Business Development and Change Management

  Go to the Business Development and Change Management Assessment

You monitor the effectiveness of your sales process
 
The results of the sales process are usually provided in the monthly (or weekly) accounting information pack managers use for routinely monitoring the business. This information does not, however, necessarily indicate how effectively the sales process is being carried out.
Key Issues
·         At a company level, the results of the sales process can be assessed by the volume of products sold, the sales value generated, the gross margins secured, resulting profits, cash flow and cash balances
·         This performance is usually reported in a form that allows comparisons:
o      Month on month – actual, business plan, forecast and last year
o      Cumulative – year to date, business plan, forecast and last year
o      Year end targets – business plan, forecast, last years’ results
·         Other monitors include - percentage market share, trend analysis, assessments against competitors, comparison with national and international statistics
·         Identifying an established sales process in many companies is relatively difficult; therefore monitoring its effectiveness can be problematical
·         Measures for monitoring the effectiveness of the sales team could include:
o      Orders received compared to goods billed
o      Volume of sales generated and increases over previous year
o      Gross margins generated by product line and customer type
o      Number of inquiries generated and new orders taken
o      Number of new customers and accounts lost to competition
o      Sales call planning – time spent face to face with customers
o      Planned time with customers compared to actual time
o      Number of sales visits, time spent on phone calls and e-mails
o      Product knowledge and ability to develop technical solutions
·         To be effective sales offices should be close to customers and operate with a low breakeven point, plotting sales against costs to assess risks to profits
·         A responsibility of the sales manager is to minimise the fixed cost element and control all other expenses in proportion to the level of sales
·         Confirming customers’ financial situations is vital to avoid risk of bad debts
·         Sales teams expect bonuses based on volumes of business generated, these must be carefully considered to promote appropriate behaviour
·         It is worth remembering - ‘You get what you measure’ and ‘what you measure gets done’; even if it is not what you want!
Factors for Success      
Factors to  Avoid
1.     An effective sales process is in place and people are trained to use it
2.     Sales teams are motivated to sell
3.     Selling is recognised as a skill’
4.     Sales people meet regularly with customers
1.     Combining sales with marketing
2.     Expecting orders without investing in assisting customers
3.     Allowing the sales team to become an excessive overhead on the business
Who does this apply to?
The senior management team, sales teams and their staff

Guides:

Business planningBusiness planning

Business planning

The business planThe business plan

The business plan

Selecting future marketsSelecting future markets

Selecting future markets

Drivers for changeDrivers for change

Drivers for change

Collecting informationCollecting information

Collecting information

Sales processSales process

Sales process

Selecting change projectsSelecting change projects

Selecting change projects

Managing projectsManaging projects

Managing projects

Controlling and reviewing projectsControlling and reviewing projects

Controlling and reviewing projects