The personal Key Activity Metrics (KAM) is like such metrics such as Return on Equity (RoE), Return on Assets (RoA), Internal Rates of Return, Invoice-Ageing, Return on Sales (RoS), which every successful CEO or CFO must be tracking.
After preparing your Sales Plan bearing in mind factors highlighted in the previous post you will want to decide if your plan is ready for execution.
The plan is readied for execution when a sales person bolts plan goals and objectives down to the railings of key activities he or she must be doing periodically and consistently in order to make quota. This is where knowing your personal Key Activity Metrics (KAM) come in handy. These metrics include such vital information like your proposal conversation rates, the average size of an order, the turn-around time for stocks in trade, for example, the number of calls you make during prospecting that turn out to a request for proposal. These numbers are like the personal dashboard for a sales person because once established it is then used to drive the right behaviors overtime. Without it, a sales person can be flying blindly, and often miss targets. The personal Key Activity Metrics (KAM) is like such metrics such as Return on Equity (RoE), Return on Assets (RoA), Internal Rates of Return, Invoice-Ageing, Return on Sales (RoS), which every successful CEO or CFO must be tracking.
Sales is a contact sport, and activities drive sales. Sales Plans succeed when there is alignment between your day-to-day and week-by-week activities with the overall financial objectives and other goals a sales professional is measured on. So knowing your personal Key Activity Metrics is a critical success factor for today’s sales people.
The absence of a sales plan is symptomatic of a likely to occur missed targets, .i.e. a sales period which the sales person inadvertently sets himself or herself up to fail. Research shows that without a sales plan. Also, having a plan in place and not knowing your Key Activity Metrics will significantly reduces your chances of making quota or reaching your assigned non-financial targets.
Current results are hidden in past behaviours; future results are being shaped by current behaviours.
– Dr. Max Ubah.
We love this quote by Dr. Max, and would like to use it to conclude today, asking that if your sales plan is not in place yet, you might to put one and answer the questions:
- How would you make your numbers
- What would it take for you to make your numbers?
Have a great financial year ahead!