Setting goals is the first step in turning the invisible into the visible - Tony Robbins
One model that is often used for goal setting is S.M.A.R.T
- Specific - The goal has to be concisely and precisely defined
- Measurable - It has to be defined in such a way as to make measuring whether or not it has been achieved possible
- Attainable - It has to be realistic, possible, and achievable, meanwhile demanding no more work than the employees and/or teams involved can handle
- Relevant - The goal has to be worth achieving. It should be important and connected to either a prize or a return on the investment
- Time-bound - There has to be a time and/or date by which the goal should be achieved
This might not be new information to you and the vast majority of people agree with this general model. Of course goals have to be S.M.A.R.T. – even in sales organisations.
The big question is - Is your sales budget S.M.A.R.T.? Let us assume that you and your colleagues have a personal quota of 'x' amount every month.
Now let us evaluate how S.M.A.R.T it is:
Specific: How many of the x pounds have to come from:
a) Resale and additional sales to existing customers
b) Cross-selling of other solutions to active customers
c) Lost customers that are recovered
d) Sales to new customers?
If the quota has no specifications relating to a, b, c, and d, the majority of sales people will attempt to secure the quota through easily accessible means. These include resale, additional sales, and cross-selling. Is this satisfactory in terms of the long-term success of the company? If not, the goal is not S.M.A.R.T.
Measurable. Let us assume that you, based on the above information, have broken your sales budget down to a, b, c, and d. What weight is given to income from new customers in comparison to income from resale and additional sales to existing customers? If this is not made clear, is the goal still measurable?
Attainable. Now that you have a goal related to, for example, turnover from new customers, how do the individual sellers perceive the goal? Have they taken ownership of and responsibility for their individual goals – or are the goals just a series of numbers written on a piece of paper by the team leaders?
Relevant. Do achieving these goals and becoming successful go hand in hand? Will the achievements be celebrated? Are there rewards for achieving the goals? Are there consequences of not achieving them?
Time-bound. How do you create deadlines for your sales goals when your sales next month are essentially the result of work done last quarter?
How smart are your sales goals?