Enterprise Performance Management (EPM) is the latest of the management acronyms and one you are likely to hear more often. But just how relevant is it to sales managers and their teams?
Why Performance Management Is Hot
The focus of analyst activity is a good indicator of the hot topics for business at any point in time. But you probably did not need the publication of analyst reports to tell you that Performance Management is hot. After all, managers are always concerned about performance.
That includes people like us who have a performance solution to sell believe that new technology is key to driving performance in sales, as in any other area.
Factors That Kill Performance Management In Sales
Sales performance is tracked by the ultimate measure of performance – sales revenues. But is sales is fully on board when it comes to Enterprise Performance Management? Well, our work with so many organizations shows that performance management faces many hurdles.
1. Internal Politics – turf wars and divisions mean there are performance related topics that are not for discussion, information is not shared and co-ordination even communication may be limited between different managers or teams.
2. Blame culture, reviews are negative and de-motivational, the focus on the person not the performance, reviews are one way rather than 360 degree.
3. Poor leadership and the lack of an environment of openness and trust. A lot comes down to the management style of the sales manager or director.
4. Poor systems (or poor use of systems) which means that measuring performance as simply as the number of sales meetings, or the win rate on proposals is not possible.
5. Poor structures – reviews are ad-hoc and not systematic, when they happen the follow-up is poor.
There are a further two very important factors:
– Sales managers spend too much time behind their desks and too little time out in the market with the sales team
– Sales managers overlook the most important element of their job – coaching the members of the sales team and the short term focus in many organizations on the quarter’s numbers don’t help.
No doubt you will recognize a few of these factors in companies for which you have worked in the past, or perhaps even work with today.