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OC or BC?

806 views. 2009-8-19 13:08 |Individual Classification:Harvard Business School Review

    When reading the caption, curious you may ask yourself “What is OC and BC?”

    We talked about that “ Customer is the king”, so we define this kind of sales force which put the customers first Oustomer Control System. While those which put their district or regional managers first are called Behavior Control System.

    So what is the difference between these two different systems?

    Companies that rely on OC system focus on getting sales people to deliver certain kinds of results, and are essentially caring how they obtained this information. They pay attention on the result, you can call them Result-oriented. By contrast, firms that rely on BC systems value how their people make sales more than the number of sales they make. They are more curious about the way or methods they take, you can define them Process-oriented.

    Salespeople at OC firms enjoy considerable autonomy and are expected to use it. The company sees them as entrepreneurs who craft and execute personal strategies to find and land their customers. The reps place more importance on pleasing their customers rather than pleasing their bosses. They are always at customers’ side and negotiate with the company on behalf of their customers. At the same time, their managers are their inside speakers who will negotiate with the high level management for the sales reps benefits.

    The air in OC company is competitive, when some rep made a big deal, everyone knows it. The reward is tangible, his neighbors and mother-in-law can see or smell. Salespeople in these system have no qualms about showing off, because they consciously know they may not always have the rewards, if results fall off, they have to pay the price.

    Companies with BC systems evaluate and reward what salespeople bring to the job. Management measure what salespeople actually do. It measures what salespeople can do and what salespeople are. Yet the critical criterions are subjective and even opaque. Sometimes even the managers themselves may not be sure how they apply them. The bulk of compensation in BC system is fixed, and the variable component is tied to the attitude, behaviors and competencies that management prizes. So salespeople are attentive to any and all management cues. For them,  their first-line managers’ words weigh the same as the company’ guidance.

    Compared with OC’s reward, Reward in BC system looks more MENTAL. They purchase feelings of achievement, personal growth and self-worth deriving from solving problems and the satisfaction of offering good service. Factors such as collegiality, training, potential for promotion and office perks matter much to them.

    No matter OC or BC, no matter power of managers or customers, it is just at extreme. Many companies achieve its balance at some special point which is suitable for them.

Post comment Comment (1 replies)

Reply Amanda~ 2009-8-19 13:53
Got it~

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