Aligning your sales performance management system and the subsequent vital measures with your organization’s strategy is an excellent place to begin. The CEO and Sales Leader are responsible for ensuring that the entire organization, including all sales staff, is in line with the sales performance management system. This dimension will ensure that the organization is well-equipped to maintain high sales performance.
Problems can arise when non-sales teams place their ‘numbers and ‘tasks on sales teams that are not related to effective sales performance. I.e.
Missed forecasts are criticized by the CFO, but not investigating or understanding why.
The Executive team demands more activity (i.e., the Executive team requests more activity (i.e., make more sales calls) without understanding the potential negative effect on effectiveness.
Marketing engages in lead generation activities that generate false leads or require out-of-scope qualification. This means they are in the forecast too early.
This can lead to confusion, increased motivation, and lower sales performance.
It is essential to address and work with values and specific behaviors. Many businesses are now focusing on this area more than just performance outputs, as we discussed last week.
Although this article is geared towards sales, the principles can be applied to all roles within your company. These items are not intended to be a guideline. You should only use what is most effective for you.
The Principles of a Successful Performance Management System
Reflect on the values and strategies of an organization.
Top management should show commitment to the system, and all employees should hear it. To gain their participation, it is ideal to solicit input from all levels.
It is essential to link business objectives to individual and team accountability.
To ensure that each person and function performs in accordance with the organization’s needs, performance measures are created.
Feedback is given on an ongoing basis and not only during the annual performance review. This could include coaching conversations.
Communication and expectations should be clear and consistent at all levels.
Not just past performance, but future behavior and employee development are what should be the center of attention.
Open dialogue, mutual feedback, and shared responsibility are the foundations of a partnership between employee and manager.
Employees are encouraged and expected to take responsibility for their performance and their success.
An Effective Performance Management System has Many Benefits
Encourages open and constructive communication between employees and managers
Gives feedback about how employees are doing at their job.
Managers and employees can come to an agreement about each other’s job responsibilities, performance expectations, and how they will work together.
Facilitates identification and development of individual strengths, capabilities, and areas.
Recognizes factors that negatively affect employee performance (e.g., Identify factors that negatively affect employee performance (e.g., work environment, job design and organizational policies and practice, personal issues, etc.) so that they can be addressed.
Structured and documented processes encourage objective evaluations and fair treatment.
Assists with the achievement of strategic objectives.
They are consistently setting goals, reviewing performance, and reviewing it.
Self-management for proactive people
