One of my favorite teams to coach through the Rhythm Cascade process is the Sales team. Having been part of a large sales organization myself, it's always interesting to see different teams in action. Some teams have a list of 50 KPIs that they track, while others are starting from scratch. No matter the starting point, the question I get is the same: "What are the most common ones you see as a Rhythm Coach?" Below are a few of the usual suspects, along with some tips from some of our most successful sales teams on Rhythm.
1. Start with your results sales KPIs. What numbers is the team responsible for delivering? Is it a revenue figure? Number of new customers? An existing customer retention rate? You'll find some answers in your Company's Annual and Quarterly Plans.
2. How are you going to get there? Start with a result KPI and ask "What" or "How" five times to reveal some possible leading sales KPI indicators. It goes something like this: How do we get to $100m in Revenue? We get in front of 200 new customers. How do we get in front of 200 new customers? We set 300 meetings. How do we get 300 meetings? etc. ... The answers will reveal some possible leading KPIs, such as Number of Meetings, Number of Quote Proposals, Number of Outbound calls, Number of Leads from the Website, etc.
3. Narrow it down. Once you have a good list of leading and results sales KPIs, narrow the list down to 5 or less. Be sure to maintain a good mix of leading and results indicators. Set your Red Yellow Green success criteria for each. Set your overall company goals for the quarter and make sure they align with the annual targets.
4. Take it to the masses. Once you have your final list of 5 or less sales KPIs, it's time to dashboard it for all of your salespeople. Take that set of 5 core sales KPIs and set RYG criteria for each person on the team. What is John's revenue goal? How many meetings will he need? How many proposals must he deliver? Again, make sure the individual goals align to the overall quarterly goals. Make sure your team energy represents enough to get you to Green at the Company level.
5. Make it visible and hold people accountable. If you are using Rhythm strategy execution software, this part is easy. Record all of your KPIs (company, group and individual) in Rhythm. Have each person status their KPIs weekly. Hold a Weekly Team Meeting to discuss Yellows and Reds. This is a great way to utilize the natural competitiveness of salespeople to drive results. It also fosters sharing of best practices and helps the sales manager identify opportunities for coaching. If you don't have the Rhythm software tool, a visible whiteboard or flipchart will work. It also is a great framework for impromptu contests: Whoever has the most meetings this week gets dinner on the company!
In summary, it's all about measuring the right sales KPIs that drive the right behaviors and making the right adjustments along the way. Happy selling!
Looking for some KPI Examples to help get you started? Check out our additional resources:
Rhythm Systems KPI Resource Center