Read any Business Management book and there will be a section in there dedicated to reporting and analysis. I’ve not read one yet that doesn’t say that what you measure you control.
My experience of being in sales in the UK is that you have some measurements put on you with your target or quota. But often that’s where it starts and stops. Maybe a little more visibility is required into future pipeline but that’s where it usually ends. Many American companies now extend this to put in place a sales process that their reps must adheer to. Step 1 – establish contact, Step 2 – gain rapport, Step 3 – understand issues, Step 4 – tie your shoe laces. These steps are usually enforced rigorously and ‘proven to increase sales’ – if you do them in the wrong order but get a result then it is still frowned upon. Ok so that’s fine if you have a mass product with 100s of salespeople trying to sell it across multiple territories. You must find ways to gain economies of scale with sales training and assisting people to sell your product. But if you are in a start-up or small business where the line from sales to owner of the company may only be broken by 1 or 2 levels of management – this feels like overkill.
Sales is an art form for many of us and as such these enforced sales processes are akin to painting by numbers. The joy of the act of selling can be lost and a generic result that is gained. Of course if you are looking for a generic result – then go ahead and implement and force a rigorous sales process.
However, if what you are trying to do is force increased levels of activity then you might be forcing and measuring the wrong thing.
The only real measurement of success in business is profit. If this isn’t your start point every day when you are in sales then you are going to drift. Let’s assume that you are a salesperson who wants to make money, a sales person who doesn’t require management to ask them to do their job, a sales person who doesn’t need permission to take control of their own time and go and make things happen. If you are this type of sales person then maybe you need to consider self-management and operating within your own parameters. The moment you decide to do this you will be free from trying to hit someone else’s target, free from the mundane processes and admin that some companies try to force on you and free to start and finish each day when you see fit according to your own goals.
So what do I measure?
Daily (beginning and end of each working day)
- Order Profit Total this week
- Forecastable pipeline to end of Financial Year
- Total pipeline to end of Financial Year
Weekly
- Profit last week – target profit this week
- Forecastable pipeline to end of year total last week – target this week
- Total pipeline to end of Financial Year last week – target this week
The weekly targets I set only bear relation to the profit targets that I want to hit. These always exceed the quota/target set down by my company and were defined by me at the beginning of the year when I decided how much money I needed to achieve the goals I decided upon for the year. I read these daily to maintain positive motivation and momentum.
So how does this work and why is this significantly different to how you might go about things? It might not be – but my experiencing of working in sales teams tells me it is.
People often say that when I’m in the office I’m in the zone or focused or aloof. When I hear comments like that I know things are going well. Every single day I have clear financial targets and I am then free to set to the tasks that I choose to reach those targets. My strategy for selling is constantly evolving but the static goal of the end figure is always there. Any emotion I may have had about clinging to an account in the hope of gaining another £10 profit disappears. Working late to impress a boss disappears. Wasting time on office politics or jockeying for position disappears. I’m never asked what I’m doing anymore – the company supports me in most decisions I make (including dropping problematic accounts or going the extra mile to win new business). If the company doesn’t support me but I’m convinced it will impact my bottom line figures then I go ahead anyway. Sometimes you have to pack a parachute as you jump out of the plane.
But the interesting thing is that I still lose deals, significant deals and small deals. I lose more deals than my colleagues. I lose deals because the product was wrong. I lose deals because I overestimated the value I was offering and overpriced and I lose deals because I’m busy working on other deals. I’m fine with that though and so is the company. Why? Because I also win lots of business. Worst case scenario is I’ll fail to hit the large target I set myself but still beat the company’s target. Last year I beat my own target and guess what? We were all happy. I did this working 38 hours a week managing to combine an active family life, taking good quality holidays and never working at the weekend. I saw my family for breakfast nearly every day and I read to my kids before they went to bed nearly every night. I do feel like I’ve got it all but I’m pushing those artificial boundaries in my head all the time. The ceiling’s we set ourselves can be so limiting – I’m sure that life is about breaking through those and contributing.