the most critical mistake a sales vp can make

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1 1 The Most Critical Mistake a Sales VP Can Make

Post on 21-Oct-2014

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This post focuses on one of the biggest mistakes sales leadership can make around talent management.

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Page 1: The Most Critical Mistake a Sales VP Can Make

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The Most Critical Mistake a Sales VP Can Make

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Over 42% of Sales

Managers don’t hit

their yearly

number

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Who needs a sales manager if they

Can’t hit their number?

A VP of sales might think…

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Are you thinking the same?

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How are you measuring your sales managers?...

Is it by quota attainment

only?

If so…

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You are making the biggest mistake a sales VP can make

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When evaluating your Sales Managers in your

talent management program, you need to consider a minimum of 5

additional metrics other than quota

Some common Non-Quota metrics are….

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1 Turnover

Are you losing ‘A’ Players due to a bad Sales Manager?

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2 Lost Selling Time

Do they consistently have vacancies on their team? The number of selling weeks lost in a quarter has a direct impact on whether that

Sales Manager hits quota

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3 Ramp to Productivity

How long does it take for a Sales Rep to hit quota? If your Sales Manager

can’t ramp new hires, it is a predictor of future performance

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Sales Team Quota Disparity

How many people on the team made quota?Are a few saving the many?Disparity can be a good predictor of long term success.

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5 Historical Quota Performance

A missed quarter might not mean much. Inconsistency though, can lead to deep root problems

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The key is to take non-quota

metrics and compare them

to quota attainment

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Use a scoring tool such as this one to see whether it is best to invest in the manager or put them on the bubble • 14

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• Involve more than quota attainment when assessing Sales Managers

• Use both qualitative and quantitative to measure their performance to date

• Choose 5-7 Non-Quota Sales Manager Metrics and weigh them into the scoring equation tied to your customers’ needs and company objectives

• Use / Develop a key on how to measure each metric• Determine any circumstances out of their control

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