Case Study BroadLab – KPI’s Part I
Key Performance Indicators
Key Performance Indicators can be various. Actual KPIs are always a part of the company’s strategy. Examples for commonly used KPIs are:
Total sales
Total earnings (absolute) or margin (relative)
Clustered sales, e.g. by industry or region
New customers
Conversion rate (deals by quotations)
Recovered customers
New products sold
Increase in sales by fiscal year
Objectives and Key Results (OKRs)
Objective e.g. for BroadLab: Establish new customer segment home office installations
Key Result e.g. for Sales Department: KR1: Gain new customers by cross selling to the employees of 5 existing enterprise clients KR2: Create 50.000 € in revenues in the new customer segment
Key Result e.g. for Marketing Department: KR1: create 100.000 leads by a LinkedIn Campaign KR2: Create a customer journey and train Sales Department West
OKR - A management system for target-oriented and agile leadership. Key elements are:
Test and validate on time: Objectives are time bounded (e.g. for 3 month)
Focus: Results are key
Transparency: All company, department and employee OKRs are public
Goals: Limited amount of key results (e.g. 5)
Ambitioned goals
No reward or punishment: Results are not connected to a bonus system
Development of a Professional Sales Profile
Different Types of Selling Styles – Different Sales People
Tasks and Activities of Sales Force
Breakout Exercise: Setting of Sales Business targets
Goals and Objectives - General Aspects
Targets should follow the SMART guidelines:
S—> Specific: A defined target must be part of the employee´s specific job role & responsibility
M—> Measurable:A measure system should objectively deliver the results– for quantitative goals and also for qualitative goals
A—> Achievable: Each target should be achievable for the single person
R—> Reasonable: All targets should be challenging but always realistic and motivating / stimulating for a individual or a team
T—> Time-bounded: All Targets must be measurable / reached in a dedicated time line or over a period of time
• The SMART guidelines are also relevant for sales people
• Therefore, sales force needs a specific payment scheme because sales people should act as „entrepreneur“ for their enterprise
• Thus, sales people have normally a (low) fix salary + a variable payment (commission) in correlation to business success.
General Variable Payment and Commission Schemes
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