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Lily's Floral Essay

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1. In order to regain its market share lost in the past year, Lily’s Floral will be rolling out a performance management and reward system for all Regional Managers company wide. Lily’s market share has been reduced by 25% by its competitors, so the company’s primary goal is to win back that share of the market. As part of the new system, two goals have been set for all Regional Managers: 1) Each region is to acquire at least five new accounts each quarter 2) each region is to have appointments with the buyers for at least ten prospective accounts. Rewards for reaching these goals include: A) Two-part quarterly bonus structure. One part is dependent on the individual manager reaching their goal, while the other part is dependent on all regions reaching their …show more content…

The designing of this new performance management and reward system was done so by thoroughly following the three steps of goal setting. The first step, setting goals, used the S.M.A.R.T. method. S) Specific - The goal is specific because it states exactly how many new accounts and prospective accounts each Regional Manager must acquire. M) Measurable – New accounts are defined as being accounts that have not placed an order with Lily’s within the past 5 years. The successful acquiring of these accounts is determined by the official submission of a purchase order. New accounts are considered prospective if the manager has confirmed an appointment with the account’s buyers to make a sales pitch. A) Attainable – The goal is thought to be attainable based on the sheer number of eligible retailers in each region. On average, there are at least 200 retail businesses selling gardening supplies that do not currently stock Lily’s products. R) Results Oriented - Goal is results oriented as it is directly in-line with the company’s goal and vision to continue to grow its business and maintain its position as the country’s #1 fertilizer provider. T) Time Bound - Goal is time bound as it is measured on a quarterly

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