Pillar 8: Metrics and Quotas
WHAT ARE METRICS AND QUOTAS?
Revenue teams have revenue production accountability. Metrics document accomplishment outcomes and contribute to informed decision-making. Revenue teams need to set goals and measure results. Examples of these goals include absolute revenue growth, ROI yield, opportunity progression, effectiveness improvement, and strategic outcomes.
Management installs these measures and quotas into the management systems to direct the workforce. These measurement systems also help determine the needed revenue team investments in the pursuit of revenue segment objectives.
WHY ARE THEY IMPORTANT?
Revenue organizations are measurement rich entities. Metrics provide the means to monitor and improve sales results. Metrics can alert revenue management when strategy, structure and management programs need adjustments or upgrades. Forecasts provide projections. Quotas provide performance objectives.
METRICS AND QUOTAS TOOLS (see Chapter 11)
Tool #1: Productivity Metric—Share of Addressable Market
Tool #2: Productivity Metric—Revenue Waterfall
Tool #3: Productivity Metric—Revenue Dashboard
Tool #4: Forecast—Revenue Estimates and Probability Accuracy
Tool #5: Quota—Distribution Outcomes