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Manage Sales Performance to Increase Revenue

Article Summary

  • Start measuring the leading indicators that actually signal a crash before you hit the wall.
  • Use the Rummler-Brache framework to start aligning your team through clear specs, functional tools, and consequences.
  • High-quality feedback and honest capacity planning are the only ways to ensure your sales team isn’t just drowning in a workload that’s mathematically impossible to finish.

Manage Sales Performance to Increase Revenue

Performance management in the strategic growth function is rarely considered with any seriousness. Most sales leaders design their systems to track revenue won and reward for that. The problem with this simplistic approach is that by the time you are aware of a decline it is too late to do anything about it.

Measurement of leading indicators to new revenue are critical to a quality performance management structure.

Rummler-Brache Framework

According to Rummler and Brache, in Improving Performance, there are six critical elements to a quality performance management system.

1)Performance Specification

Ensure that there is a clear performance specification, defining the exact output expected from each individual or role in the business growth process.

2)Inputs and Task Support

Ensure there is clarity on the inputs required including necessary tools, lists, and CRM systems that the job performer will use to perform their work.

3)Consequences

Consequences are not always negative. Be sure that there are consequences that match behavior and performance, encompassing both positive reinforcement for desired actions and corrective measures for undesirable ones.

4)Feedback

Put in place a rich feedback system with regular interactions and performance measurements to help job performers understand their standing and make necessary adjustments.

5)Skills and Knowledge

Ensure individuals possess the ability to fulfill their roles, providing training if needed.

6)Individual Capacity

Verify that performers have sufficient time daily, weekly, and monthly to accomplish their tasks effectively.

flowchart showing the steps described in this blog

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