The Quarterly Sales Report
Context of Case
This case involves the vice president of sales at Selit Corp. and his approach at analyzing sales data. Ron Hagler, had just received a report on the past five years of quarterly sales data for the regions that he is in charge of. After Ron looks at the sales data, he immediately calls a meeting with his regional managers to discuss what he saw. He is correct when he notifies his managers that sales rose and fell during certain quarters and years BUT he failed to understand why these variations occurred.
❖ Ron Hagler has ineffective approach at improving sales ❖ Ron doesn’t understand variation and that every process has it ❖ Risk of
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All special causes need to be removed first. It seems that the source of variation in this case is due to common causes thus the system is considered stable. Using the appropriate statistical tools, common cause variations can be predicted. Understanding and reducing variation is the key to improvement and success and to managing any system. Statistics provide an effective and efficient way of obtaining meaningful info from data, allowing managers and workers to control and improve processes. From a leadership perspective, Mr. Hagler seems to not understand what being a leader means. Being a leader means to influence and change the behavior of your workers in a positive direction to come together and work towards a mutual goal. The mutual goal here is great sales performance. Mr. Hagler’s used coercive power to try to get his sales mangers to increase sales. He tells his workers to “improve this quarter’s results or else!” Fear is not the best way to go about getting the results you want. Fear is actually a demotivator. Employees want to feel empowered and recognized for performing well at tasks. People are better motivated by intrinsic rewards. So his leadership approach could be improved as well.
Figure 1 Scatter plot of the three largest regions
Figure 2 Scatter Plot of the three smaller regions
1. Do nothing
2. Fire Ron Hagler
3. Train all managers and staff