Introduction

The page describes the main steps in the target setting process

The Target Setting process encompasses four main steps, each contributing to the structured establishment of targets for achieving organizational objectives:

1. Configuration

The Configuration phase is the initial step where users establish the fundamental parameters essential for target setting. During configuration, users select key elements such as SKUs for which targets are set and the teams responsible for achieving them. Additionally, users have the option to define specific details for each SKU such as pricing, volumes to DOT or the Relevant Market, as well as set other options for the Target Setting plan.

1. National Forecast

The National Forecast step involves inputting in the system the forecasts at the national level for the selected SKUs (and Relevant Markets) for every month in the cycle. This forecast provides an overarching perspective on expected sales performance across the entire market. Using historical data, market trends, and relevant insights, this phase enables organizations to anticipate sales trends and market demand, facilitating informed decision-making in target setting. During this step, the organization will determine the required units to be sold, based on analysis of historical data.

1. Geographical Breakdown

In the Geographical Breakdown phase, targets established in the national forecast are broken down to local level starting from brick, and aggregated up to Rep and to Manager Level. Using the historical sales data for both SKU and Relevant market, the automated breakdown algorithm ensures that local targets are based on local trends of both product and market. After the local targets are calculated automatically they can be submitted to the Sales Manager for review and potential adjustments. Sales Managers within each team have the authority to adjust targets based on localised factors, team capabilities, and strategic priorities.

Once the have made their manual adjustments the Sales Managers submit the targets for review and senior leadership in their sales organisation will approve or overwrite the proposed changes.

1. Team Review

In this step, the plan is already finalised, meaning the final targets have been approved and become available to be seen by each Representative. In this step Sales Targets are displayed for each representative, summed up accross all SKUs assigned to the repsective team. The Sales Targets can also be viewed at SKU level by using the SKU filter

Plan States

A target setting plan can be categorised into different plan states, each representing a distinct stage in the planning process. Within this framework, the plan can exist in one of the following states:

• National - is the step when the plan creators, who input the configurations, the national forecast and the targets breakdown parameters

• Adjust - is the step when the Sales Managers review the pre-calculated targets at local level, make manual adjustments and submit them for leadership review.

• Finalised - is the final step in which final targets have been approved and made available to everyone including Sales Reps.