In the video below, Motley Fool analyst Brendan Byrnes interviews Lisa McLeod, and discusses the "power of purpose" and how properly motivated and incentivized sales people can make a huge difference in a company's performance.
This concept has typically gained attention in the consumer space, where companies like Starbucks (NASDAQ:SBUX), Panera (NASDAQ:PNRA), and Whole Foods Market (NASDAQ:WFM) empower their customer-facing employees to "make a difference." Lisa contends that the effects of this mentality are amplified when considering the B2B space. For a company like Rackspace (NYSE:RAX), Lisa explains that the sales narrative becomes more important as the employee targets big-ticket sales that involve significantly more revenue than the average consumer-facing employee. Simply said, convincing a buyer at a large corporation like General Electric (NYSE:GE) to sign up for Rackspace's services has a significantly larger impact as a percentage of Rackspace's total business than the sale of a single latte at Starbucks.
Brendan Byrnes has no positions in the stocks mentioned above. The Motley Fool owns shares of General Electric Company, Panera Bread, Starbucks, and Whole Foods Market and has the following options: short JAN 2013 $47.00 puts on Starbucks. Motley Fool newsletter services recommend Panera Bread, Rackspace Hosting, Starbucks, and Whole Foods Market. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.