Sales Performance Management 101 for the Corporate Board: Why SPM Strategy is Critical for Sales Success
In this six-part blog series OpenSymmetry and IBM outline the impact of Sales Performance Management (SPM) Technology on each area of the business including Sales, HR, Finance and Executive Management. In this sixth and final post, we discuss how SPM can support the Board of an organisation by providing visibility and transparency on their investment in sales. Join us as we continue our journey to discovering how SPM covers sales best practices for people, process, and technology.
The Board of an organisation develops a multiyear strategy to deliver growth and profitability. They need readily available information to track progress against targets and return on key investments. For every organisation, Sales is a critical function that drives growth and revenue, as well as a key area of investment. Although investment in Sales is high, too often the stakeholders reporting to the Board, and therefore the Board themselves, do not have the required visibility to support tracking of investment in sales. They are also not able to identify those investments that are returning results versus those that are not.
Other key focuses for the Board are brand and reputation. Company objectives, values and mission drive the brand and the reputation of an organisation, but most of the time the behaviour of sellers is not linked to these company objectives because incentives are not aligned or are not delivered effectively. In some cases, this will be due to poor incentives plan design. In many cases though, the plan may be fit for purpose but the delivery and execution is not, due to lack of automation of the process and lack of visibility of performance and results by the key stakeholder involved (sales team, sales managers, finance, the board). In today’s complex selling environment, getting this wrong can have consequences for organisations including loss of selling time, loss customers, loss of partners and even regulatory fines.
SPM technology can be deployed to an organisation for a fraction of the total investment in Sales with a clear path to return on investment through optimised selling, lower cost of administration, and increased revenues. Previously, technology was only in reach of larger enterprise organisations but that is no longer the case with the availability of cloud services for SPM technology. The time and cost required to deploy a new SPM system has reduced significantly in recent years whilst the functionality and impact has increased ten-fold.
SPM technology provides the Board with the information required to track a multiyear strategy and clear visibility on performance of sellers, products and marketing initiatives. If sales data is available daily, then sales performance can be reported daily, providing transparency on pay-for-performance and specifically identifying if investment in sales is driving the right level of growth and performance and the products and or services that they are in place to develop. SPM technology also motivates and drives the desired selling behaviours in sellers.
Today, B2B organisations will spend an average of 25% of their revenue on sales force compensation. For a fraction of that investment, by deploying SPM technology, you can enable sellers and optimise the process and your returns, making sure that investment counts.
Join OpenSymmetry and IBM on a webinar discussing how companies have been getting the highest return on investment from sales teams using SPM solutions. Register today!