The annual target looked reasonable. 8% growth over last year. Achievable by the team as a whole.
Then we mapped it to individuals.
Five reps were so far behind after Q1 that the annual target became mathematically impossible. Not difficult. Impossible.
They stopped trying.
The goal gradient effect
Research on motivation reveals a consistent pattern: effort increases as people approach goals, and collapses when goals appear unreachable.
This is the goal gradient effect. The closer the finish line, the harder people run. The further away, the slower they walk.
When a rep calculates that making target would require 150% of their historical best for nine consecutive months, they don’t try harder. They disengage.
The target that looked reasonable to Finance became a demotivator in the field.
What the research tells us
Studies on sales force motivation show that perceived attainability is more important than actual difficulty.
A challenging target that seems within reach produces effort. An easy target that seems already achieved produces coasting. An impossible target produces surrender.
The perception matters more than the reality. And perceptions form early.
By March, reps have a mental model of whether their year is “alive” or “dead.” The decisions they make for the remaining nine months flow from that mental model.
The milestone solution
The answer isn’t easier targets. It’s smaller targets.
Break annual targets into monthly milestones. Better yet, weekly. Each milestone is a fresh start. A new opportunity to win.
Research shows that frequent milestones produce more consistent effort than distant goals. High performers maintain momentum. Struggling performers get regular “fresh starts” that keep them engaged.
The same annual number, reframed as 12 monthly opportunities, produces different behaviour than a single distant goal.
The different effect on different performers
Milestone structures affect performance levels differently.
Top performers (the top 20%) are self-motivated. They’ll chase annual targets regardless of structure. But milestones help them maintain intensity rather than coasting after a strong start.
Core performers (the middle 60%) respond most to milestone structures. They need regular feedback on progress. Monthly wins keep them engaged. Monthly misses create recovery opportunities.
Struggling performers (the bottom 20%) benefit most from frequent resets. An annual target they missed in Q1 is demoralising. Monthly targets give them 12 chances to succeed instead of one chance to fail.
What we changed
For the client with five disengaged reps, we restructured mid-year.
Annual targets remained. But we overlaid quarterly bonuses with monthly accelerators. Every month became a mini-competition. Every week had metrics that mattered.
The five “impossible” reps didn’t all make their annual targets. But three of them recovered to within 15%. Two had their best Q4 in years.
They didn’t find extra capability. They found reasons to use the capability they already had.
The design question
When you set targets, ask: At what point in the year will reps calculate whether their goal is achievable?
If that calculation happens once, you have one chance to get it right.
If that calculation happens monthly, you have twelve chances.
Milestone structures don’t make targets easier. They make effort more sustainable.
The target that produces results isn’t the one that’s objectively reasonable. It’s the one that feels achievable to the person carrying it.
Written by
Dieter Herbst
CEO & Founder at Herbst Group. Working with pharmaceutical commercial leaders across South Africa, Kenya, and Brazil to transform sales force effectiveness through evidence-based approaches.
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