The ugly truth is that we, as humans, lie. We do it all the time for various reasons. A study by the University of Massachusetts found that in a 60-minute conversation, most of us lie at least once!

Add time pressure and self-interest to every sales situation, and you have a recipe for disaster.

Sales performance research tells us that a salesperson’s first instinct is to serve their self-interest. Therefore, people are likelier to lie when they can justify such lies to themselves, which takes time to consider the consequence of their actions.

According to researcher Shaul Shalvi of the University of Amsterdam, “…when people act quickly, they may attempt to do all they can to secure a profit–including bending ethical rules and lying….”

It’s a real problem

Lying in sales organizations is enormous. Surveys have shown that it can be as high as 50% in some organizations and, in some cases, almost 60% of the sales team cheats on their expense reports (Strout, E.  Are your Salespeople Ripping you off? Sales and Marketing Management, 153(2), 57-62). Those same surveys found that 45% of sales managers have caught salespeople lying to customers and that 47% of sales managers suspect that some lie to customers on sales calls.

The impact on the organization can be devastating:

• Loss of customer trust
• Loss of revenue
• Permanent damage to your brand
• Loss of high-performing, ethical employees
• And the list goes on…

Can it be fixed?

Lying occurs when “informational asymmetry” occurs. Informational asymmetry occurs when one party has more information than the other party. Implementing control systems can reduce informational asymmetry. A control system is “an organization’s set of procedures for monitoring, directing, evaluating and compensating its employees” (Anderson and Oliver, 1987).

Sales performance research identifies two control strategies – outcome-based and behavior-based control systems (Anderson and Oliver, 1987; Jaworski, 1988). A note of caution here – study and first-hand experience tell us that control systems can only reduce, not eliminate, information asymmetry. Some salespeople could still behave opportunistically and show dysfunctional behaviors, such as lying.

Monitor salespeople’s behaviors and activities rather than just their results with behavior–based control systems, which use constructive sales coaching to reduce information asymmetry. Empower salespeople and facilitate their discovery, development, and learning with effective sales management behaviors such as directive, authoritarian, and controlling (Ellinger et al., 2008; Hamlin et al., 2006). Make sure to not just focus on the numbers but how they are achieved.

Sales coaching works

Sales coaching can reduce (not eliminate) lying (information asymmetry) and other deceptive behaviors in salespeople. It creates a higher-quality relationship between the sales manager and the salesperson. With the higher quality of these relationships and the increased trust, consideration, mutual obligation, and open communication, salespeople will tend to reciprocate and tell sales managers the truth regarding their sales activities.

Create a Coaching Culture

Creating a coaching culture for a sales team is an essential step in ensuring success. Coaching helps to ensure that everyone on the team understands their roles and responsibilities and works together to reach common goals. It also helps to create a positive work environment, with employees feeling supported and motivated to perform at their best. Through coaching, sales teams can develop strategies to help them succeed long-term. Coaching also helps build trust between team members, which is essential for collaboration and open communication. Ultimately, creating a coaching culture for a sales team can lead to improved performance and increased success.

When you think about sales effectiveness at your organization, does it seem like you are close but just missing those unique elements that give you that competitive edge? Looking for a way to understand how your buyer thinks, decides, and reveals information? At The Nova Consulting Group, we believe that professional selling is a craft. With the Advanced Sales Conversation©, you have those missing elements that move your salespeople from competency to mastery. With our deep understanding of what makes and sustains high-performance organizations, we provide integrated solutions that do not replace your sales methodology and yet advance a progressive selling mindset. Be bolder, more insightful, and get results. To learn more about how to master the craft of sales and encourage sustainable high performance, call  (617) 933-7249 or email info@novaconsultinggrp.com.