Approaches to Sales Goal Setting and Management PPT

This PPT slide, part of the 26-slide Sales Compensation Cycle PowerPoint presentation, focuses on the results aspect of the sales compensation cycle, emphasizing the importance of setting appropriate goals to drive desired outcomes. It outlines 2 primary approaches to goal setting: the passive approach and the managed approach.

The passive approach allows salespeople to operate with a degree of autonomy. Goals are set,, but salespeople have the freedom to determine how to achieve them. This method may appeal to those who are entrepreneurial and prefer less oversight in their activities. However, it can lead to inconsistencies in performance, as the emphasis is on product rather than process.

Conversely, the managed approach involves more direct oversight from sales managers. Here, specific activities are rewarded, aligning efforts with desired results. This method emphasizes the importance of process and management, aiming to guide salespeople more closely in their activities. While this approach can lead to more predictable outcomes, it requires a robust sales IT system to monitor and manage effectively.

The slide suggests that while the managed approach is generally favored, it comes with its own challenges. Implementing such a system effectively demands a mature infrastructure that can support the necessary oversight and data management. This insight is critical for organizations considering how to structure their sales compensation strategies. Understanding the trade-offs between autonomy and oversight can help in tailoring a compensation model that aligns with company goals and sales team dynamics.

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Sales Compensation Sales Compensation Data Management Goal Setting