Complex Problem-Solving

A decrease in sales in a cosmetics company

Tom is a sales manager in a Polish cosmetics company. He is responsible for the sale of the company in Poland. It has 8 sales representatives, each of them is responsible for sales in the area of ​​two provinces. The company has been operating on the market for over 20 years, has an established position, a wide range of loyal customers. The company offers various products, tailored to the needs of customers, therefore it cannot be said to be seasonal in production. It has products that sell well each season, so its history has not seen significant fluctuations in revenues due to seasonality. In this respect, the highest praise is due to the managers who were able to recognize the needs of the market and adapt to the needs of customers, regardless of the time of the year. The cosmetics market is not simple, but the company is doing well in it.

Tom supervises the work of his staff by planning their work and accounting for its outcomes. In addition to the basic salary, the entire sales team, managed by Tom, is also accountable for the results of their work, they receive a bonus for results. The rule is that each representative is accounted for separately, which means that he has to generate an appropriate level of sales, while Tom is responsible for the entire team, he can only count on a bonus when the entire team generates appropriate results.

Tom has been working in the company for 5 years, his team changes from time to time, because in this industry it is difficult to find loyal employees, work is hard and stressful, and companies competing on the market often "buy" the best employees. Despite these difficulties, it has never happened that Tom's team did not achieve an appropriate level of sales. Tom could always count on a bonus for results.

Until that strange, different time has come. Tom noticed that sales decrease. Most of representatives were unable to work out the assumed plan. Tom treated it as a personal failure, he felt terrible, but he decided to double his efforts. He motivated people, he helped. The next month turned out to be no better. The team also did not develop the assumed plan. The hard work of Tom and his team did not bring the planned results.

Tom would like to know the cause or reasons of the situation.


A decrease in sales in a cosmetics company

Tom is a sales manager in a Polish cosmetics company. He is responsible for the sale of the company in Poland. It has 8 sales representatives, each of them is responsible for sales in the area of ​​two provinces. The company has been operating on the market for over 20 years, has an established position, a wide range of loyal customers. The company offers various products, tailored to the needs of customers, therefore it cannot be said to be seasonal in production. It has products that sell well each season, so its history has not seen significant fluctuations in revenues due to seasonality. In this respect, the highest praise is due to the managers who were able to recognize the needs of the market and adapt to the needs of customers, regardless of the time of the year. The cosmetics market is not simple, but the company is doing well in it.

Tom supervises the work of his staff by planning their work and accounting for its outcomes. In addition to the basic salary, the entire sales team, managed by Tom, is also accountable for the results of their work, they receive a bonus for results. The rule is that each representative is accounted for separately, which means that he has to generate an appropriate level of sales, while Tom is responsible for the entire team, he can only count on a bonus when the entire team generates appropriate results.

Tom has been working in the company for 5 years, his team changes from time to time, because in this industry it is difficult to find loyal employees, work is hard and stressful, and companies competing on the market often "buy" the best employees. Despite these difficulties, it has never happened that Tom's team did not achieve an appropriate level of sales. Tom could always count on a bonus for results.

Until that strange, different time has come. Tom noticed that sales decrease. Most of representatives were unable to work out the assumed plan. Tom treated it as a personal failure, he felt terrible, but he decided to double his efforts. He motivated people, he helped. The next month turned out to be no better. The team also did not develop the assumed plan. The hard work of Tom and his team did not bring the planned results.

Tom would like to know the cause or reasons of the situation.


Which method should Tom use?





Good job! Tom repeatedly asked himself and his employees the question "why" and was able to discover the causes of the problem. But something was bothering him. The two reasons that he and his team discovered do not exhaust the list of problems. What method can he use next to discover all the causes of the drop in sales?





Tom already knows all the reasons that caused the decrease in sales. Prompt action must be taken to prevent the problem from arising again. Which method in its operating methodology has a stage where measures should be taken to prevent the problem from spreading?





Tom made a decision, he quickly implemented measures, sales should increase in the coming months, but now he is wondering what other consequences may be caused by these actions. Will they affect employees, customers or other entities? What analysis should be conducted?





Knowing all the reasons for the drop in sales, Tom should decide which problems he should deal with in the first place. Which kind of tool can be implemented at this stage?





Thanks to the methods used in the previous stages, Tom knows what problems caused the decrease in sales, he was able to take temporary actions, he examined their effects on stakeholders, he knows which problems he should deal with in the first place. He wants to take a structured approach to solving problems and eliminating them in the future. Which method would be the best here?






Hard times behind Tom and his team. The following months turned out to be a series of continuous successes. The sales team is back on the right track, they are able to successfully fulfill their duties again, the sales of cosmetics are growing.

Tom, as an experienced manager, has drawn conclusions from the situation, and if something similar happens again, he will be able to prevent the problem. He is prepared to be able to react appropriately if similar problems reoccur, anticipating the problem before it happens again. A dedicated G8D report, which he and his team prepared in the last stage of the analysis, will help him. Tom realizes, however, that the surrounding reality, the changing world has it to himself that he will be able to surprise him more than once.