KPI for sales managers: how to implement it effectively

Only 5% of employees perform perfectly well, the same percentage work badly and the rest of your team need certain rules of the game. One of these rules is KPI system. Market experts claim that implementation of KPI system at the enterprise can help to enlarge profits up to 30% and have a significant meaning in the assessment of the results of business process optimization. How to reach such results?

Whether you need implementation of KPI or not

It’s not a secret that every company has its own methods and techniques of business operations. And if you succeed, there is no need in any changes, improvements or business process optimizations. You don’t have to implement KPI for sales managers in companies where the number of personnel isn’t more than 30 people and a chief manager has an opportunity to meet each employee at least once a month in order to clear certain objectives or to correct methods of their fulfillment.

What is KPI?

Key Performance Indicators is the system which gives a company the opportunity to assess its condition; helps to analyze implementation of the strategy and allows monitoring business activities of employees.

Implementation of KPI system requires significant time, emotional and physical efforts on the part of responsible executives. You will deal with mistakes and miscalculation, with probable demotivation of employees and even with dismissals. In order to provide measurements, efforts of one executive manager is not enough, you need to have a team of likeminded people who will be ready for changes. That’s why if you don’t have such a team, then you shouldn’t start it.

KPI for sales managers

In order to enlarge profits and to provide effective work of employees, companies implement KPI systems for sales managers. This helps to make profits and company enlargement more predictable and to be able to define the necessity of business process optimization in human resource management and other spheres dealing with the work of sales managers.

Results and personnel motivation

An appropriate KPI system should include as much built-in motivation as it can be possible. This can help to attract attention of employees and make them work more effectively.

Nowadays money rewards are one of the most popular and effective ways of motivation.

Implementation of KPI system is not a simple task for executive managers. However, it can have significant results in business. Optimization of business processes of customer service by means of implementation of KPI system for customer service managers is a perfect method to enlarge customer attractiveness of the company.

Implemented KPI system for sales managers can enlarge effectiveness of sales department and profitability of the company in general.

And, finally, implementation and functioning of KPI system allows you to define the dynamics of performance indicators which can help to define the necessity of business process optimization.

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