It’s important to be on the same page, not only with a few definitions, but also with sales management styles, since the handling of performance measurement and reporting can be different.
- Before we begin this course, it's a good idea to get on the same page as it pertains to management style and philosophy. Each of us has developed our own methods of managing our teams or if we're new to a leadership position, establishing a foundation of techniques to use. I've always believed that the most effective approach is to gather the best practices from a variety of people and sources. I then customize it to fit my personality and management style.
There are so many great books on management, seminars you can take and also courses right here in the library for you to watch. This holds true for performance measurement and reporting too. There's not perfect plan for each of us to follow or a format that works for every organization. What you need to do is develop the process that works best for you and the company, and frankly, most importantly, for each salesperson you work with. For me, I've looked at performance management in three broad categories, coaching and training, personal objectives, and financial.
So with this course, everything you may hear may not be exactly how you want to follow it for yourself, but it's my hope that it triggers you to think more, evaluate how you're handling performance measurement now, and enhance your existing reporting and evaluation methods. However, performance measurement should be a process focused on improving each individual and our sales teams. It must be viewed positively and be a part of our overall coaching and training responsibilities, too.
The terminology for this course is straightforward, but here are three that I want to define in greater detail. Sales performance management is the ongoing process of communication between a sales manager and their reports. It should occur throughout the year, in support of accomplishing the strategic objectives of the organization. It involves monitoring and guiding the staff to improve their ability to sell products or services. Sales performance measurement is the regular review and analysis of outcomes and results focused on the key performance indicators or KPIs.
The KPIs are measurable values that demonstrate how effectively a sales person and sales department is achieving their critical objectives. Sales performance reporting is the collecting of sales information, leads and opportunity updates, forecasts, and actual results for distribution to various stake holders, as determined by management. Over the past number of years, the tools that we have at our disposal, to evaluate sales performance and report on it, have improved dramatically.
Account tracking systems, along with revenue and expense reports, continue to become much more user friendly and detailed. However, even with the best systems, it does come back to you as a leader, and how you're using these tools. All of this enhanced information, now available, must be used to develop, coach, and train sales teams with the objective of improving everyone's performance.
- Coaching and training
- Handling performance appraisals
- Forecasting targets
- Measuring metrics