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Sales Scorecard a Strategy to Increase Sales Revenue Growth March 1, 2012

Posted by dennissommer in Sales, Strategic Planning.
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Improving sales revenue growth in today’s business climate is critical to your success. Implementing a sales scorecard strategy is a proven tactic used by top performers to improve sales revenue growth.  This simple strategy described in this article will help you achieve your sales revenue growth goals, increase profits and improve your business performance.

Understanding the Sales Scorecard Concept by Paul Dimodica.

In a world where increased revenue has become an executive mantra, turning business plan strategy into actionable steps that create revenue has become, for some, an albatross.

The key to success is to continually increase internal funding capabilities and help reduce dependence on third-party funding resources. For companies to continually grow, business units must quickly produce tangible sales results. One methodology to accomplish this is through a Sales Scorecard

Like other scorecard concepts, the success of the Sales Scorecard is driving fundamental business changes. By creating identifiable tactical measures for each of your sales team members and contributing departments, you can transform silo performance into group performance and create a pattern for integrated sales team performance.

Sales Scorecards are sub-segments of the original scorecard concept currently used by approximately 60% of Fortune 1000 companies. The original premise of the scorecard is based on linking, intersecting, and managing four distinct business  perspectives. The scorecard process is presently used as a centralized business implementation and strategy tool. The success  behind the scorecard methodology is based on its ability to transcend executive philosophies and help departments become more productive as a team from the boardroom to the mailroom.

Unlike other management philosophies, the sales scorecard is not a static business concept. Instead, it is a continuously changing management tool that allows companies to adapt to market conditions as they develop. Unlike Management By Objective (MBO) theorems where corporations are focused on changing behavior by studying yesterday’s performance to bring about modification for today, the scorecard model focuses on today and tomorrow and those elements that can turn present strategy into future action.

Through the utilization of the Sales Scorecard, businesses can manage sales team’s performance based on today’s information and
react to tomorrow’s market changes and sales success needs.

The scorecard is not just a static list of metrics or isolated Key Performance Indicators (KPIs). Instead, it is a graphical framework for implementing and aligning sales tactics and managing strategy for companies seeking to become successful.

Businesses must manage their capital capabilities to succeed.

Today, most companies can break down their corporate assets into three specific areas, which include:

1. Human capital (employees)

2. Operational capital (product and service development and delivery)

3. Financial capital (business funding, revenue, monthly burn rate, valuation, corporate revenue, A/R, line of credit)

With these capital elements always at risk for companies, it becomes crucial for management to develop a strategic blueprint for all employees to work together. The Sales Scorecard is such a program, but it integrates five areas rather than four. Through its implementation, line and staff associates interact weekly as a packaged team to help drive performance and create revenue as a group instead of traditional department silos.

Five sales management pillars to track are:

1. Sales

2. Marketing

3. Strategy

4. Product Development/Operations

5. Strategic Partners/Alliances

It is important to understand that revenue generation in companies is a cause-and-effect process. Revenue will be short without a market-driven product, services to sell, or appropriate positioning support. Success will be minimized if the focus is placed on the sales department as the primary driver for revenue shortfall rather than identifying and fixing the primary problem. The Sales Scorecard is a visual measurement device used to view the integrated variables of revenue generation from all salespeople.

Additionally, by identifying all sales tactics needed to sell and/or non-contributions as they happen, you can make adjustments to your sales team’s current behavior before it is too late and identify help from other departments that may be needed.

Until next time  . . .

Think Big and Take Action !

Dennis Sommer

Dennis Sommer is the CEO of Executive Business Advisers . Dennis is a highly sought after business growth expert with over 25 years experience.  His specialty is helping companies quickly improve business performance and sales revenue growth.

If improving business performance and sales revenue growth is a priority of yours this year, contact us today to see how Executive Business Advisers can help.  Call 330-676-1876 or email us at sales@ebaac.com

Copyright © 2012 Dennis Sommer All rights reserved.

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Comments»

1. Penny Parker - September 2, 2011

Hmmmm…some thoughtful stuff!

2. WOW! Cookies! (@WOWCookies1) - September 2, 2011

Some thoughtful points.

3. Joonas Monto - February 17, 2012

Good point.But for me without planning and only tactics and strategy cannot complete the good growth for you business.

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