2018 1014.0 Sales Territory DesignSource: Sales Management Association research Optimizing Sales...
Transcript of 2018 1014.0 Sales Territory DesignSource: Sales Management Association research Optimizing Sales...
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Sales Force Productivity Conference ● 15-17 October 2018 ● Ritz-Carlton, Atlanta ● © 2018 The Sales Management Association. All rights reserved.
SALES TERRITORY DESIGN
Presented by :
ADAM ECHTERSimon-Kucher & Partners
BOB KELLYSales Management Association
KEN KRAMERTerrAlign
ANDY WILLIAMSBoehringer IngelheimAnimal Health
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2Sales Force Productivity Conference© Copyright 2018 The Sales Management Association. All rights reserved.
OUR PRESENTERS
ADAM ECHTER BOB KELLY KEN KRAMER ANDY WILLIAMS
Senior Director
Simon-Kucher & Partners
Chairman
Sales Management Association
President
TerrAlign
Director, Head of Training & Sales Excellence
Boehringer IngelheimAnimal Health
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Introduction to Territory Management
A Journey
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Territory Management: The Basics
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Territory management:
What is it?What activities are included?
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Territory Management
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A systematic structuring of sales organization assignments for the purpose of optimizing one or more deployment objectives.
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Key Management Activities
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• Clarifying objectives - what to optimize• Defining organizing principles for sales assignments • Calibrating measures• Setting assignments• Administering changes
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Salesperson Assignment Criteria
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The Benefits of Optimized Territories
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Territory Management: Benefits
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• Substantial performance advantages accrue to organizations that optimize territories.
• These firms’ sales objective achievement is 14% higher than other firms.’
• Similarly, organizations ineffective in territory design underperform by a 15% negative variance in sales objective achievement.
Source: Sales Management Association research Optimizing Sales Territory Design, May 2018. This analysis compares the average rates of sales objective achievement in 100 firms, separating them into three categories, based on their sales territory design effectiveness. “Effective” firms are those with a sales territory design effectiveness rating of 5, 6, or 7 on a seven-point scale, where 1 is not at all effective, 4 is somewhat effective, and 7 is extremely effective. “Ineffective” firms are those with a rating of 1, 2, or 3. Firms rated “somewhat effective” outperform others by 2%.
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What are the benefits of optimized territories?
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Defining Terms
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Workload
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Capacity
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Calculating Capacity: Example from Cox Automotive
Determining true salesperson capacity by converting
activities into time
Manheim Cox Automotive. 2017 Sales Force Productivity Conference presentation: Territory Optimization: A Critical Component to Manheim’s Sales Strategy Evolution
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Potential
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Relationship Between Potential and Sales
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Sales Force Management: An Analytical Approach; 2018 Kissan Joseph, McGraw Hill Education
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Relationship Between Potential and Sales
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Sales Force Management: An Analytical Approach; 2018 Kissan Joseph, McGraw Hill Education
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Where does TM fit in the context of broad SPM activities?
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Establishing Territory Management Objectives
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What’s Important?
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Where are firms effective?
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Improvement Priority: Balancing Workload
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How do firms manage multiple territory management objectives?
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Analytical Foundations
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Balancing “Work”
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Adapted from TerrAlign’s presentation for the Sales Management Association Managing Sales Territories for Maximum Sales Force Productivity, October 2012.
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Balancing “Work”
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Adapted from TerrAlign’s presentation for the Sales Management Association Managing Sales Territories for Maximum Sales Force Productivity, October 2012.
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Balancing “Work"
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Adapted from TerrAlign’s presentation for the Sales Management Association Managing Sales Territories for Maximum Sales Force Productivity, October 2012.
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Balancing “Work”
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Adapted from TerrAlign’s presentation for the Sales Management Association Managing Sales Territories for Maximum Sales Force Productivity, October 2012.
Average Capacity
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Balancing “Work”
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Adapted from TerrAlign’s presentation for the Sales Management Association Managing Sales Territories for Maximum Sales Force Productivity, October 2012.
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Spreadsheet Tool
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Average Capacity
Average Capacity
Average Opportunity
Download it from salesmanagement.org
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Normal Performance Curve
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Sales Force Management: An Analytical Approach; 2018 Kissan Joseph, McGraw Hill Education
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Efficient Frontier
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Sales Force Management: An Analytical Approach; 2018 Kissan Joseph, McGraw Hill Education
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Key Challenges
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Few firms are effective at territory design, …
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… and few salespeople find territories equitable.
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Overcoming flawed or incomplete data
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Measuring workload, capacity, activity, and potential: where to start?
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Other challenges?
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Technology
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Leveraging tech: few firms are effective
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Effective tech usage, effective territories
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How can technology support territory design?
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Q & A PLEASE BE SURE TO SPEAK INTO THE MICROPHONE. WE’RE RECORDING!
© Copyright 2018 The Sales Management Association. All rights reserved.
ADAM ECHTER
Senior Director
Simon-Kucher & Partners
BOB KELLY
Chairman
Sales Management Association
KEN KRAMER
President
TerrAlign
ANDY WILLIAMS
Director, Head of Training & Sales Excellence
Boehringer Ingelheim Animal Health
[email protected]/echter
[email protected]/kramer
[email protected]/rjkelly smassoc.org/awilliams