When pressure on managers results in misleading data Premium

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IESEG professor João Vieira da Cunha explores the impacts of pressure on teams and their managers. Particularly in sales, he finds that pressure to meet goals can push teams and managers to misreport figures. In such cases, company strategy is then informed by misleading data, which has been calculated to impress rather than to inform.

Hitting targets, outselling competitors, even outperforming colleagues is all part of daily life in sales. A race to hit numbers is often encouraged by management, with employees and managers receiving bonuses for reaching sales goals. But how do such pressures impact reporting? How accurate are the sales figures that get reported? And are these sales truly driven purely by monetary incentives? According to Professor João Vieira da Cunha, the pressures on sales teams are in fact often counter-productive.

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