In the PPO preparation steps section, we noted that the forecasts of each level
of the business form the basis for the forecast of the next level of the business.
Therefore, in the interest of all concerned, the manager must control the
direction of the discussion to avoid the sandbagger (the person who grossly
underestimates their future results) or the blue sky (overestimating)
forecasting of the over-zealous salesperson.Consider that if each person overestimated their results by only 5%, by the time
the figures pass from the salesperson to the department manager, to the sales
manager and to the general manager, the data is inflated by over 20%.
How is personal performance outcomes used?
After the PPO are written and agreed upon, there are at least two times during
the year that PPO should be reviewed: fiscal year mid point and year end.
The initial agreement
Once PPO are agreed upon, they should be typed, signed and dated with a copy
for filing and a copy given to the individual involved. It is a good idea to set a
time of six months into the fiscal year to review the progress made in achieving
the PPO.
Year mid-point review
Sometime around mid point of the fiscal year or mid point of the time assigned
to the PPO, there should be a review of them.
The manager has to be careful, though, not to allow these review meetings to
devolve into an excuse session. Again, employees are given plenty of notice of
the meeting and advised to come prepared.
The reasons for the interim review are:
Some counselling or help from the manager may be necessary.
Something extraordinary may have occurred beyond the employee's
control.
It may be necessary to adjust the PPO.