Monday, August 21, 2006

Sales and Statistics


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Jeff Angus, author of Management by Baseball, has a new post that caught my interest. It was about the Red Sox' Josh Beckett and Management by Exception. The cool thing about Jeff is that he is a sabermatician and, as such, he seems to always include some really profound statistics to make his points. Today I'd like to try that too. Bob went into Memorial Day with only 8 opportunities in his pipeline. Those 8 were 14 short of what he needed to have in his pipeline so there was a directive to fill the pipeline. By Independence Day, those 8 opportunities had been deleted - they were stale - and they were replaced by about 20 new opportunities. As we head into the home stretch of the summer and Labor Day, Bob's pipeline now has 32 opportunities worth an estimated $362,000. As a sales manager, we can judge Bob on any of the following metrics: Attribute......... Before Memorial Day......... After Memorial Day Closing.......... Good.................................... Bad Prospecting.. Poor..................................... Excellent Qualifying...... Fair........................................Good Referrals....... Fair....................................... Good Sell cycle...... Too Long.............................. Better If we judged Bob on sales alone we would have to give him failing grades for the 2nd quarter. If we judged him on his effort and his willingness to change and adapt, he gets an A. How do you judge your salespeople? How you do make sure that salespeople aren't being judged by sales alone?
(C) Copyright 2006 Objective Management Group, Inc.

1 Comments:

At 9/05/2006 09:36:00 AM, Anonymous Mark Stiffler said...

Measuring salespeople cannot be done in a vacuum. As I describe in my book, PERFORMANCE: Creating the Performance-Driven Organization, to effectively drive the performance of everyone in the sales force, five different components of sales performance management must be looked at holistically. They include the following:

1. Align the objectives, initiatives, size, structure, and quotas of the sales force and the goals, opportunities, and quotas of the salespeople.
2. Measure sales force and salesperson performance against the sales force objectives and the salesperson goals and quotas.
3. Reward salespeople for performance by linking the achievement of goals and quotas, demonstration of competencies and cultural values, etc., to compensation.
4. Report sales force and salesperson performance to help people understand what they need to do to improve.
5. Analyze execution of sales strategy to determine needed modifications to the strategy, tactics, personnel, budgets, and other aspects of managing the sales force.

Absent the context for measurement in the form of objectives and goals, absent the link between measurement and pay, and absent frequent, timely feedback on performance against the measures, sales leadership has no way to effectively and efficiently drive the right selling behaviors.

 

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