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Performance Management
- 1. Performance Management - Sales Plan Performed ©Guruttam.com K Srikanth +91 9840910400
- 2. Big Picture -Context 2 Sales Vision Goals Management Strategies Process Performance Others © Guruttam.com
- 3. Big Picture -Context 3 Achieve net income to Rs.xxxx Cr by 2020 Achieve Operational & Sales Excellence Vision Goals Management Strategies Process Performance Others © Guruttam.com
- 4. Context - Goals/ Objectives 4 Increase Top Line Revenue 33% Grow Insurance Program Segment / Incremental Rs.850 Billion Vision Goals Management Strategies Process Performance Others © Guruttam.com
- 5. Context – SalesStrategies 5 Appoint channel partners across 5 major zones Restructure sales force with central sales committee Increase Direct work force by 130% Implement Sales Performance Management Vision Goals Management Strategies Process Performance Others © Guruttam.com
- 6. Key Stakeholders 6 Organization GovernmentRegulators Associations Customers Investors Executive Board / Management Industry Business Operations Sales Force Process, Policy, Infrastructure, Other Teams © Guruttam.com
- 7. Performance Management? What isthe Benefit ? • Opportunity to check alignment to targets / goals (e.g. reduce cost, increase sales) • Opportunity to identify weakness, threat, opportunity and strength (SWOT) • Opportunity to evaluate, identify or re-strategize programs, planning and controls. • Opportunity to prioritize new or existing strategies • Opportunity to perform with maximum throughput • Opportunity to recover from failures or mitigate risks • Opportunity to identify training needs, customer needs, challenges, benefits • Opportunity to analyze, learn, focus, control and organically grow • Opportunity to maintain communication standards, feedback across stakeholders 7 Sales © Guruttam.com
- 8. Sales : Salesprocess describes an approach to selling a product or service. Loosely put “It is about the numbers”. Sales Performance : The accomplishment of sales measured against sales plan or objectives or goals. Loosely put “How much effort was put in ?“ Sales Performance Management: An assessment of sales process to gauge progress toward predetermined goals. Loosely put “How to do we do it better ?” Performance Management 8 A Word © Guruttam.com
- 9. Performance Management Sales Process* 12 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Performance Management Sales Performance Goals Achieved Goals Planned ManagedMeasured Performance Management keeps tab on Performance to achieve goals 9 © Guruttam.com * Sales Process may vary with each businesses
- 10. Sample Sales Processes SampleSales Process : Identify : Pitch : Analyse: Propose : Close …. Sample Sales Process : 16 steps process illustrated in next slide 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Note: Sales processes vary between businesses. Hence utmost care should be taken to customize sales process suiting to business need variables (stakeholders expectations, quality of sales, compliances, etc)
- 11. 16* Sales Process(Performance) 1)Identify Prospect 2) Identify Deciding authority 3) Introduce 4) Convey Readiness 5) Schedule a call 6) Make a call 7) Reach Deciding Authority 8) Getting an Appointment 9) Confirm Appointment 10) Make a Pitch (first learn the pain points) 11) Analyze Customer Needs 12) Complete Needs Analysis 13) Discuss Proposal 14) Draft Proposal 15) Submit Proposal 16) Confirm the Order (Close) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 * Conventional Field / Leg Sales process for illustration only. Online and other sales process may differ or vary. 11 © Guruttam.com
- 12. Performance Management Sales Process(From 1 … ) Performance Management Sales Performance Goals Achieved Goals Planned 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 ManagedMeasured 1 - Identify Prospect 12 © Guruttam.com
- 13. Performance Management Sales Process(From 1 … To 16) Performance Management Sales Performance Goals Achieved Goals Planned 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 16 - Closure ManagedMeasured 13 © Guruttam.com
- 14. Why Performance Management? EnsureEffort Out = Goals Achieved & Effort put is Efficient + Effective Sales Process (From 1 … To 16) Performance Management Sales Performance Goals Achieved Goals Planned 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 16 - Closure ManagedMeasured 14 © Guruttam.com
- 15. How to Manage? 12 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Measure It To Manage 15 © Guruttam.com
- 16. What to Measure? 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Measure It ? To Manage Sales Performance ( Attribute’s Performance) Attributes is specific to each process 16 Attribute Examples: Contacts (Identify Prospect), Industry (Identify Prospect), New Offers (Make a Pitch), Negotiation Handling (Discuss Proposals), Target Achieved (Orders) © Guruttam.com
- 17. Performance Measurement ? Poor Varying Consistent Growing Excels 12 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Performance Management Metric (PMM) 17 Model © Guruttam.com
- 18. Performance Measurement ? 12 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Where do Performance Management Metric (PMM) fit ? Poor Varying Consistent Growing Excels Organizational Sales Report Financials Customers Business Process (Sales) Learn & Grow 18 • Budget • P & L • Ratios • Others • Relations • Prospects • Feedback • Referrals • Misc. • Lead / Closure errors • Refine Sales Process • Refine Pricing • Misc. • Refer Examples in next section © Guruttam.com
