For many years, organizations have used sales quotas as a means to identify a target at which those involved in the revenue generation side of the business need to create and deliver to the company. These quotes, which are crucial for your business, to some degree are waterfall oriented in that there are overall company objectives that are then subdivided by various parts of the business – geographically, by verticals etc.
The roles in the business that directly support selling goods and services know and understand the targets and base their actions appropriately to achieve them to the best of their ability. These metrics are not subjective but very objective in nature. As a result of having a value associated with performance, the ability to measure against a value allows for a timelier assessment of performance and contribution.
Leadership in the areas of revenue contribution can use these data points to engage in various efforts to stimulate better performance when the individuals doing these duties are sliding behind the curve of desired results. To most effectively do this, the organization needs tools by which they monitor not just past results but also the trends of forthcoming sales or the “Forecast” of future sales.
Larger organizations eventually take on the task of implementing some tracking or management tools to assist them in better understanding the present state of cash flow into the business. Smaller businesses, unfortunately, tend to rely too much on the gut level of the sales rep or sales management. Regardless of having a technology based software tool or keeping the data in one’s head, the challenge of implementing such an approach is often met with great resistance from the sales team. This happens for a number of reasons, but the top two tend to be – the aspect of not trusting the sales rep is doing their job – i.e., not selling. The other reason is that tracking activity and future sales takes time away from selling the company’s products and services. If they must spend time putting information into a system or delivering the data to their boss, then they are being pulled out of the field and not selling.
Part of this challenge is to assist the people in contribution roles in understanding and appreciating the value of their individual contribution and the value of having a handle on the forecast of value and timing of sales. It is one thing to talk to them about the importance of selling, and it is obvious that without sales, it gets very difficult to pay for staff and all other expenses in the business very fast. They can all relate to that aspect. The thing they do not necessarily understand is that when the business has to spend cashflow on current expenses based on the future of revenue not yet realized, then they are borrowing money, which costs the company even more money to operate.
Having a more complete understanding of the impact sales have on business growth and the stability of company operations can help bring a more vivid picture into the sales reps’ minds as to the criticality of their role in the business. Not all staff are in revenue production roles, but all are in contribution roles. It just happens that sales contribute to the finances of the business so another part of the organization can contribute their part of the customers’ overall enjoyment of the business relationship.
Interested in bringing your sales contribution team to a higher level of understanding and performance? Give JKL Associates a call and speak to a Promise Guide. We can be reached at MI (313) 527-7945 or FL (407) 984-7246.
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