Gain better sales performance – ensuring connect business results with objectives and activities (ROA)
by Francois Delvaux, Partner of Minds&More
For decades, companies have trained and retrained their sales managers on how to coach their sales reps.
Yet many organisations report that their sales managers do not coach well enough or often enough to maximize sales performance and that their sales team fail to deliver on the desired business results.
So what is the root cause here? Is it the sales process? Is it the sales person capabilities? Is it the sales training to blame? Os it the sales managers coaching quality?
One of the problem lies with the coaching models themselves.
Minds&More has worked for past five years with Vantage Point Performance (author of the book Cracking the Sales Management code) and have proven that there is a better performing sales management model.
It is a straightforward alignment model that is derived from research into how leading sales forces are being measured and managed. A model that sales managers can use in their coaching of sales persons
ROA model in sales coaching
The “alignment” strategy in the results-objective-activity (ROA) model is to reverse-engineer the desired result.
R = desired business result. These are the end results achieved. Examples volume sold, revenues achieved, margins realized. These are often a lagging metric – the results are what they are and too late to be changed, often identified once that month, quarter, are closed
O = Objectives are what the sales manager and sales person discuss and objectives can be influenced. Examples of objectives can include 1) Getting more sales from new customers, 2) Get more sales from type of accounts, 3) Improve customer retention, 4) grow our share of wallet among a customer
A = Activities are what the sales person decides to do and executes. Activities are what the sales person generally has high control over and activities can directly supports the objective. However need to ensure good alignment between the activity and the objective. Sales person should not just execute activities to show that they are buzy ! or for example doing a volume of customers meetings independent of supporting specific sales objective.
In short, companies should begin with a desired business result, select the relevant sales objective (from a list of many sales objectives that are possible) that will get you there, and identify the priority sales activities that will help you accomplish that objective.
Example: Objective is new customer acquisition. to get more of total sales coming from new accounts
If had to pick only two activities to focus on, these could be
Activity 1: Create a list of prospect companies and contacts to go after that fit specific criteria, and are good fit to go after
Activity 2: Assign more time in the week for a sales person to do prospection meetings versus farming/existing accounts and qualify well each opportunity
These two activities are that sales person path to results
ROA model for improved sales coaching
Learn more about the ROA approach
To learn more about the ROA approach and how train sales managers on this approach, contact us!
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