"SINCE WHEN has it become acceptable that organizations operating in complex sales environments would consistently lose more of their revenue opportunities than they actually won? And worse – they would do little-to-nothing about it!"
Vilfredo Pareto (1848-1923), an economist developed concepts in the context of the distribution of income and wealth among the population. Known as the 80/20 Rule, the law of the vital few, or the principle of factor sparsity states that, for many events, roughly 80% of the effects come from 20% of the causes...
In today's terms Pareto's Principle also defines the Best-in-Class sales organizations. So, where then do the best-in-class or outperformers rank in 2018 when the 80/20 Rule is applied to sales organizations? Depending on who you ask, the disparity or RULE has become 90/10 or even 95%/5%.
With the sales playing field more level than ever before it is the innovators and visionaries that Plan, Execute, Report and Manage (called PERM) a revenue generation model that consistently produces against established sales goals. What sets the best-in-class apart today is sustainability of revenue. Said differently; a one-year sales plan simply won't cut it today. The revenue generation strategy must become the central core that defines a company at every level.
"Sustaining" Sales Growth is a best practices discipline based largely on revenue from new business development activity as the primary driver of overall revenue growth. "Sustaining" Sales Growth is dedicated to GOAL ATTAINMENT as the endgame by:
• Building a revenue generation model on Planning, Executing, Reporting and Managing the revenue generation process.
• Replacing individual, old school sales quotas with pipeline revenue goals that are indexed against individual and corporate revenue expectations.
• Employing a formal Mapping strategy for managing:
The sales opportunity process by stage and steps within a stage
Mapping revenue goals where near-term opportunities are in the pipeline.
Deal Planning – targeting large "must-win" opportunities and defining their corporate politics; aka, identifying who the key players are in the decision process.
SUMMARY:
Sustaining Sales Growth isn't some quick and easy strategy for consistently achieving sustained revenue growth, it requires vision and dedicated work. In the opinion of this author tactical driven approaches mis-named as strategies are the principal reason why the disparity is so great between the best-in-class and industry average and underperformers. An example of a best practices study finds:
• Our sales performance metrics are aligned with our business objectives – 96% of world class organizations vs: 38% of industry average and underperformers.
• We consistently utilize comprehensive prospecting plans – 76% of world class vs: 19% of industry average and underperformers.
• We have a formal process for utilizing executive-to-executive selling "Sustaining" Sales Growth – 76% of world class vs: 19% of industry average and underperformers.
This PPT emphasizes the critical importance of goal attainment and the pitfalls of traditional sales quotas. It introduces innovative strategies like revenue mapping and the use of Key Future Indicators (KFIs) to drive sustained growth.
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Source: Best Practices in Sales, Sales Strategy, Sales Management PowerPoint Slides: Sustaining Sales Growth PowerPoint (PPTX) Presentation Slide Deck, Howard Highsmith, CMC Emeritus
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