Implementing Analytics is a lot like making pizza. The end result is fabulous, a very yummy pizza with our favorite toppings. But how we make that pizza, can vary quite wildly. Even the ingredients we use can vary as do the toppings.
If the goal is our favorite yummy pizza, businesses have the goal of building an analytics program which represents their business model and their strategy. These Key Performance Indicators (KPIs) can vary wildly, even for businesses operating in a similar market. The KPIs are our toppings. Pepperoni for some and others avoid the anchovies.
How we support those KPIs can be vary as well. What type of dough do you like? Do you make the dough from scratch or buy a premade dough? What do we add to the dough for interest? Basil? The dough is our technology stack. You can build something completely custom with anjular.js and d3.js or you can buy something off the shelf, like Google Data Studio or implement Alteryx and Tableau. There are no right or wrong answers, just the best decision for the needs of your business. Low-budget frozen pizza to high-end gourmet pizza cooked in a pizza oven, the flavors vary.
The best advice I can give is to consider the sustainability of any stack before implementing. Knowing the complexity and amount of data will ever increase is crucial. Being able to modify reports and deploy new ones fast is key to success. Don’t forget KPIs can evolve as well and need to be reviewed regularly.
Happy Pizza Making! Er… happy analytics developing?
I had the pleasure of working with a new client who has some phenomenal dashboards built in Tableau. But the users do not want use these beauties. Why?
Sales Compensation is not easy. Throughout my career, I have seen plans which break the sales budget to plans which do are insulting to the rep as they pay too little for a lot of work. I refer to sales compensation programs as a form of art which requires a bit of science.
Science is pretty easy as it is understanding how your team should be selling your product and how it translates to the pipeline and corporate goals. This understanding translates to key performance indicators (KPIs) which one can use to monitor rep performance and team performance.
The art plays in as you develop the actual plan and which KPIs enter that plan. Average Deal Size, Number of Meetings, or Conference Attendees may not necessarily be the best indicators of sales. With a mix straight sales revenue compensation (say 2%) and additional kickers and bonuses, the art of using plan structure for influencing rep behavior can take trial and error to get right.
Finally, the best compensation programs leverage transparency, reporting, and recognition. This is plan implementation where making sure the rep understands their KPI progress and how it translates to their paycheck. Regular reporting and team leaderboard distribution are essential, motivating and drive revenue. A proactive analytics program can ease the calculation and payout of compensation at the end of the quarter.
As a specialist in the field, I encourage you to follow Spiral Analytics, my consulting firm dedicated to sales team optimization and small business promotion. Follow us on Facebook
Sales rep scorecards are that golden unicorn of any sales organization. The scorecard is a compilation of Key Performance Indicators (KPIs) which are measured against thresholds. In a rep scorecard, we see a visual interpretation of how a rep is doing for each of the KPIs. An example of which is below:
Sample Sales Rep Scorecard
Before I dive into best practices, a word on why not a lot of sales organizations have scorecards. The primary reason is due to organizations struggling with data which best represents the business which makes it difficult for them to setup a KPI, let alone establish effective targets. An understanding of the analytics continuum is also helpful for understanding the evolution of data practices which need to met prior to rolling out KPIs and Scorecards:
Top 5 Best Practices for Sales Rep Scorecards
- Sales reps, Mangers, VPs, and CROs must all have agreement on the KPI definition, targets, and thresholds. If one level of the KPI hierarchy is not on the same page as the others, there is very value in using the Scorecard to represent an ideal.
- Targets and thresholds must be reasonable. When rolling out KPIs, we often realize that actual performance is far from the corporate ideal. For instance, a Sales Cycle of 45 days is thought to be ideal, but the rep actual is north of 60 days. Don’t hold this against them, consider rolling out a target of 55 and stepping the target down to 45 days within three quarters of launch. Be kind to the reps and allow them to catch up.
- Scorecards must be part of a larger sales communication strategy. Rolling out a scorecard alone will have an impact on the organization, but the most impressive will happen if scorecards are a part of the larger communication strategy. For instance, a weekly email can call out wins by reps, it should call out performance, and it needs to call out what needs to be done to hit the goal. Scorecards are just one piece of the story in sales.
- Scorecards need to be updated as the business evolves. Scorecards can never be truly static, recurring reports. Part of the role of your analytical team is maintain reports as the business changes and evolves. Scorecards are no different. From a subtle change of keeping thresholds and targets up to date, to swapping out KPIs for new ones, scorecards are a living animal and requires food to stay alive.
- Scorecards are a coaching opportunity, not a punishment tool. While HR and managers will look at a scorecard and see a rep with all red for their KPIs, this doesn’t mean the rep needs to immediately be put on a performance improvement plan or, worse yet, fired. Scorecards are coaching tool and enable the manager to work with the sales rep and ask questions like “why do you think your sales cycle is double the average?” Work with the rep, train the rep, and allow the rep the chance to go for green.
As your team rolls out scorecards across the sales organization, keep these best practices in mind. Be kind to your reps, get agreement on definition, use scorecards as part of a larger strategy, keep them updated, and use them as a coaching tool.
Monitoring your sales team is a major part of success. Sales managers and executives need a simplified media to review key performance indicators KPIs to understand how their sales team is performing.
Such a simplified media is a dashboard style report which includes both charts and data tables which report KPIs pertinent to the business. In a for profit business, typically revenue generation is at the top of the KPI list, followed by product performance, rep performance, and then rep productivity metrics.
Spiral Analytics’ Example Sales Team Management Dashboard – Available for $5 through Fiverr
Since simple is good, Spiral Analytics, the name of my analytics solution company, is offering a gig through Fiverr. The $5 Gig provides a basic template and setup for a sales team dashboard which follow the metrics above. Additional charts and the ability to maintain the dashboard for you are available at additional charge. For more information, send us an email below.
