The real facts behind effective sales management which creates sales success is simple: Measure Results but Manage Activities. While the link between activities and results is very short in demand fulfillment functions (talking to more customers today means more orders today), it is long and tenuous for demand creation activities which involves strategic selling (relationships take months or longer to deliver revenue).

So, if you are reactive as many companies are in their sales planning process which tries to manage results, then you are always too late. This should be obvious because current results are determined by activities performed months in the past. The only way to effectively manage sales is to define the activities that will drive results and then manage those activities.

There may be an impression that you are already managing sales performance, but most likely you are not. What you are doing is measuring sales results; revenue and profitability sliced many numbers of ways. What you most likely do not have is a view into the leading indicators of sales performance, such as quality of the pipeline, accuracy of the forecast, selling or product knowledge of the sales team, skill set or understanding of the marketing message which are the indicators to attaining the end result. And…. Most importantly, what are the activities that are required to produce the desired results by territory by target account?

 Sales Performance Management is often confused with Sales Performance Measurement.  Typical measurements rarely include a structure to accurately measure the activities that create the results. They simply are not in touch with what is happening at ground zero in the field. They do not provide answers as to what works and what doesn't work. More importantly there is very little control or structure that is paramount to gaining market share and improving  profitability.

Managing activities is not about compliance, governance or assurance. It is really about improving individual and territory performance. Most sales managers neglect their primary responsibility which involves managing the performance of their sales teams. This means they must manage activities and measure results based on a platform of coaching the individual sales representative.

Sales managers often make decisions based on reports which contain historical data, (the end result) lagging indicators that do not provide a true picture of the organization. They often give most of their attention to only the top performers and the B & C sales people get ignored because they don't handle the large accounts. They simply accept the 80/20 rule that states 20% of the sales team will deliver 80% of the revenue.

The fact that nothing has been done on sales performance (managing activities) may not be a conscious decision on the part of your sales manager. It may simply be the culture created by the company. Like the majority of companies, your company may have decided to promote your top performing sales person to sales manager without considering the fact that being a sales manager requires a completely different skill set than being a top performing sales person.

 "Today those former sales reps, who are now sales leaders, are behind the curve when it comes to focus, process, structure, discipline and especially managing activities.  They didn't "grow up" with it, and now they are too busy to embrace it.

"Managing Activities and Measuring Results." Focus, process, discipline and accountability become the engine that drives the process. The sales process must have a clearly defined structure. Each field salesperson identifies a small set of target accounts in his territory to receive intensive sales focus. The number is limited because true targeting must be backed up by action planning, and that requires a lot of effort. The next step is to identify and document the specific activities that are necessary to achieve the desired results.

The real strategy is hidden in the activity of the team, the reality of the opportunities, the accuracy of the forecast, the skill set of the sales force and the sales manager's ability to coach the sales people. Execution involves the day-to-day activities of the salesperson. For most industries, this entails both planned, proactive tasks and opportunistic, reactive events that the salesperson uncovers by doing the right things in the right place at the right time. It's critical that the progress of the tasks in target action plans is carefully monitored to avoid surprises. If you proactively manage the activities, the expected results will follow.

The T.O.A.D.
 
The T.O.A.D. is the cornerstone of sales success because T.O.A.D. stands for:

• Territory
• Opportunity
• Action-planning
• Discussion

This is a discussion that must occur monthly and focuses on targeted account growth and territory success. Management may refer to these meetings as a monthly performance review, but they are not individual performance reviews. They are a review of territory performance based on objective performance metrics only (Manage Activities – Measure Results). These meetings must be considered by both management and the territory salesperson as Territory Opportunity Action-planning Discussions because that is exactly what they are. The T.O.A.D. is the most important component of improved sales effectiveness.

Critical performance issues are discussed during the T.O.A.D. It provides the forum for Sales Management and the Territory Manager to discuss, plan, and measure success. These discussions introduce accountability and identify opportunities for improvements with action planning specific to each objective. It is the Sales Manager's job to not simply participate in this process, but to use these opportunities to coach, counsel, and correct issues regarding performance.

If conducted properly, the T.O.A.D. process will become an effective tool in improving both the Sales Manager's and Territory Manager's performances. The Territory Opportunity Action-planning Discussion (TOAD) is the most important element of the process. It is the mechanism that ensures timely feedback and a focus on setting and meeting objectives. Sales managers should center these monthly discussions around performance improvement, coaching on best practices and providing support to the sales team. (E-mail rcik@ceostrategist.com to receive a monthly T.O.A.D. checklist)

If you truly want to increase sales and improve profitability, consider the concept "Manage Activities – Measure Results" based on the following foundation;
1)    Commitment from your sales manager to support this concept by executing the T.O.A.D. with a coaching mentality.
2)    Prioritize sales performance management with assigned resources and budget.
3)    Designation of activities by target account that will produce the forecasted results
4)    Management of the activities and measurement of the results with monthly coaching sessions (T.O.A.D.) to improve territory peformance.

Effective sales management is a key ingredient. It includes planning sales growth, executing account strategies and using objective feedback to continuously improve performance and drive account growth. Sales management holds the key to meeting company objectives. Effective sales management must build the platform for success. Managing Activities and Measuring Results alone does not replace good sales management, but it can make it much more effective. Remember, it's not the sales manager's job to call on accounts and sell product. His job is to make his sales force as effective as he possibly can so that they can achieve the goals and objectives of the organization.
 
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