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Many companies invest a significant amount of time and energy
developing their strategic plans. The identified initiatives are
then given to the appropriate departments with the expectation
that the departments will take the necessary actions to achieve
them. The initiatives given to the sales manager, who must then
convert them into specific quantifiable sales goals, may
include:
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Expand sales into new territories
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Increase market share in existing
territories
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Increase sales volume and/or
profitability of one or more product lines
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Expand the product mix in a
particular customer base
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Introduce new product lines
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Improve the profitability of one or
more customer categories
Once specific goals have been
developed, the sales manager assigns them to the sales team with
the expectation that the team will take the required actions to
achieve those goals. Sometimes, the goals are accepted with
little protest; other times, there is significant grumbling.
Nonetheless, the team goes to work.
At the quarterly review, what does
the sales manager discover? The sales team is on track with
their overall sales goal, but a closer examination reveals that
they are off track with some of the specific goals defined by
the corporate initiatives. The team is given the requisite pep
talk (or perhaps reprimand) and a reminder of the specific
goals, and then sent back to work.
At the next quarterly review, what
has changed? Not much. The team is still on track with their
overall number, but the numbers tied to the individual goals are
still askew. Why?
When the specific goals were initially given to the sales team,
the team members were expected to transform those goals into
workable sales and territory plans they would then execute. But,
there was little, if any, time dedicated to that task.
Consequently, the salespeople hit the street continuing to do
what they have always done, while making perhaps a token effort
to identify and develop opportunities related to the various
goals.
For the most part, salespeople are
not concerned with or committed to corporate initiatives in
which they had no input. Their real commitment is to generating
sales and earning commission - end of story. And, if there is
not a specific plan to which they are being held accountable,
the salespeople will take the path of least resistance even if
that path doesn't help them achieve all of the individual
corporate goals. In their mind, a sale is a sale, regardless of
whether it is for an existing product or service to an existing
customer or a new product or service to a new customer in a new
territory. If a salesperson falls short of his "new business"
quota, for instance, but is above quota with existing customers,
in his mind, he is still "hitting his numbers."
If you are a sales manager
responsible for translating corporate initiatives into specific
department goals, it is imperative that you invest time
developing a detailed plan of accomplishment to accompany the
quotas you assign. Most importantly, make it a point to involve
your sales team in the planning stage. After all, they will be
responsible for making the plan work. You can't have all the
answers and knowledge regarding markets, customers, and
products. Involving your people in the planning process can
provide you with additional perspective and insight. And, more
significantly, their participation in the development of the
plan gives them ownership in it which increases their buy-in and
commitment to it.
© Sandler
Systems, Inc. All rights reserved.
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