Measure the Results
Results are both tangible and intangible and occur in both the short term and long term. Together they equal the total value to the client. The tactician focuses on the short term tangible results whenever there is a problem. The strategist takes the long term view and often initiates action before a problem becomes a crisis, thereby mitigating its effect, reducing cost and maintaining organizational stability and balance.
Establish the Baseline
Regardless of your view, strategic or tactical, the key to measuring results is the development of a good baseline, starting point. There are several key measurements for a sales organization, -- hit rate, cost of sales, revenue/profit, average time to close, suspects/prospect ratios, active to close ratios, $ lost to $ won (revenue & GPM), sales effectiveness vs. sales efficiency etc. The important point is to determine what is to be improved, establish the baseline for measurement, set an improvement objective, establish a timeframe, and determine the resources required.
Failure or Success?
Measurement and reporting of interim results are necessary to fine-tune program management to assure achievement of the objective. Likewise, good organizational communication is essential for continuous improvement.
A program champion or czar must be in place. This person must be a very senior manager who is respected by the organization and characterized as a person who gets things done. Weak leadership can only be tolerated in the competitor’s organization.
What’s In It for You?
Performance measurement is critical to success. If you don’t know where you started from, it is impossible to say where you’re going. Often an organization is misjudged internally and externally simply because there was no starting point for reference. Without a starting point, heroes are missed and incompetence is rewarded. If you want to be a hero, put a stake in the ground and be recognized for your improvement contributions – grow beyond the business.
What Makes Us Different/Why Us?
Our difference is that we precede every assignment with a situation analysis and establish with the client the relevant baselines and desired improvement objectives. Once these are established the resources required are defined and negotiated. We are paid based on the baseline and the value improvement generated. This upfront planning takes time. It is expensive but it results in shorter implementation periods and reduced overall cost. Quite simply, we take a strategic approach to business improvement rather than a tactical “problem fix” approach.
Key Tools, Processes and Concepts that support measuring the results:
Major Account Reviews
Sales Funnel - Multi-step
Personal Success Plan (4 Qtrs. Rolling)
Monthly Value ReportingHVS Education Seminars