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Alexander Group - Sales Quotas - Diagnostics and Solutions eBook
 

Alexander Group - Sales Quotas - Diagnostics and Solutions eBook

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This eBook is an excerpt from a comprehensive Sales Quotas Briefing prepared by the Alexander Group for Sales Executives.

This eBook is an excerpt from a comprehensive Sales Quotas Briefing prepared by the Alexander Group for Sales Executives.

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    Alexander Group - Sales Quotas - Diagnostics and Solutions eBook Alexander Group - Sales Quotas - Diagnostics and Solutions eBook Presentation Transcript

    • Sales Quotas Diagnostics & Solutions This eBook is an excerpt from a comprehensive Sales Quotas Briefing prepared by the Alexander Group for Sales Executives If you would like more details, we invite you to schedule a full briefing. Learn more. Atlanta | Chicago | San Francisco | Scottsdale | Stamford An Alexander Group eBook
    • What Keeps Sales Leaders Up At Night? 61% Percent of Sales Executives that cite “Goal Setting” as a top sales challenge in 2012 “We thought the sales compensation plans were to blame … that we were not providing the best incentives to our sales reps. There were bigger sales force issues driving our underperformance”. AGI 2013 Sales Compensation Trends Survey™ (127 Participant Companies) © 2013 The Alexander Group, Inc.® 2
    • Why Are Sales Quotas Important? Aligns field sales force with corporate strategy Links performance and pay Promotes dialogue between managers and sellers Ensures sales result accountability Differentiates high and low performers © 2013 The Alexander Group, Inc.® 3
    • Companies Often Get It Wrong… at a Cost Top-down approach with little rep collaboration “Let’s add 10% to last year’s performance” Late starting the process and / or releasing quotas Over allocations driven by corporate expectations Poor insight into market potential © 2013 The Alexander Group, Inc.® Increased rep turnover and low morale Increased COS (up to 20%), productivity losses (5-10%) Failure of costly overlay / support roles & processes Under penetrated territories, sales growth not maximized Failure to provide an appropriate risk / return environment 4
    • How to Address Quotas What Can You Do About It? What Are the Root Causes? Do You Have a Quota Issue? The Basics: “Fast Diagnostics” • Performance data used • Typical results and what to look for Advanced Analytics “Deeper Dive” • Proving our hypotheses Quota Solutions • Selecting a Quota Setting Methodolgy • Other Sales Effectiveness Solutions • Paired analyses with quota scorecard data • Implications • What’s your quota scorecard? © 2013 The Alexander Group, Inc.® 5
    • How Do Your Quotas Compare to the Ideal Attainment Distribution? 60-70% of Sellers Number of Salespeople 30-40% of Sellers Bottom10% of Sellers Threshold © 2013 The Alexander Group, Inc.® Top10% of Sellers Target Excellence 6
    • Hypotheses Based on Attainment Analysis What do we know, and what can we test further? Process Deployment Market Data Attainment skewness can be tied to one or more of the above © 2013 The Alexander Group, Inc.® 7
    • What Are the Root Causes? Advanced Analytics Territory Dynamics & Potential Deployment Analytics • Buyer / Transaction Analyses, CPR • Time Profiles, High Performer Analyses • Industry Segmentation Analyses • • Territory Attractiveness SIB: Are investments in the sales organization optimized? • Coverage Benchmarking, Field Enablement © 2013 The Alexander Group, Inc.® 8
    • Quota Allocation Methodologies There are several methods companies use to allocate quotas. Method Inputs Account Planning Accounts Few / Large Judgment (0-15 Assigned) Account Knowledge Many/ Medium Quantitative Many/ Small Sales Opportunity Funnel Fair Share™ (15-80 Assigned) Modified Fair Share™ Statistical Modeling © 2013 The Alexander Group, Inc.® (80+ Unassigned) 9
    • Call to Action for Sales Leadership Challenge and Understand Goal Setting Abilities Know your quota setting scorecard compared to best practice If Results are Skewed: Take Action Understand that undesirable outcomes are likely from distorted attainments Diagnose and Prioritize Solutions What and how do we fix the Quota EcoSystem? Formulate and Prioritize Solutions Solutions may be in the following: © 2013 The Alexander Group, Inc.®       Forecasting Allocation Process Crediting Go-to-Market Information Talent Deployment 10
    • Assessment Structure AGI’s typical Quota Allocation and Methodology Assessment is structured in a three layer drill-down format Top of Mind • • High level score and High level score and ‘tagline’ across 6 key ‘tagline’ across 6 key categories categories © 2013 The Alexander Group, Inc.® Quick View • • Detailed observations Detailed observations across each of the 23 across each of the 23 sub-categories sub-categories The Details • • Detailed summary of Detailed summary of quota setting and quota setting and allocation issues as allocation issues as identified by interview identified by interview participants (for participants (for Design Team review) Design Team review) 11
    • Want to Know More? Schedule a full briefing on this topic today to learn more details about Alexander Group’s Sales Quotas ViewPoint Briefing Dave Eddleman is a Principal and leader of the Alexander Group’s Atlanta office, with over 15 years experience working on a variety of marketing and sales management issues. His clients include leading companies in the telecommunications, high technology, and other diversified industries. His areas of focus are market opportunity assessment, sales and buying process mapping, sales quota allocation systems, and sales incentive compensation plan design. Igor Uroic is a Manager in the Atlanta office with experience in business strategy and sales process assessment and design. He works with companies across various industries, focusing primarily on technology, telecommunications and media/advertising. His most recent engagements include a global compensation structure redesign, a complete go-to-market strategy and channel structure assessment, and resource deployment and organizational structure design. © 2013 The Alexander Group, Inc.® 12