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Let’s review for a moment what the sales performance distribution looks like in a typical sales force:

a. 35% will be average or slightly above.
b. 35% will be average or slightly below.
c. 15% will be significantly underperforming.

d. 15% will be significantly above the average.
e. Since the significantly underperforming roughly offset those that are significantly above average, about 70% of your sales revenue will come from average or slightly above performers and average or slightly below performers.
f. The larger the sales force the more likely these numbers will be true.

A sales manager has to consider the limited revenue impact (5–10% of total revenues) of the significantly underperforming group before deciding on remedial action. Investing time and resources with this group may not be especially prudent when one takes into consideration the limited total potential revenue gains in combination with their questionable motivation and skill set. In most cases you don’t want to put a lot of resources here.

The significantly above average group represents 15% of your sales force and 20–25% of your total revenue. Considering their probable existing motivation levels (i.e., high), their limited numbers and the realistic potential for significant growth it becomes obvious that training and coaching resources would not have a significant return when applied to this group.

The average performers represent 70% of your sales force and 70% of your sales revenue. Even a small improvement in overall sales with this group will make a substantial contribution to your revenue. This group is also very “coachable.” They are adequately motivated with at least average sales skills and are not normally prima donnas.

For most sales organizations with a sales force of 30 or more, allocating sales management resources with average performers will give you the biggest bang for the buck.

Tags: performance

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