"Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat."- Sun Tzu, Chinese General and Author
Companies that deliver sustained profitable growth achieve alignment between their sales strategy, how the sales organization is designed and deployed and the sales people on the front lines interacting with and influencing customers and their buying decisions. The most effective sales organizations measure their Return on Sales investment (ROSI = total sales compensation expense, divided by revenue) as a way to monitor sales organization productivity and assess when further investments may be needed to drive growth.
We believe that
- Fact-based insights into market potential, customer priorities, product requirements and channel efficiency are absolute prerequisites of an effective sales strategy.
- Many sales leaders focus on improving sales capability by investing in training when the real issue is poor market insight and, as a result, a coverage model and level of investment that is misaligned with the true market potential.
- Develop/refresh sales strategies to focus on the highest potential, most profitable growth opportunities.
- Optimize sales force coverage, job design and sales processes to improve return on sales investment.
- Improve ways of monitoring and assessing sales performance and applying competency frameworks that help companies attract, grow and retain a high-performing sales force.
- Ensure alignment between strategy and compensation plans so that the right behavior and results are rewarded.
- Higher Return on Sales Investment in the short-term.
- A systematic approach to profitable growth.
NOTE: "Aligning Sales Compensation to Drive Growth" is a presentation made at a Society of Human Resource Management (SHRM) conference, September 2013.