School of Journalism
UNIVERSITY OF MISSOURI-COLUMBIA This case was prepared by
Charles Warner and Ron Steiner
BURNOUT
Did Hank Abbey Have To Retire?
Hank Abbey was fifty-six years old and had just been awarded
an expensive gold watch to recognize twenty-five years of service
to WMEE-TV. Elaine Monsoor the station's new, thirty-six-year-old
vice president and general manager made the presentation at a staff
luncheon in studio A. Hank's wife and three grown children were
present for the event, along with most of WMEE-TV's employees. In
addition to the watch, Hank received a congratulatory FAX from the
company's president.
Hank's family was very proud of his long service and
accomplishments, not only at the station, but in the community.
Hank was the senior account executive on an eight-person sales
staff for WMEE-TV, an ABC affiliate in a mid-sized market. Hank
had an opportunity to become local sales manager twelve years
earlier, but he had decided to remain an account executive because,
as he said, "I don't like all that administrative paperwork."
Hank had enormous respect in the business and advertising
community as well as in the community at large. He had been very
active in the Advertising Club, Boy Scouts, Red Cross, Junior
Olympics and his church. Hank had served as a board member of the
Advertising Club, was a past president, and three years ago was
named Man of the Year in Advertising by the Advertising Club--the
first media salesperson to be so honored.
Most of the salespeople who worked with Hank respected him
too, as did the national sales manager (NSM) Linda Puckett, age 40.
Whitey DiOrio had been the station's local sales manager for the
last two years, after six very successful years as a WMEE-TV
salesperson. Whitey had a reputation in the market for being an
aggressive and innovative sales manager.
Linda had been with the station for only one year, coming from
the station's national sales representative firm. Prior to that
sales experience, she had been a buyer at K,R & B Advertising.
Linda was very fond of Hank and relied on him to help her
understand the local market and local business conditions.
Although she was totally involved in national business, Linda
realized that she must gain experience in local sales if she was
ever to get consideration for a general sales manager's position
with WMEE-TV's parent company.
Although Hank appeared pleased with the recognition of the
watch and the retirement party, underneath it all he was upset. He
felt out of touch with everything going on at the station now, and
as though he hadn't really been given a fair shake. As the senior
account executive, Hank had been assigned a list containing many of
the most significant local agencies and accounts. Many of his
advertisers and media buyers were long-time friends as well as
customers. He had been through the ups and downs of business
cycles and relationships with many of the most important media
people in the market.
But Hank began to see the market changing, the television
industry changing, the station's staff changing and his assignments
changing. He continued to have large billing, but he only made his
billing quota in months that the station did very well in total
billing. Hank was often criticized by his local sales manager,
Whitey DiOrio, for not developing new business and for not making
specifically tailored marketing proposals to accounts at the client
level.
Some of the WMEE-TV salespeople continued to go to Hank to
seek advice, but others harbored resentment because he had so many
important, big-spending, repeat customers. Also, Hank's attitude
was growing more and more negative as he began to feel that his
work as an account executive was unfulfilling. During recent
months, Hank and another salesperson, Jo Alice Matter, began to
complain to each other about the station, the corporation, the
business and their jobs. They were discrete enough not to let
their negative conversations be overheard by anyone else, but when
they were together they seemed to feed on each other's negativism.
Jo Alice admired Hank and his stature in the community. She
did not care for Whitey DiOrio, feeling that he was much too
aggressive and demanding. Despite being only thirty years old, Jo
Alice felt she had been around long enough not to be asked to make
so many new business development calls and make "those silly sales
projections." Her achievement of her billing quotas was barely
acceptable--she achieved them about half the time--but certainly
not outstanding.
Whitey, as local sales manager, was trying to juggle the needs
of the diverse personalities on his staff, achieve station guotas
and make a name for himself in the company's broadcast division.
He felt he was being held back by the unspectacular performance of
his sales staff. He had some very good performers, but he began to
focus more and more on Hank as a major source of what he, Whitey,
perceived as a performance shortfall.
Whitey was getting no reinforcement of these negative feelings
about Hank from Everett Moore, the station's general sales manager,
who had progressively become less involved in the local sales
effort. Moore was required to write a lot of reports for corporate
headquarters and spend time in meetings with the new general
manager and other department heads. The new general manager,
Elaine Monsoor, had been a successful news director at another
station in the market and had no sales background. She trusted
Everett Moore and relied on him as her sales expert and mentor.
At the beginning of the year a new, corporate-dictated
compensation system had gone into effect at WMEE-TV. A major
portion (over 33%) of the local salespeople's compensation was
based on a quarterly bonus based on achievement of local sales
guotas that were based primarily on new business development. Some
of the account executives who developed substantial amounts of new
business expressed displeasure with the new system. They felt that
they missed the bonus at the end of the first quarter because some
of the staff, Hank in particular, contributed little new business.
The number-one new business producer, Allen Leach, usually had
the most new accounts on the air. Allen was not bashful about
pointing out his productivity to Whitey DiOrio and Everett Moore.
The flip side of Allen's value to the station was that he had a low
rate of account retention and repeat business. He had twice as
many accounts on his list as any other salesperson because he was
relentless about digging them up and claiming them.
At the end of the second quarter, Everett Moore called in
Whitey DiOrio for a performance review. Although local sales were
up four percent over last year, the station had missed its
projections for the second straight quarter. Moore was starting to
get some heat from the general manager, Elaine Monsoor. Monsoor in
turn was getting questions from corporate headquarters, which was
passed directly on to Whitey DiOrio.
During the performance review Everett Moore unofficially put
DiOrio on notice. "We need to see this thing turned around by the
end of the year or I will have to look at making some changes,"
Everett Moore told Whitey DiOrio.
Whitey was angry. It wasn't his fault the new business quotas
were being missed, it was primarily Hank's. "Can I force Hank to
retire?" Whitey asked Everett, "I've been building a case on paper
for six months and have warned Hank twice." "Do what you have to to
turn things around," said Everett.
The first thing Whitey did when he left Everett Moore's office
was to call Hank Abbey into his office and say: "I'm sorry Hank,
but the heat's on. Here's the bottom line: you can retire and have
a gold watch and a party--leave with honor and dignity--or I'll
give you three months notice right now and fire you. I've got a
paper trail built on you and can do it."
Hank looked almost relieved. "Great," he said, "I can't wait
to get out of here. Consider me retired!"
AUTHOR'S NOTE
While the incidents in this case are not factual, they do
represent a composite of actual events and operating practices of
some companies. This case was prepared to use as a teaching tool.
QUESTIONS
1. If you had been WMEE-TV's local sales manager, what would you
have done differently than Whitey DiOrio did?
2. What are some ways to avoid the burnout that Hank Abbey
experienced?
3. Where would you start to turn around the local sales
performance problem?
4. Is there a local sales performance problem?
5. Would you have made the same decision Hank Abbey made about
retiring instead of getting fired?
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