M11p - Evaluating the Performance of Salespeople

7/17/2019 M11p - Evaluating the Performance of Salespeople

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Module 11

Evaluating the PerformanceEvaluating the Performance

of Salespeopleof Salespeople


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Purposes of SalespersonPurposes of Salesperson

Performance EvaluationsPerformance Evaluations !o ensure that co"pensation and other re#ard disburse"ents are consistent #ith

actual salesperson per$or"ance.

!o identi$y salespeople that "ight be pro"oted.

!o identi$y salespeople #hose e"ploy"ent should be ter"inated and to supplyevidence to support the need $or ter"ination.

!o deter"ine the speci$ic training and counseling needs o$ individual salespeople

and the overall sales$orce.

!o provide in$or"ation $or e$$ective hu"an resource planning

!o identi$y criteria that can be used to recruit and select salespeople in the $uture. !o advise salespeople o$ #or% e&pectations.

!o "otivate salespeople.

!o help salespeople set career goals.

!o i"prove salesperson per$or"ance.


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Salesperson PerformanceSalesperson Performance

Evaluation ApproachesEvaluation Approaches

ost occur annually.

ost co"bine input and output criteria #hich are evaluated using

uantitative and ualitative "easures.

*hen used, per$or"ance standards or uotas are set in

collaboration #ith salespeople.

!erritory data is used to establish ob+ectives, #hich are assigned

di$$erent #eights. ultiple sources o$ in$or"ation are used.

I""ediate supervisor per$or"s the evaluation.

*ritten revie# and personal discussion o$ the revie# are part o$

the process used by "ost $ir"s.

eneral conclusions regarding evaluations-


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Salesperson Performance EvaluationSalesperson Performance Evaluation

360-Degree Feedac!360-Degree Feedac!(/&hibit 11.1)

Salesperson

Evalu

ation

Evalu

ation

Evaluation

Evalu

ation

Sales Manager

"eamM

emers

#neself

E$ternal%ustomers

Eva

luatio

n

&nte

rnal

%ustom

ers


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'e( &ssues in Evaluating and'e( &ssues in Evaluating and

%ontrolling Salesperson Performance%ontrolling Salesperson Performance

#utcome-ased Perspective

ocuses on ob+ective "easures o$ results #ith little"onitoring or directing o$ salesperson behavior by

sales "anagers

)ehavior-ased Perspective

Incorporates co"ple& and o$ten sub+ective assess"entso$ salesperson characteristics and behaviors #ith

considerable "onitoring and directing o$ salesperson

behavior by sales "anagers


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%ontrolling Salesperson Performance%ontrolling Salesperson Performance

Perspectives on Salesperson PerformanceEvaluation(/&hibit 11.2)

#utcome-ased Perspective

4ittle "onitoring o$ people

4ittle "anagerial direction o$

salespeople

5traight$or#ard ob+ectives

"easures o$ results

)ehavior-ased Perspective

Considerable "onitoring o$

salespeople

High levels o$ "anagerial

direction o$ salespeople

5ub+ective "easures o$

salesperson characteristics,

activities, and strategies


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'e( &ssues in Evaluating and'e( &ssues in Evaluating and%ontrolling Salesperson Performance%ontrolling Salesperson Performance

Dimensions of SalespersonPerformance Evaluation

(igure 11.1)

)ehavioral

Salesperson

Performance

Professional

Development

*esults

Profitailit(


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%ontrolling Salesperson Performance%ontrolling Salesperson Performance%riteria for Performance Evaluation

)ehavioral %riteriaConsists o$ criteria related to activities

per$or"ed by individual salespeople

5ales calls, custo"er co"plaints, reuired

reports sub"itted, training "eetings, letters and

calls


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Professional Development %riteriaAssess i"prove"ents in certain characteristics

o$ salespeople that are related to success$ul

per$or"ance in the sales +ob

Attitude, product %no#ledge, initiative and

aggressiveness, co""unication s%ills, ethical

behavior


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*esults %riteria/&a"ine results achieved.

