#2 Insufficient Accountability

Insufficient Accountability – There are quotas, sales managers, and a compensation plan, yet revenues and profits are lagging. Why?

  • Only revenue is being measured and not sales activities.
  • Sales managers only work with reps after they miss their quota.

We call this Revenue Myopia, here are the symptoms:

  • Some reps make quota by closing one or two big deals
  • Successful reps consume more resources than all the other reps
  • Some reps reach their quota, while under-delivering on margin
  • Some territories and quotas are inappropriate

Revenue Myopia causes the following:

  • Not knowing why a rep is underperforming
  • Not understanding the daily behaviors that lead to outstanding performance
  • Inaccurate or incomplete forecasts
  • Little timely performance feedback provided to reps
  • Keeping reps that bring in low-margin business because they reach quota
  • Not understanding what stops reps during the sales process
  • Not tasking sales managers to coach their reps

Items to think about and implement:

  • Determine which activities to measure and how to measure them
  • Create appropriate territories, assignments, and quotas
  • Develop sales scorecards for daily/weekly feedback and coaching
  • Learn how to use sales scorecards to evaluate and develop reps
  • Design communication and processes to improve forecast accuracy

Still not sure what to do or how to implement? Contact Pivotal Advisors and learn more about our approach to strategic direction and sales growth. Email janderson@pivotaladvisors.com or call 952.226.3381.

This entry was posted in Top Ten Factors that Stop Sales Growth by Gary Braun. Bookmark the permalink.

About Gary Braun

Gary is a founder and owner of Pivotal Advisors dedicated to improving sales force effectiveness by consulting with CEO’s and sales leaders on the critical elements required for superior performance. Gary is experienced in planning and implementing sales strategies in highly competitive technology markets. He works with sales leaders to identify key areas within sales team for improvement, instruction on the use of technology, and how it helps provide structure for teh sales leader to get the most out of his/her team and be more productive within the organization. As a sales leader, Gary's teams had continual growth in year over year's sales and led successful engagements with companies including Microsoft, Symantec, VMWare, Compuware, Sun Microsystems and Electronic Arts.

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