What a sales-management system can do for you
By Ken Thoreson, VARBusiness
Tues., Jan. 07, 2003
In recent years, organizations have gotten better at analyzing financial statements, refining manufacturing procedures, reengineering business systems and improving marketing effectiveness. CEOs have strengthened their balance sheets with better asset management, reduced their inventory and cost levels with just-in-time methodologies, and increased direct mail and advertising effectiveness through thorough testing and reporting methods. But one area where additional improvements still can be made is the sales organization.
Smart companies are scrutinizing their strategic sales management plans, taking a closer look at everything from their pipelines to their forecasts. They are also taking a closer look at lifetime values, cost of sales, market share, sales processes and salesperson effectiveness. The reason is simple: All organizations, regardless of whether their sales are shrinking or growing, are under pressure to create a sales distribution organization that generates predictable, consistent, profitable results.
Interestingly, I see many VAR organizations that are struggling. They often lack both a strategic and tactical sales plan. Before you get too deep into your 2003 strategic plan, ask yourself what kind of sales-management plan you have in place. Such a plan must include an amalgamation of the organization's goals, individual salespeople's desires and objectives, and a common set of measurement factors that ensures all parties are focused on the right activities for generating success.
So, where should you start? Focus on creating business plans for individual salespeople that define and bring together their goals with those of the corporation, and that coordinate activities with planned marketing programs (see "Planning Pointers," above).
Sales-management planning systems dramatically refocus a sales manager to future business instead of past results. While most SFA/CRM or manual sales-management systems can enhance the effectiveness of a sales organization, they generally measure past activities and current sales funnel values. While this information is a must for all sales teams, the systems fall short by providing a rear-view mirror methodology to management.
A properly designed sales-management planning system changes all of that. With a sales-planning tool, a sales manager can monitor expected performance; coach, mentor and provide a viewpoint of past performance; and measure results against the salesperson's desired objectives. In addition, such a tool helps a salesperson and sales manager, who are looking at planned activities far enough ahead, to ensure that consistent activities are in place to build pipeline values that will provide enough prospect opportunity to exceed individual quotas or personal goals.
Like any new organizational change, the rollout of such a system must be carefully planned and explained to all salespeople. Ideally, salespeople should attend a group meeting with all members of their team, along with key members of the management team, including a CFO and any vice presidents of marketing and production. Last, it's wise for each salesperson to present a business plan and account plans to his/her peer group and management team.
We recommend that these meetings be serious events that incorporate some aspect of fun. The power of these personalized plans is actually realized when the plan is measured against actual performance. This is when salespeople get it. They recognize what it takes to achieve their personal and professional goals, and they see how creating better planning impacts performance.
KenThoreson () is managing partner of the Acumen Management Group, a sales management consulting organization based in Eden Prairie, Minn.
Copyright © 2003 Originally published in VARBusiness