You are an independent management consultant and have been approached by the CEO of Rador Ltd, Ms Benin. Rador Ltd has always prepared their annual sales forecast using estimates obtained from their sales director, Mr Poole. During the previous year, Ms Nokhuna, the HR director, had brought to the attention of the Board of Directors that a feeling of discontent had been observed from the sales staff. The sales staff had voiced their concern in a memorandum to Ms Nokhuna, of which the following excerpt was shown to you:
“The sales targets just move up every year. This while we are operating in a recession! Top management has no idea what we are dealing with. We find these ever upward moving targets unrealistic and demotivating.”
REQUIRED
Advise Ms Benin as to ways that could be employed to ensure that a more balanced sales forecast is developed.