5 Tips to Effective Sales Planning by One of the Best Sales Performance Consultants in America
Robert Smith and Associates
December 18, 2007
by Rod McKinnis
www.www.salesissimple.com
Tis the season to find many sales executives scratching their temples trying to figure out why desired sales results were not achieved. Often, the grinch that steals annual sales bonuses, is – a poor sales plan.
As a former executive of a Fortune Global 500 company, having led multi-billion dollar sales organizations, I have learned the importance of well thought out, well executed sales plan. Now, as a consultant working with sales organizations, I have had the pleasure of seeing many plans range from – “What exactly do you mean by a sales plan’?” to a multi-page novel that is purposely hidden in a desk drawer and only displayed when consultative company arrives.
In an effort to reduce the current year-end sales sorrow and improve sales holiday cheer next year, here are 5 simple tips to effective sales planning that can be applied to any sales environment:
Tip #1 – Construct Realistic Stretch Goals
Stretch goals are those goals just outside the fringe of probability that can be achieved with a little extra effort. Stretch goals are highly encouraged because they challenge a sales organization to focus. Take your realistic goal and stretch it 5 – 10%
Tip # 2 – Foster Buy-In
Sales plans without buy-in from the front lines or middle management are useless. Many organizations pay the price when sales planning occur without input from the people who are responsible for execution. Make the necessary time to include the input from those who will be executing the plan, offer a platform for them to share their feedback. Listen closely to your Top Producers doing so will naturally foster the necessary buy-in.
Tip # 3 – Link the Sales Plan to Compensation and Reward Performance
Salespeople perform better when they know what is expected of them. Sales plans linked to the sales compensation help manage expectations and reward performance accordingly. In it simplest state an effective linkage between the sales plan and compensation plan will convey the proper message:
If sales levels of X are achieved, salespeople are paid $Y – Met Goals
If sales levels of 2X are achieved, salespeople are paid $2Y – Exceeded Goals
If sales levels of .5X are achieved, salespeople are paid $.5Y – Underperformed
High performance sales cultures link their sales plans with compensation plans that are clear, concise and come with consequences. The purpose is to reward performance not mediocrity.
Tip # 4 – Manage the Activity, Not the Results
If a graph of your sales results resembles the roller coaster attraction at your local amusement park, chances are you are managing to your results and not your activities. If not addressed, the emotions of your sales force will ride along the roller coaster ride and slowly zap the sales energy from the organization, causing higher costs and poor sales performance. To remedy the situation, allow me to ask you…
Have you ever tried to drive to an unfamiliar destination without directions on how to get there? It becomes frustrating after a while doesn’t it? Whereas if you simply printed the directions and managed the appropriate instructions it would save you time. Additionally, if you wanted to return to the location again, you could, correct?
Managing sales is similar. Instead of focusing on the destination (sales results) and getting frustrated because results are not being reached, define the relevant sales activity that drives the results. Doing so essentially creates your road map to reach your desired destination. Additionally if you want to duplicate success you now have the road map to do so.
Tip # 5 – Execute
Develop a maniacal focus to follow through! Milestones should be created, evaluated and monitored weekly to provide indicative warning signs, offering ample time to address any performance issues. Create contingency plans (campaigns, promotions, etc) to leverage in an effort to improve results if necessary.
Happy Holidays and Good Luck Next Year!
Rod McKinnis, Founder of The McKinnis Consulting Group, is a highly sought after speaker and sales consultant, specializing in generating high performance sales results. To learn more or to book Rod for your next sales event visit www.www.salesissimple.com
www.www.salesissimple.com
Tis the season to find many sales executives scratching their temples trying to figure out why desired sales results were not achieved. Often, the grinch that steals annual sales bonuses, is – a poor sales plan.
As a former executive of a Fortune Global 500 company, having led multi-billion dollar sales organizations, I have learned the importance of well thought out, well executed sales plan. Now, as a consultant working with sales organizations, I have had the pleasure of seeing many plans range from – “What exactly do you mean by a sales plan’?” to a multi-page novel that is purposely hidden in a desk drawer and only displayed when consultative company arrives.
In an effort to reduce the current year-end sales sorrow and improve sales holiday cheer next year, here are 5 simple tips to effective sales planning that can be applied to any sales environment:
Tip #1 – Construct Realistic Stretch Goals
Stretch goals are those goals just outside the fringe of probability that can be achieved with a little extra effort. Stretch goals are highly encouraged because they challenge a sales organization to focus. Take your realistic goal and stretch it 5 – 10%
Tip # 2 – Foster Buy-In
Sales plans without buy-in from the front lines or middle management are useless. Many organizations pay the price when sales planning occur without input from the people who are responsible for execution. Make the necessary time to include the input from those who will be executing the plan, offer a platform for them to share their feedback. Listen closely to your Top Producers doing so will naturally foster the necessary buy-in.
Tip # 3 – Link the Sales Plan to Compensation and Reward Performance
Salespeople perform better when they know what is expected of them. Sales plans linked to the sales compensation help manage expectations and reward performance accordingly. In it simplest state an effective linkage between the sales plan and compensation plan will convey the proper message:
If sales levels of X are achieved, salespeople are paid $Y – Met Goals
If sales levels of 2X are achieved, salespeople are paid $2Y – Exceeded Goals
If sales levels of .5X are achieved, salespeople are paid $.5Y – Underperformed
High performance sales cultures link their sales plans with compensation plans that are clear, concise and come with consequences. The purpose is to reward performance not mediocrity.
Tip # 4 – Manage the Activity, Not the Results
If a graph of your sales results resembles the roller coaster attraction at your local amusement park, chances are you are managing to your results and not your activities. If not addressed, the emotions of your sales force will ride along the roller coaster ride and slowly zap the sales energy from the organization, causing higher costs and poor sales performance. To remedy the situation, allow me to ask you…
Have you ever tried to drive to an unfamiliar destination without directions on how to get there? It becomes frustrating after a while doesn’t it? Whereas if you simply printed the directions and managed the appropriate instructions it would save you time. Additionally, if you wanted to return to the location again, you could, correct?
Managing sales is similar. Instead of focusing on the destination (sales results) and getting frustrated because results are not being reached, define the relevant sales activity that drives the results. Doing so essentially creates your road map to reach your desired destination. Additionally if you want to duplicate success you now have the road map to do so.
Tip # 5 – Execute
Develop a maniacal focus to follow through! Milestones should be created, evaluated and monitored weekly to provide indicative warning signs, offering ample time to address any performance issues. Create contingency plans (campaigns, promotions, etc) to leverage in an effort to improve results if necessary.
Happy Holidays and Good Luck Next Year!
Rod McKinnis, Founder of The McKinnis Consulting Group, is a highly sought after speaker and sales consultant, specializing in generating high performance sales results. To learn more or to book Rod for your next sales event visit www.www.salesissimple.com
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