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Sales Evaluation And Control

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Importance of Evaluation and Control

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Sales Evaluation And Control

  1. 1. Sales – Evaluation & Control
  2. 2. Sales – Evaluation & Control Business Intelligence Quantitative aspect of transforming data to information to derive knowledge through reporting and analysis of structured information
  3. 3. Sales – Evaluation & Control • The Basic Purpose Structured Approach • Inclination • Judgmental •
  4. 4. Sales – Evaluation An Effective Appraisal System Evaluation System Feed Back System
  5. 5. Sales – Evaluation Evaluation System Identify Performance Gap Short fall that occurs when performance does not meet the standard set by the organization as acceptable
  6. 6. Sales – Evaluation Feed Back System Identify Performance Information Quality of his / her performance. A two way communication
  7. 7. Evaluation – The Objective View Points Employee Organization
  8. 8. Evaluation – Employee View Point Identify Me • Tell me what you want me to do • Tell me how well I have done it • Help me improve my performance • Reward me for doing well •
  9. 9. Evaluation – Organization View Point • Principles of Accountability • Align Responsibility and Accountability at every Organizational Level • Sales Control • Measurement of accomplishment against the standard • Correction of Deviation to assure attain of objective according to plans
  10. 10. Evaluation – Management • An Ongoing Process • Ongoing Support Providing • Ongoing Guidance • Ongoing Encouragement Enhanced Organization
  11. 11. Down to Business • Evaluating Sales Representative • Why ? ? ? • To provide meaningful direction • Evaluate Performance • Communicate • How ? ? ? • Comparative Analysis • Customer Feedback • Personality Analysis
  12. 12. Evaluation Tools • Kaoru Ishikawa developed seven basic visual tools of quality so that the average person could analyse and interpret data. • These tools have been used worldwide by companies, managers of all levels and employees. • Histograms, Pareto Charts, Cause and Effect Diagrams, Run Charts, Scatter Diagrams, Flow Charts, Control Charts
  13. 13. In Depth - Tools Evaluation Periodical Annual Monthly Performance Quarterly Appraisal Campaign Quantitative and Qualitative Evaluation
  14. 14. In Depth – Tools - Quantitative Sales Volume • % of Increase • Market Share • Quotas obtained • Average Sales Calls made per day • New Customer obtained • Ratio of Selling cost to Sales • Sales Order • Daily num of orders / by size / customer / product • Orders to Sales call ratio • Goods returned •
  15. 15. In Depth – Tools - Qualitative • Sales Skills • Finding Selling points • Listening Skills • Obtaining participation • Over coming objectives • Closing the Sales • Territory Management • Planning • Utilization • Records • Collection follow - ups • Personal Traits • Attitude • Empathy • Human Relations • Team Spirit • Appearance • Motivation • Self Improvement
  16. 16. Cause and Effect Diagram
  17. 17. Sales Evaluation - Tools PROCESS ACTIVITIES Evaluations based on the set standards – Quantitative & Qualitative analysis of sales personnel – TOOLS USED Assigned Standard of Performance – Sales Effectiveness Scorecard – Microsoft Office Excel 97-2003 Worksheet Performance Analysis – Performance Management System – Rating System – Microsoft Office Excel 97-2003 Worksheet
  18. 18. Business Outlook
  19. 19. Evaluation Process • Gross Business Income • Consolidated Revenue for the year grew by 6% to Rs. 12605 crores in financial year ended 2008 from Rs. 11855 crores in financial year ended 2007. • Services revenue grew by 35% from Rs. 360 crores to Rs. 485 crores in the current year. • The Compounded Annual Growth Rate (CAGR) for the preceding five years is 30%. • Gross Margins • Gross margins for the current year grew to Rs. 1054 crores(8.4% of sales) from Rs. 876 crores (7.4% of sales) in the previous year.
  20. 20. Evaluation Benefits • Avoid Judgments • Naturally • Informally • Arbitrarily • Avoid Problems • Motivational • Ethical • Legal • Ensure Judgments • Lawful • Defensible • Fair • Accurate • Ensure Two way Communication between Employee and Sub ordinate • Focus on Work Activities and Goals • Identify and Correct Existing problems • Encourage Better Future performance
  21. 21. Sales Control – The Process
  22. 22. Sales Control – The Process
  23. 23. Sales Control - Tools PROCESS ACTIVITIES • Enable Sales Manager for day to day sales activity • Enable sales manager to detect deviation from standard performance • Sales personnel task planning and developing strategy TOOLS USED Microsoft Office • Sales Daily Activity Report / Monthly Report Excel 97-2003 Worksheet • Sales Travel/Expense Report Microsoft Office • Sales Costing Calculator Excel 97-2003 Worksheet • Sales annual activity planner Microsoft Office Excel 97-2003 Worksheet
  24. 24. • Business risk Tracking System in all areas of operation. • Periodic reviews under the business and environment risk analysis reporting by the respective business • Constant innovations and newer offerings to bridge technology gap. • Market trend analysis consumer preferences with proactive steps • Strong HR policies - attracts and retain best of industry talent • Training through knowledge portals to enhance the skill set of the employees.
  25. 25. • Internal control system to commensurate with its size and the nature of its operations • Reliable financial and operational information • complying with applicable statutes, safeguarding assets from unauthorized use or losses • Executing transactions with proper authorization and ensuring compliance of corporate polices. • Well defined delegation of power with authority limits for approving revenue as well as capital expenditure. • Processes for formulating and reviewing annual and long term business plans through Internal audit and Audit Processes.
  26. 26. • HR initiatives to support the transformation and growth of the business through strong and innovative People Practices, Policies, Systems and Processes - empower and engage people. • People initiatives for streamlining of the internal Leadership Development Process - effective recruitment and performance management, - transparent employee communication - Talent engagement activities - regular get together - unified employee campaigns towards Healthy living, Environment Conservation and various Social causes.
  27. 27. Sales Control –Pros • Direct the Sales Force Number of Call • Amount of Time • Sales talk • Social talk • Performance Feedback • Organizational issues • Analyze Market Situation • Resources vs. Sales Rep • Planning and Time Management • Improve Relationship • Identify Team Leader • Commitment – Team and Individual •
  28. 28. Thank you

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