Is 3D printing going to radically change manufacturing as we know it? I see General Electric investing mega millions in 3D printing of components for jet engines. The top management at GE sees additive technologies as the future of manufacturing. Hewlett Packard sees the 3D printer as their big consumer product of the next 10 years. They think it will stand next to the traditional computer ink printer business as a profit center by the 2020s.
I ask you, the smart folks of old school manufacturing, is 3D the next big thing, or just an interesting adjunct technology like wire EDM, Waterjet, and laser?
Malcolm Gladwell, the fascinating author of Blink and David and Goliath, calls NFL football a “moral abomination.” He argues that one third of the players will sustain life altering injuries. He sees football losing the interest of young men across the country, except in the Southeast and Texas. He thinks Roger Goodell is clueless about what to do about the players and the sport and that the game is headed toward extinction.
I love Gladwell as a writer, but I think he is overstating the case on pro football. The game is still coining money because the TV Networks are starved for programming that reaches a male demographic. The incredible popularity of Fantasy Football (i.e. legal gambling) has given the game an enormous shot of testosterone. But Fantasy Football does not require a live audience. The games could be played without people in the stands and still provide the statistics for betting.
Personally, I have lost my taste for NFL games, unless an artist like Aaron Rogers or Peyton Manning is playing. The Chicago Bears bore me. The injuries in every game make me feel like I’m in Rome at the Coliseum watching the Gladiators.
I heard an incredible journalistic piece by Ira Glass and cohorts on his NPR radio program, “This American Life.” Glass followed a car dealership, Town & Country Jeep Chrysler Dodge on Long Island, for a month as it attempted to meet the quota of 129 new cars to be sold in October of 2013. He followed the eight salespeople and the sales manager as they struggled to meet the formidable goal, knowing that their livelihoods hinged on hitting that arbitrary number. Chrysler paid a bonus of $85,000 to the dealership each that it hit its quota, but one less car sold meant the dealership received nothing. Commission and bonuses all were contingent upon hitting the magic number.
Glass found out that the dealership often lost money on sales toward the end of the month as the salesmen became desperate for deals. He interviewed all of the people on the floor, exploring what made one guy, Jason Mascia, a 28-year-old “sharp dresser” with bursting self confidence and off-the-map drive, outsell every other salesperson every single month.
The story absolutely fascinated me from a human interest standpoint, but also from a business point of view. I wrote a piece several years ago for Screw Machine World (predecessor of Today’s Machining World) about a small machining company in Iowa whose management set goals for shipping a preset amount of product each month. If the goal was met, the employees got a shopping spree at the local grocery.
Personally, I have found it difficult to set useful sales goals in a used machinery business selling illiquid but valuable used machinery, but I know that other companies do manage to do it. I have set sales goals for Today’s Machining World, but they are more for me than other people.
I am curious how folks who read this blog use or do not use goal setting to reach financial objectives. What are the consequences of missing the arbitrary goals? Do you lose good people who can’t stand the pressure? Do you make money because there are marks that must be reached?
Question: Are sales quotas useful in your business?