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Sales Best Practices

Which Key Performance Indicators (KPI's) Really Matter?
Rick Carlson, Director, TechServe Alliance Sales Management Program

The number one driver of profitability in any company is the proper utilization of existing resources. Not only do you have to establish the parameters, but more importantly you must track, measure, report, and work to improve on them regularly. The most critical of all elements to measure is gross profit driven, per producer, per month. Depending upon how your organization credits GP$ (whole or split), the number will vary. A very good monthly target for an experienced producer (where client manager contact is allowed) is $60K or more. And to get there items such as submits to interviews; interviews to offers; percentage of offers accepted; and job orders to starts are what essentially drive Gross Profit. And while there are rules of thumb for all of these (see box) what is most important is that you track and know exactly where your team stands on these. The goal is to establish the line in the sand for individuals, and seek to constantly improve. Once desired benchmarks have been set, it is important that the results get posted for all in the company to see. The objective is not to embarrass individual(s) but rather to let people know where they stand and what effort is needed to drive value to the organization.

Group Performance Targets:
Submits per Job Order: 3.0 or less
Submits that get interviewed: 35%+
Interviews that generate offers: 40%+
Offers that get accepted: 98%+