategic approach to address these issues and improve sales performance.
The main protagonists of the case study are Dr. Sharma, the founder and Managing Director of Drishti Eye Centre, and Mr. Kapoor, the Sales Manager. Dr. Sharma is passionate about providing quality eye care but faces challenges in managing the sales team. Mr. Kapoor, while dedicated, lacks the leadership skills and experience to effectively manage the team and drive sales growth.
3. Analysis of the Case Study
To analyze the situation at Drishti Eye Centre, we can utilize several frameworks:
a) Organizational Behavior:
- Leadership Styles: Dr. Sharma's leadership style appears to be more focused on technical expertise and clinical excellence rather than sales management. This lack of focus on sales leadership contributes to the team's inconsistent performance.
- Organizational Culture: The current culture at Drishti Eye Centre seems to be heavily focused on clinical care, with less emphasis on sales and customer service. This creates a disconnect between the sales team and the rest of the organization.
- Team Dynamics: The sales team lacks cohesion and motivation. The absence of clear goals, performance metrics, and recognition programs contributes to low morale and performance.
- Motivation Theories: The sales team lacks intrinsic motivation and a sense of purpose. The current compensation system, which focuses primarily on commissions, fails to address the need for recognition, growth opportunities, and a sense of belonging.
b) Human Resource Management:
- Hiring and Recruitment: Dr. Sharma's preference for hiring experienced ophthalmologists as sales representatives, while well-intentioned, is not necessarily the most effective approach. This strategy overlooks the importance of sales skills and customer service orientation.
- Talent Management: There is a lack of structured training and development programs for the sales team. This hinders their ability to acquire the necessary skills and knowledge to effectively sell and manage customer relationships.
- Employee Performance Management: The current performance management system is inadequate, lacking clear goals, feedback mechanisms, and performance reviews. This creates a lack of accountability and hinders individual growth.
c) Marketing and Sales:
- Sales Processes: The sales process at Drishti Eye Centre lacks structure and consistency. This leads to inconsistent customer experiences and low conversion rates.
- Customer Relationship Management: There is no formal system for managing customer relationships, leading to missed opportunities for repeat business and referrals.
4. Recommendations
To address the challenges faced by Drishti Eye Centre, we recommend the following:
1. Transformational Leadership Development:
- Leadership Training: Provide Dr. Sharma and Mr. Kapoor with leadership training programs focusing on sales management, team motivation, and customer-centricity.
- Mentorship Program: Pair Mr. Kapoor with an experienced sales leader from a similar industry to provide guidance and support in developing his leadership skills.
- Delegation and Empowerment: Encourage Dr. Sharma to delegate sales responsibilities to Mr. Kapoor and empower him to build a high-performing team.
2. Organizational Development and Culture Change:
- Define Sales Goals and Metrics: Establish clear sales goals and performance metrics for the sales team, aligning them with the overall business objectives.
- Develop a Sales Culture: Create a culture that values sales, customer service, and teamwork. This can be achieved through recognition programs, team-building activities, and regular communication about sales performance.
- Implement a Customer Relationship Management (CRM) System: Invest in a CRM system to track customer interactions, manage leads, and improve customer service.
3. Talent Management and Recruitment:
- Develop a Structured Training Program: Create a comprehensive training program for sales representatives, covering product knowledge, sales techniques, customer service, and communication skills.
- Implement a Performance Management System: Establish a robust performance management system that includes clear performance goals, regular feedback, and performance reviews.
- Re-evaluate Recruitment Criteria: Adjust recruitment criteria to focus on sales skills, customer service orientation, and communication abilities, rather than solely on clinical experience.
- Offer Competitive Compensation and Benefits: Provide competitive compensation and benefits packages to attract and retain top talent.
4. Sales Process Optimization:
- Develop a Standardized Sales Process: Create a structured sales process that outlines the steps involved in selling services, from lead generation to closing deals.
- Implement Sales Automation Tools: Utilize sales automation tools to streamline sales processes, track progress, and improve efficiency.
- Focus on Customer Experience: Prioritize customer experience by ensuring seamless communication, personalized service, and follow-up after appointments.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with Drishti Eye Centre's mission to provide quality eye care by focusing on improving customer experience and sales performance.
- External customers and internal clients: The recommendations prioritize customer satisfaction and employee engagement, ensuring a positive experience for both internal and external stakeholders.
- Competitors: The recommendations aim to position Drishti Eye Centre as a leader in the eye care industry by implementing best practices and leveraging technology to improve sales performance.
- Attractiveness: The recommendations are expected to improve sales conversion rates, increase revenue, and enhance the overall profitability of the organization.
6. Conclusion
By implementing these recommendations, Drishti Eye Centre can overcome its sales force challenges and achieve its growth objectives. The focus on leadership development, organizational culture change, talent management, and sales process optimization will create a high-performing sales team that drives revenue growth and enhances customer satisfaction.
7. Discussion
Other alternatives not selected include:
- Outsourcing the sales function: While this could provide immediate access to experienced sales professionals, it might not be the most sustainable solution for Drishti Eye Centre in the long term.
- Focusing solely on marketing: While marketing plays a crucial role in generating leads, it is not a substitute for a strong sales team.
Key assumptions:
- Commitment to change: The success of these recommendations relies on the commitment of Dr. Sharma and Mr. Kapoor to implement the changes and embrace a customer-centric approach.
- Availability of resources: Drishti Eye Centre needs to allocate sufficient resources for training, technology, and other initiatives to support the implementation of these recommendations.
8. Next Steps
- Develop a detailed implementation plan: Outline specific timelines, milestones, and responsibilities for each recommendation.
- Secure leadership buy-in: Ensure that Dr. Sharma and Mr. Kapoor are fully committed to the implementation of the recommendations.
- Communicate the changes to the sales team: Clearly communicate the rationale behind the changes and involve the team in the implementation process.
- Monitor progress and adjust as needed: Regularly track the progress of the implementation and make adjustments as needed to ensure success.
By taking these steps, Drishti Eye Centre can transform its sales force into a strategic asset that drives growth and enhances the organization's overall success.
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Case Description
As a small-scale hospital located in the city of Faridabad in northern India, Drishti Eye Center (Drishti) had recently expanded its operations by diversifying into pharmaceutical sales. The founder and managing director of the hospital soon faced conflict among the members of his sales force when a young sales representative received a poor performance evaluation, which he viewed as unfair. In response to this situation, the salesman decided to join a union, a move that was completely unprecedented at Drishti. Facing a high-performing team that now found itself operating in a hostile environment, the hospital's director had to decide how best to manage the conflict.
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