Turbulence and volatility are the prevailing characteristics of today’s business environment. Gone are the days when organisations could plan ahead with some degree of certainty. Now the risk of relying on forecasts and buying or making products ahead of demand is significant. More than one business has paid the price of inventory obsolescence and write-offs on the one hand or lost sales on the other because of forecast error.
Most organisations already have some of the elements of this framework, but it is rare to find a sales target system that features the entire framework in a holistic fashion. This framework comprises key practices that are required for ensuring that the performance measures used in the target setting process and the targets agreed are effective.
Sales targets are extensively used by sales organisations to help achieve a ‘desired’, ‘promised’, ‘minimum’, or ‘aspirational’ level of performance. Setting sales targets are mainly used for motivating specific behaviour, establishing expectation, evaluation and rewarding performance. At present, the use of performance targets seems to be ubiquitous; however, a high proposition of organisations have reported to be dissatisfied with their targets arguing that this management practice is...
Motivating your sales force is a critical component of sales force management, given its profound effect on people’s behaviour and sales performance. There are many motivation theories that are relevant to sales force compensation and management as well as rewarding strategies to optimise a sales force.
Sales organisation’s face many dilemmas when managing and measuring sales performance. Sales people may be doing the right thing and may be displaying the right, behaviour, but their results are not captured in the performance measurement systems of their organisations. Very often individuals find themselves trading off between behaviour-based and outcome-based measures.