A pharmaceutical sales team, plagued by interpersonal conflict and retention challenges, underwent a transformation to foster psychological safety. Key initiatives included redesigning incentive structures, segmenting the team into smaller, specialized groups, and introducing collaboration-focused rewards. These changes led to enhanced team cohesion, reduced turnover, and improved overall performance, demonstrating the value of psychological safety in competitive environments.
Client Background:
Breaking Dysfunction in a High-Pressure Sales Environment
A pharmaceutical company with a large sales function struggled with interpersonal conflict, poor retention, and unhealthy competition. A flat hierarchy and individual-focused incentives created a toxic environment where employees competed rather than collaborated. Leadership recognized the urgent need for change to rebuild trust, foster engagement, and improve team performance.
Project Scope:
Building Psychological Safety for Sustained Success
The project aimed to transform the sales team’s culture by fostering psychological safety, improving collaboration, and addressing systemic issues. This included analyzing incentive structures, redefining team dynamics, and creating a framework for long-term cultural change.
Key Initiatives:
Redesigning Incentives and Fostering Collaboration
Team Restructuring: The large, flat sales team of 75+ members was segmented into smaller, specialized teams based on location and expertise to foster closer relationships and shared goals.
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Incentive Redesign: Incentives shifted from purely individual sales targets to a combination of team-based and individual rewards, with additional bonuses for assisting activities.
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Encouraging Collaboration: Structures were introduced to ensure collaboration was rewarded. Sales representatives could now earn bonuses for supporting team efforts, reducing fear of vulnerability or competition.
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Promoting Long-Term Wins: Quarterly targets and bonuses were adjusted to discourage prioritizing short-term, low-value deals over larger, long-term opportunities, aligning incentives with sustained growth.
Results & Impact:
A Cohesive and High-Performing Sales Team
Improved Collaboration: Team members began working together on deals without fear of losing incentives, fostering stronger relationships.
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Enhanced Psychological Safety: Employees felt safer admitting mistakes, sharing ideas, and seeking help from colleagues.
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Retention Improvements: Turnover rates decreased as the team culture became more supportive and inclusive.
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Higher Team Performance: While individual "rock star" performances slightly declined, overall team sales and deal sizes significantly improved.
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Sustainable Growth: The organization experienced more consistent results, focusing on long-term wins rather than short-term targets.
Conclusion:
The Power of Psychological Safety
Fostering psychological safety transforms workplace dynamics by encouraging collaboration, trust, and open communication. Through thoughtful changes to team structures and incentive systems, organizations can create environments where employees feel valued and supported. These shifts not only improve retention and engagement but also drive long-term business success.