5ales(9olu"e:;uota), Accounts (4ost:


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*esults %riteria*esults %riteria

Sales +uota

A reasonable sales ob+ective $or a territory,

district, region, or =one.


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Mar!et *esponse Frame,or!Mar!et *esponse Frame,or!

(igure 11.2)EnvironmentalEnvironmental

FactorsFactors%ontrol nit

Attractiveness

)usiness Position

#rgani.ational#rgani.ational

FactorsFactorsMar!eting EffortSales

Management

Effort

Mar!etMar!et

*esponse*esponse

)ehavior)ehaviorEffort+ualit(

SalespersonSalesperson

FactorsFactors

%haracteristics%haracteristics*ole PerceptionsAptitudeS!ill /evelMotivation

Planning andPlanning and

%ontrol nit%ontrol nit


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Elements &mportant inElements &mportant in

Assigning Sales +uotasAssigning Sales +uotas(/&hibit 11.7) %oncentration of )usinesses ,ithin the "erritor(

eographic Si.e of "erritor(

ro,th of )usinesses ,ithin the "erritor( %ommitment ( the Sales Manager to Assist the Sales

*epresentative

%omple$it( of Products Sold

Sales *eps Past Sales Performance

E$tent of Product /ine

Financial Support 2eg4 compensation5 a Firm Provides

*elationship of Product /ine

Amount of %lerical Support


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'e( &ssues in Evaluating and'e( &ssues in Evaluating and%ontrolling Salesperson Performance%ontrolling Salesperson Performance

%riteria for Performance Evaluation

Profitailit( %riteria

5alespeople have an i"pact on gross pro$its through thespeci$ic products they sell and:or through the prices

they negotiate $or $inal sale

5alespeople a$$ect net pro$its by the e&penses they

incur in generating sales

>ro$it (


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%ontrolling Salesperson Performance%ontrolling Salesperson PerformancePerformance Evaluation Methods

Characteristics any "ethod should include-

ob Belatedness Beliability

9alidity

5tandardi=ation

>racticality

Co"parability

iscri"inability

Dse$ulness


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Performance Evaluation MethodsPerformance Evaluation Methods

raphic *ating%hec!list Methods

Consist o$ approaches #here salespeopleare evaluated using so"e type o$

per$or"ance evaluation $or"


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*an!ing Methods

Ban% all salespeople according to relative

per$or"ance on each per$or"ance criterion

rather than evaluating the" against a set o$

per$or"ance criteria


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#7ective-Setting Methods Management ( #7ectives 2M)#5

utual setting o$ #ellEde$ined and "easurable

goals #ith in a speci$ied ti"e periodanaging activities #ithin the speci$ied ti"e

period to#ard the acco"plish"ent o$ the statedob+ectives

Evaluate performance against o7ectives/&hibit 11.1 E ;uota /valuation /&a"ple


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Performance Evaluation MethodsPerformance Evaluation Methods)ehaviorall( Anchored *ating Scales 2)A*S5)A*S5

(igure 11.')


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Performance Evaluation )iasPerformance Evaluation )ias


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Evaluating "eam PerformanceEvaluating "eam Performance


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Frame,or! for singFrame,or! for sing

Performance &nformationPerformance &nformation(igure 11.)

Determine Sales Management Actions to Eliminate %auses of Future

Prolems and to Solve E$isting Prolems

Evaluate Salespeople against *elevant Performance %riteria

%ompare Salesperson Evaluations to &dentif( Prolem Area

&nvestigate Prolem Areas to &dentif( %auses of Performance Prolems


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Salesperson 8o SatisfactionSalesperson 8o Satisfaction

Measuring Salesperson 8o Satisfaction

BevisedINDSALES Scale

ob, CoE*or%ers, 5upervision, Co"pany >olicy and5upport, >ay, >ro"otion, Custo"ers

sing 8o Satisfaction &nformation

Documents

M11p - Evaluating the Performance of Salespeople