- 19. Performance Measurement ? Poor Varying Consistent Growing Excels 12 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Consistently excels beyond target and brings new orders Consistent in performance and shows occasional new orders Consistently performs in achieving the target set Consistency is occasional in achieving target set Consistently achieves below or does not achieve target set 1 x -1 x 1.5 x -1.5 x Scale Difference Attribute: Target Achieved 19 © Guruttam.com
- 20. 1 2 34 5 6 7 8 9 10 11 12 13 14 15 16 Performance Measurement ? Poor Varying Consistent Growing Excels Period / Orders # P1 P2 P3 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Period / Accounts New Prospect Won Loss Qtr 1 Qtr 2 Qtr 3 Qtr 4 Period / Order Size P1 P2 P3 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Period / Expenses Calls Travel Welfare Misc. Qtr 1 Qtr 2 Qtr 3 Qtr 4 Volume Size Accounts Expenses 20 © Guruttam.com
- 21. 1 2 34 5 6 7 8 9 10 11 12 13 14 15 16 Performance Measurement ? Poor Varying Consistent Growing Excels Period / Verticals # V1 V2 V3 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Period / Regions North East West South Qtr 1 Qtr 2 Qtr 3 Qtr 4 Period / Verticals Size V1 V2 V3 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Period / Segment Kids Men Women Business Qtr 1 Qtr 2 Qtr 3 Qtr 4 Verticals Size Region Segments 21 © Guruttam.com
- 22. Performance Measurement ? 22 ReasoningRecommendations Poor Performance Reviews Corrective or preventive or improvement actions Variable Performance Reviews Corrective or preventive or improvement actions Consistent Performance Reviews Corrective or preventive or improvement actions Growing Performance Reviews Corrective or preventive or improvement actions, recognition and rewards Excels Performance Reviews New Market / Industry/ Business Trials, Recognition and rewards Observation, Discussions, Causal Analysis, Process Analysis, Effort analysis, Spending Analysis, Motivation, Experience sharing, Lessons learned, Sensitivity analysis, Market analysis, Skills Sets, Sensitivity analysis, Forecasting, Performance Reviews (sample tools) Performance Levels © Guruttam.com
- 23. Performance Measurement ? 23 PerformanceReviews – Scatter Diagram Sales Staff Structure Revenue Co-relation analysis © Guruttam.com
- 24. Performance Measurement ? 24 PerformanceReviews – Scatter Diagram Customer Retentions Cross Selling Revenue Generation Co-relation analysis © Guruttam.com
- 25. Performance Measurement ? 25 PerformanceReviews – Forecasting Models Sales Staff Structure Revenue Trend Analysis Process Capability ? Linear method Moving Average © Guruttam.com
- 26. Performance Measurement ? 26 ForecastAccuracy – Sales Funnel Example 1. Identify Prospect 16. Sales Order Sales Forecast QoQ Actual Sales QoQ © Guruttam.com
- 27. Performance Management Process Structure 27 ProcessInput Activity List Process Output Existing Customer Database Data Policy , Data Privacy Call Script, Skill Sets, Segments Tele calls, Cold Calls Customer relationship Conferences, Road Shows Web, Newspaper Advertisements Tenders, etc Contacts Database, Profiling Prospect Status E.g. 1. Identify Prospect Poor Varying Consistent Growing Excels Attribute 1: Calls Per Day/Week/Month Attribute 2: Prospect Identified Day/Week/Month Define attributes of an Activity(Tele calls) within process Identify Prospect for performance management © Guruttam.com PMM
- 28. Performance Management Process Structure 28 ProcessInput Activity List Process Output Poor Varying Consistent Growing Excels © Guruttam.com PMM Period / Prospects Identified Tele Cold Web Conferences Existing Customers Qtr 1 Qtr 2 Qtr 3 Qtr 4 E.g. 1. Identify Prospect
- 29. Performance Measurement ? 29 ForecastAccuracy – Sales Funnel Example 1. Identify Prospect 16. Sales Order 30000 50000 Sales Forecast QoQ Actual Sales QoQ © Guruttam.com
- 30. Performance Measurement ? 30 Barcharts – Spending Analysis (Identified Prospect :: Tele Call Expenses) 1. Identify Prospect Sales Forecast QoQ1 Actual Sales QoQ1 © Guruttam.com 30000 50000 20000 20000 Sales Forecast QoQ2 Actual Sales QoQ2 40000 55000 30000 25000
- 31. Performance Measurement ? 31 Barcharts – Spending Analysis (Identified Prospect :: Activity Expenses ) 1. Identify Prospect Sales Forecast QoQ1 (Tele calls) Actual Sales QoQ1 (Tele calls) © Guruttam.com 30000 50000 20000 20000 Sales Forecast QoQ2 (Cold calls) Actual Sales QoQ2 (Cold calls) 40000 55000 30000 25000
- 32. Performance Management? What isthe Benefit ? • Opportunity to check alignment to targets / goals (e.g. reduce cost, increase sales) • Opportunity to identify weakness, threat, opportunity and strength (SWOT) • Opportunity to evaluate, identify or re-strategize programs, planning and controls. • Opportunity to prioritize new or existing strategies • Opportunity to perform with maximum throughput • Opportunity to recover from failures or mitigate risks • Opportunity to identify training needs, customer needs, challenges, benefits • Opportunity to analyze, learn, focus, control and organically grow • Opportunity to maintain communication standards, feedback across stakeholders 32 Sales © Guruttam.com
- 33. Performance Management Thank Youfor watching this presentation Feel free to give your feedback to guruttam@gmail.com K Srikanth, PMP Chennai. India. Contributor to PMBOK Guide 4th, 5th and 6th Edition. Guruttam.com (Management Education) GoCarti.com (Online Women’s Apparel) OnlineSurgicals.com (Healthcare products) 33 © Guruttam.com Sales