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How To Evaluate The Performance Of Your Top Sales Executive

Guest post by: Leonard Scott

Article Overview: This article present the performance appraisal factors that should be used to assess the performance of a top sales executive. Also, it provides the format of a monthly sales call report that should be used to record the sales call activity of sales reps.

How To Evaluate The Performance Of Your Top Sales Executive

Just measuring sales volume against sales quota is far from an accurate measure of the top sales executive’s performance. The president of one of my clients once told a story about how he once had a sales vice president who came close to “selling” his company into bankruptcy. This sales executive was a champion when it came to hitting and exceeding sales volume goals, but much of this business was at margins that resulted in break-even or a loss on every part sold.

The job of a top sales executive is far more complex than just hitting the sales numbers and keeping sales costs in line. Of course, this is a critical part of the job, but there are many more metrics that the top sales executive needs to meet if he/she is to maintain a consistently growing, profitable sales effort.

Here is a list of these sales management performance factors:

QUANTITY OF SALES

—Sales volume versus sales buget/target

—Personal sales output

—Personal initiative

—Ability to stay with difficult tasks

—Ability to meet deadlines

—Capacity to identify and solve problems

QUALITY OF SALES

—Average price and margin of sales

—Sales group adherence to expense budgets

—Personal adherence to expense budget

—Number and resolution of customer complaints

—Sales team’s handling of paperwork

—Personal handling of paperwork

—Sales mix versus sales plan and response to

changes in output realities

INTERPERSONAL RELATIONS

—Relationship with subordinates, peers, and superiors

—Relationship with customers

—Ability to team build

—Overall ability to cooperate

INNOVATION AND MARKET KNOWLEDGE

—Personal knowledge of markets

—Knowledge of markets by subordinates

—Number, quality, and cost effectiveness of ideas,

proposals, and programs to improve sales volume,

pricing, and overall sales operations

—Personal knowledge of the competition

—Knowledge of competition by subordinates

LEADERSHIP AND MANAGERIAL SKILL

—Ability to motivate

—Personal appearance — self and subordinates

—Goal setting skills

—Time management skills

—Personal communications skills

—Communication skills of subordinates

—Personal price negotiating skills

—Price negotiating skills of subordinates

—Ability to analyze and act on trends in the market

—Ability to analyze and act on trend in sales

performance data

—Decision making skills

—Overall managerial judgment

—Recruiting and hiring skills

—Ability to train and coach subordinates

—Timely and accurate completion of

itineraries and call reports

—Compliance with sales policy and company policy

in general

Some of the factors that monthly sales call reports should include are:

—Sales calls by type of account (Distributor, contractor,

national account, dealer, qualified phone, other, etc.

—Work days in month

—Days in Office

—Holidays

—Vacation days

—Sick days

—Sales management meeting days

—Outside call days

—Total call days worked (Outside + In Office)

—Average call per day (Calls/Days worked)

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