Solution Overview
The page provides overview details about the Target Setting application
Sales Target Setting module is designed to manage and streamline the process of establishing sales targets for Sales Representatives. It encompasses three essential components aimed at ensuring accurate forecasting, effective target adjustments, and final approval of targets. By integrating these components, the module facilitates a systematic approach to target setting, ultimately enhancing sales performance and alignment with organizational goals.
Key Process Steps
Configuring the Target Setting Plan
The first step in a Target Setting exercise/plan is to define the key parameter of the respective plan: which SKUs are the targets set for, on which data sources and channels, for which teams, etc
Forecasting at the National Level
The next phase involves comprehensive forecasting at the national level for each SKU selected in the previous step.
National-level forecasts are input for each month in a cycle for each SKU. If the plan includes also market share targets, then the monthly National forecasts need to be input for the relevant markets as well.
National Targets Breakdown to Sales Rep Level
These national forecasts are then broken down into individual bricks (Brick Level), as Sales Representatives (REP Level) and Sales Manager. The breakdown is done automatically based on historical sales data for both SKU and selected Relevant Markets.
Target Adjustments by Sales Managers in Each Team
In this phase, Sales Managers within each team have the authority to review and adjust the targets assigned to their Sales Representatives and territories. This flexibility allows for adjusting targets based on the Sales Manager's insights on the local situation.
Sales managers can use historical data, market insights, and team dynamics to make informed adjustments that optimise the likelihood of target attainment as well as fairness to foster motivation and accountability among team members.
Adjusted targets are submitted for review and approval by other users in the sales organisation, depending on the roles' configurations.
Final Approval of Targets
Once targets have been reviewed and adjusted and submitted by the Sales Managers they go through a final approval process. This typically involves validation by senior leadership or designated stakeholders responsible for overseeing sales performance and strategic alignment.
During this stage, targets are reviewed to ensure they align with organisational objectives, market dynamics, and overall business strategy. Any discrepancies or concerns are addressed, and adjustments may be made as necessary to optimize the effectiveness and relevance of the targets.
Once the targets receive the final approval they become available to be viewed by the Sales Representatives.
Advantages
Alignment: The Sales Target Setting Process module promotes alignment between sales targets and organisational objectives, ensuring that sales efforts are directed towards strategic priorities.
Accuracy: Using forecasts and breakdowns based on objective historical data and iterative adjustments, the module enhances the accuracy and realism of sales targets, minimizing the risk of overambitious or unattainable goals.
Empowerment: Sales Managers are empowered to adjust targets to their teams' capabilities and market conditions, stimulating a sense of accountability among team members.
Transparency: The transparent and structured nature of the target setting process promotes clarity and understanding among stakeholders, enhancing communication and buy-in across the organization.
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