Vorlesung 6 Team Management & Controlling

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

• 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

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.