Send us an email inquiry
Creating a personal intelligence platform for self tracking has never been easier. While technology continues to push us toward the “cloud” and SaaS as a strategy of revenue generation, we cannot overlook the tried and true platforms available to keep data on your computer and away from prying eyes of Analysts.
As a data visualization and KPI development guru, I love finding those interesting trends in my own life that drive smarter, better habits. If you are like me, you don’t feel comfortable sharing your dirty underwear with Mark Zuckerberg and you really wonder what Google is doing with all of that data they keep acquiring. By maintaining a self database on my desktop computer which I can add to and tweak at a whim, I am able to give myself peace of mind and control over MY data. Curious, about what KPI’s I track? Stay tuned, that is a topic of another post.
Without further ado, here are some tools that you can use to create your own personal intelligence platform on your local computer:
- Microsoft Excel
- A stunningly powerful tool to use for even the novice user. Create your own tables, link them how you want and design your own graphs and dashboards at your own pace and complexity. Available for both Windows and Mac.
- A Mac only platform designed to compete directly Microsoft Excel which offers much the same functionality, but lacks some advanced capability compared with Excel. The simplicity and robust visual que are 2nd to none, but as the data set grows, you may be wishing you chose Excel in the beginning.
- Qlikview Free
- I have been a fan of Qlikview for years. I love the ability to create charts and dashboards from Excel spreadsheets and the gnarly level of interactivity that it provides. The learning curve isn’t as steep as one might think and well worth a few minutes reading their documentation. The limitation here is the limited number of shared files you can open. Windows only.
- MySQL / Apache / PHP / HTML5 / HighCharts
- Ok, if you are going with this option, you are a true geek with coding ability. This isn’t for the lighthearted as configuring MySQL, Apache, etc etc will take time. But the advantage is you are left with an enterprise class database and a truly blank slate in regards to dashboards. You can even create your own forms in HTML to add data. Mac/Linux/Windows
- Microsoft Access
- If you need something in between Excel and MySQL to store data, Access is a great option and can interface with Excel graphs and dashboards. With a mild learning curve, the ability to store any kind of data, and the convenience of a query builder UI, Access makes for a very robust solution. But, it lacks more advanced visualization, so be prepared to connect Excel to Access. Windows only and available with Office Professional.
As you can see, creating a Personal Intelligence platform off the cloud is possible. You can take full control of your data and keep it private at the same time. As data becomes more and more of a commodity and SaaS business models continue to nickel and dime everything, home based data management will be more and more appealing. Excel is the perfect anti-cloud.
While Marissa Mayer’s decision to remove the privilege of remote work from Yahoo!’s culture was met with shock and bewilderment initially, the truth was that Yahoo!’s remote workforce have been slacking. Since the company is only as good as its best slacker, putting an end to an easy pay check outside the office was the right move.
Since remote work is here to stay, companies need an objective way to monitor their employees. Just like an employee sitting in office, a remote employee needs to guarantee a certain level of access to their co-workers. So, how do you know your remote employees are actually working?
As an employee with a few years experience working remote and working with remote bosses, I’d like to discuss some of the data points I think are pertinent to measuring remote employee connectedness and availability. As a former Citrix Online employee, I am all too familiar with using GoToMyPC and GoToMeeting as tools to enable a positive, productive remote work experience.
Lets take a look at some data points that could give any boss reason to reign in a slacking remote worker:
- VPN Access – Timed Logged In
- Most remote employees access company resources through a VPN for security. Just like Mayer discovered a lack of VPN use at Yahoo!, tracking the amount of time an employee spends on the VPN is essential to understanding their connectedness. One could also monitor GoToMyPC usage as an alternative to VPN access.
- While the goal would be agreed upon between employer and employee as some employees may not need to be connected 8 hours a day, the employee should be accountable for at least 90% of the VPN requirement.
- Phone/Skype Availability – Calls Answered or Callback Time
- This is simple, if you call the employee, whether via phone or Skype, do they answer? If they don’t answer, how long does it take for them to call you back?
- The goal here is to have the employee answer the phone approximately 33% of random calls, with a response time of four hours for messages left.
- Email Use – Messages Received/Response Time
- This may or may not be for all employees but since email is taking over for phone calls, remote employees should expect to be in contact with their manager on a routine basis. The KPI should focus on proactive emails during the period (i.e. did I receive an email from employee) and the response time for emails sent to the employee.
- Goal is defined as receiving X number of emails from employee with a 24-hour response time for emails sent to the employee.
- Meeting Attendance – Meetings Attended/Attendance Time
- Is the employee actually attending team or company meetings? This KPI tracks their attendance and how long they are connected. After all, an employee who sits out of team meetings is not likely to be a productive member. Services like GoToMeeting make it easy to know who is connected to a meeting.
- Goal is to have the employee attend 90% of a meeting’s length and attend 100% of meetings. Making sure the employee knows to attend a meeting is, of course, the manager’s responsibility.
As you can see, any contact point the employee has with the company can be used to monitor their engagement. You might be asking yourself how to track these KPI’s and who owns it. Well, it depends on whether the company has a KPI program or whether a manager is interested in tracking their own team. In my opinion, whether or not an employee is productive falls squarely on the shoulders of the direct report manager and it would be up to them to create the KPI’s suitable for the situation, leveraging IT and BI departments to access data.
Once a manager begins monitoring remote worker KPI’s, they enable an objective analysis and discussion of expectations between both parties. Putting the KPI’s onto a shared dashboard is a great way to start off a one on one meeting.
What does an actual dashboard for remote employees look like? Stay tuned, a mockup is in the works. In the meantime, what are your thoughts on remote employee KPIs? leave me a comment or hit me up on Twitter (@mooney1).