Manufacturing Today - Volume 18, Issue 2 - 13

MARK DONNOLO  |  COLUMN BY

K AYS ENGINEERING

S ALES PERFORMANCE
N EWS

T OOLS

L EGAL

A LFAB INC.

timately, quotas are finalized at the
highest levels of the organization. But
during development, it's important to
keep the process transparent. To avoid
perceptions of unfairness or a quota re-set as punishment for previous
shortfalls, demonstrate that goals are
based on market research findings and
opportunity models that show a path
to achievement.
Involve as many sales leaders as is
feasible in the process to ensure quotas are finalized through dialogue and
feedback, rather than handed down
without input from the sales team.
It's a marathon, not a sprint, to
achieve realistic but potential-based
quotas that all areas of the sales organization can understand and own.
When looking at your sales performance management and sales compensation program at your company,
consider the underpinnings of your
C-level goals, sales cycle characteristics and quotas to build plans that
align with the business. mt

S U P P LY C H A I N

customer acquisition and current
account management sales model -
based on the company's structure and
sales ability to control those factors
- turned around a five-year history of
decline in quota attainment and returned the organization to growing
sales revenues.
Quota setting is usually driven by
a mix of sales leadership, finance and
sales operations with some input from
product marketing. Initial proposed
quotas are circulated to the business
units, product leaders and major geographies who will evaluate how these
goals are allocated to the front line. Ul-

B UY AMERICAN

setting should be based on the characteristics of the products, sales cycles and customer markets.
Solution: Detailed metrics, including prior purchasing patterns,
customer needs, demographics and
characteristics are important to developing a realistic projection for
sales. For large capital expense products, sporadic or episodic purchase
patterns can make quota setting
difficult. Heavy equipment or infrastructure products might only be purchased every few years. Quota setting
in these cases requires deep dives into
customer needs, buying scenarios and
market research. Account planning
also can be a helpful complementary element. Intelligence developed
when forecasting the company's direction and strategic approach can
identify potential obstacles that require specific approaches, as well
as new customer or market opportunities on the horizon.
Quota focus should be evaluated
to determine if a general or more segmented model is most effective
in meeting the organization's overall
goals and rewarding elements which
sales can control. For example, in one
organization, transitioning a generalist sales model to a focused new

Mark Donnolo is managing partner of SalesGlobe. SalesGlobe is
a leading sales innovation firm that works with Fortune 1000
companies focusing on sales innovation, sales strategy and sales
performance management challenges. Visit www.salesglobe.com
for more information.

VOLUME 18, ISSUE 2 manufacturing-today.com

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Table of Contents for the Digital Edition of Manufacturing Today - Volume 18, Issue 2

Contents
Manufacturing Today - Volume 18, Issue 2 - Cover1
Manufacturing Today - Volume 18, Issue 2 - Cover2
Manufacturing Today - Volume 18, Issue 2 - 1
Manufacturing Today - Volume 18, Issue 2 - Contents
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Manufacturing Today - Volume 18, Issue 2 - Cover3
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