Sales people hitting or missing quota is not necessarily an indication of their performance level. Listen to this episode to learn the key to setting quotas that have meaning.
“Only a few sales people hit quota.” or “Most of our salespeople met quota.”
What do either of these statements tell you about the performance of the sales team? Nothing!!! Why? Most sales managers set quotas for their salespeople without developing a foundation metric. What does meeting sales quota mean?
Think in terms of school grades. If your salespeople hit quota, is that an “A” or a “C” on their report card? If you set the quota at the “A-level,” expect that, just like in school, only a few will achieve it. That performance should be celebrated. They’ve performed at a superstar level!
If you set the quota at the “C-level,” you’ve set a minimum standard for job performance. Achievement is not a celebration, but rather an expectation. In this model, you must achieve quota to keep your place on the team.
Both the “A “and “C “approaches to setting quota levels work. The key is to make sure your sales management model is aligned with the approach your select.
See you next time on the Sales Management Minute.
Lee B. Salz is a leading sales management strategist specializing in helping companies build scalable, high-performance sales organizations through hiring the right salespeople, effectively onboarding them, and aligning their sales activities with business objectives through process, metrics and compensation. He is the Founder and CEO of Sales Architects, Business Expert Webinars and The Revenue Accelerator. Lee has authored several books including award-winning, best-seller “Hire Right, Higher Profits.” He is a results-driven sales management consultant and a passionate, dynamic speaker . Lee can be reached at lsalz@SalesArchitects.net or 763.416.4321.