Earlier this month we created a series of metrics and used them to test sales performance. Last week we discussed how metrics define one’s productivity. We also showed how we can view a task more clearly by breaking it up into sub-tasks. Each of these sub-tasks is a link representing a particular skill in the sales skill chain.
It’s clear how improving a single skill X% will increase productivity X%. But by dissecting the sales task chain and improving several individual sub-tasks a savvy manager can dramatically improve their rep’s performances. We know from last week that overall productivity is the product of the all sub-tasks in the sales process chain. So improving many component links within this chain will have a multiplicative effect on productivity. A smart manager will strive to subdivide the sales chain into as many links as s/he can.
I’ve Measured my Reps’ Sub-Tasks; Now What?
So you’re armed with your METRICS, a list of ratios for each task for each rep. Now let’s use these to help every salesperson in your company make quota.
You can measure each sales employee’s performance with a set of micro-skill ratios. You can see how improvement in each one contributes to their overall sales volume which increases your rep’s commissions.
Show your reps how training and improving micro-skills in this way will directly impact their compensation. If you explain and share your rep’s metrics with them, they’ll be excited to discover how transparent and easy it is to improve their productivity. You’ll be able to help them plan a road map to success, thereby helping them increase their earning power.
Great salespeople derive their esteem from their ability to sell. Helping them meet a high performance will empower them and give them tremendous job satisfaction. This solves a common problem of management.
Train each rep’s weakest micro-skills. Since each ratio improved grows productivity, choose the sub-tasks with the greatest room for improvement. The sub-tasks with the lowest ratios are the easiest to grow.
Put responsibility for your rep’s progress in their own hands. Empower them to test and improve their own METRICS. After awhile they’ll be ready during your coaching sessions to discuss their weakest areas and their plans to improve them. You’ll be surprised how invested in the process they become.
Get Expert Help
Although the idea of measuring things is simple, developing appropriate metrics for a company is an involved and specialized discipline. If you act on misinterpreted results, you can do more harm than good. To get the best results, enlist an expert. Feel free to contact me and I’ll direct you to a top-notch consultant I trust in your line of business.
They’ll customize a high-performance sales development solution for your company. The proper METRICs to create a highly accurate sales forecast.
This concludes our section on Ingenious Sales Management. In this series we covered how to:
- Promote a high-performance environment culture
- Develop a metric for each skill for each rep
- How to analyze performance and train based on results
- Develop compensation to create superstars
Next week we’ll turn our attention to financial management. I see you yawning but trust me: what I will share next week might just save your business. We’ll discuss three common cash drains and simple free solutions. You might be throwing away half your profit without realizing it. Look for it next week. Until then,
profitable business All!