Taking Aim at Performance Targets

“Everyone wants to win, but not everyone is willing to prepare to win.” – Coach Bob Knight

Have you hit your performance target for this year? Are you concerned that it’s too late to impact your results? This time of year, the opportunity for generating new business often diminishes. People are focused on the holidays and finishing projects, and less so on negotiating new deals. For sales people, if they haven’t already met their goals, it’s sometimes difficult to make it to the finish line.

No matter where you are in relationship to your targets, there are still things you can do to generate more sales. Now is a great time of year to put together a specific sales action plan. You can test the plan between now and the end of the year, and be ready to hit the ground running in January.

The key to creating a successful action plan is to have enough actions in it to insure you reach your goals! It may sound simplistic, but many salespeople underestimate the number of tasks they should be performing each week if they are going to hit their targets.

We use the 95% rule when we help clients create definitive action plans. Start by making a list of every action you need to take to get what it is you want. If your sales goal is $1MM, what has to happen to generate that much business? Do you need to make 5 sales per month? How many sales calls? How many presentations? How many follow up calls? Break down the sales goal into a series of actions.

Once you have your list, look it over carefully. If you complete everything on the list, will you be confident about reaching your target? We tell our clients that they need enough actions on the list to insure a 95% chance of meeting the goal. If the actions on your list will only get you an 80% chance of meeting your goal, you need to add more actions to the list.

The action plan is an opportunity to start thinking about what exactly needs to happen. Imagine you have met your target. How did you get there? What had to happen on a monthly basis? Weekly? Reverse engineer the goal and get specific about what has to happen every week to make it a reality.

Next time we’ll talk about how to put the plan into action. Because you can’t have an action plan without taking action. You have to play if you want to win the game.

Are you ready to win?

Is the Target in Your Sights?

“If you don’t know where you are going, you might wind up somewhere else.” – Yogi Berra, American Baseball Player

Last week we started a conversation about how to finish the year strong and meet those 2011 sales goals. This week we’re going to dig a little deeper into one of the most important, yet frequently overlooked concepts that impacts success in sales.

At Possibilities Unlimited, we believe in being specific and measurable. Whether it’s personal intentions or a management mandate, every goal should be designed and communicated as clearly and specifically as possible. This is good for both employees and employers, as it clearly marks the playing field and defines the rules of the game.

All too often, the benchmarks of success are muddy at best. New employees are told they will be evaluated on “how much business they bring in,” “being a team player,” and “outperforming last year’s results.” These are all valid measures of performance, but they are not specific. And when the goal is not specific, the employee will make up his own version of what those goals mean.

For instance, if an employee is told he needs to outperform last year in order to make his bonus, he doesn’t know by how much he needs to exceed last year’s results. By 5%? 10%? We’ve worked with salespeople who will meet those minimum distinctions by September 30^th. If there is no clear incentive to do more, they will back off the sales effort, or hold off booking deals until the next year. If they hit what they perceive to be the target, they will stop taking aim.

With only a few weeks left in 2011, it is imperative to know what your targets are and how close you are to hitting them. How much distance do you need to cover? How do you need to schedule your time so that you can meet that target? Where do you need to step on the gas, and where have you already won the game? It’s hard to hit a bulls-eye when the target is fuzzy or moves around.

A good employer will create precise and measurable benchmarks so that every employee knows what is expected. Write down at least ten specific things that would tell you this person is doing a good job. Talk it over with the employee so there is no misunderstanding about the expectations. A good employee will ask for specifics, and ask the employer to define goals and objectives. The players have to know where the goal line is if they want to have any chance of scoring. And it’s the well managed team that will score more points and win the game.

Are you ready to win?