Sales Process as a Risk Management Tool - Clarity Advantage2004 Clarity Advantage Corporation All rights reserved 1 Sales Process as a Risk Management Tool By Nicholas T Miller _____ ur customers revenues drive their
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© 2004 Clarity Advantage Corporation. All rights reserved. By Nicholas T. Miller ______________________________________________________________________________ ur customers' revenues drive their ability to repay loans. Banks' revenues drive their stock prices. How much risk surrounds your borrowers' abilities reach their sales goals this year? How certain are you that © 2004 Clarity Advantage Corporation. All rights reserved. While many bank and customer sales managers still resist the idea of a formally defined sales process, saying, "You don't manage sa les like manufacturing," and "We hire good people, and we expect them to go out there and sell," sales managers who can't answer the question, "What activities your sales?" are generating results essentially at random, unable to identi Management of the Sales Process Reduces Risk ented its sales process, sales managers must monitor opportunity flows, cycle times, opportunities to make improvements and to catc h adverse changes early. They must then use this information to direct and coach sales team members. © 2004 Clarity Advantage Corporation. All rights reserved. Balanced Scorecard : "(The Balanced iness unit's mission and strategy into tangible objectives and measures (that) represent a balance be tween external measures … and internal measures of critical business processes…. The measures are balanced between outcome measures…and the measures that drive fu ture performance. balanced between objective, easily quantif ied outcome measures and subjective, somewhat judgmental, performance drivers of the outcome measures." The Idea is to Reduce Risk Every sales organization must address the unsystematic risks inherent in its sales activities. To begin, they must define a sale s process that focuses sales teams on the right customers and prospects at the right time performing the right ac tivities in the right frequencies in the right volume to generate revenue. A formally defined and documented sales process enables sales teams to systema Nick Miller is President of Clarity Adv consultancy that assists clients to generate more profitable sales, faster.