Recruit sales personnel; remunerate at a certain level, set a target and expect results! Can’t be simpler than that! Still one observes many organizations not getting right results. Why? The answer is simpler – Its either the employee’s skill sets or his performance is below par.
In the recent times, not only is it difficult to get good personnel but also getting them to perform and hence it becomes imperative for any organization to have measurability of performance and a clear strategy to improve the same. Measurability of performance and appraisal strategy is the key to an organization’s success. More and more organizations have started looking at the measurability of performance and have a strategy in place to award the performing team members (linking performance to incentives and growth in the organization). This strategy goes a long way in linking the performance of each if its personnel with the objectives of the organization and their personal career goals work as motivation to up the ladder in terms of performance. This also ensures return on investments (ROI) on the manpower bill of the company.
While some organizations are aware of Key Performance Indicators (KPI) as a concept, the usage of the same is of concern. Many commit the mistake of just focusing on end results and not the process of achieving the same. What is often missed out by most is the fact that sales has a systematic cycle and if followed rigorously, it would result in achievement of the sales objectives. The sales cycle hence becomes critical to measure to ensure meeting of the overall targets. For e.g. a FMCG company with a key objective of market penetration would be able to manage the same by measuring the following parameters;
- Number of Retail Outlets Visited
- Number of Retail Outlets Activated
- Number of Retail Outlets with Repeat Orders
- Number of Retail Outlets where Branding was done
By measuring these steps in the sales cycle with a clear focus and well defined targets one would be able to ensure meeting of the overall objectives.
We all know that human resource is a key resource and a performing human resource is the real human capital it holds!