Who wants to work with accountable, responsible and self-directed sales people? Of course we all want these types of sales people in every sales team. Yet, most businesses do not support this by setting up their sales team to clearly measure and manage their sales performance.
Sales performance management begins with accurate role descriptions and perception, data collection, and measurement in line with set goals and strategy, however many organisations measure only one variable – sale results (outputs measures).
This type of approach leaves businesses and sales teams in the dark about how they arrived at their sales results, making it hard to replicate good results and eliminate poor results.
What is needed in sales teams are clearer measures of what constitutes good sales performance and we need to be able to measure and manage the right things.
So, what is performance and why measure it?
Performance can be equated to behaviour, as it involves what people actually do. It is observable, measurable, and can be changed through the learning and application of new behaviours. It is, however, important to select the right measure in a performance management system as performance measures can influence behaviours and attitudes within the organisation. A good performance measure will reinforce desired behaviours, while a poorly selected or incorrect measure can encourage behaviour that is unproductive and inappropriate.
An effective Sales Performance Management System measures sales results (output measures) and two additional critical variables, input and behavioural measures. The framework means this is done in a consistent and structured way. The following diagram illustrates examples of Input, Behavioural and Output measures for sales people.
By giving sales people access to explicit performance information about how they need to do their job they can begin to align themselves to organisational expectations. With adequate training and coaching to support them we will now have sales people working consciously in their roles and on themselves to achieve greater, more competent performance.
Take this opportunity to check if, or how well, your sales people know their performance measures and are they on the path to being accountable, responsible, and self-directed sales people.
Remember, everybody lives by selling something.
Sue Barrett is Managing Director of BARRETT Pty Ltd. Sue and her team are best known for their work in creating High Performing Sales Teams. Key to their success is working with the whole person and integrating emotional intelligence, skill, knowledge, behaviour, process and strategy via effective training and coaching programs and strategies. For more information please go to www.barrett.com.au.
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