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2014 Sales Territory and Quota Planning
2014 Sales Territory and Quota Planning
2014 Sales Territory and Quota Planning
2014 Sales Territory and Quota Planning
2014 Sales Territory and Quota Planning
2014 Sales Territory and Quota Planning
2014 Sales Territory and Quota Planning
2014 Sales Territory and Quota Planning
2014 Sales Territory and Quota Planning
2014 Sales Territory and Quota Planning
2014 Sales Territory and Quota Planning
2014 Sales Territory and Quota Planning
2014 Sales Territory and Quota Planning
2014 Sales Territory and Quota Planning
2014 Sales Territory and Quota Planning
2014 Sales Territory and Quota Planning
2014 Sales Territory and Quota Planning
2014 Sales Territory and Quota Planning
2014 Sales Territory and Quota Planning
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2014 Sales Territory and Quota Planning

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It’s 2014 planning season for sales operations departments. Once again the time has come to figure out how to keep your Executive Team, Sales Leaders, and most importantly your Sales Reps happy, …

It’s 2014 planning season for sales operations departments. Once again the time has come to figure out how to keep your Executive Team, Sales Leaders, and most importantly your Sales Reps happy, motivated and successful for the coming year. In this presentation learn the keys to effective quota and territory planning for 2014 including:

-Defining quota & territory program hierarchies that mirror your business
- Creating territories & distributing quotas quickly to get your sales team selling on day one of the new year
-Aligning quotas to corporate targets to ensure the alignment of your entire organization
-Providing real time historical performance analytics & opportunity based metrics to aid in territory segmentation & realistic goal setting

CallidusCloud, the Sales Management Association and Accenture cover best practices for managing an effective process that results in timely, accurate quotas, and effective territory assignments.

