A Two Minute Sales Structure Health Test

March 11, 2012 at 7:00 AM

Is your Go to Market Strategy properly supported by your sales force structure?  Sales leaders have a tendency to make out of sequence changes to their sales structure.  Why? Adding heads or creating more specialized roles on the org chart are extremely visible augmentations.

SM to Rep Ratio Visual

How do you know if it is the right time to make a structure change?  Answer the 10 questions below to identify possible gaps.

Answer each question Y or N

  1. Sales Manager to Direct Sales Rep Span of Control – Is it between 6-9 to 1?
  2. Are you deploying Inside Sales?
  3. Can each sales role clearly explain where and how they add value during the sales process?
  4. Do you know the Customer Acquisition Cost for each market segment?
  5. Do you know the Lifetime Value for each market segment?
  6. Is selling time greater than 70%?
  7. Does each sales role has a defined cadence that they follow?
  8. Is there is a clear line of demarcation between selling roles?
  9. Are sales role accountabilities aligned with the corporate strategy?
  10. You have obtained direct customer feedback (from a reasonable sample size) on your sales force structure in the past 12 months 

What to do with the results:

  • Yes on 8 or more – Structure is probably not the biggest area of opportunity
  • Yes on 5-7 – Structure may be holding your sales force back
  • Yes on 4 or less – Structure needs to be addressed in the near future

If you fell into the 'less than 4 bucket', what are your options?

  1. Fix internally - if you have the capability and resources available this might be the best option.  One of the first steps is to fully understand the key inflexion points where your customer derive value.  Compare these key activities to where your sales force is spending their time.  Are they focused on the areas customers are willing to pay for and that differentiate you?
  2. Hire a Sales Consultancy Firm - if speed, expertise, and quality are on the top of your wish list this is probably the best option
  3. Do nothing - if you have too many conflicting priorities or the change is perceived as too disruptive you may chose to do nothing

For more ideas on how to elevate your organization to world-class performance, click on the link below.

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Topics: Sales Force Structure, Go To Market Strategy

Posted by Scott Gruher

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