The pressure on the Sales System was so high that, in hindsight, some people in the Organization joked about the KPIs discussed in the Monthly Review meetings. Apparently, instead of tracking business metrics such as Revenue, Profits and Inventory, the nos of new distributors appointed in the period took a lion’s share of the Management’s time during these discussions. Energies were focused on new distributor appointment to the exclusion of other vital business metrics.

It all started unravelling in less than a year. Suddenly, pressure mounted on Cash Flows and Collections. Bad Debts mounted. Inventories piled up. Revenue flattened and had started to decline; profits nose-dived. As a consequence, every function and department started looking out for their own, narrow goals and, the Organization as a whole, suffered.

It took a concerted company-wide program to reverse the trends. Only A Class distributors were retained. Stringent Cash Management systems were put in place. Top Leadership reviewed progress on a daily basis. In the following 2 years, Revenue grew 50% and Profits (PBT) multiplied Six times.