To view the full webcast go to:
http://bit.ly/1546Ha3

Published in: Business, Education
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  • 1. © Copyright 2013 The Sales Management Association. Sales Management Association Webcast 12 September 2013 Presented by Territory and Quota Planning Checklist: Preparing for 2014 #SalesTerritory
  • 2. About The Sales Management Association Slide 2© 2013 The Sales Management Association. All rights reserved. A global, cross-industry professional association for sales operations and sales management. Focused in providing research, case studies, training, peer networking, and professional development to our membership. Fostering a community of thought-leaders, service providers, academics, and practitioners. Learn More: www.salesmanagement.org #quotaplan
  • 3. Today’s Panelists Slide 3© 2013 The Sales Management Association. All rights reserved. #quotaplan #SalesTerritory
  • 4. © Copyright 2013 The Sales Management Association. Sales Management Association Webcast 12 September 2013 Presented by Territory and Quota Planning Checklist: Preparing for 2014 #SalesTerritory
  • 5. CSO Challenges Context: Big gaps for the Chief Sales Office to close… • Talent, Incentive Compensation, Forecast %, Lead Conversion have not improved over the last 5 years • Organizations are not very good at hiring the right sales people (43% of CSOs believe they need to improve their ability consistently hire sales reps who succeed at selling) • Significant difference is performance (20% of sales people bring in 60% of the revenue for their firm, coupled with the fact that anywhere from 33% to 51% of sales reps are not making quota) • Approximately 22.5% of sales people are leaving organizations each year – recurring revenue drain For Chief Sales Officers, delivering growth has become the primary challenge for organizations and the Selling agenda has become increasingly complex… #SalesTerritory Slide 5Copyright © 2013 Accenture. Used with permission by the Sales Management Association. All rights reserved.
  • 6. Sales Effectiveness Given revenue pressures, more CSOs are focusing on improving areas related to quota and coverage Related to Quota & Coverage #SalesTerritory Slide 6Copyright © 2013 Accenture. Used with permission by the Sales Management Association. All rights reserved.
  • 7. CSOs are seeing their traditional levers not delivering traditional results… • Influence driven strategies. The challenge is “influence” – Customer and Influence Driven Interactions • Pricing/promotions /Incentives deliver less durable lift, easily matched by competitors and difficult to implement due to collaborative challenges with customers. Need for Spend Optimization • Variability Reduction Sales Processes with large variations are causing unpredictable results, lack of quota attainment and inefficient execution • Talent Dilemma - Aging workforces, lack of talent management discipline and investments are driving 70% to 80% talent gaps …while they try to capture new growth potential of disruptive forces. • Digital and mobility are catalysts to fundamentally re-architect the routes- to-market, the customer interaction processes • Convergence of marketing, sales and service to speed responsiveness and capture new customer segments and global markets • Customer analytics are moving beyond isolated optimization to E2E value chain optimization e.g. Digital Merchandizing, • Cloud/SaaS solutions offer rapid, and more widespread solutions to users CSO Complications #SalesTerritory Slide 7Copyright © 2013 Accenture. Used with permission by the Sales Management Association. All rights reserved.
  • 8. Typical Quota Process The typical process is top down, with bottom-up input from the field • Quota totals generally must equal the forecast, but over-assignment is common • Bottom-up input is less data driven and more qualitative • Hierarchies are in place before goals are cascaded and rarely adjusted • Processes differ by business unit, geography and role and are rarely documented • The most common quota management tool is Excel • Forecast science • Technology limitations • Inadequate governance and process • Over and under assignment policies • Reliance on historical performance • Intuition stacking • Static hierarchies • Rigid / forced interlock • Opportunity disconnect from forecast • Gaming & agent influence in goal negotiation • Quota frequency FORECAST & GOAL LAYERS INPUTS QUOTA QUALITY INFLUENCERS #SalesTerritory Slide 8Copyright © 2013 Accenture. Used with permission by the Sales Management Association. All rights reserved.
  • 9. Examining Quota Quality Quota Attainment Is Often More Volatile Than Perceived Total population attainment distribution Attainment distributions by role 1.7% of the population sustains top 20% attainment over three periods (44 / 2,500) The average difference between Hi & Low attainment of >50%. High Attainment Is Rarely Sustained #SalesTerritory Slide 9Copyright © 2013 Accenture. Used with permission by the Sales Management Association. All rights reserved.
  • 10. • Attainment variance and chance outliers related to quotas and coverage typically drive ~8% in excess cost and impact performance management • Why the variance and impersistence? – Resource imbalances – Over / underserved territories – “Success tax” – Gaming (Boom-Bust) – Biases due to goal size, product type, location, role, level, manager, channel, etc. Examining Quota Quality #SalesTerritory Slide 10Copyright © 2013 Accenture. Used with permission by the Sales Management Association. All rights reserved.
  • 11. Examining Quota Quality P1 P2 P3 P4 80th-100th 40% 42% 47% 46% 60th-80th 53% 51% 54% 52% 40th-60th 55% 58% 55% 53% 20th-40th 52% 53% 50% 52% 0-20th 50% 46% 44% 47% PERFORMANCE PERCENTILE GOAL PERCENTILE Goal Size As A Key Contributor To Attainment • Large goals present higher certainty • Small goals present higher variance – but greater opportunity • The top quintile typically has the lowest average goals #SalesTerritory Slide 11Copyright © 2013 Accenture. Used with permission by the Sales Management Association. All rights reserved.
  • 12. 5 Keys to Quota Success 1. Opportunities: Lead with bottom-up forecasting of known and potential opportunities 2. Methodology Alignment: Align forecasting and allocation methodologies with RTM/GTM 3. Rules Based Decision Making: Leverage minimum quotas, coverage ratios and algorithms to allocate goals 4. Rebalance: Move resources between accounts and territories based on opportunity to ensure optimal coverage 5. Measure and Correct: Make corrective action based on reporting and analytics Keys to Quota Effectiveness #SalesTerritory Slide 12Copyright © 2013 Accenture. Used with permission by the Sales Management Association. All rights reserved.
  • 13. How Technology Can Help • Standardization & Automation • Data Analysis for Decision Making • Enablement • Tracking & Monitoring Through Data Analysis #SalesTerritory
  • 14. Standardization and Automation • Systems Can Define & Support Standards • Must be Flexible • Support, Not Inhibit, Change • Automation • Workflow Processes • Communications • Supports Rapid Change #SalesTerritory
  • 15. Data Supported Decisions: Bring different sets of data together to support the decision making process. • Historical data to support recurring revenue, account retention targets • Market data – market share, addressable market, product penetration – to support new business and growth targets • Pipeline data from CRMs to support both • Training and coaching to match capabilities Data Analysis for Decision Support #SalesTerritory
  • 16. Move the Target Setting Closer to the Potential 1. Assign Targets to Accounts 2. Link Accounts to Territories 3. Assign People to the Territory Enablement #SalesTerritory
  • 17. Performance Monitoring • Not just Attainment • Ranking • Competition • Measure Performance of • The Territories • The Individuals Tracking and Monitoring Through Data Analysis #SalesTerritory
  • 18. Questions and Discussion Slide 18© 2013 The Sales Management Association. All rights reserved. Enter your questions in the “Questions” box on the right hand side of the webinar application window. Did we run out of time before we got to your question? Presenters can follow-up with you via email. Feel free to submit more questions if you’d like an offline response. #SalesTerritory
  • 19. © Copyright 2013 The Sales Management Association Thank You. #quotaplan

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