Top 5 Best Practices for Rolling Out Sales Rep Scorecards

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:

A Simple Sales Rep Scorecard with three KPIs

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:

The Analytics Continuum: a blueprint for adoption

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.

Need a Sales Team Dashboard?

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.

Example Sales Team Management Dashboard

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, check out the Gig below.

Spiral Analytics Sales Team Dashboard on Fiverr

Triathlon Intelligence: A Calendar View Template For Triathletes

For the past few years, I have been not only training for triathlon, but also talking to fellow triathletes about triathlon performance.  The concept of triathlon intelligence is alive and well in the minds of anyone looking to improve their triathlon finish times.  Not finding much excitement with the training and workout logs on the market, I created TrainingMetrix  (out of business – Oct-2015)to explore the intersection between data and triathlon, as well as data and fitness in general. From usability and access to data to creating KPIs for workouts and nutrition, TrainingMetrix took an open exploration of this often overlooked intersection.

Our latest template, based on feedback from our users, is a modification of our free Triathlon Foundation Template and adds the ability to view both workouts and training plan in a calendar view.  Now, you can see your workouts compared against your plan! This is in addition to the powerful performance dashboard already a part of the free template.  The new Calendar View Template also allows you to build your own training plan.

calendar view triathlon workout and training log

Track progess, merge your plan and workouts into a calendar view, and create/modify your own training plan, the Calendar View Template is a powerful for triathletes

I am excited to show off this latest template.  We are combining a number of KPIs for triathletes into an easy to use template which resides locally on your computer, so your data is private and protected.  Being based in Excel, the template provides a foundation for you to customize and create your own charts and data views.  The power of workout progress and trends come alive.  The ability to create and modify your training plan is another powerful tool.  Lastly, the comparison of training plan to actual workouts is the intelligence the triathlete needs to stay on track, plan ahead and adjust as necessary.  For more information, please visit the Calendar View Template website.

What’s next for TrainingMetrix and I?  A lot, stay tuned, we are just getting started with understanding this intersection, data and triathlon.

Update 10/15 – TrainingMetrix was shut down in October 2015 due to increasing costs and lack of an effective business model.

A Sample Corporate Sales Dashboard

Monitoring your Sales team performance is very important for the growth of your company whether it is an infant startup or a tenured enterprise.  If your company is using a CRM solution, such as Salesforce.com or SugarCRM, you already have a wealth of data to leverage.  The trick is to get the right level of actionable data in front of the stakeholders who need it to make a decision.

A Sample Sales Team Dashboard

The dashboard’s purpose below is to communicate the health of a sales team for a company based in Canada.  The stakeholder required a view of sales by region and product category.  In addition, they wanted visibility into product returns and profitability. We used Tableau Public to create the dashboard below with a Canada Superstore data set available for free.  So let’s dive into the dashboard and some of the insights it gives us.

Sales Team Performance

sample sales dashboard using TableauThe first three charts on the dashboard illustrate which regions and product categories are driving the most gross revenue.   The first heat map shows Product Category against Region with the darker green color indicating more revenue.  The conclusion is the West drives the most revenue of the regions, with Nunavut bringing up the rear.  However, technology sales are highest in the West, whereas other regions have a more equal distribution.

The second heat map shows Customer Segment against Product Category.  Corporate customers tend to drive the most revenue, with technology and furniture being the highest revenue generator.  The lowest generator is Consumer Office Supplies.

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Anti-Cloud Based Tools for Personal Intelligence

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.
  • Numbers
    • 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.