If you are in Sales or Sales Operations, then you have spent a lot of time talking about Sales Quotas. If you weren’t aware – Sales Quotas are usually too high. LOL.
There are many methods to calculate the quotas, but once they’re done, who do you share the back-up calculations with? There are different schools of thought.
- Some leaders feel that Sales Reps and Managers should just be given “the number”, with no back-up. Here’s your number- go get it!
- Other leaders share some level of detail with their Sales Managers, but not the Sales Reps.
- And, there are some firms that publish the official quota calculation document and share it with Reps and Managers. For example: Your quota was calculated using last year’s sales X 107% for sales growth + 2% for new product introduction.
As a Sales Operations leader, what do you think is the best method? Please vote below and share your comments. Why did you vote that way?
Share This Post
In this current age of transparency I can’t think of a real reason for not sharing all the details with everyone, unless there was some compelling (embarrassing?) reason not to. In fact, if the formula was “in the open” there would be no surprises and no griping that Mike (last years’ top dog) got favorable treatment.
And saying this, wouldn’t the same be true for sales and bonus calculations?
John Fox[Click to quote this in your comment]
I am of the view that it’s OK to share with your direct employees but let these managers decide if they want to share with their reps. Reason is some managers want to drive their teams hard; some go easy on them. If a manager wants to add a buffer of 10% it’s their call. Since they are the ones responsible for bringing in the revenue.
Regards.
Hasan-
Hasan Qureshi[Click to quote this in your comment]